Global Business Context Vodafone

Topics: Mobile phone, Planned economy, Market economy Pages: 3 (744 words) Published: October 16, 2012
‘Vodafone is a leading international mobile communications company with interests in 27 countries and partnership agreements with a further 40 countries, including Safaricom in Kenya.’ (Times 100, Ed.14. p.161) There are three main types of economy. These are, planned, market and mixed economies. In a planned economy the government make all society decisions. This can have both advantages and disadvantages on businesses and consumers. An advantage of the government making all decisions is that most people are employed which benefits the economy as they have a low unemployment rate. A disadvantage is that the government controls the wages that workers receive. This means consumers cannot afford luxury goods and services, for example a mobile phone. A mobile phone in a mixed economy would usually be taken for granted. Countries that operate in a planned economy include Russia, Bulgaria and Romania. In a market economy the government ensures that the countries financial supply is stable. The government’s role is limited within this economy. They provide legislation in order to protect both businesses and consumers. Providing legislation means no business or organisation can restrict competition. The prices of goods and services are determined by supply and demand. In a mixed economy there is a combination of both planned and market economies. The UK, USA and China are part of a mixed economy. Within this market structure the government contributes and controls some resources and the market controls the rest. Market economies benefit from technological innovation in many ways, as do the businesses and organisations that provide technological innovation. Market economies have ‘sophisticated users who want and expect new functions from their mobiles’ (Times 100, Ed.14. p.161). This means that companies such as Vodafone will need to try and meet their consumer expectations to stay competitive. Vodafone states that their business model is “market orientated and...
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