Strategic Management Plan: Macro & Micro Analysis of Vodafone Group

This report provides a comprehensive strategic management plan analysis for Vodafone Group PLC, a British multinational telecommunications company. It employs various frameworks, including PESTEL analysis, to assess the impact of the macro environment, and Porter's Five Forces to evaluate competitive forces. Internal capabilities are examined using the McKinsey 7's model and VRIO analysis. The report identifies strategic priorities and objectives based on these analyses, considering factors like political and economic conditions, socio-cultural influences, technological advancements, legal requirements, and environmental concerns. The ultimate goal is to provide Vodafone with insights for developing effective strategies to maintain a competitive advantage in the dynamic telecommunications market, emphasizing the importance of adapting to external factors and leveraging internal strengths.

Strategic Management
Plan

Contents
INTRODUCTION......................................................................................................................3
MAIN BODY.............................................................................................................................3
P1Applying appropriate frameworksanalyse the impact and influence ofthe macro
environment and its strategies................................................................................................3
M1 Critically analyse themacro environment todetermine and inform strategic
management decisions...........................................................................................................5
TASK 2......................................................................................................................................5
Internal and external capability of organisation....................................................................5
TASK 3......................................................................................................................................7
P3 Application of Porter's Five Forces to evaluate the competitive forces............................7
TASK 4......................................................................................................................................8
P4 Application of theories, and models for strategic planning..............................................8
M4 : Strategic management plan that includes strategic priorities and objective................10
CONCLUSION........................................................................................................................11
REFERENCES.........................................................................................................................13
Books and Journals:.............................................................................................................13

INTRODUCTION
Today's business environment is found to be very complex and dynamic in nature and
that's why it becomes necessary for an organization to focus on building effective strategy
which helps them to gain a competitive advantage even in the competitive world. This can be
achieved very well with the help of a strategic management plan as it is the planning
procedure that includes all the management activities of the organization (Kara, 2018). It is
used for the purpose of setting priorities, strengthening operations, focusing on energy and
resources, ensuring stakeholders and employees have a common goal, etc. This report will be
discussed an environmental analysis and strategic growth management plan based on internal
and external analytical tools with the special reference to Vodafone Group PLC. It is a British
multinational telecommunication company that registered its headquartered in Newbury,
Berkshire, England. They are planning to produce an environmental analysis and strategic
growth management plan so that they are able to compete in the market and run their business
successfully this report will be discussed an analysis of the macro and microenvironment
with the use of appropriate theories and models. It will also discuss theories and models of a
strategy that has to interpret the strategic direction of an organization.
MAIN BODY
P1Applying appropriate frameworksanalyse the impact and influence ofthe macro
environment and its strategies.
In the modern era, globalization is increasing and because of it, there are many
external factors that are also increasing and that provide are direct or indirect impact on
organizations. Vodafone is found to be a multinational organization that runs its business not
only in one nation but in many other nations(Pan, Chenand Zhan, 2019). Due to this, it is
identified that every day the external environmental factors are providing an impact on the
organization's performance. That's why it is necessary for Vodafone to analyse the macro-
environment factors which help them to find out the areas where they will be facing risk. This
can be possible with the help of using the PESTEL analysis model. It contains 6 important
factors that are explained below:
 Political factors: It includes all the rules and regulations, policies, etc. which are
designed by the government. It is necessary for an organization to adhere to the
policies on finance and taxation by the government then only they can do business
practices. But Vodafone is an organization that runs its business in multiple countries

and that's why they are facing a challenge from government policies and regulations.
Political factors also include Brexit and the political stability of the nation which is
found to be not in a bad situation. Due to this, the company needs to make their
strategies accordingly which are able to adhere to the rules and regulations of the
government.
 Economic factor: It is identified that the economic situation is becoming very bad in
today's time because of the pandemic situation. But it is found that Vodafone is not as
much affected because it is a telecommunication organization and people have
increased their dependence on the mobile network during the pandemic situation.
 Socio-cultural factors: Every day the demand of consumers is increasing and their
taste preferences are continuously fluctuating which becomes very challenging for
Vodafone to realize (Ortega and et.al., 2019). Vodafone is found to be very dedicated
to society as they are continuously sorting for curbing discrimination and educating
people. It is identified that Vodafone has an inclusive culture which there is strictly
against discrimination. It is necessary for Vodafone to make a strategy for all their
branches which are found in different nations that this culture should be followed in
each and every country where they are located.
 Technological factors: In the era of the technology world, the development in
technology is continuously increasing and it provides a direct impact on Vodafone as
it is a telecommunication organization. They are using various forms of Technology
because their business depends on it. Vodafone is using technology in order to make a
single digital course that has the capability to connect the HR system for the company
globally. It is necessary that Vodafone should make their strategy the inclusion of
creativity and flexibility because the company always developing the latest
technology so their work is should be able to accept it.
 Legal factors: It is found to be very important to consider all the laws which are
necessary to consider by an organization. Vodafone is running its business on a
multinational basis so that's why it becomes necessary for them to focus on adhering
to all the laws of a different country. The need to complain about many losses such as
GDPR which are related to the right of consumers. It is necessary for Vodafone to
include necessary laws and regulations in its strategy.
 Environmental factors: In today's business environment, there is a very careful eye
on global businesses as their focus on efforts that are adopted by an organization
toward maintaining corporate social responsibility. It is found that Vodafone has

