Vodafone

The Academy of Economic Studies Entrepreneurship and Business Administration – English teaching

Vodafone Romania -

Elena Nichifor Group number 2 Proffessional Master

1

TABLE OF CONTENTS

INTRODUCTION...........................................................................................................................3 1. COMPANY DESCRIPTION:................................................................................................... 3 2. MISSION STATEMENT, VISION, OBJECTIVES IDENTIFICATION................................ 9 4. BUSINESS, MARKETING, HR, ORGANISING AND PRODUCTION STRATEGIES ANALYSIS....................................................................................................................................18 5. FINANCIAL INDICATORS :.................................................................................................23 6. DEPARTMENT DESCRIPTION AND JOB DESCRIPTION:..............................................25 7. ONE/MORE PROBLEM(S) IDENTIFICATION:..................................................................28 8. SOLUTIONS AND RECOMMENDATIONS FOR THE IDENTIFIED PROBLEMS.........29 CONCLUSIONS............................................................................................................................ 30 Bibliography .....………………….…………………………………………………………….. 32

INTRODUCTION

2

I have chosen this company because it is a multinational world-wide known one which offers the opportunity to develop yourself and to make a carrier

within the

company. Moreover, it offers me the possibility to get in touch with many successful people within the company from which I have a lot to learn. Not even the good performance that the company has attracted me, but also the possibility to get involved in certain Vodafone programs which are related to non- governmental companies which help in sustaining and developing the country (helping poor people, helping students, teachers with financial problems etc.)

1. Company description:

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'. 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. 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 emerged 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 AirTouch Communications, Inc. (‘AirTouch’), the company changed its name to Vodafone AirTouch 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. 3

Vodafone is a Romanian mobile phone network operator. It launched in April 1997 as the first GSM network in Romania (although not the first mobile phone network). Until October 2005 (shortly after acquisition by Vodafone), it was known as Connex, after which it was rebranded Connex-Vodafone and in April 2006, the Connex name was dropped, the operator being simply known as Vodafone Romania, aligning itself with the global Vodafone brand. Vodafone Romania is a wholly owned subsidiary of Vodafone Group plc, and is the seventh-largest Vodafone subsidiary in the world by number of subscribers. Vodafone became the majority

stakeholder

after

it

brought

79%

of

Mobifon's

shares

from

Canadian

company Telesystems International Wireless, which had been the previous majority shareholder. Furthermore it recently acquired 5% of Mobifon's shares from Canadian Entrepreneur Elani Grobler. The operator is the main competitor of Orange for the 22.8 million active mobile telephony users in Romania.[1] Connex, the ancestor of Vodafone Romania, held the largest number of subscribers, except the year 2000, until September 2004, when Orange edged ahead. The motto of Vodafone is Trăiește fiecare clipă (rendered in English by the company as Make the most of now, a more accurate translation would be "Live every moment"). Previous mottos were: Tu faci viitorul (You create the future) and Viitorul sună bine (The future sounds good).

Board Members: 

John Buchanan - Deputy Chairman



Andy Halford - Chief Financial Officer



Alan Jebson



Nick Land



Anne Lauvergeon

4



Simon Murray



Luc Vandevelde

The Group is listed on the London and NASDAQ (ADR listing) stock exchanges and is headquartered in London and it has over 275,000 base station sites across their markets (as of December 2014). The services that Vodafone provides are the following: 1. Voice: Over 1.2 trillion minutes of calls were carried over our networks last year 2. Messaging: were sent over 337 billion text, picture, music and video messages last year 3. Data: Over 544 petabytes of data were sent across our networks last year 4. Fixed: Vodafone serves over 11 million customers, mainly in Germany, Spain and Italy 5. Other services : from letting other ‘virtual’ operators use our network and from partners outside our footprint using our products and services (like Digi, here, in Romania) The telecommunication industry (mobile industry) is an industry with 5.6 billion consumers with growth driven by increasing global demand for data services and rising mobile penetration in emerging markets.stry Data traffic has more than doubled year-on-year due to usage of smart connected device Revenue and customers: The mobile industry generates around US$900 billion of annual revenue and accounts for around 1.5% of world GDP. There are 5.6 billion mobile customers which is equivalent to around 80% of the world population.

