Vodafone New Zealand August 9, 2018 – Posted in: Buy Essay Cheap Online

Vodafone New Zealand

Executive Summary

The Vodafone New Zealand management conducts the following tasks to ensure the operations run smoothly. Strategizing the operations of the business and repercussions of certain actions to the society, staff, as well as the vision for the company, is critical. As a result, the management has scheduled dates on when they meet and strategize on what needs to be changed and where they have been going wrong as a company to realize both short-term and long-term goals. For instance, the management meets to decide, or propose on major acquisitions, investments, and capital projects that will not only make revenue to the company but also satisfy the customers for them to remain competitive in the market (New Zealand Commerce Commission. 2017). Moreover, the group’s management has been directly responsible for the growth of business in the European countries like New Zealand (Hansen, & Jones, 2017). In terms of roaming and international services, the New Zealand Vodafone was among the branches that contracted the services of America Movil back in the year 2014. The roaming at the time was as a result of demand by customers who were willing to pay more for faster internet services.

 

                                                                    Table of Contents

Executive Summary. 2

1.0 Introduction. 4

1.1 Company Background. 4

1.1.1 History of the Company. 5

1.1.2 Structure and People of the Organization. 6

1.1.3 Products and other Services of the Organization. 7

1.1.4 Vision and Goals of the Organization. 8

1.1.5 PESTLE Analysis for Vodafone New Zealand’s Market 8

1.1.5.1 Legal Factors …………………………………………………………………………………………………………9

1.1.5.2 Environmental Factors ……………………………………………………………………………………………9

1.1.5.3 Change of Company ……………………………………………………………………………………………..10

1.2 Research Objective …………………………………………………………………………………………………………..12

1.3 Data Collection and Analysis ……………………………………………………………………………………………. 12

2.0 Research Findings and Discussions. 12

2.1 Social Process perspective of Managing Change. 12

2.1.1 The Biological Perspective. 13

2.1.2 The Resource Objective. 13

2.1.3 The Political Objective. 14

2.2 Change Management Models. 14

2.2.1 The Kurt Lewin’s Change Model 14

2.2.2 John Kotter’s Change Model 16

2.3 Alternative Change Strategies. 16

2.3.1 The Total Quality Management 16

2.3.2 Balanced Scorecard by Norton and Kaplan. 16

3.0 Conclusion. 17

4.0 Recommendations. 18

5.0 References. 19

Vodafone New Zealand

1.0 Introduction

The telecommunication giant has its headquarters based in London, but operations run across many parts of the world. In the year 2018, it was ranked as the second largest mobile operator group behind the giant China Mobile. Many analysts, as well as workers, reported that Vodafone New Zealand after acquiring the rights to start operating as an Internet provider they had an energized culture. Bearing in mind that this is a company that was acquired from the BellSouth New Zealand then it is evident that there were significant operational changes in a bid to adopt the famed fun, casual, and youthful culture of the organization (Jones, 2016). The latest invention by the company is the new Television in collaboration with the Sky TV (Vodafone New Zealand, 2018). The broadband of the Vodafone TV is unlimited and have an option of adding more channels like SoHo and Sky Sport, in addition to, those provided by the Sky TV.

1.1 Company Background

With an estimated total consumer of 535 million Vodafone has a large customer base in European Countries like New Zealand (Vodafone New Zealand, 2018). The board organization and structure of the Vodafone controls all activities of the group. It exercises its authority in matters of making the final decision when it comes to performance, direction, and general management of the group business. Besides, the management makes objective judgment independently without consulting the executive management for the company when it comes to executive matters. In so doing, the board is directly responsible to the shareholders in matters touching the conduct of the business.

Also, the operating plan of the company and annual budget are some of the responsibilities of the management in line with the vision of the company and the desires of the customers. In terms of government compliance and what is needed from the voice and data the phone giant financial structure complies with the New Zealand Treasury’s tax structure like any other company (Jones, 2016). The composition of the board of directors is an indication that the group is well represented in various fields to ensure that the vision of the company is witnessed. The decisions of the board are thus passed down to various managers of the departments for implementation purposes. One of the key areas of successful voice, data, and phone business is to ensure consumer satisfaction is maintained. This is done by determining what the customers want and designing products and services that are in line with such objectives.

