Analysis of Vodafone Company's Business Environment

The given report analyzes the business environment of Vodafone company, discussing public, private, and voluntary organizations. It examines the organizational objective and structure of Vodafone, along with environmental factors affecting its operations. A further analysis using Porter's five models and SWOT analysis is conducted to determine the impact on macro factors. This report aims to provide insights into the business environment's role in achieving future growth and strengthening weaknesses while improving strengths.

Business and business
environment

Table of Contents
INTRODUCTION...........................................................................................................................1
Purpose of various kinds of organisation....................................................................................1
Explanation of each organisation................................................................................................2
Organisational objective and structure of Vodafone company with their interrelation..............5
Environmental factors that impact on business operations.........................................................6
Porter's five forces analysis of Vodafone company....................................................................8
Relationship between strength, weakness and macro factors.....................................................9
Conclusion.....................................................................................................................................11
References......................................................................................................................................12

INTRODUCTION
Business environment means all the internal and external factors including employee,
customer, supply, management, supply, demand and other regulations which affect overall
performance of business. In present report business McDonald organisation is chosen to view
business environment. This present report will cover purpose of various kinds of organisations
and explanation of each organisation (public, private and voluntary organisations). After that it is
going to be discussed that what are business objectives and structure and environmental factors
that impact on business structure. Porter's five models and relationship between strength,
weakness and macro factors on business environment is also going to discuss in this report.
Purpose of various kinds of organisation.
Business organisations are the entities which aims is to provide goods and services by
carrying commercial needs and to meet customer satisfaction. Different forms of business
organisations are sole proprietorships, limited partnership, general partnership, and limited
liability partnership. Here we are going to discuss an overview of public company, private
company, and voluntary company.(Bryson,2018. ) Companies which is publicly traded and
traded freely on stock exchange are public companies. Companies which has objective of earning
profits and runs by individuals are private company and companies which has objective to
benefit society are known as voluntary organisation.
Public companies.
This types of company are also known as publicly held traded companies which objective
is to sale its securities with general public's. Shares of these companies are openly traded where
majority of share is in the hands of government and after that with shareholders. Currently less
than 1000 companies are listed on London stock exchange. These companies are formed
according to nation's legal structure. Oil company British petroleum is publicly held company
operating to provide oil in all areas. They do business in exploration, production, refining,
petrochemicals, and in power generation. Main aim of public sector organisation is to provide
services to satisfy customer, not generate profit.
Private companies.
This types of companies runs by two or more individuals to generate profit therefore it is
not owned by government. They contribute to increase countries economy. Public companies
shares do not trade on stock exchange but they may issue stocks which have shareholders.
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Approx 3.4 million sole proprietorships working in UK which means 60% of total. They also
contribute large employment, in UK 9,90,000 employers are working at the beginning of 2017.
And each private companies providing their role to improve business environment. Vodafone is
world's second largest telecommunication company in UK which is providing services in
telecommunication and a part of Vodafone Group.
Voluntary companies.
Individuals or foundations which runs this types of business does not have any motive to
generate profit, their main aim is to provide benefits to the society or to do charities for the sack
of society in nations.(Coppin, 2017.) Money they generate by doing voluntary business invests
back in society. In UK it is estimated that these sectors contribute £11.7 billion to gross value
added and 1,62,965 organisations are working in voluntary organisations to provide benefits to
societies. Wellcome Trust in UK was doing business in this sector to provide advice related to
medical health benefits to human as well as to animals.
Explanation of each organisation.
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Public (British
petroleum)
Private (Vodafone) Voluntary (wellcome
trust)
background It started in 1909 in
doing business in
petrochemical and
becomes world's
largest company by
doing merger with
Amoco corporation of
United states. In 1914
British government
owned ownership of
this company for
selling shares in
public.
It is started in 1982 in
United kingdom
subsidiary of Racal
electronics, which is
UK's largest radio
technology. In 1991, it
merged with Vodafone
group and becomes the
largest
telecommunication
industry providing
networks in 25
countries.(Ceptureanu
and et.al .,2018. )
Sir Henry Wellcome
was the founder of
Wellcome trust which
aim is to provide help
to scientists and
researchers to expand
their knowledge by
doing innovation in
biochemical research.
