mba project on vodafone

CHAPTER 1 INDUSTRY PROFILE Introduction to the Telecom Industry in India. The telecom network in India is the fifth largest network in the world meeting up with global standards. Presently, the Indian telecom industry is currently slated to an estimated contribution of nearly 1% to India’s GDP. Introduction The Indian Telecommunications network with 110.01 million connections is the fifth largest in the world and the second largest among the emerging economies of Asia. Today, it is the fastest growing market in the world and represents unique opportunities for U.S. companies in the stagnant global scenario. The total subscriber base, which has grown by 60% in 2008, is expected to reach 450 million in 2009.According to Broadband Policy 2004, Government of India aims at 9 million broadband connections and 18 million internet connections by 2009. The wireless subscriber base has jumped from 33.69 million in 2004 to 82.57 million in FY2008-2009. In the last 3 years, two out of every three new telephone subscribers were wireless subscribers. Consequently, wireless now accounts for 54.6% of the total telephone subscriber base, as compared to only 40% in 2007. Wireless subscriber growth is expected to bypass 3.5 million new subscribers per month by 2009. The wireless technologies currently in use are Global System for Mobile Communications (GSM) and Code Division Multiple Access (CDMA). There are primarily 9 GSM and 5 CDMA operators providing mobile services in 19 telecom circles and 4 metro cities, covering 2000 towns across the country. Major Players There are three types of players in telecom services: • -State owned companies (BSNL and MTNL) • -Private Indian owned companies (Reliance Infocomm, Tata Teleservices,) • -Foreign invested companies (Hutchison-Essar, Bharti Tele-Ventures, Escotel, Idea Cellular, BPL Mobile, Spice Communications) BSNL On October 1, 2000 the Department of Telecom Operations, Government of India became a corporation and was renamed Bharat Sanchar Nigam Limited (BSNL).BSNL is now India’s leading Tele communications Company are the largest public sector undertaking. It has a network of over 45 million lines covering 5000 towns with over 35 million telephone connections. The state-controlled BSNL operates basic, cellular (GSM and CDMA) mobile, Internet and long distance services throughout India (except Delhi and Mumbai). BSNL will be expanding the network in line with the Tenth Five-Year Plan (1992-97). The aim is to provide a telephone density of 9.9 per hundred by March 2009. BSNL, which became the third operator of GSM mobile services in most circles, is now planning to overtake Bharti to become the largest GSM operator in the country. BSNL is also the largest operator in the Internet market, with a share of 21 per cent of the entire subscriber base. BHARTI Established in 1985, Bharti has been a pioneering force in the telecom sector with many firsts and innovations to its credit, ranging from being the first mobile service in Delhi, first private basic telephone service provider in the country, first Indian company to provide comprehensive telecom services outside India in Seychelles and first private sector service provider to launch National Long Distance Services in India. Bharti Tele-Ventures Limited was incorporated on July 7, 1995 for promoting investments in telecommunications services. Its subsidiaries operate telecom services across India. Bharti’s operations are broadly handled by two companies: the Mobility group, which handles the mobile services in 16 circles out of a total 23 circles across the country; and the Infotel group, which handles the NLD, ILD, fixed line, broadband, data, and satellite-based services. Together they have so far deployed around 23,000 km of optical fiber cables across the country, coupled with approximately 1,500 nodes, and presence in around 200 locations. The group has a total customer base of 6.45 million, of which 5.86 million are mobile and 588,000 fixed line customers, as of January 31, 2009. In mobile, Bharti’s footprint extends across 15 circles. Bharti Tele-Ventures' strategic objective is “to capitalize on the growth opportunities the company believes are available in the Indian telecommunications market and consolidate its position to be the leading integrated telecommunications services provider in key markets in India, with a focus on providing mobile services”. MTNL MTNL was set up on 1st April 1986 by the Government of India to upgrade the quality of telecom services, expand the telecom network, and introduce new services and to raise revenue for telecom development needs of India’s key metros – Delhi, the political capital, and Mumbai, the business capital. In the past 17 years, the company has taken rapid strides to emerge as India’s leading and one of Asia’s largest telecom operating companies. The company has also been in the forefront of 4 technology induction by converting 100% of its telephone exchange network into the state-of-the-art digital mode. The Govt. of India currently holds 56.25% stake in the company. In the year 2008-09, the company's focus would be not only consolidating the gains but also to focus on new areas of enterprise such as joint ventures for projects outside India, entering into national long distance operation, widening the cellular and CDMA-based WLL customer base, setting up internet and allied services on an all India basis. MTNL has over 5 million subscribers and 329,374 mobile subscribers. While the market for fixed wire line phones is stagnating, MTNL faces intense competition from the private players—Bharti, Hutchison and Idea Cellular, Reliance Infocomm—in mobile services. MTNL recorded sales of Rs. 89.2 billion ($3.38 billion) in the year 2008-09, a decline of 5.8 per cent over the previous year’s annual turnover of Rs. 83.92 billion. RELIANCE INFOCOMM Reliance is a $16 billion integrated oil exploration to refinery to power and textiles conglomerate. It is also an integrated telecom service provider with licenses for mobile, fixed, domestic long distance and international services. Reliance Infocomm offers a complete range of telecom services, covering mobile and fixed line telephony including broadband, national and international long distance services, data services and a wide range of value added services and applications. Reliance India Mobile, the first of Infocomm's initiatives was launched on December 28, 2002. This marked the beginning of Reliance's vision of ushering in a digital revolution in India by becoming a major catalyst in improving quality of life and changing the face of India. Reliance Infocomm plans to extend its efforts beyond the traditional value chain to develop and deploy telecom solutions for India's farmers, businesses, hospitals, government and public sector organizations. Until recently, Reliance was Permitted to provide only “limited mobility” services through its basic services license. However, it has now acquired a unified access license for 18 circles that permits it to provide the full range of mobile Services. It has rolled out its CDMA mobile network and enrolled more than 6 million subscribers in one year to become the country’s largest mobile operator. It now wants to increase its market share and has recently launched pre-paid services. Having captured the voice market, it intends to attack the broadband market. TATA TELESERVICES Tata Teleservices is a part of the $12 billion Tata Group, which has 93 companies, over 200,000 employees and more than 2.3 million shareholders. Tata Teleservices provides basic (fixed line services), using CDMA technology in six circles: Maharashtra (including Mumbai), New Delhi, Andhra Pradesh, Tamil Nadu, Gujarat, and Karnataka. It has over 800,000 subscribers. It has now migrated to unified access licenses, by paying a Rs. 5.45 billion ($120 million) fee, which enables it to provide fully mobile services as well. The company is also expanding its footprint, and has paid Rs. 4.17 billion ($90 million) to Dot for 11 new licenses under the IUC (interconnect usage charges) regime. The new licenses, coupled with six circles in which it already operates, virtually gives the CDMA mobile operator a national footprint that is almost on par with BSNL and Reliance Infocomm. The company hopes to start off services in these 11 new circles by August 2008. These circles include Bihar, Haryana, Himachal Pradesh, Kerala, Kolkata, Orissa, Punjab, Rajasthan, Uttar Pradesh (East) & west and west Bengal. VSNL On April 1, 1986, the Videsh Sanchar Nigam Limited (VSNL) - a wholly Government owned corporation - was born as successor to OCS. The company operates a network of earth stations, switches, submarine cable systems, and value added service nodes to provide a range of basic and value added services and has a dedicated work force of about 2000 employees. VSNL's main gateway centers are located at Mumbai, New Delhi, Kolkata and Chennai. The international telecommunication circuits are derived via Intelsat and Inmarsat satellites and wide band submarine cable systems e.g. FLAG, SEA-ME-THEY-2 and SEA-ME-THEY-3. The company's ADRs are listed On the New York Stock Exchange and its shares are listed on major Stock Exchanges in India. The Indian Government owns approximately 26 per cent equity, M/s Panatone Finevest Limited as Investing vehicle of Tata Group owns 45 per cent equity and the overseas holding (inclusive of FIIs, ADRs, and Foreign Banks) is approximately 13 per cent and the rest is owned by Indian institutions and the public. The company provides international and Internet services as well as a host of value-added services. Its revenues have declined from Rs. 80.89 billion ($2.62 billion) in 2008-09 to Rs. 68.12 billion ($2.1 billion) in 2008-09, with voice revenues being the mainstay. To reverse the falling revenue trend, VSNL has also started offering domestic long distance services and is launching broadband services. For this, the company is investing in Tata Teleservices and is likely to acquire Tata Broadband. Vodafone Hutch now Vodafone’s presence in India dates back to late 1992, when they worked with local partners to establish a company licensed to provide mobile telecommunications services in Mumbai. Commercial operations began in November 1995. Between 2000 and March 2004, Hutch acquired further operator equity interests or operating licenses. With the completion of the acquisition of BPL Mobile Cellular Limited in January 2006, it now provides mobile services in 16 of the 23 defined license areas across the country. Hutch India has benefited from rapid and profitable growth in recent years. It had over 20.5 million customers by the end of June 2009. IDEA Indian regional operator IDEA Cellular Ltd. has a new ownership structure and grand designs to become a national player, but in doing so is likely to become a thorn in the side of Reliance Communications Ltd. IDEA operates in eight telecom “circles,” or regions, in western India, and has received additional GSM licenses to expand its network into three circles in Eastern India -- the first phase of a major expansion plan that it intends to fund through an IPO, according to parent company Aditya Birla Group . Company Market Share in 08’ OperatorSubscribers (Nov 2008)% ShareAircel10,002,8104.1%BPL Mobile1,294,7600.5%BSNL36,209,96015.0%Bharti61,984,73025.6%Dishnet Wireless607,6200.3%Hutchison 30,751,71012.7%Idea24,001,5809.9%MTNL3,241,8501.3%Reliance Comm.39,035,47016.1%Spice Telecom4,210,6701.7%Tata Teleservices17,421,4007.2%Vodafone Essar44,126,26024.2% Mergers Demand for new spectrum as the industry grows and the fact the spectrum allocation in done on the basis of number of subscribers will force companies to merge so as to claim large number of subscribers to gain more spectrum as a precursor to the launch of larger and expanded services. However it must also be noted that this may very well never happen on account of low telecom penetration. Constraints: 
Slow pace of the reform process.
