Sasol's Global Business Environment: Strategy, Culture, and Expansion

This report provides a comprehensive analysis of Sasol, an integrated energy and chemical company, within the global business environment. It begins with an introduction to globalization and its impact on business operations. The report uses McKinsey's 7S model to explain Sasol's structure, culture, and governance, further evaluating how global operations have influenced the organization and its adaptation to the global market. Hofstede's Dimensions of Culture are applied to demonstrate cultural influences, followed by an evaluation of ethical and sustainable factors crucial for Sasol in a global context. The report critically evaluates strategic decision-making related to risk and diversification, concluding with an assessment of strategic global expansion routes available to the organization. The analysis includes discussions on proactive and reactive decision-making, emphasizing the importance of ethical considerations and sustainability in maintaining a competitive edge in the global market.

unit 18

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK...............................................................................................................................................4
.1) Appropriate introduction and purpose..................................................................................4
2) An explanation of structure, culture and governance within an organization such as...........4
SASOL applying McKinsey’s 7S model to the organization.....................................................4
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...........................................................6
4) Applying Hofstede’s Dimensions of Culture to demonstrate how the organisation has........6
been influenced...........................................................................................................................6
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..............................................................................................................................7
7) An assessment and critical evaluation of the range of strategic global expansion routes
available to the organisation. ......................................................................................................8
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

PART 2
INTRODUCTION
The business environment is the sum total of the all the factors which can affect the
operations and various other activities of the business organisation It is very important for the
organisation to consider the various factors. The global business environment can be defined as
the environment in the different sovereign countries with factors exogenous in the home
environment of the business organisation.. it also influences the decision making on resources
use and the capabilities. This report is bases on the organisation which is SASOL. It is the
integrated energy and chemical company. The company is headquarter in South Africa. It was
formed in 1950(Hamilton, and Webster, 2018)This report will include various topics such as an
appropriate introduction with the purpose, explanation of the structure, culture with the help of
the McKinsey model, evaluation on the influence of the global operations, Applying Hofstede’s
Dimensions of Culture to demonstrate. evaluation of ethical and sustainable factors and at last
critical evaluation of the strategic global expansion.
TASK
.1) Appropriate introduction and purpose
The globalisation id defined as the free move of the products and services and people
across the world in a seamless and integrated manner. The globalisation is also called as the
opening of the global economy and to increase in the trade between the different nations. Further

the globalisation also means that countries liberalise their visa rules and procedures so as to
permit the free flow of people from different country to country. The globalisation results in
freeing up the unproductive sector to export related activities which results in the win- win
situation in the economies of the world. The purpose of this report is to understand what is
globalisation and how the internal and external factors can influence in the operations of the
business enterprise.. also the main objective is to understand the culture , structure by using the
McKinsey model.
M1 Critically analyse the impact that key factors have upon the global business environment in
terms of opportunities and challenges.
There are various factors such as the cost, government which have a huge impact on the global
business environment for the Sasol organisation. Because of these factors there are various
expansion opportunities for the company and at the same time there are challenges of the
international market for the company.
M2 Evaluate strategic challenges in context of risk and diversification strategies and the supply
chain flow.
The strategic challenges for the business organisation is that the company has to follow to
the strict guidelines of the government for the globalisation as the different countries has the
different laws. Also the current market trend is the biggest challenge for the company in the
globalisation.
2) An explanation of structure, culture and governance within an organization such as
SASOL applying McKinsey’s 7S model to the organization.
The McKinsey 7's model is used by the various organisations which helps in identifying
the basic structure of the design of the business organisation. The main purpose of using this
model is to analyse how the company can be effective in achieving its goals and objectives. This
is an important tool for the business enterprises so that they can be know the various culture and
structure of the organisational various 7'S is been discussed in context of the SASOL:
Structure: This element signifies a manner in which an organisation is highly organised. In
case of SASOL, it is very essential for the business to create and maintain a structure so
that employers and employees can communicate well with each other as well as
understand their roles and responsibilities with more clarity(Hampden-Turner, C.,

