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- Discuss about the External influences of organization.
- Discuss about the advantage of improvement in Vodafone
Contemporary development in business is the study of successful organizational change and performance. In this organizations are involved in implementing those strategies that assists them in gaining competitive advantage and help them in achieving their ultimate goals and objectives. Present study will lay emphasis on Vodafone which is a multinational telecommunication company. It has been headquartered in London, England. Company is engaged in doing their business in areas like Asia, Africa, Europe and Oceania. Firm has also been listed in London Stock Exchange. Present report will lay emphasis on the external business environment factors that can impact on company’s strategic position. It will also reflect on corporate social responsibility and sustainability and how it influences policies and decision making of Vodafone. It will also evaluate effectiveness of organizational response. Report will also suggest areas of improvement in response of organization.
Among mobile operator groups globally Vodafone has been ranked 4th. Company is being operating in 25 countries and also have networking partners in 47 other countries. Firm has secondary listing in NASDAQ. Its Vodafone Global Enterprise division provides telecommunications and IT services to corporate clients in 150 countries. Company is highly engaged in providing high quality of network services to its consumers. They have also been listed in London Stock Exchange. Vodafone services would be marketed under the dual-brand scheme, where the Vodafone brand is added at the end of the local brand. Company is engaged in offering integrated communication through cloud computing, unified communications and collaborations. Vodafone is also involved in providing high quality of consumer service that has supported the company in gaining competitive edge. It has also helped them in creating consumer loyalty, which has assisted them in achieving business goals and objectives. Order assignment help from our experts!
External influences of organization
PESTLE Analysis is tool which is used for analyzing and monitoring macro-environment factor which can have profound impact on company's performance. It is very helpful when a company is entering into new market and starting a new business. This can be described below-
Political Factor-Political factor has grown relevance in international business context nowadays. Political environment of nation affects their trade and economic environment up to the huge context. The government's attitude for business and their tax regimes also impact business. Major market of the Vodafone are Asia Pacific and Europe along with Africa and Middle East. Level of the political stability of these regions effects profitability and sales of company. The demand for technology and its services has been growing rapidly, government control level and oversight has also enhanced. Due to this telecom industry has been facing pressure because of raised government control. The EU Roaming Regulations that aims for decreasing charge for the mobile phones uses abroad by 70% and upgrading level of customer rights across Europe, and several decisions that are made by European Union Regulatory Framework for communication sector (Khan and Suhaib, 2019). Any other government interventions by legislation could affect the business operations and revenue of company. Political instability also affects the Vodafone to the great extent, as nation with political instability become war prone areas and thus it will need good infrastructure for networks, had become tiresome activity for company. The recent conflict in Europe had affected company greatly.
Economic Factors-In the international business context economic factor has become core concept. Global and regional economies' performance have direct impact on international technical business's performance. In the recent year, demand of mobile and data service has enhanced rapidly. Hence, each and everything is depended on customer’s demand and its ability for purchasing that product. The economic performance of nation effects these directly. Economies of nations where Vodafone operates its business are performing well, whereas Brexit had created pressure on Vodafone which had affected profitability of company in United Kingdom. Economic factor such as economic activity in particular country as well as employment level greatly affects buying power of individual in country which in turn directly affects profitability and sales of companies like Vodafone (BELLAD and KUBIHAL, 2016). The country with great GDP state that individual had more income and will be prone for adopting the latest technologies for communication. So, companies overall profit will be enhanced and Vodafone can expand globally. The economic crisis had also impacted Vodafone and thus global uncertainty led company to change their strategies and implementing new plans to perform well in marketplace and compete with its rivals effectively.
