Detailed Report: Vodafone's Business Operations and its Environment

This report provides a comprehensive analysis of Vodafone's business operations, examining its structure, the impact of the economic environment, and key aspects of its functioning. It delves into the importance of accounting in business success, outlining various accounting statements. The report also explores the functions of the HR department, including recruitment, training, and conflict management, and discusses key features of employment legislation. Furthermore, it analyzes accounting information using profit and loss accounts. The report also describes the stages of team development, analyzes team roles, and assesses motivation and leadership theories. Finally, it explains the impact of customer service and the benefits of customer profiling on business success.

How Business Operates

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Describe the different types of organisations found in the public and private sectors,...3
1.2) Explain the different structures within the businesses...................................................4
1.3Describe how the local, national and global economic environment impacts on the named
business...................................................................................................................................4
TASK 2............................................................................................................................................5
2.1 Importance of Accounting in success of a business.........................................................5
TASK 5............................................................................................................................................5
5.1 Different functions of HR Department in Business.........................................................5
5.2 Key features of employment legislation.........................................................................6
TASK 3............................................................................................................................................7
3.1 Key accounting information using profit and loss accounts............................................7
TASK 4............................................................................................................................................8
4.1 Describe the stages of team development........................................................................8
4.2 Carry out an analysis to determine own and others’ roles within a team.........................9
4.3 Assess three motivation theories......................................................................................9
4.4 Describe different types of leadership style...................................................................10
TASK 6..........................................................................................................................................11
6.1 Explain the impact of customer service on business success.........................................11
6.2) Explain the benefits of customer profiling to a business.............................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business is defined as an activity which is performed by individuals for making money
through producing or selling products or services. Whereas, Business environment is a sum of
internal and external elements that influences on the operational activities in positive or negative
manner of an organisation. The Present report is based on Vodafone which is a multinational
telecommunication company along with headquarters in UK. This assignment will discuss about
the different types of organisation in public and private sector along with various structures such
as matrix, divisional and so on. Importance of accounting, functions of HR department, stages of
team development will also covers in this report. Organisational chart, roles of departments,
motivational theories, Leadership theories will also discuss in this report. Impact of customer
services on the growth and success of an organisation and benefits of customer profiling for a
business firm will included in this assignment.
TASK 1
1.1 Describe the different types of organisations found in the public and private sectors,
Business environment can be explained as the combination of internal and external
factors which influences the day to day activity of company (Arend, 2013). There are various
things that can be included in business and they are laws and legislation, social media marketing,
upgraded technologies etc. Different types of organisation that are found in private and public
sector are listed below:
Private Sectors: This are those organisation which are managed and owned independent
authorities. This types of business are being conducted just to earn maximum amount of profit.
The major source of raising fund for these types of organisation is investors and even bank loans
can be taken if required. Vodafone can be one the best example of private sector company.
Private sector mainly includes sole trading, partnership firm and corporations.
Public sector: The business activity where major involvement is of government can be
said as public sector companies. This types of companies are mainly incorporated just to provide
better service to general public. The main funding is done by the central government. Some of
the example of Public sector companies are government health clubs, schools, oil corporation,
railways etc.

1.2) Explain the different structures within the businesses.
The different types of business structure are as follows:
Hierarchical Structure: This is the structure of business organisation where
subordinates need to work according to order which have been given by top level of
management. It follows the layout of Pyramid (Richter, 2013). Executives and managers can use
the hierarchy as motivation for employees that show supervisory or managerial potential to
perform at a high level of productivity.
Flat Structure: This is the organisational structure where level of management are very
few in numbers. This structure helps lower level of employee's to take active participation in
decision making. This helps to reduce the salary of middle management which helps to reduce
the annual budget cost of company. The main disadvantage of this structure is that multinational
companies cannot adopt this structure.
Matrix structure: A matrix organisational structure can be defined as the structure of
company where two or more than two types of structure are being followed just to enhance the
performance of an organisation. In this types of organisational structure, employees are very
skilled in functional departments, and project teams can get these highly-skilled employees
whenever their services are needed (Bharadwaj, 2013). The main disadvantage of this types of
organisation is that the overall cost of organisation increases here just because of additional
number of top level of management.
1.3Describe how the local, national and global economic environment impacts on the named
business.
The economic environment have a great influence with the help of internal and external
variables. The internals factors that influences the business activity are materials, strategies and
procedures. Where as external variables that can influence the organisation activity are political,
social, lawful factors. This factor can change the working style of an organisation at any time.

