Analysis of SASOL's Global Business Environment and Strategy Report

This report provides a detailed analysis of SASOL's global business environment, exploring its organizational structure, strategy, and administrative framework through the application of McKinsey's 7S model. It examines the influence of multinational operations, the impact of Hofstede's cultural dimensions, and the social and ethical considerations relevant to operating in a global market. The report critically analyzes strategic decision-making processes, including diversification and risk management, and evaluates various strategic exploration routes, such as licensing, franchising, and exporting. The conclusion emphasizes the importance of selecting appropriate strategic approaches for global expansion. The report also discusses the impact of political fluctuations, technological developments, and the global business climate on multinational operations and the importance of sustainable internationalization for the chemical and energy company. The analysis also includes the significance of finance and marketing for global expansion.

Global business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
Description of culture, administration and framework within company for example
application of McKinsey's 7S model......................................................................................1
Analysis of process of influence of multinational operation and by the process company can
adopt these in multinational market.......................................................................................2
Application of hofstade dimension of culture and process in which it is effected.................3
An analysation of social and justifiable elements that the firm has to think about in a world
market.....................................................................................................................................4
Critical analysation of strategic decision taking in case to diversification and risk in the world
context....................................................................................................................................5
Evaluation and critical analysation of the range of strategic exploration routes present in firm
................................................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Global business environment refers to surrounding of the various countries that can affect
the function and potential of the sources. This assessment will cover analysis of ASOL. ASOL is
a global organisation operation in chemical and energy. This reports describes framework,
culture and administration in the company and analysis of effect of global operation. The main
discussion is based on effect of hofstede dimension of culture. It will also let reader know about
various types of worldwide growth.
Description of culture, administration and framework within company for example application of
McKinsey's 7S model
McKinsey's 7S model function as tool which describes the structure of the company. The
objective of this model is to have the best outcome and increase the effectiveness of the
company. Seven key elements of the company incorporates style, framework of the company,
policies, system and workers. Description of the framework is given below.
Structure: to develop the organisational chart the chain of instructions and responsibility
for the occupational relationship is required and it gives a way to organise it. SASOL is the
company that build the structure of roles and liabilities which make them achieve benefit in the
global market.
Strategy: strategies can be defined as making plans and structures of further activities to
meet he goal of the company. Strategies are made to achieve competitive advantage and value of
an organisation. SASOL also makes such strategies to achieve the goals and to survive in the
international market. It also makes strategies to compete with other organisation in the
international market.
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System: it is structure and of business also includes the techniques that enhance the speed
of work and also helps to make decision on time. SASOL also grow such systems that helps it
make decisions quickly and also make employee to participate in decision making process to
make them realise that their opinion also matters for the company (Demir and et. al., 2019).
Skills: developed skills means to have capabilities and competence to meet with the
professional requirements. Developed skills make employee to deal with advanced technologies
and communicate effectively. Developed skills make employees to contribute themselves to
achieve the goals of the organisation.
Style: it is the way of the employees to interact and by the interaction develop code of
conduct. HR and mangers of SASOL are required to develop various styles which is important in
marketplace for the better outcome.
Staff: staff selected for the organisation must be skilled thus they can contribute to
achieve the goals of the company. SASOL is also doing so. SASOL is hiring employees who are
skilled and talented so they can work for the growth and betterment of the company. Training
and development opportunities are also being provided by the company for the employees who
do not have experiences in working such field.
Shared values: to maintain the design of company adjustment of various elements is also
plays a crucial role. Goals and values are also very important to form substructure of aan
organisation.
Analysis of process of influence of multinational operation and by the process company can
adopt these in multinational market
Global operation is global market and it is assisted by the component available in the
external and internal surrounding. To expand the business various organisations are looking for
global market and making strategies to compete with other organisations. There are a number of
components and process in which multinational business operation is influenced and these
components are mentioned below:
Political fluctuation: political structures need to be faced by an organisation in a global
market which can influence the business. Increased monetary policy is a positive fluctuation in
business which helps mangers of the SASOL to upgrade their revenue and operation in global
market.
