Abstract
Abstract:
During 1989, the need for doing a study on environmental change and strategy
adjustment within a few businesses in the Vaal Triangle area, was identified. This study
revealed the fact that the economic environment exercised the greatest influence on
businesses.
The past few years have been characterized by radical political-, and consequently,
economical changes in the country. As a result of this, it was decided to undertake a
similar study. The latest study revealed information regarding the macro environment.
The variables which will, in future, exercise the greatest influence on the manufacturing
industry in the Vaal Triangle, were also identified.
The first section of this paper gives an in-depth theoretical study of the influence of
macro environmental factors on a business. This study was done on the basis of
Pearce and Robinson's model of macro environmental factors. With the aid of this
model, it was attempted to determine which opportunities, threats, strong points and
weak points will influence the business environment the most.
The next step was to entail a SWOT analysis which includes choice of stategy and
strategy evaluation. The institutionalisation process, in which attention was paid to
factors such as structure, leadership and culture, follows. It is concluded by the
strategy being made operational by means of functional strategies.
The objective of the last part has been to determine how businesses experience the
institutionalisation process in practice. An environmental reconnoitering- and strategy
adjustment questionnaire, which evaluated 42 dimensions, were used. The
questionnaire was completed by the general managers of selected businesses. The
results have been assimilated and processed in tabels and on graphs....
M.Com. (Business Management)