AbouL vodafone

Description: Vodafone Croup Plc is one of tbe worlds largest mobile

communications companies by revenue operating across tbe
globe providing a wide range of communications services.
Wbat we do: rovlde a wlde range of communlcaLlons servlces lncludlng moblle
volce messaglng daLa and flxed broadband
Establisbed: Awarded moblle llcence ln Lhe uk ln 1982
Revenue: 43884 mllllon (year ended 31 March 2011)
Croup EBITDA: 14670 mllllon (year ended 31 March 2011)
Market capitalisation: ApproxlmaLely 924 bllllon (31 March 2011)
Employees: Average of 89000 durlng year ended 31 March 2011
Customer base: ApproxlmaLely 338 mllllon reglsLered moblle cusLomers (31 March
2011)
Clobal network: SlgnlflcanL global presence wlLh equlLy lnLeresLs ln over 30 counLrles
across 3 conLlnenLs and over 40 parLner markeLs worldwlde 1he
Croup operaLes ln Lwo geographlc reglons Lurope and Afrlca
Mlddle LasL and Asla aclflc (AMA) and has an lnvesLmenL ln
verlzon Wlreless ln Lhe unlLed SLaLes
Brand names: Cur moblle subsldlarles operaLe under Lhe brand name vodafone ln
Lhe unlLed SLaLes our assoclaLed underLaklng operaLes as verlzon
Wlreless
vlslon Mlsslon
Vision
1o enrich our customers /ives throuqh the
unique power of mobi/e communicotion
Mission Possion for customers
Possion for our Peop/e
Possion for kesu/ts
Possion for the wor/d 4round us
lsLory of vodafone
lormed as 8acal 1elecom ln 1984 as a subsldary of
8acal LlecLronlcs lc
8ld for prlvaLe secLor uk Cellular Llcense ln 1982
olsLed uks flrsL ever moblle call aL a few mlnuLes pasL
mldnlghL on !anuary 1 1983
ln 1988 8acal 1elecom became publlc
ln 1991 8acal 1elecom goL fully demerged from 8acal
LlecLronlcs 1he new enLlLy was renamed vodafone
Croup lc
A Case SLudy on vodafone
1erm 6
SubmlLLed by
kumar ShreshLha(WM 3029)
valbhav Carg(WM 3066)
Caurav 1lwarl( WM 6083)
rlLl nanda (WM 6101)
nlLln !aln (WM 3040)
8lcha MehroLra
raLeek !aln
4
lnCrganlc CrowLh of vodafone
ln early 1999 vodafone merged wlLh Alr1ouch CommunlcaLlon lnc ln a deal worLh
$61 bllllons
LaLer Lhe norLh Amerlcan Subsldlary was creaLed as a separaLe enLlLy as verlzon
Wlreless wlLh vodafone havlng 43 share ln Lhe same year vodafone acqulred
8roughL Mannesmann 's C2 moblle dlvlslon for 190 bllllon Luro!
ln 2001 Lhe Company acqulred Llrcell Lhe largesL wlreless communlcaLlons
company ln Lhe 8epubllc of lreland from elrcom
lrom 2001 Lhere came a phase of consolldaLlon 1he focus was more on small deals
and lncreaslng Lhe sLakes ln exlsLlng parLnershlps
ln 2007 vodafone acqulred a conLrolllng lnLeresL of 67 ln uLchlson Lssar LlmlLed
for uS$111 bllllon AL Lhe same Llme lL agreed Lo sell back 36 of lLs Alr1el sLake
ouL of 10 back Lo Lhe MlLLals uLch was rebranded Lo vodafone ln lndlaln May
2011 vodafone Croup lc boughL Lhe resL of Lhe shares of vodafone Lssar and
became a solely owner of vodafone Lssar
AbouL vodafone
Lurope
Cur moblle subsldlarles and [olnL venLure operaLe under Lhe brand name
'vodafone' Cur assoclaLe ln lrance operaLes as 'Sl8' and 'neuf CegeLel' and our
flxed llne communlcaLlon buslnesses operaLe as 'vodafone' 'Arcor' '1ele2' and
'1ele1u'
Afr|ca and Centra| Lurope
Cur subsldlarles ln Lhls reglon operaLe under Lhe 'vodafone' brand or ln Lhe case
of vodacom and lLs moblle subsldlarles Lhe 'vodacom' and 'CaLeway' brands Cur
[olnL venLure ln oland operaLes as 'lus' and our assoclaLe ln kenya operaLes as
'Safarlcom'
As|a ac|f|c and M|dd|e Last
Cur subsldlarles and [olnL venLure ln ll[l operaLe under Lhe 'vodafone' brand and
our [olnL venLure ln AusLralla operaLes under Lhe brands 'vodafone' and '3'
Ver|zon W|re|ess (Un|ted States)