It would be difficult to make in-roads into the semi-rural and rural areas because of the lack of infrastructure. The service providers have to incur a huge initial fixed cost to make inroads into this market. Achieving break-even under these circumstances may prove to be difficult.
The sector requires players with huge financial resources due to the above mentioned constraint. Upfront entry fees and bank guarantees represent a sizeable share of initial investments. While the criteria’s are important, it tends to support the existing big and older players.
CHAPTER 2 COMPANY PROFILE COMPANY PROFILE Vodafone was formed in 1984 as a subsidiary of Racal Electronics Plc. Then known as Racal Telecom Limited, approximately 20% of the company's capital was offered to the public in October 1988. It was fully demerged from Racal Electronics Plc and became an independent company in September 1991, at which time it changed its name to Vodafone Group Plc.Following its merger with Air Touch Communications, Inc. (‘Air Touch’), the company changed its name to Vodafone Air Touch Plc on 29 June 1999 and, following approval by the shareholders in General Meeting, reverted to its former name, Vodafone Group Plc, on 28 July 2000. THE LEADERS Meet the board Sir John Bond became Chairman of Vodafone Group Plc on 25 July 2006 having previously served as a Non-Executive Director. The Deputy Chairman, John Buchanan, is the nominated senior independent director and his role includes being available for approach or representation by directors or significant shareholders who may feel inhibited from raising issues with the Chairman. He is also responsible for conducting an annual review of the performance of the Chairman and, in the event it should be necessary, convening an annual meeting of the non-executive directors. The executive directors are Vittorio Colao (Chief Executive) and Andy Halford. Board Members 
John Buchanan - Deputy Chairman
Andy Halford - Chief Financial Officer
Alan Jebson
Nick Land
Anne Lauvergeon
Simon Murray
Luc Vandevelde
Tony Watson
Philip Yea
Company review Mobile is always at the heart of what the company do, but now the company are moving into integrated mobile and PC communication services. The company are doing that in two ways – wirelessly through 3G and HSDPA (High-Speed Download Packet Access), but also using fixed line broadband services like DSL (Digital Subscriber Line). The company customers benefit from a complete Vodafone experience in and out of their homes and offices. They are notified about email with the company consumer push email service, access existing instant messaging services on the move, and share images and video captured on their handsets. The company offer a suite of products that, starting with voice calls, offers the company customers an alternative to a traditional fixed telephone line. Vodafone Zuhause in Germany and Vodafone Casa in Italy, provide the company customers with an easy-to-use mobile service, combined with low-cost fixed line telephony and DSL (Digital Subscriber Line) broadband. The company have extended the company reach into the office by delivering richer Business applications and integrated fixed and mobile services, such As higher speed internet access. With developments in technology the company can provide integrated mobile and PC offerings to give the company customers consistent experience whether they are at home or on the move. Research and development (“R&D”) The Group R&D function comprises an international team for applied research in mobile and internet communications and their related applications. Group R&D teams are located in Newbury, Maastricht, Munich, California and Madrid, and there is an affiliated team in Paris belonging to Vodafone’s associated undertaking in France, SFR. A small team was set up at the end of 2007 in the Vodafone Beijing office to work in close collaboration with China Mobile and a number of Chinese vendors. Function of Group R&D Group R&D works beyond the traditional established markets of Vodafone in search of technology based business opportunities by: delivering a systematic programme of demand inspired research and development in wireless and internet communications that is positioned between basic research and commercial product development; leading Vodafone’s work with technical standards bodies and its intellectual property activities; and Providing a route for start-up companies to engage with Vodafone. Group R&D is also in the process of establishing a laboratory in Newbury to evaluate start-up technologies. Typically, Group R&D starts working on developments that are expected to be introduced into the business in three to five years, and leads them until a year or so before full commercialization. Currently the horizon covers some significant business developments that can already be anticipated. For example, Group R&D leads the introduction of wireless technology beyond 3G and is researching the next phase of the emergence of the internet as a personal communications platform – including radio technologies for accessing the internet in emerging markets. Governance is provided by the Group R&D Board, which is chaired by the Group R&D Director and consists of the chief technology officers from six of the operating subsidiaries in Europe, the heads of Business Strategy and Global Terminals and a representative from EMAPA. Group R&D work programme The emphasis of the Group R&D work programme is on providing technology analysis and a vision that contributes directly to business decisions, enabling new applications of mobile communications, technology for new services and research for improving operational efficiency and quality of the Group’s networks. This is done by: pioneering the adoption of new technologies, business opportunities and innovations through technology analysis, trials, invention and prototypes; making the Group aware of market opportunities or threats posed by new technologies and business models and helping the Company to exploit or resist them; providing technology leadership by working with the industry to define and standardize the technology Vodafone uses; and Securing intellectual property and technology ownership for the Group. The work of Group R&D is delivered through a portfolio of programmes and cross industry activities with a substantial number of trials, demonstrations and prototypes. All work is set in a business and social context, and must lead to intellectual property rights or to Vodafone having significant influence on the technology it will deploy in the future. Group R&D also provides leadership for funding research into health and safety aspects of mobile communications and technical leadership for the Group’s spectrum strategy. The main themes currently being researched are as follows: the next generation of mobile technologies; consumable software for mobile phones; electronic news media; and New GSM based services. There have been several significant advances during the 2008 financial year including: next generation technology field trials have been announced with Verizon Wireless and China Mobile and are expected to begin in summer 2008; a system has been designed and standardized to enable the SIM in GSM phones to control near field communications for transport ticketing and other applications, with commercial trials planned for late 2008; demonstration of mobile software, social networks and the open source innovation platform called Vodafone Beta vine at the Mobile World Congress and at Cebit; and Research into the application of mobile communications to health and well being and to energy use. The R&D programme provides the Group with long term technical policy, strategy and leadership, as well as providing technical underpinning for the Group’s public policies and government relations. It is shared with all Group functions and Vodafone operating companies. Commercialization of Group R&D results is through submissions to international standards bodies, intellectual property filings and directly with Vodafone operating companies. Collaborative work Much of the work of Group R&D is done in collaboration with others, both within the Group and externally, with the Group’s traditional suppliers and increasingly with other companies in the communications, media and internet industries. During the 2008 financial year the following has been achieved: a research collaboration was started with IBM which has led to the development of a mobile private social network called BuddyCom; a research agreement was also established with Huawei; a continuing programme of work with academic institutions, which includes student placements in Vodafone laboratories during summer vacations; the continued development of Vodafone Betavine, a web based research and innovation platform; the hosting of an academic conference where academic partners were brought together to launch a new programme – 3D internet; and Academic collaborations in India have started. INVESTMENT PLANSThe planned $2 bn capex in the next two years announced by Vodafone, following the acquisition, may not bring in good results if they want to gain significant market share as its rivals-Bharti and Reliance have decided to increase their capex during the fiscal 2007 itself. Reliance may plough in $2.5 bn in fiscal 2007-08, while around $2.5 bn could be the investment from Bharti Airtel. Vodafone’s target to achieve 20-25% market share by 2010-11 and market penetration of more than 40% may be realistic. The operational plan focuses on the following objectives: Expanding distribution and network coverage, lowering the total cost of network ownership, growing market share, driving a customer focused approach, etc.started Company Overview 2007 December A consortium led by Vodafone Group is awarded the second mobile phone license in QatarIndus Towers Limited; an independent tower company in India is formed between Vodafone, Idea and Vodafone October Vodafone agrees to acquire Tele2 Italia Spa and Tele2 Telecommunication Services SLU from Tele2 AB Group May Vodafone announces completion of the acquisition of Hutch Essar from Hutchison Telecommunications International