Understanding International Business Activity

This assignment delves into the co-evolutionary nature of Multinational Enterprises (MNEs) and their surrounding institutional environments within the context of international business activity. It encourages students to analyze how these entities influence and adapt to each other, shaping the landscape of global commerce. The provided readings offer diverse perspectives on strategic management, business models, risk management, and the impact of institutions on firm performance.

Business Environment

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Purpose of different types of business organizations 3
1.2 Extent to which Vodafone meets its objectives................................................................4
1.3 Responsibilities of Vodafone and strategies which met objectives..................................5
TASK 2............................................................................................................................................5
2.1 Three economic systems which allocate resources..........................................................5
2.2 Impact of fiscal and monetary policy on Vodafone.........................................................6
2.3 Evaluating the impact of UK competition policy.............................................................7
TASK 3............................................................................................................................................8
3.1 Explaining the way in which market structure determine pricing and output decision.. .8
3.2 Illustrating the ways in which market forces shape organization 8
3.3 Business and cultural environment of Vodafone..............................................................9
TASK 4..........................................................................................................................................10
4.1 Importance of international trade for Vodafone.............................................................10
4.2 Three global factors that have their impact on Vodafone..............................................10
4.3 Evaluating the impact of EU policies.............................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
An organization is affected by external and internal factors such as employees, customers,
management as well as supply and demand which influence the environment of business. It is
important for the organization to make sure that all the factors that affect the firm negatively are
identified, and appropriate steps are taken to overcome them (Clemmensen, Black, and Skov,
2010). The present report is about Vodafone which is one of the largest British
telecommunication which provides wider range services. This report covers the different type of
purposes that an organization play at diverse sectors. Further, it covers strategies that are
implemented by cited firm to achieve their goals and objectives. Moreover, it covers the impact
of monetary and facial policy over the organization. Lastly, it also includes the importance of
international trade for Vodafone.
TASK 1
1.1 Purpose of different types of business organizations
Vodafone contains total revenues with roller coaster journey from the day of inception. They
officially live with the base station to make mobile call and dial network as first commercial call
done by the new network. The organization can determine by achieving the goal where the group
of people works together (Cantwell, Dunning, and Lundan, 2010). There are 107,667 employees
work in the cited firm. There are different divisions such as Vodafone Enterprise and Vodafone
Ghana. In this context, organization achieves success, and they receive lots of profit. So they
expand their business in a different place such as Ireland, Romania, Egypt. The main purpose of
cited firm to make sure that they earn huge profit and deliver their customers with high-quality
services. There are three types of business organization that is considered such as private, public
and charitable Organisation they are as follows:
Private Organisation – In this company, it consists of very small organizations. The
requirement of capital is less, owners of this business make development a per the capital that
they have. The purpose of an organization is to earn a maximum profit by interacting more
peoples, understanding their needs and providing them services accordingly (Elliot, 2011). One
of the best examples for the private organization is Iceland Ltd. That aims at delivering their
customers with high-quality services.
Public Organisation – These organizations issue securities which ensure the welfare of
people. They identify the exact value of the entire company through daily transactions and

trading of business. Their purpose is to focus on making sure that betterment of society is
possible and to deliver employment opportunity. They provide opportunities to employers for
well-being or the society (Moutinho, 2011). They conduct programs for the welfare of people
which provide opportunities for their employees. TESCO is an example of limited public
organization.
Charitable organization: These organizations makes sure that proper support is provided
to people whether it may be for mental or physical. Example for this is Caner Research UK; this
firm makes sure that people are provided with proper information regarding about cancer so that
they can be safe.
Vodafone is considered as a Public limited company which is leading a large sector of
telecommunication in the UK. They achieve success through aggressive acquisition strategy.
1.2 Extent to which Vodafone meets its objectives
Employees of an organization are considered as the most obvious internal stakeholders. They
are the one who makes sure that all the services and products are delivered to service users
effectively and efficiently. Further, there are different stakeholders involved like directors, board
members, customers, suppliers, employees, etc. (Tang and Musa, 2011). In external stakeholder,
they are indirectly connected to an organization such as the policy of the government, media,
news organization and much more which gives more effect. The business of Vodafone is
affected with stakeholders including employees, suppliers, NGOs, agents work under a
government which is detailed below:
Employees – This is an important individual which focus on understanding mindset and
requirement of the customer (Teece, 2010). They have direct interaction with customers and
provide adequate information to them. It is important for the organization to make sure that they
deliver their workers with all type of equipment so that they will be delivering their services
effectively. The growth of a business depends on the performance of employees.
Customers – They help to determine their quality to improve or not whether they are
getting satisfaction with services of Vodafone. The customer determines their demand as well as
the growth of an organization. The company provides a high standard of service which they
perform their work effectively.