Cur assoclaLe ln Lhe uS operaLes under Lhe brand 'verlzon Wlreless'
Challenges Ahead (2006)
lncrease Lhe presence ln unLapped markeLs resence ln 26 counLrles ouL Cf 200
no presence ln LaLln Amerlca and many Afrlcan CounLrles
verlzon Wlreless Lrylng Lo buy ouL vodafone's sLake
lundamenLal shlfL ln MarkeL Lo conLenL based 3C servlces
nokla had developed Wlll enabled Cell phone whlch dldn'L requlre moblle
connecLlon Lo access lnLerneL 1hls can pose a greaL rlsk Lo vodafone's revenues
Leadershlp belng quesLloned by board
8uslness Level SLraLegles
8
' 2007 1homson/SouLh
WesLern All rlghLs reserved
49
vodafone's 8uslnessLevel SLraLegy
Cost Cost Un|queness Un|queness
D|fferent|at|on D|fferent|at|on Cost Leadersh|p Cost Leadersh|p
Iocused D|fferent|at|on Iocused D|fferent|at|on
Iocused Cost Iocused Cost
Leadersh|p Leadersh|p
Integrated Cost Integrated Cost
Leadersh|p] Leadersh|p]
D|fferent|at|on D|fferent|at|on
8road 8road
1arget 1arget
Narrow Narrow
1arget 1arget
Compet|t|ve Advantage Compet|t|ve Advantage
Compet|t|ve Compet|t|ve
Scope Scope
Core compeLencles of vodafone
W Moblle CommunlcaLlon
W CapaclLy Lo conLlnuously lmptove looovote
ooJ opqtoJe
10
lnLegraLed CosL
leadershlp/ulfferenLlaLlon
W lnorganlc CrowLh SLraLegy Large cusLomer
base
W LffecLlve value Chaln Low CosL of operaLlon
W AdapL qulckly Lo envlronmenLal changes
W SLrong llnanclals helped Lhem Lo counLer
aLLack any Low CosL 8lvals
W LffecLlvely leverage lLs core compeLencles
whlle compeLlng agalnsL lLs rlvals
11
CorporaLe Level SLraLegy
CorporaLelevel SLraLegys value
1he degree Lo whlch Lhe buslnesses ln Lhe porLfollo are worLh
more under Lhe managemenL of Lhe company ? 1he 6roup hos
qeneroted free cosh f/ow we// oheod of the 5 bi//ion to
bi//ion torqet estob/ished in 2008 o//owinq the 8oord to
estob/ish o three yeor 7 dividend per shore qrowth po/icy
WhaL buslnesses should Lhe flrm be ln? seitinq the benefits of
fost re/iob/e mobi/e doto networks usinq smortphones ond
other mobi/e doto devices such os tob/ets dotobosed services
/ike poyments vio hondsets ond on initio/ wove of mobi/e
devices for homes ond cors
ow should Lhe corporaLe offlce manage Lhe
group of buslnesses? pursue o qrowth stroteqy focused
porticu/or/y on urope 4frico ond lndio continue to qenerote
siqnificont sovinqs from techno/oqy stondordisotion off
shorinq outsourcinq ond p/otform shorinq
' 2007 1homson/SouLh
WesLern All rlghLs reserved
614
Low n|gh
Cperat|ona| and Corporate
ke|atedness
Corporate ke|atedness 1ransferr|ng Sk|||s |nto
8us|nesses through Corporate neadquarters
Cperat|ona|
ke|atedness
Shar|ng Act|v|t|es
between
8us|nesses
n|gh
Low
Unre|ated Unre|ated
D|vers|f|cat|on D|vers|f|cat|on
(I|nanc|a| Lconom|es) (I|nanc|a| Lconom|es)
ke|ated L|nked ke|ated L|nked
D|vers|f|cat|on D|vers|f|cat|on
(Lconom|es of Scope) (Lconom|es of Scope)
8oth Cperat|ona| and 8oth Cperat|ona| and
Corporate ke|atedness Corporate ke|atedness
(kare capab|||ty that creates (kare capab|||ty that creates
d|seconom|es of scope) d|seconom|es of scope)
ke|ated Constra|ned ke|ated Constra|ned
D|vers|f|cat|on D|vers|f|cat|on
Vert|ca| Integrat|on Vert|ca| Integrat|on
(Market ower) (Market ower)
8elaLed consLralned
W lL offers 1oLal communlcaLlon lnLegraLed
comm moblle sol producLlvlLy servlces volce
and messaglng machlne2machlne sol eLc
W All Lhe buslness soluLlons share common
neLwork lnfrasLrucLure and dlsLrlbuLlon
llnkages
1he 200 fivepoint stroteqy
W 8evenue sLlmulaLlon and cosL reducLlon ln
Lurope
W uellver sLrong growLh ln emerglng markeLs
W lnnovaLe and dellver on our cusLomers' LoLal
communlcaLlons needs
W AcLlvely manage our porLfollo Lo maxlmlse
reLurns
