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History and Overview of Vodafone Hungary

Explain and to evaluate the mutual interdependence between the organization and its environment.

The purpose of this report is to provide a brief review about the environment and the cultural activities of the company Vodafone and its corporate environment that affect the scope of its activities. The report provides a short history, activity and geographical scope of activities of the company. Further, the report provides information about the corporate culture of the company and its specifications that makes it different from other organizations. As the culture of the nation is very important for the organization so this report provides details about the role of national culture in the corporate culture of the Vodafone, Hungary Company. The latter part of the report provides SWOT analysis of the cultural practices of the company and recommendations in the case. Further, it should be noted that the corporate culture of the company plays a vital role in helping the company in managing internal environment and initiating business activities of the company. The report outlines the culture of the company and nation and its impact on the growth of the company.

Vodafone Hungary is the company that was originated by the Vodafone group, the company is a mobile telephone company that is based in Hungary. Vodafone, Hungary was formed in the year 1999 after securing the third GSM 900/1800 MHz license of the country and the company was also the first organization to provide operating in the DCS-1800 band in the country Hungary. Vodafone is regarded as the third largest mobile network operator present in the world. The company controls 22.84% of the market from the mid of 2012. Talking about the history of the company, it should be noted that Vodafone, Hungary was formed by V.R.A.M. and Primatel. After gaining the third GSM 900/1800, the consortium launched their activities under the brand name of Vodafone (Vodafone 2018) . During that period the company was known as the best organization providing fastest network worldwide. The competitors of the company are Pannon, Westel etc. Till date the company has covered 100% area of the country by providing their services. In the year 2003, the company launched Vodafone live! And reached the customer base of 1 million customers, then in the year 2004, the company purchased 3G under the tender of UMTS. Later in the year 2005, the company started providing Vodafone Passport service. These services were available in total 17 countries worldwide at that time including Budapest (Vodafone 2018).

Corporate Culture of Vodafone Hungary

Further, it should be noted that the company gain a wide area in Hungary to initiate their activities accurately. Hungary is the country where the company has gained appreciation in the industry by providing their effective services to the target customers. Also, Vodafone in Hungary provided modernized network infrastructure to the people that helped them to increase the customer base and provide them greater level of satisfaction as well. The company also came into joint venture with Tesco to form Tesco mobile and provide great network infrastructure to the people of the country. Also, it should be noted that the company has created a brand value in the market that provides them advantage to initiate activities and gain success in the market of Hungary. The geographies present in the country supports the activities of the organization that helps them to grow. The company adequately finds out the areas where they should provide technological support and use resources to provide services accordingly. This activity increased the loyalty of the customers towards the company (Giroux 2016).

It should be noted that the corporate culture of Vodafone is very pleasant due to which employees feel like working in the organization and investing their efficiencies in the organization. The artefacts of the company are friendly that welcomes people belonging to different cultures and bind them in the activities of the company. The company in increasing diversity in the organization due to which the employ people who belongs to different parts of the world. Apart from that, the company also initiates various activities for the cross culture improvement as well. As the company is placed worldwide, so the organization has its headquarters in many parts of the world. In response to that Vodafone initiate activities that maintain communication between different departments and branches of the organization (Ramdhani, Ramdhani, and Ainissyifa 2017). Further more details about the cultural specifications of the country Vodafone Hungary are discussed below:

The vision of the company states that they want to become the easiest organization to approach for people. The company wants to provide effective services to the people that initiate their flow of work and do not hamper their regular day to day activities. As the society is becoming more and more dependent on the technology that gives advantage to the company provide services to people make speed up their life and help them to contact people easily at a faster pace. The company aims to remove the complications present in the telecom industry that makes it difficult for people to approach each other effectively (Harlow 2016). The company expresses their feelings as “Always Easiest”. This phrase says that Vodafone Hungary wants to be easy to work, the word says that the company wants to be EASY to work with and EASY to work for. Easiest explains that the company wants to stand out in the industry in which they perform and show the areas where the company can gain competence against their competitors. Further, the word ALWAYS says that the company wants to stand for continuous improvement (Vodafone 2018).

National Culture of Hungary and Its Impact on Vodafone Hungary

The mission of the company states that they want to enable opportunities every day. Communication is the key resource of the organization, Vodafone use communication to effectively create opportunities and use them to achieve success in the target market. The company dos not only aim for profit in the external environment, instead they want to positive create an impact in the society by contributing their share in the environment. Vodafone, in Hungary wants to give freedom and flexibility to people so that they can use other sources present in the environment properly. With the use of good telecommunication services, people can easily use other facilities present in the environment. So, Vodafone wants to help people use various other services present in the environment (Turró, Urbano, and Peris-Ortiz 2014).

