Report: Global Business Environment Analysis of Vodafone using PESTLE

This report presents a PESTLE analysis of Vodafone, a leading international telecom firm. The analysis examines the political, economic, social, technological, legal, and environmental factors impacting Vodafone's operations. The political factors include government charges on international collaborations, while economic factors address spectrum costs and the impact of Brexit. Social factors highlight the influence of tech SME culture, while technological factors focus on the introduction of 5G. Legal factors encompass payment tenures, interest rates, and taxes. Environmental factors emphasize Vodafone's commitment to environmental safety. The conclusion suggests that Vodafone has more growth opportunities than threats, particularly if it focuses on capitalizing on favorable factors to overcome challenges related to political and economic environments.

Global Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................2
References:.......................................................................................................................................3

INTRODUCTION
PESTLE Analysis is defined as the structure used for analysing and scanning the external
environment of a firm or a country. It stands for political, economical, social, technological, legal
and environmental (PESTLE analysis, 2020). Vodafone is an international leading telecom firm.
It was founded in 1982 in UK. It mainly deals with broadband connections and mobile customers
in various nations. The following discussions is based on the PESTLE analysis of Vodafone.
MAIN BODY Political Factors: This factor aims at the charges imposed on cartel for the international
brands. In context of Vodafone, it is also the multinational firm and if it wants to
collaborate with other firms for more sales and profit generation than it has to bear a high
cost or charges which are imposed by the government. Therefore, this can be the threat
for the firm to grow in political environment. Economical Factors: This factor aims at the spectrum costs and effect of Brexit in UK.
In context of Vodafone, there are huge cost associated with spectrum and Brexit has
affected negatively in it's economical environment. Therefore, this can be the threat for
the firm to develop in economical environment (MORRISON, 2020). Social Factors: This factor aims at SME culture and local growth in UK. In context of
Vodafone, culture of tech SME has lead to the local growth of the firm. Hence,
improving the digital economy of the country. Therefore, this can be the opportunity for
the firm to grow in social environment. Technological Factors: This factor aims at inventing the 5G technology in a world. In
context of Vodafone, introducing 5G network connections can result the firm in rapid
growth with good network services to the people. Therefore, this can be the opportunity
for the firm to develop in the technical environment. Legal Factors: This factor aims at the payment tenure, interest rates and taxes. In context
of Vodafone, payment tenure is longer and interest rates are lower. Moreover,
government settled the tax row for the industry. Therefore, this can be an opportunity for
the firm to grow in the legal environment.
 Environmental Factors: This factor aims at the safety of environment at any cost. In
context of Vodafone, it is observed that there is a vision of a firm to introduce the culture
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of zero environment harm safety across the world. Therefore, this can be an opportunity
for the firm to develop in environmental culture of a country (Ulubeyli and Kazanci,
2018).
CONCLUSION
It is concluded that PESTLE analysis of Vodafone has more of growth opportunities
rather than threats. It is observed that political and economical factors are on the side of threats
and the rest four factors are giving opportunities to the firm for better development in the
scenario of threats also. Therefore, if the firm focuses more on factors which are giving
opportunities then the firm can easily overcome the threats which are associated with the
PESTLE factors related to it.
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References:
Books and Journals:
MORRISON, J., 2020. GLOBAL BUSINESS ENVIRONMENT: Towards Sustainability?. Red
Globe Press.
Ulubeyli, S. and Kazanci, O., 2018. Holistic sustainability assessment of green building industry
in Turkey. Journal of Cleaner Production, 202, pp.197-212.
Online:
PESTLE analysis. 2020. Available though
<https://www.cipd.co.uk/knowledge/strategy/organisational-development/pestle-analysis-
factsheet>./
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