Vodafone PESTLE and SWOT Analysis

This assignment delves into an in-depth analysis of Vodafone, a leading telecommunications company, utilizing both PESTLE and SWOT analytical frameworks. It examines the external macro-environmental factors influencing Vodafone's operations, including political, economic, social, technological, legal, and environmental aspects (PESTLE). Additionally, it analyzes Vodafone's internal strengths, weaknesses, opportunities, and threats (SWOT) to provide a comprehensive understanding of its current position and future prospects within the competitive telecommunications industry.

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Business & Business environment
SHORT ESSAY
Vodafone’s organizational functions & structure
Introduction: Organisational function refers to the whole practice of business operations of
an organisation. Vodafone is one of the most discussed telecommunication brand in the
world. It is the 5th largest telecommunication company in the world. Thus, the organisational
structure of the Vodafone has been segmented in many subsections and zonal sections around
the world. They also manufacturer mobile phones, which has caused a bigger global
expansion of the organisational (Vodafone,2016). Thus, organisational function of Vodafone
has vital role to play in shaping structure of Vodafone.

Figure 1: Vodafone offering 4G cellular service along with the mobile handsets
Vodafone’s organisational function:
Vodafone is one of the largest mobile operator in the UK, and thus its functions are mass and
wide spread. Vodafone has been famous for their high-quality network service and customer
care service. Its operations include regular cellular calls and texts, 3rd and 4th generation
internet service, broadband internet service, selling mobile devices and international roaming.
Such broad scale operations around the world needs a wide spread organisational structure
(Kyle Nazario, KhidrSuleman,2014)..
Figure 2: Vodafone’s most important operation has been the 4G service in recent years, it
caused a massive change in their structure
Vodafone’s functions and its effect on Vodafone’s structure:

Organisational structure is the ways in which the different segments interconnect and work
together, and if one segment does not complete its function, the whole business suffers.
Firstly, Vodafone has segmented its structure in zonal basis, and then country basis. All the
segments are independent in nature but governed centrally by the UK head office. As
Vodafone is a retailer of different mobile phone brands, it also manufactures its own cell
phones. A new section has taken place in its structure (Vodafone, 2016). An observational
hierarchy of Vodafone is illustrated below
Figure 3: Vodafone's structural Hierarchy
From this structure we can find out how Vodafone covers up all its functions. The most
important function of Vodafone is delivering service and retaining customer satisfaction.
Vodafone’s marketing and promotional activity is another important function for them
because of the fierce competition in the UK telecommunication market. Thus these elements
are directly monitored by the company CEO, though these operations are the responsibilities
of commercial operations(Vodafone,2016).
The CEO of Vodafone will be overseeing strategies relating to other Vodafone
investments. The finance,human resources,technology,legal and external affairs,consumer
commercial all these departments will be looked after by the CEO of Vodafone. The finance
department will be responsible for planning finance and keeping of records. The chief
financial officer will be head the finance and managerial team. The management and
employment of staff will be looked after human resource officer. The proper function and
security of the data centre will be ensured by technology office. Firstly,the strategies will be
made by CEO in order to better services for customers. Then this strategy will be discussed
with other members. The investment or planning of budget will be done by finance
department. In order to make customers aware about this product commercial or marketing
strategies will be adopted. The HR is responsible for hiring or appointing deserving

candidates for Vodafone. The latest technology will be used in order to provide better
services to customers.
Conclusion: Vodafone offers diverse products and services to its customers. And thus its
organisational functions are really different from one to other. Hence Vodafone has a big
organisational structure, which covers up all the functions of it. As the modern age of
technology is offering telecommunication sector a new way to serve the customers better
more often, the organisational structure of the telecommunication companies is expanding
with the introduction of these new offerings (Reuters, 2016).

