Comprehensive Report on Global Business Environment: SASOL Limited
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This report provides a comprehensive analysis of the global business environment, focusing on SASOL Ltd. It begins with an introduction to globalization, exploring its driving factors, the impact of digital technology, and a PEST analysis of SASOL. The report then examines the challenges of globalization and offers recommendations. Further analysis includes the application of McKinsey's 7S model and Hofstede's cultural dimensions to understand SASOL's organizational structure, culture, and governance. Ethical and sustainable factors are evaluated, alongside factors affecting decision-making in a global context, and concludes with a discussion of strategic expansion routes. The report aims to provide a thorough understanding of the company's operations within the global market.

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Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1&2.......................................................................................................................................1
1. Globalisation introduction.......................................................................................................1
2. An explanation on driving factors of globalisation.................................................................1
3. Significant impact of digital technology over globalisation...................................................2
4. PEST analysis of SASOL Limited..........................................................................................3
5. Challenges faced in globalisation............................................................................................4
6. Recommendations...................................................................................................................4
TASK 3&4.......................................................................................................................................4
1. Structure, Culture and Governance of organisation by applying McKinsey's 7S Model.......4
2. Hofstede's Dimensions of Culture Influence to Organisation.................................................5
3. Evaluation of Ethical and Sustainable Factors........................................................................6
4. Factors Affecting Decision Making in Global Context..........................................................7
5. Strategic Expansion Routes with Advantages and Disadvantages.........................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
INTRODUCTION...........................................................................................................................1
TASK 1&2.......................................................................................................................................1
1. Globalisation introduction.......................................................................................................1
2. An explanation on driving factors of globalisation.................................................................1
3. Significant impact of digital technology over globalisation...................................................2
4. PEST analysis of SASOL Limited..........................................................................................3
5. Challenges faced in globalisation............................................................................................4
6. Recommendations...................................................................................................................4
TASK 3&4.......................................................................................................................................4
1. Structure, Culture and Governance of organisation by applying McKinsey's 7S Model.......4
2. Hofstede's Dimensions of Culture Influence to Organisation.................................................5
3. Evaluation of Ethical and Sustainable Factors........................................................................6
4. Factors Affecting Decision Making in Global Context..........................................................7
5. Strategic Expansion Routes with Advantages and Disadvantages.........................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Globalisation is a process of integration between companies and government at global
market. It is associate with cultural aspects and focuses on trade and FDI. This concept is focuses
on expanding of business in global market (Barnwell and et. al., 2014). This report is based on
SASOL Ltd which is a type of public company. It was founded in 1950. its headquarter is
located in South Africa. It is a industry of oil and gas chemical. In this report there will be a
discussion about concept and factors of globalisation. PEST analysis and impact of technology
on globalisation is discuss. Apart from this, McKinsey's 7S model and Hofstede's model will
discuss. At last, ethical and sustainable factors will discuss.
TASK 1&2
1. Globalisation introduction
Globalisation refers to the process of setting up political, social, economical and cultural
relation across the national boundaries. This allow businesses to perform its operations at global
level by removing trade barriers and support in integrating with World market. By
internationalising its business company will get an opportunity to offer its product all around the
world.
Evaluation of globalisation supports in restructuring relation among nations by removing
barriers in area of culture, communication and commerce. This initiation supported ‘SASOL
Globalisation is a process of integration between companies and government at global
market. It is associate with cultural aspects and focuses on trade and FDI. This concept is focuses
on expanding of business in global market (Barnwell and et. al., 2014). This report is based on
SASOL Ltd which is a type of public company. It was founded in 1950. its headquarter is
located in South Africa. It is a industry of oil and gas chemical. In this report there will be a
discussion about concept and factors of globalisation. PEST analysis and impact of technology
on globalisation is discuss. Apart from this, McKinsey's 7S model and Hofstede's model will
discuss. At last, ethical and sustainable factors will discuss.
TASK 1&2
1. Globalisation introduction
Globalisation refers to the process of setting up political, social, economical and cultural
relation across the national boundaries. This allow businesses to perform its operations at global
level by removing trade barriers and support in integrating with World market. By
internationalising its business company will get an opportunity to offer its product all around the
world.
