Global Business Environment: Analysis of Vodafone's Operations

This report provides a comprehensive analysis of Vodafone's global business environment. It begins by examining the key drivers of globalization, including technological, political, market, cost, and competitive factors, and critically analyzes their impact in terms of benefits and challenges. The report then delves into the strategic challenges Vodafone faces, such as managing employee immigration, ethical business practices, organizational structure, leadership, and regulatory and legal frameworks, particularly concerning risk, diversification, and supply chain management. The influence of globalization on Vodafone's organizational structure, function, and culture is explored, along with the impact on corporate governance and decision-making. The report also investigates strategies for entering global markets, including recommendations for overcoming barriers and concludes with a critical evaluation of the key barriers of globalization and some recommendations.

GLOBAL BUSINESS
ENVIRONMENT

Table of Contents
TASK/ACTIVITY 1........................................................................................................................3
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
P1- Analysis of key drivers of globalisation ...............................................................................3
M1- Critical analysis and its impact in terms of bneefits and challenges ...................................4
P2-Complexities of Strategic challenges ....................................................................................5
M2- Critical analysis of strategic challenges caused by globalisation on risk, diversifiication
and supply chain .........................................................................................................................6
TASK /ACTIVITY2........................................................................................................................7
P3- Influence of globalisation on organisation............................................................................7
M3- Critical evaluation of global market influence using appropriate theories and models .....8
P4- Influence of ethics and golbal sustainability on organisational function..............................9
P5- Different ways of decision making in global context..........................................................10
P6- Strategies to enter into global market & Recommendations ..............................................11
M4- Critical evaluation of key barriers of globalisation and some recommendations ............12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

TASK/ACTIVITY 1
INTRODUCTION
Globalisation refers to process of integration and interaction among various companies,
people and governments all across the world. It refers to expansion of markets globally to
liberalize economic activities of companies in exchanging goods and services. This increases
global interactions which in turn result in growth in international market and helps in exchanging
of culture and ideas. Vodafone is a multinational company based out of britain. It is one of the
largest techcomm providers which bring connectivity to millions of people all across the world.
Present report will address to various key factors that drive globalisation, will brief on various
complexities which is associated with operating in global environment. It will also briwef on
how globalisation affects structure, culture and function of copmpany and will brief on how it
influences decision making and strategy in company.
MAIN BODY
P1- Analysis of key drivers of globalisation
Major drivers of globalisation for Vodafone includes:
Technoloical drivers – It states that technology for Vodafone has shaped the way for modern
globalisation. Continuos innovation in technology has revolutionized global markets for the
company. Inventions in technology has highly enabled communication at low cost level and
helps company in ensuring its global presence all across world. With latest techmology drivers it
has created global business of vodafone more efficient and effective.

Political drivers- With the liberalised follow up of trading rules and regulation and ensuring its
business process accordingly it has ensured deregulated markets has lead to lower tariifs and
allows Vodafone to make foreign direct investment all across world. It relates to reducing and
eliminating barriers to trade business of Vodafone. It is the framework which helps company in
deciding whether cross border transactions are facilitated, or made more difficult and are
completely prohibited or restricted for Vodafone (Tontus,Nebioglu, 2018). The extend to which
political decision are shaped helps in promoting business of vodafone in terms of cross-border
interconnections.
Market drivers- As a result of domestic markets becoming more & more saturated, the
opportunities for growth of business is limited where Vodafone by expanding into new markets
globally choose to overcome this hurdle and ensure its brand availability all across and ensures
smooth functioning of its business operations. It helps company in identifying common needs of
customers and helps in choosing the opportunity to choose right global channel of marketing
which helps company in deriving the benfit of globalisation in terms of higher sales volume,
profitability and various other measures.
Cost drivers- Sourcing various efficiency from different parts of world helps Vodafone to grow
its business rapidly as cost varies from countries to countries where firm can take full advantage
of the same and can gain competitive advantage to win in marketplace. Cost drivers in
globalisation helps company in ensuring opportunities to build international scale economies
where its products and services can encounter to cost which its customers are willing to pay
which helps company in terms of deriving customer satisfaction and retention.
Competitive drivers- With inception of globalisation, it has resulted in increasing inter-
firmBaru, Mohan, 2018 competition where vodafone competes internationally. It helps in
ensuring and considering factors such as imports and exports that form basis of sales of company
in comparison with its competitors and helps in defining areas where strategies need to be build
to compete with its competitors in marketplace and to innovate and implement thing which
results in beating market of its competitors and helping vodafone to retain and gain its
dominating position in market (Baru, Mohan, 2018).
M1- Critical analysis and its impact in terms of bneefits and challenges
Through this drivers company helps in embibing new cutlure, beliefs which helps in free
of flow of information, enabling effective building up relationship between employees and

