Analysis of Vodafone's Global Business Environment and Strategies

This report provides a comprehensive analysis of Vodafone's global business environment. It begins by defining the global business environment and exploring key drivers of global commerce, such as cost, market, and competition, and their impact on Vodafone. The report then delves into a critical analysis of globalization's key drivers and their effects on Vodafone's operations, including technological and political drivers. The report also examines the strategic challenges Vodafone faces, including business analysis, demographic trends, technology selection, internet impact, and CX infrastructure. Furthermore, it analyzes the strategic challenges related to risk, diversification strategies, and supply chain. The report evaluates the influences of ethics on organizational functions and explores the application of McKinsey's 7-S model and Hofstede's cultural dimensions to Vodafone. Finally, it discusses different decision-making approaches and methods for entering the global market, offering a complete overview of Vodafone's global business environment.

Global Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY .................................................................................................................................3
Key factors that drive global commerce.....................................................................................3
Critical analysis of key drivers related with globalisation and it's impact on global business
environment.................................................................................................................................4
An explanation on the complexity of strategic challenges faced by global businesses..............5
Critical analysis on the strategic challenges caused by globalization on risk, diversification
strategies and supply chain..........................................................................................................7
TASK 2............................................................................................................................................7
An evaluation of the influences of ethics on organisational functions ......................................9
McKinsey's 7 model of Vodafone...............................................................................................9
Hofstede's Dimension of culture...............................................................................................10
Evaluation of different ways related with decision making......................................................11
Methods to enter in global market............................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
The term global business environment is defined as an aspect that is used for managing
business at an international level. In the present scenario, world is changing into smaller aspect
through completing all work according to globalisation aspect. As the economic process
management generate and develop aspect for operating and managing their functions at global
level. A large variety of opportunities exists in global market that are used for completion of task
in an organised manner. This report is written from perspective of Vodafone which is a well-
known British multinational telecommunication organisation. It is registered among the
Newbury, Berkshire (Shehu and Mahmood, 2014). The headquarter of Vodafone is situated in
London which provide their services at a global level. Moreover, this report highlights on the
concept of globalisation and and the key drivers of globalisation with their impact on global
business environment. In the last, report will focus on critical evaluation of global business
environment including opportunities and challenges of organisation.
MAIN BODY
Key factors that drive global commerce
Globalisation refers to the exchange and movement of goods, services, capital, cultural
practice and technologies all over the world. The term global commerce means trading of goods
between different nations. This helps the companies to take competitive advantage in various
areas. There are many key factors that drive the global commerce for Vodafone, some of which
are discussed below-
 cost- it is a factor which helps the companies to maximise their investments as a single
nation market cannot give them opportunity of expanding economic scope and scale.
Once the investment is done, the company can use the funds in several activities to
promote its business. Vodafone engages its global investment in advertising its services
so that it can deliver the information effectively. Cost is essential while stating the
objectives because it plays a vital role in expansion and growth to global market. In order
to pursue its price strategy, the Vodafone company offers those services that are identical
to competitor so that it can capture global market but subject to low cost from that of the
competitor (Barnwell and et. al., 2014).

 Market- nowadays the consumers are becoming similar in terms of lifestyle, income,
education, etc. The role of marketing expands as the company must choose the target
consumer which have high purchasing power and who are in well developed
infrastructure. The Vodafone company plan its global strategy in such a way that its
objective is not to serve the whole globe but to capture its target market and spend its
resources well in decided market to gain high profits.
 Competition- competition drive the companies to capture the market share of global
rivals. The companies choose their market which offer more global opportunity and
where it can introduce, upgrade and distribute its new product or service (Viriyasitavat
and et. al., 2018). Vodafone expand its business to that global market which offers it
more demand. Global competition motivates the organisation to move forward in global
direction by creation of global brand and fulfilling demands of the global market.
Critical analysis of key drivers related with globalisation and it's impact on global business
environment
Globalisation is an important aspect for organisation that leads management to perform
their work in an effective manner. In the present scenario, there are different factors relates with
economic perspective of workforce and it is used to introduce international trade and business by
analysing all global aspect of business. Some aspects of globalisation and their impact on
Vodafone is mention as below: Technological driver- The term technology define shape and set foundation of business
that helps to complete all work according to modern requirements. In the present
scenario, there are various task performed by management of Vodafone and it all relates
with telecommunication services which is a wireless technology. In the context of
technology, it is identified that developed country has a high technology (Carneiro,
Salter and Punnett, 2015). But developing country face threat to manage and understand
technological factors.
Benefit- Vodafone utilise high-quality technical tools so it is easy for business to enhance
their market area by investing in technology tools.
Challenge- The cost to increase or improve market area relates with management and
technology is high. This define management also face challenges because individuals of
developing country are not able to understand technology tools.

