Answer to Question #181566 in Management for ntokama

Question

South African business environment is going through tough times with difficult challenges and constant changes in Macro, Micro and Market Environments. Assume yourself as an owner of a business, discuss your approach in managing the above mentioned challenges in a way that will assist your business not only to survive but also to achieve the expected 

Answer 1

Business environment has its own challenges and strategies that impact the functions of an organization, either negatively or positively. To manage the challenges the following solutions can be utilized basing on the PESTEL model of external environment analysis.

i) to address technological environment, the management requires to come up with technological techniques like training staff members on a continuous basis to assist them cope well with changes in technology

ii) due to high inflation rates, high interests, and low economic growth poses challenges on economic environment. As amanager the strategy will be to decrease interest rates and the business to cut on costs

iii) pertaining the social environment, the government experiences blackout in providing services to the citizens due to apartheid era. As a manager there will be a need to improve quality of education and skills to avail a skilled workforce.

iv) challenges to do with political environment such as democratization of mono policies to disadvantage citizens from owning companies and businesses poses a challenge. the strategy would be nationalization of state owned economic activities such as banking and mining industries.

v) the new policies from the parliament greatly affects the business. As a manager there must be employment equity act in the workplace, the management should utilize the change agents to help business through the transition phase.

vi)