Business Environment Analysis Report - Vodafone Case Study

This report provides a comprehensive analysis of Vodafone's business environment. It delves into the purpose of different organizational types, focusing on private, public, government, voluntary, co-operative, and charity organizations. The report examines how Vodafone meets the objectives of various stakeholders, including owners, customers, suppliers, employees, debtors, creditors, financial institutions, environmental groups, and government agencies. It further explores Vodafone's organizational responsibilities and strategies for meeting objectives, including stakeholder interests, legal responsibilities, and environmental considerations. The report also analyzes economic systems, resource allocation, fiscal and monetary policies, competition policy, market structures, and the impact of international trade and European Union policies on Vodafone's operations. The analysis covers the determination of pricing and output decisions within market structures and how market forces shape organizational responses, alongside an examination of the cultural environment's influence on Vodafone's behavior.

BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1: The purpose of different type of organisation.................................................................1
1.2: Organisation meeting the objectives of different stakeholders ......................................2
1.3: The organisational responsibilities and strategies for meeting objectives......................4
TASK 2............................................................................................................................................5
2.1: The attempt by economic systems to allocate resources effectively...............................5
2.2: The impact of fiscal and monetary policy on organisations and their activities.............7
2.3: The impact of competition policy and other regulatory mechanism on the activities of
Vodafone ...............................................................................................................................8
TASK 3..........................................................................................................................................10
3.1: The determination of pricing and output decision of business through market structures10
3.2: The market forces shape organisational responses........................................................12
3.3: The business and cultural environment shape the behaviour of Vodafone...................14
TASK 4..........................................................................................................................................14
4.1: The significance of international trade on UK business organisation ..........................14
4.2: The impact of global factors on UK business organisations.........................................15
4.3: The impact of policies of the European union on UK's business organisations...........16
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................18

INTRODUCTION
The structure of the organisation depends on the environment in which they established.
The business environment can be defined as a combination of internal and external factors which
influence the decision of business. The business environment includes competitors, government,
supplier, consumer and various international factors. In this report, the organisation is chosen for
better understanding on business environment is Vodafone, a telecommunication company which
has its operations in various part of the world such as Africa, Asia and Europe . The company is
well known for providing services related to calling and internet in the market (Belás and et.al,
2014). Its success is based on various ventures through which company is providing services in
telecommunication sector. In this report, the purpose of various different of enterprise is
discussed. The propose of Vodafone is to provide effective and flexible services to their
customer at cheap price. For this they are considering various advance technologies. Along with
this they are trying to deal with diversified audiences. Along with this, impact of competition
policy and regulatory mechanism on business is also evaluated. Furthermore, ways in which
market forces influence the organizational responses is explained. Along with it, the impact of
European union policies on UK's firm also evaluated.
TASK 1
1.1: The purpose of different type of organisation
An organisation is considered as a formal structure of responsibilities, relationships and
authorities and with the help of this they achieved their specific objectives (Belás and et.al,
2014). The following is the description about the purpose of different type of organisation on the
basis of nature, mission, vision and goals:
Private company: It is the part of economic system of a country which is controlled by
companies and individual, rather than the government. The most of the private sector
organisation are running with the intention of making profit. Vodafone is a private sector
organisation and the profitability of the company is mainly based on the sales volume achieved
by the company. The mission and vision of the firm is becoming a market leader by offering
excellent quality of offers and services to customers. The objective of the organisation is
producing superior quality of products by providing good work condition to employee
(Niemann-Struweg, 2014).
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Public company: These company controlled by national, state or provincial and local
government. The main objective of this type of organisation is maximizing the amount of profit
and became handful in giving support in development of economy and provide better services to
people (Wolf, 2014). For instance, Ministry of Finance belongs to public sector and look after
the funds provided by the government.
Government companies: The overall objective of state owned or government companies
is to generate value, ensuring macroeconomic stability and regulating smooth flow of funds.
