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Porter's Five Force Model of Vodafone

   

Added on  2021-02-18

20 Pages6810 Words28 Views
Business Strategy

Table of ContentsINTRODUCTION...........................................................................................................................3TASK 1 ...........................................................................................................................................3P1 Impact and influence of the macro environment on organisation and its business strategies......................................................................................................................................................3TASK 2 ...........................................................................................................................................7P2 Organisation’s internal environment and its capabilities.......................................................7TASK 3 .........................................................................................................................................10P3 Porter's five force model of Vodafone ................................................................................10TASK 4 .........................................................................................................................................13P4 Theories, Concepts and models to understand strategic direction of company and developstrategic management plan ..............................................................................................13CONCLUSION ...........................................................................................................................17REFERENCES..............................................................................................................................19.......................................................................................................................................................20

INTRODUCTIONThe term business strategy refer to the course of action which help the entrepreneur toachieve the specific objective of the company. Strategy work as a master plan for a business bywhich company retain its competitive position in the market. With the effective business strategycompany can easily operate their business activities (Asef and et. al., 2017). So the companywill serve their customer and achieve the desired result for end performance activities. Thebusiness strategy help a company to make a long term plan for their business activities. With thestrategy company create a path and goal for the organisation that is achieve by the company in itsfuture years. Organisation chosen for this report is Vodafone which is a giant company operatingits business activities in the telecommunication sector. Vodafone is the first company that makecommunication possible between different people on a global scale through the phone and wires.Vodafone developed the structure that allow individual to send and receive data or wordsthrough different mediums like audio, video etc. Vodafone is a British company that is situatedin London and operating its telecommunication business in Asia, Africa and Europe. Thestructure of Vodafone network is situated in more than 25 countries. Telecommunication sectorhas divided its business into three different sectors which are as follow. Telecom equipment,telecom services and wireless communication. In present scenario wireless sector ofcommunication is the smallest and fastest growing sector all over the globe. Vodafone rank inone of the top five companies of telecommunication sector in all over the world. TASK 1 P1 Impact and influence of the macro environment on organisation and its business strategies.The business is surrounded by two different types of environment. First is internal andsecond is external. This environment impact on the different business activities of the business.So the business develop different strategy by which they reduce the risk that generate fromsurrounded business environment. Factors that came under external business are beyond thecontrol of the company (Bang, Joshi and Singh, 2016). So to reduce the risk companies do pestleanalysis which help company to predict the risk that come in future. External environment isconsist of two types that are micro and macro. However company deal with micro environmentbut to control macro environment is totally beyond the control of management of company.

The macro environment generate the condition that exist in the company as a whole. Inthe macro environment business is totally depend on the influence of external factors such asGDP, employment, and inflation etc. So Pestle and Swot are two model that help company tofind out the upcoming risk in future. Macro environment Factors that impact on the business areas follow:Demographic factor- In this age, education, region etc. are commonly shared by agroup of people. Vodafone network is used by from all ages of person. Thisdemographic factors are common between different peoples. Economic factor- The economic condition of a country impact on consumer andmanufacture both. As if inflation is there in a country then consumer have morepurchasing power. So consumer expense it income easily (Brakman and et. al., 2013). Natural resources- Companies that use natural resources for manufacturing theirproducts have to face critical situation at the time of redemption of their raw materialor natural resource like wood, iron etc.Technological factor- The machine and material that use by the company are theresult that help a company to smooth its operation for manufacturing product orservice. Vodafone strong network satisfy more its customer as compare to othercompanies.Political and legal force- As Vodafone operate its business activities in differentcountries. So it is necessary for a company to maintain healthy relation withgovernment to operate their business smoothly. Social and Culture factor- Company decide their product and launch them in asociety. So it is essential for a business that their product did not affect on value andculture of individuals because it reduce the sale of their product in the market. Pestle analysis of an organisation: Pestle analysis cover different factors that help a business to overcome from differentexternal factors of the environment. The pestle for Vodafone is as follow:Political factor- Government rule and regulation play a significant role in determiningthe business. As Vodafone is operating it business in different countries. So Vodafone maintainhealthy relation with government (Casado Izcue, 2014). Positive and negative impact of politicalfactor on a company is as follow:

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