Strategic Management Approaches of Vodafone Telecom

This report discusses the strategic management approaches adopted by Vodafone Telecom, a UK-based telecommunications company. It explores the company's strategies, interventions, and technology upgrades, as well as the driving forces behind its success. The report also highlights the criticisms and challenges faced by Vodafone in implementing its strategies. Overall, it provides insights into the strategic management practices of Vodafone Telecom.

RUNNING HEAD: APPLIED MANAGEMENT
0
Applied Management

APPLIED MANAGEMENT 1
Executive Summary
This report is based on strategic management approaches which are provided by Vodafone
telecom. It is UK based company and has huge widespread branches across the world. The
company change its strategies from time to time and implement them. The radical change in
its strategies has a major role in upbringing and its impacts on whole organization with its
strategy formulations. Vodafone is a telecommunication company with its significant role in
UK. The theories and approaches which are used by Vodafone have emerging impact with
its formation as it is subsidiary company of Racal Electronics Plc. Though, Vodafone with its
telecommunications has widespread network all over the world but with the implementations
of its strategies they have changed according to the environment with its competitors. The
different driving forces which are adopted by Vodafone are mentioned below and new
development programmes, embedding strategic changes to form in routinized activities is a
major organizations success. As concluded, Vodafone has applied different strategies with
its interventions and Upgradation of its technology in the whole scenario.

APPLIED MANAGEMENT 2
Contents
Executive Summary...................................................................................................................1
Part -1.........................................................................................................................................3
Literature Review...................................................................................................................3
Part -2.........................................................................................................................................4
Introduction............................................................................................................................4
Approaches.............................................................................................................................5
Criticism to Approaches.........................................................................................................7
Interventions And Developments...........................................................................................8
Restructuring Rapid Expansion And Upgradation Of Technology.......................................8
Performance Indicators........................................................................................................10
Conclusions..........................................................................................................................10
Bibliography.............................................................................................................................11

APPLIED MANAGEMENT 3
Part -1
Literature Review
Literature review about the strategic planning reveals that this practice is most widespread
practice and popular also in all the sectors of the organizations. With the flow of strategic
planning, it is necessary to make good plans of strategies, that guides with development and
implement these strategic plans. Strategic management includes variant steps that results in
scan the environment from where we can take information then select relevant data and then
build the strategic models, test the consequences and then put them all into action (Cray,
1998). Effective leadership has a major role in implementing of strategies, models and with
development.
Amazon is an online leading retailer and drives his strengths from three pronged strategic on
cost leadership and enables SWOT practices in their management structure. The
emergence of strategies in the management can be easily traced with the introduction of
bring an organization in external expectations and all the components of internal state and
when they combines together for implementation of policies in structure of the organization.
The framework credits with Albert Humphrey have tested this approach in 1970s with the
name Stanford Research Institute. This is developed for business and SWOT analysis has
adopted by different organizations that can make decisions. The SWOT framework helps to
build external and internal analysis with structured matrix that has a component of strengths,
opportunities, weakness and threats in and organization (Sanjoy Bose, 2015). Organizations
adopt strategic management framework for long period of time in field of management. In
SWOT, there is no investment required and with some special skills the strategies can be
formulated. However with SWOT analysis, it is been criticised because of simplicity,
indiscriminate lists that involved typical procedures guidelines, which develops misleading
results in organization where strategic management process strives with less creativity
(Valentin, 2001).
Strategic planning starts with shorten the planning cycle so that plan is not out of that time.
When the planning process is less formal with flexibility then it results in involving as much
participants that are in top level management who are imposed in the organization. There is
organization which focus on adjust plans that exists, which is experimental and provides
good information with learning attributes. An industrial organization is the industry economics
which is more emphasizes on performance of external environment with its external
determinants (Kong, 2010). There are models which help as firms industry are identified with
relevant strategically resources and the strategies they pursue. These models have