1.1.1 History of the Company

The company was started in the year 1998, in Auckland New Zealand. The motto is “The future is bright, are you ready” which shows why the company has been making tremendous steps in the tech industry (New Zealand Commerce Commssion, 2017). After Vodafone purchased the BellSouth in the year 1998, the next step was to make changes that were in line with the vision, culture, and demands of the Vodafone Group Inc. In so doing, training was done to the employees who had been absorbed by the parent company. Currently, the following members form the structure of the Vodafone Group in New Zealand who are responsible for making critical business and customer relationship decisions as per the vision and mission of the company. Currently, the New Zealand Vodafone reports to the regional manager of Africa, Middle East, and Asia-Pacific then most of the organizational changes are in line with the larger Vodafone Group Inc. for instance, due to the high rates of competition in countries like New Zealand mergers were important to lower the cost of operations in the country.

Acquisition of data roaming services from the America Mozil of Mexico ensured that the New Zealand Vodafone could provide services at relatively low prices in the Pacific country. This led to growth in the number of new subscription in the first years of business by more than 100% in New Zealand (Crothers, 2016)

1.1.2 Structure and People of the Organization

Russell Stanners has been the Chief Executive Officer of the New Zealand branch since the year 2005. The Finance department is headed by Director John Tombleson, Enterprise Director is Ken Tunnicliffe, Matt Williams is the Consumer Director, Helen van Orton as the Customer Operations Director, and Tony Baird is in charge of technology in the Board of Directors (https://www.vodafone.co.nz/our-company/ceo-executive-team/, 2017). The wholesale director of the Vodafone New Zealand is Steve Rieger as Juliet Jones takes charge of the legal and external affairs of the Vodafone New Zealand, Antony Welton is the Human Resources director, and finally, Luke Longney is the business manager to the Chief Executive Officer of the New Zealand Vodafone Group (Vodafone New Zealand, 2018).

1.1.3 Products and other Services of the Organization

In the year 2017, the Sky TV and Vodafone teamed up with the aim of starting the most integrated television in New Zealand. Vodafone TV, which is the latest development of technology and provision of the best services to their customers in the region. One way of cutting down the cost of the new television network was the use of cloud-based services that are free to air channels, Netflix, and movies (Vodafone New Zealand, 2018). Apart from the newly introduced digital television they also offer other products like mobile phones, broadband, Internet television, fixed line telephones, and the IPTV. All these services are offered to the Kiwis and other nationalities in not less than 150 countries.

1.1.4 Vision and Goals of the Organization

One of the transformations that the company strives to witness in the next three years is more than half digital transactions for all its customers. Additionally, more that 60 percent of all its services will be done virtually.

The project will be called “Digital Vodafone 2021 Programme in New Zealand” which will be one of the best digital interaction platforms in the world. IBX iX will support the program to ensure that it is in place by the year 2021, for better customer interaction at the least cost. The statement was confirmed by Luke Longney, the Business Manager to the CEO (New Zealand Commerce Commssion, 2017).

1.1.5 PESTLE Analysis for Vodafone New Zealand’s Market

This section looks at the political, technological, environmental, legal, and social factors affecting the organization.

The following is the qualitative data about the Vodafone New Zealand as retrieved from the (New Zealand Commerce Commssion, 2017), (Vodafone New Zealand, 2018), and (Crothers, 2016). The analysis of this data involved looking at history of the company and analyzing various events that the institution has been going through in the past as part of the PESTLE analysis.

