Globalisation's Impact on Leadership and Strategic Direction

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This report, prepared as a presentation for a junior executive at the London office of Sasol Limited, delves into the multifaceted influences of globalization on organizational governance, leadership structures, culture, and functions. The report meticulously evaluates the impact of globalization on organizational governance, leadership, and culture, using the McKinsey 7S model to assess strategic alignment. It also analyzes the influence of ethical and sustainable globalization on organizational functions, including the application of Hofstede's cultural dimensions. Furthermore, it explores various decision-making processes in a global context, the routes to internationalization, and the barriers organizations may face. The report provides a comprehensive overview of the challenges and opportunities that globalization presents to businesses like Sasol Limited, offering insights into navigating the complexities of the international market while considering factors such as legal, environmental, and cultural influences.
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Impact and strategic
direction
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Table of Contents
Impact and strategic direction.........................................................................................................1
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
L03...................................................................................................................................................3
P3Evaluate the influences of globalisation on organisational governance and leadership
structure, culture and functions....................................................................................................3
Mckinsey 7s model......................................................................................................................4
P4 Influence of ethical and sustainable globalisation on organizational functions.....................5
Hofstede’s dimension of culture..................................................................................................6
M3 Influence of globalization in application to theories and models.........................................6
P4Ethical and sustainable factors that need to be considered in global market..........................7
L04...................................................................................................................................................7
P5different ways of decision making can work effectively in global context.............................7
P6Various routes to internationalization an organization can adopt including barriers..............7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
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INTRODUCTION
The global business environment will be defined as the environment that can be defined as
the environment in different countries, with there are factors of internal and external factors
within the home environment of the organisation that will generally influence the decision
making on the resources as well as uses the several capabilities. Apart from this global business
environment can be defined as uncontrollable local and international interactions that will
influence that how the company will become operates (Bamel, and et., al2021). In general
environment is wider as well as considered as the broader environment of the company in which
the company generally will operates. Moreover, the global business will refer to the international
trade where the global business is related from the organisation and doing the several businesses
across the world, as well as globalisation is related from long- standing program is directed by
the economically advanced nations in order to get free up the international trade across the globe
by the several treaties. Now in the context of the company Sasol limited company as a junior
executive at London office will producing a presentation as well as concept of globalisation as
well as several challenges that create globalisation as well as several challenges for global
business such as Sasol in terms of new market development.
MAIN BODY
L03
P3Evaluate the influences of globalisation on organisational governance and leadership structure,
culture and functions.
The organisation Sasol limited is get affected by the terms of globalisation within the
various ways that will be explained below-
Organisational governance- this will get to defined as the system as well as process, in
which the organisation will trying to set its own goals and objectives and can implement some of
its decisions in order to achieve some of the important goals. In context of the Sasol limited
company and its organisational governance, that will be committed in order to manage the issues
of the company. They are applying the corporate governance structures and their producers in
order to get deliver its sustainable growth in the context of every stakeholder. However, through
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this way globalisation will impact its corporate governance as well as their method in order to get
achieve all its target (Dai, Byun and Ding, 2019)
Organisational leadership- this is defined as the concept of the required traits and skills
that will do motivates and encourages the staffs and company employee to start its work within
its most efficient way and gives an appropriate direction to every employee. Now, in order to
applying the globalization affects its leadership to better changing of organisation and will get
find various pathways to being apply all of the needed variations, that will be created through the
different phase of globalisation.
Organizational culture- this also means that there are few aspects which will show the
consumption of the ethics, values of the different styles as well as the staff members due to the
various affects of the globalisation of Sasol limited, the organisational culture will become cross
culture in which this can get affected from the globalisation of the Sasol ltd. Due to the various
affect of diversification in relation to the past behaviour of employee. So, this is time to get deal
with the diversification in an appropriate way.
Organisational function- These are the functions is defined as the activities that will be
get analysed by the company and their members. Because of the Globalization, the company
needs to be focused on some of the few activities, that would create, the several impacts on their
performance level and they capable to handle all the necessary activities at the international
levels.
Mckinsey 7s model
This is really an effective tool for making the planning and effective business performance
within the Sasol limited company. There are also some of the elements that is really important to
being achieve the success. This will be divided into several groups, that is hard and soft
elements.
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Strategy- this is related from the game plan that will forecast to how get survive within
the market place with several competitors. This is considered as the most necessary elements and
this is must be around the basic competencies of the Sasol limited.