Trompenaars, and Hampden-Turner, 2020). The organisation is necessitate to have an
effective organisational structure i.e. divisional structure in which they can divide the
areas of business which facilitates more understanding of doing work even at global
level.
Strategy: This element in model represents the plan of an organisation which is prepared and
documented with an intent to have smooth flow of operations in business. In case of
SASOL Ltd., the manager is highly responsible to attain the aims of sustainable
competitive benefits that would further enhance the brand image as well as facilitates
higher profitability of the business. This could be done through creating an healthy work
culture within the company which will improve the motivation level of workers in order
to successful execution of the strategy.
Skill: This signifies the various competencies and capabilities within the employees that
enables them to move forward to achieve the organisational objectives. With a reference
to SASOL, the manager formulates various rules, policies and regulations for the
employees' safety and welfare which satisfy each and every member in the company.
This will also help in the encouragement through which an individual can work hard to
complete the tasks with great competencies and productivity. This supports in attaining
business objectives and higher profitability(Duca, and Gherghina,, 2018)
System: This element signifies that infrastructure and technicality of a company which helps
in maintaining the flow of business. In case of SASOL, the company is paying high
attention on the maximum utilization of latest technologies in order to have smooth flow
of operations at global level and regards the appropriate decisions in the accomplishment
of long-term sustainability.
Staff: This element involves hiring, selecting, training and developing, compensating and
retaining employees within the organization who are capable and talented. With an
addition SASOL, the HR manager is highly focused on their employers and facilitate
them with appropriate training and developing programmes as well as enough
compensation so that they can stay longer within the company. This will enable to create
long-term sustainability by offering potential goods and services in the market.
Style: Under this element, the senior executives of the company practices organisational code
of conduct in order to make effective decisions with suitable evaluation of each aspect.

In case of SASOL, the senior manager highly focused on the regulations of business
activities with democratic form of leadership style in order to provide a chance to each
individual so that can represent their opinions and views associated to the decisions of
business, linking to the globalisation (Ghani and et.al., 2018).
Shared values: The vision, mission, values and goals of company are known as major
foundation of business along with possessing an effective role in the alignment of business
operations. In case of SASOL, the manager of company is required to create vision and mission
that leads employees of company to perform well in the organisation even at global level.
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 model in context of the SASOL business organisation it is been
identified that the organisation is bale to expand its business globally by use of the various
strategies and the values which the company is keeping with itself. This is the most important
aspect which is been considered within the business organisation. The business organisation has
adopted in the operating in the global market by analysing the various strategies and the internal
strength of the organisation.
4) Applying Hofstede’s Dimensions of Culture to demonstrate how the organisation has
been influenced.
The Hofstede's dimensions of culture model is been used by the various organisation in order to
perform the various activities of the business organisations. The various dimensions is been
discussed in context of the organisation
 Power distance- It is the degree in which the society accepts or rejects the unequal
distribution of the power within the business organisation and in the society as well. In
the high power distance culture such as Japan there is a great respect of the gender, age,
status. This can be the problematic for the Americans visitor used to the informality of
the more moderate power distance(Chofreh, , and et.al., 2021.)
 Uncertainty avoidance- It is known as the disagree a society tolerates or is
uncomfortable with the risk, change or the situational uncertainty. In relation to the high

