Business Strategy LSST College Level 4

Task 1

P1. Analysing macro environment and how it determines Vodafone organisation's strategic management decisions

Telecommunication networking industry is one of the emerging industries in UK, and in case of worldwide, it is growing in mobile telecommunication sector (Parast,2018). It has been seen that, in UK the trend of sale according to survey done by Deloitte is that more than half (53%) of citizens in the range of 16-75 year in UK are using smart phones while making the equipment's of around 22 million people. Thus, the numbers of users’ raisin up in industry because of effective communication demands emerging by peoples of nation. Overall it makes influences on the macro environment of Vodafone in context of UK.

PESTLE analysis of Vodafone for Environment Analysis:

PESTLE analysis for a company is one of the important factors which must be taken into account by its manager, in order to know about those external prospects which influence business functionality and strategy as well (Du, 2017). Changes in the macro-environment factors can have a direct impact on not only the Vodafone Group Plc but also on other players in the telecommunications' sector. There are some following factors:

Political factors: Political factor is one of the significant factors which can affect Vodafone’s long terms profitability in different market. Vodafone functions in multiple countries across the world. Therefore, they face different political changes and political system risk at broad level. In order to gain achievement in such dynamic telecommunication industry, various countries contain high-level systematic political environment (Meckling, 2017). Political stability and importance is necessary for country's economy. It provides intellectual property protection for the company by which they can boost their brand value and equity as well as in industry. In addition to it, they have to follow anti-trust laws of different country as per their regulatory norms and regulations, so it can be said that, it makes broad influences on business strategy of Vodafone group.

Economic factors: Variety of macro environmental elements such as inflation rate, saving rate, interest rate, foreign exchange rate and economical cycle ascertain the aggregate demand and aggregate investment of an economy. Vodafone considers the country's economic element which is needed to be taken into account. Such as, country's growth rate, inflation and industry economic indicators such as telecommunication industry growth rate etc. government intervention in the free market and telecommunication sector of the country also makes an impact on economic growth of the country (Sieger, 2018). Apart from it, infrastructure quality of telecommunication industry makes an impact on changing business strategy of Vodafone in specific nation. Skills level of employees in telecommunication industry also making impact on profitability and productivity of the business. So in case of UK, the economic factor of the country makes a great impact on business and strategies of Vodafone.

Social factor: It can be said that, communities culture and way of doing things makes impact on the culture of the company in case of UK, numbers of people uses telecommunication services of Vodafone and share beliefs and attitudes that the populations play a great role in in framing marketing strategy of Vodafone . Demographics and skill level of population is making impact on productivity and profitability of the Vodafone group in industry. Different cultural and sociology level of country influences the business strategy of firm in any industry (Cecere, Corrocher and Battaglia, 2015).

Technological factors: Technologies are frequent changing in telecommunication industry around the world. Recently technologies launched in the telecommunication industry by Vodafone group's competitors in UK has been made great impact on changing in its current strategy of doing business (Baraibar‐Diez, 2017). Technology furnishing opportunities to Vodafone group to enhancing their quality and services effectiveness towards its users. In case of UK, the younger generation is focusing on utilising the latest technologies as digital marketing and other various purposes. It influences the strategic level of the firm in the UK.

Environmental: Environmental factors are affecting strategy of Vodafone. It can be said that, climate changes increases the maintenance and cost of operation for Vodafone. This affects the profitability f company in adverse climatic condition (Lance, 2017). In addition to it, weather is changing in country, in most of the time, in rainy seasons; Vodafone faces barriers in case of provision of proper telecommunication services in industry. Moreover, laws regulation related to environment pollutions should be considered by the company in order to provision services, so all these factors affect the strategic changes of firm.

