Vodafone PLC: A Strategic Analysis of the Telecommunications Sector
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This study delves into the strategic landscape of Vodafone PLC, a leading global telecommunications company. It examines the impact of the macro environment on Vodafone's business strategies, critically evaluates its internal capabilities, structure, and skill set, and analyzes the competitiveness of the UK's telecommunications sector using Porter's Five Forces model. The study also explores Vodafone's strategic direction and options available using Bowman's Strategy Clock model, highlighting the company's strengths, weaknesses, opportunities, and threats.
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UNIT 32 BUSINESS STRATEGY
1
1
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Table of Contents
INTRODUCTION................................................................................................................................3
TASK 1- EXTERNAL ENVIRONMENT.................................................................................................4
ANALYSE THE IMPACT AND INFLUENCE THE MACRO ENVIRONMENT HAS ON VODAFONE AND
ITS BUSINESS STRATEGIES...........................................................................................................4
TASK 2- INTERNAL ENVIRONMENT AND ORGANISATION CAPABILITIES.........................................9
CRITICALLY EVALUATING THE STRENGTHS AND WEAKNESSES OF AN ORGANISATION’S
INTERNAL CAPABILITIES, STRUCTURE AND SKILL SET.................................................................9
TASK 3- ANALYSING THE TELECOMMUNICATION SECTOR...........................................................14
EVALUATE THE COMPETITIVENESS OF UK’S TELECOMMUNICATIONS SECTOR USING PORTER’S
FIVE FORCES MODEL..................................................................................................................14
TASK 4- UNDERSTANDING AND INTERPRETING STRATEGIC DIRECTION......................................17
USING BOWMAN’S STRATEGY CLOCK MODEL, ANALYSE THE STRATEGIC DIRECTION AND
OPTIONS AVAILABLE FOR YOUR CHOSEN ORGANISATION.......................................................17
CONCLUSION.................................................................................................................................21
REFERENCES...................................................................................................................................22
2
INTRODUCTION................................................................................................................................3
TASK 1- EXTERNAL ENVIRONMENT.................................................................................................4
ANALYSE THE IMPACT AND INFLUENCE THE MACRO ENVIRONMENT HAS ON VODAFONE AND
ITS BUSINESS STRATEGIES...........................................................................................................4
TASK 2- INTERNAL ENVIRONMENT AND ORGANISATION CAPABILITIES.........................................9
CRITICALLY EVALUATING THE STRENGTHS AND WEAKNESSES OF AN ORGANISATION’S
INTERNAL CAPABILITIES, STRUCTURE AND SKILL SET.................................................................9
TASK 3- ANALYSING THE TELECOMMUNICATION SECTOR...........................................................14
EVALUATE THE COMPETITIVENESS OF UK’S TELECOMMUNICATIONS SECTOR USING PORTER’S
FIVE FORCES MODEL..................................................................................................................14
TASK 4- UNDERSTANDING AND INTERPRETING STRATEGIC DIRECTION......................................17
USING BOWMAN’S STRATEGY CLOCK MODEL, ANALYSE THE STRATEGIC DIRECTION AND
OPTIONS AVAILABLE FOR YOUR CHOSEN ORGANISATION.......................................................17
CONCLUSION.................................................................................................................................21
REFERENCES...................................................................................................................................22
2
INTRODUCTION
The study presents the in-depth understanding of the business and their strategic measures.
Vodafone is the multinational organisation which helps in leading the company with the
telecommunication Industry. Strategic planning, evaluation and selection present the
comprehensive insight of the company. This involves the investigation and organisation’s
external face with the identified opportunity and threats that might face.
Vodafone PLC is a leading global mobile telecommunication company operating in the market
since 1984. It has been configured the rate of the responsibilities of the staff and represented
result to 151 million customers and shareholders (Kew and Stredwick, 2017). The range of
products and services offered by Vodafone are- Social products, Voice services, USB Modems,
roaming services and other business services. The organisation is the subsidiary of Racal
Electronics PLC. This has limited the capital of the company with the approximate share of 20%.
The assignment presents the assimilation of the strategic business with inevitable internal
pressure for the business continuity with the rapid change in the sector and demand of the
people. A strategy for gaining competitive advantage has been incorporated in order to
evaluate the business operations of the organisation.
3
The study presents the in-depth understanding of the business and their strategic measures.
Vodafone is the multinational organisation which helps in leading the company with the
telecommunication Industry. Strategic planning, evaluation and selection present the
comprehensive insight of the company. This involves the investigation and organisation’s
external face with the identified opportunity and threats that might face.
Vodafone PLC is a leading global mobile telecommunication company operating in the market
since 1984. It has been configured the rate of the responsibilities of the staff and represented
result to 151 million customers and shareholders (Kew and Stredwick, 2017). The range of
products and services offered by Vodafone are- Social products, Voice services, USB Modems,
roaming services and other business services. The organisation is the subsidiary of Racal
Electronics PLC. This has limited the capital of the company with the approximate share of 20%.
The assignment presents the assimilation of the strategic business with inevitable internal
pressure for the business continuity with the rapid change in the sector and demand of the
people. A strategy for gaining competitive advantage has been incorporated in order to
evaluate the business operations of the organisation.
3
TASK 1- EXTERNAL ENVIRONMENT
ANALYSE THE IMPACT AND INFLUENCE THE MACRO ENVIRONMENT HAS ON
VODAFONE AND ITS BUSINESS STRATEGIES
Mobile communications are probably one of the most successful industries in the whole world.
It has not only affected the economy but also entire society to rely on the entire information
technology. The Leading business telecommunication company named Vodafone PLC can
present the big version of the phone not just in their regions but in the global area. Their
market presence is felt not just emerging the market but entering into the new markets. The
operations of the company have been extended to 31 countries and its customer's outreach to
260 million (Teece, 2010). The profitability ratio has been soared to an estimated amount of the
time with the partnership to other 38 networks.
