BTEC Business level 3
The External, Internal and Competitive Environment of a business
In this task I will be exploring and discussing the internal, external and competitive
environment of Shoprite Holdings. I will be comprising a report examining these
environment factors on a business and how the business responds.
Shoprite Holdings
Introduction
The Shoprite Group of Companies is Africa's largest food
retailer. It operates more than 2,829 stores in 15 countries across
Africa. It was founded in the year 1979. The company's
headquarters are in Brackenfell in the Western Cape province of
South Africa. Shoprite Holdings Limited is a public company listed on the Johannesburg
Stock Exchange, with secondary listings on both the Namibian and Zambian Stock
Exchanges. As of 2020, the Shoprite Group employed more than 141,000 people in more
than 2,829 stores across the African continent. The Shoprite Group of Companies started
from small beginnings in 1979 with the purchase of a chain of 8 Cape-based supermarkets for
R1 million. In 1983 the Group opened its first branch outside the Western Cape-in Hartswater
in the Northern Cape. The brain behind Shoprite holdings is Christo Wiese. Shoprite
Holdings comprises the following entities. The Shoprite Checkers Supermarket Group, which
consists of:
• 683 Shoprite supermarkets
• 233 checkers supermarkets
• 37 checkers hyper
• 425 Usave stores
• 442 furniture outlets (including OK furniture, OK power Express, House & Home)
• 144 Medirite pharmacies and 343 Liquor shops.
Pearson BTEC Level 3 International Diploma in Business 1
Assignment 2 Sumrit Gulati
, BTEC Business level 3
Name Stores Countries
Shoprite 683 Angola, Botswana, Democratic Republic of Congo, Ghana,
Kenya, Lesotho, Madagascar, Malawi, Mozambique, Namibia,
Nigeria, South Africa, Eswatini, Uganda, Zambia
Checkers 233 Botswana, Namibia, South Africa
Checkers hyper 37 South Africa
Usave 425 Angola, Botswana, Lesotho, Malawi, Mozambique, Namibia,
South Africa, Eswatini
OK Furniture 397 Angola, Botswana, Lesotho, Mozambique, Namibia, South
and power Africa, Zambia, Eswatini
Express
House & Home 45 Botswana, Namibia, South Africa
Liquor shop 523 Lesotho, Namibia, South Africa, Botswana, Mozambique
External Environment
The external Environment has a great impact on businesses and is comprised of multiple
factors. These factors are often used by businesses to help analyses how and why they will be
successful. This analysis is known as PESTLE which stands for:
• Political: Tax policies and trade restrictions.
• Economic: Economy, interest rates, economic growth and inflation rates.
• Social: Culture, health and demographic trends.
• Technological: Research & development, and technological advancement.
• Legal: Safety, laws, Consumer regulations.
• Environment: Recycling, policies, pollution.
Pearson BTEC Level 3 International Diploma in Business 2
Assignment 2 Sumrit Gulati
, BTEC Business level 3
Political
With Shoprite operations being within the African
continent environment, with stores all over Africa,
operating in South Africa, Ghana, Kenya, Uganda
and so on, Shoprite holdings performance is
extremely highly influenced by the political and
legislative conditions of the countries of which it
operates within.
The Nigerian government adopted a tax measure few months ago which heavily affected
Shoprite holdings. In 2019 Shoprite got hit by challenges in Africa’s frontier market. Their
new IT system caused supply constraints in South Africa.
Also, there is a lot of trade restrictions due to the government, they do not allow some stuff to
be sold in the market.
Economic
Economic factors are great concern to Shoprite Holdings, this is because they are likely
influence by them:
• Demand of product
• Cost of Employment
• Pricing of goods
• Overall profits
These economic factors are largely outside of the control of the company, and can have
adverse effects on certain parts of the company, which can be profound. Although the
continental appendix to Shoprite’s business is set to grow bigger and bigger every year and is
to contribute grater to Shoprite’s profit over the few years, the company is still highly
dependent on the African market.
Shoprite which is also known as the Africa’s largest supermarket group declared that its first
half year earnings declined in over a decade which was hit by a currency devaluation in
Angola. Economy is the most important key; higher economic growth rates are forecasted
and the gross domestic product is estimate to be higher than the peak pre-crises.
