Pestle factors

Question 1

Challenges posed by Political and recommendations

Answer 1

Challenges:
-Some government policies may affect businesses = Apply recent government policies

-The National Competition Policy of South Africa may influence the operations of a business= Adhere to the National Competition Policy

Question 2

Challenges posed by Economic and recommendations

Answer 2

-Loans may be expensive because of high interest rates = Borrow money from financial institutions when interest rates are favorable

-Decrease in foreign direct investment by important foreign investors =Provide shares at competitive prices to attract more foreign direct investment

Question 3

Challenges posed by Social and recommendations

Answer 3

-Businesses may not be conversant with the local language of their customers = Learn local languages or hire employees who are well conversant with the local language of customers

-High crime rates may affect the trading hours of businesses resulting in decreased profit = Work together with community police forums and improve security in the business

Question 4

Challenges posed by Technological and recommendations

Answer 4

-Employees may no be skilled to operate new technology equipment = Train existing employees to use new equipment technology

-Businesses may not be able to afford new technology= Compare prices for new technology ar reasonable prices

Question 5

Challenges posed by Legal and recommendations

Answer 5

-Legal requirements for operating certain types of businesses are time consuming = Comply with legal requirements for operating businesses

-High legal costs involved in obtaining a license may prevent some establishments = Budget for high legal establishment costs

Question 6

Challenges posed by Environmental and recommendations

Answer 6

-Measures to dispose of business waste may be harmful= Implement cost-effective measure to dispose of medical waste

-Packaging of some products may not be environmentally friendly = Use packaging that is reusable