Strategy Implementation and Business Process Management

The provided text is an excerpt from a solution to an assignment on strategic management and business policy. The text discusses various concepts related to strategy implementation, such as the governance of corporate sustainability, human resource strategy, and business process management systems. It also references several academic sources and online resources, including articles, books, and websites. The text provides a detailed analysis of these concepts and their application in real-world scenarios.

Business strategy

TABLE OF CONTENTS

INTRODUCTION
Business strategy is context of organisation is analysed as an essential process of
developing plans and policies with an intent to accomplish business objectives. Policies have
been made to perform various important business functions and activities which tend to provide
major requirements of individuals at workplace (Ghezzi, 2013). Telecommunication sector in the
UK is continuously moving towards direction of transformation and accelerating development of
growth opportunities. By developing effective business strategies, telecommunication
organisations such as EE, Vodafone, BT, Giff-Gaff, Virgin and BT have achieved high
profitability and growth in the market. Present report is based on analysis of Vodafone which is
the fastest growing telecommunication sector enterprise having its global market presence. It’s
current target is to be the world's largest top five brands and expand its global presence by the
way of dual branding practices with more than 30 companies which provide support in
achievement of growth and recognition in market. Present report is based on analysis of
influence of macro environment factors on Vodafone along with their strategic business
positioning in market. Further, strategic capabilities of company have been determined through
application of VRIN analysis model along with strengths and weaknesses. At last, Bowman's
strategy clock have also been applied to determine strategic direction and option of growth
available for Vodafone in telecommunication sector.
TASK 1
P1. Influence of macro environment on Vodafone and its business strategies
Business enterprise in telecommunication sector continuously analyses their market
trends and requirements of customers in order to make strategic decisions for development of
new products and services (Okyere, Agyapong and Nyarku, 2011). Vodafone is identified as
market pioneer in industry which has continuously adopted various policies and plans to
dominate its market. Macro environment of business is analysed as combination of internal and
external factors which directly influence revenue and profitability of organisation. In the present
context, Vodafone has been directly affected by macro business environment due to continuous
fluctuations in economy and requirements of people. Below given point will determine
implications provided by macro environment on business and strategies of Vodafone such as:

PESTLE analysis
 Political: These factors are identified as influential in direction of progress of
organisation like Vodafone because it has developed infrastructure of organisation in
order to be operational in particular area. It involves various factors like government
policies and provisions related to telecommunication sector has provided influence on
revenue and profitability of enterprise (Ghezzi, Cortimiglia and Frank, 2015). Further,
Brexit has almost cut down its relationship with supplier in European countries and
imposed restriction of business in European countries. Growth rate of company has also
declined after the announcement of Brexit. In addition, regulation communication charges
and tariff plans have also increased the challenges for organisation to sustain its business
in politically unstable countries. For example: Vodafone's profitability of current
financial year is declined by 10% from previous year.
 Economic: It involves factors like fluctuations in currency exchange rates, burden of
taxes and inflation within economy which has provided a wide influence on business
operations. This major requirements have directly influenced operating cost of Vodafone
and reduced their profitability. Apart from this, sales graph of telecommunication sector
has been increased due to economic growth of country. Growth in economy refers to rise
in the purchase of people within industry.
 Social: These common social factors associated with telecommunication industry
involves are all about changing customer’s preferences, attitude and safety ( Klettner,
Clarke and Boersma, 2014). With continuous, requirements of clients in
telecommunication sector have also upheld which is a challenge for organisation to meet
customer requirement. For example: more than half (53%) of 16-75-year-olds in the UK
use their smartphones and for this, they need the fastest networking service which needs
to be provided by Vodafone at competitive prices.
 Technology: Emergence of new technological factors such as use of social media
application, sales of smartphones, digital communication and use of internet service have
also raised requirement of fast network that will meet the requirement of customers. In
the present context, Vodafone has developed the fastest network for accomplishment of
customers’ requirements and organisation clients. For example: Vodafone has also started
its 4G plans at low rate with high speed and free data to meet requirement of customers.
2

