The scenario of this report determines growth of mobile telecommunication sector of UK in this regard it is required for Virgin Telecommunication to implement new strategic directions so that firm can attain desired competitive advantages.
- Evaluate the impact of external environmental factors over the business strategies and decision making.
- Identify organizational capabilities and internal environmental analysis of Virgin Telecommunication.
- Determine the analysis over the telecommunication sector of UK by considering Porter’s five force model.
- Evaluate available strategic direction for Virgin Telecommunication.
A firm need to evaluate and understand the basic concern of market properly so that beneficial attribute could be drawn (Ackermann and Audretsch, 2013). A firm need to craft their strategies better as per the working options so that effectiveness and efficiency in working could be maintain and manage. Business strategy is a concept which define about importance of framework to a firm as well as kind of methods which a firm suppose to gain. Thus, every business organisation have to frame such framework which facilitate and enable them in order to compete at define market world. This project is based on Virgin Telecommunication whom are one of a largest telecom service providers not only in UK but also in other parts of the world as well. Thus, for gaining competitive edge rather than others business need to craft their strategies properly so that effective and efficient gains could be drawn. For this consideration, external environment analysis will going to get done so that effective gain could be estimated. Along with this internal environment abilities will also disseminate properly with suitable porter five forces analysis.
P1 Impact and influence of macro environment on define business and its strategies
Business environment one of a major function is dynamic nature which clearly shown that things get changed with every course of moment. A macro environment is one where business operations used to take place at vast level (Alsoboa and Aldehayyat, 2013). A firm need to determine about the macro aspects properly so that strategies used to craft in a signified manner. Thus, a firm need to understand impact of macro environment on an association working and performance so that effectiveness and efficiency could be promoted in business working and attribute. Virgin Group have to organise PESTEL and Ansoff Matrix Vector so that better and determined work could be done:
Political: One of a major thing which need to understand by management of a company is political attribute. A business need to recognise about political stability and instability properly when they used to operate in any new country or need to craft strategies again in define region. Virgin group have to evaluate the government stability in UK better so that they used to maintain their position properly. An unstable government influence negative attribute towards business which harm overall working efficiency.
Economical: Another thing which have to better understand by business is to determine economical condition of a country. There is a need to determine the rate of inflation and depression in better frame so that effectiveness and efficiency could be promoted and encourage (Bentley, Omer and Sharp, 2013). Virgin group have to evaluate the economical condition of UK better so that they could maintain and manage their operations. In case on inflation chances of gaining inappropriate gain tend to rise high. This aspect required to understand so that goods and services of Virgin Telecom could deliver on appropriate rate and standard.
Social: Local culture, beliefs and values are a core part of business which need to understand by authority so that beneficial attribute could be drawn (Cadle, Paul and Turner, 2010). For a successful venture, there is a need to determine social interference properly through which effective and beneficial gains could be drawn. Virgin Telecom have to work properly like they need to establish network t