MNG3701
Assignment 2
Semester 1
Due April 2026
, QUESTION 1 [15 Marks]
a) Purpose of external environmental analysis in strategic management (3 Marks)
External environmental analysis helps organisations identify, understand and monitor
forces outside their control that could affect strategy. It ensures that managers are
aware of opportunities and threats in the environment so they can adjust strategic plans
to remain competitive and avoid risks. By analysing external conditions, a company like
Vodacom is better equipped to respond proactively to changes in regulation,
technology, economy, and social trends, which supports long-term success (PESTLE
concept). (Vodacom Reports)
b) Macro-environmental analysis using a suitable model
Below is a PESTLE analysis with three relevant factors, explanations, and applications
to Vodacom.
Macro-
environmental Application to Vodacom Group
factor Explanation of the factor Limited (with evidence)
1. This includes government Vodacom must comply with regulatory
Political/Legal laws, communication frameworks in the countries it operates,
regulations, industry including spectrum allocation and
licences, and data privacy customer data protection. The FY2025
policies that affect how Integrated Report states that the
firms operate. company engages with regulators and
incorporates governance frameworks to
manage risk and uphold compliance.
(Vodacom Reports)
2. Economic Economic factors such as Vodacom’s FY2025 report notes that
inflation, exchange rates, currency volatility and economic
Assignment 2
Semester 1
Due April 2026
, QUESTION 1 [15 Marks]
a) Purpose of external environmental analysis in strategic management (3 Marks)
External environmental analysis helps organisations identify, understand and monitor
forces outside their control that could affect strategy. It ensures that managers are
aware of opportunities and threats in the environment so they can adjust strategic plans
to remain competitive and avoid risks. By analysing external conditions, a company like
Vodacom is better equipped to respond proactively to changes in regulation,
technology, economy, and social trends, which supports long-term success (PESTLE
concept). (Vodacom Reports)
b) Macro-environmental analysis using a suitable model
Below is a PESTLE analysis with three relevant factors, explanations, and applications
to Vodacom.
Macro-
environmental Application to Vodacom Group
factor Explanation of the factor Limited (with evidence)
1. This includes government Vodacom must comply with regulatory
Political/Legal laws, communication frameworks in the countries it operates,
regulations, industry including spectrum allocation and
licences, and data privacy customer data protection. The FY2025
policies that affect how Integrated Report states that the
firms operate. company engages with regulators and
incorporates governance frameworks to
manage risk and uphold compliance.
(Vodacom Reports)
2. Economic Economic factors such as Vodacom’s FY2025 report notes that
inflation, exchange rates, currency volatility and economic
