Financial Analysis Assigment - Vodafone

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Vodafone is a British multinational telecommunications company headquartered in London and one of the most valuable telecoms brands in the world. Vodafone owns and operates networks in 21 countries and has partner networks in over 40 additional countries. Its Vodafone Global Enterprise division provides telecommunications and IT services to corporate clients in over 65 countries. Vodafone has a primary listing on the London Stock Exchange and is a constituent of the FTSE 100 Index. It also has a secondary listing on NASDAQ.

Vodafone was founded in 1984. The evolution of 'Vodafone' started in 1982 with the establishment of the 'Racal Strategic Radio Ltd' subsidiary of Racal Electronics plc – UK's largest maker of military radio technology, which formed a joint venture with Millicom called 'Racal', which evolved into the present day Vodafone. In 30 years, a small mobile operator in Newbury has grown into a global business and one of the most valuable telecoms brands in the world. It now has mobile operations in 27 countries and partner with mobile networks in 48 more. Today, Vodafone have 434 million mobile customers around the world.

The main businesses of Vodafone are telecommunications and IT services. The company offers voice, messaging, and data services across mobile and fixed networks; fixed broadband and TV services; cloud and hosting, as well as Internet protocol-virtual private network services; roaming services; and unified communications services. It also provides M-

Pesa, a mobile money transfer and payment service that enables customers with access to a bank account to send and receive money, purchase goods, pay bills, and save money and receive short-term loans. Vodafone One Net, a converged fixed and mobile communications service for large and multinational companies, and small and medium-sized companies. In addition, Vodafone Group Plc offers M2M business solutions; carrier services, such as fixed and mobile connectivity and other services; smartphones and tablets; and telematics products and services.

Environment

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External environment: Vodafone has a significant presence in Europe, the Middle East, Africa and Asia Pacific through the Company's subsidiary undertakings, joint ventures, associated undertakings and investments. Besides that, Vodafone have established a strong relationship with almost all the mainly local services appliers in the world. Vodafone’s business is mainly split across Europe and Africa, Middle East and Asia pacific.

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Since world economy has been suffering from the crisis since 2008, and the mainly countries of Europe have been facing the debt recession problem in the past 3 years, the business increase in the past several years are not striking. However, there are some signatures of the economic recovery, which will enhance the business increase of Vodafone in Europe. Besides that, the other part of the mainly business areas, AMAP, are developed with a high increase rate even in the bad world economy environment. AMAP can be a hot spot for Vodafone’s business increase.