Comment

PESTLE Analysis of Steers

Political 

Threat

South Africa, the country which Steers is located in, is currently experiencing major political turmoil due to the current local elections. The municipal elections have sparked riots and protests across the country. This affects Steers because stores which are in the areas affected by the violence will now be discouraged to visit stores due to their safety being compromised as well as difficulty to get to the store. This will lead to a decrease in sales at stores in affected areas. 

Threat

There is current political unrest in South Africa due to current corruption charges against the president. This political unrest in South Africa has caused international investors to lose faith in South Africa - this will lead to a downgrade of the South African economy to "junk status". This "junk status" will affect Steers for the country will enter a period of decreased economic activity (recession). The recession will lead to increased interest rates as well as inflation rates. This will cause Steers' buyers to have lower amount of disposable income - thus affecting the sales of Steers

Economic

Threat/Opportunity

As described before, inflation and interest rates are increasing in South Africa. This increase in interest rates increases the amount of money people have to pay back on their loans - this decreases their amount of disposable income. This will affect Steers because people now have less money to spend on their products (decreased sales). 

Threat/Opportunity

The increased inflation rate means that people's money now doesn't go as far. This affects Steers because their prices have to rise as well, to keep up with the rising prices around them - this increased price will cause customers to not be able to afford some Steers products, decreasing sales.

Social

Threat

The HIV/AIDS epidemic in South Africa affects Steers. Workers of Steers are susceptible to contract the virus. The people that have the virus are now less productive and this will affect the productivity of the workforce in general, Making Steers less efficient. 

Threat/Opportunity

The rising health concerns in South Africa also affect Steers. Steers' menu is not catered for the healthy individual and this coupled with the rising health concerns will see customers being deterred from the business. This will then lead to fewer sales and decreased profits.

Threat/Opportunity

The rising concern for animal rights in South Africa poses a threat to Steers' sales. Steers' menu is not fully catered to the vegetarian and vegan individual. The people who are concerned about animal rights and living standards will be reluctant to go to a restaurant which doesn't cater for them. This will lead to decreased sales.

Technology 

Opportunity

There is a huge movement to online food orders as well as app orders in South Africa. This new medium of ordering food poses an opportunity and a threat to Steers. Currently, this is an opportunity to Steers as they are one of the early adopters of this technology. There is, however, room for improvement for the addition of an application for smartphones would make the, significantly more competitive.  

Legislation

Threat

New laws affecting the way that animals are farmed in terms of health standards and animal rights affect Steers. Steers is threatened with fines imposed by the government if they do not ensure that their suppliers comply with all these laws. Failing to do so will lead to bad publicity for the company as well as fines and lawsuits.

Environmental 

Threat

The current drought in South Africa poses a threat to Steers. The drought has caused the price of ingredients to increase. This then poses the threat to Steers of a loss of profit due to profit margins decreasing. The drought is affecting local farms' water supplies - the shortage of water means that the supply and demand ratio is thrown off, therefore making the good of the farmer more expensive due to their costs rising. 

Comment

SWOT Analysis of Steers

Comment

SWOT Analysis of Steers

Strengths

  • Steers has an established brand image in the South African fast food industry
  • Steers has known product differentiation with their slogan
    • "Flame grilled: It just tastes better."
  • Steers caters for the low-income market
    • Through items on their menu such as the "Rave" burger
  • High market penetration
    • Steers is the second largest fast food restaurant in South Africa, by number of stores
      • Steers (509) is second to KFC (771 stores)
  • Steers has a high product differentiation through taste
  • Steers has a wide product mix
    • Chicken to salads to burgers to milkshakes
      • This is very competitive in their current market

Weaknesses

  • Steers' unique selling points are easily imitable
    • It is easy for a new entrant or an existing business to change their cooking methods to flame grilled
  • Steers' menu is not ideally catered to the South African taste
    • Their menu doesn't include items such as the "Boerie burger" which McDonald's offers
  • Lack delivery and drive-thru options at most stores across South Africa
    • Whilst most of their competitor's offer drive-thru and delivery services at a majority of their stores, Steers is yet to implement such strategies in a meaningful way.
  • Steers' menu is not catered to deal with the evolving healthy lifestyle of South African people

