Global Business Environment: SASOL Limited's Strategic Analysis Report

This report provides a comprehensive analysis of the global business environment, focusing on the impact of globalization on organizational governance, leadership, structure, culture, and functions, using SASOL Limited as a case study. It examines the influence of ethical and sustainable globalization on organizational functions, including an evaluation using the Hofstede's cultural dimensions. The report also explores different decision-making processes at a global level and the various routes for entering the international market. Furthermore, the report incorporates the McKinsey 7S model to analyze strategic elements. The report concludes with recommendations to overcome key barriers in the global business environment.

Global Business Environment
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Contents
INTRODUCTION...........................................................................................................................3
TASK 3............................................................................................................................................3
P3 Influence of globalisation on organisation governance and leadership, structure, culture
and functions..........................................................................................................................3
P4 Influence of ethical and sustainable globalisation on organisational functions................4
Evaluation of globalisation with induce and understand model.............................................5
TASK 4............................................................................................................................................6
P5 Evaluation of different ways to make appropriate decision-making at global level.........6
P6 various routes for enter in international market................................................................8
Recommendation to overcome from the key barrier..............................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
The term global business environment is explained as an environment which exists in
various sovereign countries and it impacts on the decision-making, operations and functions of
business. In simple terms, businesses are highly impacted by global environment due to the
uncontrollable national and international interaction which influences how an organisation
operates their business in a globalisation market. Politics, technology, economy and culture etc.
are the wider factors of general environment and all of them directly or indirectly relates with
organisation. This report is written from perspective of SASOL Limited and it is a fast-growing
energy and chemical organisation. The head office of respective association is situated in Cape-
Town, South Africa. Similarly, organisation presence exists at different geographical region such
as New York, Frankfurt, Australia and they are part of organisation international expansion.
Further, report highlights on key factors of cost, market-environment and competition which
impacts on global commerce and trade. In the last, different routes to enter in international
market will also include in this report.
TASK 3
P3 Influence of globalisation on organisation governance and leadership, structure, culture and
functions
Sasol limited business operations and functions are impacted because of the globalisation
and it also results organisation governance, culture, structure and functions are influenced. Some
of them are overview and mention as below:
 Organisational governance- This is explained as a system or process which is used by
the Sasol Limited and other organisation for deciding or set the business goals and
objectives. From the perspective of respective association this is identified the base of
Sasol limited organisation related with ethical factors and foundations of business. Along
with this it is also identified that globalisation impact on the stakeholders and society. It
is also applied by the employees of organisation such as corporate governance helps to
manage work according to decided goals and objectives (Amankwah-Amoah, 2016).
 Organisation Leadership- Top authorities and leaders are the individuals who are
responsible for inducing the steps and skills related with leadership. They are responsible
for motivating and encouraging the staff to complete their work in an efficient manner
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because it helps business for complete their work in an organised manner. From the
perspective of globalisation organisational leadership is influenced because it aids leaders
to adopt all those steps which help management to perform their work according to the
international market conditions.
 Organisation structure- It is explained as a system and process that is used by the
management for perform their work in an organised and systematic manner. The main
role of the Sasol organisation structure is to achieve company goals and objectives but
globalisation also influence on company structure and this is because it is complex to
induce same structure at all places.
 Organisation culture- A large number of workforce is required for perform company
operations and functions at an international level. Globalisation influence on the
organisation culture through engage diversified workforce in the company operations and
functions (Belyaeva, 2018). So management deal with overall workforce to maintain
sustain and similar level in company workforce.
 Organisation functions- It is explained as the number of activities and operations that
are easy to access by organisation and their members. But to perform work in
international market this is important for management to maximise their functional
performance as they are difficult to manage if they are performed according to local
level.
P4 Influence of ethical and sustainable globalisation on organisational functions
The term globalisation is explained as a system that generates procedures for respective
organisation to perform their work in the global market. All procedures, actions and methods
which are implemented by the Sasol need to be appropriate, effective and ethical for the global
market conditions. In the context of Sasol Limited, ethical approach is considered towards
welfare and improvement of overall individuals. Moreover, ethical contemplation encourage all
the management for adopt all those business factors that are less destructive for global market. It
also results that ethical factors helps to improve human standards for use chemical factors and
this helps for manage work in a safe manner (Chand and Tung, 2014). Sustainability is identified
as one of the crucial factors and to achieve it management complete their work in an ethical
manner. As far as any help activity of the association like the chose organization will zero in
additional on the enduring impact on crowds so association can assemble better and greatest
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number of buyers. Based on this the assessment of supportable and moral globalization of
synthetic organization is more huge. There are sure highlights which are essential for supportable
advancement like in setting with fortify dynamic, overseeing connections to worldwide economy
and some more.