MISSION
The mission of the Vodafone is to enrich the customer’s lives through which unique power of
mobile communication can be attained. The main objective to enable the customers to remain
connected with their family, friends and other sources are a wide vision of the Vodafone. They
can present the highest quality network with the best experience services. The customer can
receive best-integrated solutions. This has enhanced the financial results with ethical and
responsible business operations (Acquaah, 2011). It is necessary to have a strong commitment
to improving the social impact of the organisation and maintaining the sustainable business for
the long term.
VISION
The customer must be provided excellent services and products within the 7 days a week and
24 hours a day. This enables them to use the products and service in a well-simplified manner.
The Vodafone has dedicated their vision to provide easiest means of communication for the
customers (Higgins, et al. 2015).
4
ANALYSE THE IMPACT AND INFLUENCE THE MACRO ENVIRONMENT HAS ON
VODAFONE AND ITS BUSINESS STRATEGIES
Mobile communications are probably one of the most successful industries in the whole world.
It has not only affected the economy but also entire society to rely on the entire information
technology. The Leading business telecommunication company named Vodafone PLC can
present the big version of the phone not just in their regions but in the global area. Their
market presence is felt not just emerging the market but entering into the new markets. The
operations of the company have been extended to 31 countries and its customer's outreach to
260 million (Teece, 2010). The profitability ratio has been soared to an estimated amount of the
time with the partnership to other 38 networks.
MISSION
The mission of the Vodafone is to enrich the customer’s lives through which unique power of
mobile communication can be attained. The main objective to enable the customers to remain
connected with their family, friends and other sources are a wide vision of the Vodafone. They
can present the highest quality network with the best experience services. The customer can
receive best-integrated solutions. This has enhanced the financial results with ethical and
responsible business operations (Acquaah, 2011). It is necessary to have a strong commitment
to improving the social impact of the organisation and maintaining the sustainable business for
the long term.
VISION
The customer must be provided excellent services and products within the 7 days a week and
24 hours a day. This enables them to use the products and service in a well-simplified manner.
The Vodafone has dedicated their vision to provide easiest means of communication for the
customers (Higgins, et al. 2015).
4
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The strategy is the term which presents any direction and scope of Vodafone for the long term.
It can be highly configured with the resources that are required to meet the challenging
environment and must meet the needs of the market and fulfil stakeholder expectations. The
core competition and foundation can lead to the incorporate business strategy. The rapid
change in the world can demand the business continuity. The current business strategy of the
Vodafone is to grow their business over the geographic region and must set the acquisition of
the new customers with the technology. The expansion of the business with the emerging
markets such as African and India addresses too many challenging measures of attaining the
sustainability of the environment (Wang and Verma, 2012). Enabling low carbon society
through their products and services can meet the needs of the markets and offer an attractive
commercial return for their shareholders.
STAKEHOLDER ANALYSIS
The significant analysis to the stakeholders can affect the activities of the organisation. The
relationship can configure the best way to map the stakeholders with the power based services.
This can affect the organisation in such a way that responds to the change in the management
requires the support from the stakeholders in different quadrants. It is necessary for the
organisation to analyse their stakeholder presence. Vodafone PLC can utilise the opinion of the
powerful stakeholders at early stages. The support from the stakeholder can help the Vodafone
PLC projects successful (Slack, 2015). This can regulate the companies to plan the actions which
can underpin the interest of drawing attention towards the future plans and seeking address.
ROLE OF STRATEGIC PLANNING
The strategic planning can help in identification of the strategy and make decisions on
allocating the resources. There are different techniques through which the planning of the
organisation can be attained. The importance of macro environment can relate to the
techniques including SWOT analysis, PESTLE Analysis and STEER techniques. The Pestle analysis
can help in analysing the macro environment of the Vodafone (Asrarhaghighi, et al. 2013).
PESTLE ANALYSIS
5
It can be highly configured with the resources that are required to meet the challenging
environment and must meet the needs of the market and fulfil stakeholder expectations. The
core competition and foundation can lead to the incorporate business strategy. The rapid
change in the world can demand the business continuity. The current business strategy of the
Vodafone is to grow their business over the geographic region and must set the acquisition of
the new customers with the technology. The expansion of the business with the emerging
markets such as African and India addresses too many challenging measures of attaining the
sustainability of the environment (Wang and Verma, 2012). Enabling low carbon society
through their products and services can meet the needs of the markets and offer an attractive
commercial return for their shareholders.
STAKEHOLDER ANALYSIS
The significant analysis to the stakeholders can affect the activities of the organisation. The
relationship can configure the best way to map the stakeholders with the power based services.
This can affect the organisation in such a way that responds to the change in the management
requires the support from the stakeholders in different quadrants. It is necessary for the
organisation to analyse their stakeholder presence. Vodafone PLC can utilise the opinion of the
powerful stakeholders at early stages. The support from the stakeholder can help the Vodafone
PLC projects successful (Slack, 2015). This can regulate the companies to plan the actions which
can underpin the interest of drawing attention towards the future plans and seeking address.
ROLE OF STRATEGIC PLANNING
The strategic planning can help in identification of the strategy and make decisions on
allocating the resources. There are different techniques through which the planning of the
organisation can be attained. The importance of macro environment can relate to the
techniques including SWOT analysis, PESTLE Analysis and STEER techniques. The Pestle analysis
can help in analysing the macro environment of the Vodafone (Asrarhaghighi, et al. 2013).
