Vodafone: Global Business Environment and Strategic Analysis

This report provides an in-depth analysis of Vodafone's global business environment, examining the key factors driving globalization within the company, including technological advancements, consumer growth, and global competition. It delves into the strategic challenges Vodafone faces, such as political risks, cultural diversification, currency fluctuations, and regulatory hurdles. The report also explores the influence of globalization on Vodafone's organizational governance, leadership, structure, culture, and functions, as well as the impact of ethics and sustainability. Furthermore, it discusses effective decision-making in a global context, strategies for entering global markets, and offers recommendations for adapting Vodafone's organizational structure and decision-making processes to thrive in the global arena. The report concludes with a summary of the findings and recommendations for Vodafone's continued success in the global market.

Global business Environment.

Table of Contents
INTRODUCTION ..........................................................................................................................3
P1 Key factors of Globalization in Vodafone group plc.............................................................3
P2 Strategic challenges in globalization......................................................................................6
The strategic challenges caused by globalization .......................................................................8
P3 Influencing of globalization on organization governance, leadership, structures, culture and
functions. .....................................................................................................................................8
P4. Influences of ethics on organizational functions ..................................................................9
Influences of sustainability on organizational functions ..........................................................10
McKinsey 7s model of Vodafone .............................................................................................11
P5. Different ways decision-making can work effectively in a global context.........................12
P6. Ways (strategies) to enter global markets............................................................................13
Recommendations of how Vodafone Plc should adapt its organisational structure and
decision-making processes.........................................................................................................15
CONCLUSION .............................................................................................................................17
REFERENCES................................................................................................................................1

INTRODUCTION
Global business environment is defines as the environment in different sovereign
countries, with is external to the environment which is in the home countries, and these factors
influence decision making on use of resources and capabilities. There are types of global
business environment which are external and internal. Vodafone Group plc is a British
multinational telecommunications company. Its registered office is located in Newbury,
Berkshire, England and its global headquarters is based in London, England. It predominantly
operates services in the regions of Asia, Africa, Europe, and Oceania. Among mobile operator
groups globally, Vodafone ranked fourth (behind China Mobile, Bharti Airtel and Vodafone
Idea, (of which the Group owns a 45% stake). Vodafone is one of the world’s largest tech comm
providers, bringing connectivity to over 650 million people, including almost 20 million
broadband customers. Vodafone has a primary listing on the London Stock Exchange and is a
constituent of the FTSE 100 Index. In the report key factors that drive globalization will be
analysed. Also strategic complexities associated with operating in a global environment will also
be determined. Influence of global market on organization's culture, structure and function. Light
will also be put upon the influence of globalization on organizational decision-making and
strategy.
P1 Key factors of Globalization in Vodafone group plc
Factors of globalization changes the business of company which is associated with one country
that can operates in multiple countries and some key factors are discussed below-
Increasing in technology development:- Vodafone has reduced cost and improve more
network, moved to broadband from narrowband, also provide wireless connectivity of landlines.
Technology development in Vodafone on the way to develop 5G network for faster speed and
save time for users (Canuto, 2020). The best strategy for technology among customer they have
allowed direct transmission of data and users can speed them by transferring data at many times.
Strategy for company in having secure transmission at small amounts of data in mobile
networks.
Benefits-
Advance technology make faster and reliable to communication in company. Improved security
for business and that can be greater results in productivity and efficiency. Technology

development also increase production capacity of Vodafone and also Job opportunities as
production increases therefore more workforce is needed.
Challenges-
If company has adopted wrong software that could be bigger challenges for company and some
employee may dislike new update system, others have fear in new technology that will over take
their jobs. In case of increasing technology development there are also challenges of data
security as Vodafone stores large amount of data on their systems and there are chances of
getting hacked.
Consumer growth:- Consumer of Vodafone company are more satisfied with their network
speed and security (Cepel and et. al., 2019). They offer many more free data for high amount
recharge and their services always provide yearly based data which is more beneficially for
teenagers. Vodafone has make promise to their customer for platinum network. The management
in company are more available for their customer queries and learns from customer feedback. To
help their customer in recharge due to COVID-19 lock down, Vodafone programme allow
recharging prepaid account and for every recharge retailer will get more benefits from company.
Benefits-
Company has provided platinum network for their growth in consumer and updating 5G
network for maintaining more speed and security. This also increases their satisfaction level and
also enhances their loyalty for the company. Providing the consumer this convenience also
increase in promotion of the company as happy customers are the source of word of mouth
publicity.
Challenges-
In recent time many more rural area people are unable to connect with their network, it can be
big challenge that company facing in growth for customer. This convenience sometimes makes
the consumer more lethargic and increases their expectation for the future and if their
expectation are not met then they shift to other networks.
Increasing in global competition- Vodafone is British company, it is known as worldwide
market coverage and have great distribution. As there are many followers for Vodafone and have
more competitors among the global including such companies like Bharati Airtel, china mobile,
Verizon, many more (Hamilton and Webster,2018). As Verizon network that fibre cable for
connectivity with less speed and security but as compare with Vodafone speed is fast and have

