An investigation of the South African operating environment for agribusinesses

Abstract

This paper focuses on analysing priorities on a global- and regional level but not on a national level. It explores the operating environment for South African agribusinesses using environmental scanning approaches to provide a granular view of the elements that constitute the environment for agribusinesses. By implementing a PESTEL Analysis Framework that consists of specific criteria (of uncontrollable factors), it assists agribusinesses to focus on what needs immediate attention and to assist in implementing strategic and operational decisions. This paper further aims to answer two main questions: firstly, why does the agricultural industry need to have the ability to prioritise the external factors of the agri-operating environment? Secondly, why is it crucial to stay on track with improvements in policies, trends in the economy, continuous upskilling, the latest advanced technology, rules and regulations, and financial factors? Both these questions have been addressed through identifying the Economic domain that is ranked as the number one essential priority, however, it is emphasised that the rankings differ when disassembling the PESTEL Analysis into categories on a national level which contemplate different versions of the future in a structured way.