Comprehensive Analysis of SASOL Limited's Global Business Environment

This report provides a comprehensive analysis of SASOL Limited's global business environment. It begins with an introduction to globalization and its impact on business operations, followed by an application of McKinsey's 7S model to explain the company's culture, structure, and governance. The report then utilizes Hofstede's cultural dimensions to demonstrate how the organization has been influenced by cultural factors. Furthermore, it evaluates the ethical and sustainable considerations SASOL Limited addresses in the global market and assesses how these factors affect decision-making. The report also examines the strategic expansion routes the organization has taken, particularly franchising, along with their advantages and disadvantages. The conclusion summarizes the key findings, emphasizing the importance of understanding the global business environment for successful international operations. The report references various academic sources to support its analysis.

Global Business Environment

INTRODUCTION...........................................................................................................................3
PROJECT 1......................................................................................................................................3
(Covered in PPT).........................................................................................................................3
PROJECT 2......................................................................................................................................3
1. Explanation of culture, structure and governance of the organisation applied McKinsey's 7S
Model...........................................................................................................................................3
2. Applying Hofstede's dimensions of culture to demonstrate how organisation has been
influenced.....................................................................................................................................5
3. Evaluate the ethical and sustainable factors that an organisation has consider in global
market..........................................................................................................................................5
4. Assess how such factors have affected decision making in the global context.......................6
5. Assess which strategic expansion routes the organisation took and analyse both advantages
and disadvantages........................................................................................................................6
CONCLUSION................................................................................................................................7
REFRENCES...................................................................................................................................8
.........................................................................................................................................................8

INTRODUCTION
Global business environment is that which include factors of all over the world. In simple
term it can be said that, it is environment of different sovereign countries, with factors exogenous
to the home surrounding of the company, influencing decision making on resources use and
capabilities. Moreover, it is classified into external as well as internal environment. Company
which is doing their business at global level have to analyse the social environmental factors.
The report is based on SASOL Limited which is fast growing energy and chemical enterprise
and it is located in South Africa. The company has extended their business in Canada, Gabon,
Australia, Mozambique and also try to expand in several other nations also. This assignment is
going to explain concept of globalization along with their driving factors which directly impact
on business operations.
PROJECT 1
(Covered in PPT)
PROJECT 2
1. Explanation of culture, structure and governance of the organisation applied McKinsey's 7S
Model
McKinsey's Model has seven areas of company these all are divided into soft and hard
areas. In which, Strategy, structure and system comes under hard elements as well as these are
easier to make out and manage their business activities (Sassen, 2016). There are 7S of this
model that are described as under:
Strategy – It is the planning which done as well as formulated by enterprise for achieving
sustainable competitive advantages and successfully struggle in the large market area
(Laszlo and Cescau, 2017). SASOL Limited is implementing business expansion strategy
which will help them in placing their business in other countries also.
Structure – It is represents the way of business departments and units which are arranged or
organised information of the organisation. This is one of the most observable as well as easy
to change component of the framework. Company is following divisional structure because
there are several department and according to which employees are divided.

System – It is the procedure or processes of the company which can disclose day to day
activities of the business and examine how decisions should be taken. Finance is the
important system of organisation because for expanding business there is requirement of
funds which is allotted by finance division. Apart from this, Human Resource department is
that which help in hiring new employees which is required in expansion process.
Skills – These are the capabilities and abilities which help staff members are perform their
work in better manner in the firm. Apart from this, it also involves capabilities as well as
competencies. At the time of modification in organisation and business environment, there
are several issues which occur these are related to employee’s skills that are need to
reinforce their latest strategy of new structure (Botha, Kourie and Snyman, 2014). Major
skills required in the employees are that they working in competitive environment. If there is
requirement of some other skills then company have to frame proper training program for
them.
Staff – It is the important part of the company and organisation must have to look that how
much employees are required for meeting there day to day targets. In SASOL Limited
position of marketing manager is vacant which is necessary to be fulfilled because they are
the one who help in advertising as well as promotion of goods and services in new market
area.
Style – This represents the way in which company can manage by top level department, how
they communicate and what are the major actions they are taken. Along with this, it is
considered as management style of firm's leaders. In the context of SASOL, they are also
adopting management styles which help in performing effective functions and activities to
achieving set goals. If major decisions are communicating with employees also then owner
of organisation feel them as part of the enterprise.
Shred value – This core of McKinsey 7S model. These are the norms and standards which
are analyse employee’s behaviour and organisation activities (Hamilton and Webster,
2015). These are the foundation of an organisation that can assist in staff members to follow
all rules and regulations (Buckley, 2014). In SASOL Limited teams are build as per the
skills and knowledge of employees as well as they treat their employees as member of their
company.