more advance technology. In recent time many countries has cancelled deal from china which
has great market share and Vodafone has more market share and revenue.
Benefits-
Entry of Vodafone in competition market has brought more global practices and providing better
services at domestic market (Kaur). As company has more follower at worldwide with
competition to other company. The customers benefits from the competition as the company tries
to provide more benefits to overcome competition. Also, to deal with the competition the
company focuses on innovation which leads to growth of Vodafone.
Challenges-
To develop more plans for services for customer and maintaining higher speed and security for
followers it adds on to the cost of Vodafone. The company can also indulge in wrong practices
to beat comptition.
Developing more services at international market- Company has provided more services in
developing international business while with connection voice, messages services at international
wholesale telecoms market. Flexibility for owning different needs in cloud and hosting process
for organization (Kokodey, Gnezdova and Lomachenko,2018). Providing cyber security services
devices, network and apps. Main strategy for developing 5G network at worldwide range so that
can make mobile communication more mobility to use. Vodafone have simplifying
communication management which helps in reducing costs.
Benefits-
While developing more services that support international market that can be beneficially for
company it can earn high sales on profits by selling in different countries where domestic prices
is not being satisfied. The company gets an opportunity to know their strengths and can also
know their potential. This also helps in increasing the market share of the company.
Challenges-
Entering into new international market with more services company has to face many more
challenges in earning more profits and building up trust. It adds on to huge costs and also
increases complexities.
Government policies- Government has make an appropriate plan for rural area network and also
suggested investing more in development of network of rural areas. Employment regulation for

employee in company with more benefits and data security about their network. Vodafone do not
break down the laws and norms of government.
Benefits-
Technical scales helps government to play role in market and protect consumer from the internet
corrupt data. Adopting to the government policies helps the company to avoid lawsuits and
creates a good brand image in the minds of people.
Challenges-
Vodafone has to faces many more problems or challenges in market while government policies
changes and regulation for telecommunication as it take time to adopt sometime new changes in
market from government apart. The company also has to indulge in various merger and
acquisition to enter into the new market and also have to pay taxes as per the government
policies.
P2 Strategic challenges in globalization
Vodafone have faced many strategic challenges while doing business globally such as training,
poor transportation, expansion of cots or distribution of cost, poor communication facilitate and
infrastructure (Milovanović, Milovanović and Radisavljević,2017). Here are some challenges
that are faced by company are follow below-
Challenges in political:- In most of the countries, telecom industry has recently being set up
were they state operates or state owned. Development has results in increasing local and foreign
private participation in telecom industry. Vodafone has invested more in telecommunication
sector for improve more existing infrastructure, to satisfy demand or to benefit the rapid changes
of new products and services. Currently broadcast and telecommunication sector are being
separated from each other, from this separation Vodafone builds up many strategies which are
may be against to political structure but company do not break the barriers which are make by
government.
Culture diversification- Vodafone business is globally business which have multiple culture
with different language, values, customs (O’Rourke, 2019). Hence, company has to manage their
work according to their culture which is extremely difficult in deigning the business strategy for
such environment. For such culture company has different employee with skills and well
knowledgeable about the culture so that they can help followers to solve out their problems.

Diversification of currencies:- In having global business there will be fluctuation of currency
and company have to make profits according to there currency. Stable governments currencies
are less in developed countries. In local currency market Vodafone can also involve in some risk
currency.
Regulation challenges:- Changes in laws and norms by government and if in some company if
legal laws are week for (business) than company has to face many challenges and involves in
risk taken (Sultanova and Chechina, 2016). Vodafone should be clearly defined before starting
new business in that country so that it could not create some difficulties for company to invest
their software. Company sometime also face challenging regarding changing banking laws that
can affect money to their existing country or can make limit assess of funding.
Diversified risk:- Vodafone started new business in some countries that have poor infrastructure
it can also cause barriers to start business as well economic condition of that country is highly
unskilled with employee than it may cause loss to their company. Vodafone involves employee
from that country where they invest for business it may cause corruption or crime from that
employee and company have to take risk for hiring labour from investing country.
Independent- Vodafone independence can create more opportunities for doing globally business
while taking these opportunities company can raise their advantage towards country
(Tallman,Luo and Buckley, 2018). Company has to manage the rapidly change and impact of
globalization in their business.
Customer diversification:- It is big challenges for company to meet with the needs and wants of
customer, as Vodafone is telecommunication company so the satisfaction of customer will be by
using one product and services. In changing global organization it can create complexity for
company towards the customer in fulfilling their needs and wants against their network issues.
Diversification of shareholder:- The great challenges company has to possess in shareholder
diversity at global business. Here, stakeholder is party which is interested in company either
affected by their business and their primary shareholder in regular corporation with its investors,
employee, suppliers and customer (Hamilton and Webster,2018). They can identify relationship
with some other business and it can understand their expectation and needs, developing
communication strategies in influencing their behaviour and attitudes. Vodafone stakeholder
have positive impact on business and helps in reducing others business negative shareholder.

