Analysis of EE Limited's Business in a Global Context

This report provides a comprehensive analysis of EE Limited, a British multinational telecommunications company. It begins with an introduction to business organization and environment in a global context, emphasizing globalization and its impact on companies. The report then details background information on EE Limited, including its history, services, and expansion plans, particularly its interest in the Hungarian market. A key focus is on the Foreign Direct Investment (FDI) opportunities for EE in Hungary, highlighting the benefits of a skilled workforce and favorable market policies. The report uses PESTLE analysis to assess the Hungarian business environment, examining economic, socio-cultural, political, legal, and financial factors. Finally, it applies Porter's Five Forces model to analyze the competitive landscape of the telecommunications industry, assessing the bargaining power of customers and suppliers, the threat of new entrants, and competitive rivalry, providing insights into EE Limited's strategic position and challenges. The report concludes with a discussion of the company's strengths and weaknesses, offering recommendations for future growth and success.

BUSINESS ORGANISATION AND
ENVIRONMENT IN A GLOBAL
CONTEXT

Table of Contents
INTRODUCTION...........................................................................................................................1
INFORMATION OF THE EE BUSINESS ORGANISATION:....................................................1
BACKGROUND INFORMATION OF EE COMPANY:..............................................................2
BUSINESS ENVIRONMENT........................................................................................................3
ANALYSIS OF EE LIMITED .......................................................................................................5
CONCLUSION................................................................................................................................7
REFERENCE:..................................................................................................................................8

INTRODUCTION
Business organisation and environment is a system that will affect work beyond the
organisation boundaries. In the organisation expand business in other country so the company
interact among the different country. Nowadays, the organisations face globalisation issue. It is a
common issue so the company follow the process to removing the problems and connecting
people, idea and things in the world. The company EE limited is a British multinational company
that provide telecommunication services to its customers. for improve company profitability and
customers attraction the company use new strategy and polices. report will analyse and highlight
information of EE business, company business environment and analyse business senior of the
EE limited business and opportunity of company there the FDI.
Information on EE
The company EE expand the business from UK TO HUNGRY. So the company want to
analyse and remove barriers of the business. EE is a multinational company that provide mobile
technology services. the company EE provide mobile network operators internet services and
other mobile app or division of BT group related services. The company EE is provide
telecommunication related services and product the company founded in 2010 at
England(Zander, I. McDougall-Covin, P and Rose, E.L,). In 2009 the company start
planning for establish business in join venture and generate revenue. the company starts business
that time company revenue around 7.7 billion pound. company invest 600 to 800 pounds for
develop company business. the company starts business for providing customer best networking
facility. In 2012, the company announced that EE brand were start to use Orange and T- mobile
network division. the company provide there customer 4G services, fibre optic broadband roll
out for provide super fast services. the company name Everywhere and Everything was
announced that company was start providing services.
In 2013 the company start testing LTE Advance in the East London and 2014 the
company Launch LTE services. In 2018 the company launch first UK smart number technology
and allow the customer to use one number card in many systems and phone (Welford, 2016).
The company provides these new services costumer new and existing customer at free of
cost because the company want to develop company services facility and services for customer
use the free additional services that will be part of company strategy. Now company provide
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there customer larger and most advance digital communication services. the company have
approximate 553 store and 31 million connection in mobile and network services. In Broadband
services company provide its services to around 9000000 customers. . Now the company want to
expand there business in the HUNGRY And the company have now analysed market condition
and make strategy for make customer attraction. The company has foreign direct investment
(FDI) opportunity for develop business in the other country. EE company has developed
opportunity to manage high capital stock in FDI. Hunger foreign direct investment attractive
market polices and strategy if company invest in FDI that time company make a large number of
profit. the FDI help company to hire highly educated and skill employee in a particular filed
(Kirton and Trebilcock, 2017).
In the hungry country labour force is cheap so the company have to no problem hire
lobar and other of labour related problem . The PESTLE Analysis help company to analyse its
business and how to develop company strategy and making company profit throw the FDI help.
the FDI develop company EE export sector business and increase attention to research and
development of business in the country. FDI make opportunity for develop and mange critical
emerging market issue. Throw FDI the company develop funding and international sales or
provide investment infrastructure, energy improve employment and wages. The EE company
expand there business. the company make research and analyse for customer demand and how to
develop company business in the HUNGER. The company has many opportunities for develop
business threw the FDI in the new market. the FDI help company to provide labour and reduce
manufacturing cost(Hakansson, 2015.). because FDI provide company benefit to develop
company business in new market. The company EE stablish in the market of HUNGRY business
that will be provide company work opportunities and generate revenue business. Company have
many types of services that will attract customer to use company series and company also
provide there customer use large scale services.
BACKGROUND INFORMATION OF EE COMPANY:
The company EE is providing telecommunication services to its customers and company
work in UK market to develop networking services and make company devices the company
provide there customer EE, Orange and T- Mobile brand services. The company has also
provided its customer fibre optic broadband roll-out services. According to company size the
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company work in BT group and it is large and give most communication services that company.
The company has 553 retail store in British the company have 12.5 British customer and total
30.04 million customer.
EE company's financial statement shows about its position in the market. According to
finical stalemate the company financial condition is good the company generate every year profit
more than last year so the company have to option for expand there business in other country.
The company prepares financial statement according to company Financial reporting stander.
BT group is a single group that supply communication services and product in UK market.
Company work at large level in the telecommunication market company size large and now there
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Illustration 1: Market share
source : Market share held by mobile operators in the United Kingdom, 2017
The financial condition of EE limited is good. According to digram BT group
growth high. BT group (EE limited) major competitor is O2 and Vodafone.
New competitor is tak talk and Vrigian mobile.

