Vodafone Business Environment Analysis Report - Business Environment

This report provides a comprehensive analysis of Vodafone's business environment. It begins with an introduction to the competitive nature of the business environment and the importance of adapting to societal, cultural, and governmental factors. The report focuses on Vodafone, a UK-based telecommunications company operating globally, and examines the purposes of different types of organizations in the UK, including sole traders, partnerships, private limited companies, and public limited companies, and contrasts them with Vodafone's objectives. The report further explores how Vodafone meets the objectives of various stakeholders, such as employees, owners, customers, and the government, and identifies the company's responsibilities and the strategies employed to meet them, including the use of the Ansoff matrix. The analysis extends to the impact of economic systems, fiscal and monetary policies, and competition policies on Vodafone's activities, providing a detailed understanding of the external factors shaping the company's operations and strategic decisions.

BUSINESS ENVIRONMENT

INTRODUCTION
Business environment is much competitive and compete their organisation has to produce
variety of products for their customers. Both competition nature as well as business are dynamic.
Thus, company has to try too much so that they can survive in the marketplace. Along with this,
business surrounding depends on various things such as society, culture, government rules and
regulations and so on. It is essential for each and every kind of firm to follow the policies of
country which are made by ministry body (Saunders, 2011). Vodafone is a telecommunication
company which is situated in UK. Along with this, they are operating their business in many
other countries, such as Africa, Oceania and so on. Main purpose of this report is to determine
associations which can be affected by shareholders and relationship amongst business and
domestic, national and in addition international environment. Along with this, it is must to
comprehend purpose of business and their nature. Manager of company can develop strategies,
therefore they can accomplish setted goals and targets. Fiscal and monetary policies can
influence activities of firm. Along with this, framework of market can identify prices and
judgements of business.
TASK 1
1.1 Purposes of different types of organisations in the UK
There are different kinds of associations situated in the UK and their aim and objectives
are totally different from each other. These firms are:
Sole Trader  People of this kind of enterprise generate revenues through
their own efforts (Schneider and Spieth, 2013).
 They keep risk less, as much it possible.
 It is essential for them to satisfy their clients by providing
their items as per their choices only.
 They have to maintain effective relations with their buyers,
thus they can improve their sales and profits.
Partnership  Resources have to be utilized by them in an adequate
manner.
 Members have to decrease their risk and for this purpose
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they can develop healthy relation with their partners.
 If their relationship with purchasers are good then it will
assist them to enhance their incomes.
Private limited company  This kind of company wants highest growth as well as
development (Bridge and O'Neill, 2012).
 They want to survive for long duration in the market.
 Main aim is to maximize their sales and revenues.
 Manager of firm grabs opportunities from the market and
hence, they can improve their market share.
Public limited company  They do their work keeping in mind the interest of public.
 Company provides their services to entire society.
 Manager provides opportunities to people through issue
shares to them, so that they can take part in activities of
association.
Purpose of Vodafone:
It is a multinational telecommunication enterprise which is established in the UK. Along
with this, they are providing their services in many other nations such as Europe, Asia, Africa
and Oceania. Manager of company wants to maximize their revenue by providing the best
administration to their clients. They cater innovative as well as superior services to their
customers and as a result, they attain their goals and targets in an effective and efficient manner.
It assists them to compete with their competitors at marketplace.
1.2 Extent to which organisation meets the objectives of different stakeholders
Enterprise has many bondholders and their main aim is to satisfy them by enhancing
profits along with business activities. There are many objectives of Vodafone which are
discussed as below:
 Their fundamental aim is to provide right candidates to companies and thus, they can do
their operational activities in an appropriate manner (Mason and Spring, 2011).
 They want to connect with community.
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Along with this, there are two kinds of bondholders in an association which are
mentioned as beneath: Direct stakeholders: These people are directly associated with firm and in addition, they
are priority bondholders. It may comprise of staff members, employers, clients and so on.
 Indirect stakeholders: They are those people who do not get directly influenced by the
operations of firm but sometimes, they put a huge impact on association. It may consists
of government, social group and so forth.
Objectives of Vodafone:
 They provide innovative products and services to their customers.
 Manager wants to improve their profits and thus they can easily beat their competitors in
the marketplace.
There are some key shareholders of firm who meet their distinctive objectives as
discussed below:
Employees:
 Manager can provide training to them so that their work performance can be improved.
 They can cater them bonus, commission, etc. as per their work execution (Bargiela-
Chiappini, Nickerson and Planken, 2013).
 It is essential to give them better working surroundings so that they can do their task in an
effective and efficient way.
Owners:
 Fundamental duty of manager is to provide right data and information to them which is
related with enterprise.
 They have to cater them appropriate financial statements.
 Employer has to maintain an adequate communication with them.
Customers:
 It is essential to give them better items and services.
 Prices of products must be affordable to them.
 Manager can provide them after sale services as it assist them to build their goodwill at
commercial centre.
 It is important for the manager to maintain better relationship with clients.
Government:
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 Company has to follow all rules and regulations.
 Regulatory body has to develop some rules and regulations.
 It is important for them to give tax on regular basis.
 They have to publish annual report in magazine.
 It is essential for the employer to conduct audit in an effective way.
1.3 Responsibilities of organisation and strategies employed to meet them
Each and every kind of organisation has numerous responsibilities and if manager does
not make appropriate strategies then it is difficult for them to fulfil it. Fundamental obligation of
firm is to provide better assistance to the social group. There are many kinds of responsibilities
in Vodafone which are mentioned as below:
 Model of structure: Every company has their own hypothesis which is associated with
their business activities. It is like a path or blueprint for organisation. It assists them to
run or regulate their firm in an effective and efficient way. Along with this, manager can
easily allocate resources as per the needs of divisions. Additionally, laws and regulations
helps to keep up this sort of obligations.
 Duty allocation: Each and every individual who is working in enterprise has distinctive
duties (Cavalcante, Kesting and Ulhøi, 2011). It is the main duty of manager to provide
them responsibility as per their skills and knowledge and thus, no one can get confused
regarding their work. It is because; this can be harmful for association and if there is
strong relationship then people can easily do their work.
 Coordination: It is necessary to make coordination amongst all activities as well as
departments. If it is better, then it will help company in their growth and development.
 Operation: If the operations are done effectually then it will cater development and
advancement to association. Manager of firm can utilize new techniques also, as it will
assist them to improve their revenues.
Strategies
Employer of firm can develop plans to accomplish their obligations. There are various