HOFSTEDE’S DIMENSION OF CULTURE
POWER DISTANCE- as far as this the people in all networks are not viewed as equivalent.
Concerning power distance it is characterized as the stage in which less incredible individuals
from associations acknowledge and expect that force is disseminated inconsistent. As far as
Sasol restricted organization people generally acknowledge a progressive request wherein no
avocation is being required.
INDIVIDUALISM- It alludes to the level of relationship which a local area needs to keep up
among every one of the individuals. Concerning maverick social orders individuals are required
to take care of themselves (Doh, Luthans and Slocum, 2016). In setting with chosen organization
there has been high inclination that people would deal with themselves as it is the main thing in
worldwide business climate.
MASCULINITY- For the respective association there is undeniable degree of manliness. As
every one of the administrators is being normal that they ought to be powerful and certain and
primary spotlight ought to be on their business execution.
UNCERTAINTY AVOIDANCE - As far as this there is low degree of inclination for staying
away from the degree of vulnerability. In the organization worldwide business climate by and
large difficult work is being taken up and all timetables are adaptable to complete work
according to the decided nature.
Evaluation of globalisation with induce and understand model
The McKinsey 7s model is identified as a strategic tool and framework which help authorities of
Sasol Limited for perform their work in an organised manner. With focus and align all successful
factors overall management process is used to perform work in a regular manner. Further, Hard
and Soft element both are understand by McKinsey Model.
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HARD ELEMENT
 Strategy- Sasol limited utilise the strategy factor because this helps management for
provide overall direction. This is also used for communicate the workforce and
stakeholders in a proper manner especially, to align all actions and activities in a
transparent manner.
 Structure- From perspective of Sasol Limited management follow flat organisation
hierarchy and this is also used for provide support to the engaged workforce. Low
managerial level is used for gain access in a confident manner with manage organisation
hierarchy structure.
 System- Sasol Limited define and develop well-demarcated system and this is used for
manage overall work in a proper manner. Also, with collaborate all factors and systems
such as marketing, finance, sales, etc. with each other all operations and functions is
managed in a systematic manner.
SOFT ELEMENT
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 Shared Value- The main value of Sasol Limited define and communicate effective and
supportive work environment because this allow workforce for perform all work in an
optimal manner. Also, it enhances motivation and commitment of workers towards
organisation.
 Style- Management of Sasol Limited adopts participative leadership style and this also
engages as well as involves the workforce for better decision-making process. Also, it
allow leader and manager for perform operations with less conflict.
 Staff- Sasol Limited adopt and engage sufficient number of workforce and this is used to
across and perform all global operations. Employees from different job roles and
responsibilities are managed through complete work with recruit right skilled workforce.
 Skills- The Sasol Limited performs work according to the commendable workforce and
this consist individual with high skills and capacities. Employees are recruited according
to merit and qualifications which is required by job role. On the other side, growth and
development classes is facilitated by Sasol professional and expert.
TASK 4
P5 Evaluation of different ways to make appropriate decision-making at global level.
Globalisation or global business environment generates factors which aids the
management for completion of their work according to their market conditions. This refers if
organisation is performing project in local market than this is important to make decisions
according to local market. But for the global reach, decision-making process needs to be
modified to make accurate decisions. Evaluation of decision process is mention as follow:
DECISIONS MAKING- This is explained as a process that is majorly independent and it helps
the management too make better decisions. All operative choices are formulated through make
major decisions as it help management for maximise the productivity (Gandhi, 2017). Moreover,
decision-making perform an important role because it contribute to make desired and appropriate
results through induce appropriate decisions for completion of all work in an easy manner. All
phases related with organisation helps in analyses of decisions that relate with appropriate factor
of business.
Evaluation of decision making- With implement of decision-making process it is identified this
generate positive factors because all work is completed according to decided approach.
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Similarly, negative factor that create problems demonstrate that it is a time-consuming process
and sometimes it delay in decision-making.
ANALYTICAL THINKING SKILLS- On the other side, decision-making aids management to
complete their work in a proper manner but to make a decision at an international level. This is
important for management to give authorities to an individual who has major analytical skills to
perform their work in a proper manner. On the other side, analytical skill helps for completion of
task with logic and proper research as it helps in completion of work with more efficiency.
