Exam (elaborations)

MNB3701 Assignment 2 answers due March 2024. This document contains well answered and unique answers that will help you score a very good mark. Contact 0/8/1/3/8/1/2/8/8/0 for further assistance.

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Course
Business Management (MNB3701)

Institution
University Of South Africa (Unisa)

MNB3701 Assignment 2 answers due March 2024. This document contains well-answered and unique answers that will help you score a very good mark. Contact 0/8/1/3/8/1/2/8/8/0 for further assistance.

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Uploaded on March 4, 2024
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Type Exam (elaborations)
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mnb3701 assignment 2

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MNB3701 Assignment

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QUESTION 1

REPORT: SASOL COMPANY MOZAMBIQUE

1. EXECUTIVE SUMMARY

This paper provides an analysis of the multinational enterprise (MNE)
Sasol and the formal and informal institutions and frameworks that govern
its operations in Mozambique. A multinational firm or MNE is an enterprise
that engages in foreign direct investment and owns and controls value-
adding activities in more than one country (Peng & Meyer 2019). It
typically has multiple facilities across the globe, derives a substantial
portion of revenues from foreign operations, manages subsidiaries with a
common strategic vision and resource pool and often places foreign
nationals or expatriates in key management posts.” (Erwee, 2017: 176).

This report evaluates Sasol's presence in Mozambique's energy sector
through a comprehensive literature search, resource appraisal, and
analysis of the formal and informal institutional frameworks. The report
highlights Sasol's contributions to Mozambique's economy and industrial
development, as well as the challenges and considerations of trading
internationally and engaging in foreign direct investment (FDI). The
literature search identified relevant sources on Sasol, multinational
enterprises, Mozambique, formal and informal institutional frameworks,
and determinants of success. The search was conducted using databases
such as JSTOR, Scopus, and Google Scholar, resulting in the review of 20
articles, of which 12 were deemed relevant and useful for the report.

The background section provides an overview of Sasol's history and
presence in Mozambique, focusing on its contributions to the country's
economy through the development of natural gas fields and
infrastructure. It highlights Sasol's commitment to sustainable practices,

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corporate social responsibility, and responsible development. The formal
institutional frameworks section evaluates the political, economic, and
legal systems in Mozambique, highlighting their impact on Sasol's
operations. The evaluation emphasizes the importance of understanding
and maintaining positive relationships with government officials,
monitoring economic stability, and ensuring compliance with laws and
regulations.

The informal institutional frameworks section examines the role of culture,
language, religion, and ethics in shaping Sasol's success in Mozambique.
It emphasizes the need for cultural sensitivity, effective communication,
and adherence to local ethical standards. The report provides implications
for management action, such as cultural assessments, language training,
and strategic partnerships with local stakeholders.

The resource appraisal section assesses Sasol's key resources and
capabilities, including technology and innovation, natural resources,
human capital, and strategic partnerships. It highlights the importance of
continuous investment in research and development, supply chain
optimization, and understanding the local context. The challenges trading
internationally section evaluates the challenges faced by Sasol in trading
internationally and provides implications for management action. It
emphasizes the need to understand the comparative advantage, invest in
research and development, and optimize supply chain strategies.

The foreign direct investment (FDI) section justifies Sasol's FDI in
Mozambique based on the ownership, location, and internalization
advantages. It examines the strategic fit of location advantages with
Sasol's goals and evaluates the institutional constraints and enablers
governing FDI in Mozambique. The report provides implications for
management action, such as maintaining positive relationships with the

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Exam (elaborations)

MNB3701 Assignment 2 answers due March 2024. This document contains well answered and unique answers that will help you score a very good mark. Contact 0/8/1/3/8/1/2/8/8/0 for further assistance.

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