SASOL Limited: Strategic Decision-Making in a Global Context

This report provides an analysis of SASOL Limited within the global business environment, focusing on its structure, culture, and governance through the application of McKinsey's 7S model. It evaluates the influence of global operations on the organization and its adaptation strategies, while also applying Hofstede's Dimensions of Culture to demonstrate cultural influences. The report further assesses the ethical and sustainable factors that SASOL considers in the global market, along with a critical evaluation of strategic decision-making related to risk and diversification. Finally, it examines the range of strategic global expansion routes available to the company, providing a comprehensive overview of SASOL's approach to operating in a global context. Desklib offers this document and many other resources for students.

Global Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................2
PART 1............................................................................................................................................3
Covered in PPT............................................................................................................................3
PART 2...........................................................................................................................................3
1. Appropriate introduction and purpose.....................................................................................3
2. An explanation of structure, culture and governance within an organization such as SASOL
applying McKinsey’s 7S model to the organization....................................................................3
3. An evaluation of how the above has been influenced by global operations and how the
organisation has adapted to operating in a global market............................................................5
4. Applying Hofstede’s Dimensions of Culture to demonstrate how the organisation has been
influenced.....................................................................................................................................5
5. An evaluation of ethical and sustainable factors that the organisation has to consider in a
global market. .............................................................................................................................7
6. Critical evaluation of strategic decision making in relation to risk and diversification in a
global context...............................................................................................................................8
7. An assessment and critical evaluation of the range of strategic global expansion routes.......9
CONCLUSION ...............................................................................................................................9
REFERENCE ................................................................................................................................10
Books and Journal..........................................................................................................................10

INTRODUCTION
Globalization is the word that used to growing interdependence of world's cultures,
economies, and population that are buying from cross borders and trade in goods and services,
technology, and flows of investment. This is important for each organization who runs their
business in economy to analysis the demand and provide the products accordingly. In the global
business environment there are different types of businesses which are running by managing all
functions and activities effectively. The important thing for businesses is to focus on
technological progress and advances in international cooperation where variety of functions and
activities can be managed properly (Windsor, 2018). The effect of globalization is complex and
politically charged that direct impacts on business industries. In other words, global business
environment is defined as environment where sovereign countries with factors are involved to
the home environment and focused on decision making on resources uses and capabilities. This
provide an opportunity to grow their business and managing the higher productivity.
The report is based on SASOL Limited that is growing energy and chemical company
whose office is in Cape Town, South Africa. This organization is operating its business at
different places which can help to develop the business productivity and profitability. The
management understand the requirement and provide the services accordingly which supports to
attain the business goals. The report covers key factors that drive globalization, strategic
complexities, operating business in global market, and influence of globalization on business
environment.

PART 1
Covered in PPT

Speaker Notes -
Economical factor – This is related to inflation, saving rates, interest rate, and foreign exchange
rate that used to determine the aggregate demand and investment in economy. In relation to
SASOL Limited economic growth and employment rate are increasing by establishing business
in other countries which develop the business productivity. In other words, increase in exchange
rates and labour cost can be create the challenges for organization to grow their business and
affect the production and profits negatively.
Social factor – This factor involves culture, shared beliefs, education level, entrepreneurial
spirit, and attitudes that needs to consider in business organization. SASOL Limited is dealing in
energy and chemical products where it has focused on employees health and their safety which
can help to grow the business continuously. On the other side, changing in employee's culture
and attitudes can be create the challenge in their business which affected the profitability
negatively.
Technological factor – This factor is related to fast disrupting across the border that needs to
consider while running a business. This is important for organization to follow the new
technology and innovation at their workplace that can help to develop the business productivity.
In relation to SASOL Limited, new technology and innovation is being used by management in
changing environment that can help to grow the business and attain the higher productivity. In

other words, recent technological development can be create the challenges of higher cost and
reduce the profitability.
Speaker Notes -
Legal factor – This is related to legal framework and institution that should be followed by
business organization for the purpose of running their business and attaining the productivity.
SASOL Limited is following the Anti-trust law, copyrights, discrimination law and employment
law that should be followed for the purpose of maintaining higher performance and productivity.
On the other side, not following the employment law and copyright can be affected the business
negatively as it reduce the number of employees and brand image.
Environmental factor - This is related to environmental change such as climate, disaster, laws
regulating environment pollution, waste management, and attitudes towards renewable energy
that affects the business. In relation to SASOL Limited, management has followed the all
environmental regulations that can help to run the business and develop the business productivity
in changing environment.
From the above it can be understanding that in business environment there are some
factors which impacts on business positively as negatively that should be consider while running
business and managing the activities.

