MNG3701 ASSIGNMENT 1 2026
DUE AUGUST 2026
1. Conduct an internet search and access Vodacom Group’s integrated report for
the year ended31 March 2025 (FY2025).
QUESTION 1
1(a) The Vodacom Group operates in a dynamic and complex external environment
across different markets in Africa. Briefly explain the purpose of the external
environment analysis in strategic management.
The external environment consists of all external influences that affect an organisation's
decision-making and performance. According to Amos and Pearse (2022: Chapter 5), the
purpose of external environment analysis in strategic management is to
identify opportunities (favourable conditions that the organisation could use to its
advantage) and threats (unfavourable conditions that could be harmful to the
organisation).
The purpose of environmental analysis is to determine the opportunities, threats,
strengths and weaknesses of an organisation (Venter & Botha, 2019: 139). This
information is then combined with the strategic direction of the organisation to facilitate
the formulation of business-level strategies. Organisations do not exist in isolation; they
form part of a bigger environment (context) with factors that influence the organisation
(Study Guide, Lesson 4: 45).
1
, This analysis provides a foundation for strategic direction and management by enabling
the organisation to:
Take advantage of internal strengths and identified opportunities arising from the
external environment
Overcome weaknesses or neutralise identified threats found in the external
environment
Ensure strategic fit or consistency between its external and internal environments
The Vodacom Group's external environment analysis has been critical to its strategic
decision-making, as evidenced by its ability to navigate "a challenging macroeconomic
environment marked by a global health crisis, currency volatility, geopolitical tensions,
inflationary pressures and protracted energy disruptions in South Africa" (Vodacom
Integrated Report, 2025: 19). The Board actively engages with advisors to remain
informed of global and local developments (Vodacom Integrated Report, 2025: 14).
1(b) Macro-Environmental Analysis of Vodacom Group Using PESTEL-G
The PESTEL-G model (Political, Economic, Socio-cultural, Technological,
Environmental/Legal, and Global factors) is a suitable framework for analysing the
remote/macro-environment (Amos & Pearse, 2022: Chapter 5). According to the Study
Guide (Lesson 4: 47), the organisation has no control over the remote environment and
can only react to what happens in this environment. The purpose of analysing the remote
environment is to identify opportunities and threats that are relevant to a particular
organisation.
2
DUE AUGUST 2026
1. Conduct an internet search and access Vodacom Group’s integrated report for
the year ended31 March 2025 (FY2025).
QUESTION 1
1(a) The Vodacom Group operates in a dynamic and complex external environment
across different markets in Africa. Briefly explain the purpose of the external
environment analysis in strategic management.
The external environment consists of all external influences that affect an organisation's
decision-making and performance. According to Amos and Pearse (2022: Chapter 5), the
purpose of external environment analysis in strategic management is to
identify opportunities (favourable conditions that the organisation could use to its
advantage) and threats (unfavourable conditions that could be harmful to the
organisation).
The purpose of environmental analysis is to determine the opportunities, threats,
strengths and weaknesses of an organisation (Venter & Botha, 2019: 139). This
information is then combined with the strategic direction of the organisation to facilitate
the formulation of business-level strategies. Organisations do not exist in isolation; they
form part of a bigger environment (context) with factors that influence the organisation
(Study Guide, Lesson 4: 45).
1
, This analysis provides a foundation for strategic direction and management by enabling
the organisation to:
Take advantage of internal strengths and identified opportunities arising from the
external environment
Overcome weaknesses or neutralise identified threats found in the external
environment
Ensure strategic fit or consistency between its external and internal environments
The Vodacom Group's external environment analysis has been critical to its strategic
decision-making, as evidenced by its ability to navigate "a challenging macroeconomic
environment marked by a global health crisis, currency volatility, geopolitical tensions,
inflationary pressures and protracted energy disruptions in South Africa" (Vodacom
Integrated Report, 2025: 19). The Board actively engages with advisors to remain
informed of global and local developments (Vodacom Integrated Report, 2025: 14).
1(b) Macro-Environmental Analysis of Vodacom Group Using PESTEL-G
The PESTEL-G model (Political, Economic, Socio-cultural, Technological,
Environmental/Legal, and Global factors) is a suitable framework for analysing the
remote/macro-environment (Amos & Pearse, 2022: Chapter 5). According to the Study
Guide (Lesson 4: 47), the organisation has no control over the remote environment and
can only react to what happens in this environment. The purpose of analysing the remote
environment is to identify opportunities and threats that are relevant to a particular
organisation.
2
