Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Old MathJax webview Shoprites Company Profile and History Shoprite Holdings Limited is an investment holdings company whose combined subsidiaries constitute the largest fast moving consumer

Old MathJax webview

Shoprites Company Profile and History

Shoprite Holdings Limited is an investment holdings company whose combined subsidiaries constitute the largest fast moving consumer goods (FMCG) retails operation on the African continent. Today the Shoprite Group trades with 1068 corporate and 275 franchise outlets in 17 countries across Africa, bringing the total number of stores in the Group to 1343.

The Shoprite Group of Companies started from small beginnings in 1979 with the purchase of a chain of 8 Cape-based supermarkets for R1 million. In 1983 the Group opened its first branch outside the Western Cape-in Hartswater in the Northern Cape. A year later Shoprite sped up its growth by buying six food stores from Ackermans. In 1986 the Group expanded to the Free State, opening a store in Bloemfontein. Shoprite was listed on the JSE Securities Exchange South Africa with a market capitalisation of R29 million. Two years later Shoprite opened two stores in the former Transvaal province, the first of which is situated in Polokwane (Pietersburg).

In 1990 Shoprite opened in Namibia; in 1991 it acquired the national Checkers chain of supermarkets; in 1997 Shoprite acquired the OK Bazaars Group; in 2000 the Group opened its first supermarkets in Zimbabwe, Uganda Malawi, Lesotho and Egypt; 2002 saw the acquisition of the French-owned Champion supermarket group in Madagascar and Score Supermarkets' Tanzanian operation; in 2004 Shoprite started trading as a wholesale operation in India; in 2005 the Group acquired both Foodworld, with 13 stores, and Computicket, as well as opening the first Shoprite Liquor Shop and it entered Nigeria; and in 2007 Shoprite announced an investment of US$80 million into the Democratic Republic of the Congo.

Shoprite Holdings Ltd comprises the following entities: the Shoprite Checkers supermarket group, which consists of 380 Shoprite supermarkets; 132 Checkers supermarkets; 24 Checkers Hypers; 148 Usave stores; 20 distribution centres supplying group stores with groceries, non-foods and perishable lines; 199 OK Furniture outlets; 14 OK Power Express stores; 46 House & Home stores; and 125 Hungry Lion fast food outlets. Through its OK Franchise Division, the Group procures and distributes stock to 26 OK MiniMark convenience stores; 24 OK Foods supermarkets; 75 OK Grocer stores; 43 Megasave wholesale stores; 26 OK Value stores and 81 Sentra stores and buying partners.

Shoprites expansion plan into Zambia started in 1995 with the purchase of six buildings in a privatization deal. By 1996, a full chain of state-owned retail stores were under Shoprite control. The first refurbished Shoprite retail store opened in Cairo Road, Lusaka. Shoprite Zambia currently operates 18 retail supermarkets (trading as "Africa Supermarkets") together with seven Hungry Lion outlets, Shoprites fast-food initiative. Freshmark, the companys distributor of fresh fruit and vegetables, also operates depots in Lusaka and Kitwe.

Source: https://www.ide.go.jp/English/Data/Africa_file/Company/zambia05.html

Consider the case study presented above and answer the questions that follow:

Select any country that Shoprite expanded to and discuss the political risks that the company would have faced based on that countrys CURRENT prevailing environment. Hence discuss creatively, how you would have averted those risks if you were the companys CEO. (Your answer should be between 1.5 pages and 2 pages) ( 30)

image text in transcribed

Question 2 (30 marks) Shoprite's Company Profile and History Shoprite Holdings Limited is an investment holdings company whose combined subsidiaries constitute the largest fast moving consumer goods (FMCG) retails operation on the African continent. Today the Shoprite Group trades with 1068 corporate and 275 franchise outlets in 17 countries across Africa, bringing the total number of stores in the Group to 1343. The Shoprite Group of Companies started from small beginnings in 1979 with the purchase of a chain of 8 Cape-based supermarkets for R1 million. In 1983 the Group opened its first branch outside the Western Cape-in Hartswater in the Northern Cape. A year later Shoprite sped up its growth by buying six food stores from Ackermans. In 1986 the Group expanded to the Free State, opening a store in Bloemfontein. Shoprite was listed on the JSE Securities Exchange South Africa with a market capitalisation of R29 million. Two years later Shoprite opened two stores in the former Transvaal province, the first of which is situated in Polokwane (Pietersburg). In 1990 Shoprite opened in Namibia; in 1991 it acquired the national Checkers chain of supermarkets; in 1997 Shoprite acquired the OK Bazaars Group; in 2000 the Group opened its first supermarkets in Zimbabwe, Uganda Malawi, Lesotho and Egypt; 2002 saw the acquisition of the French-owned Champion supermarket group in Madagascar and Score Supermarkets' Tanzanian operation; in 2004 Shoprite started trading as a wholesale operation in India; in 2005 the Group acquired both Foodworld, with 13 stores, and Computicket, as well as opening the first Shoprite Liquor Shop and it entered Nigeria; and in 2007 Shoprite announced an investment of US$80 million into the Democratic Republic of the Congo. Shoprite Holdings Ltd comprises the following entities: the Shoprite Checkers supermarket group, which consists of 380 Shoprite supermarkets; 132 Checkers supermar' Checkers Hypers; 148 Usave stores; distribution centres supplying group 2/4 groceries, non-foods and perishable lines; 199 OK Furniture outlets; 14 OK Powe stores; 46 House & Home stores; and 125 Hungry Lion fast food outlets. Through its UK Franchise Division, the Group procures and distributes stock to 26 OK Mini Mark convenience stores; 24 OK Foods supermarkets; 75 OK Grocer stores, 43 Megasave wholesale stores; 26 OK Value stores and 81 Sentra stores and buying partners. ASSESSOR MODERATOR Shoprite's expansion plan into Zambia started in 1995 with the purchase of six buildings in a privatization deal. By 1996, a full chain of state-owned retail stores were under Shoprite control. The first refurbished Shoprite retail store opened in Cairo Road, Lusaka. Shoprite Zambia currently operates 18 retail supermarkets (trading as "Africa Supermarkets") together with seven Hungry Lion outlets, Shoprite's fast-food initiative. Freshmark, the company's distributor of fresh fruit and vegetables, also operates depots in Lusaka and Kitwe. Source: https://www.ide.go.jp/English/Data/Africa file/Company/zambia05.html Consider the case study presented above and answer the questions that follow: Select any country that Shoprite expanded to and discuss the political risks that the company would have faced based on that country's CURRENT prevailing environment. Hence discuss creatively, how you would have averted those risks if you were the company's CEO. (Your answer should be between 1.5 pages and 2 pages) (30)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting Tools For Business Decision Making

Authors: Jerry J. Weygandt, Paul D. Kimmel, Ibrahim M. Aly, Donald E. Kieso

6th Canadian Edition

1119731828, 9781119731825

More Books

Students also viewed these Accounting questions