Speaker Notes -
Environment – This means a challenging environment that states how to adopt the changes and
managing the functions which can help to developing the business goals. In relation to SASOL
Limited, management is mainly focused on environment and supports to accept the changes
which can help to develop the organizational productivity and performance in competitive
environment. In relation to SASOL Limited, management mainly focused on environment and
give their contribution to make its attractive which influence the number of people and supports
to develop the business performance.

Speaker Notes -
Cost- For running any business and integrating with other there is need to focus on cost
as it is important to know which affects the organizational productivity and drive the
globalization. If management has not focused on cost then it will be difficult to operate business
in other country.
Market – To selling the products and services there is need to focus on market which is
important to have as it understand the customers requirement and provide the products
accordingly. In relation to SASOL Limited, market is important factor which is used by
management for selling its oil energy and chemical products which can help to develop the
organizational productivity and profitability.
Competition - While running and entering in to new market then there is need to know
the competition that is running the market. This is influencing factor that drive the globalization
by analyzing the business competition and providing the products and services accordingly that
can help to developing the business activities. In relation to SASOL Limited, there is need to
know the competition and then introduce its services which can help to developing the business
activities.

Speaker Notes -
Globalization is the process of integration and connection between countries where
number of businesses are running and following the higher business practices. This can help to
develop the business productivity by using innovation and new technology.
Increase the economy of scale – Digital technology is the important aspects for business
industry as by using new technology economy of country can be increased effectively. This helps
to meet with current requirements and supports to attain the higher productivity. This also helps
to run the business in different country by managing all functions and activities.
Reducing the cost of transportation – Digital technology is helpful for business organization as
it reduce the cost of transportation and maintain the communication across the nations. The aim
of each organization is to increase the profitability which is possible through digital technology
as it reduce the transportation cost and supports to improve the organizational profitability.

Speaker Notes -
Helps to increase the organizational productivity – In relation to SASOL Limited,
management use the new technology for the purpose of developing the organizational
productivity and performance by managing the all functions and activities effectively. This bring
the changes and new services in their organization which influence the number of customers and
helps to attain the higher productivity.
Advance in logistics, communication and finance – In relation to SASOL Limited,
management has adopted the digital technology in their logistics work, communication and
financial activities which can help to develop the organizational performance and productivity
effectively.
Access to new talent – With the help to digital technology new talent can be recruit by
organization that impacts positively on business industry and helps to attain the business goals.
Thus, from the above it can be explained that Digital technology is becoming more
important in each field and sector that make the task easier and supports to developing the
organizational performance. This also helps to develop the business performance and
productivity in the changing environment.

Speaker Notes -
Globalization refers to an open flow of information, goods and technology among countries as
well as consumers that can help to developing the business activities.
Ethical business practices – For business organization it is important to follow the ethical
principles and practices which helps to develop the organizational productivity and profitability.
In different nation there is different ethical practices which create the challenges in running the
business. In relation to SASOL Limited, new ethical business practices is the bigger challenge
that might be create the difficulties to operate the business.
Organization structure – This means systems and activities that need to perform in a
organizational structure which can help to managing all the functions and develop the
productivity. Due to globalization when company enter in to new market then facing the hurdle
in managing the work in to a organization structure that affected the organizational productivity.
Improper supply of products – The business market is very competitive where it became to
understand the customers demand and offer the kind of products. Due to globalization it became
more difficult for organization analysing the demand and supply the products and services
accordingly which can help to develop the business productivity and profitability.

Speaker Notes -
Moreover, management is require to follow the all business ethical practices which
should be followed which can help yo maintaining ethics and principles which can help to
attaining the higher performance in market. To overcome the competitive challenge, there is
need to conduct the market analysis and providing the products and services accordingly which
can help to deal with changes and new technology smoothly and supports to attaining the
competitive advantages.