 Political driver- Liberalization of rules and regulated market aids an organisation to
perform their work according to the tariffs in order to attract foreign direct investment
among all over the world. According to GATT (General agreement on tariffs and trade)
leads the organisation to open and generate privatization among Europe and other market.
Benefit- With formulating positive relation Vodafone management perform their work with use
of easy rules and regulations (Yeh, Lee and Pai, 2015). So political stable country, leads
organisation and it's management to perform their work with more efficiency.
Challenge- Developing country not prefer to attract and gain investment of large specifically
global organisation for offering opportunities to the local industries. Vodafone face challenge
because developing country such as Asia provide market opportunities to local companies. Market drivers- In the present scenario, domestic market become more and more
saturated so the number of opportunities is limited. Therefore, Global expansion is an
important method which is used business to overcome from the situation. Customer also
prefer to select and buy international product.
Benefit- Vodafone utilise the market with global expansion that leads to increase market share
with use of technology (Labbo, 2017). Like, market offer long term opportunity that lead to
select incentives for international business.
Challenge- Market driver perform their work with more efficiency but conditions and
requirements of each country is different. Moreover, customer needs to access opportunities that
leads to complete all work as per global marketing. It also make access for match with
international area to enhance services.
An explanation on the complexity of strategic challenges faced by global businesses
Vodafone is performing their business among different countries but more than 75%
revenue is earned from the European market (https://www.simplysafedividends.com/intelligent-
income/posts/230-vodafone-a-high-yielding-telecom-facing-growth-challenges). It refers
organisation face challenges among different countries so it is essential to identify solution of
challenges. Some of them are mention as follow:
 Business analysis- Telecom is a large organisation that perform business among various
locations. The capital intensity and pace of growth generate market which is used to
invest and maintain wireless network in order to deliver TV, internet and
telecommunication services. Meanwhile population growth make aspect to earn

expenditure on yearly basis. Like, low population growth make complexity for business
because number of customer is less so automatically cost to operate business is complex
to cover.
 Unfavourable demographic trends- Within European market it is identified that overall
market is assorted from each other. Due to which this is difficult for market to generate
sales among market of Asia and Africa countries (POLYANTSEVA, 2018). Along with
this need and want of customer of each country is different so it is important for
management of Vodafone to offer services that are adopted by a large section of buyers.
 Selection of right technology- The term customer experience is essential to improve but
due to change in technology it is complex for management to perform all work in an
organised manner. In context of Vodafone, overall business is depend on technology such
as wireless transaction so this is important for management to add factor that lead to
improve customer experience. But developing and developed country are different from
each other so it is complex to use same technology in all countries whether it is also
different from way of geographical locations.
 Impact of internet- Another challenge that is waiting for the wings and it association
define aspect which is related with ISPs and telcos. There are various aspect relates with
management that leads to complete work in an organised manner. Data sources are
present at the global level but due to change in growth and data it is important for
organisation to complete work with use of internet. It is challenging for management
because internet get viral things at global level within minimum time-period.
 CX infrastructure- The term digital transformation is defined as a biggest challenges
which is faced by industry at a large level. Customer specific needs are an important
source for management but the use of technology is an expensive cost-based setup
(Goslin and Kluka, 2020). This generate challenges for organisation to complete work
according to desired services. Further, CSPs is expected to engage individual among
organisation for performing their work with use of advanced tools. It is a challenging
factor because this generate issue for managing work at organised level.