 1.1.5.1 Legal Factors

Vodafone has to ensure it complies with legal issues not only in New Zealand, but also in other countries it has branched. Despite these efforts the company has received numerous legal complains in the past. In the year 2011, the company was fined by a New Zealand court a total of $960,000 for running a misleading advert which was a breach in consumer law. The then Commerce Commission manager of the Auckland District argues that there was enough evidence that Vodafone had violated the fair trading act. By the year 2018 Vodafone New Zealand expressed disappointment on the 27 cases against it by the regulator of the trading in New Zealand. The 2011 Dec fine was not the first occasion since four months earlier the telecommunication giant had been fined another $400,000 for breaching yet another consumer law (New Zealand Commerce Commssion, 2017). Such occurrences leave its competitors in a better position since the customers may not trust a company that is known for breaching the consumer protection laws.

1.1.5.2 Environmental Factors

The company is ethically oriented in matters of the environment. The recycling plants of the Vodafone New Zealand recycles 95% of all materials released which is within the United Nations environmental standards. The working conditions within its assembling industry and in the headquarters are noise free and clean both for the workers and the community.

1.1.5.3 Change of Company

Vodafone New Zealand has undergone tremendous changes in the past in line with the larger group and customer demands in the Asian Pacific country. By the year 2018 Vodafone had a total of over three million New Zealanders using its services up from 138,000 subscribers since the company started back in the year 1998 (Vodafone New Zealand, 2018). The increase in confidence among the users of Vodafone among the New Zealanders can be attributed to the organizational changes that have been implemented over the years, most of these changes have been as per the requirements of the Total Quality Management (TQM). Back in the year 2010, the entire Vodafone Group Plc name noticeable changes in its organizational structure that affected the services in New Zealand.

Secondly, just like other branches in other countries, the number of layers in the group’s organization had to be minimized to improve governance in the company. For example, the accountability of the New Zealand branch was to be manned by the regional CEO Head Africa, Middle East, and Asian Pacific where they had to submit nature of the assets and geographies of the region. In this case, all investments happening in New Zealand had to approve by the Regional CEO rather than the entire Group’s CEO. Ensuring that the approval layers are less not only in New Zealand but also in other countries ensures that decisions can be made faster in a more effective way.

Despite the company being named as Vodafone since it was formed back in the early 1990s, it started operating in New Zealand after buying the BellSouth New Zealand. In so doing, it bought the rights of the former tech company, properties, and trained staff who were ready to start a business. That is one of the many ways the newly formed Vodafone New Zealand was able to cut down on the costs associated with forming a new business. The changes that have been witnessed are meant to trigger emotions since most of the employees are not accustomed to the new culture. For instance, all organizations have a culture that is followed. In most cases, this is the culture that determines whether future changes will be effective. The reactions and interactions between emotions, change, and the culture of an organization contributes to the success or failure of an institution.

Studies have indicated that when employees have values that congruent with those of an organization then they are in a position to react more positively when change happens. Business mogul, Richard Branson, says that the success of any business depends on the employees. If the employees are treated well then, they are capable of ensuring that the business succeeds. Such organizational structural changes lead to process and economic changes in a country that the said company operates. In New Zealand, the Vodafone absorbed the employees of the Movil Mexico that were sent to provide data roaming services.

The development of this TV network involved the use of a central hub office box that is similar to the one being used on Apple TV (New Zealand Commerce Commssion, 2017). Additionally, the consumers who have a customer’s account will get free streaming services that are on demand like the Three Now, Netflix, On Demand, and the TVNZ. However, all customers who want to enjoy these services must have Fibre X and Fibre connections due to the high broadband required for the new television.

One of the reasons why the TV is in high demand is because users will have an option of watching their favorite programs in the house and once they leave they can continue using their smart phones. In so doing, the television will provide one of the easy to use, very compelling, and intuitive interfaces where they can use the big screen, Smartphone and iPad for a user-friendly experience, as confirmed by CEO Russell Stanners. Stanners added that advancement in technology as witnessed in Vodafone TV creates endless possibilities and those are the services that they want to give the Kiwis. The lovers of Vodafone products and viewers of Vodafone TV will now have a fantastic range of international and local contents. Most New Zealand homes will have fibre connections by the year 2022 and CEO Stanners believes that that will enables a majority of Kiwis to access the Vodafone TV. Apart from widening the customer base in New Zealand the newly introduced Vodafone TV after teaming up with Sky V will enable Vodafone to provide services at low costs.