TASK 2
2.1 Importance of Accounting in success of a business
Accounting is a very crucial part of the company because it helps the managers in
knowing about their position or what they have earned in whole financial year. Through this
method investors can easily know about the quantitative data of the company and also enables
the firm in comparing their position with their competitors (Trevino and Nelson, 2016). By
taking help of accounting methods, various strategies can be formulated which will be helpful for
the organisation in achieving the preset objectives or goals. Various kinds of accounting system
can be used by the managers of Vodafone in providing actual condition to the stakeholders of the
firm. These accounting statements are given as under:
 Income statement
 Balance Sheet
 Cash flow Statement
It is very essential for the organisation to keep the accounting books up to date so that correct
information can be received by the managers when it requires. It also helps the firm in assessing
the transaction of firm so that managers can easily plans about spending and budgeting of
departments projections.
TASK 5
5.1 Different functions of HR Department in Business
HR department is concerned as one of the essential division of a firm because it assists
the organisation in determining the actual requirements of human resource in the organisation
(Mills and McCarthy, 2014). As it is main department so it has to perform various functions in
the organisation. This division helps the firm in hiring and recruiting the new candidates along
with training of them. This department also performs some different functions which are given as
under:
Training and Development – This is an important function which have to perform by
the HR manager of any firm. In this function they have to provide training to the new or existing
employees of the organisation so that they can aware with their roles and responsibilities and
perform their duties in well manner.

Management of conflicts – As Vodafone is a multinational firm so their work is divided
in various segments so the chances of conflicts are higher in the workplace. Therefore, it is very
essential duty of HR manager to analyse the origin of conflicts and issues and remove them
accordingly.
Recruitment and Selection – It includes hiring of new candidates in which they can
select any methods from various methods of hiring applicants such as campus placement, media
advertisement and consultancy so that talented and able candidates can be hired for the firm. The
main objective behind this function is to acquire new talent in the organisation so that their skills
and experience can be used in future (Lehoux, 2014).
5.2 Key features of employment legislation
Employment governance is the law that regulate work within the workplace with
everyone who works and evidently this affects on the working style of the employer, employees
and unions directly. The employment law regulates the relation between the employees and
business. By willing to essential legislation, the two managers and their staff members can assure
that their acquiring forms, expulsion forms, and their working environment in general, are
sensible for each individual. Employment law is to protect employees rights and set forth
employers compel and obligation. Employment legislations differ from country to country and a
number of the key features of employment legislations are as follow:
 Age discrimination- The law protects the employees from being discriminated on the
terms of their age. A set guidelines are formulated to define the proper age of working
and retirement which should be duly followed.
 Bullying and harassment- The law protects the employees from being bullied and
harassed by the employers. And, if found they can be punished according to the law
guidelines.
 Disability- The employees law are formulated for the employees who are disabled and
can possess some benefits in that regard (DaSilva and Trkman, 2014).
 Discrimination based on race, religion, sexuality or gender- The law prevents the
employees from the discrimination on the basis of religion, caste or creed and if any
employee is facing any issues regarding the discrimination then employment legislation
will come to aid.

 Employment contracts- Health and safety procedures are set in position to prevent staff
from being harmed or becoming ill due to work. Businesses are also accountable to
ensure the health and safety of their customers.
 Equal pay- the employees legislation defines the law for the employees that equal pay
should be given for the same work performed by the employees and no discrimination
has to functioned.
 Minimum wage- These laws Labours are guaranteed a bare minimum hourly wage rate
per hour to the employees.
 Parental leave- Parents are qualified for paid leave from work not long after their kids
are conceived. The organisation must keep their post open for when they come back from
maternity or paternity (Wixom, Yen and Relich ,2013).
 Redundancy- the employee law prevents the employees from redundancy and a company
cannot dismiss the employees immediately. The company is required to give notice
before a month and in some cases company provides one month salary to the employee
for basic needs.
 Working hours- The law assigns appropriate working hours for the employees and
maintain proper balance in their personal as well as professional life.
TASK 3
3.1 Key accounting information using profit and loss accounts.
Vodafone PLC (Vodafone) (in £)
Turnover in millions 55780
Cost of sales -49430
Gross profit 6350
Other expenses -1250
Operating profit 5100
Associates & joint ventures 570
EBIT 5670

EBITDA 7320
Depreciation & amortisation -3330
Interest paid (Net) -470
Pre tax profit 3230
Tax paid net -410
Post tax profit 2820
Minority interest 3
Extraordinary items 0
Discontinued operations -883
Profit available for dividends 770
Ordinary dividends -840
Non equity dividends 0
Retained profit -205
Post tax profit 1805
Minority interest 3
Non equity dividends 300
Profit for financial year 2240
From the above table it can be seen that the profit and loss statement of Vodafone for
year 2016. Vodafone is a telecommunication company which is working in the various part of
the world. Since last couple of year Vodafone have shown great faith from customers point of
view as they provide various offers with minimum call charges. In year 2016 the total revenue of
the company was 55,780 million and where net income of the firm was 2,240 million.
TASK 4
4.1 Describe the stages of team development.
It is necessary for every organisation to have proper team development where team need
to get mature over the period of time. There are five different stages of team development which
need to be followed by Vodafone and they are listed below:
Forming: This is the first stage of team development where members are in processing of
knowing each other and getting at comfortable zone with them. Here entire team must be
introduced with every member of the company (Blackburn, Hart and Wainwright, 2013).