Opportunities

  • Steers has the opportunity to implement drive-thru and delivery services to their stores
    • This will make steers more competitive to the current market and with their competitors 
  • Steers has the opportunity to expand their menu to provide more products that cater to the South African taste
    • They can create new products in specific geographical regions
      • Areas have different tastes
        • Eg. In Pretoria, a boerie flavour would be more appropriate
  • Steers has the opportunity to offer healthier items on their menu

Threats

  • The level of competitive rivalry is very high in the fast food industry due to a high saturation of brands
    • This faces Steers with the threat of losing market share and customers due to the aggressive nature of marketing and rivalry in the market
  • The increasing health concerns in the South African community
    • This will drive customers away from Steers, considering that they have little healthy options on their menu
  • Imitation of their flavours and cooking methods

 

 

Comment

Comment

Marketing

Mindmap - Click button to download

Actual Text

  • The Marketing Mix 
    • Product
      • General
        • The most important factor of the marketing mix
          • Without the product, a business cannot function
        • Different types
          • Consumer goods
          • Consumer services
          • Producer goods
          • Producer services
      • Branding
        • If the unique features and image of the business are combined, it is known as the brand
        • The product and the image of the business will be related
          • The brand is a name/logo/slogan to assist the consumer in recognition of a product
          • The brand distinguishes products or businesses
            • The customer recognises a product with a brand
              • The customer relates the qualities of the brand to the product
                • The brand can help persuade the purchase of the product
          • Businesses use branded products to gain loyalty
            • By creating a status related with the brand
          • A branded product is a guarantee from the business that the product in question is a particular quality
      • A successful product
        • Satisfy needs/wants
          • The product is useful to the consumer and they are willing to buy it
        • Design
          • Quality
          • Consistency
          • Performance
          • Brand
        • Competitive advantage
          • Differentiation from the rest of the market
        • Cost
          • Make a profit
          • Opportunity cost
            • The customer is sacrificing buying something else
      • Developing a product
        • 1. Generate ideas
          • The idea of the product
          • Input is obtained from a variety of sources
            • Employees
            • The market
        • 2. Research/filter the ideas
          • Research is done to
            • Check the capital required
            • Does the product align with the brand of the business
            • Skills required
            • Raw materials needed
        • 3. Perform viability and feasibility studies
          • Feasible
            • Is the product practice to implement
          • Viable
            • Can the product generate profit
        • 4. Build a prototype
          • This is to check if there are any problems in the manufacturing process
        • 5. Test the product
          • Deploy the product into a small group of the market segment
        • 6. Launch
          • Sell on a bigger scale
      • The product life cycle
        • 1. Development
        • 2. Introduction
          • Introduced into the market
          • Lots of sales
          • High demand
          • Little profit
            • Paying off costs
        • 3. Growth
          • Promotional strategies implemented
          • Starts making profit
          • Engage with customers for loyalty
        • 4. Maturity
          • Product saturation
          • Business relies on customer loyalty
        • 5. Decline
          • Trends and tech change
          • Introduction of new products
          • Businesses will put products on sale to get rid of remaining stock
        • 6. Extension
          • New variation
            • Colour
            • Size
            • Flavour
          • New markets
            • Try to get a new demand
          • Development
            • Develop the existing product further by adding something new
              • Example: “S” models of the iPhone
          • Distribution channels
            • Improved or expanded
              • To make the product more accessible
          • Promotion
            • Promotional strategies implemented
          • Cost
            • Different pricing strategies
      • Packaging
        • Is important because
          • Protects the product
          • Makes the product easier to handle 
          • Can assist in the transportation of the product
          • Can be used as part of a promotional strategy
          • Relates the product with the business’s brand
          • Can contain important labels
          • Can assist with product differentiation
    • Promotion
      • General
        • Giving customers the necessary information about the product
          • The message focuses on the advantages of the product
          • The aim is to create a need for a product 
            • Consumers must think that they cannot do without the product
        • Inform the customer about the product offering
        • Introduce new products to the consumer
        • Compete for competitive advantage
        • Create or improve brand image
      • Promotional Mix (ASPP)
        • Advertising
          •  
        • Sales promotion
        • Personal selling
        • Publicity
    • Place
      • General
        • It is important to get the product to the customer
        • The more intermediaries, the higher the cost
      • Factors affecting place/distribution
        • Type of product
          • Perishables need to reach customers quickly
        • Location of customers
          • Size of the area changes the distribution channel
        • Purchase timing
          • When do customers buy the product
        • Competitors
          • How do competitors get the product out
    • Price
      • Factors determining price
        • Business needs to make a profit
        • How much the customer is willing to pay
        • How does the price relate to the quality of the product
        • Competitor’s prices
        • The brand of the business
      • Pricing strategies
        • Price skimming
          • When the product is first introduced into the market a high price is set
            • Because of high demand
            • A business with a good brand image will do this
              • For example: Apple
        • Cost-plus pricing
          • There is a markup percentage on products
        • Psychological pricing
          • For impulse buys
            • R9,99 instead of R10
          • Associate a high quality with the product
        • Penetration pricing
          • When a new business enters the market without an established brand image
            • A low price is set in order to differentiate the product
        • Competitive pricing
          • The price is set relative to competitors
        • Promotional pricing
          • A low price is set on certain items in order to promote the product
        • Loss-leader pricing
          • Items are heavily discounted to attract people into the store
            • The discounted items are placed in corners of the store in order to get other items high foot traffic
            • The increase in sales of other products makes up for the discount

