Impact of Globalization on SASOL Limited: A Business Report

This report examines the impact of globalization on the business environment, focusing on SASOL Limited. It analyzes key factors of cost, market, environment, and competition driving global commerce and trade. The report delves into strategic challenges faced by global organizations, evaluating the influences of globalization on organizational governance, leadership, structure, culture, and functions using the McKinsey 7S model. Additionally, it assesses the impact of ethical and sustainable globalization on organizational functions, including human resources, marketing, and finance. The analysis covers legal, environmental, and cultural factors affecting business operations. The report also explores different decision-making approaches in a global context and various routes to internationalization, identifying potential barriers. The study emphasizes ethical considerations and sustainable practices within the context of global business operations, providing a comprehensive overview of SASOL's adaptation to the global environment.

Global Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
TASK 1............................................................................................................................................3
P1 Analyze key factors of cost, market, environment and competition that drive global
commerce and trade.....................................................................................................................3
TASK 2............................................................................................................................................5
P2 Explain the complexity of strategic challenges faced by organizations when operating in a
global environment supported by specific examples...................................................................5
TASK 3............................................................................................................................................7
P3 Evaluate the influences of globalization on organizational governance and leadership,
structure, culture and functions....................................................................................................7
P4 Evaluate the influences of ethical and sustainable globalization on organizational functions.
.....................................................................................................................................................9
TASK 4..........................................................................................................................................10
P5 Evaluate the different ways decision making can work effectively in a global context......10
P6 Determine and articulate the various routes to internationalisation an organization may
adopt, including key barriers.....................................................................................................11
CONCLUSION..............................................................................................................................12
REFRENCES.................................................................................................................................12
Books and Journal......................................................................................................................12

INTRODUCTION
Globalization is a term which refers to optimization of the multinational platform in order
to facilitate or make possible to exchange of the opinion thoughts and goods and services in
several attributes or culture in a very appropriate manner. This report is going to identify about
the concept of globalization (Aka, Kehinde, and Ogunnaike, 2016). Along with this report going
to facilitate the organization practices of the SASOL Limited in order to identify the impact of
the globalization on the organization. This report is also going to highlight upon the driving
factors of the globalization and significant role which are played by the digital technology in the
globalization system. Along with this report going to illustrate about the potential challenges
which are faced by the globalization in context of the SASOL limited.
MAIN BODY
Globalization in the concept of integrates and communicates between the people and
organization or among the government worldwide. Globalization is the process which described
as the growing independence in the world economy or in the culture which is brought around the
cross border trade in product and services or any kind of information or flow of investment. In
context of SASOL Limited the organization are concentrating on facility expansion for their
operation and activities of their business globally. In order to improve their activities and
deficiency in the Marketplace the organization adopted the concept of globalization.
Globalization process format the organization to acquired several Technologies which is much
better in order to improve their sale and productivity the Marketplace (Akhter, 2017).
Globalization is the process which helps the company to provide leverage so that they can
optimize on the prevailing opportunities of the organization within the several countries in the
globe.
TASK 1
P1 Analyze key factors of cost, market, environment and competition that drive global
commerce and trade.
Covered in PPT

TASK 3
P3 Evaluate the influences of globalization on organizational governance and leadership,
structure, culture and functions.
Several organization have several goals and objectives. On the basis of the variation of
the objectives the leadership cultures structure and the Government of the companies very.
Organization structure is the concept which refers to the structure that support the organization to
identify about the line authorities of the business in order to locate the responsibilities and
obligations of the people for staff organization culture is the term which refers to the set in group
of the beliefs values and assumptions which are shared by the employees of the company.
Organization government is there group of the custom policies and procedure that create impact
on the control procedure of the organization. As the organization SASOL Limited is a very
amended Organization in South Africa. Now they formulate a strategy in order to participate in
the globalization commercialization and trade in order to identify the globalization of the
SASOL Limited company there is a Mckinsey 7s model which are mentioned below:
Structure: this is the element which represent about the how the organization is organised. In
context of organization the decision of the strategic unit that represent the flow of data and
information in the organization. It represent that who reports to whom who take the applications
and responsibility in order to make decisions. Kinds of activity are shows by the company chart
in the document of the organization. and structure of the company is identified about their age
size and their technology which are included in their activities and operation. The organizations
solar Limited have a divisional structure in order meet with the requirements and Expectations of
the consumer according to the environment modification.
System: this is the process which refers to the activities of the SASOL organizations workers go
through with in order to formulate value for their consumer (Kaplan and Kinderman, 2020). This
process implies that the procedure that the transfer organization activity order inputs into output.
Context of solar Limited organization it is very required for them to divide a separate their work
into several Jobs or task in order to get more positive outcomes. Order to get opportunities the
organizations are required to formulate radical communication channel so that they can ensure
that the corporate centre control on their decentralized units.