APPLIED MANAGEMENT 4
resources in industries that are heterogeneous because when organizations adopt strategies
which are more dynamic to follow in the organization. The main criticism focuses
determinants of environmental in the performance of organization are missing with different
organizations as managers contribute with their capabilities in the organization (Barney,
1991).
Knowledge based view is a model of strategic management process that has an economic
significance on knowledge. Tacit knowledge refers to non-verbalized and unarticulated that
is not easily expressed and there is no formation. Explicit knowledge is in writing or verbally
expressed in reference to computer programs or patents (Ricardo Chiva, 2005). Both these
knowledge are exist in groups or organization that are able with effectiveness to use
knowledge and combine its natural resources. The main criticism of this theory that both
these knowledge defines commodities and there is static knowledge that control in most
physical resources that do not help organization (Francis Deinmodei W. Poazi, 2017).
Verizon and Philips electronics are the most popular companies who use balance score card
and consistently benefitting from it. The balance score card which helps company to
implement and provides direction where employees create values within their roles. Another
perspective with strategic planning deals with concepts of balanced score card, which is
developed by Kaplan and Norton in their belief of strategic planning, learning and growth and
financial performances. The balance scorecard is a system that involves utilization and
analysis of the various performances which are developed for all these perspectives. The
main criticism of this practice is there is high implementation of rates that consider practices
in balance scorecard models and variations in practices and interpretations. The main
observations that transforms its strategies in performances with tangible measures and
performances indicators and find faults in the approach to assist managers in critical
success factors (Emad A. Awadallah, 2015).
Effective planning in the strategies that management requires is decide by what an
organization can do to achieve various new strategies in the working culture. With this in
mind, the tools and techniques are discussed as factors which retain a workforce with
requisite skills and knowledge. The literature review will be more selective rather than
exhaustive and it covers planning strategically with public and private sector, however the
main focus on strategic planning in public sector and in private firms. To execute effective
strategy managers also depend on the organizations skills and control systems where firms
embrace functional and matrix structures in implementing organization strategies. Finally,
the legal form which business undertakes is an important decision with implied firm
organization structure.

APPLIED MANAGEMENT 5
Part -2
Introduction
The world leading telecommunications mobile company named as ‘Vodafone Group Plc.’
has a significant presence in Asia pacific, Europe and United States. The main subsidiary of
this group operates under name brand ‘Vodafone’. At United States, this group is more
associated to undertake and operates as name in Verizon Wireless. The services which are
provided by Vodafone group are mobile connectivity, mobile voice communications, video
messaging and pictures and fixed broadband offerings to fulfil and meet the requirements of
each segment for large number of customers. Mobile applications, Social products,
messaging services, Vodafone live, USB modems are the special services which are
provided by the company for its customers.
Vodafone was formed in the year 1984 as subsidiary of company Racal Electronics Plc. It is
demerged completely with the name from Racal Electronics and separately become an
independent formed company which is named Vodafone Group Plc in year September 1991.
Now it is public limited company with its footprints in 32 countries across the world and 19
countries where they have fixed operations. Vodafone group enterprise is a service provider
for around 1400 world largest business and hosting services are provided to around 1200
enterprise business and to private sectors (Vodafone Group Services, 2017).
Vodafone CEO and MD are moving towards radical changing in its strategies not for telecom
but for all industries. Digitalization and Lot will surely impact industries across the board and
that results in major changes in the strategy implementations in the organizations. Vodafone
as a telecom company provides data to critically analyse layers which brings each
technologies as primary based technologies (People Matters, 2018).
Approaches
The dissertation will concentrate on concept of strategic management of Vodafone Group
plc. Business strategy is foundation and core competencies of successful business where
implementation and appraisal of different strategies are adopted. The objectives and goals of
a company are always valid for its operations and the vision is based to lead in the industry
with responds to public concerns about the health leading mobile phones and encouraging
others people to follow. It incorporates strategic changes when there is extensive or real
need which happened to take place in the organization.
 Business Model – This model enables with sustain our crucial investments in most
superior collective infrastructure of gigabit, delivers more positive customer perceived

