Contemporary Developments in Business and Management Report - Vodafone

This report provides a comprehensive analysis of Vodafone, a multinational telecommunications company. It begins with an introduction to Vodafone, highlighting its history and current challenges, including increasing competition. The report then delves into the external factors influencing Vodafone's growth, using PESTLE analysis to examine political, economic, social, technological, legal, and environmental factors. It also applies Porter's Five Forces to assess the competitive landscape, evaluating the bargaining power of consumers and suppliers, the threat of new entrants and substitutes, and industry rivalry. Furthermore, the report explores the influential policies and decision-making within Vodafone, focusing on the marketing mix and strategies employed to maintain customer loyalty and gain a competitive advantage. The report concludes with an overview of the findings and recommendations for improvement.

Contemporary
Developments in Business
and Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Primary External Influences........................................................................................................3
TASK 2............................................................................................................................................7
i. Influential Policies and Decision-Making Within Organization..............................................7
ii. Evaluate Effectiveness of Organization’s Response...............................................................8
iii. Demonstrate Some Areas for Improvement in Response......................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12
APPENDIX 1.................................................................................................................................13

INTRODUCTION
Telecommunication is a way in which through transmissions signs, words, writings,
images, signals and sounds are sent so that communication within people can be maintained.
This process can be completed when there is a technology participating in it. Telecommunication
comes from a Latin word known as communicatio which was a social information exchange and
telecommunication is plural form of this which involves a lot of technological use.
Vodafone is a British multinational company which has its headquarters in London. This
firm was founded in 1991 and is a public limited company. As of 2019 establishment is going
into loss because of competition which business is making for themselves and it can be improved
if organization knows what drawbacks of Vodafone are. The report is going to cover external
factors which influence growth of organization and corporate social responsibility and
sustainability in market of company. These factors help establishment to know themselves better
for better improvement and growth of business.
TASK 1
Primary External Influences
PESTLE
It is very important to understand external factors which are influencing growth of firm
so that they can make their strategies accordingly.
Political Factors
 Company is having an advantage because government is supporting international
companies to invest, in which Vodafone is considering. Therefore, profit rates of firm is
stable. Organization has expanded itself in Africa, Middle East, Europe and Asia Pacific
(Greasley, 2017).
 Political governments of all countries around world have increased their taxes which is
making company demotivated for making a lot of profit like they used too before.
Government is also making a lot of laws for benefit of employees but that is creating a
negative impact.
Economic Factors
 Vodafone is paying wages in country to employees low because of high rates of
unemployment. There are a lot of people who willingly want to work in Vodafone

because they just want jobs and increase there income and have an improved lifestyle
which is making firm have a better profit economically (Harmon, 2019).
 Company will have to spend a lot to make 5 G come in a lot of countries and to get an
advantage Vodafone wants to be first one. Firm is investing in the latest technologies as
well which is coming in market.
Social Factors
 Society is getting technology amiable and it is very important for firm to target right
customers in organization. Organization is targeting lower and upper class so that they do
not have to face any troubles in getting more customers in business. There are a lot of
offers and discounts which is being served by company.
 Vodafone is providing customers with right services but competition is such in market
that business is not being able to grow since Vodafone is not being able to provide with
right measures. Culture of countries have to be considered by company while promoting
brand.
Technological Factors
 Experience in this industry does count and Vodafone know that there is a need of
innovation and creativity which can bring back there customers in firm. Technology will
give company a great advantage in market that competitors will not be able to make a
place like Vodafone in market.
 It is because competitors have found a new technology in market therefore Vodafone
could not maintain their customers loyalty in establishment. Technology is one factor
which is keeping company what it is today but if they do not get new technologies all
time then they will not be able to capture market like they did long back (Zavadskas and
et.al., 2016).
Legal Factors
 Vodafone is one of those establishments in market which makes sure that they are being
fair to all customers and employees of organization. There are health safety measures as
well which is making company have right employees working in business.
 Wage's law for employees is going to make company have a tough time and firm will not
be able to make as much as profit as possible. Organization is trying to follow all
measures and laws which countries have all around world because strategies of business

will be according to that factor and it is very important for firm to follow those so that
they can make establishment work in one direction.
Environmental Factors
 Vodafone is still trying to reduce there carbon footprints in world so that they can
become eco-friendly company which will have a better future in market. Business is
following laws and regulations which government is put on market for environment
betterment because of globalization which is taking place. Establishment is controlling
that factor so that they can make government successful in mission they have.
 5 G plan of Vodafone is a very radio active plan and can be very dangerous for human
kind therefore company is still trying to make that factor an improved before they launch
it in countries. It is very important for firm to be giving customers safety measures as
well therefore testing and improving product is always better.
Porter's 5 Forces
Porter's 5 forces are given by Michael Porter in 1980 and this analysis deals with
competitive advantage in market. This will help company know there strengths and weakness
accordingly they will be able to take measures to improve establishment which is a very
important factor to get a competitive advantage.
Bargaining Power of Consumers
Bargaining power of customers in firm is very high and Vodafone has to appreciate that
factor so that they can improve accordingly so that they can attract more customers. There are a
lot of offers and discounts which organization is giving to customers and this is because of
competition which is growing in market in this industry. Customers are not loyal to business
because customers will shift from one company to other when they get a better offer or discount
on products and services provided to them. Switch from one business to another business is also
low therefore customers do not find it difficult from shifting from one firm to other firm
(Renwick and et.al., 2016). Customers can easily be shifted from one company to other because
of offers and discounts other companies are providing to customers. Custom-made always want
the best service at lowest price so that they can make most. Vodafone is investing so much
therefore it is very important for company to increase rates of customers in company because it is
visible that from past few years customers in company have reduced. To get that power of

