At VODAFONE plc group

Index
Business Economics

Business economics at Vodafone plc group

Strategy and process Strategic management

Strategies at Vodafone plc group

Strategic priorities of Vodafone International Marketing International Marketing in Vodafone plc group

Business Economics
According to McNair and Merriam (1941), Business

economics is defined as the economic modes of thought for analyzing business situations.
Business economics is the integration of theories of

economics with the business practices in order to facilitate decision making and forward planning by the management.

Uses of Business Economics

Helps in Optimizing resource allocation.
Competent model building. Serve as a integrating agent.

Focus on social obligations.

Characteristics of business economics

It is micro in nature. Principles and concepts of theory of firms or economies

of firm are employed.

Business economics is concrete and realistic.

Normative in nature, not positive. It simplifies the relationship between different variables,

irrespective of evaluating its benefits.

Business Economics at Vodafone plc group

Demand analysis and forecasting Vodafone industry is

estimated to have modest growth in the FY 2012. but, because of the global slowdown and unfavorable macroeconomic conditions, the level of demand for the existing and new products may fall.
Production and cost analysis Vodafone plc group

offers cost advantage all around the world through their scale and scope. In order to have balance between the pressure competition and inflation, Vodafone has forayed cost reduction program of 1.0 billion over 3 years.

Continued .
Pricing policies and practices Vodafone derives pricing

policy from their competitors by taking in to consideration various factors such as sensitive information about the prices and costs of the competitors, discounts, rebates and signing agreements for fixing the product prices etc.
Capital management - Vodafone group has three internal

debt protection ratios are approved by the board i.e. retained cash flow to debt, Net interest to operating cash flow plus dividends from associates and Operating cash flow to net debt.

Strategy and process

Strategy is a detailed plan to attain success, the bunch of decisions and initiatives, which are chosen to realize the long-term goals. There are three different level of hierarchy of strategies and theses are: Functional Strategy Operational Strategy Corporate Strategy

Strategy formulation process

The strategy formulation process involves 6 main steps:
Setting objectives Evaluation of Organizational Environment

Setting the Quantitative Targets

Aiming in the context with the divisional plans Performance Analysis

Choice of Strategy

Strategic management
Strategic management is defined as recognizing and describing the strategies that the managers carry on in order to attain the competitive advantage for their organization. Many importance can be availed by formulating well strategy. Some of the benefits are explained below: Reduces aggravation Formulated on the basis of rationale and logics Helps in Growth of the business Show great concern about the future.

Strategy at Vodafone
The Broader corporate strategy at Vodafone has following three components:
Sustainable Societies Eco-Efficiency Ethical Business

Strategic Priorities of Vodafone

There are many strategic priorities of Vodafone plc group which they aim to excel in the market. Some of them are as follows:
Mobile data Emerging markets Enterprise and total communications New services

International Marketing
International Marketing is defined as that series of

activities which satisfies or accomplish the needs of individual or groups beyond the boundaries of the nations
It is more complex and complicated in comparison with

the domestic marketing. International marketing involves four phases i.e. No-direct foreign marketing, infrequent foreign marketing, regular foreign marketing and the last phase is international marketing

International marketing at Vodafone

Same strategies for marketing is applied by the company in all geographic locations. Some of the common strategies adopted by them are: To increase dispersion of new data services, i.e. Vodafone live. Maintaining present customers. Innovative services or technologies in the process. To grab the extra buyers. Continuous providing best quality as well as improving the operational efficiency in Vodafone.

Marketing strategies of Vodafone

Market penetration
Market development Diversification strategy

4 Ps of Vodafone
Product It deals in messaging and voice services.

Company also sell their own brand handsets all around the world. Price Economical price is charged by the company, but heavy burden of taxes may increase the prices. Place It sells their products and services all around the world through retailers shelves and outlets. Promotion In order to attract and retain customers, company regularly offer new packages like, Vodafone Email Plus, Music Download, and Vodafone PC backup along with Vodafone 360 store.

Conclusion
From last so many years, Vodafone is dealing only with

the telecom operations. But due to globalization and aim to extend their global reach, company adopted diversification strategy . This strategy was implemented so as to meet the different perspectives of the buyers in the global market. To cater with the other competitors in the world market, Vodafone commenced its operations and started providing broadband, mobile, internet along with financial services also. The company is now enduring to take grip in the eleven countries.

References
Books, articles and Journals
Allen, A.C. 2010. Strategic Management: From Theory to Practice. John

Szilagyi publisher. Burgelman, R.A., Christensen, C.A. and Wheelwright, S.C. 2008. Strategic Management of Technology and Innovation. 5th ed. McGraw-Hill. Plunkett, J. W. 2011. Plunkett's Telecommunications Industry Almanac 2006: Your Reference Source to the Telecom Business. The University of Michigan: Plunkett Res ltd. Brady, D. 2010. Essentials of International Marketing. New York: M.E. Sharpe. Fifield, P. 2012. Marketing Strategies. 3rd ed. UK: Routledge. Kleindl, B., 2007. International Marketing. Cengage Learning.

Continued
Online references
Ang, R. 2011. Vodafone Global Telecommunications: Optimizing

Operations. [Online]. Retrieved from: <http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1861415> [Assessed on 4th Sep 2012]. Bichta, C. 2001. The UK Telecommunications Industry. Available at: <http://www.bath.ac.uk/management/cri/pubpdf/Industry_Briefs/Telecomm s_Constantina_Bichta.pdf>. [Accessed on 4th Sep 2012]. Gohring, N. 2006. Competition pressures Vodafone results. [Online]. Available at: < http://www.infoworld.com/t/communication-andcollaboration/competition-pressures-vodafone-results-316>. [Accessed on 4th Sep 2012]. International marketing. n.d. [Online]. Available at: <http://www.marketing.org.au/images/cimages/internat.pdf>. [Accessed 4th Sep 2012].

Thank You