7/31/2019 The Study of Business Strategy and ion Structure and Process
1/50
1
THE STUDY OF BUSINESS STRATEGY AND ORGANISATION STRUCTURE AND PROCESSES
Guide- Mr. Smith Pandya Mr. shukwant Singh Dhillon
Faculty of Commerce PGDSHRM Roll No 09
And Business Management Department of
Faculty of Commerce Commerce and Business
Management Faculty of Commerce
The MS University of Baroda The MS University of Baroda.
7/31/2019 The Study of Business Strategy and ion Structure and Process
2/50
2
Preface
The Maharaja Sayajirao's grandson Sir Pratapsinghrao Gaekwad who
founded the Maharaja Sayajirao University and settled the trust as
desired by his grandfather. This Trust known as Sir Sayajirao Diamond
Jubilee and Memorial Trust exists today also and caters to the
educational and other needs of the people of the former state of
Baroda.
The Government of Baroda and its people had for a long time desired to
have a separate University of their own. The affiliation of all theinstitutions of higher education to a University situated far away was
not conductive to the development of new courses of instruction suited
to the needs of the region. It acted, on the contrary, as an obstacle. The
main object of establishing the Maharaja Sayajirao Univerity of Baroda
was, therefore,to provide a distinct type of University-a teaching and
residential University which sould have complete freedom in all
academic matters and would be free to institute new branches of
studies suited to the needs and aspirations of the region in particularand of the country in general.
7/31/2019 The Study of Business Strategy and ion Structure and Process
3/50
3
ACKNOWLEDMENT
I am honoured to express my gratitude to all my people who were
always a great help to me in achieving this milestone. I could havenever completed my task without valuable contribution from my
teachers and faculty .I express my heart full indebtness and owe a deep
sense of gratitude to all of them including my guides.
Last but not the least I would like to thanks my fellows Mr. Smith
Pandya my project guide.
By interacting with them, I was able to generate more meaningful ideas
that have enables me to further complete this project successfully.
By Shukwant Singh Dhillon
(PGDSHRM)
7/31/2019 The Study of Business Strategy and ion Structure and Process
4/50
4
Index
Sr no. Topic Page no.
1 INTRODUCTION OF BUSINESS STRATEGY AND
ORGANISATION STRUCTURE
05
2 COMPANY PROFILE 17
3 BUSINESS PROFILE 23
4 BUSINESS STRATEGY 26
5 ORGANISATION STRUCTURE 40
6 PROCESS 44
7 CONCLUSION 48
8 SUGESSTION 49
9 BIBLIOGRAPHY 50
7/31/2019 The Study of Business Strategy and ion Structure and Process
5/50
5
Introduction
A business strategy describes how a particular business intends to succeed in its
chosen market place against its competitors. It therefore represents the best
attempt that the management can make at defining and securing the future of
that business. A business strategy should provide clear answers to the questions:
What is the scope of the business (or offering) to which this strategy applies?
What are the current and future needs of customers and potential customers of
this business What are the distinctive capabilities or unique competence that will
give us competitive advantage in meeting these needs now and in the future?
competitive advantage in meeting these needs now and in the future? What in
broad terms needs to be done to secure the future of our business? These
questions should have been addressed during the process of strategy formulation.
The processes and techniques and processes described in Part III may have
contributed to answering them. In this chapter, we are concerned with some of
the practical issues that arise when thinking and analysis leads into action and
commitment. We are concerned also with what makes the difference between
good and indifferent business strategies.
We suggest that a good business strategy will meet six tests of quality:
1. It will be correctly scoped.
2. It will be appropriately documented.
3. It will address real customer needs.
4. It will exploit genuine competencies.
5. It will contribute to competitive advantage.
6. It will lay the ground for implementation.
7/31/2019 The Study of Business Strategy and ion Structure and Process
6/50
6
Meaning of business strategy?
The definition of business strategy is a long term plan of action designed to
achieve a particular goal or set ofgoals or objectives. Strategy is
management's game plan for strengthening the performance of the
enterprise. It states how business should be conduct to achieve the desiredgoals. Without a strategy management has no roadmap to guide them.
Creating a business strategy is a core management function. It must be said
that having a good strategy and executing the strategy well, does not
guarantee success. Organizations can face unforeseen circumstances and
adverse conditions through no fault of their own.
Content of the Topic Includes:
The scope of business strategy
Content of a business strategy
Meeting the real needs of customers
Exploiting genuine competence in business strategy
Providing sustainable competitive advantage Laying the ground for implementation
Summary
References
Collection of data from primary and secondary
http://www.rapid-business-intelligence-success.com/why-is-goal-setting-so-important.htmlhttp://www.rapid-business-intelligence-success.com/creating-a-business-strategy.htmlhttp://www.rapid-business-intelligence-success.com/creating-a-business-strategy.htmlhttp://www.rapid-business-intelligence-success.com/why-is-goal-setting-so-important.html7/31/2019 The Study of Business Strategy and ion Structure and Process
7/50
7
THE SCOPE OF BUSINESS STRATEGY
Each separate business should have its own business strategy so that a multiple
business enterprise will have a number of separate business strategies. This raises
the practical question of how to define the scope for each such businessMathur
and Kenyon (1997) have examined this question rigorously. They suggest thatthere should be a separate competitive strategy for each offering defined as the
unit of customer choice. The unit of customer choice depends on what the
customer is comparing when he or she makes the buying decision. Their many
examples of offerings suggest, for instance, that a 100g jar of Nescafe might be a
separate offering from a 200g jar of Nescafe if the closest substitute for the
customer is the same size jar of another make of instant coffee. They see the two
different sizes of jar as being different offerings and therefore requiring different
business strategies.
This is certainly theoretically elegant but may present a few problems in practice.
To divide businesses so finely is likely to be too much work and it is unlikely that it
would be possible ever to implement such fine-grained strategies. There is often a
conflict between theoretical rigour and practical constraints. In practice, the
problem is more often the reverse of the Nescafe example in that a business is
defined too broadly and, consequently, a single strategy is expected to apply to all
its facets.
One reason for this is that a division or region considers a businessstrategy for
its business that includes several distinct offerings. If the genuinely differentneeds of the different offerings are not separated, the resulting strategies can
only be muddled and less useful than they might have been.
There is a need for a balance in choosing the scope for each business. If the
scope of the business is defined at too low a level, the work becomes too much. If
the level is too high, the analysis loses its rigour. In practice, the problem is
usually that this question of scope is never clearly posed, not that it would be
difficult to provide a workable answer.
7/31/2019 The Study of Business Strategy and ion Structure and Process
8/50
8
CONTENT OF A BUSINESS STRATEGY
There is a tendency for strategy documents to be too long. It should be possible
to read the whole document at a sitting and find it easy to understand. However,
the document should give clear answers to the questions posed above, concisely
and persuasively. Key facts and summarized analysis should support the answers.It may be appropriate to refer to more detailed documents or to include telling
details. Strategy document but the five headings below are likely to be included:
1. Statement of strategic intent for the business.
2. Principal findings of strategic assessment.
3. Strategic choices which have been made.
4. Statement of goals and objectives.
5. Outline of strategic initiatives.
1. Statement of strategic intent for the business.
This should describe in general terms the business as it expects to become in the
future. It should outline in practical and tangible terms how this future is different
from the present. Clearly, the strategic intent for the business has to relate to the
strategic intent for the enterprise as a whole and be coherent with any other
corporate strategie
2. Principal findings of strategic assessment.
Typically, the strategic assessment will have involved detailed analyses of both
the external business environment and the capabilities of the enterprise. Only the
most important or most surprising results need to be recorded. However, this
section should provide a reasoned assessment of current status and future
prospects of the business if present strategies were to be continued. This then
makes the case for change in business terms.
