Global Business Environment: Sasol's Governance and Decision-Making

This report examines the influence of globalisation on Sasol's organisational governance, leadership, structure, culture, and functions. It discusses Hofstede's cultural dimensions and McKinsey's 7s framework as analytical tools. The report further explores the impact of globalisation on Sasol's operations, including sustainable and ethical considerations. It analyses decision-making processes in a global context, highlighting proactive and reactive approaches. The report also outlines methods for Sasol to enter international markets, such as franchising and joint ventures, while addressing potential barriers like competition from local companies and risks associated with franchising. The conclusion emphasises the importance of globalisation in promoting business at an international level and the use of various tools and techniques to overcome risks and improve business productivity, while acknowledging challenges and barriers in the international market.

Global Business
Environment

Table of Contents
PART-1............................................................................................................................................1
PART-2 ...........................................................................................................................................1
P3 The influence of globalization on organizational governance and leadership, structure,
culture and functions..............................................................................................................1
P4 Influences of globalisation on functioning of Sasol..........................................................3
P5 Decision making in global context for Sasol....................................................................4
Methods to enter international market for Sasol ...................................................................4
Barriers of entering foreign marketplaces: ............................................................................5
CONCLUSION................................................................................................................................5
REFERENCES ...............................................................................................................................6

PART-1
Part-1 covered in power point.
PART-2
P3 The influence of globalization on organizational governance and leadership, structure, culture
and functions
 Influence of globalization on organizational governance- Globalisation is the best way
which can helps in expanding the business organisation at new marketplace with the help
of adopting different social media platform such as networking and collaboration.
SASOL uses various strategic tool which can helps in maintaining the sale performance
of their business and promote their business organisation at success level (Rezaee and et.
al., 2019).
 Influence of globalization at leadership- Globalisation identify and hire multitalented
and skilled employee which can drive business organisation at international level and
interact with different cultural people in an appropriate manner.
 Influence of globalization on structure:- This is the main task of the business to mange
and interact with different culture people. Sasol hire the employee who are skilled in
different language to mange the inter-relationship with other countries.
 Influence of globalization on functions:- Globalisation is the best way which can helps
business in adopting different type of technologies and make innovation in their business
which can lead to give positive impact in the business organisation. Sasol adopted
advanced technologies in their organisation which can attract more customer’s and
improves their performance and expand potential growth of the business (Tung, and
Stahl, 2018).
Hofstede's culture dimensions
This is one of the most effective theory which focuses on different culture of societies
and they can helps in analysing the different culture norms and policies which are necessary for
employee to make interaction and work within the organisation. Hofstede's theory have the four
dimension which includes:-
Power distance index (PDI):- This dimension describes the power of different individual and
stakeholders of business organisation which includes CEO, managers and employees. The
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organisation having higher rate of PDI which have more strong relationship and interaction with
the people and business. Sasol have low PDI due to the laws and policies on which their
organisation and employee tarted their objectives for achieving the success.
Individualism v/s collectivism(IDV):- Business organisation is depend on the people and
society in this case organisation is responsible by its own and business is under control by
individual person which is known as individualism. In case when organisation is totally
depended on the other person which is known as collectivism (Sriyakul and et. al., 2019). Sasol
organisation have the medium IDV because there are both responsible for managing the business
organisation.
Masculinity v/s femininity:- The organisation is more focused on the growth and having ego
behaviour and action towards the organisation is known as masculinity. Organisation works
towards the employee care and support which is known as femininity. Sasol organisation have
the femininity dimension because they are focused on providing flexibility to their employees.
Uncertainty avoidance index:- In every organisation uncertainties occurs due to various reasons
and adverse conditions generated within the business environment. Sasol having low index
which are more focused on uncertainties and developed alternative plan for reducing the risk and
uncertainties with in the business organisation (Dionisio and de Vargas, 2020).
McKinsey's 7s framework
This model is one of the most effective for the business organisation which can helps in
analysing the negative factor which affect the business growth. This model identify the external
factor and reduce the chance of risk. McKinsey's 7s model helps in identifying the internal factor
which are of two types hard elements and soft elements. Hard elements are the one which affect
the management system of the business and soft elements are the factors which affect the
corporal perceptiveness. Sasol adopted the McKinsey's 7s model which can helps in anlysing the
internal and external factors:-
 Business structure:- It is important to develop effective structure which can helps
organisation to drive an organisation in right direction. Sasol organisation developed a
strategic plan and they provide flexibility to their employee so that they can achieve their
targeted goals and promote the business at success level.
 Strategy:- Organisation adopted different effective strategy which can helps in promoting
business and satisfy customers. Management team of Sasol helps in providing the main
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goals and objective. Different strategies helps in analysing the market trend and
customers needs and requirements and company delivery the product as per the customer
demand.
 System:- Organisation developed laws and policies which includes the role and
responsibilities of individual employee so that employee stay focused on the achieving
the targeted goals and increases the overall revenue system of the business.
 Staff:- organisation hire more talented and skilled employee which can manages the
organisation activity. Manager is more responsible to focuses on individual role and
responsible and reward the employee as per their working performance (Watermeyer,
Crick and Knight, 2022).
 Skill:- This is one of the most important process in which manager is more focused on
hiring the multitalented employee which can enhance the productivity and profitability of
the business drive organisation at success level.
 Style:- every organisation have leadership style which is most essential because it can
