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INTRODUCTION 

 Business environment refers to all of the internal as well as external factors which influences all of major operational activities of the organisation. It can be said that with the changing time organisations are now expanding their business at international level (Alqahtani and Saba, 2013). Global business environment includes trading between two or more companies who performs business activities together in order to generate more profit. This report is based on  SASOL Limited, the company deals with chemical and energy product. The overall assignment discusses about how operations in global market influences organisational culture, structure and function. And at last, it describes the influence of globalisation on company's decision making and strategy. 

1. Explanation of the structure, culture and governance of the organisation through applying McKinsey’s 7S model

Mckinsey model represents the interdependence of 7s main element which belongs to hard and soft elements of organisation. Hard element of this includes the strategy, structure and system, whereas soft element involves values, skills, styles and staff of organisation (Black, Morrison and Gregersen, 2013). In relation to SASOL Limited, its manager have adopted McKinsey model to understand actual status of the  firm related to its structure, culture and governance. The model is described as below including its elements.

Hard element: These elements can be identified by the management team of the organisation as it includes strategies, structures and system etc. In context to SASOL Limited, hard elements for this organisation are described as below: 

  • · Strategy(Governance): Top Management of SASOL limited are formulating various kind of strategies in order to expand their business in new countries for increasing their  command at international market.  
  • · Structures: Basically, SASOL Limited follows organisational structure in which organisation is subdivided into small sections which are finalised on separate specific functions such as finance, marketing, IT, operations etc. 
  • · Systems: It refers to the working pattern of employees in performing business activities. In relation with SASOL Limited, employees of the company works according to project requirements. 

Soft element (Culture): These elements are very minimal tangible and are mainly influenced with the culture of organisation (Cavusgil and et. al., 2014). It can be said that soft elements are equally important for the success of company same as hard elements. Soft element includes various components such as shared value, skills, style and staff. All of these are described as below:

  • · Shared values(Culture): Value for SASOL Limited represents their business ethics. It can be said that the culture of the organisation is based on overall corporate culture. But, the employees are trained enough to not ignore their organisational ethics while performing business activities. 
  • · Skills: Management staff of SASOL Limited hires skilled employees in order to enhance efficiency of work at workplace. Employees are highly skilled according to the requirement of their job role. 
  • · Style: Democratic leadership style is followed by SASOL Limited as it gives equal importance to all employees at the time of decision making. In this type of leadership style leader mainly delegates responsibility of work among the working staff (Ferraro and Briody, 2013). This develops interest of employees in the assigned work. 
  • · Staff: SASOL Limited handles staff of  approximately 30100. The strength of manpower is owns the capability to perform operational activities of the company. Along with this, employees are well qualified to work at international market and deal with situation which occurs during the work. 

 

2. Applying Hofstede's Dimensions of Culture to demonstrate how the organisation has been influenced

 

Hofstede Model was developed by Dr Geert Hofstede in the ending of 1970s. This model is generally based on  different cultural dimension which varies from each other at international level. In relation to SASOL Limited, the company is expanding its business at international by adding some more countries in the list of trading countries. As the company is growing, it can be said that all of the operational activities, management system and strategy are required to be refresh in order to meet global standards (Kasemsap, 2014).  There are various dimensions of culture on the basis of  which functioning of the SASOL will be influenced. Most important among these dimensions is  described


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