International managment (Vodafone) - Essay Example

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Recent popular uprisings in North Africa have not only changed the internal situations in the countries, but also affected the whole world because changed some aspects of the geopolitical situation. Furthermore, there is also an opinion that African uprisings were, to some extent, caused by the overall global situation…
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International managment (Vodafone)
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Download file to see previous pages As the company claims, Vodafone is the company that loves change. So, driven by the desire to constantly change and expand, in 2010 Vodafone entered into agreement with a Libyan state owned mobile network, Almadar Aljadid (Al-Madar) (Al-Madar, 2010). The agreement implied that Al-Madar would have access to Vodafone’s products while Vodafone would be able to use Al-Madar’s network to provide mobile telecommunication services in Africa. For this agreement one of the target population groups of Vodafone were multinational companies, for whom Vodafone’s service would solve a number of communication problems. However, as public uprisings started in North Africa, Vodafone faced a public relations disaster. Vodafone was blamed for impacting the Egyptian society because of cooperating with Egyptian ex-President Mubarak (ESG Insider, 2011). In February the company, experiencing pressure from the government of Egypt, had to close its nationwide network. At the same time, on behalf of the regime, the operator spread anonymous text messages to service users that encouraged people not to oppose the existing regime and, on the contrary, fight against those willing to change the rule. It should be remembered that Al-Madar company, through which Vodafone was providing its services in Africa, is owned by Col. Gadaffi’s eldest son. So Al-Madar, in an attempt to limit communication between the rebels, shut down its mobile phone network. Therefore, it can be concluded that it was not Vodafone who closed the network. Nevertheless, the company itself does not refuse the fact of sending text messages that called for loyalty to the regime. Allnutt (2011), an editor-in-chief of Radio Free Europe, believes Vodafone’s shutting down the networks to be a human rights...
Recent popular uprisings in North Africa have shaken both the MENA countries and the global society. The demonstrations against non-democratic governments paralyzed or slowed down operations of many multinational corporations. However, to some extent it might be said that the very same multinational corporation played certain role in the development of the conflicts. International companies are frequently blamed for undermining development and exacerbating inequality and poverty in the developing countries. Furthermore, they leave no space for operations of small and middle-sized domestic companies, thus transferring money “that could be put towards poverty eradication into the hands of the rich”. Another point of view is that revolutions in North Africa have purely social roots – unemployed want to have jobs and those who works want to earn living wages. In any case, the result is clear – companies have to embrace change and adapt to the innovations, whether they impact the company positively or negatively in the short run. ...Download file to see next pagesRead More
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