Task 3: Report:
Business and business environment
REPORT
Khaled Allag
14832
Contents
Vodafone’s organizational functions & structure .................................................................................8
Introduction.........................................................................................................................................13
Section 1: Macro environment factors of Vodafone............................................................................13
Technological Environment:That market sectors with mobile or portable mobile phone handset get
been through some sort of compressed change with technological know-how together with
accessories implemented. Together with inside next a long time it will carry on with this. 3G
technological know-how comes with been around and has now can come send which includes a
superior deal with each of those subject material and extra solutions. Today considering 2012, when
serious rival EE comes with unveiled 4G technological know-how, company may be challenging with
regard to Vodafone. For a Vodafone must release 4G technological know-how way too so that you
are with levels of competition using EE. Nevertheless confident issue is usually that they allow rising
that sales when Vodafone will start giving you 4G technological know-how with a wide array of
people..................................................................................................................................................17
Section 2: SWOT analysis of Vodafone................................................................................................17
Market saturation in UK and Europe...................................................................................................19
Uncertainty and rigorous of regulatory environment..........................................................................19
Improved network coverage & quality of the competitors like- EE.....................................................19
Increasing competition in the market (scribd.com,2016)....................................................................19
Section 3: Vodafone’s Internal and external factors............................................................................19
Section 4: PEST analysis of Vodafone...................................................................................................20
References...........................................................................................................................................24

Introduction
Business environment states all the external and internal issues that affects an organisation’s
functions. Micro environment discusses about the factors which are directly interrelated to
their business practices, such as customers, suppliers, reseller, competitors etc. In contrast
macro environment discusses about all the outside constituents related to an organisation.
The Telecommunication market of the United Kingdom is a role model for the rest of the
world. There is a number of quality mobile operators are there in the UK market. Such as EE,
O2, Vodafone, Three etc. Our concern is to macro environmental effect in one of these
companies, Vodafone.
Vodafone is a British multinational telecommunications company headquartered in London.
Vodafone' brand started in 1982 with the formation of Racal Electronics plc – UK's largest
manufacturer of military radio technology. Vodafone is the world's 3rd-largest mobile
telecommunications company measured by both subscribers and revenues. It is a globally
operating company, since Vodafone owns and operates networks in 21 countries and has
partner networks in over 40 countries around the world.
Section 1: Macro environment factors of Vodafone
Vodafone is one of the market leader in telecommunications sector of the UK and 3rd largest
mobile operator in the world. The impact of macro environment is huge in any organisation.
Below I will try to find out the effects of macro environmental factors on Vodafone.

 Political Environment: That political environment contains a terrific influence on
that effectiveness with company with continue Vodafone’s objective with gaining that
tactical plans together with plans. Politics variables are generally quite simply
occupied with federal plans and also other regulating description. Office environment
with sales and marketing communications (Ofcom) is a regulator in the UK also its
particular principal motive is usually to guarantee the levels of competition together
with product sending. The very first thing the idea managed is a privatisation with
United kingdom telecom’s solutions which often required the idea to make multi-level
together with world-wide-web solutions to help many other affiliates via the approach
termed nearby hook unbundling. As a result of a lot of these regulating modifications,
Vodafone only took a bonus together with reveal it's mobile or portable solutions .
Additionally, permits to help cellular phones are generally regulated highly together
with entry to devices together with entry to a number may be tied to the us
government so as to offer far better encounter to your most people. The significant
changes has been made in Vodafone due to political issues. On every business that is
conducted in UK the government has increased the tax policy and issues VAT. Due
to this Vodafone has to make modifications .In past years Vodafone have decreased
its prices but the business and revenue have been increase. New rules have been
implemented due to legislation laws new government have been made. The
organization need to follow these laws. The pressure was made by the government to
decrease its price due to high inflation rate in the country.

 Economic Environment: A lot of these factors comes with with low interest rates,
deviations with division of taxation, commercial increase, change premiums together
with inflation, or anything else. A lot of these variables make a difference to a great
organization’s competition. With Vodafone, permit charge to help get some sort of
telephone is incredibly excessive when compared to many other standard
establishments. There would be some sort of showdown with 3G & 4G permit
businesses in the height with financial surge which often triggered with serious charge
for any. After that charge producing together with having multi-level composition is
incredibly excessive for any multi-level user corporation. It requires enough revenue
to breakeven and if in any case it is not made possible then the standards will not be
approached (Kyle Nazario, KhidrSuleman, 2014). At present as the country feels
recession some challenges can be faced by Vodafone due to this. Vodafone has cut its
price due to economy crisis. The criteria of market has also decreased due to this. The
business have been influences due to high inflation rate.
 Socio Cultural Environment: These factors contain health awareness, growth rate of
population, and scattering of age and safety prominence. Concerning Vodafone’s
strategy in UK, the population has been getting older day by day and on the other
hand it also has been researched that the population of UK will grow 4 percent over
the successive five years. Mobile phones usually are used by youths more than the old
people. In the country like UK where population is ageing, demographics may have
likelihoods to swipe to more aged populations. It will further end with the less use of
mobile phones in UK. The needs of ageing population need to be looked by the
company so that they can also make use of service and phone offered by Vodafone.

