Vodafone Organization

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Contemporary Management, Mid Term 2012-07 Vodafone Egypt Organization

description

CM assignment

Transcript of Vodafone Organization

Johari self awareness model

Eslsca University

Vodafone organization profileVodafone is a leading global player in mobile telecommunications. It operates in over 26 countries worldwide. Vodafones story in Egypt began in March 1998 when the Egyptian Telecommunications ministry announced the Misrfone group (of which Vodafone owned 30% share) was awarded the second license for GSM operations in Egypt. This decision was part of the move to privatize and liberalize the Egyptian market at the time. The first license was given to the national incumbent which had launched the first mobile services in 1996 (the company is now called Mobinil). In 2007, the telecommunication market grew further and became even more competitive when the third entrant to the market Etisalat was awarded the third license for GSM operations.

Vodafone has gone from strength to strength over the years and by beginning of 2011 it had become not only the market leader in terms of revenue but also the number one network in the largest customer base.

Vodafone now serves more than 38 million customers and is proud to offer the best advanced technology for its customers, the best working environment for its people and the strongest corporate responsibility for its community.

As part of its global strategy to become a total communication provider, the Egypt business acquired 51% of Raya Telecom in September 2006, Which offered a variety of resources that would help Vodafone expand. Raya had a solid experience in the fixed-line data communication field and proved an ideal match for Vodafones growth strategy, The remaining portion of Raya telecom was acquired in June 2007 (full ownership).2006 saw further expansion for the team in Egypt when they launched their renowned off-shore operations under the name of Vodafone international services. Which is dedicated to outsourcing business process and IT services for Vodafone operators and beyond. Its 2,200 proffesionals collectively speak 10 different languages and provide world class customer and technical support for customers in 80 countries.

In 2008, Vodafone expanded with the acquisition of Sarmady which dominated some of Egypts most popular internet content and services, fixed and mobile including sports, film, music, city guides, classifieds and social networks. Sarmady put Vodafone in the forefront of data innovation in the market, bringing significant growth in the mobile data market.Vodafone is more than just a business, it is a group of people who recognize the impact that commercial operations can have on society, its stakeholders and the environment.

Vodafone is proud to be considered a leader in corporate social responsibility in Egypt with its aim to connect and develop the community, accelerating the countys advancement.Vodafone external environmentEconomic and PoliticalEgypt is currently undergoing a political and constitutional process of modernization, the most extensive in its modern history yet to be carried out. As Egypt experienced profound change and daunting political and economic challenges in 2011. After the 25 January democratic uprising toppled the authoritarian regime. While the Egyptian economy was generally resilient to the worldwide economic and financial crisis, it was severely affected by the people's uprising, the subsequent social unrest as well as by the war in neighboring Libya. Revenue from tourism, representing 11% of GDP fell by about a third, and international investor confidence was dented, leading to large outflows of portfolio investments and to diminished Foreign Direct Investment. The Balance of Payments, led mainly by capital account deficits, has deteriorated markedly during the period. As a result, the stock of foreign reserves halved since January 2011 in the face of strong depreciation pressures of the Egyptian pound. Access to external sources of financing was essential. Official unemployment, already high in previous years, increased to 12.4% by end 2011. The economic environment in Egypt is set to remain very difficult over the next year, Vodafone said, with weak consumer demand, a harsh regulatory backdrop and ongoing competition creating material barriers to growth. The Egyptian government has passed several laws with the aim of smoothing the way for investors in the ICT industry in Egypt. Egypt represents a low cost base, especially after the local currency was floated. Egypt has a skilled and competitively cost-effective human resources pool.TechnologicalVodafone Egypts primary aim is always to be the best mobile network operator in Egypt, The highly skilled technology professionals work tirelessly to develop state of the art architecture of Vodafones core voice, data, transport and fixed networks. In order to provide customers with secure, reliable, highly available and efficient enterprise services. Vodafone is currently deploying the latest Mobile broadband technology in Egypt so the customers would be able to enjoy to data speed up to 43.2 Mbps. Socio-culturalEgypt has a population of more than 75 million. About 65% of Egyptians are under the age of 25, and more than 15 million young Egyptians are currently in education (primary, Secondary and technical). Meanwhile, over 300,000 university students graduate each year, as do more than 1.06 million high-school students. More than 25,000 Egyptians graduate each year from technical universities, more than a third ofwhom speak two or more languages.

