Unit 18 Global Business Environment: SASOL Limited Analysis Report

This report provides a comprehensive analysis of SASOL Limited's global business environment, focusing on its structure, culture, and governance through the lens of McKinsey's 7-S model. It evaluates the influence of global operations on the organization and applies Hofstede's cultural dimensions to understand international market dynamics. The report further examines the ethical and sustainable factors considered by SASOL in the global market, including human resource, marketing, and economic sustainability. It also evaluates strategic decision-making in relation to risk and diversification in a global context. The analysis provides a critical overview of the strategic global expansion routes available to SASOL Limited, offering insights into the company's approach to international business.

UNIT 18
GLOBAL BUSINESS
ENVIRONMENT

Table of Contents
PART 1............................................................................................................................................1
Covered in PPT...........................................................................................................................1
PART 2............................................................................................................................................1
INTRODUCTION...........................................................................................................................1
Explanation of structure, culture, governance within organisation using 7's Mckinsey's model1
An evaluation of how the above has been influenced by global operations and how the
organisation has been influenced................................................................................................3
Apply hofstede dimension culture..............................................................................................4
Ethical and sustainable factors of organisation that is consider in global market.......................5
Evaluation of strategic decision making in relation to risk and diversification in a global
context.........................................................................................................................................6
Critical evaluation of the range of strategic global expansion routes available to the
organisation.................................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

PART 1
Covered in PPT
PART 2
INTRODUCTION
Globalisation refers to a process of integration among people, government and companies
on worldwide nature. This term is come into existence due to advancement done in
transportation and communication technology (Gupta and Minai, 2019) . The particular report is
based on the leading organisation SASOL limited that is a fastest growing chemical and energy
company head office in cape town, South Africa. The company also have quality presence in
several other nation such as New York, Gabon, Frankfurt, Australia along with the UK office.
The main aim of this business enterprise is to expand their business on international market. This
whole report present the manner of globalisation that affects strategy and decision making of
SASOL so that more profitable results are enjoyed by firm in their long term survival. This
particular report demonstrate an explanation of structure, governments and culture by focusing
on using Mckinsy model so that effectiveness in decision making is to be maintained. Further it
evaluate global operations that influenced organisation. Therefore it also explains hofstede
cultural model along with evaluation of ethical and sustainable factors that business organisation
need to be focused at the time of performing activities at global level.
Explanation of structure, culture, governance within organisation using 7's Mckinsey's model
Mckinsy model refers to a tool that helps in designing the organisation (Pant, Virdi and
Chaubey, 2020). The main purpose of using this model by manager of SASOL is to depict the
effectiveness that are to be achieved by organisation with the involvement of 7 key elements
such as strategy, skill, style, staff, structure, system and shared values. In terms of SASOL
Mckinsy model is to be demonstrated below:
 Structure- It represent a way in which company is organised. In terms of SASOL
Limited, it is very essential for manager to focus on maintaining the organisational
structure so that accountability and relationship between staff member is to be maintained
effectively. This helps in taking decisions effectively due to this firm will survive on
international market effectively and efficiently. In terms of SASOL manager need to
1

focus on proper structure by using divisional structure that helps in taking decision at
global level and in effective manner.
 Strategy- This represent the well curated organisation plan that helps business enterprise
to formulate plan for attain sustainable competitive advantage on international platform
(Falcão, Ramalho and Nobre, 2020). In terms of SASOL limited manager need to focus
on developing friendly and flexible culture at work place so that employees are fully
satisfied with the working that enhance sustainable competitive advantage due to which
firm will also achieves its set mission and goals as per set vision.
 System- This factor demonstrate the technical and business infrastructure of company
that helps in maintained the workflow chain of decision making. In case of SASOL
limited, firm highly emphasis on using advanced technology so that they work on
international level effectively and it also helps in taking strategic decision for long term
sustainability in marketplace.
 Skill- This form capabilities and competencies of company that enable employees to
attain objectives effectively. In this manager of SASOL limited follow all the government
rules and regulations that are based on employees welfare that helps in satisfying
2
Illustration 1: SASOL Limited organisational chart