7/31/2019 The Study of Business Strategy and ion Structure and Process
9/50
9
3. Strategic choices which have been made.
This section has to summarize the options that have been identified and the
choices made. The reasons for preferring one direction to another have to be
spelt out and must be persuasive. The rationale for strategic choice should be
based on a rigorous analysis of the basis of competitive advantage and how thatwill relate to the demonstrable capabilities of the enterprise. It is also desirable to
show how the choice matches the strategic intent of the enterprise as a whole
4. Statement of goals and objectives.
The overall goal is to realize the strategic intent of the business. More measurable
supporting goals are also very valuable. Objectives should not all be financial. It is
important that some objectives set measures that relate to the fundamental
nature of the business and to meeting customer and stakeholder needs.business
strategies
5. Outline of strategic initiatives.
This section will outline the principal actions to be undertaken to make the
strategy happen.
7/31/2019 The Study of Business Strategy and ion Structure and Process
10/50
10
Meeting the real needs of customers
The needs of customers are one major driver of business strategy. It is essential to
understand the needs and to identify how to satisfy these needs more fully, more
exactly, or more profitably than competitors. Business strategy is therefore about
beating competitors in meeting customer needs; beating competitors for other
purposes may be fun but it is a distraction. It follows from this that a deep
analysis and understanding of customers needs is essential to produce a good
business strategy. It is necessary to understand the nature and scope of
customers needs, how these needs differ between different groups or
individuals, and how these needs are changing. It is normally the responsibility of
the marketing function to understand these needs. Business strategy is therefore
market driven and likely to have very heavy involvement of marketing people.
This does not, however, mean that a business strategy is the same thing as a
marketing strategy Business strategy is also heavily influenced by strategic intent,
by financial and human constraints, and in fact by everything that makes the chief
executives job different from the marketing directors.
In the BMW case example,there is no evidence that BMW defined clearly exactly
how the BMW/Rover combination was expected to look from the customerspoint of view or how it would help BMW to meet customers needs better. Five
years after the take-over, the BMWs brand strategy still looked like two separate
companies. In1999, Rover launched the Rover 75 that appears to compete almost
directly with its BMW executive models. At the same time, BMW was developing
the MX5, a fourwheel drive vehicle, in apparent competition with Rovers
Landrover range. BMW may have had a clear strategy for how the merged entity
would meet customer needs but we cannot detect it.174 strategy content
7/31/2019 The Study of Business Strategy and ion Structure and Process
11/50
11
Exploiting genuine competence in business strategy
The second major driver of business strategy is the competence of the enterprise.We have described various analytical techniques for measuring resources and
identifying capabilities. The ultimate goal is to identify a unique core competence
that can provide the basis for differentiating ourselves from our competition. This
is not easy to do and probably more business strategies go wrong because they
failed to be honest in their assessment of their own capabilities than because they
misunderstood customer needs. In the Nolan, Norton case example, the widening
impact of information technologies caused the scope of Nolan, Nortons
consulting assignments to broaden and to require larger teams with broader skillsin people and change management. This was recognized during the process of
formulating strategy and one of the reasons for selling out to Peat, Marwick was
to provide this wider skill base.
Providing sustainable com6 Providing sustainablecompetitive advantage
The best business strategies are those which use the capabilities of the firm to
address customer needs in a way which leads to sustainable competitive
advantage. Chapter 8 described how competitive advantage may be assessed, but
also suggested that competitive advantage had some of the elusive qualities ofthe Holy Grail. In practice, business strategies may have to tolerate less lofty
achievements than long-term sustainable advantage. The business strategy has to
address the issue of competitive advantage realistically in the context of that
business. This may require an admission that former competitive advantages are
being eroded so that the strategy is as much defensive as offensive
7/31/2019 The Study of Business Strategy and ion Structure and Process
12/50
12
As John Kay (1999) has pointed out, businesses, like people, have to go through
good times and bad times. It is probably impossible to achieve competitive
advantage is changing, and how the strategies take advantage of these changes.
Business strategies permanently and the excellent corporation that can achieve apermanent and irreducible lead is a myth. The business strategy must describe
what the basis of competition is, how this basis is changing, and how the
strategies take advantage of these changes. Business strategies.
Laying the ground for implementation
The business strategy must identify, in broad terms, the principal initiatives that
will be necessary to implement the strategies. It must identify the changes in the
business processes, culture, and organization that may be needed. It must argue
the case for change. It should set tight but achievable targets for the time-scales
in which change can be achieved.
Summary
The purpose of business strategy is to exploit the capabilities of the enterprise to
gain and sustain competitive advantage in serving the needs of customers in a
chosen marketplace. An effective business strategy will provide good answers to
questions on business scope, customers needs, how the enterprise will exploit its
advantages, and on how competitive advantage will be achieved. It will also
describe the main actions necessary to implement the strategy and the reasons
why the changes are necessary.
7/31/2019 The Study of Business Strategy and ion Structure and Process
13/50
13
Str ategy: Wh at i s s t r ategy?
Overall Definition:
Johnson and Scholes (Exploring Corporate Strategy) define strategy as follows:
"Strategy is the direction and scope of an organization over the long-term: which
achieves advantage for the organization through its configuration
ofresources within a challenging environment, to meet the needs ofmarkets and
to fulfill stakeholderexpectations".
In other words, strategy is about:
* Where is the business trying to get to in the long-term (direction)
* Which markets should a business compete in and what kind of activities are
involved in such markets? (markets; scope)
* How can the business perform better than the competition in those markets?
(advantage)?
* What resources (skills, assets, finance, relationships, technical competence,
facilities) are required in order to be able to compete? (resources)?
* What external, environmental factors affect the businesses' ability to compete?
(environment)?
* What are the values and expectations of those who have power in and around
the business? (stakeholders)
http://www.amazon.co.uk/exec/obidos/ASIN/0273651129/tutor2u00http://www.amazon.co.uk/exec/obidos/ASIN/0273651129/tutor2u007/31/2019 The Study of Business Strategy and ion Structure and Process
14/50
14
Strategy at Different Levels of a Business
Strategies exist at several levels in any organisation - ranging from the overall
business (or group of businesses) through to individuals working in it.
Corporate Strategy - is concerned with the overall purpose and scope of the
business to meet stakeholder expectations. This is a crucial level since it is heavily
influenced by investors in the business and acts to guide strategic decision-making
throughout the business. Corporate strategy is often stated explicitly in a "mission
statement".
Business Unit Strategy - is concerned more with how a business competes
successfully in a particular market. It concerns strategic decisions about choice of
products, meeting needs of customers, gaining advantage over competitors,
exploiting or creating new opportunities etc.
Operational Strategy - is concerned with how each part of the business is
organised to deliver the corporate and business-unit level strategic direction.
Operational strategy therefore focuses on issues of resources, processes, people
etc.
How Strategy is Managed - Strategic Management
In its broadest sense, strategic management is about taking "strategic decisions" -
decisions that answer the questions above.
In practice, a thorough strategic management process has three main
components, shown in the figure below:
Strategic Analysis
This is all about the analysing the strength of businesses' position and
understanding the important external factors that may influence that
position. The process of Strategic Analysis can be assisted by a number
of tools, including:
7/31/2019 The Study of Business Strategy and ion Structure and Process
15/50
15
PEST Analysis - a technique for understanding the "environment" in
which a business operates
Scenario Planning - a technique that builds various plausible views ofpossible futures for a business
Five Forces Analysis - a technique for identifying the forces which affect
the level of competition in an industry
Market Segmentation - a technique which seeks to identify similarities
and differences between groups of customers or users
Directional Policy Matrix- a technique which summarises the
competitive strength of a businesses operations in specific markets
Competitor Analysis - a wide range of techniques and analysis that
seeks to summarise a businesses' overall competitive position
Critical Success Factor Analysis - a technique to identify those areas in
which a business must outperform the competition in order to succeed
SWOT Analysis - a useful summary technique for summarising the key
issues arising from an assessment of a businesses "internal" position
and "external" environmental influences.
7/31/2019 The Study of Business Strategy and ion Structure and Process
16/50
16
Strategic Choice
This process involves understanding the nature of stakeholder expectations (the"ground rules"), identifying strategic options, and then evaluating and selecting
strategic options.
