BUSINESS MANAGEMENT INTRODUCTION 3 TASK 13 Primary external influences 3 TASK 27 1) Relevance to the Vodafone 8 2) Relevance to the Vodafone 8 3) Area of improvement 10

CONTEMPORARY ISSUES IN
BUSINESS MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Primary external influences.........................................................................................................3
TASK 2............................................................................................................................................7
1) Relevance to the Vodafone......................................................................................................8
2) Evaluation the effectiveness of the organization’s response.................................................10
3) Area of improvement ............................................................................................................11
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................15
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INTRODUCTION
Telecommunication industry is considered highly dynamic industry. UK
telecommunication industry is rapidly growing and use of internet has open many new business
opportunities. Vodafone is UK based telecommunication company which is offering different
type of service to their customers. It is the largest telecommunication company in UK which are
offering its services to worldwide (Athaide, and Klink, 2012.). It offering its services more than
26 countries. The present report make analyze on primary external factors of company. External
factors are those factors which are uncontrollable in nature and have direct impact on business
activities. For making analyze on this factors PESTLE and porter's five model has been used. In
addition, this report make analyze on knowledge management and its relevance to organization.
TASK 1
Primary external influences
Vodafone is considered as the world's best telecommunication company. It is UK based
company and conduct its business operation in Europe, India and many other regions and also
has partnership with more than 50 additional countries. It has the greatest market value of around
one hundred billion pounds. The entity is also offering many other services such as provides
telecommunication and IT services to their customers over the 150 countries (Björklund, 2011).
Vodafone is offering several types of product such as fixed line, mobile telephony, internet
services and digital television. Along with the is they are also offering many other services such
as money transfer through mobile and mhealth service to their customers. There are certain
external factors need to be considered to evaluation of the success of company.
Political factors
The political factors have huge impact on entity's growth. Political polices and their
stability many create barriers for organization (Athaide, and Klink, 2012.). Vodafone is UK
based the largest telecommunication company which is conducting its business operation in more
than 150 countries. UK government's polices and their relations with other countries helps to
entity for expand its business activities. UK government has stable;e relations with other
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countries which helps to Vodafone for running their business easily. However, the recent
political instability such as Brexit has negative influences of telecommunication industry
(Cannon and Yaprak, 2014). The firm is second largest telecommunication services provider in
European countries after, Brexit they have to face many problems such as they need to change
their tariff plans and along with this they it will treat as the foreign countries in the Europe. This
recent conflicts with EU leads to company to change their polices and along with they also have
to pay taxes in orders conducting business operation in Europe.
Economic factors
This is one the very important dimension for the company like Vodafone. It means as
increasing development of country as the higher chances of their business is increases and it has
open many new business opportunities for the industry. Economical polices such as tax polices,
fiscal polices, monetary polices. UK economical condition is showing the positive sign. The
country's economy is rising from the recession and they are also increases income of the
individual. As increase in level of income which leads to more disposable of the income. It is
sustainability for the company (Chi, Kilduff and Gargeya, 2009). Along with this the company
is also generating income from the emerging economy such as India where they are making
profits due the changes their economics polices helps to them for increases their profits.
However, Brexit create negative impact of the entity's growth and they need to follow the
separate rules business as set by the EU in order to gain profit.
Social factors
This factors are purely based on the local beliefs and cultural of the UK people. It is vert
dynamic factors which is associated with the customer's behavior. The company in which they
are operating their business are highly acceptable (Demil, Lecocq and Zott, 2015) A number of
people like to get connected with each other so they accept the entity's internet and mobile
communication services. The another positive effects of the social factors is that communication
has become essentials for the normal people and they cannot imagined their life without mobile
and internet (Cannon and Yaprak, 2014). So this habit helps to them for increases their benefits.
In other country such as India which is highly populated increases demand for the internet user
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