LimitedVodafone launches first ultra-low cost handsets February Safaricom, Vodafone's partner in Kenya announces the launch of M-PESA, an innovative new mobile payment solution that enables customers to complete simple financial transactions by mobile phone.Vodafone agrees to buy a controlling interest in Hutchison Essar Limited, a leading operator in the fast growing Indian mobile market.Vodafone announces agreements with both Microsoft and Yahoo! to bring seamless Instant Messaging (IM) services to the mobile which can be accessed from both the PC and mobile handsets.Vodafone signs a series of ground-breaking agreements which will lead to the mobilizing of the internet. YouTube agrees to offer Vodafone customers specially rendered YouTube pages on their mobile phones. With Google, Vodafone announces its intention to develop a location-based version of Google Maps for. With eBay, Vodafone announces it is to offer the new eBay mobile service to customers, With MySpace.com Vodafone announces an exclusive partnership to offer Vodafone customers a MySpace experience via their mobile phones January Vodafone reaches 200 million customers 2008 December Vodafone completes acquisition of additional 4.8% stake in Polkomtel November Vodafone to acquire an additional 15% Stake in Vodacom Group which will increase Vodafone's shareholding from 50% to 65%. Vodacom Group will be listed on the Johannesburg Stock Exchange and the remaining 35% of Vodacom Group will be demerged by Telkom to its shareholders. October Vodafone launches the new exclusive BlackBerry Storm Smartphone from Research in Motion August Completion of the acquisition of a 70 percent stake in Ghana Telecom. July Vittorio Colao succeeds Arun Sarin as Group Chief ExecutiveVodafone acquires a 70% stake in Ghana Telecom for $900 million. June Vodafone and Apple(R) announce the iPhone 3G will be available in Australia, Italy, New Zealand and Portugal on July 11 and in the Czech Republic, Egypt, Greece, India, South Africa and Turkey later this year. Vodafone announces that Verizon Wireless, its affiliate in the US, has agreed to acquire Alltel Corp. for a total enterprise value of US$28.1 billion in cash and assumed debt. May Vodafone announces that it has agreed to acquire the 26.4% interest in Arcor that it does not already own from Deutsche Bahn AG and Deutsche Bank AG for a cash consideration of €474 million. February Vodafone carries out technical trials of 3G femtocells to assess how effectively the technology is able to deliver wireless high-speed data and voice services inside homes and business locations.Safaricom and Vodafone announce that M-PESA, the innovative mobile money transfer service launched in March 2007, now has 1.6 million customers. 2009 June Completion of merger between Vodafone Australia Limited and Hutchinson 3G Australia Pty Limited. March Telefonica and Vodafone announce milestone Pan European collaboration to share network infrastructure in Germany, Spain, Ireland and the UK. February Hutchinson and Vodafone agree to merge Australian telecom operations to form a 50:50 joint venture. CHAPTER 3 PRODUCT PROFILE PRODUCT PROFILE Introduction to Vodafone products & services Vodafone Group Plc is the world's leading mobile telecommunications company, with a significant presence in Europe, the Middle East, Africa, Asia Pacific and the United States through the Company's subsidiary undertakings, joint ventures, associated undertakings and investments.The Group's mobile subsidiaries operate under the brand name 'Vodafone'. In the United States the Group's associated undertaking operates as Verizon Wireless. During the last two financial years, the Group has also entered into arrangements with network operators in countries where the Group does not hold an equity stake. Under the terms of these Partner Network Agreements, the Group and its partner networks co-operate in the development and marketing of global services under dual brand logos.At 30 June 2009, based on the registered customers of mobile telecommunications ventures in which it had ownership interests at that date, the Group had 315 million customers, excluding paging customers, calculated on a proportionate basis in accordance with the Company's percentage interest in these ventures.The Company's ordinary shares are listed on the London Stock Exchange and the Company's American Depositary Shares ('ADSs') are listed on the New York Stock Exchange. The Company had a total market capitalization of approximately £66.9 billion at 18 May 2009.Vodafone Group Plc is a public limited company incorporated in England under registered number 1833679. Its registered office is Vodafone House, The Connection, Newbury, and Berkshire, RG14 2FN, England. Product review “Mobile is always at the heart of what the company do, but now they are moving into integrated mobile and PC communication services” – Vodafone EssarThey are doing that in two ways – wirelessly through 3G and HSDPA (High-Speed Download Packet Access), but also using fixed line broadband services like DSL (Digital Subscriber Line). Their customers benefit from a complete Vodafone experience in and out of their homes and offices. They are notified about email with their consumer push email service, access existing instant messaging services on the move, and share images and video captured on their handsets. They offer a suite of products that, starting with voice calls, offers their customers an alternative to a traditional fixed telephone line. Vodafone Zuhause in Germany and Vodafone Casa in Italy, provide their customers with an easy-to-use mobile service, combined with low-cost fixed line telephony and DSL (Digital Subscriber Line) broadband. They have extended their reach into the office by delivering richer business applications and integrated fixed and mobile services, such as higher speed internet access. With developments in technology they can provide integrated mobile and PC offerings to give their customers a consistent experience whether they are at home or on the move. Technology They enrich their customers’ lives by enabling them to communicate in an increasingly connected world. They provide a range of voice and data mobile telecommunications services, including text messages (SMS); picture messages (MMS) and other data services. They are continually developing and enhancing service offerings particularly through third generation (3G) mobile technology, which is being deployed in the majority of their operations.Their mobile services are offered over the GSM network on which a General Packet Radio Service (GPRS) is also provided. The move to higher performance 3G (W-CDMA) networks is they’ll underway in the bulk of their operations, and they are now in the process of upgrading these networks to 3G broadband (HSDPA) with the promise of even higher data rates.Mobile is always at the heart of what they do, but now they are moving into integrated mobile and PC communication services, by combining fixed-line Digital Subscriber Line (DSL) broadband offers with their core mobile services. Mobile evolution Their mobile communications technology has advanced rapidly since Vodafone launched the first national UK network on 1 January 1985. With this first generation (1G) technology most mobile phones they’re installed in cars, pothered by the car battery and used roof-mounted antennas to improve reception of the analogue signal.The analogue services set up in countries across Europe during the late 1980s they’re often not compatible, with subscribers unable to use the same mobile phone moving from one country to the next.To solve this and other problems a new standard known as the Global System for Mobile Communications (GSM) was developed. This standard used digital technology, converting speech into binary code. Since Vodafone launched the first digital network in 1991, GSM has become the main standard for mobile communications worldwide.Second generation (2G) digital technology added the ability to transmit data along with voice over mobile networks and was the origin of internet access on the move. Wireless Application Protocol (WAP), a standard for internet-based services accessible on small mobile phone screens, provided early information services like news, movie start times and even the live Vodafone share price.Data transmission rates edged upwards with the introduction of General Packet Radio Service (GPRS), which enabled internet and email access and had the additional benefit of an always-on internet connection on handsets.GPRS was the stepping stone to today’s third generation (3G) technology. 3G data rates (at a peak rate of 384 Kbps) are about seven times faster than a fixed line dial-up connection. As they are offering high-speed internet and email access, 3G enables video calling, full track music downloads, mobile TV and more. The latest leap in data transmission speeds comes via High-Speed Downlink Packet Access (HSDPA), offering similar speeds to current Digital Subscriber Line (DSL) broadband Services 
Voice
Data
Devices
Fixed and other services
