Business Environment of Vodafone : Report

Business Environment

TABLE OF CONTENTS
Table of Contents.................................................................................................................................2
INTRODUCTION................................................................................................................................3
Task 1...................................................................................................................................................3
1.1 Identify the purposes of different types of business organization.........................................3
1.2 Describe the extent to which organization meets the objectives of different stakeholders...4
1.3 Explain responsibilities and strategies of organization employed to meet stakeholders.......5
Task 2...................................................................................................................................................5
2.1 Explain how economic systems attempt to allocate resources effectively............................5
2.2 Assess the impact of fiscal and monetary policy on business organization and their
activities.......................................................................................................................................6
2.3 Evaluate the impact of competition policies and other regulatory mechanism on activities6
Task 3...................................................................................................................................................7
3.1 Explain how market structure determines pricing and output decisions of businesses........7
3.2 Illustrate the way in which market forces shape organizational responses..........................7
3.3 Judge how business and cultural environment shapes the behavior of organization.............7
TASK 4.................................................................................................................................................8
4.1 Discuss the significance of international trade to Vodafone.................................................8
4.2 Global factors that impact Vodafone work culture................................................................9
4.3 Impact of EU policies............................................................................................................9
Conclusions........................................................................................................................................10
References..........................................................................................................................................12

INTRODUCTION
Business environment includes various internal and external factors that affect the
functioning of organization either directly or indirectly. Internal factors of company includes
consumers, employees and management of the firm. They also affects demand and supply of
products and services provided by the organization. This present report is based on the business
environment and its factors that are affecting the functioning of Vodafone. It is a
telecommunication service provider and second largest mobile company in the UK. It has
expanded its services in various nations and has 500 stores across the UK which are involved in
selling of mobile phones handsets, Vodafone SIM offers and contracts (About vodafone, 2016).
Further, different types of organization and their purposes will be identified in this report. After
that, it will define various key stakeholders of Vodafone. Further, cited report will determine
various strategies and responsibilities followed by the company towards its stakeholders. Also,
description about several economic systems and attempts to allocate resources will be analyzed.
Further, report will discuss impact of fiscal and monetary policies on Vodafone as well as its
competition policies. At last, it will explain about the market structure and market forces that are
shaping the organizational responses.
TASK 1
1.1 Identify the purposes of different types of business organization
Vodafone is a UK based telecommunication company and its headquartering is in
London. It is the world’s 2nd largest telecommunication company on the basis of number of
subscribers as well as revenue. It has huge operating networks in 26 countries and also it is a
partner network in over 50 countries. It shares wide global area networking with 150 countries
(About Vodafone, 2016). It has also been listed under London Stock Exchange. Meaning of
Vodafone is Voice data fone which reflects provision of data as well as voice services.
There are following types of business organization:

 Sole trader – This type of organization is controlled by a single trader who is its owner.
All decisions are made by the sole trader. In the UK, it is the most popular business
concept. Companies- It is a separate entity from its owners. It is owned by the shareholder who
appoints directors to direct workings of organization. Vodafone follows the concept of
company and is a public limited company (About vodafone, 2016).
 Franchising –By this, one organization grants permit to other company or individual to
sell its product under same name. It is a growing concept and recently, it has become very
popular in the UK.
1.2 Describe the extent to which organization meets the objectives of different stakeholders
Stakeholder means a person or a group of people who is interested in the functioning of
organization. Such people can be creditors, government, directors, customers, creditors,
suppliers, unions etc. Organization treats all its stakeholders equally to perform fair trading
practices.
Key stakeholders of Vodafone are as follows: Customers- Vodafone always places its customers to its priority and makes sure that no
consumer had to experience cash cows. For that, management of the company makes sure
that they charge reasonable prices to its consumers so they can feel satisfied with its
services (Anandarajan, Anandarajan and Srinivasan, eds., 2012.). Shareholders- They play an important role in the organization as they are the one who
invest their money in it. Carries interest in profit of organization. In order to meet the
objectives of shareholders, company tries to maintain its position in the market and
increase its market share.
 Government- It affects organization by putting various laws and regulations. Such
legislation put positive as well as negative impact on the firm. In order to fulfill the
objectives of government, company makes sure that it does not violate any of the laws
made by the government (Asplund, 2013.).
1.3 Explain responsibilities and strategies of organization employed to meet stakeholders
Being at the stage where Vodafone is the largest telecommunication company on the
basis of its turnover. It is company’s responsibility to maintain its position and achieve