 Legal: Vodafone is required to be very vigilant about legal problems like copy and
pirates issues. It involves various policies like Taxation, employment, health and safety,
common laws,consumer protection act and other regulation which has also affected
decisions and growth of company. For example; Rise in minimum wages have also
influenced the operating cost of organisation. This has resulted in declined in profitability
and number of consumers in market.
 Environmental : Vodafone has been analysed as highly dynamic business enterprise
which is competing with various other international organisation in telecommunication
sector. I have also accomplished various important business performance that needs to be
effectively accomplished by management. Further, Company has also adopted recycle
programmed in various countries in order to promote various important procedures.
Highly effective business process involves analysis of various important business
ventures. Policies of government related to mobile tower in residential areas have also
affected business because company faced problems in taking licenses from government.
P1 Ansoff's growth vector matrix for analysis of strategic position
These essentials road map has been presented by in the form of matrix which has its four
important quadrants with the taxes of products and markets being the determinants of strategies. Market penetration: It usually happens when the company does marketing of its existing
products as methods to raise market share of enterprise. High growth rate will intend to
raise in business opportunities which will enhance growth of organisation in
market(Wheelen and et.al., 2017). Vodafone should ensure that it posses the major
current competencies, resources and gear limitation towards the growth oriented
methodology.
 Products development: It provides understanding that this strategy will successful for
Vodafone when they have already established themselves in existing markets and all that
which required to do is to launch new and important products. In this context, Vodafone
possess capabilities to adopt products development strategy because it will support in
achievement of business objectives. They will new and innovative products in market to
attract customers and earn higher revenue. For example: Vodafone has provided new 4G
plans with high speed network customers.
3

 Market development: Study provided understanding that this strategy is applied by
organisation when existing products and service are marketed by Vodafone in new
market. It is suitable for organisation who have strategic capabilities to sustain in market.
Vodafone has ensured that their competencies must be aligned with products rather than
market. It is more risky than in the interest of organisations.
 Diversification: Management experts within enterprise recommend diversification
strategy only when the firm is sitting on enough cash and other resources because the
firms requires deep pockets to stay at cost before the timely profits are realized
(Rajasekar, 2014). In present context, it is analysed that Vodafone's has high market
share but diversification will not be appropriate because it contains high risk of failure.
For example: Diversification of Vodafone in mobile market was identified as tough call
because it requires huge investment and experience to attain profits. Strategic positioning
is analysed as market opportunities in which all they need to do is increasing their
marketing efforts and improvement of market share.
Critical analysis of Ansoff matrix provide understanding product development strategy
needs to be used by organisation which provides them growth in market, they all need to do is to
develop new products and services for their continuously in order to achieve high position in
market.
TASK 2
P2(I) Meaning of strategic capabilities
Strategic capabilities in market refers to ability of business to successfully employs
competitive strategies which allow the organisation to survive in telecommunication sector and
increase its values overtime (Strategic capabilities, 2017). A business capability is essential
constituent in existing financially viable as well as increasing despite the existence of rivals in
market. Various elements provides their contribution to build strategic capabilities of
organisation like assets such as cash, property and patents which has contributed to a business
ability in order to formulate and apply strategies (Verbeke, 2013). Vodafone high strategies as
they have achieved strong financial growth and profitability. Other elements involves human
resource and organisational structure since employees skills and leadership capabilities
contributes towards their business competitiveness in market. In past several years, Vodafone
has been identified as market pioneer in telecommunication sector which has major strategic
4

