Vodafone: Contemporary Developments in Business and Management Report

This report provides an in-depth analysis of Vodafone, a major telecommunications company, examining its business environment through PESTLE and Porter's Five Forces models. It explores the impact of macro and micro factors on Vodafone's operations, including political, economic, social, technological, legal, and environmental influences. The report also delves into Vodafone's organizational culture, its impact on decision-making processes, and the need for cultural changes to adapt to market dynamics and improve employee satisfaction. Furthermore, it evaluates the effectiveness of Vodafone's responses to challenges, identifies areas for improvement, and suggests strategies for future growth and competitiveness in the telecommunications industry. The analysis covers Vodafone's company profile, strategic changes, and the implications of internal and external factors on its performance and market position.

Contemporary
Developments in Business
and Management

EXECUTIVE SUMMARY
Environment of business depend on the PESTEL forces of organization which determines
or monitor the business that can have either positive or negative impact on the company. With
the decrease in capital and investment of business, the present economic downturn has just begun
in the UK economy. Both macro and micro environment has main role in the industry of
business. This report is studying the influence of these factors on Vodafone as well as
organisational culture and need of the changes in culture of enterprise. Also this is investigating
the impact on the decision making and policies of Vodafone.

Table of Contents
EXECUTIVE SUMMARY ............................................................................................................1
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
PESTLE analysis.........................................................................................................................1
Porter Five forces model .............................................................................................................2
TASK 2............................................................................................................................................3
1. Organisation culture and culture change and its impact on decision making and policies......3
2. Evaluate the effectiveness of the organization’s response.......................................................6
3. Areas for improvement ...........................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES .............................................................................................................................12
APPENDIX ...................................................................................................................................14

INTRODUCTION
Business environment consist of external factors such as political, social, technological,
social which have the ability to monitor and impact of a business and which can potentially
negative as well as positive methods on the organisation. The internal environment of company
includes various factors involves organisational culture, personnel and human resource terms and
process which influence the whole company operations. Management have a very crucial role in
organizational administration of goals, mission, performing strategies and monitoring function.
This study of Vodafone presents that enterprises are subjected various macro and micro
components that have huge impact on the strategies and objectives of business.
This projects will evaluate the macro environment of Vodafone which is one of the
largest telecommunication company provide a wide range of communication tools and services
as well as analyse the position and feedback of enterprise. Also this will examine the impact of
organisational change and culture change on the decision making procedures and its
effectiveness of it by investigating the responses. Moreover, it is the study of whole changes
process and improvement suggestion for Vodafone to evolve in market by analysing the
feedback and elements.
Company Profile
Vodafone is British multinational telecommunication that have expanded its business in
more than 26 nations consisting Asia, Europe, Africa, Oceania and 50 other additional nations.
The network of organization have expanded in more than 150 countries all over in the globe. The
organisation have been enlisted on the fifth largest revenues earning organization's position and
2nd in regard of network according to the data of 2016. The company supply several exotic
services accompanying to telecommunication such as SIM cards, Wi-Fi services, phone deals,
broadband offers and many others.
TASK 1
Each and every organization perform their operations in business environment where they
have to face many situations. There are some macro and micro factors which can affect the
practices that are conducted by an enterprise. Macro are knowns as external which includes
political, economic, social, legal, technological and environment. On the other hand, micro is
related to the internal which includes employees, top executives and so on (Srdjevic, Bajcetic
and Srdjevic, 2012). Vodafone is one of the telecommunication industry and they perform their
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operations in all over the world. They provide some services like fixed line, broadband,
networking and so on. The top executives of the company have to identify some problems or
challenges which can affect their performance in negative manner. For this, they can use some
tools or techniques like PESTLE and Porter’s five force so that they will be able to evaluate their
strategic position in market as compare to any other market players.
PESTLE analysis
PESTLE is a kind of strategic tool which can be used by an enterprise in order to analyse
some external factors which can affect their performance. This stands for political, economic,
social, technological, legal and environment. Through this, they can evaluate their market
position which may help them in making effective strategies. These factors are like:
Political: This factor affects the process in which the telecommunication industry
establishes their operations at market area. Some of the political factors are like trade barriers,
foreign exchange, their stability and so son. If political stability is there in country, then through
this they can perform in better way (Zalengera and et. al., 2014). But, in recent time when
political behaviour is get changed then due to this Vodafone is affected directly. For this,
company make a flexible strategy which can be managed in every situation.
