Analyzing Business Strategy and Performance

The given document is an assignment on business strategy, which includes a list of references to research papers on the subject. The papers cover topics such as neuromarketing, knowledge sharing traits in knowledge-based organizations, the impact of corporate strategy on human resource management, and more. The assignment likely requires students to analyze these papers, identify key concepts, and discuss their implications for business strategy and performance. A suitable title for this assignment would be 'Analyzing Business Strategy and Performance.'

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
P1 Applying appropriate frameworks analyse the impact and influence of the macro
environment on a given organisation and its strategies...............................................................1
TASK 2 ...........................................................................................................................................4
P 2 Analyse the internal environment and capabilities................................................................4
TASK 3............................................................................................................................................7
P 3 Porter’s Five Forces model evaluate the competitive forces ................................................7
TASK 4..........................................................................................................................................10
P4 Applying a range of theories, concepts and models.............................................................10
Bowman’s Strategic Clock .......................................................................................................10
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Business strategy denotes the actions which are taken by the management in order to
achieve the organisational goals and objectives. It involves plans and policies which are used by
organisation to secure a competitive position in the market. The management of corporation is
responsible to make effective plans and strategy which support the business growth and help it to
get success in so that maximum profits can be generated. The main aim of this report is to make
strategy for the growth of business. To better understand this concept Vodafone has been chosen
which is a British multinational telecommunication company and established in United
Kingdom. There are various topics are covered in this report such as: PESTEL analysis, ansoff's
growth vector matrix to analyse the organisation's strategic positioning, to analyse internal
environment VRIO model has been used and strength & weakness of organisation has been
analysed. Apart from this porter's five force model has discussed in order to evaluate competitive
forces and Bowman's strategy clock model.
TASK 1
P 1 Applying appropriate frameworks analyse the impact and influence of the macro
environment on a given organisation and its strategies.
To analyse the environment is important for the business growth and business strategies
have to be made after proper analysis. A macro environment is the condition which exist in the
economy as a whole rather than a specific area or location. It involves monetary policy, gross
domestic product, employment, inflation etc. To analyse the macro environment PESTEL is
useful and manager of Vodafone can use this so that proper strategies can be made which support
the growth of company (Ghezzi, 2013).
Political factor: The business of Vodafone can be affected if this factor does not analyse
properly and it includes government rules, compliances, policies etc. The government policies of
different countries can influence the business operations of corporation. As the rules which are
made by government for telecom companies in UK are needed to be follow and the business of
organisation has spread in various nations across the globe. The management of corporation is
responsible to make effective strategies after analysing the political factor so that business of
sustain for a long term. As Vodafone operates its business at various countries such as: UK,
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India, England etc so it is important for it to analyse the policies which are made by political
parties so that its business does not affact.
Economic factor: If this factor does not analyse properly than it can affect the
performance of company. It includes interest rate, economic growth, inflation foreign exchange
rate etc. To sustain in the market it is essential for Vodafone to set the prices of recharge plan
according to the inflation rate. If inflation rate will increase in United Kingdom than purchasing
power of people can affect as a result sales of organisation can reduce (Grover and Kohli, 2013).
Inflation rate of a specific nation is require to be analyse otherwise business performance can
affect.
Social factor: It is required for Vodafone to analyse this factor and it involves age group,
income level, habits, preferences etc. It is important for the management to take effective
decisions which contribute in the growth of company. As Vodafone introduce the recharge plans
for all age group as per the requirement. As an example to attract the youngsters and children it
introduce special pack in which corporation provide more data so that they can use internet.
Because most of the youngsters have spend their time in social media so they need more data. So
this factor can positively impact the growth of organisation. For Vodafone it is require to
develops its data products which can fulfil the needs of society so that business of company can
grow.
