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Business Strategy Assignment Solution - Vodafone organisation

Added on - 08 Dec 2020

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BUSINESS STRATEGY
ContentsINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................31.Pestle model for environment analysis.....................................................................................32. Ansoff’s growth vector matrix to analyse the organisation’s strategic positioning................5TASK 2............................................................................................................................................61.‘VRIO/VRIN’ model to analyse the strategic capabilities possessed Vodafone......................62.Strength and weakness of the organization..............................................................................7TASK 3............................................................................................................................................8Devising appropriate strategy to improve competitive edge.......................................................8TASK 4..........................................................................................................................................10Understanding and interpreting strategic direction....................................................................10CONCLUSION..............................................................................................................................12REFERENCES..............................................................................................................................13
INTRODUCTIONBusiness strategy can be defined asset of decisions which are taken by company to accomplishits objectives. Management has to make master plan that may support organisation in securing itscompetitive position in the market. Mobile telecommunication industry has generated hugerevenue over a period of time worldwide. Vodafone is the leading firm that offers mobileservices, network services to consumers across the world. Present report will carry outenvironmental analyses of Vodafone. It will apply VRIO model for analysing strategiccapabilities of Vodafone. Strength, weakness of Vodafone will be described in this assignment.In addition, report will apply analytical tools such as Ansoff matrix, stakeholder analyses. Studywill produce a strategic management plan for organisation in order to show its clear strategicdirection that may support business in growing well in this market.TASK 11.Pestle model for environment analysisFigure1Pestle analysisSource: (Pestle analysis of Vodafone, 2016)Vodafone is affected by various environmental factors that can impact on the profitabilityaspects of company. It can hinder or foster growth of organization. Factors includes following:Political factor-This includes the factors like saving rate, exchange rate, economiccondition of country, laws, rules and regulations given by country in which company is going tooperate. This factor can affect Vodafone in both positive and negative way (Alexandru, 2015).Positive impact-Success of Vodafone is fully based on political scenario of country. Thesefactors can be influential for development of firm like Vodafone, as political factors help3
enterprise in developing infrastructure for company to be operational and effective in a particularstate or country.Negative impact-Political instability can lead to a situation like war, which can disrupt networkand also good infrastructure cannot be established for Vodafone that can hamper profitability offirm.Economic factor- It includes the factors such as inflation rate, labour rate, interest andmany more that can impact Vodafone.Positive impact:If economic condition of country is high and also there exists good GDP whichmeans that people over there have more income and high purchasing power by which theybecome more prone to adopt good communication technology.Negative impact- Economic crisis can cause serious occurrence of issues like rise in labour ratethat can affect Vodafone negatively.Social factor-These factors include attitude, belief and thoughts of consumer related toproduct and service sold by company.Positive impact: This is a very dynamic domain and for the success, the company must showflexibility in its policies pertaining to the local culture. Vodafone is basically a purely Europeancompany but it has changed its preferences and the related policies as per the local social factorsin which the company is being operated.Negative impact: If company do not follow belief, attitude and thoughts of consumers and isengaged in activities which hurt their sentiments then this can lay negative impact on operationalefficiency of Vodafone.Technological factor-This is one of the most important factor which needs to befollowed by Vodafone in order to grow.Positive impact- Making use of advancing technology like company is engaged in providing 4Gnetwork services in Countries like UK has laid positive impact on their profitability. It hasattracted huge amount of customers towards them.Negative impact- If Vodafone is not involving in making use of advancing techniques and latesttrends then this can hamper goodwill of firm. It can reduce their profitability.Legal factor- It includes the laws, rules and regulations which has been given by thegovernment that needs to be followed by company.4
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