Their investment
portfolio in 2016 was
approx £20.9 billion
which makes them
continuous growth.
vision Their vision is to
conduct business in
ethical manner by
fulfilling social
responsibilities. Their
main vision is to
provide improvements
in all areas and to stay
leading multinational
company.
Their vision is to
provide best network
with best values and
services. They also
wanted to connected in
leading world to
become the best
communicator leader
and to improve
communication
network in customer's
lives.
Vision is to improve
health by providing
various funding
initiatives. Their focus
is to do research in
biochemical products
which provide
nutritious to humans
as well as to animals.
mission Their mission is to
improve change their
Mission is to become a
company which has
Mission of trust is to
build strong
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fundamental qualities
such they want to
improve their way of
doing work such as in
integrity, honest
dealing, treating
everyone with honesty
etc.
the highest quality of
financial service and
to become leading
company which is
providing the best
cellular networks so
that customer trust
company more.
relationship with
society so that they
will able improve
human as well as
animals by doing
continuous research.
objective Their business
objective is to fit for
the future by
developing some new
technologies which is
producing more
energy and to become
competitive in market.
Their main aim is to
become global
organisation which
satisfy all the
stakeholders as well to
customers as well.
Current objective of
this trust is to invest
£5 billion in next five
years to improve
health of human and
animals by doing
biochemical research.
Legal structure British petroleum is
maintaining legal
structure of public
companies that is run
by board of directors,
which appointed in
annual general
meeting by
shareholders.
Legal structure of
Vodafone includes
board's members
which conducts overall
business where they
have shareholder run
by board of director
and headed by
chairman.
There is no particular
legal structure for
voluntary organisation
any who wants to join
to provide benefit to
society can enter in
this business.
Products and services British petroleum
engaged in doing
business of refining,
marketing,
manufacturing,
Vodafone is the
leading company
providing the best
telecommunication
services to the
Main services of
Wellcome trust is to
do research on
biochemical products
which provide
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transportation, trading
and supply of crude
oils, petrochemicals
and food products.
customer's including
voice, messaging, data
and fixed line solution.
nutritions to society.
size It has 7.5 billion
barrels and its material
resource base on 5.7
million acres. It has 48
onshore units.
It provides its services
in more than 30
different countries. Its
annual revenue is
about 47.6 billion
euros.
It has the largest
portfolio investment
and it is world largest
foundation.
stakeholders It has stakeholders like
creditors, employees,
public, government,
suppliers, and unions.
A private company has
maximum 200
shareholders but
employees do not
count in this
stakeholder.
Stakeholders in this
organisation are
patients because they
are utilising trust's
services.
Organisational objective and structure of Vodafone company with their interrelation.
To achieve task of companies with proper coordination and supervision organisational
structure shows how activities are allocated between employees of the industry. This
organisational structure develop for future growth of entity. Many structured theories are
provided by the professionals which organisation can develop in their working criteria so smooth
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Illustration 1: matrix organisational structure
source: (matrix organisational structure- a quick guide,2018)

functioning of working runs in an entity. Vodafone uses matrix structure and task culture. Details
of organisational structure are as follows.
Matrix organisation shows combination of two or more organisational structure. Two bosses and
managers are their in these types of structure. Concept of two bosses and managers shows that
one is for handling functional activities and other one is for traditional project manager.(Botha,
Kourie and Snyman,2014. ) To meet strength and weakness this structure helps to employ best
structured manager.
Matrix organisational structure adopted in firm which has large-scale project. To process
great amount of data in efficient manner Vodafone company has adopted these structure so that
fast track technology has been applied in the firm. Its main function is that it allow sharing
between functional unit and projects in highly skilled resources. Another important function of
these structure is that it allow proper communication between organisation which helps to
develop efficient team working under the organisation.
This structure is also helpful for employees who wants to increase their learning skills
and wants to widen their growth in company. This structure provides them opportunities to grow
in highly skilled business environment. With highly professional skilled members this structure
provides flexibility in solving issues in organisation and to welcome new sources in organisation.