Evaluation of globalisation supports in restructuring relation among nations by removing
barriers in area of culture, communication and commerce. This initiation supported ‘SASOL
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Limited' to expand its operations in other countries to achieve competitive advantage and to
increase its customer base.
2. An explanation on driving factors of globalisation
Globalisation is one of the highly spread trend in marketplace nowadays which keep on
attracting businesses as well as traders to exploit the expansion or growth opportunities that a
business get after internationalisation (Belás and et. al., 2014). There are some common drivers
that attract businesses toward globalisation which are as follows:
Cost: Production cost is one of the major driver behind the global expansion of
companies because the business generally focuses on performing its operation while
maintaining economies of scale. SASOL Limited is an integrated energy and chemical
company which deals in providing fuels and other gas chemical. So, company is
performing its operations in countries like Qatar which is reach in oil and natural gases.
The cost of operating business in Qatar is relatively lower as compare to UK, this
is the main factor which influence company to expand its business in countries that are
rich in oil production. This help company in performing its operation while achieving
economies of scale.
Market: It refers to some favourable factors like growth opportunities, demanding
product, low competitions etc. that are present in market which support company in
moving to global market and achieve success (Botha, Kourie and Snyman, 2014).
SASOL Limited is one of the leading integrated energy and chemical company which
deals in global level by providing fuels other chemical substances to different countries
with lower availability of such resources. It includes Canada which requires at least 208
million litres of fuel to be pumped in vehicle this provide a most productive place to
SASOL Limited for providing fuels. The benefit of more sale of fuel in Canada market
act as a driver for company to setup its plant.
Environment: Another major factors that act as a driver for globalisation is favourable
environmental factors that a potential company have which support company to grow its
business. For instance SASOL Limited expanded its business operations in Australia due
to its positive environmental factors that provide a favourable place to company for
performing its operations most effectively and successfully as compare to other places.
Because the government of Australia has committed to develop a policy framework for
increase its customer base.
2. An explanation on driving factors of globalisation
Globalisation is one of the highly spread trend in marketplace nowadays which keep on
attracting businesses as well as traders to exploit the expansion or growth opportunities that a
business get after internationalisation (Belás and et. al., 2014). There are some common drivers
that attract businesses toward globalisation which are as follows:
Cost: Production cost is one of the major driver behind the global expansion of
companies because the business generally focuses on performing its operation while
maintaining economies of scale. SASOL Limited is an integrated energy and chemical
company which deals in providing fuels and other gas chemical. So, company is
performing its operations in countries like Qatar which is reach in oil and natural gases.
The cost of operating business in Qatar is relatively lower as compare to UK, this
is the main factor which influence company to expand its business in countries that are
rich in oil production. This help company in performing its operation while achieving
economies of scale.
Market: It refers to some favourable factors like growth opportunities, demanding
product, low competitions etc. that are present in market which support company in
moving to global market and achieve success (Botha, Kourie and Snyman, 2014).
SASOL Limited is one of the leading integrated energy and chemical company which
deals in global level by providing fuels other chemical substances to different countries
with lower availability of such resources. It includes Canada which requires at least 208
million litres of fuel to be pumped in vehicle this provide a most productive place to
SASOL Limited for providing fuels. The benefit of more sale of fuel in Canada market
act as a driver for company to setup its plant.
Environment: Another major factors that act as a driver for globalisation is favourable
environmental factors that a potential company have which support company to grow its
business. For instance SASOL Limited expanded its business operations in Australia due
to its positive environmental factors that provide a favourable place to company for
performing its operations most effectively and successfully as compare to other places.
Because the government of Australia has committed to develop a policy framework for
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expanding country's resources base and improvement over regulatory regime that support
in smooth execution of operations.
Competition: It is one of the most essential factor that act as a driver for companies to
expand its operations globally in countries where there is no or a little competition
present (Brannen, Piekkari and Tietze, 2017). As the SASOL Limited perform its
operation in country like UK where the availability of natural oil or chemical substance is
very less. Hence, country have low competition this is the major driver which attract
company to start its operations in UK.
