Impact and Influence of Macro Environment
Added on 2020-12-09
19 Pages5413 Words345 Views
BUSINESS STRATEGY
Table of ContentsINTRODUCTION...........................................................................................................................1LO 1.................................................................................................................................................1P1. Analysing the impact and influence of macro environment on Vodafone and its strategies1LO 2.................................................................................................................................................5P2. Applying the ‘VRIO/VRIN’ model to analyse the strategic capabilities possessed.............5LO 3.................................................................................................................................................8P3. Porter’s Five Forces model evaluate the competitive forces of Vodafone...........................8LO 4...............................................................................................................................................10P4. Theories, concepts and models that interpret and devise strategic planning......................10CONCLUSION..............................................................................................................................14REFERENCES..............................................................................................................................15
INTRODUCTIONBusiness strategy refers to the set of decision or course of action that assist business toachieving specific organisational goal, meet the expectation of its customer and gain competitiveadvantage. Developing business strategy help in to attract consumer, strengthening performance,compete successfully, position effectively in competitive market and achieve business goal. Thestudy will analyse business strategy of Vodafone which is world's leading mobiletelecommunication company founded in 1991 and headquartered in London, they operate theirservices in the Middle East, United States, Europe, Africa and Asia Pacific. The study will startwith analysing macro environmental factor and their impact on Vodafone's business and itsstrategies, with that internal environmental capabilities and strength and weakness oforganisation will also determine. Report will apply porter's five forces model to evaluatecompetitive forces of Vodafone's market sector. Lastly some range of models, theories andconcepts will analyse to devise strategic planning for Vodafone.LO 1P1. Analysing the impact and influence of macro environment on Vodafone and its strategiesStrategy is a plan or method developed and implemented by an organisation to achievegoal and objectives (Bakan and Sekkeli, 2017). Strategy generally include; setting the objective,determining actions and plan to achieve the goal and gather and utilise resources to execute theactions. PESTLE model for environmental analysisMacro environment is a broader context that is uncontrollable and affect organisationaloperation and influence decision making process as well as affect its strategies and overallperformance. Macro environment is the condition that exist as a whole in the economy, ratherthan in specific region or sector (Policy, 2016). It includes: political, legal, social, environmental,economical and technological. PESTLE analysis is a strategic tool to analyse macro or externalenvironmental factors. It examines the influence of forces that affect Vodafone. 1
(Source: PESTLE Analysis, 2017)PoliticalPolitical force affects Vodafone's long term profitability. Vodafone operate WirelessCommunication in various country and it is an international organisation as it expose its businessto various types of political system an environment and affected by political instability ofdifferent countries. Political factors that affect Vodafone's business include; labour law, taxpolicies, political instability, rules and regulations of technology of various countries, antitrustlaws regarding wireless communication, etc. all the factors have positive as well as negativeimpact on the Vodafone's services (Booth, 2016). UK government started command of array forcommunication that affect financial activities of the organisation and also affect its development.EconomicalEconomic conditions play a critical role for telecommunication market. Vodafone'sgrowth affected from various economic forces such as; inflation rates, growth, interest rates,economic stability, etc. Exchanging in currency rates increase cost of raw material of Vodafoneand level of competition who offer services at best rates is also a big challenge for Vodafone.Economic changes have direct impact on the services and products of Vodafone and operational2Illustration 1: PESTLE Analysis Model
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