Strategic Management in an International Context

This report focuses on strategic management in an international context, specifically looking at the distinction between open and closed innovation. It also discusses the merits and demerits of meeting the demand for internationalization and localization. Additionally, it explores the importance of corporate profitability and corporate social responsibility for the survival and growth of multinational corporations. The case study used in this report is Vodafone, a multinational corporation in the telecommunications industry.

Strategic Management
in an International
Context

Contents
INTRODUCTION...........................................................................................................................1
QUESTION 1..................................................................................................................................1
QUESTION 2..................................................................................................................................3
The merits and demerits of meeting the ‘demand for internationalisation’ and the ‘demand for
localisation’..................................................................................................................................3
QUESTION 3..................................................................................................................................6
Corporate profitability and corporate social responsibility objectives crucial for the MNC’s
survival and growth.....................................................................................................................6
QUESTION 4..................................................................................................................................7
Reflections on crisis management, suggesting how to plan prior to a rapid unexpected event...7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Strategic management can be defined as that use of business resources which can be
used for achieving the goals and objectives of business. It includes external factors that can
lay impact on the performance level of company. In this managers are been engaged in
making sure that the objectives of employees are linked with that of company. This strategy
will help organisation in enhancing their productivity as well as profitability. Present report
will lay emphasis on Vodafone which is a multinational corporation headquartered in
London. The company is a part of telecommunication industry. Present report will lay
emphasis on the distinguish between ‘Open’ and ‘Closed’ Innovation. It will also focus on
assess the merits and demerits of meeting the ‘demand for internationalisation’. Study will
also highlight about the understanding of ‘organisational purpose’, ‘corporate profitability’
and ‘corporate social responsibility’.
QUESTION 1
Differentiate between the Open and close innovation
Open innovation Close innovation
 Open innovative enterprises that
expand the innovation process beyond
wall of business. In order to increase
overall business capabilities in global
world.
 Close innovation enterprises that
operates under the view of innovation,
which are created by staff member in
organization (Hanafi and et.al., 2019).
 Open innovation has gradually
important than close innovation.
 Close innovation has gradually
important than open innovation.
 Open innovation come under the
combination of both external as well
as internal ideas, sales channels with
aim to produce the best quality of
product as well as services (Hanafi
and et.al., 2019).
 By using close innovation, Vodafone
can control all technology, intellectual
property and processes under close
company control. In order to
implement the successful close
innovation in organization.
Table: 1
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By using Annual report of Vodafone, critically evaluate the impact of factor endowment related
demand condition, strategy, structure and rivalry.
According to annual report of Vodafone, it has identified the further progress of
company, ambition to be converged into better communications leader in all European markets.
It is to be considered as great mobile data leader in different countries such as India, Africa. The
current strategically strong position, which will enhance the capability, ability to achieve
desirable result or outcome (Sibindi, 2019). In 2018, Vodafone was the announcement of acquire
the Liberty global cable assets in the other countries.
A factor endowment represent that how resources a country, has at its disposal to be utilized for
business growth and development. It is mainly include different resources such as money, land
and workforce.
In UK, it has largest or diverse factor endowments which are typically wealthier,
able to implement innovation into mobile data communication services. Sometimes, it also
affecting on the opportunities cost/ price of specializing within production at certain level
(Tyagi, 2019). Moreover, Factor endowments are impacting on the demand condition,
strategy, structure and rivalry of Vodafone Company.
Demand condition
A factor endowment can impact on the demand condition of Vodafone while rapidly
increasing the growth opportunities in Europe. Over the last 4-5 years, it has increased the
mobile data traffic per users by 60% annual basis (Hanafi and et.al., 2019). The challenging
aspect of Vodafone is that when implement innovation such as evolution of 5G technology.
It enabling wide range of new revenue opportunities over medium term such as quality of
service, internet of things. This will help for Vodafone to maintain the position in
competitive environment.
However, it also increased demand of high speed broad band service over fire or
cable continue to grow in global world. Evolution to 5G beyond close innovation which
mainly exists under open innovative idea.
