Strategic Management and Business Environment Analysis

This assignment involves analyzing the strategic management and business environment of a European life insurance company. It requires incorporating insights from academic sources such as Kew and Stredwick's 'Business Environment: Managing in a Strategic Context' and Kolk's 'The Social Responsibility of International Business.' Additionally, a SWOT analysis of Vodafone is to be conducted. The assignment demands a thorough understanding of strategic management principles and the ability to apply them in a real-world context.

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................2
P1.Different types of organisation and their impact on growth of internation business.............2
P2.Size and Scope of different types of organisations................................................................4
TASK 2............................................................................................................................................6
P3 Relationship between different organisational functions.......................................................6
TASK 3............................................................................................................................................8
P4 Positive and negative impacts the macro environment upon business operations.................8
TASK 4..........................................................................................................................................10
P5 Internal and external analysis of organisation with their Strength and weakness...............10
P6 How strength and weaknesses related to external factors....................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Business environment plays a major role in changing environment. “Business environment”
deals with the climate conditions and factors which affect the macro environment. These are
social, economic, political, or organization in which business operations are done. It contains
external factors that create opportunities and threats for businesses. These factors are influence
by suppliers, media, competitors, government, economic and market condition etc. These forces
are affecting business. It is responsibility of manager to consider all factors which affect the
strategies policies, procedures and culture of any organisation. This report is based on company
Vodafone. It is a British multinational telecommunication company which is headquarters in
London. CEO of this company is Vittorio Colao. This provide a wide range of services including
voice, messaging, and data across mobile . Further it discuss about various types and purpose of
enterprise, scope size, relationship between various function of organisation structure and the
factors which are affecting business.
TASK 1
P1.Different types of organisation and their impact on growth of internation business (Covered in
PPT)
P2.Size and Scope of different types of organisations (Covered in PPT)
TASK 2
P3 Relationship between different organisational functions
There are many departments in Vodafone. It is important that company has to make
policies which help in easy in workers. There are possibilities that company has to make policies
according to changed environment (Cascio, 2018 ). There are many factors which creates link
between various departments. It is essential that organisation has to make efforts through which
workers can work under changed environment. Vodafone has good image in market, so it is
essential that company has to create that environment which helps in performing activities in
better way. Some of the departments are discussed below-

Illustration 1: Organisational Structure
Research and development- There is important role of research and development
department to make policies effective and efficient. This department helps in performing
activities related to consumer and their satisfaction (Deasy and et. al, 2016). It is essential that
organisation has to make policies which can be formed with the help of research and
development. These days role of manger is increasing as they have to make policies according to
need of consumer. It is essential that company has to form policies which provide satisfaction to
consumer. There are possibilities that organisation has to give emphasise on customer preference
so there will growth of company in form of profits and productivity (Eling and Schaper, 2017).
Operations department- This department is important because they deal with different
factors, which has to performed with joint efforts of various other department. It is essential that
organisation has to make strategies according to competitor's policies. There are many factors
which get attached with each other. There are possibilities that activities are get attached with
each other, so operations department reduces the chances of overlapping of activities. There are
difference in performing activities of employees, so it is essential that operations department
manager has to take care about completion of activities on time. Vodafone is firm which deals in
telecommunication, so there is requirement of some activities which help in performing acts in