company will expand there business in the HUNGER. The company work for provide there
customer networking the best facility and generate revenue.
In current international business operations, the company provide customer supply chain
management services, trade services and it also provides there customer best networking facility.
The company has many opportunities to develop business in the international market so the
company provide there employee work and proving the best facility and services. Current
business operation improve company services efficiency and innovation in the product.
Operation will reduce market fluctuations that will help company to manage company facility
and services. In the current business operation the company develop company productive and
profitability so the company have many opportunities for develop company demand and supply
chain management. EE company's current business operation main goal is to developed
economic values and engaging international trade translation. the company in the international
market primary work is the research and develop networking and other product facility and
improve company marketing sales. The company ownership structure define company
shareholder list and company partners that will own the business and make plan for the run
business in long term(Forsgren and Johanson, 2014).
BUSINESS ENVIRONMENT
Business environment is the surrounding in which an organisation operates and which is
affected by the different macro environmental factors such as economic, socio cultural, political,
legal and financial systems. Scanning of the business environment of Hungary is given below:
Economic environment: Hungary's economic environment is steady and is more
favourable for business houses to conduct their business operations, it provides solid
infrastructures and business related facilities to the business organisations especially to the multi-
national companies for attracting more foreign direct investment (Hamilton, and Webster, 2018).
EE Limited gets the more liberal business environment in respect of liberal policies of trade and
investment. Country's economic conditions like high per capita income, growing GDP rate, low
inflation rate, declining unemployment rate are some indicators which encourages the
telecommunication operator to expand its business in Hungary.
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The unemployment rate in last few years is showing a declining trend which has
contributed in increasing the economic growth rate of the country. Unemployment rate in the
year 2017 is 4.33% which is less than previous year's rate. Low unemployment rate prevailing in
Hungary is depicting the stable economic conditions which fit the decision of EE limited to grow
and expand its business operation in the country.
Socio cultural factors: Hungary is a culturally diversified country and it consists of
different cultures such as Romany, German, local Magyar. Country enjoys the reputation of
being one of the most literate state. This factor will favour the business operations of EE
company as they would get qualified workforce for the proposed venture in the country. Skilled
and qualified workforce will helps EE in running its business operations smoothly and
effectively in Hungarian market.
Political conditions: After the country's inclusion in European union, Hungary continues
to improve its economic conditions which was due to the stable political environment in the
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Illust
ration 2: unemployment rate from 2007 – 2017
source : Hungary: Unemployment rate from 2007 to 2017, 2018