Structure- This Sasol limited company will be choosing the several structure that will
based on the nature of the business that will demand the consumers and the many more things as
well as different structure that will be suitable for the organisation. Therefore, Sasol limited is
focusing on upgrading its goals towards its global market, that they will needs to get structure.
Systems- this will be defined as the set of interrelated elements that is mainly will be
designed to get achieve some of the certain goals. As the company is really unique and different.
As well as they are using their resources that will be unused in its past.
Shared values- These are get related from the various standard which are special and
unique. So, they are using the expected within the staff members that is doing its performance
Styles- The leadership styles will generate and impact within the behaviour and work due
to the global selected company that will be operating around the globe can face several
emergencies. So, they can be easily following the situational leadership (Globocnik, Faullant
and Parastuty, 2020)
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 lawful influence will get choose whether there will be the commercial
behind marketing of convinced goods that is either preparations, chemicals or anything else, this
can also become disturb the instrument of the corporation frameworks and their accounts or get
co-operate with regulars. Some of the permissible influence of Sasol limited management should
reflect while incoming into the original market is as follows-
The anti-trust law in significant combined oil and gas industry in overall country
The rule of judgement
Patent, rights
Défense of customer and e-commerce
Worried approximately health and safety law
Safety of overall data
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Environmental factor- as when Sasol limited earlier incoming within the innovative markets or
get preliminary a new occupational within the current marketplace to get inspect some of the
ecological normal that is get compulsory to activate markets. Now some of the environmental
factor is as follows-
Instructions and guideline of ecological pollution
The water and air effluence guidelines in oil and gas industry
Organization of leftover in elementary unit of materials
Attituded to as well as sustenance for the liveliness that is renewable
Reprocessing of expenditure
The variations of weather
The variations in climate.
Cultural factor of Sasol limited- the philosophy of civilization will be giving an influence on
the ethos of the society as well as atmosphere. Due to their communal opinions and size of
people that will show a main role. As well as Sasol limited will get appreciate the purchaser of
marketplace. Now the social factor will distress the business is as follows-
The ethos of persons like their gender roles as well as community agreements can
influence the corporate
The arrogance of persons like health-conscious ecological conscious
P4 Influence of ethical and sustainable globalisation on organizational functions
The influence of ethical and sustainable globalisation on organisation function is as
follows-
Structure- The structure is an integrated framework in which the organisation will
develop and will arrange the various types of authorities as well as allocation of the right and
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duties. With the help of the structure company will efficiently will get utilise its resources and
helps within the decision-making process.
Functions- The main function of the company Sasol limited is to manufacture the
chemicals. This is one of the most important and take the supplies and one of the most important
functions of the company that is interconnected with important of the Sasol limited company
within the positive and inclusive way, which will help Sasol limited, this helps in managing
challenges due to increasing their globalization.
Ethics- This will be the urgent need to change the priorities of the company, this will get
correct the forces of the company as well as material and wealth over the global forces that will
do promote the wealth material over the globe welfare as well as its justice to reinforce its
fundamental values within the form of human civilization that is all applicable within all over the
world.
Now, on the basis of the analysis of sustainable and the ethical globalization of the chemical
company is more significant. These are the some of the certain features which are necessary for
its sustainable decisions making within the organisation.
Apart from this when the conversation is round the ethics and sustainability of the
business Sasol limited the corporate is completely absorbed about to defensive the setting by less
use of biochemical substances, they are attentive to produce by less use of ecological expenditure
preserve the suitable stability of conservatory belongings as well as providing the security
atmosphere for operative. so, they can work in an improved way and improve the efficiency of
atmosphere.
Hofstede’s dimension of culture
Power distance- in the terms of the individuals all of the communities, that is not
considered as equal. With the respect of the power distance that will be defined as the stage in
which the less powerful members of the organisation that will be accept and expect that will be
power and distributed in its unequal. Within the terms of Sasol limited company that is
individually to the large number, that will get accepted within the hierarchical order in which
have no justification that is being necessary (Kaur, and et., al2019)
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Individualism- this will refer the degree of the interdependence with the community needs
in order to maintain among all of the members. In respect to individual society of the people, that
are expected to look for themselves. In respect of the individual society of the people that are
expected for looking after themselves. As this is really an important thing for business
environment.
Masculinity- In Sasol limited the organisation there is the higher level of the masculinity
is getting available for the managers that is being expected. However, this should be influential
as well as more confident and main focus that should be on its business performance.
Uncertainty avoidance- within the terms of these there will be low level of the preference
for ignoring the level of uncertainty. Within the company global business environment as well as
hard work is being taken up every schedule that will be get flexible within the nature.
