A swot analysis is a strategic planning tool used to evaluate the, strength, weakness, opportunities and threats involved in a business project. The SWOT analysis is a business tool available in the tool box. Strengths and weaknesses focus your business to look internally at what your business can do, Threats and opportunities are external; focusing on the conditions of the real-world. To develop your own SWOT analysis, consider each section with a certain degree of realism and be specific. These are the strategies
Consider your strengths relative to your competitors and from your customers' perspective.
Business location or product exclusivity
Patents or proprietary goods
An established distribution channel
It is far easier writing down your corporate strengths than weaknesses. Think of objections your customers raise during the sales process.
Limited human resources and staff
High cost of production
Products or service similar to competitors'
Lack of patent protection
A weak brand name
Poor reputation among customers
Your small business is influenced by the external environment, such as: legal, political, technological, and cultural factors.
· government regulation softening
· development of new technology
· growing trend and customer base
* new substitute products emerging
* price competition
* economic pressure
The SWOT analysis is a quick and simple tool to understand the overall big picture. It is the starting point of strategic planning.
Swot analysis will make the technique look much too esay.It includes powerful strategy, attractive customer service and attractive customer service. SWOT analysis helps in finding the crakes in steps of success of fill the properly. It would help to find out the trends and decide the specific objective.
SWOT analysis range is not wide .it can used only for a small range among many types of analysis.
Swat analysis ON Vodafone:
The name of the company comes from voice data phone and it sis chosen by company to reflect the provision of the voice and data service Vodafone networks can be found on almost all continents in Europe ,the Middle East, Asia, Africa and United States.es over mobile phones.
Swot has a long history as a tool of strategic and marketing analysis. No one knows who first invented swot analysis. Swot used to evaluate strength, weakness, opportunity and threats involved in a project or in a business venture. The aim of any swot analysis is to identify the key internal and external factors that are important to achieving the objective. Swot analysis groups key pieces of information into 2 main categories.
Internal factors: the strength and weakness are the internal factors.
External factors: opportunities and threats created by the external environment to the organization.
The main strength of Vodafone within the telecommunications market lies in its brand image and recognition. Vodafone life style currently enjoys a differentiating advantage that, if exploited properly, can offer a lead in competition. The presence of Vodafone in numerous countries within Europe as well as in all part of the world enhances this image. It allows customers to travel and enjoy easily the services of their home country operator. In the few countries that Vodafone isnot physically present (e.g. Norway) it has well‐established strategic alliances whichallow for a better service of mobile clients.
The expansion of Vodafone has been completed at the expense of direct control of its operations. The company grew through a process of acquisitions of national telecommunications companies (e.g. the acquisition of the third biggest Czech mobile phone operator, Cesky mobile) rather than organic growth. At the same time though, it implicitly imposed a centralized operational structure for the group, nominating the UK headquarters as the leading business unit running a much centralised marketing and handset procurement at group level. This has resulted in the neglect of local markets and local differences, allowing market share to be gained by smaller local competitors30. Due to the highly saturated Western European market this has resulted in an increase in the price elasticity of demand, with consumers becoming continuously price oriented. This has resulted in high customer churn rates reaching the level of 32.8% in the UK compared to O2's 24%31.
The telecommunications market, even though highly saturated in some region so offers great potential due to the ageing population and the sophistication of the consumers. It offers great opportunities through a careful market segmentation and exploitation of particular profitable segments. Moreover the company has undertaken its first steps in establishing strategic alliances to develop customized solutions for end‐users: Vodafone recently announced two new partnerships, one with supermarket group Tesco to launch an Tesco‐branded mobile service in the UK, and another with electrical retailer DSG International to provide mobile solutions to small businesses32. This could further been handed to avoid being a late‐entrant in this new method of distribution which offers access to a wide potential customer base.
The European part of Vodafone's market is characterised by existing high levels of Competition. Major brands such as O2 and T‐Mobile are exploiting the price sensitivity of customers and in this way they are building a stronger image and presence in the market. Indirect competition is also increasing further, through the Presence of Skype and other related (not only voice) Internet‐based services. This, Combined with the upcoming European legislative measures is expected to limit further the tariffs for the network providers imposing further need for price cuts
This could harm the bottom line profitability of the company.
