Business management 3.2 – SAB case study
Students were expected to write the theory since they need to apply it and use it to motivate for their application. This applies to all the questions. 1.1 Although the memo is in point system, it does not mean that students must answer in point form. If they do so, each point must be discussed in detail and not just copy and paste. They can also write in paragraph format. When they do so, they will tough on the points listed below. There must be an explanation of how each of the stated steeple factors affects SAB. Students must do so by referring to what is happening currently in SA that affects SAB. Some will appear in the case study and others, students will have to research. Please note I have only indicated those trends that affect SAB that I could remember. Students would list some that are not stated here. Please consider them.
Students must be able to discuss any five trends and apply them to SAB by indicating how they affect SAB. Each factor is worth 4 marks. There must be 2 marks for theory and 2 marks for application (20 marks)
* Social/cultural forces – affect basic values, perceptions, preferences and behavior. * SA is a culturally diverse market with different cultures. This poses challenges for SA businesses * Each culture has individual beliefs, language, expectations, customs and worldview * Cultures are not homogenous – subcultures such as nationality, religion, population group geographic area * Demographic factors – size, structure and trends of a population – determine size of workforce and potential market size * Affect current and potential marketing strategy
* Used to forecast growth and potential of existing products How it affect SAB?
Some people go out to socialize with their peers over a beer drink. They also are into clubbing and do so over a beer. Some women are also getting into beer drinking resulting to SAB producing beers specifically for women. Some men also want to go out with their women. These women join their partners by drinking beer as well. SAB has also introduced ciders targeted to women as a result of these developments.
* R&D –results in new machinery and products, methods and processes and management approaches * Marketers identify new market needs and promote innovation – influence tech to satisfy customer needs * Marketing distributes technological innovation by tracking, developing and commercialising new inventions * Innovation needed to develop and commercialise new products * Tech innovation renders some products obsolete and affect consumer lifestyle * Create new opportunities for marketers to communicate more effectively with target markets – sms, facebook etc * Influence life cycles, supply chain operations, production processes, management approaches and their positions in the market How it affect SAB?
SAB is converting from coal to electricity which means that they have to adopt new production systems and equipments. The fact that they will start using electricity might be a draw back since there is shortages of electricity in SA.
The general economic conditions affect businesses. This happens though factors such a exchange rate, economic recession, inflation, unemployment rate, taxation, income distribution etc. Changes in any of these factors affect businesses favourably or unfavourably. For example, an increase in inflation, which comprise rising prices of goods and services, affect consumer spending power since they spend more money to buy fewer goods due to increased prices. This affect businesses since customers buy less since they cannot afford to buy more. The income distribution in SA has increased since the past decade which has increased the market size for businesses. Government effort to close the gap between the have and they have not, through black economic empowerment...
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