PESTLE ANALYSIS
5
POLITICAL ECONOMIC SOCIAL
The government
regulations ensures
about the proper
operations and
management in the
business
EU regulatory
Framework is followed
by the company as the
organisation turn into
privatization of British
Telecom (Wang and
Verma, 2012)
Vodafone has reduced
termination rates on
its mobile phones
under the tax policies
Licensed phone are
provided to their
customer with
additional services
The Vodafone has
steady growth rate in
terms of profitability
The predicted status
can be managed with
the global and
international financial
markets of the
company
The increased demand
conquers with the high
labour cost in the UK
The competitive
industries providing
their products at the
low cost are the
matter of concern for
Vodafone (Baroto, et
al. 2012). This
decelerate global
growth of the business
Vodafone is involved
in the health
awareness activities
and presenting
experiences to their
customer
The major target of
Vodafone are growing
older population in the
UK which help them
stay connected
The increase in the
access use of internet
and internet users has
helped them in
enhancing business
growth (Rangan, et al.
2013)
Vodafone might lose a
considerable
customers with
operations negatively
TECHNOLOGICAL LEGAL ENVIRONMENTAL
Vodafone’s research
and development
department can
positively influence
the company with the
Telecom regulations
regarding bandwidth
and transmission
power are highly
fluctuating as per the
The level of the
greenhouse gas
emission must be
controlled while
developing any
6
The government
regulations ensures
about the proper
operations and
management in the
business
EU regulatory
Framework is followed
by the company as the
organisation turn into
privatization of British
Telecom (Wang and
Verma, 2012)
Vodafone has reduced
termination rates on
its mobile phones
under the tax policies
Licensed phone are
provided to their
customer with
additional services
The Vodafone has
steady growth rate in
terms of profitability
The predicted status
can be managed with
the global and
international financial
markets of the
company
The increased demand
conquers with the high
labour cost in the UK
The competitive
industries providing
their products at the
low cost are the
matter of concern for
Vodafone (Baroto, et
al. 2012). This
decelerate global
growth of the business
Vodafone is involved
in the health
awareness activities
and presenting
experiences to their
customer
The major target of
Vodafone are growing
older population in the
UK which help them
stay connected
The increase in the
access use of internet
and internet users has
helped them in
enhancing business
growth (Rangan, et al.
2013)
Vodafone might lose a
considerable
customers with
operations negatively
TECHNOLOGICAL LEGAL ENVIRONMENTAL
Vodafone’s research
and development
department can
positively influence
the company with the
Telecom regulations
regarding bandwidth
and transmission
power are highly
fluctuating as per the
The level of the
greenhouse gas
emission must be
controlled while
developing any
6
more innovated
products and services
The competitors such
as USA and Japan
region have more
efforts in the R&D of
the organisation (E.
Dobbs, 2014).
Vodafone share over
2% in R&D.
EU spends about 1.2%
based on the
allocations and funds
with the afforded by
the government for
research and
development
(Rothaermel, 2015).
need of the market.
Therefore, it is
necessary to follow
them regularly
Taxation policies must
be attained
Employment to the
people are provided
under the
employment right act
(Clegg, et al. 2015)
Safety rules must be
followed by the
organisation while
performing the task
under safety law
technology or
networking regions
must be configured to
the low emission rate
The waste and
disposal of the mobile
phones must be done
positively by following
the environmental
rules (Bertozzi, et al.
2017)
Ability to use the
renewable energy can
empower the
operations
STRUCTURE-CONDUCT-PERFORMANCE MODEL
The structure conduct performance (SCP) model provides the industrial organisation economics
with the theoretical explanation of the firm performance through economic conduct on the
incomplete market. The external factors such as legal or political interventions may affect the
market framework with the extension of the structure and performance of the market (D'Aveni,
et al. 2010). The direct influence on the firm's economic conduct takes place with short-term
measures taken to handle the structure of the market and environmental measures.
STRATEGIC POSITIONING: ANSOFF GROWTH VECTOR MATRIX
7
products and services
The competitors such
as USA and Japan
region have more
efforts in the R&D of
the organisation (E.
Dobbs, 2014).
Vodafone share over
2% in R&D.
EU spends about 1.2%
based on the
allocations and funds
with the afforded by
the government for
research and
development
(Rothaermel, 2015).
need of the market.
Therefore, it is
necessary to follow
them regularly
Taxation policies must
be attained
Employment to the
people are provided
under the
employment right act
(Clegg, et al. 2015)
Safety rules must be
followed by the
organisation while
performing the task
under safety law
technology or
networking regions
must be configured to
the low emission rate
The waste and
disposal of the mobile
phones must be done
positively by following
the environmental
rules (Bertozzi, et al.
2017)
Ability to use the
renewable energy can
empower the
operations
STRUCTURE-CONDUCT-PERFORMANCE MODEL
The structure conduct performance (SCP) model provides the industrial organisation economics
with the theoretical explanation of the firm performance through economic conduct on the
incomplete market. The external factors such as legal or political interventions may affect the
market framework with the extension of the structure and performance of the market (D'Aveni,
et al. 2010). The direct influence on the firm's economic conduct takes place with short-term
measures taken to handle the structure of the market and environmental measures.
STRATEGIC POSITIONING: ANSOFF GROWTH VECTOR MATRIX
7
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Vodafone focuses on the opportunities that fit their business terms and compatibly enhancing
the products and markets. This can deliver the growth of the company and must encounter
with the needs of the competence in the market through existing or new products.
MARKET PENETRATION MARKET DEVELOPMENT
Vodafone market is riding high with their
current promotional advertisement campaign
based on Zoozoo. This has increased their
market presence and led to increasing in the
distribution network in the urban areas
(Cooper, et al. 2011). The adaption of the
model and customized regional parameter can
help them in becoming a leading cellular
service provider.