Vision is developing more competitive economy. The goals of this companies is maximizing the
revenue with socially acceptable standard (Smith, 2014).
Voluntary organisation: This type of companies are regular or occasional volunteers of
their operations. It is characterized as autonomy from the state, self-governance, work with
philanthropic approach, and formed with non for-profit orientation (Bagautdinova and et.al,
2014).
Co-operative companies: The major objective of this organisations is providing effective
services and products to users. Vision and objective of the co-operative organisations are
supporting to achieving the socio-economic goals of business.
Charity organisation: The major objective of charity organisations is making changes in
the life of community by providing them utmost help. The mission and vision of this companies
is providing better standard of living to the community. The vision is putting efforts on higher
level to accomplish the social service purpose (Belás and et.al, 2014).
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1.2: Organisation meeting the objectives of different stakeholders
The following is description about the ways by which Vodafone is meeting the objectives
of their different stakeholder:
Business objective: Vodafone's are providing their services in order to become multinational
telecommunication company. To achieve their objective they are sicked to their values and
culture of providing excellent services to their clients (Belás and et.al, 2014).
Owners: The owners are considered as one of the most important stakeholder of the company.
Owners can be individual, partners and a large number of shareholder. For instance, Vodafone
manage the objectives of owners as business is directly affect by their earnings and wealth.
Customers: Organisation need to fulfil the demand and need of the customer as the future
of company is totally depend on customer tastes (Marinescu, 2013). For example, Vodafone is
focused towards meeting the needs and wants of the customer for making better relations with
them.
Suppliers: Suppliers deliver the raw material to organisation. Companies have to look at
the terms and condition of suppliers so that mutual benefit can be attain. For the adequate
delivery of raw material primary is fulfilling the needs of the supplier.
Employees: Employees are considered as the most important stakeholders for any
organisation. They are the one who take care of day to day operations of companies (Klapper,
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Illustration 1: Stakeholder of an organisation
(Source: Stakeholder of organisation. 2016)

Love and Randall, 2015). For instance, Vodafone is trying to meeting the objectives of
employees by providing various monetary benefits to them.
Debtors: Debtors are considered as the stakeholder who owe money to the business. They
are typically those customers who have taken possession of services and goods from a firm but
yet not paid for them. For example, Vodafone is managing their debtors by providing them
invoice, easy procedure of payment and so on.
Creditors: These are those stakeholders who are owed money by the business. Basically,
creditors are supplier who delivered goods or services to the businesses and waiting for the
payment (Gani and Al-Abri, 2013). For instance, Vodafone meeting the objectives of creditors
by timely payment for their schemes and establishing effective communication channels with
them.
Financial institutions: Banks and other financial institutions give loan to the
organisation and in return they charge interest. For the purpose of meeting their objectives
Vodafone need to pay to financial institutions.
Environmental groups: The natural environment has wide range of affect due to
company business activities. By considering this organisation accepting the moral obligation for
saving the it (Belás and et.al, P., 2014). For instance, Vodafone is understanding their moral
obligations towards nature and avoiding the misuse of environmental resources.
Government agencies: Government agencies develop legislation in which business
should perform their activities. The main concerned area for this agency are taxation policy,
licensing, national income and protection of consumer rights.
Trade unions: Trade union plays very significant role as they are helpful in developing
effective communication between the workers and management. The organisation has wide
range of responsibilities for trade union (Niemann-Struweg, 2014).
1.3: The organisational responsibilities and strategies for meeting objectives
Stakeholders interest: Stakeholder are considered as the person who have interest,
ownership and right in the organisation and its activities. Here, stakeholders for Vodafone are
owners, customer, supplier, employee, debtors, creditors etc. Company have the responsibility to
forming a strategy which benefits all the stakeholders.
Conflict of expectations: When organisation is unable to fulfil the expectations of their
stakeholders, various conflict may arise. Here, Vodafone's objective in managing stakeholder
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expectations is to be able to achieve the needs of them and address relevant issue in timely
fashion (Wolf, 2014).
