Answer to Question #114070 in Management for SANDILE Maluleke

Question

Why should MTN scan the global business environment as well as the macro environments of
Angola and Ethiopia prior to their decision to expand operation to these two countries?

Answer 1

Scanning the global business environment by a multinational is essential when expanding to a new location. MTN should scan Angola’s and Ethiopia’s business environment before starting its operations in the countries. One of the benefits of scanning the environment is that it helps understand the availability of the required resources. The organization will expand into these markets when there is availability of the needed resources such as infrastructure, technology, labor, and financing. Another benefit is that the organization will understand the opportunities in thee markets. The company should expand to these markets if there are opportunities available. Canning the environment also enables the firm to understand the threats in the market. Some of the dangers in the markets may be in the form of competitors, poor economic conditions, or harsh government regulations. Scanning the environment also helps the company to understand the political and legal requirements of the two markets. Through scanning the environment, MTN will develop the appropriate market expansion plan to enter the two markets. Threats and challenges in the market will also provide sufficient reason for the company not to venture in any of the markets.