Social Factors-The importance of socio-cultural factor has been raised in the business context. Most of the big businesses had understood centrality of the socio-cultural factor and how it can affect sale and profit in the particular region. The changing social trend and individual's lifestyle directly affects their purchasing habits. Over the period consumer's consumption preferences and pattern in several regions of world has been changed. The technological firm must identify these changes and as per that they had to update their service mix. Internationally, internet penetration has been grown and thus enterprise and individual both users need fast connection. As large number of individual had spent huge time online for entertainment or work. Thus, growth in the demand for internet based service has been proved beneficial for Vodafone as more and more individual are buying online (Coleman and MacNicol, 2016). The internet role in individual's life has hiked along with social media. For dynamic domain and success company must have flexibility in their policies which are pertained with local culture. Thus, Vodafone is purely European organization but their preference and related policies had been changes as the social factor of country in which company is operating its business activities. Hence, by adopting this company had gained huge success and sustain in market for long term.
Technological Factors-Vodafone is the telecom brand and thus technology plays a major role in their business operations. Organization has grown its number of services in past years that is based on growing demand of enterprises and individual consumers. Thus, growing role of the users experience had forced Vodafone for focusing on technological factor. So, organization is utilizing digital technology for providing higher convenience to its users and grow their engagement. They had also launched my Vodafone app and website which can be used by their consumers for accessing through range of the services which is offered by company. For promotions also they use digital technology. Company is popular for its innovation across the world. The major mission of company is to follow contemporary trend in communication and technological sphere (Cardoso, 2017). Vodafone offers technological products to their consumer which is kept in mind hike company is changing its policies, launching new devices and features in it. Vodafone is technological company and thus company must have to follow the latest technological trend and have inundation in company as per so that they can get huge revenue and sales among marketplace.
Legal Factor-Legal factor affects business widely. Law enforcement and government agencies have enhanced level of control and business oversight across the world. Growing regulatory and legal pressure could make growth difficult for global level businesses. From labour to tax and various business practice into other area along with environment, non-compliance could result into enormous fine. Government agency such as EU has enhanced level for fines which had been levied on violators. Vodafone had to very aware about legal issues such as copy and pirated issues. Vodafone has faced many penalties for its sphere infrastructure. Along with that Vodafone had been accused for not rendering appropriate salaries to their workers as compare to their competitors. Thus people who are working with company had leaved the jobs and joined the rivalry organizations which had enhanced risk of leakage of the innovative ideas of company. So Vodafone must follow some legal binding in their company. They had to abide by legal rules and regulation so that they could enhance consumer attraction and maintain positive image in marketplace which is helpful for company to gain trust of their consumers.
Environment Factor-Sustainability and environment had become essential focus for business nowadays. More and more companies are investing in declining the carbon footprints and making their business process more sustainable. Vodafone is also managing to remove carbon footprints and environmental impacts significantly. Company is highly dynamic in the nature and for maintaining market and expanding its networks they had to be always socially responsible and adopting sustainable business process so that they can gain huge consumer interest towards their company's brand. Thus, consumer loyalty base could be gained by company effectively and sustain in market for long term (Celik, Abdul-Kareem and Yilmaz, 2019). By adopting this they can gain huge success and growth further. Company had also announced to improve one billion of lives and reducing environmental impact by 50% till 2025. They will be gaining this by its three domains that are - digital society, inclusion for all and for planet. Vodafone is also focusing on switching to the renewable source of the energy for the efficient supply. Need example assignments, Talk to our experts!
Corporate Social Responsibility and Sustainability
Corporate social responsibility means how organization is managing their resources so that a positive impact can be created on society. In includes sustainability, social impact and ethics which must be managed correctly. In this company needs to make and effective utilization of resources so that future generation do not face any problem and needs of present generation is also being fulfilled. Organization is involved in combining social and environmental concerns. They make strategic decisions which can help communities as well as impoverished areas throughout the world. Key CSR issues can be involved stakeholder engagement, working conditions employee and community relations.
Relevance of corporate social responsibility and sustainability and its impact on policies and decision making of Vodafone
Figure 2: CHG emissions
(Source: CHG Emissions of Vodafone, 2018)
As Vodafone is one of the prominent tele communication company there first responsibility is to provide consumers with high quality of network services in order to build customers trust and loyalty.