Technological factor: To get success in the organisation technology plays an vital role
and without it the growth of company can be restrict. As the consumers of United Kingdom has
more concern about technology and to fulfil the requirement of people it provide fast services
which is helpful for the individuals to access the internet without buffering and they get high
speed data. To compete in the market it is require for the organisation to use the technology and
satisfy the needs of persons by delivering quality services. As management of Vodafone is
planning to make strategies to launch 5G services so that it can grab more market share and
increase the profits by providing quality services. If this factor is properly analyse and innovative
technology is being used than business will grow.
Environmental factor: To analyse this factor is essential for the Vodafone so that it can
survive for a long term in the market. It involves: climate & weather. There are various laws
which are implemented by the government of United Kingdom in context to the telecom
companies. As the mobile tower brings the radiation rays which are harmful for the human being
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as well as climate of the country. As government of UK has made rules in this regard which are
needed to be follow by the organisation (Hoejmose and Millington, 2013). It is important for
company to follow the environmental law so that it can operates its business effectively.
Legal factor: It is important for the Vodafone to consider this factor and there are
various rules and regulations which are made regarding it. As the management of company have
to follow the laws of intellectual property and data protection laws in order to protect the ideas &
patents of organisation. If corporation does not consider this factor than its business operations
can be affect and negatively influence the business activities of company. So it is important for
the management to analyse the macro environment factors so that business of organisation can
grow and get success and it affect the firm and its operations positively (Morgan, 2012). Legal
rules and compliances of different nations are required to be analyse so that business does not get
affected.
So it is important for the organisation to consider this factor so that effective decisions
can be taken which is helpful to achieve the objectives of company and by analysing this factor
business can grow.
Ansoff's growth vector matrix
This tool has been used by the organisation for deriving effective strategic direction and
positioning which support the growth. This model has divided into four parts which associated to
markets and service. It is important for the management of Vodafone to make proper strategies
which help in positioning of the company.
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Illustration 1: (Source: Ansoff's growth vector matrix, 2019)
Market development: This specific strategy suggest that Vodafone can launch its
existing products in different market. As company can provide its telecommunication services to
those areas which are untapped such as rural areas of India. This strategy help the organisation in
positioning as a result profits can be maximize (Purce, 2014).
Market penetration: As per this strategy, company will emphasis to capture higher
market share by increasing sales of its existing products. As Vodafone can make expansion in
Indian market by using aggressive marketing strategies and spend funds in promotional
activities.
Product development: As per this strategy company can provided new services which is
5G to the people of United Kingdom. It is helpful to increase the portfolio of company and make
it valuable and it help Vodafone to maximize the profits and grab higher market share.
Diversification: This strategy will be more risky in which company launch new products
in the new market. It does not easy to analyse the market condition, culture, income level,
preferences of people who lives in different nations. As Vodafone try to launch 5G services with
unlimited data pack and voice calling facilities in Europe and it require huge amount of
investment (Ghemawat, 2016).
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With the help of Ansoff's model company can make better strategies which provide help
it to sustain in competitive environment and it is beneficial for the organisation to earn more
profits so that it can expand its business and achieve its objectives. As current strategic position
is not sufficient because there are various competitors who perform better in the market so it is
required for Vodafone to make better strategies support the future growth and its market position
can be improve.
TASK 2
P 2 Analyse the internal environment and capabilities
Internal environment: It is a composition of several elements which are present in the
organisation and needs proper focus of the managers as well as top authorities for the purpose of
eliminating the impact they have towards the business. Several tools and techniques are been
formulated for carefully analysing and managing the internal environment. One of the tool is
SWOT analysis. The description is as follows:
SWOT Analysis: It is an useful business tool which helps the managers to analyse
strengths, weaknesses, opportunities along with threats of the organisation. Strengths and
weaknesses helps the organisation to understand the internal aspects where as opportunities and
threats are helpful in focusing the conditions pertaining in the outside world. Such analysis is
required to accept the challenges and face them by determining the available opportunities on the
basis of the strengths capitalization. Strength and weaknesses of Vodafone is as follows:
Strengths Weaknesses
1. Vodafone has covered the massive
market share in the wide distribution of
network coverage (Scholes, 2015).