Economic: This is an important factor which can help an industry in order to establish
their operations in other places. This is related to the countries exchange rate, inflation and
employment. If the GDP of a country is good, then this will affect the organizations in positive
manner and they will be able to generate higher profits. For example, in some recent times the
crisis has been faced by the nation so due to this Vodafone is get affected. So, in this way this
factor is very important for the viewpoints of both nation and enterprise.
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Social: These kind of factors are directly based on the needs, wants, beliefs and attitude of
the people who are consuming services of respective telecommunication industry. In order to
gain success, the industry should adopt the culture that is followed by their end users then only
their requirements can be fulfilled (Gerwick and Sparks, 2014). Vodafone changes their policies
and culture as per their local people so that they can grab their attention.
Technological: Some organizations are there who are focused on their innovative as well
as technological advancements. Vodafone has their many rivals or competitors so by adopting
this they will be able to perform well as compare to them. The products and services which are
offered by telecommunication industry includes an innovative feature which should be kept so
that they can sustain their competitiveness. This is the one which is more focused on technology
and quality.
Legal: When an industry performs their operations at global level then they have to follow
all legal acts or laws so that they can ensure smooth functioning (Chaplin-Kramer and Kremen,
2012). Some of the regulations are related to consumer protection, employment, health and
safety. For example, Vodafone has been accused for not giving the payment to their staff
members on time so this affect their competitive advantage. For this, it is necessary for them to
follow all legal laws so that they can create their positive image in the market.
Environmental: Now, there are many organizations who perform their operations at global
level so they have to be more ethical so that they can improve their brand image. Companies
have to conduct some ethical practices so that their social image can be improved in the minds of
customers. The working conditions of the telecommunication industry should be good so that
they can attract individuals towards their services.
Porter Five forces model
There is an another tool which can also be used by industry so that they will be able to
analyse their competitive position in the market (Rothaermel, 2015). Through this, it can be
evaluated that how much profits will be gained by an enterprise on the basis of competitiveness
and attractiveness. There are five forces which are explained below:
Threat from new entrant: If an entity will take an entry in market then due to this their
overall market position will get affected. For this, Vodafone should have to put some barriers for
them so that their competitiveness will not get influenced. If the respective telecommunication
industry will reduce their cost level as compare to other rivals, then through this they will be able
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to perform. By maintain the high standard, firm can attract more potential users than any other
company.
Threat from substitute: This can be related to the switching power of people that they
can consume the services of other competitors. Vodafone faces low threat of products
substitutes. The company uses cost leadership strategy so that they will be able to get services at
lower prices in an effective manner (Vining, 2011). So, for this the firm needs to be focused on
quality or innovative products.
Bargaining power of buyer: The buying power of all consumers is high in the
telecommunication industry and they have ability to reduce the prices of products. On the basis
of this, they can ensure that Vodafone will be able to generate higher profits in an effective
manner which may lead them towards success.
Bargaining power of suppliers: The bargaining power of mobile telephone industry is
strong as compare to other. If number of suppliers are less than they can increase the prices of
raw materials which in turn can help them in influence the industries (Hacklin and Wallnöfer,
2012). Vodafone can hold the prices of suppliers so that their power can be decreased.
Competition in the industry: In this kind of factor, there are many competitors who exist
in an industry who can compete with each other so that they will be able to attain success. The
position of Vodafone exists in the market as a cost leader so they have a strong base of customers
as compare to any other rivals.
TASK 2
1. Organisation culture and culture change and its impact on decision making and policies
Organisation culture is the unite recognition of company that can not be stole or copied
form them which include role culture, individual culture and power culture (Meredith Belbin,
2011). It involves the beliefs, values, assumptions framework that governs how public behave in
enterprise. These defines the values and mission of enterprise in the market. Vodafone's
organisational culture state that includes the inclusion, diversity in their working environment to
crate innovative and flexible workplace for the worker and keep consumer as the preference of
company. Cited companies have emerged in market and its culture have defined that work of
their employee and their understanding regard of the business.