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Approximately 75% of mobile customers are in emerging markets such as India and China. Mobile services account for around 60% of telecommunications revenue with the remainder coming from fixed. Within mobile the majority of income comes from voice calls in mature markets such as Europe. However, the fastest growing revenue segment is data services such as access to the internet through laptops, tablets and smartphones. The

number

of

mobile

customers

far

exceeds

other

forms

of

electronic

communication. Only 1.3 billion people have fixed line telephones, 2.1billion have access to the internet and 1.2 billion have televisions. The mobile proportion of voice calls has increased over the last five years and now accounts for 82% of all calls made, with the remainder over fixed lines, reflecting the benefits of mobility, lower cost handsets and cheaper calling plans.

Mobile customers March 2011: 5.6 billion (%)

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Competition and regulation: There are typically between three to five mobile network operators per market, although in some markets, such as India, there are considerably more. Regulators continue to seek to impose policies to lower the cost of access to mobile networks. The telecommunications industry is competitive with consumers having a large choice of mobile and fixed line operators from which to select services. Newer competitors, including handset manufacturers, internet companies and software providers, are also entering the market offering integrated communication services. Industry regulators continue to impose lower mobile termination rates (the fees mobile companies charge for calls received from other companies’ networks) and lower roaming prices. The combination of competition and regulatory pressures contributed to a 10% decline in the global average price per minute in the 2010 calendar year. However, price pressures are being partly offset by increased mobile usage leading to a 6% increase in mobile service revenue over the same period.

Mobile

penetration

March 2011 (%)

7

In the future: 

Mobile data traffic is driving revenue growth.



Network speeds are increasing dramatically because of improving technology.



The pace of product innovation remains high.

In 2006 data accounted for 3% of industry revenue, in 2010 it reached 13% and by 2014 it is expected to be 21%. Demand is being driven by the widening range of smart connected devices, such as mobile broadband sticks, smartphones and tablets, greater network speeds and an increased range of applications with greater functionality. Smartphone sales grew by 66% in the 2010 calendar year, compared to a 16% increase in the 2009 calendar year, and are expected to continue to grow due to lower entry prices, device innovation and attractive applications. Today’s 3G networks offer typically achieved data download speeds of up to 4 Mbps which is around 100 times faster than that delivered by 2G networks ten years ago. The industry has recently begun to deploy 4G/LTE networks which will provide typically achieved rates of up to 12 Mbps, depending on the capability of the devices and the network. Device innovation is a key feature of our industry. Recent developments include femtocells which enhance customers’ indoor 3G signals via a fixed line broadband connection and mobile Wi-Fi devices which allow customers to share their mobile broadband connection with others.

Emerging markets 

Mobile phone usage continues to grow rapidly.



Data represents a significant growth opportunity.

The number of customers using mobile services in emerging markets such as India and Africa has grown rapidly over the last ten years, increasing by over 17 times, compared to nearly 130% in more mature markets such as Europe. The key driver of growth has been a fundamental

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need for communication services against a background of often low quality alternative fixed line infrastructure and strong economic growth. Most of the future growth in mobile customers is expected to continue to be in emerging markets where mobile penetration is only around 70% compared to approximately 130% in mature markets such as Europe, supported by the expectation of continued strong economic growth. Data also represents a substantial growth opportunity in emerging markets both in terms of mobile broadband and mobile internet services. It is being driven partly by the lack of fixed line broadband infrastructure but also by locally relevant content and services in local languages, and software innovations that give customers a high-quality mobile internet experience on affordable handsets.

Emerging market customer growth will be driven by rising mobile penetration and GDP growth

2. Mission statement, vision, objectives identification

Mission: Vodafone is primarily a user of technology rather than a developer of it, and this fact is reflected in the emphasis of our work programme on enabling new applications of mobile communications, using new technology for new services, research for improving operational efficiency and quality of our networks, and providing technology vision and leadership that can contribute directly to business decisions 9

Vision: To be the world’s mobile communication leader – enriching customers’ lives, helping individuals, businesses and communities be more connected in a mobile world. Main objectives: - drive operational performance - pursue growth opportunities in total communications - execute in emerging markets - strengthen the capital discipline to drive shareholder return

