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Stages 2 and 3: Environmental analysis - Opportunities and threats
Once its mission and vision has been identified, the organization can now begin to look
outside the institution to ensure that the strategy aligns well with the environment. Like all
organizations, Ulundi Local Municipality needs to analyse its environment. This exercise is
imperative since municipalities are able to identiJY opportunities worth exploring and also to
identiJY threats outside the institution, which may hamper its set goals and objectives. The
environment can be divided into three main segments namely the general environment, the
operating environment and the internal environment (Robbins, 2001). The general
environment refers to factors outside the municipality which directly or indirectly affect the
municipality's operation and among them are economic factors, climatic factors,
technological developments, politics and socio-cultural aspects ofthe society. Some ofthese
factors do pose as threats to the development ofUlundi (Refer to Table 7.1).
Political decisions beyond the jurisdiction of the local and district municipalities have
exposed the non-diversified nature of the local economy. With over two-thirds of the
working class being employed in the government sector, the decision to relocate the
provincial capital and administrative functions from Ulundi to Pietermaritzburg becomes a
significant environmental concern that is considered in this proposed model to remedy the
situation.
The research further found that Ulundi is the cultural heart ofZululand, yet most residents do
not know much about the historical sites of the place. This remains an untapped
environmental resource (opportunity) capable of advancing the developmental agenda of the
study area The proposed model acknowledges the need for a marketing strategy to educate
the community about these attributes. The ignorance undermines local and overseas tourism
potential that the cultural and historical sites wield.
Stages 4 and 5: Analysis of organization's resources - Strengths and weaknesses
Unlike the general environment, the components of the operating environment have specific
and immediate implications for the institution. Hence the institution needs to consistently
monitor trends in this enviror.ment for opportunities and threats that might hamper
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