For an Existing Local Beverage Enterprise That Is Considering Expanding Its Operations Into Zimbabwe, Conduct an Analysis and Provide Justification as to Whether or Not They Should Pursue This Idea

Table of Contents

Executive Summary 2

Introduction 3

Analysis Of The Environmental Factors 3

Economic Factors 3

Political & Legal Factors 4

Social Factors 5

Technological Environment 6

Immediate Industry and Competitive Environment 6

Substitute Products 6

Buyers 6

Rival Firms 7

Marketing Intermediaries 7

Conclusion 7

Executive Summary

Effective strategies, their alignment to the organisational culture, structure, leadership and governance as well as their implementation have become the currency of success for organisations.

The need for growth, survival, market saturation, stagnant markets in the domestic market as well as the availability of a lucrative market in other countries has given rise to the need for international expansion of businesses. Zimbabwe has international companies operating within its borders in various industries. This report explains why the expansion of Carbis Teas into Zimbabwe, a local beverage company producing tea, should pursue this idea.

The market opportunities of Carbis Teas and the external threats to its future well-being are evaluated. In justifying this expansion, the external environmental factors are examined. These include the economic factors, political, legal, social and cultural, as well as technological factors. Factors in the immediate industry and competitive environment that are analysed are the rival firms, buyers, substitute products as well as new entrants (Hough: 79). Other influences that are considered include the general infrastructure as well as the marketing intermediaries.

After a thorough investigation, it is seen that there is a good marketing environment for Carbis Teas, to allow for expansion and growth. The actual production will remain in South Africa, so as to save from economies of scale and avoid unnecessary costs and expenses, also to have total control of the company, as moving production will entail that they will have to sell 51% of their shares to the indigenous...