Speaker Notes -
Hillison, K., 2020. Studying for Your Social Work Degree: Jane Bottomley, Patricia Cartney and
Stephen Pryjmachuk (eds.) St. Albans: Critical Publishing Ltd., 2018, 117 pp.,£ 14.99, ISBN:
978-1-912096-74-9.

Kariippanon, K. and Gurruwiwi, G., 2020. Mobilising control and dissent: navigating the digital
landscape in a remote Aboriginal community. Information, Communication & Society, pp.1-15.
Rozenfeld, I., Yemini, M. and Engel, L.C., 2020. Walking between the raindrops: the role of
religion in globalised schooling. Discourse: Studies in the Cultural Politics of Education, pp.1-
16.
Yaakub, M.B.H., Othman, K. and MB, A.B., POSTGRADUATE CURRICULUM IN THE
CONTEXT OF GLOBALISATION FROM THE PERSPECTIVE OF KNOWLEDGE
MANAGEMENT PRACTICES. EDITORIAL BOARD, p.66.
Zajda, J., 2020. Globalisation and Education Reforms: Emerging Research Issues.
In Globalisation, Ideology and Education Reforms (pp. 1-11). Springer, Dordrecht.

PART 2
1. Appropriate introduction and purpose
In the business environment range of businesses are running where it is important to have
clear understanding about market as it comes to know what is going on market and how the
problems can be resolved. This part of the report highlights on strategic planning and objectives
which are used to complete the task and attain the productivity. For management it is important
to conduct the environment analysis and make efforts to solve the problems which supports to
managing the all functions. This report is covering how culture, structure and governance
impacts on organization, influence by global operations, Hofestede culture dimension, ethical ans
sustainable factors that drive the organization (Moroz. and Gamble, 2021).
2. An explanation of structure, culture and governance within an organization such as SASOL
applying McKinsey’s 7S model to the organization.
The structure of organization refers as rules, norms, and policies that are formulated by
organization for the purpose of achieving the business goals and objectives. The culture of
organization involves value behaviour and attitudes of the working employees who manages the
functions and give their contribution to complete the work on time. The structure, culture and
governance in relation to organization is important to consider as it supports their staff to accept
the changes and develop the organizational functions. This can be explained by using
McKinsey's 7S model that is defined below:
Structure – This refers as way where organization is organised and shows chain of
command and accountability relationship which can help to develop the organizational
performance. In relation to SASOL Limited, Functional organization structure is followed by
management where similar activities are grouped and performed effectively. This can help to
make quick decision as people are free to communicate easily (Mariappanadar, 2019).
Strategy – This refers curated business plan that allows the organization to formulate a
plan of action for achieving sustainable competitive advantages. The management of SASOL
Limited uses the competitive pricing strategy which impacts positively on the organization and
its performance (Herrera, and de las Heras-Rosas, 2020).
System – This refers a system which is telling business and technical infrastructure of
company that establishes workflow and chain of decision making. This is important for

organization to use the proper system that can maintain the workflow. MIS system is used by
SASOL Limited for managing and organising the business activities (Drolet, Désormeaux-
Moreau, Soubeyran, and Thiébaut, 2020).
Skills – This showing the skills and abilities of a company and individuals who are
working at the workplace, The employees and employer of SASOL Limited is having
communication skills, writing skills, decision making skills and problem solving skills which can
be used to perform assigned roles and responsibilities clearly (Domínguez-Escrig, and et.al.,
2019).
Style – This showing the code of conduct that can be evaluate by knowing the attitude
behaviour of senior employees at the workplace. The management of chosen organization has
adopted the participative leadership style which is more effective and productive used to develop
the business organization and productivity (Awan, Sroufe, and Kraslawski, 2019).
Staff – This states talent management and other employees who are important to perform
the organizational activities. In relation to SASOL Limited, having skilled human resources and
staff who understand organizational goals and complete the work on time (Schulze, Bals, and
Johnsen, 2019).
Shared values – This involves vision, mission and objectives of company which is
consider by chosen organization for the purpose of maintaining effective design and attaining the
competitive advantages in the period that helps to attain the business goals (Akhmetshin, and
et.al., 2020).
3. An evaluation of how the above has been influenced by global operations and how the
organisation has adapted to operating in a global market.
The above discussed Mckinsey model states culture, structure, and government is require
to consider while running the business as it motivate to work hard and develop the organizational
performance. In Global market, management is following the regulations and organization make
efforts to complete the task. The management of SASOL Limited enters in to new market and
give their contribution to manage the all function by accepting the changes and appropriate
structure. This can help to increase the organizational sales and profitability in the competitive
market and use the digital technology to reach the potential customers which can help to attain
the competitive advantages in changing market. This also supports to accepting the challenges in
smooth manner and develop the organizational productivity (Cheng, and et.al., 2019).

