Vodafone as a Leader in Mobile Communications - Dissertation Example

 Leading the Market with Technology: Vodafone as a Leader in Mobile Communications 1. 0. Introduction The capability for a corporation to function within the current market is also related specifically to their structure, relationship to stakeholders and ability to offer flexible changes within the market. A company that is showing strength within the current market is Vodafone, a mobile phone and broadband company located within the UK. This corporation is able to offer several plans for those that are interested in cell phones and speaking with mobile devices. They also provide email and wireless communication throughout the UK. Within this network, Vodafone also provides cell phones and accessories that can be used to assist those with extra needs for their mobile phone. The information on Vodafone will be found through the company website, news on the corporation and comparisons to other mobile companies located throughout the UK. This will be combined with an overall analysis of the corporation and how it is able to maintain and grow the current market with the products and services offered. The terms of reference used will be based on the company website as well as analysis that are intertwined with the overview of the company. There will also be terms of reference that are incorporated with the overall global economy and the policies that are included in the UK. Through this research report, the ability to define the key functions of Vodafone, as well as its continuous success, will be analyzed. 1. 1 Mission, Values and Objectives Vodafone began in 1985 with a focus on providing cutting edge technology and innovation for mobile and remote calling. When it began, it was focused on the concept of mobile phones, which was new to the market. Since this time frame, the company has expanded into over 27 countries with a combined set of partner networks. The mission of the corporation is to provide a leading opportunity for those that are interested in mobile connections. The mission and vision also includes the ability to keep businesses and individuals connected through leading technologies that are related to mobile calling, wireless hubs and Internet connections. The values and objectives that are linked to Vodafone are built on the innovations and connections intertwined with the cell phone service. Vodafone prides itself on offering an investment to build networks throughout the UK and in partnering countries. The amount of investment in technology that is used in different regions will offer more reliability, consistency and value for customers. The investments of the corporation are combined with providing value for the money. Vodafone is well known for offering customers mobile services for competitive and lower prices from the competitors. More importantly, there are flexible options that are included so customers can receive more value for the money they are spending on the services. The last value and objective is based on high customer service. The responses from technicians and customer support are built through a strong level of training to assist with the overall reputation of Vodafone (Vodafone, http://online.vodafone.co.uk/ , 2010). 1. 2 Objectives of Stakeholders The stakeholders that are involved with Vodafone are influential in the outcome of Vodafone because of the main policies of the corporation. Since there is a need to continuously invest in the company, Vodafone has created a strong area for stakeholder influences and management. There is a separate organisation and stakeholder structure that is used, specifically to assist with the growth and maintenance of Vodafone. The main structure is first divided by the regional location of each of the stakeholders. There is then a division between major stakeholders, also referred to as ADS, which hold 11.7% of the shares. Ordinary shares of the company are also available, which includes an investment average of 3%. While there is the ability for stakeholders to invest in the company, Vodafone has provided regulations in the structure in which stakeholders can’t be a part of foreign entities. There are also set controls that don’t allow the stakeholders to influence the corporation other than through the main investments that are made (Vodafone Shareholders, http://online.vodafone.co.uk/, 2010). The main influences and management for the shareholders is followed by the organisational policies that are a part of the corporation. The division between ordinary and ADS shareholders includes specific communication alternatives available for reports and investments. The policies that follow this are divided by the services that are available, including managing the holdings and using specific plans for those that are interested in different types of shares. Each of the shareholder groups are divided by the bank and investment area that they are able to use, specifically which relate to the stock market and specialized banking options. The policies that follow are then related to communication and organization of the company so stakeholders understand the movement of the organization. Yearly reports, continuous updates and communication procedures are used to ensure that there is consistency and stability among stakeholder investments (Vodafone Relations, http://online.vodafone.co.uk/, 2010). 1. 