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Culture change refer to the term that is optimized for making varies in policies related to
public and impact the capital culture on personal social behaviour (Khurana, 2010). This is also
called reconfiguration of culture that defined the repositioning of concept of this in the
community. This create a stress on the company policies and decision making procedure.
Vodafone requires to make variables their structure and policies according to the time for
betterment of employee and requirements of company suitable to the present situation of market.
Vodafone already was a one of the largest telecommunication MNC by 2008 with more
than 80,000 workers globally and gross income of 45 billion Euros. But the comes requires to the
charges in culture and organisation structure which the enterprise understood. The initial issues
that raise is not pleased members of staff with cited organisation's personal set-ups. According to
the study, this have create obstruction in providing satisfaction to the people or consumers and
making it complex to make an effect on them. Worker were discomfort with the environment of
company as they lack the flexibility in workplace and very ,long working hours. Company has a
good market positioning but after this issues the enterprise suffered issues with the potential
people of company as well as struggling in regard of sufficiently qualified replacements to
perform at its United Kingdom headquarter in Berkshire, Newbury. The condition was
unsustainable and the market required to be more impressive worker.
The another issue was pressing logistics problem which is over 1800 worker were
shoving in the headquarter of New Jersey that is leading to no more development of company.
Ans later came to international downturn, suggesting enterprise to save the cots of 2billion
Euros.
Mobile market were merging at tat time which have catered new technologies, software,
smartphones and collection of momentum along with cloud computing which is able to compete
the rivals with the help of IT technologies (Jeston and Nelis, 2014).
Strategies of Change
The company recognise various but relatable opportunities where coming in the future
and they being to pursue the methods of grasp them. That require them proper planning,
designing and accurate implementation strategies along with location, device ad functions form
the change. Or supporting effective workplace, worker were empowered by the enterprise which
have helped them in performing more effectively.
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On these principles the companies designed the achievements decisions and policies of
new culture which are :
 Clients were allowed to pick their devices.
 Mobility will be the key of transformation process.
 The main aim would be point of convergence in cloud.
 Adoption f cloud for enabling cited company business to streamline their function.
Development of Technologies
Cited organisation which was aiming to the development of company in various -places
decided to utilize the unified communication program mentored by the private cloud. The main
struggle that the company was facing: encouragement of consumer and team of IT to grasp this
(Hutt and Speh, 2012).
The company requires training create innovation through including access in broadband,
quick messaging services, video chartings, new media, collaboration techniques and file and data
etc. Company needed to learn the mobility in specific to improve the old system and habits of
functioning.
The information technologies requires to make the bigger transition of control to
functions to monitor and manage the devices. The company came up with more innovative plans
such as phones, voice mails, emails, tax, conferencing and quick exchanges of messaging within
only one gadgets. This was made to deliver the message and services more quickly seamless to
effective overall. This took the organization days and months to manage new pricing
technologies.
Impact within Organisation Policies and Decision Making
Bringing public into the largest challenge if programme of change. All hey requires was a
change in culture and their system or the betterment of society an development of policies and
terms. After the development of strategies of evolution of organisation culture of Vodafone, the
company determined the benefits and examined the consequences (Elliott, Swartz and Herbane,
2010). Video conferencing and other functions that company occurred after the change helps
their organisation in improving overall growth and revenues of enterprise. This have impact do
the the economy and outcome of overall operation, The decisions making was entirely influenced
by these changes. Organization changes their policies and system according to the new laws and
requirements as the market was tending toward more digitization and online services. The
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purpose of this change or programmes was to establish new recognition in the industry and adopt
new style of presenting the enterprise among public for making it more modified and advanced
way.
Vodafone companies established more altered new policies according which the
employee were the equal part of organization rendering them more flexible and comfortable
workplace for performing activities which have adopted industrial democracy and its laws in
their policies in the recent era (Chen and Farh, 2010). The training and development practices
were being organised for enhancement of worker abilities and skills in order to develop their
skills and abilities. Company got 19 million consumer base in UK after the establishment of new
culture.