3. Significant impact of digital technology over globalisation
Digital technology has a great emphases over the success of globalisation and growth of
companies after internationalisation. Following are the impact of digital technology over
globalisation:
Technological advancement supported in reducing the cost of communication and
transportation across nation that facilitate in global sourcing of raw material.
Digital technology has reduces the barrier of time and place by providing a medium of
performing transaction from any place and at any time.
4. PEST analysis of SASOL Limited
PEST analysis refers to an analytical tool that support a company to determine the macro-
economical factors that may affect the operations and functioning of company. Following points
describe about the PEST analysis of SASOL Limited:
Political:- It includes factors like change in government policies, political structure and
rule & regulations formulated by government. SASOL Limited operates its business at
global level, hence company have to deal with several political issues that are present in
country of operation (Cavusgil and Knight, 2015). Hence it has now developed
capabilities and policies in a way that make it easier for company to expand in other part
of world.
Economical:- This factors includes inflation rate, foreign exchange rate, interest rate and
economical cycle that provide aggregate investment in economy. SASOL Limited is deal
in oil and fuel sector where the cost keep on fluctuating this affect the operations of
company. As when the price of oil increase the demand of customers decreases this affect
the profitability of company.
in smooth execution of operations.
Competition: It is one of the most essential factor that act as a driver for companies to
expand its operations globally in countries where there is no or a little competition
present (Brannen, Piekkari and Tietze, 2017). As the SASOL Limited perform its
operation in country like UK where the availability of natural oil or chemical substance is
very less. Hence, country have low competition this is the major driver which attract
company to start its operations in UK.
3. Significant impact of digital technology over globalisation
Digital technology has a great emphases over the success of globalisation and growth of
companies after internationalisation. Following are the impact of digital technology over
globalisation:
Technological advancement supported in reducing the cost of communication and
transportation across nation that facilitate in global sourcing of raw material.
Digital technology has reduces the barrier of time and place by providing a medium of
performing transaction from any place and at any time.
4. PEST analysis of SASOL Limited
PEST analysis refers to an analytical tool that support a company to determine the macro-
economical factors that may affect the operations and functioning of company. Following points
describe about the PEST analysis of SASOL Limited:
Political:- It includes factors like change in government policies, political structure and
rule & regulations formulated by government. SASOL Limited operates its business at
global level, hence company have to deal with several political issues that are present in
country of operation (Cavusgil and Knight, 2015). Hence it has now developed
capabilities and policies in a way that make it easier for company to expand in other part
of world.
Economical:- This factors includes inflation rate, foreign exchange rate, interest rate and
economical cycle that provide aggregate investment in economy. SASOL Limited is deal
in oil and fuel sector where the cost keep on fluctuating this affect the operations of
company. As when the price of oil increase the demand of customers decreases this affect
the profitability of company.

Social:- It includes forces like change in the taste & preference of customer that may
affect the demand or supply of companies product. The increasing need of people in term
of exploring and travelling new places or countries around the world had increases the
demand transportation which in turn increases the need of fuel.
Technological:- It includes factors like new technologies in market, up-gradation of
existing technology etc. With the enhancement of technological environment the car
industry is also emphases over expanding its operation by providing an option to
customer related to getting anytime anywhere taxi services using mobile application
booking process (Compact, 2014). This lead to increase in number of vehicle and use of
fuel which provide an opportunity to SASOL Limited for expanding its business in other
country and achieving success.
5. Challenges faced in globalisation
Frequent changes:- The globalisation of company also bring a challenge of frequent
changes in demand of customers which affect the operations performed by company and
also result in loss of it. For instance, SASOL Limited operates in different countries
where the demand of oil may fluctuate as per the increase or decrease in rate of fuel.
Hence it affects the operations of company.