3. External analysis: Strengths : World’s second largest mobile service provider by subscribers – Vodafone’s customer base of 435 million in various parts of world is its biggest asset. It is either the market leader or is among the top 3 service providers in every country. Such strong position often implies financial leverage, larger capacity to absorb risks and greater capability to steer the market direction. Geographically diversified business – Looking closely at the countries listed above, it is easy to conclude that Vodafone has a presence in all kinds of mobile markets. Developed markets like Germany and UK bring bulk of revenue. Then there are markets like India that have immense growth potential both in voice and data. So declining business in one region can be compensated by growth in another. Developed and advanced network – While not necessarily the trailblazer of LTE network launch in its areas of operation, Vodafone deployed LTE and high-speed wireless networks in most of its markets within a few years of spectrum allocation or ecosystem stabilization. In 2010, Vodafone had LTE running in Germany for the first time. Within the next 2 years, they followed it up by launching LTE in Portugal, Romania, Spain, UK, Australia, South Africa and many other nations. Networks in India, Egypt and Turkey are also in the process of upgradation. Similarly, in 10

the first half of the last decade, the operator was aggressive in providing 3G services. The overall perception of Vodafone’s wireless network is positive in most countries. Strong brand recognition – Aggressive strategy, creative advertising, decent customer service and employee-friendly policies have helped Vodafone in cementing its place among the better brands of the world. This makes it easy for them to win new customers and retain the existing base.

Weaknesses : Sluggish economic conditions in Europe – The continent brings in about two-thirds of the revenue for Vodafone. Consequently, the operator suffered when the European economy was weak over the past few years. Some of the worst hit nations were Greece, Spain, Portugal, Ireland and Italy. Incidentally, Vodafone has huge presence in all these countries. Lower disposable income and high unemployment prompted customers to cut down on their mobile phone bills. The region is now showing signs of revival but the road to recovery is long. Cut throat competition everywhere – In its homeland, Vodafone is pitched against EE (Orange and Deutsche Telekom), Telefonica’s O2 and Hutchison’s 3 (Three) network. In Spain, it is up against Telefonica owned Movistar and Orange. Telecom New Zealand and 2degrees are rivals in New Zealand. Apart from Vodacom, South Africa also has MTN, Cell C and Telkom. The scenario for Vodafone is similar in other developed and emerging markets. High competition has hit the bottom line/ARPU and on this end, no respite is expected in the short term. Absence from the profitable US market – Vodafone does not provide wireless telecom services in the United States although it does have a small enterprise business in the country. It sold the 45% stake in Verizon for $130 billion last year. Despite the argument that Sprint and TMobile are weaker, higher tariffs have made sure that all major telcos in America are overall strong financially. Unfortunately, lack of presence in USA is a drawback about which Vodafone cannot do much.

Opportunities: 11

Project Spring – After returning money to shareholders and paying taxes, Vodafone still made a net profit of about $40 billion from selling its Verizon share. The telco plans to spend the bulk of that windfall or about £19 billion ($32.3 billion) on upgrading its European networks to 4G and LTE and enhance its networks in developing markets to 3G or faster speeds. The LTE coverage has been achieved in more than half of Europe. This investment is a tremendous long term opportunity for Vodafone to position itself as the leader of high speed and reliable wireless services. Emerging markets like India – Regions where people still either don’t have mobile phones or use 2G feature phones offer a lot of potential for business development. Vodafone has about 170 million voice subscribers in India and less than 10% of those use 3G data. The company’s India service revenue grew 10% in the latest quarter. Turkey still hasn’t reached 100% mobile phone penetration and more than one-third of its population has not used 3G. Likewise, Africa has a lot of untapped market. Fixed telecom and cable services – Vodafone has been aggressively looking to expand towards non-mobile services in order to diversify its portfolio and generate new sources of income. It acquired Cable & Wireless in 2012 and thus became unified enterprise communications provider in UK. Last year, it bought Germany’s largest cable operator, Kabel Deutschland for $10.4 billion and followed that up with a takeover of the Spanish cable provider Ono for about the same price. Vodafone already provides fixed phone services in a few regions. Clearly, it intends to evolve into a fully integrated telecom service provider in the long term.

Threats : Market saturation in Europe – Europe’s share of subscribers is 30%, but it brings in more than two-thirds of the revenue for Vodafone. This demonstrates the extent of its dependence on the continent. Since the mobile phone penetration in most of its European markets is about 100%, the scope of growth, apart from services like LTE, is limited. Not surprisingly, its service revenue from the region declined by 7.9% in the recent quarter. The trend has been downwards for a few years now. If a company’s profits are decreasing in its most important region, it is a big threat. 12

Uncertain regulatory climate – Telecom policy and regulation has been a challenge for the industry in many parts of the world. In Europe, the big issues are falling mobile termination rates and reduced roaming charges. Remember, what is good for the customer is not necessarily great for the service provider. A friendly M&A policy would be a big boost for established players like Vodafone. EU has been looking at consolidation norms and may allow 3 operators in its member countries. Regulatory framework looks better in India too, but is still far from being industry-friendly. Over-the-top (OTT) services – An increasing menace for the wireless telecom service providers has been the rise and rise of OTT. Its simple, if I can talk and see my family halfway across the world by using WiFi, then why would I use my phone minutes? Skype, WhatsApp, iMessage and many similar mobile applications have reduced the need to be dependent on the cellular network. Going forward, this scenario is only going to get worse. Vodafone has introduced bundled plans and partnered with OTT services to do some damage control. Porter’s five forces model:

