QA business school London campus Student Number:-B00648187 Group: - Choo Course: - MSc International Business Module: - International Business Environment Due date: - 23rd August 2013 Word count: - 3,471
1. Introduction 04
2. Company Profile-Vodafone Plc 04
3. Growth Analysis of Vodafone Over Ten Years 06
3.1 Sales 06
3.2 Markets/ New Markets 07
3.3 New Products/ Services 07
3.4 New Stores 08
4. Performance Analysis 08 4.1 Liquidity Ratio 08 4.2 Profitability Ratio 08 4.3 Shareholders Ratio 10 4.4 Return on Investment Ratio 10 4.5 Gearing Ratio 11
5. PESTEL Analysis 11 5.1 Political Issues 12 5.2 Economical Issues 13 5.3. Social Issues 14 5.4 Technological Issues 15
6. Financial Analysis 16 6.1. Liquidity Ratio 16 6.2 Profitability Ratio 17 6.3 Shareholder’s Ratio 18 6.4 Return on Investment 18 6.5 Gearing Ratio 19
7. Foreign Currency Impact 20
8. Taxation Impact 20
9. Earnings per Share 20
10. References 22
11. Bibliography 24
This assignment is divided into two different parts and illustrates a complete analysis of any UK based multinational company. The part one of the assignment is based on the growth analysis of the multinational company in terms of sales, markets, products and customer relationship management, in addition to this, the part also discusses a brief environmental analysis of the UK telecommunication industry. This is refer to as ‘environmental scanning’ which is considered as analysis of the political, environmental, social, technical, and legal issues that affect the performance of the companies that operate within the specific telecommunication industry. In this section, different issues are highlight that can affect the performance of the company currently and in near future.
The part two of the assignment enhances experience and knowledge about the telecommunication industry in the UK as well as the multinational company that operate within the industry. This section of the assignment provides financial analysis through ratio analysis from the year 2012 and 2011. In addition to this, this section of the assignment also looks at the foreign currency exchange impact, tax affect and earnings per share of the company with that of the competitor. The company chosen for the assignment is Vodafone Plc. The assignment also provides the reason for choosing the company.
2. Company Profile-Vodafone Plc:-
The company I have chosen for the financial analysis is Vodafone Plc which belongs to telecommunication industry. As highlighted by Solly (2010), the telecom industry has become a dominant player in the growth and development of the economy. As PAC (2006) argued that in the previous years, the attitude of the telecom players in UK has become risk averse as the attitude of the market has changed towards Information Technology. Ofcom (2012) mentioned that the UK Telecommunication industry is the second largest in terms of value-addition as well as is the largest industry in the Europe. In the course of the global financial crisis, the telecom industry in the UK remained unscathed. The players in the telecom industry such as Vodafone and other leaders reported slower growth however these results had much to do with the regulation imposed by Ofcom as well as due to increase competition in the market (The Mobile World, 2009).
The company chosen for the analysis is Vodafone which is a UK based telecom operator. The company is the second largest telecom firm which has grown exponentially over the years in terms of both customer base measured by the…