MNG3702 Assignment 1 Semester 2 2026 – Due 28 August 2026

Description

MNG3702 ASSIGNMENT 1 2026
DUE 28 AUGUST 2026

Question 1 Make a judgement with regard to the absorptive capacity of The CocaCola
Company.
In
your
answer,
define
the
concept of
absorptive
capacity
and

then
make
a
judgement
with
regard to
the
absorptive
capacity
of
the
Coca-Cola

Company
based on
the four
dimensions
that
determine
the
absorptive
capacity of

an
organisation.
1.1 Definition of Absorptive Capacity
Absorptive capacity refers to the ability of an organisation to recognise the value of new,
external information, to assimilate it, and to use it to address business problems
(University of South Africa, 2020, Lesson 3, Section 3.2). According to Venter and
Botha (2022, p. 265), absorptive capacity is a strategic capability that differs from
organisation to organisation, so that some have a higher absorptive capacity than
others, and would accordingly be able to learn much faster and to adapt more quickly to
their environments, or to innovate. The concept is fundamental to organisational
learning and competitive advantage, as it determines how effectively an organisation
can acquire, process, and apply new knowledge from its external environment.