0717513144 MNB3701 REPORT 2 2023
DISCLAIMER
The MNB3701 Report 2 is framework that allow students to start their
assignment 4. It gives the steps, examples and content that must be presented
in the second report.
CONTACT NUMBER:
071 751 3144
EMAIL
Page 1 of 17
,0717513144 MNB3701 REPORT 2 2023
Table of Contents
Executive summary .................................................................................................... 3
Introduction: Resource-based view: ........................................................................... 3
The resources of Shoprite Nigeria .............................................................................. 4
Strategic implication: VRIO assessment .................................................................... 6
Implication to management ........................................................................................ 7
Challenges trading internationally .............................................................................. 8
Implication for management ..................................................................................... 11
Foreign Direct Investment (FDI) ............................................................................... 12
Conclusion ............................................................................................................... 13
References ............................................................................................................... 15
Page 2 of 17
, 0717513144 MNB3701 REPORT 2 2023
Executive summary
As the world has witnessed a rapid growth in international business over the past few
decades, Africa has been an investment destination for many business organisations
from different parts of the world. By the passage of time, some companies of African
origin have also joined the trend and expanded to other countries within the African
continent and abroad. However, in their internationalisation strategies, they face
various challenges caused by institutional differences as well as the resource
constraints, which are the most observed constraints that pose challenges on
multinational enterprises, hence determine their success or failure. In this regard, this
report is focused on the business of Shoprite, which one of South Africa’s giant retail
entity that has set up its operations in many African countries including Botswana,
Zambia and Nigeria among others. The report focuses on the operations of Shoprite
ion Nigeria, which is the selected host country, where the institutional constraints and
resource implication. Shoprite has been known as one of Africa’s largest supermarket
in retail industry offering the best quality products at the lower prices. Today Shoprite
has more than 2943 stores across the African continent. The report highlights the
importance of formal and informal institutions and proceed to appraise resources.
Introduction: Resource-based view:
According to Peng and Meyer (2019) resource-based view is another leading
perspective in international business environment that tries to answer the question of
business success or failure. According to this view, the performance and success of
an organisation is fundamentally determined by the specific resources that are owned
and controlled by an organisation. the resource-based view stands at one extreme
end against the institution-based view. While institution-based view suggest that the
success or failure of an organisation is influenced by external forces namely
institutions, the resource-based view suggests that business success in international
markets depends on the internal part of the organisation which essentially is the
organisation’s assets. According to Peng and Meyer (2019) business make key
decisions that concern alignment of firm and its resources, with the business
environment that it operates in, such that best strategic decisions are formulated from
the understanding of inside of the firm. This entails the identification of valuable
resources that essentially add value to the organisation which will then be
Page 3 of 17
DISCLAIMER
The MNB3701 Report 2 is framework that allow students to start their
assignment 4. It gives the steps, examples and content that must be presented
in the second report.
CONTACT NUMBER:
071 751 3144
Page 1 of 17
,0717513144 MNB3701 REPORT 2 2023
Table of Contents
Executive summary .................................................................................................... 3
Introduction: Resource-based view: ........................................................................... 3
The resources of Shoprite Nigeria .............................................................................. 4
Strategic implication: VRIO assessment .................................................................... 6
Implication to management ........................................................................................ 7
Challenges trading internationally .............................................................................. 8
Implication for management ..................................................................................... 11
Foreign Direct Investment (FDI) ............................................................................... 12
Conclusion ............................................................................................................... 13
References ............................................................................................................... 15
Page 2 of 17
, 0717513144 MNB3701 REPORT 2 2023
Executive summary
As the world has witnessed a rapid growth in international business over the past few
decades, Africa has been an investment destination for many business organisations
from different parts of the world. By the passage of time, some companies of African
origin have also joined the trend and expanded to other countries within the African
continent and abroad. However, in their internationalisation strategies, they face
various challenges caused by institutional differences as well as the resource
constraints, which are the most observed constraints that pose challenges on
multinational enterprises, hence determine their success or failure. In this regard, this
report is focused on the business of Shoprite, which one of South Africa’s giant retail
entity that has set up its operations in many African countries including Botswana,
Zambia and Nigeria among others. The report focuses on the operations of Shoprite
ion Nigeria, which is the selected host country, where the institutional constraints and
resource implication. Shoprite has been known as one of Africa’s largest supermarket
in retail industry offering the best quality products at the lower prices. Today Shoprite
has more than 2943 stores across the African continent. The report highlights the
importance of formal and informal institutions and proceed to appraise resources.
Introduction: Resource-based view:
According to Peng and Meyer (2019) resource-based view is another leading
perspective in international business environment that tries to answer the question of
business success or failure. According to this view, the performance and success of
an organisation is fundamentally determined by the specific resources that are owned
and controlled by an organisation. the resource-based view stands at one extreme
end against the institution-based view. While institution-based view suggest that the
success or failure of an organisation is influenced by external forces namely
institutions, the resource-based view suggests that business success in international
markets depends on the internal part of the organisation which essentially is the
organisation’s assets. According to Peng and Meyer (2019) business make key
decisions that concern alignment of firm and its resources, with the business
environment that it operates in, such that best strategic decisions are formulated from
the understanding of inside of the firm. This entails the identification of valuable
resources that essentially add value to the organisation which will then be
Page 3 of 17
