Vodafone Company - Developing and Implementing Strategic Plans - Case Study Example

Introduction Strategic plans in an organisation are quite imperative in enhancing overall success therein. This paper looks at Vodafone Company in relation to developing and implementing strategic plans therein. The paper finally discusses the process that will be used in monitoring and evaluating the strategic plan. (Glen, 2009) Improved mission statement Vodafone’s mission is to lead the global market mobile communication industry. To ensure that customers get excellent services and products for their money. To ensure that customers’ lives are enriched through our products and services and helping global customers enjoy mobile communication. (Houben, 1999, P. 125-139) Awareness of mission statement It is never enough to put in place a mission statement in an organisation; plans have to be enacted and implemented. In order to make employees in Vodafone Company aware of the mission statement, all new employees will go through induction training where the Company’s mission will be clearly elaborated. Each office and department in the Company will have a banner showing the Company’s mission statement. All employees will be having four trainings in a year which are specifically geared towards making them understand Vodafone mission and selling the idea to them. All employee appraisals will be done in relation to the Company’s mission. This will help them to be committed to it in their day to day activities. (Houben, 1999, P. 125-139) Source of competitive advantage Analysis of Vodafone Company shows that the source of its competitive advantage is in its quality products and services. This has enabled the Company to penetrate many global markets and to have a wide and enviable market share. Resources, capabilities, and core competencies There are various resources, capabilities and core competencies that Vodafone uses to achieve its competitive advantage. One of the key resources in this Company is human resources. This Company is very keen on its recruitment policies. This Company only employs skilled workers in each of its department as these are very essential in relation to delivering quality products and services. (Glen, 2009) After a thorough recruitment process, they are also trained specifically to handle diverse production processes in the Company. The Company’s investment in up to date technology equipment helps it achieve its competitive advantage. Technologically advanced equipment helps employees to have effectiveness and efficiency in their day to day work. Other core competencies in Vodafone include innovations in relation to internet and wireless communication strategies. The management team is also highly skilled and developed to motivate and manage employees towards achievement of set goals. (Corti, 1998, P. 23-56) Sustaining competitive advantage in future Any competitive advantage in an organisation has to be sustained so that the Company remains to be a market leader. The management team in Vodafone Company is quite aware that it is easy to become a market leader but quite challenging to maintain market leadership. In order to sustain its competitive advantage the Company has a research and development department where innovations are carried out. In this department, new ideas are stimulated, build, tested and later on launched hence sustaining competitive advantage. The Company also needs to be on the look out on the market on new developments and technologically advanced equipment and machineries and adopt them in the production process. (Glen, 2009) SWOT analysis SWOT analysis refers to analysis of a Company’s strengths, weaknesses, opportunities and threats. One of the strengths of Vodafone Company is its technology. This Company’s technology has been changing since the year 1991. Its advanced technology is highly evident in the Company’s quality products. Technology change in provision of voice and data services in Vodafone has been hi-tech and has been enhanced by the fact that the telecommunications industry has really benefited greatly with internet and ICT. They include communication technologies such as GPRS and GSM. It has branches in more than more than 27 countries and this is part of its strength. Despite the strengths in Vodafone Company the Company also has various weaknesses. Research shows that it has failed to enter into new global markets apart from the one it has already acquired. This is highly attributed to strict trade tariffs in various international countries. Critics assert that the move by Vodafone management to retrench majority of its workers has led to challenges in maintaining quality products and services. Most employees are not actively involved in goal and objective setting and this has resulted in some level of mistrust in the organisation. These issues need to be seriously looked into by the Company’s management. Vodafone Company has opportunities of forming new strategic alliances apart from the one it has. This will enhance its competitive advantage. (Corti, 1998, P. 23-56) It also has opportunities of entering new markets such as China and India since the demand for telecommunication products and services is good. Vodafone just like any other Companies faces threats from its competitors such as Deutsche Telekom AG, Orange, Telefonica O2, Optus, Indosat, China Unicom, Idea, China Mobile, PCCW, Telecom Samoa Digicel, Maxis Communications, Bharat Sanchar Nigam Limited, Telstra, Reliance Communications, Spice, Aircel and Telkomsel etc (Glen, 2009) Value chain analysis This basically refers to the analysis of a chain of events or activities in a Company that lead to the delivery of products and services. The chain can be explained to have stages that a product passes through and at each stage some value is added to it. Vodafone Company has six main stages of production process. The first is research and development, design of services and products, production, sales and marketing, distribution and finally customer service. (Houben, 1999, P. 125-139) All these are very essential in ensuring that valuable goods and services reach final consumers. Research and development department in this Company carries out innovations and research, after accruing ideas they are then designed into products and services, the designs go to the production department and production is carried out. The products are then marketed, distributed and finally customer service is carried out to ensure that customers’ questions are answered accordingly. (Glen, 2009) PEST analysis This is the analysis of the external environment in terms of political, economic, social and technological factors. Analysis of the global environment shows that Vodafone is likely to be negatively affected by political problems therein. This includes GATT policies that may not augur well with the Company’s business strategies. The environment also depicts a situation of global economic crisis. This means that prices of raw materials and final products continue to skyrocket. This leads to poor purchasing behaviour among consumers. This is considering the fact that most of them are channelling their finances into basic needs such as food shelter and clothing. This may result in low sales for the Company. (Houben, 1999, P. 125-139) Sociological environment is quite appealing and may give Vodafone the strength to forge on. Many people are opting for up to date telecommunications. The trend is to keep up with fashion in relation to telecommunications. This will definitely enhance the sales of Vodafone Company as long as products and services are trendy, fashionable and technologically advanced. Technology in mobile telecommunications is moving very fast. This can have positive impact on Vodafone Company when it adopts this high and up to date technology. This can result in massive sales for the Company. (Glen, 2009) Organisational objectives Organisational objectives need to be specific, achievable, simple and easy to understand. They also have to be geared towards mission and vision of the Company. Vodafone can have objective like; to achieve 40% more sales in coming year, to open three branches by the end of the business year and to increase customer base by 50% in the year 2010. All these are specific, achievable and geared towards the Company’s mission. (Houben, 1999, P. 125-139) Industry analysis There are barriers to entry for new entrants in this market. This includes strict trade tariffs and tax policies that may be unfavourable for new entries. This market is bound to be more competitive in future as current industries strive to appeal to diminishing market. The customer base is no longer so lucrative and all Companies will be striving to increase customer base and sales. Using porter’s model, various trends are evident in the industry. As buyer power is continues to diminish, government policies become strict. (Glen, 2009) There is high supplier power and threats emanating from substitutes. Competitors include; Deutsche Telekom AG, Orange, Telefonica O2 China Mobile, PCCW, Telecom Samoa Digicel and Maxis Communications. Their strengths are in up to date technology and distribution strategies. Weaknesses are in lack of skilled manpower and lack of up to date equipment. Vodafone still has opportunity to form strategic alliances with suppliers and competitors. This will enhance its competitive advantage. (Corti, 1998, P. 23-56) In developing strategic plan, start with putting in place mission statement and goals. Then carry out external and internal industry analysis. Compare SWOT features with strategic choices, there is strategy implementation. Strategy implementation starts with designing organisational structure and control systems, matching strategy, the structure and controls. Finally management of strategic change is carried out. The feedback loop will be used to monitor the extent to which the goals and objectives are achieved. (Corti, 1998, P. 23-56) Conclusion Vodafone is one of the leading Companies in the telecommunications industry. Strategic plans are very essential in achievement of goals and objectives. They also have to be closely monitored using the feedback loop among other strategies Read More