employees and encourage them to gain skills for reaching specific target. This helps in
gaining profitable results to business in their long term survival.
 Staff- This mainly includes company decisions such as training, recruiting and reward
system. In case of SASOL Limited, the human resource manager need to focus on
employees training, compensation and several other factors to all country employees in
which company operate their operation so that profitable results are enjoyed by firm in
their long term survival.
 Style- In this senior manager of SASOL Limited develops a code of conduct that helps in
taking decisions effectively (Dinçer, Yüksel and Adalı, 2019). This also forms the
management style of leader. In this management of SASOL regulate the democratic style
of leadership so that every employee have right to share their thoughts and problems that
helps manager to take decisions for doing business globally in effective and efficient
manner.
 Shared values- Mission, values, objectives are the main foundation of business and also
play an effective role in aligning all activities to maintain organisational design. In terms
of SASOL limited manager need to regulate some code of conducts that helps in guiding
employees behaviour and actions so that effective strategic decisions are to be framed
that helps business to done their operations at global level.
An evaluation of how the above has been influenced by global operations and how the
organisation has been influenced
The entrance of companies in global market will become inevitable that is not because of
the limitation of the domestic market but also because of globalization, the domestic market
share will be under the threat of foreign market. There are several enterprises factors that will
promote globalisation and guide SASOL limited to strive for business development is as follows-
 Political changes- The globalisation trend will be unifying as well as socialising the
global community for forming the agreement of trade, this allows SASOL limited for
significant market opportunities (Abugre, 2021).
 Development of technology- This is related from development of technology as
computing and communication that is enable to increase the flow of idea as well as
information across the borders of company.
3

 International business climate- This is related from development of communication that
contributed to the process of globalisation, but also provides instruments to SASOL
limited that will be facilitated the process of Globalization.
 Expenses- this is related from liberalization of trade as well as investments of flows on
particular areas like global consumer habits, rising development cost and need for
economies of scale.
Apply hofstede dimension culture
When the company will get engages in global marketing there are promotional effects have to
influence the customers decision making by the help of Hofstede’ dimension culture that impact
will be discussed further (Sungau, 2019).
 Power distance- The cultures with the high-power distance having the strong hierarchies
as well as powerful leaders. Apart from these decisions also made by head of SASOL
limited rather than through discussion and team work.
 Individualism and community ties- the promotion can target the people by emphasizing
how the product will give them advantages for freedom and saving time aa well as
rewarding individual for their effective teams.
 Masculinity and trade role- the markets have high masculinity differentiate in between
their roles to analyse the particular culture to makes sure the target markets and correct
pattern of every product.
 Tolerance and ambiguity- These are the cultures depends on ambiguity while others
have to avoid this. The company SASOL limited will get determine the types of culture
and will customize their promotion accordingly.
 Long term orientation- The long-term orientation of the culture is helpful to get analyse
that it will be focused on traditions as well as link of past. The SASOL limited has to take
such type of orientation into their accounts by providing appropriate promotion into
traditional structures.
 Indulgence and quick gratification- This high understanding culture will provide value
to its rest time. The low indulgence cultures having the tight social rules and regulations.
As well as in low indulgences culture the company SASOL limited might encourage the
social benefits the products (Thrassou, Chebbi and Uzunboylu, 2021) . This function has
utility of how they can fit into its prevailing orders. Apart from this function of company
4

sometimes fails into the restricted society that may create some of the difficulties for
company SASOL limited.
Ethical and sustainable factors of organisation that is consider in global market
Ethical factors in globalisation refers to a process in which data, information, goods,
technology etc. are shifted towards ethically to form a profitable results. This represent as a
wider concept that considered several stakeholders such as government, community, employees,
suppliers customers etc. the main aim of ethical factor is to motivate employees to work ethically
for attain goals and objectives in effective manner. Follow ethical factor helps in sustain a
position within competitive marketplace. Hence doing business ethically helps in generating
sales, revenues, share price in positive manner.
Sustainable factor of globalization represent those determinants that takes business
activities on international level to attain sustainability in competitive marketplace. This enhances
profitability of company so that they would survive in the international market (Bose and Pal,
2020) . It also helps in growth and survival of company at the time of cut throat competition.
There are several ethical and sustainable factors that is adopted by SASOL Limited in
global market that are presented below:
Human resource sustainability- It is one of the major factor of sustainability and it also
represented as an essential function of business enterprise. This is based on improving and
maintaining the right and suitable employees on right position so that targets are to be attained
successfully. As this department in SASOL limited is working for finding the suitable talent who
have correct skills and knowledge to attain the goals and objectives prominently. As SASOL is
working in international level at this time it is significant to abide those rules and regulations that
impact company negatively. This enhances the sustainability of SASOL in market and also helps
in taking decisions on global level in remarkable manner.
Marketing- It is one of the highly complex functions through which organization creates
awareness related to products and services. In this manager of SASOL Limited focus on done
their activities on ethical manner by using proper techniques and telling truth about the products
and services that firm offers to their customers. In this another ethical factor that manager of
SASOL need to focus is to inform customers, employees, partners related to business
organization mission statement and goals. The main aim of company is to satisfy their customers
so that they would retain in competitive market for more time period. They modified their
5

