Role of Strategic Alliance and Mergers in Achieving Corporate Profitability - Vodafone Case Study

Global Strategy and
International Trade

Contents
INTRODUCTION...........................................................................................................................................3
QUESTION 1.................................................................................................................................................4
Critical evaluation of the role of strategic alliance (SAs) and mergers and acquisitions (M&As) in
helping the MNC to achieve and sustain its corporate profitability................................................4
CONCLUSION.............................................................................................................................................12
INTRODUCTION.........................................................................................................................................13
CONCLUSION.............................................................................................................................................18
REFERENCES..............................................................................................................................................20

INTRODUCTION
A global strategy entails considering holistically about those areas of a business-suppliers,
manufacturing sites, customers, and competitors. It entails evaluating each services or products
in light of both domestic and global norms. But at the other hand, international commerce helps
nations to extend their business and get accessibility to commodities and services that may not be
accessible locally. The marketplace has become more aggressive as a consequence of global
commerce. One might talk about the fact that there is still a greater awareness in the research of
Multinational Firms this is less difficult to design effective international corporate strategy than
it would be to create institutional culture to carry those out. It raises attention to the possible
contributions of conceptual frameworks that investigate restrictions on institutional arrangements
and systems. Moreover, there is a common belief that we have managed to enter an era of major
shifts in strategies in strongly developed economies, fueled by competitive pressure and
interrelation, as well as quickly shifting future technologies, which has widened the attention of
company academics in micro-organizational frameworks and rational explanation in analysing
big complex corporate (Smith and Sarabi, 2022). This report based on the Vodafone Group Plc is
a global telecoms business based in the United Kingdom. It is headquartered in Newbury,
Berkshire, England, where it also has its company headquarters. Its services are mostly available
throughout Asia, Africa, Europe, and Oceania. Vodafone currently operates infrastructure in 22
countries as of November 2020, with partnerships in 48 more. Vodafone Global Business
delivers telecommunications and information technology services to business consumers in 150
countries. The British telecommunications company offers smart phone and internet solutions.
Vodafone is one of the nation's biggest telecoms in terms of subscriber base, with over 400
million subscriptions and users spread over 26 countries.
This research intends to objectively assess the impact of strategic alliances, merges, and
acquisitions in helping Vodafone Plc to accomplish long-term revenues and profits in both
domestic and global markets. It will also go through the implementation of important theories
related to global approaches, as well as the tactical decision-making procedure that allows the
company to interact with its globalized economy. This project proposes a comprehension of
global trade concepts, the significance of global expansion in the development of enterprises and

countries, global payroll system, and the consequences for the merge interchange of goods &
services (Mohamud and Koksal, 2021).
QUESTION 1
Critical evaluation of the role of strategic alliance (SAs) and mergers and acquisitions (M&As)
in helping the MNC to achieve and sustain its corporate profitability
A strategic alliance is an agreement between two firms to collaborate on a mutually
advantageous initiative while maintaining each company's autonomy. The contract becomes less
complicated but less adhering than like a joint project, in which two firms invest their money to
form a new commercial enterprise. A corporation may form a strategic partnership to enter
foreign markets, strengthen its product portfolio, or gain a competitive advantage (Xiong, 2021).
The treaty allowed two firms to collaborate on a shared objective that benefits both. The
partnership might be longer or shorter, and the contract could be official or unofficial. Strategic
alliance considered to be the fundamental cause for businesses' energy or competition, enabling
team to gain difficult-to-attain goals. This form of collaboration allows companies to broaden
their creative horizons and boost their consumer responses. This will help them to be more
productive and split financial hazards with the partner businesses. The partnership or alliance
supervisory board developed an important strategic function within enterprises in building and
sustaining a genuine strategic advantage (Van Hoyweghen and et.al, 2021).
Vodafone and Deloitte established a new strategic alliance presently to encourage the
implementation of determined based it through establishment of the Vodafone Centre for Health
with Deloitte. Its digital facility will combine Vodafone's linked health products with Deloitte's
healthcare staffing expertise, allowing many more individuals to exchange treatment from and
when they really need them. The strategic cooperation would see the two companies' media,
technological, and healthcare specialists collaborate to streamline accessibility to linked
healthcare and services for both healthcare providers and patients. The COVID-19 epidemic has
underlined the essential role of connection in delivering vital services like education and welfare.
Technologies may be made to produce medical care more economical for clinicians while also
making it even more accessible for consumers.

According to a new Vodafone Research study, 92 percent of European citizens believe
that the healthcare system requires immediate assistance through the European Rehabilitation
and Adaptation Strategy. The Vodafone Institute for Health, in collaboration with Deloitte, can
speed this assistance by technology and increased digitalization of healthcare in institutions,
community, and individuals' homes. Digitalization is a critical priority for the EU and countries
in their efforts to "reconstruct properly" in the wake of the epidemic (Kohl, 2021).
Partnership may also refer to at least two companies who make choices but collaborate
under an alliance arrangement. While businesses in this method provide flexibility to companies
in achieving their aims, they also appeal to typically fragile hierarchical defensive schemes due
to the absence of different levels – management. Although fundamental assets are transferred,
organizations engaged in partnerships grow extremely susceptible to each other in order to
comprehend their common and personal goals. This indicates that businesses should address the
problem of cooperation in a constructive way right now. This will help them identify any
tensions between collaborative efforts focused on wealth generation and competing forces
focused on brand equity.
Strategic Alliance is different from Mergers and Acquisitions thus:
Mergers, acquisitions and strategic alliances have become standard fare for modern corporate
leaders. Mergers and acquisitions have the ability to speed the implementation of a company
plan by quickly assisting a firm in expanding its goods or services mixture, moving into new
geographical or worldwide markets, capturing new consumers, or even eliminating a rival.
Merger and acquisition also enable firms acquire mobility, harness capabilities, work
collaboratively, and generate possibilities that might otherwise be impossible in this time of
profound and chaotic various measures by fast technical developments and an ever globalization.
Although their attractiveness, 75% of all mergers, acquisitions, and partnerships struggle to meet
their economic or financial goals. Numerous explanations have been proposed for this poor track
record, but study's results show that the people and institutional components of the procedure
wherein the partnership enterprises are incorporated are most important to main contributions
(Dombi, and et.al, 2021).