The statistics regarding the overall telecom
sector growth has encountered with the
generating tier1 and tier2 cities. This can help
in targeting rural areas along with the regional
areas. This association with the promotional
strategies and advertising good connect with
the rural customer (Dewi, et al. 2012).
PRODUCT DEVELOPMENT DIVERSIFICATION
Vodafone presents new services such as 3G Go
Live! And other stronger foothold. This has
enhanced the business with the quantum leap
for browsing internet-based applications
(Gamble and Thompson, 2014). The Vodafone
is distinct from the license for 3G services
around the globe to win over its competitors.
The Vodafone has launched the Machine to
Machine service platform which has deployed
the applications of the competitors. The M2M
project manages large and wireless
applications of enhancing the central control
on the enormous potential for growth (Favaro,
2015). The WiBRO has the capacity to
maintain the data rate by staggering 50MB/s
speed. This has helped in diversifying the
different markets verticals.
8
the products and markets. This can deliver the growth of the company and must encounter
with the needs of the competence in the market through existing or new products.
MARKET PENETRATION MARKET DEVELOPMENT
Vodafone market is riding high with their
current promotional advertisement campaign
based on Zoozoo. This has increased their
market presence and led to increasing in the
distribution network in the urban areas
(Cooper, et al. 2011). The adaption of the
model and customized regional parameter can
help them in becoming a leading cellular
service provider.
The statistics regarding the overall telecom
sector growth has encountered with the
generating tier1 and tier2 cities. This can help
in targeting rural areas along with the regional
areas. This association with the promotional
strategies and advertising good connect with
the rural customer (Dewi, et al. 2012).
PRODUCT DEVELOPMENT DIVERSIFICATION
Vodafone presents new services such as 3G Go
Live! And other stronger foothold. This has
enhanced the business with the quantum leap
for browsing internet-based applications
(Gamble and Thompson, 2014). The Vodafone
is distinct from the license for 3G services
around the globe to win over its competitors.
The Vodafone has launched the Machine to
Machine service platform which has deployed
the applications of the competitors. The M2M
project manages large and wireless
applications of enhancing the central control
on the enormous potential for growth (Favaro,
2015). The WiBRO has the capacity to
maintain the data rate by staggering 50MB/s
speed. This has helped in diversifying the
different markets verticals.
8
TASK 2- INTERNAL ENVIRONMENT AND ORGANISATION CAPABILITIES
CRITICALLY EVALUATING THE STRENGTHS AND WEAKNESSES OF AN
ORGANISATION’S INTERNAL CAPABILITIES, STRUCTURE AND SKILL SET
STRATEGIC CAPABILITIES
Vodafone is a well-known mobile network which has an equity interest in thirty-one countries
and is partner networks with other forty-one countries. The intense competition has
substantially contributed to firm’s innovation capabilities. The Vodafone’s success is due to
their strategic capabilities and significant links with their internal and external factors. The
strategic capability depends on the business objectives and policies (Johnson, et al. 2010). The
resource-based theory can help in assessing the current resources with the identified key
strategic positioning of the organisation. Tangible resources of the organisation are mainly
dependent on the financial, organisational structure, physical and technological resources.
However, intangible resources are generally dependent on the people and on the resources.
The resource-based view strategy has added to gain the competitive advantage for the
business. The profitability ratio of the Vodafone has reached to the 38.30% by the year 2012.
Thus, the use of the McKinsey Model helps in identifying the capabilities and skills set of the
Vodafone as the part of the management tool.
MCKINSEY 7S MODEL
The 7-s framework of Mckinsey is considered as the value-based management model for the
effective functioning of the company (Jones, 2015). The way to analyse the strategic capabilities
and skills set of the Vodafone can be configured with the help this management tool. The
Vodafone has certainly adopted the strongest weapon in order to overcome all the
consequences is the basic 4ps of the marketing mix. This has marked them to provide strong
product and service marketing.
The Hard S’s:
9
CRITICALLY EVALUATING THE STRENGTHS AND WEAKNESSES OF AN
ORGANISATION’S INTERNAL CAPABILITIES, STRUCTURE AND SKILL SET
STRATEGIC CAPABILITIES
Vodafone is a well-known mobile network which has an equity interest in thirty-one countries
and is partner networks with other forty-one countries. The intense competition has
substantially contributed to firm’s innovation capabilities. The Vodafone’s success is due to
their strategic capabilities and significant links with their internal and external factors. The
strategic capability depends on the business objectives and policies (Johnson, et al. 2010). The
resource-based theory can help in assessing the current resources with the identified key
strategic positioning of the organisation. Tangible resources of the organisation are mainly
dependent on the financial, organisational structure, physical and technological resources.
However, intangible resources are generally dependent on the people and on the resources.
The resource-based view strategy has added to gain the competitive advantage for the
business. The profitability ratio of the Vodafone has reached to the 38.30% by the year 2012.
Thus, the use of the McKinsey Model helps in identifying the capabilities and skills set of the
Vodafone as the part of the management tool.
MCKINSEY 7S MODEL
The 7-s framework of Mckinsey is considered as the value-based management model for the
effective functioning of the company (Jones, 2015). The way to analyse the strategic capabilities
and skills set of the Vodafone can be configured with the help this management tool. The
Vodafone has certainly adopted the strongest weapon in order to overcome all the
consequences is the basic 4ps of the marketing mix. This has marked them to provide strong
product and service marketing.
The Hard S’s:
9
STRATEGY
The plan adopted for the Vodafone has reached its saturation stage. Thus, it is necessary for
them to sustain their services and new products for the long term. The scarce resources are
allocated to the firm's long-term goals.
