The UK Mobile Phone Business - Essay Example

This is so because success is based on an organisation's ability to create, rather than predict the future by developing those products that will literally transform the way the world thinks and view it self and the needs (Kanter 1995:71). Within the context of today's global competition, businesses and firms no-longer compete as individual companies but try to corporate with other businesses in their activities (Wu & Chien 2007:2). These researchers went further to argue that, this strategy has become quite common in many businesses including the retail clothing chain stores.

The conventional vertical integrated company based business model is gradually being replaced by collaborative relationship between many fragmented, but complementary and specialized value stars and constellation (Wu & Chien:1). This paper aim at examining the changing external environment of businesses. The paper how ever focueses on United Kingdom Mobile phone industry. Using certain analytical techniques such as the PESTLE model the paper examines five environmental change drivers. These include, Economic factors, political factors, Technological and socio cultural.

However, attention will be based on three of these factors. According to Johnson et al . 2.0 The UK Mobile phone external business EnvironmentLAYOUT OF THE PESTEL FRAMEWORKAccording to Johnson et al (2005), the PESTEL framework can only be used to look at the future impact of environmental factors and that this impact might be different from the past. Thus an understanding of how the factors in the above framework may drive change is only a starting point (Johnson et al 2005).There is a need for an understanding of the key change drivers.

From the PESTLE framework outline above, the UK mobile phone industry like any other industry in the UK is affected by all the factors outlined in the framework. However, because this paper requires us to focus on four stories, these three factors are examined below.2.2 Economic FactorsAll the economic factors can be regarded to have an impact on the UK mobile phone industry. For example, high unemployment rate, high inflation rates, low GNP trends and slumps in the business cycle will imply low disposable income, more dependence by the citizens on credit facilities, borrowed funds and thus alternative sources of finance.

The US dollars is currently increasing at an increasing rate when compared to the British pounds, this will mean an increase in the currency exposure. Transaction and translation cost will be high in the UK, value of credit facilities if granted in UK pounds will fall. The value of mobile phones operator's assets in the US will increase when doing reporting in the parent company currency, the British pounds. What is the income distribution What are the shopping habits, what is it that other mobile operators offer that, others don't The future budget situation of the UK government Is the government striving at a surplus, deficit,