 

  • Marketing
    • Market segmentation
      • The idea is to target a market that will return the investment of the business sufficiently
      • Examples of market segments
        • Income groups
        • Age
        • Location
        • Gender
        • Lifestyle
        • Culture
    • Definition
      • Marketing can be described as all activities relating to the business and the customer’s decision to buy or not to buy the product or service, based on different experiences relating to the business
    • Context
      • The market
        • A market is a place where goods and services are sold
        • A market can exist
          • Online
          • In a store
      • Product-orientated
        • Focuses on the ____ to produce the product
          • Skills
          • Knowledge
          • Systems
        • Research is focused on the product
      • Market-orientated
        • Focuses on what the customer needs/wants
        • Heavy emphasis on market research
      • Successful business
        • Combines both approaches
    • The marketing process
      • 1. Market research and development
        • Determining behavioral patterns of the consumer
          • The product they want
            • Including packaging
          • The price they expect
          • Where they expect it
          • How they expect to know about it
            • Channels of communication
      • 2. Promotion
        • Informing the consumer about the product
      • 3. Logistics and distribution
        • The movement of the product to get it to the target market on time
      • 4. Sales
        • The transfer of ownership from business to consumer
    • The aims of the marketing function
      • Create and maintain a competitive advantage
      • Develop new products or services or improve current offerings
      • Identify new markets for expansion
        • Local and global