Figure 4: Vodafone is introducing new technology for better efficiency in their operations.
 Technological Environment:That market sectors with mobile or portable mobile
phone handset get been through some sort of compressed change with technological
know-how together with accessories implemented. Together with inside next a long
time it will carry on with this. 3G technological know-how comes with been around
and has now can come send which includes a superior deal with each of those subject
material and extra solutions. Today considering 2012, when serious rival EE comes
with unveiled 4G technological know-how, company may be challenging with regard
to Vodafone. For a Vodafone must release 4G technological know-how way too so
that you are with levels of competition using EE. Nevertheless confident issue is
usually that they allow rising that sales when Vodafone will start giving you 4G
technological know-how with a wide array of people.
 Legal factors – About the issues such as copy and pirates issues Vodafone has to be
very much vigilant. For the legal issues states has many times blamed Vodafone.

Many penalties have been faced by Vodafone. In order to maintain and increase its
customers Vodafone should try to abide buy legal issues.
 Environment factors -People have become more and more ethical and ethics
oriented with rise of globalization. The customers wish that their brand should play an
essential role of betterment of the society as a whole. To be part of Vodafone family
the working conditions need to be good enough to attract the best of candidates.
Vodafone should always take into consideration aforementioned facts and figures in
order to expand the network.
 Section 2: SWOT analysis of Vodafone
 Internal Factors Strengths: Globally a well-known brand name Great geographical exposure.

 Expanded in different economies of scale due to its size Highly advanced company in terms of technology. Integration of businesses under Vodafone umbrella. High level network set-up. One of the leading mobile company in the UK. Weaknesses: Mainly concerted in Europe and Asia Poor network coverage. Fragile in fixed network area. Absence of rural network wireless access. External Factors Opportunities: Increase the 4G coverage to gain new customers in the UK. Tap into emerging markets like- India. Reduce costs through efficiency. Diversification into new areas. Strong R&D to innovate new technology. Threats: Market saturation in UK and Europe.

 Uncertainty and rigorous of regulatory environment. Improved network coverage & quality of the competitors like- EE. Increasing competition in the market (scribd.com,2016).
Strength
 Better services
 Stable position since five years
 With large mobile
technology ,Vodafone has make
alliance
 For Vodafone innovation in wireless
sector is beneficial
Weaknesses
 Weak wireless technology
 Not too much expert technician for
rapid innovation in new technology.
 Some issues regarding complains of
customers.
Opportunities
 Due to globalisation opportunities are
there to expand its business.
Threats
 New arrival in telecommunication

To make profit Vodafone can launch its
services in other countries.
 Competitor – Three
Section 3: Vodafone’s Internal and external factors.
Vodafone is an established brand in the UK, and has great potential globally. But in
recent time it lost some its market shares to other competitors like EE, Three etc. It happened
due to some of its internal factors. For example- the poor network coverage and service
quality. Such factors has been detrimental in a fierce market like the UK. It caused Vodafone
a lot, and the future threats are really immense for them. On the other hand, some of the
strengths of Vodafone is exploring new doors of opportunities for Vodafone. Their well
spread network is helping them to conquer new markets. And strong brand name is making
this way smoother (Research-methodology.net, 2016).
Section 4: PEST analysis of Vodafone.
Positive and negative impact of pestle analysis
 Political Factors: The political factors are especially powerful in the method
for the advance of the organizations like Vodafone as it needs to create
foundation for the organization to be operational in a specific state. The
organization is subject to the political situation of the state in which the nation
is working. Be that as it may, as of late there are sure things like the
tranquillity of the state and the political unsteadiness which laid direct effect
on the organization. A nation with political shakiness turns into a war inclined
zone and the foundation of good framework for the system turns into a tedious
assignment. It could be dissected from the case that the current clashes in
Europe have extraordinarily influenced the organization overall
(mbaskool.com, 2016).

