Business Environment of Vodafone
Added on 2020-07-22
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BUSINESS ENVIRONMENT
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................11.1: The purpose of different type of organisation.................................................................11.2: Organisation meeting the objectives of different stakeholders ......................................21.3: The organisational responsibilities and strategies for meeting objectives......................4TASK 2............................................................................................................................................52.1: The attempt by economic systems to allocate resources effectively...............................52.2: The impact of fiscal and monetary policy on organisations and their activities.............72.3: The impact of competition policy and other regulatory mechanism on the activities ofVodafone ...............................................................................................................................8TASK 3..........................................................................................................................................103.1: The determination of pricing and output decision of business through market structures103.2: The market forces shape organisational responses........................................................123.3: The business and cultural environment shape the behaviour of Vodafone...................14TASK 4..........................................................................................................................................144.1: The significance of international trade on UK business organisation ..........................144.2: The impact of global factors on UK business organisations.........................................154.3: The impact of policies of the European union on UK's business organisations...........16CONCLUSION..............................................................................................................................17REFERENCES..............................................................................................................................18
INTRODUCTIONThe structure of the organisation depends on the environment in which they established.The business environment can be defined as a combination of internal and external factors whichinfluence the decision of business. The business environment includes competitors, government,supplier, consumer and various international factors. In this report, the organisation is chosen forbetter understanding on business environment is Vodafone, a telecommunication company whichhas its operations in various part of the world such as Africa, Asia and Europe . The company iswell known for providing services related to calling and internet in the market (Belás and et.al,2014). Its success is based on various ventures through which company is providing services intelecommunication sector. In this report, the purpose of various different of enterprise isdiscussed. The propose of Vodafone is to provide effective and flexible services to theircustomer at cheap price. For this they are considering various advance technologies. Along withthis they are trying to deal with diversified audiences. Along with this, impact of competitionpolicy and regulatory mechanism on business is also evaluated. Furthermore, ways in whichmarket forces influence the organizational responses is explained. Along with it, the impact ofEuropean union policies on UK's firm also evaluated. TASK 11.1: The purpose of different type of organisationAn organisation is considered as a formal structure of responsibilities, relationships andauthorities and with the help of this they achieved their specific objectives (Belás and et.al,2014). The following is the description about the purpose of different type of organisation on thebasis of nature, mission, vision and goals: Private company: It is the part of economic system of a country which is controlled bycompanies and individual, rather than the government. The most of the private sectororganisation are running with the intention of making profit. Vodafone is a private sectororganisation and the profitability of the company is mainly based on the sales volume achievedby the company. The mission and vision of the firm is becoming a market leader by offeringexcellent quality of offers and services to customers. The objective of the organisation isproducing superior quality of products by providing good work condition to employee(Niemann-Struweg, 2014). 1
Public company: These company controlled by national, state or provincial and localgovernment. The main objective of this type of organisation is maximizing the amount of profitand became handful in giving support in development of economy and provide better services topeople (Wolf, 2014). For instance, Ministry of Finance belongs to public sector and look afterthe funds provided by the government. Government companies: The overall objective of state owned or government companiesis to generate value, ensuring macroeconomic stability and regulating smooth flow of funds.Vision is developing more competitive economy. The goals of this companies is maximizing therevenue with socially acceptable standard (Smith, 2014). Voluntary organisation: This type of companies are regular or occasional volunteers oftheir operations. It is characterized as autonomy from the state, self-governance, work withphilanthropic approach, and formed with non for-profit orientation (Bagautdinova and et.al,2014). Co-operative companies: The major objective of this organisations is providing effectiveservices and products to users. Vision and objective of the co-operative organisations aresupporting to achieving the socio-economic goals of business. Charity organisation: The major objective of charity organisations is making changes inthe life of community by providing them utmost help. The mission and vision of this companiesis providing better standard of living to the community. The vision is putting efforts on higherlevel to accomplish the social service purpose (Belás and et.al, 2014). 2
1.2: Organisation meeting the objectives of different stakeholders The following is description about the ways by whichVodafone is meeting the objectivesof their different stakeholder:Business objective: Vodafone's are providing their services in order to become multinationaltelecommunication company. To achieve their objective they are sicked to their values andculture of providing excellent services to their clients (Belás and et.al, 2014). Owners: The owners are considered as one of the most important stakeholder of the company.Owners can be individual, partners and a large number of shareholder. For instance,Vodafonemanage the objectives of owners as business is directly affect by their earnings and wealth. Customers: Organisation need to fulfil the demand and need of the customer as the futureof company is totally depend on customer tastes (Marinescu, 2013). For example, Vodafone isfocused towards meeting the needs and wants of the customer for making better relations withthem. Suppliers: Suppliers deliver the raw material to organisation. Companies have to look atthe terms and condition of suppliers so that mutual benefit can be attain. For the adequatedelivery of raw material primary is fulfilling the needs of the supplier.Employees: Employees are considered as the most important stakeholders for anyorganisation. They are the one who take care of day to day operations of companies (Klapper,3Illustration 1: Stakeholder of an organisation(Source: Stakeholder of organisation.2016)
Love and Randall, 2015). For instance, Vodafone is trying to meeting the objectives ofemployees by providing various monetary benefits to them. Debtors: Debtors are considered as the stakeholder who owe money to the business. Theyare typically those customers who have taken possession of services and goods from a firm butyet not paid for them. For example, Vodafone is managing their debtors by providing theminvoice, easy procedure of payment and so on. Creditors: These are those stakeholders who are owed money by the business. Basically,creditors are supplier who delivered goods or services to the businesses and waiting for thepayment (Gani and Al-Abri, 2013). For instance, Vodafone meeting the objectives of creditorsby timely payment for their schemes and establishing effective communication channels withthem. Financial institutions: Banks and other financial institutions give loan to theorganisation and in return they charge interest. For the purpose of meeting their objectivesVodafone need to pay to financial institutions. Environmental groups: The natural environment has wide range of affect due tocompany business activities. By considering this organisation accepting the moral obligation forsaving the it (Belás and et.al, P., 2014). For instance, Vodafone is understanding their moralobligations towards nature and avoiding the misuse of environmental resources. Government agencies: Government agencies develop legislation in which businessshould perform their activities. The main concerned area for this agency are taxation policy,licensing, national income and protection of consumer rights. Trade unions: Trade union plays very significant role as they are helpful in developingeffective communication between the workers and management. The organisation has widerange of responsibilities for trade union (Niemann-Struweg, 2014). 1.3: The organisational responsibilities and strategies for meeting objectivesStakeholders interest: Stakeholder are considered as the person who have interest,ownership and right in the organisation and its activities. Here, stakeholders for Vodafone areowners, customer, supplier, employee, debtors, creditors etc. Company have the responsibility toforming a strategy which benefits all the stakeholders. Conflict of expectations: When organisation is unable to fulfil the expectations of theirstakeholders, various conflict may arise. Here, Vodafone's objective in managing stakeholder4
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