Buyers : The main factor that have marked recent developments in the mobile services market is the enlargement of subscriber bases in the developing economies, particularly in the major emerging markets but also in the industrialized countries, despite already high penetration rates. During the period 2007‐2012 mobile subscriber bases expanded at an annual rate of 21‐ 26%. The number of mobile subscribers passed the 2‐billion mark during 2005 and the 3‐billion mark during 2012 Rivalry: As the European telecommunications market is highly saturated and regulated, it is characterized by high levels of competition, whereas the situation in the emerging market is

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more favourable for Vodafone. Telefónica O2, T‐Mobile and Orange are the main competitors of Vodafone in the telecommunications market. Substitutes: The increasingly vague scope of the market boundaries has drawn considerable interest within the industry. Fixed‐mobile line conversion is a real future prospect for network operators. Research shows that the total number of fixed lines fell by 1% in 2012 and by 1.8% in 2013. One of the main driving forces of this change is their substitution by mobile service. A survey by the European Commission indicates that within Europe‐5 countries, 15% of the households are mobile only. Entrants: New initiatives from outsiders are not likely in an industry that is highly regulated and protected by significant barriers to entry and high initial fixed cost requirements. Yet the increasing interdependence between mobile network operators and online entertainment providers (music, video, data downloads) leads to a redefinition of the industry boundaries. In the long run, communications’ usage and purchases will be increasingly intertwined with those of other digital goods. This is already happening now “with VoIP28, cablecos and Internet access providers (who) are now addressing the traditional fixed voice market of the incumbents and plan to enter the mobile voice segment as MVNOs. Making the opposite move, incumbents are pushing TV through their IP pipes, and mobile carriers have introduced mobile TV through 3G. As a major driver in the industry, fixed mobile convergence (FMC) will increasingly drive fixed and mobile carriers to the same battlefield. Suppliers: In the context of the mobile network operators market, the concept of suppliers should be redefined indicating the providers of mobile devices, but also the providers of network infrastructure, software and additional digital services. While it is very important for network operators to sustain a close relationship with device providers, there has been a shift to increase independence. Indicatively, Vodafone’s global presence means it has significant purchasing power allowing it to secure exclusive deals with phone manufacturers. Yet it is known in the industry that Vodafone is keen to develop its own, branded phones in an attempt to break the power of Nokia on the phone market, thus at the same time reducing the firm’s dependence and making its offerings more complete. PEST analysis: 14

The main political factors affecting Vodafone include EU Roaming Regulation that aims to decrease charges for mobile phone usages abroad by 70% (Preissl et al, 2009) and increasing level of consumer rights within Europe, and decisions made by European Union Regulatory Framework for the communications sector. Moreover, any government intervention through legislation or otherwise in the markets Vodafone operates can be considered as political factors. Economical factors also affect Vodafone main of which are the growth of GDP and the level of inflation rate within markets where the company operates. Furthermore, global economic issues like the global financial crisis of 2007-2010 are also economic factors affecting Vodafone. Generally any external economic changes affecting Vodafone can be classified as external economic factors.

There is a range of social factors as well that affect Vodafone. For instance, changing work patterns that are becoming very popular make people work from home increasingly relying in communication technologies. Also, there are issues like people going ‘green’ and ageing population in developed countries that are going to affect Vodafone directly or indirectly. The impact of technological factors on Vodafone is without any doubt due to the nature of the telecommunications industry. Specifically, a technological innovation in communications and emergence of alternative means of communication such as online chatting, and Yahoo! 15

Messenger are going to affect Vodafone strategy in a way that the company is left with a choice of either to form strategic alliances with above companies or to commit to considerable amount of research and development in order to introduce innovative products and services to the market.

