SAB expanding into Tanzania - environmental factors
Question 2
The two dimensions or environmental segments that played a big role in determining whether Tanzania’s macro-environment would provide a suitable and supportive entry for South African Breweries are namely the Political or Legal Environment and the Economic Environment.
Firstly, in general, any well organised and effectively functioning government, and country, would attract investment and business from outside.
The political leaders of Tanzania are striven to enhance the current political stability within mainland Tanzania, while also vitally focused on creating necessary political cohesion between Tanzania and the island Zanzibar.
A factor that is essential to any well-functioning government and country, which would have attracted SAB, is that Tanzania had managed to rid its government of corruption. This was managed by the thinning –out and restructuring of the government in power, pre SAB’s involvement.
Although Tanzania owned its own brewery (Tanzania Breweries Ltd) this company had fallen under complete disarray. SAB grabbed the window of opportunity to acquire a share in the company. As a result, SAB acquired a 45% share in TBL (which later increased to 52%). This was a great opportunity, as TBL was an already well-established brewery that had certain assets, employees, client-base, distribution channels and government connections. In essence, this would have made the integration of SAB into TBL a much smoother process.
However, whenever a new organisation tries to establish itself in a foreign country, one can expect some sort of hostility, as well as a battle between the government’s regulations and the organisation’s expectations.
At the time, the Tanzanian government seemed cooperative and supportive of the whole endeavour. The government and SAB had a relatively joint relationship, and this meant that there would be some sort of mutual agreement between them as to the activities of the organisation.
Secondly, in
The two dimensions or environmental segments that played a big role in determining whether Tanzania’s macro-environment would provide a suitable and supportive entry for South African Breweries are namely the Political or Legal Environment and the Economic Environment.
Firstly, in general, any well organised and effectively functioning government, and country, would attract investment and business from outside.
The political leaders of Tanzania are striven to enhance the current political stability within mainland Tanzania, while also vitally focused on creating necessary political cohesion between Tanzania and the island Zanzibar.
A factor that is essential to any well-functioning government and country, which would have attracted SAB, is that Tanzania had managed to rid its government of corruption. This was managed by the thinning –out and restructuring of the government in power, pre SAB’s involvement.
Although Tanzania owned its own brewery (Tanzania Breweries Ltd) this company had fallen under complete disarray. SAB grabbed the window of opportunity to acquire a share in the company. As a result, SAB acquired a 45% share in TBL (which later increased to 52%). This was a great opportunity, as TBL was an already well-established brewery that had certain assets, employees, client-base, distribution channels and government connections. In essence, this would have made the integration of SAB into TBL a much smoother process.
However, whenever a new organisation tries to establish itself in a foreign country, one can expect some sort of hostility, as well as a battle between the government’s regulations and the organisation’s expectations.
At the time, the Tanzanian government seemed cooperative and supportive of the whole endeavour. The government and SAB had a relatively joint relationship, and this meant that there would be some sort of mutual agreement between them as to the activities of the organisation.
Secondly, in