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]

Cadbury

Cadbury is one of the world’s largest businesses that is engaged in a chocolate business and positioned itself in the market as one of the company that has a great market share for almost all of the countries. Moreover, the company also spread in the emerging markets most especially in the competitive markets where the company will find another domain.

The popular products of the company includes many global, regional and local all-time favorites such as Cadbury Dairy Milk, Flake, Crème Egg, and Green & Black’s in chocolate; Trident, Dentyne ad many other popular brands that are available in the markets.

PESTLE Analysis

Political – The Company’s strong advantage is the seniority in business. With that the company can able to manage any adjustment needed in every country. The seniority of the management enables the other foreign country also welcomes the company’s existence because of its competence in the market.

Economic – There is no doubt that the Cadbury is making a big contribution in the economies of the foreign country as well as in their own country. The high level or rate of sweet-lovers, the company placed a label as the best choice of the market. Another contradicting factor is the economic downturn that affects all confectionery companies.

Social – The impact of the business in the society is really great because of it became sweeteners after every meal. Therefore, many individuals can enjoy the happiness it brings inside the house. In some instances, the other people turned down the idea of eating chocolate because of some serious health problems. In terms of valuing the people, Cadbury recognizes the rights of the workforce and valued the ideas they might contribute for their progress.

Technology – From the traditional crafting of chocolates, the company also recognized the importance of technology. From the production, Cadbury had incorporated into many types of machinery that make their production be a cost-efficient procedure.

Legal – The ideas of creating a specified taste to be available in the markets. The competitors and the other company making the same nature of business are unique. In terms of the merging and acquisition business, the company recognized the legal aspect that is the basis of the right flow of the business.

Environment – The Company recognizes the certain impacts that they might bring in the environment. There are available strategies and continuous inspection came from the local officials to insure that the resource, as well as the environment is not exploited.

Porter’s Five Forces Analysis

Supplier Power – The Cadbury has many contracted suppliers that can support their on-going operations. Although there is an existing competition, the raw materials such as nuts or special ingredients are sufficient enough to satisfy their production. The good relationship of the company in their suppliers is considered as an advantage.

Barriers to Entry – Since the company is already popular and widely known, Cadbury can earn the trust of the countries. The only hindrance that might affect the production of the Cadbury is to find a good location and gather the requirements for the smooth entry and the foreign policy that might affect the operation.

Power of Buyer – The demands is not that high because of the existing health conscious. The price subjectivity of the products is not a question for the people but the increasing number of competitors that offers the same type of products at a lower cost might be the cause of the customer loyalty alteration.

Rivalries – Many businesses are competing against the Cadbury and planning to take over the supremacy the company kept for years. The difference of choice depends on the taste ad preferences of the customers. And in the past years, companies like the in the other industries are continuously developing their products or innovating the ideas making it more hard to compete.

Threats for Substitutes – There are only a minimum rate for threats which came from the other competitors. The reason behind this is the brand strategy already created by the company. Through their high level of equity, the brand name is transformed into three different categories that make it more effective in the market. It allows the corporate brand name to be combined in supporting the product identification.

Corporate Strategy

The company’s board of shareholder values and believes that it is best to achieve the strong performance through the growth of opportunities and maintaining their strong position in the market. In addition, the brilliant minds of the corporate sector are guided by their plans and using the importance of their brand strategy that involved specific targets and continues to focus on it. They addressed in forward looking plans that tries to diminish any uncertainties and challenges involved and exchanged it with strategies based on the assumptions existing in the present markets. This idea will help the company operate for the future and achieve long-term reign.

Works Cited:

Ashish, A., 2009. Cadbury Marketing Strategy [Online] Available at: http://www.scribd.com/doc/22450560/Cadbury-marketing-strategy. [Accessed 07 Jan 2010].

Cadbury, 2009. Cadbury Issues Defense Document, Announces Higher Vision into Action Targets for 2010 to 2013 Confirms Q4 trading in line with expectations Reconfirms Guidance for 2009. [Online] Available at: http://www.cadbury.com/media/press/Documents/Cadbury%20Defence%20Announcement%20141209.pdf. [Accessed 07 Jan 2010].