Strategy Implementation
Often the hardest part. When a strategy has been analyzed and selected, the task
is then to translate it into organizational action.
7/31/2019 The Study of Business Strategy and ion Structure and Process
17/50
17
COMPANY PROFILE OF VODAFONE
Vodafone is a mobile network operator headquartered in Newbury, Berkshire,
England, UK. It is the largest mobile telecommunications network company in the
world by turnover and has a market value of about 100 billion (December 2007).
Vodafone currently has equity interests in 25 countries and Partner Networks
(networks in which it has no equity stake) in a further 39 countries. The name
Vodafone comes from Voice data fone, chosen by the company to "reflect the
provision of voice and data services over mobile phones."
At 31 January 2007 Vodafone had 200 million proportionate customers in 25
markets across 5 continents. ("Proportionate customers" means, for example, that
if Vodafone has a 30% stake in a business with a million customers, that is counted
as 300,000). On this measure it is the second largest mobile telecom group in the
world behind China Mobile.
The eight markets where it has more than ten million proportionate customers are
the United Kingdom, Germany, India, Italy, Spain, Turkey, Egypt and the United
States. In the U.S., these customers come via its minority stake in Verizon
Wireless, and in the other seven markets Vodafone has majority-controlled
subsidiaries.
On 30 May 2006, the company announced a loss before tax of 14.9 billion for
2005, the biggest loss in British corporate history. The loss for the year from
continuing operations was 17.2 billion and the bottom line loss for the financial
year was 21.8 billion.
The company was pushed into loss by impairment charges of 23.5 billion, which
related to the acquisition of Mannesmann several years earlier, and losses of 4.6
billion in relation to its discontinued business in Japan.
At an operating level it remained highly profitable, with an operating profit on
continuing operations of 9.4 billion before impairment costs.
Vodafones original logo was used until the introduction of the speech mark logo in
1998.
7/31/2019 The Study of Business Strategy and ion Structure and Process
18/50
18
In 1982 Racal Electronics plc's subsidiary Racal Strategic Radio Ltd. won one of two
UK cellular telephone network licenses. The network, known as Racal Vodafone was
80% owned by Racal, with Millicom and the Hambros Technology Trust owning 15%
and 5% respectively.
Vodafone was launched on 1 January 1985. Racal Strategic Radio was renamed
Racal Telecommunications Group Limited in 1985. On 29 December 1986 Racal
Electronics bought out the minority shareholders of Vodafone for GB110 million.
In September 1988 the company was again renamed Racal Telecom and on 26
October 1988 Racal Electronics floated 20% of the company. The flotation valued
Racal Telecom at GB1.7 billion. On 16 September 1991 Racal Telecom was
demerged from Racal Electronics as Vodafone Group.
In July 1996 Vodafone acquired the two thirds of Talkland it did not already own for
30.6 million. On 19 November 1996, in a defensive move, Vodafone purchased
Peoples Phone for 77 million, a 181 store chain whose customers were
overwhelmingly using Vodafone's network. In a similar move the company acquired
the 80% of Astec Communications that it did not own, a service provider with 21
stores.
In 1997 Vodafone introduced its Speechmark logo, as it is a quotation mark in a
circle; the O's in the Vodafone logotype are opening and closing quotation marks,suggesting conversation.
On 29 June 1999 Vodafone completed its purchase of AirTouch Communications,
Inc. and changed its name to Vodafone airtouch plc. Trading of the new company
commenced on 30 June 1999. To approve the merger, Vodafone sold its 17.2%
stake in E-Plus Mobilefunk. The acquisition gave Vodafone a 35% share of
Mannesmann, owner of the largest German mobile network.
On 21 September 1999 Vodafone agreed to merge its U.S. wireless assets with
those of Bell Atlantic Corp to form Verizon Wireless. The merger was completed on
4 April 2000.
7/31/2019 The Study of Business Strategy and ion Structure and Process
19/50
19
In November 1999 Vodafone made an unsolicited bid for Mannesmann, which was
rejected. Vodafones interest in Mannesmann had been increased by the latter's
purchase of Orange, the UK mobile operator. Chris Gent would later say
Mannesmann's move into the UK broke a "gentleman's agreement" not to compete
in each other's home territory.
The hostile takeover provoked strong protest in Germany and a "titanic struggle"
which saw Mannesmann resists Vodafones efforts. However on 3 February 2000
the Mannesmann board agreed to an increased offer of 112bn, then the largest
corporate merger ever. The EU approved the merger in April 2000. The
conglomerate was subsequently broken up and all manufacturing related operations
sold off.
Hutch Becomes Vodafone
In one of the biggest brand transition exercises in recent times, Hutch, Indias
fourth-largest mobile service provider will be renamed Vodafone. Vodafone is
spending somewhere in the region of Rs 250 crore on this high-profile transition.
Vodafone has acquired 67 per cent in Hutchison Essar from Hong Kong-based
Hutchison Whampoa, and completed the acquisition of Hutchison Essar in May
2007. The brand change that will touch 3.5 crore customers and four lakh shops
and employees will be executed through a media blitz and the pug, which hadbecome famous with its network advertisement, will remain.
''This marks a significant chapter in the evolution of Vodafone as a dynamic and
ever-growing brand. The brand change over the next few weeks will be unveiled
nationally through a high profile campaign covering all important media,'' a news
agency quoted the company statement as saying.
Leading broadcaster Star India has entered into an exclusive deal with Vodafone
Essar for the latter's re-branding campaign to Vodafone from Hutch.
Financial Results
From its 31 March 2006 year end onwards Vodafone will report its results in
accordance with International Financial Reporting Standards (IFRS). It has issued
results amended to IFRS standards for its 31 March 2004 and 31 March 2005 year
ends for information purposes, and these are shown in the first table below.
7/31/2019 The Study of Business Strategy and ion Structure and Process
20/50
20
Vodafone has some large minority stakes, which are not included in its consolidated
turnover. In order to provide additional information on the overall scale and growth
trends of its business it publishes "proportionate turnover" figures and these are
included in the tables below.
For example, if a business in which it owns a 45% stake has turnover of 10 billion
that equals 4.5 billion of proportionate turnover for Vodafone. Proportionate
turnover is not an official accounting measure and Vodafones proportionate
turnover should be compared with other companies' statutory turnover.
Vodafone also produces proportionate customer number figures on a similar basis,
eg. if an operator in which it has a 30% stake has 10 million customers that equals
3 million proportionate Vodafone customers.
This is a common practice in the mobile telecommunications industry
Losses for year to 31 March 2006 reflect write downs of assets, principally in
relation to the Mannesmann acquisition. Proportionate turnover includes 7,100
million from discontinued operations.
Growth of Hutchison Essar (1992-2005):
In 1992 Hutchison Whampoa and its Indian business partner established a company
that in 1994 was awarded a licence to provide mobile telecommunications servicesin Mumbai (formerly Bombay) and launched commercial service as Hutchison Max
in November 1995. Analjit Singh of Max still holds 12% in company.
By the time of Hutchison Telecom's Initial Public Offering in 2004, Hutchison
Whampoa had acquired interests in six mobile telecommunications operators
providing service in 13 of India's 23 licence areas and following the completion of
the acquisition of BPL that number increased to 16. In 2006, it announced the
acquisition of a company that held licence applications for the seven remaining
licence areas.
In a country growing as fast as India, a strategic and well managed business plan is
critical to success. Initially, the company grew its business in the largest wireless
markets in India - in cities like Mumbai, Delhi and Kolkata.
7/31/2019 The Study of Business Strategy and ion Structure and Process
21/50
21
In these densely populated urban areas it was able to establish a robust network,
well known brand and large distribution network -all vital to long-term success in
India. Then it also targeted business users and high-end post-paid customers which
helped Hutchison Essar to consistently generate a higher Average Revenue Per User
("ARPU") than its competitors.
By adopting this focused growth plan, it was able to establish leading positions in
India's largest markets providing the resources to expand its footprint nationwide.
