Contemporary Developments in Business and Management

This document explores the importance of contemporary developments in business and management, focusing on external environment influences and the relevance of corporate social responsibility (CSR) to Vodafone. It also discusses areas for improvement in the business organization. Find expert study material on Desklib.

Contemporary
Developments in Business
and Management

EXECUTIVE SUMMARY
This document has showed the importance of contemporary developments, where a
company would require to keep its focus on. Without proper business management, an
organisation may not lead to an all new level in short span. On the other hand, as Vodafone is
has become one of a leading telecommunication business organisation, which also require proper
analysis as well. Away with this, viable and covering wide market region from long time. Since
it built up its image name and picture of the organization which impact various sorts of outer
factor. As this the two aides in maintaining the business easily just as adequately and
proficiently. Alongside this they centre around the importance and impact of their Corporate
Social Responsibilities on their business and its adequacy of their reaction of CSR exercises.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
External environment influences to the organization and their importance. ..............................1
PESTLE Analysis........................................................................................................................1
Porter's Five Forces Model..........................................................................................................3
TASK 2............................................................................................................................................4
2.i Influence and relevance of the CSR to Vodafone................................................................4
2.ii Effectiveness of the organization’s response.......................................................................6
2.iii Some areas for improvement in business organization.......................................................7
COCLUSION...................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Contemporary development are the stages which involves occurrence and presence of
developments and up-gradation such as Pace of technological advancement. This report
considers external influence and its importance. Along with this it focuses on corporate social
responsibility & sustainability of the business organization. Along with this, it considers its
influence and relevance on business organization (Feldman, 2015). It also considers and give the
different areas of improvement in the Vodafone company. In support to this, the chosen company
is Vodafone which is public limited company which deals in Telecommunication services,
started in 16 September 1991, a 27 years ago by Ernest Harrison & Gerry Whent. Its
headquarters is in London, Newbury, Berkshire, -120England as well. It serves their services
across worldwide with various products such as Fixed line telephone, Broadband, Mobile phone,
Digital television and the Internet television.
TASK 1
External environment influences to the organization and their importance.
As Vodafone is one of the leading organization in whole world, which has effective and
covering wide market area from long time. Since it established its brand name and image of the
company which influence different types of external factor. Under below the PESTLE analysis
and Porters Five model is illustrated in brief along with their importance.
PESTLE Analysis
Political Factor: Political factors of every country affects the operation of companies of
that country. Vodafone has been in telecom industry operating across the world. Political
instability in terms of infrastructure and regulations affect the overall business operations of the
company. Political forces of every company may work in favour or against of a company. Such
as if there is increases government intervention then it may lead to more adherence to strict rules
and regulations by the company.
Economic Factors: Economic factors such as GDP, consumer demand in a country
affect the growth and sales of every company. UK has always provided Vodafone an
opportunistic market to grow and sustain. Recently activities such as Brexit has affected
Vodafone's profitability in UK (Mohd Said and et. al., 2016).
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UK is a grown economy which provides a good market to Vodafone. As, there is presence of
features such as consumer's purchasing power helps in increasing the sales graph of the
company.
Social Factors: Social factors include changing needs & demand, preferences of
customers, lifestyle of people of a country, trends etc. These social factors affect the growth and
sales of every company. Vodafone also benefited from the changing customer preference of
customers as people are now more preferring online shopping. This has proved beneficial for
international telecom br5ands like Vodafone.
Technological Factors: Growth of technology has always helped the companies to grow
and take benefits from such developments. The recent growth in digital technology has also
helped Vodafone to expand their market. As it has helped the company to increase their number
of customers. Also, the use of digital media increases the means to reach the potential customers
for the company. There has been a tremendous growth in technological services and products
throughout the world and this has led to increase in business of Vodafone (Zaman, 2019).
Legal Factors: Each country has its own laws and regulations which have to be
compulsorily followed by every company operating in that country. If a country has large
number of such rules and regulations, then it can possess difficulty for the companies to grow.
European union has also after the recent activity of Brexit has increased the regulatory
requirement of all the companies. This has affected the way of doing businesses of Vodafone
such has there are much more restrictions being imposed on them. Also there are strict provisions
made for levying fines on the violators of such laws.
Environmental Factors: Every company operates in an external environment. This
environment provides the company with all the opportunities and threats which help the
company to grow and survive. Companies are now making huge investments in CSR activities so
that they can give back to the society what they are taking from it. This not only increases
company's image as socially responsible. It also helps them to adhere the rules being made by the
government. Vodafone also works as a concerned company for environment as it reuses all types
of waste being generated by the company. This helps in prevention of any kind of environmental
pollution being caused by the company.