Comment

Comment

Professionalism and Ethics

Mindmap - Click button to download

Actual Text

  • Professionalism and Ethics
    • Ethical Theories
      • Principle Based Theory
        • This person values their principles over everything
      • Consequence-based theory
        • If the consequences are good, then the action is good
      • Utilitarian based theory
        • If the outcome favours the majority of the group, the action is favourable
      • Narrative theories 
        • Based on stories
          • Such as Robin Hood
      • Virtue based theories
        • If the person is good and they are caught doing a bad thing, it is by accident
        • If the person has a bad reputation and is caught doing a bad thing, it is seen as a purposeful action
      • Deontology
        • The person upholds their obligations to society
    • Professional Behaviour
      • A professional person is always ethical
      • An ethical person is not always professional
      • Some professional behavioural characteristics
        • Punctuality
        • Appropriate language
        • The adequate skills for the job
        • The willingness to pass on knowledge
        • No gossip
        • Accountability 
        • Good judgement
    • Difference between a code of conduct and a code of ethics
      • Code of Conduct
        • The way in which employees of a business should ACT
      • Code of Ethics
        • The way in which employees of a business should make their DECISIONS
    • Examples of unethical behaviour
      • Bribery
      • Corruption
      • Fraud
      • Confidentiality of businesses property
      • Whistle-blowing
      • How to deal with conflicts of interest
      • Insider trading
      • Respect for IP
      • Use of company resources and the issue of privacy
    • How to ensure staff adhere to the code of ethics/conduct
      • Staff involvement
      • Consequences
      • Document is proofread
      • The document is written in an easy to understand language
      • Managers need to lead by example
      • Conduct regular training sessions
    • Implications of unethical business practice
      • Creates a bad atmosphere in the business
        • If a person is seen doing unethical things, others might be tempted to do the same
      • Can lead to severe ____ for the business
        • Fines
        • Law-suits
        • Loss in the strength of brand image
        • Loss in the strength of their listing on the JSE
      • Embarrassment for the person and the business
      • More red tape
    • The Importance of Corporate Governance
      • A good image for the business
      • Improved stakeholder relations
        • A healthier workforce with easier hiring because people want to work at an ethical business
        • Investor confidence which makes it easier to raise capital
        • An increased market share because customers want to buy from ethically sound businesses
      • Refers to the mechanisms, processes and relations that influence how corporations are controlled and directed

Comment

Comment

Corporate Social Responsibility

Mindmap - Click button to download

Actual Text

  • Corporate Social Responsibility
    • The need for CSR in South Africa
      • Unemployment
      • Poverty
      • Lack of basic needs
      • Education
      • HIV and AIDS
      • Lack of housing
      • Crime
      • Heathcare
      • Environmental concerns
      • Inequality
    • Levels of responsibility in a a business
      • Discretionary
        • The business can implement CSR at their own will
      • Ethical
        • The business needs to be ethical in the decisions it, as a whole, makes.
      • Legal
        • The business needs to abide by the law
      • Economic
        • The business needs to make a profit
    • Pros and Cons of CSR
      • Arguments for CSR
        • Problems in communities - they will leave
          • A business needs to act on problems in the communities they are based in.
            • If not, a community might have a crime problem which will lead to people avoiding the area and less money spent on the business
        • Support from communities
          • A business will receive greater support from the communities they help
        • Future generations - resources
          • Businesses that do CSR ensure that future generations will have the resources to prosper as well
        • JSE
          • It allows for businesses to be listed on the JSE
        • King Code
          • It avoids the policing of the King Code
        • Creativity -> New sources of income
          • Business that have the creativity for CSR projects often have the ability to source different avenues of income
        • Community has more money
          • A business that helps a community will give it a higher level of disposable income
            • This is more potential money spent on the business
        • Seen as ethical
          • A business that does CSR is seen to be ethical to its stakeholders 
        • Help workforce
          • A business that already has programs implemented can expand the programs to help within their workforce
      • Arguments against CSR
        • Greenwashing
          • CSR often leads to the concealing of environmental practices to stakeholders. 
            • This is called greenwashing
        • Less money in the bag
          • Shareholders see CSR as an invalid expense and less money in their pockets
        • Wastage of resources for hit and run projects
          • CSR can be seen to be unsustainable and a business is wasting resources on projects that are just “hit-and-run”
        • Can’t measure whether it works
          • It is difficult to measure whether CSR is actually benefitting the business
        • Lift responsibility from the Government
          • CSR is often said to lift responsibility from governments
        • Adds pressure from communities
          • CSR adds pressure from communities to business for CSR projects to be implemented
        • Detraction
          • CSR detracts from core business activities
    • Definition
      • CSR is about the relationship between the corporate and society and the degree to which the business impacts society
        • The idea is that the business should not just focus on its own profits, but that is has a responsibility towards the people and the environment as well
    • Sustainability
      • A business needs to:
        • Influence suppliers
          • It makes no help for a part of the business to be sustainable whilst the rest is unsustainable
        • Make society sustainable
          • A business needs to give back to the community
        • Make its own operations socially sustainable
          • BEE
          • Empowerment of workers
          • HIV and AIDS
          • Occupational health and safety
          • Trade union involvement
        • Make its own operations environmentally sustainable
          • A business needs to take the concern of the environment into consideration
    • Stakeholders
      • Definition of a stakeholder
        • Someone who has an interest in the business
      • Priority
        • HIGH:
          • If the stakeholder has a high interest and the business has a high influence
            • Employees
            • Shareholders
            • Clients
            • Suppliers
        • LOW:
          • Low influence from the business and low interest from the stakeholder
            • Trade Unions
            • Media
            • Government
    • Designing a CSR project
      • Management must communicate the need for CSR across the business
        • Management needs to create a CSR policy 
          • Management needs to communicate the CSR policy throughout the business to ensure buy-in
            • Management needs to link CSR to business success factors
              • Employees should think and brainstorm ideas for CSR initiatives
                • Inventory and resource list drawn up
                  • Implementation of the program
                    • Monitor the projects
                      • Make changes where necessary
    • 7 Principles
      • Idea of corporate citizenship
        • What is a good corporate citizen in the business’s eyes
      • Strategic intent
        • What does the business want to achieve
      • Leadership
        • Offensive CSR
        • Defensive CSR
        • How does the business implement the strategy into everyday business
      • Structure
        • Resources
      • Management
        • Management needs to ensure the resources are there
      • Stakeholder relationships
        • Maintain internal and external relationships
      • Transparency
        • Everything needs to be communicated to stakeholders, even if it is bad news

