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MNG3701 Assignment 2 Semester 2 2024
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MNG3701 Assignment 2 Semester 2 2024
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MNG3701 ASSIGNMENT 02SEMESTER 02 2024
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, Introduction
In today's dynamic business environment, companies must navigate a range of factors to remain
competitive and achieve sustainable growth. This involves analyzing both the micro-environment,
which directly affects a company's operations, and the broader competitive landscape.
Understanding these factors enables businesses to capitalize on strengths, address weaknesses, and
anticipate market trends. Tools such as SWOT analysis, the Five Forces Model, and PEST analysis
provide valuable insights into the micro-environment, helping companies like Liquid Ltd manage
costs effectively and respond to market demands (Ngubane, 2024). Moreover, analyzing competitors,
such as Vodacom's analysis of MTN Group through the four-corner framework, helps in predicting
competitor actions and strategizing accordingly. Differentiation strategies, exemplified by brands like
Apple, further emphasize the importance of unique features and branding in establishing a strong
market position. This essay explores these strategic approaches, the concept of capabilities, and the
importance of differentiation in ensuring long-term success for companies in various
Question 01
A
analysing the micro-environment is crucial for businesses as it directly influences their ability to
operate efficiently and meet customer demands. Understanding the micro-environment helps a
company identify its strengths and weaknesses, anticipate market trends, and adapt to changes
quickly. This level of analysis is essential for maintaining competitiveness and ensuring that a
business can respond effectively to both opportunities and threats.
Three approaches to analysing the micro-environment include SWOT analysis, which assesses
strengths, weaknesses, opportunities, and threats; the Five Forces Model, which examines the
competitive forces within an industry, including the bargaining power of suppliers and buyers, the
threat of new entrants, and the threat of substitutes; and PEST analysis, which focuses on political,
economic, social, and technological factors that impact the company. Each approach provides a
unique lens through which to evaluate the immediate business environment, helping organizations
make informed strategic decisions.
By employing these analytical tools, businesses can better understand their immediate surroundings,
optimize their operations, and align their strategies with the dynamic market conditions. This
proactive approach allows them to stay ahead of the competition, meet customer needs more
effectively, and ultimately achieve sustainable growth.
B
Strengths:
1. Efficient Cost Management: Liquid Ltd has effectively managed its costs, particularly in
administrative and selling expenses, which are relatively low compared to its revenue. This
efficiency can help maximize profit margins and support long-term sustainability.
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