In February 2007, Hutchison Telecom announced that it had entered into a
binding agreement with a subsidiary of Vodafone Group Plc to sell its 67% direct
and indirect equity and loan interests in Hutchison Essar Limited for a total cash
consideration (before costs, expenses and interests) of approximately US$11.1billion or HK$87 billion.
1992: Hutchison Whampoa and Max Group established Hutchison Max
2000: Acquisition of Delhi operations Entered Calcutta and Gujarat markets
through ESSAR acquisition
2001: Won auction for licences to operate GSM services in Karnataka, Andhra
Pradesh and Chennai
2003: Acquired AirCel Digilink (ADIL - Essar Subsidiary) which operated in
Rajastan, Uttar Pradesh East and Haryana telecom circles and renamed it under
Hutch brand
2004: Launched in three additional telecom circles of India namely 'Punjab', 'Uttar
Pradesh West' and 'West Bengal'
2005: Acquired BPL, another mobile service provider in India
7/31/2019 The Study of Business Strategy and ion Structure and Process
22/50
22
2008: Vodafone acquired Dishnet Wireless, a service provider in Orissa and has
successfully launched its services in the following circle.
2008: Vodafone launched the Apple iPhone 3G to be used on its 17 circle 2G
network.
Hutch was often praised for its award winning advertisements which all follow a
clean, minimalist look. A recurrent theme is that its message Hello stands out
visibly though it uses only white letters on red background.
Another recent successful ad campaign in 2003 featured a pug named Cheeka
following a boy around in unlikely places, with the tagline, Wherever you go, our
network follows. The simple yet powerful advertisement campaigns won it many
admirers.
7/31/2019 The Study of Business Strategy and ion Structure and Process
23/50
23
Business profile1. network
2. Products and services
3. Brand presence and retail
4. Key financials and statistics5. Our direct economic impact
VODAFONE NETWORK 2010/11 2009/10 2008/09
Total number of base station sites 224,000 104,344 100,588
Number of violations of planning regulations in relation to masts /
base station sites
434 370 492
Total voice usage (billion minutes) 857 687 548
Total SMS messages handled (billion including text, picture, music,
video)
292 224 172
Products and services
PRODUCT AND SERVICES 2010/11 2009/10 2008
New handset models released 74 66 67
New Vodafone branded handsets launched during the year 13 16 19
Markets (including partner markets) offering Vodafone branded devices 33 31 29
Markets offering fixed broadband services 13 13 13
Brand presence and retail
http://www.vodafone.com/content/dam/vodafone/about/sustainability/2011/tables/business-profile.html#networkhttp://www.vodafone.com/content/dam/vodafone/about/sustainability/2011/tables/business-profile.html#productsserviceshttp://www.vodafone.com/content/dam/vodafone/about/sustainability/2011/tables/business-profile.html#brandhttp://www.vodafone.com/content/dam/vodafone/about/sustainability/2011/tables/business-profile.html#financialshttp://www.vodafone.com/content/dam/vodafone/about/sustainability/2011/tables/business-profile.html#economicimpacthttp://www.vodafone.com/content/dam/vodafone/about/sustainability/2011/tables/business-profile.html#economicimpacthttp://www.vodafone.com/content/dam/vodafone/about/sustainability/2011/tables/business-profile.html#economicimpacthttp://www.vodafone.com/content/dam/vodafone/about/sustainability/2011/tables/business-profile.html#financialshttp://www.vodafone.com/content/dam/vodafone/about/sustainability/2011/tables/business-profile.html#brandhttp://www.vodafone.com/content/dam/vodafone/about/sustainability/2011/tables/business-profile.html#productsserviceshttp://www.vodafone.com/content/dam/vodafone/about/sustainability/2011/tables/business-profile.html#network7/31/2019 The Study of Business Strategy and ion Structure and Process
24/50
24
2010/11 2009/10 2008/09
Stores owned 2,200 2,100 1,800
Stores franchised 10,300 7,600 5,200
Total Vodafone Passport customers (million) 27.5 24.9 22.5
Total Vodafone Mobile Internet users (million) 44 31 19
Total fixed broadband customers (million) 6.1 5.6 4.6
Key financials and statistics
2010/11 2009/10 2008/09
Revenue (m) 45,884 44,472 41,017
Adjusted operating profit (m) 11,818 11,446 11,757
Free cash flow (m) 7,049 7,241 5,772
Market capitalization (as at 31 March) (m) 91,034 80,048 64,424
Closing proportionate customers (million) 354.7 341.1 302.6
Our direct economic impact
7/31/2019 The Study of Business Strategy and ion Structure and Process
25/50
25
2010/11 2009/10 2008/0
Suppliers (m) 35,189 31,651 30,226
Employees (m) 3,114 3,288 2,778
Shareholder returns (m) 6,875 4,195 5,153
Lenders (m) (81) 1,406 1,168
Tax authorities (corporation tax and social security only) (m) 3,789 2,688 2,800
Community (m) 50 42 48
Retained for growth (m) (1,879) 2,113 (4)
Cash value added (m) 11,868 13,732 11,943
7/31/2019 The Study of Business Strategy and ion Structure and Process
26/50
26
BUSINESS STRATEGY OF VODAFONE
The five-point strategy we created in May 2006 has worked well for us. However,
we have reviewed and updated the strategy to address evolving challenges and
reposition ourselves in the current environment.
The 2006 five-point strategy Progress under the 2006 strategy
Evolving challenges in 2009
Strategic focus in 2009
The 2006 five-point strategy
Revenue stimulation and cost reduction in Europe.
Deliver strong growth in emerging markets.
Innovate and deliver on our customers total communications needs. Actively manage our portfolio to maximise returns.
Align capital structure and shareholder returns policy to strategy.
Progress under the 2006 strategy
We made strong progress against our key objectives.
Mobile phone usage has grown significantly, partly offsetting price declines.
We met key operating costs and capital expenditure targets.
We increased our exposure to emerging markets.
Our revenue share from non-core mobile or total communication services
grew, due to significant data revenue growth and an increased fixed
broadband presence.
We refined our portfolio of businesses and disposed of several non-core
assets.
We maintained a disciplined approach to our capital structure. This proved
right for the business and returned a significant level of cash to shareholders.
7/31/2019 The Study of Business Strategy and ion Structure and Process
27/50
27
Evolving challenges in 2009
The macro economic environment has become more challenging.
Competitive pressures continue to be strong, contributing to price declines of
around 15% per annum.
Consumers have an increasing choice of converged communication offers
from established mobile and fixed line operators, as well as newer entrants.
They include handset manufacturers, internet-based companies and software
providers.
Mobile virtual network operators (which lease network capacity from mobile
companies) are becoming more common.
Regulators continue to press for lower mobile termination rates and roaming
prices. These areas together account for around 17% of our revenue.
Strategic focus in 2009
1. Operational performance
Drive operational performance
Value enhancement
We will drive operational performance through customer value enhancement
(which replaces revenue stimulation) and cost efficiency. Value enhancement
involves maximising the value of our existing customer relationships, not just the
revenue.
We will move away from unit pricing and unit-based tariffs to propositions that
deliver much more value to our customers in return for greater commitment,
incremental penetration of the account or more balanced commercial costs.
This will require a more disciplined approach to commercial costs to ensure our
investment is focused on those customers with higher lifetime value.
We are confident that by targeting our offers, we can deliver more value to our
customers and have a better financial outcome for Vodafone.
7/31/2019 The Study of Business Strategy and ion Structure and Process
28/50
28
Cost reduction
Cost efficiency requires us to continue to deliver scale benefits by optimising
operating and capital expenditure.
Across the Group we have a significant number of cost programmes, which we
expect to reduce current operating costs by approximately 1 billion per annum
by the 2011 financial year.
This will offset the pressures from cost inflation and the competitive environment
and enable investment in revenue growth opportunities.
As a result, on a like-for-like basis, we are targeting broadly stable operating costs
in Europe and for operating 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.
Capital intensity is expected to be around 10% over this period in Europe and to
trend to European levels in emerging markets over the longer term.