Comment

Comment

Management and Entrepreneurship

Mindmap - click button to download

Actual text

  • Management and Entrepreneurship
    • Levels of Management
      • Top
        • Strategic planning
          • Planning for the future
          • Overall vision and mission strategy is going to be created
        • These people are general management
          • They oversee all the other 7 business functions
      • Middle
        • Tactical planning
          • Executing the strategy
            • assigning duties to the different areas of the business
          • The HODs tactically plan HOW they are going to achieve these objectives
            • They create objects
      • Lower
        • Operational planning
          • How to hit the target
    • Management tasks
      • Planning
        • Funnel approach
        • Steps
          • Establishing objectives
            • Deciding on the planning period
              • Considering alternatives
                • Implementation
                  • Control process
      • Organising
        • The organisation of a businesses resources to achieve set goals
        • Steps
          • Considering objectives
            • Identifying and grouping activities
              • Assigning of duties
                • Delegation of duties
      • Leading
        • Principles
          • HEUD F
            • Harmony of objectives
              • Harmony of individual and business activities
            • Effective communication
              • Employees must know plans, policies and procedures as well as their respective responsibilities
            • Unity in direction
              • Employees must know what to do
                • They can’t do more than one thing at the same time 
            • Direct supervision
              • Personal touch from the manager
            • Follow up
              • The manager must be aware of challenges the employees are facing
        • Leadership styles
          • Autocratic
            • Power
          • Democratic
            • Majority vote
          • Laissez-faire
            • Lenient
          • Charismatic
      • Controlling
        • Steps
          • Establishing standards
            • Measure actual performance
              • Corrective action
        • Components ofgood control system
          • SFEAM
            • Suitable
            • Flexible
            • Aimed at the future
            • Economical
            • Motivates staff
      • Communication
        • Between departments
      • Co-ordination
        • Liaison between departments
        • Clear objectives
        • Induction
        • Chain of command
        • Policies
      • Delegation
        • Who does what
      • Motivation
        • Ability + Willingness = PERFORMANCE
      • Discipline
        • Corrective action
      • Decision making
        • Where does the business go and what do they do when something happens
    • Manager vs Entrepreneur
      •  
    • Characteristics of an entrepreneur
      • Creative
      • Risk taker
      • Innovative
      • Good with people
      • Self-belief
      • Persistence
      • Initiative
      • Self-confidence
      • Planner
      • Concern for quality
    • Activities performed by an entrepreneur
      • Generation of ideas
        • Market research
          • Generation of funds
            • Recruitment
              • Procurement
                • Project implementation