country. Government of Hungary is stable and more opinion of attracting FDI in the country and
it accordingly formulates its policies in the favour of multinational enterprises to generate more
income in the country by utilising its competent resources like skilled workforce, efficient
business infrastructures etc. EE Limited would enjoy the government's favourable attitude
towards the MNEs and would attract minimal government interference if it decides to operate
there. Hungary is also active member in the world's biggest institutions such as IMF, WTO, EU,
NATO which altogether makes country's political and economic environment stable which in
turn has led to increasing FDI in Hungary(Gonzalez-Loureiro, Dabic and Kiessling, 2015.).
Legal environment: Hungary has strict bribery laws which makes the country fair in its
business environment however, country have corruption issues at the administrative level of
which is a potential risk for EE Ltd. Moreover, labour laws and wages act provide an
encouragement to the FDI making companies like EE limited to start their business in Hungary.
Financial systems: Hungary's financial system include its financial markets like capital
market, financial institutions such as banks, FDI institutions, investment banks, financial services
providers etc. The banking sector of the country has shown stability in the recent few years. The
financial market infrastructure is fairly good when compared to the other emerging EU states.
Financial service providers like insurance companies, government etc., have formed well
furnished policies and programs for bringing more foreign direct investment in the country. This
is a good sign for EE limited to expand its operations in the proposed country.
ANALYSIS OF EE LIMITED
EE limited, a telecommunication operator and internet service provider in the UK, is one
of the largest mobile network operator who has an ample opportunity to expand its business
overseas.
Porter's five model is used for analysing the external factors that affect the business
operations of an organisation. It has various components through which the forces are
determined, the degree to which they affect the organisation. This basically reveals the
competitive force of the market.
Bargaining power of the customers: The customers groups in this industry is very huge
as compared to the number of service provider(Chua and Ng, 2017). This factor has the low
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force in relation to price sensitivity. Customers can do much about the change in the prices of the
services provided by the company.
However, the customers in the developed market of Hungary are very demanding.
Customer.
Bargaining power of suppliers: There are various suppliers from where the company
purchases its raw materials. However, there are not many suppliers in the telecom industry of
Hungary which makes the position of the suppliers at the superior level. The force is high which
will affect the supply chain strategies of the EE significantly. This dominant position helps the
suppliers to charge different prices of raw materials from companies which are operating in
telecommunication sector.
EE can use its existing suppliers which are reliable for expanding the business in
Hungary. Experiencing new suppliers will give the opportunity to EE to ,make its supply chain
more effective in Hungary.
Threat of new entrants: There are too many entry barriers in this telecom industry like
regulations and tariffs laws, government intervention in the operations, huge capital investment
for setting up the telecom company etc. The company have opportunity to make its presence felt
in the international market without the fear of losing market share in the potential investment
country in the long run. However, there are new technologies evolving so rapidly which could be
a serious threat to the company as a more technology orientated company at anytime can start
providing such innovative services to the customers which can hamper the profitability of the
EE(Aithal, 2017).
Threat of Substitutes: EE have high substitute threat. There are different telecom operators
providing same types of services in the Hungarian market so in case if the services which will be
offered by the EE limited are very costly and are not satisfactory, customers would have the
availability of number of substitutes present in the local market. Considering this issue, EE
should provide services which meets the customers demands such as cheap call rates, high
internet speed at the most reasonable prices, various offers and discounts etc., as this will help
the company to attract major customer base in the Hungary's telecom market. Company have
opportunity to attract the customers by serving them what they need.
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Rival firms: Telecom service provider EE faces very intense competition in the industry.
As there are fewer firms in this industry of the Hungary, existing companies providing same
services will give stiff competition to the new entrants. This force is very high. Globally
renowned Vodafone is already present in the Hungarian market which has market share of
almost 22%, Magyar telecom being the largest capture of market with 47.4% and Telenor with
29%are the main three competitors, EE would face in the intense competition from these brands.
To beat the competition, company will have to make its services largely differentiated from the
already existing services of rivalry firms(Hungary’s big three still dominate telecom
market,2016). This will provides an opportunity to firm in terms of gaining high competitive
advantage in market over the rivals.
CONCLUSION
From the above project report, it has been concluded that expanding the business in other
country requires a lot market research of the proposed country. Competitive analysis were
conducted in the report which supported the decision of expanding the business in Hungary. The
above report laid its emphasis on EE a telecom operator of UK, expanding its operations in the
Hungary. The study covered the detailed information about the EE company, a detailed
environment scanning of the Hungary was conducted taking into considerations economic,
political , legal, financial aspects of the country which showed the favourable business
environment for the firm with some amount of political risk. A competitive analysis showed
various opportunities for the EE company that could be materialised by the company which
would make the expansion plan into a successful venture of the EE limited.
RECOMMENDATION
The report showed that Hungary's political stability and favourable economic conditions
is giving good sign of opening its venture in the country.
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REFERENCE:
Books and jhournal:
Aithal, P. S., 2017. Impact of Domestic, Foreign, and Global Environments on International
Business Decisions of Multinational Firms: A Systematic Study.
Chua, R. Y. and Ng, K. Y., 2017. Not just how much you know: Interactional effect of cultural
knowledge and metacognition on creativity in a global context. Management and
Organization Review. 13(2). pp.281-300.
Forsgren M. and Johanson, J, 2014.Managing networks in international business. Routledge.
Gonzalez-Loureiro, M., Dabic, M. and Kiessling, T, 2015. Supply chain management as the key
to a firm’s strategy in the global marketplace: Trends and research agenda. International
Journal of Physical Distribution & Logistics Management. 45(1/2). pp.159-181.
Hakansson, H, 2015.Industrial Technological Development (Routledge Revivals): A Network
Approach. Routledge.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Kirton, J.J and Trebilcock, M.J, 2017.Hard choices, soft law: Voluntary standards in global trade,
environment and social governance. Routledge.
Welford, R, 2016.Corporate environmental management 3: Towards sustainable development.
Routledge.
Zander, I. McDougall-Covin, P and Rose, E.L, 2015. Born globals and international business:
Evolution of a field of research. Journal of International Business Studies.46(1). pp.27-35.
ONLINE
.market share [online]. Available through < https://www.statista.com/statistics/375986/market-share-held-
by-mobile-phone-operators-united-kingdom-uk/>
Hungary’s big three still dominate telecom market.2016. [Online]. Available through
<https://bbj.hu/special-report/hungarys-big-three-still-dominate-telecom-market_123750>
unemployment rate 2017. [online]. Available through
<https://www.statista.com/statistics/339859/unemployment-rate-in-hungary/>
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