SASOL in Global Business: Governance, Leadership, and Decision-Making

This report provides a comprehensive analysis of the influence of globalisation on SASOL Ltd., a South African chemical and energy company. It examines the key factors driving globalisation, including cost, market, environment, and competition, through the lens of PESTLE analysis. The report evaluates the impact of digital technology, challenges such as increased competition and compliance issues, and opportunities arising from technological advancements and environmental compliance. Furthermore, the report delves into organisational governance, leadership, structure, and culture using McKinsey's 7s model, assessing how globalisation affects decision-making processes and internationalisation strategies for SASOL. It also critiques strategies for globalised activities and offers recommendations for adapting organisational structure and decision-making in a global context.

Global Business
Environment

Contents
Contents...........................................................................................................................................2
PART 2............................................................................................................................................3
TASK 3............................................................................................................................................3
P3: Evaluation of the influence of globalisation on organisational governance and
leadership, structure, culture and functions...........................................................................3
P4: Evaluation of the influences of ethical and sustainable globalisation on organisation
functions......................................................................................................................................7
M3: Critical evaluation of the influence of globalisation in relation to organisational culture
and structure.................................................................................................................................7
TASK 4............................................................................................................................................8
P5: Evaluation of decision-making ways that can work in an effective manner in global
context..........................................................................................................................................8
P6: Determination and articulation of various routes to internationalisation for organisations
with their key barriers..................................................................................................................9
M4: Critical evaluation of key barriers in doing business internationally and recommendations
for overcoming them..................................................................................................................10
D2: Critique strategies that an organisation can adopt while performing globalised activities
and justified recommendations on adapting organisational structure and decision-making
process.......................................................................................................................................10
CONCLUSION..............................................................................................................................10
REFRENCES.................................................................................................................................11

INTRODUCTION
Globalisation is a broader concept which can be described as increased integration of world
economies through movement of products, services and capital across the border. For better
understanding of globalised business practices, SASOL company is taken into consideration.
SASOL Ltd. Is a chemical and energy company based in South Africa. In other words, it can be
defined as movement of human capital and technological advancements through international
borders. Main purpose of globalisation is to develop world economy through integrating varied
forces together. Company was established in 1950 and has its headquarters in Sandton, South
Africa. This project highlights various key factors which drive globalisation as business
objective of company is to expand their activities on an international basis. This project also
depicts determination of strategic complexities which are associated to organisation while
operating a global environment.
PART 1
Notes:
Explanation of the concept of globalisation
Most of the people and companies are moving from their host country to global world and other
countries to explore themselves . Globalisation of business refers to the change and expand in a

business operation, functions and management. From a company operate their business activities
within one country to operates these activities in multiple countries.
Notes:
Cost: It refers to the cost of production, product, marketing, distribution, human resource
management in a company. The SASOL want to expand their business globally which leads to
increase their these cost also. Before expanding their business managers and accountant of
company must evaluate their cost and expenses of exploring their business in different countries.
The opportunity for global expansion, effective sourcing or manage cost and experience impacts
differentials in costs among regions as well as technology advantages drives the economics of
the company.
Market : It refers to the market condition, trends and customers trends, culture, values, demand,
needs, taste and preferences of customers in that country. In the context of SASOL, the manager
must be identified customer taste and preferences evolve, including the level to which consumer
needs meet around the globe, numbers of customers are available for their product, global
transmission of distribution evolve, online marketing platforms and main countries in which
most innovation and creation take place for the growth of the company.

Environment: It refers to the trade policies, social culture, environment climate, technology
standards and common product of particular country. In the context of SASOL, the mangers
must do research and identification about the government polices, tax regulation related to the
trade. Climate condition of that country which are suitable for their company or not , common
market product of that country. Along with that, they must analysis about the standard of
technology and level of innovation related to their product in different countries.
Competition:It refers to the current market competition related to their product, level of
competition in market, competitors strategies and many more. In the context of SASOL the
managers need to investigate about the strategies of competing company, also the level in which
competitors from multiple countries come in the fray. As well as how they globalise their
corporate capabilities and strategies and create interdependence among global markets to survive
and lead in international market.
Notes:
Key factors of PESTLE analysis in relevance to SASOL Limited are discussed below:
Political factors- These essentially comprises of administrative system, tax policies and fiscal
policies for foreign business policies of a nation. In UK, political landscape is stable and
government supports foreign direct investment form different countries. In relevance to SASOL,