Vodafone stakeholders Opinion formers, Experts and Non-Governmental Organizations Vodafone engage with opinion formers and experts through focus groups on climate strategy and on mobile advertising to obtain feedback on strategy and reporting. Vodafone regularly consult with NGOs when their campaign or focus is relevant to business. Vodafone engage with NGOs on specific issues included: 1. Piloting mobile aid payment transfers with humanitarian organisation Concern Worldwide. 2. Engaging with the Carbon Disclosure Project on climate impacts in supply chain.Governments and regulators Vodafone engage with governments and regulators to inform them about the nature of business and industry, and Vodafone team develop positions which outline how they believe policymakers should approach specific issues.Consumers Perception questions are included in regular surveys to evaluate Vodafone reputation in markets. Vodafone conduct consumer research on specific issues. For example, in 2008/09, Vodafone conducted surveys to gauge customer satisfaction with Vodafone Passport regarding roaming costs in Europe and to assess consumer attitudes towards mobile advertising.Investors Vodafone meet regularly with investors to discuss business issues, through one-to-one meetings and an annual investor road show with the group director. The issues raised spontaneously most frequently in these discussions were climate change and access to communications for people at the base of the economic pyramid.Local communities Vodafone engagement with the communities is mainly focused on the responsible deployment of the network.Employees Vodafone engage with employees regularly, both informally in team meetings and more formally through an annual People Survey and Performance Dialogues. Also through Vodafones European Employee Consultative Council, which meets at least three times a year.Industry organizations Vodafone work with a range of industry organizations (University of Cambridge program and World Business Council and CSR Europe and the European Alliance). Suppliers Vodafone work with its suppliers to improve business standards in the supply chain through qualification process and regular assessments, as well as capability-building projects with individual suppliers.Vodafone core valuesVodafone core purpose Is to connect people and communities and Accelerating the advancement of Egypt.

Vodafone has a unique can-do culture Vodafone do things The Vodafone WayVodafone Way is Vodafones culture, Its Vodafones way of doing things and working together as ONE team around the world.Vodafone want to be one of the worlds most admired brands by living the Vodafone way:

Customer Obsessed We are passionate about exceeding customer expectations. Ambitious & Competitive We bring energy and passion to our work and always aim to beat the competition. Innovation Hungry We create and deliver new products, services and ways of working that delight our customers. One Company, Local Roots We work across Vodafone to achieve the best outcome for customers, employees and shareholders.All this would not be possible if we did not operate with Speed, Simplicity and Trust.

Speed We drive speed to market. We relentlessly prioritise and pursue the outcomes that matter to our business

Simplicity We make things simple for our customers, partners and colleagues

Trust We are reliable and transparent to deal with. We deliver for others and trust others to do likewise.Vodafone code of ethicsCompliance with the law Vodafone comply with the provisions of all applicable domestic and international laws and appropriate standards and principles.

Financial integrity We will provide the best possible return for our shareholders over the longer term. We will base our investment decisions, acquisitions and business relationships on economic criteria but will also take into account social and environmental considerations.

Public policy We will voice our opinions on government proposals and other matters that may affect Vodafone and our stakeholders. We will not make gifts or donations to political parties or intervene in party political matters.

Communications We will communicate openly and transparently with all our stakeholders within the bounds of commercial confidentiality. We will protect confidential information from improper disclosure, and any authorized communication of confidential information should be limited to individuals who need it to carry out their work.

Customers We will value the trust our customers place in us and will safeguard the information provided to us.

Employees We will base relationships with and between employees on respect for individuals and their human rights and will not tolerate child labor. We will not accept any form of discrimination, harassment or bullying. We will pursue equality of opportunity and inclusion for all employees through our employment policies and practices.

