Global Business Environment Analysis: SASOLI Ltd Expansion Strategies

This report focuses on the global business environment, specifically examining the case of SASOLI Ltd, a fast-growing energy and chemical company aiming for international expansion. The report evaluates the influences of globalization on organizational governance, leadership, structure, culture, and functions, as well as the ethical and sustainable aspects of globalization. It applies theories and models to analyze organizational structure and culture, critically evaluating strategies and recommendations for adapting organizational structures and decision-making processes in a global context. The report explores different approaches to effective decision-making, identifies various routes to internationalization, and analyzes key barriers to international business, offering recommendations for overcoming them. It utilizes frameworks like Hofstede's cultural dimensions and the McKinsey 7-S model to provide a comprehensive analysis of the challenges and opportunities in the global business landscape.

Global business environment

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
P3 Evaluate the influences of globalisation on organisational governance and leadership,
structure, culture and functions...............................................................................................3
P4 Evaluate the influences of ethical and sustainable globalisation on organisational
functions......................................................................................................................................5
M3 Critically evaluate influences of globalisation in application to appropriate theories
and models relating to organisational structure and culture................................................6
D2 Critique strategies that can be adopted by organisations operating in a global
business environment, making valid and justified recommendations of how they should
adapt their organisational structure and decision-making processes...................................7
P5 Evaluate the different ways decision making can work effectively in a global context. 7
P6 Determine and articulate the various routes to internationalisation an organisation
may adopt, including key barriers...........................................................................................8
M4 Critically evaluate the key barriers in doing business internationally and make
recommendations on how they can be overcome....................................................................9
Conclusion.......................................................................................................................................9
References......................................................................................................................................10

INTRODUCTION
Globalization helps the company to connect with different countries by using trade and
technology, it is the process to interaction and integration among the people, organisation and
government worldwide. They have an ability to communicates and connect easily with others
and also assist to doing businesses international, global business is a company which operates
their facilities in different countries international. It is related to the production and sale of goods
and service between the countries. It also provides primary benefits to expand their business
operations in different countries (SENTISHCHEVA and ACQUAH, 2020). In this report it
choice the company SASOLI Ltd, is the fast growing energy and chemical company, they want
to expand their business international, because operating global market is also a good way to
reduce the risks and get the leverage of new opportunities.
MAIN BODY
P3 Evaluate the influences of globalisation on organisational governance and leadership,
structure, culture and functions.
Globalization helps the company to increase the interaction between the different culture
and the need to hiring the best candidates for the organisation which helps to succeed in a
globalized environment. Culture has influence who helps an organization to hire the right
candidates for the right job. Along with globalization impacts the businesses in both ways
positive and negative, communication and technology helps to make it more effective and
efficient to mixture cultures. The company need to make proper strategic planning to handle this
they need to doing proper research work to before starting their business in different countries
and culture. Globalization also affect the governance in indirectly and directly ways by through
the peace, stability. It helps to spread the new ideas, tools, attitudes, social networks and many
more which affect direct to the governance.
Hofstede's culture dimensions’ theory is a frame work which is used to understand the various
different culture across the countries and recognize the ways, that the SASOLI company is done
across the different culture (Hampden-Turner, Trompenaars and Hampden-Turner, 2020). Along
with this process is used to separate between the different national and international culture and

assess their impact when setting their business. Hofstede's culture dimensions’ theory is based on
six categories that helps to define the culture which are listed below:
 Power distance index- This index helps to measure the distribution power and wealth
between the people in a culture, business or nation. It refers to the relationship between
the authority and subordinated individual which is depend on how the latter react to the
former. This dimension is related to the higher and lower level, high power distance
index is indicated that the SASOLI Company accept the culture inequality and encourage
the bureaucracy which shows the high rank and authority. But if in case the index lower,
it indicates that culture encourage the flat the company structure that feature are
decentralized decision- making responsibility and emphasis the power of distribution
(Tannehill, 2018).
 Masculinity vs Feminity- This is the process which refers to the effect the difference in
gender male and female values for the culture of the company. If SASOLI company start
their business globally so, they need to analyse the culture of this country, for example if
the doing business in UK, so where do not face problem they can hire any gender which
any problem but if in case they start their business in Pakistan, where the male employees
are more dominate, to compare their female employees. They will follow the different
policies as compared to UK where are females have a right in the decision-making
process of the company. However, SASOLI company need to analyse culture thoroughly,
so they can make their strategy according to them.
 Individualism- There are many organisations which believe in team work, where the
many individual with the common interest come together and work as a team. SASOLI
company believe that team work plays an important role to achieve any target, because
individual exchange their ideas and discuss the thing and come up with innovative ideas.
In this scenario employees also take each other help and share their ideas which support
to make a healthy working environment. However, some organisation is not follow this
culture they believe that, one person is enough to take decisions and they do not believe
in team work (Kasemsap, 2018).
 Uncertainty avoidance index- This factor helps to addresses the unusual situation which
is presented by employees. This index helps the SASOLI company to analyse the
tolerance level of workers within the comfortable and uncomfortable situations. The main

