Competitiveness of Telecommunication Sector

Business Strategy

Contents
INTRODUCTION...............................................................................................................................4
TASK 1.................................................................................................................................................4
Macro environment and its influence on activities of business organisation and its strategies..........4
TASK 2.................................................................................................................................................7
Analysis of internal environment of company...................................................................................7
TASK 3.................................................................................................................................................9
Examine the competitiveness of telecommunication sector...............................................................9
TASK 4...............................................................................................................................................11
Strategic directions and options available to enterprise...................................................................11
CONCLUSION..................................................................................................................................12
REFERENCES........................................................................................................................................13

INTRODUCTION
Business strategy is referred to a long-term planning through which company easily
attaining their set goals and objectives in appropriate time frame. Basically, strategy is related
with action that taken by the company to enhance their overall performance level. Along with
this, it also defines the way to operate business activities in systematic way which helps in
enhancing the chances of attaining competitive advantage in market place. With the help of
this management got better guidance to perform entire activities in effective manner (Chu,
KrishnaKumar and Khosla, 2014) In addition of this, formulating effective business strategies
helps in handling all the actions and at the same time also reduce the chances of arising issues
and conflicts within the company. This will directly contribute in enhancing the performance
level of the company in an appropriate way. Present report is based on Vodafone, is a mobile
telecommunication company which operate their business in Europe, US and Africa as well.
As a biggest and leading telecommunication firm offer better services to its customers.
Different factors of business environment also impact on business strategy is mentioned in
this project. Along with this, competitiveness of telecommunication industry is also
discussed in this project which may leads in enhancing the chances of attaining success.
TASK 1
Macro environment and its influence on activities of business organisation and its strategies
Macro environment is use to define those factors that exist outside the organisation and
largely affect its activities and decision-making process. Identification and analysis of
external elements is very essential as this support manager in formulate better strategies
which ensure effective implementation of business operations. Political, legal, social,
economic, environmental and technology is all are come under the macro environment.
Impact of all these elements on functioning and strategy of Vodafone is given in the
following points:
PESTLE analysis:
This is one of the most popular and effective tools use by business firms to examine
the external forces in order to take better decision. As Vodafone operate in various areas of
world and offer different type of services to all its customers. So before expand its operations

in new areas it is very important for organisation to undertake a study related with external
forces of that country.
Political factors: This aspect help in determine the government and its various rules
exist in a specific country. It is very important for Vodafone to examine this because approval
of government is very essential before set up a new plant in a country. Political conditions
exist in country largely affect the activities of business firms. Further various relevant factors
such as peace of state, political instability and many more all affect the growth of company.
Economic factors: This is one of the most significant factor that require to be analyse
by entities because this directly impact on profits of company. Mainly this aspect covers the
inflation rate, deflation rate, currency rate and GDP of a specific country. Good GDP indicate
high purchasing power of individual and this increase the success chances of entity’s product.
Movement in economic conditions of country directly affect the profits of firm so this require
to be examine by Vodafone.
Social factors: This element of macro environment indicate the lifestyle, hobbies,
language, culture and behaviour of local people living in the area in which entity operate or
wants to operate. Study of this element increase knowledge of managers about the attitudes
and behaviour of individuals. This help in manufacture product as per the specific
requirements of customers and results in customer satisfaction. In this way, entity can retain
its customers for a long time period.
Technological factors: In today’s business environment when an organisation use
updated technology then it helps in attract more customers and provide support to respond to
the changes that take place in business environment. As Vodafone is known for offer better
and effective products to all its customers so to maintain its market share, it is very essential
for entity to use the new and updated technology. With this, organisation can utilise the
opportunities exist in market and can generate more number of profits.
Legal factors: This is another significant element of external environment. Mainly this
indicate the laws and regulations introduce by legal bodies in order to get a control over
business operations of enterprises (Yuliansyah, Rammal and Rose, 2016). It help in monitor
and measure the actions taken by commercial firms to serve its customers. When firm does
not follow the rules then it either results in penalty or legal action. Vodafone face a issue that
it does not give much consideration to needs and wants of its staff members and this is the
main reason why large number of workers are leaving the organisation. For improve this