Business Environment Analysis: Vodafone Case Study

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The Business Environment
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Contents
Introduction................................................................................................................................3
LO 2. Demonstrate an understanding of the nature of the environment that organizations
operate in....................................................................................................................................4
Lo 3. Illustrate and explain the impact of environmental forces on organizations at a micro
and macro level..........................................................................................................................6
LO 4. Assess the significance of the impact of environmental forces at an organization,
market, and sector or industry level...........................................................................................8
LO 5. Demonstrate an understanding of the requirements of a variety of stakeholders to a
chosen organization..................................................................................................................10
LO 6. Measure and appraise the effectiveness of the responses of organizations to policy
actions taken by key stakeholders............................................................................................11
Conclusion................................................................................................................................12
References................................................................................................................................13
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Introduction
The environment of the business is the entire calculation of the internal, as well as external
factors for example employees, expectation and the customer needs, demand and supply,
clients, suppliers, chairperson, technology and innovation market trends, social trends,
changes in the economic and management and many more factors, are also include in the
business environment. These all the factors which may affect the company and their work
directly or indirectly. It also helps in identifying different opportunities in the business,
assists in the planning, improving the performance, make the profit for the business and many
more. It is the most important feature for any business to have a good business environment.
In this assessment the major discussion is on the nature of the environment and what forces
may impact the organization and various stakeholders.
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LO 2. Demonstrate an understanding of the nature of the environment that
organizations operate in.
Vodafone is a UK based company, and this has built very well reputation in the sector of
telecom. The main goal of the organization is to enhance the services of telecommunication
and also to deliver the best facility of the network for the customers who are living
worldwide. The advertisement which is used by the Vodafone is also very innovative and
also informative even they also use internet, social media, and other traditional channels to
show the latest offers and products (Prajogo, 2016).
There are very diverse culture may be adopted in the workplace of the Vodafone. The
Vodafone is generally focused on empowering women and supporting them to show their
part in various community and other activities and also the Vodafone providing rights to the
women employee such as:
 Paid leave at the time of maternity, and now this is extended to four months,
which was later for 3 months.
 Organisation also gives an hour for childcare.
The women in Vodafone may represent about 50% of the Vodafone senior executives in
entire Egypt’s; they are responsible for increasing the employment of women and also
empower them. The Vodafone also have the health and safety team, which mainly ensures the
health and safety of the team and provide a safe workplace for the employees to work
properly.
The internal environment of the company may be determined by the stages which are in the
value chain. The value of the chain is as technology development- product design-
manufacturing- marketing- distribution- service.
 Technology development: this is for research and development. The Vodafone
Company has placed many efforts on the research and development due to this the
company achieved the economies of the scale.
 Product design: the product of the Vodafone are based on the technology and the
product which were designed by the Vodafone also technology-based.
 Manufacturing: this is also part of the supply chain of Vodafone. The construction of
the network and the maintenance is predominantly outsourced in the market like
China and India.
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 Marketing: Vodafone uses advertising through television, billboards, stores, press
release and on many more platform.
External environment of Vodafone
The government of the UK may develop the authorities which enable mobile operators and
also the network in the UK. The Vodafone organization has developed good relationships
with the government authorities, and the Vodafone also encourages the objectives of this type
of government. The government of the UK has also developed the awards and the marks that
are dependent on the quality through which the operators may improve the quality. There are
also many competitors are present in the market who are giving tough competition to the
Vodafone like Three, GiffGaff and many more. The Vodafone always work to maintain the
quality which they are providing to their customers.
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Lo 3. Illustrate and explain the impact of environmental forces on
organizations at a micro and macro level.
The every business company is the part of the business environment for which they operate.
There are many factors in which the organization from which they are careful surrounds the
business. The factors are mainly classified into two categories. The first is micro and second
is the macro environment. The microenvironment is generally referred to the nearby
environment which is responsible for firm operations. And on the other hand, the macro
environment is known as the general environment, which helps to affect the working for all
the business initiatives (Georgescu, et al., 2015).
The basic elements of the Microenvironment are competitors, suppliers, market, mediators
and also the customers. And the element of the Macro environment is population,
demographic, economic, technological, social culture, political and environmental (PESTEL).
Impact of Microenvironmental factors of the Vodafone:
 Company: this includes employees, finance, research and development, operations,
purchasing and accounting of the Vodafone Company. There are 75% male and
25% female employees are working in the company.
 Suppliers: For the suppliers, the company mainly focuses on the people, customer
obsession, supplier relationship management, sustainable supply chain, and
etcetera.
 Intermediaries: The marketing distribution is also different such as zonal
structure, Associate distributor model, management information tools and many
more. There are many outlets of the Vodafone such as them open stores and mini
stores (in rural and urban areas).
 Customers: They provide different services to the customers such as prepaid and
post-paid and services are wireless communication, mobile working, voice and
messaging.
 Competitors: there are many competitors are present in the market which may also
provide similar services as Vodafone do. The competitors give packages at less or
high costs to cover the market of Vodafone but they fail to do so because of the
best quality of services provided by the organization. The different competitors are
as dolphin, Reliance, Airtel, spice and many more (Kolk, 2016).
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 Publics: the company also take care of public health and other social factors. For
example, the company use deployed fuel catalyst, which may help to reduce 8 to 10
% carbon and also use a hybrid solution such as diesel generators and batteries. The
Vodafone also have resolve campaigns such as NGO's plan and support recycling
of more than 4000 Kg of waste paper.
Impact of Macro environmental factors of the Vodafone:
 Demographic: they have approximately 444 million customers and also about
19.5 million customers in the UK.
