Vodafone Group: Internal and External Environment Analysis Report

This report provides an analysis of Vodafone's business environment, examining both internal and external factors influencing its operations. The internal factors discussed include strengths, weaknesses, and the impact of these factors on the company's performance. The report also explores the external environment, including political, economic, social, technological, legal, and environmental factors. The study highlights how these factors impact Vodafone's strategies and decision-making processes, with a focus on market coverage, customer acquisition, and the challenges posed by competition and economic conditions. The report also discusses how the company is affected by political factors like cartels, economic factors like high spectrum costs, social factors related to technological advancements, and environmental considerations. Finally, the report includes a list of references used in the analysis.

Introduction
Business Environment is the total of the internal and
external factors that are impacting the decisions of the
organisation (Fernández-Olmos and Ramírez-Alesón,
2017). The chosen organisation from the report is
Vodafone group and it is a British multinational
telecommunication business. It was founded in 1982 in
Berkshire in UK. The report includes the internal and
external factors that are affecting the business of the
Vodafone group and the interrelations of the factors in
the organisation.
Vodafone And Its Environment
External Environment
The organisation which are having customers in different countries
are affected by the external factors impacting the businesses.
• Political factors- The organisation is having the
pressure from the political factors of different countries and the
Vodafone is affected by the Cartelisation and political conditions
and they will help in making the plans.
• Economical factors- The organisation is affected by
the economic factors like buying power, income and needs of the
customers in different countries.
• Social factors- Change in the lifestyle of the people
affect the companies social trends. This will include the buying
behaviour of the customers.
• Technological factors- The more advance technology
used by the companies, affect the growth of the company in the
market.
• Environmental factors- To take care of the
environment is the important factors of the company as these are
the essential sector which have to be followed by the organisation.
• Legal factors- Using the government application,
laws, and role that have increases the factors of sale in the
organisation.
How the company impact its context External Environment
The chosen company may faces the various impact in the
context of their external environment. They are described
below:
Political factors- In the political factors, the charges of
carelistaion are shown as the weakness while the political
stability has been the strength of the company.
Economic factors- The high spectrum cost which are used for
5G access will be considered as the weakness whereas the
supportive culture is become the strength to the company
(Sari and et.al., 2017).
Social factor- The new advance technology SME work as the
growth of the company while digital economy give the
strength to the company.
Technological factors- Introduction of the 5G are used as the
important aspect of the company.
• Legal factors- Low ROI and longer payment
time spam are the effect the company in the negative way.
• Environmental factors- Vision of the
harmless environment will considered as the positive impact
of the company (Cao and Chen, 2019).
Internal Factors
The internal factors are the factors that are in the organisation
and they are helping them in making the decisions.
Strengths- The organisation is having customers in 25
countries which makes Vodafone group having the larger
market coverage. They are having different methods of
promotions which is helping the in attracting customers.
Weaknesses- The organisation is having weak performance in
the European market which is reducing the customers and
increasing the cost.
Opportunities- In the Indian markets they are increasing the
customers by acquiring and merging with Idea and they are
investing the 5G services.
Threats- The threats for Vodafone is that they have intense
competition, devaluation of pound is affecting the organisation
(Ogden and Roy-Stanley, 2020).
References
Ogden, J. and Roy-Stanley, C., 2020. How do children make food
choices? Using a think-aloud method to explore the role of internal
and external factors on eating behaviour. Appetite. 147. p.104551.
Cao, H. and Chen, Z., 2019. The driving effect of internal and
external environment on green innovation strategy-The
moderating role of top management’s environmental awareness.
Nankai Business Review International.