2. Applying Hofstede's dimensions of culture to demonstrate how organisation has been
influenced
Hofstede's cultural dimensions theory is the framework for cross cultural communication.
It is framed or design by Geert Hofstede and there are several types of Hofstede's dimensions of
culture that are described as follows: Power distance – This dimension reflect that the degree through which less powerful
people of the society allow and except the power which is disseminated unevenly. In the
organisation power within employees are distributed unequally as per their position.
When SASOL Limited expand their business at international level they have to given
authority as per job position (Hofstede's Cultural Dimensions, 2018). Individualism V/S Collectivism – It is that dimension which primarily focuses on the
questions related to that whether individuals choose the knit network of members as well
as have a preference to be left alone (Kasemsap, 2016). While expanding business there
is requirement of individualism so that everyone can do their work in proper manner. Uncertainty Avoidance – This dimension states or expresses the degree where a society
member feels uncomfortable with incertitude and confusion. SASOL Limited can face
several uncertainty while business expansion so company have to avoid all these and
continuously work for achieving their goals.
 Masculinity V/S Femininity – In this, Masculinity reflects the preferences in community
related to achievement, ferociousness and material reward for success and growth.
Whereas, Femininity is related to the preferences for cooperation, collaboration, caring,
modesty, quality of life and so on.
3. Evaluate the ethical and sustainable factors that an organisation has consider in global market
There are several ethical and sustainable factors which are considered by SASOL limited in
the global market area. Explanation of these is as follows:-
Engage in sustainable processing activities – Ethical consideration is essential for the
organisation because it help them in reducing the negative impacts on the immediate
environment where they can easily operate their business (Caiazza, Shimizu and Yoshikawa,
2017). SASOL limited do procedure of transform the natural gas into energy as well as chemical
products which involves fuels, base oils, waxes, transport, naphtha and so on. They needed

developing waste environmental policies and strategies which can be useful for maintaining
healthy environment.
Treat employees fairly – An ethical approach implemented to employment then it will result
in promoting the overall well being, employees and their security as well as safety while doing
work (Barnwell, 2014). The ethical consideration suggests that organisation must pay salary to
their employees according to their work to deal with the unexpected emergencies. If SASOL
Limited wants to develop their business activities in the several other nations so they have to
treat their staff members equally because they are the one who will help in expansion activity.
Insist on integrity in business relationship – Respective organisation desire to expand their
business at global level so for them it is necessary to build good relation with the other
international companies of that particular nation. Along with this, the firm needed to develop
strong relationship with their suppliers as well as customers also and the acceptances of
competitions without excessive influence on the awarding orders.
4. Assess how such factors have affected decision making in the global context
This is needed for an company to take appropriate decision related to international business
operation because there are several factors which gives impact in negative as well as positive
manner. When enterprise try to expand their business in other location this will assist them in
gaining higher profitability and income (Compact, 2014). below mention are the factors which
affect decision making of SASOL Limited :-
 Decision making is one of the essential functions for company because it can be
beneficial for taking appropriate position in the global market. When organisation treat
their staff members equally then it will directly result in performing all work in given
time period for achieving pre-determined goals and objectives.
 It is required or can be beneficial for company when they allow their staff members in the
decision making procedures because it will assist them in analysing their views and
perception regarding organisation current strategy as well as give some latest ideas and
though for better performance of business.

5. Assess which strategic expansion routes the organisation took and analyse both advantages
and disadvantages
There are several ways of expanding business in other countries but SASOL limited select
franchising for entering in international market. In this type of expansion franchisor give the way
of performing business, ongoing procedures and several other for ongoing of business (Cavusgil
and Knight, 2015). This is the easy way of expanding business and it involves several advantages
as well as disadvantages. Description of these are as follows :-
 Advantages – SASOL Limited can use these there brand name as well as trade mark at
international level. Moreover, there is less chances of business failure in franchise.
 Disadvantages – Franchising is time consuming as well as expensive there is requirement
of huge capital for expanding business around the world. Apart from this, every nation
have different culture so it is not guaranteed that expanding business will succeed in other
nations.
CONCLUSION
From the above discussion it has been concluded that Global business environment is that
which include factors of all over the world. In simple term it can be said that, it is environment of
different sovereign countries, with factors exogenous to the home surrounding of the company,
influencing decision making on resources use and capabilities. Moreover, it is classified into
external as well as internal environment. Apart from this, globalization is the term which referred
enhancing relation of social, political and economic sectors across cultural as well as political
boundaries all over the globe. Whereas, strategies, structure and system are considered as hard
elements which is important for recognizing and managing business.

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