Competitive advantage: Vodafone has a sustainable competitive advantage: Only using valuable, rare, costly-to-imitate, and non- substitutable capabilities create sustainable competitive advantage. Vodafone had valuable, rare, costly to imitate capabilities, but these capabilities were substitutable, thus, they had a temporary competitive advantage. However, if Vodafone finds a way to successfully differentiate itself to become non-substitutable, it will have a sustained competitive advantage. This temporary competitive advantage has performance implications of average returns to above-average returns. (a) Valuable - Yes Because Vodafone sticks to what it knows best, mobile telephony, and has not ventured into fixed line.Telephony or providing content, they created value for their customers by being the best and most focused. (b) Rare - Yes Vodafone's ability to develop innovative technology and successfully merge are rare capabilities. (c) Costly to Imitate - Yes The organizational culture of Vodafone must be strong to successfully complete mergers and acquisitions, while simultaneously developing innovative technology. These capabilities have developed over time and the expertise gained will be very difficult for other firms to develop. (d) Non-substitutable - No 16

Vodafone's mobile telephony is substitutable, as evidenced by the high turnover throughout the industry.

Competitive Advantage Low Cost

C O

B

M

R

P

O

E

A

T

D

High Cost

Differentiation

I T

Overall

I

is

N

Cost

Leadership V

A

Internal

E

R

environment

based

R

Differentiation

on the firm’s

specific

S

(FSAs)

C

core

O

competencies

P

strategic

and assets.

its

O

Cost Focus

Focus

W

advantages which are its

E

Vodafone’s primary aim is to be the world's mobile communication leader enriching customers' lives through the unique power of mobile communications and also to maintain the top position in the mobile telecommunications group. With immense competition Vodafone has so far dominated the market by being the world’s leader in mobile telecommunications. Vodafone, being a global leader in mobile communications is a customer oriented company. By analysing Vodafone’s overall structure it can be understood that the reliable innovative services and the customer-centric “passion for customers” are the core products and are very important for the company. 17

Vodafone's capabilities in management and research and development should also be considered their core competencies because these abilities give them a source of competitive advantage over its rivals. Acquiring and merging with companies has allowed Vodafone to grow their customer base internationally. By investing in research and development, next generation platforms for mobile telephony for both voice and data allow Vodafone to maintain a competitive advantage. While most organizations have gone the way of outsourcing their peripheral activities while managing their core competencies in-house, a recent happening in the Wireless industry seemed to have changed this rule. March 18, 2009 witnessed an announcement from Vodafone that they have decided to outsource the administration of their large wireless network in the UK to none other than Ericsson. Vodafone’s brand image is very evident and has a strong market value, analysis. As Vodafone has a very strong market value in the UK, the report also mentions about how Vodafone prepares itself for the future. Vodafone being such a powerful brand in the Mobile industry, it is hence very important to discuss, in terms of the strategic planning, management as it will decide the future position of the company. 4. Business, marketing, HR, organising and production strategies analysis

a. Business analysis: -Licences Vodafone has mobile licences in all the countries in which it operates as they are fundamental to the provision of mobile telecommunications services - Network infrastructure Connects all customers together and enables the Group to provide mobile and fixed voice, messaging and data services -Supply chain management Handsets, network equipment, marketing and IT services account for the majority of Vodafone’s purchases, with the bulk being sourced from global suppliers

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As a Business level strategy, Vodafone has adopted a differentiation strategy which combines broad target and uniqueness global through acquisition and value’added services such as roaming and data. Moreover, it assures a balanced coordination and synergies with local initiatives.

b. Marketing analysis: Product in the marketing mix of vodafone Vodafone offers a wide range of products including Voice, messaging, data and fixed line solutions. The aim is to assist the customers with their communication needs. The core use and functionality of handsets continue to be text messaging and voice services. In order to cater for different customer needs, the company offers a wide range of tariffs targeted at different customer segments. With data usage and the need of sophisticated handsets becoming a necessity, customers are looking for the best product quality and that is what Vodafone continues to do. Therefore, Vodafone branded devices and services are designed to meet a wide range of customer preferences and needs.

The products include the following: 

