Professional Documents
Culture Documents
STM731 - Written Assignment 1
STM731 - Written Assignment 1
STM731 - Written Assignment 1
TOTAL 90
MARKS FOR TECHNICAL ASPECTS
1. TABLE OF CONTENTS 2
Accurate numbering according to
the numbering in text and page
numbers
2. LAYOUT AND SPELLING 3
Font – Calibri 11
Line Spacing -1.5
Margin should be Justified
3. REFERENCE 5
According to the Harvard Method
TOTAL MARKS 10
TOTAL MARKS FOR ASSIGNMENT 100
EXAMINER’S COMMENTS
MODERATOR’S COMMENTS
1
Instructions and guidelines
NB: 1. Candidates are advised to read the guidelines in the study guide.
2. Assignment questions are on page 3 and 4.
3. For reference use prescribed, recommended books and other resources you may come
across.
4. Correct Harvard referencing carries (5 Marks).
Have a sound understanding of key principles and theories, rules, and awareness.
Solve unfamiliar problems using correct procedures as well as investigate and critically analyse
information and report thereof.
2
CASE STUDY
READ THE CASE STUDY AND ANSWER THE QUESTIONS THAT FOLLOW:
The internal business environment of Shoprite Holdings Ltd. includes the factors related to the
structure of the organization and based on these factors the Board of Director (BOD) of the company
make vital decisions. The management decisions or the decisions of BOD support the company to run
in the right direction and these are also important for keeping effective control over the organization.
The internal business environment of the concerned company is comprised of the resources of the
organization. Moreover, these resources are vital for determining the strengths and weaknesses of
the company. The competencies, as well as capabilities of the business firm, can be recognized by
gauging the strengths and weaknesses associated with the resources of the company. The resource-
based view regarding the respective organization is founded on the base of 3 classification criteria,
which are subsequently infrastructure, human resources, and technologies. The management of
Shoprite Holdings Ltd. makes important decisions for the organization based on the following
elements:
Objectives: The objective of the company is to provide its customers world-class shopping experience
at an affordable cost and the management’s decisions are formed based on this objective.
Structure: The organizational structure is also an important factor to make management decisions.
The organizational structure of Shoprite Holdings Ltd. indicates the ways by which the managers
communicate with the people of the organization through the specific system and procedures within
the company.
Technology: Technology plays a vital role in the organization as it massively influences the supply chain
of the company.
People: People are the most important resources within the company as the skill and capabilities of
the people provide a significant contribution to the strengths and weaknesses of the organization. The
internal environment is mostly based on the people of the concerned company Shoprite Holdings Ltd.
The internal environment of the company is greatly influenced by domestic small suppliers of the
company which is in distress in the turbulent situation where the South African Currency is weakening.
Besides this, rigid labour laws in South Africa also obstruct the company to remain competitive in the
international market (Shoprite holdings, 2020).
The external business environment of the concerned company Shoprite Holdings Ltd. is very critical at
this moment as the fluctuation of exchange price and downsizing of the South African economy due
to the outburst of the Covid-19 pandemic impose critical negative impacts on the business. The
company is influenced by these external environmental factors, but these cannot be controlled by the
organization.
3
The external environment of Shoprite Holdings Ltd. is influenced by the strong competition in the food
market of South Africa. The weak performance of the South African economy is also a critical factor
along with the energy issues in the country. A hike in the tariff of electricity and fuel price in South
Africa would have critical impacts on the performance of the company. The emergences of the Covid-
19 pandemic and subsequent lockdown and social distancing norms affect the retail business as
people are now more interested in buying foods online instead of the supermarket (Shoprite holdings,
2020).
QUESTIONS:
“For organisations to be able to understand the present and predict the future, an integrated
understanding of the external and internal environments of an organisation is essential.
The strategic management process is a way of aligning the unique resources and capabilities of an
organisation with the constantly changing and increasingly competitive external environment in
pursuance of its goals.”
1. With reference to the above statement, critically analyse the macro, industry and
internal environments of Shoprite holdings Ltd. Expound on the variables of each
environment and support your analysis with relevant examples. [45 MARKS]
2. Analyse and apply Porter’s five-force model for analysing industry competitiveness
that can be implemented by Shoprite Holdings Ltd. [45 MARKS]