APPLIED MANAGEMENT 6
experience which drives our revenue growth and benefits to society. The substantial
opportunity raise to improve the real aspects of business model with the help of
digitalisation this allows to reinvest and to provide major attractive returns to all
shareholders. This leads to support 4G networks and spectrum deep positions,
sustained reinvestment, improving cash flows, growing revenue streams and
opportunity in digital transformations. The digital programme of Vodafone is the next
upcoming step in strategic development and that with generation of incremental
revenue and cost opportunities. The main aim of this business model is to move
digital customer experience, simpler automated operations and data driven
decisions. The dividend has marked its past three year percentage and key holder to
returns along with share performance of the price (Vodafone, 2019).
 Network Leadership – The continuation of evolving 4G networks towards providing
gigabit speed data, improved responses, increased network capacities and new
services capabilities. The enhancements of these networks deliver range of
advanced technological solutions which provide their customers with most excellent
experience with users. Example as they are now deal to roll in massive MIMO
(multiple output and input) antennas in all the markets. The changed fundamentally in
their way and transmit radio signals, their multiple beams with radiates of signal is
assigned to a unique group or user. It provides more reliable user experience and
has benefitted to increase the size capacity by continuous efficiency of spectrum.
The creation of NGN footprints covers 107 million households including Vodafone
Ziggo with 7 million are through strategies partnerships with less wholesale rates in
(Vodafone Group Plc., 2019).
 Differentiate Strategy – The company main objectives is to minimise the cost
produced in the industry. The main difference is about charging premium price that
surely covers production additional costs and that results in giving customers wide
reasons to prefer the product with others brand. The main criticism of differential
strategy is that when Vodafone came up and launched the I phone services and
when people are switching they have charged high from their competitors. Charging
higher results in providing free Vodafone to Vodafone calls for some period of time
and better strengths with the network to other competitors (Vodafone's Flexible
Competitive Advantage, 2014).
 Cost Leadership – This strategy provides company to think and aim within small
number of market that target market segments. Vodafone has introduced one net,
and hosted mobile voice services and fixed services for small medium enterprises.
This change is regarded as very effective change for Vodafone customers, as
Vodafone model has a strategy of charged per month, per user and then claims the

APPLIED MANAGEMENT 7
total One Net Solutions to 15 per cent to 20 per cent cheaper than other small
medium enterprise for typical services
 Customer Experience Excellence – This is the marketing strategy for service
differentiation and for Vodafone brand. This enables them to delivers differentiated
experience with users and builds network for leadership position. There initiative with
connectivity is smart and that provides customers with protection of security. To
promise customers with to ensure for their all money back if all network fails to collect
their hopes within the month of used interface. This excellence measures real time
relevant reward programmes and implemented in 18 markets via Vodafone website
(Adey, 2019).
 Fit for Growth Strategy – It is the comprehensive structure cost program designed
to form and operates margin expansion and operating leverage across the group.
This program uses external mainstream of benchmarks to determine various
opportunities of cost saving both of local market also.
 Digital Vodafone – This program developed and strengthens existing experience of
customers with digital world. There is a use of data analytics tool to provide
personalized offers, proactive and for customers optimising the market efficiency that
improves direct channel mix for long period of time. Digital world in Vodafone will
enhance the deployment of new capabilities in digital world and financially cost
cycles for new legacy billing. In future, they will be using chatbots and digital agents
which rapidly developed artificial technology and that will be shared on a group basis
(Vodafone, 2019).
So, these are some recent approaches which are followed by Vodafone Company. This
enhances the contribution to society in way that builds strong relationship with its customers
and goodwill in the market for long duration. These strategic management approaches in
Vodafone Group reaches its expansion with wide thinking and interventions from long period
of time (Vodafone Group Plc, 2018).
Criticism to Approaches
 Strategies which make Vodafone to changed its structure and underpinned the
strategy of the organization results in failing to delivers in last six months. Vodafone
struggles in UK has continue fell with nearly five per cent during last quarter.
Enterprises revenue which fall across the company mobile arm and 5.2 per cent drop
in servicing of mobiles revenues blamed for the fallout from handset financing from
recent time (Moree, 2018).