2. The organisation uses various
marketing techniques to attract and
retain its maximum clients.
3. It penetrates the market by
differentiating its services which helps
in generating more revenues.
4. The organisation is successful in
5. The subscriber base of the selected
business are falling due to some
internal reasons.
6. Such entity is required to strengthen the
values by formulating as well as
implementing strategies to attract and
acquire its clients.
7. The brand valuation has also seen
drastic changes.
8. Due to economical conditions,
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building its image in the competitive
market. The brand evaluation, brand
recall and brand equity are too high.
performance of the firm has reduced.
9. The marketers spends enough amount
on research and development activities
which leads to decrease the monetary
resources of the business.
VRIO/VRIN model: It is a framework which is used by various organisations for
analysing the internal capabilities. The selected model is propounded by Jay B. Barney. Such
tool is used by the managers of Vodafone for the purpose of evaluating the organisation’s
internal environment and its capabilities. It consists of four different aspects such as valuable,
rare, inimitable and organised. All these aspects are clearly assessed by the managers in
appropriate manner (Smith, 2013). The VRIO model analysis of Vodafone is as follows:
Illustration: VRIO Model, 2016
Capabilities Valuable Rare Inimitable Organised
Research and ✔ ✗ ✗ ✗
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development skills
Human resources ✔ ✔ ✗ ✗
Market share ✔ ✔ ✔ ✗
Patent ✔ ✔ ✔ ✔
Valuable: the analysis shows that the research and development activities are highly
valued as these are highly differentiated from the competitors. It further shows that the human
resource is the highly valued as they are the important components of the organisation. Major
proportion of human resources are developed and trained in the specialisation for performing
tasks which provides more productive outputs. They are loyal as well as committed towards
work which ensures that the retention level is high of the business selected. As per the analysis,
patents are also highly valued because they helps the organisation to sell their products as well as
services without competitors interference. Patents provides greater revenue as well as market
share. The organisation get their patents renew and licensed to provide unique and patented
products only. The market share is also a valuable element for the business as they helps in
attracting major proportion of market share by attracting and retaining the customers by
satisfying their demands according to the requirements. All such elements considered as the
valuable aspects as they are important to conduct operational activities in effective as well as
appropriate manner. They all pursue high value other than competitors because of differentiated
products (Wang and Verma, 2012). As an example, company can develop those products which
provide value so that needs of consumers can satisfy and it can earn higher profits.
Rare: The research and development activities are not rare because there are several
competitors who uses such strategies in the marketing for providing products and services. This
ensures that research and development activities are in competitive parity. Human resources are
rare as identified with the helps of analysis. Market share is rare as it retained and attracted
maximum proportion of market share. The patents are also rare as these are not easily available
with the competitors.
Inimitable: the human resources are costly to inimitable as such resources are acquired
by Vodafone through prolonged profits as well as by putting higher efforts for the purpose of
recruiting, hiring, and training various employees. The business invests to develop the skills.
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Market share are difficult to inimitable as to maintain the market share for longer period is a very
difficult task for the company. Any mistake by the marketers leads to cause great harm to the
product quality in the market place. The patents are also difficult to imitate because the
managers of selected firm are not legally allowed for in imitating the patented product. Various
resources are been formulated and implemented to get the patent rights which is a costly
procedure.
Organised: the market share of the Vodafone is not organised as per the VRIO analysis
due to providing same products on low prices. Such aspect can be used by other firms to capture
the market area. The patents are organised as it requires huge investments to get the patent right
and organisation is using them according to full potentiality. The sustainable competitive
advantage helps the firm to get their patents renew before their expiration (Reich and Benbasat,
2013).
TASK 3
P 3 Porter’s Five Forces model evaluate the competitive forces
To analyse the competitive forces Porter's five force model is useful and help the
company to make effective strategies which is beneficial for the successful. It is required for the
corporation to make proper planning and set the goal as per its objectives. For Vodafone it is
important to take better decisions which help it to make higher profits and expand the business.