helps in managing all the activities of the business environment. Sasol have effective
leadership style which can help individual employee to work in appropriate manner and
cooperate with the each other.
 Shard value:- organisation conducted the ethics and cultural respect in their organisation
which is most important for the business. Sasol focus on maintaining the ethics and
cultural respect of every individual employee which helps in promoting the business.
P4 Influences of globalisation on functioning of Sasol
Globalisation helps every organisation to get advantages of participating in competition
with other internation organisation that can leads to enhancing the profitability of the business.
While driving the business at international level organisation faces many difficulties and
challenges. Sasol organisation have impact on globalisation which includes:-
Sustainable globalisation:- Making effective decision while promoting business at international
level for long period of time organisation faces many difficulties and challenges which is know
as sustainable globalisation. Sasol establish market their market in different country and they are
more focused on satisfying customers by providing product as per their demand (Arayssi, Jizi
and Tabaja, 2019).
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Ethical globalisation:- Business organisation have different ethics and values which are more
essential and different task for business to manage the ethics policies within the organisation.
Sasol is more focused on making their business ethics. Sasol enter in new country and it is
important task to follow and maintain the ethics values in business which can helps in enhancing
the productivity of the business.
P5 Decision making in global context for Sasol
For making organisation at international level is required most effective decision and it
requires more research and investigation on various factors. Business organisation faces many
difficulties and challenging while driving organisation at international level. Sasol faces more
complexities to make their organisation successful while working at international. There are
some factors which influenced the decision of making business globally which includes: Proactive decision making:- Effective decision is most essential for establishing market
in new nation because right decision can raise the business growth. Making effective and
right decision towards the business organisation and activity engaged with in a
continuous process of decision making (Alareeni, 2018). It can focuses on the
performance of business and take immediate action towards the business and tale right
decision. Sasol make the right decision of their business which can reduce the loss of
business.
 Reactive decision making:- This is the process in which action is taken after the problem
and situation occurred which is known as reactive decision making. After the critical
situation it is important to make right decision to reduce the loss and can handle the
situation by taking effective action towards the situation. Sasol is more focused on
making the right decision and take immediate action in different countries (Saha and et.
al., 2020).
Methods to enter international market for Sasol
There are various methods which can helps in entering and making organisation at
international level. On driving organisation at international level which can make more profit and
increases the potential growth of the business environment. SASOL adopted various methods
which can helps in entering in new market at international level which includes:-
 Franchising:- It is the method which can help in expanding their business product and
services by allowing another under the same company brand name. It is the most
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effective method which can helps in establishing new market in new nation by analysing
the needs and requirement of the customer’s. Franchising is the most effective method
which can also prevent from loss and expand the business growth around the globe.
 Joint venture:- This factor is helps in promoting business by making partnership with
other companies and profit and loss is shared and face by both owner which is known as
joint venture. Sasol focuses on making partnership with other local companies which are
already exist in the market that may help in making more collaborations and make more
profit (Habib and Hasan, 2019).
Barriers of entering foreign marketplaces:
There are various barrier which come across while business expanding in new countries
which is full of challenges and difficulties. Some common barriers which imposed on
international market are:-
Competition from local companies:- It is one of the most barrier which is faced by new market
because they faces competition with local existing market because they have already more
customers and expanded their brand identity in the marketplace.
Risks of franchising:- This is the risk barrier while enter in new international market because
new business are unable to identify that another business are capable to conduct and helps in
raising the business in the domestic part.
CONCLUSION
From the above discussion it is concluded that, globalisation helps in promoting business
at international level and helps in making relationship and interaction with other counties.
Business organisation adopted various tools and techniques which can helps in analysing the
external and internal factor that affect the business productivity which include PESTLE analysis,
SWOT analysis and McKinsey's 7s. These models and theory are help organisation to overcome
and reduce the chance of risk and improves the productivity and profitability of the business
organisation. There some factors which generated the barriers while promoting the business at
international level and that may also cause loss and decreases the productivity of the business.
Organisation adopted the different tools and techniques which can helps in promoting the
business at success level and increases the potential growth of the business.
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REFERENCES
Books and Journals
Alareeni, B., 2018. Does corporate governance influence earnings management in listed
companies in Bahrain bourse?. Journal of Asia Business Studies.
Arayssi, M., Jizi, M. and Tabaja, H.H., 2019. The impact of board composition on the level of
ESG disclosures in GCC countries. Sustainability Accounting, Management and Policy
Journal.
Dionisio, M. and de Vargas, E.R., 2020. Corporate social innovation: A systematic literature
review. International business review, 29(2), p.101641.
Habib, A. and Hasan, M.M., 2019. Corporate life cycle research in accounting, finance and
corporate governance: A survey, and directions for future research. International Review
of Financial Analysis, 61, pp.188-201.
Rezaee, Z., Tsui, J., Cheng, P. and Zhou, G., 2019. Business sustainability in Asia: Compliance,
performance, and integrated reporting and assurance. John Wiley & Sons.
Saha, R., Cerchione, R., Singh, R. and Dahiya, R., 2020. Effect of ethical leadership and
corporate social responsibility on firm performance: A systematic review. Corporate
Social Responsibility and Environmental Management, 27(2), pp.409-429.
Sriyakul, T., Singsa, A., Sutduean, J. and Jermsittiparsert, K., 2019. Effect of cultural traits,
leadership styles and commitment to change on supply chain operational
excellence. Journal of Computational and Theoretical Nanoscience, 16(7), pp.2967-
2974.
Tung, R.L. and Stahl, G.K., 2018. The tortuous evolution of the role of culture in IB research:
What we know, what we don’t know, and where we are headed. Journal of International
Business Studies, 49(9), pp.1167-1189.
Watermeyer, R., Crick, T. and Knight, C., 2022. Digital disruption in the time of COVID-19:
Learning technologists’ accounts of institutional barriers to online learning, teaching and
assessment in UK universities. International Journal for Academic Development, 27(2),
pp.148-162.
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