APPLIED MANAGEMENT 8
 Vodafone has struggled and suffered poor results in consumer business in UK. There
is high profile billing reasons that results in frustrated customers. But with the decline
in third quarter, it has contributed to pressure of prices in the enterprise market. It
results in losing its own customers as customers are switching to other brand (Fildes,
2017).
 The main criticism starts when there are high churn rates that are faced by vodafone.
This may be due to inability that locked the customers for long duration of
commitment plans.
 Vodafone UK struggle with 4.8 falls in the percentage over past three months. For
the past months, Vodafone reaches to struggle in its traditional strongholds with
difficult regulatory environments, intense competitions and falling legacy revenue
contributed to disappointing performances (McCASKILL, 2018).
Interventions And Developments
 The company believes market purchase that agree to do so in its future outcomes
and purchase of its own shares in general meetings. To enter into various
transactions with significantly impact with development of group there are various
mergers, restructuring the size of the business and rapid expansion.
 The communications with merger has completed on year 1999 and dated as 30
June. The company results to change its named to Vodafone Air Touch Plc in year
1999 but again reverse with former named as Vodafone Group Plc. on 28 July 2000.
 The acquisition which was completed on 12 April, we acquired business in Italy and
Germany which increases our indirect holding in society. The major acquisition of
companies who controlled interests at Vodafone India Limited had formerly acquires
and named as Vodafone Essar Limited. On date 13 September and year 2013, we
acquire 76.57 per cent in Kabel Deutschland holds AG at Germany for wide cash
consideration at continuous of 5.8 billion in number. We acquire entire share capital
of Grupo Corporative in Spain with total consideration which includes associated of
net debt acquired number of 7.2 billion. On March 2017, the announcement to most
Combine Company with Vodafone India which excludes its 42 per cent stakes in
more Indus towers with cellular idea which is continuous listed on India stock
exchange.
 Vodafone, Idea and Bharti Airtel Limited announced the combination of merger with
Indus Tower Limited to Bharti Infratel Limited, which results in creating a combination
company that owes to respective business at Indus Towers. Vodafone and Bharti
Airtel ensure to control jointly combined company, in new shareholders agreements.
This is the practice on date 25 April 2018 (Anon., 2018).

APPLIED MANAGEMENT 9
Restructuring Rapid Expansion And Upgradation Of Technology
Vodafone cash infusion states that there is 4G expansion in the fuel FDI in telecom
to all time increase in the market. Foreign direct investment has increased India in
telecom sector has crossed more than 10 billion in its first seven months of financial
year and that in large mega investment by Vodafone Plc (Jain, 2016).
The introduction of 5G is expected to delivers real network with less than 20
milliseconds for all the consumer applications, virtual reality and improving the
experiences for applications such as gaming and augmented (Vodafone Group Plc.,
2019). The European market is approaching a turning point in its strategy with supply
and demand, regulations to be followed and economic development. Vodafone uses
a combo of advanced technologies such as dynamic spectrum reframing to achieve
expansion in its countrywide data capacity and 4G coverage and data capacity to
defend its market against Bharti Airtel and Reliance Jio Infocomm. Vodafone idea of
recent merger of Idea cellular and Vodafone India expects to come with blend
technologies to expand 4G population coverage to 80 per cent in 2020 from 50 per
cent now and boost data capacities by three times of its current level. Analysts
stated that there is Vodafone Idea optimism that focuses on 4G network expansion
and they have launched minimum recharge plans for their customers (Parbat, 2018).
Vodafone Company is more confident for its sub brand as with mobile network which
is designed for specifically that grows its market share among young generation of
people. Vox will offer sim tyll 15 GB for people who are aged less than 25 and under.
Their plans focus on offerings more and free data to key apps social media apps like
twitter. Meaning users may save their future time, allowances for other staff such as
internet browsing and emails. It also operates more like pay - as you go deals which
establish more people to connect and young people eventually cancel their contracts
at any time. Vodafone has launches Yorn, a brand dedicated to people who are less
than 25 with massively successful and results to grow 60 per cent market with their
share segment (Hobbs, 2017).
The mobile giant has always streamlined customer experience with more
engagement and by extends to the all remit of chatbots TOBi. Vodafone originally
launches its chatbots inn last April to improve service experience of its customers
and offers to advice on sim only plans of price. The chatbots pops up same as

