- Vodafone Company
- Introduction
- Vodafone is one of the leading providers of telecommunication services in UK. The company has been doing well in the UK market having approximately 19.2 million subscribers. The company operates around 365 stores that sell mobile handset. The management of the company has committed effort towards ensuring that the company continues to acquire a large proportion of the market share. In relation to this the management has launched schemes such as the Rewardz aimed at ensuring that each time pay as you go customer tops up balance is given a chance to win an instance reward. The company therefore serves as one the best example that can be used to show the importance of environment analysis. This report therefore illustrates the importance of scanning, evaluating, monitoring and disseminating and forecasting of the environmental factors that affect the business. In this case the report first analysis the influence of these environmental factors on the business. The report also analyses the one of the product from the company in relation to theory of demand and supply.
- Part 1
- Identify the widely-recognised sources of influence which impact on the 21st century business and apply them to a business of your choice with supporting evaluation
- Business environment has a direct relationship with an organization. This is because the success and the failure of a business are determined by the effectiveness of the how it interacts with its environment. The business environment is also dynamic since they constantly change. In addition different environmental factors affect different firms different. In relation to this one business may welcome a certain environmental change while other business may feel the adverse effects of these changes. In this case the following are some of the environmental factors that affect Vodafone Mobile Phone Company
- Analysis of external sources that influence the impact company using the PESTLE
- Political
- The political environment in any country influences the business in various ways. This is in relation to the political organization, philosophy, government ideology, and country political stability (Henry, 2008, p.51). The government foreign policies, and the image of the leaders internationally also influences the business in various ways. In addition, the country legal system creates the rules and various frameworks that a business operates. The various government policies may also support and encourage the growth of a business; however other policies may limit the growth of a business. It is important to note that the government policies available in UK have helped to promote the growth and development of Vodafone in the country. The political stability in UK has also promoted the growth and development of the company.
- Economic
- Analysis of the economic environment also plays an important role in ensuring that business achieves their target. These economic factors include factors such as the country economic systems, its structures, economic policies, how the capital market is organized among other factors (Henry, 2008, p.54). In order for an organization to be successful the management must ensure that they effectively analyze the economic factors and anticipates the prospective market situations. In this case the management of Vodafone needs also to analyze the levels of inflation in the country before determining the final price of their products. This can help in ensuring that the company is able to minimize their cost and therefore maximize on the profit
- Social
- The social factors also impact the business in several ways. In relation to this the management of the Vodafone must first ensure that they study the various changes in the growth rate and the age profile. This can therefore help to ensure that they device the most effective ways of addressing these change. The shift in the attitude of the people on what is likely to happen may also impact the management of the Vodafone. This is because the business may be forced to adopt new measure in order to prepare for such changes. The various job trends may also impact the Vodafone in several. This is because the management must ensure that their employment policies adhere to the current market trend.
- Technology
- The technological factors also play an important role in determining the success of a business. This implies that the management must ensure that they monitor and implement the various technological changes to ensure that the business is able to continue making profit. In this case there have been various changes in the technology in the mobile phone industry, which has in turn led to the invention of new mobile phones with advanced feature. Analysis of the current trends in the technology can help the management of Vodafone to come up with products that meet the market demands.
- Legal
- Legal factors refer to the various laws, regulations and legislation that may in turn affect the business. Various changes in the current legislations and laws may impact the business in several ways. For instance the change in the employment laws may affect the performance of the business. This is because the business may be forced to comply with the new laws. In addition changes in the taxation regulation may also have an impact on the management of Vodafone. This is because the management must ensure that the implement the necessary strategies to ensure that the business continues making profit.
- Environmental
- The environmental factors refer to the various ecological factors that will affect the demand for the company products and how the business operates (Murray-Webster & Williams, 2010, p.88). In relation to this the management of the company must ensure that they comply with the various environmental regulations. For instance the management of Vodafone was forced to establish a handset-recycling program that aimed at encouraging the customers to dispose their handset well first.
- Part2
- Select a product or service that is offered by the business selected in part 1 and explain and illustrate the theory of supply and demand as it applies to the business product or service and include and identify the extent to which the selection is price elastic
- The Vodafone offers provides various products and services to its consumers ranging from handset such, the smart phones, voice messaging services, among. One the brand of the smart phone can be used to illustrate the theory of demand and supply.