Shareholders – This is one of the stakeholders who invest in the organization as capital.
They are an essential factor for the growth of Vodafone which builds a strong relationship. They
expect to achieve greater returns and decrease the value of the share as capital.
Local Community – They participate as local, national and international committees
which aggressively decrease the impact of business on the environment. Vodafone works on
recycling activities where waste reduces and save energy (Trkman, 2010). They provide all
facilities such as talk time loan, general knowledge skills and tips for beauty so people were
aware of plans and they consume these scheme according to their needs.
They individually work with stakeholders such as by conducting the meeting which
denotes bullet points. They maintain their position by attaining strategies and initiatives. The
cited firm work continuously by the interacting relationship with all keys of stakeholders (Ahi
and Searcy, 2013). The objectives of Vodafone which met influence of stakeholders by working
on pricing policies, the safety of products, equal opportunities for employees as well as reward
and recognition. The cited firm believes on working continuously on feedback.
1.3 Responsibilities of Vodafone and strategies which met objectives
Staff members of Vodafone perform their work with the dedication which fulfill the objectives
of an organization. Following are responsibilities that should be considered by Vodafone:
Management Responsibilities – Vodafone considers their responsibilities through
management by controlling business and overlooking day to day trading. The members who
manage and control these responsibilities are like CEO and Executive Board where both of them
have their duty to ensure operations of the company within limited period. CEO of the cited firm
take an important decision in meeting with Executive Board. Executive Board regulates entire
business and develops their target according to the demand of customers.
Social Responsibilities – Cited firm refers this authority to business practices where
benefits for society is considered. Vodafone primarily focuses on the environment which reduces
the issues that are faced by the organization as well as society. Employees were treated fairly in
an organization. Vodafone attends official events with sincerity where they express issues of
society and steps are taken to overcome them.
Environment Responsibilities – It is considered as a legal duty which affects the
environment to run along business. Responsible for cited firm includes promoting business with

socially as well as environmentally which provides the direction of success in business for a long
term in Vodafone.
TASK 2
2.1 Three economic systems which allocate resources
There are three economic systems where an organization is affected by the decisions that are
country takes over the resources. Different countries follow the diverse set of the economic
market like command economies, market economies, and traditional economies.
Traditional Economic System – This can be determined by the type of economic system
in which price of the commodity is fixed, and there are not changes make in it. This type of
system is very helpful for the organization as the price is determined by the government and
there are not changes made. In this context, this system is followed in Poland. (Boons and
Lüdeke-Freund, 2013). When Vodafone follows this type of economy, then it becomes easy for
the organization to determined the price. Equal opportunity s provided to other firms as well.
Market Economies System– As per this economy system all the decision is taken by
customers. On the other hand, government does not tolerate any interference for allocation of
resources. In this context, it can be stated that the decision with related to products and services
are made as per the buying pattern of customers. This type of system is beneficial for Vodafone
as they will understand the perception of customers and change their pricing strategies
accordingly. Singapore follows this type of economy.
Command economic system – As this economy, the government makes all the decisions
in respect to allocation of resources. This is highly effective as it helps to have effective
competition among organization (Grant, 2016). As a result, companies provide their customers
with high-quality services so as top develop a strong customer base. This type of economic
system is followed by Cuba, China, North Korea, etc.
2.2 Impact of fiscal and monetary policy on Vodafone
Before fiscal and monitory policy has the high impact over the growth and performance
of the organization. Changes in the policies have the negative impact on the pricing strategies.
Below given are the impact of the fiscal and monitory policy to Vodafone:
Tax rates: Different countries have a diverse set of policies that are implemented by them
over tax rates. It is essential for the firm to make sure that tax is covered (Kor and Mesko, 2013).