The prices of the Vodafone broadband per month are $95 while that of the Sky TV is $50 exclusive of the $10 tax. The prices show that a majority of the New Zealanders will be able to afford the services of the HD TV once they have fibre installed.

1.2 Research Objective

The objective of this research is to outline the achievements of Vodafone New Zealand and the changes that have occurred since its inception in the year 1998.

1.3 Data Collection and Analysis

A qualitative method was used in this study to determine the changes that have occurred in Vodafone New Zealand. This involved looking at the changes that have occurred in the company including the customer base and challenges they have been facing. The 5.7% control of the IT market services that the Vodafone New Zealand enjoys could increase to at least 30% if the total quality management changes are implemented (Sadikoglu, 2014). One of the reasons for this has been difficult since most of the operational changes should be in line with the parent company and moreso the regional director should approve all recommendations.

2.0 Research Findings and Discussions

In matters of the creation of short-term wins the Vodafone New Zealand scored highly. For instance, the CEO backed the backed the technology director comments on how the introduction of the 4G network will enable them to outsmart other dominant telecommunication providers in the region like Telecom (Jones, 2016). Such a target is a short-term win since we expect the competitors to take drastic changes to remain the Kiwi market. However, such short-term wins can lead to the acquisition of permanent customers who will be convinced the Vodafone New Zealand provided the best services. Consolidation of gains comes as item number seven in the Kotter’s change model.

2.1 Social Process perspective of Managing Change

The social factors affect the change decisions of the Vodafone New Zealand. The tastes and preferences in the tech industry are critical in deciding what next should be produced to satisfy and attract more customers. Te change from 2G network to 4G network was after realizing most customers want to download HD videos. The digital and internet TVs launched by the Vodafone New Zealand was as result of connection of fibre optic cables and more customers demanding the best coverage of international and national news (Jones, 2016).

2.1.1 The Biological Perspective

The company was started in 1998, in Auckland New Zealand. The motto was “The future is bright, are you ready” which shows why the company has been making tremendous steps in the tech industry. After the Vodafone purchased the BellSouth in 1998 the next step was to make changes that were in line with the vision, culture, and demands of the Vodafone Group Inc. In so doing, training was done to the employees who had been absorbed by the parent company. This shows a total respect for the emotions of the employees which is important for a smooth running of the business (Myllylahti, 2017). The workers were prepared for a new culture that would ensure they focus on new goals and that their behaviors are in line with what the Vodafone Group wants for its workers. Once such steps are taken the corporation is in the right direction. Currently, the following members form the structure of the Vodafone Group in New Zealand who is responsible for making critical business and customer relationship decisions as per the vision and mission of the company.

2.1.2 The Resource Objective

Resources are vital in setting up a business. Vodafone Incorporation is known for setting up businesses in developed or developing countries. This is because these countries have the necessary resources needed in managing changes. For instance, presence of fibre connection in most homes means that there will be high demand of digital televisions (Jones, 2016). Also, New Zealand being one of the developed countries means that infrastructure necessary for business growth is readily available which is critical.

2.1.3 The Political Objective

The nature of politics determines whether a business will succeed or not in a country. New Zealand is a capitalist society which means the government gives freedom to business mogul to innovate and develop in the state (Crothers, 2016). Such experiences has enabled Vodafone New Zealand to realize their motto “the future is bright” since there are minimum or no interactions in their business.

2.2 Change Management Models

2.2.1 The Kurt Lewin’s Change Model

Vodafone New Zealand understands that for there to be an effective change then a perception must be created that indeed the change is necessary. After doing that the new behavior is introduced and lastly cemented as the new culture of the company. The three change processes are what Kurt Lewin suggested when he introduced the unfreezing, change of traditions, and refreezing to solidify the new changes (Hussain, 2016). For instance, after Vodafone took over as mobile and data service provider in New Zealand many people and analysts acknowledged that the new culture was better than when they were used to in BellSouth and other network providers in the region.