APPLIED MANAGEMENT 10
messenger app which shows preselected cards across bottom and raise to ask
questions about what customers are expecting to pay its price. It guides to most
preferable products and it is capable to answer questions about those products
(Tesseras, 2018).
Performance Indicators
 Monetary benefits are not only attractions for all the employees; they sometimes
need training and development benefits to sustain the environment.
 Performance management tool is a tool that describes employee performances and
then it’s compared to remaining employees of the organization. The managers at top
level should always motivate the customers to build its growth and make proper
strategies in the environment.
 When strategies are implemented then there is proper survey of the methods and
tools which are used, and if all these tools and techniques are able to execute for its
decisions.
Conclusions
Though Vodafone is an international telecom sector in whole world but with the impact of
strategies formulation and approaches which we have studied will have to be more
implemented in the whole process in the organizations. The strategies are the core concepts
with effective techniques and tools that helped the organization for future course of actions.
The various leadership skills and approaches used in Vodafone have changed the whole
scenario with rapid changes and with more development in interventions and introduction of
new technology. The report concludes that effective organization and positive strategy
formulations results in international development in organization strategies.

APPLIED MANAGEMENT 11
Bibliography
Adey, G., 2019. Customer Service Excellence. [Online] Available at:
https://www.vodafone.com/business/news-and-insights/blog/gigabit-thinking/cxx-is-the-only-
sustainable-differentiator-in-business-heres-why#form-content [Accessed 5 May 2019].
Anna, A., 2019. Strategic Management Tools and Techniques. [Online] Available at:
https://www.cjournal.cz/files/193.pdf [Accessed 7 May 2019].
Anon., 2018. Merger of Bharti Infratel and Indus Towers: creating a listed pan-India tower.
[Online] Available at: https://www.bharti-infratel.com/cps-portal/web/pdf/Press%20Release
%20Bharti%20Infratel%20&%20Indus%20Towers%20merger%2020180425.pdf [Accessed
7 May 2019].
Ashe-Edmunds, S., 2019. Strategic Mangement Approach To Decision Making. [Online]
Available at: https://smallbusiness.chron.com/strategic-management-approach-
decisionmaking-76006.html [Accessed 7 May 2019].
Bagher Asgarnezhad Nouri, M.S., 2017. Strategic Management Tools. Academy of Strategic
Management Journal , 16(2017).
Barney, J., 1991. Firm Resources and Sustained Competitive Advantage. [Online] Available
at: http://sci-hub.tw/https://doi.org/10.1177%2F014920639101700108 [Accessed 27 April
2019].
Cray, D..M., 1998. Making sense of managing culture. [Online] International Thomson
Publishing Press, London [Accessed April 2019].
Emad A. Awadallah, A.A., 2015. A Critique of the Balanced Scorecard as a Performance
Measurement Tool. [Online] Available at:
https://ijbssnet.com/journals/Vol_6_No_7_July_2015/9.pdf [Accessed 27 April 2019].
Fildes, N., 2017. Vodafone lowers expectations for profit growth. [Online] Available at:
https://www.ft.com/content/af350b46-e925-11e6-967b-c88452263daf [Accessed 6 May
2019].
Francis Deinmodei W. Poazi, J.O.T.-A.M.F., 2017. The Resource-Base View of Organization
and. [Online] Available at: https://waset.org/Publications/the-resource-base-view-of-