Comment

Comment

Environments

Mindmap - Click the button to download

Actual Text

  • Environments
    • Macro
      • PESTLE
        • Political
          • The current and future ruling parties of the country
          • Military conflicts
          • Negotiations with other countries and unions
            • EG. Brexit
        • Economic
          • Inflation rate
          • Exchange rate
          • Tax
        • Social
          • Unemployment rate
          • HIV and AIDS
          • Strikes
        • Technological
          • Technologies affecting the resale and production of products and services
        • Legislative
          • Laws affecting the production of products
          • Laws affecting the quality of products that needs to be produced
        • Environmental
          • How the business affects the environment 
          • Factors that can affect the business
            • EG. The drought in South Africa
    • Market
      • Porter’s 5 Model
        • Threat of substitute product
        • Level of competitive rivalry in the market
        • Power of suppliers
        • Power of buyers
        • Threat of new entrants in the market
      • SWOT Analysis
        • Strengths
        • Weaknesses
        • Opportunities 
        • Threats
    • Micro
      • The 8 Business Functions
        • Production
        • Personnel
        • Public Relations
        • Purchasing
        • Administration
        • Marketing
        • Finance 
        • General management
    • Crisis vs trend
      • Crisis
        • An event that happens that is unforeseen and unplanned for
          • They might have contingency plans but they don’t know that it is going to happen
      • Trend
        • Events that happen over a long period of time 
          • The business has a contingency plan for this and is prepared
    • What is an environmental scan
      • Environmental scanning is the process of obtaining information about the future and current events that could have an impact on the business
    • Where does it fit in
      • Vision/mission of the business
        • Formulation of the strategy
          • Implementation of the strategy
            • Evaluation and control
      • Continuous scanning throughout

Comment

Comment

Business Functions

 General Management

 

  • Manage all the departments
  • Perform management tasks
  • POLC
  • Formulate Vision, mission, objectives and strategies
  • Different leadership styles
  • Autocratic
  • Democratic

 

Purchasing

 

  • Buys goods and services for all departments
  • Source suitable suppliers
  • Ensure best ROI by keeping costs low
  • Return on Investment
  • Economies of scale
  • Check that goods ordered are correct quality and quantity on delivery
  • Maintain stock levels

 

 

Production

 

  • Combines factors of production to provide a product to the consumer
  • Keep manufacturing costs low and maintain quality
  • Combine with marketing department to meet consumer demands through innovation

 

Production (Automation)

 

  • Automation: activities performed by hands are now performed by machines
  • Advantages
  • Lower labor costs and machines continue to work without breaks or holiday
  • Faster production times
  • Disadvantages
  • Large capital investment
  • Job losses
  • Possible monotonous job causing dissatisfaction
  • Additional costs in retraining

 

Production (Quality Control)

 

  • Influenced by raw materials, layout machinery, working conditions
  • Sampling
  • A few products of a batch are tested
  • Inspections
  • Each product is tested
  • Advantages of quality control
  • Eliminate problems in production and therefore reduces costs
  • Encourage workers to deliver goods at a high standard
  • Basis for remuneration decisions
  • Create confidence in the product and result in repeat orders

Comment

Member Login
Welcome, (First Name)!

Forgot? Show
Log In
Enter Member Area
My Profile Not a member? Sign up. Log Out