PESTLE Analysis of Vodafone - Assignment

BUSINESS STRATEGY
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Table of Contents
Introduction......................................................................................................................................3
Task 1: The external environment...................................................................................................4
i. PESTLE analysis......................................................................................................................4
ii. Ansoff’s Growth vector matrix to analyse the strategic position of Vodafone.......................6
Task 2: The internal environment and organizational capabilities................................................10
i. Meaning of strategic capabilities............................................................................................10
ii. Determining the capabilities through VRIO/VRIN...............................................................10
iii. Strengths and weaknesses of the organization.....................................................................12
Task 3: Analysing the telecommunication sector..........................................................................14
Task 4: Understanding and interpreting strategic direction...........................................................16
Bowman’s Strategy clock model for analyzing the direction and options available.....................16
Conclusion.....................................................................................................................................18
References......................................................................................................................................19
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Introduction
The assignment includes the analysis of the of the different types of tools that are used for the
analysis of the different macro environmental factors, internal factors and others that is evident
to determine the business strategies which are developed by the marketing and the other
departments of the organisation. The competitive market of mobile telecommunication of UK
has been chosen in relation to the analysis of the significance of business strategy that again
influences the success story of any organisation. The organisation that is chosen for this purpose
includes the Vodafone telecommunication organisation based in UK.
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Task 1: The external environment
i. PESTLE analysis
The Pestle analysis is an analytical framework that help in the identification of the identification
of the external macro factors which are impacts the growth and sustainability of any
organisation. It is very important to keep the business strategy well aligned with that of the
external factors in order to achieve the most potentiality through the implication of the business
strategy that is evident to provide success to the organisation.
Political: The political factors includes the political suitability and suitability of the business to
the mobile telecommunication industry. This is because the re persist no as such big and
affecting issues regarding the ruling party or any other type that will impact the business of
Vodafone (Le, 2017). The phenomenon of Brexit took place that lead to the changes in the
governmental legislation which is has brought some changes in terms of legal and economic
condition but no issues as such affecting to Vodafone is found. However, it is important to
consider that the organisational policies and regulations must be well aligned with that of the
several trade regulations in UK.
Economical: This is one of the most important factor that determines execution o the operations
of any organisation as well as provides the necessary support which is crucial for the growth of
the organisation. The economic condition is well supportive of the mobile telecommunication
industry in UK which is why a considerable growth has been found in this industry. However,
there are other factors that have changed which impacts the sustainability of the organisation.
These include the changes in the foreign exchange rate, the changes in rate of inflation after
Brexit. Moreover, after the Brexit, there have changes in the regulations of trade as well which
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