- Theory of demand and supply
- Supply refers to the quantity of the product that the producers are willing to able to make available in the market at a given price in a given period (Baumol, & Blinder, 2011, p.66). On the other hand demand refer to the quantity of a given product that the consumers will be willing to buy and able to buy at a given price. The law governing the supply of the product states that as the price of the commodity rises the producers usually expand their supply on to the market. This law is governed by the fact that when the prices of the product increase the producers normally become more willing to increase their supply in the market. In addition when the production cost increase the suppliers are forced have to raise their price to compensate for the high prices. A new errant in the market may also cause the other business to lower their supplies. According to the law governing the demand supply states that as the supply increase the price will tend to increase and as the demand increases the price will tend to increase and vice versa. When the demand and supply are in balance the economy of the country is termed is said to be equilibrium.
- Analysis of the demand and supply of the smart phones sales by Vodafone
- When the demand of the smart phones increase and the supply remain unchanged there is a higher equilibrium price (Fisher, 2007, p.13). In this case the prices of the smart phone increases since there are more consumers will be willing to purchase the smart phones. This implies that the company may be earning a lot of profit in such a situation. In the case where there is a decrease in the demand and the supply remains unchanged there occurs surplus of the product in the market leading to lowering in the equilibrium prices. In this case therefore the company is unable to realize an increase in profit.
- In the case where the demand of the smart phone remains constant and the supply of the smart phone from other provides also increase such as the Apple increases, the equilibrium prices of the phone reduces. In such case there is a decrease in the equilibrium prices and therefore the company is unable to realize any increase. In the situations where the demand of the smart phones remains constant while the supply of the smart phone decrease the equilibrium price increases. This therefore implies that in such a situation the management of the company is able to realize an increase in their profit.
- Stakeholder’s theory
- This is a theory of organizational management and the business ethics that helps to address the various moral value of an organization. The basic idea in the stakeholders’ theory is how an organization should be and how it should be conceptualized. In relation to this the organization itself should be thought of as a grouping of the stakeholders and therefore the purpose of the organization being to manage the interest of the shareholders. Donald and Preston broadly divided the stakeholder’s theory into three concepts (Banerjee, 2007, p.26). The first concept is the descriptive. In this case the theory describes that the organization constitutes a large group of people with different interests and demands. This therefore implies that the management must ensure that they cater for each and every need of the stakeholder in the organization. Second concept in the stakeholder’s theory is the concept of being instrumental. In relation to this the management of the management must ensure that the organization makes profit and earns revenue. The third concept in the stakeholder’s theory is the normative nature in that it recognizes that groups other than the shareholders, employee, suppliers, and customers are also legitimate stakeholders in an organization. In addition, the normative concept of the theory promote the idea that the vision and the ideas of the managers should be mainly be interested in ensuring that an organization is able to responds to the needs of the shareholders.
- Moreover according to this concept of the normative the management must ensure that they the decision they make adhere to the principles of ethics. This therefore implies that the management must ensure that they value the impact of the any decision they are about to make. This can in turn help to ensure that all the decision made follow the principles of ethics. In relation to this, a firm should ensure that they do not ignore any claim from the stakeholders. The application of this theory therefore helps to ensure that the firm is not merely making profit but also involved in responding to the interest of shareholders.
- Conclusion
- From the above it is evident that careful analysis, monitoring, evaluation of the environmental factors can help to ensure that the Vodafone is able to continue making profit. The analysis of the environmental factors is important since it help to ensure that the management is able to respond appropriately depending of their on their influence. In this case the management of the company needs to respond to the changes in technology and ensure that they incorporate these changes in the products and services. The management must also ensure that they respond appropriately to the changes in social factors such changes in the people attitude towards a certain product. This can help to ensure that the organization continues making profit. Moreover, it is also important for the management of the organization to ensure that the carry out a detailed study of the demand and supply of the various product in the mobile industry. This can help to ensure that the organization is prepared for the various changes in the demand and supply. Another important point to note is that application of the stakeholders theory can help to ensure that the organization continue to meet the needs of all the stakeholders.
2023 Words 7 Pages
