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Cross Border Management

Executive Summary

The report is a study of cross border management issues faced by organisations. In particular the report studies the market entry of UK based telecommunication company Vodafone in China. An analysis of Chinese culture has been carried out and using key Hofstede variables namely Power Distance, Uncertainty avoidance, Individualism vs collectivism, masculinity and Short term vs Long term orientation. It has been founds that chines culture is significantly different from UK culture. In addition ethical challenges that the company might face have also been discussed. On the basis of cultural analysis management has been recommended to review the environment both micro and macro and emphasis on language adoption and technology empowerment should be made.

1          Introduction

Vodafone is operating as mobile network company since 1985 which started its operations from UK. Now Vodafone has become the preferred network of more than 400 million individuals around the world(Vodafone Group Plc, 2014). Being an international organisation, Vodafone seeks to capture international opportunities that accelerate the growth of its ever expanding network and presence. K Vodafone has been chosen as an organisation looking to expand its international presence in emerging markets.

Cross Border Management
Windsor, Ontario. August 25, 2015 - Alicia Pomeroy studies Border Management and International Trade at University of Windsor Tuesday August 25, 2015. (NICK BRANCACCIO/The Windsor Star)

Vodafone started as a small mobile operator in Newbury in UK and it took 30 years to Vodafone to become one of the leading and most valuable telecom brands in the globe. Vodafone is operating in 27 countries with its equity stake and have partnered with local operators in other 48 countries which make up a large extensive global presence of this telecom brand. Over the years, keeping in demands of new trends in society and in business world, Vodafone offers fixed broadband as well to around 9 million customers in 17 markets. Vodafone has set itself apart from its competitors by providing best network, customer experience and integrated solutions. Vodafone stays on its toes to adapt changes taking place in customer behaviour, technology, regulation and competitive moves of competitors and respond to these changes and evolving external environment through strong and flexible strategy. Vodafone earned this image of best network service provider across the globe by ensuring trouble-free services including mobile and fixed-broadband services.Vodafone splits its business operations into two regions; Europe and Africa, Middle East and Asia Pacific (AMAP). AMAP region includes emerging markets in which Vodafone operates. In European markets, Vodafone occupied anyone slot from top two slots in most the markets. Vodafone managed to grab around 25% to over 40% market share in European markets. Due to recent acquisition of Kabel Deutschland in Germany and proposed acquisition of Ono boosting in Spain, Vodafone’s share is growing in fixed line across Europe. The demand for telecommunication services grow strongly each day as the technology advancing and communication gap between people shrink. Around 74% of mobile users are in emerging markets which indicates that mobile phone services are popular in emerging markets and people are more inclined towards using mobile service than in people in mature markets. The growth in mobile users is supported by favorable growth drivers(Vodafone, 2013).

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