As the goal of the organization states that they want to use the available technology to produce output for the organization. Vodafone wants to connect to the people and provide them resources with the help of which they can effective attain the available opportunities present in the environment. The corporate culture of the company reflects that they want to harass the available opportunities and convert them in future prospects of profitable goals for the company (Moran, Abramson, and Moran 2014). Further, activities through which the corporate culture of the company is reflected in business activities of the company are discussed below:

  • As the values of the organization states that Vodafone aims to provide services to people using their resources and capabilities. In response that, the organization uses technology in such a way that greatest efficiency is achieved to people with the use of these resources. Apart from that, the company also open workshops for digital education for the people of Hungary, they also initiated innovation in their so as to achieve the competitive advantage (Beugelsdijk, Maseland, & Hoorn 2015).
  • The fact should be noted that the company won the award ‘For supporting civilians’. This shows that the organization provides adequate services to the people present in the market so that they can easily make use of it and increase their satisfaction level as well.
  • In order to promote the use of technology in the country, the company organized programming and coding workshops for people so that they can also gain information about the work they do and use education to information about IT. The company also benefits to their employees so that they can properly contribute their share to the company present in the market. As the company satisfies their customers in the market that helps them in gaining advantage in the target market (Glenn, 2016).

Thus, in this way the company adequately uses their corporate culture to incentivize the business activities and ultimately gain success in the target market. The company satisfies their employees that help them in earning share of customers present in the market. Also, flexibility increases the employee retention in the internal process of the company (Lizardo 2017).

Talking about the national culture of the country Hungary it should be noted that the country has multiparty parliamentary democracy that initiates stability in the country. Although the country faces some serious issues in the running the democracy however the country is now stable with stable economic growth. The European Union plays a major role in governing the activities in the country. Major rules and regulations of the country are influenced by the regulation of European Union (Thill, Venegas, and Poór 2016). As the country is close to Europe due to which the culture of this country is influenced by the culture of Europe in the market. The country majorly earns through the services sector and industry sectors of the country. Further, there is not high degree of inflation in the country and the people of the country believe in investing amount for a luxurious life. The economies of the country states that they want to achieve disruption in the work that they perform for the betterment of the society. The country is growing with a steady rate that shows increase in the economic capabilities of the country (Nakata 2009). Also, the country uses prudent monetary policy to control the flow of work in the society. The social factors of the nation states that people believe in maintain personal relationships with each other and maintaining a bond in the society.

SWOT Analysis of Vodafone Hungary's Cultural Practices

This type of bond helps people collaborating with each other to perform any task in the society. The people of the country are educated and want to sustain their living by earning reputable income in the society (Sólyom 2015). The people of the country are more indulgent than restrained and the people of society believe in living together with their family. Lastly, the technological aspects present in the country states that the people, communities believes in using such technology to gain competence in the target market. There is presence of National Office for Research and Technology; it is a governmental body that is responsible for the Hungarian Government’s science, technology and innovation policy. This department of the government researches and develops policies that help the people of the country to become competitive in environment (Patai 2015).

Relating the culture of the country with the culture of the country, it should be noted that the people of the country wants to use information technology to become competitive in the environment. The country promotes the activities of the company because they helping them becoming competitive in the environment. Also, it should be noted major people of the country are connected with the activities Vodafone in the environment so the government monitors the activities of the company and ensure that no rule breached by them. Also, the company is influenced by the culture of Europe due to which they provide services to the people of the country to develop themselves. The culture of the country Hungary is very flexible and innovative due to which it promotes innovation in the industry as well. The company adequately adapts the national culture and induces them in the corporate culture to gain satisfaction in the target market (Shiu, et. al., 2015).

The SWOT analysis of the cultural practices of the company is discussed below:

Strengths

  • The company earns the strength to innovate the products and services in such a way to provide greater level of satisfaction to the customers present in the market.
  • Vodafone is committed to its customer and wants to increase their satisfaction level by consistently providing them effective and efficient services.

Weakness

  • The company has the weakness to priorities their employees to maximum level that acts as a weakness for the company (Vodafone 2018).
  • Also, the employees of the company are unable to deliver optimum satisfaction to the customer in the market according to their satisfactory services they receive in the market.

Opportunities

  • The company earns the opportunity to form alliance with different organization present in Hungary and increase their services innovative like its joint venture with Tesco.
  • The organization also has the opportunity to enter into the field of hardware and software manufacturing as they have qualified IT employees with them (Visser, and Tolhurst 2017).

Threat

  • Resistance to change is one of the major threats that the company faces in the country.
  • The culture of the company gives priority to employees due to which they can take undue advantage of it and resist towards change management activities (Daniels, & Greguras 2014).