2.Total communication
Pursue growth opportunities in total communications
Mobile data
Weve made significant progress on mobile data, with annualized revenue of 3billion. This is still a large opportunity, with the penetration of data devices
relatively low in Europe and almost nil in emerging markets.
Enterprise
We have a strong position in core mobile services and weve built a solid presence
in 18 months in multi-national accounts through Vodafone Global Enterprise.
We will make the most of this strength to expand our offerings into the broader
enterprise communications market locally. This means serving small and homeoffices (SOHOs) and small-to-medium enterprises (SMEs) with shared platforms
and services, supported by our local sales forces.
7/31/2019 The Study of Business Strategy and ion Structure and Process
29/50
29
Broadband
We will adopt a market-by-market approach focused on the service, rather than
the technology. It will be targeted at enterprise and high value consumers as a
priority.
3.Emerging market
Execute in emerging markets
Delivery in existing markets
We are represented in most of the key emerging markets where significant
growth is expected in the coming years.Our main focus now is on execution in these markets, particularly in India, Turkey
and our African footprint, following our agreement to acquire control of Vodacom
Selective expansion and cautious approach
We will also try to maximise the mobile data opportunity. There are few potential
large new markets of interest to us and we will be cautious and selective on
future expansion.
4.Capital discipline
Strengthen capital discipline
We remain committed to our low single A rating target, which we consider to be
appropriate in the current environment and comfortable with our liquidity
position.
Our focus is on generating 5 billion to 6 billion free cash flow generation per
annum and ensuring appropriate investment in our existing businesses.
7/31/2019 The Study of Business Strategy and ion Structure and Process
30/50
30
Shareholderreturns
We will aim to improve returns to shareholders, primarily by increasing dividends.
In November 2008, the Board adopted a progressive dividend policy, where
dividend growth reflects our underlying trading and cash performance.
In May 2010 the Board announced that it was targeting dividend per share growthof at least 7% per annum for the next three financial years ending on 31 March
2013. We expect the total dividend per share will therefore be no less than 10.18
pence for the 2013 financial year.
Clear priorities for surplus capital
Our priorities are to:
invest in existing businesses
expand in the growth areas of mobile data, enterprise and broadband
acquire, where appropriate, new spectrum to support voice and data traffic
growth.
After investing in existing business and returns to shareholders, we will consider
opportunities to reshape the portfolio. Our current capital structure implies that
any significant acquisition would likely need to be funded through portfoliodisposals.
7/31/2019 The Study of Business Strategy and ion Structure and Process
31/50
31
Vodafone Group Plc Strategy Update
19 November 2010
Disclaimer Information in the following presentation relating to the price at
which relevant investments have been bought or sold in the past or the
yield on such investments cannot be relied upon as a guide to the future
performance of such investments. These presentations do not constitute
an offering of securities or otherwise constitute an invitation or the Group.
This presentation contains forward-looking statements within the meaning
of the US Private Securities Litigation Reform Act of 1995 which are subject
to risks and uncertainties because they relate to future events. These
forward-looking statements include, without limitation, statements in
relation to the Groups projected financial results for the 2011 financial
year. Some of the factors which may cause actual results to differ from
these forward-looking statements are discussed in the last slide of this
presentation.
The presentation also contains certain non-GAAP financial information. The
Groups management believes these measures provide valuable additional
information in understanding the performance of the Group or the Groups
businesses because they provide measures used by the Group to assessperformance. However, this additional information presented is not
uniformly defined by all companies, including those in the Groups industry.
Accordingly, it may not be comparable with similarly titled measures and
disclosures by other companies. Additionally, although these measures are
important in the management of the business, they should not be viewed
in isolation or as replacements for or alternatives to, but rather as
complementary to, the comparable GAAP measures. Vodafone, the
Vodafone logo, Vodacom, Vodafone One Net and M-PESA are trade marksof the Vodafone Group. Other product and company names mentioned
herein may be the trade marks of their respective owners.
7/31/2019 The Study of Business Strategy and ion Structure and Process
32/50
7/31/2019 The Study of Business Strategy and ion Structure and Process
33/50
33
transitioning our data pricing plans to tiered plans and differentiated service
levels, to encourage data adoption and adjust pricing to usage, thereby
giving customers more control and driving better returns on our investment;
enhancing our customer care, retail presence, online services and support,
to ensure that
customers get the best data experience with Vodafone; and carrying a balanced portfolio of smartphones and connected devices, with all
leading brands, and supplementing our range with attractively priced
Vodafone-branded smartphones to accelerate further smartphone
penetration across our customer base.
2. Enterprise: we will further grow enterprise revenue through the introduction of
new services for the SME, SoHo and Corporate segments, increasing our
addressable market and building on the momentum of Vodafone Global
Enterprise and Vodafone One Net.
3. Emerging markets: we will continue to generate revenue growth from driving
penetration of mobile voice and SMS and accelerating the adoption of affordable
data into our attractive markets across India and Africa.
4. Total Communications: in Europe, where we see early signs of convergence,
we will build on our recent success in fixed broadband and continue to secure
over time access to fast broadband to allow us to service the enterprise and
consumer markets in a capital efficient manner.
5. New services: we will selectively expand into a number of new growth
segments including machine-to-machine services and financial mobile services.
We will continue to drive benefits from the Groups scale advantage and cost
focus.
The current composition of the Group has increased efficiency and enabled us to
achieve favourable comparative cost positions in many markets. We will continue
to generate significant savings from technology standardisation, off-shoring,outsourcing and platform sharing. Our supply chain management programmes
will enable us to continue to reduce our cost to carry in an increasingly data
driven environment. The Groups second 1 billion cost efficiency programme is
on track and we continue to identify further ways to simplify and standardise our
business to increase efficiency.
7/31/2019 The Study of Business Strategy and ion Structure and Process
34/50
34
We will seek to generate free cash flow or liquidity from non-controlled assets
and investments.
Non-controlled assets (primarily Verizon Wireless and SFR) constitute a significantproportion of the Groups assets but only generate a small proportion of reported
free cash flow. We will seek to maximise the value of non-controlled assets in a
tax efficient manner either through generating liquidity or increased regular free
cash flow in order to fund profitable investment and enhance shareholder
returns.
Verizon Wireless, the Groups largest non-controlled asset, is the market leader in
an attractive market and is performing strongly. SFR is well positioned as a
converged operator in the French market. Vodafones proportionate share of free
cash flow from Verizon Wireless and SFR was around 5 billion last year.
However, the net cash flow from these two assets was only around 1 billion in
the 2010 financial year. The opportunity for incremental value creation is,
therefore, substantial.
In addition, we will actively manage our investment portfolio and seek out value
enhancing opportunities wherever possible as we have done with the sale of
the Groups investment in China Mobile and in SoftBank which was announced
today.
We will continue to apply capital discipline to our approach to investment.
We continue to apply capital discipline to our investment decisions. We apply
rigorous commercial analysis and demanding hurdle rates, including our existing
M&A criteria, to ensure that any investment and corporate activity will enhance
shareholder returns. Adhering to our target credit rating of low single A continues
to provide the Group with a low cost of debt and good access to liquidity. We will
continue to undertake regular reviews of Vodafones entire portfolio to ensurethat we optimise value for shareholders.
7/31/2019 The Study of Business Strategy and ion Structure and Process
35/50
35
Improved guidance for the 2011 financial year and medium-term targets
For the current year we have updated our guidance and increased our
expectations for adjusted operating profit, reflecting the higher than expected
revenue growth in each of the Groups regions and the current strong
performance at Verizon Wireless. We continue to expect free cash flow to be inexcess of 6.5 billion.
As we implement our updated strategy in the three financial years to FY 2014, we
expect to generate organic revenue growth in the range of 1% to 4% per annum,
stabilising Group EBITDA margins and free cash flow generation of between 6
billion and 7 billion per annum from the Groups existing operations.