kinds of strategies provided by the researchers. Company is using Ansoff matrix so that they can
accomplish their targets as well as responsibilities in a proper manner.
Ansoff Matrix: If organisation wants growth in their business, then it is essential to develop some
effective strategies as it will assist them to fulfil responsibilities as well as targets of firm.
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 Market penetration: It means enterprise is working in their current market along with
their existing items and services (Noordegraaf, 2011). Market development: As per this, firm wants to enhance their market by using current
merchandise and administration. Product development: As indicated by this, company develops new or unique items for
their clients so that they can take benefits from their competitors in the marketplace.
 Diversification: According to this, manager of organisation produces new products and
build a new marketplace. As a result, it assists them to diversify their risk.
TASK 2
2.1 Way in which economic systems attempt to allocate resources effectively
Economic schemes comprise of various stages as well as processes such as production,
organize employees and motivate them, distribution and so on. Human assets are an essential
part for each and every firm as it assists organisation to improve their productivity. Allocation of
resources and productivity depend on the system of economy.
There are three sorts of economic systems which can be utilized by the organisation.
These are described as beneath:
 Free market economic system: Regulatory body has less control over this kind of
economic scheme (Bocken, and et. al., 2013). Private aspect is fundamental in this
method as they utilize as well as manage large range of economic assets. As indicated by
this approach, prices of products can be decided on the basis of demand, supply and
capabilities.
 Centrally planned economic system: In this scheme, ministry body plays a prominent
role. They have right to take all judgements as well as allocate all economic assets.
Consequently, regulatory body takes all obligations to regulate internal and external
business of nation.
 Mixed economic system: This is much popular method across the world and various
economies use this approach. All resources are divided amongst public and along with
this private ownership. Vodafone is using mixed economic system in their business.
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2.2 Impact of fiscal and monetary policy on business organisation and their activities
Impact of fiscal policy: It includes utilization of government spending as well as tax
programs so that they can influence collective wants in economy. To determine the needs,
ministry body enhance their spending level. Along with this, they can diminish the tax rate and it
will happen at the time of recession. Regulatory body can cut down their spending and in
addition increase tax values. Thus they can easily have control over the operational activities of
firm (Hays, Page and Buhalis, 2013). Spendings which are improved by authorities can be add
into expenses on products as well as administrations. Consequently, if tax rate is high, then it can
directly influence the purchasing power of clients. They can use some methodologies such as
taxation, sale, borrowings and consumption.
Impact of monetary policy: It is like a procedure through which government of nation
can easily have control over the money supply. Along with this, they can target interest rate so
that they can achieve desired objectives as it provides stability as well as growth to the economy.
It can comprises less unemployment and in addition stable values. In UK, England bank creates
and implement this sort of polices. It can affect the business organisation in wide range, like
England bank sets interest rates for every banking concern. If it is less then firms can borrow
fund at cheap rates but if it is high then it will be costly.
Some of major effects are as discussed as below:
 If ministry body spends quickly, then output can be affected in high manner.
 If regulatory body spend too much fund on capital expenses, then it can affect the final
output.
 Economic activities can be affected by the tax revenues (Miles, 2012).
 Supply of money can also influence the economy of nation.
2.3 Impact of competition policy and other regulatory mechanisms on the activities of Vodafone
Competition policy: If there is any abuse of power which is associated with monopoly
then it may lead to failure of marketplace and additionally can be opposed to public interest.
Hence, regulatory body is much concerned to secure the interest of clients. Thus, competition
act, 1998 has been imposed by the government of UK so that they can make proper difference. In
the United Kingdom, fair trade office is accountable for determining those suspected who are
abusing monopoly power.
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Regulatory mechanism: There are various kinds of regulatory mechanisms which can
influence the operational activities of company. Data protection act, 1998: As indicated by this, it is necessary to assure rights as well as
privacy of people. Along with this, if data is used by any other person then they have to
be informed regarding this. An association can deal with many kinds of information such
as clients, staff members, suppliers and so forth. Thus, it is essential for the manager to
develop strict policies so that they can accomplish legal prerequisites.
 Equality act, 2010: This act assists to protect individuals from any kind of discrimination
in the society and workplace. It is essential for the employer to create policies so that they
can eliminate it from organisation. Discrimination can be of many types like culture,
caste, colour, value, gender, beliefs and so on. Hence, it is necessary for manager to
maintain equality in company. Therefore, each and every staff member perform work in
an effective as well as efficient manner. Along with this, they can easily share
information with each other and it leads to friendly atmosphere (Perego, and Kolk, 2012).
If Vodafone use these acts into their business, then it is assist them in their development and
success. Staff member will do their work in more effective and efficient way. Along with this,
they will easily understand their roles and responsibilities which are associated with their task.
TASK 3
3.1 Market structure determine pricing and output decision of business
There are various kinds of market which are mentioned as beneath:
 Perfect competition: As indicated by this market structure, there are many organisations
at market. Along with this, any new firm can easily take entry and generate identical
items for clients. Additionally, all associations are the price takers. There is high
competition as prices of products are much similar as compared to the rivals.
 Monopoly: As per this, there is only a single company at market place. As these firms
maintain their monopoly in the market, so that it is obstacle for any new firm to enter in
this marketplace. Along with this, they have much power to enhance prices of their
products and services. They can easily set value of their items as per their wants. There is
marginal profit is equal to cost of marginal. But, it can be influenced by the demand of
people.
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 Monopolistic competition: It is much similar as perfect competition and each
organisation has freedom to enter in the marketplace. It is essential for organisation to
produce distinctive items and administrations for their customers. As a result, it assists
them to have some kind of control over the value of prices. Along with this, they can
easily improve their revenues if cost of marginal is equivalent to marginal income (Hotho
and Champion, 2011).
 Oligopoly: As indicated by this, there are some differences as per the framework of
structure of firms. Along with this, many variations in organisation behaviour. Company
under this economic structure produces identical items and services. If marginal profit is
equal to marginal cost then they will gain revenues. Associations included in this can
easily set values of their merchandise as well as services.
Vodafone is doing their operations in perfect as well as monopolistic competition. If prices of
products and services get enhanced then organisation increases their supply but if it decreases
then demand will be high and during this situation, many association hold stocks.
(Source: Market structure, 2017)
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Illustration 1: Market structure

