MNG4801 Assignment
2 (COMPLETE
ANSWERS) 2024
(276844) - 19 July
2024; 100% TRUSTED
workings,
explanations and
solutions.
ADMIN
[COMPANY NAME]
, 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. <Your answer
must not exceed 2 ½ pages> Total: [20]
Theoretical Discussion of Change in the External Environment
In strategic management, the macro-environment refers to the external
forces and factors that affect an organization's ability to operate
effectively in its market. These forces are typically analyzed using the
PESTEL framework, which includes Political, Economic, Social,
Technological, Environmental, and Legal factors. Changes in the macro-
environment can profoundly impact business operations, necessitating
continuous monitoring and adaptive strategies to ensure organizational
resilience and competitive advantage.
• Political Factors: Changes in government policies, trade
regulations, and political stability can affect market conditions and
operational costs.
• Economic Factors: Economic cycles, inflation rates, and
exchange rates influence consumer purchasing power and business
profitability.
• Social Factors: Demographic shifts, cultural trends, and changes
in consumer behavior impact market demand and brand
perception.
• Technological Factors: Advances in technology can disrupt
industries, requiring firms to innovate and adapt to maintain
relevance.
