MAC2602
Assignment 2
Semester 2 2025
Due 8 September 2025
,Part A: Strategy & Strategic Planning and Financial
Management Concepts
A1. SWOT Analysis of Special Group’s Non-Financial Perfor-
mance
A SWOT analysis evaluates internal and external factors influencing an organisation’s
non-financial performance. For Special Group (SG), ESG-related activities form the main
focus.
Strengths
1. Strong Governance Framework – SG’s alignment with King IV and B-BBEE
strengthens its ethical standing and governance reputation. This satisfies regula-
tory requirements and positions SG as a responsible corporate citizen, attracting
institutional investors who prioritise ESG compliance.
2. Commitment to Innovation and Employee Development – Nearly 50%
of the workforce undergoes training annually, including learnerships for employ-
ees living with disabilities. This enhances human capital and improves organ-
isational resilience. Innovative technologies, such as solar-powered trailers and
blockchain-enabled supply chain tracking, further differentiate SG competitively
in a sustainability-driven marketplace.
Weaknesses
1. Inconsistent ESG Implementation Across Regions – Carbon neutrality in
Australia is not replicated elsewhere. This inconsistency undermines SG’s credibil-
ity and suggests a lack of global strategic alignment.
2. Safety Concerns – One fatality and over 500 workplace accidents highlight in-
adequate safety controls. Poor occupational health and safety practices reduce
morale, increase insurance costs, and expose SG to legal liabilities, undermining its
governance reputation.
Opportunities
1. Expansion of Carbon-Neutral Practices – Replicating Australia’s carbon-
neutral approach in other regions can help SG build a unified ESG brand identity,
reduce its long-term environmental footprint, and pre-empt stricter international
regulations.
1
, 2. Enhanced CSI Reporting and Community Engagement – Improved trans-
parency in Corporate Social Investment (CSI) and closer community involvement
could strengthen stakeholder trust. Clearer disclosure would enhance legitimacy
and social capital.
Threats
1. Regulatory and Reputational Risks – Increasing ESG regulations may impose
costs on SG. Failure to comply could result in fines, reputational damage, or investor
withdrawal.
2. Stakeholder Skepticism – Inconsistent reporting and fragmented implementation
could fuel doubt about SG’s ESG commitment, increasing its cost of capital and
weakening customer trust.
Critical Reflection: The SWOT shows that while SG’s strengths (governance and
innovation) are robust, they risk being undermined by weaknesses (safety failures and
inconsistency). The firm’s opportunities are significant, but threats such as regulatory
pressure and reputational risk may materialise quickly if weaknesses are not addressed.
A2. Legal Form of Special Group
Legal Form
SG is a public company listed on the Johannesburg Stock Exchange (JSE).
Advantage
Access to Capital and Market Visibility – As a listed entity, SG can issue shares
to the public, thereby accessing large pools of equity capital. This is critical for funding
long-term strategic investments, such as fleet expansion and technology adoption. Listing
also enhances market credibility and can reduce the cost of borrowing [?].
Disadvantage
High Compliance Costs and Public Scrutiny – Listed companies must adhere to
extensive compliance obligations, including Companies Act requirements, JSE Listings
Requirements, and King IV governance disclosures. These obligations increase adminis-
trative costs and expose SG to continuous public and media scrutiny. Any ESG incon-
sistency or safety issue becomes highly visible, amplifying reputational risks.
Critical Reflection: SG’s legal form provides financial flexibility but simultaneously
exposes it to heightened accountability pressures. Governance weaknesses, such as safety
lapses, carry amplified consequences.
2
Assignment 2
Semester 2 2025
Due 8 September 2025
,Part A: Strategy & Strategic Planning and Financial
Management Concepts
A1. SWOT Analysis of Special Group’s Non-Financial Perfor-
mance
A SWOT analysis evaluates internal and external factors influencing an organisation’s
non-financial performance. For Special Group (SG), ESG-related activities form the main
focus.
Strengths
1. Strong Governance Framework – SG’s alignment with King IV and B-BBEE
strengthens its ethical standing and governance reputation. This satisfies regula-
tory requirements and positions SG as a responsible corporate citizen, attracting
institutional investors who prioritise ESG compliance.
2. Commitment to Innovation and Employee Development – Nearly 50%
of the workforce undergoes training annually, including learnerships for employ-
ees living with disabilities. This enhances human capital and improves organ-
isational resilience. Innovative technologies, such as solar-powered trailers and
blockchain-enabled supply chain tracking, further differentiate SG competitively
in a sustainability-driven marketplace.
Weaknesses
1. Inconsistent ESG Implementation Across Regions – Carbon neutrality in
Australia is not replicated elsewhere. This inconsistency undermines SG’s credibil-
ity and suggests a lack of global strategic alignment.
2. Safety Concerns – One fatality and over 500 workplace accidents highlight in-
adequate safety controls. Poor occupational health and safety practices reduce
morale, increase insurance costs, and expose SG to legal liabilities, undermining its
governance reputation.
Opportunities
1. Expansion of Carbon-Neutral Practices – Replicating Australia’s carbon-
neutral approach in other regions can help SG build a unified ESG brand identity,
reduce its long-term environmental footprint, and pre-empt stricter international
regulations.
1
, 2. Enhanced CSI Reporting and Community Engagement – Improved trans-
parency in Corporate Social Investment (CSI) and closer community involvement
could strengthen stakeholder trust. Clearer disclosure would enhance legitimacy
and social capital.
Threats
1. Regulatory and Reputational Risks – Increasing ESG regulations may impose
costs on SG. Failure to comply could result in fines, reputational damage, or investor
withdrawal.
2. Stakeholder Skepticism – Inconsistent reporting and fragmented implementation
could fuel doubt about SG’s ESG commitment, increasing its cost of capital and
weakening customer trust.
Critical Reflection: The SWOT shows that while SG’s strengths (governance and
innovation) are robust, they risk being undermined by weaknesses (safety failures and
inconsistency). The firm’s opportunities are significant, but threats such as regulatory
pressure and reputational risk may materialise quickly if weaknesses are not addressed.
A2. Legal Form of Special Group
Legal Form
SG is a public company listed on the Johannesburg Stock Exchange (JSE).
Advantage
Access to Capital and Market Visibility – As a listed entity, SG can issue shares
to the public, thereby accessing large pools of equity capital. This is critical for funding
long-term strategic investments, such as fleet expansion and technology adoption. Listing
also enhances market credibility and can reduce the cost of borrowing [?].
Disadvantage
High Compliance Costs and Public Scrutiny – Listed companies must adhere to
extensive compliance obligations, including Companies Act requirements, JSE Listings
Requirements, and King IV governance disclosures. These obligations increase adminis-
trative costs and expose SG to continuous public and media scrutiny. Any ESG incon-
sistency or safety issue becomes highly visible, amplifying reputational risks.
Critical Reflection: SG’s legal form provides financial flexibility but simultaneously
exposes it to heightened accountability pressures. Governance weaknesses, such as safety
lapses, carry amplified consequences.
2
