Company Structure of Vodafone - Essay Example

COMPANY STRUCTURE OF VODAFONE Vodafone is a British multinational telecommunication company. The headquarter is situated in London. It is the world’ssecond largest mobile telecommunication organization in term of connections, comes at third in term of revenues (Pawaey, 2012). Employees define the size of the organization and Vodafone has 91,000 employees over 30 countries in March 31, 2013 (Vodafone, 2013). The key staff of Vodafone includes Anthony Waston a non-executive director, Stephen Charles Pusey a chief technology officer and non-chief executive director, Vittorio Amedeo Colao an executive director and chief executive officer, and Gerard Johannes Kleisterlee a chairperson (Vodafone, 2014). Organizational structure of Vodafone is not constant; company continuously makes changes in its organizational structure, and Company announced the new organizational structure in 2014. MAIN PRODUCTS AND SERVICES OF VODAFONE Vodafone offers an extensive range of services and products which includes messaging, voice, fixed line and data solutions and provides devices to help out customers in order to meet customers overall communication needs. Company supports technologies to meet its communication strategy. Vodafone’s key products and services include fixed telephony, mobile services, company introduced datacom, internet services are also provided by subsidiaries, and Vodafone is providing many other services. By making continuous advancements in the mobilization of internet services and handset capabilities, 3G networks, and download speeds, Vodafone speeded up the usage growth of data services (Vodafone, 2008). Product Details Fixed Telephony It is a fixed telephone services, provided by subsidiaries Mobile Services It includes digital mobile and analogue services, GPRS, HSDPA, SMS, MMS, UMTS, WCDMA, mobile TV, push, email, and push-to-talk. Datacom Services including ATM, IP-VPN, XDSL, leased lines, and frame relay through its subsidiaries Internet Services 2G, 3G networks, and internet USB connection Other Services Messaging, m-commerce, mobile multi-media content, Internet portal for mobile users and much other information related services provided by Vizzavil. AREA OF OPERATIONS AND MAIN TRADING LINKS Vodafone group plc is a UK based company, and headquarter is placed in London. It has operational networks in 21 countries, and its partnership network is in over 41 countries. Company had 22 major subsidiaries. Company’s operational networks are in Europe, America, Asia pacific and in Africa and Middle East (Vodafone, 2013). Majority owned in Qatar, Egypt, Lesotho, and South Africa. Company made a partnership with UAE, Libya, Bahrain, and Kuwait. Majority operations are in Australia, New Zealand, and India. Partnership networks are in America, Samoa, Sri Lanka, Thailand, Afghanistan, Taiwan, Singapore, Azerbaijan, Malaysia, Uzbekistan, and Turkmenistan. Majority owned in Albania, Greece, hungry, Ireland, Malta, Italy, Germany, Moth, Cyprus, Portugal, Spain, turkey, UK, and roman. Partner networks are in Belgium, Norway, Ukraine, Serbia, Luxembourg, Sweden, Latvia, Estonia, Faroe Islands, Channel Islands, Austria, Bulgaria, Croatia, Iceland, Russia, Slovenia, Switzerland, Macedonia, Finland, Croatia, Denmark, and Slovenia. FINANCIAL STRUCTURE OF VODAFONE Financial structure is a mix of financing that is employed by an organization, to obtain and support resources that are essential to run the company’s operations. Company’s debt and equity ratio revealed that debt equity ratio of Vodafone Plc was 0.41 for the year of 2013, which is higher than the prior years of debt to equity ratio, which means that the company is leveraged as compare to last years and; therefore, the financial position of the company is risky. Return on invested capital is -0.76 in 2013, which also shows that the company is not in a good position financially, and the cause is increased dividend payout ratio, increased tax rates, increased liabilities, and decreased shareholders equity. Account receivable turnover of 2013 is 11.28 which is lower than 2012 and shows Vodafone’s efficiency. Inventory turnover of 2013 is 65.18 which is higher than 2012 and shows inefficient management of company’s inventory (Vodafone, 2013). (Adapted from: Vodafone, 2009; 2010; 2011; 2012; 2013) Despite of increased sales company’s profit is decreasing drastically, due to the increased cost of goods and services, operating expenses, and taxes. CURRENT OWNERSHIP OF VODAFONE The current ownership of Vodafone is as follow (Vodafone, 2013) Institutions 19257.36 million USD Insiders 0.00 million USD Mutual funds 4911.75 million USD TRAINING PROVISION AT VODAFONE Company provides learning opportunities to its employees for organizational development and employees’ development. Through training programs, company prepares its employees to deal with future challenges. Education and training are provided at all levels (supply chain management, sales department, and marketing departments) of the organization for which programs like degree and national vocational qualifications and a wide range of professional development programs are offered. For making the employees’ performance better, performance appraisals are given to them. Moreover, through reward and benefits, and by offering competitive pays company keeps employees motivated, retain them, and attract new talent to join Vodafone (Vodafone, 2013). Vodafone provides numerous training at a global level through e-tools. Three days training course is provided to the most senior managers (Stratos. (2007). VODAFONE HISTORY AND PRODUCT DEVELOPMENT With the establishment of Racal strategic radio Ltd, development of Vodafone started in 1982 and launched in 1985. In 1988, Vodafone was renamed from Racal communication group Ltd to Racal telecom; in 1991, it was started to recognize as Vodafone and with telecom Finland, Company made first roaming call of the world. In 1996 company acquired people phones and 2/3 of talk lands. Vodafone is a player of service industry. In 1999, formed Verizon wireless and made a merger with Air Touch communication (Vodafone, n.d.). Product Development 2000 USB modem mobile connect of Vodafone was launched, WAP gateway was unlocked, and the company acquired 3G license 2001 Instant messaging services, GPRS for “always on” were introduced 2002 Vodafone group foundation, Vodafone live, mobile office, and Europe GPRS roaming services were launched 2003 Company launched speaking phones for visually damage customers 2004 Control content was launched to stop accessing youngsters to adults material 2005 Stop the clock for monthly payments; Vodafone simply that give customers new comfortable text and voice services; passport a new price plan for voice roaming were launched. 