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.
Nobody downloaded yet

Analysis of Strategic Risks in South Africa - Essay Example

Comments (0) Cite this document
Summary
This essay examines the risk of doing business in South Africa, and how a corporation can handle those risks. It touches on the political, economic, financial and social risks that are inherent in South Africa and recommend solutions to these problems…
Download full paperFile format: .doc, available for editing
Polish This Essay95.9% of users find it useful
Analysis of Strategic Risks in South Africa
Read TextPreview

Extract of sample
"Analysis of Strategic Risks in South Africa"

Download file to see previous pages This essay is one of the best examples of analysis of different specific kind of risks in political, social and economic environment of South Africa, that greatly influence a company operation.
It critically looks at the political, economic, financial and social Risks and gives insights into how a corporation should position itself in order to gain the best of results in South Africa.
Political risk refers to risks relating to the governance and control of the various peoples in a given nation. The inherent political risks in South Africa have to do with the nature of social exclusion practiced in the country for a long time. However, power is in the hand of a popular the Black African majority government.
The constitution gives a lot of room for strikes, trade unionism and demonstrations, which reignites the strategy used by the Congress and the people power that comes with the current government. This means that a corporation entering the market needs to understand its microcosmic position and make adjustments to meet these elements of favoritism, nationalism, mass action and corruption.
There is also economic risks that are connected with the high cost of doing business in South Africa and other factors like the entry of Chinese businesses who have control of affairs. There are also financial risks relating to credit risk and money transfer issues.
Managing across culures is quite difficult. However, the cultural risk in South Africa is increased by the fact that the cultural diversity is huge.
...
The World Cup brought South Africa surpluses in its balance of trade in the past year and increased its GDP its previous years’ data. With the weakening US Dollar, a business that seeks to operate in South Africa will find it relatively more expensive to trade in South Africa that it would in other parts of the world. Unemployment Unemployment rates in South Africa currently stand at 25.3% and this is blamed on the people’s demands for high wages and better working conditions than other parts of the world (SouthAfrica.Info, 2011). This therefore presents a labor risk to the nation. This is because these conditions show that clearly, labor is expensive in the country. This therefore means that any business that seeks to open up a branch in this country needs to be willing to pay more for labor. International Trade International trade in South Africa is increasingly becoming skewed in favor of the Brazil, India, China and Russia and nations like China in particular has a lot of control in the affairs of South Africa (SouthAfrica.Info, 2011). This therefore means that any company from a country not in this category risks losing out to the competition posed by these nations that are favoured by international treaty in South Africa. This therefore makes it more prudent for a corporation to consider other international expansion options that makes good use of outsourcing to remain competitive and acquire a favorable image in the South African market. Financial Risks General Financial Risks The World Bank gives South Africa 68% for credit worthiness indicating that although it is a low risk country to do business in there is still some risk to do business there (Adar, 2008) The Currency Risks South Africa’s Rand is quite stable ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Analysis of Strategic Risks in South Africa Essay”, n.d.)
Retrieved from https://studentshare.org/business/1423524-analysis-of-strategic-risks-in-south-africa
(Analysis of Strategic Risks in South Africa Essay)
https://studentshare.org/business/1423524-analysis-of-strategic-risks-in-south-africa.
“Analysis of Strategic Risks in South Africa Essay”, n.d. https://studentshare.org/business/1423524-analysis-of-strategic-risks-in-south-africa.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Macroeconomic Analysis of South Africa
South Africa is an economic hub of African mainland. There are two macroeconomic problems (i.e. unemployment and electricity access) which stifle the industrial development of the economy. Analysis of the current state of the hospitality industry is conducted with due consideration of that problems. Prospects of launching a venture are estimated.
12 Pages(3000 words)Research Paper
Essay on International business in South Africa
Mahadevan describes Rapidly Developing Economies as nations with widespread industrialisation, stable currency, rule of law, capital controls, steady GDP growth (4% - 9% per annum on a consistent basis) and adequate technological infrastructure (2007). This paper will undertake the critique of one Emerging Economy, South Africa.
12 Pages(3000 words)Essay
South Africa
South Africa is a beautiful place blessed not just with the richness of its soils but of its human assets as well. The diverse colors of its inhabitants for one, is a great wealth in itself because of the diversity of culture and ideas, not to mention the individual skills and talents of the people.
2 Pages(500 words)Essay
Global South (South Africa)
In a nutshell, it can be said that the paper comprises of in-depth analysis of history, political system, demography and development of South Africa. The paper also focuses upon various conflicts that the country faced over the period of time. It is a thorough examination of conflict and development of the nation.
6 Pages(1500 words)Essay
Business in South Africa
The current paper discusses various political, economic, socio-cultural and technological conditions that have an impact on Google’s international strategy, particularly in maintaining its spot as a well-known search engine service provider all over the globe, while endeavoring to penetrate the booming South African e-commerce market.
17 Pages(4250 words)Coursework
South Africa
This is a phenomenon that had its roots in the early 1650s, a time when white settlers entered the country and started to dominate in the various sectors of economy and governance. However, it is not until 1948 that the apartheid policy became the subject and slogan for the National Party, which vowed to protect the whites from being dominated by the non-whites in all aspects of life.
2 Pages(500 words)Essay
South Africa
iving us a clear and vivid picture of the very inception of the diamond mines and how people from various parts of the world set up huge mining companies. He takes us back in time to the year 1872, when diamond digging was considered as a settled industry and explains all the
2 Pages(500 words)Essay
South africa
The blacks were not alone in the war against the vice that apartheid was because they could receive support from nations abroad and the church councils also played a key role in fighting the vice. Foreign
5 Pages(1250 words)Essay
South Africa
It is also bound to cause a change in distribution of population on such factors as age and gender expectations. South African population is
3 Pages(750 words)Essay
South Africa
"Other" population group makes up 0.5% of the total (South Africainfo.com). The population in South Africa is mainly comprised of four broad groups namely: Nguni, Sotho Tswana, Tsonga and
2 Pages(500 words)Essay
Let us find you another Essay on topic Analysis of Strategic Risks in South Africa for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us