Management Strategies Applied by Vodafone – Page 1

The purpose of this document is to give insight on the form of management strategies that Vodafone applies to all its operations. That shall be done by looking at how Vodafone manages the main company down to the controlling the conducts of the distributors. The document shall look at strategies used for risk management, change management, supply chain management among other. The document shall lay a background by stating what functions management has to down play in the organization. Vodafone has witnessed remarkable growth since it formally became of operational. Some of its success and growth can be attributed to management structure of the organization. To this effect, the current report seeks to establish and investigate the way the organization utilizes management for effectiveness and efficiency of its mobile network provision’s operations.

Introduction

Vodafone Group Plc. is known as an established mobile telecommunication company with a strong presence all over the world. Vodafone has marked its footprints not only in Australia but also in Africa, Europe, Asia Pacific, the Middle East and the United States. In Australia, Vodafone is ranked as third largest telecommunication company and it has6.8 million customers with approximately 4000 employees here. The company merged with 3 in June 2009 and now it operates with 3 and Crazy John’s brands. There are 50:50 joint ventures between Vodafone Group Plc. and Hutchison 3G Australia. At present 3G network coverage is provided by the company to 94 per cent customers in the country and 4G will be introduced soon (Vodafone group, 2012).

Vodafone is a mobile network provider that has witnessed a massive growth since it became operational in 1992. The growth is in terms of market penetration, customer base as a worldwide and national brand and within the organization’s structure and management. Therefore, management is an important aspect in the growth of a company. In the current report about Vodafone, some organizational concepts and functions as regards management will be considered. Management can be defined as the act of coordinating and overseeing the jobs of others so that their tasks are completed on time (Coutler 2007).

Environmental Factors and Sustainability Issues

Vodafone is planning their activities and goals by considering the energy efficiency and sustainability of their business in the long run. The company has implemented and introduced many changes and initiatives for the sake of environment and sustainability.

Vodafone is a pioneer of introducing a training program on energy efficiency as an organization in Australia. For the sake of green energy and sustainable business, Vodafone delivers valuable information among mobile network engineer about how to design communication network by using as less energy as possible. As a result, the company gained the 6 Star Green Office Design in 2010 as the first office in North Sydney. To reduce, realize and manage the usage of energy, they installed smart meters in every sector of mobile networks. In Telecommunication companies, mostly the energy is consumed by the data centers. For better energy performance, efficient machineries are introduced in data centers by their network partners. They focused on innovation and new implementation on the design of network site along with the partners. After that, Vodafone targeted the energy intensive air conditioners used for cooling the network equipment and replaced many of them by fan-cooling technology to reduce the heavy usage of electricity. On the other hand, they also installed solar panel on network sites as an alternative source of energy to minimize the consumption from the national grid (Vodafone, 2012).

To build an environment friendly organization, Vodafone takes initiatives for recycling their products in every sector of their business to establish zero waste industry. Firstly, the official recycling program started in Vodafone service centers, stores and offices that succeeded to recycle 11,000 kilos of e-waste that are equivalent to 42,000 phones. Secondly, the company planned to reuse the electronic waste internationally. Vodafone launches efficient packaging of SIM card in 2011 and removed the old packaging method. The result from the initiative was to save of paper in amount of 50 tonnes. For packaging their product in a sustainable way they work as a member of the Australian Packaging Covenant. By doing little saving in every steps of the industry, they come up with a huge savings in overall picture (Vodafone Sustainability, 2012).

Vodafone changed their packaging method and redesigned SIM card according to Australian Packaging Covenant to minimize the wastage and increase sustainability. Due to the change, they can able to reduce the use of papers of 50 tonnes as well as recycle plastic of 14 tonnes (Vodafone Sustainability, 2012).

They make their billing method paperless. Thus the customers can receive their bill via email and also log in to their account to see their history of bills. Hence, the company gets benefited by reducing the cost of posting, printing and paper. Moreover, by recycling each tonne of phone materials of used phones, Vodafone skip 10 tonnes of greenhouse gas emissions (Vodafone Recycling, 2012).

Among the 20 renowned information and communications technology (ICT) companies such as Nokia, Siemens, France Telecom and HP, Vodafone is declared in first position as sustainability leader in ICT businesses. The competition is based on the performance of social and environmental aspects and electronic waste management. Among the other companies, Vodafone scored 60 per cent that is the highest score. However, only the scores of Nokia and HP are above 50 per cent and the other 17 companies are below 50 per cent (Environmental & Energy Management News, 2010).

To make the environment, Vodafone launches new eco rating mobile phones that are designed in energy efficient way in every step of manufacturing and production. From raw material to processing, packaging and recycling, the company improves the processes to eliminate greenhouse gas emission as much as possible. They focus on mobile life cycle, green design, company performance, environmental impacts, health and safety of workers and customers, ethical issues, etc (Planet Ark, 2012).

Tackling the climate change threat, Vodafone launches machine to machine (M2M) technology to help the customers and themselves. For sustainable society they are collaborating with other companies such as navigation system manufacturers. Due to this attempt, users can reduce fuel usage, emissions and improve efficiency (Vodafone News, 2013).

Besides, Vodafone enable the worker to increase their productivity by smart working system. They provide the facilities to improve work-life balance for employees such as work from home that reduces the travel and fuel cost as well as carbon emission (Report on Sustainability, 2011).

Ethical and Social Responsibility Issues

Vodafone is concerned about the health issues and safety of the users. Thus, the company has researched about the effect of radio frequency waves that come from the handset and base station antenna. To provide large and strong network coverage, Vodafone needs to establish a large number of base stations. To mitigate the risk of RF fields, they are following the guidelines of The International Commission for Non-Ionizing Radiation Protection (ICNIRP). The organisation consults with the World Health Organization (WHO) about the technology and user’s safety to make their product reliable for the consumers. According to the World Health Organization on mobile phone safety, “A large number of studies have been performed over the last two decades to assess whether mobile phones pose a potential health risk. To date, no adverse health effects have been established as being caused by mobile phone use (Mobiles, Base Stations and Health, (2012).”

Besides, Vodafone guarantees all their mobile phones and products that maintain strict national and international safety standards as well as technical standards authorized by the Australian Communications and Media Authority (ACMA) to ensure sustainable products. (Mobiles, Base Stations and Health, 2012).

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