Legal factor: It has been seen that, in case of numbers of countries, the legal framework and institutions are not robust enough to protect the intellectual property of the industry. Vodafone must consider all legislative norms and regulations related to the telecommunication industry in UK, which enables company to functioning their various business functionality in industry in proper way. They have to follow discrimination law at workplace to having fair behaviours with its employees. In addition to it, they also have to follow different country's consumer protection law and e-commerce legal provision take into consideration while entering into a specific country's business environment.

Ansoff's growth factor matrix to analyse Vodafone organisation's strategic positioning:

It first appeared in the Harvard Business Review in 1957; it can be used by Vodafone’s business manager in order to understand strategic positioning of the company in industry.

Market development: Vodafone company need to target new markets in different-different countries as per new areas in existing market (Baraibar‐Diez, 2017). The business manager can use PESTLE analysis, it orders knowing the current situations of the industry in the country. They have to make different sales channels in various reasons of the country, as per its requirements in market, so for execution of current market development, they have to use market segmentation approaches.

Diversification: This strategy is complicated in nature, in which Vodafone can use their existing expertise for achieving economies of scale, because company is making efforts to offer completely unique telecommunication products and services from their competitors in market (Spender, 2018). They need to understand the opportunities of business and expand it as per its requirements.

Market penetration: Vodafone professionals require developing a new marketing strategy to encourage more people to making utilise of its telecommunication products and services as per its expectation from new market (Buckley, 2016). In addition to it, they have to introduce new loyalty scheme of its telecommunication services towards existing customers in market. Business need to offer attractive discount vouchers and special offers of promotions, which assist the firm in gaining desired success

Product development: In case of telecommunication services development of Vodafone, its professionals need to make sure that, they have to make use of some areas where something new activities can be raised in proper way. Apart from it, it must introduce different variants in its existing products and services, which can assist them to satisfy their customers as per modern demand from telecom industry in UK.

Task 2

P2. Critically evaluating the strengths and weaknesses of Vodafone internal capabilities, structure and skill set

Strategic capability: A business is not complete without its customers, so varied factors are associated with it, which is customers, market share and revenue. Vodafone utilise tactics as per its requirements in industry and putting them into feasibility is the major responsibilities of the business leadership in firm. Strategic capability means, business has ability to making success of their employ competitive strategies that enables it to running and raise its value over time in industry (Mellat-Parast, 2018). In case of strategic capability of the company, it assists its manager in order to make their major focus on the organisation's assets, resources and marketing positioning and how better it will be beneficial for the employ strategies of company in the future. Thus, there is no specific method for measuring strategic capability of the company. With the help of strategic capability, Vodafone can reach their desired goals and objectives. It helps the company's managers and leaders to understand not only Vodafone's market positioning but also recognising strategic capabilities of its competitors and marketplace in which they can operate business functionalities.

Example:

Supply chain system: The best example of Vodafone organisation's strategic capabilities is that, it executes a strategy that might depend on suppliers. The business has opened up numerous types of supply chain system by which they can manager all their telecommunication activities and also distribute its services in perfect form. So it increase its profitability and productivity of the business in industry.

VRIO model to determine strategic capabilities proposed in the organisation

In respect to determine the strategic capabilities in the business, VRIO model consider important role in Vodafone. With this regard, following elements are included to understand the framework:

Value: In respect to look towards the value, Vodafone need to identify that is the enterprise capable enough in respect to exploit opportunity and reduce external threat with available resources. In addition to this, they need to identify that skills and capabilities are enough to execute effective plan in the business to attain desired results. Therefore, business considers their aims and objectives to maintain effective value in the business environment (Kim, Jun and Lee, 2014).

Rarity: Rarity includes controlling of resources, skills in the hands of relative few. Therefore, effectiveness will be increasing to cope up with the plan and attain more significant results at workplace. In addition to this, it includes creativity that was undertaken by the Vodafone to maintain their profits in systematic manner (VRIO: From Firm Resources to Competitive Advantage, 2018).

Imitability: Furthermore, the chosen business considers assessment of difficulty to imitate and includes cost disadvantage in the firm. Therefore, they are trying to develop, acquire and replicate the skills and resources in systematic consideration at workplace.