7/31/2019 The Study of Business Strategy and ion Structure and Process
36/50
36
Hutch to Vodafone strategy
Launch of Vodafone Essar
Vodafone is the worlds leading international mobile communications company. It
presently has operations in 25 countries across 5 continents and 40 partnernetworks with over 200 million customers worldwide. Vodafone has partnered
with the Essar Group as its principal joint venture partner for the Indian market.
The Essar Group is a diversified business corporation with interests spanning the
manufacturing and service sectors like Steel, Energy, Power, Communications,
Shipping & Logistics and Construction. The Group has an asset base of
over Rs. 400 billion and employs over 20,000 people.
Vodafone Essar was launched in India on 21st September 2007. Vodafone was
welcomed in India with the Hutch is now Vodafone campaign. The popular andendearing brand Hutch was transitioned to Vodafone across India. This marked a
significant chapter in the evolution of Vodafone as a dynamic and ever-growing
brand. This brand unveiled nationally through a high profile campaign covering all
important media.
Vodafone, the worlds leading mobile telecommunication company, completed
the acquisition of Hutchison Essar in May 2007 and the company was formally
renamed Vodafone Essar in July 2007. The transition from Hutch to Vodafone is
probably the largest brand change ever undertaken in this country and arguably
as big as any in the world. It is even larger than Hutchs own previous brandtransitions. The migration from Hutch to Vodafone was one of the fastest and
most comprehensive brand transitions in the history of the Vodafone Group, with
400,000 multi brand outlets, over 350 Vodafone stores, over 1,000 mini stores,
over 35 mobile stores and over 3,000 touch-points rebranded in two months, with
60% completed within 48 hours of the launch.
The Vodafone mission is to be the communications leader in an increasingly
connected worldenriching customers lives, helping individuals, businesses and
communities be more connected by delivering their total communication needs.
7/31/2019 The Study of Business Strategy and ion Structure and Process
37/50
7/31/2019 The Study of Business Strategy and ion Structure and Process
38/50
38
While the brand campaign had been addressing the transformation, the
Company, on the other hand was swiftly preparing for a price war in the Indian
telecom space. Indeed, it was preparing to provide mobile handsets to new
subscribers at ultra-cheap prices, ranging from about $19 to $25.
Vodafone Essar launched low priced cell phones in India under the Vodafone
brand, and also co-branded handsets sourced from major global vendors. By
bringing in millions of low-cost handsets from across the globe into India,
Vodafone Essar distributed bundled handsets through its existing 400,000
distribution outlets. By flooding the market with its low-cost handsets, Vodafone
also became a mass mobile phone brand like Nokia, Samsung, Motorola, and Sony
Ericsson in addition to continuing as telecom services provider.
Previously, similar handset-driven expansion strategies to grow subscriber bases
were adopted by CDMA players, like RCOM and Tata Teleservices. Vodafone is the
first GSM operator to follow suit.
The Vodafone mission is to be the communications leader in an increasingly
connected worldenriching customers lives, helping individuals, businesses and
communities be more connected by delivering their total communication needs.
Vodafones logo is a representation of that belief The start of a new
conversation, a trigger, a catalyst, a mark of true pioneering.
7/31/2019 The Study of Business Strategy and ion Structure and Process
39/50
39
Vodafones Advertising Strategies: Hutch to Vodafone
Advertising is probably one of the most frequently used vehicles for Rebranding,
as it is fairly easy, flexible and quick to change. It is a powerful way of reaching a
broad or targeted audience quickly and is effective at signalling a change in
positioning, however real or broad that may be. There are many examples ofwhere advertising has either repositioned or strengthened brands, other good
examples of where advertising has built a new position for a brand or built a
strong emotional link with the public are where companies have created a sort of
soap opera out of their advertising.
The Advertising agency of Hutch and now Vodafone, Ogilvy & Mather (O&M), had
a two-fold task to achieve: announce the entry of Vodafone into India and
highlight the metamorphosis of Hutch into Vodafone. O&M realised that they had
a fantastic property in the Hutch pug, which they had been using for about fiveyears.
Therefore, to show the transition from Hutch to Vodafone, O&M launched a
rather direct, thematic ad showing the trademark pug in a garden, moving out of
a pink coloured kennel which symbolised Hutch making his way into a red one
that is the Vodafone colour. A more energetic, chirpier version of the You and I
tune associated with Hutch was played towards the end, and it concludes with
Change is good. Hutch is now Vodafone.
O&M has also rolled out four Commercials featuring Hutchs animated boy andgirl, introducing the new brands logo to consumers. The four creatives which
were of five seconds each included the duo peeping over a wall to see the logo;
parasailing with the logo flying high behind them; releasing a rocket bomb
wherein the explosion reveals the logo; and lastly, drawing curtains aside to show
the logo.
Four other ads with the pug did the rounds of telly screens. These five and 10
second spots cast the dog in situations where he, literally, saw red, using the
colour as a visual mnemonic to remember the brand by. The pug was shown in a
red basket, popping up from a red cart, drying himself on a red mat, and hiding ina red blanket. Each of these made use of the Hutch is now Vodafone tagline.
The print ads, in all major languages in several leading dailies, were kept
unbelievably simple: a still shot of the pug inside a red kennel. The same creative
7/31/2019 The Study of Business Strategy and ion Structure and Process
40/50
40
was used in outdoor hoardings as well, in all the 16 circles in which Vodafone now
operates.
It wasnt easy integrating Vodafone with Hutch; the latter, as is known, is a subtle,
understated brand, while globally, Vodafone represents high energy, dynamism
and young vitality all represented by its bright red speech mark logo. And sothey put in elements such as a more energetic tune and feel to the ads.
A few advertisements include:
Hutch is now Vodafone: If you watch any of the star channels or tuned into 20-20
world cup, you would have seen this ad. On 11 February 2007, Vodafone agreed
to acquire the controlling interest of 67% held by Cheung Kong Holdings in Hutch-
Essar for US$11.1 billion and now had to rebrand itself so it has decided to run a
new ad series which piggy banked on Hutchs dog mascot and the theme Change
is Good. This required nearly 250 crores of spending by Vodafone but they havesuccessfully painted the town red. An interesting part of this campaign was on the
opening day roadblock where they made a deal with Star India so that besides
them no other commercials were aired (apart from in-channel promos) on the
Star Indias channels for 24 hours
Vodafone Valentine Day Special Ads: Vodafone had released a simple and sweet
ad for musical greetings targeted at couples during the valentine week the feature
of this campaign is its simplicity and believability and is quite well received. It uses
the positioning Make the most of now enjoy the video
Vodafone Chota Credit Ink Ad: This new ad had come as refreshing change and
more so that this ad takes a very refreshing look at school and at fountain pens.
This ad creates a wonderfully subtle message which really puts the point of chota
(small) credit across.
7/31/2019 The Study of Business Strategy and ion Structure and Process
41/50
41
What is organisation structure?
The framework, typically hierarchical, within which an organization arranges
its lines ofauthority and communications,
and allocates rights and duties. Organizational structure determines the mannerand extent to which roles, power, and responsibilities are delegated, controlled,
and coordinated, and how information flows between levels of management.
An structure depends entirely on the organization's objectives and
the strategy chosen to achieve them. In a centralized structure, the decision
making power is concentrated in the top layer of the management and
tight control is exercised over departments and divisions. In a decentralized
structure, the decision making power is distributed and the departments and
divisions have varying degrees ofautonomy. An organizational chart illustrates
the organizational structure.
Organisational structure refers to the hierarchy of an organisation and how the
components of this hierarchy work together to achieve the objectives of the
company.
