MAC2602
ASSIGNMENT 1
DUE DATE: 8 SEPTEMBER 2026
, MAC2602 ASSIGNMENT 1 2026
DUE 8 SEPTEMBER 2026
PART A: Capital Investments & Capital Budgeting Techniques (44 marks; 53
minutes)
A1: Economic, Social, Environmental, and Governance Factors (16 marks)
Economic Factors:
Fuel price volatility - The war in the Middle East causes fuel price instability,
increasing distribution costs and affecting profitability.
Commodity price decline - Reduced maize prices affect cost of sales, potentially
improving gross profit margins.
Geopolitical uncertainty - Affects business confidence, consumer spending, and
operational planning.
Interest rate risk - The 11% long-term loan exposes PG to interest rate fluctuations.
(Study Unit 1 & 3 - Stakeholder analysis and environmental factors; Strategy concepts)
Social Factors:
Labour union concerns - Unions raised issues about hiring illegal immigrants,
creating reputational and operational risks.
Employment practices - Prioritising local hiring improves community relations but
may increase labour costs.
ASSIGNMENT 1
DUE DATE: 8 SEPTEMBER 2026
, MAC2602 ASSIGNMENT 1 2026
DUE 8 SEPTEMBER 2026
PART A: Capital Investments & Capital Budgeting Techniques (44 marks; 53
minutes)
A1: Economic, Social, Environmental, and Governance Factors (16 marks)
Economic Factors:
Fuel price volatility - The war in the Middle East causes fuel price instability,
increasing distribution costs and affecting profitability.
Commodity price decline - Reduced maize prices affect cost of sales, potentially
improving gross profit margins.
Geopolitical uncertainty - Affects business confidence, consumer spending, and
operational planning.
Interest rate risk - The 11% long-term loan exposes PG to interest rate fluctuations.
(Study Unit 1 & 3 - Stakeholder analysis and environmental factors; Strategy concepts)
Social Factors:
Labour union concerns - Unions raised issues about hiring illegal immigrants,
creating reputational and operational risks.
Employment practices - Prioritising local hiring improves community relations but
may increase labour costs.