Power influence matrix: It is use by organisation in order to prioritize project
stakeholder on the basis of power and influence they have on the business. For example,
Vodafone use power influence grid to focusing on the key stakeholders who have power to make
or break the project.
Satisfying stakeholder objectives: Stakeholder must play a central role in organisation for
setting up priorities and objectives. Enterprise needs to develop their strategies in a way so that
every stakeholder involves in the development of business (Smith, 2014). For instance,
Vodafone is involving their stakeholder in the project and not considers them as direct
beneficiaries but let them take part in it.
Legal responsibilities: The following are the legal responsibilities for organisation: Consumer legislation- The organisation need to work by ensuring the right of consumers
and also organized their business with fair practises Employee legislation- It includes all kind of employment protection measures.
Organisation need to take care of all the employee related rules and regulation Equal opportunities- Organisation need to develop strategies which committed to provide
equal opportunities to all the stakeholders. Discrimination in opportunity distribution may
lead conflict situation Anti-discriminatory legislation- The anti-discriminatory legislation
related to the law which emphasis on treating all the stakeholder equally Environmental legislation- The environmental legislation need to be include in the
organisational strategies. It considered rules and regulation aimed at protecting the
environment from harmful actions (Bagautdinova and et.al, 2014) Health and safety legislation- The Health and safety at work act, 1974 need to be
adopted by organisations in order to ensuring the safety and welfare of their employee at
workplace.
Environment: The organisation such as Vodafone has responsibility towards
environmental issues. The product manufacturing process should be done in a way in which no
harm possesses to the it. Global warming in an international issue and organisation has to
maintain their operation to reduce it (Marinescu, 2013).
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Fair trade: It is essential for Vodafone to maintain fair trade practises. The right of the
customer, employees and other stakeholder need to be protected in context of trade practises.
Charter compliance: Charter compliance will be helpful for Vodafone in managing
compliance risks. It helps in monitoring the adequacy and effectiveness of compliance policies
and procedures guided by administration (Gani and Al-Abri, 2013).
In order to meet responsibilities, various strategies are being implemented by
organisation. Such as they are providing equal opportunities to their employees and investors so
that they can prove their ability (Belás and et.al, 2014). All the legal and environmental factors
are being effectively implemented. Various benefits related to health and safety is also provided
to employees. There are various strategies are also considered in order to protect rights of
customers and other who are connected with the organisation.
TASK 2
2.1: The attempt by economic systems to allocate resources effectively
Economic system: The economic system is considered as system for production through
which state or nation allocate their resources, dispersion of goods and services within the society
is known as economic system (Ahmed and et.al).
The main purpose of economies is determined the processes by which scarce resources
can be allocated for the purpose of satisfying the unlimited wants of the businesses. There are
three types of economic systems use widely for resource allocating resources:
Command economy: As per this economic system government decides about what
should be produced and in which quantity within the organisation. The price making decision is
also under the control of government. The primary government encountered with various issues
regarding planning for allocation of scarce resources (Chang, 2016).
What to produce- As per the preference of government it is determined that what is required to
produce?
How to produce- The process of production is determined by government
For whom to produce- It is also determined as per the preference of government.
Free economy: The free market economy is referred to where organisations are freely
select the area of business without any restriction from the government. The force of demand and
supply determined as per the price of goods and services.
What to produce- It is depend upon the preference of consumer.
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How to produce- As per the level of profit the production is determined.
For whom to produce- It is also determined on the basis of purchasing power.
Mixed economy: As per the mixed economy, it is a combination of either market and
economic planning. It is a mixture of command economy and free market economy.
What to produce- It is partially determined by the government and taste and preference of
customer.
How to produce- The procedure of production is by the producer who are looking for profit and
partly government
For whom to produce- It is also decide as per the purchasing power and government (Dutt and
et.al, 2016).