 The most crucial political factors having an effect on Vodafone it is comprise
on EUROPEAN Walking around Legislation that will intents to diminish bills
with regard to telephone uses in foreign countries just by 70% together with
rising amount of customer proper rights inside The EU, together with options
that is generated by EU Regulating Description for any sales and marketing
communications arena.
 Economic factors: This is one the essential factor for the organization like
Vodafone. The more the states will build up the higher are the odds of the
organization to grow and open its new units in the recently created zones. The
great Gross domestic product of the nation implies that the general population
has more pay and will be more inclined in adjusting the most recent
correspondence innovation. Thusly, the general benefit of the organization
will be expanded and the organization will dependably be in a position to
extend all inclusive (mbaskool.com, 2016). Additionally, the general financial
emergency the world has been confronting lately has likewise an immediate
effect on the organization like Vodafone. The worldwide vulnerability has
rolled out the organization to improvement its procedures from time to time.
 Social Factors: There is a series of social factors as well that affect Vodafone.
For instance, shifting work patterns that are becoming very popular make
people work from home progressively relying in communication technologies.
Also, there are issues like public going ‘green’ and ageing population in the
UK that are going to affect Vodafone directly or indirectly. The impacts are
absolutely in view of the nearby convictions and culture of the general
population in which the organization is working. This is an extremely
powerful space and for the achievement, the organization must show

adaptability in its strategies relating to the nearby culture. Vodafone is
essentially a simply European organization however it has changed its
inclinations and the related strategies according to the nearby social factors in
which the organization is being worked (pestleanalysis.com,2016).
 Technological factors: Vodafone has been popular on the planet for its
innovation. Vodafone has its central goal to dependably take after the
contemporary patterns in the mechanical and correspondence
circle(Quora.com, 2016). There are many opponents of Vodafone now. It is
officeholder for the organization to venture out in front of the innovation. The
items Vodafone is creating are for the most part mechanical related so it is one
of a basic factor which the organization needs to keep in see while chalking
out the arrangements and evaluating the inevitable propelling of gadgets and
the components of the gadgets. Vodafone has been the innovation driven
organization and concentrating on the most recent patterns of innovation ought
to have been the crucial proverb which the organization ought to take after
(wirelesstelecom.wordpress.com, 2016).
 Legal factors: For the worldwide organization like Vodafone which has many
opponents. Vodafone must be particularly cautious about the lawful issues like
duplicate and other pilfered issues. States has commonly pointed the finger at
Vodafone for the legitimate issues relating to the circle of foundation. In this point of
view, Vodafone needs to confront numerous punishments. Aside from this multiple
occassions, Vodafone has been blamed for not paying much to its representatives
when contrasted with its adversaries. The individual working in Vodafone frequently
leaves and joins the adversary organizations, which amplifies the dangers of spillage
of inventive thoughts. Vodafone should chalk out some lawful ties in this point of

view (pestleanalysis.com,2016). In addition, Vodafone ought to dependably submit to
the legitimate issues of the space keeping in mind the end goal to build the clients and
to keep up a positive picture in the market which will dependably help in picking up
the trust of the clients.
 Environmental factors: With the ascent of globalization, individuals have turned out
to be increasingly moral and morals arranged. The buyers dependably anticipate from
their most loved brand to be socially mindful. They generally need from their image
to assume a crucial part in the improvement of the general public all in all. The
working states of the organization should likewise be adequate to pull in the best of
the people to be the piece of the Vodafone family. Vodafone has been an organization
which is exceptionally unique in nature. So as to keep up the market and extend the
system, Vodafone ought to dependably consider the previously mentioned certainties
and examination. These outer, and also inner components are the real fixings in the
accomplishment of the organization. They plainly characterize the motivation the
organization should take after to maintain a strategic distance from the
disappointment(pestleanalysis.com,2016).

References
 Http://pestleanalysis.com/political-factors-affecting-business/
 Http://www.ukessays.co.uk/essays/management/macro-environment-factors.php
 http://research-methodology.net/vodafone-pest-analysis/
 http://www.slideshare.net/aidosbespayev/vodafone-presentation-45118084
 https://wirelesstelecom.wordpress.com/2014/07/28/swot-analysis-of-vodafone-
worlds-second-largest-mobile-network-operator/
 http://www.studymode.com/subjects/pestel-analysis-of-vodafone-page1.html
 https://wirelesstelecom.wordpress.com/2014/07/28/swot-analysis-of-vodafone-
worlds-second-largest-mobile-network-operator/
 http://www.slideshare.net/gertrudemasemola/vodafone-swot-analysis
 https://www.scribd.com/doc/26197780/Vodafone-SWOT-Analysis
 http://www.mbaskool.com/brandguide/telecom-service-providers/502-vodafone.html
 https://www.quora.com/What-is-the-SWOT-analysis-of-Vodafone-in-India
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