, MNG3701 ASSIGNMENT 1 SEMESTER 2 2026
DUE DATE: 24 AUGUST 2026
QUESTION 1
(a) Purpose of External Environment Analysis in Strategic Management
External environment analysis is the systematic assessment of forces outside an
organisation that may create opportunities, impose threats, or influence the
organisation’s strategic choices. In strategic management, its primary purpose is to
enable an organisation to understand changes in its operating environment and align its
resources and capabilities with emerging external conditions. Such analysis is particularly
important for organisations operating across multiple countries because political,
economic, technological, social and regulatory conditions may differ substantially between
markets.
For Vodacom Group Limited, external environment analysis is essential because the Group
operates across a diverse African footprint and is exposed to factors such as economic
volatility, currency movements, political instability, technological developments and
changing customer needs. Vodacom’s reporting recognises that the Group has operated
within a complex macroeconomic environment characterised by currency volatility,
inflationary pressures, geopolitical tensions and energy disruptions (Vodacom Group,
2025). Consequently, environmental analysis supports strategic anticipation rather than
simply allowing the organisation to react to external events after they have occurred.
(b) PESTEL Analysis of Three Macro-Environmental Factors Influencing Vodacom
Group
A suitable framework for analysing Vodacom Group’s macro-environment is the PESTEL
model, which evaluates Political, Economic, Social, Technological, Environmental and Legal
forces affecting an organisation. For Vodacom, three particularly significant factors are
DUE DATE: 24 AUGUST 2026
QUESTION 1
(a) Purpose of External Environment Analysis in Strategic Management
External environment analysis is the systematic assessment of forces outside an
organisation that may create opportunities, impose threats, or influence the
organisation’s strategic choices. In strategic management, its primary purpose is to
enable an organisation to understand changes in its operating environment and align its
resources and capabilities with emerging external conditions. Such analysis is particularly
important for organisations operating across multiple countries because political,
economic, technological, social and regulatory conditions may differ substantially between
markets.
For Vodacom Group Limited, external environment analysis is essential because the Group
operates across a diverse African footprint and is exposed to factors such as economic
volatility, currency movements, political instability, technological developments and
changing customer needs. Vodacom’s reporting recognises that the Group has operated
within a complex macroeconomic environment characterised by currency volatility,
inflationary pressures, geopolitical tensions and energy disruptions (Vodacom Group,
2025). Consequently, environmental analysis supports strategic anticipation rather than
simply allowing the organisation to react to external events after they have occurred.
(b) PESTEL Analysis of Three Macro-Environmental Factors Influencing Vodacom
Group
A suitable framework for analysing Vodacom Group’s macro-environment is the PESTEL
model, which evaluates Political, Economic, Social, Technological, Environmental and Legal
forces affecting an organisation. For Vodacom, three particularly significant factors are
