Nobody downloaded yet

Competitiveness and investment attractiveness of the South African food retail industry - Essay Example

Comments (0) Cite this document
Summary
Competitiveness and investment attractiveness of the South African food retail industry Module Code Word Count 3004 Table of Contents 1. Introduction 1 2. Porter's National Diamond 1 3. Management Issues 6 4. Mode of Entry 8 5. Conclusion 9 References 11 Appendix 13 Introduction 1.1 Background The South African food retail industry (SAFRI) has been experiencing strong growth in recent years and is predicted to grow further (Datamonitor, 2012)…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER94.6% of users find it useful
Competitiveness and investment attractiveness of the South African food retail industry
Read TextPreview

Extract of sample "Competitiveness and investment attractiveness of the South African food retail industry"

Download file to see previous pages By 2012, the SAFRI is expected to have a value of $98.1 billion which will be an increase of 32.7 percent over 2011 (Appendix A). While the above figures demonstrate the attractiveness of the market for investments, further evaluation would be conducted to determine the competitive advantage in investing in South Africa. This would be conducted through the extended model of Porter’s National Diamond. 2. Porter’s National Diamond The competitive advantage of an industry, according to Porter, derives from the national ‘diamond’. These four diamonds are the four determinants of competitive advantage created within the home base of the nation state – factor conditions, demand conditions, related and supporting industries, and firm strategy, structure and rivalry. The extended model of Porter’s National Diamond includes government and chance events. An important key feature of the model is that the determinants are supportive of each other and operate as a system (Clancy, O’Malley, O’Connell and Egeraat, 2001). This implies that there should be effective flow of information about needs, techniques and technology. Here geographic concentration is important because proximity facilitates flow of information. ...
While the basic factors pertain to demographics, location and climate, the advanced factors include communications infrastructure, sophisticated skills and research facilities. South Africa’s population has surpassed 50 million and more than 90 percent of its population is non-white (Arisaig, 2012). Unemployment rate is 25.2 percent and the average life expectancy is only 57 years. Unequal distribution of wealth has resulted in the poorest ten percent earning just one percent of the total national income. Poor education system can be attributed to high rates in unemployment. However, the country has modern infrastructure and the retail sector is sophisticated although dominated by local products (Ntloedibe, 2012). The country also has a well developed communications network and electricity supply is also reliable. In addition, South Africa also has a network of merchant banks, brokers, and financial services specialists. Investments in technology and telecommunications are increasing which will enhance business infrastructure thereby enabling the companies to compete with the countries in the West (Maxwell, 2013). The southernmost country on the African continent, South Africa is one of the most economically prosperous nations in southern Africa due to its coastal location and presence of gold, diamonds and natural resources (Briney, 2012). However, climate change is prominent in South Africa and this impacts sourcing and transportation of agricultural products for retailers. One way to handle this is through adaptation by sourcing through several suppliers in vulnerable categories. Despite its coastal location, water is scarce and water security is a fundamental challenge faced by retailers. This requires the retailers to actively engage with suppliers for ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Competitiveness and investment attractiveness of the South African Essay”, n.d.)
Retrieved from https://studentshare.org/business/1403710-global-international-business-contexts
(Competitiveness and Investment Attractiveness of the South African Essay)
https://studentshare.org/business/1403710-global-international-business-contexts.
“Competitiveness and Investment Attractiveness of the South African Essay”, n.d. https://studentshare.org/business/1403710-global-international-business-contexts.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Competitiveness and investment attractiveness of the South African food retail industry

A South African Investment

...be fulfilled previous to one can worry regarding intellectual, religious, and other individual constitutional rights and liberties. The Caltex plants do not have any authority to set political stress on the law of South Africa to modify its policies. Monetary investment means a lot to a nation. It is an embarrassment that Caltex plant had no trouble going into a country whose rules was such a disgrace to humanity. On the other hand, the standard of existence for South African minorities and Blacks was shocking. They had very poor houses, were deprived of food accessibility, followed poor educational plans, had no right to follow certain jobs, and were...
4 Pages(1000 words)Essay

Service Operation Management: Retail & Food Industry

...? Service Operations Management: Retail & Food Industry Al’s Store – Home delivered grocery and ready to cook meal service Number: Assignment Due Date: 5 August 2011 Lecturer: Unit name & Unit Code: Table of Contents Executive summary 3 Introduction 4 Competitive Analysis of the Industry 5 Table (B): Competitive Analysis 6 New Service Offering: Home Delivered Grocery and Ready to Cook Meal Service all 100 percent organic 7 Figure (A) Al’s Store focus for Competitive Advantage 8 Targeting and Positioning of the New Service Offering 8 Changes in Internal Operations due to New Service Offering 9 Designing Operating System to...
8 Pages(2000 words)Assignment

