Analysing Globalisation Impact on SASOL Ltd.'s Business Strategies

This report examines the influence of globalisation on SASOL Ltd., a chemical and energy organization with headquarters in South Africa, focusing on market dynamics, costs, competition, and the overall business environment. It assesses how globalisation affects organisational leadership, governance, functions, culture, and structure, utilizing the McKinsey 7s model to analyse key elements like strategy, structure, skills, systems, staff, style, and shared values. The report further evaluates the effects of sustainable and ethical globalisation on SASOL's functions, explores various decision-making approaches in a global context, and identifies different internationalisation strategies along with their associated barriers. It also critiques strategies organisations can adopt for global business, offering insights into overcoming challenges like entry fees and cultural identity loss, and highlights the importance of adapting to political, economic, social, technological, and legal factors in the global market.

Global Business
Environment

Table of Contents
INTRODUCTION ..........................................................................................................................3
PART 1............................................................................................................................................4
PART 2..........................................................................................................................................12
Evaluate how globalisation influences organisational leadership, governance, functions,
culture and structure...................................................................................................................12
Evaluate the influences of sustainable and ethical globalisation on the functions of
organisation................................................................................................................................14
Critically evaluate the influences of globalisation in application to suitable models and
theories linking to organisational culture and structure. ...........................................................15
Evaluate the various ways of decision-making that can work in an effective way in the context
of globalisation. .........................................................................................................................17
Determine different ways to internationalization and barriers involved. .................................17
Critically evaluate the key barriers involved in internationalization and recommendations to
overcome it. ...............................................................................................................................19
Critique strategies that an organisation can be adopted while doing business at global level.
....................................................................................................................................................19
CONCLUSION .............................................................................................................................19
REFERNCES:................................................................................................................................20
Books and Journals:...................................................................................................................20

INTRODUCTION
The globalisation may be defined as the process of developing the different business
activities and operations at the international scale. Globalisation is not only help in the
interconnecting the different business organisation at the international level but also help in the
development of manufacturing of goods and services along with their trade at the international
level. Global business environment refers to an environment of different countries which have
different exogenic factor which not only impact on the decision making process of business but
also impact on their resources (Ali and et.al., 2020). The report is based on SASOL Ltd. that is a
fast growing chemical and energy organization. The headquarter of the company is in Cape
Town, South Africa. The company has a global presence in various locations such as New York,
Gabon, Mozambique, Australia, and Frankfurt with an addition to the UK. The report is
considering the different factors of market, cost, competition and environment that drive the
global trade and commerce. The company face various challenges and complexities when
operating their business in global environment (Aula and Mantere, 2020). It will also discuss
how globalization influences organisational leadership and governance, culture, structure and
functions. Further, it will show the sustainable and ethical influences on organisational functions.
There are different ways of decision-making that can work in a productive manner in the context
of globalization. Lastly, it will determine several ways to internationalization that a company
may adopt. It is consist with various barriers.

PART 1
Notes:
The company face various challenges and complexities when operating their business in
global environment.

Notes:
Cost: On the other hand, this factor also assist in providing the greater opportunities
which not only help in the development of the organisation but also help in generating higher
economics of scale at the international level (Dovis, Zaki, 2020). Through this factor the SASOL
can enjoy the higher profitability by having the advantage of cost at the international or global
level. The manager of the company is required to pay attention on the different activities of the
business successfully in a country where they can find the customer easily and different
resources at a very low cost. SASOL can do this by shipping their product across the globe in
bulk which reduces the cost of production and ultimately increase the profit margin of the
company.
Market: In context to SASOL the manager of the company is able to grab huge amount
of market area which help the organisation not only in attaining the higher profit but also assist
the long sustainability of the business in the marketplace. Hence it very important for the
company to pay high attention on identifying the new customer and also the requirement of the
market. Due to the they can able to satisfy the need and demand of the customer at the utmost
level and attain profit and sustainability for SASOL in the international market.
Competition: Competition between the firms who are operates in the same sector has
been increased at the global level marketplace because of the globalisation. In context to

SASOL, the company operates their business in the different parts of the countries and due to
which they have to face immense competition in the market at the international level.
Environment: Environmental factor include political, legal, social and technological factor
which have a major impact on the concept of globalisation (El Namaki, 2018). In relation to
SASOL, the manager of the company is required to pay attention on the framing of different
policies and strategies for the organisation. These policies should be effective for the company
which help the organisation to attain a sustainable position in the competitive global level market
for a long period of time. This drive of industrialisation help the SASOL in order to perform their
business activities or operations at the international level in a very effective manner and help in
attracting huge customer base towards the SASOL.
Notes:
Political factor: In context to SASOL, the government of the UK is very stable and impose
less tax which impact positively on the business at the global level (Haddud, McAllen and
DeSouza, 2018). So, the manager of the company has to focus on the rules and regulation of the
government so that they operate their business activities in a very effective manner and enjoy the
long term sustainability on the global market.
Economic factor: This comprises wages, cost, profit, gross domestic product of the country,
growth rate and many more. In relation to SASOL, as the company operates their work at

international level so they have to mainly work in that countries which have strong economic
background. This enhance the image and visibility of the company in the international market
along with their profitability.
Notes:
Social Factor: In context to SASOL, the manager of the company have to pay focus on
the needs and demands of the people of the society and provide quality of product which are
acceptable by the consumer (Igbinakhase, 2017). This help the SASOL in achieving a successful
position in the market and developing their business globally.
Technological factor: Organisation have to invest their amount in the technological
advancement in order to do their business activities effectively. In context to SASOL, as the
company operate their business at international level, they have to use the advance technology in
performing their different function. Due to this they can fulfil the demand of the international
market and earn higher profit.
Legal factor: In relation to the SASOL, the company have to focus on the different laws like
women empowerment, equity law and many more (Kasemsap, 2017) . The company also pay
attention on the health and safety of the employees along with their pay roll according to their
skill. By doing this they can run their business smoothly at international level.

Notes:
They can plan their strategies for long term basis. This will help the company to sustain in
the market for long term basis (Sharma, Kaur and Syan, 2021). On the other hand, it is very
difficult for the company to find skill and talent employees in the overseas market which
enhance the value and efficiency of organisation in the market. Along with this it is also very

difficult for the company to manage the payrolls of the employees across the globe and the
various tax rates of the country. So the company have to make proper strategies and policies to
overcome from these challenges.
Notes:
Entry fees: In terms of SASOL, the company have to focus on the export fees and the
franchising. The company can focus towards the opening of new outlet in the different nations
with the aim of generating more profit (Vought, 2017). But there is a chance that SASOL can
face the complexity in respect of paying entry fees for operating the business activities in their
nation. This directly impact on the profit margin of the business.
Losing of cultural identity: In respect to SASOL, it is very important for the company to
identify the different business environment which not only help them in achieving a successful
position but also help smooth running of business.

Notes:
Moreover, it is affected with a fear that it might lose its cultural identity. Sometimes, it
becomes challenging for the business to adopt new culture and surroundings in which they have
to conduct their business (Stanford). Hence, it is important for the business to have a clear
understanding of the culture of that specific country.

PART 2
Evaluate how globalisation influences organisational leadership, governance, functions, culture
and structure.
McKinsey 7s model is a useful tool that supports a company to analyse its
“organizational design”. The main objective behind this model is to show how an organisation
can achieve effectiveness through interactions of 7 key elements of model (Biloshapka and
Osiyevskyy, 2018). In case of SASOL, the influences of globalisation on organisational
structure, culture, leadership, governance and functions are discussed underneath: