Business Strategy Assignment: UK Telecom Sector

Added on - 06 Jun 2020

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Business Strategy
Table of ContentsINTRODUCTION3TASK 13P1 Influence of macro environment3TASK 26P2 The internal environment and organisation capabilities6TASK 39P4 Competitiveness of UK’s telecommunications sector9TASK 411P4 Understanding and interpreting strategic direction11CONCLUSION13REFERENCES15
INTRODUCTIONBusiness strategy is the art, craft and science management of implementing, formulatingand analysing cross-functional judgements which assist a company in achieving their objectivesand goals. Regional and global telecom players faces numerous challenges in the workerproductivity and capital monetization in mature intensified market competition in emerging anddeveloping trade. Mobile telecommunication sector has been growing fast globally. There aredifferent activities and components that is being considered while developing a business strategy.In this report, different aspects of UK telecommunication sector and Vodafone i.e. one of largesttelecom company would be focused (Ackermann and Audretsch, 2013). It will assess influenceof macro environment and international environment in order to investigate the entire sector oftelecommunication in effective manner. This will interpret and understand the strategic directionof whole using Bowman's clock strategic model.TASK 1P1 Influence of macro environmentCompanies get different resources from supplies and environment of services and goodsin environment. There are different factors in environment which influence the ability ofbusiness to serve their consumers. These elements of environment provide threats andopportunities to a certain business. Macro environment consist of external forces which influencethe organisation's strategy of marketing in wider length. There are two external environmenttypes i.e. macro and micro that influence the decision making and strategy of marketing. In orderto understand distinct aspects of macro environment, study of PESTEL analysis would be moresuitable.Vodafone is one of largest telecommunication chain which is taking universe's nomadicorganisation within the countries like India, Europe and United Kingdom. The company isbiggest web supplier in the whole United Kingdom (Annabi and McGann, 2013). This is one ofthe strategic tools which is affecting different factors such as economical, social, political,technological, environmental and legal elements of company. Here are the study of macroenvironment of sited company i.e. discussed as below:Political Factor: The political instability and system of different of United Kingdom afterthe period of Brexit. Vodafone, therefore, will require to determine and carry out appropriate3
business strategy. Licenses of mobile phones are expensive and are strictly controlled. In fewcases, there are tight measures which the government has implemented for decrease use ofphones children leading to health issues (Auzair, 2011). Vodafone has to follow governmentalregulation to support and expand their network, which make it essential for them to register andlicensed from state.Social Factor:Consumer want best and effective service which they can be provided forsuiting in or being better than other society. Mobile and smart phones are in trending nowadayswhich is leading to more sales to mobile operating and telecommunication companies. But asthere are more aged population then the younger one, it can lead to less use of telecomequipments in country.Legal Factor: As United Kingdom has been facing imbalance in their system,government has supported some laws and legislation for creating more suitable environment.Sales of Goods Act 1974 should be followed by Vodafone which states that the commoditiesmust be suitable for the manufactured purpose. Also the business organisation need to complytwo different code of practice of advertising which can restraint the growth of Vodafone provenas limitation to company. However, their competitors also has to faces these regulations as well.Economical Factor: Recession has carried out drastic change in the purchasing habits ofUK consumers who are not willing spend their financial assets. It has led to price war among thedifferent leading telecom service providers to trim down the costs of services in order to attractmore buyers or consumers. Also, the economical condition of Vodafone has risen as the peopleare preferring their children to carry phones for safety and communication purpose foremergencies.Environmental Factor: Vodafone contain proper recycling programs for their SIMS andphones to support healthy environment through reusing the handsets (Azar, 2011). They renderincentives in money terms to consumer in exchange of older phones. Also the higher costs ofenergy is a disadvantage for the company as this is creating more green house gas emission.Technological Factor: Technologies varies and modify itself dynamically. In order tomeet the market requirements and provide more advanced technologies, company has beendeveloping 5G technologies. Also analysing the advancement in business, company has set theirwebsites so that their clients can conveniently purchase their services or products online.Vodafone also render the opportunities to examine the features before buying their services.4
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