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 Performance
A SWOT analysis provides insight into Special Group’s strategic position by examining
internal capabilities and external conditions, specifically focusing on non-financial
performance factors.
Strengths
• Robust governance and ethical alignment – The company has established a
Social and Ethics Committee, aligned with King IV and B-BBEE codes. This
reflects strong governance, transparency, and ethical responsibility, which are
essential for sustaining legitimacy in diverse markets (IoDSA, 2016).
• Employee development and inclusivity – Nearly half of the workforce
undergoes annual training, and learnerships for people with disabilities highlight a
strong social orientation. This supports human capital development, enhances
productivity, and contributes to long-term organisational resilience.
Weaknesses
• Occupational health and safety concerns – Despite training efforts, the
occurrence of one fatality and more than 500 workplace accidents exposes
significant operational weaknesses. Poor safety performance not only risks human
lives but also damages reputation and may lead to legal and financial liabilities.
• Uneven ESG implementation – While the Australian branch has achieved
carbon neutrality, other regions lag behind. This inconsistency undermines the
credibility of the group’s environmental commitments and exposes it to
accusations of “greenwashing” from sceptical stakeholders.
Opportunities
• Expansion of carbon-neutral practices across regions – Scaling up
initiatives like solar-powered trailers and carbon neutrality beyond Australia could
1
, help Special Group meet tightening global environmental regulations, build
competitive advantage, and strengthen stakeholder confidence.
• Technological innovation for efficiency and transparency – Investment in
blockchain-enabled supply chain tracking and solar-powered solutions positions
the group to improve operational efficiency, enhance customer trust, and
strengthen resilience in a competitive industry.
Threats
• Rising regulatory pressures – Increasing international sustainability and
environmental standards may impose additional costs and require rapid
adaptation. Failure to comply could result in penalties, loss of contracts, or
reputational harm.
• Reputational risk from safety and transparency issues – High accident
rates and limited disclosure of Corporate Social Investment (CSI) activities fuel
stakeholder scepticism. This may weaken trust among investors, regulators, and
customers, thereby reducing long-term competitiveness.
A2. Legal Form of Special Group
Legal Form: Special Group is a public company limited by shares because it is listed
on the Johannesburg Stock Exchange (JSE).
Advantage: Being publicly listed allows Special Group to issue shares to a wide base
of investors. This facilitates access to substantial funding for expansion, innovation, and
acquisitions, reducing dependence on debt financing (Ross et al., 2022).
Disadvantage: Public companies are subject to rigorous disclosure requirements,
corporate governance regulations, and external audits. These obligations increase
administrative costs and reduce management flexibility. Furthermore, shareholder
pressure may sometimes prioritize short-term returns over long-term sustainability
goals.
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 Performance
A SWOT analysis provides insight into Special Group’s strategic position by examining
internal capabilities and external conditions, specifically focusing on non-financial
performance factors.
Strengths
• Robust governance and ethical alignment – The company has established a
Social and Ethics Committee, aligned with King IV and B-BBEE codes. This
reflects strong governance, transparency, and ethical responsibility, which are
essential for sustaining legitimacy in diverse markets (IoDSA, 2016).
• Employee development and inclusivity – Nearly half of the workforce
undergoes annual training, and learnerships for people with disabilities highlight a
strong social orientation. This supports human capital development, enhances
productivity, and contributes to long-term organisational resilience.
Weaknesses
• Occupational health and safety concerns – Despite training efforts, the
occurrence of one fatality and more than 500 workplace accidents exposes
significant operational weaknesses. Poor safety performance not only risks human
lives but also damages reputation and may lead to legal and financial liabilities.
• Uneven ESG implementation – While the Australian branch has achieved
carbon neutrality, other regions lag behind. This inconsistency undermines the
credibility of the group’s environmental commitments and exposes it to
accusations of “greenwashing” from sceptical stakeholders.
Opportunities
• Expansion of carbon-neutral practices across regions – Scaling up
initiatives like solar-powered trailers and carbon neutrality beyond Australia could
1
, help Special Group meet tightening global environmental regulations, build
competitive advantage, and strengthen stakeholder confidence.
• Technological innovation for efficiency and transparency – Investment in
blockchain-enabled supply chain tracking and solar-powered solutions positions
the group to improve operational efficiency, enhance customer trust, and
strengthen resilience in a competitive industry.
Threats
• Rising regulatory pressures – Increasing international sustainability and
environmental standards may impose additional costs and require rapid
adaptation. Failure to comply could result in penalties, loss of contracts, or
reputational harm.
• Reputational risk from safety and transparency issues – High accident
rates and limited disclosure of Corporate Social Investment (CSI) activities fuel
stakeholder scepticism. This may weaken trust among investors, regulators, and
customers, thereby reducing long-term competitiveness.
A2. Legal Form of Special Group
Legal Form: Special Group is a public company limited by shares because it is listed
on the Johannesburg Stock Exchange (JSE).
Advantage: Being publicly listed allows Special Group to issue shares to a wide base
of investors. This facilitates access to substantial funding for expansion, innovation, and
acquisitions, reducing dependence on debt financing (Ross et al., 2022).
Disadvantage: Public companies are subject to rigorous disclosure requirements,
corporate governance regulations, and external audits. These obligations increase
administrative costs and reduce management flexibility. Furthermore, shareholder
pressure may sometimes prioritize short-term returns over long-term sustainability
goals.
2