This structure also provide opportunities to employees to expand their growth in business
organisation which makes them to remain loyal towards company where job security is fully
provided. When company provides full security employees of organisation work even more hard
for fulfilment of organisational objectives. Since experts are involved in handling company's
project they do it with full efficient manner so that organisational objective achieved with proper
coordination in across all departmental functions. Vodafone company applied this structure so
that they can achieve objectives in timely with proper coordination among employees.
Environmental factors that impact on business operations.
External environment have indirect impact on business function. Vodafone company also
do analysis of external factors to know about factors that may indirectly create variation in result
and outcomes. And this analysis can be done with the help of Pestle analysis.
Political factors.
In Vodafone company political factor have more influence to develop structure of
companies in particular state. Company face political factor in each state for the operation of
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their business for which they have faced many problems in creating their task in area which has
higher political influence. If we take example of recent conflict in Europe, this conflict affected
company a lot.
Economic factor.
Vodafone company ha to face this factor as their mission is to expand their business
across nations for that they need new units with newly developed zones. If peoples of country
has more income than it increases overall GDP of the country where company can measure that
people can adopt their innovation of technology in the market.(Kew. and Stredwick, 2017.) This
impact helps company to increase their overall profits which expand their business globally.
Social factor.
This factor of company depends on peoples culture in which company's operation is
done. Vodafone company has purely changed their operation and started working accordingly so
that this factor of company cannot affected. Company has to maintain policies which has
flexibility in earning local culture in the organisation.
Technological factor.
Vodafone companies across the world always been famous for its innovation. Its mission
is to follow current trends which are running in the market to satisfy customer needs. Company
always makes policies by keeping in mind that their products are mostly technological related so
accessing of policies must be capable to capture market. In coming time, Vodafone is also going
to introduce 5G in its data plan which also a technological factor of the company.
Legal factor.
We can say that it is an internet world where people across all over the world using
internet and telecommunication companies are finding ways to improve their networks likewise
Vodafone to have many competitors in market. Sometimes Vodafone accused for not paying
much to their employees of the company by this impact their goodwill reduced in the market.
Therefore, company must have to follow legal structure which make them to built strong
goodwill in the market.
Environmental factor.
This is the era where every company has to maintain environmental factors because
nowadays peoples are becoming more ethical and they expect from company to be always
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socially responsible in market. Their working policies are to be so effective which helps them to
attract individuals who wants to work in their organisation.
These are the factors which Vodafone company has to consider for the success of
company. Internal as well as external both factors plays an important role to achieve the success
of the company.
Porter's five forces analysis of Vodafone company.
Porter's five forces analyses the external factor that affect an organisation. Business takes
decision and change tactics and planning after research has done on these factors. (Dobbs, 2014)
Here is chart which shows elements which is used to analyse porter's fiver forces model.
Bargaining power of supplier.
All wireless companies need higher level raw material in their companies from suppliers.
This effect makes suppliers dominant position and company has to bear the cost which supplier
charge. Vodafone group also same has to face bargaining power of supplier which impact is that
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Illustration 2: porter's five models
source: (porter's five forces model of BSNL,2017)

company's overall profitability will reduce. Powerful suppliers use their power and charge higher
amount of cost from company.
Bargaining power of buyer.
Buyers as all know demand more in less budget. They want to buy product is low cost of
product. This situation puts pressure on Vodafone company to achieve higher level of
profitability in their overall business. Therefore, Vodafone company is offering higher level
discounts and offers to their customer to achieve their loyalty towards industry.
Threat of new entrants.
Currently Vodafone company is facing high level of competition in the market, new
companies has entered in market with lots of discount and offers and by that customer are
attracting more in other companies. Therefore, Vodafone company has to manage strategies
which attract more customer and which helps them to compete with other firms in the market.
They will able to done this by innovating new ideas which improves their economy in the
market.
Threats of substitute products or services.
Industries profitability suffers when new substitutes are available to customer in choosing
products and services of the companies. Therefore, Vodafone company is trying to being service
oriented rather than to become product oriented. They also have to search what customer needs
from telecommunication companies rather than what they are buying in market.
These are the internal and external factors of the Vodafone company which are
influencing their decision making process in the company.(Calabrese, and et.al ., 2018)
Relationship between strength, weakness and macro factors.
Here is the description of relationship between strength and weakness on macro factors
which includes political factor, economic factor, technological factor, legal factor, social factor
and environmental factor. Strength includes factor that are massive market coverage, revenues
generated, premium cost and weakness includes factors like dropping brand evaluation, losing
market share.
