The scenario of this report determines the growth and competitiveness of telecommunication sector of UK. In this regard, it is required for Virgin Mobile to evaluate possible strategic direction by considering different approaches as:
- Analyze the impact of external environmental factors over the business strategies of Virgin mobiles and its decision making process.
- Identify the internal capabilities of Virgin Mobile.
- Analyze the market competitiveness of telecommunication sector of UK by considering Porter’s five force model.
- Determine availability of strategic direction for Virgin Mobile.
Business strategies refers to action course which is prepared to accomplish measurable as well as particular goals. These types of strategies are developed through top management and also executed through middle level employers under an observation of the top level management. The main reason behind formulating strategies for accomplishing mission, goals and objectives of an organisation through proper utilization of the strategic thinking (Ackermann and Audretsch, 2013). Business strategy is long term planning through which an organisation can achieve its long term objectives with in particular time period. This report is based on the Virgin Mobile and it is mobile service provider and operate its business in United Kingdom country. It is also subsidiary of the Virgin Media. In this given report mention about an impact as well as influence of macro environment on Virgin Telecommunication company. In order to analyse strategic positioning of company, Ansoff growth vector matrix also will be discussed under this given report. Internal capabilities are necessary for achieving aims and objectives of firm with in specific period of time.
P1 Impact and influence the macro environment
Strategy refers to action plan which is designed to accomplish the long term aim in an effective manner. It is general direction which is set for an organisation and also its different components in context to accomplish desired results. Business strategy is developed by top management and also helpful in achieving the long term objectives with in fixed time period. Macro environment are those factors which impact on business firm outside of an organisation and company can not control all these factors (Alsoboa and Aldehayyat, 2013). In addition to this, mobile telecommunication sector is fast developing sector in all over the world. In United Kingdom, there are various telecom mobile organisations and they provide effective quality services to all people. Virgin mobile organisation is a service provider and also operate its business operations in United Kingdom. This firm was launched through the Virgin Group in year 1999 and it is a first Mobile Virtual Network Operator in all over the world. Under this company around 71000 staff members are working. At starting of this organisation, it was private joint venture among the Virgin Group and One2One. This company provides its services in many different countries and also make changes in its services on the basis of demands of people. This organisation conduct its business in many other countries so there will be more affect of macro factors on its business operations and to know this factor.
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1) PESTLE Analysis of Virgin
Political factors- Under this, policies are governed through the political groups or can say government. The policies of each country are different so it is necessary for an organisation to know about the rules, policies and regulations of that country in which firm is going to conduct its business (Bentley, Omer and Sharp, 2013). In context to Virgin company, it is running in single brand and has a partnership with the stagecoach. This company follows all regulations of country, pay taxes and also develop policies on the basis of government rules. In Virgin group, political interferences is related to financial matters as reports are not more clear because of its partnership with more organisations.