Vodafone branded phones



Smartphones



Voice and messaging services



Handsets



Internet services



Value added services 19



Place in the marketing mix of Vodafone

The company continues to improve its services and currently provides 3G services based on GSM technology. However, there are plans to upgrade the network to 4G. Although most of the products are sold through the company’s customer care centers and shops, it also sells its products through independent retailers. The company has a very friendly and experienced team of customer care staff to ensure that the customer’s needs, queries and complaints are attended to. The vodafone stores are the major service providers to customers and there are large numbers of these stores in all corners of the country. More importantly, vodafone has an amazing network and has one of the most powerful cell phone range amongst all its competitors. Thus the presence and distribution of vodafone is wide spread in India. Promotions in the marketing mix of Vodafone Vodafone frequently uses local name recognitions to reach and maintain trusts of its local customers. Mary Kom, the famous boxer and Olympian is its global brand ambassador. In addition, in order to help promote its global appeal and to communicate its brand value, the telecommunication giant often uses famed sports stars like David Beckham, Michael Schumacher and others. It also advertises its brand value and offers through billboards, TV commercials and other social media outlets in order to reach a large number of people. The most famous move by vodafone worldwide was the use of vodafone zoo zoos in India during the Indian premier league. In the marketing mix of Vodafone, promotions can be the strongest point for Vodafone due to Vodafone Zoo Zoos. Vodafone zoo zoos are the most famous brand ambassadors for them and are recognized by one and all over the world. In addition, the company sends frequent press releases to keep their customers informed of new products and offers. The company also undertakes market research to determine whether its services and products are useful to the consumers. Price in the marketing mix of Vodafone Vodafone’s products and services are competitively priced and easily accessible to as many people as possible. In order to beat the competition, the company has ensured that it 20

provides high quality services such as providing high speed data and good network range as compared to what the competition is offering. Because it sells different services and products, it offers various price structures to suit different customer needs. Mini as well as jumbo prepaid and postpaid plans are available. Recently, Vodafone has doubled its 2G and 3G internet rates. This however will be followed very soon by its rivals as well as it has become impossible to contain data rates off late. For instance, it offers post paid and prepaid options as well as different tariffs. Another important pricing strategy is that the company offers reward points for specified sum of money spent on purchasing airtime vouchers or data bundles.

HR strategy: Within each operating companies of Vodafone, the company has tried to implement three boxes from Dave Ulrich’s compentency model also known as ‘Vodafone’s three box model’. The HR department has defined 6 employees ‘ touchpoints’ which they need to get right: 

Organisation and Resourcing

21



Career planning



Learning



Reward and Recognition



Communication and Involvment



Healeth, Safety and Wellbeing

For the HR strategy, Vodafone has launched in this sense a programme ‘The Vodafone Way’ in 2010. It was defined as a consistent set of values and behaviours for all Vodafone employees. Moreover, the HR managers assessed whether the employees are working in The Vodafone Way as a part of their performance reviews. This programme defines a consistent set of values and behaviours for all Vodafone employees emphasizing: Speed: bringing products and services to market quickly and prioritizing things that really matters Simplicity: making things simpler for Vodafone’s customers, business partners and colleagues Trust- acting with honesty, integrity and fairness, being reliable and transparent and valuing the confidence that people has in the company As part of the Vodafone way’s focus on customers, from November 2010 all senior leaders in local markets spend one day a month with customers ans staff in retail stores and in all call centers.

5. Financial indicators :

22

Vodafone Romania had 8,185,680 mobile customers at March 31st, 2014, which is a growth of 104,390 subscribers, year-on-year, according to key performance indicators for the fiscal year 2013/2014, from April 1st, 2013, to March 31st, 2014. Service revenues for the full year 2013/2014 reached EUR 703.7 million, decreasing by 0.9 percent compared to last year, on organic basis, mostly due to the mobile termination rate cut. Excluding the effect of the mobile termination rate cut (effective September 1st, 2012), service revenue for the full year 2013-2014 increased by 2 percent, also on organic basis. Service revenue for the quarter ended March 31st, 2014, was 173.6 million EUR, increasing by 3.8 percent year on year, on organic basis. Total revenues for the full year reached 748.5 million EUR, decreasing by 2.2 percent, compared to last year, on organic basis. Mobile data revenue increased by 20.5 percent in the quarter ended March 31st, compared to same period, last year. For full year 2013/2014, mobile data revenue increased by 25.1 percent, compared to last year. Vodafone’s EBITDA reached EUR 248.4 million for the full year 2013/2014. The EBITDA margin was 33.2 percent, which is lower by 2.8 percentage points, compared to previous year. At March 31st, 2014, postpaid customers represented 41 percent, and prepaid customers 59 percent of the mobile base. This proportion remained flat compared to last financial year. Smartphone penetration in the base increased by 4.4 percentage points in the quarter ended March 31st, 2014, compared to same period, previous year. Vodafone Romania announces key performance indicators for the quarter ended on December 31st, 2014, as reported today by Vodafone Group Plc. Vodafone Romania had 8,604,569 customers at December 31st, 2014, out of which 8,016,023 mobile customers, representing an increase of 97,130 total subscribers, compared to previous quarter. Vodafone Romania’s Mobile ARPU reached Euro 6.2 over the last 3 months. Service revenue in the quarter decreased by 5.8% on an organic basis compared to same quarter of last year following a 69% decrease in mobile termination rates, which was effective from April 1st, 2014. Excluding the 23