3.2 Way in which market forces shape organisational responses
Price elasticity of demand: It is a evaluation of connection amongst an adjustment in amount
requested of specific great and alterations in its cost. According to this, if prices of products get
increased then demand will be reduced and so on. Nature of goods: It is vital factor which assists in deciding value flexibility of interest. In
this merchandise are arranged into three sections which incorporates necessities, solaces
as well as extravagances. Price flexibility of interest for extraordinary products is
profoundly versatile. Value versatility of interest for solaces is equivalent to solidarity.
Along with this, value versatility of interest for necessities is inelastic (Nixon and Burns,
2012).
 Acceptability of substitutes: Principle purpose behind adjustments in versatility of interest
with the adjustments in costs of a few products which is accessible of their contending
substitutes. Expansive number of close substitutes of a products which are accessible in
the market more noteworthy the flexibility for that great.
Price elasticity of supply: It is a measure which is utilized as a part of financial aspects with the
goal that they can the responsiveness or flexibility of the amount provided of a products or
administrations to an adjustment in its cost. As indicated by this, if prices of products get
increased then supply is also get enhance and vice versa.
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Illustration 2: Demand elasticity

 Progression in technology: Staff individuals from Vodafone need to utilize the updated
innovation with the goal that they can serve the best item and in addition administrations
to their shoppers. It aids in enhancing offers of the business element and also they are
having a get to control which help with expanding the supply adequately and
productively.
 Accessibility of origin or resources: If economy is utilizing most of the rare assets then
business won't have the capacity to expand the generation and supply with the goal that
they stay dormant (Oliveira and Welch, 2013). In this supply will be inelastic which is
unaffected by the adjustments in the cost.
3.3 Business and cultural environments shape the behaviour of Vodafone
Business condition is greatly affecting the authoritative conduct. The business condition
is isolated into two sections which incorporates inward and in addition outer. For outside
condition, Vodafone can utilize diverse elements which include political, financial, social and
innovative components that assistance the business association in deciding social segment
(Lumley and et. al., 2011). They are expressed as beneath:-
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Illustration 3: Supply elastic