capabilities which has provided them ability to expand their business at global level. Strong
competitive position has also intended to provide capabilities to maintain its dominating position
in market. Moreover, application of strategic capabilities has encouraged business to achieve its
desired goals and objectives. Low cost leadership in market is a strategic capability of Vodafone
which is developed by management to raise competition in market. This implementation of
effective business strategies have raised strategic capabilities of organization to attain growth and
recognition in market. Vodafone also the fastest growing network and presence in
telecommunication sector which has intended to decrease their competition in market.
P2 (ii) Application of VRIN model for determination of strategic capabilities.
VRIN model considered as strategic tool utilized for the purpose of understand
company's internal and external capabilities to analyse that whether these resources will sustain
competitive advantage for organisation. Presently it is analysed business always differ on basis
of their resources based upon investigation of these effective resources and how these important
resources will be complied with together. Strategic capabilities of organisation can be analysed
on the basis of four elements mentioned above:
 Value: Fastest network and technology is identified as valuable resource for Vodafone as
it enable them to implement new product development strategies that will improves their
efficiency and effectiveness through employment of various opportunities (Grant, 2016).
Decline in cost of operations has also been a resource which increase its profitability in
market (From Firm Resources to Competitive Advantage, 2017).
 Rareness: It states that resources held by business needs to be rare and should acquired by
one or few companies. High experience and global market presence is identified as rare
resources which is held by Vodafone and provide them competitive advantage in market.
 Immutability: As per study, valuable and rare resources provide support to company in
engage in strategies which other organisations cannot use since other organisation does
not posses relevant resources, there will no grantee for long term competitive advantage.
For example: wide range of products and services have been delivered by organization to
their customers at low rate in order to sustain their competitive advantage over rivals.
 Non sustainable: This element of model depends upon the assumption that an ideal or
major resources will not be copied by rivals in market. No such type of resources are held
by Vodafone which cannot be substituted by other competitors in market.
5

P2 (iii)Strength and weaknesses of Vodafone
Strengths: In present scenario, Vodafone has its wide are communication in different
countries as well as coverage of network. Further, it regulates its business in 25 countries.
Continuous rise in monetary position of organisation also supplied them a lot of opportunities
for business expansion and operation globally. Strong financial position usually intends to
provide a financial leverage, capabilities to assimilate high risk and important competencies to
work in effective market directions (Davis, 2012). Through delivery of fast communication
network, and technology based products such as Wi-Fi, broadband and other products have also
developed strong brand image of organisation in telecommunication. Presently is Vodafone has
adopted low cost strategy to serve large number of customers. In addition, in developed market,
Vodafone has generated bulks of revenues as compared to competitors like EE, BT and Virgin.
Etc. High customers base and strong brand loyalty has intended to sustain growth rate of
company in market. Continuous innovation in products and services have also raised market for
organisation to increase their profitability.
Weaknesses: high dependency on European market is identified as major deficiency of
Vodafone to achieve high profitability. In Asian countries, Vodafone has very less presence in
market due to restriction of government and other competitors. Low growth rate is also
identified as weaknesses for organisation which does not enable them to compete with
competitors in market (Ho, Wu and Wu, 2014). Less referred network and lack of proper service
has also provided influence on its sales and profitability in market. Rise in technical issues and
network problems has also affected perception of customers towards organisation in market.
Lack of qualified employees and strategy developed due to which company is facing issues to
sustain business in global market.
Task 3
P3 Evaluating the competitiveness of UK’s telecommunications sector using Porter’s five Forces
model.
Porter's five Forces is a strategy to take decision away from analyzing the present
competition. Porter Five Forces focuses on - how Vodafone Group Plc can build a sustainable
competitive advantage in Wireless Communications industry. By analyzing all the five
competitive forces Vodafone Group can gain profit in the Wireless Communication Industry.
6

These are The Porter Five (5) Forces-
 New Entrants Threat,
 Bargain Power of Suppliers,
 Bargain Power of Buyers,
 Threat from Substitutes, and
 Rivalry existing players.
1. New Entrants Threats: New entries in the market of telecommunications brings
innovations, new ideas, experimenting etc. all these put pressure on the Vodafone Group
through many ways like reducing costs, lower pricing strategy to provide new value plans
to the customers (Bamberger, Meshoulam and Biron, 2014). All these challenges are
managed by the company and should apply effective measure to overcome from these
threats from new entrants in the market. In this, threats of new entrants for organisation in
market is very low because new entries requires huge capital and time to reach at
international level.
2. Bargain Power of Suppliers: The company has a higher bargain power as the company
operates with greater margins. Supplier who are in dominant position in the market can
have the power to decrease the margins which Vodafone Group can earn. It can be done
by building design, coming up with new planes and services, etc. In this, suppliers has
high power as there are less number of suppliers in telecommunication sector who
provide their service to organisation.
3. Bargain Power of Buyers: The Bargaining power of buyer is usually at the top in the
market because of the competition. A strong buyer can reduce the cost price of the
company in the industries, for this Vodafone Group should make reasonable profits as
compared to their competition. To limit the bargaining power of buyers Vodafone Group
should come up with new products. Further, rise in technology has increase power of
buyers to make choices between organisation on the basis cost, quality and requirements
etc.
7