impact of mobile termination rates decrease, Vodafone Romania’s service revenue grew by 8.8%, as compared to same period of last year, on an organic basis. At December 31st, 2014, mobile postpaid customers represented 42.1%, and prepaid customers 57.9% of the total mobile base. Mobile postpaid base as a percentage of total mobile base increased by 2 percentage points as compared to same period of last year. Data usage increased by 76.6% for the quarter ended December 31st, 2014, compared to the same period of last year. Smartphone penetration increased by 6 percentage points in the quarter ended December 31st, 2014, compared to same period of last year. Smartphone sales increased by 41% compared to the same period of last year and by 29% versus the previous quarter, out of which 4G smartphones sales increased by 78.8%. Closing customer base at 8,604,569 , out of which mobile base of 8,016,023 at December 31st, 2014. Mobile ARPU was EUR 6.2 for the 3 months ended December 31st, 2014. Service revenue reached EUR 166.9 million for the quarter ended December 31st, 2014. If excluding the impact of the severe decrease of mobile termination rates, service revenue grew by 8.8% in the quarter ended December 31st, 2014 as compared to the same period of last year. Data usage increased by 76.6% for the quarter ended December 31st, 2014, compared to the same period of last year Vodafone Romania is a subsidiary of Vodafone Group, one of the world’s largest telecommunications companies which provides a range of services including voice, messaging, data and fixed communications. Vodafone has mobile operations in 26 countries, partners with mobile networks in 54 more, and fixed broadband operations in 17 markets. As of December 31 2014, Vodafone had 443 million mobile customers and 11 million fixed broadband customers.

6. Department description and job description:

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Department description: This department is committed to delivering quality service in an efficient, effective and timely manner. This commitment is reflected in the Statement of Strategy. Quality customer service is identified as a core competency for staff. We aim to provide high quality services to customers as stated in our Customer Charter and to continually improve the standard of the service we provide. We welcome your views on these services. Listening and responding to the views of our customers, gives us important information that will help us to improve our services. If you were particularly pleased with the service you received, we would like to know. This information will also help us to improve our services consistently across the Department. You can make your views known to the staff in the section providing the service. You can also send your comments by email using our Comment and Suggestion Form. As a customer you may be dissatisfied with the quality of service you received from the Department. We recognise that mistakes can be made and delays occur. Our complaint procedures are designed to assist you in making a complaint so that we can respond and, where possible, put things right.

Job description: Customer Service Representative General Summary: Provides customer service support to the organization by obtaining, analyzing and verifying the accuracy of order information in a timely manner. Initiates and/or implements corrective action as needed in order to ensure that an excellent standard of service and a high 25

level of customer satisfaction is maintained. Prepares customer service summary reports. Coordinates the handling of difficult and/or unusual situations. Answer phones to respond to orders, general customer inquires, invoice questions, and customer complaints. Project a professional company image through phone interaction.

PRIMARY RESPONSIBILITIES 

Answer phones and respond to customer requests.



Sell product and place customer orders in computer system.



Provide customers with product and service information.

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Upsell products and services.



Transfer customer calls to appropriate staff.



Identify, research, and resolve customer issues using the computer system.



Follow-up on customer inquires not immediately resolved.



Complete call logs and reports.



Research billing issues.



Research misapplied payments.



Recognize, document and alert the supervisor of trends in customer calls.



Recommend process improvements.



Other duties as assigned.

ADDITIONAL RESPONSIBILITIES

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

Provide on-the-job training for new employees.



Generate customer thank you letters.

KNOWLEDGE AND SKILL REQUIREMENTS 

Basic reading, writing, and arithmetic skills required. This is normally acquired through a high school diploma or equivalent.



Computer literate with the ability to learn customer service software applications. Duties require professional verbal and written communication skills and the ability to type 30 wpm. This is normally acquired through one to three years of office experience.

WORKING CONDITIONS Working conditions are normal for an office environment.