3 Responsibilities and Strategies of the Organization The responsibilities and strategies of Vodafone are linked to the communication needs that are currently available on a global level, all which make a difference in the outcome of the corporation. The organization states that the products and services that are delivered are built to create a sustainable future in the area of communications. Specifically, there is a focus on economic and social development, as well as environmental responsibilities that are related to the mobile devices. The main focus that the organization is using at this level is to provide mobile phones and services with a focus on sustainable development. This is related to offering investments in various regions of the world, specifically to build broadband and wireless access. As this is done, it also creates commercial development that stakeholders can use to see a specific response to their investments. The approach that is used is to combine philanthropic ventures with profits that are used within the corporation, known as sustainability management. The corporation will engage with stakeholders to define investments in various regions of the world and to note responsibilities for these initiations. After this, Vodafone is able to increase the amount of communication within the internal organization while working toward innovation and implementation of new wireless and mobile systems in various regions of the globe. The overall goal is to work toward accessible communications and technology within target regions (Vodafone Responsibility, http://www.vodafone.com/ 2010). 2.0 Economic Systems The use of resources that are a part of Vodafone are able to provide new levels of sustainability to the corporation. The main system that is used within the internal structure of Vodafone is referred to as service level management. The economic turn and the customer responses take place within one main system that is connected to a database. Reporting systems, management control and data warehouses are then integrated into this one system to provide identity guidelines. The main management that is used with Vodafone then leads to the several branches of products and services that are maintained by the corporation as well as information that can be used for stakeholders and customers. The overall management of this economic system is able to provide a strong basis that connects the several facets of the company together (SAS, http://www.sas.com/success/vodafone.html, 2010). The economic system that is used within Vodafone can also be compared to other companies and the main implementation that is required for their corporations. Those that are looking at economic systems are not only interested in the growth within the corporation, but are also altering their system according to the movement toward globalization. A popular approach to the economic system is to divide the regional aspects of the corporation, as well as the areas where growth and exchange rates differ for the company. The division and branches that are used are then able to track and monitor different economic effects and the impact that the corporation is making in a specific region (Fischer, 3, 2001). Vodafone has a hybrid structure compared to this one, which is based on the ability to have different regions that are directed by CEOs and managers as well as stakeholders. However, each of these regions moves back into one central system to help define the main growth taking place within the corporation. The economic systems that are available also include the expectations that are from the UK government. The economic sustainability that is focused on within the government is based on a combination of sustaining a community, remaining competitive among other corporations and growing with levels of employment and opportunity. For the economy to continue to flourish within the UK, the government places specific policies and rules that are able to provide insight to corporations to assist with the sustainability and growth within the economy. The main policies that come from the government are based on innovation to provide a more competitive market and to build new ways for corporations to grow. The economic system that is defined is one that is based on investments within a company that will lead to new models within businesses, all which are able to provide a sense of economic growth. The basis of this is to look at the productivity that is taking place as well as the relationship that this holds to both employment and consumer demand (Edquist, McKelvey, 12, 2000). Vodafone’s focus on growing through investment, providing sustainability in different regions and assisting with various areas of the globe have all led to innovation, consumer demand and higher employment. In this sense, the economic system that is used based on sustainable development is one that fits with the policies of the government and the expectations for growth within the economy. The concepts that are used for the economic system can then be defined through the synthesis theory that is within Vodafone, as well as what is supported within the economy. The approach of synthesis theory is one that combines stakeholders, economics, ethical considerations and overall implementation of various plans for the corporation. Integrating these different frameworks is able to create a different alternative for the company to progress, while allowing for management of stakeholders and the overall corporation (Jones, 404, 1995). Vodafone is able to match this theory specifically by creating a relationship to the investments with the sustainable growth that is within the corporation. The investment immediately moves into different regions of the globe that require different levels of technology and communication. As these are implemented, it is able to combine the corporate responsibilities of social needs with the growth of the business, as well as the return in investment for stakeholders. Over time, the investments that are made provide several dimensions of return for the company. 