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Technological development: having advance and updated technologies helps
organisation to survive in global market and to give a strong competition to other organisations.
Company can be run effectively and have better outcomes by using advanced technologies.
Company use updated technologies to meet the goals and to conduct the operation in an effective
manner (Hariharanath, 2019). Company should have such technologies to manage a large data of
the customers and these data can be handled easily by using such technologies. All the data are
managed so purchasing methods will be easier.
Global business climate: it is very important for business in the global market that
multinational business climate is increasing so fast. For development and improvement of the
operation organisations are maintaining global business environment.
Application of Hofstede dimension of culture and process in which it is effected
This theory was introduced by the greet Hofstede in the year 1980. It gives structure
which helps to people to know various culture in different nations (Hozdić, 2020). It helps to
identify the differences among the different nations and their culture.
Power distance index: power and inequality can be adopted by the limit which is
included in this category. High power index means it is adopted by the company where as low
power index shows it is not adopted (Lane, 2019).
Collectivism against individualism: it is a kind of category that have levels which
community and society can combined into small groups as well as accept obligations. SASOL is
a company which focus to make understand importance of collectivism.
Index for avoiding uncertainties: it includes levels by which unpredictability is
adopted by an organisation. Companies having unpredictability and risk have low uncertainty
index.
Masculinity against femininity: it includes recommendation of community for their
attitude, goals and equality in organisation (Steigele, and Haeufl, 2019).
Self-Control opposed to satisfaction: This is one more dimension that is together with
level to which group of people satisfy their wish and also go around ways in which group of
people control impulse and wishes. SASOL is accepting indulge side in their firm that give the
permission to society for free satisfaction in context to taking fun in life and also having enjoy
(Ciacci, Ivaldi, and Soliani, 2021).
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Short term opposes long term intention: This is a side that comprise level to which
society is taking into consideration time orbit. Concentrate on SASOL is for one long term
intention as they are building attempt for very long term achievement for the firm.
An analysation of social and justifiable elements that the firm has to think about in a world
market.
Social extension is connected to those concepts in which administration of the firm has
filed both transforming information and ethics in the operation of their firm. This is more
significant for the administration of the firm that they grow efficient and effective template in
their firm so that the sustainability and ethics can be obtained. There are various kinds of
resources and persons are attached with the administration of the SASOL. This is the
responsibility of the managers that they concentrate on the rights of human, standards of working
and additional social problems in the firm. The purpose of the firm has evolve positive
environment in the firm which assist them to set their business in global markets (Halbert and
Ingulli, 2020).
Retainable internationalisation is associated to those ideas under which the progress in
the internationalisation are made without losing the improvement of the future. Imperishability is
one of the most significant points of business because it assists the firm to evolve impactful
techniques and rules in regarding to expansion and another business function. Imperishability
assist the firm to make measurable growth in their work place so that the business can be
increased in various countries of the world. SASOL is a firm which do their market in chemical
material and the achievement in their business is more significant because of their very harmful
product capacity. This is more significance for their administration of such firm that they do their
work on only those function in their firm which promotes natural culture and save their
administration from various types of defects. Imperishability assist the firm to enhance their
service user base because most of the service user in the field are fascinated towards the
imperishable firm. The firm is doing some planning to make their entry into the world market by
making imperishable internationalization like as using care resources in good manner, minimum
wastages, recycling resources, and managing the changes in climate which can help to manage
operation in global country (Khajeheian, Friedrichsen, and Mödinger, 2018). The motivation of
imperishable version to social globalisation on business's function are given below:
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Finance: If the administration of the SASOL desire to make their footprints on
international market the money is the most significant problem which need concentration from
the administration of the firm. This is very significant for the administration of the firm that they
concentrate on the elevation of various sources of funds which can be used in the exploration
rules of the firm. If the firm desire to manage sources of money the they have to use their
resources significantly and with their highest returns. If firm does not have sufficient finance
then the plan of their exploration are not possible in global market (Rao, 2019).
