How often Macro-environmental analysis is asked

Where it was asked

• May/Jun 202315 marks
• May/Jun 202020 marks
• May/Jun 201915 marks

The questions

1. May/Jun 2023, Q315 marks

   McDonald's operates over 36 000 restaurants spread across more than 100 countries, with over 200 of these located in South Africa. Elsewhere on the African continent, McDonald's is found only in Morocco, Egypt and Mauritius, meaning there remains a vast untapped market for the company on the continent. Using an appropriate model, analyse the macro-environment within the African context, focusing specifically on the challenges that may be preventing McDonald's from expanding its operations into additional African countries.

2. May/Jun 2020, Q3.115 marks

   These questions relate to the Capitec case study provided in the paper. Using an appropriate analytical model, examine Capitec's macro-environment, drawing specifically on details given in the case study.

3. May/Jun 2020, Q3.25 marks

   These questions relate to the Capitec case study provided in the paper. Drawing on the case study, name two opportunities and three threats that Capitec encounters in its macro-environment.

4. May/Jun 2019, Q115 marks

   McDonald's opened its first restaurant in Illinois, America, in 1955 and today runs more than 36 000 restaurants in over 100 countries worldwide, making it one of the world's leading food service brands. Since entering South Africa in November 1995, it has grown to more than 200 restaurants, serving over 8 million customers a month and employing over 8 000 people, which makes South Africa one of the franchise's most successful markets internationally. The company is known for comprehensive, standardised crew training delivered across its restaurants, having trained and employed over 10 000 South Africans at levels ranging from franchisee to restaurant manager to crew member, and was named Deloitte Best Company to Work for in South Africa in 2009, 2010 and 2011. Through its McCafé brand it also sells high-quality coffee made from beans sourced globally, competing internationally with Starbucks. Its operations strategy centres on speed, standardisation, quality and affordability: market research showed customers prioritise speed above all, so the company uses standardised training and new drive-through layouts to minimise the time between an order being placed and the customer leaving. It also competes on low prices through efficient, value-driven processes in line with its vision of being the most efficient provider offering the best value to the most people, exemplified by its long-standing value meal, even as it faces a global decline in customer traffic linked to weak consumer spending, higher fuel prices, increased taxes and high unemployment. On quality, McDonald's uses only 100% pure beef in its burgers, sources more than 97% of the food served in its South African restaurants from local suppliers to meet its quality standards, and publishes nutritional information online to help customers make informed choices; its menu is designed to suit the whole family, and all its South African restaurants are certified by the Halaal Trust of the Muslim Judicial Council. Despite Africa having a population of over 1.2 billion people, McDonald's currently operates in only four African countries — Morocco, Egypt, South Africa and Mauritius — and there has been speculation about when it might enter Nigeria, with the main obstacle being the lack of adequate supply chains, since Nigeria lies too far from South Africa, Egypt or Morocco for existing supply chains to simply be extended there. McDonald's has established more than 36 000 restaurants in over 100 countries, with over 200 of these located in South Africa, yet elsewhere on the continent it is present only in Morocco, Egypt and Mauritius, leaving a massive untapped market for the company in the rest of Africa. Using a suitable model, analyse the macro-environment in Africa, with specific reference to the challenges that might be prohibiting McDonald's from expanding into the rest of Africa.