Voice Voice services are the largest part of their business. They offer their customers a wide range of innovative tariffs and services for use at home, in the office and while travelling. Vodafone Office Quick stats: 3 million customersZonal tariffs available in some Indian marketsclosed user tariff available Vodafone Office is the umbrella name for a series of products and services designed to meet all their business customers’ communications needs. With Vodafone Wireless Office, companies can transfer voice minutes from a fixed line to the mobile network, reducing the need for fixed desk phones. Existing fixed line and extension numbers can be assigned so that all calls are easily transferred to their mobile. A closed user group tariff is available allowing employees to call each other for a flat monthly fee. In Germany, Spain, Greece, Italy and Portugal, location based zonal tariffs allow preferential rates when calling from the office. Geographic numbers enable increased fixed to mobile substitution, allowing you the freedom to use a single mobile phone in and out of the office. Vodafone live! – Internet on Their Mobile Quick stats:2 million customersSimple and secure browsing of online servicesUnlimited browsing tariff availableVodafone live! Offers 750,000 songsVodafone live! Includes selection of latest games on handsetsMobile TV has an average of 850,000 subscribers a month “Internet on their Mobile” offers easy to use and secure browsing, including Google search, an unlimited browsing tariff and access to some of the most popular online services.You can use their mobile to access and update their social networking profiles, view and upload YouTube videos, buy and sell items on eBay, and check locations on Google Maps.You can also chat to friends easily with Yahoo! and MSN instant messaging using an easy to use dedicated interface.Using the new Vodafone live! Mobile and PC music player you can search for music, artist pages and previews from a catalogue of more than 750,000 songs. Music from some of the world’s greatest artists is available, with music secured from agreements with major record labels such as Sony BMG Music Entertainment, EMI, Universal Music, Warner Music, as they’ll as independent music labels.Mobile TV offers an average of 20 channels from both local and international broadcasters. Vodafone has local agreements with broadcasters, such as the BBC, ZDF, RAI, Pro-Sieben, Channel 4 and RTL, as they’ll as international broadcasts from HBO, Fox, NBC Universal, Warner Brothers, UEFA Champions League, Vodafone McLaren Mercedes and MTV, ensuring diverse and relevant mobile content. Vodafone Mobile Connect Quick stats:2.7 million customersBuilt-in 3G broadband on 44 laptop models7.2 Mbps down and 2.1Mbps up using Vodafone Mobile Connect card with HSPA technology Vodafone Mobile Connect enables you to access the internet on their laptop or PC via Vodafone Mobile Connect data cards or Vodafone Mobile Connect USB modems. -Business customers can access services such as email, corporate applications and company intranets using the service. Vodafone Mobile Connect card: You can enjoy built-in 3G broadband from Vodafone across 44 laptop models, including Vodafone’s partners Acer, Dell, HP and Lenovo. Everything you need to make an internet connection from their computer using a mobile network is installed and configured, allowing you to work on the move. The Vodafone Mobile Connect card with 3G broadband offers enhanced speeds which can be up to 7.2 Mbps downlink and up to 2.0 Mbps uplink by utilizing HSPA technology. Mobile advertising Quick stats:Over one billion advert impressions in the year to 31 March 2008 They have introduced mobile advertising in nine of their markets and continue to develop capabilities such as WAP banners and messaging formats, as they’ll as more sophisticated targeting offers. Business managed services They offer their business customers solutions which meet a wide variety of their communications needs: Secure remote access – a service enabling customers’ employees to access their network through their laptop, on the move, both while in their home country and when roaming Applications – many software programs have been developed for use on mobile devices and they can integrate these into their customers’ mobile portfolios. For example, workforces can have up to date sales information available at any time anywhere and schedules can be updated centrally and in real time. Handsets Quick stats:75 new models launched in the 2008 financial year53% of handsets sold their 3G models10 million Vodafone own-brand devices shipped in 30 countries Their handset portfolio ranges from handsets for their core voice services, to premium multimedia devices and includes a range of low-cost Vodafone handsets for the emerging markets. Vodafone live! Handsets Their customers access 3G services on a range of handsets including the exclusive Sony Ericsson V640i and an exclusive Mobile Internet version of the Nokia 6120c. Their higher speed HSDPA mobile broadband services are also available to subscribers on mid-priced handsets. Their ‘Internet on Their Mobile’ services are available on a selection of handsets customized for internet experience, including high-end devices like the Nokia N95 8GB, Sony Ericsson W910i and Samsung SGH-F700V QBowl. The Vodafone 125 and Vodafone 225 they’re the first ultra low cost handsets under the Vodafone brand, and the lowest cost mobile phones they have ever launched. Vodafone handyphone Introducing the landline that’s loaded with all the features of a cell phone - including low call rates. And Vodafone Handyphone isn’t that expensive either. You can make one yours for as little as Rs 1999. Key features:  Calls to any 3 Vodafone numbers @ 20p / min  Calls to all local mobile phones @ 40p / min  Free local & STD calls every month Business handsets They are always expanding their range of business handsets. Their exclusive devices include the Palm Treo 500v and the BlackBerry® Curve™ 8310 Smartphone. Both offer business email combined with Vodafone live! Services, such as Google Maps, internet browsing and instant messaging. In addition, the BlackBerry 8100 series and the BlackBerry 8110 series continue to be in demand along with the Nokia E series range. Vodafone magic box handsets Vodafone Mobile Connect The Vodafone Mobile Connect card with 3G broadband offers enhanced speeds which can be up to 7.2 Mbps downlink and up to 2.0 Mbps uplink through HSPA technology. Built-in 3G broadband from Vodafone is now available across a portfolio of 44 laptop models. Their partners Acer, Dell, HP and Lenovo fit a Vodafone SIM to their laptops which include a built-in modem. They have a range Vodafone Mobile Connect USB modems with exclusive designs, including USB sticks, all benefiting from “plug and go” software, making them easy to use for consumers and businesses. Vodafone tariff plans MRP481011494799146147ApplicabilityNew and existing customersNew and existing customersNew and existing customersNew customersNew customersNew customersNew customersDaily rental0001101Initial talk time5075507575Sim card validityLifelongLifelongLifelongLifelongLifelong2years2yearsTariff validity3 months1 year1 yearLifelongLifelong2years2yearsVodafone-to-Vodafone0.5030p/min30p/min0.5030p/min1.000.50Vodafone - Other Mobile0.500.500.500.600.601.000.60Vodafone - Landline1.001.001.001.001.001.001.00Local SMS0.25Send 2local SMS@ Re 1/sms and get 100 local SMS free for the day.0.10 1.00Send 2 local SMS @ Re 1/sms and get 100 local SMS free for the day1.001.00 CHAPTER 4 ORGANISATION STRUCTURE Bottom of Form Organizational Structure left407035 CHIEF EXECUTIVE OFFICER: MR.MARTEN PETERS MANAGING DIRECTOR: MR.RUSSEL HEWIT The following are the departments which come under the review of the managing director HUMAN RESOURCE DEPARTMENT Department head: mrs.Brigett Neumans 
Assistant HR manager
HR executive
HR helper
FINANCE DEPARTMENT Department head: sabarish gupta 
Finance manager
Assistant finance manager
Chief analyst
Finance executives
SALES AND MARKETING Department head: haris broumedis 
Marketing manager
Assistant marketing manager
Market analyst
Marketing and sales executives
FUNCTIONAL DEPARTMENTS Organization has been divided into various departments, or units, with individuals who specialize in a given area, such as marketing, finance, sales, and so forth. Having each unit perform specialized jobs is known as departmentalization. Departmentalization is done according to five major categories. Product, which requires each department to be responsible for the product being manufactured; geographic, which divides the organization based on the location of stores and offices; customer, which separates departments by customer type—for example, textbook companies that cater to both grade schools and community colleges; functional, which breaks departments into specialty areas; and process, which creates departments responsible for various steps in the production process CHAPTER 5 FUNCTIONAL AREAS HUMAN RESOURCE MANAGEMENT HUMAN RESOURCES MANAGEMENT This reviews the Vodafone human resources management in the following sections: 
Organization and Staffing
Implementation Strategies And Timeline 1
Finding
Implementation Strategies And Timeline 2
ORGANIZATION AND STAFFING The organization and management of human resources require effective leadership, proper planning and decision-making, collaborative working relationships and appropriate staffing levels to support the goals and objectives of the company. An efficient and logical organizational structure and a well-coordinated workflow enhance the timeliness and quality of service delivery. In general, Vodafone board policies provide strategic direction for certain personnel areas such as recruitment, staffing, evaluation and due process. To supplement decision-making and implementation of human resources policies, Vodafone uses a system of task forces, committees and councils to address institutional needs in all operational areas, including human resources. The company established councils to collaborate on the development or review of companywide administrative rules and policies. Vodafone formed the Administrative Services Council, which is governed by a group of administrative, professional/technical and classified employees, to develop and implement recommendations for companywide policies and procedures, develop budget and staffing priorities and coordinate continuous improvement of the company's administrative services. The vice president for Business Services co-chairs this council with another Vodafone employee. Vodafone established task forces that are representative groups of personnel who focus on a specific area of company operations. The Human Resources Task Force exists for the purposes of: Reviewing and developing procedures to promote efficient, effective human resources operations; Reviewing forms and making recommendations for improvement; Reviewing the Human Resources Handbook annually; Identifying processes that should be automated; and Assisting in developing appropriate planning parameters. The Human Resources (HR) Department compensation supervisor co-chairs this task force with a non-HR employee. The associate vice president of HR serves on this task force. Vodafone also has committees