Domeon Pestle Analysis
2. Socio-economic issues
According to the Oxford dictionary socio-economic is defined as: ‘relating to the interaction of social and economic factors.’ In order to critically analyse the evolution of Taste Holdings business strategy, socio-economic factors that are prevalent in a modern South Africa will be analysed, and they will be placed in the context of their chosen areas of operation. The dominant socio-economic issues with regards to Taste Holdings are: broad based black economic empowerment (B-BBEE), Taste Holdings acquisition of Domino’s and The Fish and Chip Co. and the executive director’s remuneration.
2.1 Broad Based Black Economic Empowerment
In a post-apartheid South Africa (1994 – present) the country is a democratic society aimed at providing equality to all its citizens, due to the restrictions on education, due to the Bantu education Act, and employment during the apartheid era a significant part of South Africa’s workforce is disadvantaged. The groups that were disadvantaged will be referred to as historically disadvantaged South Africans (HDSA’s) from here on out. As a large part of South
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This is a massive opportunity for Taste Holdings to expand their market share in the pizza industry as Domino’s pizza is one of the market leaders in the pizza industry in several countries (Share Data , 2014 (a)). Taste Holdings strategy is to convert existing Scooters and St. Elmo’s stores into Domino’s and their goal over the next five years is to establish Domino’s as the leading pizza delivery brand in South Africa (Share Data , 2014 (a)). On the nineteenth of May local aggrieved parties are objecting the validity of Taste’s acquisition of the master franchise rights for Domino’s as they feel they have already established an agreement with Domino’s to acquire the franchise rights (Share Data, 2014
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