Business Strategy Analysis- Vodafone

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Analyse the impact and influence of macro environment on Vodafone organisation and its
strategies.................................................................................................................................3
TASK 2............................................................................................................................................6
P2. Analysation of internal environment and capabilities of Vodafone organisation using
VIRO analysis........................................................................................................................6
TASK 3............................................................................................................................................8
P3. Porter's five force model to evaluate the competitive forces of telecom sector for
Vodafone................................................................................................................................8
TASK 4..........................................................................................................................................11
P4. Apply a range of theories, concept and model, interpret and devise strategic planning for
Vodafone..............................................................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES................................................................................................................................1

INTRODUCTION
Business strategy refers to the set of tactics which form up a long term action plan that
support an organisation to achieve its goals and objective. These strategies provide a path way
along with set of activities to be performed with an aim to reach at targeted objective. Vodafone
group Plc is a British multinational telecommunication organisation which is headquartered in
Newbury, Berkshire. It is considered as one among the largest mobile network around the world
and provide services in approx. 25 countries. This report is about business strategies and its
contribution toward an organisational success (Aubry and et. al., 2012). The report describes
about the impact of macro environmental factor on business strategy by applying Pestle and
Ansoff matrix framework. It will also brief about internal environment and capabilities of
Vodafone using VIRO analysis. In addition to this it also includes Porter's five Force model for
industrial competition evaluation and then app lication of different theories, models and concepts
for strategical planning.
TASK 1
P1. Analyse the impact and influence of macro environment on Vodafone organisation and its
strategies
External environment refers to the combination of various factors that are present outside
the organisation but have a great influence over the operations performed by a company. Hence,
in order to perform its operations effectively, Vodafone must focus over evaluating external
environment on regular basis to determine the changes happen so that major actions could be
taken on time.
PESTLE analysis:-
Macro environmental factors have a great influence over the strategies formulated by a
company as these elements affect the way in which business operates. Hence it is very essential
for Vodafone to evaluate the macro environmental factors and the way it affect the organisational
operations whether positive or negative (Burgess and Radnor, 2013). So for this analysis
PESTLE tool can be used which help in identifying various threat and opportunities present in
marketplace for Vodafone. Pestle analysis of Vodafone is explained below:
Political:- This includes factors like change in governmental policies, rules and
regulations of a country. The government of UK is stable and consider as one of the most

successful country in term of rule implementation, corruption control, regulatory quality and
government effectiveness. Vodafone has to consider several rules and regulation in order to
achieve sustainability within marketplace like, communication Act 2003, a consolidation of
telecommunication regulators (UK telecommunications regulation, 2019). This regulate the
communication medium by restricting Wi-Fi broadband connection without permission.
Economical:- It includes factors like inflation-deflation rate, foreign exchange rate, taxes
etc. UK has experienced a huge downturn within its economy after global crises which affect the
financial health of not only businesses but also people living in that area (Cacciolatti and Lee,
2016). The result of which disposable income of people are not much high and Vodafone have to
offer its services at lower price in order to maintain its customer base.
Social:- It includes factors like customer taste, preferences, demand, social trends,
cultural norms which affects the choice of customer. In UK more than half of the population i.e.
53% in age between 16-75 years are using smartphone and require a network with high speed. So
it is a greatest advantage for the Vodafone as it promises to provide high speed 4G internet speed
over a lower frequency rate.
Technological:- UK is one of the most technologically advanced countries which is a
major concern area for Vodafone as number of player within Telecom sector are bringing new
technologies to provide more reliable and customised services to its target market. Vodafone
always remain active in utilising the technological facilities provided by the country and with the
help of which company is planning to launch high speed data services that is 5G network by
2020 (Vodafone 5G in the UK, 2019).
Legal:- It refers to the certain law as well as standard that a company must follow in
order to perform its operations effectively within the marketplace. There are certain laws
formulated by government to govern the practices performed by companies belongs to telecom
sector that includes data protection Act 1998, Consumer right Act 2015, Consumer Contract
Regulation 2013 etc. (regulation and outsourcing in the UK, 2019). These all must be followed
by Vodafone in order to provide its services legally and by protecting the rights of customers
which help in making a positive brand image within marketplace (Cserháti and Szabó, 2014).
Environmental:- It refers to the factors like change in climate condition, natural disaster,
seasonal changes that may affect the operations performed by company. Being a part of telecom