Impact of Macro Environment Factors on Virgin Media : Report

BUSINESS
STRATEGY

TABLE OF CONTENTS
INTRODUCTION...............................................................................................................1
TASK 1...............................................................................................................................1
P1 Analysing impact and influence of macro environment factors on Virgin Media and
its decision making........................................................................................................1
M1 Critically analysis macro environment and how this determine Virgin Media
strategic management decision.....................................................................................5
TASK 2...............................................................................................................................5
P2 Analysing the internal environment and capabilities of Virgin Media......................5
M2 Critically evaluating strengths and weaknesses of company..................................8
TASK 3...............................................................................................................................8
P3 Applying Porter's Five Force model in evaluating competitive forces of market of
Virgin Media...................................................................................................................8
M3 Devising the most appropriate strategies to improve competitive edge and market
position based on outcome..........................................................................................10
TASK 4.............................................................................................................................11
P4 Applying range of theories, concept and models to interpret strategic planning for
Virgin Media.................................................................................................................11
M4 Producing strategic management plan that is tangible and tactical......................14
D1 Critically interpret information and data applying environment and competitive
analysis in producing valid strategic directions and objectives...................................14
CONCLUSION.................................................................................................................14
REFERENCES................................................................................................................15

INTRODUCTION
Business strategy would be based on vision and mission of the company which is
telling or guiding them to achieve their targets and objectives of firm over time period by
analysing what are strengths and weaknesses. This varies from company to company
as all of them are having their own internal and external factors which are influencing
their working and operational tactics. In this current assignment we would be focusing
on the telecommunication network or sector of UK which is the fastest growing sector
on worldwide level. This industry is providing service to about whole world and
generating £3.8 billion of service in year 2017 there are some major players in the
market of UK namely BT, Virgin, EE and Vodafone. In our part we would be focusing on
Virgin Media and their business strategies that they are following like what are the
internal and external factors of company which are influencing their decision making
process. At the end we would be learning about theories and models that are helping
company into their strategic planning.
TASK 1
P1 Analysing impact and influence of macro environment factors on Virgin Media and its
decision making.
Virgin Media is one of the famous telecommunication network provider company
which is British company providing service and products to UK and Ireland. It is the
subsidiary of Liberty Global and was founded in 2006 having its headquarters at UK
with the revenue of about £4.1 billion. Company is providing many products and service
to its customers all around UK and Ireland like that of digital TV, broadband internet,
fixed line telephone and mobile phones as well. After its formation in year 2006 it was
merged with NTL and Telewest and then forming Virgin Mobile UK then the signed a
deal with Sir Richard Branson to work under licence of Virgin Brand (Virgin Media
Business Strategy, 2018). In the market where it is currently operating is very
competitive one as they are having their rivals like that of Vodafone, BT and EE which
are amongst the top rated companies of UK operating on worldwide level.
Macro environment would be defined to as all factors which are existing outside
the company and that are not into the control of any firm which it is affecting. All these
1

types of factors would not only be affecting one particular company but rather they
would be creating its effects on whole region or sector under which firm is operational.
There are various factors which are influencing organisation and its strategies which
they are formulating over specified time period so that their targets and mission is been
followed. There are models like that of PESTLE and Ansoff's growth matrix which are
commonly used by company so that they could analysis which are their external factors
and what impact they are laying onto firms strategies.
PESTLE analysis:
Political: virgin media face a challenge of government policies in foreign countries like
Australia, USA (Dessart, 2018). It influenced by the taxation policies, labour law, trade
restriction imposed by the political bodies. Its challenging to set a business in foreign
due to there licensing bureaucracies set by the government. Virgin media influenced to
the increased regulation and control of business operation by foreign government.
Economic: economic factor include economic growth, inflation rate, interest rate
charged on capital and investment, foreign exchange rate. Global crises negatively
affects the business operation of Virgin Media in recession period. Globalisation and
liberalisation of consumer market, increase the cost of production and decrease the
level of customer income also affects the business of virgin media.
Social: social factor is important to success of every business because it impact on
business by the behaviour of buyers the company is serves a service to there
customers according to the that ,behaviour and social trend. The society is changed
according to region and the demand is also increase according to the place and there
peoples .
Technological: technological factor relates to technical advancement. Its important to
virgin media to upgrade their technology to sustain in market because the competitors
are highly technical to the virgin media and it is lose of the company (Hjalager, 2018).
Innovation of technology is must for virgin media to provide quality in the services to
customer and also helps in decrease the technological challenge. Use of high quality
technology may increase the profit of the company and achieve the goals & objectives
of company and individuals.
2