4. Threat from Substitute: Entry of any new product or service in the market to meet the
customer needs, company's profitability suffers a lot. Vodafone faces a lot of threats for
products and services, like, CDMA, and services like video conferencing, Skype, Google
Talk and email and various other social networking sites which have been emerged as
substitutes to mobile services which can affect the company. They can overcome from
such issues by becoming service oriented rather than becoming product oriented. They
should understand the need of the customers. High economic growth has also raised
competitors in market.
5. Rivalry existing players: The company is facing extremely high rivalry through its
competitors as they are coming up with some really better ideas, like, their call rates are
low as compared to Vodafone. Competitors are constantly giving new products and
services to the customers, which makes Vodafone to come up with some new ideas which
are better from others. The company should build a sustainable differentiation. Increase
in requirement of profits and market share has created an environment of rivalry between
organisation in telecommunication sector. This rivalry will cut down profit margins of
enterprise.
TASK 4
P4 Bowman's strategy model for analysing strategic direction and options for Vodafone
It is well developed strategy clock model which is used to explore different types of
alternative in order to position the business in most appropriate and strategic ways in market. It
has been utilized to identify direction through which business enterprises such as Vodafone will
appropriately position within communication sector for achievement of highly competitive
position . This model had been highly used by individual to determine 8 vital business elements
such as: Low price & low added value: this is less contending strategy in which products of
organisation will be differentiated along with various cost that needs to be achieved by
organization. Products has been differentiated and the customers will perceive very less
value, despite of low price (Grant, 2016). This strategy is widely used by Vodafone in
order to remain competitive.
8

 Low pricing: Businesses positioning itself here needs to considered less cost leadership
within market. High competitive position in market will achieve by Vodafone when they
will adopt new position in market. Competition amongst organisation in
telecommunication sector with less price presence is very high which usually including
price problems.
 Hybrid: This situation included some important elements of low price relative to less
cost in accordance with the competition business also some important differentiation.
This also aims to persuade clients that there is good added value through the combination
reasonable prices and acceptable product differentiation. That
 Differentiation: this strategy aims to provide customers of Vodafone the top level of
products perceived value, moreover, brand plays important role within this strategy
because it does not provide products quality (Davis, 2012). As per research, effective
quality products with the strong brand awareness and loyalty has been perhaps important
effectively placed for organisation to attain high prices and values which is required by
this strategy.
9

 Focused Differentiation: This strategy is used by organisation when aim to position their
products at high price levels in market where the consumer buy products due to its
perceived values. For example: Apple can adopt this strategy because their products have
high perceived value among customers in market. Risk high margin: This strategy is analysed as advanced risk orienting strategy which
may debate with the cursed to failure (Ghezzi, 2013). In this, company sets out high
prices with offering extra with respect of actual value. Further, if the customer of
organization is agreed to buy their products at Intense prices without providing anything
extra for increasing perceived product value. But the customers will find the better
positioned products which offer the customers at same prices. Monopoly pricing: Strategy is suitable or adopted by organization when their products
are rare or there are less substitute or competitors in market. In monopoly strategy,
company will set high prices for their products as there are no other alternatives for
consumers and their buying is low. In most countries, monopoly market is highly
regulated in order to prevent organisation from setting prices which they desire.
 Loss of market share: This strategy analysed as recipe for problems within various
competitive telecommunication market (Chang, 2016). Setting of effective or standards
10
Illustration 1: Bowman strategy clock model
(Source: Bowman's Strategic Clock (Strategic Positioning, 2017)