Storming: This is the second stage of team development where group members begin to
show their actual style. Controlling becomes the major problem in this. Vodafone must let their
team member to tackle with the problem which may occur due to conflict.
Norming: In this stage of team development, company start to notice the individuals
according to there strength and weaknesses. Here, Vodafone need to focus on every team and
their individual member regarding their performance.
Performing: The fourth stage of team development where team members are confident
regarding work and well-known with their projects. In context of Vodafone, they need to make
sure that their team are now self controlling, practical and loyal as well (Spieth, Schneckenberg
and Ricart, 2014).
Adjourning: This is the last stage of Team development process where projects are near
to wind up and members are ready to move in next direction. Here, Vodafone make sure that as
project has been ended but still evaluation must be done on the basis of work done by different
team.
THE FIVE STAGES OF TEAM DEVELOPMENT, 2018
4.2 Carry out an analysis to determine own and others’ roles within a team
Action oriented Roles: In this roles, the team member of Vodafone must be ready to face
new challenge at any time where they need to ensure that work is completed successfully with
different ideas and innovation.
People Oriented Roles: In People Oriented Roles the team of Vodafone make sure that
their work is being done very smoothly by exploring all the relevant opportunities.
Thought Oriented Roles: This is the role with in the organisation where they need to be
innovative with there ideas. In context of Vodafone, their team must come up with the news
Illustration 1: Stage of Team Development

ideas where specialist can provide additional knowledge to achieve the target of team (Pearson,
2017).
4.3 Assess three motivation theories.
The three different types of motivational theories which can be beneficial for Vodafone
to achieve their targets in shorter period of time are listed below:
Maslow's Theory: This is one of the theory from which Vodafone can fulfil the basic
needs of their staffs. This theory have been divided into five different parts and they are
Physiological, safety, belonging and love, esteem and self-actualisation needs. Here, companies
main target should be to provide basis needs to every employee' which cover food,shelter,
clothes etc., This theory can play crucial role in motivating the employee's of Vodafone.
Alderfer's ERG theory: This theory is related with three different factors and they are
Existence, Relatedness and Growth. In context of Vodafone, they can follow this theory from
which there will be complete information regarding administration which can help employee's to
complete there work on time to achieve desired goal (Souto, 2015.).
Herzberg's motivation: This theory helps to fulfil the job satisfaction of every employee
with in the premisses of organisation. In terms of Vodafone, this motivational theory can be
beneficial because it will help to provide proper working condition to every employee's. Also, it
will provide all those facility to members which are required by them by finding the main reason
of dissatisfaction between employee's.
It will be suitable that Vodafone follows Maslow's Hierarchical theory from which they
can understand all the basis need to their employee and what can be done to satisfy there wants
in future. Also, it can help to motivate each member which can enhance the working capacity
and in result company can accomplish their goals.
4.4 Describe different types of leadership style.
Leadership can be defined as the action of leading or guiding the group of people
regarding particular work. It is the responsibility of every leader to motive there subordinates by
providing appropriate working condition. In every organisation leaders play the key role because
it helps to enhance the efficiency of employee to meet organisation goal. There are different
types of leadership style that can be followed by every leader and they are listed below:
Democratic Style: This is one of the most popular leadership theory where decision are
taken only after the group discussion(Lehoux, 2014.). In context of Vodafone, they need to

distribute the authority to their subordinates so that they can take active participation for the
welfare of company. They must allow their employee's to share there ideas, views and opinion
while taking decision from the companies point of view.
Autocratic Style: In this leadership theory, the power is in the hand of single person and
major decision are taken by them and no one have the authority to challenge their decision. Here,
team members are not allowed to take any kind of decision in the premisses of company. In
context of Vodafone, autocratic style of leadership is not being followed as it can create dispute
between top management and employee's and even sometimes decision which are taken by top
management can be wrong too.
TASK 6
6.1 Explain the impact of customer service on business success.
The companies which are connected with network operating must be connected with
there customers. For best achievement and result customers play the vital role. In context of
Vodafone, they must be aware that what their customer wants from them and how they can be
provided in short period of time (Arend, 2013). It is the major responsibility to provide proper
customer services by providing different types of offer on time to time which can also grab
additional number of customer. They have well experienced team that can provide guidance to
new users. Even they have opened various Vodafone store so that customer can reach easily. As
there is vast competition in field of network operating, Vodafone provide existing coupon offer
to their users which is enhancing the performance of company.
6.2) Explain the benefits of customer profiling to a business.
It is compulsory for every business organisation to maintain customer profiling as it helps
to take necessary decisions in future. At present, most of the marketing plans fail because various
company do not focus on the profile of there customer. In context of Vodafone, they prepare
customer profile according to there need and wants in future (Richter, 2013). They provide
various services according to the requirement of customer where services like recharge for 5, 10,
20 ,30 and many more can be available with different price list. It is upto the choice of customer
which kind of plans they required in there networking SIM. Even company can do lots of
improvement in future where they can interact with those customer who are connected with

Vodafone since longer period of time and discuss what can be done to satisfy them. In simple
words it can be said that customer profiling is done just to increase the profit of an organisation.