Importance of PESTEL Analysis for Business Organization

Case Study

Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Overview of Vodafone PLC........................................................................................................3
History and organizational structure of Vodafone PLC..............................................................3
Ways in which company is governed..........................................................................................4
Task 2...............................................................................................................................................6
Importance of PESTEL analysis of business organization..........................................................6
Task 3...............................................................................................................................................7
PESTLE analysis.........................................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Effective Business environment is most important term in organization. Business
environment includes many forces and factors that affect business ability to maintain and build
successful customer relationship. It involves all internal and external factors that affect the
company’s functions involving customer, employees, management, business regulations and
demand and supply. Business environment has various types such as cultural and social
environment, technological environment, legal and political environment etc. All the factors
collectively affect the business performances and functions. Vodafone is a multinational British
telecommunications company. Its headquarters in London, England. Vodafone’s registered office
at England, Newbury, Berkshire. This report will include the structure of the company and its all
management activities. This report will also highlight the importance of PESTEL analysis for the
business organization. This report will also state about the framework of PESTEL with analysis
of external environment of Vodafone PLC.
TASK 1
Overview of Vodafone PLC
Vodafone is a multinational British telecommunication company that was founded in
1991, whole headquarter is in London, England, UK. They provide their services in Africa, Asia,
Europe and Oceania. According to a recent survey, Vodafone was ranked as number one
organization in terms of number of mobile customers (Wei, 2019). Vodafone PLC has partner
networks in approximately 47 countries. They have employed approximately 99,000 employees
working for them. It is a public limited company that has been listed on the London Stock
exchange.
History and organizational structure of Vodafone PLC
Evolution of Vodafone was done in 1982 when Racal Strategic Radio Ltd was
established, which is UK's largest military radio technology maker. Today they are known as as
Vodafone. In 1991 Racal Strategic Radio Ltd was renamed as Vodafone group whose CEO was
Gerry Whent. The name Vodafone comes from voice data fone. This name was chosen by the
company so that they can reflect provision of data and voice service over mobile phones. In 1996
Vodafone PLC owned two- third shares of Talkland and in 1997 they owned people’s phone.
First merger of Vodafone occurred in 1999 when they purchased Airtouch Plc. After that
Vodafone agreed to merge their US wireless assists with one of Bell Atlantic Corp in order to
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form version wireless. Then in 2000 they made one of the largest mergers with Mannesmann.
This merger was approved by EU when Vodafone agreed to divest the 'Orange' brand, which was
acquired in May 2000 by France Telecom (Rodrigues, 2019). Due to mergers and acquisitions
Vodafone brought changes within their organizational structure in order to process the changes
positively.
In 2005 they announced new organizational structure so that they can focus upon their
customers in local market, enhance their ability to deliver fast service and for simplifying
decision making. They have high level of centralization within their current structure in which
board of Vodafone are the ultimate decision makers. All the companies that have been acquitted
by Vodafone do not enjoy any legal power. Mergers and acquisition done by Vodafone till now
has helped them to grow their business exponentially and has helped them to operate and manage
their business at international level.
Ways in which company is governed
Vodafone PLC is governed by their Board of directors. They have a hierarchical structure.
Their Board comprises of Chairman, Senior Independent Director, nine Non- Executive
Directors, the Chief Executive and the Chief Financial Officer (Vodafone Corporate governance.
2020). All the nine non- executive Directors helps in bringing wide and varied commercial
experience to the Board and Committees. All the committee members of Vodafone PLC are
responsible for maintaining effective governance in relation to Board composition and
succession planning, Audit and risk, Corporate governance and Remuneration.
This board is chaired by Vittorio Colao, the Executive Committee who majorly focuses
upon managing Vodafone’s business affairs which includes delivery of a competitive strategy,
developing our financial structure and planning, driving financial performance and ensuring
good succession planning and talent pipeline. Vittorio Colao is a chief executive director whose
tenure is of 11 years. He has also been appointed as – European Round Table of Industrialists as
vice chairmen and non-executive director and chair of the compensation committee at Unilever
PLC. He has been appointed as chief executive director because he has an experience of 20 years
working in telecommunication industry (Vodafone Corporate governance. 2020). Gerard
Kleisterlee is the current Chairman, Independent on appointment whose tenure 7 years. He has
helped Vodafone in bringing understanding of the consumer electronics, technology and lifestyle
industries that he has gained from his career with Philips Electronics spanning over 30 years. He
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