Business Management Report: Vodafone's External Factors and Knowledge

This report provides a comprehensive analysis of Vodafone, a leading telecommunications company, examining its external environment and knowledge management strategies. The report begins with an introduction to the telecommunications industry and Vodafone's global operations. Task 1 delves into the primary external influences on Vodafone, utilizing PESTLE and Porter's Five Forces models to assess political, economic, social, technological, environmental, and legal factors. It also evaluates the competitive landscape. Task 2 focuses on knowledge management within Vodafone, discussing its relevance to the company's operations, business intelligence, innovation, and continuous improvement. The report highlights the impact of knowledge management on Vodafone's ability to adapt to the dynamic telecommunications industry. The analysis covers key aspects of Vodafone's business environment, offering insights into the company's challenges and opportunities.

CONTEMPORARY ISSUES IN
BUSINESS MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Primary external influences.........................................................................................................3
TASK 2............................................................................................................................................7
1) Relevance to the Vodafone......................................................................................................8
2) Evaluation the effectiveness of the organization’s response.................................................10
3) Area of improvement ............................................................................................................11
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................15
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INTRODUCTION
Telecommunication industry is considered highly dynamic industry. UK
telecommunication industry is rapidly growing and use of internet has open many new business
opportunities. Vodafone is UK based telecommunication company which is offering different
type of service to their customers. It is the largest telecommunication company in UK which are
offering its services to worldwide (Athaide, and Klink, 2012.). It offering its services more than
26 countries. The present report make analyze on primary external factors of company. External
factors are those factors which are uncontrollable in nature and have direct impact on business
activities. For making analyze on this factors PESTLE and porter's five model has been used. In
addition, this report make analyze on knowledge management and its relevance to organization.
TASK 1
Primary external influences
Vodafone is considered as the world's best telecommunication company. It is UK based
company and conduct its business operation in Europe, India and many other regions and also
has partnership with more than 50 additional countries. It has the greatest market value of around
one hundred billion pounds. The entity is also offering many other services such as provides
telecommunication and IT services to their customers over the 150 countries (Björklund, 2011).
Vodafone is offering several types of product such as fixed line, mobile telephony, internet
services and digital television. Along with the is they are also offering many other services such
as money transfer through mobile and mhealth service to their customers. There are certain
external factors need to be considered to evaluation of the success of company.
Political factors
The political factors have huge impact on entity's growth. Political polices and their
stability many create barriers for organization (Athaide, and Klink, 2012.). Vodafone is UK
based the largest telecommunication company which is conducting its business operation in more
than 150 countries. UK government's polices and their relations with other countries helps to
entity for expand its business activities. UK government has stable;e relations with other
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countries which helps to Vodafone for running their business easily. However, the recent
political instability such as Brexit has negative influences of telecommunication industry
(Cannon and Yaprak, 2014). The firm is second largest telecommunication services provider in
European countries after, Brexit they have to face many problems such as they need to change
their tariff plans and along with this they it will treat as the foreign countries in the Europe. This
recent conflicts with EU leads to company to change their polices and along with they also have
to pay taxes in orders conducting business operation in Europe.
Economic factors
This is one the very important dimension for the company like Vodafone. It means as
increasing development of country as the higher chances of their business is increases and it has
open many new business opportunities for the industry. Economical polices such as tax polices,
fiscal polices, monetary polices. UK economical condition is showing the positive sign. The
country's economy is rising from the recession and they are also increases income of the
individual. As increase in level of income which leads to more disposable of the income. It is
sustainability for the company (Chi, Kilduff and Gargeya, 2009). Along with this the company
is also generating income from the emerging economy such as India where they are making
profits due the changes their economics polices helps to them for increases their profits.
However, Brexit create negative impact of the entity's growth and they need to follow the
separate rules business as set by the EU in order to gain profit.
Social factors
This factors are purely based on the local beliefs and cultural of the UK people. It is vert
dynamic factors which is associated with the customer's behavior. The company in which they
are operating their business are highly acceptable (Demil, Lecocq and Zott, 2015) A number of
people like to get connected with each other so they accept the entity's internet and mobile
communication services. The another positive effects of the social factors is that communication
has become essentials for the normal people and they cannot imagined their life without mobile
and internet (Cannon and Yaprak, 2014). So this habit helps to them for increases their benefits.
In other country such as India which is highly populated increases demand for the internet user
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so with the helps of this they can expand their business and mobile services (Goetsch and Davis,
2014).