Strategy -
As impact of endowment on the Vodafone which has continuously changing their
strategy level. It may consider the strong deepening customer engagement strategy which help
for improving the quality and experience of service among existing consumer in UK (Xiao, Wu
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and Hu, 2019). Afterwards, Vodafone can easily completed number of network sharing
arrangement, improved return on capital and leverage through quality of successful
infrastructure.
Structure
Vodafone is at key point of transformation, which mainly depending the effective
strategy and accelerating the digital transformation. Sometimes, it has rapidly simplifying the
different business operations and generating better return from the infrastructure assets. In this
way, it can easily achieve desirable goal and objective of enterprise. A Factor endowments that
will impact on the Vodafone for changing the overall structure. In order to divide into the
specific tasks, which mainly assigned to other staff members (Mian, 2020). So as they can easily
improve quality of service while increasing the cash handling processes. Vodafone idea is
continue to invest and participate fully in potential MNC recovery.
Rivalry
According to report, it has determined that CEO of Vodafone company which implement
the safe pair of hand conceptual framework in the business processes. Afterwards, it deals with
other competitors who will establish position in market because of innovation (Hanafi and et.al.,
2019). Another way, Vodafone can tackle intense rivalry among existing competitors. It has
developed the sustainable differentiation which help for increasing market size rather than
competing for small market.
‘Government’, and ‘chance on Vodafone approach
The government may offer relief idea of Vodafone which support for increasing the
demand of data communication service in global marketplace. According to report, it has
concluded that operator get more relief from the other term and condition. It is likely to come out
with the different payment installment scheme for organization (Hanafi and et.al., 2019). It
became great opportunities and chance on Vodafone to use government scheme, implementing
innovation in business services.
QUESTION 2
The merits and demerits of meeting the ‘demand for internationalisation’ and the ‘demand for
localisation’
Internationalization basically means that the company is been engaged in selling out
their products and services in global market. This is done in order to increase profitability as
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well as revenue. On the other hand localisation means that the firm is been involved in
selling the services at local level and within the limits of their country. There are various
merits and demerits involved in meeting out the demands of the internationalisation and
localisation. It includes the following:
Merits and demerits of meeting the ‘demand for internationalization’
Merits:
Increased revenue: Vodafone when engaged in fulfilling the demand of
internationalisation can increase their profits as this will assist them in increasing their profit
as well as revenue. It will also help firm in enhancing their consumer base as the demands
are been met. It is one of the major advantages of meeting the demand of
internationalisation. The firm can also be engaged in expanding their business when they
have been exploring the increased revenue and profits.
Better risk management: When the demands of internationalisation are met up by
Vodafone then they can also be engaged in increasing their risk management capabilities
which is really necessary for their growth. Company will be able to retain consumers as
there demand is been met and also they will be able to create the consumer loyalty. In this
Vodafone can also engaged in knowing about the factors that can affect them
internationally.
Increased brand reputation: Global trading can also assist Vodafone in enhancing
their brand reputation and equity. Fulfilling the needs and demands of consumers
internationally can help the telecommunication brand in enhancing their brand value and
public image. More consumers will be attracted to them because of trading internationally. It
has also been analysed that meeting out the demands of internationalisation will help the
firm in increasing their brand internationally. They will also be able to strengthen their
business network because of it which is really necessary for the growth of firm. It will also
help in achieving objectives.
De-merits:
Increase in expectations: When the demands of consumers are been met
internationally, there expectations with the company will be increased. Vodafone then needs
to be engaged in working towards doing more market research and bringing out the new and
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innovative products and services. This can increase their operational expenses as well as
cost. It can act as major dis-advantage of meeting the demands internationally.
Analysing competition: When the demands of consumers are met globally, the
competitions increases as more firms are engaged in bringing out the better products and
services. Vodafone in order to overcome from this needs to be engaged in doing better
research and trend which has been followed by the competitions.