STRUCTURE
The way the organisation relates to each other is based on the structure which is Centralised at
the top level of the organisation (Kew and Stredwick, 2017). However, it decentralises with the
large trend of the organisation. It also holds on maintaining the departmental activities by
acquiring efficiency and effectiveness. The company can acquire the knowledge to have faith
and trust of the customers by utilising the matrix structure for the organisation. It, however,
does not allow the organisation to make a quick decision as the fluctuation in the departmental
activities can uphold a large number of the job hierarchy. The company need to refine the flat
empowered organisation to fulfil the quick decision making and meeting the market needs.
SYSTEM
The procedures, routine and processes are characterised under the system. It is important for
Vodafone to set the formal procedure criteria to manage the department. For example-
Marketing communication and MIS department can help in providing the response rate of the
consumer (Cooper, et al. 2011). The sales department can provide the information regarding
market through surveys. The crystal clear data can be recorded by the organisation in order to
focus their control on the suppress the trust and helping the employees and customer with the
new facilities.
The Soft S’s
SHARED VALUES
The interconnecting centre of Mckinsey has configured on the belief and attitude of the
organisation. The Vodafone shares the core values in order to diversify their customer base.
They are customer oriented with the comparable working method in place of observing local
10
The plan adopted for the Vodafone has reached its saturation stage. Thus, it is necessary for
them to sustain their services and new products for the long term. The scarce resources are
allocated to the firm's long-term goals.
STRUCTURE
The way the organisation relates to each other is based on the structure which is Centralised at
the top level of the organisation (Kew and Stredwick, 2017). However, it decentralises with the
large trend of the organisation. It also holds on maintaining the departmental activities by
acquiring efficiency and effectiveness. The company can acquire the knowledge to have faith
and trust of the customers by utilising the matrix structure for the organisation. It, however,
does not allow the organisation to make a quick decision as the fluctuation in the departmental
activities can uphold a large number of the job hierarchy. The company need to refine the flat
empowered organisation to fulfil the quick decision making and meeting the market needs.
SYSTEM
The procedures, routine and processes are characterised under the system. It is important for
Vodafone to set the formal procedure criteria to manage the department. For example-
Marketing communication and MIS department can help in providing the response rate of the
consumer (Cooper, et al. 2011). The sales department can provide the information regarding
market through surveys. The crystal clear data can be recorded by the organisation in order to
focus their control on the suppress the trust and helping the employees and customer with the
new facilities.
The Soft S’s
SHARED VALUES
The interconnecting centre of Mckinsey has configured on the belief and attitude of the
organisation. The Vodafone shares the core values in order to diversify their customer base.
They are customer oriented with the comparable working method in place of observing local
10
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values with the three aspects speed, trust and simplicity. It helps in improving the dynamics of
the market with innovative and qualitative means of solving problems.
STAFF
The number of personnel within the organisation has been based on the skills and abilities with
the financial and non-financial means of providing incentives. This motivates the staff to work
with more enthusiasm and interest (Rothaermel, 2015).
STYLE
The style of the organisation is based on the goals that are targeted. The management style of
the Vodafone has discipline atmosphere this partially includes the non-decisive and risk-
avoiding hindrances. They need to supervise their subordinated skills in such way that their
work does not deliberate the problems.
SKILL
The skills of the organisation share the distinctive capabilities which help in influencing the
bound with the consumer and standardizing their product quality. It also adds the Vodafone
with the highly skilled and trained employees. However, it suffers from the lack of the executing
skills (Baroto, et al. 2012). This programme must be launched in order to enhance the skills of
the employees.
VRIO/VRIN FRAMEWORK
The analysis of the Vodafone through the help of the VRIO framework can help in analysing the
internal strength of the organisation. The analysis helps in revealing the tangible resources of
the organisation (Wang and Verma, 2012).
For Vodafone the tangible resources can be elucidated as:
V-Valuable Vodafone shares the large infrastructure which helps them in associating
economies of scale which increases on the basis of the sustainable
11
the market with innovative and qualitative means of solving problems.
STAFF
The number of personnel within the organisation has been based on the skills and abilities with
the financial and non-financial means of providing incentives. This motivates the staff to work
with more enthusiasm and interest (Rothaermel, 2015).
STYLE
The style of the organisation is based on the goals that are targeted. The management style of
the Vodafone has discipline atmosphere this partially includes the non-decisive and risk-
avoiding hindrances. They need to supervise their subordinated skills in such way that their
work does not deliberate the problems.
SKILL
The skills of the organisation share the distinctive capabilities which help in influencing the
bound with the consumer and standardizing their product quality. It also adds the Vodafone
with the highly skilled and trained employees. However, it suffers from the lack of the executing
skills (Baroto, et al. 2012). This programme must be launched in order to enhance the skills of
the employees.
VRIO/VRIN FRAMEWORK
The analysis of the Vodafone through the help of the VRIO framework can help in analysing the
internal strength of the organisation. The analysis helps in revealing the tangible resources of
the organisation (Wang and Verma, 2012).
For Vodafone the tangible resources can be elucidated as:
V-Valuable Vodafone shares the large infrastructure which helps them in associating
economies of scale which increases on the basis of the sustainable
11
competitive advantage
R- Rare The global presence of the Vodafone brands instantly gain high
specialized stuff relative to newcomers on the unified services of mobile
I- Imitate It provides ease to the market segments and helps in ceasing opportunity
with the rise in their culture aspects
N/O- Organisation None
The strengths and weakness of the organisation can be attained with the help of evaluating
their firm infrastructure, human resources, technological development and procurement with
the operational services (Acquaah, 2011).