Critical analysis on the strategic challenges caused by globalization on risk, diversification
strategies and supply chain
In the present scenario, there are different task performed by management but due to
change in geographical location methods or ways to perform operations is also modify. So this is
difficult for organisation to manage work at global level. With the analysis of challenge it is
identified by management that business analysis perform their work with motive of managing
task in an accurate manner. But due to amendment in company regulations it is essential to
manage task according to risk factors (Shrestha, 2017). CX infrastructure formulate work which
helps in completion of work according to desired policies but due to change in location diversify
related challenge is faced by organisation because of managing perspective with company
location. In last, supply chain perspective define that due to the unfavourable marketing trends
Vodafone face challenges because it is difficult for the organisation to manage task according to
their requirements of individuals.
TASK 2
3.0 (a) An evaluation of the influences of globalisation on organisational governance and
leadership
To understand and evaluate the influence of external environment PESTLE model is
implemented by Vodafone to understand political, economical, social, technological, legal and
environmental. This is used for completion of work as per framework that make imperative
aspects for Vodafone to understand dynamic business environment. PESTLE in context of
Vodafone is discussed as below:
 Political factor- The political factor define that Vodafone is constantly face challenges
from government of Spain, South-Africa and Italy. This results that economy of
organisation is complex to manage for performing work as per organic growth.
Moreover, due to settlement with government it is complex for Vodafone to manage task
in an organised manner so it influence Vodafone authorities to make agreement in favour
of country (Radović-Marković and Tomaš, 2019).
 Economic factor- Vodafone organisation formulate it's vision and strategies which is
used to drive high returns from the capital that is invested for performing company
operations. Secondary goals of management is to modify and manage the cost to
complete work according to digital technology. “Digital Vodafone” programme is

minimised from the five year to three year in order to improve company profits. Leaders
influence workforce to manage work according to decided plans.
 Social factor- Changes within sociocultural factor among the economy identify the
impact which is related with sales and profits of organisation. Society influence on
Vodafone services because each organisation work with motive of improving their
market share. Moreover, change among life-style impact on financial growth of business
and it also refer that growing demand of internet is used for purpose whether it is
entertainment or work purpose (Esposito, Groth and Tse, 2015). It results persons make
aspect that provide information according to customer need. It impact on organisation
structure because management need to design structure according to need of society and
it also helps to complete work as per society requirement.
 Technology factor- Vodafone establish high-quality targets for transformation and it is
use to renew and focus on operations to generate constant commercial performance. This
leads company to improve task among the entire group. To influence and manage
business Vodafone provide TV platform to organisation on constant basis. Example- My
Vodafone application aids to establish and maintain better relation with customer in order
to reduce negative aspect for business. Culture of society is improved because individual
who engage in Vodafone operations analyse and understand technology aspect.
 Legal factor- Vodafone face legal influence and challenges at the time of merge
company operations and functions with other telecommunication services. In order to
understand influence of person management of Vodafone manage work according to UK
government. But as per rules both company must agree on a same platform. So the legal
aspect of another company origin influence operations and functions of Vodafone.
Function and operations of Vodafone are designed as per legal rules and regulations after
merge between two different companies.
 Environmental factor- Vodafone understand that it is important for management to
connect a large number of individuals in order to manage business at global level. Along
with this organisation declare to motivate workforce for minimising the impact of
Vodafone with 50% (Paspalakis, 2018). Use of digital tools and go-paper less are two
initiative which makes initiative for renewable resources to generate positive influence on
Vodafone stakeholders.

An evaluation of the influences of ethics on organisational functions
Ethics are the way by which organisation respond towards external environment and it
include different principles and guidelines that define the methodologies under which persons
respond towards the workplace. Ethical practices of Vodafone plc are mention as below: Observing integrity in company activities- The term integrity refer to ethical practice by
which individual are involved in Vodafone plc. Statutes of Vodafone plc monitor and
ensue all persons which engage in company operations. This is also used by management
of Vodafone to perform work according to legal standards of country or region (Zeschky,
Winterhalter and Gassmann, 2014). It results all functions are performed by management
according to decided benchmark. Disclosure- The part of ethical practices refer to complete work according to best aspect
of consumer, it also encourage organisation for completing task with use of important
information as this insist company to complete work as per performance of Vodafone.
This also refers management inferred confidentiality and privacy among organisation to
complete all functions for generating desired output from company operations.
 Compliance- With the use of compliance management ensure that all ethical practices are
implemented by individuals by claiming link related with Vodafone plc. This is also used
to make effective cooperation among all departments of Vodafone. It result workforce
generate coordination among workforce to complete their task as per decided goals.
Organisation function and influence to work as per global sustainability
Sustainability perform an important role for Vodafone and it is because globalisation
impact on ethical practices. This also refers management is more focused to gain sustainability
among functions in order to complete all work as per regulations that aids in enhancing company
results by completing task with motive of obtaining sustainability in company. In present
scenario, management make result that aids in generating aspects which involve person to protect
information and use them to complete work as per ethical practices (Strengers, 2015). With
corporate social responsibility this is easy to make positive aim for generating better cooperate
image of Vodafone.
McKinsey's 7 model of Vodafone
 Structure- The term structure is defined as a way of skeleton that shape an organisation
to perform their work with more efficiency. This dedicates management operate and