Pearson BTEC Level 3 International Diploma in Business 3
Assignment 2 Sumrit Gulati
The External, Internal and Competitive Environment of a business
In this task I will be exploring and discussing the internal, external and competitive
environment of Shoprite Holdings. I will be comprising a report examining these
environment factors on a business and how the business responds.
Shoprite Holdings
Introduction
The Shoprite Group of Companies is Africa's largest food
retailer. It operates more than 2,829 stores in 15 countries across
Africa. It was founded in the year 1979. The company's
headquarters are in Brackenfell in the Western Cape province of
South Africa. Shoprite Holdings Limited is a public company listed on the Johannesburg
Stock Exchange, with secondary listings on both the Namibian and Zambian Stock
Exchanges. As of 2020, the Shoprite Group employed more than 141,000 people in more
than 2,829 stores across the African continent. The Shoprite Group of Companies started
from small beginnings in 1979 with the purchase of a chain of 8 Cape-based supermarkets for
R1 million. In 1983 the Group opened its first branch outside the Western Cape-in Hartswater
in the Northern Cape. The brain behind Shoprite holdings is Christo Wiese. Shoprite
Holdings comprises the following entities. The Shoprite Checkers Supermarket Group, which
consists of:
• 683 Shoprite supermarkets
• 233 checkers supermarkets
• 37 checkers hyper
• 425 Usave stores
• 442 furniture outlets (including OK furniture, OK power Express, House & Home)
• 144 Medirite pharmacies and 343 Liquor shops.
Pearson BTEC Level 3 International Diploma in Business 1
Assignment 2 Sumrit Gulati
, BTEC Business level 3
Name Stores Countries
Shoprite 683 Angola, Botswana, Democratic Republic of Congo, Ghana,
Kenya, Lesotho, Madagascar, Malawi, Mozambique, Namibia,
Nigeria, South Africa, Eswatini, Uganda, Zambia
Checkers 233 Botswana, Namibia, South Africa
Checkers hyper 37 South Africa
Usave 425 Angola, Botswana, Lesotho, Malawi, Mozambique, Namibia,
South Africa, Eswatini
OK Furniture 397 Angola, Botswana, Lesotho, Mozambique, Namibia, South
and power Africa, Zambia, Eswatini
Express
House & Home 45 Botswana, Namibia, South Africa
Liquor shop 523 Lesotho, Namibia, South Africa, Botswana, Mozambique
External Environment
The external Environment has a great impact on businesses and is comprised of multiple
factors. These factors are often used by businesses to help analyses how and why they will be
successful. This analysis is known as PESTLE which stands for:
• Political: Tax policies and trade restrictions.
• Economic: Economy, interest rates, economic growth and inflation rates.
• Social: Culture, health and demographic trends.
• Technological: Research & development, and technological advancement.
• Legal: Safety, laws, Consumer regulations.
• Environment: Recycling, policies, pollution.
Pearson BTEC Level 3 International Diploma in Business 2
Assignment 2 Sumrit Gulati
, BTEC Business level 3
Political
With Shoprite operations being within the African
continent environment, with stores all over Africa,
operating in South Africa, Ghana, Kenya, Uganda
and so on, Shoprite holdings performance is
extremely highly influenced by the political and
legislative conditions of the countries of which it
operates within.
The Nigerian government adopted a tax measure few months ago which heavily affected
Shoprite holdings. In 2019 Shoprite got hit by challenges in Africa’s frontier market. Their
new IT system caused supply constraints in South Africa.
Also, there is a lot of trade restrictions due to the government, they do not allow some stuff to
be sold in the market.
Economic
Economic factors are great concern to Shoprite Holdings, this is because they are likely
influence by them:
• Demand of product
• Cost of Employment
• Pricing of goods
• Overall profits
These economic factors are largely outside of the control of the company, and can have
adverse effects on certain parts of the company, which can be profound. Although the
continental appendix to Shoprite’s business is set to grow bigger and bigger every year and is
to contribute grater to Shoprite’s profit over the few years, the company is still highly
dependent on the African market.
Shoprite which is also known as the Africa’s largest supermarket group declared that its first
half year earnings declined in over a decade which was hit by a currency devaluation in
Angola. Economy is the most important key; higher economic growth rates are forecasted
and the gross domestic product is estimate to be higher than the peak pre-crises.
Pearson BTEC Level 3 International Diploma in Business 3
Assignment 2 Sumrit Gulati
