Strategic planning & management assignment essay writing help on: Vodafone
Q??Vodafone Company strategic analysis??
Solution:
History of Vodafone
It can be seen that Vodafone was started on 1st Jan 1985 and after that Racal Planned Radio was again named as Racal Telecommunication of Group Limited. It has been analyzed that on 16 Sep 1991, Racal Telecommunication Group was demerged from Electronics Racal as the Group of Vodafone and the giant mobile telephony was born. It has been analyzed that the industry of mobile telecommunication is significantly young, as compared to other industries like manufacturing & oil. It can be seen that Vodafone is the major player in the telecommunication sector and has developed quickly. The industry of mobile phone has viewed as the huge deal of technical change & shall remain the same in the future also. In general, mobile phone was generally implemented for telephonic conversations. It can be seen that most of the text was among the people who already known each other & had exchanged contact numbers. As technology grown, it becomes possible to exchange the information among mobile & other devices through Bluetooth technology. The creation of 3G mobile technology is producing with a richer combination of content and offering more number of services. It is very clear that 3G feature help the numerous Companies in increasing of their sales revenue (Mulcaster, 2009)
Recent Developments
In Feb 2006, technologies of Huawei decided to supply the 3G handsets for the store of Vodafone throughout the 21 countries. After this, Microsoft & Vodafone decided to launch the European Window phone Email from the Vodafone. In recent time, 3G feature offered by the Vodafone lure the customers to make more use of Vodafone connection. Due to the offering of the 3G feature, the Company is able to produce more revenue as compared to last years.
Competition
It can be analyzed that the danger of substitutes for data & voice communication above the conventional network is reasonable. The lower cost of the calling of the computer would possibly capture over the distance calling. The more business & local call could be safer for the market of the mobile, even mobile phones with the capability to make use of internet to create calls that are being available and shall make a substantial share of market for the calls made. The threat & danger of substitutes may be high in the telecommunication industry. The danger of entry is greatly affected by the wealth of the current Companies. The well formed Companies have a robust support in the place of the market and a recognized brand name could create the entry for the New Company expensive (Moore, 1995)
Future Plans
It has been analyzed that the Vodafone has decided to initiate the Panafon plans for increasing the record count of GSA; the Company wants to expand the reach of GSA within the intranet. The Vodafone Company is about to combine another GSA to offer facilities of search to its wide Vodafone network Shops. It has been analyzed that the Company has decided to use Google Maps for offering visualization to its all nodes of Radio Network, relating with the significant information like with Node structure, trouble tickets & other information.
Vodafone Current Stock Movement of the last one year from July 2010 to Jun 2011
This is the current stock movement of the Vodafone Company during the last one year which shows how the stock of the Company moves from the last one year. It has been analyzed that the graph of the stock was fluctuating from July to Dec 2010, after that the stock of the Company got increased in 2011 and then again fluctuating from March to June 2011.
This is the Graph which shows the Performance of the Vodafone Stock during the last 10 years. It has been analyzed that the Stock of the Company was 180 pt in the 2010, 185 pt in 2006, 190 pt in 2008 and 140 pt in 2010. This shows that the stock of the Company was fluctuating from the last 10 years. The current stock quote of the Company is as follows share price is Rs 160.95; the investor can bid for 160.90, the investor can ask at the same share price that is 160.95 and at last there is change of (+0.47%) (Korah, 2006)
It is observed that the target of the Vodafone is to achieve market share of 20-25% by 2011 and to achieve penetration of the market more than 40%.It can be seen that the operational plan of the Vodafone company is focused on the mentioned objectives such as reducing the overall cost of networking, increasing the market share of the company and induced the customers to follow the corporate strategies.
Although, this author cannot see this company increasing its market share through al of the above alone, this sector is very evenly balanced between all of the other businesses in this sector like Movistar, T Mobile, Orange, Three Network as well as newer technologies like Skype which are going to want some of the market share.
The only way it can grow will be to understand its market and then acquire, merge or partner with companies that understand those markets. An example of this is its partnership in 2007 with Lebara which is a SIM only company that primarily targets the immigrant communities in Europe.Conclusion
It can be analyzed that Vodafone Company is the major player in the telecommunication industry. In this report, three things have been analyzed for the financial analysis such as stock movement of the Company from the last 10 years, Ratio analysis of the Company of the last three years and the condensed balance sheet, income statement and cash flow statement of the last four fiscal years. The recent share price of the Vodafone stock in 2011 is Rs 160.95 which shows the good value of the Company (Daniel, 2010).After doing the analysis of the last three years financial ratios it has been observed that Current ratio of the Company had increased in 2011 which gave the good indication to investors that the Company is able to pay short term liabilities but after that the Company current ratio in 2011 still did not the standard criteria of current ratio. Other profitability ratios like Gross Profit and Return on Equity had decreased in 2011 which gave bad impression among investors because of increase in Sales. The Revenue of the Company had increased from the last four years but at the same time operating expenses of the Company had increased which lead to the reduction in the income of the Continuing Operations. After done the analysis of Cash Flow Statement, the Net Cash from the Operating Activities had increased from 2008 to 2010, but got decreased in 2011 from 13064 to 11787.
The investor should not invest in the Vodafone Company; the current ratio had increased in 2011 but still did not meet the standard criteria.
The Quick Ratio is 0.60 in 2011, but this ratio does not meet the standard criteria of Quick Ratio. In short, it can be said that the Company short term position is not good.
The profitability ratios of the Company like Gross Profit Ratio, Return on Equity, Return on Assets had decreased in 2011 which shows that the Company does not utilize the shareholders Fund & Assets Properly. It has been analyzed from the Cash flow Statement is, the Cash flow from operating activities had decreased in 2011 which shows that the Company had incurred more cash on operating expenses. The net cash outflow from financing activities had increased which shows that the Company had paid debt and other liabilities. It can be said that the Vodafone is doing very well in the telecommunication Industry because of 3G feature and less call rates. But at the same time, after analyzing of the financial statements it is not advisable for the investor to invest in the Vodafone Company.
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