Analysis of External and Internal Environment for Vodafone

Applied Corporate
Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Analysis of external environment................................................................................................1
Internal analysis...........................................................................................................................4
Strategy evaluation.......................................................................................................................7
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Corporate strategy refers to a strategic plan which can be framed by the organizations so
that they are able to identify the different types of aims, goals and objectives which they are
required to achieve and frame specific plans for achieving this particular purpose (Andersen and
Andersson, 2017). It is a detailed roadmap and provides guidelines and directions to the
company which it can follow. In this way it can be made sure that profits can be maximized with
ease and competitive advantage can be acquired over the other companies. For this report,
Vodafone has been chosen. It is a British multinational telecommunications service company
which provides its services all over the world. In this report, specific analysis will be made on
external analysis on the business environment, analysis of resources and key competencies of the
company. Additionally, evaluation of a particular strategy with the use of SAFe criteria.
MAIN BODY
Analysis of external environment
The external environment of an organization consists of different types of forces which
have the power to create an influence on its working pattern. It can be analysed by taking the
help of the following frameworks-
PESTEL analysis-
PESTEL analysis refers to the influence which various types of factors put on the
working of a particular organization. These are different dynamic forces which are explained as
follows in the context of Vodafone-
Political factors- These factors create an influence on an organization because political
situations are fickle in nature and can change very fast (Arasti, Khaleghi and Noori, 2017). For
Vodafone, these are important because they can either increase or decrease its level of profits.
 Opportunity- If there is political stability in a country then this can create an opportunity
for Vodafone as it can increase its profits.
 Threat- If there is an increase in the overall tax rates then this will lead towards problems
for Vodafone as its profits will decrease.
Economic factors- These factors are important for an organization because economic conditions
can change quite quickly. In the context of Vodafone, they are to be taken seriously because a
boom in the economy or a slowdown can create an influence on it.
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 Opportunity- Booming economic growth in the country provides an opportunity to the
organizations. Thus it offers Vodafone an excellent opportunity to enhance its overall
level of profits.
 Threat- Increase in interest rates can create a threat for Vodafone because it can lead
towards costly loans for it.
Social factors- These factors are important and should be considered by the organizations
because social customs and traditions of the society can put an impact on it (Arbogast and
Kumar, 2018). Vodafone's managers should take them into consideration so that specific
strategies can be framed.
 Opportunity- The increase in population growth rate acts like an opportunity for
Vodafone as it can increase its turnover as well as revenues.
 Threat- Lifestyle attitudes of customers can change and thus this can create a threat for
Vodafone if its customers want to move to using other brand.
Technological factors- Technology is dynamic in nature and thus it can change very fast
influencing the organizations. In the context of Vodafone, it is crucial that it can adapt to the
changing technology quickly so that it puts positive influence on it.
 Opportunity- If the firms like Vodafone are quick in adapting to technological change
then this will create a positive impression on the minds of the customers.
 Threat- If Vodafone's managers do not show the required technological awareness then
this can create an negative influence on its overall profits.
Environmental factors- Nowadays the customers have an increased awareness towards the
environment (Awino, Machuki and Ogaga, 2017). Therefore Vodafone is required to make sure
that it uses those methods which are eco-friendly in nature.
 Opportunity- If the environmental policies of an organization are in its favour then in
this way it can make sure that it is able to put a positive impression on the minds of the
customers.
 Threat- If the government brings out such policies which are very strict then this can
cause the profits of Vodafone to decrease considerably.
Legal factors- In it, there are different types of laws, rules and regulations which should be
considered by the organization. Vodafone should make sure that it must follow them.
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