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.