MNG3701
Assignment 2
Semester 1
Due April 2026
, QUESTION 1 [15 MARKS]
a) Purpose of External Environmental Analysis in Strategic Management
The purpose of external environmental analysis in strategic management is to identify
and understand external factors that may influence an organisation’s performance and
strategic choices. It helps managers recognise opportunities that can be exploited and
threats that need to be managed. By analysing the external environment, organisations
can align their strategies with changing conditions, reduce uncertainty, and make
informed long-term decisions. This process supports proactive rather than reactive
strategic planning.
b) Macro-Environmental Analysis of Vodacom Group Limited
Model used: PESTLE framework
Only three macro-environmental factors evident in Vodacom’s FY2025 Integrated
Report are analysed, as required.
Macro-
environmental Application to Vodacom Group
factor Explanation of the factor Limited
Economic Economic conditions such as Vodacom operates in several African
factors inflation, exchange rate economies that experienced
volatility, and consumer inflationary pressure and currency
affordability affect depreciation during FY2025. The
purchasing power and Integrated Report notes that these
business costs. In emerging conditions affected consumer
markets, economic instability affordability and service revenue
can limit consumer spending growth. Vodacom responded by
on non-essential services. focusing on cost management,
Assignment 2
Semester 1
Due April 2026
, QUESTION 1 [15 MARKS]
a) Purpose of External Environmental Analysis in Strategic Management
The purpose of external environmental analysis in strategic management is to identify
and understand external factors that may influence an organisation’s performance and
strategic choices. It helps managers recognise opportunities that can be exploited and
threats that need to be managed. By analysing the external environment, organisations
can align their strategies with changing conditions, reduce uncertainty, and make
informed long-term decisions. This process supports proactive rather than reactive
strategic planning.
b) Macro-Environmental Analysis of Vodacom Group Limited
Model used: PESTLE framework
Only three macro-environmental factors evident in Vodacom’s FY2025 Integrated
Report are analysed, as required.
Macro-
environmental Application to Vodacom Group
factor Explanation of the factor Limited
Economic Economic conditions such as Vodacom operates in several African
factors inflation, exchange rate economies that experienced
volatility, and consumer inflationary pressure and currency
affordability affect depreciation during FY2025. The
purchasing power and Integrated Report notes that these
business costs. In emerging conditions affected consumer
markets, economic instability affordability and service revenue
can limit consumer spending growth. Vodacom responded by
on non-essential services. focusing on cost management,
