Business Strategy of Vodafone - Essay
Added on 2020-07-23
12 Pages4374 Words53 Views
Business Strategy
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1Impact and influence of macro environment on business organisation and its strategies...........1TASK 2............................................................................................................................................4Assessment of internal environment of enterprise......................................................................4TASK 3 ...........................................................................................................................................6Examine the competitiveness of telecommunication sector.......................................................6TASK 4............................................................................................................................................8Strategic directions and options available to enterprise..............................................................8CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................10
INTRODUCTIONBusiness strategy is defined as a long term action plan that a firm design to achievespecific objectives and goals. Strategy is known as set of action that is choose by firm strengthenbusiness's performance (Aithal and Aithal, 2016). This highlights the way in which operation ofcompany should be executed to achieve desired objectives. It provide a road map to managementand guide in perform actions. Effective business strategy does not ensure success but make thefirm able to handle adverse conditions. Vodafone, a mobile telecommunication firm whichoperate in Europe, Africa, Middle East and United States is consider in this report for study. Thisis now one of the leading telecommunication firm and this is one of the significant player thatoffer telecommunication services. Various element exist in business environment and impact ofthose on actions and strategies of a firm is given in this report. Further internal capabilities andresources of Vodafone is also included in this. Competitiveness of telecommunication sector inUnited kingdom is mentioned in this. Along with this, strategic options and direction available toentity to achieve its objectives is also detailed. TASK 1Impact and influence of macro environment on business organisation and its strategiesMacro environment consist those uncontrollable elements that affect the decision makingprocess of entity and impact on its strategies and performance (Basco, 2015). Legal, political,social conditions, natural forces, demographics and technological changes are the major macrofactors. Further, change in government regulations and strategy adopt of competitor is also comeunder this. Main elements of macro environment and its impact on business strategies andactions of Vodafone can be understood by following points:PESTLE Analysis: Today Vodafone is come under one of the best telecom organisation.It operate in pre than 30 countries and is expanding its operations on a fast speed. Due tooperate on a global level various external factors are there that impact on its actions andstrategies.Political factors: This is one of the element that largely impact on business operations ofa firm like Vodafone as it require to build infrastructure for the firm to operate in a specific area.Operations of firm are dependent on the political condition present in state (Temminck, Mearnsand Fruhen, 2015). Elements such as political instability and peace of state direct affect the1
operation of firm. For example; recent conflict taken place in Europe largely impact theoperations and decision of Vodafone. Economic factors: This is another macro element that impact on business operation of aentity like Vodafone. The more the states will develop then there are the more chances oforganisation to expand its business activities in new areas. Good GDP of a state indicate thatindividuals has high income and are more interested in adapt the technology. All this directlyincrease the profits generate by company and make the firm able to expand its activities oninternational level. Economic crisis in recent time directly affect the business operation ofVodafone. Global uncertainty has influence the organisation to change its business strategies oncontinuous basis. Social factors: This aspect indicate the culture and local beliefs of individuals living inthe area in which company is operating. This element largely impact on success of firm and inthis case company require to indicate flexibility in its business policies and strategies pertain tolocal culture (Rugman and Verbeke, 2017). As Vodafone is a European firm but it has changesits business policies and preferences as per the social elements in which firm is being work. Technological factors: Vodafone is very popular and famous for its innovative productsand features. Mission of enterprise is to always work as the trends going on in communicationand technological area. Today so many competitors of Vodafone are there in market. In this kindof situation, it is very essential for entity to go one step ahead with technology. As Vodafonedeal with the products that are related with technology so it is very necessary for entity toexamine the policies and analyse the forthcoming launches of technical products and features ofdevices. As Vodafone a technology driven firm so focus of company should remain on the latesttrend of technology. Legal factors: As Vodafone is a global company and operate on a international level sothere are so many competitors of firms are there. In this case, firm require to be very alert aboutthe legal issues such as pirated and copy (Ghezzi, Cortimiglia and Frank, 2015). Various statesblamed the Vodafone doe so may legal problems and due to this company face so many legalpenalties. Further, this firm is has faced the issue of not paying much to its staff members ascompare to its other competitors. Due to this, individuals leaves the firm and join the rival's firmwhich increase the risk of leakage of innovative ideas. In this case, firm require to bringtransparency in its business operations. It is very essential for firm to follow all rules and (Aithal2
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