Thus, the management of the Vodafone first realized there is a need to come up with new ways of doing things to win a larger market in New Zealand. The first step was to retrain and induct the new employees on how the Vodafone works as they conducted preliminary research on how to penetrate the much competitive market. The training introduced the workers to a new environment and they were able to share on which areas that the company needs to exploit to succeed. After doing so they went ahead to introduce the new working system which later became the traditions of the company not only among the workers but also among the Kiwis?

Thereafter, the customers would buy sim cards that are 4G enabled and the journey of downloading movies there afterwards became a success. That was a perfect way of using the Kurt Lewin’s change theory among the Kiwi customers.

2.2.2 John Kotter’s Change Model

The John Kotter change model affected the Vodafone New Zealand back in the year 2005 when obstacles were removed to increase efficiency in operations. The management of the Vodafone Group Inc based in the United Kingdom had realized that there was an urgent need to reduce the layers for more efficiency. In this case, all the regions were grouped into two. As a result, the New Zealand Vodafone did not have to wait for the annual general meetings in London to submit their proposals of change since their regional manager was at arm’s reach. A team was built to take care of New Zealand’s projects by developing visions and communicating for buy-ins in the regions. Empowering of actions can be noted by the speed at which the proposals for the new changes are implemented (Lambert, 2018). For example, the decision to change from the 3g network to 4G network was quickly approved since the regional director understood the urgency and need for such a change.

The gains Vodafone TV network by Vodafone New Zealand are put together to reflect the success stories of the company over the years (New Zealand Commerce Commssion, 2017). This helps in understanding how they managed to convince the public when they want to make other changes and challenges that they would expect.

2.3 Alternative Change Strategies

2.3.1 The Total Quality Management

Despite being the second largest telecommunication company in the world, Vodafone New Zealand still lags behind its competitors. Having been in this market for 2 decades now it is evident that a better system f making changes would have put it in position one or two in the telecommunication market coverage. Thus, a total quality change management would have been the best way to ensure the Vodafone New Zealand becomes the best telecommunication company in the Pacific Asian country. The change entails looking at the customers’ needs and making changes based on what they want (Williams, 2014). For instance, the one time the company applied this change theory by scrapping off the roaming charges in the year 2017 they recorded an increase in the number of data users. That is an indication of the strides that the company would have made in the last 20 years it has been operating in the Kiwi soil.

The company is known for having the best working environment for its employees but that needs to be reciprocated to the customers too in New Zealand. By arraigning all the changes as per the needs of the customers these subscribers feel being part of the institution and with time the company becomes the first choice when it comes to choosing seeking IT services.

2.3.2 Balanced Scorecard by Norton and Kaplan

Learning and growth, customer perspective, financial perspective, and internal business processes are the pillars that were outlined by Kaplan and Norton as being responsible for making better changes in an organization (Kaplan, 2016). For instance, Vodafone should reevaluate its image from a customer’s view when making progress on how they can achieve their vision. In this case, the company will be in a position to attract many consumers who will help it to realize the vision. Internal Business Processes should also be re-evaluated to determine which ones are of help to the company and where changes are needed. For instance, the shareholder is regularly provided with accounting figures as one way of helping them make informed decisions. Customers also want to see added value to the products that Vodafone New Zealand is giving them to wade them from going to other providers. On learning and growth, Vodafone New Zealand has been excellent in some areas like providing marine coverage (Sadikoglu, 2014). Once Vodafone New Zealand realizes that a certain area is not well covered they invest in that region for better customer satisfaction. Over the years the company realized despite collaborating with Moxil of Mexico in roaming services the customers still complained. As a result, they learnt it was a mistake and went ahead to remove the charges. Such are the lessons learnt and action taken that indicates the company can survive in a competitive market.