Environment We will commit to protecting the environment. We will minimize our use of finite resources (such as energy, water and raw materials) and the release of harmful emissions to the environment. We will seek to improve the environmental performance of the products and services we provide.Communities and society We will engage with local communities to help us understand and respond to any concerns they may have, for example in relation to network deployment. We will always provide our stakeholders with access to correct, relevant and current information and build trust through integrity, transparency, honesty and objectivity. We will invest in society in a way that makes effective use of our resources, including support for charitable organisations.

Health and safety We will protect the health, safety and wellbeing of our customers, employees, partners and the communities in which we operate and disclose any information that comes to our knowledge that clearly demonstrates that any of our products or services breach internationally accepted safety standards or guidelines.

Individual conduct We will act with honesty, integrity and fairness in our dealings both internally and externally. We will not tolerate any form of bribery, including improper offers of payments or gifts to or from employees. We will avoid any contracts that might lead to, or suggest, a conflict of interest between personal activities and the business. We will neither give nor accept hospitality or gifts that might appear to incur an obligation. We will pursue mutually beneficial relationships and seek to promote the application of our Business Principles with our business partners and suppliers.Vodafone corporate social responsibilityVodafone is proud to be considered a leader in corporate social responsibility in Egypt with it aim to connect and develop the community, accelerating the countrys advancement. Vodafone is one of the first corporate companies in Egypt to establish a department dedicated to Corporate Social Responsibility activities. This reflects the commitment to Corporate Responsibility at the most senior level, and how it is embedded into Vodafones business. The department was established in 2004 and has since been engaged in philanthropic and community support projects.Vodafones CSR covers a wide range of activities:

Environmental issues (recycling, waste management, and network deployment)

Education development

Community support programs

Health support programs

Employment engagement programs to encourage a community spirit among our people2011 saw the launch of the Vodafone Foundation Literacy Initiative, a nation program (in cooperation with UNESCO) to tackle a major problem in Egyptian society, illiteracy. The initiative aims to eradicate illiteracy among 17 million Egyptians over the next 5 years.

The team in Egypt is proud to be helping address a basic human need which can help the advancement of Egypt today and for generations to come.

Vodafone Corporate governanceDirectors and Organization The Companys Board of directors presently consists of thirteen directors, there were five executive directors and eight non-executive directors, including the Chairman. The Board, which meets eight times each year, provides the effective leadership and control required for a listed company. Actual financial results are presented to each meeting, together with reports from the executive directors in respect of their areas of responsibility. From time to time, the Board receives detailed presentations from non-Board members on matters of significance or on new opportunities for the Group. Financial budgets and forecasts are regularly discussed at Board meetings. The non-executive directors periodically visit different parts of the Group and are provided with briefings and information to assist them in performing their duties. The Board is confident that all its members have the knowledge, talent and experience to perform the functions required of a director of a listed company. On appointment, all directors are provided with appropriate training and guidance as to their duties, responsibilities and liabilities as a director of a public and listed company and also have the opportunity to discuss organizational, operational and administrative matters with the Chairman, the Chief Executive and the Company Secretary. Committees of the Board The standing Board committees are the Audit Committee, the Nominations Committee and the Remuneration Committee. Internal Control The Board has established procedures that implement in full the Turnbull Guidance, Internal Control: Guidance for Directors on the Combined Code, for the year under review and to the date of approval of the Annual Report. These procedures, which are subject to regular review, provide an ongoing process for identifying, evaluating and managing the significant risks faced by the Group.Relations with Shareholders The Company holds briefing meetings with its major institutional shareholders in the UK, the US and in Continental Europe, usually twice each year after the interim and preliminary final results announcements, to ensure that the investing community receives a balanced and complete view of the Groups performance and the issues faced by the business. Telecommunications analysts of stockbrokers are also invited to presentations of the financial results and to visit the Company in the summer months for discussions on matters relating to the Groups operations. The Company, through its Investor Relations team, responds to enquiries from institutional shareholders.Vodafone organizational culture according to hoefstedePower distance (High)Vodafone Egypt culture rejects the unequal distribution of power among people in the organization, as the people tend to be tolerant of power, follow orders and accept differences in rank. which results in a great deal of deference to the leader in making decisions and most all major and small decisions have to be approved by the leader.

