, MNG3701 ASSIGNMENT 1 SEMESTER 2 2026
DUE DATE: SEPTEMBER 2026
QUESTION 1
(a)
External environment analysis is an important part of strategic management because it
helps an organisation understand what is happening outside the business. Although a
company cannot directly control most external factors, these factors can have a strong
influence on its performance, decisions and future growth. The external environment
can create opportunities that a business can use to its advantage, but it can also create
threats that may affect its ability to achieve its goals. Therefore, organisations need to
regularly monitor changes in their external environment.
External environment analysis helps managers identify important changes before they
have a serious impact on the organisation. These changes can include developments in
the economy, new technologies, government policies, laws, social trends and changes in
customer behaviour. By understanding these changes, managers can make better
decisions and adjust the organisation’s strategy when necessary. This can also help the
organisation prepare for possible risks instead of only responding after a problem has
already occurred.
For Vodacom Group, external environment analysis is particularly important because the
Group operates across several African countries. Each market may have different
economic conditions, regulations, customer needs and technological developments.
These differences can influence how Vodacom provides its services and invests in future
growth. Analysing the external environment therefore allows Vodacom to identify
opportunities, manage threats and remain competitive. Overall, the purpose of external
environment analysis is to help an organisation understand changes around it and use
DUE DATE: SEPTEMBER 2026
QUESTION 1
(a)
External environment analysis is an important part of strategic management because it
helps an organisation understand what is happening outside the business. Although a
company cannot directly control most external factors, these factors can have a strong
influence on its performance, decisions and future growth. The external environment
can create opportunities that a business can use to its advantage, but it can also create
threats that may affect its ability to achieve its goals. Therefore, organisations need to
regularly monitor changes in their external environment.
External environment analysis helps managers identify important changes before they
have a serious impact on the organisation. These changes can include developments in
the economy, new technologies, government policies, laws, social trends and changes in
customer behaviour. By understanding these changes, managers can make better
decisions and adjust the organisation’s strategy when necessary. This can also help the
organisation prepare for possible risks instead of only responding after a problem has
already occurred.
For Vodacom Group, external environment analysis is particularly important because the
Group operates across several African countries. Each market may have different
economic conditions, regulations, customer needs and technological developments.
These differences can influence how Vodacom provides its services and invests in future
growth. Analysing the external environment therefore allows Vodacom to identify
opportunities, manage threats and remain competitive. Overall, the purpose of external
environment analysis is to help an organisation understand changes around it and use