already been working towards corporate social responsibility as their working for
reducing the negative impact on the environment. It is the part of the United Kingdom
which set its goal to achieve 100% renewable electricity in Europe by 2025 (Keding,
2021). Vodafone is playing a very important role in this goal as their continued focus
on their operations. It is necessary for them to formulate strategies for the
maintenance of corporate social responsibility.
M1 Critically analyse themacro environment todetermine and inform strategic management
decisions.
From the discussion of microenvironment analysis, it is identified that there are many
factors that are uncontrollable in nature but provide a direct or indirect impact on the
organization. For example, technology is the external factor and it is analysed from the
PESTEL analysis framework that the technology is increasingly upgrading which provide a
pressure on the organization as they need to upgrade that technology in the
telecommunication sector. These factors are providing a direct impact on strategic
management decision as they have to make strategic according to the external environment.
TASK 2
Internal and external capability of organisation
An organization's internal environment is defined as a set of qualities that explain the
environment within its culture and influence its entire activities. An internal investigation was
done with the purpose of identifying the internal factors that influence the organization's
behaviour. Internal environmental factors must also be addressed by the Vodafone company
because they contribute in the formulation of growth-oriented work plans. To analyse internal
aspects, the organisation employs a number of frameworks, which are listed below:
McKinsey 7's model
It is defined as a paradigm that says that in order for a business organisation to be
successful, seven internal characteristics must be linked and strengthened. Its main purpose is
to demonstrate how to employ the seven key traits to attain effectiveness. Some of the
framework's most critical components are as follows: Structure: It describes how a company is organised in the form of a chain. The
structure of a firm also influences the division of authority and responsibility inside it
(Saenz, 2019). Vodafone's organisational structure is matrix, which means that teams

must report to a number of different leaders. The availability of effective group
discussion is a key feature of this structure, which contributes to the development of
creative services. Strategy: It's defined as a competitive advantage strategy established by a company's
management. It also aids the organisation in completing all problems successfully.
Vodafone uses a cost leadership strategy at work as a part of a marketing strategy to
help the company gain market share. Skills: It is defined as an individual's ability to work for a firm. These skills are
crucial for the company since they help them achieve their goals and objectives in a
more efficient and timely manner (Staszewska, 2017). Vodafone's management plans
training sessions on a regular basis in order to increase the organization's overall
effectiveness and efficiency by growing and refreshing employees' current talents. System: It is defined as an organisational procedure with the purpose of displaying
practises on a consistent basis. In simple words, the design of an organisation aids
decision-making. Vodafone follows a rigorous and intentional approach to its
business operations. Style: It displays how senior management controls operations and interacts with
employees (Silpcharu and Noongam, 2020). Vodafone is using excellent management
and leadership styles to enhance the image of the business while also retaining
employees. Staff: The number and sorts of working personnel employed by the company are
specified in this area. In order to increase the firm's efficiency and performance,
Vodafone is using a number of employee-focused initiatives at their workplace.
 Shared Values: It covers both the benchmark and the regulations that guide the
organisation in carrying out its duties. Vodafone's specific values are shared with its
employees in order to fulfil the organization's aims and objectives.
VRIO Analysis
It is defined as a set of tools for doing internal analysis that firms employ to find
benefits and resources that provide them a competitive advantage (Kwayu, Lal and Abubakre,
2019). Value, rarity, imitability, and organisation are all represented by the letters VRIO.
Every business is designed to provide a distinct advantage or resource to its target market.
The VRIO framework is an internal assessment tool that assists firms in identifying the
advantages and resources that provide them a competitive advantage. The following is a
general overview of the VRIO framework in the context of Vodafone:

 Valuable: Resources are crucial since they are required for capitalising on
opportunities and minimising hazards in the workplace. Vodafone's financial
resources are considered valuable since they help the corporation secure greater
investments from other sources. Employees are also valuable resources since they
may assist an organisation in increasing its productivity and profitability. Rareness: It takes into account all of the resources that the rivals employ. It is
difficult for Vodafone to collect significant financial resources because it might be
developed by a small number of businesses. Vodafone employees are also deemed
distinctive due to their high level of expertise and training. Competitors will struggle
to create a similar working environment.
 Imitable: This section includes resources that are difficult to duplicate and sustain, as
well as resources that provide a temporary competitive advantage. It is not expensive
to imitate employees because other competitors can teach their employees to develop
their abilities and qualities. Vodafone also makes an effort to recruit employees from
its rivals. It's also difficult to copy Vodafone's patent due to legal constraints (Smith,
2017).
 Organisation: It's defined as a set of well-organized resources that help an
organisation achieve valuation in a variety of conditions. Vodafone's financial
resources are properly organised, allowing them to capture market value by making
the correct investments at the right time and capturing all opportunities.
TASK 3
P3 Application of Porter's Five Forces to evaluate the competitive forces
It is characterised as a strategic management tool that was first introduced in 1979 by
Michael E. Porter. This framework has five forces that are linked to the company's strategy.
The various factors of Porter's Five Forces in the context of Vodafone are listed below: Threat of new entrant: The threat of a new market entrant is considered minimal due
to the presence of higher entry barriers. Companies that want to enter the market must
pay licencing fees that are proportional to reach availability. In addition, the new
company must adhere to all telecommunication industry entry laws and regulations
(Kim, Bonn, and Cho, 2021). It has been discovered that the cost of establishing all of
the infrastructure is extremely high, and it is hard for a young entrant to keep up with
frequent technological changes.

 Industry rivalry: Vodafone's competitors charge lower call rates, implying that
Vodafone must contend with greater competition. Similarly, Vodafone's competitors
are presenting a variety of new products and services to the market for the purpose
of gaining a larger market share. It necessitates that Vodafone work on innovation and
provide the same products and services to its customers. Threat of substitute: Vodafone's products and services are under threat from a
number of sources. Due to the quickest increase in internet services, CDMA and
landline services have been dwindling day by day. VOPI includes Skype, Yahoo
Messenger, and Google Talk, as well as social networking, video conferencing, email,
and many other mobile service alternatives. Because of the existence of strong buying
power, Vodafone is not compelled to pass on the costs associated with substitution to
consumers. Power of suppliers: The bargaining strength of Vodafone's suppliers has been
determined to be high. Following that, the company generates larger earnings than its
competitors. Vodafone has been identified as the market leader. Because of their large
market share, businesses can readily adopt any of their suppliers' pricing strategies. It
is relatively easy for Vodafone to keep down supplier prices while increasing profits.
 Power of Buyers: Customers' bargaining power is determined to be considerable in
the telecommunications market due to the availability of cutthroat competition. All of
Vodafone's competitors provide the same services and goods (Gasbarro, Iraldo and
Daddi, 2017). Customers' strong purchasing power results in a significant drop in
industry cost prices. It aids Vodafone in earning better profits as compared to its
competitors.
TASK 4
P4 Application of theories, and models for strategic planning
Porter's Generic Strategies
This strategy is beneficial for determining the strategies by which a company might
achieve a competitive advantage in the marketplace. Commercial organisations can use this
framework to better understand the approaches that help them gain a competitive advantage.
The following are three generic strategies that fall under Porter's umbrella: Cost leadership: It contributes to the development of solutions that help corporations
increase profits while reducing costs. Vodafone's market share grows as a result of its

willingness to accept low costs. These price reductions boost product and service
sales, allowing the business to turn a profit. In essence, this means that Vodafone will
become the market leader in terms of product and service pricing.
 The differentiation strategy: It comprises inventive strategies such as modifying a
company's products and services to differentiate them from competitors' products and
services. Vodafone must undergo substantial research, development, and innovation
in order to correctly implement a differentiation strategy (Clougherty and et. al.,
2020). The organisation must develop high-quality products and services in order to
increase demand for their specialised product and defeat the competition. Vodafone is
also essential to present the items and services in the market after implementing the
differentiation strategy. Customers learn about the benefits of employing a
differentiation approach through marketing, which helps the company sell and market
more effectively.
 The Focus strategy: By using the focus approach, Vodafone can appreciate the market's
dynamic nature as well as client requests and wishes. This strategy emphasises on
providing high-quality products and services to clients in a distinctive way. It helps
Vodafone build strong brand loyalty with its customers.
Bowman's Strategy Clock
It is defined as a framework for business organisations to build relevant strategic
positioning within a certain market. This model contains eight counterclockwise locations,
each of which demonstrates a different market strategy for success. Some of the positions that
come under this category are listed below: Low price and low value added: It has to do with offering more products and
services, and Vodafone's price and values are low, making them less competitive and
the items equivalent to those offered by competitors. Low price: It's a strategy for positioning oneself as the most cost-effective option for
clients. As a result of these efforts, Vodafone will have low margins (Clarke,
MacDonald and Ordonez-Ponce, 2018). The goal of Vodafone's management is to
reduce the cost of its products and services. Hybrid: Low pricing vs a differentiated strategy are a trade-off. Vodafone's business
strategy focuses on keeping prices low and offering products and services at a cheaper
cost than its competitors. Vodafone can boost its profit margins by following this
strategy.

