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    SIM337 Contemporary Developments in Business and Management

    University: University of Sunderland

    • Unit No: 3
    • Level: High school
    • Pages: 15 / Words 3695
    • Paper Type: Assignment
    • Course Code: SIM337
    • Downloads: 372
    Question :

    This assessment will cover following questions:

    • Evaluate the different frameworks within which organisational decisions are made.
    • Vodafone is the leading technology communication company. ¬†Evaluate how organizations might respond to external global forces.
    • Analyse a wide range of theoretical concepts and apply them to practical business problems or issues.
    • Assess the factors that affecting business performance of the Vodafone company in international market.
    Answer :


    Telecommunication is a way in which through transmissions signs, words, writings, images, signals and sounds are sent so that communication within people can be maintained. This process can be completed when there is a technology participating in it. Telecommunication comes from a Latin word known as communicatio which was a social information exchange and telecommunication is plural form of this which involves a lot of technological use.

    Vodafone is a British multinational company which has its headquarters in London. This firm was founded in 1991 and is a public limited company. As of 2019 establishment is going into loss because of competition which business is making for themselves and it can be improved if organization knows what drawbacks of Vodafone are. The report is going to cover external factors which influence growth of organization and corporate social responsibility and sustainability in market of company. These factors help establishment to know themselves better for better improvement and growth of business.

    TASK 1

    Primary External Influences


    It is very important to understand external factors which are influencing growth of firm so that they can make their strategies accordingly.

    Political Factors

    • Company is having an advantage because government is supporting international companies to invest, in which Vodafone is considering. Therefore, profit rates of firm is stable. Organization has expanded itself in Africa, Middle East, Europe and Asia Pacific (Greasley, 2017).
    • Political governments of all countries around world have increased their taxes which is making company demotivated for making a lot of profit like they used too before. Government is also making a lot of laws for benefit of employees but that is creating a negative impact.

    Economic Factors

    • Vodafone is paying wages in country to employees low because of high rates of unemployment. There are a lot of people who willingly want to work in Vodafone because they just want jobs and increase there income and have an improved lifestyle which is making firm have a better profit economically (Harmon, 2019).
    • Company will have to spend a lot to make 5 G come in a lot of countries and to get an advantage Vodafone wants to be first one. Firm is investing in the latest technologies as well which is coming in market.

    Social Factors

    • Society is getting technology amiable and it is very important for firm to target right customers in organization. Organization is targeting lower and upper class so that they do not have to face any troubles in getting more customers in business. There are a lot of offers and discounts which is being served by company.
    • Vodafone is providing customers with right services but competition is such in market that business is not being able to grow since Vodafone is not being able to provide with right measures. Culture of countries have to be considered by company while promoting brand.

    Technological Factors

    • Experience in this industry does count and Vodafone know that there is a need of innovation and creativity which can bring back there customers in firm. Technology will give company a great advantage in market that competitors will not be able to make a place like Vodafone in market.
    • It is because competitors have found a new technology in market therefore Vodafone could not maintain their customers loyalty in establishment. Technology is one factor which is keeping company what it is today but if they do not get new technologies all time then they will not be able to capture market like they did long back (Zavadskas and et.al., 2016).

    Legal Factors

    • Vodafone is one of those establishments in market which makes sure that they are being fair to all customers and employees of organization. There are health safety measures as well which is making company have right employees working in business.
    • Wage's law for employees is going to make company have a tough time and firm will not be able to make as much as profit as possible. Organization is trying to follow all measures and laws which countries have all around world because strategies of business will be according to that factor and it is very important for firm to follow those so that they can make establishment work in one direction.

    Environmental Factors

    • Vodafone is still trying to reduce there carbon footprints in world so that they can become eco-friendly company which will have a better future in market. Business is following laws and regulations which government is put on market for environment betterment because of globalization which is taking place. Establishment is controlling that factor so that they can make government successful in mission they have.
    • 5 G plan of Vodafone is a very radio active plan and can be very dangerous for human kind therefore company is still trying to make that factor an improved before they launch it in countries. It is very important for firm to be giving customers safety measures as well therefore testing and improving product is always better.

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    Porter's 5 Forces

    Porter's 5 forces are given by Michael Porter in 1980 and this analysis deals with competitive advantage in market. This will help company know there strengths and weakness accordingly they will be able to take measures to improve establishment which is a very important factor to get a competitive advantage.