2006 3G broadband card data was launched that enable customers to have faster data speed on laptop. 2007 Secured remote access was launched, and purpose of this launch was to provide security flexible and remote customers. 2008 Company launched blackberry first ever touch screen Smartphone 2009 Company launched sure signal device for the improvement of signals at home 2010 Company won best network award, launched Vodafone one net and VIP. Vodafone one net is a solution for business that merges landline and mobile numbers. 2011 Company launched justtextgiving, freebee rewardz that provides unique fund raising code to charities and fund raising organizations, and Vodafone guardian a free app that enable parents to safe youngsters on mobile. 2012 Company purchased cable and wireless worldwide plc, launched Vodafone euro traveler, and Vodafone red. 2013 Company launched ultrafast 4G network, 4G ready phone called blackberry Z10. (Adapted from: Vodafone, n.d.) FUTURE OF VODAFONE Company has the intention to open 150 shops in UK that will create 1400 more jobs. Vodafone is opening these stores to improve the retail stores performance; company is making more investments for the improvement of its mobile services that will enable the company to get more market share. According to the Vodafone chief executive, “opening retail stores is a big element for having sustainable growth in UK.” According the seniors of Vodafone; company will soon see the growth again in business and the focus of the retail stores was to help customers in using their cell phones as compared to selling them (Thomas, 2014). Currently, company is deploying 4G technology that has double speed of data as compared to 3G and the growth of this technology is expected to reach at 40% by the end of 2015. In future company will continue to deliver with high-speed data network services and will focus on lowering the cost through the merger of it platform and network. Company is planning to offer more standardized offering that will benefit Vodafone in future. Future strategy of Vodafone is based on six pillars: consolidating company lead to M2M, growing Vodafone carrier business services and global enterprises; accelerating coverage services of the company; offering cloud based software as services and leveraging the hosting capability of the company. These all initiatives signal the bright future of the organization. INTERVIEWS WITH KEY PERSONNEL Interviews with diverse key personnel were conducted through taking appointments. According to them Vodafone has great presence in emerging markets and has high brand visibility, strong management, and they have the ability to charge higher prices due to their innovative services. Moreover, for future growth they are focusing on low cost technology with enhanced features and have an opportunity to tap untapped rural areas. Company has the opportunity to expand its online market, and new services are key strengths to attract customers. Therefore, Vodafone has a bright future and opportunity to grow in the telecommunication market. References Pawsey, C. (2012). Vodafone Company Profile. Available from http://ovum.com/research/vodafone-company-profile/ [Accessed 28 April 2014] Stratos. (2007). Vodafone Case Study. Available from http://www.stratos-sts.com/wp-content/uploads/2013/04/2007_07_Case-Study-Vodafone.pdf [Accessed 28 April 2014] Thomas, D (2014). Vodafone to add 150 retail outlets in UK. Available from http://www.ft.com/intl/cms/s/0/0c6a0406-ba7b-11e3-8b15-00144feabdc0.html#axzz30H74VOzc [Accessed 28 April 2014] Vodafone. (2008). Annual Report for the year ended 31 March 2008. Available from http://www.vodafone.com/content/annualreport/annual_report08/business/products_and_services/index.html [Accessed 28 April 2014] Vodafone. (2009). Annual Report for the year ended 31 March 2009. Available from http://www.vodafone.com/content/dam/vodafone/investors/annual_reports/annual_report_accounts_2009.pdf [Accessed 28 April 2014] Vodafone. (2010). Annual Report for the year ended 31 March 2010. Available from http://www.vodafone.com/content/dam/vodafone/investors/annual_reports/annual_report_accounts_2010.pdf [Accessed 28 April 2014] Vodafone. (2011). Annual Report for the year ended 31 March 2011. Available from http://www.vodafone.com/content/dam/vodafone/investors/annual_reports/annual_report_accounts_2011.pdf [Accessed 28 April 2014] Vodafone. (2012). Annual Report for the year ended 31 March 2012. Available from http://www.vodafone.com/content/dam/vodafone/investors/annual_reports/Vodafone_Annual_Report_12.pdf [Accessed 28 April 2014] Vodafone. (2013). Annual Report for the year ended 31 March 2013. Available from http://www.vodafone.com/content/annualreport/annual_report13/downloads/vodafone_annual_report_2013.pdf [Accessed 28 April 2014] Vodafone. (2014). Vodafone group Plc Fact Sheet. Available from http://www.vodafone.com/content/dam/vodafone/investors/factsheet/group_factsheet.pdf [Accessed 28 April 2014] Vodafone. (n.d.). Our company history. Available from http://www.vodafone.co.uk/about-us/company-history/index.htm [Accessed 28 April 2014] Vodafone. Available at: http://g3ict.com/resource_center/ict_accessibility_company_profiles/vodafone [Accessed 28 April 2014] Read More