Merits and demerits of meeting the ‘demand for localization’
Merits:
Creating local consumer base: There are various advantages when Vodafone is
been engaged in meeting out the demand of local customers. They will be able to create
belongingness of the products and services provided by them locally. This in turn will help
them in meeting out their objectives and also there profitability will be increased because of
it. It is really necessary to meet out the demand of local products.
Going global: When the demand of local people are been met, the company can also
opt for going internationally (Wheelen and et.al., 2017). This can also assist them in
expanding their business and making a better place of firm in the market.
Improvement of labour market: Meeting the demands of local consumers will also
assist in enhancing the labour market. So many local employees will be able to get better job
opportunities when Vodafone is been involved in meeting out the demands and needs
locally. This can also assist the firm in growing and they will be able to achieve their set
target.
De-merits:
Change in preference of consumers: There are chances when the Vodafone is been
involved in meeting the demand of locals, there preferences may change because of
modernisation or globalisation. For this firm needs to be engaged in analysing the wants of
consumers, so that they can grow and also achieve the goals and objectives. This can also
assist the firm in increasing consumer base and growing. For this the company needs to have
adequate idea about the wants of locals. This can help them in bringing new products and
services according to their demands. It is really necessary for the growth of firm to analyse it
as this will help them in growing.
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Vodafone must be engaged in meeting out the demand of internationalisation in order to
in order to maximise its corporate profitability through low‐cost leadership or product
differentiation or focus (Rothaermel, 2016). This will help the company to access the
broader market and also it will help in Diminishes costs by virtue of enhancing productive
efficiency. It will also support the firm in increasing their productivity as well profitability.
The managerial efficiency of company will also increase because of this, so firm must go for
it. Their competitiveness will be increased while meeting the demand of internationalisation.
QUESTION 3
Corporate profitability and corporate social responsibility objectives crucial for the MNC’s
survival and growth
Vodafone is been involved in working on the values which depicts corporate social
responsibility. This has assisted the firm in increasing their brand reputation and equity. The
leaders of multinational company are capable enough to achieve the objective of CSR so
that corporate profitability can be sustained (Ansoff and et.al., 2018). This has assisted the
firm in growing and also because of it they have been able to achieve their set target as well
as mission. The health and safety of the customers and the wider public is a priority for
Vodafone. Their main aim is to connect better and also improving the future of society in
meeting their demands digitally. They have also been involved in putting their share of
profit in the charitable activities which has supported the firm in growing and it has also
assisted in increasing their consumer base. Vodafone is also committed to operating
responsibly and with integrity. There are various approaches which has been used by the
firm so that they can maintain the integrity. It has also been analysed that performing all
these duties has helped Vodafone in growing and also they have been able to increase their
consumer base.
The leaders are also been engaged in making use of transparency and integrity when
they are performing the corporate social responsibility so that a better bond and trusting
relationship can be made with the consumers which is really necessary for the growth of
firm. Leaders of Vodafone are also been involved in making sure that people who are
working with them are kept safe and their well-being are their top most priority. This has
supported them in growing and also they have been able to increase their managerial
efficiency and productivity. These approaches have also supported company in sustaining
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their corporate profitability and they have also been able to increase their revenue because of
this. It has been analysed that targeted commercial propositions, Vodafone is helping
women in emerging markets and overcoming the issues which has been faced by them. This
has assisted them in developing women leadership in corporate world. The company is also
been engaged in providing assistance to local employees who are in need of jobs. This has
assisted them in enhancing the local market conditions in the state which they are working.