    Bargaining Power of Consumers

    Bargaining power of customers in firm is very high and Vodafone has to appreciate that factor so that they can improve accordingly so that they can attract more customers. There are a lot of offers and discounts which organization is giving to customers and this is because of competition which is growing in market in this industry. Customers are not loyal to business because customers will shift from one company to other when they get a better offer or discount on products and services provided to them. Switch from one business to another business is also low therefore customers do not find it difficult from shifting from one firm to other firm (Renwick and et.al., 2016). Customers can easily be shifted from one company to other because of offers and discounts other companies are providing to customers. Custom-made always want the best service at lowest price so that they can make most. Vodafone is investing so much therefore it is very important for company to increase rates of customers in company because it is visible that from past few years customers in company have reduced. To get that power of customers again business will have to come up with different measures and strategies so that they can get customers back by providing services at a very low rate so that customers can get loyal with company again.

    Bargaining Power of Suppliers

    Bargaining power of suppliers is medium in firm because business has a lot of suppliers who are providing raw material in company. Vodafone is leading organization in United Kingdom and will have a lot of substitutes in market but there is no one who will want to leave supplying to such a company for a long run (Wu, Song and Shen, 2017). Prices of suppliers can be bargained by organization and not by suppliers of business because business has full control on suppliers. Having a lot of experience in industry Vodafone will know how to deal with supplier and if any supplier is asking for more price than firm can shift to other supplier. Company must combine with Nokia, Samsung, Apple, etc companies so that they can promote themselves in market better and that will help Vodafone to have a better standards for themselves.

    Threat to New Entrants

    Entrants in this industry is low because there are a lot of barriers which an organization has in market which will not be supporting for other companies. There are huge licence fees which a new entrant will have to pay if they want to get inside market and that not all companies can afford. Changes in technology is also very rapid therefore it is impossible for any other organization to come in competition of Vodafone (Ruff, 2015). Building an infrastructure is also very expensive and not all entrants will be able to deal with those on time and build that up for betterment of firm. And before starting a new entrant there is a high investment which is required therefore it is not a work in which other companies others want to invest. There are a lot of issues which company has regarding regulatory issues in market and internal factors of company and it is very important to solve all issues in market.

    Threat to Substitutes

    There is a high level of threat of substitute in industry therefore Vodafone has to be even more careful with services they are providing to customers so that customers do not shift from one firm to other (Budhwar and et.al., 2017). Uses of landlines are reducing with time so Vodafone must not invest in this section much and business should invest in videoconferencing and other network sites which are being used by customers so that organization can have a competitive advantage in market and other substitute can not become a problem for firm. Other competitors are shifting from 4 G to 5 G very soon therefore Vodafone will also have to improve themselves so that they can make a competitive advantage in market. Competition in this industry is tough therefore it is very important for business to provide right services and speed of internet. Companies are providing customers with a good speed in firm so that customers can feel satisfied with establishment.

    Industry Rivalry

    Rivalry in market is high and Vodafone is trying to make a place for themselves in market after all competitions have come in market. There are a lot of competition which gas come in market but company has a lot of experience therefore it is very easy for company to have a standard for themselves. Business is doing very well in market even after so many competitions have come up and there are more chances for company to get more products and services for customers so that company can get a lot of advantage for themselves. Vodafone is promoting themselves time to time so that they can have a better stand for themselves in market. This industry has an open market for competitors in market therefore Vodafone is always working for getting competitive advantage in market. Vodafone is a little discriminating except price of company (Zancul and et.al., 2016).

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    TASK 2

    i. Influential Policies and Decision-Making Within Organization

    There many communication mix in marketing and those are public relations, sales promotions, advertising, personal selling and direct marketing. These are factors which is used by Vodafone to reach out to customers is that they can gain trust of customers. It is very important for company to have a trust relationship with customers so that customers remain loyal to company. There is a lot of competition in market therefore need of strategies and methods to get a larger base in market is very important (Higgs and Dulewicz, 2016). Sales promotions have to done by Vodafone because company is having lose in market because they are not being able to make most since competition is increasing and there are a lot of customers who are leaving company. Direct marketing is also being done by Vodafone because customers should be in direct contact with company so that if any changes or feed backs they have for company can directly reach company and no third party is involved. Company understanding market better so that decisions of company can be made accordingly. It is very important to keep market in right direction so that company can have a standard for themselves in market and that is a very important factor for company. Targeting right customers for company is very important and Vodafone is not being able to do that therefore company is not being able remain stable in market and that is a very important factor for company. Vodafone is getting in a lot of customers because of the advertisement the company is doing for themselves and that is by getting a lot of new ideas from outside and hiring new employees who are helping the company in a lot of ways possible. This time the company is having clear goals and objectives for the organization to make a better understanding for themselves.