Marketing: This is one of the significant elements for the fascination of service user
towards the firm. The marketing of the firm plays a significant role in the achievement of their
policies.
Critical analysation of strategic decision taking in case to diversification and risk in the world
context
In the market risk is always present and this risk is also enhancing in global market and
can make impression over planning of firm. In order to manage of it, firm required to make
impactful decision for firm. SASOL is a firm which is taking the additional help for strategic
board of director and administration that give them permission to take various decision for firm.
In the recent time, it is necessary for firm to take planed decision in order to take decision very
fast and also to reduce the risk, which is present in business that give them allowance to achieve
success in the market.
Evaluation and critical analysation of the range of strategic exploration routes present in firm
There are various techniques which is accepted by managers of the firm for the purpose
of exploration of business. These techniques have their own disadvantages and advantages.
Explanation of all these techniques in case of company is given below:
Licensing: it can be defined as signed agreement between licensee and licensor which
give right to licensee to market the brand of licensor. SASOL managers provide license to
another party to expand their business (Rezaee, 2019).
Franchising: It is the other techniques for world exploration in which service and
product of firm who is evolving trademark of business, is franchisee and the distributor, who pay
to take right can carry the business. It is an impactful technique for the purpose of exploration of
business for SASOL as it diminishes the harmful elements of business.
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Exporting: this one of the techniques for the purpose of exploration of business at global
level in which business is making service and product in the home country and then sell out in
other country. SASOL mangers can accept these techniques for the purpose of exploration of
their business in the world level (Tasheva, and Nielsen, 2020).
CONCLUSION
From the above discussion, it is concluded that the SASOL must have to choose
licensing method so, that it can easily explore their business in the global market with the
assistance of local people. This is the easy method for exploration of business. Also concluded
that the world business culture is keeping various up and downs and in order to reduce of it,
business needs to use various techniques.
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REFERENCES
Books and Journals
Ciacci, A., Ivaldi, E. and Soliani, R., 2021. A Potential Business Environment of Smart Cities: A
Subjective Approach. In Strategic Outlook in Business and Finance Innovation:
Multidimensional Policies for Emerging Economies. Emerald Publishing Limited.
Demir and et. al., 2019. Ambient intelligence in business environments and internet of things
transformation guidelines. In Guide to Ambient Intelligence in the IoT Environment (pp.
39-67). Springer, Cham.
Halbert, T. and Ingulli, E., 2020. Law and ethics in the business environment. Cengage Learning.
Hariharanath, K., 2019. BIG Data: An Enabler in Developing Business Models in Cloud
Computing Environments. In Global Virtual Enterprises in Cloud Computing
Environments (pp. 171-200). IGI Global.
Hozdić, E., 2020. Integrating cyber and physical environments for adaptive process control in
work systems. In Handbook of Research on Integrating Industry 4.0 in Business and
Manufacturing (pp. 164-191). IGI Global.
Khajeheian, D., Friedrichsen, M. and Mödinger, W., 2018. An introduction to competitiveness in
fast changing business environment. In Competitiveness in emerging markets (pp. 3-11).
Springer, Cham.
Lane, A.P. ed., 2019. Urban Environments for Healthy Ageing: A Global Perspective.
Routledge.
Rao, I., 2019. Competing values in Asian business: evidence from India and Dubai. Journal of
Asia Business Studies.
Rezaee, Z., 2019. Business sustainability, corporate governance, and organizational ethics. John
Wiley & Sons.
Steigele, H. and Haeufl, M., 2019. Management Systems in digital business Environments:
Howto keep the balance of agility and stability while establishing governance
frameworks (Vol. 3). BoD–Books on Demand.
Tasheva, S. and Nielsen, B.B., 2020. The role of global dynamic managerial capability in the
pursuit of international strategy and superior performance. Journal of International
Business Studies, pp.1-20.
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