Strategy: this is the element which refers to the entire direction and strategies the company
which are formulated by them in order to achieve their goals in objectives and get more
competitive advantages. In context of solar Limited organization they decide to raise their sales
by targeting some their expanding marketing in order to enhance their productivity and
efficiency
Style|: this is the concept which refers to the style of the leadership which expressed by the
organization top management team. This element represent that how the managers of the chosen
organization take decision at the workplace in order to get opportunities and overcome the
challenges . in order to overcome the challenges the SASOL Limited organization are required to
have appropriate formal structure or instruction for their consistent strategy of implementation..
Staff: this is the element which refers to the amount of the workers which are required by the
organization and how much they will be recruited. It is required for the SASOL Limited
organization that they identify about the diversity of their international market and target Their
employees and consumer accordingly.
Skills: This is the element which explains about the thinking capabilities of the staff in order to
overcome the challenges and get more positive outcomes. It is very required for the SASOL
Limited organization to formulate training and development programmers in order to increase
their capabilities and skills so that they can identify the demands and needs of the consumers and
the gain more positive outcomes for the organization.
Shared value: elements are the norms standards and policies of the organization which are based
on the behavior of the employees and their choices. This element helps the organization to
identify the structure which is adopted by them in order to get success and overcome the risk
factors(Khalid and Seuring, 2019) .
Apart from this globalization will also makes more pressure on leadership while operating any of
the business, these are the factors can disrupt the business growth and productivity within the
following manner that will become discussed below-
Legal factor- The legal factor will get decide whether there will be the business behind selling of
certain products that is either drugs, chemicals or anything else, this can also get affect the

mechanism of the company stocks and their inventories or get interact with customers. Some of
the legal factor of Sasol limited leadership should consider while entering into the new market is
as follows-
 The anti-trust law in important integrated oil and gas industry in overall country
 The law of discrimination
 Copyright, patents
 Protection of consumer and e-commerce
 Concerned about health and safety law
 Protection of overall data
Environmental factor- as when Sasol limited before entering within the new markets or get
starting a fresh business within the existing market to get examine some of the environmental
standard that is get required to operate markets. Now some of the environmental factor is as
follows-
 Rules and regulation of environmental pollution
 The water and air pollution regulations in oil and gas industry
 Management of waste in basic section of materials
 Attituded towards as well as support for the energy that is renewable
 Recycling of wastage
 The changes of climate
 The changes in weather.
Cultural factor of Sasol limited- the culture of society will be giving an impact on the culture of
the organization as well as environment. Due to their shared beliefs and size of population that
will play a major role. As well as Sasol limited will get understand the customer of market. Now
the cultural factor will affect the business is as follows-
 The culture of peoples like their gender roles as well as social conventions can impact the
business
 The attitude of people like health conscious environmental conscious etc.

P4 Evaluate the influences of ethical and sustainable globalization on organizational functions.
Ethical globalization is the procedure in which the data information good sensors and
several more things are ethically from one company to another. It is a very huge concept and
president of the organization which are undertake into consideration by the several stakeholders
of the organization that is government community shareholders suppliers workers and many
more. The major aim of the company is to motivate every person in order to work appropriately
in ethically in the business environment so that they can achieve their goals and objectives in a
very appropriate manner (Mcdonnell and Sikander, 2017). It is very essential for the organization
to sustain a position in order to gain more competitive advantages. Enable globalization other
term which refers to adopting several business operations across the border with support the
organization to attend stability in order to gain more competitive advantages. There are various
kinds of activities and functions which have potential impacts on the organization and that are
mentioned below:
Human resources: this is the function which is linked with company in order to select the
relevant and talented Walkers for the organization in order to enhance productivity and
efficiency of the company. Human resources department has the duty to find talented and most
potential people or a candidate for the company in order to accomplish their goals and objectives.
In context of SASOL company the human resources department are required to analyze about the
rules and regulations of the company that are applicable the company in order to analyze about
the importance of the workforce diversity with fulfillment of the Expectations and requirement
of the company.
Marketing: it is very complex and required operations for the organization through which the
organization can develop awareness about their product and services. The major activities and
operations which are performed by the company in order to identify about the target consumer so
that they can identify about the requirements and Desire of the consumer. In context of SASOL
Limited organization they have appropriate policy in order to trade goods and services at the
initial level in order to create more consumer base.
Finance: finance is the function which is linked with managing and maintaining the cash flow
of the organization activities in a very appropriate manner for stuff each and every organization
increase funds in order to carry out their business without any obstructions. In contract of