various other parties to business operation, encounters company to operate in new markets which
helps in increased sales volume and profitability. It is also subject to face challenges such as
international recruiting where it is hard to determine process of various other countries in
selecting candidate and making strategies accordingly, company which want to expand its
business overseas faces various expansion difficulties be it in terms of rules and regulation,
taxes, identifying customer needs of that particular region and various others and if not may then
it may result in company facing heavy loss and not getting an edge over the competition which
makes it hard for company to be at position where it wishes to be
P2-Complexities of Strategic challenges
There are various difficulties, challenges faced by Vodafone while operating
internationally some of which are mentioned as below
Managing employees immigration -It relates to taking employees of Vodafone from one
country to another for business purpose where it requires lot of formality to be fullfilled on part
of company as well as employees which can be in terms serving various proofs of documents and
verifying the same with authority of other country to ensure risk reduction on part of businees
operations and ensures diversification of strategies in prominent manner.
Ethical business practices – One of biggest difficulties which comes in way of globalisation
when Vodafone opts to expand its business internationally is by considering proper ethical
practices followed in business operation be it in terms of labour compensation, product safety,
environment concern, corruption and various other regulatory ethical conpliances by which the
company is abide to follow to ensure that its deals with proper grounds of business operations
and helps to target its audience in effective manner(Policek, 2020).
Organisational structure – Another difficulty or challenge that comes in way for Vodafone in
terms of diversifying its business is hurdle with ability to effectively and efficiently incorporate
new areas or regions within corporate structure and value chain of company. It requires huge
amount of investment to operate in completely different regions or countries, along with
development of strategies that accounts for proper functioning of business of Vodafone.
Leadership- It is very difficult in initial stage for company to find effective organisational
leadership which accounts with appropriate and relevant skills & knowledge on how to approach
given global market with success and limited flaws. Leader at Vodafone when approaching to
new geographical markets needs to ensure unique set of strategies are made that support

approaches which can be applied to different cultures, management styles, business, languages
and various others. Attracting talented employees with high level of competencies is very critical
on part of company to operate in global market Globalization Benefits and Challenges.2020).
Regulatory and legal structure- Another strategic challenge faced by Vodafone in diversifying
its business operations is that it needs to comply with unique laws and regulations which guide
and governs business policy (Hebron,Stack Jr2016). Company in this needs to expertise legally
which will help in understanding laws prevailing and will also helps in complying with
applicable regulation of that country. It is highly important for Vodafone to understand this
environment, before entering into new market as it will help company in forming strategies
accordingly and making strategic decisions on how to expand its business.
M2- Critical analysis of strategic challenges caused by globalisation on risk, diversifiication and
supply chain
Risk
By adopting and complying to above challenges and various others it helps vodafone to
ensure its business risk that it takes in operating internationally is successful as by approaching
to new markets it helps company to identify needs and wants of customers of that region by
which company can deliver its services which caters the same which ensures business risks are
profitable, but in various condition risk taken by company turns out to be different ball game
where its strategies are not so well designed in areas which it target to expand, or can be
understood that it dosenot accounts to proper research of market which in turn leads to
challenges into hurdles and barriers leading to increased business risk in unfavourable manner.
Diversification
By understanding and implementing challenges that comes in way to diversification helps
Vodafone to take full advantage of maiximising use of its underutilised resources which can be
manpower, machinery and others , but when company fails to understand and implement same it
leads company with huge loss of capital investment in its process of expamding as a result of
strategies being not designed in poper mannner.
Supply chain
By matching up with complexities and challenges Vodafone business ensures its supply
chain is cost efficient where it can be ascertained by company in timely delivery of various
services all across the world which will helps in deriving customers satisfaction and delight

which in turn generates loyalty of its customers, but when company fails to match up with
challenges it supply chain is badly affected as a result of lack of co-ordination between various
departments where supply of its services are not proper where customer needs globally are not
meet properly which result in failure of business operations.
TASK /ACTIVITY2
P3- Influence of globalisation on organisation
Globalisation has influenced the way how businesses are working which has affected its
culture, structure, leadership and many others.
Influence on corporate governance (Leadership and management)
By expanding business in different regions Vodafone management and leadership is affected in
several manner where it is affected and influenced through maintaing market through customer
base, competition, transfer rates of international employees and by assessing various growth
opportunities. Due to globalisation management at Vodafone can consider entire world as there
customer base which is not limited to a particular region, area and country and can make
strategies as accordingly (Härkönen,2019). It has caused management to expand to consider
global and allow management with increased production levels.
Influence on organisational function
Globalisation has affected functions of Vodafone in favourable manner as now its business
operations are guided in effective mannner to sustain growth. By globalisation it has ensured
that its functions such as Research and development are in place to innovate new things which
can satisfy needs of its customers in future, ensures that marketing of its telecommunications
service is prominent enough to reach it to its end customer, also helps in ensuring that it recruits
talented workforce which perform with focus and commitment to achieve organisational goals
(Yan,2019). It also have influenced function of accounting in favourable manner which assist
company with available and allocated budgets to meet needs of its business operation more
precisely
Influence on culture
Therer is major influence of globalisation on Vodafone culture as it lays down various norms,
attitudes, belief and others as by it company employess diversity of employees who bring on
there own culture which helps company to grow. It may certainly also displace the opportunity of