Vodafone belongs to free economic section, as all ,the area are selected by the
organisation , according to their convince. They are free form any kind of government
restrictions. Along with this they services and demands directly dependent of the clients and
profitability can be easily determined on the basis of clients preferences (Belás and et.al, 2014).
Under this system resources are being allocated by both government and organisation for
effective results.
2.2: The impact of fiscal and monetary policy on organisations and their activities
The monetary committee of UK and the bank of England fulfil the responsibility of
setting the monetary policy. They can set the interest rate by their own and it is important to
meeting the inflation target of government. The Bank of England includes various different range
of economic variables, which includes exchange rate index, economic growth, consumer
confidence etc. Vodafone also had this impact.
The impact of fiscal policy on organisation and their activities:
The fiscal policy is considered the government spending and taxation practices which is
having impact on every individual and business organisation. This is very essential for
companies to understand the fiscal policy and its implication:
Control on aggregate demand: The aggregate demand is referring as overall demand for
goods and services in economy. The fiscal policy is useful in minimizing the government
spending. The fiscal policy eliminates the negative shift in aggregate demand through stabilizing
employment among the government employee (Czakon and Rogalski, 2014).
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Central and local government spending: The central and government spending takes
place because of variety of reasons.
 To supplying the services and goods, mostly public goods which private sector failed to
do. It includes defence bridges and roads, schools and hospitals, welfare payments and
benefits etc. For the purpose of injecting additional spending into the macro economy and provide
training to improving labour productivity
Public sector net borrowing: It is considered as the measurement of fiscal surplus and the
deficits included with the amount of new debt created. If the number is shown positive then U.K
is running fiscal deficit while opposite will be considered as fiscal surplus (Ramadani, 2013).
Public sector net cash requirement: The PSNCR refers the amount which government
sector need to borrow, till and above the amount of collection of tax revenue and to finance
planned spending by government in a year. It also includes the borrowing by public
organisations.
Euro convergence criteria: It is also named as Maastricht criteria. It is considered as
criteria which is essential to meet for entering into third stage of economic and monetary union
by the European union member state. Organisation require to maintain the five different criteria
under this which are, HICP inflation, government budget deficit, Debt to GDP ratio, Exchange
rate stability and Long-term interest rates (Hajiheydari and Zarei, 2013).
The impact of monetary policy on organisation and their activities:
The monetary policy is a process handled by monetary authority of nation, through which
central bank and currency board control the money supply. Stable prices are defined by the
government by targeting interest and inflation rate.
Interest rates: The organisations need to adjust themselves with interest rates in order to
protect negative impact on the business. The monetary policy works for modifying the rate of
interest which companies need to adhere.
Quantitative easing: It is an unconventional monetary policy through which central bank
buy government and other securities from the market, for the purpose of lowering interest rates
and increase the supply of money. It is useful at the time of crisis as it manages the economy and
organisation are freely maintain their business (Beckers and Kloosterman, 2014).
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Private finance initiative: It is the way of developing public and private sector
partnership by provide funding to public project using private capital. In this, the private
company manage the up-front cost for completing the public-sector projects.
Impact of fiscal on Vodafone can be considered as various taxations are imposed. Along with
this changes are introduced into the policies also in order to increase revenue. Similarly, ,under
the monetary control related to financial activities are are provided to central bank and other
currency control board (Belás and et.al, 2014). This results into stable interests rates. It helps
Vodafone , in order to effectively manage their activities.
2.3: The impact of competition policy and other regulatory mechanism on the activities of
Vodafone
The competition policy and various other regulatory mechanism in the UK have impact
on the Vodafone business activities as follows:
Competition act 1998: The competition act 1998 consist various different activities
which are performed by Vodafone such as, Dominant organisation position on local or national
level, fixing the business terms and formation or operation of cartels. Vodafone never split their
market activities and not caters to any different sector (Nataraajan and G. Angur, 2014).