2.1 Social Welfare and Industrial Policies The main structure that is used with Vodafone is one that is also conducive to the social welfare and industrial policies that are within the UK. Currently, there is a reconstruction of the economy into new terms that are used for employment and sustainability of businesses. Changes that are occurring on social and economic levels are based on creating responses to those in welfare states while providing sustainable growth that is conducive for the entire community. The policies that are implemented from industrial concepts are based on taking out the monopoly of large corporations and instead providing structures that are conducive to the entire community. Policy mixes include wage moderation, employment friendly terms and the ability to overcome social exclusion (Giddens, 115, 2001). Vodafone is able to provide social welfare responses through the same policies that are based on sustainable development within the community and the mission and vision of the company. Doing this opens several possibilities for innovation while allowing the internal structure to naturally grow within the community. 2.2 Macroeconomic Policy Measures The macroeconomic policies that are currently a part of the UK are also able to affect the stakeholders and those that are interested in the business venture of Vodafone. The main focus in the economy is to provide sustainability within businesses as well as within the global society. The shift to global networks is one that is based on interlinking various groups and regions so there is sustainability as well as open responses to different regions. Policies are focused on providing equal opportunity to different regions as well as incorporating different measures to ensure that economic balance is in each region. The policies also incorporate management with the environment, culture and social capabilities within different areas (Elson, Cagatay, 1347, 2000). For Vodafone, this is done specifically by working on different regions and incorporating one specific sustainable effort. By having a synthesis of sustainability from the organizational foundation and dividing it by regional needs, there is the ability to provide more opportunity for macroeconomic development. More importantly, this provides equality in the regions for both customers and employees. For stakeholders, this offers more opportunity within the corporation for investment and noticed interchanges of growth. 3.0 Market Structures and Perfect Competition The market structure that is used, as well as the perfect competition creates a difference in how Vodafone is able to function. It is known that the amount of productivity that is available by a business changes the competition and the market structure. In turn, this affects the level of profit margins and the growth within a corporation. However, the market structure is not able to provide a sense of sustainability, specifically because of the trade reforms and productivity growth that is a part of the corporation. As the corporation continues to use innovation for communication devices and as they build a stronger network in different regions, it changes the competition that is available. For mobile connections in the UK, this makes a large difference because of the continuous innovations and growth of technology that is available (Harrison, 53, 2002). For Vodafone, the market structure is dependent on growth, opening of areas around the globe and trade exchange. However, this continuous growth also changes the competition because of other regions that have other types of mobile devices and services that are related and connected to the area. Vodafone can continue to compete by changing the marketing approach as it grows so it can match the competitors that are divided by region. 3.1 Market Forces and Organisational Responses The perfect competition that is a part of the current changes in globalization then creates a different sense of market forces that Vodafone has to respond to. The market structure that is used is first based on the basis of innovation that is related to mobile companies. The innovation is divided by products and services with products including the newest devices that can be used for wireless networks. The services are added into this by including installation in different areas as well as extra plans that can be used for those who are interested in mobile devices. For this to work, market forces such as product demand, standards, government policies and competition have to be looked into. The market forces are furthered by defining the industrial standards and providing a level of innovation to the business (Funk, Methe, 589, 2001). For Vodafone to respond to the market forces there is the need to create new levels of innovation at every level. For the global market, Vodafone has created partner and affiliate agreements that allow smaller businesses and individuals to team with the main corporate structure in different regions. This instantly changes the market force that is in the area while providing experts with the capability of growing the corporation within a specific region. This is followed by the implementation of new and innovative ideas, not only within the corporate structure, but also by providing opportunities to those who have new concepts related to mobile devices and phones. Vodafone continues this level of innovation with reaching standards and policies on a global level (Vodafone Market, http://online.vodafone.co.uk, 2010). 