Question structure = Introduction/Body/Conclusion. Intro is rephrasing the question (with this question
I am going to identify/analyse… with the help of…). Body is explaining the theory. Conclusion is
answering the question. With this question I am going to identify …. with the help of …. and how these
will impact … of McDonalds. Corporate strategic direction- Ansoff matrix/ Attractiveness
market; porters five forces / Key drivers for change; pestel / Strategic capabilities; resources
competences and Vrin / Portes generic strategies / Competitors Strategic Groups./ Type of
industry; mono/poly FINANCE
Market Internal Vision: To be an internationally recognized and respected gaming and hospitality
group that provides memorable experiences for our guests, offers rewarding employment for our
people, delivers superior returns for our shareholders and creates genuine value for the communities in
which we exist. Mission: To create great memories for our guests, people and stakeholders. SWOT
Strengths: domestic market, high growth rate and skilled workforce. Weaknesses: High loan rate
possible, Competitive market. Opportunities Global markets, Growth rates and profitability, growing
economy. Threats; Increasing Rates of interest, Increase of labor costs, government regulations. Top
Three risks; (1)Loss of Grandwest exclusivity, (2)introduction of further smoking regulation,
(3)unsuccessful expansion internationally. Ansoff Matrix Market development; Grow Businesses into
new areas Porters five forces Threat of entry (low); Expensive to enter the market, many growing
competitors, overall growth of hosp. industry, Government supports tourism. Supplier
power(moderate); Hard to find a unique product(gaming, hospitality and entertainment), Staff has
high supplier power, they are responsible for the brand image. Threat of substitudes.(High); High
because they focus on 3 different industries, Airbnb is taking over the market, Many expanding hotel
chains in the market. Buyer power. (moderate, high casino, low hotels); Extreme customer loyalty,
the hotel is refurbishing and innovating in order to keep the buyers satisfied, price sensitive.
Competitive rivalry(moderate); Large number of competitors in the marker. PESTEL Political; the
Broad-Based Black Economic Empowerment (BB-BEE) is an act created in 2003 in South Africa. This act
is created to increase the participation of ‘black people’ in the environment. This also includes woman,
workers, youth, people with disabilities and people living in rural areas according to the BB-BBE act.
Government; Constitutional multiparty, three-tier (local, provincial, national) democracy. Economical;
The economy of south Africa is second largest of Africa, this is because of the wide range of natural
resources, stability in the politics and research and development. Economy is mainly driven by the
mining industry and this industry is resulting in smaller economical growth because of the lower prices
and higher costs. Therefore South Africa needs to focus on the tourist sector more. Social; The
population has doubled over the last 40 years due to the high birth rate. However the population does
not get older than 62 due to HIV and AIDS. The government has the biggest treatment programs and
tries to solve this problem. Furthermore, South Afr. has 11 official languages, the education level is
starting to improve and more and more people are educated. This results to an bigger and skilled
domestic workforce. Technological; Africa has one of the largest growth in their region in technology
as stated in the World Economic Forum, jumping from no landlines to mobile phones./ Energy is getting
available at more places. Telecommunication is provided by more than 100 companies trough almost
the whole country. This means that the hospitality industry is able to provide better communication and
online marketing Environmental; The ocean surrounds South Africa on three sides, which enhance the
marine tourism opportunities. Six years ago, a contribution of R54 billion to the country’s gross
domestic product and 316 000 jobs was made by the oceans economy. As a result, there can stated
that the ocean creates jobs, economic growth and attracts investments to the country. South Africa is
located in the continent Africa, which is known for the great wildlife. Sunny, warm and dry climate,
influence the hospitality industry positively. Growth in water usage is more than supply. Pollution of
rivers from agriculture and urbanization. Desertification is becoming a problem. Law; BBEE: minimum
of 60% of your employees must be South African. Next to that the rules and restrictions on getting a
VISA are simplified. This means that it is easier to get a visa. A 90 days VISA is able to get for almost
everyone. Competition law: established in 1998 ensures that markets are free, but competition is
controlled. A company is not allowed to own more than 35% of a market share. More attractive to
participate on this market. Strategic capabilities, VRIN The website: Value of strategic capability. Is it
valuable: yes Rarity of strategic capability. Is it rare: no Inimitable strategic capability. Is it inimitable:
no Non-substitutability of strategic capability. Is it non-substitutability: yes (Treshold capability).
Pricing strategy:Value of strategic capability. Is it valuable: yes Rarity of strategic capability. Is it
rare: no Inimitable strategic capability. Is it inimitable: no
Non-substitutability of strategic capability. Is it non-substitutability: no The pricing strategy is a
threshold capability Casino Value of strategic capability. Is it valuable: yes, because it is their unique
selling point Rarity of strategic capability. Is it rare: no, there are other hotels who have a casino. Las
Vegas is known for it. However, in Africa it’s a bit rare. Inimitable strategic capability. Is it inimitable:
no/yes, others can imitate it. However most off the casino hotels in Africa are from sun international so
