Macro Environment of South Africa

Introduction

Every business all throughout the world is aiming to gain not only the competitiveness in their competitors but also success in other foreign borders. This dream can be the most popular dream on the business leaders and it may sound absurd, but true. Through the success of an industry in other countries, the sustainable development of the mother country can be the nest progress that might happen.

Macro Environment Factors

Business operations in South Africa may be different from the other operating countries because of the nation’s aim for the development specifically on their economy. Most of the organizations generate the idea of development in discussing the application or the influence of the macro or external business environmental factors to the various industries. Macro environment factors are also called PESTLE analysis wherein the research of the organization regarding their nature of business depends on the external factors that might affect the overall performance of the business. The macro environment factors are uncontrollable factors that have the power to influence an organization regarding the decision making that can reflect of their application of strategies and in their assessment of the organization’s performance. In Africa, the use of the macro environment or PESTLE analysis can change the business performances because it definitely creates a significant impact on the product development that can be beyond the control of the organization.

Political Analysis

. The role of the politics is prioritized mostly on the operation of the business such as understanding the regulations they require for the legality of the business. In addition, the influences created in politics often leads to the equality and fair competition. The regulation of the country depends on what type of government that the country is adopting that can definitely create an effect in the performance of the business. In return, all of the instruments applied in the country’s regulation can be used as the organization’s formulation of strategies.

Economic Analysis

An organization reacts on the changes occurred in the country’s economy. Various economic crises are great challenges for an organization. In addition, the economic trends sometimes change due to following the trends of globalization and international market. However, the assessment on the economic aspects of the macro environment in South Africa may help the organization in identifying the applicable policies such as concerning to the technological revolution, innovation, or telecommunications. Through the appropriate determination of the country on its economic aspects, the impact of the global markets can either be minimized or accepted both for the economic development of the country.

Social Analysis

Most of the times, the social aspect is partnered to the economic aspects. Their combination can lead to the progress or development. Every organization can start their very own strategy through distinguishing the different social aspects that had been under the innovative changes. Most of the time, organizations give too much effort in analyzing the impact of their propose project in the acceptance of the community and the norm of the society.

Technological Analysis

Africa should admit that in some way, the organizations are left behind in different technologies. The train of consequences comes next such as dissatisfaction on the result of their products compared to the other competitors. The changes happen in every organization sometimes affect every area of their production or service and the turn to use the technologies is definitely a great advantage.

Legal Analysis

The legal aspect pertains to the policy, law, and the concern of the other institutions such as the Labor Sector. In this area, every organization should prove their accountability in terms of the good governance to the regulatory processes wherein they can be interpreted into the legal framework. This can be also affected by the technical and financial factors and serve as a benefit for the agreement with the government and the management.

Environmental Analysis

The issue of the organizations corporate social responsibility can be tackled in this area. The involvement of the environment in the nature of the business is a great issue and the business leaders should avoid saturating the resources as well as polluting it.

Conclusion

Basically, the aim for the sustainable development of the country starts in the small beginnings of a business in to its pursuance of sustainable operations. As a basic step in slowly fulfilling this dream, the positive outlook of the organizational is needed. Through the use of the information available inside and outside the organization, the business leaders can formulate an analysis wherein they can adopt as a strategy.

Sources:

Du Plooy, P., Blignaut, J., & Bond, P., 2007. Re-Think Investment in South Africa [Online] Available at: http://assets.panda.org/downloads/rethink_investment_in_africa_final_high_res.pdf [Accessed 11 March 2010].

Gallardo, J., & Randhawa, B., 2003. Microfinance Regulation in Tanzania: Implication for Development and Performance of the Industry, African Region Working Paper Series, No. 51 [Online] Available at: http://www.worldbank.org/afr/wps/wp51.pdf [Accessed 11 March 2010].

IMF, 2002. Economic Prospects and Policy Issues, World Economic Outlook, International Monetary Fund

OECD, 2003. Competition Law and Policy in South Africa, Organization for Economic Co-Operation and Development Peer Review [Online] Available at: http://www.oecd.org/dataoecd/52/13/2958714.pdf [Accessed 11 March 2010].

Salinger, B.L., Bhorat, H., Flaherty, D.P., & Keswell, M., 1999. Promoting the Competitiveness of Textiles and Clothing Manufacture in South Africa, African Economic Policy Paper, No. 2 [Online] Available at: http://pdf.usaid.gov/pdf_docs/PNACH147.pdf [Accessed 11 March 2010]