Uncertainty (High)Vodafone Egypt culture is uncomfortable with risk and change, Egyptians want strict rules, policies and procedures at work to eliminate risk. Change is also very difficult.

Individualism-Collectivism (collectivism > individualism)Vodafone Egypt emphasizes collective accomplishment and the interests of the groups more than individualism and self interests.Masculinity- Femininity (Moderate)Vodafone Egypt has a moderate traits and attitude towards gender roles as both genders have the same career opportunities.

Vodafone organizational and departmental objectivesVodafone organization objective is building a strong Vodafone Brand:

To delight the customers and build market leadership without having to compete on pricing. Brand is a global one with a local tone that keeps it close to the customers hearts. Having the best marketing talents from the local market and industry knowledge through our links into the Vodafone Group.Vodafone departmental objectives and tools to build that strong brand is to excel in the following areas:

Superior Coverage. - Better Sound Quality. - Excellent Customer Care. - Leadership in Customer Relevant Product Innovation

From Strategy to operational plan: Market led- Vodafones market-led strategy is to supply customers with those products and services which are of high value to customers. Benefits to customers take precedent over Vodafones need to sell services or to group corporate dictates.

Customer focused- Vodafones customer focused strategy is to maintain communication with customers through market surveys, complaint resolution and continuing to ask the customer about their needs for new products and services. Competition Aware- The competitive awareness strategy is to maintain an understanding of competitors products and pricing while sticking to the Vodafone strategy of differentiation through service and more reliable mobile service. By sticking to the Vodafone competitive offers, Vodafone offered a real difference to customers seeking quality and reliability in mobile service.

Employee driven Employee- driven strategy is a business requirement. As a company of knowledge workers, Vodafone recognizes that the firm is best served when the employees are rewarded and developed in their careers. Vodafone commits to providing compensation that is industry leading while guiding employees in their career growth with training and skills acquisition opportunities and advancement with the company.

Vodafone competitive advantage Internal flexible working: Increased productivity, higher staff retention levels, better motivated employees, increased corporate agility and responsiveness, reduced property costs, better business continuity practices, reduced absenteeism, reduced days lost through sickness, increased legislative compliance, better corporate image, increased customer satisfaction, reduced travel costs and better green credentials An innovator and pioneer in the telecommunications industry through service differentiation and more reliable mobile service.

Quality and reliable mobile service.

Best network coverage.

Speed of delivery new ideas/services to the market.

Experienced staff with a powerful knowledge.

Keep cost base lower than competition.

Most trusted service brand.

Vodafone SWOT analysisStrengthsWeaknesses

One of the largest telecom operator in the world.

One of the most popular cellular service provider.

High brand visibility

Tieup with international sports like FormulaOne

Good Market share.

Strong financing.

Strong infrastructure, and low infrastructure costs.

Highly skilled labor, with increasing quality and technical knowledge

Growing IT sector.

Good international connectivity.

Strong ability to manage change and acquisition.

Despite higher confidence there are still limited and uncertain sources of domestic and foreign investment. Price competition from Mobinil and Etisalat.

Untapped Market. Managerial resources thin due to rapid growth and numerous acquisitions.

OpportunitiesThreats

Need for modernization of equipment and infrastructure.

Still low overall penetration rates mean that there is significant room for growth

Ease of forming public private partnerships.

Potential to utilize technology.

Strong incentives from the government to invest.

Government commitment to privatization will likely yield opportunities in the near future, especially if fixed line competition is introduced. Increased demand for multilingual IT services. Strong IT graduates

Untapped Market.

Potential for government interference through licensing issues or other regulatory actions. Slower subscriber growth and market saturation. Stalled economic reforms in the future could scare off foreign investments. Rising wages from demand for scarce programmers and engineers.

Contemporary Management, Mid Term

2012-07

Vodafone Egypt Organization

Vodafone Page 14