Strength relationship on Macro factors.
 Massive market coverage.
This affects both political and economic factors in industry. Political factor affects like if
companies are doing massive coverage it means they are investing in different countries to
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expand their business for which company has to face governmental regulations like tariffs, trade
control etc. Economic factor also affect when country is facing inflation then investments in that
country affect company's profitability.
 Revenue generated.
Political factor affected with revenue generation, when company's earn higher profitability
government will influence in company and will charge some amount of tax from the company.
Technological factor also affected with this revenue generation, companies needs large
technology to produce product which earn them higher revenue therefore company have to invest
in this factor. Revenue generating also will affect environmental factor if company's has higher
revenue then they will have to invest money on improving environmental factors of country.
 Premium cost.
Premium cost will affect technological factor in company when company doing huge amount of
investment in needs cost to invest which reduces companies profitability. Like wise legal factor
also affected when company has to bear cost to develop laws and regulation with proper care in
organisation. Premium cost also affect environmental factor if company earning higher amount
of cost then they have to invest it on environment so that government will not influence in
company.
Weakness relationship on macro factors.
 Losing market share.
Economic factor affected with this weakness for the business development market share has to
be strong as these helps in providing business growth. Technological factor also affected when
market share reduce it reduces overall profitability of the firm so that company can not invest
more improving technology of company.
 Dropping brand evaluation.
This factor will affect economic factor when image of brand reduces it will reduce its goodwill
among customer from which company can bear lose in earning revenues. These factor also affect
legal factor of the company when product safety of brand reduces which affect company to face
lose from their product.(Ifinedo, Pyke, and Anwar,2018.) This factor impacts political factor also
when company reduce its image government will inter fear and wants from company to make
strategies accordingly.
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These are the factors which affecting Vodafone company's macro factors. Company
currently bearing these factors and making solutions to improve their overall weakness and
improve more the strengths of company.
Conclusion.
From the above study it can be concluded that business environment plays an important
role on company's to achieve their growth in future perspective. In this report purpose of various
kinds of organisation is discussed with full explanation of public, private and voluntary
organisation. Three organisations are selected to discuss public, private and voluntary
organisation. After that organisation objective and structure of Vodafone company is discussed.
Environmental factors that impact on business operation is also studied in this report. After that
further analysis done by doing porter's five models and by doing SWOT analysis impact on
macro factors of the company.
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References.
BOOKS AND JOURNALS.
Botha, A., Kourie, D. and Snyman, R., 2014. Coping with continuous change in the business
environment: Knowledge management and knowledge management technology. Elsevier.
Bryson, J.M., 2018. Strategic planning for public and nonprofit organizations: A guide to
strengthening and sustaining organizational achievement. John Wiley & Sons.
Calabrese, and et.al ., 2018. From mechanical to cognitive view: The changes of decision
making in business environment. In Social Dynamics in a Systems Perspective (pp. 223-
240). Springer, Cham.
Ceptureanu and et.al .,2018. Sustainability perceptions in Romanian non-profit organizations: an
exploratory study using success factor analysis. Sustainability. 10(2). p.294.
Coppin, A., 2017. Organisation Structure and Design. In The Human Capital Imperative (pp. 45-
49). Palgrave Macmillan, Cham.
E. Dobbs, M., 2014. Guidelines for applying Porter's five forces framework: a set of industry
analysis templates. Competitiveness Review. 24(1). pp.32-45.
Ifinedo, P., Pyke, J. and Anwar, A., 2018. Business undergraduates’ perceived use outcomes of
Moodle in a blended learning environment: The roles of usability factors and external
support. Telematics and Informatics.35(1). pp.93-102.
Kew, J. and Stredwick, J., 2017. Business environment: managing in a strategic context. Kogan
Page Publishers.
ONLINE.
Adamkashi. 2017. porter's five forces model of BSNL. [ONLINE]. Available through
<https://www.porteranalysis.com/porters-five-forces-model-of-bsnl/>
Matrix Organizational Structure – A Quick Guide. 2018. [ONLINE]. Available through
<https://www.projectmanager.com/blog/matrix-organizational-structure-quick-guide>
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