customers again business will have to come up with different measures and strategies so that
they can get customers back by providing services at a very low rate so that customers can get
loyal with company again.
Bargaining Power of Suppliers
Bargaining power of suppliers is medium in firm because business has a lot of suppliers
who are providing raw material in company. Vodafone is leading organization in United
Kingdom and will have a lot of substitutes in market but there is no one who will want to leave
supplying to such a company for a long run (Wu, Song and Shen, 2017). Prices of suppliers can
be bargained by organization and not by suppliers of business because business has full control
on suppliers. Having a lot of experience in industry Vodafone will know how to deal with
supplier and if any supplier is asking for more price than firm can shift to other supplier.
Company must combine with Nokia, Samsung, Apple, etc companies so that they can promote
themselves in market better and that will help Vodafone to have a better standards for
themselves.
Threat to New Entrants
Entrants in this industry is low because there are a lot of barriers which an organization
has in market which will not be supporting for other companies. There are huge licence fees
which a new entrant will have to pay if they want to get inside market and that not all companies
can afford. Changes in technology is also very rapid therefore it is impossible for any other
organization to come in competition of Vodafone (Ruff, 2015). Building an infrastructure is also
very expensive and not all entrants will be able to deal with those on time and build that up for
betterment of firm. And before starting a new entrant there is a high investment which is required
therefore it is not a work in which other companies others want to invest. There are a lot of issues
which company has regarding regulatory issues in market and internal factors of company and it
is very important to solve all issues in market.
Threat to Substitutes
There is a high level of threat of substitute in industry therefore Vodafone has to be even
more careful with services they are providing to customers so that customers do not shift from
one firm to other (Budhwar and et.al., 2017). Uses of landlines are reducing with time so
Vodafone must not invest in this section much and business should invest in videoconferencing
and other network sites which are being used by customers so that organization can have a

competitive advantage in market and other substitute can not become a problem for firm. Other
competitors are shifting from 4 G to 5 G very soon therefore Vodafone will also have to improve
themselves so that they can make a competitive advantage in market. Competition in this
industry is tough therefore it is very important for business to provide right services and speed of
internet. Companies are providing customers with a good speed in firm so that customers can
feel satisfied with establishment.
Industry Rivalry
Rivalry in market is high and Vodafone is trying to make a place for themselves in
market after all competitions have come in market. There are a lot of competition which gas
come in market but company has a lot of experience therefore it is very easy for company to
have a standard for themselves. Business is doing very well in market even after so many
competitions have come up and there are more chances for company to get more products and
services for customers so that company can get a lot of advantage for themselves. Vodafone is
promoting themselves time to time so that they can have a better stand for themselves in market.
This industry has an open market for competitors in market therefore Vodafone is always
working for getting competitive advantage in market. Vodafone is a little discriminating except
price of company (Zancul and et.al., 2016).
TASK 2
i. Influential Policies and Decision-Making Within Organization
There many communication mix in marketing and those are public relations, sales
promotions, advertising, personal selling and direct marketing. These are factors which is used
by Vodafone to reach out to customers is that they can gain trust of customers. It is very
important for company to have a trust relationship with customers so that customers remain loyal
to company. There is a lot of competition in market therefore need of strategies and methods to
get a larger base in market is very important (Higgs and Dulewicz, 2016). Sales promotions have
to done by Vodafone because company is having lose in market because they are not being able
to make most since competition is increasing and there are a lot of customers who are leaving
company. Direct marketing is also being done by Vodafone because customers should be in
direct contact with company so that if any changes or feed backs they have for company can
directly reach company and no third party is involved. Company understanding market better so

