MNG4801
Assignment 2 2024
(276844) - 19 July
2024
QUESTIONS WITH COMPLETE ANSWERS
[School]
[Course title]
,MNG4801 Assignment 2 2024 (276844) - 19 July 2024
Question 2:
2.Critically analyse the macro-environment of The Shoprite Group. As part of your
analysis,you should first, provide a brief theoretical discussion of change in the
external environment.Then, critically analyse the effect of change on the factors and
forces in the macroenvironment evident in the Shoprite case study. Conclude your
discussion by advisingsenior management at Shoprite on the measures they can take
to assessmacroenvironmental turbulence.
Analyzing the macro-environment of The Shoprite Group involves examining the broader
external factors and forces that impact the company's operations, strategies, and
performance.
Theoretical Discussion of Change in the External Environment:
The external environment of a company consists of several elements, often analyzed
using frameworks like PESTEL (Political, Economic, Social, Technological,
Environmental, Legal) or STEEPLE (adds Ethical factors). Change in the external
environment refers to shifts, trends, or developments in these factors that can affect
businesses.
1. Political Factors: These include government policies, regulations, stability, and
geopolitical issues. Changes in political leadership, trade policies, or regulatory
frameworks can impact businesses through altered market conditions or
compliance requirements.
2. Economic Factors: Economic variables such as GDP growth, inflation, interest
rates, exchange rates, and consumer confidence influence consumer spending
patterns, investment decisions, and overall market demand.
, 3. Social Factors: Demographic trends, cultural shifts, lifestyle changes, and societal
values shape consumer preferences, buying behaviors, and market dynamics.
Companies need to adapt to evolving social norms to remain relevant and
appealing to their target audience.
4. Technological Factors: Advances in technology, digital innovation, automation,
and the rise of artificial intelligence impact business models, operational
efficiency, product development, and customer experience. Embracing
technological change is crucial for staying competitive and meeting evolving
customer expectations.
5. Environmental Factors: Concerns about sustainability, climate change, resource
scarcity, and environmental regulations influence consumer perceptions, corporate
practices, supply chain management, and product innovation. Companies need to
adopt eco-friendly practices and reduce their environmental footprint to mitigate
risks and meet stakeholder expectations.
6. Legal Factors: Legal and regulatory frameworks, including labor laws, health and
safety regulations, consumer protection laws, and industry-specific regulations,
shape the operating environment for businesses. Compliance with legal
requirements is essential to avoid penalties and maintain reputation and trust.
7. Ethical Factors: Increasingly, consumers and stakeholders are scrutinizing
companies' ethical standards, corporate social responsibility (CSR) initiatives, and
ethical sourcing practices. Ethical considerations can impact brand reputation,
consumer loyalty, and investor confidence.
Critically Analyze the Effect of Change on Shoprite's Macroenvironment:
In the context of Shoprite, several changes in the macroenvironment are evident:
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