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
GRAB THE BEST PAPER93.3% 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 OF Analysis of Strategic Risks in South Africa

Macroeconomic Analysis of South Africa

...? Macroeconomic Analysis South Africa is regarded as one of the most important economies in the world. It is an economic hub of African mainland. Even though the financial structure of South Africa is improving, it is observed to face two most important macroeconomic problems (i.e. unemployment and electricity) which can have a substantial impact on the industrial development of the economy. The paper analyzes the extent of these problems and how the government reacts with the problems through developing macroeconomic policies. Furthermore, the paper also describes the hospitality industry in South Africa and its...
12 Pages(3000 words)Research Paper

South Africa

...? A Reflection Paper on 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. This nation is one of the blessed places with precious stones with its vast area of land that has caught the heart of colonizers to love the place instantly without question. Needless to say, its natives are a wealth as well because of their unique skills and talents which they seem to be the only ones to have been blessed with, especially...
2 Pages(500 words)Essay

Global South (South Africa)

...?An examination of conflict and development in the Global South – Case Study “South Africa” Table of Contents Introduction 3 History of South Africa Colonisation 3 Political System 5 Demographics 8 Developments 10 Conflicts 11 Conclusion 12 Bibliography 13 Introduction The research paper deals with the country of 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...
6 Pages(1500 words)Essay

South Africa

...? Apartheid is a terminology, which defines the practice whereby certain communities i.e. non whites in South Africa were isolated by the government on the basis of their race and skin color, such that they were not allowed to enjoy equal rights as those of the whites, who were actually the minorities in this country (Worger, 2004). 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...
2 Pages(500 words)Essay

South Africa

...Marketing in South Africa Target Market and Competition In doing marketing in a business, one has to put focus on a specific target group that is aimed at in terms of making sales in a business. In marketing strategy, one has to clearly define the target so that it can convey the sense of productivity. For the marketing strategy to meet the target group efficiently, they have to consider some of the elements of marketing mix that will dictate whether the strategy is successful or not, these includes; product, promotion, price, and distribution place (Hawkins et al 67). In the marketing strategy, there should be the classification of the various groups who are separated by certain noticeable aspect that...
6 Pages(1500 words)Assignment

South Africa

...South Africa Order No: 176169 No of pages: 2 Premium – 6530 Anthony Trollope: The Diamond Fields of South Africa, 1870 “The Diamond Fields of South Africa” 1870, a book by Anthony Trollope is not only intriguing but extremely interesting for the fact that it gives you a first hand report of the very birth of the diamond mines in South Africa. This book holds great historical significance in giving 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...
2 Pages(500 words)Essay

South Africa

...South Africa Team B By: Federico Creek more DeVry March 24, Sales Letter Team B CC March 24, South African Cultural Analysis as a Target sales country Background of the country The Republic of South Africa is currently one of the most developed nations in Africa having risen from racial discriminations and apartheid rule through good and committed governance. The government of South Africa have initiated measures supporting economic, cultural, and political development. These factors create a favourable business hub that has maximised domestic industry and encouraged foreign investors....
2 Pages(500 words)Research Paper

South Africa

... Economic analysis Total Population and Growth South Africa is one of the fastest growing nations in Africa in terms of population growth rate. The total population is estimated at 48 810 427 as per the population estimates conducted in July 2012. This population estimate is bound to increase or reduce due high mortality rates caused by HIV/AIDS which can possibly contribute to short lifespans, increased death rates, and increased infant mortality rates. It is also bound to cause a change in distribution of population on such factors as age and gender expectations. Distribution of Population Age and sex South African population is structured according to age as follows; children who are below the age of 15 years constitute 28.4... . This...
3 Pages(750 words)Essay

South Africa

...South Africa is a diverse country and it is comprised of people with a variety of cultures, religions and languages. According to Census the countrys population stands at 51.77-million where the Africans make up the majority comprising of 79.2% of the population; coloured and white people each make up 8.9% of the total; and the Indian/Asian population 2.5%. "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 Venda while the white Africans include Afrikaners, English speakers as well as the immigrants from the rest of...
2 Pages(500 words)Essay

South Africa

...Ecotourism and Sustainable Travel Final Project: South Africa Ecotourism and Sustainable Travel Final Project: SouthAfrica Eco touring has been highly valued by both the travelers and the residents of the countries being travelled. For the residents they earn a lot of income. Due to travelling, many countries have earned a lot of income hence development. As for the tourists their minds open up as they are able to discover beautiful and interesting places (Yamada, 2011). They also get a chance to get exposed to new cultures. One also gets to get learned and educated about the history of different places. One finds life more interesting as he or she gets a break from the past life as well as being...
6 Pages(1500 words)Assignment
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 Analysis of Strategic Risks in South Africa for FREE!

Contact Us