MNG3701 Assignment 2
(ANSWERS) Semester 1
2025 – DUE 14 April
2025
,Questions Marks 1 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.
Identify one major competitor of Standard Bank of South Africa and apply the four-corner analysis
to analyse the competitor. a) Briefly explain the ‘four-corner analysis.’ (1 mark) b) Identify one
major competitor of Standard Bank South Africa. (1 mark) c) Apply the four-corner analysis to
analyse the identified competitor of Standard Bank South Africa. (8 marks) 10 2 The report states
that South Africa’s credit recovery remained strained with high inflation, tighter credit conditions,
a weaker rand, interest rate increases, and an increase in unemployment. As an expert in strategic
planning, advise Standard Bank of South Africa on the reasons why the cost leadership strategy
would be an appropriate Business-level strategy to follow. Hint: a) Discuss what cost leadership
entails. (2 marks) b) Briefly discuss one practical way in which Standard Bank of South Africa can
apply the cost leadership strategy. (2 marks) c) Use the three evaluation criteria to evaluate the
appropriateness of the cost leadership strategy in relation to Standard Bank of South Africa. (6
marks) 10 3 Standard Bank of South Africa report mentions the following: “We compete head-on
with the other South African players who have a similarly broad offering as well as with new
entrants with more niche offerings”. a) Identify two of Porter’s Five Forces referred to in the above
statement. Use the identified forces to analyse the Banking industry in South Africa. (6 marks) b)
Perform a SWOT analysis for Standard Bank of South Africa. (4 marks) 10 MNG3701/101/3/2025
4 Use a suitable model to analyse the macro-environment of the banking industry where Standard
Bank of South Africa is operating. Hint: your analysis should include five (5) factors. Explain each
factor and discuss the impact of each on a company such as Standard Bank of South Africa.
INTRODUCTION
Standard Bank of South Africa (SBSA) is one of South Africa's premier financial institutions, having
a long history spanning 160 years. SBSA, a prominent player in the financial services market, has
continually contributed to South Africa's socioeconomic growth through a wide range of services
such as banking, asset management, and insurance. The bank’s commitment to driving sustainable
, economic growth is evident in its strategic priorities, which focus on innovation, operational
excellence, and financial inclusion. However, the South African financial landscape remains
competitive, with macroeconomic challenges such as high inflation, interest rates, and
unemployment, along with rising digital disruptions. This essay explores various strategic concepts
and frameworks to analyze SBSA's competitive environment, including the four-corner analysis,
cost leadership strategy, industry dynamics using Porter’s Five Forces, and the broader macro-
environment using the PESTEL model. By examining these aspects, the essay provides insights
into SBSA's current positioning and future strategic direction.
1. STRATEGIC COMPETITOR ANALYSIS USING THE FOUR-CORNER ANALYSIS
1. a) Theoretical Overview of the Four-Corner Analysis
The Four-Corner Analysis is a strategic tool designed to predict the behavior of competitors in an
industry. It examines four critical elements that influence a competitor’s future actions: drivers,
current strategy, assumptions, and capabilities. These factors help strategic leaders understand
the motivations, strategic direction, and potential decisions of their competitors, enabling them
to anticipate market movements and make informed decisions.
• Drivers refer to the internal and external factors that shape a competitor’s strategy,
including leadership objectives and business environment conditions.
(ANSWERS) Semester 1
2025 – DUE 14 April
2025
,Questions Marks 1 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.
Identify one major competitor of Standard Bank of South Africa and apply the four-corner analysis
to analyse the competitor. a) Briefly explain the ‘four-corner analysis.’ (1 mark) b) Identify one
major competitor of Standard Bank South Africa. (1 mark) c) Apply the four-corner analysis to
analyse the identified competitor of Standard Bank South Africa. (8 marks) 10 2 The report states
that South Africa’s credit recovery remained strained with high inflation, tighter credit conditions,
a weaker rand, interest rate increases, and an increase in unemployment. As an expert in strategic
planning, advise Standard Bank of South Africa on the reasons why the cost leadership strategy
would be an appropriate Business-level strategy to follow. Hint: a) Discuss what cost leadership
entails. (2 marks) b) Briefly discuss one practical way in which Standard Bank of South Africa can
apply the cost leadership strategy. (2 marks) c) Use the three evaluation criteria to evaluate the
appropriateness of the cost leadership strategy in relation to Standard Bank of South Africa. (6
marks) 10 3 Standard Bank of South Africa report mentions the following: “We compete head-on
with the other South African players who have a similarly broad offering as well as with new
entrants with more niche offerings”. a) Identify two of Porter’s Five Forces referred to in the above
statement. Use the identified forces to analyse the Banking industry in South Africa. (6 marks) b)
Perform a SWOT analysis for Standard Bank of South Africa. (4 marks) 10 MNG3701/101/3/2025
4 Use a suitable model to analyse the macro-environment of the banking industry where Standard
Bank of South Africa is operating. Hint: your analysis should include five (5) factors. Explain each
factor and discuss the impact of each on a company such as Standard Bank of South Africa.
INTRODUCTION
Standard Bank of South Africa (SBSA) is one of South Africa's premier financial institutions, having
a long history spanning 160 years. SBSA, a prominent player in the financial services market, has
continually contributed to South Africa's socioeconomic growth through a wide range of services
such as banking, asset management, and insurance. The bank’s commitment to driving sustainable
, economic growth is evident in its strategic priorities, which focus on innovation, operational
excellence, and financial inclusion. However, the South African financial landscape remains
competitive, with macroeconomic challenges such as high inflation, interest rates, and
unemployment, along with rising digital disruptions. This essay explores various strategic concepts
and frameworks to analyze SBSA's competitive environment, including the four-corner analysis,
cost leadership strategy, industry dynamics using Porter’s Five Forces, and the broader macro-
environment using the PESTEL model. By examining these aspects, the essay provides insights
into SBSA's current positioning and future strategic direction.
1. STRATEGIC COMPETITOR ANALYSIS USING THE FOUR-CORNER ANALYSIS
1. a) Theoretical Overview of the Four-Corner Analysis
The Four-Corner Analysis is a strategic tool designed to predict the behavior of competitors in an
industry. It examines four critical elements that influence a competitor’s future actions: drivers,
current strategy, assumptions, and capabilities. These factors help strategic leaders understand
the motivations, strategic direction, and potential decisions of their competitors, enabling them
to anticipate market movements and make informed decisions.
• Drivers refer to the internal and external factors that shape a competitor’s strategy,
including leadership objectives and business environment conditions.
