In this case of strategy formulation for a selected organization, I have selected Vodafone Group PLC which is the world's leading mobile telecommunications company, with a significant presence in Europe, the Middle East, Africa, Asia Pacific and the United States through the Company's subsidiary undertakings, joint ventures, associated undertakings and investments. At 30 June 2010, based on the registered customers of mobile telecommunications ventures in which it had ownership interests at that date, the Group had 347 million customers, excluding paging customers, calculated on a proportionate basis in accordance with the Company's percentage interest in the seventures. The current mobile market competition is very tight so that to survive in the market, the strategy which we prcatice is very important. Let’s discuss what is Strategy and strategic management. As Johnson and Scoles defined strategy is the direction and scope of an organizaion over the long term which achieves advantage for the organization through its configuration of resources within changing environment to meet the needs of markets and to fufil statkeholder expectations. Strategic management is the development, implementation and control of agreed strategies. There is more to strategy than merely deciding what you want to achieve and how you are to achieve. Corporate Strategy is concerned with what types of business the organization in. It denotes the most general level of strategy in an organization. Business Srategy is how an organization approaches a particular product market area. It can involve decisions such as whether to segment the market and specilise in particular profitable areas, or to compete by offering a wider range of products. Some of the large companies cannot operatre under one strategic business unit so that, these firms have diversified Strategic Business Unit (SBU) dealing with paricular areas. So, Business Strategy for such large organizations is startegy at the Strategic Business Unit (SBU) level. In the case of Vodafone, it has the network over the world and its main product is telecommunication network. When we consider this telecommunication network service providers, its direct competitiors are T-Mobile, and Orange. The goal of the shareholder’s is maximizing their wealth and profitability. This is known as very basic goal and every shareholder may have different goals and objectives. As we know who are the shareholders? Groups or individuals whose interests are directly affected by the activities of a firm or organization are stakeholders. In the case of Vodafone PLC, there are lots of stakeholders and their expectation is to survive in the market and increase the earning per share (EPS).
We can classify the shareholders as follows;
* Internal Stakeholders
- Vodafone Employees, Management * Connected
- Vodafone Sharehoders, its customers, suppliers and lenders.
- The Government, Local Government, the Public. The stakeholder groups can exert influence on strategy. The greater the power of a stakeolder group, the greater its influence will be. Each stakeholder groups has different expectations about what it wants, and the expectations of the various groups will conflict. To some extent, the expectations of stakeholders will influence the organization’s mission. As mentioned above, the employee’s expectations will be expecting high level salary, quick promotions, incentives and job security. When we look into the environment of Vodafone Group PLC, there are various participants such as internal group and external group. A large part of business strategy consists of making the organization’s interaction with its environment as efficient as possible. The degree of uncertainity in the environment is of great importance. The great uncertanity is a challenge to the strategic management and uncertainity depends on complexityand stability. PEST analysis.
As we know the...
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