Business Strategy of Vodafone: Doc

BUSINESS STRATEFY

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Analyse the impact and influence which the macro environment has on organisation.........1
TASK 2............................................................................................................................................2
P2. Analyse the internal environment and capabilities of Vodafone..........................................2
VRIO/ VRIN Model ...................................................................................................................4
TASK 3............................................................................................................................................5
P3 Porter's five force model to evaluate the competitive force of telecommunication sector....5
TASK 4............................................................................................................................................7
P4 Applying a range of theories, concepts and models, interpret and devise strategic planning
for a given organisation...............................................................................................................7
Justifying and recommending the most appropriate growth strategies......................................8
Produce a strategic management plan with strategies, objectives and tactics.............................8
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................1

INTRODUCTION
Business strategy refers to the formation of long term action plan that support an
organisation to achieve its goals and objective. It provides a path along which activities is to be
performed with an aim of achieving the targeted goal. To study this report Vodafone Group Plc
is taken which is multinational telecommunication organisation whose headquarter is situated in
London. Vodafone operates in about 25 countries and has a partner network in 47 countries. The
company is also ranked at 4th position in the number of customers using mobile. This report is
about business strategies and its contribution toward an organisational success. The report
describes about the impact of macro environmental factor on business strategy by applying
PESTEL analysis (Amran, and et. al., 2016). It also brief about internal environment by using
SWOT analysis. In addition to this it also includes Porter's five Force model for industrial
competition evaluation and then application of different theories, models and concepts for
strategical planning.
TASK 1
P1 Analyse the impact and influence which the macro environment has on organisation.
External environment refers to the factors that are present outside the organisation and
are affecting the operation of a company. External environment is then further classified into
macro and micro environment. In order to perform the function effectively Vodafone conduct a
PESTEL analysis that will discuss about all the major changes that are affecting the functioning
of a company.
PESTEL Analysis:
It is a framework which is used in order to understand about the macro factors that have a
impact on an organisation. It is very important for Vodafone to analyse whether external
environment has a positive or negative impact on its organisation. PESTEL analysis is explained
below:
 Political factors: It include the factors like government policy, tax policy, trade
restrictions etc. UK is most successful country in the term of implementation of laws.
Vodafone has established its infrastructure according to the government in order to take
advantage of its brand image. Vodafone has to consider several rules and regulation in
order to achieve sustainability within marketplace like communication Act 2003.
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 Economical factors: It include the factors like economic growth, interest rate, inflation
and so on. The global crisis has a huge impact on Vodafone as due to this financial
condition of people as well as company got affected. The company should decrease the
price of its services so that economical group can easily take the advantage.
 Social factor: It include the factors which involved the share belief of population. It
include the factors like population growth, culture norms, social trend etc. Education
level of people of UK is high which is a positive impact on Vodafone company as they
are able to acquire it (Anwar and Hasnu, 2016). As people are educated, by making the
use of new technology will definitely attract lot many customers.
 Technological factor: UK is one of the most developed country and is making a proper
use of technology. Vodafone my making the use of latest technology is able to provide
customised service to the targeted market. Vodafone is serving its client with latest
technology and has a aim to launch 5G network in the upcoming years.
 Environmental factor: It refers to the factors like climatic change, scarcity of raw
material etc. on which an individual don't have a control. These factors affect the
performance of an organisation in one or another form. Vodafone must make use of the
technology that has zero affect on the environment. It must look after the fact that
radiation free service to be provided so that there is no adverse impact on ozone layer.
 Legal factors: It refers to the laws that company must follow in order to perform
effectively. Government has established some laws in the telecommunication sector
which every company need to follow. Vodafone must follow Digital Economy Act 2017,
Consumer Right Act in order to provide its services legally to its customers which in turn
help in making a positive brand image within marketplace.
TASK 2
P2. Analyse the internal environment and capabilities of Vodafone
Internal environment refers to the factors that are present inside the organisation which
affect the activities and decisions of the company. It is basically affected by the activities and
decision of the organisation (Buckley and Ghauri, 2015). In order to analyse the micro
environment, Vodafone must conduct SWOT analysis in order to anticipate the changes that
occurred within an organisation for developing a competitive advantage.
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