THE CONTEXT OF MANAGEMENT (MBA 591-1)

An analysis of South African Broadcast Corporation’s Internal and External Environment.

Prepared By: Wandisa Vazi (72112212)

Date: 25 August 2008

TABLE OF CONTENTS

Executive Summary………………………………………………………. 3
1. Introduction…………………………………………………………. 3
2. Analysis External Environment…………………………………. 4

2.1 Political Forces…………………………………………………………… 4
2.2 Economical Forces………………………………………………………. 4

2.3 Technological Forces……………………………………………………… 5
2.4 Social Forces…………………………………………………………… 5
2.5 Competitive Forces……………………………………………………. 6 2.5.1 Michael Porter Forces……………………………..……… 6

3. Analysis of Internal
Technological forces play an increasingly pivotal role in creating and changing an organization’s task environment. New technologies forces organizations to reconsider their purposes and methods of operation or face extinction (Hellriegel & Slocum 1996:94).

The move in the industry from analogue to digital is making a total overhaul to SABC. Digital will open new frequencies and enable new competitors to launch as well as further fragment audiences. Digital will also result in audience attraction and retention.
Technology is lowering the barriers of time and place; audience can listen to radio and watch television on mobile phone anywhere and anytime, which means that programming needs to be interesting at anytime of the day. More and more people are listening to radio on TV sets (via cable and satellite).

2.4 Social Forces

Urbanization is increasing strongly in the South African market. SA population is moving up the social / LSM ladder. Increase in unemployment increases social insecurity that leads to low productivity at work. Impact of HIV-AIDS on population and immigration from other African countries will affect South African social fabric in the long-term (Schultz 2005:76).

Due to an increase in urbanization most SABC vernacular radio stations will loose listeners to commercial and community radio stations. The positive move in