in which members are appointed for a limited time period to review issues or concerns and to make specific recommendations to a task force or council. The senior coordinator of staff development is a member of the recently formed Companywide Professional Development Committee. This committee is charged with the following responsibilities: Developing and recommending companywide professional development administrative rules and procedures to the Academic and Company Affairs Council and the Administrative Services Council; Recommending professional development activities and needed resources based on input from task forces and companywide committees; Developing and recommending guidelines of good practices for the design and delivery of professional development activities; Seeking input from all areas of the company regarding the effectiveness of professional development procedures and activities; and Recommending procedures for linking professional development activities with needs identified in the staff evaluation process. Under the leadership of an associate vice president of HR, the HR Department is responsible for implementing and overseeing Vodafone’s human resources programs, policies and procedures. The mission statement of the HR Department is as follows: " Human Resources provide support, guidance, tools, and resources to the Vodafone community through quality services to enhance employee and organizational effectiveness and foster a sense of community." The fiscal 2008 operating budget for the HR Department is more than 3Cr, which is nearly 10 percent more than fiscal 2005. Salaries and benefits costs increased by 14.7 percent, and operating costs increased by 40 percent. Operating costs include professional services fees and advertising expenses. Operating costs increased by 11% due to the consultant fee for the compensation study. IMPLEMENTATION STRATEGIES 1.The associate vice president of HR and HR supervisors review the company comprehensive master plan and companywide strategic planning process. 2.The associate vice president of HR and HR supervisors draft strategic goals and communicate the goals to internal staff. 3.The HR supervisors solicit input from employees in developing tactical plans to support the strategic goals. 4.The associate vice president of HR and HR supervisors refine and document the goals, tactical plans and implementation timelines. 5.The associate vice president of HR and HR supervisors implement the plan, continuously monitor and report progress in Vodafone ordinance with the company's strategic planning process. HR personnel The HR Department has too many supervisory-level positions, creating separate sections for similar functions. There are 31 positions in the department, of which eight are supervisory positions, including the associate vice president of HR. Seven of these positions and a senior administrative assistant report to the associate vice president. The remaining 22 employees report to the seven supervisory positions, creating a staffing ratio of 3.1 employees for each supervisor IMPLEMENTATION STRATEGIES 1.The associate vice president of HR reorganizes the employment sections to merge staff employment into one functional area. 2.The associate vice president of HR reclassifies the employment supervisor position to a recruiter position and appoints the staff employment supervisor to oversee the new combined unit. 3.The associate vice president of HR revises the job descriptions of the affected positions. 4.The associate vice president of HR presents the reorganization plan to the president for approval. TRAINING & DEVELOPMENT Training and development The company provides training and development opportunities to help the company employees gain new skills and experiences, and encourage them to reach their full potential. Vodafone offers a wide range of online courses related to specific aspects of the business or key skill sets. Performance Dialogues All employees complete an annual Performance Dialogue with their line manager, enabling them to review their performance annually and set clear goals and development plans for the year ahead. The process ensures the company people can make a clear connection between their goals and Vodafone’s business objectives. Development Boards Vodafone employees with key skills are discussed at an annual Development Board, where their line managers rate their performance and potential. The company uses this information to identify employees with leadership potential in each local operating company. These employees are encouraged to complete leadership development training, such as Inspire. Inspire leadership development Inspire is a global programme designed to identify and develop high potential employees and accelerate their progression into leadership roles. Participants take part in a three-month international rotation and receive commercial training and personalized leadership development through Imperial College, Oxford Said Business School and the Hay Group. They also gain from exposure to and learning from members of the company Executive Committee. The programme promotes cross-cultural understanding within Vodafone and encourages employees to take advantage of the breadth of experience across the Group. Promoting career opportunities within Vodafone The Company want people to develop at Vodafone and promote recruitment from within. This encourages people to progress their careers within the company, either through promotion or a change of role to broaden their experience. All vacancies across Vodafone are advertised on the job-posting page of the company global intranet, which encourages the transfer of talent across the Group. Reward and recognition The company aim to provide competitive and fair rates of pay and benefits in each market where the company operate. This helps the company attract and retain the best employees. Pay and benefits vary in each local operating company. Vodafone rewards employees based on their performance, potential and contribution to the success of the business. The company wants to ensure that the company people feel their efforts are recognized. The company global short and long-term incentive plans reward performance. Benefits Each of the company local operating companies offers a competitive range of benefits for employees. The benefits packages offered are determined by local legislative and tax requirements and industry benchmarks. Depending on the location, the company offer benefits such as medical insurance, subsidized mobile phones, share plans and retirement benefits. The company All Shares plan gives everyone at Vodafone a stake in the company’s success. Retirement benefits are provided through a variety of arrangements, including defined benefit and defined contribution schemes. These vary depending on the conditions and practices in the countries concerned such as local market practice, taxation, legislation and the quality of the state’s pension Training Project Lead Key skills / Performance drivers: Drive the implementation of the Training Strategy within Vodafone’s new business transformation project Ensure Training plan is fully resourced with appropriate resources (VF/3rd Party/Contractor) Identify trainings outside the system and processes scope that would enable a successful Go Live and ensure the Vodafone countries deliver this training Manage and develop the 3 Training Lead Developers Work with each Vodafone countries to ensure Local training activities are fit for purpose Establish clear contracts with local suppliers Work closely with the local Training Leads to ensure alignment with other Vodafone Facilitate and motivate high performance and collaboration among team members Drive the development and implement, quality control processes throughout all aspects of Training deliverables with an objective of right first time delivery within budget. Requirements: Project Management skills People Management and Development Skills SAP background, knowledge of SAP Full project lifecycles Fluency in English Relevant college or university qualification Executive Development Vodafone’s approach to executive development The company has clearly defined leadership strategy which is aligned with the company business strategy and highlights five areas of focus for the company in managing and growing the company leadership talent for the future: Robust succession and development planning Planned and managed career moves to achieve identified leadership development goals Fit for purpose development activity, tailored to individual need An open and transparent approach to talent management and leadership so that executives know where they stand, how their potential is viewed and are recognized and rewarded in line with their value to the business A dynamic process for tracking changing skills requirements and effective on boarding for incoming talent The company uses a highly tailored approach to assessing and meeting individuals’ development needs, including: One to one development support and counseling A range of global leadership programmes (regularly reviewed to meet business needs) Networking events across the global leadership community Managed career moves within the global business Access to external business programmes Executive assessment and 360° feedback SALES & MARKETING Functional Divisions of marketing. Hierarchy - Marketing. Functional Divisions of Sales. Hierarchy - Sales. Introduction Marketing is a comparative term which includes all resources and a set of activities necessary to direct and facilitate the flow of goods from produced to customer. And the process of distribution is called sales. It is to satisfy customer’s demands. It is the creation and delivering the standard of living to society. The company first determines customer’s wants and figure how to make the delivery of the product to satisfy those wants. Human efforts, financial management are tools for marketing. Team work and market penetration are tools for sales. Objectives 
To analyze marketing opportunities
Increase of sales and revenue
To satisfy the customer’s wants as the business exists only due to existence of customer demands.
