MNG3701
ASSIGNMENT 1
SEMESTER 2 2026
UNIQUE NO.
DUE DATE: 24 AUGUST 2026
, Strategic Planning IIIA - MNG3701
QUESTION 1
(a) Purpose of external environment analysis in strategic management
External environment analysis is the systematic examination of factors outside an
organisation that may influence its performance, strategic choices and ability to achieve
its objectives. These factors include economic, political, technological, social,
environmental and legal conditions. The purpose is to identify opportunities and
threats in the external environment so that management can make informed strategic
decisions.
For Vodacom Group, external environment analysis is particularly important because
the Group operates across several African markets that differ in terms of economic
conditions, political stability, regulations, technology adoption and consumer needs.
Vodacom’s FY2025 results indicate that its operations were affected by currency
volatility, geopolitical tensions, inflationary pressures and energy disruptions.
Therefore, analysing the external environment enables Vodacom to anticipate changes,
reduce potential risks, exploit emerging opportunities and adapt its strategies before
external changes negatively affect the organisation. It supports strategic management
by helping Vodacom remain competitive, resilient and capable of creating long-term
value for customers, shareholders and other stakeholders.
(b) Three macro-environmental factors influencing Vodacom Group's strategic
decision-making
Macro-
Explanation of the macro-
environmental Application to Vodacom Group
environmental factor
factor
ASSIGNMENT 1
SEMESTER 2 2026
UNIQUE NO.
DUE DATE: 24 AUGUST 2026
, Strategic Planning IIIA - MNG3701
QUESTION 1
(a) Purpose of external environment analysis in strategic management
External environment analysis is the systematic examination of factors outside an
organisation that may influence its performance, strategic choices and ability to achieve
its objectives. These factors include economic, political, technological, social,
environmental and legal conditions. The purpose is to identify opportunities and
threats in the external environment so that management can make informed strategic
decisions.
For Vodacom Group, external environment analysis is particularly important because
the Group operates across several African markets that differ in terms of economic
conditions, political stability, regulations, technology adoption and consumer needs.
Vodacom’s FY2025 results indicate that its operations were affected by currency
volatility, geopolitical tensions, inflationary pressures and energy disruptions.
Therefore, analysing the external environment enables Vodacom to anticipate changes,
reduce potential risks, exploit emerging opportunities and adapt its strategies before
external changes negatively affect the organisation. It supports strategic management
by helping Vodacom remain competitive, resilient and capable of creating long-term
value for customers, shareholders and other stakeholders.
(b) Three macro-environmental factors influencing Vodacom Group's strategic
decision-making
Macro-
Explanation of the macro-
environmental Application to Vodacom Group
environmental factor
factor