that decisions of company can be made accordingly. It is very important to keep market in right
direction so that company can have a standard for themselves in market and that is a very
important factor for company. Targeting right customers for company is very important and
Vodafone is not being able to do that therefore company is not being able remain stable in
market and that is a very important factor for company. Vodafone is getting in a lot of customers
because of the advertisement the company is doing for themselves and that is by getting a lot of
new ideas from outside and hiring new employees who are helping the company in a lot of ways
possible. This time the company is having clear goals and objectives for the organization to make
a better understanding for themselves.
Business has to make decisions for benefit of customers and getting more customers in
company and that is a very important task for company as of now because there is a lot of
competition in market and company will have to make decisions according to competition in
market so that company can have a competitive advantage. Firm will have to use the right
methods to advertise the organization without hurting any culture or human sentiments and that
will be the best for the company. There have to be public relations which the company has to
maintain so that they can achieve the aims and goals they have for life which will help them to
grow further (Davidsson, 2016). The company has started sending mails, messages, etc so that
they can make the customers more aware of the products and services which the company is
providing to the customers. This will help the company to make the customers stay in the
company for long and the retention of the customers will reduce which will help the company to
have a better understanding for themselves. The company will have to make a lot of changes if
the company want to remain in the market for a long run and there are a lot of changes which the
company can make for the betterment of the company.
ii. Evaluate Effectiveness of Organization’s Response
Vodafone is very good at taking decisions for the company's benefit because they know
what is right and what is wrong for the company. This sense of making decisions for the
company comes with experience and there is a lot of experience which the company has
therefore the company is being able to make the best decisions for themselves. Vodafone had
taken a lot of decisions recently and those need to be changed for the benefit of the customers
and that is a very important factor (Weichhart and et.al., 2016). The customers are having a
positive impact on the company and that is a very good benefit for the company because there is

a lot of factors the company is working on in the present time. Vodafone is working really hard
for making the company have a positive impact so that the company will be having a competitive
advantage in the market because there are a lot of competitors which are coming up in the market
and Vodafone has lost a lot of customers. The company is not making a profit in the 2019
because of the loss the company had to face because of the competition which is coming up in
the market. Vodafone got its maximum income from India but in India the competition has
increased and the company did not have profit instead they lost a lot of customers because of this
factor which is very bad for the company. It is because of lose that the company has not been
able to stay efficient in the market from a long run and the company must try to make themselves
better so that the company will be able to come up in the market again.
All the other networks all around the world are ready to launch 5 G network speed for the
customers which is a very good sign but Vodafone is still not prepared which can made the
company face more lose in the future. Investment is a lot when it comes to 5 G plans for the
company but it is a necessary change which has to be made by the organization so that the
company will be able to make a benefit out of it. The advertisements the company came up with
were not so good as well but now the company can try to make that factor work and improve on
it so that there is a better understanding of the factors which are influencing the organization. It is
very important for the businesses to know about their own company the most and Vodafone
knows what measures they have to take so that they can get the customers back in the company
and that is a very important factor (Kauppila, Härkönen and Väyrynen, 2015). The company is
been having a lot of competition therefore it is very important for Vodafone to use the right
measures and strategies now otherwise the company will have to close very soon in a lot of
countries. The employees of the company are getting trained as well so that the services the
company is providing are right and the company will be able to make a lot of profit and will be
able to get the customers back in the company.
iii. Demonstrate Some Areas for Improvement in Response
The company will have to use different methods for attracting more customers in the
company that is they will have to get the right people in the company who are loyal to the
company. There have to be more offers which have to be added in the organization so that the
company will be able to get more customers. It is because of the competition in the market that
the customers are shifting from one company to the other (Chang, 2016). To enter this market the

other companies have to invest a lot and after investing the investors have to start by giving free
services in the beginning so that the customers start to take the company and shift to the new
company. The customers can shift easily from one to another therefore the companies in the
market must keep changing their services and methods to make sure that they are providing the
customers with the best of services. Vodafone has had a change in the offers a lot of times and
till date they keep changing according to the competition in the market. The promotions have to
include campaigns and other methods to make the people or customers aware that they are
coming up with different strategies for the benefit of the customers. It is the lack of
communication between the company and the customers are shifting from one company to the
other. Vodafone is making use of the latest technologies and making a lot of employees work for
them so that the company can take out more innovative and creative ideas for the company to
function and that is a very important factor so that the company will be able to grow.
The company is trying to improve in a lot of fields so that the company can make a place
for themselves in the market again like they had before (Derous and De Fruyt, 2016). The
company has set a lot of standards for themselves and it is very important for the company to
maintain those standards so that they can develop themselves which is going to be very
beneficial for the organization. Vodafone has to have a lot of new employees in the company so
that there are some new thoughts which are coming in the company so that the organization will
be able to grow themselves more and that will be very beneficial for the firm. The company will
have to start planning for investing in 5 G planning so that the company does not have another
pressure on them in the future and that will make the company have a lot of lose. The
competitors are already having a lot of advantage in the company and this will just make the
company have another factor which they will have to improve for the benefit of the organization.
CONCLUSION
It is very important for Vodafone to get back to the standards they had set for themselves
in the market and that is a very important factor for them. There are a lot of competitions which
are coming in the industry and the company will have to try there best that they do not lose
customers because of that factor. There are a lot of changes which are taking place in the
company because of the competitions which are coming in the company and that will help the
company to make a place for themselves again. Vodafone is having a lot of positive impact of

the external factors of the organization and the company can make a lot of profit but it is because
of the competition that the company is not being able to make a place for themselves in the
market. The experience of the company is a lot and the company is putting there thoughts
together so that they can beat the competitors in the market so that Vodafone can become the
leading company in the market.

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