A scan of the external macro-environment in which the firm operates can be expressed in terms of the following factors: It is used to describe a framework for the analysis.
• Political Factors
Political factors include government regulations and legal issues and define both formal and informal rules under which the firm must operate. Some examples include:
· tax policy
· employment laws
· environmental regulations
· trade restrictions and tariffs
· political stability
Economic factors affect the purchasing power of potential customers and the firm's cost of capital. The following are examples of factors in the macroeconomic economic growth.
· interest rates
· exchange rates
· inflation rate
Social factors include the demographic and cultural aspects of the external macroenvironment. These factors affect customer needs and the size of potential markets. Some social factors include:
· health consciousness
· population growth rate
· age distribution
· career attitudes
· emphasis on safety
Technological factors can lower barriers to entry, reduce minimum efficient production levels, and influence outsourcing decisions. Some technological factors include:
* R&D activity
* technology incentives
* rate of technological change
PESTLE analysis helps in analysing the external factors which may effect the working environment and it also avoid the wrong decision.
PESTLE analysis cannot be accurate as they keep on changing with effect of the external business environment.
PEST ANALYSIS ON Vodafone:
The PEST analysis is a framework that is used to scan the external macroenvironmentin which a company operates. These factors play an important role in the value creation opportunities of a company's strategy.
However they are usually outside the control of the company and must normally be Considered as either threats or opportunities . PEST is an acronym for the following Factors.
Vodafone is generally subject to regulations governing the operation of its business Activities. Such regulations typically take the form of industry specific laws and regulations covering telecommunications services and general competition (antitrust) laws applicable to all activities. It aims to encourage competition in the electronic communications markets, to improve the functioning of the single market and to guarantee basic user interests that would not be guaranteed by market forces. specturam lebaration has been one of the key issues in mobile regulation for a number of years. At its heart is the simple proposition that markets, rather than regulators, are better placed to decide the most efficient use of the spectrum. In September 2005, the European Commission published proposals for spectrum reform across the EU, including proposals to allow holders of spectrum greater flexibility on the use to which it is put, to allow holders to trade spectrum within a spectrum market and to improve harmonisation of certain bands. The European
Commission has proposed that these reforms be enacted by 20108. The roaming regulation will terminate after 3 years10.
The most common indicator for measuring a nation's economic activity is gross domestic product (GDP). This indicator covers the production activity of resident producers, calculated as the sum of gross value added from all activities/industries within an economy. A mild deceleration in global growth is expected because of the U.S. economic down turn in 2007‐2008 and tighter credit conditions in global financial markets. The offsetting effects of solid growth in Asia and Latin America, thanks in large part to resilient domestic demand growth and trade diversification, will keep world economic growth close to its potential. These same factors also will support growth in Europe, though at a considerably slower pace. The International Monetary Fund
Forecasts the growth of GDP in euro area as of 1.25% for 200913.
The EU and other regions are facing unprecedented demographic changes that will have a major impact on many areas of society such as social systems, consumption patterns, education, and job markets in the coming decades. People are living much longer and in better health, while fertility rates have dropped. These factors have resulted in the profile of the EU's population becoming increasingly older.
The evolution of the EU's population is part of a wider trend, as all parts of the world will witness demographic ageing over the next century. Nevertheless, while the population of neighbouring regions in Europe, Africa and the Middle East will start to age, they will continue to grow, as will the population of the United States. Despite its somewhat faster growth in recent years, the EU's population is
Developing at a relatively slow pace when compared with other world regions. Between 1960 and 2005 the world's popsulation more than doubled, rising from 3 024million inhabitants to 6 465 million. During the same period, the population of the EU rose by only 22.6% to 461 million inhabitants, which was equivalent to 7.1% of the world total.