Thus, summarizing the above statements, it should be noted that the culture of the company Vodafone in Hungary is safe and secure for the employees. Just like the nature of the country and the industry, the culture of the company is very flexible. The organization prioritize their employees in the business activities, they aim to increase the satisfaction level of their employees due to which they will subsequently work to increase the satisfaction level of the customers present in the market. The company also organizes activities for the common people in the society, with these activities they want to create awareness in the minds of people for information technology (Hickman, and Silva 2018). The company aims to connect the whole world and provide them efficiency to perform innovative actions. Concerning the interest of the common citizens of the country, the government also promotes the activities of Vodafone so that they can become competitive in global index. Vodafone is the first global IoT provider to pass 50 million milestones. The company is growing with fastest pace in the economy (Vodafone 2018). Also, Vodafone raises their number of IoT connections rises particularly fast in the motor, health and public service industries. The company also aims to enter in every sector and provide services to them accordingly. The culture of the country diverse which can   be seen with the awards provided to them like GSMA awards Vodafone Foundation's work supporting refugees.

Thus, it should be recommended to the company that they should initiate activities that follow the culture of the country and bring them forward in the international market. The country Hungary has the culture related to the European Union, so it gives an opportunity to the company initiate their activities in the similar environment and earn reputation. Further, the Vodafone is based in telecommunication sector, so the company should form an alliance with the government and initiate IT activities for betterment of the people of the country (Guiso, Sapienza, and Zingales 2015). The company should also properly monitor the changes present in the culture and initiate activities according. As the culture of Hungary is says that the people of the country are excellent in mathematics and science so the company should firstly employ natives and then employ the expatriate in the company. The business activities of the organization should reflect the national culture. The company should aim to increase the economy of the country (Usunier, van Herk, & Lee 2017).

Conclusion

Thus, in the limelight of above mentioned events, it should be noted that the role of a country plays a strong role in developing the culture of a community. Good culture helps an organization to grow in the target market. The above mentioned task talks about the culture of the company Vodafone Hungary in the country Hungary. The activities of the company align with the culture of the country that motivates the employees and helps them increasing their efficiency to achieve organizational objective. The organization achieves their target by using their resources in such a way so as to increase the satisfaction level of the clients present in the target market. Further, Vodafone uses it information technology skills to innovate their products and services and help the people to initiate activities innovatively. The company employs various benefits in activities of people that increase their level of satisfaction. The report adequately satisfies the requirements of the tas

References

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Daniels, M. A., & Greguras, G. J., 2014, Exploring the nature of power distance: Implications for micro-and macro-level theories, processes, and outcomes, Journal of Management, 40(5), 1202-1229.

Giroux, H.A., 2016. Stealing innocence: Youth, corporate power and the politics of culture. Springer.

Glenn, S.S., 2016. Verbal behavior and cultural practices. Behavior Analysis and Social Action, 7(1, 2), pp.10-15.

Guiso, L., Sapienza, P. and Zingales, L., 2015. The value of corporate culture. Journal of Financial Economics, 117(1), pp.60-76.

Harlow, H.D., 2016. Vodafone Egypt (B), managing corporate cultural change and organizational performance. Emerald Emerging Markets Case Studies, 6(4), pp.1-17.

Hickman, C.R. and Silva, M.A., 2018. Creating excellence: Managing corporate culture, strategy, and change in the new age. UK: Routledge.

Lizardo, O., 2017, Improving cultural analysis: considering personal culture in its declarative and nondeclarative modes. American sociological review, 82(1), 88-115.

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Patai, R., 2015. The Jews of Hungary: history, culture, psychology. Wayne State University Press.

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Thill, K., Venegas, B.C. and Poór, J., 2016. HR Positioning—A Matter of National Culture? Facts from Hungary. Business Perspectives and Research, 4(2), pp.136-144.

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Usunier, J. C., van Herk, H., & Lee, J. A., 2017, International and cross-cultural business research. US: Sage Publications.

Visser, W. and Tolhurst, N., 2017. The world guide to CSR: A country-by-country analysis of corporate sustainability and responsibility. UK: Routledge.

Vodafone., 2018. Our Commitment and Goals [online]. Available at < https://www.vodafone.com/content/index/about/sustainability/mmh/our-commitments-and-goals.html#> Accessed on 4th May, 2018.

Vodafone., 2018. This is who we are [online]. Available at < https://www.vodafone.hu/en/vodafonerol/vodafone-shared-services-budapest> Accessed on 4th May, 2018.

Vodafone., 2018. Vision: Always Easiest [online]. Available at < https://vodafoneintegratedreport.html5magazine.nl/2012_2013_en/vision_mission_and_values> Accessed on 4th May, 2018.

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