control all task according to decided sector and level. Vodafone follow decentralized
structure to complete work in minimum time-period.
 Strategy- organisation strategy perform their work with more efficiency and it leads to
complete all work according to decided resources. Plan of action is an effective method
which lead to complete work as per tactic and strategy. Vodafone manage work as per
capabilities.
 System- With development of an effective system an organisation generate process that
implement and organise procedures which generate maximum benefit for organisation.
Further, innovation and technology make decisions in minimum time-period to complete
work as per routine activities (Al-Mannai and Hindi, 2015).
 Staff- Marketers, Sales-person, engineer etc. are individual who are engage in company
operations. They all work with motive of accomplishing organisational goals in stipulated
time-period. Vodafone authority motivate workforce to engage person skilled and
capable person.
 Skill- Technical and human-resource skills are engaged by individuals to perform all task
with engagement of capable workforce in company roles. Vodafone also improve their
recruitment process to recruit skilled and potential applicants.
 Style- This refer to the manner by which personnel implement aspects that engage
personnel to complete work according to management style. Traditional style is
implemented by management to manage work in a proper manner.
 Shared value- As per shared value management make influence and significance that is
used to guide and share similar methodology as it lead to complete work with a common
destination. Vodafone maintain decorum of internal workplace by sharing similar value
with all workforce.
Hofstede's Dimension of culture
It is defined as an effective framework that manage and utilise cross cultural
communication to complete work as per decided dimension. Relation between Vodafone and
Hofstede's culture is mention as follow:
 Power distance- This dimension relates with degree that helps individual to perform
work according to decided roles.

 Individualism V/S Collectivism- It is defined as the culture dimension which focus on
all question that relates with individual. Vodafone prefer to complete work with
collectivism aspect.
 Uncertainty avoidance- This relates with state and expression in which society
individual are confused to perform work in a confident approach.
 Masculinity V/S Femininity- The term masculinity relates with preference of
community and this leads person to complete work by achieving rewards of their
performance.
Evaluation of different ways related with decision making
Hidden responses- the term stage refers to generate effective decisions that is used to
complete work as per metric. KPI and benchmarking are two tools which make decision process
more appropriate. Vodafone ensure that all responses are monitored by management to complete
work as per decided results. It results management make decision that improve company profits.
Details, fiction and decision-making process- This define and offer method which
develop interactive session and instrument to complete work as per decided procedures. With
actual plan it is easy to complete work as per end-user (Liang and Yu, 2014). Vodafone make
decision with engaging individuals to make decision for offering more favour by providing
essential details.
Methods to enter in global market
 Exporting- This is an effective method to sale the products and services directly in
another country. For Vodafone exporting is an accurate method to complete work in
foreign market with minimum risk by reducing number of mediators.
 Licensing- With use of license management of Vodafone allow another organisation to
complete work in target country. Trademark, patent and production technique are three
method to manage licensee fee and use of property in foreign market.
 Franchising- Vodafone management adopt franchise methods because it is same with
licensee. This is also used to manage rules by performing all activities in a discipline
manner. Like, use of components that improve manufacturing services.
 Joint venture- It is consist of two organisation that establish a joint-owned business.
Vodafone manage and develop relation with market for developing better relation with
local market.

 Foreign direct investment- FDI prefer method that leads management to generate direct
investment for developing better facilities with foreign market. Technology and staff are
two source that leads to establish new venture at different geographical location.
CONCLUSION
With the analyse of above report it is concluded that global business environment is an
essential concept that influence person from all over the world. Internal and external
environment are two aspects that impacts on operations, structure and function of a business.
PESTLE and McKinsey's model are implemented to perform all work in an organised manner.
Globalisation make strategy and system that make a person more important to complete all work
according to geographical conditions. In the last, with understand of marketing entry method it is
easy to perform operations in international market.