Influence on Policy and decision making
Vodafone is engaged in making policies which are highly based on satisfying consumers. They have created significant amount of customer focus like for example they have taken the lead in areas such as privacy and online data protection. As technology changes with time they are working in collaboration with consumers so that they can provide best possible service. Company has also implemented various strategies in order to improve environmental conditions. Like for example they motivate their employees to save energy throughout their network, offices and stores with a common sense looking at heating, cooling and lighting system. They have implemented strategies to reduce waste by cutting back the use of paper. They are making sure that old network equipment and hand set can be reused and recycled. Also Vodafone is motivating their consumers to be environmental friendly by switching on to paperless bill.
In the opinion of Amoako, (2017) Sustainable business strategy of Vodafone focuses on women empowerment, energy innovation, youth skills and jobs. Company is making sure that they promote equality and diversity in their business. They are trying to lay special emphasis on ethical and transparent behaviour. Company is making sure that they provide consumers with every detail which is necessary for them to know, so that they can build up customer’s trust. Vodafone makes sure that mobile technologies improves the women quality of life with the support of programmes that help them in making financial inclusion, enhance health and wellbeing, build education, skills and entrepreneurship.
As per the view of Ternès and Jeske, (2018) Vodafone is committed to hire diverse workforce, so that it will assist in better reflecting consumer base and wider society. It can also become a source of business for them. They are working towards bringing out more women leader. They are implementing strategies to attract highly talented and skilled women so that they can maintain their employers track. Vodafone is also laying their special emphasis on energy innovation. They are engaged in making a strategy to lower down the usage of CHG emissions and electricity from renewable sources. They have thought to achieve this tactic by the year 2025. Vodafone is also involved in providing job opportunities to young generations in countries who have high number of unemployment rate. They will also provide young generation with digital workplace experience at Vodafone.
Vodafone has also set some of the major sustainable development goals. Like for example they are contributing in providing quality education and making learning opportunities available for all. Like for example in year 2017 about 4190000 people participated in Vodafone Knowledge is Power foundation programme. They have provided 50,000 refugee students with quality education and free data services. Company is working towards promoting gender equality and promoting Women Empowerment. In year 2016 they have added 13.3 million female consumers to use mobile technology (Elden, Cakir and Bakir, 2016). Vodafone is working hard to have sustainable economic growth and better working environment at all levels. For this they have developed a policy related to providing employees with safe and secure working conditions. They are also engaged in building resilient infrastructure that can promote sustainable industrialization, this aspect can assist company in fostering innovation. For this Vodafone has invested approximately £7.3 million so that they can develop their infrastructure and provide better access to their network. Also they are working hard towards taking actions related to climate change. In this they have reduced CHG emissions by 40% by reusing and recycling products and services.
In accordance with Gupta and Nicovich, (2019) Vodafone and Vodafone foundation has promoted mobile technologies in order to enhance primary health care services in emerging markets. Like for example Vodafone Foundation’s Mobilising HIV Identification and Treatment program makes use of mobile technology to make treatment available to those who are in need. Vodafone has also taken initiative to stop violence against women. They have designed number of instruments which can provide help to women and ensure their safety and security in vulnerable domestic circumstances. Company has developed apps like easy rescue smartphone app in which if women are in any danger situation can shake the phone and ask for help. This has can save females and girls from any kind of domestic abuse.
On the other hand, Kleiousis and et.al., (2019) stated that Vodafone foundation has also taken responsibility of providing girls and females with high quality of education in emerging countries. They have invented innovative digital teaching and remote learning activities. This service is also being provided by company to people living in refugee camps. In order to provide with high quality of education instant network school programmes has also been implemented. In this it automatically connects classrooms to network, by giving them solar power tablet and teaching resources with access to resources related to education in remote and isolated areas. Vodafone also have the sustainable goal about becoming the world’s best employer for women by the year 2025. For this they are engaged in promoting equality and diversity at workplace. They make sure that no discrimination on any basis exist in their place. Individuals are paid equal for the same task which is being performed by them. Company is also engaged in arranging various charitable campaigns to help and support people in need. They are reusing and recycling material to make environmental conditions better.