To distribute the product in time.
To maximize product variety and customer choice.
Overcoming customer complaints.
To improve the quality of life consisting of the quality, quantity, range & accessibility of the goods.
Objective of study are: What marketing strategies the Vodafone is implementing to defend and increase the market share. To find who are the competitors of the Vodafone and the market shares of the competitors and what strategies Vodafone is implementing to beat its competitors. To find out how Vodafone react to the technology changes in the communications sector. PRIMARY DATA SOURCES Observation method, and Experiment SECONDARY SOURCE Internet Newspaper Magazines Others The Company is a part of Vodafone Enterprises, and is India's leading provider of telecommunications services. The businesses at Vodafone have been structured into three individual strategic business units (SBU's) - mobile services, broadband & telephone services (B&T) & enterprise services. The mobile services group provides GSM mobile services across India in 23 telecom circles, while the B&T business group provides broadband & telephone services in 90 cities. The Enterpri-se services group has two sub-units - carriers (long distance services) and services to corporate. All these services are provided under the Vodafone brand. Its include: 
Voice Services
Mobile Services
Satellite Services
Managed Data & Internet Services
Managed e-Business Services
Voice Services Vodafone became the first private fixed-line service provider in India. It is now promoted under the Vodafone brand. Recently, the Government opened the fixed-line industry to unlimited competition. Vodafone has subsequently started providing fixed- line services in the four circles of Delhi, Haryana, Madhya Pradesh, Karnataka, Tamil Nadu & UP (West). Vodafone Enterprise Services believes that these circles have high telecommunications potential, especially for carrying Voice & Data traffic. These circles were strategically selected so as to provide synergies with Vodafone's long distance network and Vodafone's extensive mobile network. Vodafone Enterprise Services, India's premium telecommunication service, brings to you a whole new experience in telephony. From integrated telephone services for Enterprises and small business enterprises to user-friendly plans for Broadband Internet Services (DSL), the company brings innovative, cost-effective, comprehensive and multi-product solutions to cater to all your telecom and data needs. Voice - Product Portfolio Vodafone Enterprise Services telephone services go beyond basic telephony to offer the company users a whole host of Value Added Services as well as premium add-ons. Each telephone connection from Vodafone Enterprise Services is backed by a superior fiber-optic backbone for enhanced reliability and quality telephony. Few of the Value Added Services offered are Calling Line Identification, Three Party Conferencing, Dynamic Lock, Hunting Numbers, and Parallel Ringing etc. Vodafone Enterprise Services Voice Services provide Free Dial-up Internet access that is bundled along with your Telephone connection from Vodafone. It's fast, reliable and gives you unlimited Internet access. Mobile Services Vodafone's mobile footprint extends across the country in 21 telecom circles. It's service standards compare with the very best in the world. In fact, that’s how Vodafone has managed to win the trust of millions of customers and makes it one of the top 5 operators in the world, in terms of service and subscriber base. The company has several Firsts to its credit: The First to launch full roaming service on pre-paid in the country. The First to launch 32K SIM cards. The First in Asia to deploy the multi band feature in a wireless network for efficient usage of spectrum. The First to deploy Voice Quality Enhancers to improve voice quality and acoustics. The First telecom company in the world to receive the ISO 9001:2000 certification from British Standards Institute Satellite Services Vodafone Enterprise Services provides you connectivity where ever you take your business The company Satellite Services bring you the benefits of access in remote locations. Vodafone Enterprise Services is a leading provider of broadband IP satellite services and DAMA/PAMA services in India. The company solutions support audio, video and voice applications on demand. Satellite Services include: Managed Data & Internet Services Vodafone Enterprise Services brings you a comprehensive suite of data technologies. So the company is able to support all types of networks and ensure the company customers can migrate from their networks to the future seamlessly. The company Managed Data & Internet services make the company customers future proof. Managed Data & Internet Services include: Customized Solutions International Managed Services Metro Ethernet Managed e-Business Services Vodafone Enterprise Services offers an internationally benchmarked, carrier class hosting, storage and business continuity services. A range of services that help to keep your business running the way you want- 24x7. Thanks to the company world-class high tech Data Centers. Vodafone ZooZoos-A Successful Marketing Strategy ZooZoo, the new brand ambassador of Vodafone, has created a furore in the advertising industry. Zoozoos have been successful in giving Vodafone a makeover and establishing maximum brand presence. I consider it to be a perfect example of a well-laid out marketing strategy for the following reasons. Vodafone chose the Indian Premier League 2 (IPL-2) as a platform to launch their advertisement, which proved to be a great marketing strategy. Cricket is considered to be a religion in India, and Zoozooz captured attention of nearly two billion people during the IPL. People eagerly waited for breaks between matches to see more stories about Zoozoo. It was a fresh and innovative concept and Vodafone wonderfully promoted their services by creating different stories featuring Zoozoos. The charm of the Zoozoo was itself a great self-marketing strategy and they were instant success among masses. Within few days, Zoozooz created a huge audience for them, giving a boost to the Vodafone brand. Vodafone promoted these characters on social media sites, which was another wise decision. Zoozoo fan clubs are there on social networking sites like Facebook, YouTube, Orkut, Twitter, and many more, where they have a huge followings. Now Vodafone has announced to launch the Zoozoo goodies like zoozoo toys, zoozoo mugs, zoozoo keychains, zoozoo t-shirts, etc 36385503383915190503383915lefttop3641090-1905 SUPPLY CHAIN MANAGEMENT Supply Chain Management. While they do not manufacture anything themselves, they maintain their responsibility to drive ethical values through the supply chain. They source equipment for their networks and the handsets they sell from third-party manufacturers which themselves source components and assembled products from other suppliers. Most of their purchasing at Group and local level is being transferred to the Vodafone Procurement Company, providing consistent contract terms for suppliers across the Group. Unlike supply chains in some other sectors, Vodafone's suppliers of telecommunications and IT equipment are mainly large multi-nationals (often well-known brands) that either operate their own assembly factories, or source from independent manufacturers, or both. They also source services from companies around the world. They strive to work with suppliers that maintain high labor and environmental standards. Their Code of Ethical Purchasing (CEP) sets out Vodafone’s expectations of suppliers. Their strategy is to engage directly with their first-tier suppliers and assess their compliance with the CEP. These assessments include an evaluation of their own supply chain management. They are also working with other companies in their sector to raise standards across the ICT industry as a whole through industry partnership. Code of Ethical Purchasing Their Code of Ethical Purchasing (CEP) sets out the standards they expect their suppliers to meet. The CEP is based on Vodafone's values and international standards, including the Universal Declaration of Human Rights and the International Labor Organization Conventions on Labor Standards. Within an extended global supply chain there is a risk that some suppliers or subcontractors might not meet acceptable standards. This risk is greater in some developing countries with weak regulations or enforcement procedures. Their risk assessment of potential new suppliers takes this into account. Their CEP covers human rights issues and labor standards, including child and forced labor, discrimination, disciplinary practices, freedom of association, health and safety, payment and working hours. It also covers environmental management and bribery. The CEP is incorporated into the contract template for global suppliers and is included in all new contracts with Group suppliers. It features prominently on their website, where new suppliers can register with Vodafone. It is also included in their publication 'Working with Vodafone – A guide for suppliers and contractors'. This guide describes how they access and manage supplier performance. It provides information about Vodafone’s commitment to being a responsible business, including the Business Principles, CEP and their approach to responsible network deployment and health, safety and wellbeing. Supplier assessments They assess new and existing suppliers for compliance with their Code of Ethical Purchasing. Supplier qualification Their supplier qualification system, used by Group and local operating companies, makes their CR expectations clear from the first point of contact a supplier has with Vodafone. Risk assessment They carry out risk assessments for all potential new suppliers to identify those that are high-risk and will require follow up on-site evaluations. The level of risk is determined by their potential spend, the product or service supplied and the degree of association with their brand and customers. It also takes into account the position of the country where the supplier is based on the Freedom House Index on political freedom and the Transparency International Corruption Perception Index. Site assessments They use site assessments of high-risk new and existing suppliers to identify potential areas of non-compliance with their Code of Ethical Purchasing. They work with suppliers to put in place improvement plans to address the areas identified. These may include putting in place new policies or revising existing ones, as well as any necessary changes to current practices. See recommendations for improvement identified this year in their CR Report. Their supplier performance managers are also trained to identify non-compliance with their CEP, such as unsafe working practices, whenever they are on site for other visits related to quality, delivery or performance. Scorecard evaluationsthey continually monitor the performance of strategic suppliers using a scorecard in which CR accounts for 10% of the overall evaluation