For example, in a particular area, there are staffs reporting to manager, who may
report to another manager, or directly to a ceo (depending on the complexity of
the structure or the size of the organisation). Each of this group of persons hastheir own distinct task(s) to complete that contributes to a main goal(s).
http://www.businessdictionary.com/definition/framework.htmlhttp://www.businessdictionary.com/definition/hierarchical.htmlhttp://www.businessdictionary.com/definition/lines.htmlhttp://www.businessdictionary.com/definition/authority.htmlhttp://www.businessdictionary.com/definition/communications.htmlhttp://www.businessdictionary.com/definition/allocate.htmlhttp://www.businessdictionary.com/definition/right.htmlhttp://www.businessdictionary.com/definition/duty.htmlhttp://www.businessdictionary.com/definition/organizational.htmlhttp://www.businessdictionary.com/definition/structure.htmlhttp://www.businessdictionary.com/definition/roles.htmlhttp://www.businessdictionary.com/definition/power.htmlhttp://www.businessdictionary.com/definition/responsibility.htmlhttp://www.businessdictionary.com/definition/information-flow.htmlhttp://www.businessdictionary.com/definition/levels-of-management.htmlhttp://www.businessdictionary.com/definition/organization.htmlhttp://www.businessdictionary.com/definition/objective.htmlhttp://www.businessdictionary.com/definition/strategy.htmlhttp://www.businessdictionary.com/definition/achieve.htmlhttp://www.businessdictionary.com/definition/decision-making.htmlhttp://www.businessdictionary.com/definition/decision-making.htmlhttp://www.businessdictionary.com/definition/management.htmlhttp://www.businessdictionary.com/definition/control.htmlhttp://www.businessdictionary.com/definition/department.htmlhttp://www.businessdictionary.com/definition/division.htmlhttp://www.businessdictionary.com/definition/degree.htmlhttp://www.businessdictionary.com/definition/autonomy.htmlhttp://www.businessdictionary.com/definition/chart.htmlhttp://www.businessdictionary.com/definition/chart.htmlhttp://www.businessdictionary.com/definition/autonomy.htmlhttp://www.businessdictionary.com/definition/degree.htmlhttp://www.businessdictionary.com/definition/division.htmlhttp://www.businessdictionary.com/definition/department.htmlhttp://www.businessdictionary.com/definition/control.htmlhttp://www.businessdictionary.com/definition/management.htmlhttp://www.businessdictionary.com/definition/decision-making.htmlhttp://www.businessdictionary.com/definition/decision-making.htmlhttp://www.businessdictionary.com/definition/achieve.htmlhttp://www.businessdictionary.com/definition/strategy.htmlhttp://www.businessdictionary.com/definition/objective.htmlhttp://www.businessdictionary.com/definition/organization.htmlhttp://www.businessdictionary.com/definition/levels-of-management.htmlhttp://www.businessdictionary.com/definition/information-flow.htmlhttp://www.businessdictionary.com/definition/responsibility.htmlhttp://www.businessdictionary.com/definition/power.htmlhttp://www.businessdictionary.com/definition/roles.htmlhttp://www.businessdictionary.com/definition/structure.htmlhttp://www.businessdictionary.com/definition/organizational.htmlhttp://www.businessdictionary.com/definition/duty.htmlhttp://www.businessdictionary.com/definition/right.htmlhttp://www.businessdictionary.com/definition/allocate.htmlhttp://www.businessdictionary.com/definition/communications.htmlhttp://www.businessdictionary.com/definition/authority.htmlhttp://www.businessdictionary.com/definition/lines.htmlhttp://www.businessdictionary.com/definition/hierarchical.htmlhttp://www.businessdictionary.com/definition/framework.html7/31/2019 The Study of Business Strategy and ion Structure and Process
42/50
42
Organisation structure of Vodafone
British telecommunications company Vodafone Group Plc
(VOD:News,VOD.L:News ) Thursday announced a new organizational structure to
focus on its key commercial and financial priorities and simplify its organization
and managerial governance by reducing layers. The new structure will come intoeffect on October 1.
Under the new structure, the Newbury, UK-based company will bring the
accountability for its operating companies into two operating regions, Europe and
Africa, Middle East and Asia Pacific, to reflect the different nature of
assets/geographies and different development of the sector in various
economies.
The European region will comprise all of the company's existing controlledbusinesses in Europe, along with Czech Republic, Hungary, Romania and Turkey.
The company also stated that Michel Combes will continue to serve as Regional
Chief Executive Officer in charge of the European region.
The Africa, Middle East and Asia Pacific region will include all emerging economies
in Africa, the Middle East and Asia, plus Australia, New Zealand and Fiji. Nick Read
will be the Regional Chief Executive Officer in charge of this region.
The company also stated that it will create a new unit, Group Commercial, and it
will be responsible for all commercial activity. Vodafone will combine its Group
Marketing, Vodafone Business Services, Vodafone Global Enterprise, Partner
Markets, and other commercial units into the new organization. Morten Lundal
will head the new unit as Group Chief Commercial Officer (CCO) and will report to
the Group Chief Executive Officer.
Further, Vodafone stated that the group Chief Executive Officer, Chief Financial
Officer and Strategy & Business Development Director will be responsible for
effecting strategies to maximize shareholder value from the company's
investments in Verizon Wireless, SFR, Polkomtel and Bharti Holding. These
investments will no longer be held within the company's regional structures.
http://www.rttnews.com/SymbolSearch.aspx?Symbol=VODhttp://www.rttnews.com/SymbolSearch.aspx?Symbol=VODhttp://www.rttnews.com/SymbolSearch.aspx?Symbol=VODhttp://www.rttnews.com/SymbolSearch.aspx?Symbol=VOD.Lhttp://www.rttnews.com/SymbolSearch.aspx?Symbol=VOD.Lhttp://www.rttnews.com/SymbolSearch.aspx?Symbol=VOD.Lhttp://www.rttnews.com/SymbolSearch.aspx?Symbol=VOD.Lhttp://www.rttnews.com/SymbolSearch.aspx?Symbol=VOD7/31/2019 The Study of Business Strategy and ion Structure and Process
43/50
43
In addition, the company said all technology functions in its operating companies
will report into Group Technology. Steve Pusey will serve as Group Chief
Technology Officer and will report directly to the Group Chief Executive Officer.
Organisation structure of Vodafone
Organizational Structures & Strategies
Business owners usually create an organizational structure for their company that
helps owners make business decisions and manage employees. Typically an
extension of the owner personality and management style, organizational
strategies include elements of the company& mission and vision. Strategies
provide guidelines for accomplishing the company& goals through employees.
7/31/2019 The Study of Business Strategy and ion Structure and Process
44/50
44
What is process?
Sequence of interdependent and linkedprocedureswhich, at everystage,
consume one or moreresources(employeetime,energy,machines,money) to
convert inputs (data,material,parts, etc.) intooutputs. These outputs then serve
as inputs for the next stage until a knowngoalorend resultis reached.
A process is a program that is running on your computer. This can be anything
from a small background task, such as a spell-checker or system events handler to
a full-blown application like Internet Explorer or Microsoft Word. All processes
are composed of one or more threads.
Since most operating systems have many background tasks running, yourcomputer is likely to have many more processes running than actual programs.
For example, you may only have three programs running, but there may be
twenty active processes. You can view active processes in Windows by opening
the Task Manager (press Ctrl-Alt-Delete and click Task Manager). On a Mac, you
can see active processes by opening Activity Monitor (in the Applications-
>Utilities folder).
