Strategic Position Analysis and Evaluation of Firm Strengths and Weaknesses

Business Strategy

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1 ..........................................................................................................................................1
P.1 External environment............................................................................................................1
1)PESTEL analysis:....................................................................................................................1
2) Ans off's growth matrix to monitor strategic position of firm...............................................2
TASK 2 ...........................................................................................................................................3
P.2Internal environment and capabilities of firm .......................................................................3
1)Strategic capability..................................................................................................................3
2)Use of VRIO model to evaluate strategic capabilities by firm................................................3
2) Identification of strengths and weakness of firm:...................................................................4
TASK 3 ...........................................................................................................................................5
P.3 Analysing telecommunication sector....................................................................................5
1)Porters five forces model to monitor the competition level in U.K.........................................5
TASK 4 ...........................................................................................................................................6
P.4 Understanding and interpreting strategic direction ..............................................................6
Bowman's strategy clock model:.................................................................................................6
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business strategy is very essential in every business. Through creating of strategies and
policies any business can run successfully and smoothly. Thus it can create different plans so that
it can run its all functions properly and efficiently. Thus as a result firm can easily run smoothly
and successfully (Aharoni, 2015). Thus it can easily attract and satisfy many users in minimum
time. Thus company can earn more revenues and can easily expand their operations. Report
explains about the Vodafone company which is telecommunication firm. It was found in U.K. It
provides various mobile services to all customers. Assignment describes about the external
environment and their influence of macro environments on company. It further explains about
the external environment and organizational capabilities. It explains about the evaluating the
telecommunication sector and the understanding and interpreting the strategic direction.
TASK 1
P.1 External environment
1)PESTEL analysis:
It is a process which includes the political, economical, social, technological,
environmental and legal factors. They can affect the company in positive and negative manner.
PESTEL analysis of Vodafone are:
Political factors: There are various issues and problems in Europe. Due to this issues
and disputes it has a negative impact on the Vodafone. Thus as a result they cannot easily run
their operations and activities in a smooth manner. Thus they cannot operate their task in proper
manner.
Economic crises: Country's GDP is very high so thus many people can easily purchase
the products and services from Vodafone. Hence firm can easily earn more profits and can easily
increase the market share. Thais gives a positive impact on the company. Due to many economic
crises company suffers a lot from these situations.
Social factors: Company creates and delivers services according to needs and wants of
local people. It is a European country but then only it can fulfil the needs of local people so that
they can increase the satisfaction level of all people. This also helps the firm to enhance the
profits (Amran, and et. al., 2016).
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Technological factors: Company has to adopt the latest and recent technology so that
they can produce good quality of products. Thus as a result they can easily fulfil all needs and
wants of all people. Thus as a result they can easily fulfil all needs and wants (Brewster, 2017).
Legal factors: Various legal problems and issues are there through which they cannot
fulfil all needs and wants of all people. Many people left the job and they can work in another
company and due to this they cannot increase their satisfaction level. Govt has to make legal
rules so that they can maintain the market share.
Environmental factors: Due to the globalization company cannot create products in a
better manner. Form can perform social activities so that they can maintain god image in minds
of all users. Thus as a result they can earn more revenues and can enhance the market share.
Hence it leads to increase in reputation among all users.
2) Ans off's growth matrix to monitor strategic position of firm
Strategic position is the evaluation of future condition of the company by monitoring the
internal as well as the external factors. Through this company can easily identify the needs and
wants of all users. Thus they can easily maintain unique position in the firm. Through creating
efficient strategies so that they can enhance the market share. Through this they can create
distinct policies and then it can directly enhance the profits. So this tools is very crucial so that
they can create different polices and plans. 4 strategies which are included in Ansoff's matrix are:
Market penetration: In this process company can directly sell different goods to various
users. Thus they can directly increase their profits and they can enhance the market share. It sells
goods to potential consumers. Through this they can directly expand their business and can
increase their reputation among all users in the market as well as in the industry.
Market development: In this process company can easily sell various existing goods to
various users. Thus they can easily increase the profits and they can easily enhance the market
share. Through this method they can attract many users and Vodafone can easily increase their
operations and task in many countries.
Product development: Vodafone can create new products through use of latest and
recent technologies in the market (Buckley and Ghauri, 2015). Thus as a result they can easily
increase their revenues. The company has perform a strategic alliance with another firm so that
they can directly use the 5G technology.
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