target of the company is try to reduce this types of challenges or situation of their
employees, along with they also ensure that they are ready to handle this types of
challenges.
 Long- term orientation- SASOLI company need to focus on the long- term relationship
with the employees, typically they need to consider those employees which are capable
and hard working to live up the expectations of the management. On the country,
company need to analyse that employee’s performance and provide a proper training, so
that they are able to getting the batter opportunities which support the company to
improve their performance and achieve their goal.
P4 Evaluate the influences of ethical and sustainable globalisation on organisational
functions.
Sustainable and ethics globalization plays an important role for the company, it direct
impact on the financially. For the company sustained financially for the long- term scale, there
should be good for the ethical practice, like doing fair trading with others, it should be seen fair
in both parties. Good ethics are helps the finical departments to ensure that all taxes are pain
without doing any mistakes and there should be no objection in internal and external audit.
SASOLI company need to work in harmony with the environment and try to avoid any ethical
implications that may help to increase new techniques and technology.
McKinsey seven model is a wide variety of situation, where are useful for examine the various
parts of the organisation, it helps to improve their performance of the company to determine the
best possible ways to implement a making strategy. Along with it also used to examine the
threats which effects for the future changes, it is based on seven model which are listed below:
 Strategy- If SASOLI company wants to expand their business internationally, so they
need to make a proper strategic planning which support them to building and maintaining
the competitive advantage over its competitors. After this company need to analyse that
how they deal with competitive pressure and what strategy they use to dealing with the
changes in customer demand (Rezaee, 2019).
 Structure- It is related to that how SASOLI company organised the strategy. After
making strategy, they need look daily activity, structure is the way which helps the
business to divisions the work and organised the units which includes that information

who accountable to whom. Actually it is the organizational chart of the company and it is
the most visual and easy change of elements of the model.
 Systems- It is process of the company, which helps the company to identify the daily
activities. Systems is those area of the company that determines that how the business is
done and they should be the main focus of the manger during the structure changes. It is
very beneficial for the company, because it helps to maintain ethics and sustainability in
the workplace.
 Skills- It is abilities that support the employees to perform well and it is very necessary
for the company. They also include capabilities and competences, SASOLI company
need to provide proper training to their employee to develop their skills and knowledge.
During the time of organisational change, the question arise that what skill are company
wants to reinforce its new strategy (Stepnov, 2021).
 Staff- SASOLI company need to concerned that what type and how many employees
they need for the company and how they will be hiring the right candidates for the right
job. After this manger need to provide training for their employee to encourage and
motivating them. It helps the company to maintain their work in right manner.
 Style- SASOLI company need to choose the way which is managed by the top level
managers, it is the management style of the company’s leaders, effective leader is very
important for company because it helps to manage the work and encourage the
employees to doing their work effectively, so that they support an organisation to achieve
their target.
 Shared value- It helps the company to enhance the competitive position of the company,
along with they consider the social dimensions of the firm and relation between the
people. Products, services and so on. They are norms and standard which guides the
employee’s behaviour and company actions which is essential for the company growth
(Rhodes, 2021).
M3 Critically evaluate influences of globalisation in application to appropriate theories and
models relating to organisational structure and culture.
Globalisation are helps the company to enhance their business, but SASOLI company need to
maintain their organisational structure, so that they are able to handle the hard situation in future.