Organisation: When firm organised their activities and tasks, they need to focus on the exploit resources and activities that are needed to perform several functions in the business unit. In this regard, they can capture value in significant manner.

On the basis of following elements, VRIO model consider in the chosen business:

Resources	Value	Rarity	Cost of imitate	Organised capture value	Competitive implications	Strength or weaknesses
Technological assessment	High	Medium	High	Medium	Temporary competitive advantages	Strength
License of spectrum	Medium	High	Low	High	Competitive parity	Weaknesses
Human resources	High	Low	Medium	Medium	Competitive advantages	Weaknesses
Customer relations	High	High	High	Low	Sustained competitive advantages	Strength
Managerial expertise	High	Medium	Medium	High	Moderate competitive advantages	High strength
Services level in Vodafone	High	High	High	High	Temporary Competitive advantages	Strength with distinct competence

Organisation strengths and weaknesses

It is important to focus on the business analysis; there are different strengths and weaknesses exist that create impact on the performances. In order to focus on the internal analysis, different perspective of the marketing needs to be considered in the business. Therefore, Vodafone needs to concentrate on these aspects to analyse creativity at workplace (Ghezzi, Cortimiglia and Frank, 2015). In addition to this, it is also useful perspective to understand market need and requirements in systematic manner. Therefore, it helps to focus on the different aims and objectives as well. Following are certain strengths and weaknesses explain of the chosen business:

Strengths

• Vodafone is popular cellular service provider across the world: Vodafone is the only company that deals in different countries. Therefore, they capture large market in term of deals with their services. In addition to this, they consider operations and functions in all across the world so that it makes effective advantages to make creative results and outcomes in the business environment. With the help of this strength, the company can attract maximum customers at workplace.
• More than 1,000,000 employees: In all over the world, there are maximum employees exist that consider their operations to attract different customers. Employees provide their efforts and part to make creative results in the business. They always consider new operations and functions through customers that will attract in systematic manner. As a result, it impacts positive to deal with the different functions and operations (Cecere, Corrocher and Battaglia, 2015).
• Strong advertisement: Furthermore an advertisement activity of the chosen company is very strong so that it impact positive and attract maximum peopled in the business. In addition to this, proper allocation of resources considers attracting people at workplace in a systematic way. With this aspect, the company ensures that scale helps to measure outcomes from the business advertisement in the market.
• Presence in more than 150 nations: Furthermore, the chosen business exists in more than 150 nations so that more customers are known about this company. As a result, maximum uses of the business activities consider positive advantages to deal with the innovations and creativity. Along with this, it is also helpful consideration which assists to focus on the proper facilities through services could be provides to customers to attract them in the business.
• Diverse services: Moreover, the selected business considers their diverse services to attract customers in the business. In this way, they develop their operations and functions to deal with the innovations and creativity in the different areas of the world. Apart from this, different range of activities assists to focus on the innovations and creativity in the market to deal with the functions and operations in the business environment. Vodafone provide several kinds of services so that they are able to attract maximum customers easily in the business environment.
• Highly efficient website: In addition to this, Vodafone has highly efficient website so that it impact positive to attract customers at workplace. In this regard, systematic work performances consider on the company website that assist to meet with desired results and outcomes. Apart from this, website consideration is major aspect that helps to attract different customers in the business at workplace.

