Applied Corporate Strategy: Vodafone Plc

APPLIED
CORPORATE
STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................1
EXTERNAL ANALYSIS................................................................................................................1
PESTLE Analysis........................................................................................................................1
Porter's Five Forces Analysis......................................................................................................3
INTERNAL ANALYSIS.................................................................................................................5
TOWS Framework......................................................................................................................5
Value Chain Model.....................................................................................................................6
VRIO...........................................................................................................................................7
EVALUATION................................................................................................................................8
SAF Framework..........................................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Corporate Strategy refers to a combination of all the procedures, processes and
techniques which an organisation uses in order to gain competitive edge within the marketplace,
along with enhanced sustainability (Zerfass, and Viertmann, 2017). Furthermore, it is necessary
that organisations develop and apply such strategy to gain a better market position and higher
scope of profitability and revenue. Hence, in this relation, the report below is based on Vodafone
Plc, which is one of the most recognised and preferred telecommunication organisations in the
United Kingdom. The assignment would be focussing on the acquisition by the company of
European Liberty. Moreover, a detailed external environment analysis would be covered within
the report, along with an internal analysis to find out the firm's internal strengths, weaknesses
and capabilities. In addition, the report would also be addressing evaluation of its strategy of
acquisition through application of SAF Criteria.
EXTERNAL ANALYSIS
PESTLE Analysis
One of the most important considerations of a business organisation is that they are
required to analyse their external business environment which actively or passively influence the
working and functioning of a company. Hence, in this relation, below is an application of
PESTLE analysis in context of Vodafone which would be helping in identifying opportunities
and threats:
 Political:
This is one of the important factor in the external environment and industry as a whole is
influenced through factors available in the political environment of UK. Introduction of BREXIT
brings huge amount of instability in the political environment of telecommunication sector in
UK. In the present time telecommunication services has turned out to become necessary services
in different sectors such as education, employment and all business ventures. Political instability
that BREXIT has introduced in UK has hampered different businesses. Establishment of new
businesses and expansion of current business become quite unreasonable. Instability in the
businesses are termed as an threat as in long run all the activities will be suffered. In order to
cope with the political threat in UK business organisations like Vodafone may acquire other
organisation to become more stable (Zhu, and Chen, 2015). As each organisation is strong at
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some factor and by acquiring such organisation which is strong in area in which Vodafone is
lacking then this instability can be minimised.
 Economical:
Their are several factors combined to make a economy work as desired and targeted.
Certain economical factors such as foreign exchange rate, inflation rate, rate of interest and
savings possess grate impact on the economy. These factors may generate positive or negative
impact on the economy. For example- Tourism industry is contributing 217 Billion British
Pounds in UK and providing huge amount of employment opportunities. Economy of UK is
facing grate amount of deflection due to BREXIT. Telecommunication industry is getting threat
with this unstable economical condition of UK's economy. When rate of Pound is decreasing
then purchasing power and capital contribution of businesses in telecommunication sector is
affected in negative manner. Growth rate of telecommunication sector is decreasing and due to
high rate of inflation organisations like Vodafone is suffering huge amount of losses. As rate of
Pound is decreasing and Vodafone while dealing at global level is facing huge amount of losses.
This issues can be controlled to a certain level by merging two organisations to become more
financially viable.
 Social:
Their are number of social factors that creates a grate impact on telecommunication
business in UK. Age distribution, change in taste and preference of consumers, consumer buying
pattern, level of education and income level are some of major social factors that affects business
of organisation like Vodafone in UK. In UK population which uses services provided by
telecommunication organisations is increasing with higher rate as usage of internet and mobile is
boosted. High demand, preferable age distribution and favourable change in taste and preference
of consumers brings a growth opportunity for business. To grab this opportunity in better and
preferable manner two or more organisations can join their hands. Providing more technological
services with this merger will provide better services to consumers in the industry and generate
better results.
 Technological:
These factors are related to all the technological advancements within the overall country
that has a direct impact on the telecommunication sector of the UK. Hence, in this context, there
are certain technologies such as SD-WAN, along with AI and Automation, that could be
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