Political & legal issues:- Another major issues that is faced by company while
performing operations globally is political and legal framework that is followed by
different countries are different (Doh, McGuire and Ozaki, 2015). As SASOL Limited
operates its business in different countries it has to follow standards as specified by
government of particular nation which require company to change its policies before
entering into new countries.
6. Recommendations
In order to avoid the risk of getting affected by frequent changes it is very essential for
SASOL Limited to analyse the target customer demand so that they can manager their oil
supply in particular country.
SASOL Limited is recommended to analyse the political statement of country from past
few years for predicting the future changes. This will support in eliminating the risk of
getting affected through changes in political environment of country (Huhtala and et. al.,
2014).
affect the demand or supply of companies product. The increasing need of people in term
of exploring and travelling new places or countries around the world had increases the
demand transportation which in turn increases the need of fuel.
Technological:- It includes factors like new technologies in market, up-gradation of
existing technology etc. With the enhancement of technological environment the car
industry is also emphases over expanding its operation by providing an option to
customer related to getting anytime anywhere taxi services using mobile application
booking process (Compact, 2014). This lead to increase in number of vehicle and use of
fuel which provide an opportunity to SASOL Limited for expanding its business in other
country and achieving success.
5. Challenges faced in globalisation
Frequent changes:- The globalisation of company also bring a challenge of frequent
changes in demand of customers which affect the operations performed by company and
also result in loss of it. For instance, SASOL Limited operates in different countries
where the demand of oil may fluctuate as per the increase or decrease in rate of fuel.
Hence it affects the operations of company.
Political & legal issues:- Another major issues that is faced by company while
performing operations globally is political and legal framework that is followed by
different countries are different (Doh, McGuire and Ozaki, 2015). As SASOL Limited
operates its business in different countries it has to follow standards as specified by
government of particular nation which require company to change its policies before
entering into new countries.
6. Recommendations
In order to avoid the risk of getting affected by frequent changes it is very essential for
SASOL Limited to analyse the target customer demand so that they can manager their oil
supply in particular country.
SASOL Limited is recommended to analyse the political statement of country from past
few years for predicting the future changes. This will support in eliminating the risk of
getting affected through changes in political environment of country (Huhtala and et. al.,
2014).
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TASK 3&4
1. Structure, Culture and Governance of organisation by applying McKinsey's 7S Model
SASOL Ltd is an international energy and chemical company that have expertise of
around 31270 employees working in approx 32 countries. In context of governance, board of
directors set direction and make effective judgement in SASOL Ltd. They ensure that
performance are effectively integrated in organisation. Company is focuses on social culture and
ensure that there is an healthy and sale environment with clear policy and procedures.
McKinsey's Model
It was developed in 1980 to identify the seven key factors which helps to achieve goals
and objectives of a firm. Seven techniques of this model are discuss as follows:-
Shared value- This the first model of of McKinsey's which interconnect the center of
shared values. It states that what does organisation stands for and what are their values and
beliefs.
Strategy- It represent the plan of action for allocating firm's resources to achieve
organisational goals and objectives. SASOL Ltd make strategy about how they meet future
demand of products and force from challengers.
Structure- It is a way where organisational levels are relate with each other. It explains
that what kind of hierarchy organisation follow and what is the path of communication.
Systems- It refers to process, procedure and routine which characterise the pattern of
activities. There are different activities perform in SASOL Ltd such as recruiting, promoting and
evaluating employees performance. It focuses on the process which is used by organisation.
Staff- It refers to the number of human resource in an organisation. It focuses on that how
many positions are vacant in SASOL Ltd.
Style- This model is focuses on style, culture and behaviour of managers and employees
to accomplish goal of SASOL Ltd. It also deals with style of leadership which able to motivate
employees for better performance (Kirton and Trebilcock, 2017).
Skills- It represent the different capabilities of employees as well as overall organisation.
It focuses on that how to evaluate the skills of employees and need of training to improve
performance of employees in SASOL Ltd.
1. Structure, Culture and Governance of organisation by applying McKinsey's 7S Model
SASOL Ltd is an international energy and chemical company that have expertise of
around 31270 employees working in approx 32 countries. In context of governance, board of
directors set direction and make effective judgement in SASOL Ltd. They ensure that
performance are effectively integrated in organisation. Company is focuses on social culture and
ensure that there is an healthy and sale environment with clear policy and procedures.