price for products with the less detected value is impossible to win over many customers
that will posses effective options. In this strategy, company tends to reduce their market
share by raising products value and providing products at same rate.
In present analysis, Vodafone is large scale business venture that will regulate its
business to expand products and service in market. For getting high profits and accomplishment
of customers requirements, low price is suitable for organisation which is mostly adopted by
competitors. By this, management of Vodafone will be able to attract more customers towards
their products and services. Company should focus upon increasing its customers across the
countries and should reduce its European markets to attract customers. Low product price will
intend to increase strategic capabilities of organisation markets.
CONCLUSION
In this report, it has been concluded that strategic capabilities are identified from value,
rareness, immutability, non- substituted of resources which are posses by Vodafone. It is market
pioneer in telecommunication sector and it has raised various competencies through
implementation of continuous innovation in business practices. Vodafone has massive coverage
in market it had wide distribution as well as coverage of network. Strong and wide market
coverage has provided major competition to organization in market.
Constant gain in business strengths of organisation has also render them leading opportunities
for enlargement of enterprise and operation globally. Further, new product development strategy
will be effective for organization which has intended to increase revenue and profitability.
11

REFERENCES
Books and Journals:
Klettner, A., Clarke, T. and Boersma, M., 2014. The governance of corporate sustainability:
Empirical insights into the development, leadership and implementation of responsible
business strategy. Journal of Business Ethics, 122(1), pp.145-165.
Bamberger, P.A., Meshoulam, I. and Biron, M., 2014. Human resource strategy: Formulation,
implementation, and impact. Routledge.
Cândido, C.J. and Santos, S.P., 2015. Strategy implementation: What is the failure rate?. Journal
of Management & Organization, 21(2), pp.237-262.
Chaffey, D. and Ellis-Chadwick, F., 2016. Digital marketing. Prentice Hall.
Chang, J.F., 2016. Business process management systems: strategy and implementation. CRC
Press.
Davis, P.J., 2012. A model for strategy implementation and conflict resolution in the franchise
business. Strategy & Leadership, 40(5), pp.32-38.
Ghezzi, A., 2013. Revisiting business strategy under discontinuity. Management Decision, 51(7),
pp.1326-1358.
Ghezzi, A., Cortimiglia, M.N. and Frank, A.G., 2015. Strategy and business model design in
dynamic telecommunications industries: A study on Italian mobile network operators.
Technological Forecasting and Social Change, 90, pp.346-354.
Grant, R.M., 2016. Contemporary strategy analysis: Text and cases edition. John Wiley & Sons.
Ho, J.L., Wu, A. and Wu, S.Y., 2014. Performance measures, consensus on strategy
implementation, and performance: Evidence from the operational-level of organizations.
Accounting, Organizations and Society, 39(1), pp.38-58.
Okyere, N.Y.D., Agyapong, G.K. and Nyarku, K.M., 2011. The effect of marketing
communications on the sales performance of Ghana Telecom (Vodafone, Ghana).
International Journal of Marketing Studies, 3(4), p.50.
Rajasekar, J., 2014. Factors affecting effective strategy implementation in a service industry: A
study of electricity distribution companies in the Sultanate of Oman. International
Journal of Business and Social Science, 5(9).
Verbeke, A., 2013. International business strategy. Cambridge University Press.
12

Wheelen, T.L., Hunger, J.D., Hoffman, A.N. and Bamford, C.E., 2017. Strategic management
and business policy. pearson.
Online
Bowman's Strategic Clock (Strategic Positioning), 2017. [Online]. Available
through:<http://www.business-to-you.com/vrio-from-firm-resources-to-competitive-
advantage/
From Firm Resources to Competitive Advantage, 2017. [Online]. Available
through:<http://www.business-to-you.com/vrio-from-firm-resources-to-competitive-
advantage/
Strategic capabilities, 2017. [Online]. Available
through:<https://www2.deloitte.com/us/en/pages/strategy/articles/strategic-
capabilities-bridging-strategy-and-impact.html>
13