Business Strategy Assignment - VIRGIN MOBILE
Added on 2020-12-24
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BUSINESSSTRATEGY
Table of ContentsINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................3P1.1 PESTEL model for environmental analysis...................................................................4P1.2 Ansoff's growth Vector Matrix......................................................................................5TASK 2............................................................................................................................................6P2.1 Introduction to strategic capability.................................................................................6P2.2 VRIO model to analyse the strategic capabilities of organisation.................................7P2.3 SWOT analysis...............................................................................................................9TASK 3.........................................................................................................................................10P3.1 Porter's five force model on telecommunication sector...............................................10P3.2 Porter's generic strategy to analyse the strategic direction for the organisation .........11Strategic Management Plan..................................................................................................12CONCLUSION..............................................................................................................................14....................................................................................................................................14REFERENCES..............................................................................................................................15.......................................................................................................................................................16
INTRODUCTIONBusiness strategy is the grand plan which organisation made to manage their inside andoutside activities. This strategy helps organisations in securing their competitive position ascompare to others in the market(Business Strategy. 2018.). Company's also use it to servecustomers and to achieve the organisational goals. In an organisation, business strategy is a longterm plan created for desired result and direction. There is different level of business strategieslike corporate level, business level and functional level. To understand this concept, VIRGINMOBILE is taken as example which is a mobile service provider in UK. Company came intoexistence in 1999 and products in which it is dealing is mobile telephony. In this report, impactof macro environment will be discussed with different models and their internal environmentwill also be explored. With the help of porter's five force model UK's telecommunication sectorwill be analysed. TASK 1Mobile telecommunication sector is the telecom service provider like mobile service,networks, broadband, other communication equipments etc(Scholes, 2015). this sector isgrowing rapidly worldwide. This trend is also increasing in UK at the same rate as more than53% of UK's people are using smartphones while walking.
P1.1 PESTEL model for environmental analysisIt is tool which organisations take in use to analyse the impact of external environment intheir business activities. This technique is majorly used at the time of expansion of frameworkDemographically, Intercultural, Ethical and Ecological (Amran and et.v al., 2016). POLITICAL: This factor is related to impact of government's intervention on thebusiness activities. In case of Virgin mobile, it is working in many countries and from thewestern hemisphere they are getting benefits in taxation policies made by government.Company needs to pay lower tax in those countries as compare to other, which isincreasing their profits and as a result they are able to spend more on research anddevelopment. For instance: there is change in political policies at UK such as incrementin tax rate, then it affects supply of internet services offered by Virgin Group toconsumers. So political parties also affects working of Virgin Group, hence they have towork according to it. ECONOMICAL: These factors are related to impact of country's economy onorganisation's performance. In case of Virgin Mobile, when government has increasedtheir investment on development of core infrastructure it has impacted the company in apositive ways and given them opportunity to penetrate in the market. Other than this ifexchange rate of an economy goes high it will impact the sale of the company becausecustomers will start saving more instead of spending.For instance: there is increment ininflation rate of UK, then purchasing power of consumer affects and they do not prefer toavail expense telecommunication service offered by Virgin Group.SOCIAL: This factor is related to society and culture and how does these all areimpacting business performance. Virgin mobile has its targeted people but thesecustomers expect very high experiential products and services from the company which isincreasing the cost of the organisation. This is because for meeting the expectation oftheir customers company need to put more energy and money for making improvements.There is difference in demand of consumers as per requirement of telecommunicationservices such as corporate offices, personal use of consumers, so it is responsibility ofmanagers to understand demand and then provide internet services. This assist inproviding satisfaction to consumers and maintain brand image of Virgin Group inindustry.
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