Evaluating Vodafone's Financing Strategies and Corporate Lifecycle
Added on 2019-09-30
20 Pages3656 Words160 Views
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FINANCIAL STRATEGYVodafone
Table of ContentsIntroduction.................................................................................................................................................3History of Vodafone....................................................................................................................................5Factors affecting financial strategy..........................................................................................................8Financial strategy analysis.........................................................................................................................10Seven Rappaport value drivers against performance................................................................................11Evaluation in context of corporate lifecycle..............................................................................................12Dividend policy & its impact......................................................................................................................15Conclusion.................................................................................................................................................17References.................................................................................................................................................18
IntroductionIn this present paper, we will make a report on the evaluation of financial strategy of VodafoneCompany. The paper discusses the history of a company over ten years and the key factors whichaffect the financial strategy of the company. The analysis of the financial strategy is analyzedfrom different aspects. The company’s performance is compared against the seven Rappaportvalue drivers. The critical evaluation is done in a context of corporate lifecycle, and the dividendpolicy of the company is evaluated with its impact on shareholders value.The Vodafone is the largest company in the sector of telecom. It is based in the United Kingdom.The market value of a company is 75 billion until June 2008. The equity interest is widelyavailable in 25 countries, and the partner network is available in approximately 42 countries. Thename of the company is coming from the voice data phone, the aim of choosing the word is toreflect the provision of voice and data service which is provided by the mobile phones. Thecompany agrees to acquire the interest of Hutchison Essar Limited 67% for worth US$11.1billion. The company retains 4.4% stake in Airtel, and simultaneously the company agrees to sellback 5.6% Airtel back to the Mittal’s. The company is the world’s leading international mobilecommunication company in the world. The operations of the company are network partners ofthe company is approximately 30 available in 25 countries across five continents and with theconsumers of 200 million across the world. The company tied up with the I-Phone. Thecompany's profit has increased by 50% after the expansion of consumer base with an average of1.5 million net additions monthly after an acquisition. The company launches in India after thetied up with iPhone 3G version then the rate of the phones goes down by 50%.The financial strategy of the company is to provide timely, efficiency in cost and the security offinancial resources to the management and it also includes the management of capital structure
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