McKinsey's Model
It was developed in 1980 to identify the seven key factors which helps to achieve goals
and objectives of a firm. Seven techniques of this model are discuss as follows:-
Shared value- This the first model of of McKinsey's which interconnect the center of
shared values. It states that what does organisation stands for and what are their values and
beliefs.
Strategy- It represent the plan of action for allocating firm's resources to achieve
organisational goals and objectives. SASOL Ltd make strategy about how they meet future
demand of products and force from challengers.
Structure- It is a way where organisational levels are relate with each other. It explains
that what kind of hierarchy organisation follow and what is the path of communication.
Systems- It refers to process, procedure and routine which characterise the pattern of
activities. There are different activities perform in SASOL Ltd such as recruiting, promoting and
evaluating employees performance. It focuses on the process which is used by organisation.
Staff- It refers to the number of human resource in an organisation. It focuses on that how
many positions are vacant in SASOL Ltd.
Style- This model is focuses on style, culture and behaviour of managers and employees
to accomplish goal of SASOL Ltd. It also deals with style of leadership which able to motivate
employees for better performance (Kirton and Trebilcock, 2017).
Skills- It represent the different capabilities of employees as well as overall organisation.
It focuses on that how to evaluate the skills of employees and need of training to improve
performance of employees in SASOL Ltd.
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2. Hofstede's Dimensions of Culture Influence to Organisation
Evaluation
McKinsey's 7S are are influence the organisation to expand their business in global
market by improving the skills of their employees and aware them about culture and climate of
different countries. They have to hire skilled and qualified employees who can understand the
global market structure and make strategy to beat competition and establish their business in
global market with achieving goals and objectives. McKinsey's model is influence the SASOL
Ltd to expand their business activities in global market (Kolk, 2016).
Hofstede's Dimensions Model
This model was developed by Hofstede which gives the values to different cultures. It
impact not only their cultural behaviour but also at workplace. Six cultural dimensions of
Hofstede's model are discussed as under:-
Power Distance- It explains the dimensions which accept the members who are less
powerful in society and expect that there is an unequal distribution of power.
Uncertainty Avoidance- It describe that people in society and not comfort with
uncertainty. In this case, if SASOL Ltd expand their business globally then they have to face
these kinds of challenges.
Individualism vs. Collectivism- This dimensions differentiate people as per their
preferences. Some prefer to live alone and some want to make a close network.
Masculinity vs. Femininity- Here, masculinity means the preference of society for
achievements, heroism and rewards. On the other hand, femininity refers to the preference for
quality of life, corporation and caring for weak.
Long term vs. short term orientation- Short term orientation indicate to those social
groups who are powerfully inclined towards formation of absolute truth. Long term orientation
implies that societies are searching for moral excellence.
Indulgence vs. Restraint- It refers to the area where society can control their desires and
follow their norms and culture (Perry-Kessaris, 2016).
3. Evaluation of Ethical and Sustainable Factors
Ethical Factors
Evaluation
McKinsey's 7S are are influence the organisation to expand their business in global
market by improving the skills of their employees and aware them about culture and climate of
different countries. They have to hire skilled and qualified employees who can understand the
global market structure and make strategy to beat competition and establish their business in
global market with achieving goals and objectives. McKinsey's model is influence the SASOL
Ltd to expand their business activities in global market (Kolk, 2016).
Hofstede's Dimensions Model
This model was developed by Hofstede which gives the values to different cultures. It
impact not only their cultural behaviour but also at workplace. Six cultural dimensions of
Hofstede's model are discussed as under:-
Power Distance- It explains the dimensions which accept the members who are less
powerful in society and expect that there is an unequal distribution of power.
Uncertainty Avoidance- It describe that people in society and not comfort with
uncertainty. In this case, if SASOL Ltd expand their business globally then they have to face
these kinds of challenges.
