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Vodafone Company Statement And Goals

Paper Type: Free Essay Subject: Marketing
Wordcount: 2811 words Published: 4th May 2017

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“On 1 January 1985 we made the UK’s first mobile call. It marked the launch of the mobile industry and transformed global communications. Today Vodafone is the world’s leading international mobile telecommunications group with equity interests in 27 countries across 5 continents, 186.8 million proportionate customers and 33 partner networks*.

For more than 20 years we’ve been at the forefront of mobile innovation. Now we’re entering a stretch of uncharted territory as next generation technology opens up a whole new range of opportunities for customers. It’s a new and exciting stage in our journey.

Our vision:

To be the world’s mobile communications leader, enriching customers’ lives and helping individuals, businesses and communities to be more connected in a mobile world.


We channel massive investment into building a network that lets our customers make more calls from more places, confident that the quality and reliability of our service is second to none.

Value for money: In the past three years we’ve reduced costs more than five times, which equates to savings of around 50% for our customers.

Customer service: From providing coverage and capacity to call handling and billing, we’re focused on maintaining a high level of customer service”.


Strategy Capacities:

“The five-point strategy model Vodafone created in May 2006 has worked well for them. However, they have reviewed and updated the strategy to address evolving challenges and reposition Vodafone in the current environment.”

Vodafone has the aptitude to build the strategies in agreement with the needs and loads of the business. The corporate level achieves to analysis the old strategies every three years and implements the new once as required. The five point strategy based on following grounds.

Five-point strategy:

Revenue motivation and cost decrease in Europe.

Mobile phone custom has grown expressively, partly balancing price failures.

Deliver solid growth in developing markets.

We enlarged our exposure to developing markets.

Invent and deliver on our customers’ total communications needs.

Our revenue portion from non-core mobile or total communication services raised, due to important data revenue growing and an increased stable broadband presence.

Aggressively manage our collection to maximize returns.

We advanced our portfolio of businesses and inclined of several non-core assets

Support capital building and shareholder returns policy to strategy.

We sustained a controlled method to our capital assembly. This showed right for the business and repaid a important level of cash to shareholders.


Operational Strategy:

Operational strategy is mainly focused on four key factors.

Operational performance:

Total communication

Emerging market

Capital discipline

1: Operational performance:

Value enhancement

Will drive working presentation through customer value improvement (which swaps revenue inspiration) and cost competence. Value improvement involves exploiting the value of our existing customer relationships, not just the revenue.

This will require a more controlled approach to marketable costs to ensure our investment is intensive on those customers with advanced lifetime value.

Cost reduction:

This will balance the pressures from cost increase and the reasonable environment and enable investment in revenue growth opportunities.

As a result, on a like-for-like basis, they are pointing approximately stable operating costs in Europe and for working costs to grow at a lower rate than revenue in ACE (Africa and Central Europe) and APME (Asia Pacific and Middle East) between the 2008 and 2011 financial years.

2: Total communication:

Mobile data

Made important progress on mobile data, with annualized revenue of £3 billion. This is still a large chance, with the diffusion of data plans relatively low in Europe and almost nil in developing markets.


Strong location in core mobile services and they’ve built a solid presence in 18 months in multi-national accounts over Vodafone Global Enterprise.


Will accept a market-by-market method absorbed on the service, rather than the technology. It will be targeted at enterprise and high value consumers as a priority.

3: Emerging Market:

Delivery in existing markets

Represented in most of the key emerging markets where significant growth is expected in the coming years.

Selective expansion and cautious approach

Will also try to maximize the mobile data opportunity. There are few potential large new markets of interest to us and they will be cautious and selective on future expansion.

4: Capital discipline

They continue committed to our low single a score target, which they reflect to be suitable in the current environment and calm with their liquidity position.

Shareholder returns

Will aim to recover returns to shareholders, mainly by increasing dividends. In November 2008, the Board accepted an advanced dividend policy, where dividend development reflects our fundamental trading and cash performance.

Clear priorities for surplus capital

Invest in current businesses

Enlarge in the development areas of mobile data, enterprise and broadband.

Obtain, where suitable, new spectrum to backing voice and data traffic growth.

Comparison b/w Vodafone OVER Competitive advantage:

Vodafone has got the edge over other two on the basis of their strength, because they are more focused to strengthen than services; however services are the most important part of the business, they admit yet to expand first and grab more is their first priority.

Vodafone has mainly marketing based strategies, which allow them to bring up new marketing idea into the market and attract more customers. Marketing strategies has the edge over the other competitor.

Vodafone its self is one of the expensive company and but their focus is to emerge the market internationally and reduce the cost as well , at the moment they have high cost plans which doesn’t allow them to emerge the market where Telenor and warid exist already.

Organizational culture

This is an idea in the field of organizational studies and management which defines the psychology, attitude, know-how, beliefs and values of an organization. The organizational culture may be strong or weak. Basically, organizational culture is the personality of an organization; it is comprised of the assumption, values, norms and tangible sign of organization members and their behavior. Culture is one of those terms that difficult to express distinctly, but everyone knows it when they sense it. www.Wikipedia.org

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Strong culture means that the organizational staff responds to the external motivations they are focused on the organizational goals and adapt themselves according to changing environments. They only need minor changes in policy and procedures. Weak organizational structure means that the organizations staff is not meeting the requirements of an organization so this could be the down fall for any organization.

The idea of culture is mainly important when trying to manage organization extensive change. Consultants are coming to understand that, regardless of the best laid plans, organizational change must include not only moving structure and processes but also changing the corporate culture as well.