    Business has to make decisions for benefit of customers and getting more customers in company and that is a very important task for company as of now because there is a lot of competition in market and company will have to make decisions according to competition in market so that company can have a competitive advantage. Firm will have to use the right methods to advertise the organization without hurting any culture or human sentiments and that will be the best for the company. There have to be public relations which the company has to maintain so that they can achieve the aims and goals they have for life which will help them to grow further (Davidsson, 2016). The company has started sending mails, messages, etc so that they can make the customers more aware of the products and services which the company is providing to the customers. This will help the company to make the customers stay in the company for long and the retention of the customers will reduce which will help the company to have a better understanding for themselves. The company will have to make a lot of changes if the company want to remain in the market for a long run and there are a lot of changes which the company can make for the betterment of the company.

    ii. Evaluate Effectiveness of Organization’s Response

    Vodafone is very good at taking decisions for the company's benefit because they know what is right and what is wrong for the company. This sense of making decisions for the company comes with experience and there is a lot of experience which the company has therefore the company is being able to make the best decisions for themselves. Vodafone had taken a lot of decisions recently and those need to be changed for the benefit of the customers and that is a very important factor (Weichhart and et.al., 2016). The customers are having a positive impact on the company and that is a very good benefit for the company because there is a lot of factors the company is working on in the present time. Vodafone is working really hard for making the company have a positive impact so that the company will be having a competitive advantage in the market because there are a lot of competitors which are coming up in the market and Vodafone has lost a lot of customers. The company is not making a profit in the 2019 because of the loss the company had to face because of the competition which is coming up in the market. Vodafone got its maximum income from India but in India the competition has increased and the company did not have profit instead they lost a lot of customers because of this factor which is very bad for the company. It is because of lose that the company has not been able to stay efficient in the market from a long run and the company must try to make themselves better so that the company will be able to come up in the market again.

    All the other networks all around the world are ready to launch 5 G network speed for the customers which is a very good sign but Vodafone is still not prepared which can made the company face more lose in the future. Investment is a lot when it comes to 5 G plans for the company but it is a necessary change which has to be made by the organization so that the company will be able to make a benefit out of it. The advertisements the company came up with were not so good as well but now the company can try to make that factor work and improve on it so that there is a better understanding of the factors which are influencing the organization. It is very important for the businesses to know about their own company the most and Vodafone knows what measures they have to take so that they can get the customers back in the company and that is a very important factor (Kauppila, Härkönen and Väyrynen, 2015). The company is been having a lot of competition therefore it is very important for Vodafone to use the right measures and strategies now otherwise the company will have to close very soon in a lot of countries. The employees of the company are getting trained as well so that the services the company is providing are right and the company will be able to make a lot of profit and will be able to get the customers back in the company.

    iii. Demonstrate Some Areas for Improvement in Response

    The company will have to use different methods for attracting more customers in the company that is they will have to get the right people in the company who are loyal to the company. There have to be more offers which have to be added in the organization so that the company will be able to get more customers. It is because of the competition in the market that the customers are shifting from one company to the other (Chang, 2016). To enter this market the other companies have to invest a lot and after investing the investors have to start by giving free services in the beginning so that the customers start to take the company and shift to the new company. The customers can shift easily from one to another therefore the companies in the market must keep changing their services and methods to make sure that they are providing the customers with the best of services. Vodafone has had a change in the offers a lot of times and till date they keep changing according to the competition in the market. The promotions have to include campaigns and other methods to make the people or customers aware that they are coming up with different strategies for the benefit of the customers. It is the lack of communication between the company and the customers are shifting from one company to the other. Vodafone is making use of the latest technologies and making a lot of employees work for them so that the company can take out more innovative and creative ideas for the company to function and that is a very important factor so that the company will be able to grow.

    The company is trying to improve in a lot of fields so that the company can make a place for themselves in the market again like they had before (Derous and De Fruyt, 2016). The company has set a lot of standards for themselves and it is very important for the company to maintain those standards so that they can develop themselves which is going to be very beneficial for the organization. Vodafone has to have a lot of new employees in the company so that there are some new thoughts which are coming in the company so that the organization will be able to grow themselves more and that will be very beneficial for the firm. The company will have to start planning for investing in 5 G planning so that the company does not have another pressure on them in the future and that will make the company have a lot of lose. The competitors are already having a lot of advantage in the company and this will just make the company have another factor which they will have to improve for the benefit of the organization.


    It is very important for Vodafone to get back to the standards they had set for themselves in the market and that is a very important factor for them. There are a lot of competitions which are coming in the industry and the company will have to try there best that they do not lose customers because of that factor. There are a lot of changes which are taking place in the company because of the competitions which are coming in the company and that will help the company to make a place for themselves again. Vodafone is having a lot of positive impact of the external factors of the organization and the company can make a lot of profit but it is because of the competition that the company is not being able to make a place for themselves in the market. The experience of the company is a lot and the company is putting there thoughts together so that they can beat the competitors in the market so that Vodafone can become the leading company in the market.


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