3.0 Conclusion

One of the reasons for the changes was to ensure that the strategic goals of the company have improved to enhance their services among the customers. Some of the changes that were affected in New Zealand after the year 2010, changes were to ensure the company is the best data provider, most cost-efficient, improvement in brand advocacy, commercial and consumer strength, and more shareholder returns. All these changes were made to ensure that the New Zealanders are served well, which is per the recommendations of the total quality management. Once changes have been made to ensure customers are served well then the company becomes the first choice among the subscribers.

The Sky TV CEO Fellet about this partnership he said, “From Sky’s vantage point, we think we have the best content and this is something we focus on greatly, but more and more it’s about the user experience,” Fellet said. “It’s no longer ‘what do I want to watch’, it’s ‘where do I want to watch it, when do I want to watch it’ and more importantly, ‘what device do I want to use to watch it’, so there are a lot of complicated solutions that we’re able to wipe out with just this one deal.” Such a statement shows that the television will provide the Kiwis with the best services in the region.

4.0 Recommendations

In nutshell, Vodafone New Zealand has been successful in its operations in the country. The realization of the “Future is Bright” motto has been a dream come true. However, I would like to make two recommendations that would improve the operations and increase customers’ base.

Firstly, the fibre connection should be intensified across the country since the digital and internet televisions introduced by the company will depend of the level and strength of fibre. Secondly, the CEO of the Vodafone New Zealand should be given more powers to execute changes necessary in the Asian-Pacific nation since it takes long for decisions to be implemented by the region manager. Lowering the costs of the broadband and prices of televisions will also increase the customer base in the country. In this case, the company’s focus should be long-term objective of controlling the largest market share rather than a boom of profits that will attract few customers.

5.0 References

https://www.vodafone.co.nz/tv/vodafone-tv/

https://www.cio.co.nz/article/644054/inside-vodafone-nz-digital-transformation-programme/

Crothers, C., Smith, P., Urale, P., & Bell, A. (2016). The internet in New Zealand. Auckland, NZ: Institute of Culture, Discourse & Communication, Auckland University of Technology.

Erturk, E., & Fail, D. (2015). Information technology in New Zealand: Review of emerging social trends, current issues, and policies. arXiv preprint arXiv:1504.07012.

Hansen, S., & Jones, N. (2017). New Zealand Telecommunications: The actual situation-legislation and regulations. Australian Journal of Telecommunications and the Digital Economy, 5(3), 83.

Hussain, S. T., Lei, S., Akram, T., Haider, M. J., Hussain, S. H., & Ali, M. (2016). Kurt Lewin’s change model: A critical review of the role of leadership and employee involvement in organizational change. Journal of Innovation & Knowledge.

Kaplan, R. S., & Norton, D. P. (2016). Balanced Scorecard. From Strategy to Action/Translation from English. Moscow: CJSC” Olymp-Business.

Lambert, D. E. (2018). Addressing Challenges to Homeland Security Information Sharing in American Policing: Using Kotter’s Leading Change Model. Criminal Justice Policy Review, 0887403418786555.

Myllylahti, M. (2017). The Rise of Tactical Partnerships: Media Converging Beyond Ownership. MEDIANZ: Media Studies Journal of Aotearoa New Zealand, 17(1).

New Zealand Commerce Commission. (2017). Determination: Vodafone Europe BV and Sky Network Television Limited [2017] NZCC 1; Sky Network Television Limited and Vodafone New Zealand Limited [2017] NZCC 2. Retrieved April, 22, 2017.

https://www.vodafone.co.nz/our-company/ceo-executive-team/

Sadikoglu, E., & Olcay, H. (2014). The effects of total quality management practices on performance and the reasons of and the barriers to TQM practices in Turkey. Advances in Decision Sciences, 2014.

Williams, B., & Figueiredo, J. (2014). Lessons from an innovation-leader and tools to learn them. Journal of Industrial Engineering and Management, 7(4), 932-960.