 Differentiation: It is a strategy in which a company establishes the goal of offering
some difference in their products and services by adding a bigger quantity of
perceived value that can set them apart from the products and services of their
competitors (Chun, 2019). Vodafone's usage of this technique has resulted in products
and services that are distinguishable from those of its competitors. To apply the
differentiation strategy, Vodafone must use the ansoff matrix as well as the 4Ps of
innovation. Focused differentiation: The "high value at high pricing" strategy is another name for
this approach. Although Vodafone's deployment of this plan resulted in greater
earnings, it will be difficult for the corporation to maintain those gains.
 Risky high margins: When this strategy is utilised at work, the firm organisation
focuses on charging a high price for products and services without offering any new
value. Customers of products and services pay extra for the organization's brand
image when Vodafone employs this strategy, as no additional value is provided to
warrant the higher price.
 Monopoly pricing: It is defined as a means of managing product and service prices in
a monopoly market. The phrase "monopoly market" refers to a market in which the
prices of goods and services are set by a single organisation (Akgül and Tunca, 2019).
Vodafone works in a competitive business environment, therefore staying updated
about external factors that could affect product and service prices is critical.
 Loss of market shares: It has been decided that operating in a falling market is the
worst position to be in, and businesses are recommended to do so. Vodafone might
employ this method to break into a new market.
M4 : Strategic management plan that includes strategic priorities and objective
Strategic management plan :
Strategic control is the continuous planning, monitoring, analysis, and evaluation of all the
necessities that an organization needs to reach its goals. Changes in the business environment
require organizations to constantly rethink their strategies for success. Strategic management
processes help organizations understand the current situation, design strategies, implement
them, and analyze the effectiveness of implemented management strategies. Strategic
management strategies consist of five basic strategies and may be implemented differently
depending on the environment. Strategic management applies to both local and mobile
platforms. Below mentioned is the strategic management plan which have been developed by

the management of Vodafone. In order to bring any changes in the organisation, it is
necessary for the management to develop an effective strategic marketing plan as it help the
management in avoiding the unnecessary activities and guide the management to focus on the
major factors which can help the organisation in attaining the revised organisational goals
and objectives in an effective and efficient manner.
Summary Vodafone is a worldwide telecommunications brand. The products and
services of this business are available in practically every country on
the planet.
Vision According to Vodafone's vision statement, the firm strives to be the
world's premier communication services provider.
Mission Vodafone's aim is to improve the lives of its customers by utilising the
unique power of communication.
Objectives  The goal is to increase sales by 15% by introducing new
products.
 To cover all clients so that a big and loyal customer base can be
built.
Tactics  Product: Handsets, internet service, and a variety of other
telecommunication-related equipment and services are all
products.
 Price: The firm has a target-based pricing model, in which
executives maintain lower rates than their competitors.
 Place: Vodafone's services and products are available all over
the world.
 Promotion: Vodafone, in comparison to its competitors, is
always focusing on telecom advertising to generate more cash.
Controlling and
Monitoring Evaluation
A measurement method is available to the formation. The influence of
the new sort will be compared to that of the concern's competitor in
this tool, and an investigation will be carried out to change the arena
that is propelling the start inverted.
Implementation:-

It has been established that implementing the plan being developed in order to increase
the corporate organization's profitability and productivity is vital. The organisation must
distribute its resources so that they can be properly utilised in order to carry out the intended
plan.
CONCLUSION
From the above report, it has been concluded that the business strategy is essential for
establishing plans and supporting the organisation in making sound business decisions that
result in enhanced profitability and productivity. In order to arrive to the desired place, the
organisation must stick to this long-term strategy. The resource allocation was also done with
the intention of increasing profitability and productivity. Furthermore, it has been discovered
that the organisation can analyse the internal and external factors that influence the
organization's practises by employing a range of models or frameworks. Strategic
management plan leads to the development of objectives along with the effective strategies
which are being adopted by the management of business organisation to enhance the
productivity and profitability of organisation. In addition to this, it has been also analysed that
the effective application of several business models help the management in developing
effective business strategy which plays an important role in the development of overall
business firm.

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