marketing decisions by taking decisions on ethical manner as it helps in maintaining position in
marketplace.
Economic sustainability- It is based on maintaining cash flow for running business
operations on smooth manner in international market. Therefore, many company raise finance to
operate their business on global level without facing any financial complexities. In terms of
SASOL, finance manager is having a responsibility to generate and maintain funds properly and
effectively (Garg, 2019). Therefore it is done in ethical manner so that sustainable results are
enjoyed by business by maintaining company standard and quality. This helps in retaining and
attracting customers on global level.
By above analysis it is to be critically evaluated that there are several factors of
sustainability and ethics which impact business in positive manner and also helps in gaining
competitive advantage within marketplace. These factors are human resource, economic and
marketing as all these are the functions of business and it is necessary to have an effective
coordination between these departments to work effectively across national border. Hence,
ethical and sustainable factors are very essential to done business on global market.
Evaluation of strategic decision making in relation to risk and diversification in a global context
From the above information it is to be evaluated that strategic decision making is very
essential for business enterprise as it helps in diversify the company at global level due to which
they gain competitive advantage within marketplace. Taking strategic decision helps in
developing risk for SASOL at global context as these decisions are taken by firm by examine the
external and internal environment and it is quite risky to take decisions at global level. But at the
same time it enhances the profitability and sustainability of business in marketplace.
Critical evaluation of the range of strategic global expansion routes available to the organisation
It is critically evaluated that there are several range of strategic global expansion routes
which are available for SASOL Limited are presented below:
 Licensing- It refers to that method in which which firm provide licence to other entity
through which enterprise conducts operations in the name of that concerned company. It
represent as an effective strategy which is indented to help SASOL to expand their
business operation on global level. With effect of SASOL this company charge royalty
or fee for using their offerings and brand name in other country market. It develops
employment opportunities for individuals belonging to host and domestic country.
6

 Exporting- It defines as a process of in which organisation export its supplies within
marketplace. It is one of the best route for SASOL to enter into international market. It
also helps in gaining competitive advantage within marketplace. In this term SASOL can
export their products and services to other country and gain profitability and
sustainability within marketplace.
CONCLUSION
From the above report it is to be concluded that business organisation are highly
emphasis on enhancing their visibility for this they need to focus on globalisation that helps in
making connection with different culture, values, companies so that high profitable results are
enjoyed by organisation in their long term organisation. This report acknowledge the several
terms that helps business enterprise to take decisions promptly and effectively. This helps in
gaining knowledge regarding the usage of Mckinsy model for understanding structure,
governance and culture present in company due to this effectiveness is to be maintained while
taking decision. Further this report helps in examine ethical and sustainable factors that are
presented within global market for smooth functioning of operation. Further it elucidates
strategic global expansion routes that are available for company within global market.
7

REFERENCES
Books and Journals
Abugre, J.B., 2021. Maximizing Human Resource Development in Sub-Saharan Africa in the
Digital Era. In Business in Africa in the Era of Digital Technology (pp. 27-42).
Springer, Cham.
Bose, S. and Pal, D., 2020. Impact of Employee Demography, Family Responsibility and
Perceived Family Support on Workplace Resilience. Global Business Review. 21(5).
pp.1249-1262.
Dinçer, H., Yüksel, S. and Adalı, Z., 2019. Economic effects in Islamic stock development of the
European countries: Policy recommendations for ethical behaviors. In Handbook of
research on managerial thinking in global business economics (pp. 58-78). IGI Global.
Falcão, P., Ramalho, N. and Nobre, M., 2020. Stakeholder management: the new role of business
diplomacy. Journal of Business Strategy.
Garg, S., 2019. Internationalization of Tata Motors: Strategic analysis using flowing stream
strategy process. International Journal of Global Business and Competitiveness. 14(1).
pp.54-70.
Gupta, M. and Minai, M.H., 2019. An empirical analysis of forecast performance of the GDP
growth in India. Global Business Review. 20(2). pp.368-386.
Pant, M., Virdi, A.S. and Chaubey, D.S., 2020. Examining the effect of marketing innovations
on GPMA: A study using the PLS–SEM Approach. Global Business Review, 21(4).
pp.1025-1036.
Sharma, K., 2020. Landlocked or Policy-locked? The WTO Review of Nepal’s Trade
Policy. Global Business Review, p.0972150920976238.
Sungau, J., 2019. Business Process Re-engineering. In Modeling Methods for Business
Information Systems Analysis and Design (pp. 15-33). IGI Global.
Thrassou, A., Chebbi, H. and Uzunboylu, N., 2021. Postmodern approaches to business
management and innovative notions for contextual adaptation–A review. EuroMed
Journal of Business.
8