7. One/more problem(s) identification: Being a multinational company which has spread all over the world, is has developed on a large scale here in Romania also. As a consequence, Vodafone thought it would be a solution to create certain business partnership with other companies to take over some of its departments. One of this department is the Telesales one, which is in charge with the customer retention. Because of the fact that the employees of the companies with whom Vodafone collaborates have certain targets for their salaries depending on how much they retain the Vodafone’s customer, 27

those who work in such departments often make some certain mistakes in order to retain our customers. Working in this Call center department, I have received various calls from our customers which were unsatisfied with the post-pay business plan offered by this Telesales department. Not oonly that they struggle very hard in retaining the customer, but they promise certain benefits that the customer at the end doesn’t have. Moreover, those employees insist very much in retaining the customers bothering them and coming back very often in order to achieve their personal targets. They do not listen very carefully the customers demands and wants and they offer which best suits for their targets. Furthermore, even the Vodafone employees which are found in the retail Vodafone stores apply the same tactics as the ones from Telesales. A lot of calls received were complaints about the post-pay subscription that those sellers made. Not only that they presented certain benefits and activated others, but they also made some important mistakes in implementing those subscriptions. Certain customers were surprised in finding out that the subscription contract does not stipulate what they verbally agreed in the store. The difficulty arises from the fact that, once signed in store, it is often impossible to modify, given the fact that the client’s signature is visibly there, on the contract. Another important problem is the collaboration with the partner stores. Not only that they have different policies and they apply different taxes (which unfortunately are higher than the ones found in retail Vodafone stored), but they charge the customer for services which generally should be free of charge (like SIM replacement, SIM localization).

8. Solutions and recommendations for the identified problems For the Telesales department I consider that it would be an effective solution trying to create an internal Vodafone department even if it would mean to invest more in training and salaries because the commitment of the internal employees is much higher and they are trained better. Another sollution I consider it would be to permanently verify, monitor and control the 28

Telesales performance (at a department level and at individual level) and to adopt the targets and the result (with the proper rewards) depending on their result considering also the complaint which get to us, the Call center department. In my opinion, a good solution would be to strongly verify, monitor and control the employees from the store and make some evaluation criteria depending on the claims made by the customers after signing the subscription contracts. Another idea would be to adapt the salary targets according to the monthly claims made by the consumers, and at every two or three months to make a proper evaluation of them with the necessary trainings. When speaking about the partnership stores, I suppose that imposing certain policies for the companies which collaborates with Vodafone would be the best solution so as the client wouldn’t consider that it is Vodafone’s mistake and problem, not of the partner store in particular because the client has the tendency to consider our company faulty, not the stores which collaborates with it.

Conclusions Vodafone Romania is a wholly owned subsidiary of Vodafone Group plc, and is the seventh-largest Vodafone subsidiary in the world by number of subscribers. Vodafone became the majority

stakeholder

after

it

brought

79%

of

Mobifon's

shares

from

Canadian

company Telesystems International Wireless, which had been the previous majority shareholder. Furthermore it recently acquired 5% of Mobifon's shares from Canadian Entrepreneur Elani Grobler. 29

The main important steps that Vodafone follows: 

Takensteps tomake apositive difference, by supporting recycling campaigns



Win-win-win situation for shareholders, employees & the environment



Improved relationships between stakeholders & has helped to ensure future growth



Y’ll spend one-to-two years in a variety different learning environments, working alongside experts and gaining real-life experience and I’ll have the chance to achieve a full qualification in my field Over 12 months Y’ll spend time in training centres and out in the field, giving me both real work experience and the best training from their dedicated assessor and their in-house team. Over 18 months Y’ll spend time in training centres and out in the field, giving an advanced insight into customer projects and solutions alongside training The Vodafone Way. Live the university lifestyle or spend time in the field. Y’ll be supported by your dedicated assessor and will take modular exams throughout the course.

  

Not only that I have learned what a complex job is in the call center department, but I consider that it is very important to start from the bottom (to create a perfect insight about the company’s products/services/way of doing things and moreover, the problems that this company encounters) in order to get to the top. Which is also important for me is that it gives me the opportunity to easily promote to other departments after 3 months, meanwhile having the opportunity to learn everything about the Vodafone’s clients and their complaints or satisfactory benefits.

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http://business-review.eu/featured/vodafone-romanias-total-revenues-and-customer-base-keepstable-course-in-fiscal-year-20132014-63040 http://www.comunic.ro/article/vodafone-romania-reports-financial-results-quarter-endeddecember-31st-2014 https://vodafone.taleo.net/careersection/2a/jobdetail.ftl?job=ZAH000039 http://www.slideshare.net/torus/vodafone-comprehensive-strategic-management-model-6170809 http://www.prospects.ac.uk/call_centre_manager_job_description.htm http://www.education.ie/en/The-Department/Customer-Service/Information.html http://www.huntleigh-diagnostics.com/diagnostics/int/Page.asp?PageNumber=2510 https://thebrandbuilder.wordpress.com/2006/05/18/customer-love-10-steps-to-building-akickass-customer-service-department/

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