4. Applying Hofstede’s Dimensions of Culture to demonstrate how the organisation has been
influenced.
The culture of organization is defined as underlying beliefs, values and ways of
interacting that use to contribute to the unique social and psychological environment. This is
important for organization to understand the culture and values of organization which is used to
knowing the requirement and filling them properly that can help to develop the organizational
productivity (NCrane, Matten, Glozer, and Spence, 2019). The culture dimension is the main
aspects that states various factors to which cultural group can be found by identifying the values,
behaviour and culture. SASOL Limited is following the Hofstede’s Dimension of culture that
influence the organizational working that is explained below:
Hofestede’s Cultural dimension – This introduced by Geert Hofestede, who states
difference between culture across countries and disclose the ways that used to develop business
activities. SASOL Limited is using cultural dimension for the purpose of developing the business
activities that are explained below:
Power Distance Index – This index is showing the degree to which power and inequality
can be permit and it helps to managing the function of country. This involves high and low
power index that showing unequal and hierarchical distribution of power. In relation to SASOL
Limited UK, low power index is having in UK that means in organization supervisors and
employees are considered almost equal and they perform all functions effectively (Aithal, and
Aithal, 2019).
Collectivism vs. Individualism – This dimension is relate to strength of ties that people
have to others in their community. This also states in a country people believes on individual
working and collective working. In relation to UK, high IDV is followed where people are
working in collectivism and achieve the business goals. This also respect for privacy by
accepting challenges and getting the rewards (Gottardello, and Pàmies, 2019).
Uncertainty Avoidance Index – This dimension showing the relation with aspects of how
well people can cope with anxiety. This is managing the ambiguity and uncertainty which needs
to be tolerate. In UK, where SASOL is established and operating the business is having low
Uncertainty avoidance index that can help in openness to change or innovation, focusing on open
ended learning and decision making that can help to perform the organizational activities and
performance (Mak, and Chang, 2019).

Femininity vs. Masculinity – This dimension is related to distribution of roles and
responsibilities between men and women. The masculinity is connected with men where as
famininty is connected with female who perform their roles independently. In relation to UK,
there is high MAS which is used by SASOL Limited to be aware different gender roles, develop
the feeling of pride and important to managing the all functions (Markopoulos, and et.al., 2021).
Short term vs. Long term orientation – This dimension is related to time horizon people
that plays important role in whole country. In long term orientation it tend to be pragmatic where
task can be done in longer duration. On the other side, short term reflecting the short term gain as
financial statement are prepared on quarterly basis. In UK, Long term orientation is followed by
country that can help come to know and complete it on time (Nazari, Liaghat, Akbari, and
Keshavarz, 2018).
Thus, by using Hofestede cultural dimension, SASOL Limited is following the all
operational activities by focusing on country culture which can help to provide the good quality
of services and maintaining the higher productivity at the workplace.
5. An evaluation of ethical and sustainable factors that the organisation has to consider in a
global market.
Ethics are the set of rules harnessed to govern an industry and following the certain
approaches. If anyone is making the decision then there is need to consider ethics surrounding
the decision. It has seen that ethical decision impacts on organization reputation and deal with
changes. Sustainable globalization representing a breakthrough and fundamental transformation
that state show people approach to doing business in whole world. There are some ethical and
sustainable factors which involved in global market such as:
Ethics – This means values, and moral principles that should be used by organization
while running a business. For companies it is needed to follow the ethical principles which
supports to manage function and complete task. SASOL Limited has followed the ethical
principles such as maleficence, health maximization, efficiency, and respect for autonomy that
can help to managing the functions and developing the business productivity (Racz, and et.al.,
2018).
Cost – To running and managing the organizational activities cost is important as it helps
to know how much cost can occurred at the workplace and how it could be covered. This factor