Evaluation of analytical thinking skills- Organisation generate positive results with adopt of
analytical thinking skill and it define about all task that helps in completion of work in a proper
manner (Kasemsap, 2016). But individual who has more analytical thinking skills helps charge
more salary and it work as negative factor for business.
PROFESSIONAL GUIDANCE- Experts perform an important role and within case of the Sasol
Limited this is identified organisation perform work in chemical energy products. So all
decisions related with business help individuals to complete work with more efficiency. This also
considered professional guidance relates with business and it helps in managing all operations
with more efficiency. Decision making under the guidance of professional also helps in
completion of work with proper approach.
Evaluation of personal guidance- All the person who are engaged in company functions require
professional guidance and it help to manage work with more efficiency. But, on other side Sasol
limited face problems because expert are not always free for their work.
EFFECTIVE LEADERSHIP- With understand of all factors this is identified management
complete work with analyse of all data which helps in completion of task according to analyse of
different factors which are related with business (Kesar, 2016). SASOL Limited leaders make all
decisions in an organised manner and this helps for understand all phases in order to engage
them within all area that is used to make effective decisions with more efficiency as per global
market.
Evaluation of leadership- The present market conditions define that there are different problems
faced by organisation so an effective leader is able to manage work in proper manner through
generate positive environment. Negative aspect relates with leadership is that if they generate
negative results than all workforce will demotivated.
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P6 various routes for enter in international market
There are different routes related with business exists and all of them supports
management for start and establish operations in international market. Some routes that are
appropriate to enter in international market along with international barrier are mention as
follow:
Exporting-Importing- This method is explain as the direct sale of products of Sasol Limited
within different countries. One of the best possible methods to enter in foreign market is
exporting because of its low risk factors. Along with this it is also cost effective because
organisation does not need to invest in the productions activities in the country where they export
the products.
Barrier related with importing-exporting- For start exporting at different places this is identified
that different individuals will required for performing operations. Majority of products cost raise
due to involvement of importer, transporter and government so this create problem for
organisation.
Licensing- Permitting permits another organization in the international region or nation to utilize
the market and property. The property being referred to is regularly elusive – for instance, brand
names, and creation methods or licenses (Klatte, Schaefer and Hempel, 2017). The licensee will
pay a charge to be permitted the option to utilize the property. Licensing requires next to no
venture and can give an exceptional yield on speculation. The licensee will likewise deal with
any assembling and promoting costs in the unfamiliar market.
Barrier in licensing- One of the major drawback related with licensee is the fees related with
business. Moreover, chemical licensee rate are high and due to this sometimes it is complex for
management to manage their expected profits.
Joint Venture- A joint endeavour comprises of two organizations building up a together claimed
business. One of the proprietors will be in another country and other in local region. The two
organizations would then furnish the new business with a supervisory group and offer control of
the joint venture (Van Horne and Dutot, 2017). There are a few advantages to this kind of
adventure and it permits Sasol Limited to gain advantage of neighbourhood information on an
unfamiliar market and permits to share costs.
Barrier in joint venture- In any case, there are a few issues and it define that with choose and
select of a country management contributes what and how to divide benefits etc. In simple terms,
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profit management and delegation of roles are the major problems that generate challenges for
joint venture.
Foreign Direct Investment- (FDI) is the point at which management straightforwardly put
resources into offices in an unfamiliar market (Virakul, 2015). It's anything but a great deal of
money to take care of expenses like premises, innovation and staff. FDI should be possible either
by setting up another endeavour or securing a current organization.
ISSUE in FDI- Within circumstance of Sasol Limited it is analysed that management face high
risk because of lack knowledge related with foreign market. So FDI is a complex option to enter
in market.
Recommendation to overcome from the key barrier
 Formulation of financial Budget- Monetary amount perform an important role and according
to this, it is identified that exporting generate barrier for manage work due to high cost.
From the perspective of Sasol Limited, this is identified that by completion of work with
low cost budget it is easy to complete work in a proper manner.
 Fulfil of paperwork formalities- Joint Venture and licensee related formalities perform an
important role and these is done between two different organisations. Therefore, with make
agreements on paper work all issue such as divide of profits, delegation of authority etc. are
managed through write all rules on papers.
CONCLUSION
With the analyses of above report it is concluded that an organisation face challenges to
perform their work in the international market but this is also important for each business that
they start operations among other countries to sustain in global or international competitive
market. When business performs operations in international crucial decisions are implemented
by management and they are based on rules, regulation and legislation of a country. Most of
them also important as it make crucial decisions for organisation. In the last, methods to enter in
international market along with barrier related with them are understand to select appropriate
method for entering in market.
REFERENCES
Books and Journals
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