Contemporary Developments in Business & Management- Doc

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 centres 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 serve their services
across world wide 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 ans 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 lead 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 posses 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 a 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 is been effectively utilised by managers in improving customer base.
These aspect 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 depend 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 supplier are 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 have 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 have to critically plan
strategies in analysing the bridge between demand and supply of goods in target market
Nowadays, the customer 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 analyse the current competition
that are taking place in target market. It also help 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 been 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 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 has its Corporate Social Responsibilities, such as Vodafone Eco-ponds for
environment as this is 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. Along with this Vodafone has switched on its
5G network service in UK and will offering the unlimited data to all their customers. Now 5G is
live in seven cities and 27 cities in total Europe.
As CSR activities are important to do for any organization. Now 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.
As 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.
The many CSR activities influence the Vodafone organization for effective working and
gaining more attention of company towards the customers (Abugre and Nyuur, 2015).
Influences form customer focus: As their key responsibility is to give best services to
customers, which relays on first class network across the world with great value product and
excellent customer service. As every time customer make the effective decision about buying
any kind products from any of the organization, with some criteria such as alternative products,
considering about the quality of product & services. As they affects and influenced by its
goodwill of the company. As good brand image of company will increase the numbers of
customer within minimum time, that's why customer play an important role for Vodafone
organization. Along with this company has to create the effective and appropriate marketing
strategies, by considering the benefits of the society and customer (Amoako, 2016).
Public influences: At each and every stage of business, media or channel of
communication is very important elements and influencing factor, which helps in influencing the
public and audience in effective way. The both positive and negative news about the Vodafone
company, can give a vast impact on the brand image of business organization, in the mind of
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customer of the company. As Vodafone is focusing on Corporate Social activities, as it is
beneficial for both society( social welfare) and organization( increase in goodwill), as this helps
the society in increasing and development of the society as well as social welfare (Rangan, Chase
and Karim, 2015). It it is talked about, in context to Vodafone organization, by CSR activities
creates marketing and do auto promotions activities for business organization of their different
product and creates ample numbers of customers for their products throughout the world wide.
2.ii Effectiveness of the organization’s response.
Contributing to Education sector: The Vodafone organization is contributing in
education as they helps schools of different areas of local communities and remote institution of
education by providing many facilities such as water supply, books, dress, 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.
Minimizing the Unemployment: The unemployment is very biggest problem and
concern for every union. 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 (Moravcikova, Stefanikova and Rypakova, 2015).
Employee betterment: All employee are very important for every business organization,
as every employee of Vodafone are essential and helpful for the success of the company. For
getting the good response form each and every employees the company focuses on the
betterment of each candidate and they provides effective tanning and development programs,
good attractive salary, accommodations, other benefits to employees such as incentives, bonus,
attractive perks, vacations, remeasurement 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.
Community development and charity: The Vodafone organization has creats 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
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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 (LeBaron and Rühmkorf, 2017).
2.iii Some areas for improvement in business organization.
There are many different areas in the Vodafone organisation, which needed to be improve
effectively and efficiently which is very helpful for the business organization.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 give 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.
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
effective and innovative features.
Remote communities: The manager of the Vodafone should concern about the remote
community of every region, as they focuses on giving services to them as it helps both remote
area people by getting network services in their area and the organization it increase 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.
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As the business organization should focuses on adopting & applying the effective changes and
up-gradation in technology in their products of their company. They should adopts 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 offers, 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 its 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 focuses 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 leads to
increases in more and more profit for the business organization.
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 helps 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 conclude 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
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their business effective and profitable. As this both helps in running the business smoothly as
well as effectively & efficiently. Along with this they focuses 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 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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