Question $1$

$($Marks: $30)$

Louw and Venter $(2019$:$107)$ state that strategic decisions are big decisions, typically affecting the whole organisation and are not limited to a specific function or department. In addition, they require massive investments of resources that, once committed cannot easily be reversed. Spur is actively increasing their market share in the restaurant industry in South Africa. After the successful purchase of Doppio Zero and Piza E Vino, Spur Corporation is now, considering buying Pedros, a smaller competitor, specialising in chicken.

As a strategic consultant for Spur Corporation, you are now tasked to advise them on this decision.

Your answer should contain the following points:

Provide a brief introduction to strategic decision making and macro $-$environmental analysis.

Discuss the characteristics that have to be considered, that such a decision, as Spur buying Pedros would entail.

Complete a $Cl$ cycle on Spur Corporation's consideration to add Pedros to their restaurant portfolio.

In conjunction with the $Cl$ cycle, conduct a macro$-$environmental analysis $($PESTEL analysis$)$ for Spur Corporation on the South African market.

Discuss the reasons why analysing the macro environment would be of strategic importance to the Spur Corporation.