score. The scorecard evaluates: acceptance of their CEP management systems for employee welfare management systems for environmental management management systems for health and safety - management of climate change impact management of CR in their own supply chain CR reporting activities Vodafone's supply-chain teams review the requirements and scores, and request supporting evidence from the supplier’s account manager, at half-yearly intervals. Common ICT industry approach Vodafone participates in and encourages suppliers to participate in the self-assessment and common auditing program developed by industry associations the Global e-Sustainability Initiative (GeSI) and the Electronic Industry Citizenship Coalition (EICC). See working with industry. Building capability As the industry gains experience of supply chain engagement, they have learned that audits alone are often not sufficient. Suppliers can too easily make temporary improvements without the necessary management system changes needed to embed improved practices. This results in the same problems recurring later. To achieve sustainable improvements, they work with supplier companies to help build their capability and commitment. They are addressing this through their own programme and joint industry activities. Their supplier assessment processes help build long-term commitment from suppliers to visibly improve standards. Several suppliers have demonstrated tangible improvements in their CR management as a result of corrective action plans agreed with Vodafone. In China, for example, one supplier abolished a recruitment requirement that discriminated against people shorter than 1.5 meters and another achieved certification to occupational health and safety management standard OHSAS 18001 with support from Vodafone. A company in Malaysia introduced a new policy to prevent pregnant women working overtime to meet their requirements and qualify as a Vodafone supplier. They also work with individual suppliers to reduce the climate impacts of their products – to help the company reduce emissions during use. Influencing sub-tier suppliers Their strategy is to engage directly with their first-tier suppliers (suppliers with whom they deal directly), emphasizing the need to engage with their own suppliers in a similar way. Since they do not have a contractual relationship with sub-tier suppliers, they believe that engagement with these companies should be through their first-tier suppliers. However, they recognize there may be risk of poor environmental or labor practices further down the supply chain and they are working to extend their influence. They encourage strategic suppliers – through their scorecard process – to put in place their own supplier engagement programmes. They also conduct a number of site evaluations of sub-tier suppliers alongside their direct suppliers. Working with Vodafonefor more information on how their ethical policies on supply chain management and health and safety relate to their suppliers, please refer to Working with Vodafone – a guide for suppliers and contractors. Vodafone Supplier CR Engagement Award The Vodafone Supplier CR Engagement award aims to improve engagement on CR among their suppliers. The award recognizes suppliers that demonstrate commitment to Vodafone's Code of Ethical Purchasing, engage with Vodafone on CR issues and make significant changes to improve the effectiveness of their own CR programme. The first award went to Sun Microsystems in 2007. Sun collated all its CR-related activities and produced a company-wide Corporate Social Responsibility Rep-ort for the first time. This demonstrates its collaborative and transparent approach as a supplier to Vodafone. Sun has also established a programme to achieve the terms of Vodafone’s Code of Ethical Purchasing and joined the Global e-Sustainability Initiative and the Electronic Industry Citizenship Coalition. The 2008 Vodafone Supplier CR Engagement award went to Capgemini Group, a computer services company that has continually demonstrated commitment to the ethical standards set out in their Code of Ethical Purchasing and has its own CR programme in place. Capgemini Group’s first corporate responsibility report outlines the progress it has made over a short period -of time. The company has signed up to the UN Global Compact and translated these principles into clear strategic objectives to help direct its CR programme. In 2009, Alexander Mann Solutions (AMS), a recruitment consultancy and professional services company, won the award in recognition of its comprehensive CR agenda and responsible procurement programme. AMS has adopted the UN Global Compact as its ethical code, and in 2009 it published its own CR report and was certified to ISO14001 for the first time. For more information see the AMS website. Industry partnership They believe that a consistent approach from buyers of information and communications technology (ICT) equipment is necessary to persuade all suppliers that acceptable labor and environmental standards are essential to do business with major companies. Through their membership of the Global e-Sustainability Initiative (GeSI) Supply Chain Working Group, they are working with major companies, representing a number of different tiers within the ICT supply chain, to develop a common approach to supplier assessments through industry partnerships. Joint industry tools and processes GeSI is collaborating with the Electronic Industry Citizenship Coalition (EICC) to develop and deploy a consistent set of tools and processes for improving supply chain CR performance across the ICT sector. Together, GeSI and EICC have developed: An online Electronics Tool for Accountable Supply Chains (E-TASC) to facilitate a consistent and resource-efficient method of assessing supplier risk and information flow between companies. A common supplier self-assessment questionnaire that asks suppliers for information on their labor, health and safety, environmental and ethics policies, and about their systems and performance. Through E-TASC, a supplier can complete this questionnaire just once, and allow all its customers to access the information. A common auditing programme that allows a supplier facility to be audited once by an independent third party using a common methodology, and share the findings with all participating customers. Learning and capacity building activities including web-based training modules and face-to-face events. For example, Vodafone participated in the first supplier forum held in Shenzhen, China, in 2008. Carbon Disclosure Project Vodafone participates in the Carbon Disclosure Project (CDP) Supply Chain programme. Participating companies use the CDP system to collect information from suppliers on emissions and targets and programmes for greenhouse gas emission reductions. Finance Finance Basis of preparation The Consolidated Financial Statements are prepared in accordance with International Financial Reporting Standards (" IFRS" ) as issued by the International Accounting Standards Board (" IASB" ). The Consolidated Financial Statements are also prepared in accordance with IFRS adopted by the European Union (" EU" ), the Companies Act 1985 and Article 4 of the EU IAS Regulations. The preparation of financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. For a discussion on the Group's critical accounting estimates see " Critical Accounting Estimates" on page 85. Actual results could differ from those estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods. Amounts in the Consolidated Financial Statements are stated in pounds sterling. Significant accounting policies 
Accounting convention
The Consolidated Financial Statements are prepared on a historical cost basis except for certain financial and equity instruments that have been measured at fair value. Basis of consolidation The Consolidated Financial Statements incorporate the financial statements of the Company and entities controlled, both unilaterally and jointly, by the Company. Accounting for subsidiaries a subsidiary is an entity controlled by the Company. Control is achieved where the Company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. The results of subsidiaries acquired or disposed of during the year are included in the income statement from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the Group. All intra-group transactions, balances, income and expenses are eliminated on consolidation. Minority interests in the net assets of consolidated subsidiaries are identified separately from the Group's equity therein. Minority interests consist of the amount of those interests at the date of the original business combination and the minority's share of changes in equity since the date of the combination. Losses applicable to the minority in excess of the minority's share of changes in equity are allocated against the interests of the Group except to the extent that the minority has a binding obligation and is able to make an additional investment to cover the losses. 
Business combinations
The acquisition of subsidiaries is accounted for using the purchase method. The cost of the acquisition is measured at the aggregate of the fair values, at the date of exchange, of assets given, liabilities incurred or assumed, and equity instruments issued by the Group in exchange for control of the acquire, plus any costs directly attributable to the business combination. The acquirer’s identifiable assets and liabilities are recognized at their fair values at the acquisition date. Goodwill arising on acquisition is recognized as an asset and initially measured at cost, being the excess of the cost of the business combination over the Group's interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognized. The interest of minority shareholders in the acquire is initially measured at the minority's proportion of the net fair value of the assets, liabilities and contingent liabilities recognized. Previously held identifiable assets, liabilities and contingent liabilities of the acquired entity are revalued to their fair value at the date of acquisition, being the date at which the Group achieves control of the acquire. The movement in fair value is taken to the asset revaluation surplus. Interests in joint ventures A joint venture is a contractual arrangement whereby the Group and other parties undertake an economic activity that is subject to joint control; that is, when the strategic financial and operating policy decisions relating to the activities require the unanimous consent of the parties sharing control. The Group reports its interests in jointly controlled entities using proportionate consolidation. The Group's share of the assets, liabilities, income, expenses and cash flows of jointly controlled entities are combined with the equivalent items in the results on a line-by-line basis. Any goodwill arising on the acquisition of the Group's interest in a jointly controlled entity is accounted for in accordance with the Group's accounting policy for goodwill arising on the acquisition of a subsidiary. 