VALUE CHAIN ANALYSIS
The Vodafone supply chain journey has its focus on the six areas:
People- This indulge in the employee's skills, organisation growth and career
development
Customer obsession: this coves the customer-centric KPI's of the organisation
Global Scale: It configures the geographical presentation and buying partnerships in the
other countries
Operational excellence: This manages the demand an end-to-end performance of the
management
Supplier relationship management: This set a transparent way of enhancing the
activities and unlocking the joint values
Sustainable Supply chain: They focus on enhancing the environmental and ethical
procurement
12
R- Rare The global presence of the Vodafone brands instantly gain high
specialized stuff relative to newcomers on the unified services of mobile
I- Imitate It provides ease to the market segments and helps in ceasing opportunity
with the rise in their culture aspects
N/O- Organisation None
The strengths and weakness of the organisation can be attained with the help of evaluating
their firm infrastructure, human resources, technological development and procurement with
the operational services (Acquaah, 2011).
VALUE CHAIN ANALYSIS
The Vodafone supply chain journey has its focus on the six areas:
People- This indulge in the employee's skills, organisation growth and career
development
Customer obsession: this coves the customer-centric KPI's of the organisation
Global Scale: It configures the geographical presentation and buying partnerships in the
other countries
Operational excellence: This manages the demand an end-to-end performance of the
management
Supplier relationship management: This set a transparent way of enhancing the
activities and unlocking the joint values
Sustainable Supply chain: They focus on enhancing the environmental and ethical
procurement
12
Figure: Value Chain Analysis
Source: Verbeke, 2013
COST BENEFIT ANALYSIS
The Vodafone effects on the cost-benefit analysis of the mobile termination rate regulation
under which if Telecom 027 network is excluded and Telecom 025 is included in the regulation
will help in the cost-benefit analysis of the company (Chen and Liao, 2011). The effects of the
indirect costs are less clear and can be flawed and biased towards generating net benefit
numbers. This can help in constraining the Vodafone functioning and likely to add the
asymmetry in the regulation with assessing of indirect costs arising from such regulation.
13
Source: Verbeke, 2013
COST BENEFIT ANALYSIS
The Vodafone effects on the cost-benefit analysis of the mobile termination rate regulation
under which if Telecom 027 network is excluded and Telecom 025 is included in the regulation
will help in the cost-benefit analysis of the company (Chen and Liao, 2011). The effects of the
indirect costs are less clear and can be flawed and biased towards generating net benefit
numbers. This can help in constraining the Vodafone functioning and likely to add the
asymmetry in the regulation with assessing of indirect costs arising from such regulation.
13
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TASK 3- ANALYSING THE TELECOMMUNICATION SECTOR
EVALUATE THE COMPETITIVENESS OF UK’S TELECOMMUNICATIONS SECTOR
USING PORTER’S FIVE FORCES MODEL
BALANCED SCORECARD
The Balanced Scorecard is a strategic management approach through which the business
objectives are set with the goals. It can focus on the four perspectives of the organisation
through raising generic questions on the strategies that are necessary to be followed. They are-
financial, internal business processes, customer, learning and growth.
This tool, however, was unable to deliver the better performance. The financial perspective of
the shareholder of the companies are concerned as the return on capital employed compares
earnings and also help in managing shareholders’ funds and long-term liabilities in the company
(D'Aveni, et al. 2010). This ROCE for Vodafone Group PLC is recorded to be 4.33%. This
encounters with the customer perspective towards their products and services. It enables them
to identify and measure the explicit proportion of the value outcome measures. The internal
business explicit with the strategies and deliver the value proposition to the business as per the
market needs.
14
EVALUATE THE COMPETITIVENESS OF UK’S TELECOMMUNICATIONS SECTOR
USING PORTER’S FIVE FORCES MODEL
BALANCED SCORECARD
The Balanced Scorecard is a strategic management approach through which the business
objectives are set with the goals. It can focus on the four perspectives of the organisation
through raising generic questions on the strategies that are necessary to be followed. They are-
financial, internal business processes, customer, learning and growth.
This tool, however, was unable to deliver the better performance. The financial perspective of
the shareholder of the companies are concerned as the return on capital employed compares
earnings and also help in managing shareholders’ funds and long-term liabilities in the company
(D'Aveni, et al. 2010). This ROCE for Vodafone Group PLC is recorded to be 4.33%. This
encounters with the customer perspective towards their products and services. It enables them
to identify and measure the explicit proportion of the value outcome measures. The internal
business explicit with the strategies and deliver the value proposition to the business as per the
market needs.
14
Figure: Balance Scorecard
Source: Drucker, 2014
PORTER’S FIVE FORCE MODEL
A threat from the Buyers: The threat from the buyers can contribute to the rise and fall of the
company. The telecommunication organisation has a vast number of the growth rate of
subscribers for cellphones in all parts of the Europe which covers the direct impact on the
services and subscription packages which are being offered by the Vodafone (Gamble and
Thompson, 2014). The consistency in the emerging economies in Latin America, Asia, Africa and
Europe can contribute with the increase in the mobile subscription in the global scale.
The intensity of Competitive Rivalry: The telecommunication industry in Europe has large
operational phenomenon with the competition in the Telefonica O2 and T-Mobile among the
others. The level of the competition can broadly construe on establishing the name in the
market (Rangan, et al. 2013). This is considered as the strong base for the growth of the
emergent new ones.
15
Source: Drucker, 2014
PORTER’S FIVE FORCE MODEL
A threat from the Buyers: The threat from the buyers can contribute to the rise and fall of the
company. The telecommunication organisation has a vast number of the growth rate of
subscribers for cellphones in all parts of the Europe which covers the direct impact on the
services and subscription packages which are being offered by the Vodafone (Gamble and
Thompson, 2014). The consistency in the emerging economies in Latin America, Asia, Africa and
Europe can contribute with the increase in the mobile subscription in the global scale.
The intensity of Competitive Rivalry: The telecommunication industry in Europe has large
operational phenomenon with the competition in the Telefonica O2 and T-Mobile among the
others. The level of the competition can broadly construe on establishing the name in the
market (Rangan, et al. 2013). This is considered as the strong base for the growth of the
emergent new ones.