There has been a great agreement of works made over the past period about the idea of organizational culture — mainly in respect to knowledge how to change physical culture. Organizational change labors are thought to fail the massive mainstream of the time. Naturally, this failure is credited to lack of tolerant about the strong part of culture and the role it plays in institutions. That’s one of the motives that many tactical planners now place as much importance on classifying strategic morals as they do task and vision.

As perceived from the companies that the culture has three layers under which companies operates. Organizational attributes, values, and tactics. Moreover I would like to discuss some of its types.

Types of culture

There are altered types of culture just like there are different types of characters, so some of the types are as follows,

Academy Culture

Baseball team culture

Club culture

Fortress culture

Academy culture Employees are highly expert and incline to stay in the group, while working their way up the rankings. The organization delivers a constant situation in which employees can growth and movements their supports. Examples are universities, hospitals, large corporations,

Baseball team culture Employees is “free managers” who have tremendously prized services. They are in great request and can somewhat easily get jobs somewhere else. This type of culture happens in fast-paced, high-risk managements, such as theory banking, promotion.

Club culture the most important responsibility for employees in this nation is to fit into the group. Naturally employees start at the bottom and stay with the association. The organization approves from within and particularly values advantage. Examples are the military, some law firms.

Fortress culture Employees don’t know if they will be laid off or not. These organizations often experience massive reform. There are many opportunities for these kinds of cultures in organizations.

Strategic change in Vodafone


Vodafone Revenue Increase

Vodafone plc to focus on data growth

Vodafone’s CEO Vittorio Colao had before advised at the 2010 mobile world congress in Barcelona Spain that the predictable increase in data traffic may posture a threat to cellular system traffic volume, and advised an immediate promotion of current networks. And that carried a big strategic change into Vodafone. That change directed Vodafone to highlight the possible need of new traffic models, possibly relating to content providers, in order to confirm that the carries stay and have the acceptable fluidity to maintain and upgrade their networks.

The future emphasis on data will address all parts of the value chain, with a special attention on what peer technologies give best return values. This means that Vodafone will also inspect the available smartphone portfolio and connected operating system, with related suggestions for handset vendors.

Vodafone last quarter results.

By fearless wireless on 19/05/2010

“Vodafone reported a pretax profit increase to 8.7 billion British pounds which was more than double of the same period last year. The results included a decline in UK revenues and a write down of 2.3 billion British pounds of Vodafone’s Indian subsidiary, mainly due to competitive pressures. Turkey’s market contribution to the Vodafone group had increased by 200 million British pounds.

Profits were boosted mainly by Asia Pacific and Middle East revenues while European services were down to 28.3 billion British pounds or minus 3.5%. Central European service revenues fell about 1.2% to 7.4 billion British pounds.

UK revenues experienced a dramatic 16.6% reduction in earnings levelling off at 1.14 billion British pounds”

Now Vodafone trust in organic growth, this tendency seems to continue for Vodafone. The double digit growth rate makes this possible easily. Vodafone has also acquired buzz back in 2000 which has strengthen its growth.

It is clear from the past that whenever who ever tried to challenge faced more change culture in an organization, Vodafone used to be the best and the only good quality supplier in the market yet it is still but because of high rivalry change was required which made them to lower the prices and services.

Vodafone succeeds its operations at the most minimum operating costs possible. The management whenever sees a layer of unwanted cost immodestly sheds it and searches for other similar cost which can be dropped.

Operational model is one of the areas where Vodafone has to look in order to make the change happen.

Vision into action a more comprehensive review of Vodafone strategic plan and key elements of their performance record is needed. Their vision has to be change in a sense to get into same but different segments where they might find a high volume of competition. So they have to invent it accordingly.

Commitment they have to be committed of what they ask for, for particularly customer growth, for development, for awareness.

Sustainability how to sustain current position in the market is difficult for them because of its competitors.

Approach to risk include into strategic change, their reasonable approach would allow them to examine and implement. So their approach would be different than before.

Corporate Objective:

The key objectives should be clearly definite at all levels within the groups “purpose and values” and business principles are to be clearly understood by the top as far as line management in order to produce corporate morals. Moreover have to have responsibilities’ limits set and standards.

Authority rules, must disclose any important ways in which their corporate practices differ in order to comply with the standards.

Management level changing:

In order to make some alterations in future I think Top management is the area where they have to focus. Strategically the business units are not allied and not same natured. The unrelated modification is not appropriate for other allied businesses.

However it does add value to the businesses but still the modification strategy has to be changed.

The level of management change here is, the process of business decision making has to change in next five years, and they have to have connected diversification in order to make brand single peak asset for them.


In the end I would like to conclude this report by saying that one can boost up the organization as welch did by his way of leadership style as discussed in other subject where he/she takes right decision with right approach or wise versa. How ever having red and discussed all above I came to the conclusion that the Vodafone is strategically well aligned with its long term goals.

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Vodafone made examples that people are willing to follow them because they knew that this industry has the potential to deal with circumstances and they were right. Vodafone born to lead and proved this for decades. Authority was very strict as far as work is concern. Because “An organizations ability to learn, and translate that learning into action rapidly, is the ultimate competitive advantage”

I have learnt many things in while doing this report as far as strategic changes in an organization are concern, and I came to know that there are certain fundamentals involved in either good progress of an organization or bad.

Therefore his managing strategic change could be the best example till today for any kind of business and mostly businesses are still adopting them because they are proven. It’s also important that to be the leader in the market they should change their strategies often and according to the working environment. Their emphasis should be on internal environment to the external environment to get most about the company according because external environment is the boons of the company you are working in so to get most from outside it’s important to show what you are doing.

However in this era of rivalry is so high and to be back on track Vodafone should intensely reflect their change strategies locally as well as internationally because the next five years are going to be threatening for everyone particularly for Vodafone where they might look challenges and more rivalry. So they have to be ready and have to have their long term change management plans ready.


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