SASOL organization their finance manager has the obligation in order to open and acquire funds
in order to provide and several requirements of the consumer. However according to the
estimation it has been analyzed that current market train support the organization to provide and
meet with the requirements of the consumers (Nagar and Gandotra, 2016).
The above-mentioned evaluation there is several elements and factors which create
impact on the business. Human resources management marketing themes Finance Department
are required to co-ordinate the company during the expansion of the business in order to get
more success and accomplish goals and objectives
Ethics and sustainability;
Apart from this when the discussion is about the ethics and sustainability of the business
Sasol limited the business is fully focused about to protecting the environment by less use of
chemical substances, they are focused to generate by less use of biodegradable wastage maintain
the appropriate balance of green house effects as well as providing the safety environment for
employee. so, they can work in a better way and improve the productivity of environment.
TASK 4
P5 Evaluate the different ways decision making can work effectively in a global context.
This is very essential for the organization to identify about the decision making process in
order to get positive outcomes. When the organization is evaluating their decision then they can
looking at the whole and entire situation that provide perspective of the situation in help the
organization to get positive outcomes. There are several ways through which the organization
can identify and evaluate their decision-making in order to get positive outcomes. It is very
important for the organization to identify about the decisions and collect the appropriate
information which is associated to the internal and external work factors (Sanden, 2016). after
that it is very required for the so Limited organization to identify about the several alternatives
and drawn the information and motions in order to evaluate the appropriate proof for the
alternative stop then it is required for the organization to choose appropriate alternative for the
decision so that they can get more positive outcomes after that it is required for them to take
appropriate actions and implement their strategies so that they can make appropriate decisions

for the company. After that it is necessary for the company to review and monitor their
consequences and decisions in order to overcome the uncertainty and risk factors
Apart from these factors also there are leadership style can be helpful in decision making within
the organization is as follows;
Transformational leadership- The transformational leaders are more likely to get share
the power of decision making as well as this also get establish the good environment for
employee for obtaining the organization goal and mission, this also work on the organization for
effective change that will get depends on the communication adaptability and get motivate team
members to increase expectations by the help of which the leaders can maintain a peaceful
environment and improve productivity of the business
Situational leadership-get practiced, that will get initiate the organizational behavior
and will working for the employee. This is also known as the life cycle theory of the result. This
is the leadership style according to the performance readiness of the functions. The Sasol ltd
make able to get adopt the situational theory for the factor as well as evaluation of the various
situation in order for recommending the various action for taken for their workforce, that will
enable the organization profitable.
P6 Determine and articulate the various routes to internationalisation an organization may adopt,
including key barriers.
In the competitive area every company are required and their purpose to expand their
business at the multinational level so that they can get more success and increase their more
consumer base. There are several kinds of methods buy them the organization SASOL can
expand their business at the multinational level. There are few ways through which the
organization can come into international market and which are mentioned below:
Licensing: this is the method in which the organization give their licence to other company
through which the organization conduct their operations and activity by the name of that
particular respective organization. This is strategies help the organization to facilitate expansion

of their organization at the global level. In context of SASOL Limited organization the company
are charging royalty free in order to use their technology and brand name for the respective
company. This strategy helped the organization to gain more opportunity in order to enhance
their profitability and efficiency ( Sandhu, Shamsuzzoha and Helo, 2018). There if you
drawback of this method that licence is constantly rely on the licensor that leads two cubes
competition in the Marketplace.
Exporting: this is the process in which the organization export their products and services in the
new market of the other country. In context of the SASOL Limited organization they adopt this
method in order to enter into international market by which they will become capable to drive
several opportunities and success. The organization SASOL is capable to enhance their
profitability and market presence by using exporting method.
Barriers while facilitating globalization
Major area of the internationalization is lake or deficiency of appropriate funding (Sohail,
2017). the lake of proper funding creates several problems for the organization in order to enter
into international market and enhance their efficiency. In order to overcome the period, the
organization are required to adopt merger and acquisition so that they can get more success and
it's become easy for them to move towards the internationalization. The barriers will be
discussed is as follows-
Import tax quotas- This is a type of tariff barrier that will helpful to trade the taxes and import
and export the cost of good. This is a government regulated tax that will get limits the monetary
values of goods that company can easily import and export during the particular time period. The
countries use these quotas to get assist and regulate the trade volume in between the other
countries
Embargo trade- will refers to banning the export and imports from one or more countries.
These can be get narrowed down more especially. As strategic Embargo will get prevents the
exchange of delivery goods with the country

CONCLUSION
From the above mentioned report it has been concluded that globalization the concept
which has a major Revolution for the organization and it is much amended concept in order to
generate new income and growth opportunity possibilities for the company in the global
environment. From the investigation it has been analyzed that the key factors and drivers of the
globalization are much essential for the organization because it provide appropriate path for the
organization in order to get success and opportunity. Along with this this report explains about
the challenge which is faced by the organization in order to operate in a global environment. And
also explain about the ethical and sustainable globalization on the functions of the company
which has a great impact on the performance of the organization. The globalization process helps
the organization to deal with online channel and enhance their revenue margin in the business
environment by using globalization method. It is very important for the organization if they want
to sustain in the market for the long term then they have to continuously work with Global
challenges and with effective strategies in order to overcome the challenges and get more
success.
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https://www.hermanmiller.com/en_mde/research/categories/case-studies/sasol/ ( © 2021 Herman
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