Technological factor
This factors associated with the technical elements and their advance use. It includes
different types of factors such as technological advancement, innovation and up gradation of
technology (Gray, 2016). There are different types of services which are offered by the company
due to its technological advancement such as mHelath services and money transfer through
mobile. Vodafone has its mission to always follow the contemporary trends in the technological
and communication sphere. Along with the main feature which is adopted by organization is that
they are planning to adopt new technology so they can boost up their internet speed. Firm is also
emerging with the Fire optics and very large wireless networking so they can associate with
customers in effective manner.
Environmental factor
After the introduction of the Globalization, people become more and more aware
regarding to the ethical and environmental practices. They expect that business concern should
follow ethics and environmental law (Greco, 2013). Is its consumer behavior which is like to
purchased only that brand which is socially connected with their customers and it is important
for the firm also in order to improve their brand image. For this the company is focuses on
adopting renewable energy practices in their power operation and along with they are also
adopting the waste management for the disposal of their products. Vodofone is also involved in
reduces the impact of the carbon emission so they can protect the environment (Lee and Carter,
2011). The entity is also involved in making the different types of practices such as recycle of the
product and add many other social responsibilities as it business objectives.
Legal factor
There are different types of laws and regulation which imposed on telecommunication
industry. They company is concern regarding to the different types of legal issues such as copy
and other pirated issues (Ogunrin and Inegbenebor, 2015). Firm many times blamed due to their
sphere of infrastructure for this the company has to pay many penalties. Apart from this the
company is also blamed due to paying less salary to their employees as compare to their rivals.
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For the entity it is important to maintain and follows the statutory laws which helps to them for
improve their brand image (Goetsch and Davis, 2014). . In this there are many more other
legislation which apply on the company in different countries such as Europe where they have to
face criticism for not offering the fair charges to their customers.
Porter's five model
The porter's five analysis is deals with external environment and those factors which
might effects the performance of the business firm (Pham, Segers and Gijselaers, 2013). I order
conducting the business operation successfully it is important to understand the external
environment so they can make essentials modifications in their operational activities. Following
are the factors of the porter's five model on Vodafone.
Braining power of the buyers
The braining power of buyers is very high in telecommunication industry. In this industry
the competition among the company is very and all the company are offering similar nature of
services to their customers thus, customers can easily switch to other company if they are not
providing services as according to demand of customers (Popescu, 2013). So the entity need to
present the low cost services to their customers in order to maintained their present their growth
and long term goals.
Braining power of suppliers
The supplier power is also very high in nature. There are only few players in the
telecommunication industry and there are also few major suppliers in the industry so the supplier
power is high (icotte, Drouin and Delerue, 2012). Along with this there is also high switching
cost aim supplier in the industry. In order to develop the market Vodafone need to focus on
developing their own brand mobile phone so they can enjoy their independence on supplier.
Threats from substitutes
Vodafone is facing low threat of product substitutes. Entity is mainly focused on the
cost leadership strategy in which they offer their services as according to their geographical area
and low cost services to their customers in order to capture the market (Spitzeck and Hansen,
2010). The company is also offering the 3G card and DSL services to their consumers and in UK
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market they are only few players which is offering the similar nature of products to their
customers. So this is considered as they main advantages for the Vodafone.
Threat from the new entrants
Threat from the entrants is very low because for entering in UK telecommunication
industry telecommunication operators have to pay high license fees and also they have to
required high capital (Zhang and Huang, 2012). Along with this there are many types of laws and
regulation which apply on the company which is statutory in nature. For conducting business in
telecommunication industry organization nee to maintain high infrastructure cost.
Telecommunication industry changes rapidly so they have to changes their business according to
the advance technology (Element of marketing process. 2015)
Threat among the competitors
Competition among the present rival is very high. The main competitors of the Vodafone
are O2 orange, BT asd EE which are offering the similar nature of services to their customers.
Apart, from this the company is not providing specific product to their consumers. The UK
market is highly competitive and there is open market competition so threat among the present
competitor is very high (Athaide and Klink, 2012)
By analysis the external business environment the company can identified to those
potential factors which many effects organization and its performance. By using PESTLE
analysis and porter's five which are considered as the strategic tool Vodafone scanned its external
environment and make their marketing strategics for their business operations. In this the
company is also with the help of this they can make and understand its business environment in
effective manner (Pham, Segers and Gijselaers, 2013).