Competition commission: It is considered as non-departmental public body which is
taking responsibility for investigating mergers, market and various other enquiries associated
with regulated industries such as Vodafone in the UK. It is useful for company to assess that
merger will help them in reducing the competition or not and is it profitable for the company or
not.
Market structure of telecommunication industry is considered vary flexible and dynamic.
In order to meet needs and demands of clients, they are free to implement strategies accordingly.
With the help of various technologies they are able to provide effective services. Currently,
Vodafone is one of the leading telecommunication firm of UK (Belás and et.al, 2014). There are
various other companies are also available who are providing effective services such as BT/EE
and Telefonica company. According to the survey, both the companies are attracting clients
through various services such as Fixed and mobile offers, TV bundles and so on.
Office of fair trading: It is a non-for profit and non-ministerial department of the UK. It
is work as independent body and have a keen eye on market performance. It is useful for
9

Vodafone in order to trading and applying trading practises which are not against the consumer
interest (Sanz and Jones, 2013).
Sector regulators: There are several sector regulators are available in the regulatory
mechanism which have impact on Vodafone business activities:
 Ofgem- The office of gas and electricity market plays their role in regulating the
companies such as Vodafone as they run their gas and electricity networks.
 Ofwat- It is considered as water services regulation authority and having
responsibility for managing the privatised sewerage and water industry.
Civil aviation authority: It is directly and indirectly managing and regulate all the areas
of aviation in UK. They also work for issuing licenses, approvals and permits to organisations
throughout the aviation industry.
Companies act: It is an act passes by parliament of UK which is considering the primary
sources of UK companies law. This emphasis upon several common laws which companies and
directors need to adhere.
Regional policy: The emergence of UK regional policy takes place at the time of
economic depression. These policies provide assistant in acquiring grants and capital allowances
to companies like Vodafone (Golnam, Ritala and Wegmann, 2014).
Industrial policy: The industrial policies are encouraging the growth and development in
the manufacturing sectors as well as other sector within the economy. It is useful in enhancing
the capabilities and competitiveness of domestic industries.
Enterprise strategy: It is a form of strategy within an organisation. It has the huge impact
on Vodafone strategy formation process in order to deal with issues which affect the company as
a whole.
Training and skills policy: By including training and skills policy in each and every
department of Vodafone, they can achieve the aim of increasing the workers knowledge and
skills. The objective of this policy is enhancing the productivity and improving skills (Hoang,
Jung and Tran, 2014).
All the above mentioned competition policies are considered vary effective for the
growth of Vodafone. With the help of all these policies organisation is able to implement
effectively marketing strategies. Encouragement is also provided in order to expand and develop
business (Belás and et.al, 2014). Certain policies are also implemented for enhancing
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manufacturing capabilities of company. Through all these steps organisation is able to expand
and maximise profitability, by achieving objective their objective.
On the basis of above discussion, in order to achieve objective implementation of above
strategies are recommended. With the help of all these policies, Vodafone is able to reach to
implement effective market strategies, along with this various policies are considers for
manufacturing and economy. With the help of these steps they are able to reach their objective
effectively (Golnam, Ritala and Wegmann, 2014).
TASK 3
3.1: The determination of pricing and output decision of business through market structures
Market structure is the specification of the market, which affects the nature of price
policy and competition. It is the term through which business analyse the attributes of the
market. There are different types of market structure in which firm regulates or conduct its
business.
Perfect competition: A market in which there are different suppliers of the same product.
Strategy adopted by Vodafone is to lower the price of product in order to attract more customers
according to the demand of the customer's. By this, Vodafone is able to soar up its market share
(Vahlne and Johanson, 2013).
Monopoly: In this market structure, firm is the price maker and customers have no
alternative to purchase the same product with low price due to the single seller. So, in such a
market, Vodafone decided to increase its price to have more revenue and producing product in
greater scale to enjoy the advantage of operating in such a market.