better way, so customer get satisfied with brand and do not switch to other organisation
(Goleman, 2017).
Sales and marketing- This is one of the best department which help in enhancement of
organisation. Sales and marketing department are two big segments which sounds to be same,
but there is difference between two. These departments are closely, linked with one another.
Vodafone has good image in market, it is because of up-dations in services, which satisfy
demand of customers. It is essential to deliver about new services to consumer, so this helps in
improving sales (Zidar and et. al, 2016). When consumer are aware of new product, then they are
ready to purchase goods. There are various factors which creates hurdle in marketing such as
advertisement, cost, target customer, promotional events, etc. so this must according to budget of
company.
Human resource- HR department is closely related to workers, so there is need of some
planning which affect due to change in employee's need (Hämäläinen, Näyhä and Pesonen,
2011). Employees are the source which help to achieve targets on time, their satisfaction is one
of the best factors which help in performing tasks. There are many policies which need to b
changed so efficiency of workers may get improved. As there is need of training due to change
in working style, so this is checked by HR department. Timely payment of compensation,
reimbursement, performance appraisals, etc. are some factors which are related to employees are
controlled by HR manager. It is important that HR manager has to make which help in creating
good environment and relations between employer and employees. They resolve conflicts, which
may affect performance of workers.
Finance- This is one of the best and important department (Hillary ed., 2017). As in
Vodafone, they come with new and innovative ideas to solve demand of consumer. In this case
there is requirement of funds. This department keeps record of expenses and incomes. They set
standards for expenditure and then all departments plan their activities accordingly. There is
requirement of various external sources for smooth working of company. So this is responsibility
of finance department to select best source which can be used effectively and easily available.
There is requirement to keep proper details of accounts which help in creating funds from
market.

TASK 3
P4 Positive and negative impacts the macro environment upon business operations
There are different factors which help in performing activities in better way. There is
requirement of various activities which help in performing activities ion better way. PESTLE
analysis help in knowing external forces which affect business (Kew and Stredwick, 2017) .
There are many factors which affect business, so it is responsibility of manager to take care and
reduce impact of macro factors on business. These are not in control of management of
Vodafone but PESTLE analysis help in reduce down the negative impact of external forces on
business. Positive and negative impact of PESTLE is discussed below-
Basis Positive Impacts Negative Impacts
Political This factors helps in proper
working of Vodafone, as there
is control of government, then
there are less chances of
betrayal. This improves proper
functioning and government
keep eyes on the. Through
political factor consumer has
trust factor in brand.
Company has to make policies
as per government norms, this
creates hurdle in normal
working. There are many
factors which affect
performance of employees.
Due to change in political
party sometimes Vodafone has
to make modifications in their
policies.
Economical This is one of the essential
factors which can take
company upside or downside.
This analysis help in getting
best option of source of fund
and then utilise in better way.
As business runs for achieving
business objectives, so there is
requirement of proper
planning.
This may affect business of
Vodafone in adverse way, so
there is requirement of some
negative results. In case
company does not get proper
source to achieve targets. This
affects business in adverse
manner.

Social There must be social approach
which help company to expand
business. There are
possibilities that due to change
in customer demand. This
helps company to create good
brand in market.
This factor is main and
effective source which help in
performing business but there
is requirement of change in
business policies, due to which
workers may get effected and
confused regarding working
approach.
Technological This helps in upgrading
telecommunication services.
There will improvement in
product and services and it
reduces chances of defects. It
is essential that company has
to make policies which help in
achieving business objectives.
It helps in improving working
style of workers and it is
competent to external world.
As change in technology
affects financial status of
company. Change in
technology results in conflict
of actions. It is important that
company has to make policies
which get affected due to
change in technology. Every
technology can not be accepted
by Vodafone, so this affects
performance of company.
Legal There are many laws which
improves environment of
organisation. There are various
laws related to employees
which helps in achieving
business objectives.
Employees satisfaction leads
to customer satisfaction. There
must be proper job role to
workers which help in
achieving targets efficiently
This affects business
operations and in case there is
need of change in business
policies so there is requirement
to deliver it to employees.
There are possibilities that if
company do not modify
policies then there is
interference of government.