TASK 2
Knowledge management
Knowledge management is the process of creating, sharing, using and managing the
knowledge. In refers to the business concern it refers to use of knowledge the best method to
achieve organization objectives (Björklund 2011) In business firm is mainly focuses on
improving performance, innovation. Sharing their own experiences and integrated with
continuous improvement. Vodafone is UK based telecommunication company which is offering
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different type of service to their customers (Athaide and Klink, 2012) . With the help of
knowledge management they can associate with business objective and also make continuous
improvement in their objectives.
1) Relevance to the Vodafone
Knowledge management has huge impact telecommunication industry.
Telecommunication industry got immense growth in the last few years (Chi, Kilduff, and
Gargeya, 2009). UK telecommunication industry is rapidly growing and use of internet has open
many new business opportunities for the organization. Vodafone is highly benefited by adopting
the knowledge management as strategic tool. The company is operating its business worldwide
and creating many opportunities by working with the local companies. Knowledge management
helps to entity to focuses more on innovation, making changes in its organization and make
continuous improvement in its business activities (Athaide and Klink, 2012). Following is the
relevance of knowledge management in Vodafone.
Serve as business intelligence
Telecommunication industry is considered as the most dynamic industry in which
technological changes appears very fast (Demil, Lecocq and Zott, 2015). In order to take
competitive businesses advantages Vodafoene focuses on product development and hold
significance position in market. With the help of Knowledge management the company brings
M-PESA which of one of the most successful mobile money transfer services. There are more
than 11 million people are registered on this service. With the help of advanced knowledge
management system they can share information within entity (Goetsch and Davis, 2014). Along
with this business intelligence enhances communications among department so they make a
cooperative team production and bring high level of accuracy in its businesses services.
Helps to manage key customers
With the increases in use of knowledge management, company can easily communicate
with its customers (Gray, 2016). Through the KM the company can retain the valuable ideas and
make suitable arrangements in its business for they customers (Henley, Raffin, and
Caemmerer,2013). KM helps to Vodafone to make assessment for their potential customers and
different types of ways which helps to them for gaining more information regrading to their
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customer's preferences. KM make enable to entity's workforce to develop facts, information
systems and solution for their customers problems. With the helps of the KM
telecommunication can also adopt advanced technology in its business operations and they can
also make associated with emerging market easily (Athaide and Klink, 2012)
Impact of Knowledge management on polices and decision making process
Knowledge management is also created effects on organization's polices and its decision
making process. With the help of knowledge management the company can improve their
operational activities, lead time, cost reducing time product to market and improving quality of
products (Björklund, 2011). Vodafone uses the Knowledge management in it business to make
effective decision. With the help of KM they can assess the latest market trends and develop
their products as according to their customers requirement. It also assists to Vodafone to make
assessment on its business polices (Gray, 2016). The main business polices for company includes
to make cost effective products for their customers. In this entity use KM in its operational
management and develop such practices which aid quality in its products. Entity reduces its time
in its operational activities by using KM based tools engineers were able to design products
according to specification (Cannon and Yaprak, 2014).
Knowledge management also leads to Vodafone for improving their work cultural.
Through the knowledge management practices they can change assess the main obstacles which
are main causes for the entity in achieve their business objectives. KM aid to management for
share their information with their workers and staff members (Chi, Kilduff, and Gargeya, 2009).
It shapes the behavior of organizational members through driving the norms and practices within
the firm. Along with this the company can make monitors their business activities easily. KM
leads to better customers services withing Vodafone. Staff members know that from where they
have to find information and customers needs at particular time since the flow of information
managed effectively. Morever, there is increased competitiveness which results when a company
utilities knowledge management (Demil, Lecocq and Zott, 2015).
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2) Evaluation the effectiveness of the organization’s response.
From the above discussion, it is analysed that Vodafone is Bristish multinational
telecommunication company. The main business operation country of the company is UK,
Africa, India, and Europe. The company operated more than 26 countries and make partnership
with more than 50 additional countries. The company uses the knowledge management in its
business operations (Demil, Lecocq and Zott, 2015). It had a market capitalisation of
approximately £52.5 billion as of 10 February 2016. The company is using the knowledge
management in its every business area. Use of KM is related to the continuous improvement and
innovation.