15
Threats from Substitutes: The substitutes of mobile phones are marked with the name of
creating the threat yet. It is most commonly used for substituting the mobile subscription such
as VoIP calling which sucks with the Facebook calling aspects and Viber and Wi-Fi range that
enables the plug into a phone.
Threats from Entrants: The new enterprises are likely to be affected by the emerging market
conditions of the Vodafone Company. It has significant and remarkable barriers through which
the fixed costs are high and governmental regulation and policy can evaluate the brand equity
and distribution access (Cooper, et al. 2011). The entrants cannot be denied in order to attract
more subscribers. The profitable range of the business can help in sharing the goods with the
profitability and exploit with all possible ways to provide competition.
Threats from Suppliers: The suppliers in the telecommunication sector are not limited and even
the infrastructure and mobile providers do not attain the infrastructure with the software in the
form of the digital services. Vodafone cannot deny them access to purchasing power and also
they are securely maintaining the deal with the help of the brand, profitability and image which
interact with the market (Favaro, 2015).
16
creating the threat yet. It is most commonly used for substituting the mobile subscription such
as VoIP calling which sucks with the Facebook calling aspects and Viber and Wi-Fi range that
enables the plug into a phone.
Threats from Entrants: The new enterprises are likely to be affected by the emerging market
conditions of the Vodafone Company. It has significant and remarkable barriers through which
the fixed costs are high and governmental regulation and policy can evaluate the brand equity
and distribution access (Cooper, et al. 2011). The entrants cannot be denied in order to attract
more subscribers. The profitable range of the business can help in sharing the goods with the
profitability and exploit with all possible ways to provide competition.
Threats from Suppliers: The suppliers in the telecommunication sector are not limited and even
the infrastructure and mobile providers do not attain the infrastructure with the software in the
form of the digital services. Vodafone cannot deny them access to purchasing power and also
they are securely maintaining the deal with the help of the brand, profitability and image which
interact with the market (Favaro, 2015).
16
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Figure: Porter’s Five Force Analysis for Vodafone
Source: Bertozzi, et al. 2017
17
Source: Bertozzi, et al. 2017
17
TASK 4- UNDERSTANDING AND INTERPRETING STRATEGIC DIRECTION
USING BOWMAN’S STRATEGY CLOCK MODEL, ANALYSE THE STRATEGIC
DIRECTION AND OPTIONS AVAILABLE FOR YOUR CHOSEN ORGANISATION
STRATEGIC CHOICES AND DIRECTIONS:
The application of Porter's Generic strategies can help in extending the strategic decision of the
organisation. The role of the generic strategies helps in evaluating the strong market
performance of the Vodafone. The need of focusing the local market equally can help in
associating with the organic growth and centralized management efficiently (Bertozzi, et al.
2017). The Vodafone can help in meeting the needs with the attractive use of the phone service
packages to the consumers at the high saturation rate in the market.
PORTER’S GENERIC STRATEGY
The Vodafone PLC can support their employees by adding a framework to the strategy. They
help in gaining the competitive advantage of the resources and leveraging the needs of the
people with their strength as the market leaders (Bertozzi, et al. 2017). They can mark different
strategies. They are:
Cost Leadership strategy: This strategy helps in maintaining the cost of the product at
very competitive prices. This helps in attaining the high-profit margin. However, the
standards of the market price can be undifferentiated with the competing prices of the
organisation.
Differentiation strategy: The differentiation of the strategy can regulate on the level of
the services with the customer cost-effective mode. The company can articulate on the
differentiation strategy with the better product performance (Slack, 2015).
Focus strategy: This strategy helps in dignifying the needs of the organisation through
offering the products in the niche market with strategic characteristics.
18
USING BOWMAN’S STRATEGY CLOCK MODEL, ANALYSE THE STRATEGIC
DIRECTION AND OPTIONS AVAILABLE FOR YOUR CHOSEN ORGANISATION
STRATEGIC CHOICES AND DIRECTIONS:
The application of Porter's Generic strategies can help in extending the strategic decision of the
organisation. The role of the generic strategies helps in evaluating the strong market
performance of the Vodafone. The need of focusing the local market equally can help in
associating with the organic growth and centralized management efficiently (Bertozzi, et al.
2017). The Vodafone can help in meeting the needs with the attractive use of the phone service
packages to the consumers at the high saturation rate in the market.
PORTER’S GENERIC STRATEGY
The Vodafone PLC can support their employees by adding a framework to the strategy. They
help in gaining the competitive advantage of the resources and leveraging the needs of the
people with their strength as the market leaders (Bertozzi, et al. 2017). They can mark different
strategies. They are:
Cost Leadership strategy: This strategy helps in maintaining the cost of the product at
very competitive prices. This helps in attaining the high-profit margin. However, the
standards of the market price can be undifferentiated with the competing prices of the
organisation.
Differentiation strategy: The differentiation of the strategy can regulate on the level of
the services with the customer cost-effective mode. The company can articulate on the
differentiation strategy with the better product performance (Slack, 2015).
Focus strategy: This strategy helps in dignifying the needs of the organisation through
offering the products in the niche market with strategic characteristics.
18
Figure: Porter’s Generic strategies
Source: Chen and Jermias, 2014
BOWMAN’S STRATEGIC CLOCK MODEL
The strategic clock model helps in gaining the competitive advantage in the market as the
product information can be achieved with the reliable position in the market. The need of the
model can be associated with the important positioning of the environment and attain the
competitive advantage (Higgins, et al. 2015). The low price products with the high-risk of
management can gather the market information with the valuing strategic needs. The Hybrid,
differentiated and focused position can help in offering the customer perceived value with the
strategic decisions.
