,MNG3701 ASSIGNMENT 2
SEMESTER 1 2023
DECLARATION……………………………………………………………………………………………………………….
TABLE OF CONTENTS
INTRODUCTION .............................................................................................................. 3
Q1a. Comment on the various methods to analyse the internal environment. (4)
Q2. Explain the strategic importance of analysing the external environment and
critically discuss the various methods for external environment analysis. (10 marks) .. 5
Q3. Using the information in the case study, conduct an analysis of the RCL .............. 6
macro and market environment. (20) ............................................................................6
Q4. Identify the business level strategy of RCL and comment on its appropriateness
based on your findings in questions 1 to 3 above.
CONCLUSION
,INTRODUCTION
RCL Foods, a leading African food producer, has established a strong presence in the
food industry with a diverse product portfolio and operations across multiple African
countries. This essay aims to provide a comprehensive analysis of RCL Foods' internal
and external environment, examining the company's strengths, weaknesses,
opportunities, and challenges. Furthermore, the essay will assess the company's
business-level strategy, specifically focusing on differentiation, and evaluate its
appropriateness based on the findings from the internal and external analyses. By
understanding RCL Foods' strategic positioning in the complex and dynamic African
food industry, this essay will offer insights into how the company can maintain its
competitive advantage and achieve sustainable growth in the market.
Q1a. Comment on the various methods to analyse the internal environment. (4)
Various methods to analyze the internal environment of a company
SWOT Analysis
This method assesses a company's internal strengths and weaknesses and external
opportunities and threats. It provides a comprehensive overview of the company's
current situation, enabling informed decision-making.
Value Chain Analysis
This approach examines the activities that a company performs to create value for its
customers. It helps identify areas where the company can improve efficiency, reduce
costs, and enhance competitive advantages.
Core Competencies Analysis
This method evaluates the unique capabilities and resources that a company
possesses, allowing it to outperform competitors. Identifying core competencies
enables a company to focus on leveraging its strengths and minimizing its weaknesses.
Resource-Based View (RBV)
This approach focuses on the company's resources and capabilities, including tangible
and intangible assets, to determine its competitive advantage. It assesses the value,
rarity, inimitability, and organization of these resources to maintain a sustainable
advantage (Venter & Botha, 2019).
Q1b. Use the information in the case study and conduct an internal environmental
analysis. (6)
Internal environmental analysis of RCL Foods using the case study
, Strengths
Diversified product portfolio, ranging from staples to top-end, added-value offerings.
Integrated business model with an in-house route-to-market supply chain.
World-class technology and systems, contributing to efficient operations.
Significant size and scale, enabling it to counter cyclicality and provide a platform for
expansion.
Experienced management team with extensive knowledge of the South African food
industry.
Expansion into Africa, aligning with its low-risk African expansion strategy.
Strategic shareholder, Remgro Limited, which is highly regarded in the industry.
Weaknesses
Challenging economic conditions due to the Covid-19 pandemic, leading to high
unemployment and increased food insecurity.
Rising food prices caused by input cost hikes and exchange rate volatility.
Growing consumer preference for healthier food options, which may not align with
RCL's current product offerings.
Potential impact of new food regulations limiting exposure to high levels of sugar and
salt.
Opportunities
Growing demand for value-focused products, with price and affordability being key
factors in consumer decision-making.
Increasing online shopping trends among higher LSM groups, providing opportunities
to expand into e-commerce.
Expansion into Africa, tapping into new markets and increasing market share.
Threats:
Environmental challenges, such as biodiversity loss, deforestation, soil degradation,
water scarcity, and greenhouse gas emissions, which could impact supply chain
sustainability.
Changing consumer behavior, with an increased focus on healthier food options.
Continued pressure from food regulations affecting product formulation and
marketing (Venter & Botha, 2019).
SEMESTER 1 2023
DECLARATION……………………………………………………………………………………………………………….
TABLE OF CONTENTS
INTRODUCTION .............................................................................................................. 3
Q1a. Comment on the various methods to analyse the internal environment. (4)
Q2. Explain the strategic importance of analysing the external environment and
critically discuss the various methods for external environment analysis. (10 marks) .. 5
Q3. Using the information in the case study, conduct an analysis of the RCL .............. 6
macro and market environment. (20) ............................................................................6
Q4. Identify the business level strategy of RCL and comment on its appropriateness
based on your findings in questions 1 to 3 above.
CONCLUSION
,INTRODUCTION
RCL Foods, a leading African food producer, has established a strong presence in the
food industry with a diverse product portfolio and operations across multiple African
countries. This essay aims to provide a comprehensive analysis of RCL Foods' internal
and external environment, examining the company's strengths, weaknesses,
opportunities, and challenges. Furthermore, the essay will assess the company's
business-level strategy, specifically focusing on differentiation, and evaluate its
appropriateness based on the findings from the internal and external analyses. By
understanding RCL Foods' strategic positioning in the complex and dynamic African
food industry, this essay will offer insights into how the company can maintain its
competitive advantage and achieve sustainable growth in the market.
Q1a. Comment on the various methods to analyse the internal environment. (4)
Various methods to analyze the internal environment of a company
SWOT Analysis
This method assesses a company's internal strengths and weaknesses and external
opportunities and threats. It provides a comprehensive overview of the company's
current situation, enabling informed decision-making.
Value Chain Analysis
This approach examines the activities that a company performs to create value for its
customers. It helps identify areas where the company can improve efficiency, reduce
costs, and enhance competitive advantages.
Core Competencies Analysis
This method evaluates the unique capabilities and resources that a company
possesses, allowing it to outperform competitors. Identifying core competencies
enables a company to focus on leveraging its strengths and minimizing its weaknesses.
Resource-Based View (RBV)
This approach focuses on the company's resources and capabilities, including tangible
and intangible assets, to determine its competitive advantage. It assesses the value,
rarity, inimitability, and organization of these resources to maintain a sustainable
advantage (Venter & Botha, 2019).
Q1b. Use the information in the case study and conduct an internal environmental
analysis. (6)
Internal environmental analysis of RCL Foods using the case study
, Strengths
Diversified product portfolio, ranging from staples to top-end, added-value offerings.
Integrated business model with an in-house route-to-market supply chain.
World-class technology and systems, contributing to efficient operations.
Significant size and scale, enabling it to counter cyclicality and provide a platform for
expansion.
Experienced management team with extensive knowledge of the South African food
industry.
Expansion into Africa, aligning with its low-risk African expansion strategy.
Strategic shareholder, Remgro Limited, which is highly regarded in the industry.
Weaknesses
Challenging economic conditions due to the Covid-19 pandemic, leading to high
unemployment and increased food insecurity.
Rising food prices caused by input cost hikes and exchange rate volatility.
Growing consumer preference for healthier food options, which may not align with
RCL's current product offerings.
Potential impact of new food regulations limiting exposure to high levels of sugar and
salt.
Opportunities
Growing demand for value-focused products, with price and affordability being key
factors in consumer decision-making.
Increasing online shopping trends among higher LSM groups, providing opportunities
to expand into e-commerce.
Expansion into Africa, tapping into new markets and increasing market share.
Threats:
Environmental challenges, such as biodiversity loss, deforestation, soil degradation,
water scarcity, and greenhouse gas emissions, which could impact supply chain
sustainability.
Changing consumer behavior, with an increased focus on healthier food options.
Continued pressure from food regulations affecting product formulation and
marketing (Venter & Botha, 2019).