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Illustratio
n 2: (Source: Porter’s Five Forces model, 2019)
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Porter's five force model: This model has been developed by the Michael Porter in 1979
and it is based on five elements which help the corporation to take the advantage of
competitiveness.
Industry rivalry: For an organisation it is important to know the rivals which exist in the
industry and it is required for the corporation to know it. As Vodafone belongs to the
telecommunication industry and it has competitors such as: EE, Giff-gaff, O2. So it is important
for the organisation to analyse the competitors and try to provide better services at affordable
prices so that more number of consumers can attract towards the company. If management of
organisation emphasis to this strategy than it can earn higher profits in United Kingdom which is
helpful for the growth of corporation (De Massis and Kotlar, 2014).
Threat of entry: As company belongs to telecommunication sector and there are
different organisations which are putting their efforts to enter into this industry because of higher
revenue and growth. As it is require for Vodafone to analyse those organisations which want to
enter in this sector and can target the existing persons of the company. If corporation does not
analyse this thing than business operations of Vodafone can affected. This is threat because
market share will be reduce and it affect the sales also. So this factor can influence the growth as
well success and it is not good for the growth of Vodafone. If a company want to enter in this
sector than it have to pay huge licensing fees coupled by spectrogram availability & regulatory
issues.
Threat of substitutes: It is important for the organisation to consider the substitutes
which are available in the market. As Vodafone belongs to telecom industry and there are
various substitutes which are available in the market and if these are not analysed properly than
busienss operations of company can affect. So to deal with this factor, it is important for the
Vodafone to provide quality services at affordable price and the internet services should be fast
and also provide some additional facilities. As a result consumers will not find any substitutes
and it is helpful for the organisation to capture more market share and attract the large number of
consumers so that sales will increase which leads to profits (Chu and Khosla, 2014).
Bargaining power of buyers: To sustain in the market it is require for an organisation to
satisfy the needs of consumers and there are various companies which deals in this same sector.
Consumers have different alternatives to choose the brand as per their need and suitability. So
this is the factor which emphasis to the bargaining power of buyers. It is important for the
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Vodafone to make effective strategies to capture the more market share and it can be possible
when organization provide better services with high speed at the reasonable price. As a result
more number of consumers will attract towards the corporation which is beneficial to grab high
market share and generate more profits. As a result organisation can sustain fort a long time in
the market and take the advantage of competitiveness (Burgos-Campero and Vargas-Hernández,
2013).
Bargaining power of suppliers: As the suppliers of Vodafone have high bargaining
power since the organisation operates with high margin as compare to its competitors. It is leader
in the market and have high market share so it can easily absorb any price increments from the
suppliers more than its competitors can. So it is important for the organisation to make effective
strategies which support the growth of company and does not hamper the operations of it.
As there are various competitors in telecommunication sector which are emphasis
towards innovative products so that they can capture more market share and maximize its profits.
In context to attractiveness it is require for Vodafone to provide valuable products so that
maximum number of consumers can attract towards the organisation and its profits can increase
and it can sustain for long term and beat the competitors.
TASK 4
P4 Applying a range of theories, concepts and models
Bowman’s Strategic Clock
Bowman’s Strategic Clock is a model that shows how product should be positioned to
give it competitive position in market. It positioned a product based on two dimensions – Price
and perceived value. With the help of this model better strategies can made which are as mention
below and these directions support the growth of company as these are as mention below:
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Vodafone is a multinational telecommunication company incorporated in 1982 whose
headquarter is in London and Newbury. It operates its network in 25 countries. It provides
telecommunication and IT services to its client throughout the world. For smooth working of the
organization Vodafone use Bowman’s strategy (Blackburn and Wainwright, 2013).
Low price and low value added
Here product are not distinguished and customer notices very little value despite of
products low price. To remain competitive Vodafone has to lower its prices in such a way no
other company is able to weaken the value.