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Porter's Five Forces Model
It is a systematic technique used for assessing external business competition in target
market. This model signifies the economic condition of any organisation in specific industries.
The major concern for introducing this model was increasing profitability with in-depth study of
pure competition in market. The five force model basically comprises of bargaining power of
supplier, threat of substitutes, threat of new entry, bargaining power of buyers and industry
rivalries. In context with Vodafone, the management could critically analyse the competitions
and thereby plan marketing strategies for growing business in telecommunication industries. The
porter's five force model has been effectively utilised by managers in improving customer base.
These aspects are briefly mentioned under beneath:
Threat of new entry: This phase occurs when a firm wants to expand their business in a
new market. The marketer need to conduct critical analysis of several barriers that might occurs
in entering to specific industries. Some of these hurdles are economies of scale, high customer
loyalty for existing brands and estimation of financial budget that might require in research and
development programs. When talking about Vodafone, the marketing management have to
estimate the price of product to maintain economies of scale (Per and Su, 2016).
Bargaining power of suppliers: This force totally depends on the strength of suppliers
which reflect a cost that both party bears in order to grow the business and sustain in market. The
power of suppliers is determined by availability of substitute supplier and concentration of
existing suppliers. The relationship with different supplier will result in switching the purchasing
cost. If it is talked about Vodafone, the leaders need to maintain effective supply chain with
multiple suppliers in order to sustain the business in market.
Bargaining power of buyers: This factor has huge emphasis on existing the business in
competitive market. The purchasing power of buyer vary from the trend adapted by the society
and price estimated by competitors on similar product or services. The customer base is
considered to be the top most priority of any organisation. The marketer has to critically plan
strategies in analysing the bridge between demand and supply of goods in target market
Nowadays, the customers are very much aware about information, been provide by firm on
internet about goods that are been offered to them. If it is talked about Vodafone, the marketing
executive could improve the customer base, by providing varied range of product in market.
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Threat of substitute product or services: This factor is considered to be essential aspect
in growing or decline of business in competitive market in specific industries. The firm need to
introduce attractive product to seek attention of customer, so that they cannot switch to other
goods. The management have to accordingly set a price of product that will be in the estimated
budget of consumers. It is necessary that customer loyalty should be in favour of firm. While
taking in consideration Vodafone, the management could overcome through this threat by
focusing on service rather than being product oriented (Plewa and et. al., 2015).
Rivalry among the existing competitors: This force analyses the current competition
that are taking place in target market. It also helps in identifying the number of existing
competitors and their marketing strategies in sustaining the business in specific industries. If it is
talked about Vodafone, the existing competitions is being focused in increasing profitability in
wireless industries. This could be achieved by building a sustainable differentiation on the goods
and service that are been offered to customer.
TASK 2
Corporate Social Responsibilities is self regulatory business which helps the business
organization in being socially accountable. In other words, CSR helps in managing the business
process which focuses on producing an overall positive impact on the society. Along with this
the thoughts and action taken under the company out of their interest and goals, as thinking about
the improvement of the society and social communities. As this covers the social sustainability,
culture, ethics and also deals with CSR issues. The report includes the awareness of the
Vodafone corporate social responsibilities towards its customers and society.
2.i Influence and relevance of the CSR to Vodafone.
The Vodafone is a largest organization in telecommunication industry. As this
organization involves in distributing their different products in world wide area, which is very
helpful for the society and social communities. As the Vodafone organization a vast company
with ample numbers of suppliers, buyers, customers as well as effective communities which have
good relationship with the Vodafone organization. As the customers are most important
determinant for the success of Vodafone organization. Now more that million customers choose
Vodafone as their communication channel all around the world (Exchange and et. al., 2015).
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The Vodafone company is highly relevant with the topic of CSR activities. Being a large
scale organisation, there are various activities which Vodafone conduct against fulfilment of
their responsibilities against society. These corporate social responsibilities include “Vodafone
Eco-ponds for environment”, these are beneficial for the environment, they are providing free
education to five million children form whole world, planting more than three lakh trees which
helps in enhancing the forest which covers 300 hectors in MP, India.
According to Abugre and Nyuur (2015), CSR activities are important to do for any
organization. Due to this government also made the rules that each and every organization has to
do Corporate Social Responsibilities towards the society according to their profit revenue. As
from 27 years, the Vodafone is investing £ 40 million in every year in CSR. The organization has
27 Vodafone foundations around the world.
According to Moravcikova, Stefanikova and Rypakova (2015), CSR creates the loss of
profit revenue to the Vodafone, but in against this the Corporate Social Responsibilities helps in
increasing the brand image, brand value as well as Goodwill of business organization in serving
area of CSR activities. The Corporate Social Responsibilities and the Vodafone organization are
relevance and connected with each other. The Vodafone foundations invest in communities
which company operates for the welfare of the local social welfare programs and this a UK
registered charity foundation.
