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BUSINESS STRATAGE INTRODUCTION IN THE UK Telecommunication Sector

   

Added on  2020-07-23

13 Pages3496 Words35 Views
BUSINESS STRATEGY

INTRODUCTIONBusiness strategies refers to the series of plans which are formulated by the topmanagement of organisations in order to gain competitive advantages and enhance the marketshare and revenue. In today's global competitive environment, it is difficult for the managementto sustain in the competitive environment without precise strategies and plans. UKtelecommunication sector is thriving where new and emerging organisations are embarking theirbusiness activities giving stiff competition to existing business giants. There are different macroand micro factors that affects the productivity and profitability of the organisation. In thiscontext, the present report will aid in analysing the impact of macro environment on Vodafonecompany. The internal environment of the organisation will be assessed in this report. By usingPorters' five force model competitive analysis of the organisation will be made in this report. Thestrategic direction of the organisation will be analysed in this assignment by using precise theoryand model. TASK 1- The External EnvironmentP1 Impact and influence of macro environment on VodafoneExternal environment refers to the environment which surrounds the organisation externally andimpacts on the productivity and growth of company (Oseni and Pollitt, 2017). In this context,this section will cover the impact and influence of external environment of Vodafone by usingtwo models which are PESTLE and Ansoff Matrix. PESTLE analysis of VodafonePolitical Factors:The political conditions of United Kingdom are not very stableespecially after Brexit referendum. Many organisations shifted their headquarters fromUK which impacts on the market economy of country (Burns, 2016). The main politicalfactors affecting Vodafone include EU Roaming Regulation that aims to decrease chargesfor mobile phone usages abroad by 70% and increasing level of consumer rights withinEurope, and decisions made by European Union Regulatory Framework for thecommunications sector. Economic Factors: Due to recession and increase in inflation rate, the market economyof United Kingdom has been affected. Consumer purchase power has been declinedimpacting on organisational productivity and growth. After BREXIT impact, market hasbeen shaken which drastically affect mobile telecommunication companies. In the1

twelve-month period under review Vodafone Group generated a total turnover ofEUR47.6 billion, representing a 4.4% year-on-year decline, with this primarily due toforeign exchange movements (Charter, 2017).Social Factors: Social factors refers to frequent changes and transformations in taste andpreferences of consumers. Consumers taste and preferences are dynamic in nature. As perthe analysis of UK consumers, it has been identified that people like unique andinnovative plus quality products. In terms of mobile networking, people wants cheap andaffordable network plan which provides robust connectivity (Rashidirad, Soltani andFazeli, 2017). Vodafone fulfils the needs and expectations of UK consumers in order tosustain in competitive environment.Technological Factors: In present era, technologies are evolving rapidly and newtechnologies are providing assistance to the organisation in order to accomplish theirprescribed goals and objectives. As a Global Leader in Internet of things (IoT) solutionsand services, Vodafone believes in making IoT simple by using its power to truly build abetter tomorrow and transform lives and businesses (Rao and Shekhar, 2016).Legal Factors: To sustain in the environment of United Kingdom, it is rudimentary forthe management of Vodafone to follow certain rules and regulations so that they canavoid legal uncertainties and consequences. Vodafone follows core legislations includingData Protection Act, Employment Rights Act, National Minimum Wage act, consumerhealth and safety laws, etc. Environmental Factors: It is the duty and responsibility of business organisations toformulates strategies in order to protect the natural environment and resources.Vodafone's management in United Kingdom raised many campaigns in order to increaseawareness among the citizen to protect environment. Vodafone spends millions of poundsevery year as part of their CSR activities where they promote about environmentalprotection.Ansoff Matrix2

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