2. Evaluate the effectiveness of the organization’s response
After the achievement of the culture change of Vodafone company according to modern
technologies and approaches, it have crate a huge impact on the economy, decision making and
policies of enterprise along with influencing the other parts of it. Cited company gained more
consumer base after the development which was more than 19 million.
Source 1: Technology as a catalyst for cultural change, 2016
According to Srdjevic, Bajcetic and Srdjevic, 2012 the change campaign affected the
company and its overall profitability in various ways. The company focused over the expansion
and deployed their business in various counters like East Asia, America etc. This took three
years to compete the journey of organisation which was impressive, practical and functional
implementation to vary. The methods of new working was formed in the organisation for
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delivering their employee and enhancing the working system. Research have states the data that
the company made conspicuous productivity increase of 15 percent which was better
improvement. Employee were satisfied with the process and system of policies enhanced the
working qualities of company.
According to Zalengera and et. al., 2014 the company cited the world class manager
servicing organisation with whole staff engagement. Turnover of staff was reduced to the data
who were successful for attaining more consumer for the organisation. It was cultural embedded
because of more flexible environment of work.
According to Gerwick and Sparks, 2014, the company investment their money in various
CSR activities for creating a better image which was helpful. In 2015, the company gaining the
overall revenues was 1.7billion Euros proving a better improvement in the organisation.
Enterprise fixed their underperforming bodies as well as held a talk with leader of Virgin Media,
Liberty Global over the swap of assets which consist their respective United Kingdom telecom
network, but this was not a successful dealing offer.
Promoting smart working solutions in developed markets
According to Chaplin-Kramer and Kremen, 2012, Vodafone is one of the first company
to transform with the changing market situation. There have been a complete 360 degree chance
in the organisational culture. The company have experienced favourable changes in the
workforce. The company have shifted its focus to customer oriented approach. The company
now offers a smart technologies solution (Chang, 2016). Vodafone has introduced a flexible
working system in the organisational. Which focuses on the work rather than the presence of the
employee himself. The company conducted the attitude survey to gauge the views of the
employee on the latest transition and it was found out that 60% of the people believed that it is
an cost effective and sustainable mode of operations. 41% of the people believed that their
productivity have enhanced after the adoption of the new policies and 30% of the workforce was
finer motivated. The company have developed such practices to overcome the space and
productivity barrier.
The another prime focus is on the strategic management of the field workers. The social
connection with the colleagues and equipping them with right skill set and tools so that they can
work 'on-the-go'. The company have launched a 'locate' service which tracks its employee and
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ensures the personal safety whenever they are out on business unaccompanied. This is done by
tracking the location of their SIM cards in their mobiles.
The latest work culture is valuing its employee more than ever. The management have
formulated such policies which support an employee 'on or off the field'. Social cohesion and
effective communication are the tools utilised by the company to maintain an ideal work culture
in the organisation. The company have directed its vision to effectively train and develop human
resources as they provide an competitive edge to the company (Amin, 2014).
3. Areas for improvement
The organisational culture generally described by the people like how they usually
communicate, interact and how the other information is also shared but them and their decision
which is made b them. These kind for the organisational structure is has something which build
their leadership and other companies. They have to become their ingrained into their the major
fabric of the things they communicated and the business which is done on the basis of the
regularity.
Positive culture also can influence to their healthy and productive working ways of
environment. Therefore, the culture also has their less and minimal rate than the positive which
affect to as well as also stifle to their workers productivity. They always has their ultimate
impact on their bottom line. There are the various recommendation to the company Vodafone
through which they can settle up their good organisational construction in lead to the accomplish
their short term as well as the long term goals and objectives (Alvarez, ed., 2016 ).
Articulate vision and missions
The leaders of the company has to be very clear understand and interprets their vision as
before the staff. They can also see their contribute to wards the success and growth of the
Vodafone company. In this kind f the visions it includes their major values, attributes to their
methods and other customer services. They actually defines it as by performance and their other
excellence of operation activities and functions. The challenges also depend and also being
enough capable to article their grand concepts in concise, short statements. Through this they can
also understand their statements easily in the minimal words.
Communicate clearly and openly
This also can refers as their dysfunctional culture where they has to operational
information which is provided by their staff, gossips and other silly rush if the rumours in to fill
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