Business Strategy for Vodafone: Impact of External Environment, Internal Capabilities and Strategic Planning

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
PART-1............................................................................................................................................3
Give structures to evaluate the impact and influence of macro environment on the company
and their strategies.......................................................................................................................3
SWOT analysis is a strategic planning and strategic management technique used by the business
to help organization, identify strengths, weaknesses, opportunities, and threats related to business
competition......................................................................................................................................7
Evaluate the Internal environment and capabilities of the company with the help of some
frameworks..................................................................................................................................9
McKinsey 7S Analysis-.................................................................................................................11
Implement porter's five forces to evaluate competitive forces of a market sector for a firm. .12
PART-2............................................................................................................................................1
P4 Applying a range of theories, concepts and models, interpret and devise strategic planning
for a given organisation...............................................................................................................1
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................5

INTRODUCTION
Business strategy is the technique used by a business in order to attract the people,
accomplish their aims, improve their performance and get success in the common goals of their
company. The organisations have to assess some plans, actions and objectives as this tells the
path to deal in a specific market and secure a competitive position in a market. This report will
be containing a deep research about impact on external environment of organisation and its
methods, explanation on the internal environment and capabilities of the company, then the
report gives a brief competitive forces utilising Porter's Five Forces possibility in a particular
market body. At last there is an analysis of reach of concept, idea and models that explains
strategic design of the firm. This report is in reference to Vodafone Unit which is a telecom
company and its headquarters are in Newbury, England. This corporate has been dealing in more
than 150 countries all over the world.
PART-1
Give structures to evaluate the effect and impact of external factor of the organisation and their
plan of action
Strategies are being defined as the human action which is being taken by the
administrator of the fellowship so that an organisation rightly attains the goals in an proper way.
The basic way that is beingness move by the business so that the better results could be
accomplished in near future. The better use of this strategies, an organisation able to decide
about task-to-do so that they can gain the competitive advantages over its rivals. In context to
Vodafone, they are implementing various strategies so that they can attains the wide
success at the local and the international market.
Various analytical framework to acknowledge macro environment
The external factors effects the functioning of the company so they have to maintain all
their work accordingly. They should be capable to maintain their goodwill, relationships, growth
in the changing environment. There are two types of models explained with the relation to the
company which are as follows -
PESTLE Analysis –

This is a framework used in evaluating the external environment of the firm. Thus there
are six types of factors which affect the company's working in some ways that are mentioned
below -
1. Political factors - These factors are seen when the government changes its tax
policies, trade restrictions, tariff rules which consequently affects the business
operations in an indirect way. For example Vodafone Group PLC have been dealing
some countries which have a stable political environment and less changes doesn't
affect their functioning.
Some country's governments have been intervening in the company's work and tax regimes as
the government has maximized their control towards the telecom sector.
2. Economic factors – They refer to the changes in country's economic growth,
inflation, deflation, exchange and unemployment rates which will bring in company's
strategies also. In the context to Vodafone Group PLC, the firm has preplanned about
their strategies which brings a better return on their cost incurred.
The company was widely affected during Brexit which caused low profitability for the time
period and also they are reliable on the willingness to purchase and demand of the consumers.
3. Social factors – They depend on some various cultural, demographic, population,
attitude and beliefs of different people which a business should focus while dealing in
a society. For an instance, Vodafone is improving the lifestyles, beliefs and education
level of the society in which they are connected and they are expanding their
customers as people are increasing utility on their digital platforms.
The firm is not focusing on the social trends in their customer base and they don't give priority to
their choices as well.