FTSE stands for The Financial Times Stock Exchange and 100 mean number of shares Index. The hundred largest companies and its shares are listed on London Stock Exchange (LSE) who has huge Market Capitalization. FTSE100 is always calculated in real time with prices which are updated every 15 seconds.
Let us discuss the two FTSE100 companies.
VODAFONE GROUP PLC: - Mobile communication industry.
ASSOCIATED BRITISH FOODS: - Food industry.
Vodafone is the most leading mobile telecom company Globally. In 1982 the company was founded as a joint venture company. It works in the competitive market. As per research its illustrates that in 1984 it was known by Racal Telecom limited as an subsidiary of Racal Electronic Plc and 20 percent of Rascal Telecom Plc capital was offered to public in 1988. It has grown rapidly. And then it's been demerged in 1991 and again name as its former name as VODAFONE GROUPS PLC. In UK it has more than 14 million users. Vodafone operates globally more than 25 countries. As its a public company which is listed on London Stock Exchange & New York Stock Exchange. In UK Vodafone operates around 300 stores of its own.
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Vodafone name was derived through VOICE DATA FONE.
The company operates more than 25 countries worldwide and hence brand image of Vodafone is very strong. Every customer know about vodafone because of his strong image in market
In UK, Vodafone operates more than 300 stores of its own.
BOARD OF DIRECTORS:
Sir John Bond: - As a Chairman.
Michel Combes: - As a Chief Executive Officer.
Vittorio Colao: - As a Chief Executive.
Partnership agreement with leading company such as Google, Samsung, RIM
WHAT IS BUSINESS ENVIRONMENT:
Business environment are of two types. They are internal environment which within in the firm and are under control of the firm and external environment are which are uncontrollable as they are external factors.
Microenvironment: Microenvironment is an internal environment of an organization. Microenvironment can be controllable as it's within organization. It's mainly included of: Staff, Supplier, Corporate culture, Intermediates, Channel of distribution, Shareholders etc.
Macro-environment: Macro-environment is an external environment of an organization. Macro-environment is uncontrollable as it's an outer element. It's mainly included of: Political aspects, Religion, Economical changes, Change in taste and preference of customer/consumer, Change in technologies etc.
MARKET CAPITALIZATION: Market capitalization means the size of the company. Total Market capitalization of vodafone, which is more than £69.0 billion. (2010)
FTSE100: Vodafone is the third largest listing in the FTSE100.
38th Largest world based company in Market capitalization.
REVENUE: Vodafone revenue is more than £44000 million. (31 march 2010)
ISSUED SHARES: The Company issued shares around £58000 million, which are listed in NASDAQ
NO OF EMPLOYEES: More than 83000 (2010), which increased in, compare to 2009.
UK CORPORATION TAX: Corporation tax paid by the company in 2010 was around £40 million.
TAX RATE: The tax rate was 28% in 2010 and 30% in 2008. Hence the price of shares was quoted in sterling.
In 2008, the announce the completion of there acquisition of more than 68% stake in Ghana Telecom
In 2007, vodafone declare the completion of there acquisition of HUTCH ESSAR for $11 billion USD.
UK company share of vodafone is around 48.8% in 2010.
70% of mobile penetration, globally.
Vodafone foundation Programme has invested more than £40 million for damages by natural calamities.
FREE CASH FLOW: £7.2 billion.
Adjustable operating expenses were £11.5 billion, which decreased by 2.5%
TAX 2009-2010: - Vodafone has paid tax around £2.7 billion globally
To understand more in detail, we will do SWOT & PEST analysis of Vodafone Group Plc.
Swot analysis includes of internal environment and external environment. Strength and weakness are internal factor and opportunities and Threats are external factors.
GLOBAL BRAND: First strength of the company is that it's an international company and its brand known as globally.
BRAND IMAGE: The brand image of company is very strong
MARKET LEADER: As company has good revenue and goodwill of company is also very good, Vodafone can be a market leader if they do more and more progress.
Always on Time
Marked to Standard
GOOD REPUTATION: The company has good reputation in the market & it's very well known by the consumer in the market worldwide, Hence It's the goodwill of the organizations is very strong.
TRAINNED STAFF: As the biggest strengths of the organizations are trained staffs. If staffs are well trained then company can achieved its goal easily and can cooperate easily with customer.
GOOD EXPERIENCE: Vodafone company has very good experience and good knowledge related to communication sector.
FOCUSE ON CUSTOMER: They mainly focus on customers to satisfy their needs and wants. According to them customers are the hearts of the business.
LESS MARKET RESEARCH: The first weakness is that the organization is not doing market research. While doing market research, organization comes to know where our organization stands. What is the position of our organization in the market? Market research methodology also gives idea about the customer/consumer taste and preference and human needs and wants
GOVERNMENT INTERFERENCE: As it's a public limited, there will lots of interference of government that affects our business directly or indirectly.
