Ingenious Africa Media Sample Business

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Sample business plan
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4.    External Environment Analysis

The external environment analysis is coverage of political, economic, social, technological and environmental changes taking place in the external environment that are likely to be opportunities or threats to Ingenious Africa Media. Ingenious Africa Media will strive to exploit the opportunities and avoid the threats where possible.
4.1    Political Changes
  • BBEE: this is regarded as a business opportunity; the major highlight is the Broad Based Black Economic Empowerment policy. This policy has opened and widened doors for small and medium enterprises as large established corporate firms procure products and services from them. It has also presented opportunities in terms of ownership and management of business entities
  • There is also great opportunity in terms of skills development and training for businesses as the South African Government has established Sector Education and Training Authority (SETA) which is responsible for empowering businesses by providing them with accredited training. Business members attending SETA accredited training are rest assured that their qualification is recognized throughout South Africa. This is an opportunity for Ingenious Africa Media
  • The Cultural Industries Growth Strategy (CIGS) of the Department of Arts, Culture, Science and Technology which is aimed at generating growth strategies for the film, music, craft and publishing industries, will create business opportunities in the industry once the government programs are fully implemented.
  •  The availability of support for small, medium and micro enterprises through agencies such as Small Enterprise Development Agency (SEDA) and The National Youth Development Agency (NYDA) is an opportunity for the business
  • Other developments in terms of political changes taking place in South Africa that will be an opportunity to Ingenious Africa Media include: Affirmative Procurement, Local Economic Development, Accelerated and Shared Growth Initiative for South Africa and Integrated Development Plan

4.2    Economic Changes
  • The global recession seems to be slowing down as an outlook of bail outs and other government interventions. The recession had an adverse impact on the economy as evident of declines in manufacturing, mining and other sectors. This is relatively a threat for most businesses and Ingenious Africa Media is no exception
  • Interest rates have fallen recently – the repo rate was recently cut by 50 basis points (0.5%) reducing the rate to 6.5%. This is an opportunity for the business as the cost of borrowing funds is less
  • Inflation is at an average of about 5.7%, rising prices continue to have a negative effect on the economy and businesses. This is a threat to the business as real inflation implies higher costs of living for individuals and corporate entities

4.3    Social Changes
  • The increase in crime rate in South Africa is a threat to businesses
  • The current incidence of the HIV/ Aids pandemic is a threat to the business
  • The poverty levels in South Africa still remain high. The women and youth are mostly affected by this scenario. The scenario has a greater impact on low skilled people. The outlook of poverty is usually increased crime levels. This is a threat for the business as high poverty levels mean that people have less money to spend on establishing businesses that require advertising solutions.
  • The unemployment levels remains high thus implying that there are less people with buying power. As an outlook, this is a threat for the business

4.4    Technological Changes
The advent of technology will be an opportunity for the business; Ingenious Africa Media has access to advancements such as the internet. The internet can be used for marketing and other platforms.
Mobile advertising is gaining momentum as cellular phones are advancing. There is an increase in the development of ‘mobi’ websites as more developers and marketers are realising its importance and effectiveness. This will be an opportunity for Ingenious Africa Media.

4.5    Environmental Changes
In terms of environmental changes, a key opportunity emanating from environment changes is the movement towards electronic waste recycling. EWASA – e Waste Association of South Africa is an electronic waste association of South Africa. It is a platform aimed at driving the recycling of electrical and electronic waste. As the business is likely to make use of electronic devices, it can help contribute towards this cause. 

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