Strategic management is necessary to plan appropriately and ensure that organizations outperform their rivals. Regarding the external environment related to Africa, we will explore the role of the African Union (AU) and the Southern African Development Community (SADC) in promoting the well-being, attitude and competitiveness of African countries in the 'global economy University of South Africa ( 2018:73). This could include identifying strategic opportunities for doing business in Africa and exploring the strategic options available to organizations looking to do business in Africa. In this essay we will analyze the external environment relating to Africa which will provide a framework for doing business in Africa. We will also discuss possible threats that Spur Corporation may face, as well as possible actions that can be implemented to prevent them. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay At the continental and regional levels, African nations have developed strategies and cooperated with the support of the AU. As a result, each individual country will have different strategies that will influence its industries and business organizations. A key objective of UA has been identified as wealth creation, Venter et al (2014). The key strategic issues facing Africa, as identified by the University of South Africa (2018:73-74), are briefly discussed below: Lack of Infrastructure : Inadequate infrastructure in African countries is a major concern for investors and businesses. Poor infrastructure – governments unwilling and unable to maintain or improve existing infrastructure, and governments unable to provide new infrastructure – represents major barriers to investment and business in Africa. In particular the economic and commercial activity of a country. The lack of infrastructure constantly translates into inadequate supply chains that negatively impact the supply of strategic raw materials for the production and distribution of much-needed products to markets, especially those in rural areas. Political Instability: Political instability typically results from uncertain and unpredictable government actions, which can include social and economic unrest or even armed conflict. Another factor is the nationalization of industries or the expropriation of property and assets of business organizations. All of these factors present uncertainty and risks for investors and businesses. High levels of poverty: In most African countries and many other developing countries, large parts of the population live on less than two US dollars a day. Furthermore, recessions are occurring more and more often and cause the destabilization of several international currencies. Corruption: Corruption can have disastrous effects on businesses and society. Various international indices, such as Transparency International's Corruption Perception Index, show that 90% of African countries, on average, scored 33% instead of the University of South Africa's minimum threshold of 50% (2018: 74) . An inefficient public sector: the disappointing economy The growth of the African economy in recent years can largely be attributed to an inefficient public sector. The purpose of the public sector is to improve the general well-being of society by providing public goods and services to individuals, private organizations and other public sector organizations, playing a vital role in both the country and the global economy. Lack of skillskey: countries in Africa has generally been characterized by a lack of key entrepreneurial and especially managerial skills, and by a large and often excessive supply of semi-skilled and unskilled workforces. In section 5.5.4 below, “Investing in Africa”, these and other business challenges are discussed in more detail. Read section 5. 5. 4 before performing the following activity. Lack of infrastructure: Although the effect of load shedding has diminished, South Africa faces an increasingly severe water crisis. Water is a necessary resource in daily life and is essential for a restaurant's business. Ingredients are perishable and must be washed and stored, while equipment must be thoroughly sanitized before use. Particularly affected will be cities such as Cape Town, which are predominantly based in the tourism sector. Outlets like John Dory's will require more water than most to preserve the seafood that forms the basis of their menu. Political instability: The South African political system affects the entire South African food and drink industry and determines the context in which companies operate. Changes in policy can have major effects, especially if Spur Corporation wishes to expand internationally, Spur Corporation Integrated Report (2018). Obligations under international treaties, such as compliance with trade rules, must be respected. High levels of poverty: Due to pressure from trade unions and large manufacturing companies, the South African government constantly tries to stabilize the South African Rand. A weaker South African Rand and especially an unstable Rand means that South Africans have to pay premium prices for basic living expenses, thus contradicting the popular belief that a weaker Rand is beneficial to South Africa. Spur Corporation's restaurants are heavily dependent on the disposable income of South African consumers, which will be affected by fluctuations in the rand. They will also have to compete with new international entrants into the South African market who could benefit from stronger monetary guarantees. An inefficient public sector: A common threat to any restaurant business is hygiene, slow response times and standardisation. Regarding hygiene, some outlets serve food prepared by workers without gloves or by people who handle the cash registers and handle the banknotes at the same time. It is common for consumers to have to wait for periods of time to be seated at popular restaurants, only to receive their food after an extended waiting period due to restaurants' "overcapacity." Lack of key skills: Restaurants in South Africa are one of today's largest employment industries and increasing pressure is being placed on restaurants to offer better working conditions, wages and opportunities to previously disadvantaged people. A predominant complaint is the lack of education and how the education system has failed today's youth. This has a detrimental impact on the availability of qualified and trainable personnel, which in turn will result in an unsuccessful industry. Actions to Combat Threats to Spur Corporation Lack of Infrastructure: Electricity and water issues, both key factors in the restaurant industry supply chain, are a cause for concern and require a long-term solution from policy makers. It is difficult to create solutions for multiple regions that differ in resource availability, so a water conservation policy should be studied and developed in collaboration with the Council..