 Economic: the economic growth which mainly depends on the new research and
development in the company that helps to create new jobs for the unemployed
people.
 Technological: the company mostly works on innovation and try to update with
the new technologies, they are working in the advancement of the mobile
technology and helps in providing new services high speed and the better
coverage.
 Political: at present, the position of the Vodafone organization is very good in the
international market. They have also had very good communication with the local
governments, and because of this, they have a good environment in politics.
 Cultural: they are working according to the culture of the country which means
they try to support diverse culture and make a plan for call rates and also provide
additional services such as cricket score, etc. (Ang, 2016).
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LO 4. Assess the significance of the impact of environmental forces at an
organization, market, and sector or industry level.
The impact of the environmental forces at an organization may include employees, finance
and operations, research and development and also the accounting of the organization. The
Vodafone have to take care of all the things which are going under the organization. The
environmental help the organization to develop the relationship between the team members
and also help to encourage the people to achieve the target. The Vodafone follow diverse
nature because of different culture people work in the same place.
The impact of the environmental factors on the market is included suppliers, public,
competitors and many more. The company has to build a relationship with the suppliers to
distribute their products to their customers. The company has to decide the best packages for
their customers so that they were also with Vodafone and not try to switch to other company
products.
The impact of the environmental forces on industry level:
Political forces: They may give a huge impact to the dimensions to expend of customers. The
environment is politically stable the main thing is that what effect the government rules,
policies and regulations, and also trade agreement that is prepared by the government for
their country and also there are factors which are also considered as taxation policies which
are also framed by the government. Significance of the factor on the three levels;
 It is significant on the organisational level to make taxation policies accordingly.
 Political forces are significant on the market level to determine market completion
and positioning.
 On industry level it is significant to make changes in the development of market
share.
Economic forces: There are some of the factors which directly affect the revenues which are
to be earned in the long and short term process. The Vodafone targeted the following points
as:
 Rate of the interest, consumer’s confidence, GDP (gross domestic product) this is
considered.
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 Economic forces play a significant role in the development of the strategies on the
organisational level and for the market as well (Shrestha, 2017).
 Economic forces create trends in the industry, which is essential for the growth
determinants.
Socio-cultural forces: These are some of the factors which may impact the business socially,
such as:
 Trends which is related to the population, arrangements of household sectors.
 Religion, values, beliefs, attitude, and culture of the society are to be considered.
 Living standards and health and civilization may be focused on caring of the
society.
Technological forces: this type of forces may be applied to the organization which is related
to the technological development and effect on the level of competitions that is exist in the
organization.
 Adaption of the new technologies may help in the reduction of the costs and also
through providing quality products. The innovation in the organization may help
in advancement.
 New technologies also support to improve the communication level and also the
distribution channels.
Legal forces: Vodafone organization should be related to the regulations and laws in which
they are working. If the laws are not considered properly, then it may give adverse effects to
the organization (Kleiousis, et al., 2019).
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LO 5. Demonstrate an understanding of the requirements of a variety of
stakeholders to a chosen organization.
Vodafone organization always believe in having the constant feedbacks that is why the
discussion among the stakeholders is the part of the usual business practice to them.
There are some of the important stakeholders of the Vodafone organization which are
required by the organization:
Customers: Customers are the major requirement for the Vodafone organization the
customers are their priority and the company also confirms that they are taken the good care
or not. Customers are highly expected to get a fast network and clear voice on the internet in
economical packages. Customer’s expectation from the Vodafone Company is that they want
good packages at low prices and quality products and also they want full coverage network at
every place.
Employees: The Vodafone company believes that the satisfaction of the customers is very
necessary. The employees expects a better working environment, great incentives and
monthly wages on time from the organization. The employees of the Vodafone also want a
positive and effective work environment where they may work properly.
Shareholders: These are the people who are investing their money in the organization and
time as well, and they expect great returns.
Local Community: The organization participated in the local as well as national charities
with Vodafone UK foundation and also observe and try to reduce the impact of the business
on the environment which is to be done by recycling of the mobile phones, energy savings
and reducing the waste. The local community wants there environment not getting harm due
to organizational waste, so the company has to take care of that (Danso, 2016).
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LO 6. Measure and appraise the effectiveness of the responses of
organizations to policy actions taken by key stakeholders.
According to the digital deployment report, the organization has identified several important
policy actions; they also have faith in that the impact on the stakeholder’s abilities to organize
opposing secure and the mobile digital systems in the market. The policymakers and
governments may motivate asset by investigating their policies in every area with a
comparison with the aristocrats and confirms that they have the plan for adopting the best
practice.
The Vodafone is the reputed organization and also respond to the policy actions that are taken
by the stakeholders areas:
Government policy laws and regulation: the organization has made some plans which are
concerning usage and charges by considering the usage of the customers. The policies which
are made with the regards to roaming may be implied very carefully, and it involves two
different states such as:
The level of inflation: the organization adopts the system where the revenues are properly for
safe protecting themselves from any inflation, expansion of the business and also vacancies
may be generated.
Population trend: the organization may develop the strategy for the employees where they
feel comfortable to work and also trust the system of work. They also try to collect proper
feedback from the customers (Kerl, 2018).
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Conclusion
It is concluded from the above discussion that the Vodafone is the second-largest company in
the telecommunication sector. The Vodafone is the UK based company. There are
approximately 75% male and 25% female employees are working in the company. The
organization also supports women employees and empower women and also they give many
offers for the women such as they provide four months paid leave at the time of maternity.
The company has the specifications for which they are working hard. The company provides
its services at approx. 60 countries worldwide. The Vodafone always follows the rules and
laws which are made by the government and works under the given policy.
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