Analysing SASOL's Global Business Environment, Strategies & Ethics

This report provides a comprehensive analysis of the impact of globalisation on SASOL Limited, an energy and chemical company headquartered in South Africa. It begins by defining globalisation and its key driving factors, including market dynamics, cost-effectiveness, environmental considerations, and competition. The report employs a PESTLE analysis to illustrate the broader global influences on SASOL, examining political, economic, social, technological, legal, and environmental factors. It also discusses the impact of digital technology on SASOL's globalisation efforts, highlighting the challenges and complexities that globalisation brings to the organisation, such as entry fees and the potential loss of cultural identity, along with recommendations to overcome these challenges. Furthermore, the report applies McKinsey's 7s model to evaluate SASOL's performance and management, elaborating on the company's global operations and how it manages them in the global market, and utilizes Hofstede’s Dimensions of Culture theory to understand cultural influences. The analysis extends to ethical and sustainable factors, strategic decision-making in relation to risk and diversification, and an evaluation of strategic global expansion routes. The report concludes by summarising the key findings and recommendations for SASOL.

unit 18

Table of Contents
INTRODUCTION ..........................................................................................................................3
PART 1............................................................................................................................................3
Concept of globalization.............................................................................................................4
PESTLE analysis to illustrate the broader and global influences on an organisation such as
SASOL........................................................................................................................................5
key driving factors of globalisation.............................................................................................7
Impact of digital technology upon globalisation........................................................................9
Challenges and complexities globalisation brings to an organisation such as SASOL............10
Recommendations on how such challenges can be overcome..................................................11
PART 2..........................................................................................................................................12
Mckinsey's 7s model on SASOL...............................................................................................12
Elaborate the evaluation for the explained global operations and ways in which organisation
has managed operations in global market................................................................................13
Applying Hofstede’s Dimensions of Culture theory.................................................................14
D1 Critically evaluate the global business environment, including the opportunities and
challenges faced by organisations.............................................................................................15
Analyse the ethical and sustainable factors in organisation for global market.........................16
Critical evaluation of strategic decision making in relation to risk and diversification in a
global context............................................................................................................................17
Evaluation of the range of strategic global expansion routes...................................................18
CONCLUSION .............................................................................................................................19
REFERENCES..............................................................................................................................20

INTRODUCTION
Globalisation comprises of managing all the interdependence with the cultural,
economical and the other population through which the commercial and the cross border trading
is managed. This involves all the spreading of the information, technology and other working
across the national borders. It comprise of all the interdependence which is being fostered
globally within free trading. The business environment manages all the external and the internal
business practises in which the functioning and general factors through which the cultural, legal,
social and all other functioning is opted. The organisation chosen in this report is SASOL
Limited which is a energy and the chemical company headquartered in Cape town, South Africa
established in 1950. it deals with oil and the gas chemical integrated energy and have about
30,1000 workers are being working over their(Osinubi and Olomola, 2020). This report will
cover the impact of globalisation with there operations. McKinsey's 7s model, Hofstede's culture
dimension. Further it will also cover the strategic decision making with global expansion.
PART 1
Introduction
Notes:

This PPT will cover the concept of globalisation, PESTLE Analysis, key drivers of globalisation
and the impact of digital technology on globalisation. Further, it will include the challenges as
well as recommendation to it.
Concept of globalization.
Notes:
This involves all the economic strategies in which the cross border relations are being made
through people, service, organisational products, technology and information. The different
aspects in the globalisation is managed through the positive attitude and the effective nature and
working in which all the sociological, economic, cultural and the other alignment and working is
being addressed(Wood and Black, 2018).

PESTLE analysis to illustrate the broader and global influences on an organisation such as
SASOL.
Notes:
Political factor- this manage all the regulations and the laws which are being made in order
frame the laws and the attainable stability through which affective operations are being applied.
as for SASOL Limited this is the positive implication as the oil and gas helps to gain the
maximum consumption and their company carry out effective policy and the strategy through
which uncontrollable favourable cost are being depicted(Usman and et. al., 2020). Economic factor- This is the investment and complies with all the macro elements which
are like the tax rates, saving interest, inflation, exchange rate and so on. All these
accomplish to manage the dependency and the growth in employment rate through which
the purchasing power is addressed. As in SASOL Limited they are majorly affected with
the rise of COVID-19 as this created struggle in exchange rates. Social factor- It involve all the demographic segments in which the social environment is
carried out. This involves all the age distribution, lifestyle, growth rate, cultural barrier,
health etc. as it complies to provide the effect of the changing market trends in the
environment. SASOL Limited have the positive impact on all the social factors as with

the changing dynamic people in South Africa are now well aware about the increase of
the use of oil and gas as this is a major asset in all the companies. Young generation
contemplates to mange the efforts and also the maximization of profit(Geraldo and et. al.,
2020). Technological factor- This involves all the innovation, advancement, operational
activities and the development through which the enhancement of the digitalisation and
the operational activities are made. SASOL Limited manage the development and the
researching through which the support and the growth through social media is managed. Legal factor- this involves all the laws and the legal rules and applicabilities through
which the regulations, norms and the principles are being made in order to maintain the
growth and the complication of legal policies. Some important factors are like patent,
copyright, health and safety at work and many more. SASOL Limited implement all the
adaptive strategies and laws through which the policies are framed and managed.
 Environmental factor- it comprise of all the suitability in the environment and also the
adaptive changes through sustainability. In order to maintain the growth and the
functioning there is required to take certain measures with which all the waste
management is being aligned by lowering the pollution and also through managing the
sustainable changes. SASOL Limited aligns to manage the recycling of the product and
the endurance safety in which the disposing of waste material is made in proper manner
which do not affect the environment(Zajda, 2020).