Individualism vs. Collectivism- This dimensions differentiate people as per their
preferences. Some prefer to live alone and some want to make a close network.
Masculinity vs. Femininity- Here, masculinity means the preference of society for
achievements, heroism and rewards. On the other hand, femininity refers to the preference for
quality of life, corporation and caring for weak.
Long term vs. short term orientation- Short term orientation indicate to those social
groups who are powerfully inclined towards formation of absolute truth. Long term orientation
implies that societies are searching for moral excellence.
Indulgence vs. Restraint- It refers to the area where society can control their desires and
follow their norms and culture (Perry-Kessaris, 2016).
3. Evaluation of Ethical and Sustainable Factors
Ethical Factors

Ethics refers to doing right thing and behave ethically in organisation. Ethics can use to
protect the reputation of organisation and maintain better relation with employees and customers.
Ethical factors in context of SASOL Ltd are as follows:-
Ethical Climate- It refers to environment of internal and external factors which impacts
on organisational activities. It is a behaviour which is acceptable in SASOL Ltd. It clearly define
goals and objectives of a firm. When there is ethical climate in firm and all employees are work
with coordination then SASOL Ltd can think to expand their business in global market which
efficiently.
Customer Ethics- When employees of SASOL Ltd are highly performed their activities
then it improve the productivity and profitability of a firm. Productive employees are focuses on
customers demand and maintain healthy relation with customers by ensuring them that
organisation will provide them best quality service. When managers and employees of SASOL
Ltd behave ethically with their customers then they get support from customers and can expand
their business in global market.
Sustainable Factors
These are the factors which helps an organisation to sustain long term in future and
enhance the possibility of sustainability in global market. Sustainable factors are as follows:-
Focused Business Strategy- It is an important factor of sustainability of a business.
Before expanding business, SASOL Ltd have to make strategy regarding expansion, covering
social norms and culture, analyse global market scenario and strategy of competitors. When
company analyse all these situations and focus on their strategy then they can expand their
business globally.
Adaptability- In this factor of sustainability SASOL Ltd have to adapt different culture
and climate and foreign policy. Only those firms can expand their business who have the nature
of adaptability. In this, company can adopt any kind of changes easily and sustain long run in
future and expand their business in global market.
4. Factors Affecting Decision Making in Global Context
Above mentioned factors affect the decision making process of SASOL Ltd in global
context. When company want to expand their business then they have to make new policy and
strategy to match with culture and climate of that country where they want to expand their
business. Ethical climate affect the business because there are different type of climate in global
protect the reputation of organisation and maintain better relation with employees and customers.
Ethical factors in context of SASOL Ltd are as follows:-
Ethical Climate- It refers to environment of internal and external factors which impacts
on organisational activities. It is a behaviour which is acceptable in SASOL Ltd. It clearly define
goals and objectives of a firm. When there is ethical climate in firm and all employees are work
with coordination then SASOL Ltd can think to expand their business in global market which
efficiently.
Customer Ethics- When employees of SASOL Ltd are highly performed their activities
then it improve the productivity and profitability of a firm. Productive employees are focuses on
customers demand and maintain healthy relation with customers by ensuring them that
organisation will provide them best quality service. When managers and employees of SASOL
Ltd behave ethically with their customers then they get support from customers and can expand
their business in global market.
Sustainable Factors
These are the factors which helps an organisation to sustain long term in future and
enhance the possibility of sustainability in global market. Sustainable factors are as follows:-
Focused Business Strategy- It is an important factor of sustainability of a business.
Before expanding business, SASOL Ltd have to make strategy regarding expansion, covering
social norms and culture, analyse global market scenario and strategy of competitors. When
company analyse all these situations and focus on their strategy then they can expand their
business globally.
Adaptability- In this factor of sustainability SASOL Ltd have to adapt different culture
and climate and foreign policy. Only those firms can expand their business who have the nature
of adaptability. In this, company can adopt any kind of changes easily and sustain long run in
future and expand their business in global market.
