Business strategy

Business strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Application of appropriate framework to analyse impact and influence of macro
environment............................................................................................................................3
TASK 2............................................................................................................................................6
P2 Evaluate the internal environment and capabilities...........................................................6
TASK 3............................................................................................................................................9
P3. Porter's Five Force model for evaluating the competitive forces ....................................9
TASK 4..........................................................................................................................................11
P4. Apply a range of theories, concept and model, interpret and devise strategic planning for
Vodafone..............................................................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Business strategy consists of set of tactical decisions which help in formulating a
strategical action plan that support an organisation to get accomplished with its goals and
objectives. These formation of strategies provide a pathway along with set of activities to be
performed for achieving the pre-specified organisational objectives. Vodafone group plc is a
British Multinational telecom service provider organisation which has its headquarter in
Newbury, Berkshire. Vodafone is consider as the largest mobile network throughout the world
which provides its services in approximately 25 countries. This report contains an evaluation of
macro environment through PESTLE and Stakeholder analysis along with VIRO and SWOT to
determine the internal capability of company for dealing with competition. In addition to this, it
also explains about Porter's Five force model and Ansoff matrix along with Porter's generic
strategies to determine most suitable strategy for developing a strategic action plan to achieve
competitive advantage.
TASK 1
P1 Application of appropriate framework to analyse impact and influence of macro environment
External environment is defined as the combination of several attributes that exists
outside an organisation but, directly influence the functioning of organisation in both positive
and negative manner (Aubry and et. al., 2012). Hence, for ensuring smooth running of business,
it is crucial for Vodafone to perform external environment analysis on continuous basis for
having an understanding regarding trends or changes that are present in external environment. So
that, organisational strategies can be formulated accordingly for ensuring effective execution of
business operations and accomplishment of organisational mission, vision and objectives that are
mentioned below:
The mission of Vodafone is “to enrich the lives of customer through the unique power of
mobile communication. The main vision of Vodafone is “to develop a world class digital
experience to connect and inspire each individual for building a better tomorrow. The objectives
over which Vodafone work are mentioned below: To become most loved brand through
continuously delivering delightful experience by offering meaningful innovation within services.
To become most respected company through leveraging the innovation and technology to
catalyze social prosperity, inclusive and digital literacy.

Hence, in order to accomplish these, Vodafone is required to formulate strategy which
provide pathway to achieve these objectives and for this, company is required to perform
external environment evaluation with the help of PESTLE (Burgess and Radnor, 2013). It refers
to a strategical tool which work over six major factors that are present in macro environment to
formulate best possible strategy by identifying the opportunity or threat present in external
environment. The PESTLE analysis of Vodafone is mentioned below:
Political:- This factor perform analysis over governmental affairs of particular country
like modification performed in political policies, rule etc. within a specific time period. UK
enjoys political stability and also consider as successful nation in context of corruption control,
governmental efficiency and regulatory quality. Vodafone is required to follow several
regulations passed by government for taking valid strategic decision in order to remain
sustainable at marketplace. It includes communication Act 2003 (PESTEL ANALYSIS OF
VODAFONE GROUP, 2019), which regulates the telecommunication medium by adding
restriction over Wi-Fi broadband networks that are operating without permission.
Economic:- It consists of factors like foreign exchange rate, inflation-deflation, taxes,
etc. Though UK ranked as 5th largest economy in term of its GDP, but still the economic crises
left huge influence over financial health of businesses as well as people operating their (PESTEL
analysis of the UK, 2019). Hence, it have a negative influence over Vodafone's growth as the
disposable income of people in UK is low because of which it has to offer services at lower price
(Cacciolatti and Lee, 2016). This highly affect the strategic decision of Vodafone as now
company have to formulate such strategies which support in saving the cost of company so that
profit can be earn from market by reducing internal expenses.
Social:- This includes taste and preferences of customers belongs to particular region in
which company perform its services. In UK, majority of population comes under the age group
of 16-75 years that are using smartphone and demand for a network offering higher speed. This
proves to be greatest advantage for Vodafone as it offers a high speed network i.e. 4G internet at
lowest possible frequency rate. It influence the tactic actions taken by Vodafone as promises to
deliver high speed network which support company in increasing its customers base. But to
maintaining this market share Vodafone is required to take tactic decisions on timely manner to
kee4p its customer retained.