Analysis of the General Environement of Bakhresa Group of Companies

Topics: Tanzania, Economics, Inflation Pages: 14 (3988 words) Published: October 23, 2008

This report looks at the market forces involved in the influence of the Bakhresa Group of Companies expansion in the East African region and beyond. The report considers the position of the company in relation to its environment at this current time and offers possible solutions to its growth possibilities. It has grown out of the need for a strategic look of the company at this time of global change and seeks to find out what the position of the company will be in the future.


1.1 Background
Said Salim Bakhresa & Co.’s and Bakhresa Food Products are a collection of companies each of which is part of a whole that forms the Bakhresa group. It has steadily been expanding its borders from Tanzania to the neighbouring countries and has been gaining a lot of market force over time. Countries operated in currently are: Tanzania


This group of companies has specialised in undertaking certain projects in the neighbouring projects while at home, in Tanzania, it has diversified into the making and distribution of various products. Products made include the following: Maize flour

White bran for livestock
Bread (white, brown)
Puratha (chapati)
Ready to drink beverages

It has also invested in the operation of a marine service that has tours to and from the island of Zanzibar. The main offices are on the mainland coast of Dar-es-Salaam where one can process tickets and further information necessary for future trips.

1.2 Objectives
1.To give an overview of the strategic position of the Bakhresa Group of Companies within the Tanzanian market. 2.To give possible suggestions for market growth within and outside Tanzania. 3.To find solutions to the challenges faced by the group within the general environment of Tanzania.

1.3 Limitations
This report does not cover other areas that the group of companies operates in due to lack of knowledge on the necessary factors that are prevalent in the other countries.

2.0 General Environment
This environment is one that generates factors or influences that impact on the activities of an organisation but over which the organisation has no direct control and influence over.

The impact of the general environment on an organisation can be analysed by the use of PEST analysis and scenarios.

A PEST analysis is an analysis of the external macro-environment that affects all firms. P.E.S.T. is an acronym for the Political, Economic, Social, and Technological factors of the external macro-environment. Such external factors usually are beyond the firm's control and sometimes present themselves as threats.

Scenario building is a process of designing a hypothetical situation in a way that helps you predict the consequences of decisions and actions. It is used hand in hand with forecasting tools which are tools that use calculation based on historical data to make predictions about the future.

Instances of factors that may come into play are as listed below in the table.


Taxation Policies
Protection Laws
Political Stability
Political Instability
Liberalization Policies
Employment law
Competition regulation

Exchange Rates
Money Circulation
Disposable Income
Energy Availability
Water Availability
Health Status
Income Distribution
Social Mobility
Health Status
Population Trends
Life Style Changes
Attitude Towards Work And Leisure

Rate Of Obsolesce
New Developments And Inventions
Speed Of Technological Transfer
Changes In Technology
Lack Of Expertise
Energy use Cost of Electricity

Table 1: Sample PEST table with various factors that impacting an organisation

2.1 Factors Impacting the Organisation
The major activities in...

References: USAID Tanzania Agricultural Sector Assessment. 26 November 2007
Strategy “PEST Analysis”26 November 2007
Bakhresa Group of Companies.
26 November 2007
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