Oligopoly: A market structure in which there are less number of suppliers of the same
product and they do not have much control over the price. In this market, Vodafone concluded to
decide the price of product as per the demand of product by the consumer. It depends on the
quantity of purchase.
Monopolistic competition: Also known as the Imperfect competition, in which there are
large number of sellers selling different products with different price. Vodafone in such a
competition decided to offer such benefits (brand and quality) to buyer to persuade him, in order
11

to purchase from Vodafone store. Product differentiate and price differentiate are major
advantages of the firm (De Villa, Rajwani and Lawton, 2015).
Duopoly: It is the market structure which comes under oligopoly, where number seller is
only two. Strategy of Vodafone as a independent seller in such a market is to dominant market
by covering most of the part of the market.
Vodafone's considers oligopoly marketing structure. In this structuring organisations are
provided with limited control over pricing and most of the dealers are providing services at same
rate. Through implementing this marketing strategies into their organisation, Vodafone's is able
to expand their business faster (Golnam, Ritala and Wegmann, 2014). They are listed as largest
telecom industry of UK. Along with this they are able to expand their business in more than 30
countries and having more than 40 networking partners.
Through implementing oligopoly marketing structure on Vodafone's, huge impact on the
pricing can be noticed. Such as their market share is increased up to 25%. The overall
concentration ratio of telecom sector of UK is increased up to 89%. Therefore, consideration of
oligopoly marketing structure into company is one the effective strategy of company. With the
help of this they are able to improve branding of product, due to which their products are
preferred by most most of the clients. It helps the organisation in order to increase profitability
and create positive impact on the financial unit of company (Golnam, Ritala and Wegmann,
2014).
Initially, the organisation find lots of difficulties in order to implement. As Vodafone's os
considered as largest telecom company of UK. Therefore implementation at large extend was
difficult. After, sometime firm was able to increase profitability and also able to attract more
clients. During this period various effective products are being launched by company such as
prepaid, postpaid, mobile number portability and son on (Golnam, Ritala and Wegmann, 2014).
Along with this they are also enhancing their services thorough 3G and 4G network and faster
internet form. With the help of all these steps they are able to attract clients easily.
3.2: The market forces shape organisational responses
Market forces: The market forces considered as forces of supply and demand effect on
the price and quantity of products. Demand is referred to willingness of buyers to purchase a
particular goods with specific price. The demand for the particular product can be figure out by
conducting survey for evaluating the market condition. The demand market force is useful for
12

organisations in order to assessing the amount which a particular customer wants for a product.
Other than demand, supply is another force with shapes the organisational responses. It is
concerning with availability of total amount of specific goods for customers (Rosenbusch, Rauch
and Bausch, 2013).
Law of demand: It is considered as microeconomic law which defines, all other factors
being equal as per the price of goods or services increases the demand of the consumer for goods
and services will decrease and vice-versa. It states that the higher the price of the product the
lower the demanded quantity. It is important for Vodafone to take law of demand into
consideration for understanding the demand of the product (Leonidou and et.al, 2017).
Law of supply: This is also a microeconomic law which defines that, all other factors
being equal, as the price of goods or services increases, the amount of goods and services offers
by supplier will also maximize and vice-versa. It states that the price of an item increase, supplier
tries to enhance their profits by increase the supply of the product for sale of Vodafone.
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Illustration 2: Law of demand
(Source:Law of demand, 2016)

Relations Between demand and supply: The requirement of product in the market is
considered as demand whereas the number of goods provided by the organisation is known as
supply. For instance, It the market require the products manufactured by Vodafone then it is
demand whereas company provides the require number of products will know as supply. There is
another consequence which takes place regarding the relationship between supply and demand.
Equilibrium refers to price on which the quantity demanded is equal to quantity, which can be
determined by the intersection point of demand and supply curve (Chang, 2016).