The strategic challenges caused by globalization
The strategic challenges faced by globalization in terms of:
Business risk – Business risk are those factors that will lower the profits of Vodafone and are the
threats for the company. The company can face the challenge of network hacks which leads to
leak of data which are confidential. Taking the business risk and adopting new technologies can
also add on to the security of the system for Vodafone.
Diversification strategies – Vodafone has adopted the cost leadership generic growth strategy to
diversify as it provides the company to explore new product opportunities in the new markets.
But it also leads to lack of innovation and also it encourages lower quality of products.
Supply chain – As due to globalization also the company has to expand their supply chain which
leads to increased costs and complexities. But the company can get the advantage of expanded
market and customers.
P3 Influencing of globalization on organization governance, leadership, structures, culture and
functions.
Influencing of globalization on leadership-
Globalization has aspects that how organization will interact with global environment. Rapidly
changes in political, economic and social environment can affect the business of Vodafone
(Cepel and et. al., 2019). The system of globalization also impact on governments and political
factor around the world range. Most important technology is rapidly changing and also establish
that how business have to conduct that. While there are much leadership theory, here
transformational leadership theory is universally accepting the emerging of leadership
approaches and have capabilities in reaching across the culture of organization performance.
Vodafone's leadership skills and practices helps in developing themselves or other in
organization towards changing business globalization and have ability to solve complexities of
business.
Influencing of globalization on organizational structure-
When there is affected on globalization than it can also changes the impact of structure of
organization with new customer, new suppliers, new market and new partner with their business
and it can bring out many more challenges for Vodafone's structure(Tallman,Luo and Buckley,
2018). Most of the product's strategy go up with their market strategies in company and

additional it includes planning strategies in globalization for accessing better and low production
cost, they can also change their strategy according to their market strategies.
Affected organizational culture of global business-
Culture means it is an idea, custom and social behaviour of person in a particular society.
Vodafone can affected by international business in something that could not be understood and
avoid some misunderstanding between employee and clients and also be sure about that how
they are representing themselves in market with their products and services. In business
communication plays important role and sometime effective communication can also effect their
business in falling down in new market(Canuto, 2020). Vodafone's should be aware about
different culture with different attitude in international business. This can be related to their
informal approaches and cooperation in the organization. These attitudes towards management
can defined roles in team or individuals. Hence, it is being important for Vodafone to be aware
about their target market approaches towards their organizational structure.
Affected of organizational function of global business-
Global business can affect the present climate of economic and helps in successfully the function
of management in Vodafone. Companies needs to set a proper defines about operation and
innovative idea that can help organization to be successfully in both and local market. Customer
in Vodafone have to develop or encourages others for being followers of this company and
financial services in these companies produce some different new challenges for customer during
the production or service time(Kokodey, Gnezdova and Lomachenko,2018). In business strategy
of Vodafone in global business they can build up long term relationship with their customer
association. This plans helps them to have more advantage in cost, growth and expansion and
also attract other customer. A global operation allow the business more efficiency productivity in
market. Company can finance more in adopting new techniques which is more beneficial for
followers as well as have huge amount of profits.
P4. Influences of ethics on organizational functions
Ethics are the moral philosophy that study what is right and what is wrong in the
behaviour of human. It is a code of conduct and deals with moral principles. Organization ethics
deals with applying general ethical principles and standard to business activities, behaviour and
decisions. It is the way Vodafone responds to an internal and external stimulus. Organizational
ethics and organizational culture goes hand in hand (Lindebaum, Geddes. and Gabriel, 2017).

