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MNG3701 Assignment 2 Semester 1 2026 (Answer Guide) - DUE 2026
VERIFIED AND CERTIFIED ANSWERS. WRITTEN IN REQUIRED FORMAT AND WITHIN
GIVEN GUIDELINES. IT IS GOOD TO USE AS A GUIDE AND FOR REFERENCE, NEVER
PLAGARIZE. Thank you and success in your academics.
UNISA, 2025
QUESTION 1 [15 marks]
a) Vodacom Group Limited operates in a complex and dynamic external
environment across multiple African markets. Briefly explain the purpose of
external environmental analysis in strategic management (3 marks).
Introduction
Strategic management requires organisations to continuously assess and respond to
forces in their external environment that may influence performance, competitiveness,
and long-term sustainability. For multinational corporations operating across diverse
markets, such as Vodacom Group Limited, this task becomes even more critical due to
varying political, economic, social, and technological conditions across countries.
Vodacom operates in several African markets, each characterised by regulatory
uncertainty, rapid technological change, and evolving customer needs. This section
discusses the purpose of external environmental analysis in strategic management and
applies a macro-environmental analysis to Vodacom Group Limited using evidence from
its financial year ended 31 March 2025 Integrated Report. The discussion further
explains how Vodacom’s understanding of its macro-environment supports strategic
resilience and long-term value creation.
Purpose of External Environmental Analysis in Strategic Management
External environmental analysis refers to the systematic process of identifying,
monitoring, and evaluating external forces that may affect an organisation’s ability to
achieve its strategic objectives. The primary purpose of this analysis is to help
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management anticipate opportunities and threats that arise outside the organisation’s
control (Johnson, Scholes & Whittington, 2020). By understanding external trends,
organisations can align their strategies with environmental realities rather than reacting
defensively to unexpected changes.
In strategic management, external environmental analysis supports informed decision-
making by enabling organisations to recognise emerging risks such as regulatory
changes, economic instability, or technological disruption, while also identifying growth
opportunities (Pearce & Robinson, 2019). For a company like Vodacom, which operates
in highly regulated and technology-driven industries across multiple African economies,
external environmental analysis is essential to ensure strategic fit and competitiveness
(Vodacom Group Integrated Report, 2025).
Macro-Environmental Analysis of Vodacom Group Limited
A widely used framework for analysing the macro-environment is the PESTLE model,
which examines Political, Economic, Social, Technological, Legal, and Environmental
factors. This model is suitable for Vodacom because it captures the broad external
forces shaping the telecommunications and digital services sector. The discussion
below focuses on three macro-environmental factors that significantly influence
Vodacom’s strategic decision-making.
Political and Regulatory Factors
Explanation of the factor
Political and regulatory factors relate to government policies, regulatory frameworks,
and political stability that influence how organisations operate. In the
telecommunications sector, governments play a central role through spectrum
allocation, licensing requirements, data protection laws, and pricing regulations (Grant,
2022). Political decisions can either enable industry growth or impose constraints that
affect profitability and expansion.
MNG3701 Assignment 2 Semester 1 2026 (Answer Guide) - DUE 2026
VERIFIED AND CERTIFIED ANSWERS. WRITTEN IN REQUIRED FORMAT AND WITHIN
GIVEN GUIDELINES. IT IS GOOD TO USE AS A GUIDE AND FOR REFERENCE, NEVER
PLAGARIZE. Thank you and success in your academics.
UNISA, 2025
QUESTION 1 [15 marks]
a) Vodacom Group Limited operates in a complex and dynamic external
environment across multiple African markets. Briefly explain the purpose of
external environmental analysis in strategic management (3 marks).
Introduction
Strategic management requires organisations to continuously assess and respond to
forces in their external environment that may influence performance, competitiveness,
and long-term sustainability. For multinational corporations operating across diverse
markets, such as Vodacom Group Limited, this task becomes even more critical due to
varying political, economic, social, and technological conditions across countries.
Vodacom operates in several African markets, each characterised by regulatory
uncertainty, rapid technological change, and evolving customer needs. This section
discusses the purpose of external environmental analysis in strategic management and
applies a macro-environmental analysis to Vodacom Group Limited using evidence from
its financial year ended 31 March 2025 Integrated Report. The discussion further
explains how Vodacom’s understanding of its macro-environment supports strategic
resilience and long-term value creation.
Purpose of External Environmental Analysis in Strategic Management
External environmental analysis refers to the systematic process of identifying,
monitoring, and evaluating external forces that may affect an organisation’s ability to
achieve its strategic objectives. The primary purpose of this analysis is to help
, 2|Page
management anticipate opportunities and threats that arise outside the organisation’s
control (Johnson, Scholes & Whittington, 2020). By understanding external trends,
organisations can align their strategies with environmental realities rather than reacting
defensively to unexpected changes.
In strategic management, external environmental analysis supports informed decision-
making by enabling organisations to recognise emerging risks such as regulatory
changes, economic instability, or technological disruption, while also identifying growth
opportunities (Pearce & Robinson, 2019). For a company like Vodacom, which operates
in highly regulated and technology-driven industries across multiple African economies,
external environmental analysis is essential to ensure strategic fit and competitiveness
(Vodacom Group Integrated Report, 2025).
Macro-Environmental Analysis of Vodacom Group Limited
A widely used framework for analysing the macro-environment is the PESTLE model,
which examines Political, Economic, Social, Technological, Legal, and Environmental
factors. This model is suitable for Vodacom because it captures the broad external
forces shaping the telecommunications and digital services sector. The discussion
below focuses on three macro-environmental factors that significantly influence
Vodacom’s strategic decision-making.
Political and Regulatory Factors
Explanation of the factor
Political and regulatory factors relate to government policies, regulatory frameworks,
and political stability that influence how organisations operate. In the
telecommunications sector, governments play a central role through spectrum
allocation, licensing requirements, data protection laws, and pricing regulations (Grant,
2022). Political decisions can either enable industry growth or impose constraints that
affect profitability and expansion.