Research and development (R&D) is a driving force behind attached to state‐funded R&D. In 2005, GBAORD, expressed as a Percentage of GDP, amounted to 1.06%, 0.74% and 0.71% for the United States, theEU‐25 and Japan respectively19. Economic growth, job creation, innovation of new products, and increasing quality of products. Government budget appropriations or outlays for research and development(GBAORD) are the amount governments allocate towards R&D activities. Comparisons of GBAORD across countries give an impression of the relative Importance
Valuation plays a key role in many areas of finance - in corporate finance, in mergers and acquisitions and in portfolio management. The value of the company can be directly related to decisions that it makes - on which projects it takes, on how it finances them, and on its dividend policy. Understanding this relationship is the key to making value‐increasing decisions and to sensible financial restructuring.
Globalisation is the integration of economic, political, and cultural systems across the globe it includes and investment markets to operate internationally.It have dramatically increased. Unprecedented changes in communications, transportation, and computer technology have given the process new impetus and made the world more interdependent than ever. The term globalization encompasses a range of social, political, and economic changes and it also the materials look at the main features of globalization, asking what is new, what drives the process, how it changes politics, and how it affects global institutions like the UN.
Globalisation has recently increased due to development in telecommunication infrastructure and use of internet. This process of globalisation has made the economy of one nation dependent on other nation because of which there has been increase of opportunity but on other hand there had been development of competition. Globalization expands and accelerates the movement and exchange of ideas and commodities over vast distances. It is common to discuss the phenomenon from an abstract, global perspective, but in fact, globalization's most important impacts are often highly localized. There is substantial evidence, from countries of different sizes and different regions, that as countries "globalize" their citizens benefit, in the form of access to a wider variety of goods and services, lower prices, more and better-paying jobs, improved health, and higher overall living standards.
It is a core element of globalization is the expansion of world trade through the elimination or reduction of trade barriers, such as import tariffs. It is source of economic growth for developing nations, stimulate job creation as industries sell beyond their borders and it also enhances the national competitiveness by driving workers to focus on those vocations. In the process of globalisation, Greater openness can also stimulate foreign investment, which would be a source of employment for the local workforce and could bring along new technologies—thus promoting higher productivity.
Protectionism might tend to reward concentrated, well-organized and politically-connected groups, at the expense of those whose interests may be more diffuse (such as consumers). It also reduces the variety of goods available and generates inefficiency by reducing competition and encouraging resources to flow into protected sectors. In the mean while the late 1980s, many developing countries began to dismantle their barriers to international trade, as a result of poor economic performance under protectionist policies and various economic crises.
Effects of Globalisation:
Globalisation has various aspects by which the world can be affected in several different ways.
In this processes Border access for different verities of foreign products for consumers and companies.
Financially the worldwide financial markets and better access for borrowing external finance.
Realization of global markets based on freedom to exchange goods and capital. The connection of these markets may lead in collapsing of a country economy.
In this processes living standards are passing to enjoy foreign products and ideas can adopt new technologies and practices and this leads to participate in a world culture.
Example of globalisation:
Identify the major factors that affect the motivation and job satisfaction of call centre agents and the study purpose is to determine how the effects of these factors varied in relation to the demographic and personal characteristics of call centre agents in Indian call centre companies. The research sample is 92 call centre agents selected on a voluntary basis from 12 call centre operations. The members of the research sample completed the Job in General Scale of the Job Descriptive Index.
Open the two factor model of motivation that is often confused with Maslow's hierarchy of needs. The two factor model divided the factors involved in an individual's organisational life into hygiene factors and motivation factors. Maslow's hierarchy of needs and Herzberg's two factor model are not identical. Herzberg (1966, p. 160) included such factors as compensation, working conditions, and so forth in the hygiene group. An unsatisfactory status of any of these hygiene factors could result in a disincentive for the individual to perform productively. By contrast, however, a satisfactory status for the factors would not motivate the individual to exceptional levels of performance. Herzberg's motivational factors included such things as opportunities to achieve, opportunities to gain responsibility, and so forth, as motivational factors in the organisational life of an individual, the absence of which would not result in any disincentive to perform. A satisfactory status for these factors would motivate an individual to seek exceptional levels of performance.