19
Source: Chen and Jermias, 2014
BOWMAN’S STRATEGIC CLOCK MODEL
The strategic clock model helps in gaining the competitive advantage in the market as the
product information can be achieved with the reliable position in the market. The need of the
model can be associated with the important positioning of the environment and attain the
competitive advantage (Higgins, et al. 2015). The low price products with the high-risk of
management can gather the market information with the valuing strategic needs. The Hybrid,
differentiated and focused position can help in offering the customer perceived value with the
strategic decisions.
19
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Figure: Bowman’s Clock Strategy Model
Source: Verbeke, 2013
HYBRID STRATEGY
The strategy of the Ethernet services was introduced by Vodafone which comply with gaining
the high tech WAN portfolio. It helps in increasing the performance of the organisation.
Further, it ensures the embracing services and its connectedness in the control and predictable
source of the information.
DIVERSIFICATION STRATEGY
The diversification strategy provides an undergrowth performance measures. The introduction
of the new equipment and no experiences procedure can help in meeting the services. This can
be diversifying with the product beyond the services in the UK (Johnson, et al. 2010). The
strategies in the Vodafone can help in improving the productivity and reliability of the market
services.
20
Source: Verbeke, 2013
HYBRID STRATEGY
The strategy of the Ethernet services was introduced by Vodafone which comply with gaining
the high tech WAN portfolio. It helps in increasing the performance of the organisation.
Further, it ensures the embracing services and its connectedness in the control and predictable
source of the information.
DIVERSIFICATION STRATEGY
The diversification strategy provides an undergrowth performance measures. The introduction
of the new equipment and no experiences procedure can help in meeting the services. This can
be diversifying with the product beyond the services in the UK (Johnson, et al. 2010). The
strategies in the Vodafone can help in improving the productivity and reliability of the market
services.
20
The reputation of the Vodafone has been marked as the high position with the electronic
diversification of the people in Europe. Thus, 12% of the market needs can be planned with the
strategic change in the market conditions (Jones, 2015).
21
diversification of the people in Europe. Thus, 12% of the market needs can be planned with the
strategic change in the market conditions (Jones, 2015).
21
CONCLUSION
The study concludes on the swaying the strategic business needs with approached measures.
The concepts that are utilised in order to gain the strategic capabilities and meet the objectives
of the organisation Vodafone has been configured in the study. The role of the VRIO/VRIN
framework can help in gaining the market importance and strategic importance of the
Vodafone. The use of the Mckinsey Model, Porter’s Five Force Model and theoretical structure
to understand the working structure of the organisation has been concluded in the study. The
strategy which is applicable in the Vodafone is Diversification and Hybrid strategy helps them to
expand their business in the niche market with the strategic objectives has been influenced in
the assignment.
22
The study concludes on the swaying the strategic business needs with approached measures.
The concepts that are utilised in order to gain the strategic capabilities and meet the objectives
of the organisation Vodafone has been configured in the study. The role of the VRIO/VRIN
framework can help in gaining the market importance and strategic importance of the
Vodafone. The use of the Mckinsey Model, Porter’s Five Force Model and theoretical structure
to understand the working structure of the organisation has been concluded in the study. The
strategy which is applicable in the Vodafone is Diversification and Hybrid strategy helps them to
expand their business in the niche market with the strategic objectives has been influenced in
the assignment.
22
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23
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The role of social networking relationships. Journal of developmental entrepreneurship, 16(01),
pp.103-126.
Asrarhaghighi, E., Rahman, A.A., Sambasivan, M. and Mohamed, Z.A., 2013. Diversification
strategy and performance studies: Results, measures, and sampling design. Journal of Advanced
Management Science, 1(1), pp.12-18.
Baroto, M.B., Abdullah, M.M.B. and Wan, H.L., 2012. Hybrid strategy: A new strategy for
competitive advantage. International Journal of Business and Management, 7(20), p.120.
Bertozzi, F., Ali, C.M. and Gul, F.A., 2017. Porter’s Five Generic Strategies; A Case Study from the
Hospitality Industry. International Journal For Research In Mechanical & Civil Engineering, 3(2),
pp.09-23.
Chen, C.T. and Liao, T.T., 2011. A hybrid strategy for the time-and energy-efficient trajectory
planning of parallel platform manipulators. Robotics and Computer-Integrated Manufacturing,
27(1), pp.72-81.
Chen, Y. and Jermias, J., 2014. Business strategy, executive compensation and firm
performance. Accounting & Finance, 54(1), pp.113-134.
Clegg, S.R., Kornberger, M. and Pitsis, T., 2015. Managing and organizations: An introduction to
theory and practice. Sage.
Cooper, R., Edgett, S. and Kleinschmidt, E., 2011. Portfolio management for new product
development: results of an industry practices study. r&D Management, 31(4), pp.361-380.
D'Aveni, R.A., Dagnino, G.B. and Smith, K.G., 2010. The age of temporary advantage. Strategic
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24
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analysis templates. Competitiveness Review, 24(1), pp.32-45.
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retrieved at https://hbr. org/2015/03.
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Higgins, D., Omer, T.C. and Phillips, J.D., 2015. The influence of a firm's business strategy on its
tax aggressiveness. Contemporary Accounting Research, 32(2), pp.674-702.
Johnson, G., Scholes, K. and Whittington, R., 2010. Fundamentals of strategy. Pearson
Education.
Jones, P., 2015. Materiality in corporate sustainability reporting: A research note on the UK's
leading food retailers. Journal of Management Cases, p.42.
Kew, J. and Stredwick, J., 2017. Business environment: managing in a strategic context. Kogan
Page Publishers.
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2013. Integrated fatigue modeling in crew rostering and operations. Canadian Aeronautics and
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