You have decided to start your own business. You have chosen to open a retail business that sells clothes and groceries at affordable prices. You have big plans of nation-wide expansion, since investment is not a problem for you. You wish to compete with the popular brands in the country. Most of your products are locally sourced from the surrounding community or other South African manufacturers or producers. As yet, you do not have plans to grow your business outside South African borders.

QUESTION 1 [25 MARKS]

As the leader of your business, conduct an environmental analysis, including the micro, macro and market environment. You are expected to do research with reference to the retail business environment in South Africa in 2024.

QUESTION 2 [25 MARKS]

There are various basic forms of departmentalisation available to you as the leader of your retail company. Suggest the form of departmentalisation most suitable for your retail business. You are expected to justify your selection with suitable inputs from the scenario and conceptual discussion.

QUESTION 3 [25 MARKS]

There are different theories of leadership. Identify and suggest the leadership theory which is best suited to the retail business environment of South Africa and the internal environment of your retail company.

QUESTION 4 [25 MARKS]

How might the cultivation of emotional and spiritual intelligence skills positively influence your approach to building relationships with local suppliers and producers in South Africa, and fostering a sense of community within your retail business, aimed at nationwide expansion and competition with established brands?

Answers to Above Questions on Strategic Business Management

Answer 1: An environmental analysis is important from the point of view of evaluating the ways in which the external environment affects the business activities. A business is faced with micro, macro and market environments. Environmental analysis can be carried out with the application of strategic tools such as PESTEL, Porter five forces, SWOT etc. In respect to my selected business at Shoprite Holdings, an analysis of its micro, macro and market environment is performed as follows:

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