From the above author’s discussion, it is analysed that Vodafone’s contribution towards
the society is more of a responsibility than an obligation which should be relevant to an
organisation. In the environment in which Vodafone operates provides ample resources to
Vodafone, due to which it Vodafone must return those resources by fulfilling its social
responsibilities.
Corporate social responsibility influences the decision making and policies of Vodafone
in various ways:
 Sources of funding – Selecting a right source to acquire funds is a crucial decision for an
organisation to make. CSR impacts this decision of Vodafone as this company prefers to
source funds from private equities and venture capitalist as acquiring funds from public
needs the business to have a sound brand image. But after fulfilling the corporate
responsibility, Vodafone can effectively acquire funds from public as they have a good
image in market due to CSR.
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 Employee recruitment policy – It is a policy of Vodafone in which they recruit only
experienced employees. But considering the corporate responsibility, Vodafone has
changed their policies to recruit young talent so that employment can be given to them.
From the above researched points, it can be said that CSR positively and negatively impacts
an organisation’s decisions and policies.
2.ii Effectiveness of the organization’s response.
According to Moravcikova, Stefanikova and Rypakova, (2015), Vodafone contributes
effectively against their society as they contribute their finance resources towards education and
community development. In case of Contributing to Education sector; the Vodafone organization
help schools of different areas of local communities and remote institutions, by providing them
many facilities such as water supply, books, clothes, electricity and many more. As now the
Vodafone company is giving free education to five million children's in Africa as the part of their
Corporate Social Responsibilities.
In case of community development and charity; the Vodafone organization creates the
effective and strong relationship with the social communities of the United Kingdom, as by this
the company establish the different types of social welfare programs and charitable programs in
the society. As with the help of Corporate Social Responsibilities and activities, the management
of Vodafone promotes their products and services in different areas by doing different social
development activities such as increasing in social awareness among people about their effective
products and services.
On the other hand, from the views of LeBaron and Rühmkorf (2017), Vodafone is more
engaged in contributing towards their employees rather than contributing towards their society.
Major contributions of this company involves decreasing the issue of unemployment and
employee betterment. In case of minimizing the Unemployment; the organization focuses on this
problem as minimizing the unemployment form the area. As this helps in betterment of society
which helps in creating strong relationship with society for social welfare and the business
organization and for the purpose of searching for new benefits for well bringing of society. As by
hiring more and more employee in their business organization.
In case of employee betterment; every employee of Vodafone is considered essential and
critical for the success of the company. For getting the good response from each and every
employee the company focuses on the betterment of each candidate and they provide effective
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tanning and development programs, good attractive salary, accommodations, other benefits to
employees such as incentives, bonus, attractive perks, vacations, reimbursements and other
activities which crates local communities and groups effective and careful about many more. As
this helps the Vodafone organization is very capable of providing and taking care of giving
effective benefits to their employees effectively and efficiently.
From the above arguments, it can be said that investigation of all the authors has its own
strengths and weaknesses by which it has been verdict that statements of all the authors are true.
But for this specific case, it can be said that Vodafone is more focused to facilitate society
instead of befitting their own employees.
2.iii Some areas for improvement in business organization.
There are many different areas in the Vodafone organisation, which needed to be
improved in context of corporate social responsibility. As Vodafone is a most prominent
telecommunication service industry which deals in various products such as Broadband, Mobile
phone, Digital television, Fixed line telephone and, Internet television in across the world.
The business organisation gives effective and great contribution in each and every served
area such as political, technological, social, economic, ecological and many more. As company
do Corporate Social Responsibilities which is very helpful for the society which helps in
increasing in promotion, brand image as well as market growth (Prashaant and Sharma, 2015).
International & global problems: The Vodafone's company has to do more focuses the
problems arise at international as well as global level. As this types of organisations services that
produces and generates the radiations which is very harmful for the society. By focusing on
global problems, Vodafone can fulfil their social responsibility of trying to generate less harmful
radiations in environment.
Human Resource Department: The management of the Vodafone also focuses on their
human resource department, as focusing on hiring the more and more effective employees who
has great knowledge, experience and specialized in that filed. So, that it is too beneficial for
organization. As it also more effective and pleasant to make an automatic contribution and
fulfilment to their CSR activities.
Production Department: The Vodafone can improve their product & service
development of their organisation, such as more customer can attract towards their services. As
good services influence the customer in increasing the customers for that product which has
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effective and innovative features. By this, effective services can be provided to customers which
is a corporate responsivity in its own dimension.
