PESTLE Analysis of Vodafone Plc

PESTLE Analysis Of
Vodafone Plc

Table of Contents
INTRODUCTION...........................................................................................................................3
Task 1...............................................................................................................................................3
Organizational Governance of Vodafone....................................................................................3
Organizational Structure..............................................................................................................4
Task 2...............................................................................................................................................7
Significance of Pestle analysis for Vodafone company ..............................................................7
Task 3...............................................................................................................................................8
PESTLE Analysis of Vodafone...................................................................................................8
CONCLUSION..............................................................................................................................12
REFERENCES................................................................................................................................1

INTRODUCTION
PESTLE analysis is a framework and tool used for identification and evaluation of the
macro environmental factors that impact an organization's performance. The acronym stands for
external factors of Political, social, technological, economic, legal and environmental nature. The
report will highlight the PESTLE analysis for the company Vodafone plc which is a UK based
multinational company of telecommunications headquartered in London. It majorly operates in
the regions of Europe, Africa, Asia and Oceania and is leading global mobile company. The
report will also describe the governance, structure and management of Vodafone the key external
environmental constraints in the company.
Task 1
Organizational Governance of Vodafone
Organizational Governance, according to the international standard on social
responsibility, ISO 26000, is “a system through which a company makes and implements
decisions for pursuing its objectives.” (Crowther and Seifi, 2017)
Vodafone encompasses UK Governance Code and applies its principles and complies with all
the codes. The Board of Vodafone ensures high standards of corporate governance, which is
considered critical for maintaining the trust of investors in the company and ensure its business
integrity. The company expects all its employees and senior managers and directors to act with
fairness, integrity and equity. The company strives to act in accordance with the laws and
customs of UK; adopt appropriate standards in business practices and procedures and observe
and respect the culture of countries where it operates.
The code of conduct of Vodafone
The company establishes importance of trust in its operations. The code of conduct sets out their
expectations from every employee, partner and shareholders. The company acts with integrity,
honesty and fairness both internally and externally and abides by laws.
The values, purpose and culture
Vodafone believes in connecting for a better future. The board recognizes the importance
of a healthy corporate culture. It believes in enabling a digital society to include facilities for all

and at the same time protect the planet. Its culture is determined by its digital way of unique
operations and adherence to ethics.
The leaders play a crucial role in establishing the tone of the company by leading campaigns and
employee engagements around the year. (Kraus and Strömsten,2016)
There is conduction of programmes and activities in the company premises with proper practices
of employee engagement, health, well- being, safety and diversity. A regular assessment is done
via compliance reviews and behaviour addressal. The board also conducts diversity and
succession planning.
Responsibility of the board
The board is responsible to ensure effective leadership and oversight and review of its layed
down strategies with an aim to deliver sustainable stakeholder value for long term. It also
ensures the implementation of proper risk assessment by systems and processes which help in
identification, management and overview of the principle risks of Vodafone. The board also
deals in matters regarding finance, audit, reputation, corporate governance, succession and
diversity plans, audit and overall control through its principle committees. (Hamilton and
Webster, 2018)
Vodafone has ensured the application of all provisions of the 2016 Corporate governance code of
UK by adhering to:
 Accountability
 Relations with shareholders
 Leadership
 Effectiveness
Organizational Structure
An organization structure refers to the attitudes, policies, strategies, moral values and
basic framework which creates the organizational or work culture.
(Gaganis, Pasiouras and Voulgari, 2019) In general, the different types of organizational
structures are:
1. Functional: This is one of the most popular structure where there is departmentalization
of the organization based on common job functions. Such structure will have divisions