and on time.
Environmental This is one of the best factors
which helps company in
achieving targets and goals.
Vodafone operates in various
parts of world, so they have to
take care of environmental
factor of countries. In case of
India there is requirement of
more network at the time of
Diwali and wedding season, so
there is requirement of good
services.
Vodafone is the company
which deals in
telecommunication services, so
environments factors affects a
lot. There are many problems
faced by customer in
contacting calls. There are
different seasons such as
winters, monsoon, etc. which
affects services of Vodafone.
TASK 4
P5 Internal and external analysis of organisation with their Strength and weakness
Internal and external factors affect business, so it is important to consider them. Internal
factors talks about elements in side the business, but there is requirement of some policies which
has to adopted to overcome them. Internal factors includes customer, stakeholders, suppliers, etc.
External factors are not in control of management, but they can frame policies which help in
reducing negative impact (Kolk, 2016). This analysis is important to achieve targets in better
way. There are possibilities that company has to modify their policies due ton change in external
or internal factors. It is essential to convey modifications to workers so they can perform
activities accordingly (SWOT analysis of Vodafone, 2018).
Strength
They cover huge area to render services. They
operate in various parts of world, so customer
do not get interrupted in case they want to
switch from one place to another.
Vodafone use various updated technology to
promote their product and services. Vodafone
Weaknesses
USA is the country where Vodafone user are
reducing day by day, which affects their
growth.
Services of Vodafone are not effective in
Europe due to climatic changes.

zoo zoo is one of the best example of their
advertisement. They have good brand value in
market.
Vodafone charges high price as compared to
other brand.
Opportunities
Rural market is the segment which gives
growth prospect of company. They can join
hands with mobile companies. These days 4G
is in trend but they must try to come with best
services and try to switch at 5G. There is
problem in network of Vodafone at remote
places, so they must come with services which
can satisfy need of customer.
Threats
Competition is one of the biggest threat in
telecommunication industry. Chinese networks
are competing with Vodafone. Profits out of
this industry is very low, so there is need of
good services so more and more people can
contact with Vodafone.
These days there is trend of MNP under which
customer can change in service provider
irrespective of contact number. So this is threat
for Vodafone as it is easier for customer to
switch to other competitive brand.
Vodafone has to make policies which help them, to reduce chances of failure and there is
requirement of proper planning, which help in achieving business objectives. SWOT analysis has
to make policies which can be affect due to change in policies of organisation (Li and et. al.,
2011). There are many changes taking place in business environment, to make good relations
with customer it is essential to make policies which help in satisfaction of their demand. It is not
policy to satisfy all demands, so there is requirement to adopt policies which assist change of
management.
P6 How strength and weaknesses related to external factors
External factors include components which affect business but not part of business. These
factors are more effective as compared to internal factors. There is impact on growth and
profitability of company (Prajogo, 2016). It is essential that organisation has to consider them
and take corrective actions to overcome them. Vodafone has many strength and weaknesses, so
there is requirement to polish strengths and reduce negative impact of weakness. Vodafone
works for earning profits, this can be done through customer satisfaction. PESTLE analysis of
Vodafone is discussed below-

Political- This factors affect strength and weakness of company. It is important that
company has to adopt policies which are affecting business operations. When Vodafone adopt
policies framed by government then it helps in enhancing goodwill in market (Smith, 2017).
There is requirement of various managerial decisions which help in growth of company. Change
in political party affect business and there is requirement of proper guidance with management of
company so workers can perform task in better way.
Economical- Vodafone has good customer range but as in UK customer is reducing, so
there is requirement of proper finance decision, so they do not get affected due to lack of finance.
This factor affect business but as there is requirement of proper analysis so negative results can
be adopted. Price of Vodafone services is higher as compared to others, so this may affect
business growth. It is essential that approaches must be adopted which help them to reduce cost
and increase profits.
Social- This factor says that there is requirement to analyse customer demand because as
per change in culture of consumer their demand differ. It is essential that organisation has to
make strategies which are beneficial for growth of business (Sodeyfi, 2016). There are many
competitors of Vodafone so it is essential to take actions according to strategics of other
company in industry.
Technological- This is one of the best factor which help in performing activities in better
way. These days technological changes are taking place more frequently. There is requirement of
funds to install new techniques and training cost required for employee's. Although this helps in
performing activities in better way and reduces chances of defects also.
Legal- There is essential role of legal factor in business which has to perform. In case of
alteration in laws, then management of Vodafone also has to apply those changes in business.
There is requirement of professional which provide basic knowledge and updations about laws
and regulations. Employees may get affected due to change laws related to them and hence their
performance may get influenced (Wack, 2017).
Environmental- Environment is the place which has major impact on business. It is
essential that company has to frame policies which affect business and it is essential for
management of Vodafone to frame policies which can be effective in overcoming weaknesses.
Vodafone is company which operates in different parts of world, so this is most effective factor
for business.