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Illustration 3: Law of supply
(Source: Law of supply, 2016)
Illustration 4: Equilibrium
(Source: Relationship between demand and
supply)

3.3: The business and cultural environment shape the behaviour of Vodafone
Impact of Socio-culture environment on Vodafone: The business activities of Vodafone
is largely depended on the factors associated with cultural environment. The cultures and
traditions exist in a specific geographical location has a huge impact on company working
environment. The rules and regulation form and followed by each society because it is important
for organisation to comply with all the member and customer lies in specific community.
Vodafone also offering different range of products for Men as well as Women's. The demand for
the product differ as per the place and in different geographical locations consumer demand
different type of products (Dutt and et.al, 2016).
Impact of business environment on Vodafone: The Vodafone offers different various
different type of products as per the preference and choice of consumer on the basis of gender, ,
age group. The external environmental factors, political, social, technological, environmental,
and legal have impact on Vodafone business activities on a huge extent. It also impacts on the
organisational culture due to which the overall performance of the workers also gets influenced.
The rules and regulations formed by the director and top management lead Vodafone to achieve
their objective in a proper manner. Skills, knowledge, attitude and behaviour of workers are
considered as factor of internal business environment and plays significant role in overall
implementation of organisational functions (Czakon and Rogalski, 2014).
On the basis of above report, there are various factors that are considered essential, in
order to reach objective. Such as by implementing technological factor, they arec able to meet
needs of clients effectively. With the help of environmental factor ,they are able to maintain
their image into market. Through socio-culture, they are able to understand needs and demands
of clients (Golnam, Ritala and Wegmann, 2014). These all strategies help the organisation, for
achieving their objectives.
TASK 4
4.1: The significance of international trade on UK business organisation
The international trade is one of the most important feature of UK economy. In this
products and services are transferred from one country to another. The following is the
illustration about significance of international trade:
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World trade organisation: It works for developing a fair deal between companies and
their customers. It established various rules and regulations so that organisation can carry out
their business activities in systematic manner.
Market opportunities and global growth: The organisations such as Vodafone can
expand their business activities where they can generate more profit. Transfer goods and services
leads to growth of an organisation on a global level. Emerging markets economies such as
Brazil, Russia, India and China are considered as great opportunities (Ramadani, 2013).
EU membership, business regulations and their incorporation in UK law: The BREXIT
was the significant event which influence the overall business regulations and their interrelation
with UK law. The result of BREXIT is, in present need to paid tariff charges which increase the
cost for products.
High competition: International trade increase the level of competition in global market.
There are various similar companies compete with each other which resulted fluctuation in prices
(Hajiheydari and Zarei, 2013).
International trades consists of various negative impact also. Such as due to increasing
marketing competencies, local companies would not be able to expand their market. This results
into economic factor and growth of company (Golnam, Ritala and Wegmann, 2014). Along with
this lots of international companies may have considered illegal approaches, due to which
various protection issues get arises for the state.
4.2: The impact of global factors on UK business organisations
The global factors have following impact on UK's business organisation:
Social factors: The social structure differ in each country, people behaviours,
preferences, way of living is totally different on the basis of geographical location. The business
organisation should develop their enterprise activities accordingly.
Legal and Political factors: New laws and regulation in the global market assist business
organisation in order to expand their business. Companies should be able to adopt the change
which occurring in the legal procedure (Nataraajan and G. Angur, 2014).
Economic factor: Economic factor influence the living standard of the people. Wage
rates, interest rates largely influence by economic events.
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Technological factor: New innovation strategies can be profitable for the business
organisation. The success depends on the use of technology at the global level (Sanz, and Jones,
2013).
In order to exchange goods, services and capitals into international market various
charges are implemented known as international trades. They are considered essential in order to
increase gross development of any country (Golnam, Ritala and Wegmann, 2014). Vodafone's
are also facing various international trading system, while providing their services at global
platform.