Investments in associates
An associate is an entity over which the Group has significant influence and that is neither a subsidiary nor an interest in a joint venture. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies. The results and assets and liabilities of associates are incorporated in the Consolidated Financial Statements using the equity method of accounting. Under the equity method, investments in associates are carried in the consolidated balance sheet at cost as adjusted for post-acquisition changes in the Group's share of the net assets of the associate, less any impairment in the value of the investment. Losses of an associate in excess of the Group's interest in that associate are not recognized. Additional losses are provided for, and a liability is recognized, only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate. Any excess of the cost of acquisition over the Group's share of the net fair value of the identifiable assets, liabilities and contingent liabilities of the associate recognized at the date of acquisition is recognized as goodwill. The goodwill is included within the carrying amount of the investment. The licenses of the Group's associated undertaking in the US, Verizon Wireless, are indefinite lived assets as they are subject to perfunctory renewal. Accordingly, they are not subject to amortization but are tested annually for impairment, or when indicators exist that the carrying value is not recoverable. 
Intangible assets
Goodwill Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the Group's interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognized at the date of acquisition. Goodwill is initially recognized as an asset at cost and is subsequently measured at cost less any accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each balance sheet date. Goodwill is not subject to amortization but is tested for impairment. Negative goodwill arising on an acquisition is recognized directly in the income statement. On disposal of a subsidiary or a jointly controlled entity, the attributable amount of goodwill is included in the determination of the profit or loss recognized in the income statement on disposal. CHAPTER 6 SWOT ANALYSIS SWOT ANALYSIS Following is the SWOT Analysis for Vodafone STRENGTH The company is Very focused on telecom. It has Leadership in fast growing cellular segment. The only Indian operator, other than VSNL, that has an international submarine cable. Advertisement strategy of the company. WEAKNESS Low penetration Rural market The fast-expanding IPLC market. Latest technology and low cost advantage. Huge market. Competition from other cellular and mobile operators Saturation point in Basic telephony service 
Poor network coverage in the rural areas
OPPORTUNITIES & THREATS STRENGTH VERY FOCUSED ON TELECOM : Vodafone is largely focused on the telecom, around 93% of the total revenue comes from telecom (Total telecom revenue Rs 3,326). LEADERSHIP IN FAST GROWING CELLULAR SEGMENT: Vodafone is holding leadership position in cellular market. Vodafone is one of India's leading private sector providers of telecommunications services based on an aggregate of 27,239,757 customers as on August 31, 2006, consisting of 25,648,686 GSM mobile and 1,591,071 broadband & telephone customers. PAN INDIA FOOTPRINT: Vodafone offers the most expansive roaming network. Letting you roam anywhere in India with its Pan-India presence, and trot across the globe with International Roaming spread in over 240 networks. The mobile services group provides GSM mobile services across India in 23 telecom circles, while the B&T business group provides broadband & telephone services in 92 cities. THE ONLY OPERATOR IN INDIA OTHER THAN VSNL HAVING INTERNATIONAL SUBMARINE CABLES: Vodafone, the monopoly breaker shattered the Telecom monopoly in the International Long Distance space with the launch of International Submarine cable Network i2i jointly with Singapore Telecommunications Ltd. in the year 2002. This has brought a huge value to the IPLC customers, delivering them an option besides the incumbent carrier, to connect to the outside world. WEAKNESS PRICE COMPETITION FROM BSNL AND MTNL: Vodafone is tough competition from the operators like BSNL and MTNL as these two operators are offering services at a low rate. LOW PENETRATION RURAL MARKET: Although Vodafone have strong Presence throughout the country but still they are far away from the Indian rural part and generally this part is covered by BSNL so indirectly Vodafone is losing revenue from the rural sector. OPPORTUNITIES THE FAST EXTENDING IPLC MARKET: An IPLC (international private leased circuit) is a point-to-point private line used by an organization to Communicate between offices that are geographically dispersed throughout the world. An IPLC can be used for Internet access, business data exchange, video conferencing, and any other form of telecommunication. Vodafone Enterprise Services and SingTel jointly provide IPLCs on the Network i2i. The Landing Station in Singapore is managed by SingTel and by Vodafone in Chennai (India). Each Landing Station has Power Feeding Equipment, Submarine Line Terminating Equipment and SDH system to power the cable, add wavelengths and convert the STM-64 output to STM-1 data streams respectively. LATEST TECHNOLOGY AND LOW COST ADVANTAGE: The costs of introducing cellular services for Vodafone are marginal in nature, as it needs only to augment its cellular witch/equipment capacity and increase the number of base stations. The number of cities, towns and villages it has covered already works to its advantage as putting more base stations for cellular coverage in these areas comes with negligible marginal cost. Besides such cost advantages, it has also other cost advantages for the latest cellular technology. As a late entrant into the cellular market, it has dual advantage of latest technology with modern features, unlike other private cellular operators who started their service more than 4-5 years back and low capital cost due to advantages of large scale buying of cellular switch/equipment. HUGE MARKET The cellular telephony market is presently expanding at a phenomenal / whopping __ rate every year and there is still vast scope for Vodafone to enter /expand in this market. Besides there is a vast rural Segment where the cellular services have not made much headway and many customers are looking towards Vodafone for providing the service to them. With its wide and extensive presence even in the remotest areas. THREATS 
competition from other cellular operators like bsnl,Airtel,idea.etc
TRAI interference and regulation may reduce growth potential.
CHAPTER 7 Findings & SUGGESTIONS Findings Vodafone entered in broadband and fixed phone line market. Vodafone has now outsourced some of its services like customer services to IBM. 
Vodafone Essar has nearly 2.2 million subscribers with a market share of 24.2%.
Vodafone has 24/7 customer service with a tag line “HAPPY TO HELP YOU”.
Vodafone has magic box handsets and business handset to reach their customer’s specification.
Vodafone advertising strategies are impressive to attract and add on more customers.
Suggestions After the complete analysis of entire study the company put forward a set of recommendations which are as follows: 
PRICING
Depending on the market conditions / competition from cellular or wll-mobile service providers and also to suit local conditions, there should be flexible pricing mechanism (either at central or local ). 
IMPROVEMENT IN TECHNOLOGY
Vodafone should immediately shift to third generation switches by replacing its c-dot switches. This will improve the quality of service to desired level and provide simultaneous integration with the nationwide network. The special distribution of the transmission towers should be increased to avoid " no signal pockets" 
ESTABLISHMENT OF DISTRIBUTION CHANNELS
Vodafone should establish widespread and conspicuous distribution to match that of the competitors. The distribution network shall make the product visible and available at convenient locations. 
LOW PENETRATION RURAL MARKET
Large part of Indian rural market is still untapped therefore Vodafone is required to bring that area under mobility. Conclusion Indian economy is an emerging one and is growing very fast in market competition level among telecommunication services providers. New players are coming who will necessarily intensify the competition. New products and new schemes are being offered by the telecom service providers. The need for large information capacity has grown tremendously due to the demand of real time information. Vodafone company is providing cheaper call rates and good service to the customers,the company advertisement and marketing strategy are impressive and attracting customers they have many tariff plans for different category of people. Vodafone is a international company which has its own reputation. Indian telecom companies are putting in their best offer to rope in major telecom operators of the world e.g. Vodafone, Aircel and MTNL etc. are playing their role in synergy with the operation of the Indian companies. Process of acquisition and merger are in process and future will be only for those companies who have an edge over others in the field. Service provided and the better quality of network etc. Vodafone has various functional departments such as human resource management, training and development, sales and marketing, supply chain management and finance department. In a very competitive telecom market in India due to its brand image and brand positioning the company has a huge growth potential CHAPTER 8 ANNEXURES BIBLIOGRAPHY WWW.TRAI.GOV.IN WWW.VODAFONE.COM

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