For the use of scientifically theory for support the company to provide the best option to
recognize the best way to accomplish the certain objective of the company.
D2 Critique strategies that can be adopted by organisations operating in a global business
environment, making valid and justified recommendations of how they should adapt
their organisational structure and decision-making processes.
SASOLI company make a proper strategic planning which helps the company to expand their
business. Company structure is related to those process which assign the duties and
responsibilities for the employees. They support the company to handling the tough situation in
the global market.
P5 Evaluate the different ways decision making can work effectively in a global context.
Having a strong decision- making skills is very important for every business. Manager
and leader need to practise using different decision- making strategy, that helps to make more
effective decisions and have a positive impact of the company. Effective decision making
support the company to reduce the risk, reduce the wastage of raw metrical and achieve the
target of the company. It is the approach of individual person to use to take an important actions.
Every situation is different and each decision- making provide the different structure to address
the specific needs and requirements. It helps to increase the chances of the company to choose
the most appropriate alternative to solve the problem (Bondarenko and Pisareva, 2018).
 Identify the decisions- Firstly SASOLI company need to clearly identify the problem, so
that they are able to clearly defines the nature of the decision they make. Because without
identify the problem, manager is not able to make a effective strategic planning.
 Gather relevant information- They need to collect the all relevant information before
making any decision. To take relevant decision they need analyse this step which
involves both external and internal work (Greven, 2021). In internal information, they
seek the process of self- assessment. Other information is external which is related to find
information with other people, books and other source.
 Identify the best alternative – After identifying the problem, SASOL company wants to
choose best alternative to doing global business, so that they can manage their work to
achieve the goal of the company. As the collect the information, they will identify the

many possible paths of actions. After analyse the problem, company have a many
possible solutions to solve the problem, but SASOLI company need to choice the best
alternative to solve the problem.
 Take actions- After doing all steps, company wants to take some positive action by
beginning to implement the best alternative they chose what they imagine, when the
company wants to achieve something to deal with the problem, so they need to take
actions.
 Appraisal the decision and consequences- Finally they need to consider the results of
their decision and evaluate the whether or not, because it helps to resolved the problem.
Along with if the company focus in this steps so, they are able to handle the barriers
when the start their business globally.
P6 Determine and articulate the various routes to internationalisation an organisation may
adopt, including key barriers.
To enter into a new market, SASOLI Company wants to serve the local market, so that
they can choose the best possible routes to doing international business. They have to clear about
the company business and know the scenario of the market segments in which they want to
operate ( Fraser, 2019). Along with they need to choice the best routes to expand their business
globally which are listed below:
 Select the Export system- SASOLI company can instantly involve this process, because
it is very common strategy to internalize the company and less demanding. Indirect
export are less in demanding but still important for the all internalization strategise.
 Foreign direct investment- Another strategy to reach the global market is the direct
investment, in this strategy SASOLI company can doing partnership with those company
which are already operates abroad (Ross, 2018).
 Licensing strategy- This strategy need huge investment, it is the international
engagement in which two or more parties are agree for the license, but there is one
problem in this strategy that, foreign company is not a part of the parents company.
 Build joint venture with the company- Joint venture is doing between two or more
companies for the given period for the common purpose. This strategy is good doing
global business with the support of the partner, who are knowledge of the foreign market.
 There are some important barriers while taking the company at international level:-

 Language Barriers- It is the common barriers which is face by the company, while
doing businesses international, for doing smooth operations, they need to work on it.
 Culture differences- Different country have a different culture, so form can be
understand the culture of countries where they want to doing business (Bhale, 2020).
 Managing the global terms- It is difficult for the SASOLI company to maintain a proper
functioning of the firm as a team, because is could be difficult to understand the different
aspects for the international market.
M4 Critically evaluate the key barriers in doing business internationally and make
recommendations on how they can be overcome.
There some various obstacle which is faced by the SASOLI company, so they need to
work on it to resolve this barriers. To resolve the problem of language barriers, company wants
to doing a proper training to their employees and develop the knowledge of language and culture
of the Country. Along with company, need to doing proper research work before entre I to ta
new market (Amit and Zott, 2020).
Conclusion
In this report it discusses the regarding topic of global business. If any company wants to
improve their performance and expand their business globally, so they need to make a right
strategy planning, which support the company to build their brand image in different countries.
Along with they need to take proper decisions before entering into a new market, because it
helps the company to handle the tough situation. In this report it discusses the barriers which is
faced by the company doing global business and how to overcome this barrier.

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