3.2 Behaviours and Competitive Strategies For the behaviours and competitive strategies to work effectively, there is the need to have competitive competition at the basis. For this time frame, the best approach is to tap into the information age and the expectations that are related to the global market. Those that are leading in innovation and information are also able to approach the global market with new ways of giving products and services (Matarazzo, Connolly, 85, 1999). For Vodafone, this is done through several branches from the main area of the organization, all which is divided by region. The competitive strategy is for each of these branches to incorporate the policies of the main company with specialized needs for the competition and policies in each area. This is furthered by the ability to provide innovative products that aren’t available through other mobile companies while using the several years of experience to continue to overcome the main competition that is in various regions of the globe. 4.0 International Trade, Economic Integration and Global Markets The international trade and economic integration that is used for Vodafone is divided by spatial agreements. Since the company is based on creating wireless connections for communication, there is the need to match the global market first by creating regional concepts that are a part of the main business. The international trade that is developed has to move through specific policies that are able to create wireless networks and economic integration. There is also the need to create global markets by first developing and investing in the sustainability needed for communication. Picking specific spatial regions, then using this for the needed outcome is able to create different types of implementation for Vodafone while maintaining trade regulations within specific regions (Fujita et al, 11, 2001). 4.1 Policies of the EU The integration of international trade for development has to first be implemented through the EU. The first level to this is to maintain licensing policies that give the mobile companies the right to develop in specific areas. After meeting the standards for licensing, there is the need to look at different spatial agreements as a part of the policy. The main changes that the EU looks at with the current mobile needs are based on the high amount of competition and the diffusion that is coming through the boom in technology. Each of the policies intertwine with the amount of room that can be used for development of mobile devices, competition in the market and the demands that are being created for new innovations (Gruber, Verboven, 577, 2001). Vodafone is able to reach this by complying with the policies and integrating the sustainable development as a part of the main plan. Going into regions that haven’t been developed instantly allows for growth of the product while providing the company with a return in the investments that are made. 4.2 Economic Implications of Entry into EMU The movement into the eurozone for Vodafone is one that is bringing a level of economic instability to those that are developing different concepts for society. Innovation, competition, policies and other factors all have to be reconsidered while moving into this phase. The concept of catch up growth is one of the main applications that many are concerned about with the EMU. The convergence of meeting new policies while helping to maintain the economy is also a concern for those that are beginning to move into this field (Coricelli et al, 1375, 2005). Even though this is a concern for the economy, Vodafone’s sustainable development and the movement into a global arena is one that already overcomes the several problems with this growth. The policies developed by the EU are naturally met, combined with the ability to compete at an international level through information, technology and innovation. Covering these different components will provide Vodafone with continuous development as the emergence into the EMU continues. 5.0 Conclusion and Recommendations The concepts that are a part of Vodafone have provided it with continuous growth since 1985. For it to continue to grow, the focus will have to be on the application of global development and concepts that work for a world economy. To further this, innovation and leadership in areas of technology will provide a stronger basis. Vodafone can reach the different areas of the globe while continuing to meet policy recommendations by looking at the needs in various regions. The use of sustainable development as well as the approach to investment with the foundational aspects in the economic system has allowed Vodafone to remain a leader in mobile devices. Continuing with this will then provide a stronger return for the company to continue to grow as innovative leaders. Word Count: 3419 References Coricelli, Fabrizio, Bostjan Jazbec, Igor Masten. (2006). “Exchange Rate Pass Through in EMU Acceding Countries: Empirical Analysis and Policy Implications.” Journal of Banking and Finance (30), (5). Edquist, Charles, Maureen McKelvey. (2000). Systems of Innovation: Growth, Competitiveness and Employment. UK: Edward Elgar Publishing. Elson, Diane, Nilufer Cagatay. (2000). “The Social Content of Macroeconomic Policies.” World Development (28), (7). Fischer, Stanley. (2001). Distinguished Lecture on Economics in Government: Exchange Rate Regimes: is the Bipolar View Correct?” The Journal of Economic Perspectives (15), (2). Fujita, Masahisa, Paul Krugman, Anthony Venables. (2001). The Spatial Economy: Cities, Regions and International Trade. Massachusetts: Achorn Publishing. Funk, Jeffrey, David Methe. 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