Report on Business Strategy of Vodafone Plc
21 Pages4110 Words248 Views
Added on 2020-06-03
Report on Business Strategy of Vodafone Plc
Added on 2020-06-03
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Business strategy
Table of ContentsINTRODUCTION........................................................................................................................................3Task 1.......................................................................................................................................................3P1 Impact and influence of macro environment ...............................................................................3M1 critically analysis of macro environment .....................................................................................7TASK 2......................................................................................................................................................7P2 internal environment and organizational capabilities: .................................................................7M2 critically evaluation of strengths and weaknesses : ...................................................................10TASK 3....................................................................................................................................................11P3 ANALYSIS OF TELECOMMUNICATION SECTOR.............................................................................11M3 dividing of appropriate strategy : ..............................................................................................14Vodafone company is making strategy to gain edge and maintain its position in the market. By introducing new and creative ideas in the existing product can provide high profitability of margin. ..........................................................................................................................................................14Task 4 ....................................................................................................................................................14P4 Bowman's strategy clock model :.................................................................................................14M4 producing strategic management plan :.....................................................................................16CONCLUSION .........................................................................................................................................16REFERENCES ..........................................................................................................................................17
Illustration IndexIllustration 1: Ansoff's growth.................................................................................................................Illustration 2: Bowman Strategies of clock Model...................................................................................
INTRODUCTIONIn order to define business strategy, there are many models to analyze the environmentof a Vodafone company. For analysis of micro environment, company is using PESTELanalysis technique. In which political, economical, social, technological, environmental andlegal factors are included(Buckley, Burton and Mirza, 2016.). For analysis of microenvironment, company is using VRIO/VRIN model by which company can get informationrelated to the resources available in an organization. Ansoff’s growth matrix is also used byVodafone company to analyze the organization’s strategic position. Vodafone has manyorganizational capabilities. To evaluate the competitiveness level of Vodafone company.Company using Porter’s five force model. By which company can get the information relatedto the bargaining power of buyers, bargaining power to suppliers, threats of new entrants,threats of substitutes and rivalry within the market. Vodafone Company is using Bowman’sstrategic clock model, to analyze the strategic direction. There are many kinds of strengths andweaknesses of a company. Company can improve the level of weaknesses because it is internalfactor of a company which can be controlled. If Vodafone wants to maintain its position intelecommunication sector, then it should be analyze all the factors which influenced itsstructure.Task 1P1 Impact and influence of macro environmentAnalyze the Impact of macro environmental factors are very important factor in anyorganization. There are many types of factors who affect Vodafone Company directly andindirectly. PESTEL analysis is a important technique in analyzing of macro environment. InPESTEL analysis, a company concentrates on these factors like political, economical, social,technological, environmental and legal. Any company who wants to maintain its position inthe market, they should analyze these factors. PESTEL ANALYSIS :Political factors: Political; factors may affect business in many ways such as increasing ordecrease in tax policy, data protection law, education law, health and safety law, employmentlaw and trade control. Impact on economy is a main and important factor in political factor.
Political situation of a country can affect economy of its country. Thus, this economy affect abusiness indirectly. Government can change rule and regulations. The stability of a politicalsystem is also affecting the organization. Economic factors: whenever a company makes a strategy then economic factors should beconsidered. Economic factors have a strong impact on any organization. It includesgovernment policy, labor cost, interest rates and taxes. It is connected with goods and servicesof a product. Interest rates, taxes, exchange rates, demand and supply are the examples of thisfactor. It can affect inter working of any organization. Exchange rates are very complex topicin this factor, which should be considered. Recession period also affect the purchasing powerof a customer which can affect an organization indirectly.Social factors: these are the factors which are continually changing. This factor includestastes and preferences of a customer. It may also include social media factors such as socialnetworking sites. Lifestyles, buying habits, educational level, sex distribution, religion andbeliefs are some examples of this factor. Technological factors: these factors can be divided into two parts such as manufacture andinfrastructure Incentives, automation, flexibility and improved quality of products are someexamples of these factors. These factors affect an organization in both ways such as positiveand negative. if company can identify these factors, then it will be benefits for its company.Company can increase its operation level through these advances. Environmental factors: this is also an external factor that affects a company indirectly andstrongly. Changes in climate, pollution and weather are the examples of this factor. Acompany should know about these factors. Legal factors: legal factors can decide that what product can be sold or what type of productscannot be sold. These factors affect mechanism part of a company. Copyright law, import law,health and safety law and consumer law are the examples of this factor. These factors alsohave a strong impact on any organization.
Vodafone should know about these all factors to maintain its position in the market. Macroenvironment means a broad area which includes all these factors and these factors can beanalyzed by pestel techniques. It is the best and important technique for any organization. Using ansoff’s growth vector matrix: It can be called by ansoff’s product market growth matrix. This matrix helps in provide ideasabout how to grow a business and how to gain profitability. Commonly it can be divide intotwo parts such as current products or new products and current market and new market. In thismodel, Vodafone can use these four types of strategy such as:Market penetration strategyProduct development strategyMarket development strategyDiversificationThis model can be explained by this diagram : Illustration 1: Ansoff's growth(Source: Ansoff Matrix, 2016)
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