The Importance of Business Environmental Analysis: A Case Study of Zambian Breweries

Download Article

DOI: 10.21522/TIJMG.2015.09.02.Art006

Authors : Jubert Twambo, Muchemwa Sinkala

Abstract:

This study’s main purpose was to assess how well Zambian Breweries analysed business performance using SWOT (Strengths, Weaknesses, Opportunities, and Threats) and PESTLE (Political, Economic, Social, Technological, Legal, and Environmental) analytical approaches. The methodology involved the distribution of a survey through the Google Forms platform, to which 17 respondents answered, and the collection of data utilising that survey. The results of the study were generated by the Google platforms based on the respondents’ responses. According to the study’s findings, Zambian Breweries occasionally performed SWOT and PESTLE analyses to assess the internal and external environments of the business and to assist in decision-making. The study further shows that managers at Zambian Breweries use SWOT and PESTLE analyses to weigh the advantages and disadvantages of significant choices. SWOT and PESTLE assessments can be employed for both large and small projects, to make decisions on marketing campaigns, organisational changes, the adoption of new production methods, and the introduction of new products. The analysis phase involves gathering employee viewpoints, which enhances project understanding, acceptance, and execution. To understand how a company is operating, it is essential to understand its SWOT and PESTLE analyses. In order to build strategic strategies, businesses must perform comprehensive study, which calls for the SWOT and PESTLE studies. An internal environment study and competitive advantage identification are common goals of a SWOT analysis. PESTLE analysis can be used to look at the external factors that affect the business environment.

Keywords: Analysis, PESTLE, SWOT, Strategy, Strategic Management.

References:

[1] Breweries Shareholders Disposal Circular 2018. https://www.pangaea.co.zm/wpcontent/uploads/2018/07/Zambrew-Cat-1-Disposal accessed on 14 June 2020.

[2] Diggers Reporter (2020). Zambian Breweries posts K15.5m losses in 6 months. https://diggers.news/business/2020/09/10/zambian-breweries-posts-k15-5m-losses-in-6-months/ accessed on 14 June 2020.

[3] Tanya, Sammut-Bonnici. (2015). Strategic Drift. https://www.researchgate.net/publication/272184191.

[4] Thompson Jr., A., Strickland III, A. J. and Gamble J. E. (2007) Crafting and Executing Strategy. 15th Edition, New York: McGraw-Hill Irwin.

[5] Eden C., and Ackermann F., (1998). Making Strategy: The Journey of Strategic Management Journal of Operational Research, Elsevier, vol. 176(2), 1294-1297.

[6] Beckman, S. L., and Rosenfield D. B., (2008). Operations Strategy: Competing in the 21st Century. New York: McGraw-Hill Irwin.

[7] Mintzberg H., Ahlstrand, B., and Lampel, J. (1998). Strategy Safari: A Guided Tour through the Wilds of Strategic Management. New York: The Press.

[8] Hooley, G., Piercy, N.F., Nicoulaud, B., Rudd, J.M. (2017). Marketing Strategy & Competitive Positioning, (6th Ed). Harlow: Pearson Education Ltd.

[9] Blowfield, M., Murray, A. (2014). Corporate Responsibility, 3rd Edition. Oxford University Press.

[10] Rumelt, R. (2012). Good Strategy, Bad Strategy: The Difference and Why It Matters. London: Profile Books Ltd.

[11] Mazzei, M. J., and D. Noble (2017). Big data dreams: a framework for corporate strategy. Business Horizons, vol. 60, No. 3, 405–414.

[12] Johnson, G., Whittington, R., Scholes, K., Angwin, D., Regnér, P. (2015). Fundamentals of Strategy, (3rd Ed). Harlow: Pearson Education Ltd.

[13] Jenkins, M., Ambrosini, V., Collier, N., (2016). Advanced Strategic Management: A multi-perspective approach, (3rd Ed). London: Palgrave.

[14] Grant, R.M., Jordan, J. (2012). Foundations of Strategy. Chichester: John Wiley & Sons Ltd.

[15] Wall, S., Minocha, S., Rees, B. (2010). International Business, 3rd Edition. Harlow: Pearson Education Ltd.

[16] Sitkin, A., Bowen, N. (2010). International Business: Challenges & Choices. Oxford: Oxford University Press.

[17] Porter, M.E. (2004). Competitive Advantage: Creating and Sustaining Superior Performance. New York: Free Press Inc.

[18] Kelley, K. (2022). What is Data Analysis? Methods, Process and Types Explained https://www.simplilearn.com/data-analysis-methods-process-types-article, accessed 4 February 2023.

[19] Wikipedia, Zambian Breweries, https://en.wikipedia.org/wiki/zambian_breweries, accessed 7 February 2023.

[20] Kuter, U. and Tilmaz, C. (2001). Survey methods: Questionnaires and Interviews. Retrieved from: http://www.umd.edu.html. (2014, August. 20).

[21] Kirakowski, J (1998). Questionnaires in Usability engineering http://www.ucc.ie/hfrg/resources/qfaq1.html, accessed 30 April 2023.

[22] Pavline V. Young (1984). Scientific Social Surveys & Research, Prentic, Hall of India Private Ltd.

[23] Zambian Breweries Annual Report 2019. https://africanfinancials.com/document/zm-zambrw-2019-ar-00/, accessed 20 March 2023.

[24] Clinton, B. (2009). Harvard Business Review. Available at: https://hbr.org/2009/09/creating-value-in-an-economiccrisis, accessed 29 January 2023.

[25] IDE-JETRO, Zambian Breweries. Institute of Developing Economies Japan External Trade Organization. https://www.ide.go.jp/English/Data/Africa_file/Company/zambia02.html, accessed 30 January 2023.

[26] Ahsan Ali Shaw (2023). Importance of pestle analysis, uses, advantages and disadvantages. Business Management and Marketing. https://swotandpestleanalysis.com/importance-of-pestle-analysis-uses-advantages-disadvantages/, accessed 3 February 2023.

[27] Zambia Country Commercial Guide (2022). Market Challenges. International Trade Administration, USA. https://www.trade.gov/country-commercial-guides/zambia-market-challenges, accessed 4 February 2023.

[28] Afrina, A (2022). How the Russia-Ukraine war affects us. https://university.taylors.edu.my/en/campus-life/news-and-events/news/how-the-russia-ukraine-war-affects-us.html, accessed 7 February 2023.