(COMPLETE ANSWERS)
Semester 2 2025 - DUE 30
September 2025
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, Question 1 (6 marks)
1.1 Two strengths of Pick n Pay (2 marks)
• The success of the Boxer, Pick n Pay Clothing, Online, and value-added services
businesses.
• Pick n Pay has a strong brand loyalty.
1.2 Two weaknesses of Pick n Pay (2 marks)
• The core Pick n Pay business has declined.
• The profit recovery of the past had lulled the company into a false sense of security.
1.3 Two threats for Pick n Pay (2 marks)
• The impact of several "black swan events".
• Inappropriate strategic initiatives.
Question 2 (8 marks)
• Worsening socio-economic conditions increasing poverty and hunger (quote from
IAR) – Macro environment – Social force
• Climate change impacting food security and resource availability (quote from
IAR) – Macro environment – Natural force
• The Group’s ability to maintain and protect its IT infrastructure, online
platforms and databases (quote from IAR) – Micro environment – Technological
force (sub-environment)
• The risk to system stability and security due to increased global cyber and
ransomware attacks (quote from IAR) – General environment – Technological force
(sub-environment)
Question 3 (3 marks)
Boxer is following a cost leadership strategy. This is a business-level strategy where a
company aims to achieve the lowest production and distribution costs to offer the lowest
prices in the market. The goal is to attract a broad customer base by undercutting competitors.
Quotation from the IAR: “South Africa’s Pre-eminent Discounter”
Question 4 (4 marks)
The organizational culture evident in this section is a people-oriented culture. This type of
culture prioritizes the well-being and development of employees, focusing on creating a
positive and supportive work environment.