On the basis of above factors, impact on Vodafone is considered as social factors help the
organisation in order to understand demand and needs of customers. Legal factors enable
organisation, to understand policies for expanding business effectively. Economic factors helps
the organisation in order to improve their image into market and attract huge number of clients.
With the help of technological factor they are able to implement advance techniques and increase
profitability (Leonidou and et.al, 2017).
4.3: The impact of policies of the European union on UK's business organisations
Rio earth summit: The Rio earth summit has significant impact on UK's business
organisation. As the policies states that Production pattern, use of sources should be in an
appropriate manner, so that no harm cause to the environment.
Kyoto protocol: It was the agreement between the nations, in which it is necessary to
reduce the greenhouse gas emission country to country. The industries have to follow the
policies and cut and reduce the amount of carbon emission produce by them (Vahlne and
Johanson, 2013).
Exchange rates: The exchange rates are also having the impact as if the rate is less then
economy will fall because Euro currency is use for the trading activities.
Global financial stability: The global financial system is a legal agreement which
facilitates the international flow of financial capital. It impacts the financial factors from which
UK's organisations are dealing with. The G-20 summit is promoting the international financial
stability with the cooperation of global leaders, business and major economies (Leonidou and
et.al, 2017).
17

On the basis of above discussion, various policies had created huge impact on the growth,
employment, and competition of Vodafone's. Such as they are providing a fix pattern, by strictly
following that pattern, negative impact on nature can be controlled. With the help of exchange
rate activities, they are able to bring stability into organisation, which leads to effective work
force into organisation. Therefore, in order to achieve objective these policies are considered
vary important (Leonidou and et.al, 2017).
In order to reach objective effectively, all the above polices are recommended for
Vodafone. With the help of these arguments they are able to maintain their brand value into
market, which directly impact on the growth and profitability of company. Along with this it also
provides stable exchange rates, with the help of that they are able to make strategies in order to
maximise revenue generation (Leonidou and et.al, 2017).
Positive and negative effect of European union policies.
Under this policy various telecommunication services are regulated by government.
They are considered as positive because with the help of them companies are able to expand
their business. Along with this various research related supports are able provided through this
policy. As a results complexity of the process gradually decreased and demand of services get
increased. Along with this various negative impact is also considered regarding the pricing of the
services. As implementation complexity get reduced. Number of competitors get increased.
Therefore, demands of service also get increased.
Business competition: There are various competitors are available such as British Rail
Telecommunication network, National telephone company, British Telecom and so on they all
are considered as reputed and large telecommunication industries of UK. They are having
significant impact on the people of UK through their quality of services and offers. In ordre to
attract more number of customers, Vodafone should consider advance technologies in order to
attract them.
Growth: According to the various researches growth of telecommunication sector is dependent
on the services provided to their clients. Along with this their network and offers are also very
important in order to attract customers. Telecommunication market is focussing on the effective
internet access along with prices. For this various new technologies are also considered in order
to reduce network traffic and noise.
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Employment: This is considered as one of the fastest growing and high revenue generating
sector. Therefore, it is also able to generate various job opportunities. They are having various
outlets and also provides dealership easily. With the help of this job opportunities are
automatically get increased.
Environment: Services provided by telecommunication industry does not create any kind of
harmful effect on nature. Radiations that are being released during communication process are
not create any harmful impact on nature and also do not disturbs ecosystem.
CONCLUSION
Summing up the present report it can be concluded that the environment of the business
affects the overall functioning of company. There are various different types of business which
belong to Public sector, private sector and voluntary sector. The enterprise has several types of
stakeholder which influence the decision-making process. The organisation requires to fulfil
various different types of responsibilities which includes Stakeholders interest, Conflict of
expectations, Satisfying stakeholder objectives etc. The existence of markets is also distributed
as Perfect competition, Monopoly, Oligopoly, Duopoly etc. It is important for organisations to
study market type before forming any strategies. The global factors such as international trades
and economy of UK influence the organisations flow of working.
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