Organizational ethics are the principles, values and standards by which Vodafone is operating.
Ethics plays an important role in functions of the organization and also determines its success
and failure. The following are the influence of ethics on organizational:
It builds a positive corporate culture – The morale of team member increases as the
organization focus on investing resources to develop policies and procedures that encourages
ethical corporate culture. These policies open doors for growth and development.
Reduces liabilities – If the organization works as per the ethics and proper code of
conduct then Vodafone have a chances to reduce their liabilities.
Minimize the chances of lawsuits – If Vodafone operates in an ethical manner there are chances
for them to minimize their chances of falling into the traps of lawsuits. It is a responsibility of the
organisation to make such policies in the organization by which this mishappening can be
eliminated.
Influence of ethics on production function – Ethics in production function of Vodafone is
required to ensure that their activities and production process does not negatively impact the
organization, customer and society. To increase the profits, production processes involves in
lowering the the cost and poor processes and use such technology that reduces cost. Therefore to
protect the customers and others from exploitation ethics are important for production function.
Influence of ethics on marketing function – Marketing is done to get a competitive
advantage over the competitor by showing our product is more valuable. Ethics do influence this
function as to highlight their product organization may indulge in non-ethical marketing. Ethical
marketing is deliberately applying standards of fairness and moral rights and wrongs to
marketing decision-making. Through ethics businesses do not involves in unfair and deceptive
and offensive material marketing practices. It helps company to increase sales and creates a
good reputation of the company in the market.
Influence of ethics on finance function – As finance is the backbone of all function and
organization and therefore there is a huge influence of ethics on finance function (Melé,
Rosanas. and Fontrodona, 2017). Ethics are important for this function as it deals with managing
money and maintaining the books which shows true picture of Vodafone.
Influences of sustainability on organizational functions
It is the principle of enhancing the societal, environmental and economic systems within which a
business operates and filling organizations with people and structure which are necessary for the

success of Vodafone in the global market. It is the ability of organization to achieve their goals
and also means increasing long term stakeholder value.
Influence of sustainability on production function – Using the concept of reduce, reuse,e
recycle, recover, redesign and re manufacture can improve the product life cycle. Also producing
the environmental friendly products will act as a source of competitive advantage and helps in
long term sustainability of Vodafone.
Influence of sustainability on marketing function – Sustainability is important for
marketing function as this helps in attracting customers. As customers are now becoming for
aware about the environment protection therefore if the marketing function uses the phases and
concept of buy local they have greater chances to win at it. Also by keeping the productive
people for making ads will give an advantage to this function.
Influence of sustainability on finance function – As for finance function money is most
important aspect therefore it can earn more money and boost your bottom line by making the
business more sustainable. The following things act to increase the fund sustainable business can
earn: Reduced business costs, more innovative strategies, an improved reputation, and more new
customers who value sustainability all work to increase the amount of money sustainable
businesses earn.
McKinsey 7s model of Vodafone
McKinsey 7s model of Vodafone is as follows:
Structure – The organization structure of Vodafone focuses on commercial and financial
priorities.
Strategy – Their strategy is a responsible approach to sustainable business and risk management
and exists to create value for the customers.
System – Vodafone uses two billing system which are analogues network and Euro bill and also
it incorporates certain tools to handle complex transactions.
Skills – Vodafone is focusing on developing digital skills in their employees to meet the goals of
the company.
Staff – There are large number of staff in Vodafone and also keeps on increasing every year.
They have a well-trained personnel.
Shared values – Vodafone values is to expand their footprint in new markets and enhance
productivity.

P5. Different ways decision-making can work effectively in a global context
Decision making is the process of choosing an alternative from among various available.
This is also regarded as the check and balance system that keeps Vodafone more alive and helps
in growing vertically and also in linear direction. It is the problem solving activity and decisions
are made to achieve organizational goals and objective (Aritz. and et.al 2017). It is regarded as
the cognitive process and involves a process of examining various possibilities option of a given
problem, evaluating and comparing them and then choosing the best course of action.
Importance of decision-making
Firstly it helps in achievement of goals and objective of Vodafone within given time and
budget. In this best alternative is searched for, resources available are utilized to satisfy the
employees at workplace.
Secondly it increase the motivation of the employees as rational decisions provide
framework for operation and guidelines to the operating staff. It also gives financial and non-
financial benefits to the employees (Jiao. and et.al 2016).
Helps in tacking and facing problems which Vodafone encounters as quick and correct
decision helps to solve the problems effectively and also helps in accepting new challenges.
Also helps in growth of business as correct and quick decisions helps in utilization of
resources and also helps in increasing the efficiency.
Methods of decision making
There are four methods of decision making which are used by Vodafone:
Command – the first methods of decision making is command in which decision are
made without involving other people and are taken generally by the superior authority.
Consult – The second methods is consulting in this before making the decision inputs are
invited from others but the decision making is ultimately done by one person only. It is time
consuming process but is less risky as other opinion and option are also taken into consideration.
Vote – The third methods is voting in which various alternative are discussed into the
group and then opinions are given either in favour or against the alternative.
Consensus – The last method is consensus in this decision is not taken until everyone
agrees to one course of action.
Ways in which decision-making can be more effective in a global context.