Vodafone Group: Business Environment Analysis Report - Factors

This report analyzes the business environment of the Vodafone Group, a multinational telecommunications company. It examines both internal and external factors impacting the organization's decisions and performance. The analysis includes political factors like cartelization and political stability, economic factors such as spectrum costs and supportive culture, social factors like changing lifestyles and digital economy, and technological factors including the introduction of 5G. The report also covers internal strengths like a large market coverage and various promotion methods, along with weaknesses like weak European market performance. Opportunities such as market expansion and 5G investments in India are discussed, alongside threats like intense competition and currency devaluation. Environmental and legal factors are also briefly considered. The report draws on multiple academic references to support its analysis.

Business Environment is the total of the internal and external
factors that are impacting the decisions of the organisation
(Fernández-Olmos and Ramírez-Alesón, 2017). The chosen
organisation from the report is Vodafone group and it is a
British multinational telecommunication business. It was
founded in 1982 in Berkshire in UK. The report includes the
internal and external factors that are affecting the business of
the Vodafone group and the interrelations of the factors in the
organisation.
The organisation which are having customers in different
countries are affected by the external factors impacting the
businesses.
• Political factors- The organisation is having the
pressure from the political factors of different countries and the
Vodafone is affected by the Cartelisation and political
conditions and they will help in making the plans.
• Economical factors- The organisation is affected by the
economic factors like buying power, income and needs of the
customers in different countries.
• Social factors- Change in the lifestyle of the people
affect the companies social trends. This will include the buying
behaviour of the customers.
• Technological factors- The more advance technology
used by the companies, affect the growth of the company in the
market.
• Environmental factors- To take care of the environment
is the important factors of the company as these are the essential
sector which have to be followed by the organisation.
• Legal factors- Using the government application, laws,
and role that have increases the factors of sale in the
organisation.
Business environment
Introduction
References
Fernández-Olmos, M. and Ramírez-Alesón, M., 2017. How internal and
external factors influence the dynamics of SME technology
collaboration networks over time. Technovation. 64. pp.16-27.
Ogden, J. and Roy-Stanley, C., 2020. How do children make food
choices? Using a think-aloud method to explore the role of internal and
external factors on eating behaviour. Appetite. 147. p.104551.
Cao, H. and Chen, Z., 2019. The driving effect of internal and external
environment on green innovation strategy-The moderating role of top
management’s environmental awareness. Nankai Business Review
International.
External factors Impact of business external factors
The chosen company may faces the various impact in the
context of their external environment. They are described
below:
Political factors- In the political factors, the charges of
carelistaion are shown as the weakness while the political
stability has been the strength of the company.
Economic factors- The high spectrum cost which are used for
5G access will be considered as the weakness whereas the
supportive culture is become the strength to the company (Sari
and et.al., 2017).
Social factor- The new advance technology SME work as the
growth of the company while digital economy give the strength
to the company.
Technological factors- Introduction of the 5G are used as the
important aspect of the company.
• Legal factors- Low ROI and longer payment time
spam are the effect the company in the negative way.
• Environmental factors- Vision of the harmless
environment will considered as the positive impact of the
company (Cao and Chen, 2019).
Internal factors
The internal factors are the factors that are in the organisation
and they are helping them in making the decisions.
Strengths- The organisation is having customers in 25
countries which makes Vodafone group having the larger
market coverage. They are having different methods of
promotions which is helping the in attracting customers.
Weaknesses- The organisation is having weak performance
in the European market which is reducing the customers and
increasing the cost.
Opportunities- In the Indian markets they are increasing the
customers by acquiring and merging with Idea and they are
investing the 5G services.
Threats- The threats for Vodafone is that they have intense
competition, devaluation of pound is affecting the
organisation (Ogden and Roy-Stanley, 2020).