Business Strategy Assignment Solved - Vodafone Company
Added on 2020-10-22
13 Pages3866 Words498 Views
BUSINESS STRATEGY
Table of ContentsINTRODUCTION...........................................................................................................................1LO.1.................................................................................................................................................1P1 Analysing impact and influence of macro environment on Vodafone..................................1LO.2.................................................................................................................................................3P2 Analysing internal environment and capabilities of Vodafone..............................................3LO 3.................................................................................................................................................5P3. Porters Five Forces Model And Evaluation Of Competitive Forces....................................5LO 4.................................................................................................................................................7P4. Theories And Concepts Of Strategic Planning.....................................................................7CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................10
INTRODUCTIONBusiness strategies can be said as a set of decision which can assist an Organization toachieve their specific business goals or objectives (Boateng, 2016). This report will analyse allthe macro environment factors which will impact an influence an organization and its businessstrategies through PESTLE analysis, asses an organization's all the internal environmentcapabilities of an organization through SWOT analysis (Cibro, 2016). By applying porter's fiveforces model all the competitive forces will be evaluated for an organization and different rangeof theories, models and concepts will be applied to interpret strategic planning of anorganization. All these four tasks will be explained with Vodafone Company as an example.Vodafone is a UK based second largest mobile telephone operator in the world (Williams andFigueiredo, 2014). They have the third largest telecommunication network in the world whoprovide internet and telecommunication services. They have more than 480 stores based only inUK and many more across the globe.LO.1P1 Analysing impact and influence of macro environment on VodafoneImpact and influence of macro environment on Vodafone will be explained with the helpof PESTLE analysis. PESTLE is basically a strategic tool to analyse all the macro environmentfactors of an organization. PESTLE stands for political, economical, social, technological, legaland environmental. Changes in all these factors can have direct impact on Vodafone and otherwireless communication players.Political: Political factors can impact business of Vodafone in terms of profitability inmany countries Market. Vodafone operates in more than 12 countries with differentpolitical environment in different countries. To achieve success in many countries in thisindustry they need to diversify the risk in different countries of political environment.Vodafone need to analyse political stability of a particular country and importance ofwireless communication in that particular country (Boateng, 2016). They also need tocheck weather there is any military invasion risk. Before entering in any countries marketthey need to check trading and tariffs regulation in that particular country, taxation ratesand wedges legislation any kind of laws related to communication in that country. 1
Economical: Economic factor is also an important macro factor which can impactVodafone's business. Economic factors include inflation rates, interest rates, growth rate,saving rates and foreign exchange rates. Vodafone need to analyse all these economicfactors before entering into a countries market. They need to check unemployment rate inthat country, education level, labour cost, exchange rates, and need to considerconsumer's affordability rate(Cibro., 2016). If the economic growth rate of that particularcountry is low then they need to lower their data service charges or call rates. Social: Social culture of a country is a main factor which influence a companiesbusiness. Vodafone need to consider culture, attitude, leisure interests and education levelof people in that country. Vodafone need to show flexibility in their policies according tothe local culture of that country. Vodafone is purely a European company but now theyhave changed their preference and started to operate in different countries according totheir local social factors. In short they need to understand the customers of that particularcountries market and accordingly design their strategies of marketing and deliver theirmessage to their customers.Technological: As technology is changing it is affecting various industrious specially incommunication industry. Vodafone is famous for their innovative thinking in the world.Vodafone need to do a technology analysis and along with it they need to do an analysisof the speed at which technology disrupts in that industry. Slow speed of technology inthat country can give time to Vodafone to establish themselves and fast speed oftechnology will give them very little time to establish themselves and think of ways to dobusiness with profitability. So they need to do analysis of technology which will have animpact on: diffusion rate of technology, value chain structure will get impacted, their coststructure will also get impacted, technology's effect will be clearly shown on the productthey are offering.Legal: For a company like Vodafone which operates globally have many rivals so theyneed to be very much vigilant about issues like piracy and copying. Like recentlyVodafone has faced many other penalties like not paying much to their employees ascompared to their rivals(Ghosh., 2016). Vodafone should try to abide all the legal issuesin order to increase their customer base and maintain their positive image for gaining2
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