CONCLUSION
From the above discussion it is clear that business has to consider external environment
so they can achiever targets. As discussion shows that company has to make policies which are
flexible enough to achieve goals and objectives on time. Size and scope of organisation affect
their goals and objectives and business operations. There are stakeholders which helps to
generate fund and take interest in business operations. Public, private and voluntary associations
are organisations which help in performing activities to achieve targets. There is difference in
their goals and objectives so they act accordingly. There are many departments which are linked
with each other and works to come with new techniques. This file helps to know about macro
factors, which includes PESTLE analysis affects which has to be considered by management of
company to achieve targets in better way. There is discussion about props and cons of macro
factors.

REFERENCES
Books and Journals
Cascio, W., 2018. Managing human resources. McGraw-Hill Education.
Deasy, S. and et. al, 2016. Controlling use of a business environment on a mobile device.
U.S. Patent 9,247,042.
Eling, M. and Schaper, P., 2017. Under pressure: how the business environment affects
productivity and efficiency of European life insurance companies. European Journal of
Operational Research. 258(3). pp.1082-1094.
Goleman, D., 2017. Leadership That Gets Results (Harvard Business Review Classics). Harvard
Business Press.
Hämäläinen, S., Näyhä, A. and Pesonen, H. L., 2011. Forest biorefineries–A business
opportunity for the Finnish forest cluster. Journal of Cleaner Production. 19(16).
pp.1884-1891.
Hillary, R. ed., 2017. Small and medium-sized enterprises and the environment: business
imperatives. Routledge.
Kew, J. and Stredwick, J., 2017. Business environment: managing in a strategic context. Kogan
Page Publishers.
Kolk, A., 2016. The social responsibility of international business: From ethics and the
environment to CSR and sustainable development. Journal of World Business. 51(1).
pp.23-34.
Li, Q. and et. al., 2011. Towards the business–information technology alignment in cloud
computing environment: anapproach based on collaboration points and agents.
International Journal of Computer Integrated Manufacturing. 24(11). pp.1038-1057.
Prajogo, D. I., 2016. The strategic fit between innovation strategies and business environment in
delivering business performance. International Journal of Production Economics. 171.
pp.241-249.
Smith, S. S., 2017. Strategic Management Accounting: Delivering Value in a Changing
Business Environment Through Integrated Reporting. Business Expert Press.
Sodeyfi, S., 2016. Review of literature on the nexus of financial leverage, product quality, &
business conditions. International Journal of Economic Perspectives. 10(2). pp.146-150.
Wack, P., 2017. Shooting the rapids. Historical Evolution of Strategic Management, Volumes I
and II. 1. p.121.
Zidar, M. and et. al, 2016. Review of energy storage allocation in power distribution
networks: applications, methods and future research. IET Generation, Transmission &
Distribution. 10(3). pp.645-652.
Online
SWOT analysis of Vodafone. 2018. [Online]. Available through:
<https://www.marketing91.com/swot-analysis-vodafone/ >.
(Cascio, W., 2018 ) (Deasy, S. and et. Al, 2016) (Eling, M. and Schaper, P., 2017) (Goleman,
D., 2017) (Hämäläinen, S., Näyhä, A. and Pesonen, H. L., 2011) (Hillary, R. ed., 2017) (Kew, J.
and Stredwick, J., 2017) (Kolk, A., 2016) (Li, Q. and et. al., 2011) (Prajogo, D. I., 2016) (Smith,
S. S., 2017) (Sodeyfi, S., 2016) (Wack, P., 2017) (Zidar, M. and et. al, 2016)