uncertainty avoidance couture, one would expect to find a preference for the structure,
order and predictability.
 Individualism- collectivism- IT is the degree to which the society emphasizes on the
individuals accomplishment and self interest versus the self interest and accomplishments
within the group. The United states has the higher individualism score of the country.
 Masculinity- femininity- It is known as the degree to which the society values
assertiveness and materialism versus the feelings, relationships, and quality of life. This
is related to the biasses related to the women. In such countries. The country with high in
the masculinity is resulted in giving opportunities for women to participate in certain
activities and as well as working within the organisations.
 Time orientation- It is the degree to which society emphases on the short term and long
term goals. It is been observed that the Americans are notorious in being impatient. Such
companies are expected to achieve the short term goals.
The SASOL organisation is aligned with the cultural norms of the nation in which the
organisation is situated in. by understanding the cultural norms and the values the business
enterprise can identify the competitors and make the decision according to it.
5. An evaluation of ethical and sustainable factors that the organisation has to consider in a
global market.
In globalization, the ethical factors are defined to a process in which data, products,
services, information, technologies and many other factors are worked in an ethical and moral
way. The ethic is a term which explains the differences between what is right to do or what is
wrong to do. It involves a broad area of conduct in which employees, customers, government,
community, suppliers and many more. The key objective of doing business in an ethical way is
to improve the workers and employees with an intent to work ethically, which also supports a
company to have smooth functioning of business(Singhania, and Saini, 2018).
The factors related with sustainability refers to such variables that supports companies to
have a global presence as well as to accomplish the competitive benefits at global platforms. This
emphasis on the profitability of the organisation so that the company could survive in the global
market. On the other side, it can also facilitate a growth, development and potential to stand
alone among the competitors at the global level. With an addition to SASOL, the factors which

can make a significant impact on the company are human resources, economies of scale and
advertising of goods and services.
6. Critical evaluation of strategic decision making in relation to risk and diversification in a
global context.
It is very important for the organisations to make a strategic decision in order to expand
its business globally. The various strategic decision making of the business organisation in global
context is discussed below: Proactive decision making- This is considered the most important approach for the
organisation where the managers can identify the solutions which can pe practical in the
real world and to make the optimum utilisation of it.
 Reactive decision-making: This refers to a stage i.e. a step up from being inactive. It is
not considered as the effective decision of time but it can be effective in few cases. This
only work when it is needed (Tamta, and Rao, , 2017).
 Diversification- it is very important for the organisation to maintain the diversification in
which there is less risk . The best suitable method should be adopted by the company in
order to have a proper diversified act of the business.
7) An assessment and critical evaluation of the range of strategic global expansion routes
available to the organisation.
It is been critically evaluated that there are various factors which need to be considered
by the SASOL in order t expand its business globally. The organisation can keep in mind the
various cultural norms in order to perform the various activities globally. Also, in order to enter
in a global market and doing business operations in foreign market, it is essential that ethical
code of conduct must be followed by the company(Esmer, and Duru, 2017.).
There are different routes of the expansion which are explained below:
 Franchising- this is the way in which the organisation can Frankie it organisation to the
other party with the same raw material and this is used by the organisation in order to
have the various branches of the business organisation.
 Licensing – This is the another way of the expansion of the business organisation where
the organisation can give the license to the another one so that he/ she can conduct the
same business in the name of the SASOL and this will help the organisation in expanding
its business in the other nations.

 Joint ventures- this is the enotehr way of the expamnsion where the organisation can
have the venture with the nother firm in order to expand its business .
CONCLUSION
From the above report it is concluded that the global expansion is very essential for the
business organisation as well as for the development of the economy. Due to the globalisation
there are various opportunities which are available for the organisation as well as the company
can grab the attention of the new customers. It is very important for the SASOL t6o maintain the
strategic culture and the structure in order to attain a competitive advantage in the global market.

REFERENCES
Books and Journals
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Hampden-Turner, C., Trompenaars, F. and Hampden-Turner, C., 2020. Riding the waves of
culture: Understanding diversity in global business. Hachette UK.
Duca, I. and Gherghina, R., 2018. CSR Initiatives: An Opportunity for the Business
Environment. In Ethics and Decision-Making for Sustainable Business Practices (pp.
187-202). IGI Global.
Chofreh, A.G., and et.al., 2021. Covid-19 shock: Development of strategic management
framework for global energy. Renewable and Sustainable Energy Reviews, 139,
p.110643.
Singhania, M. and Saini, N., 2018. Determinants of FPI in developed and developing
countries. Global Business Review, 19(1), pp.187-213.
Tamta, V. and Rao, M.K., 2017. Linking emotional intelligence to knowledge sharing
behaviour: Organizational justice and work engagement as mediators. Global Business
Review, 18(6), pp.1580-1596.
Esmer, S. and Duru, O., 2017. Port governance in Turkey: The age of the global terminal
operators. Research in Transportation Business & Management, 22, pp.214-223.