MNG4801
Assignment 2 2024
(276844) - 19 July
2024
QUESTIONS WITH COMPLETE ANSWERS
[DATE]
[Company address]
, MNG4801 Assignment 2 2024 (276844) - 19 July 2024
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.
Analyzing the macro-environment of The Shoprite Group involves examining the broader external
factors and forces that impact the company's operations, strategies, and performance.
Theoretical Discussion of Change in the External Environment:
The external environment of a company consists of several elements, often analyzed using frameworks
like PESTEL (Political, Economic, Social, Technological, Environmental, Legal) or STEEPLE (adds
Ethical factors). Change in the external environment refers to shifts, trends, or developments in these
factors that can affect businesses.
1. Political Factors: These include government policies, regulations, stability, and geopolitical
issues. Changes in political leadership, trade policies, or regulatory frameworks can impact
businesses through altered market conditions or compliance requirements.
2. Economic Factors: Economic variables such as GDP growth, inflation, interest rates, exchange
rates, and consumer confidence influence consumer spending patterns, investment decisions, and
overall market demand.
3. Social Factors: Demographic trends, cultural shifts, lifestyle changes, and societal values shape
consumer preferences, buying behaviors, and market dynamics. Companies need to adapt to
evolving social norms to remain relevant and appealing to their target audience.
4. Technological Factors: Advances in technology, digital innovation, automation, and the rise of
artificial intelligence impact business models, operational efficiency, product development, and
customer experience. Embracing technological change is crucial for staying competitive and
meeting evolving customer expectations.
Assignment 2 2024
(276844) - 19 July
2024
QUESTIONS WITH COMPLETE ANSWERS
[DATE]
[Company address]
, MNG4801 Assignment 2 2024 (276844) - 19 July 2024
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.
Analyzing the macro-environment of The Shoprite Group involves examining the broader external
factors and forces that impact the company's operations, strategies, and performance.
Theoretical Discussion of Change in the External Environment:
The external environment of a company consists of several elements, often analyzed using frameworks
like PESTEL (Political, Economic, Social, Technological, Environmental, Legal) or STEEPLE (adds
Ethical factors). Change in the external environment refers to shifts, trends, or developments in these
factors that can affect businesses.
1. Political Factors: These include government policies, regulations, stability, and geopolitical
issues. Changes in political leadership, trade policies, or regulatory frameworks can impact
businesses through altered market conditions or compliance requirements.
2. Economic Factors: Economic variables such as GDP growth, inflation, interest rates, exchange
rates, and consumer confidence influence consumer spending patterns, investment decisions, and
overall market demand.
3. Social Factors: Demographic trends, cultural shifts, lifestyle changes, and societal values shape
consumer preferences, buying behaviors, and market dynamics. Companies need to adapt to
evolving social norms to remain relevant and appealing to their target audience.
4. Technological Factors: Advances in technology, digital innovation, automation, and the rise of
artificial intelligence impact business models, operational efficiency, product development, and
customer experience. Embracing technological change is crucial for staying competitive and
meeting evolving customer expectations.