Low Price
Vodafone must follow the strategy of cost minimization. It is the strategy that purposes to
achieve the cost effective way of delivering goods and services. Although profit margin is low
but company can achieve profits by increasing the volume of outputs.
Hybrid
This position include product differentiation and some product whose value is low.
Vodafone can use this strategy as effective positioning strategy by using a combination of
reasonable price product and product differentiation which overall increases the position of it in
the market.
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Differentiation
The aim of differentiation strategy is to offer customers the maximum level of apparent benefit.
Vodafone can take benefit of this strategy as branding plays a great role. Being a popular brand
having a good brand value it offers high quality of products and awareness among the customers,
which help it to achieve relative prices for its product.
Focused Differentiation
This strategy purposes to position a product at highest price where customers buy the
product because of its high apparent value. Vodafone use this strategy to achieve premium price
by promotion and distribution and only the best product of the company sustain for a long time.
This helps to increase the profit margin of the product which overall result in profitability of
company.
Risky high margin
This strategy is related to setting high prices for the products for short time period to
earn good revenue. Eventually, it is considered as high risk strategy because this is not successful
in the long time period. After a particular time period, customers can find another alternative
product which will be of lower price. Herein, the Vodafone company, if they applies this strategy
then, their can be a high risk because it is not surety that customer will prefer high pricing
products.
Monopoly pricing
In this pricing system, one particular company leads in the entire market. They determine
the price as per their need. In this situation, customers do not have any choice. They have to
purchase the products on the price which is determined by the leading company. This strategy
seems difficult to implement for the Vodafone because they are not dealing in the monopoly
market (Bansal and DesJardine, 2014).
Loss of market share- It is the final strategy of Bowman's strategic clock. According to
this if company is not producing the good quality products and selling the products at same price
then it would be difficult to survive in the market. They can loss their market share. If Vodafone
company offers lower quality services to the customers on high price then it would be difficult to
survive for them in the competitive market.
As porter's generic model can be used by the organisation which is useful in strategic
planning. This model has four elements such as:
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Burgos-Campero, A. A. and Vargas-Hernández, J.G., 2013. Cost leadership strategy: This
strategic suggest that Vodafone can maximize the profits by minimising the costs of its data
pack, while changing industry average price. As it is helpful to capture more market share with
the help of this cost leadership strategy and can earn higher profits.
Differentiation strategies: This specific strategies suggests that Vodafone can something
different and provide distinct services which are not provided by the other companies. As
manage of Vodafone can make strategies to launch 5G services so that it can grab more market
share.
Focus strategy: As per this strategy it is require for the organisation to focus on a
particular niche market so that it can understand consumers are satisfy or not with the services
provided by company. While introducing 5G services it can make trail in the specific area so that
it can know the responses of consumers about its services.
Differentiation focus: As per this strategy Vodafone can target niche market where is
very little competition and it can provide quality services with extra features. The strong image
of brand will attract the consumers. So it can provide innovative services to attract more number
of consumers such as: two months free data service while launching 5G network (Baden-Fuller
and Mangematin, 2013).
As strategies are made which support the growth of company and for that purpose
Vodafone can provide better services in order to grab more market share. For that purpose it can
make more advertising so that maximum consumers can aware about the company and it should
try to provide its services to untapped areas so that business can expand and it can generate
higher profits.
CONCLUSION
As from the above report, it has been analysed that it is required for an organisation to
make effective strategies for the business so that all workers can perform their roles and duties as
per the requirement and it support to achieve the objectives of company. With the help of
PESTEL model macro environment can be analysed and to know the organisation's strategic
positioning Ansoff's growth vector can be used by the organisation. By applying VRIO model
strategies capabilities can be identified. As the porter's five force model is useful to analyse
competitive forces for a specific sector. It is important for the firm to identify its strength and
weakness so that it can make corrective measures for the improvement. As Bowman's strategy
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clock model is useful to make the corporation aware about its market position as compare to the
competitors. For the strategic planning porter's generic model is beneficial for the corporation.
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