Financial and Strategic Analysis Vodafone Group Plc - Essay Example

The success of the company can be explained by the extremely high quality of the products offered, and the continuous evaluation and restructuring of the customers’ support which enforce the creation of friendly and effective support available on a continuous basis to the company’s customers. The perspectives for the company in the future seem to be positive. The company has managed to obtain a significant share of the global telecommunications market and control the development of its competitors through continuous research of the trends and requirements of the telecommunications industry.
Corporate financial performance from the shareholder perspective
 In order to evaluate Vodafone’s financial performance, particularly regarding the company’s shareholders we should present and evaluate the particular financial results (as stated in the company’s accounts) which show the company’s current financial strength but also its prospects for the future. We should also take into account that even when the financial results present a very positive aspect of a company’s financial performance, it is sometimes an issue of temporary conditions and in any case that one would proceed to the investment in a particular company, he should take into account that there is always the risk involved. In this context, Drury (2001, 222) states that risk ‘is applied to a situation where there are several possible outcomes and there is a relevant past experience to enable statistical evidence to be produced for predicting the possible outcomes’ while uncertainty ‘exists where there are several possible outcomes, but there is little previous statistical evidence to enable the possible outcomes to be predicted’. This differentiation between uncertainty and risk is practical with no particular meaning especially when the amount which is going to be invested in a specific company is significant. On this occasion, there is no space for ‘uncertainty’ but it is ‘risk’ by all means.
At the first level, the sales of the company have been decreased between the years 2004 and 2006.