APPLIED MANAGEMENT 12
organization-and-innovation-recognition-of-significant-relationship-in-an-organization/
10006806 [Accessed 27 April 2019].
Hobbs, T., 2017. Vodafone insists it ‘isn’t stereotyping’ millennials by launching youth-only
brand Voxi. [Online] Available at: https://www.marketingweek.com/2017/09/06/vodafone-
defends-voxi-launch/ [Accessed 7 May 2019].
Ireland, M.H.R.D., 2017. The Blackwell Handbook Of Entrepreneurship. The Intersection of
Entrepreneurship and Strategic Management Research.
Jain, U., 2016. Vodafone cash infusion, 4G expansion fuel FDI in telecom to an all-time high.
[Online] Available at: https://www.livemint.com/ [Accessed 7 May 2019].
Jurevicius, O., 2013. Strategic Management & Strategic Planning Process. [Online]
Available at: https://www.strategicmanagementinsight.com/topics/strategic-planning-
process.html [Accessed 7 May 2019].
Kong, E., 2010. Analyzing BSC and IC’s. [Online] Available at:
http://sci-hub.tw/https://doi.org/10.1108/14691931011064554 [Accessed 28 April 2019].
McCASKILL, S., 2018. Vodafone makes broadband gains but UK revenues fall again.
[Online] Available at: https://www.silicon.co.uk/networks/broadband/vodafone-uk-results-
227859 [Accessed 5 May 2019].
Moree, M., 2018. Vodafone UK performance suffers despite broadband growth. [Online]
Available at: https://www.techradar.com/news/vodafone-uk-performance-suffers-despite-
broadband-growth [Accessed 6 May 2019].
Opere, B.M., 2017. Strategic Mnagement Tools, Structure. December. p.58.
Parbat, K., 2018. Vodafone Idea to use high-end tech to expand 4G coverage, defend market
share. [Online] Available at:
https://economictimes.indiatimes.com/industry/telecom/telecom-news/vodafone-idea-to-use-
high-end-tech-to-expand-4g-coverage-defend-market-share/articleshow/66752223.cms
[Accessed 7 May 2019].
People Matters, 2018. Vodafone's MD & CEO on moving towards conscious change.
[Online] Available at: https://www.peoplematters.in/article/change-management/vodafones-

APPLIED MANAGEMENT 13
md-ceo-on-moving-towards-conscious-change-19202?
media_type=article&subcat=trends&title=vodafones-md-ceo-on-moving-towards-conscious-
change&id=19202 [Accessed 6 May 2019].
Ricardo Chiva, J.A., 2005. Organizational Learning and Organizational Knowledge.
[Online] Available at: http://sci-hub.tw/https://doi.org/10.1177%2F1350507605049906
[Accessed 27 April 2019].
Sanjoy Bose, K.T., 2015. Applying the balanced scorecard. [Online] Available at: http://sci-
hub.tw/https://doi.org/10.1108/14691930710830819 [Accessed 27 April 2019].
Strategic Management Insight , 2019. Management Tools. [Online] Available at:
https://www.strategicmanagementinsight.com/tools.html [Accessed 7 May 2019].
Tesseras, L., 2018. Vodafone expands its use of chatbots as it looks to transform the digital
experience. [Online] Available at: https://www.marketingweek.com/2018/04/25/vodafone-
chatbots-customer-experience/ [Accessed 7 May 2019].
Valentin, E.K., 2001. Journal of Practices and Marketing Theory. [Online] Available at:
http://sci-hub.tw/https://doi.org/10.1080/10696679.2001.11501891 [Accessed 27 April 2019].
Vodafone Group Plc., 2019. Network Leadership. [Online] Available at:
https://www.vodafone.com/content/annualreport/annual_report18/downloads/Vodafone-
strategic-report-2018.pdf [Accessed 7 May 2019].
Vodafone Group Plc., 2019. Technology trial lowers latency gap between 4G and 5G.
[Online] Available at:
https://www.vodafone.com/content/index/what/technology-blog/lowers-latency-gap-between-
4G-and-5G.html [Accessed 7 May 2019].
Vodafone Group Plc, 2018. Annual Report. [Online] Available at:
https://www.vodafone.com/content/annualreport/annual_report18/downloads/Vodafone-full-
annual-report-2018.pdf [Accessed 6 May 2019].
Vodafone Group Services, 2017. Vodafone Group Plc. [Online] Available at:
https://www.vodafone.com/content/dam/vodafone-images/media/Downloads/
About_Vodafone_Plc-24_August_2017.pdf [Accessed 6 May 2019].

APPLIED MANAGEMENT 14
Vodafone, 2019. A Simple Business Model. [Online] Available at:
https://www.vodafone.com/content/annualreport/annual_report13/downloads/
how_we_do_business.pdf [Accessed 7 May 2019].
Vodafone, 2019. Digital Vodafone. [Online] Available at:
https://www.vodafone.com/business/news-and-insights/white-paper/digital-is-the-future-for-
customer-service [Accessed 7 May 2019].
Vodafone's Flexible Competitive Advantage, 2014. The Vodafone Story. [Online] Available
at: http://jdforvodafone.blogspot.com/2014/09/competitive-advantages-of-vodafone.html
[Accessed 6 May 2019].