affects the SASOL Limited as management identify the cost and make efforts to reduce the cost
by avoiding unnecessary cost and expenses that occurs in organisation.
Market – This factor is important for each organization as management of SASOL
Limited conduct the market analysis and introduce the products and services in challenging
environment which can help to influence the number of customers and develop the business
productivity in the global market. This also bring the changes in their working and maintain the
higher productivity (Zahari, and Romli, 2019).
Competition – Competition is major term that state state many similar businesses are
available in market and it affects the organizational functions. SASOL Limited is focusing on
competition where it maintain the sustainability by influencing number of customers through
providing better quality of products and services that can help to maintain the higher
productivity and profitability.
Thus, from the above explained factors it can be evaluated that management of
organization should be consider all such factors in their business and make efforts to overcome
the challenges. This can help to increase the organizational productivity and supports to attain
the competitive advantages in changing environment. This also helps to complete the task timely
and managing the all functions.
6. Critical evaluation of strategic decision making in relation to risk and diversification in a
global context.
Organizational decision making is the process of making choice from the among
alternative course of action by also including inaction. This is important for each organisation to
formulate the effective strategy decision by analysing and conducting the global business
environment. The management is require to understand the needs and find out the risk which can
help to bring the strategies accordingly and develop the business performance (Yin, Moon, and
Lee, 2019). Leadership is the process of influencing employees by understanding their demand
and motivate them towards organizational working. The management of SASOL used the
participative leadership style in which all employees and employer works collectively by using
new ideas and thoughts to working. The selected organization is formulate the planning to enter
in to international market so risk and diversification strategies are as used to analysis business
performance such as:

To conduct the environment analysis – This is important strategy which is used by
business organization before entering in to international market that affects the business
performance. SASOL Limited is using environment analysis strategy while entering in to new
country and bring the change in their products and services which can help to develop the
organizational performance (Vătămănescu, and et.al., 2020).
Risk diversification strategy – This strategy is related to identification of risk and
diversity it by using available resources and develop the business productivity. This strategy is
used by SASOL Limited when it is entering in to market wherein it identify the risk and bring
the changes at their workplace which can help to developing the business activities and
maintaining the higher productivity. This also help to organise the functions and give their
contribution to complete the working in effective time period.
Decision making strategy – To start and running business an individual is require to take
the decision properly and it state what needs to do for developing the business organization. In
relation to SASOL Limited, management is playing important role who used the decision making
strategy in their organization by managing the all functions and activities (Naidoo, and Verma,
eds., 2019).
Innovation strategy – This is important for chosen organization to use the innovation
strategy as it helps to introduce the new products and services in emerging market and develop
the organizational productivity by managing each function and activity at the workplace
(Carbery, and Cross, eds., 2018).
7. An assessment and critical evaluation of the range of strategic global expansion routes
In the global business environment there are various routes which can be used by
companies to expand their business and maintaining the higher performance effectively. These
are explained below:
Licencing – This can be explained as official permission to do or use by a business
concern for the purpose of expanding its business activities (Bhagra, and Sharma, 2018). In this,
a official permission is given to business or enterprise that they can operate its business in other
country by managing resources and capital.
Franchise – This route is related to expanding the business and running in other place with
the approval of business owner and government. This can help to increase the business activities

and sales by increasing number of customers. This also helps to maintain the higher performance
by entering in to global market (Hamilton, and Webster, 2018).
From the above SASOL limited is recommended to use Licencing route which can be used
to develop the business activities and performance by entering in to new market. This can help to
develop the organizational productivity and profitability effectively.
CONCLUSION
From the above discussion, it can be concluded that Globalization is the integration
between two and more than two countries by following the regulation and laws. By entering in to
new market there is need to use the various routes in global market that can help to growing the
business in competitive environment. McKinsey model is used to focus on structure, culture, and
governance that impacts on organizational performance and profitability. The cultural dimension
is related to various aspects that depends on country and impacts on business industry.