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Impact of the Micro-environment on Vodafone

University: UK College of Business and Computing

  • Unit No: 12
  • Level: Undergraduate/College
  • Pages 16 / Words 4000
  • Paper Type: Assignment
  • Course Code: L/508/2443
  • Downloads: 26
Question :

This unit state that mobile telecommunication sector is very competitive so it is important for Vodafone to maintain their position at the market plan and enhance market share at national & international scale.

  • Analyze the impact of the microenvironment on Vodafone and its business strategies.
  • Assess capabilities and internal environment of Vodafone. 
  • Conduct an analysis of the UK’s telecommunication industry using Porter’s Five forces model. 
  • Determine strategic direction and options available for Vodafone using Bowman’s strategy clock model.
Answer :
Organization Selected : Vodafone

INTRODUCTION

Vodafone in one the best telecommunication service provider business operating from UK. It has business in India, Europe and many other regions effectively. Vodafone has made its place in the global market. The headquarter is located in Newbury, England. Business strategy is very important for business in order to enhance profitability and production which also help to gain competitive advantage effectively. It is analysed that Vodafone Group Plc has total £139,576 million of assets in year 2012. It has 14,000 stores and 238,000 base stations worldwide effectively. The report will cover impact and influence of Macro environmental factors on Vodafone, UK. In addition to this, Internal environment and capabilities of Vodafone and Porter's five force analysis to determine competition, threat of new entrance, bargaining power of suppliers and buyers, threat of substitute products and finally the rivalry among competitors in the business effectively. Finally, the report will demonstrate bowmen strategic clock model to explore options for strategic positioning and also how should products and services offered by business.

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TASK 1

Impact and Influence of Macro environmental factors on Vodafone, UK

Vodafone, UK

It can be said that Vodafone in one the best telecommunication service provider business operating from UK. It has business in India, Europe and many other regions effectively. Vodafone has made its place in the global market. The headquarter is located in Newbury, England. The market value is also very effective and around on hundred billion pounds which is a very large number. Vodafone has business in more than thirty countries and expanding more with the developing growth. The business and operational activities are affected by some factors which are described below:

PESTLE ANLYSIS OF VODAFONE BUSINESS

Political

Political factors are the main influencers on business operational activities. It can be said that the firm is dependent on political factors in which country it is operating. In order to establish the infrastructure of business, Vodafone requires permission from government and regulative body effectively. This will affect the operational activities in terms of time and money. Political factors such as inflation and tax rates for a particular nation also affect business profitability and production. 

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Economical

There are some economical factors such as rise in inflation rates, economy affect on business process, price and products, changes in supply and demand, interest rates, foreign exchange rates and economic growth pattern affect Vodafone operational activities. Such changes create issues for business in terms of making regular changes in operations and prices accordingly and effectively.

Social

Social factors are crucial for the firm in order to manage and control that it helps to enhance production and profitability. Social factors such as population analysis, demographics, cultural trends and buying trends of people are different in every nation. It can be said that people have their own choices and preferences which affect demand and supply procedure of business. The firm should manage social factors such as in countries like UK where the demand is high during the holiday sessions.

Technological

Technological factors also affect business that innovation in technology is improving day by day. Technological factors such as research and development, automation, latest machineries and equipments and amount of technological awareness that Vodafone market possesses affect business and operational activities. 

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