sustaining decent human life and destroy diversities by means of bringing various culture all
together (Mikalauskiene,Streimikiene, Mulagalejeva,2016). Through globalisation it has
benefited Vodafone in deriving culture that is fun loving, flexible, which in turn helps its
employees to outperform and deliver result which helps in deriving high rate of job satisfaction
for its employees. It has impacted in way as it provides with better ways for its employees to
connect and build relation. It has increased migration of talented and skilled employees who are
based with ideas of woking in good culture which enhances there productivity to achieve desired
goals of Vodafone (Mitaľ,2018).
Influence on organisational structure
Organisational structure is highly affected in Vodafone as and when company thinks to diversify
its business operations, as it helps in linking various activities of different department which
ensures all requirements are meet up accordingly by coordinating efforts of various department
which are aligned in proper order. It is implemented through proper planning in organisation
which ensures that structure is so well designed and built that it will lead to overcome any future
contingencies which comes in its way and defeat its competition in any given situations.
M3- Critical evaluation of global market influence using appropriate theories and models
It could be better understood by use of Mckinsey’s7S model
Strtaegy – It refers to plan made by company in order to achieve sustained competitive
advantage and to successfully compete in global marketplace. It should be aligned with other 6
elements of model to derive better results in business operation
Structure- It represents way business divisions and units at Vodafone are organised that
includes information which is accountable to various parties of business operations. It serves as
one of the best visible and easy to change element in whole framework.
System- This are the procedure and process at Vodafone which reveals its daily business
activities and how decisions are made which helps in defining culture laid down at Vodafone and
focus of its managers when determine to change.
Skills- It refers to employees abilities to perform well in company which include capabilities and
competency to achieve business target (Cox, Pinfield, Rutter,2019).
Staff- This element in model is concerned with how many employees and what type of
employees are needed and how Vodaone will manage its operations to recruit, motivate and train
the same.

Style – It represents how company is managed by its top level management which includes
actions and decisions taken in interest of organisation as whole, how they interact with there
colleagues and various others. It simply refers as style of leaders in managing company.
Shared values- It is the core of this model which states various standards and norms that guide
behaviour of employees at Vodafone and also lays actions of company which serves as
foundation for company in defining its structure and culture (GUO, GONG,2018).
Hofstede's Cultural dimensions – It lays down dimensions such as
Power distance index- It states the degree to which its less powerful members expect and accept
that power is distributed in unequal means where it relate to society handling unequalities
among its people.
Individualism and collectivism- Individualism represents that individual are expected to take
care of only themeselves and not of there immediate families where collectivism is focused
around individual to expect there relatives or other members to look after them in exchange of
unquestioning loyalty
Masculinity and Femininity – Masculinity side represent preference in society for
herosim ,achievement, material rewards and assertiveness for success where femininity approach
relates to cooperation, caring for weak , showing modesty where society at large is more
consensus oriented (Litvin,2019).
Uncertainity avoidance- It refers to degree to which members/employees feel uncomfortable
with ambiguity and uncertainity at vodafone. It address to issues where it is understood that
society deals with fact that future is never known.
Long term orientation and short term orientation- It associates connection of past things with
present and future actions and challenges. Short term index represents traditions at workplace are
honoured and kept wheras long term index represents adaption to problems and finding solution
for the same (Minkov,2017).
Indulgence and Restraints- This dimensions represents degree of related freedom that company
gives it to its employees in fullfling its desires whereas restraints is defined as controls of needs
and wants of employees by implementing various restrictions in Vodafone.
P4- Influence of ethics and golbal sustainability on organisational function
Ethics and global sustainability has changed way how Vodafone has accounted its
various functions as it has laid down and built imgae in minds of its customers that company