Weaknesses

• Being global brand is the toughest situation: However, Vodafone also facing certain issues and problems in term of the weaknesses. Therefore, they need to cope up with effective functions and operations to solve issues. In this way, main problem which face by the company is that they are unable to take place in global brand. This is because, there are many other businesses existing that considering their operations and functions from several years. It is essential to focus on the innovative and creativity consideration to develop target market in systematic manner (Kim, Jun and Lee, 2014).
• They constantly fight with competitors: Along with this, another problem in the business consider is that they are constantly competing with the major competitors in all over the world. Therefore, they are unable to deal with the market elements and ascertain systematic work performances at workplace (Krishna, Ojha and Barrett, 2017). In addition to this, it can be stated that different business provides products and services on the basis of effectiveness so that Vodafone need to concentrate on them to identify their strategy as well.
• Low market share: Due to low market share in the world, Vodafone is unable to deal with the different characteristics at workplace. In this regard, the chosen company need to focus on the different aspects through they are able to deal with the innovative tools and activities in the market.

Task 3

P3. Porter Five Forces Model

In respect to deal with the different elements of the market, Vodafone need to identify market analysis. With this regard, different aspects need to be attaining to analysis the market. In this regard, market elements need to consider focusing on the desired results and outcomes (Ghezzi, Cortimiglia and Frank, 2015). There are different elements in the market that create major impact on the findings.

• Bargaining power of customer (High): Bargaining power of the customers in UK market is very high for Vodafone because there are major businesses existing in term of telecommunication industry. In addition to this, all they consider same products so that customer can buys products from that place where they get at low cost. However, strong buyer power needs to reduce because of cutthroat competition existence in the market. Buyer power effectively reduced in the industry in the level of competitors. As results, it helps to keep reasonable profits and revenue that needed at workplace to deal with the different activities and functions (Nie and Haryadi, 2017).
• Bargaining power of suppliers (High): Furthermore suppliers of the Vodafone also possess high power of bargaining. This is because, the company operating their functions and operations with greater margin so that it could be consider with competitors as well. As the market leader, market share of the company is large so that it could be absorb at any price which increments from the suppliers more than the competitors (Haryadi, 2018). Therefore, the chosen company able to maintain their low prices to create systematic advantages at workplace. In addition to this, profitability in the business also maintain in systematic manner.
• Competitive rivalry (Moderate): Vodafone faces extremely with high rivalry from their competitors due to the low rates charges. Other competitors consider fewer prices on the products and services so that it is important to look upon the creative results to operate functions and operations (Kim, Jun and Lee, 2014). Competitors constantly provide innovative products and services to their customers so that it consider same to their customers as well.
• Threat of substitute (Low): In the UK market there is low threat of substitute products and services. This is because, Vodafone consider quality and standards in their products and services to deal with the market. In this regard, landlines and CDMA services provided with decline broadband activities. In addition to this, the company also provide video conferencing, Skype, etc. (Krishna, Ojha and Barrett, 2017). In this regard, there are different consideration that has been taken to focus on the innovations and creativity. For instance, strong buyer power attributes to substitution, etc.
• Threat of new entrants (Low): Threat of new entrants in the UK is also low because telecommunication industry requires more investment to deal with the functions and operations in the market. In this manner, low barrier to entry exist so that other businesses are unable to enter in the market (Lu, Lin and Zhang, 2014). In addition to this, cost of setting up network infrastructure is high and also changes continuously. Therefore, it is important to look and cope up with maintaining high level of efficiency
  towards the services.

Strategic alliances consider partnership which develop as the agreement among different

parties to pursue on the basis of agreed objectives that are needed in independent business. Strategic alliance usually fall with short of legal partnership entity, agency, corporate affiliate, etc. For instance, BT, Vodafone, Orange, etc. consider their part to develop significant advantages. In order to work in the new country, they need to adopt merger and acquisition which helps to attain more significant advantages at workplace. However, acquisition also implemented to focus on the innovative characteristics in business. In this regard, profit and revenue will be share at workplace easily.