The term "process" can also be used as a verb, which means to perform a series
of operations on a set of data. For example, your computer's CPU processes
information sent to it by various programs.
http://www.businessdictionary.com/definition/procedure.htmlhttp://www.businessdictionary.com/definition/procedure.htmlhttp://www.businessdictionary.com/definition/procedure.htmlhttp://www.businessdictionary.com/definition/stage.htmlhttp://www.businessdictionary.com/definition/stage.htmlhttp://www.businessdictionary.com/definition/stage.htmlhttp://www.businessdictionary.com/definition/resource.htmlhttp://www.businessdictionary.com/definition/resource.htmlhttp://www.businessdictionary.com/definition/resource.htmlhttp://www.businessdictionary.com/definition/employee.htmlhttp://www.businessdictionary.com/definition/employee.htmlhttp://www.businessdictionary.com/definition/employee.htmlhttp://www.businessdictionary.com/definition/energy.htmlhttp://www.businessdictionary.com/definition/energy.htmlhttp://www.businessdictionary.com/definition/energy.htmlhttp://www.businessdictionary.com/definition/machine.htmlhttp://www.businessdictionary.com/definition/machine.htmlhttp://www.businessdictionary.com/definition/machine.htmlhttp://www.businessdictionary.com/definition/money.htmlhttp://www.businessdictionary.com/definition/money.htmlhttp://www.businessdictionary.com/definition/money.htmlhttp://www.businessdictionary.com/definition/data.htmlhttp://www.businessdictionary.com/definition/data.htmlhttp://www.businessdictionary.com/definition/data.htmlhttp://www.businessdictionary.com/definition/material.htmlhttp://www.businessdictionary.com/definition/material.htmlhttp://www.businessdictionary.com/definition/material.htmlhttp://www.businessdictionary.com/definition/part.htmlhttp://www.businessdictionary.com/definition/part.htmlhttp://www.businessdictionary.com/definition/part.htmlhttp://www.businessdictionary.com/definition/output.htmlhttp://www.businessdictionary.com/definition/output.htmlhttp://www.businessdictionary.com/definition/output.htmlhttp://www.businessdictionary.com/definition/goal.htmlhttp://www.businessdictionary.com/definition/goal.htmlhttp://www.businessdictionary.com/definition/goal.htmlhttp://www.businessdictionary.com/definition/end-result.htmlhttp://www.businessdictionary.com/definition/end-result.htmlhttp://www.businessdictionary.com/definition/end-result.htmlhttp://www.businessdictionary.com/definition/end-result.htmlhttp://www.businessdictionary.com/definition/goal.htmlhttp://www.businessdictionary.com/definition/output.htmlhttp://www.businessdictionary.com/definition/part.htmlhttp://www.businessdictionary.com/definition/material.htmlhttp://www.businessdictionary.com/definition/data.htmlhttp://www.businessdictionary.com/definition/money.htmlhttp://www.businessdictionary.com/definition/machine.htmlhttp://www.businessdictionary.com/definition/energy.htmlhttp://www.businessdictionary.com/definition/employee.htmlhttp://www.businessdictionary.com/definition/resource.htmlhttp://www.businessdictionary.com/definition/stage.htmlhttp://www.businessdictionary.com/definition/procedure.html7/31/2019 The Study of Business Strategy and ion Structure and Process
45/50
7/31/2019 The Study of Business Strategy and ion Structure and Process
46/50
46
Application processIn order to find out if you are right for us, and if we are right for you, our
application process contains three important elements:
Online testing
The online test is designed to measure your problem-solving ability.
It has been previously shown to be successful as part of the selection process for
our high potential employees and also for our previous graduate intakes. In our
experience, it serves as a good indicator of people who are capable of thinking
through problems from a fresh point of view and are comfortable with
complexity, ambiguity and explaining their thinking to others.
Competency-based telephone interview
How passionate are you about developing a career with us? Thats what well
want to discover during a telephone call with you. Well ask you challenging
questions to give us a better understanding of your motivations and how well the
programme would suit you.
The interview is also the ideal opportunity for us to answer any questions you
might have about the programme that arent covered in our FAQ section. So dont
be afraid to ask!
Assessment Centre
Our Assessment Centre days take place throughout the year. This is where youll
get the chance to meet us, ask any questions and find out what life is really like at
Vodafone from the people that already work there. The day may include team
and/or individual exercises as well as a written case-study to complete as part of
the final assessment.
If we dont let you know on the day itself, well try to let you know as soon as
possible after the assessment day if you have been successful or not. If you
havent been successful, dont be afraid to ask for some helpful feedback to help
you improve in the future.
7/31/2019 The Study of Business Strategy and ion Structure and Process
47/50
47
Business process management approach
We, all Vodafone employees, always challenge ourselves to improve
our business and our processes. Therefore, among other activities we
are responsible to:
1.Develop and introduce a process model in which all main business
processes are defined and depicted.
2.Define the interrelations and interactions of business processes based
on companys process model.
3. Identify, understand and document all core processes and sub-
processes.
4.Set qualitative and quantitative performance indicators in companys
processes and sub-processes
5.Review and assess regularly the effective implementation of businessactivities by monitoring the performance indicators
6.Develop action plans in order to achieve process improvements.
7. Involve employees in process management
7/31/2019 The Study of Business Strategy and ion Structure and Process
48/50
48
CONLUSION
While making the project on Vodafone I got myself clear with my view that people
providing services are not just after they money but they also care for you and
they future. It was one of my great experiences to know about such people who
really work for people without any selfish reason. Humanity in people is still seen
such ways. Form this I got my inspiration for my life that one should always think
and do well for everyone on the base on being a human being living in the social
society.
It was a great experience and doing something like a real work on Vodafone tele-
communication Company.
The subject was very vast so it is not possible to collect each and every
Information.
The objective of these project was interesting but we face a demerit was the
availability of time
7/31/2019 The Study of Business Strategy and ion Structure and Process
49/50
49
Suggestion
Though the resources seem sufficient enough to achieve high
standard for this research still we foresee the following limitation.
Subject was interesting we can go for depth study on this topic
and can compare with other tele-communication company also.
This sector is very vast and it was not possible to cover every nook
and corner of this subject.
The variability and availability of data and also a limitation.
We can shows graphs on various functions of company and
comparison can be made within the company or with other
company.
The information is selected from secondary sources.
7/31/2019 The Study of Business Strategy and ion Structure and Process
50/50
Bibliography
The used of website link during the preparation of the project are given
1. en.wikipedia.org/wiki/Vodafone2. ../business-strategy-of-vodafone-uk-research-.3. www.vodafone.com/content/index/investors/company.../strategy.html4. www.vodafone.com/content/index/.../organisation_structure.html5. www.vodafone.com/content/index/investors/management.html 6. www.vodafone.com/content/index/careers/.../application_process.htm..
.7. www.vodafone.com.net
8. www.google.com
http://www.vodafone.com/content/index/investors/company.../strategy.htmlhttp://www.vodafone.com/content/index/investors/company.../strategy.htmlhttp://www.vodafone.com/content/index/investors/company.../strategy.htmlhttp://www.vodafone.com/content/index/investors/company.../strategy.htmlhttp://www.vodafone.com/content/index/investors/company.../strategy.htmlhttp://www.vodafone.com/content/index/investors/company.../strategy.htmlhttp://www.vodafone.com/content/index/.../organisation_structure.htmlhttp://www.vodafone.com/content/index/.../organisation_structure.htmlhttp://www.vodafone.com/content/index/.../organisation_structure.htmlhttp://www.vodafone.com/content/index/.../organisation_structure.htmlhttp://www.vodafone.com/content/index/.../organisation_structure.htmlhttp://www.vodafone.com/content/index/.../organisation_structure.htmlhttp://www.vodafone.com/content/index/.../organisation_structure.htmlhttp://www.vodafone.com/content/index/.../organisation_structure.htmlhttp://www.vodafone.com/content/index/investors/management.htmlhttp://www.vodafone.com/content/index/investors/management.htmlhttp://www.vodafone.com/content/index/investors/management.htmlhttp://www.vodafone.com/content/index/investors/management.htmlhttp://www.vodafone.com/content/index/careers/.../application_process.htmhttp://www.vodafone.com/content/index/careers/.../application_process.htmhttp://www.vodafone.com/content/index/careers/.../application_process.htmhttp://www.vodafone.com/content/index/careers/.../application_process.htmhttp://www.vodafone.com/content/index/careers/.../application_process.htmhttp://www.vodafone.com/content/index/careers/.../application_process.htmhttp://www.vodafone.com.net/http://www.vodafone.com.net/http://www.google.com/http://www.google.com/http://www.google.com/http://www.vodafone.com.net/http://www.vodafone.com/content/index/careers/.../application_process.htmhttp://www.vodafone.com/content/index/investors/management.htmlhttp://www.vodafone.com/content/index/.../organisation_structure.htmlhttp://www.vodafone.com/content/index/investors/company.../strategy.html