, MNG3701
ASSIGNMENT 1 SEMESTER 2
2026
DUE 24 AUGUST 2026
Question 1
(a) Purpose of External Environment Analysis
The purpose of external environment analysis in strategic management is to identify opportunities
and threats that exist outside the organisation's boundaries. This process is crucial because it
enables an organisation like Vodacom to align its strategy with its external context. By
understanding changes and trends in the macro-environment, a company can proactively exploit
opportunities for growth and innovation while also developing strategies to mitigate or neutralise
potential threats, ensuring it remains competitive and sustainable (Venter, 2022).
(b) Macro-Environmental Analysis of Vodacom Group
A suitable model for analysing the macro-environment is the PESTLE/G framework. This framework
helps identify the key Political, Economic, Social, Technological, Legal, Environmental, and Global
factors that can impact an organisation's strategy (Venter, 2022). Three influential factors for
Vodacom are detailed below.
Macro-environmental Explanation of the macro-environmental
Application to the Vodacom Group
factor factor
The Vodacom Group is heavily
influenced by currency volatility and
Economic forces such as inflation, interest inflation across its diverse African
rates, currency fluctuations, and economic markets. The integrated report states
growth significantly impact an that macroeconomic pressures
organisation's financial performance and associated with higher interest costs
1. Economic Factors
customer spending power. These factors and foreign exchange rate pressures
influence the demand for products and have negatively impacted Group
services and the overall cost of doing earnings. The devaluation of the
business (Venter, 2022). Egyptian pound, for example,
significantly impacted reported
revenues, demonstrating the direct
ASSIGNMENT 1 SEMESTER 2
2026
DUE 24 AUGUST 2026
Question 1
(a) Purpose of External Environment Analysis
The purpose of external environment analysis in strategic management is to identify opportunities
and threats that exist outside the organisation's boundaries. This process is crucial because it
enables an organisation like Vodacom to align its strategy with its external context. By
understanding changes and trends in the macro-environment, a company can proactively exploit
opportunities for growth and innovation while also developing strategies to mitigate or neutralise
potential threats, ensuring it remains competitive and sustainable (Venter, 2022).
(b) Macro-Environmental Analysis of Vodacom Group
A suitable model for analysing the macro-environment is the PESTLE/G framework. This framework
helps identify the key Political, Economic, Social, Technological, Legal, Environmental, and Global
factors that can impact an organisation's strategy (Venter, 2022). Three influential factors for
Vodacom are detailed below.
Macro-environmental Explanation of the macro-environmental
Application to the Vodacom Group
factor factor
The Vodacom Group is heavily
influenced by currency volatility and
Economic forces such as inflation, interest inflation across its diverse African
rates, currency fluctuations, and economic markets. The integrated report states
growth significantly impact an that macroeconomic pressures
organisation's financial performance and associated with higher interest costs
1. Economic Factors
customer spending power. These factors and foreign exchange rate pressures
influence the demand for products and have negatively impacted Group
services and the overall cost of doing earnings. The devaluation of the
business (Venter, 2022). Egyptian pound, for example,
significantly impacted reported
revenues, demonstrating the direct