A South African Investment Paper

...?Running head:  A South African Investment Paper Insert         Insert Grade Insert 23rd. January. South African Investment Case Study In your judgment, were the possible utilitarian benefits of building the Caltex plant in 1977 more important than the possible violations of moral rights and of justice that may be involved? Justify your answer fully by identifying the possible benefits and the possible violations of rights and justice that you believe may be associated with the building of the plant, and explaining which you think are more important. The Interfaith Centre, which was involved in corporate responsibility in...
5 Pages(1250 words)Essay

A South African Investment Paper

...?Case Study #4: A South African Investment Paper Table of Contents Table of Contents 2 I.Introduction 3 II.Benefits or Violation of Moral Rights and Justice 3 III.Response to the Resolutions 4 IV.Stockholders’ Returns or Social Responsibility 5 V.Conclusion 6 Reference 7 Bibliography 7 I. Introduction The Apartheid policies of South African Government in 1970s and 1980s provoked social unrest and brought the crisis situation for oil industry especially Caltex. The Caltex was a joint subsidiary of Texaco and SoCal (now Chevron), which operated oil refineries in South Africa and its assets were worth $100m in 1977. The value of Caltex tripled in the subsequent eight years. During its operations in South Africa, it faced three major... ...
4 Pages(1000 words)Essay

A South African Investment

...be counter productive in regard to the interests of the company (Tobin, 2009). Business managers ought to restrict their actions to the decisions that relate to investment principles and the law. Only in the event that, two potential options are equal in regard to the law, and returns on investment, should a manager reflect on ethical concerns (Vickers, 2010). References Mbendi, S. (2008). Information for Africa: South African Mining. Heavy Minerals Mining, 21 (2), 11– 15. Nicholas, S. (2008). Privatizing South Africa’s Industry & the Economics and Law of Socialist Utopia. Law & Pol’y Int’l, 30(6), 5–10. Tobin, R. (2009). Asset...
5 Pages(1250 words)Essay

A Case Study on a South African Investment

...? A Case Study on a South African Investment A Case Study on a South African Investment The central concept of ethics focuses on the following ideas:right and wrong; good and bad; and permissible and impermissible, depending on what culture or society it is being applied on (Driver, 2007). There is also the dilemma of weighing in the values as well as the outcomes of different decisions before coming up with a conclusion. Such a process creates a situation for the decision-maker that he or she has never done before (Ferrell, Fraedrich & Ferrell, 2008). On the other hand, business ethics is defined as applied ethics, and is the application...
4 Pages(1000 words)Essay

Food Retail

...competition as well as the need to expand their products and services to appeal to broader market segments. This process is requiring retail grocers to identify and target specific ethnic market segments. In the same way that US retailers have successfully targeted Hispanic consumers, international retail grocery companies such as Tesco must focus on diversifying their product line and successfully marketing to significant segments such as the Muslim community. According to the company, Tesco is one of the world's leading international food retailers with over 2500 stores worldwide and a commitment to long-term growth (Tesco: At a...
8 Pages(2000 words)Assignment

South African Economy

...Answer The South African central bank governor, Tito Mboweni, has hiked the interest rates when inflation is already high "to tighten monetary policy in an effort to stem rising inflation". 1 Since the cost of petrol is unceasingly increasing, it is creating additional pressure on food prices and adding to the current domestic inflation and bringing corresponding changes to the exchange rate, though the governor claimed that they were primary but not the only factors for the trend. "Together these two categories accounted for over half of the increase in the CPIX. Broad based pressures are also intensifying. If food and energy were excluded, CPIX inflation would have...
6 Pages(1500 words)Essay

Retail Industry

... continue to chase every last pound of dividend for shareholders at the potential expense of massive damage to the rural infrastructure in this country." Tesco has come under attack in the UK in recent weeks after changes were reportedly made to their trading terms. It has been alleged that they have offered alcohol suppliers 'take it or leave it' terms as they seek to reduce costs, as well as increasing, by 30 days, the time of payment to non-food suppliers. The UK's largest retailer has been seeking to counter the impact of discount grocers in Britain, which threaten their market share, while also trying to make further inroads in the US and Asian markets. "Competitive pricing for its customers can be achieved without resorting... to the...
12 Pages(3000 words)Essay

South African News Reports

... that they had transport challenges when moving the toilet door (through which the shootings occurred) to the police station. It was also reported that the digital camera used to record evidence for the crime had been wrongfully marked. Oscar wore a scornful look in response to these claims. Overall, the information puts more dents on the South African police’s image. This comes after execution-style killings in the Marikana massacre and a video of brutality against a naked Nigerian man in the streets. On the 17th of March, the prosecution got their chance to redeem themselves by discussing circumstances under which the defendant acquired firearms. Their primary witness was gun licenser Sean Rens. He reported that the athlete... heard...
3 Pages(750 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Competitiveness and investment attractiveness of the South African food retail industry for FREE!

Contact Us