LOW PENETRATION IN RURAL AREA: As company is running good globally but still there is less mobile penetration in rural area and there is also very low network coverage area.
INNOVATIVE PRODUCTS: As the company's financial position is really well so they have good opportunities to innovate new products with new features, which are different than there competitors.
TAKEOVER: The company goodwill is so strong and its an leading market, the company had an opportunity to takeover his competitor such as T-mobile, O2 etc.
DIVERSIFY IN NEW MARKET: As they company market capitalization is very good, they can diversify in new market.
Competitors such as T-mobile, O2, Docomo, Airtel, Virgin mobile etc.
Tariffs: change in tariffs is another threat for telecom industry.
Threats from handset manufacturers. Other Internet based companies.
Threats from other competitor such as software providers.
PRICE STABILITY OF THE COMPETITORS: The firm has no idea what the price strategy of there rival competitors. As it's a confidential matter.
TECHNOLOGICAL CHANGES: As in every organization there are always certain changes in the technology. As new innovation of technology also effect the organization as technology keeps on changing. For example, Computers replaced typewriter. Sometimes its threat for company because employee cannot accept it immediately
CHANGE IN LAW, CUSTOMS & DUTIES: The rules and regulation keeps on changing which effect the organization indirectly and in same way different customs, duties and beliefs also affect organization.
1) POLITICAL FACTORS: The organizations are always effected due to political and legal matter as Rules & Regulations are always keeping on changing. Due to change in government policies, the organization has to face many hurdles and risk
It's mainly include of:
RAISING INTEREST RATE: Due to rise in interest rate, organizations have to face uncertain situation. As the interest rate keep on changing. For instant, Tax on National Insurance, If its increase by one percent. It will directly impact on employee as well as employer of theorganization.
REGULATORY BODIES/PROCESS: We should also take into consideration that Regulatory bodies affect business indirectly.
WARS, TERRORISMS & CONFLICTS: Due to man calamities like wars, Terrorisms etc also affect organization whether its wide scope or narrow.
CHANGE IN FOREIGN POLICIES etc: Another main reason is change in foreign policies as the policies are always keeps on changing.
2) ECONOMIC FACTORS: The business also effects due to economic factor. We should always take into consideration of economic environment because it's also had bad impact on organization.
Its mainly includes of:
TAXATIONS: As per economic point of view, Government taxation has played a vital role, which always affect organization, as taxations are never be certain. And due to rapid changes in taxation, organization has to suffer from heavy loss.
INTEREST RATE: Interest rate is rates, which are paid by the borrower for the usage of money. Borrower has to pay interest rate to the individual or to the financial institution. (Lender). Interest rate are those factor, which are uncontrollable, as they are not in the hand of organization, Hence they had to face uncertain risk. Today Interest rate in UK is 3.2%. Rate released in June 2010.
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BASE RATE: Base rate is the rate, which has been rated by the Central Bank. Base rate in UK is 0.5 percent. If Base rate increases than lending rate, commercial rate and loan rate will decreases.
INFLATION RATE: Inflation rate means there is an increase of percentage in the price of goods and services in year or annually. Interest rate in UK is 3.2 percent in June 2010. In other words there is an increase or decrease in price of products or services.
UNEMPLOYMENT RATE: In UK unemployment rate is 7.8 percent in march 2010.
Thus, there are many other economic factors, which are as follows:
International trade & monetary issue etc.
Purchasing power of customer/consumer.
3) SOCIAL FACTORS: We should also take into consideration the social impact on the organization. We should check out that how Households, consumer, communities behave and their beliefs.
Its mainly includes of:
LIFESTYLE & TRENDS: As there is always change in human lifestyle & trends, which are uncertain, and hence also change in human wants and needs.
4) TECHNOLOGICAL FACTORS: As there is rapid change in technology, due to rapid change in technology, the company had to suffer from heavy loss because its affect the manufacturing process directly and production innovation affect a business.
5) ENVIRONMENTAL FACTORS: Environmental factors includes of Global warming and environmental issues such as change in climate and weather, change in temperature etc have great impact on the organization as they are not in control of any organization.
LEGAL FACTORS: legal factors are those factors, which are related to the legislation. It's including of competition law, health and safety, employment law etc.
STOCK CHART OF VODAFONE GROUP.
August 6 2010
2 June 2010
6 August 2010
12:33 Aug 8 2010
Source: Thomson Reuters
1) Vodafone group plc is having global image but still they had not reached to rural area in developing country. For example, India is an developing country but still rural people don't get advantages because there is less network coverage area.
2) The organisation has very good income so they should adopt new promotional activities and technologies.
3) To be a leading market leader, the organisation should do market research as much as possible. By doing market research we can come to what are trends and issues in the market, what are needs and wants of the customers and yhen how to satisfy them.
4) To sustain in the market the organization should maintain customer relationship after sales as well. They should also give special offer, gifts or coupon on purchases.