The company is actively making use of more innovation in its business operation. In its
innovation they are offering different types of services to their customers. This services include
3G and 4G services for the business. In 2012 the company acquired Cable & wireless Worldwide
for £1.04 billion (Goetsch, and Davis, 2014). With the help of this acquisition they can take
unified communication solution to large enterprise in UK. In the innovation the company add
more services such as mhelath services and mobile money transfer services. By using of
knowledge management in its business they develop this health application for their customers.
Under this they provide health related services to their customers (Chi, Kilduff, and Gargeya,
2009).. The another innovative steps which is taken by the Vodafone is M-PESA which is money
transfer system develop by the company (Sray, 2016) They gained more than 1.6 million
customers in its business.
In the responses of knowledge management the company is also focuses on continuous
improvement in its operational activities. By adopting the different types of lean practices they
reduce time in its operational activities and make more quality in its products (Schoppe, 2012)
Organization is rapidly increases speed of their 3G service by making contracts with many other
telecommunication operators. In order to gain continuous important which is associated with the
Knowledge management they announced partnership with visa which help to them for making
more customers oriented services. In this the company is also focuses on giving training to their
staff members. In this the company provide training to their employees so they can improve their
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skills and knowledge (Greco, 2013). Apart from this the company is also developing its services
by using more KM.
KM is also considered as the strategic tool which is used by the Vodafone in order to
make and develop its business market. At present the company is conducting its business
operation in more than 26 countries. In order to gain market I other region they make many
mergers with many companies. With the help of knowledge management the company is become
able to share their information within organization and assess the market information as well.
Knowledge management helps to company to develop their data base in more integrated manner
so they can assist their customers effectively. To enhances it customers services they develop
their data bank in more effective way in which they develop integrated IT infrastructure so they
can provide more useful in formation to their customers (Stair and Reynolds, 2013)
Knowledge management is also correlated with sharing information. With the helps of
shared information they can make communication with each other and find the solution of
complex problems. Through this they can also share the information with the stakeholders and
make them timely up to date regrading to entity's information.
Hence, meeting up the all the requirement of knowledge management can help Vodfone
to remain competitive in business environment. This is also crucial for maintaining long term
sustainability in the external market place (Baskerville and Wood-Harper, 2016). It is also
assessed that the company to make changes in its business environment. All activities and
process of Vodafone are carried out with the help of application of knowledge management.
It is also assessed that use of knowledge management enhances organizational practices;
but also helps the individuals to create appropriate environment at the workplace. At the same
time use of innovation and new ideas in its businesses operation so they gain more market shares
(Fichman, Dos Santos, and Zhiqiang Zheng, 2014). In this context, it is identified that the
company should also focus more innovation and make continuous improvement in its
management so they can effective use of its knowledge management.
3) Area of improvement
Vodafone is managing it all activities in effective manner but also they have to make
some improvement in their business area so they gain more customers advantage in its business
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(Popescu, 2013). Area of improvement which helps Vodafone need to apply in its business
operation so they gain more customers and make effective use of knowledge management
(Zhang and Huang, 2012). Telecommunication industry is consists highly competitive industry.
There are many companies which are giving competition to Vodafone such as O2, EE and BT.
In order to take advantages of the business world they have to use of knowledge management.
Through this they can identify the area of improvement and make important modification in its
business operations. The company is also gained knowledge regrading to the customers' taste and
preference. The firm should also focus efficiency which helps to them for making their process
more excellence and added more customers oriented services (pitzeck and Hansen, 2010). The
another major problems which is faced by Vodafone is its customers improvement. In this the
company need to classification to their customers what types of services they want to buy
(Sicotte, Drouin and Delerue, 2012). In majority of time the customers faced many problems
regrading to the information of services. Vodafone should also provide clear classification of
what type of services they want to buy. For this entity can also focus on making integrated data
infrastructure so they can provide all important information which is required to consumers. It
helps to company fro providing better customers service and leads to them for making more
profits.
The knowledge management is also refers to the shared information to each and every
level of company (Popescu, 2013). In this organization share their information with their
stakeholders so they can develop more information regrading to the company's services. For this
Vodafone need to maintained each and every information in their data back so they can provide
all useful information to their stakeholders. In this the company should update their content
information in systematic manner so they can provide all useful information to their customers.
Vodafone need to make their management more on the knowledge basis. For this they should
change their cultural toward fully knowledge management so they can contribute more towards
their customers services (Pham, Segers and Gijselaers, 2013). In this the company can also make
analytical tool which helps to them for adopting various types of practice which helps to them for
making their services more customers oriented. Along with this the company can should also
need to provide training to their workers so they can develop effective interaction with its
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