, Questions 1 a) Explain the importance of analysing the micro-
environment. Briefly explain any three approaches that can be
used to analyse the micro-environment. b) Use the information in
the case-study to Identify two strengths and two weaknesses. 10
MNG3701/101/3/2024 27 2 Strategic leaders can analyse a
particular competitor in the industry in detail by applying the four-
corner analysis to predict what a particular competitor will do in
the future. a) Briefly explain ‘the four-corner analysis’
Question 1
a) Importance of Analyzing the Micro-Environment
Analyzing the micro-environment is crucial for several reasons:
1. Understanding Market Dynamics: It helps businesses
understand the immediate factors that affect their operations,
such as competitors, customers, suppliers, and
intermediaries.
2. Identifying Opportunities and Threats: By analyzing these
factors, businesses can identify opportunities to exploit and
threats to mitigate.
3. Improving Strategic Planning: It provides critical insights
that inform strategic planning and decision-making
processes, ensuring that strategies are relevant and
responsive to current market conditions.
4. Enhancing Competitive Advantage: Understanding the
micro-environment allows businesses to develop competitive
strategies that can give them an edge over their rivals.
Approaches to Analyze the Micro-Environment
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