Cadbury, 2009. In Addition to the Economic Downturn Cadbury Has to Compete With a Mightier Mars. [Online] Available at: http://www.glgroup.com/News/In-Addition-To-The-Economic-Downturn-Cadbury-Has-To-Compete-With-A-Mightier-Mars-39019.html. [Accessed 07 Jan 2010].

Strategic management: PESTLE Analysis on Barclay's Premier League

The Premier League: A Brief History

It is the world’s most watched and most lucrative league that attracts the top players from all over the world. All started form disastrous events from the past stadiums and it was then decided to build a complete overhaul in the way football grounds were run and structured. This led to the introduction of all-seater stadia in 1992.

The project was faced with huge cost and expenses and many involved issues, recommendations and growing concern. There are various principles involved and played essential role in setting up the Premier League thus, the League became independent and managing its own commercial endorsements, broadcast, and sponsorship agreement. After almost three months the Premier League was established as a limited company and took radical steps of assigning television rights. The marketing strategy of the Premier League was valued by the networks because of the relatively new concept offered for the fans.

On 2001, Barclay card became the new sponsor and generated million of euros for over three years. The increased revenue has ensured the English clubs to compete on a global scale in terms of transfer fees and wages which is an important factor for the best overseas players. For over the years, the overseas players increased and helped shape and develop the British game as they bring new techniques and impact to the fans. Still, the Premier League is promoting the development and excellence at club in terms of international level.

PESTLE Analysis

Barclays Premier League identified the sustainability as a means of recognizing and managing the economic, social, and environmental issues across the Group, and at the same time, contributing to the wellness of the society.

Political Analysis

The sustainability of Barclays’s agenda has expanded rapidly. It reflects the company’s increasing focus on the wider nature of business and made the stakeholders growing interests in competitive world of business. There is now a great awareness about the global challenges such as climate changes, poverty, scarcity of resources, and demographic shifting. The responses came from the government and from different businesses, as well as the non-profit organization helped the Barclays made it possible for the sustainability.

Economic Analysis

The approach to the sustainability program is useful and encourages the company to be open and transparent to the issues such as the initiatives in further research and development, dialogue with the government and various organizations, and their priorities. Barclays enable to broaden their focus on corporate responsibility to prove that they play an essential role in establishing an economic advantage in the country where they operate.

Social Analysis

The sustainability strategy focuses in their objective to improve the value of the business and their stakeholders. They give importance on the customers and clients such as maintaining the understanding of their needs and promoting the company by measuring satisfaction. It can be only possible by focusing of their global performance by their assurance to develop an innovative solution and enhancing performance. On the other hand, the people working under their organization make a great advantage in the performance of the business. In addition, they attract employees to collect the talent, develop them according to the competent world, and retaining them as much as possible.

Technological Analysis

The Barclays uses the means of technology for their business especially in the areas of inclusive banking. Their aim to help the people in fight against poverty is possible through their financial system. The technology makes it possible to empower the system and establish a competitive advantage. Pioneering the new ideas, adding the skills and operational excellence are part of the guiding principle of the organization.

Legal Analysis

Barclays’s responsible global concern had reached different aspects and caused impacts. It was given an emphasis in the further aims of the organization in targeting the progress and maintaining the performance of the organization. It can be only possible if the organization will provide right specification and under the legal terms. The company’s business model, integrated investment banking finds its strength in the market therefore, legal terms should be prioritized.

Environmental

Managing environmental aspect is managing the direct and indirect environmental impacts that include the energy, water, wastes, and as well as financial activities through recognizing the risk and opportunities associated with the environment.

Conclusion

Barclays already experiencing the air of success and still aiming for more, this is possible through their ongoing view for sustainability. With the help of the traditional strategy, Barclays will set a leadership in standard model for the other firms.

Consulted Works:

Barclays Interim Management Statement [Online] Available at: http://group.barclays.com/Sustainability/Reporting/Sustainability-Report-2008/Targets-and-performance. [Accessed 07 Jan 2010].

Barclays Premier League “A History of The Premier League”. [Online] Available at: http://www.premierleague.com/page/History/0,,12306,00.html. [Accessed 07 Jan 2010].

Blount, E., 2005. Breaking Away: Bob Diamond Saw an Opportunity to Remake an Investment Bank around Risk Management, Minus the Usual Equity Trading and M&A Units. His Hunch Proved Right for Barclays. ABA Banking Journal, Vol. 97, No. 10.