4. Factors Affecting Decision Making in Global Context
Above mentioned factors affect the decision making process of SASOL Ltd in global
context. When company want to expand their business then they have to make new policy and
strategy to match with culture and climate of that country where they want to expand their
business. Ethical climate affect the business because there are different type of climate in global
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market. So, SASOL Ltd have to make strategy and decision as per the culture of country. In
customer ethics, company have to make decision in order to identify the need of customers and
behave ethically with them (Sassen, 2016). When they want to expand their firm then their
decision making process is affected because they have to change their decisions as per need of
customers. Company also have to focuses on adopting new things and changes arises in global
market.
5. Strategic Expansion Routes with Advantages and Disadvantages
SASOL Ltd have two options in expansion in global market either they can apply the
policy of succession or exit. In case of SASOL Ltd, company ally the policy of succession. It
means they continue want to run their business in global market. For this, they have an option
merger and acquisition which are discuss as follows;-
Merger and Acquisition
Merger is defined as the combination of two firms. In this, two or more firms are agreed
to combine their business, assets and liabilities, profit and loss etc. After merging two or more
firms, a new company is generated with new name with objective of profit and wealth
maximisation.
Acquisition is a process in which one company is purchase or acquire to another
company. Purchasing company acquire their assets and liabilities.
From both of these factors, SASOL Ltd follow the strategy of merger and combine with
other firm to sustain long run in international market.
Advantage and Disadvantage of Merger
Advantages Disadvantages
Business is become diversified in different
fields and areas.
Governance issues are arises in case of merger.
It helps to improve the base of customers. In merger, companies are focuses on shifting
their business which reduce the interaction
with customers.
There is a optimum utilisation of human
resources in merger.
Companies have no any past experience
regarding to merger and strategy of each other
customer ethics, company have to make decision in order to identify the need of customers and
behave ethically with them (Sassen, 2016). When they want to expand their firm then their
decision making process is affected because they have to change their decisions as per need of
customers. Company also have to focuses on adopting new things and changes arises in global
market.
5. Strategic Expansion Routes with Advantages and Disadvantages
SASOL Ltd have two options in expansion in global market either they can apply the
policy of succession or exit. In case of SASOL Ltd, company ally the policy of succession. It
means they continue want to run their business in global market. For this, they have an option
merger and acquisition which are discuss as follows;-
Merger and Acquisition
Merger is defined as the combination of two firms. In this, two or more firms are agreed
to combine their business, assets and liabilities, profit and loss etc. After merging two or more
firms, a new company is generated with new name with objective of profit and wealth
maximisation.
Acquisition is a process in which one company is purchase or acquire to another
company. Purchasing company acquire their assets and liabilities.
From both of these factors, SASOL Ltd follow the strategy of merger and combine with
other firm to sustain long run in international market.
Advantage and Disadvantage of Merger
Advantages Disadvantages
Business is become diversified in different
fields and areas.
Governance issues are arises in case of merger.
It helps to improve the base of customers. In merger, companies are focuses on shifting
their business which reduce the interaction
with customers.
There is a optimum utilisation of human
resources in merger.
Companies have no any past experience
regarding to merger and strategy of each other
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firms.
CONCLUSION
From the above mentioned report it can be concluded that globalisation is an important
concept for an organisation to expand their business in global market. Digital technology is make
a significant impact on globalisation. By analysing the external environmental factor company
can expand their business. There are different challenges also occur in expansion which affect
the activity of a firm. McKinsey's 7S model and Hofstede's dimension culture can apply in
organisation in context of global market. Ethical and sustainable factors affects the decision
making of an organisation.
CONCLUSION
From the above mentioned report it can be concluded that globalisation is an important
concept for an organisation to expand their business in global market. Digital technology is make
a significant impact on globalisation. By analysing the external environmental factor company
can expand their business. There are different challenges also occur in expansion which affect
the activity of a firm. McKinsey's 7S model and Hofstede's dimension culture can apply in
organisation in context of global market. Ethical and sustainable factors affects the decision
making of an organisation.

REFERENCES
Books and Journals:
Barnwell, D. and et. al., 2014. Leadership of international and virtual project teams.
