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Type: Business Downloads:127 Pages: 3 Words: 4000


According to the current market situation there are many factors that a company can adopt for having growth and success. In context with telecommunication, this sector is growing at a rapid speed. Therefore, there are many organisation those are operating their business in the same field because of which a lot of competition can be seen (Ackermann and Audretsch, 2013). Henceforth, it has become challenge for the companies to apply appropriate strategies so as to sustain a better position at market area. As per the survey conducted it around 56% of the people works in this sector which is equal to 22 million. Telecommunication sector contributes around 5 billion Euros in the economy of the nation. In this report, company that has been taken is Vodafone, which is a renowned organisation in United Kingdom since 1982. In this report, there are various factors are discussed that can have an impact on business operations. Other than this, weakness and strengths are included in this assignment.

Task 1

P1 Impact and Influence of Macro Environment on Vodafone

Pestle Analysis of Vodafone

PESTEL analysis defines the external factors which affects on a business that includes political, economical, social, technological, environment, and legal, Vodafone's external aspects are described below 

Political factors - Political factors are most influential elements for a company which impacts on its establishment when the firm is expands its infrastructure to a new location. Then, the business is abide to follow the rules which are regulated by the government of the country. Vodafone is dependent on the governing bodies of the country, the government develops such policies and rules for the a business which works on globalised level. In Mexican government does not allow any telecom company to enter in the market so easily, it tightly holds the license procedure (Annabi and McGann, 2013). Because Mexican government needs high quality service and they reduces the use of mobile techniques for children. So Vodafone needs to take the permission from government and to establish its infrastructure for the excellent service. Mexica also has a communication act which needs to be follow to establish in the country.

Economic Factor – Economy is the factor which depends on the country growth cause higher GDP of a country reflects in company's growth. The recent recession time effect on the customer and market as well, customer has less purchasing power in that time most of the telecom companies were going through risk but at that time Vodafone played a smart game, it offered low prices to attract customer to increase its sales.

Social Factor – Social factor consists of the life style of a people there culture and values. Mexican population is well educated and that' why they have good decision making capability, so when they making their mind to purchase the a phone service that may effect to Vodafone, if it has a good strategy then it allure the public to stand in market place (Auzair, 2011).

Technology Factors – Mexico is well developed country and that's why the telecommunication companies wanted to entered in the market to earn a lot. So they put some efforts to make there product different from others. Vodafone can offer them to high bandwidth internet speed to sustain in the market place.

Environment Factors – with the rise of globalisation, people are more aware about environment safety, consumers always want their favourite brand must follow all the ethics to protect the environment. Vodafone has been a company with high dynamic nature from years, when it comes to expand the market, it should always consider the aforesaid facts and analysis. Vodafone has zero environment harm safety culture, so that it can help to save the environment.

Legal factors - A company which has so many rivals should be so vigilant about the legal issues, cause it does not follow the rules then it can be major hazard for the company even the company can be prohibited from the market. As Vodafone can be penalised if they has issues like employee payment then legal issue can be raised.

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