M3 Influence of globalization in application to theories and models
The global business environment will create an impact within the fundamental values of
the business. The Sasol limited company is using the ADKAR model in order to create the
design that will affect the analysis of the Global market. This will be get explained as below;
Within the respect of the model of the organisation this will create some of the important steps in
order to creating the awareness in the workplace in context that will reforms the various
measures. This is knowledge related with varying method and ways of the profit maximization,
that will be the profit maximization that will represents the various capabilities of strategic. This
is also useful for shaping data as well as information this will also helpful to determining the
talent of business management in relation about the strengthening of changing the functions
within the certain ways as well as their remedies (McGee and Peterson, 2019)
P4Ethical and sustainable factors that need to be considered in global market
Correspondence to basic social needs: - In the international market it is significant to fulfil
altogether difficulties of customers. The uppermost managers would continuously similarly reply
to the requirements of audience and feel equivalent necessity to be satisfied of the society in
which they are really directing.
Reliability with the public: - In relationships of this in the international business
environment the factor of being socially and ethical responsible is necessary. An instant replay
should be specified to all the public.
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L04
P5different ways of decision making can work effectively in global context
In the global business environment, the organization that can be more satisfied in
comparison with the aspect of domestic background is explained below;
Major decision- this will be defined as the independent way of the decision making in
which the companies can be more operative at the choices and this will be based on the key role
within the process of decision making. This will be the main opinion that will get some of the
certain awards within the respect of the minor arena (Nyamrunda and Freeman, 2021)
Logical thinking- there would be the situation in which there will be the process of
decision making, that may not be get affected for the large interest of the chemical company. As
there will be more scope in order to its logical thinking of the overall making some of the certain
preference and choices.
Apart from these factors also there are leadership style can be co-operative in decision making
within the organization is as follows;
Transformational leadership- The transformational leaders are more probable to get
segment the control of choice making as well as this likewise get create the good environment
for member for procurement the society goal and task, this also effort on the organization for
actual alteration that will get be contingent on the announcement flexibility and get inspire team
associates to rise prospects by the benefit of which the influential can continue a non-violent
setting and recover output of the business
Situational leadership-get practiced, that will get pledge the organizational behaviours
and will employed for the operative. This is also known as the life cycle theory of the
consequence. This is the management style giving to the presentation willingness of the
purposes. The Sasol ltd make clever to get adopt the situational philosophy for the issue as well
as assessment of the numerous condition in order for endorsing the numerous act for taken for
their staff, that will enable the organization profitable.
P6Various routes to internationalization an organization can adopt including barriers
There are various diverse routes of internationalization will be explained below-
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International strategy: - Through this the facilities of exporting and importing they will
be able to increase their actions level on global basis. There are certain features which are
surveyed in this approach which are in the procedure of certifying and licensing. With
respects to this business started certain outside issues that affect the objective.
Multinational strategy: - On the foundation of this technique the biochemical
businesses like Sasol they prolonged their processes to varied nations by ensuing similar
way and commercial model. There were numerous walls like hurdles linked to
communication, structure, country philosophy and many more (Provencher and Kassel,
2019)
Barriers to internationalization: -
Economic barriers: - Practically all the minor administrations aspect certain hurdles in
the international market with reverence to physical as well as fiscal resources. There are
positive barriers like deficiency of finance, inexact price in the external market.
Market built barriers: - Here are certain decision-making difficulties in global market
which includes behaviours of administrators, absence of information concerning
administration rule, rarer assistances and many more (Schweiger, and et, al 2019)
Import tax quotas- This is a kind of tariff barrier that will co-operative to employment
the duties and importation and exportation the price of good. This is a administration
controlled tax that will get restrictions the financial standards of properties that business
can easily importation and export throughout the specific time period. The nations use
these allocations to get contribution and control the occupation volume in amongst the
other countries
Embargo trade- will denotes to prohibition the exportation and importations from one or
additional countries. These can be get pointed down more specially. As planned
Restriction will get stops the conversation of distribution goods with the nation
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CONCLUSION
Since the above report it has been decided that a corporate that works on global basis it is
important for them to be viable in numerous features like in the form of exploitation progressive
technologies, preserving and handling active communication. When a business works globally,
they need to make certain vital choices which depend on guidelines and rules, standards and so
on. In the international business atmosphere, there are numerous events which happen at any
opinion of time so it is significant for them to continue active so that they can deal with it in a
well-organized way. It has also remained resolute that businesses need to make positive
approaches through which all goals and purposes can be accomplished.
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