Performing these responsibilities is really necessary for the growth of firm. Vodafone is also
working towards the energy innovation. In this the company is making sure to reduce down
the carbon emission which has been produced by them. It has also been analysed that
performing all these duties has helped Vodafone in growing and also they have been able to
increase their consumer base (Ginter, Duncan and Swayne, 2018). It has also been analysed
that the leaders of company has also been involved in making use of various approaches like
situational leadership has been implemented by them where leaders has acted according to
the circumstances. It has assisted the firm in growing and also it has helped them in
achieving their objective. They have also been involved in behaving ethically by creating
transparency among stakeholders related to all major decisions which has been taken by
them. This has supported them in growing and also this has assisted them in increasing their
brand reputation as well as value. It has supported the firm in growing and making a better
consumer base which is really necessary for their growth.. It has also been analysed that
corporate social responsibility is been performed by the firm so that they can sustain
corporate profits. They have also been engaged in empowering women and trying to change
their lives digitally. These initiatives by Vodafone have assisted them in increasing their
good will. They have been able to create consumer base with the help of this, it has also
been analysed that Vodafone is been involved in implementing the green movement where
they are motivating their consumers to make use of renewable resources so that carbon
emission can be lowered down. This has assisted the firm in creating a different image in the
mind of consumers (Hitt and Duane Ireland, 2017). They have also been able to grow and
increased their profitability because of it. It has also been analysed that company is taking
initiative to reduce down the carbon emission, leaders are been working on it.
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QUESTION 4
Reflections on crisis management, suggesting how to plan prior to a rapid unexpected event
I have analysed that Vodafone needs to be engaged in doing strategic planning so that
they can save themselves from the unexpected crisis such as COVID-19. There are various
benefits and limitations of crisis management that can assist them during the time of
unexpected circumstances. It can also help them in achieving their corporate profitability
and creating a culture where the profits can be sustained easily (Schilling and Shankar,
2019). The benefits and limitations includes the following:
Benefits of crisis management: It can assist Vodafone in saving themselves from
the potential threats. It is necessary for the firm so that they will be able to gain and sustain
profit. It will also assist the firm in planning for the safety of their employees as well as
well-being. It is really necessary during the time of crisis. They can also engaged in thinking
about the alternatives like providing facilities such as work from home during pandemic
situation. This will help them in saving jobs of employees who are working with them. It is
really necessary for the growth of firm. In this Vodafone also needs to be engaged in doing
effective communication when they are transferring the information.
Limitations of crisis management: There are also various limitation of the crisis
management. There are chances that during management of crisis, Vodafone is unable to
designate the team or responsibilities of employees. This can reduce down the efficiency and
also the operational cost of company can be increased. There are also chances that firm do
not have adequate resources which can be used to manage the crisis. So, they need to be
engaged in doing planning related to it so that company can grow
CONCLUSION
From the above study it has been summarised that there has been various merits and
demerits of internationalisation as well as localisation. Vodafone has also been involved in
meeting the demand of locals, there preferences may change because of modernisation or
globalisation. They have been engaged in making use of meeting the demands of
internationalisation. This has assisted them in growing and also it has helped them in
achieving their set target as well as mission. It has also been analysed that the Vodafone is
been involved in doing crisis management. This has supported themselves from overcoming
the unexpected crisis. There have been various advantages when Vodafone is been engaged
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in meeting out the demand of local customers. They will be able to create belongingness of
the products and services provided by them locally. It has also been evaluated from the
report that company has also been involved in doing the corporate social responsibility, this
has assisted them in increasing their brand reputation as well as value. It has supported the
firm in growing and making a better consumer base which is really necessary for their
growth. It has also been analysed that they have been also engaged in sustaining profit.
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REFERENCES
Books and Journals
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management research. The Blackwell handbook of entrepreneurship, pp.45-63.
Lasserre, P., 2017. Global strategic management. Macmillan International Higher Education.
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EXPORT-LED ECONOMIC GROWTH IN BANGLADESH: ISSUES AND
CHALLENGES (Doctoral dissertation, University of Saskatchewan).
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Schilling, M.A. and Shankar, R., 2019. Strategic management of technological innovation.
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Sibindi, M., 2019. Internationalisation theories and outward Foreign Direct Investment: the
case of South African multinational firms (Doctoral dissertation).
Tyagi, K., 2019. Promoting Competition in Innovation Through Merger Control in the ICT
Sector. Springer Berlin Heidelberg.
Wheelen, T.L. and et.al., 2017. Strategic management and business policy (p. 55). Boston, MA:
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Xiao, J., Wu, Y. and Hu, Q., 2019. Managing the e-commerce disruption with IT-based
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