Abstract
M.Comm.
After discussions with various people about the research problem of coordinating
a global strategy at Sasol it is clear that there is a need to determine
the effectiveness of the strategy co-ordination at Sasol in a global context in the
petro-chemical industry.
The management decision problem is to establish how effective strategy is being
implemented globally at Sasol in the petro-chemical industry. This will entail
obtaining feedback on the implementation of previous strategies at Sasol, the coordination
of the present strategy and the recommendation of possible solutions
to the outcomes. As indicated above, the future is uncertain and the environment is constantly
changing generating threats and opportunities. To be competitive in this
environment Sasol needs to adjust and align its strategy and its structure to the
changes. Uncertainty is also present in the corporate environment with blurry
objectives, incorrect performance measures, unclear decision processes,
dynamic individual or group competition or any type of change (Kreitner & Kinicki,
1992). The external and internal uncertainty contributes to the formation of a
barrier to co-ordination. Effective management in uncertain times is thus
imperative for successful co-ordinated achievements. Furthermore, Fawcett et al., (1996:1) indicate that: "... by obfuscating
management's focus, poor measurement systems degrade the firm's ability to manage day-to-day operations in a high value-added manner. The result is that
firms have difficulty developing strong and d istinct capabilities even w hen they
are able to align their strategic objectives to the needs of key customers."
Co-ordination could also b e obtained by implementing the balanced scorecard
correctly so that total alignment by Business Units, Shared Services units,
company teams and other employees is attained against global goals. The
balanced scorecard has so far been successfully applied at Sasol Synfuels and
other SBU's has shown an interest to adopt the balanced scorecard in the future
Up to date Scenario planning is the method whereby the company's strategy can
be tested when confronted by uncertainty and complexity. Scenario planning
ensures innovative and strategic thinking in volatile environments and enable the
company to develop and align core competencies at corporate, divisional or
business unit level. In 1997 Sasol started applying Scenario planning in their
decision-making at Head Office and at the different SBU's and, at present,
Scenario planning is still being used.
To successfully implement a company's strategy a sustaining culture is required.
Sasol adopted a new set of values at the beginning of 2002 to summarize the
essence of Sasol's success over the past 50 years and its challenge to maintain
growth in the next 50 years.
The traditional financial systems namely financial accounting and management
accounting is at present being applied at Sasol. This study is undertaken to
establish if the traditional financial system should be supplemented with strategic
management accounting to enable top management to better follow the
implementation of strategy.