In case changes take place in tax rates, then the price of the product or services that are delivered
by Vodafone is to be changed. In case the tax rate increases, then the price will also raise. On the
other hand, when tax rate decreases, then price will also decrease. Frequent changes in tax rates
affect the business performance of Vodafone.
Exchange rate: Different countries have a diverse rate of exchange. In case the rate of
exchange is high, then the business operations get affected (Rosenbusch, Rauch and Bausch,
2013). On the other hand, when the exchange rate is low, then this is beneficial for Vodafone as
they will be able-able to deliver their services effectively and efficiently.
2.3 Evaluating the impact of UK competition policy
Competition Policy is a type of process in which organization has effective competition.
Specially for those organizations which deliver their customers with similar products are
services. There are a different set of impact over the companies due to this policy which is as
follows:
High quality: the Ultimate aim of any firm is to gain maximum profit. This is only
possible when they will be able to deliver their customers with high-quality services. To compete
with each other effectively, firmly makes sure that they deliver services which are of high
quality.
Low price: Price can be determined as one of the effective sources that change the buying
behavior of customers when the quality that is provided by the firm is high, and the price is also
high them customers will prefer to make use of services that are of the low price. However, with
the help of competition policy, the pricing that is used is effective enough to make sure that there
are not many changes in pricing.
Data protection act: as per this policy, it is important to make sure that personal
information of customers is not conveyed to anyone (Zott, Amit, and Massa, 2011). In addition
to this, it should not be misused and used for the purpose of the organization only. Moreover, all
the data of customers should be destroyed after a certain set of the period. There needs to have a
proper system in which data is collected and stored.
Innovation: Due to competition policy, innovation within the organization take place
(Competition Policy in Markets and Industries, 2015). To be better from others, they make sure
that all type of services are delivered, and customers requirements are identified and are fulfilled.

TASK 3
3.1 Explaining the way in which market structure determine pricing and output decision
Market structure plays an important part in an organization. In the company, managers have a
responsibility to increase their sales for product and services according to needs and demands of
the customer. They focus on a feature that makes the firm competitive in nature (Economics
Online, 2016). There are a different type of marketing structure, and organizations fall under thee
structure as per the type of services and products that they deliver. In this context, below given
are the different type of marketing structure:
Perfect Competition – This is a type of market in which there are a large number of
buyers and sellers in the market. Customers have the wide range of products and services that
they can choose (Black, Clemmensen and Skov, 2010). The main focus on the organization is
over the quality of the product. When the quality that is provided by the firm is high, then
customers will shift on to that product. Vodafone does not fall under this market as there are
much organization which exists in the particulate market structure.
Monopoly – In this type of market, there is a single seller with a single product. The
decision related to the price of product and services is taken by organization themselves (Elliot,
2011). Changes in price are made by the organization, and when there is any change
implemented in the price, then it will not have that impact on the customers as they do not have
any other substitute to it. Vodafone does not fall under this market as their many other
organization that delivers their customers with similar services.
Oligopoly market: As per this market structure, there few organizations that
provide their customers with similar products and services. Vodafone falls under this market and
slit changes in price affect the customer's perception. In this context, it is important that the
organization make sure that price of the product is kept low when compared with other firms as
it has high influence over customers.
3.2 Illustrating the ways in which market forces shape organization
The effect on price and providing service in market economy is one of the factors of
market forces. The activity where buyers and sellers form changes in price without being the

authority of government which maintains their image in the market is market forces (Moutinho,
2011). The factors which influenced in market forces such as follows:
Price – Vodafone promise not to increase their price or customer will not pay any
increases in their monthly rent. They ensure monthly mobile cost will remain same for contract
term as it may be over than 24 months. The cited firm reserve their rights to amend price for a
bundle of charges.
Competitive Advantages – The second largest mobile operator that revealed income and
sales by regulation in the quarter. By rising competition, they were going on recession among
Europe. Still, Vodafone is on the track which met their full targets with profit.
Demand and supply – In the modern era, Vodafone causes fluctuation due to an
economic condition which effects on profitability. For that, they decide to implement in
strategies which increase purchasing power of raw materials (Tang and Musa, 2011).
According to customer requirement firm should provide their services. These changes are
highly effective on demand and supply in an organization which enhances business in the
market.
3.3 Business and cultural environment of Vodafone
There are a different set of factors that affects the environment of business and this negatively
affects the business. In this context, below given are factors that affect the business:
Educational Development – As per this factor, there are cases in which people do not
have proper information about the services that are delivered by Vodafone, and so this affects the
business negatively (Teece, 2010). On the other hand, if people have proper information about
the type of services that are provided by the firm, then it helps to develop growth and business.
Demographic factors – They focus on increasing their usage rate. When a market has a
high population, then it helps the organization as they can attract more and more customers. On
the other hand, when there is fewer people or population in a market then the amount the
incomes that will be generated will be less.
Political factor – There are a different set of fiscal and monitory policy that are followed
at diverse countries, and it is important for the firm to follow them. When the rate of these

