Semester 1 2026 - DUE 2026; 100% Correct solutions and
explanations.
QUESTION 1
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.
External environmental analysis in strategic management involves
systematically examining the forces and trends outside an organisation
that influence its strategic positioning, performance, opportunities and
risks. The purpose of this analysis is to help managers understand the
macro-environmental context — including political, economic, social,
technological, legal and environmental (PESTLE) factors — and the
competitive forces that shape industry dynamics. By scanning,
monitoring and interpreting these external forces, organisations can
identify opportunities to leverage (such as emerging markets or new
technologies) and threats to mitigate (such as regulatory changes,
economic downturns, or disruptive competitors). This insight enables
proactive strategy formulation, informed decision-making, and
alignment of organisational goals with external realities rather than
reacting only when changes occur. External environmental analysis also
supports risk management, resource allocation, stakeholder
engagement, and long-term sustainability by highlighting issues that
could fundamentally alter competitive conditions or stakeholder
expectations.
In the context of Vodacom Group Limited, the FY2025 integrated and
ESG reports reflect how external environmental analysis underpins the
Group’s strategic management approach. Vodacom explicitly recognises
that it operates in a dynamic external environment across various
African markets characterised by diverse regulatory regimes, economic