BSM2601
ASSIGNMENT 2 SEMESTER 1 2026
UNIQUE NO.
DUE DATE: 14 APRIL 2026
, Business Management IIA - BSM2601
Question 1: PESTEL Analysis of PriceRite
Political Factors
PriceRite operates under South African government regulations, including labour laws,
minimum wage policies, and trade regulations. Any changes in these laws can increase
operational costs and affect profitability.
Economic Factors
High unemployment and slow economic growth reduce consumers’ purchasing power.
Inflation and fluctuating exchange rates increase the cost of imported goods, forcing
PriceRite to maintain low prices to stay competitive.
Social Factors
Growing urbanisation increases demand for affordable food. Social inequality influences
PriceRite’s focus on low- to middle-income customers. Changing consumer
preferences, such as demand for healthier food, also affect product offerings.
Technological Factors
PriceRite invests in digital transformation, including automated supply chains, mobile
apps, and digital payments. However, the digital divide in rural areas limits full adoption
of e-commerce.
Environmental Factors
Climate change and water scarcity pose risks to operations. PriceRite responds by
adopting green practices such as reducing plastic packaging and improving energy
efficiency.
Legal Factors
The company must comply with consumer protection laws, food safety regulations, and
labour legislation. Non-compliance could result in penalties and reputational damage.
ASSIGNMENT 2 SEMESTER 1 2026
UNIQUE NO.
DUE DATE: 14 APRIL 2026
, Business Management IIA - BSM2601
Question 1: PESTEL Analysis of PriceRite
Political Factors
PriceRite operates under South African government regulations, including labour laws,
minimum wage policies, and trade regulations. Any changes in these laws can increase
operational costs and affect profitability.
Economic Factors
High unemployment and slow economic growth reduce consumers’ purchasing power.
Inflation and fluctuating exchange rates increase the cost of imported goods, forcing
PriceRite to maintain low prices to stay competitive.
Social Factors
Growing urbanisation increases demand for affordable food. Social inequality influences
PriceRite’s focus on low- to middle-income customers. Changing consumer
preferences, such as demand for healthier food, also affect product offerings.
Technological Factors
PriceRite invests in digital transformation, including automated supply chains, mobile
apps, and digital payments. However, the digital divide in rural areas limits full adoption
of e-commerce.
Environmental Factors
Climate change and water scarcity pose risks to operations. PriceRite responds by
adopting green practices such as reducing plastic packaging and improving energy
efficiency.
Legal Factors
The company must comply with consumer protection laws, food safety regulations, and
labour legislation. Non-compliance could result in penalties and reputational damage.