Globalisation seems to be gathering more and more momentum, it is also concluded that since 1980, globalization has contributed to a reduction in poverty as well as a reduction in global income inequality. It's very important for every nation, company and business to get globalised so that they can make profits and keep their economical status steady and avoid getting in to rescission by long distance.
"Strategy is the direction and scope of an organisation over the long term which achieves advantage for the organisation through its configuration of resources within a challenging environment, to meet the needs of market and to fulfil stake holder expectations". (Johnson and scholes). Strategy can also used to find out the external environmental factors, values and expectations in the market.
Michael porter says that industries are global and multi domestic industries, global is compete with each other everywhere and multi domestic is compete in national independently.
Strategy at different levels of business:
Strategy is fixed planning organisation it's ranging from overall business through to individuals in it. The following strategy will exit in the market.
It 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.
Business Unit Strategy:
It 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.
It 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.
Global strategy is appreciating that success demands a presence in almost every part of the world in order to compete effectively and Making the product the same for each market. It is also taking some advantage of customer needs and wants across international borders. Global strategy has some advantages like economies scale, lower cost, Co-ordination of activities and faster product development.
Multi - domestic strategy:
A multi-domestic strategy is involves in products tailored to individual countries Innovation comes from local R&D and decentralisation of decision making within the organisation.
In external environment, we always want to concentrate on the website and its resources.
In internal environment, we have to identify the potential things which are effecting the organisation like mismatch between activities. 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:
When we have to stay in track and to take the stock as well. The proper tools are break even analysis, stock analysis etc.
In this section the choices come into reality and to develop the goals and targets. Have to plan the things correctly and want to keep the graph down and have to maintain in proportionate manner. Plans should be passed from friend to friend. Helpful tools are strategic planning, goal and target setting.
The decisions which are taken not to be failed, if we failed then nothing were there in work.
Completely focus on the system but not on targets. Good ideas must not be wasted. Three essential skills for strategic planning are; change management, performance management, project management.
It ends the planning of strategic plans, once it is embedded in the organisation then we have to check how it working and how doesn't working as well. Evaluation time is ideal to take decisions on planning what step to take in future. Two essential things are; assessment and reporting, outcome assessment.
Strategic management is a broadest sense in this process three main steps are there.
Example for business strategy:
Sainsbury's, which was started in 1869, was the leading retailer in the UK, in 1995; Tesco overtook it to become the leading retailer of the country. Analysts were of the view that Sainsbury's ignored the growing clout of Tesco as its sales were growing. In early 2000, Sir Peter Davis was brought in as the CEO to help the company recover market share. He invested heavily in several initiatives to revive the company's share, but these did not prove successful. Sales started to decline slowly after 2002 and in 2003, Sainsbury's was pushed to the third position by the Asda
Sainsbury's made its beginning in 1869, when its first store was opened by John James Sainsbury and his wife Mary Ann Sainsbury at their home in Drury Lane, London. The store offered high quality food at reasonable prise .The store is always cleanliness, tidy and they are keeping the things in the store.
In March 2000, in an attempt to revive the company and get back market share, a new CEO, Sir Peter Davis was appointed in place of Adriano. Davis had earlier worked with the company between 1976 and 1984 and had handled marketing and buying operations. On March 29, 2004, King was appointed as the company's new CEO. He had earlier been employed with the food division of Marks and Spencer's since 2001, before which he had worked with Asda. King spent the first six months in the company reviewing the business completely. As part of his assessment program, he started a direct mail campaign reaching out to 1 million customers asking them for their personal feedback about the company's condition, their expectations from it, what they felt was wrong, and what they wanted improved. In March 2007, after two years of the MSGA plan being put into effect and almost achieving the targets, the company launched new targets for the period 2007-2010 to further bring growth and stability to the business.
Strategy is the process of developing and maintaining a strategic fit between the organisation's objectives and resources and the changing market opportunities. This is generally regarded as corporate planning because it deals with the whole organisation. Those organisations who regard maximum profit as orientation, they will probably put the profit in the first place when carrying out strategies with objectives. While those organisations who are customer oriented are likely to consider meeting customer satisfaction as their prior objectives.
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