Remote communities: The manager of the Vodafone should concern about the remote
community of every region, as they focus on giving services to them as it helps both remote area
people by getting network services in their area and the organization it increases in their profit
revenue as well as their brand image effectively and efficiently (Wang and et. al., 2016).
Technological Department: The Vodafone company has to main focuses on
technological department, as technology plays an important role in telecommunication industry.
As the business organization should focus on adopting & applying the effective changes and up-
gradation in technology in their products of their company. They should adopt latest technology
and provide the effective as well as proper services to their customers. Along with this they can
focuses on minimizing and reducing the bugs and routers, and focuses on giving effective
services with minimum errors with in effective and less price.
Sales Department: The management of Vodafone company has to focuses on
improvement of sales department of their company, so that maximum sales can be done
effectively. As by providing effective training to their sales employee as well as by applying
effective and appropriate sales promotions tools such as price off, bye on get one free offer,
discounts offer, contest, demonstrations, and many more (Tong, 2017).
Competitors: Each and every organization has a threats form their competitors form any
area world. Among all the business it has many competitors such as Airtel, Telstra, SingTel and
many more. Among all area the Vodafone has more competitors in UK market as compare to
other served area. So that the Vodafone's organization need to focuses more focuses on the
threats form their competitors, with the help in involving them in Corporate Social
Responsibilities activities for their business organisation. As it also analysis and do research
about their competitive market.
Research and development: The Vodafone organization should focus on the
improvement of the Research and development department as this helps in analysing the
profitable market for their product and services. Such as analysing the market with ample
numbers of customers, so that company can put their network in that place, which will lead to
increases in more and more profit for the business organization.
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Operations: The management of Vodafone company focuses improvement of operations
department efficiently. As this helps in effective and smooth running of each function of the
business organization. As proper operations help in enhancing the productivity of Vodafone, that
may aid in hitting targets in specified time frame (Visser, 2016).
COCLUSION
From the above report, it can be concluded that Vodafone company is one of the vast
business organization which deals in different products and serves it products & services in
across world wide area. By this only they are influenced with different types of external factor
such as PESTEL analysis and Porter's 5 force Model, as they have to deals with them for making
their business effective and profitable. As this both helps in running the business smoothly as
well as effectively & efficiently. Along with this they focus on the relevance and influence of
their Corporate Social Responsibilities on their business and its effectiveness of their response of
CSR activities. In addition to this, this report also considers some of the areas of business which
can improve in the business organization.
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REFERENCES
Books and Journals
Abugre, J. B. and Nyuur, R. B., 2015. Organizations’ commitment to and communication of CSR
activities: insights from Ghana. Social Responsibility Journal. 11(1). pp.161-178.
Amoako, G. K., 2016. CSR practices of multinational companies (MNCs) and community needs
in Africa: Evidence of selected MNCs from Ghana. In Corporate Social Responsibility
in Sub-Saharan Africa (pp. 217-240). Springer, Cham.
Exchange, D. and et. al., 2015. Work with u
Feldman, G. D., 2015. Iron and Steel in the German Inflation, 1916-1923. Princeton University
Press.
LeBaron, G. and Rühmkorf, A., 2017. Steering CSR through home state regulation: A
comparison of the impact of the UK bribery act and modern slavery act on global
supply chain governance. Global Policy, 8, pp.15-28.
Mohd Said, N. S. and et. al., 2016. Workplace training: reinforcing effective job performance. e-
Academia Journal. 5(1). pp.1-15.
Moravcikova, K., Stefanikova, Ľ. and Rypakova, M., 2015. CSR reporting as an important tool
of CSR communication. Procedia Economics and finance, 26, pp.332-338.
Per, V. I. T. C. I. and Su, N., 2016. Internet.
Plewa, C. and et. al., 2015. The impact of corporate volunteering on CSR image: A consumer
perspective. Journal of Business Ethics. 127(3). pp.643-659.
Prashaant, A. and Sharma, N., 2015. Vodafone's M-Pesa-A Mobile Wallet Revolution. FIIB
Business Review, 4(2), pp.26-29.
Rangan, K., Chase, L. and Karim, S., 2015. The truth about CSR. Harvard Business Review,
93(1/2), pp.40-49.
Tong, X.F., 2017. A comparative review on company specific determinants for sustainability
reporting in United Kingdom (UK) and Malaysia. In SHS Web of Conferences (Vol.
36, p. 00012). EDP Sciences.
Visser, W., 2016. 19. The future of CSR: towards transformative CSR, or CSR 2.0. Research
Handbook on Corporate Social Responsibility in Context, p.339.
Wang, H., Tong, L., Takeuchi, R. and George, G., 2016. Corporate social responsibility: An
overview and new research directions: Thematic issue on corporate social
responsibility.
Zaman, T., 2019. An Internship Report on Retail Survey of Igloo.
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