Business Strategy Assignment (Vodafone)
Added on 2020-10-22
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BUSINESS STRATEGY
Table of ContentsINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................3P1 Impact and Influence of Macro Environment on Vodafone..................................................3TASK 2............................................................................................................................................7P2 The internal environment and organisation capabilities........................................................7TASK 3..........................................................................................................................................10P3 Analysing the telecommunications sector...........................................................................10TASK 4..........................................................................................................................................12P.4 Understanding and interpreting of strategic decision .......................................................12CONCLUSION .............................................................................................................................13REFERENCES .............................................................................................................................14
INTRODUCTIONA business strategy acts as a guide in providing direction to an organization to follow apath which can yield advantage for a firm by configuring its available limited resources within achallenging and dynamic environment to cater the needs of demands of market and to fulfilneeds and aspirations of its stakeholders (Business Strategy, 2015). These course of actions areformulated by the top management and are enforced and implemented by middle level managersto achieve the vision, mission and objectives of an enterprise . Vodafone is a second largest brand in telecommunication having more than 444 millionsubscribers. It was established in 1982 with its headquarters in Newbury, UK. Vodafone has ateam of over 13,000 people across UK and its operations are running in more than 26 countrieswith partnership with more than 55 networks all across the world.This assignment will discuss about the impact and influence of macro environment onVodafone through PESTEL and Ansoff analysis. It will further explain the capabilities ofcompanies internal environment along with its strength and weakness. Moreover the project willalso give synopsis of competitiveness of UK's telecom sector along with certain strategiesadopted by company to improve its competitive edge. TASK 1P1 Impact and Influence of Macro Environment on VodafoneVodafone being on of the top telecom company has its operations expanding with greatpace in different regions of different countries. Being a global player, Vodafone is exposed to anumber of external factors that organization need to consider for evaluating its success. Theimpact of macro environment can be analysed through Vodafone's PESTEL Analysis.POLITICAL FACTORS
Political factors greatly influences the progress of a company like Vodafone as it isdepended upon political scenario and stability of ruling political party. It is because to establishand develop infrastructure to be operational in a particular state Vodafone need to takepermission from government and other regulative bodies (Barberá and et. al., 2012). Besides this,the company has to comply with various communication and media acts and regulations of aparticular country. Other factors includes trade restrictions, tariffs, public concern, tax policy etc.For instance, with a substantial increase in tax policy and VAT by UK government along withhigh inflation rate in some nations, company has to alter its pricing policies resulting insignificant decrease in its price in past years. ECONOMIC FACTORSEconomic factors contributes a lot in company's success as more the state will growhigher will be chances for a firm to diversify and open its new units in developed anddeveloping zones. Parallel to this fact another likeable scenario is that the overall economic crisisfaced by world economies also has direct influence on company's operations according to whichVodafone has to modify its strategies every now and then (Bastian and Muchlish, 2012). Forinstance with high inflation rate of 3.6 % prevailing in Mexican market in order to make itsconsumers to afford high rates, the company decreases its product price making it economicalfor everyone to purchase their products and avail services. Other factors involves exchange rates,interest rates, partnership with government, level of economic growth etc.SOCIAL FACTORSThese factors are based on the social culture, value and beliefs of people in which firm isconducting its business. Vodafone although been a European company has flexibly changed itspreferences, policies, programmes as per local culture. Some prominent social factors includeshealth consciousness, adult content, career attitudes, emphasis on safety etc. TECHNOLOGICAL FACTORSVodafone follows its mission to always be ahead in trends related to technological andcommunication spheres. Being working in a competitive and dynamic environment it is ofcrucial importance for Vodafone to stay ahead in technology. The company dedicates a fairbudget to its research and development department for finding out and produce products adhereto latest technology equipped with latest features (García‐Rodríguez and et. al., 2013). By
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