Critical evaluation of effectiveness related to organizations response
Various strategies that has been adopted by Vodafone in order to create sustainability was really effective. Like for example IOT mobile services which has been provided by company has assisted them in making consumer use energy more efficiently and also reduce the emissions which is being produced by them (Kunz, 2018). Digital platform which has been provided by Vodafone has created huge number of jobs for youth and was also effective in developing their skills. It has also become catalyst for sustainable development. Knowledge is power campaign has assisted Vodafone in enhancing learning among pupils which has also built confidence among them. As this program provided teachers with training and coaching their skills and abilities have also been enhanced that has assisted them in providing high quality of learning and education to students that is beneficial for their growth. By IOT technology it has assisted consumers in reducing electricity, gas and other consumption fuels. It has helped them in reducing the emissions(Celik, Abdul-Kareem and Yilmaz, 2019).
Sustainable strategies which is being implemented by Vodafone has helped them in gaining trust of stakeholders. Code of ethical purchasing that has been set up by company has assisted them in building a better relationship with suppliers. They have also set out the expectations to people who are working with them. In this they make sure that no child labour will be involved, no forced labour, fair payment and working hours, no discrimination. These approaches have assisted Vodafone in making working conditions better. This practices have also helped them in enhancing suppliers and employees towards firm. They are more engaged towards them (Niaz and Medina, 2018). Vodafone is also working with integrity which has made them help in enhancing consumer satisfaction. They have zero tolerance for Bribery and corruption in their firm. Company has also taken actions to control climate change. It was effective as this strategy has assisted them in reducing carbon emissions by 40%. They also protect and give respect to human rights that has helped them in developing organizational culture. Vodafone has also made use of emerging energy efficiency that helped them in enhancing energy. It has also assisted them in effective utilization of resources. Company has also worked with suppliers while developing 5G networks equipment, which was effective as they have ensured that material match the standards on energy efficiency. They have ensured that less carbon footprints are being developed (Khan and Suhaib, 2019). These strategies which has been taken by company has assisted them in gaining trust from consumers and also employees have been loyal to firm. It has helped organization in growing and gaining competitive advantage. Ask for marketing assignment help from our experts!
Areas of improvement in the response of Vodafone
There are various areas of improvement which Vodafone must take into consideration. Like for example company has lack of environment management system. They also have inefficient control over disposal of hazardous materials(Mosca and Civera, 2017). So policies must be prepared by organization in order to implement sustainable effect. Also Vodafone should be engaged in taking environmental permit so that they can perform certain type of activities. Ethical Policy of firm must need to be revised. Also company can enhance policy related to corruption and discrimination. In order to retain more female employees in company and implement gender equality, Vodafone needs tie be engaged in implementing maternity Policy. In this they must make sure that maternity leave and full pay for 30 weeks is been given to women employees (Elden, Cakir and Bakir, 2016). This can assist them in retaining skilled and talented women employees in their company. It will also help them in attracting more females to their firm. By this they can become first employer to develop most skilled women. They need to lay emphasis on more environment management programmes. They must be engaged in implementing strategies which enables their employees to also reduce their own carbon foot prints. In order to save energy Vodafone is suggested to make use of free air cooling systems which can help them in saving lots of cost and energy.
From the above study, it has been summarized that Vodafone has been engaged in making sustainable changes in their business. They have been involved in promoting equality and diversity in their work place. Company has provided women with adequate resources so that they can grow and become a better leader. Firm has also made their investment in energy innovation in which they have taken significant action to combat climate change. They have also developed their infrastructure to provide consumers with high access to network. Company has also been transparent and ethical while dealing with employees and customers. This has assisted them in building up consumers trust. By this they have also created consumer loyalty. It has helped them in gaining competitive advantage which is essential for organizations growth. Organization has also reduced carbon emission by 40% through recycling and re-using materials. They have also motivated consumers to shift towards paperless bills. Company has also implemented various policies related to human trafficking and labor law. They have made sure that firm is not been engaged in violating human rights. They also ensure that no individual in firm has been engaged in taking Bribery. Firm has also been engaged in promoting equality and diversity at the place.
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