International Journal of Global Business. 7(2).
Belás, J. and et. al., 2014. Significant attributes of the business environment in small and
meduim-sized enterprises. Economics and Sociology.
Botha, A., Kourie, D. and Snyman, R., 2014. Coping with continuous change in the business
environment: Knowledge management and knowledge management technology.
Elsevier.
Brannen, M. Y., Piekkari, R. and Tietze, S., 2017. The multifaceted role of language in
international business: Unpacking the forms, functions and features of a critical
challenge to MNC theory and performance. In Language in International Business (pp.
139-162). Palgrave Macmillan, Cham.
Cavusgil, S. T. and Knight, G., 2015. The born global firm: An entrepreneurial and capabilities
perspective on early and rapid internationalization. Journal of International Business
Studies. 46(1). pp.3-16.
Compact, U. G., 2014. Overview of the UN Global Compact. Recuperado de https://www.
unglobalcompact. org/ParticipantsAndStakeholders/business _associations. Html.
Doh, J., McGuire, S. and Ozaki, T., 2015. The Journal of World Business Special Issue: Global
governance and international nonmarket strategies: Introduction to the special issue.
Journal of World Business. 50(2). pp.256-261.
Huhtala, J. P. and et. al., 2014. Market orientation, innovation capability and business
performance: Insights from the global financial crisis. Baltic Journal of Management.
9(2). pp.134-152.
Kirton, J. J. and Trebilcock, M. J., 2017. Hard choices, soft law: Voluntary standards in global
trade, environment and social governance. Routledge.
Kolk, A., 2016. The social responsibility of international business: From ethics and the
environment to CSR and sustainable development. Journal of World Business. 51(1).
pp.23-34.
Perry-Kessaris, A., 2016. Global Business, Local Law: the Indian legal system as a communal
resource in foreign investment relations. Routledge.
Sassen, S., 2016. The Global City: Strategic Site, New Frontier. In Managing Urban Futures
(pp. 89-104). Routledge.
Books and Journals:
Barnwell, D. and et. al., 2014. Leadership of international and virtual project teams.
International Journal of Global Business. 7(2).
Belás, J. and et. al., 2014. Significant attributes of the business environment in small and
meduim-sized enterprises. Economics and Sociology.
Botha, A., Kourie, D. and Snyman, R., 2014. Coping with continuous change in the business
environment: Knowledge management and knowledge management technology.
Elsevier.
Brannen, M. Y., Piekkari, R. and Tietze, S., 2017. The multifaceted role of language in
international business: Unpacking the forms, functions and features of a critical
challenge to MNC theory and performance. In Language in International Business (pp.
139-162). Palgrave Macmillan, Cham.
Cavusgil, S. T. and Knight, G., 2015. The born global firm: An entrepreneurial and capabilities
perspective on early and rapid internationalization. Journal of International Business
Studies. 46(1). pp.3-16.
Compact, U. G., 2014. Overview of the UN Global Compact. Recuperado de https://www.
unglobalcompact. org/ParticipantsAndStakeholders/business _associations. Html.
Doh, J., McGuire, S. and Ozaki, T., 2015. The Journal of World Business Special Issue: Global
governance and international nonmarket strategies: Introduction to the special issue.
Journal of World Business. 50(2). pp.256-261.
Huhtala, J. P. and et. al., 2014. Market orientation, innovation capability and business
performance: Insights from the global financial crisis. Baltic Journal of Management.
9(2). pp.134-152.
Kirton, J. J. and Trebilcock, M. J., 2017. Hard choices, soft law: Voluntary standards in global
trade, environment and social governance. Routledge.
Kolk, A., 2016. The social responsibility of international business: From ethics and the
environment to CSR and sustainable development. Journal of World Business. 51(1).
pp.23-34.
Perry-Kessaris, A., 2016. Global Business, Local Law: the Indian legal system as a communal
resource in foreign investment relations. Routledge.
Sassen, S., 2016. The Global City: Strategic Site, New Frontier. In Managing Urban Futures
(pp. 89-104). Routledge.
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