Charleston, S., 2008. Determinants of Home Atmosphere in English Football: A Committed Supporter Perspective. Journal of Sport Behavior, Vol. 31, No. 4.

PESTLE Analysis on Coca Cola

Introduction

As we all know, the Coca is today’s one of the biggest corporation that offers different refreshment in form of a soft-drink. These carbonated drinks are consumed at the rate of more than one billion drinks per day. But aside from their historical success, the Coca Cola Company is still a typical business that is affected and at the same time affecting the different type of communities.

PESTLE Analysis

The Coca Cola Company and other organizations have their own weaknesses and strengths that can both affect the future performance of their respective business. Analyzing the future constraints is an advantage for the companies since they can identify the possible factors that tend to leave an impact on their business.

PESTLE analysis is a popular method that focuses in the external factors of the business and the environment where it operates. PESTLE stands for Political, Economic, Sociological, Technological, Legal, and Environmental. All of them examine the changes in the marketplace.

Political Analysis

Political analysis examines the current and potential influences from political pressures. The non-alcoholic beverages falls in the category under the FDA and the government plays a role within the operation of manufacturing these products. In terms of regulations, the government has the power to set potential fines for the companies that did not meet their standard law requirement.

The changes in laws and regulations, such as accounting standards, taxation requirements and environmental laws and foreign jurisdictions might affect the book of the company as well as their entry in foreign country. Other than that, the changes in the nature of business as non-alcoholic beverages can gain competitive product and pricing pressures and the ability to improve or maintain the share in sales in global market as a result of action by competitors.

The political conditions of the country are also basis of the study, especially in internal markets and other governmental changes that affects their ability to penetrate the developing and emerging markets that involves the political and economic conditions. However, Coca Cola continuously monitoring the policies and regulations set by the government.

Economic Analysis

Economic analysis examines the local, national and world economy impact which is also includes the issue of recession and inflation rates. The non-alcoholic beverage industry has high sales in countries outside the U.S. According to the Standard and Poor's Industry surveys, "For major soft drink companies, there has been economic improvement in many major international markets, such as Japan, Brazil, and Germany." These markets will continue to play a major role in the success and stable growth for a majority of the non-alcoholic beverage industry. There is a low growth in the market for carbonated drinks, especially in Coca Cola’s main market, North America. The market growth recorded at only 1% in 2004 for North America.

Sociological Analysis

This analyzes the ways in which changes in society affect the organization such as changing in lifestyles and attitudes of the market. Consumers from the ages of 37 to 55 are also increasingly concerned with nutrition. There is a large population of the age range known as the baby boomers. Since many are reaching an older age in life they are becoming more concerned with increasing their longevity. This will continue to affect the non-alcoholic beverage industry by increasing the demand overall and in the healthier beverages. The demand for carbonated drinks decreases and this pulled down the revenues of Coca Cola.

Technological Analysis

Technology is the main focus of the analysis where the introduction and the emerging technological techniques are valued. This creates opportunities for new products and product improvements in terms of marketing and production. As the technology advances, new products are introduced into the market. The advancement in technology has led to the creation of cherry coke in 1985 but consumers still prefers the traditional taste of the original coke.

Legal Analysis

Legal aspect focuses on the effect of the national and world legislation. The Coca Cola Company receives all the rights applicable in the nature of their business and every inventions and product developments are always going into the patented process.

Environmental Analysis

Environmental analysis examines the local, national and world environmental issues. According to the data of the Coca Cola Company, all of the facilities are strictly monitored according to the environmental laws imposed by the government.

Conclusion

With the intensive study of the PESTLE, the company will continue to emerge and develop if they manage to find solutions in different challenges that the entire organization might face.

Works Cited:

Abdullah, F., (2009) Case Study Strategic Management Coca Cola Company [Online] Available at: http://www.scribd.com/doc/18633636/CocaCola-Case-Study [Accessed 09 Dec 2009]

PEST Analysis on Coca Cola [Online] Available at: http://web.ics.purdue.edu/~pbawa/421/pepsi%20cola%20pest%20case%20study.htm. [Accessed 09 Dec 2009]