Vodafone Business Strategy Assignment

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Analyse the macro environment............................................................................................1
TASK2.............................................................................................................................................5
Assessment of internal environment of company.......................................................................5
TASK 3 ...........................................................................................................................................7
Examine the competitiveness of telecommunication sector.......................................................7
TASK 4............................................................................................................................................9
P4 Produce a strategic management plan with tactical and tangible strategic objectives.........9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business strategy is known as long term planning of business activities. This is the means
by which an enterprise set out to achieve set goals. Business strategy typically cover a time
period of 3-5 years. Mainly business strategy is concerned with major issues related with
resources such as raise funds in order to develop a new plant (Aithal and Aithal, 2016). One of
the main benefit of business strategy is that it help managers in take better decisions and guide
employees to perform their job roles. With effective business strategy, entity can achieve
optimum utilisation of resources which enhance efficiency of organisation. Business strategy
does not ensure success of organisation but provide basis to handle complex and difficult
situations (Akter and et. al., 2016). Vodafone, a firm that operate in telecommunication sector
and provide its services in various areas of globe such as United States, Europe, Africa and
Middle East is consider under this report for study. Evaluation of external environment and its
impact on strategic decisions of firm is all detailed in this. Further, tools that can be use by
Vodafone to ascertain its strengths and weakness is also given in this report.
TASK 1
P1 Analyse the macro environment
External environment is known as macro environment which consists various elements
and factors on which firm has a little or no contralateral and that largely affect the actions and
decisions taken by firm (Basco, 2015). Carry out a study for identify and examine macro factors
is very important for Vodafone as this help in formulate a better strategy and also provide basis
to deal with complex situations. Mainly macro environment consists factors such as political,
technological, legal, economic and many more. To determine the impact of all these factors on
functioning of Vodafone, here is a tool called PESTLE analysis that can be use by firm.
PESTLE analysis: This is tool that provide an opportunity to manager to analyse the
factors exist outside the entity and affect its functioning. Today Vodafone operate in more than
20 countries so carry out this analysis is very essential for Vodafone for formulate better
strategies and policies. Political factors: Government and the various rules and regulations introduce by it for
monitor and keep a control on business activities is come under this (Cascio, 2018).
Before expand its business activities in new areas, every entity require to get approval
from government. Further, government stability and modification in the system is all
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come in this. It is very essential for Vodafone to carry out an analysis of political system
of a country before take expansion decision. Economic factors: This is known as another most significant macro element as this
reveal the rate of inflation, deflation, exchange rate and GDP of a country. Good
economic status increase the chances of firm to achieve success (Ghezzi, Cortimiglia and
Frank, 2015). Good GDP indicate high purchasing power of citizens and increase the sale
of of firm's good. All this help entity in generate more profits and ensure its long term
survival. This is one of the element that require to be consider by Vodafone as economic
crisis largely affect its activities. Social elements: It is another component of PESTLE tool and this provide an opportunity
to firm to collect information about the beliefs and culture of people living in the area in
which entity wants to operate. This make the manager inform about the features which
should be there in product to attract more customers and to get customer satisfaction.
Further this increase trust and loyalty of consumers towards the brand. Vodafone do
modification in its strategies and policies as per the social elements and this provide
various benefits to firm. Technological factors: In today's business environment, every size or type of firm use
technology for increase its customer base and to keep them for a long time period. In case
of Vodafone, one of the main feature of entity is that it use up to date technology and
offer innovative services to its clients (Higgins, Omer and Phillips, 2015). Effective use
of technology help in maintain competitive position in market and at the same time
support offer better services as compare to its rivals. It bis very important for Vodafone to
keep a eye on technology trend in market to respond to the changes in better manner. Legal factors: This factor of external environment contain the rules and regulations given
by legal bodies which require to be follow by firms otherwise it give rise to a legal
penalty. Vodafone also face some issues that entity is fail to pay attention to the specific
requirements of its employees and due to this, employee turnover is very high. In this
kind of situation to keep its workers for a long time period, entity require to pay more
attention to the needs and requirements of its customers so they can contribute more in
success of entity (Johnson, 2016). For maintain its activities in various areas of world,
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