key driving factors of globalisation.
Notes: Market- This involves all the domestic areas in the market where they try to manage the
opportunities in which all the growth and the further expansion is being drawn and it also
helps in evaluating the global market conditions. As SASOL Limited is having the long
term sustainability and carry out the effective market image and position through which
there is been seen that all the market requirements are being grabbed. This maintain to
gain the higher growth in the profit in international market sectors. Cost-effective- This involves all the cost and the amount on which the expenses are
carried out and there is given all the higher benefits through which the international level
of effective strategies are managed. This complies to give the cost production and the
monetary assets and values with which the global alignment are being framed. SASOL
Limited focus on applying the business operations in which they reduce all the
operational costing and also try to manage the cost cutting according to the changing
scenarios(Chavez and Sharma, 2018). Environment- This involve all the changes and the diversification in which the major
alinement's and the trends are being farmed in the business and that is only be framed

although the compliance and the working nature. As this serves the methods in which the
political, social, economic and the other aspects are addressed while managing the
companies and their working. SASOL Limited as being planning to expand applies the
nature in which they maintain the growth and the possibility through which the future
stability and the optimised nature can be reviewed. It helps in managing the dynamic
changes in the working and also to frame the cultural adherences.
 Competition- This can be analysed that with the change in the dynamics and the rapid
innovation by the companies there is been seen that so this involve all the international
agreements and all the competition of the current market conditions are opted. Their is
been seen that all the global conditions which are begin adapted by the SASOL Limited
comprise to manage the oil and gas through which they implement and strategies all the
affecting principles and nature of working. It contemplates the vary consequences and the
methods through which strategies are being driven(Teo and Huang, 2019).
Impact of digital technology upon globalisation.
Notes:
The digital technology helps out in regulating and maintaining the growth and the effective
economic stability through their general uses. As for the maximum connectivity and the implied
mediums the digital technology services to be important (Dusart and et. al., 2019). Innovation

helps in removing all the barriers of communication and also maintain the reduction of the cost
cutting in transportation. Global expansion can be laid out within the engagement and their
challenging factors and there is provided that all the inputs and their functions are managed
through enhancement of the patent technology and their innovated approach. In all the foreign
market the investment led out to be the most important source through which the competition can
be adversely removed. All the information technology and the different digital marketing
channels helps to make the connection with the companies in which they can eventually maintain
the function and the methodological evaluation. As in context to SASOL Limited there is been
seen that all the oil and gas plants in South Africa helps to mange the expansion through the
innovation and the ideas in which the management and their functioning is being aligned. Their
is also been served that all the areas and the nature in which work is drawn can be opted with the
digital patterns and the mediums. The company can get the expansion and maximum
connectivity through all such channels and the methods. Various websites and the connectivity
with the sellers can be intermediate in different managing patterns and channels around the globe
this will remove all the hindrance in the trade barriers.
Challenges and complexities globalisation brings to an organisation such as SASOL.
Notes:

 Entry fees- In order to manage the expansion in any of the company there is seen that so
many issues are being observed. One of the major issues that can be seen is the
international barrier in the entry. as the companies are not being bale to manage the
growth and there is been served that their expansion involves the bulk of fees for the
merger or the expansion. In order to manage the trade relation there is seen attach all such
areas are specified fees are being undertaken. SASOL Limited will have to make the
work to be aligned in all the company and their procedural nature their provided that all
the trading and expansion of business of gas and oil will needed to give the high amount
and this can also affect the nature and higher payment in the taxation rates and the fees
for the trade. This is the major challenges that are being addressed by the company
(Kumar, Giridhar and Sadarangani, 2019).
 Loss in the culture identity- In order to gain the trust of the customers there is been seen
that all the customers will have to manage effective stages through which profitability
can be addressed. Their is provided that in all the different countries there is been given
different culture and preferences and the loyalty of the person will always be with the
familiar companies. This creates a major issues as to gain trust and to manage to bright
their implies to have the functionality and their nature of Working to be opted in proper
manner. SASOL Limited although is well known company but they will eventually face
the cultural barriers by the company as through the issues to manage the service being
given according to the favour ability of the consumers(Atherton, 2019).

Recommendations on how such challenges can be overcome.
Notes:
Further they can apply all the technological aspects and also the training should be given to the
employees so as to remove all the hindrance in future goals and problems. All such will make the
employees efficiently skilled and will generate to help them in expansing the business functions
and their growth. They can manage the better communication with employees by giving them the
ideas regarding joining and managing the company to be farmed accordingly (Tam and Oliveira,
2019)
Conclusion

PART 2
Mckinsey's 7s model on SASOL
This company is being originated and named as the fast growing brand name in South
Africa. The Mckinsey's model elaborates and analyse all the performance of the organisation and
the management. It comprise of the performance of the company and also manage the effects on
globalisation as SASOL have certain ideologies in relation to the leadership, supremacy,
structure and culture. In context to it the McKinsey's 7s model is being mentioned there under: System- In order to manage the growth and the effectiveness the SASOL Limited
manages the system to be aligned in proper manner in which all the disputes and the
conflicts are being addressed. They serve out to mange different departments in which
marketing, finance, human resources etc. are systematically divided to maintain the
working for the defined goals (Gottfried and et. al., 2018). Strategy- The SASOL Limited implement the effective strategies in which they focus on
analysing the patterns in the market and also the variable customer behaviour and
patterns .it implementations to manage the defined goals and objectives. They explain all
the ideas to the employees in the company and also to stakeholders to make the goals
being known to all.