accounts of fair practices in its business operations and functions which in turn has helped
vodafone in attracting customers loyalty and there retention to companies telecomm services
which helps in boosting up there profitability and sales. This have laid down morals of
conducting its business in right mannner and to analysing areas where the business can go
wrong. This are this principles based out of moral grounds to understand business behaviour in
favourable and correct manner. Global sustainability has influenced business in way creating
better work life balance and accounts to culture that best fits and impacted customers and world
in great manner (Tormo-Carbó,Seguí-Mas,Oltra,2018). It has ensured maintaining healthy and
sustainable workforce that result to happiness of employees at Vodafone which increases there
productivity all across world and accounts to lower dow employees work related illness and
ensures functioning of company in smooth manner. It complies with quality of environment
where it results in non toxic and hygeinic environment, clean air and natural resource which
boost up productivity in efficienct manner.
Multinational companies like Vodafone needs to understand its influence on functioning
of organisation in controlled manner as by not understand the same can result in operations of
business in non prodctive manner where competitors can beat up its market easily and accounts
to business facing heavy loss.
P5- Different ways of decision making in global context
It is process of making decision by identifying various alternatives and choices by taking
and gathering various information and finally reaching to best fit solutions that support success
of company. Importance of this is it helps in achieving target of Vodafone in given period of
time where it helps in coordinating efforts of various departments of company all across world to
functions effectively. Various decision making methods include
Voting - It is simply by meeting employees and asking them to raise there hands and taking upon
majority of opinions for given alternatives at Vodafone.
Commanding- It refers to decision being made by no involvment where they are laid down and
all are others are expected to follow the same.
Consulting- It is the methods where opinions, ideas, imputs are being invited from various
parties and finally decisions are made upon various inputs being received.
Consensus- It refers to method where everyone agrees to one decision or can be understood as
full majority for decision to be taken at Vodafone (Calabretta, Gemser,Wijnberg,2017).

Delphi- It is technique that forecast decisions based upon results of multiple rounds of questions
sent to experts panels who then evaluate best decision for company.
Decison making can be more effective globally when
 Company identify real need of making decision which should clearly identify it nature.
 It can be relevant when company gathers relevant information and then identify its pros
and cons.
 Identifying various alternatives where it will identify various paths of actions .
 To make more effective decision it needs to take relevant evidence to support weightage
of alternatives
 Finally take decision in best interest of company as well as society.
P6- Strategies to enter into global market & Recommendations
Various strategies adopted by company in entering inti new market are
Direct Exporting- It refers to selling services of vodafone in market which its choose to be first.
For that they appoint different distributors and agents to represent them further in that market
where they became face of company to represent its interest.
Lincensing- It represents and arrangement on part of Vodafone to transfer right to use its
services to another firm where it is useful as it has relatively large market share in market in
which it wants to enter.
Partnering- It is neccessity for entering into foreign market as it results in forming strategic
alliances which accounts serving culture which helps in bringing knowledge of customers wisely
Joint ventures- It refers to creation of third company that is managed independently where
companies agree to work independently in particular market by creating third company to
undertake operations (Park, 2020).
Franchising- It rtefers to work well for companies having repeatable models of business where
it can be easily transferred into other markets. It states model to be unique and have recognition
that can be utilised internationally.
Various barriers that comes In way of expanding business of Vodafone
Culture- Company need to adopt to culture where it expands its business where it needs to
follow practices which are unfavourable on there part. It is recommended that it shall employee
workforce who are easy to adjsut in every situation and derive results for company

Restricting policies- This defines immigration policies that restricts for free entry and do not
promote trade and commerce. For this it is recommended to design& built businees structure in
way of no flaws where it can not be restricted on any grounds.
Competitors prevailing- It is certain that there will be presence of competitor in market where
company wishes to expand which willl affect business functioning, therefore it is recommended
on part of company to make strategies and do precise market research that helps in attracting
target audience for Vodafone (Rahman,Uddin, Lodorfos, 2017).
Customer loyalty- It is big obstacle for company where in expanding business as it is very hard
to derive customer loyalty for services in initial stage, but it can be ensured by company in
delivering quality services as price affordable to satisfty needs of customers.
Government- Government creates formidable barriers to entry for varying reasons as it lays
down various regulation prevailing in that country ehich affect to operate internationally, it is
recommneded on part of company to abide by all regulations and be ethical where it can not
result in discontinuation of business
M4- Critical evaluation of key barriers of globalisation and some recommendations
It is required on part of Vodafone to aasses various strategies as mentioned above
carefully as they are the means by which it can determine its growth and survival in various
market and attract huge customer, but if not incorporated in proper manner can lead Vodafone to
loss of its brand value which will lead to unsatisfied customers resulting in heavy loss for
company. It is also recommended that vodafone should opt for partnership by forming strategic
allliances where they can have better understanding of local market and can provide services
accordingly. It is lastly recommended that vodafone should derive structure that is flexible to
work for its employees where decision can be made effectively and that support performance of
business in productive manner.
CONCLUSION
From the above report it is being understood that for a company to expand in global
market it takes into consideration various things which support its growth and survival. It is
undersood that there are various drivers to globalisation which company need to understand
while expanding, and for which company faces various challenges. It is also understood how
globalisation have influenced functioning of organisation be it in terms of culture, corporate

governance, structure and functions of buiness, and also lead us to understand various methods to
enter into global market and barriers which company faces for the same.
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