managers should overlook political environment of country in which it wants to expand their
business. Political factors can be a challenge for SASOL as these fluctuates very often.
Economic factors- These factors encompasses rising GDP, inflation rates and unemployment
practices of a nation. Due to global lockdown and corona pandemic, whole world is trying to
come up from the verge of recession. This practice has slow down the movement of currency as
well as products. This also lowers purchasing power of people. This factor has curb the
globalisation practices for some time. These factors needs to be well taken care of by managers
of SASOL while planning to expand business in different country. It also poses as a challenge
for SASOL.
Social factors- These factors comprises of lifestyle, perceptions, tastes of population of a nation.
These factors are largely dynamic in nature as new varied companies provides a large variety of
goods or services. It takes a less than a minute for influencing customers to switch the brand if
they find that more effective. It is desirable for managers of SASOL to perform accurate reliable
market research and be aware about dynamic market trends. It is also a challenge for SASOL to
comply with dynamic market trends.
Technological factors- These factors depicts the illustrated role of new advancement in
technology either digital or machineries. Varied countries support organisation that came from
foreign direct investment as this aids them in bringing new technologies to their country.
Managers of SASOL should analyse impact of digital media and newer technologies in
differential markets in order to expand their business. These factors can emerged as an
opportunity for SASOL as these can help them to modify their processes.
Legal factors- These factors comprises of rules and regulations framed by government which are
to complied while performing business activities. Managers of SASOL follows all the rules
related to health, safety and employment. This can poses as an opportunity for SASOL as it can
helps them in expanding their business further.
Environmental factors- These encompasses of varied forces related to norms prescribed by
government in relation to pollution and industry wastes. Managers of SASOL works on
improvised plants which helps in lowering the chemical and other waste materials. It can poses
as an opportunity for SASOL as it aids them to present their positive image in front of public.

Notes:
Accepting and facing these issues in an effective manner assists establishments in gaining
sustainable competitive advantage. Various challenges that occurred due to process of
globalisation in accordance with SASOL are discussed below:
Increased competition- Globalisation increases competition for domestic markets as well as for
establishments who are planning to enter into new markets. This competition can be in form of
product, technology, target market and production capabilities.
Incurring tariffs and export fees- Globalisation process can increase incurring tariffs and more
tariffs which managers of SASOL has to take care while planning to enter in new country.
Payroll and compliance challenge- This issue is related to human resource and legal
department. It is challenge for managers of SASOL to maintain payroll of their human resources
in other countries. It is also needful to take care of legal complexities of varied countries in order
to avoid any expensive litigation.
Immigration challenges- Various countries are strict about their immigration laws related to
people coming for employment practices from different countries. As these can poses as a
challenge for SASOL as it can lead to lack of human resources at production process of
establishment.

Difficulties of global expansion- It is not easy for organisations to expand their business on a
global level. SASOL needs lot of capital and awareness about legal system of different countries.
This can create varied difficulties in expanding their businesses on a global level.
Notes:
Evaluation of the significant impact of digital technology upon globalisation
Technological advancements assists organisation in lowering down their cost of transportation
and production over the globe which further helps in facilitating the ways for bringing raw
materials and other inputs to production unit. Digital technology has cut down the long networks
of people that helps them to connect to each other. It helps businesses to communicate with their
suppliers or retailers from different countries for purchasing unique products of that specific
country. It also helps people in purchasing goods from a variety of choices from online websites.
Digital technology has helped in enhancing connectivity among people which is a necessary
component for expanding business operations in international markets.

Notes:
This can be done through performing extensive research about latest market trends, dynamic
consumer behaviour, political and legal landscape of nations where it want to diversify its
operations. Managers of SASOL have to lower risk of globalisation by diversifying its operation
and bringing innovative practices. They can use mitigation strategy in overcoming their issues
and challenges. These diversification helps organisation in engaging new customer base towards
their products which in turn helps them to generate more revenues and gaining sustainable
competitive advantage in an international market.

Notes:
Opportunities that SASOL faces due to globalisation
Constant modifications in technological advancements either virtually or machineries based.
This aids managers of SASOL in adopting new technologies which further helps in gaining
competitive advantage in mew markets.
Managers of SASOL have made compliance with all the environmental laws and use those
machineries which help them in lowering pollution level of industry wastes. This poses as an
opportunity for establishment as it helps in maintaining goodwill and positive image among
public.
SASOL complies with all the healthy and safety laws in order to keep their employees safe and
provides them secure working environment. This helps them to retain their employees and
increase organisational productivity.
Challenges faced by managers of SASOL
Political landscape of different countries poses as a challenge for SASOL as these needs to be
stable instead of dynamic. These can hamper their plans and can compels many new regulations
to their business.
Economic factors of unemployment and lowering purchasing power of people due to global
lockdown creates challenge for managers of SASOL in expanding their business.

Dynamic social needs of people at different places can be a challenge for SASOL. This can
deteriorate their image in new marketplace.
Notes:
These needs to be catered by organisation in order to gain sustainable competitive advantage in
newer markets. Global environmental factors with their opportunities and challenges are needed
to be assessed by organisations in order to expand business activities on a global basis.

PART 2
Evaluation of the influence of globalisation on organisational governance and leadership,
structure, culture and functions
Introduction and Purpose
Organisational structure is described as a technique which helps organisations in
allocating desired tasks to different teams or groups in order to enhance their co-ordination and
supervision in accomplishing predetermined objectives (Bhagra. and Sharma, 2018). It is very
important for the management of the company to adopt an effective organisational structure
because the productivity of the company is totally depend on this. Organisational governance is
considered as a holistic set of different processes, rules and practices which helps in ensuring
reliable decision-making processes. Organisational culture is described as beliefs, norms and
values that employees held in their high esteem that governs their behaviour in establishment.
These needs to be considered by organisation in creating a flexible working environment.
Explanation of organisational governance and structure through using McKinsey's model of 7s in
relevance with SASOL are discussed below: