Corporate Financial Management Essay Example | Topics and Well Written Essays - 1500 words

Corporate Financial Management - Essay Example Vodafone Group is a British international telecommunications corporation with the headquarters situated in London. The corporation also has its enlisted administrative centre in Newbury, Berkshire.In addition,Vodafone is the second largest mobile telecommunications corporation in the world,calculated by both 2011 earnings and subscribers,and as at December 2011,it had 439 million users.Also, Vodafone operates and owns networks in more than thirty nations and contains partner networks in more than forty extra nations. Its Vodafone Global Enterprise offers Information Technology and telecommunications services to corporate consumers in more than sixty five countries. Moreover, Vodafone has a 45% stake at Verizon Wireless. Verizon Wireless is the leading mobile telecommunications corporation in the United States of America calculated by users. Vodafone is also listed in the London Stock Exchange and is a part of the FTSE 100 index. As of July 2012, Vodacom had a market capitalization of almost 89.1 billion pounds. This was the third leading of any organization listed on the London Stock Exchange. Vodafone also contains a secondary listing on NASDAQ. Additionally, the name Vodafone is derived from voice data fone, selected by the corporation to illustrate the offering of voice and data services using mobile phones. Vodafone has a vision of being the leading mobile communication company in the world and a significant element of this is to make sure that consumers admire and trust the company. The company attains this by adapting a responsible model to the way it carries out its business activities. This augments its standing and develops customer loyalty. The company’s business strategy and corporate responsibility strategy are also interconnected. Vodafone holds the view that long-term commercial benefits emerge from doing business in a sustainable manner. Vodafone adopts a two-fold approach in doing business. One is to offer product extension. This entails introducing new services, dimensions, and features in saturated areas. These are regions like Europe and USA which contain complicated consumers who expect and want novel functions from their mobile phones. Establishing new ways of delivering services and products helps to preserve existing users and appeal to new ones. For instance, 3G technology has enhanced the quality and capacity of transferring voice and data. The second is looking for openings in emerging sectors (Vodafone Group 2012, p. 54). These include a number of the globe’s more remote regions, including some regions in Africa, where a large number of individuals cannot have access to a mobile phone. This paper will analyse the sources of finances, gearing of Vodafone during the last five years. The paper will realize this by providing a critical evaluation of the gearing and policies of the company with regard to its corporate objectives, relevant theories, and industrial sector practices. The foremost objective of Vodafone as a business unit is the maximization of profit. The organization also has a mission statement which makes sure that this foremost objective is attained in the most suitable manner possible. The mission statement is to be the leading communication company in a progressively more connected globe. Correspondingly, the mission statement is passed on to all shareholders of the organization, particularly to the company’s workers, largely because it is the workers who make the most significant contribution in accomplishing the objectives of the company. Vodafone is also dedicated to offering markets with less developed infrastructure the necessary technology to establish communication which will be of significance both socially and economically. Finally, it is committed to accomplishing its goals by providing superior and innovative services. Vodafone provides both basic telecommunication services, for example, text messaging and mobile phone calls, and