W Allgn caplLal sLrucLure and shareholder reLurns
pollcy Lo sLraLegy
AcqulslLlon 8esLrucLurlng
CorporaLe Covernance
vodafone's acqulslLlons unL or be
hunLed"
W 1radlLlonally growLh was by acqulslLlons raLher Lhan organlc
W used shares for lLs acqulslLlons
W LaLer slowed down on acqulslLlons and focused on lnLernal growLh
Acqu|s|t|on strategy
W lncreased markeL power
W overcomlng enLry barrlers
W avoldlng excesslve compeLlLlon
W lncreased dlverslflcaLlon !apan 1elecom flxed llne operaLlons
W 1o leverage scale and scope beneflLs reduce response Llme ln
markeL and ensure effecLlve dellvery Lo cusLomers
Ma[or AcqulslLlons
W Merged wlLh Alr1ouch CommunlcaLlons lnc
uSA $61 bllllon deal
W Cermany's largesL Lakeover Mannesmann u2
t190 pald ln sLocks ln year 2000
W 8ellsouLh ln new Zealand
W 1elecel ln orLugal
W CmnlLel ln lLaly
key challenges
W lnLegraLlon dlfflculLles
W CulLural allgnmenL of people
Crg SLrucLure as on !an 2003
CLC
Cermany
Asla aclflc
8eglon
LMLA
8uslness
uevelopmenL
uk lLaly
1echnol
ogy
Legal
uman
8esources
CorporaLe
Affalrs
llnance
SLraLegy
8uslness
lnLegraLlon
MarkeLlng
new org ls deslgned Lo
W locus more aLLenLlon on cusLomers ln vodafone's local
markeLs
W Lnhance vodafone's ablllLy Lo dellver seamless servlces
Lo corporaLlons
W laclllLaLe coordlnaLed dellvery of 3C across all markeLs
W luncLlon as an lnLegraLed company dellverlng on Cne
vodafone
W Slmpllfy declslonmaklng accounLablllLles and
governance sLrucLures Lo speed up execuLlon
CorporaLe Covernance
1he group wlll have 2 managemenL commlLLees whlch
wlll oversee Lhe execuLlon of Lhe Maln 8oard's sLraLegy
and pollcy
W 1he Lxecut|ve Comm|ttee Chalred by Arun Sarln goal
of focuslng on Lhe group sLraLegy and flnanclal
sLrucLure and plannlng successlon plannlng
organlzaLlonally developmenL and group wlde pollcles
W 1he Integrat|on Cperat|ons Comm|ttee Chalred by
Arun Sarln Lhe goal of seLLlng Lhe operaLlonal plans
budgeL and forecasL producL and servlce developmenL
cusLomer segmenLaLlon managlng dellvery of mulLl
markeL proposlLlon and managlng shares resources
Crg SLrucLure as of Loday
8oard CrganlzaLlon SLrucLure
1he 8oard
W as flnal responslblllLy for Lhe managemenL
dlrecLlon and performance of our buslnesses
W ls requlred Lo exerclse ob[ecLlve [udgemenL on all
corporaLe maLLers lndependenL from execuLlve
managemenL
W ls accounLable Lo shareholders for Lhe proper
conducL of Lhey buslness and
W ls responslble for ensurlng Lhe effecLlveness of
and reporLlng on our sysLem of corporaLe
governance
SLraLegy updaLe nov 2010
vodafone has reLurned Lo organlc revenue growLh and galned
revenue markeL share ln Lhe ma[orlLy of markeLs
W we wi// pursue o qrowth stroteqy focused porticu/or/y on
urope 4frico ond lndio
W we wi// continue to drive benefits from the 6roups sco/e
odvontoqe ond cost focus
W we wi// seek to qenerote free cosh f/ow or /iquidity from
noncontro//ed ossets ond investments
W we wi// continue to opp/y copito/ discip/ine to our
opprooch to investment
W lmproved quidonce for the 2011 finoncio/ yeor ond
mediumterm torqets
vodafone loundaLlon Moblllzlng Lhe
communlLy moblllzlng soclal change
W World of dlfference corporaLe glvlng lnlLlaLlve whlch
moblllses people Lo Lake Llme ouL and work for a charlLy of
Lhelr cholce
W vodafone 8ed AlerL an emergency SMS fundralslng
programme enabllng vodafone loundaLlons and vodafone
companles Lo respond Lo emergencles and dlsasLers
W Moblles for Cood 1hrough Lhe appllcaLlon of vodafones
leadlng lnnovaLlve Lechnology Lhe vodafone loundaLlon
moblllses boLh local and vlrLual communlLles brlnglng people
LogeLher Lo resolve muLual problems and make real change