policies is high, then it affects the firm negatively. On the other hand, when the rate of the
policies are low, then it acts positively.
TASK 4
4.1 Importance of international trade for Vodafone
International trade can be defined an effort that is make by the organization to make their
business reach to new markets. There are a different type of benefits, and negative impact on the
firm like Vodafone gets, and they are as follows:
Reaching new customers: Different people have a diverse set of wants and expectations.
Firm gets to reach out new and potential customers who are high helpful to contribute effectively
towards the growth of the organization (Trkman, 2010). However, it is important that Vodafone
conducts market research so that they will be able to identify the requirements and proper steps
can be taken.
High competition: This can be determined as a negative factor that firm has to face. In
international markets, there are many organizations that deliver similar products and services. In
this context, proper steps should be taken, and competitive plan should be made so that strong
customers base can be developed and company achieves their desired goals and objectives.
Different tax rates: There are changes in tax rates that are implemented in different
countries (Boons and Lüdeke-Freund, 2013). As per the changers, the firm has to make changes
in the services and their price. There are cases in which business face problems when they are
not able to get a market in which tax rates are not stable.
4.2 Three global factors that have their impact on Vodafone
Globalization refers growth which spread all over the world that approaches to graze of
international goods to the consumer. A continuous flow of stuff as well as products in the
domestic area. This trade of market explores up to the higher degree of an organization. There
are three factors which have their impact on Vodafone which are as follows:

Financial – to perform any activities, it requires proper financial support for the
organization. In case, Vodafone is not able to get proper financial support, then the activities that
are listed out by them, will not be achieved effectively (David and David, 2016).
Economic – This factor has a high impact on the business. In this context, it includes
inflation, recession, etc. It negatively affects performance as service users fail to spend over the
services that are delivered by Vodafone.
Technical – Changes in technology taken place frequently. It is essential for the
organization to make sure that they make use of new or updated technology so that they will be
able to deliver high-quality services (Grant, 2016). When a change in technology implementation
should be done so that competitive advantage can be achieved.
4.3 Evaluating the impact of EU policies
The European Union operates according to a system which they work independently
where the decision was negotiable. They developed a single market through increasing quality of
laws that are applied (Zott, Amit, and Massa, 2011). Their policies aim to ensure proper services
are delivered to countries. Below given are the impact of EU policies:
Working condition – This makes sure that all the organization can have a prper working
condition with different markets.
Welfare – They consider an opportunity for performing well which emerge from a small
company to large which is enhanced. They governed as per principle which represents
democracy and Council of EU.
According to policy, Commission of remuneration which manages execution of
Vodafone. The percentage of accompaniment to Remuneration report which stockholder expand
annually. The governance of Vodafone applies grade by metrics which results in rank entire the
world.
CONCLUSION
From the findings, it can be stated that employees are the face of the organization as they
have direct interaction with customers. They are the one who presents products and services to
customers. It is important for the firm to make sure that all they of services are delivered to the
workers so that they put their full efforts to support the organization. Moreover, before entering

into the new market, there should be proper research conducted so that they will be able to
understand the needs and requirement and accordingly services should be delivered.

REFERENCES
Books and Journals
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Computer Interaction (IJMHCI). 2(3). pp.31-43.
Boons, F. and Lüdeke-Freund, F., 2013. Business models for sustainable innovation: state-of-
the-art and steps towards a research agenda. Journal of Cleaner Production. 45. pp.9-19.
Cantwell, J., Dunning, J. H. and Lundan, S. M., 2010. An evolutionary approach to
understanding international business activity: The co-evolution of MNEs and the
institutional environment. Journal of International Business Studies. 41(4). pp.567-586.
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