Political the Amount of Political Influence Varies Essay

Download this Essay in word format (.doc)

Note: Sample below may appear distorted but all corresponding word document files contain proper formatting

Excerpt from Essay:


The amount of political influence varies depending on the type of company. In the case of an industry needing a great deal of capital invested, they may be more susceptible to political risk. In the case of Astrapak the investment is moderate and does not require heavy foreign direct investment strategies. Though there is a need to export plastic products outside the country of South Africa, the amount of required for manufacturing companies is far less than say for example an energy product industry. The amount of risk rises when the government makes changes based on politically correct moves to garner favor with global strategies such as environmental issues (Bothma, 2011). The regulations that the government can impose on a company can quickly affect its bottom line. The highest level of political risk comes from civil issues between domestic people groups. Another is war that can affect the ability of companies to export product or import needed raw materials. Another factor that may have political ties in industrialized countries such as South Africa are labor issues that can affect price and threaten profits.


Astrapak restructured recently resulting in huge dividends for the company. The CEO said that the slowed economy was the catalyst that triggered the need for change. In exchange for outdated manufacturing practices implementation of best practices and reducing overhead resulted in a return to profits. The basic strategy was to disassemble many unprofitable business segments that were not related to core competitive advantages. The industrial sector was totally dismantled with a refocus on the core products and packaging business. The CEO, Marco Baglione, has commented on the effects of the new restructuring on economic returns (Astrapak, 2004). He says that "the plastics company is committed to implementing world class manufacturing programs and strategies. Including the integration of all systems from the plant floor to the internal processes and even core planning initiatives" (Astrapak, 2004).

The returns for shareholders has nearly doubled from 62, 3c to up around 124, 5c in a single year (2009-2010). The acquisition of additional plant space from Cape Wrappers has fueled a joint venture with Mauritian. There are other company interests that have been sold such as equity in Izakhamzi Plastics, International Edgeboard Technologies, and Tube Technologies. The result of the sale has brought in additional capital of R6, 9m (AllAfrica, 2010).


One of the areas that Astrapak has dealt with is the area of social empowerment in relation to supplier relationships. For those supplying raw materials, supplies and operating equipment long-term communication channels are important to maintain (Astrapak, 2004). Internally, it is also necessary to implement empowering managerial standards that allow for the free flow of information and ideas.

Prior to the restructuring of Astrapak top management rarely received input from plant workers. The autocratic style of leadership is outdated and demands refocus on how to gain leverage from the talents and experience of its workers.


In each of the several business components of Astrapak new innovations have been discovered that have led to advancement in the field of plastics. The films department for example, has experienced a superior product that is viewed as highest quality for packaging foods, fertilizer, shrink wrapping, and many other uses.

The integration of company departmental managerial resources has allowed for seamless reporting capabilities throughout the Astrapak enterprise from raw materials, to production, to distribution, and sales to its many industrial customers around the world.


Astrapak had adopted an open door approach to corporate access which allows the governance policies and procedures to reflect compliance with government regulations. By being objective and open about the business Astrapak shows its willingness to comply and submit its reputation to scrutiny (Astrapak, 2004). The legal department is poised to respond to any claims or provide required information for any investigation.


The operating division of the company is poised to present broad reaching internal controls to ensure safety for workers and also comply with the needs of the local communities. Adherence with environmental standards is key for the company in showing it is open and responsible to partner in providing safe and efficient waste management. The supply chain has built in recyclable strategies that support environmental initiatives such as the National Cleanup Campaign (Astrapak, 2004).

Use Porters model analysis and apply it to the company and its industry

Porters Five…[continue]

Some Sources Used in Document:


Cite This Essay:

"Political The Amount Of Political Influence Varies" (2011, June 28) Retrieved December 9, 2016, from http://www.paperdue.com/essay/political-the-amount-of-influence-51357

"Political The Amount Of Political Influence Varies" 28 June 2011. Web.9 December. 2016. <http://www.paperdue.com/essay/political-the-amount-of-influence-51357>

"Political The Amount Of Political Influence Varies", 28 June 2011, Accessed.9 December. 2016, http://www.paperdue.com/essay/political-the-amount-of-influence-51357

Other Documents Pertaining To This Topic

  • Political Interest Groups

    Political Interest Groups and Presidential Elections Within the United States and other democratic nations political interest groups are among "the most important institutions that define the character of the political system" (Thomas & Lynne, 3). Political interest groups are among other things a liaison between the public and government officials. Political interest groups often invest heavily in Presidential elections. Why? Ultimately political interest groups are interested in having their agenda pushed

  • Political Appointees Senate Confirmed for Inspector

    Filling these top positions are cumbersome and, occasionally, controversial. Appointment tenure takes time to decide and may often be short leading to confusion within the administration itself, to inaction in decision and work, rapid turn-around and modification in decision making, and confusion. Using data from the Office of Personnel Management, O'Connell (2009) observed that senate apportioned positions were empty on a mean of one-quarter of the time over the five

  • American Political Parties There Is

    However, class-based differences in party identification remained prominent and actually grew stronger in the 1970s and 1980s, with upper-class and middle-class individuals identifying more strongly with the Republican Party" (309). Likewise, Pomerantz (1999) notes that, "While people change their party identity only rarely, the significance of that affiliation waxes and wanes over time" (37). Citing the research conducted by Wattenberg based on data collected in the National Election Studies

  • Moral Legal Political and Practical

    The line of legitimacy, separating socially approvable use of force from violence, cannot be effectively drawn without an agreement on what constitutes the optimum amount of force necessary to maintain social order and to protect human rights against encroachment. A society subscribing to infinite morality which condemns all use of force as immoral is doomed no less than a society accepting the absolute pragmatism of tyrants. " As Oleg Zinam

  • Influence of 2007 Economic Crisis on American Car Market

    2007 Economic Crisis on American Car market Effect of the 2008 global economic crisis on automotive industries Crisis in the United States Crisis in Canada Crisis in Russia Crisis in European markets Crisis in Asian markets Effects by other related crisis events In this paper, we will review the effects of 2008 global automotive crisis. Our main focus will be on the American car manufacturers and the negative impact they suffered due to the crisis. We will

  • Political Doctrine

    Christian Church: Doctrine and Politics The doctrine and politics of the early Christian Church were intrinsically related to one another, particularly during the fourth and fifth centuries. During this crucial time period in which the Holy Roman Empire (which had officially adopted the religion of Christianity) (Shelley, 2008, 1st page chptr 9) was attempting to expand, some of the fundamental principles regarding the nature of this religion and of Christology

  • Influence of Brand Effect on Consumption Behavior of the Irish and...

    Brand Effect on Consumer Behavior Influence of Brand Effect The influence of brand effect on consumer behavior: Irish and Chinese consumers in Ireland This paper discusses the influence of brand effect on consumption behavior of the Irish and Chinese in Ireland. Since shopping and purchase decision are affect by many sociological factors, the factors that influence the Chinese and the Irish in Ireland may be inherently distinct. While the Chinese population in Dublin is

Read Full Essay
Copyright 2016 . All Rights Reserved