IntroductionThe evaluation of performance of a company involves assessing the aspects of the company that are linked directly to the financial performance. The evaluation consists in assessing the financial and economic decisions that are made by a company. These decisions are applied to the investment, financial and operations of the company. Evaluation of the company helps in finding the critical aspects that are crucial in achieving the financial goal of the company. The key determinant parameters in the evaluation of the company are the internal and external influences on the financial profitability of the company (Philips, 2012, p.
125). The structure of the management of the company its employees and stakeholders determine the performance of the company. Therefore, in evaluation the performance of a company, such factors should be addressed. The reason in evaluating the management of then company is that the management if directly involved in decision-making. The decisions of the company affect its relationship with both stakeholders and its employees. In addition, the management of the company is responsible for the adoption of new technologies that will enhance performance of the company.
This report will evaluate the performance of Vodafone using the internal and external influence on the financial decisions of the company. Vodafone is one of the leading multinational in the telecommunication industry that has employed the aspect of corporate governance in enhancing good performance (Vander, 2009, p. 498). In evaluating the performance of Vodafone group, various performance indicators will be used which include financial indicators, operational indicators, and strategic indicators. In this report, the cash flow, adjustable operating profit, capital expenditure, and customer delight index, and EBIDTA.
These parameters are used since they affect the management as well as the financial position of the company in the market. The influence of investors and community in evaluating the performance of Vodafone is not included since it does not directly affect it financial position in relation to market completion and potential growth (www. vodafone. com, 2013). Governance of VodafoneVodafone has embraced the principle of corporate governance practices in enhancing its performance. The company is aimed at enhancing a transparent governing board, which complies with the standard code of ethics and governance.
This is crucial in gaining investors support and other stakeholders support in decision-making (Malin, 2007, p. 145). In addition, customers are able to gain confidence in the company products. This enables the company to record an increased rate of turnover. Vodafone has a strong board of directors that is focused on the success of the company (Goedhart, 2007, p. 36). The performance of the company is dependent on the ability of the board of directors to implement sound management decisions. The operations of the board are strong band employee transparent ways.
In this way, the board of directors is able to develop strategies that enhance performance of the company. Since the board is the overall financial controller, there is a continuous assessment and evaluation of the board. This is critical in maintaining the performance of the company. The functions of the board include setting the objectives of the company. In addition, the board has ensured a transparent reporting system that is able to attract the confidence of the investors (Vander, 2009, p. 500).