Task 4

P4. Bowman’s Strategy Clock Model Analysis

In order to implement the Bowman's strategy clock model, Vodafone is able to analyse their competitive position in the market. In addition to this, they can also compare offers of their competitors with different strategies in four quadrants. Hence, value could be added successfully to enter in different areas of the market to deal with the innovations and creativity (Grishunin and Suloeva, 2016). For example, the chosen company need to identify that how they consider their product positioning to make competitive advantages. Main purpose of the business is to consider two elements such as price and perceived value. Following are certain considerations included in the business to determine this strategy:

• Position 1 with Low Price and Low Value Added: It is not a competitive position in the enterprise (Hong, Shen and Xue, 2016). Products differentiated and customer will perceive their value at low price. In this regard, Vodafone bargain with the basement strategy. Hence, there are only competitive with determine cheap as chips.
• Position 2 with Low price: Business positioning in Vodafone consider as low cost leaders in the market. This strategy considers cost minimisation which required successful and associated with economies of scale (Alam and Rubel, 2014). Competition among the business considers low price position which usually intense that involved prices wars. It is the best way to deal with the advantages and ascertain systematic work performances in the chosen business.
• Position 3 with Hybrid: As per the description of name, hybrid position of the chosen business includes elements of the low prices with same product differentiation (Gao, Guo and Guan, 2014). Main aim considers in this way is that consumers persuade good added value with combine reasonable price. It can be very effective positioning strategy which helps to attain successful results with involved offers constantly.
• Position 4 with differentiation: Differentiation strategy is to offer customers with the highest level of perceive value (Kumar, Shankar and Debnath, 2015). Branding of the selected enterprise consider key role in the strategy which helps to consider quality maintaining at workplace. A high quality product with strong brand awareness and loyalty helps to accomplish results in relatively prices and added value activities. Hence, differentiation strategy is needed to develop target market in systematic manner.
• Position 5 with Focused differentiation: In order to implement the above strategy, it can be stated that position of the product determines the highest price levels. Therefore, customers buy the products because of the effective value. This implement positioning strategy that adopted by the luxury brands (Peñas-de Pablo and Salcedo-Sanz, 2015). Main aim is to accomplish and achieve premium price through highly targeted segmentation, promotion by Vodafone. When this strategy done successfully, it helps to lead with the high profit's margin with sustain long-term development activities.
• Position 6 with risk high margin: It is the high-risk positioning strategy which considers arguments eventually. In this consideration, sets higher price without offering anything extra determines as perceive value (Cecere, Corrocher and Battaglia, 2015). If customers continue shopping, they need to focus on the better positioning products that offer at same or lower price. Beside this, in term of short-term risk, high margin has been implemented in the normal competitive market. As a result, it assists to focus on some innovative characteristics and attain more significant advantages in the business as well.
• Position 7 with monopoly margin: Along with this, monopoly in the market consider only one best things that assists to concerned for the value of customers that perceived in the products and services (Hajir, Obeidat and Masa’deh, 2015). There are no alternative options exist so that theory of monopolist tightly regulated to prevent and setting prices according to Vodafone strategy.
• Position 8 with loss market share: In respect to consider this position, it is a disaster for the chosen business to attain desired results in the competitive market (Wang, Tu and Huang, 2014). Setting middle range of standards and low perceive value assists to focus on the uncompetitive aspects of three positions 6,7 and 8. When Vodafone done their operations and functions in the competitive market, they are able to deal with same price and value for the lower consideration.

 

In respect to carry the above strategy, Vodafone need to focus on the taking high margin from their operations and functions in different nations. Furthermore, hybrid strategy also helps to attain more significant outcomes at workplace of another country. This will assist to look for the business analysis and more significant advantages at workplace.

Conclusion

From the above report, it can be stated that business strategy consider important role to make creativity at workplace. In this regard, report is based on the Vodafone which consider operations and functions in the telecommunication industry. With this regard, effectiveness develops to make innovative functions and outcomes in systematic manner. Furthermore, report summarised about PESTLE analysis which helps to focus on the UK market competition to attain more systematic work at workplace. Therefore, it will consider outcomes and results to maintain effectiveness in the enterprise. In addition to this, it considered Bowman clock strategy through effectiveness could be ascertained with attain different position in the environment.

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