This essay assess the external business environment of VODAFONE UK using the four headings of a PEST analysis; political, economic, social and technological it will provide information gathered from several researched sources relating to the four topics and will then go on to draw a conclusion based on the evidence provided.
Registered in Newbury Berkshire Vodafone UK is a British born multinational telecommunications company witch is headquartered in London and is part of the Vodafone group and behind CHINA mobile it is the world’s second-largest mobile telecommunications company however nationally it has 19.2 million subscribers which is third largest in the UK behind EE and o2.
It was alleged by the magazine private eye in September 2010 that it had ran an investigation and found Vodafone UK was involved in tax avoidance activities and that the company was placing its profits in a Luxembourg subsidiary. This lead to angry protests outside Vodafone flagship store in Oxford Street as well as a number of other stores across the UK from October 2010 right up past April 2011. It eventually paid £1.25 billion in taxes following a legal battle with HMRC. In recent months the UK government has increased the pressure on large businesses and multinational companies by aiming to tighten the loopholes which currently exist for tax avoidance schemes. In the media in recent weeks other well known name brand businesses including the likes of Starbucks and Google have been alleged to have been involved in tax avoidance activities.
Mobile phone service providers including Vodafone are now facing economic issues relating to the increased cost for buying mobile phone licences. Back in 2000 Vodafone and its competitors took part in an auction which involved selling the 3G licence this auction managed to raise £22.5 Billion pounds for the UK government. Currently being discussed to take place around the end of 2012...
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