BUSINESS AND FINANCIAL PERFORMANCE OF VODAFONE AND

Business and financial Performance of Vodafone and Telefonica

Analysis of the financial situation of Vodafone

1) INTRODUCTION

1.1 Topic chosen:

Analysis of financial performance of Vodafone

This research and analysis report aims at preparing an analytical review of the financial position and reporting of Vodafone plc from an investor's viewpoint. Therefore an extensive analysis of the company's financial strengths and weaknesses is carried out. In this report Vodafone and its closest rival, Telefonica will be analysed and compared from the investor's point of view. To achieve this objective I will analyse Vodafone and Telefonica's performance in terms of financial risk and return. I will be looking at ratios and important aspect of the business and evaluate Vodafone's financial performance in light of general economic environment and also making comparison with Telefonica S.A..

1.2 Reasons for choosing the topic :

I have chosen financial performance of Vodafone as my Research and Analysis topic because these two telecom giants have both been leaders in High-technology telecom equipment. The competition has been interesting to note since this decade especially. Entering new markets and aggressive sales have made the two companies a benchmark for each other. The company's goal is:

Mission statement of Voafone

“To be the communications leader in an increasingly connected world.” In order to achieve it, Vodafone does not only offer basic telecommunications services (calls and SMS), but also many other advanced services including integrated mobile and fixed line communications services designed to deliver on customers' total communications needs and to introduce Vodafone into the household and business as a total communications provider.

Organisation's mission statement should provide company's business vision and its aims and objectives. Vodafone justifies this by saying in its mission statement that it offers advanced services besides taking care of all the basic requirements.

1.3 Aims and objectives:

The aims of this project is to analyse the financial performance over the past 3-4 years for Vodafone from shareholder's view point and to compare the results with Vodafone's closest rival company Telefonica S.A.

Shareholders are interested in risk and return of their investments. To analyse the financial situation of Vodafone we will focus on the following criteria:

Vodafone general analysis

Vodafone Group Plc. is a mobile network operator with headquarters in Newbury, Berkshire, England. It is the world's leading mobile telecommunications company with mobile operations in 25 countries around the world with over 260 million customers worldwide, as well as 38 partner networks, generating a turnover in 2007 of £31 billion. Vodafone networks can be found on almost all continents - in Europe, the Middle East, Africa, Asia, Pacific and the United States. The name of the company (“Vodafone”) comes from Voice data fone and it was chosen by the company to “reflect the provision of voice and data services over mobile phones.

Ratio analysis: We will be looking at following ratio to analyse Vodafone in compare to Telefonica.

Profitability ratio measure how well a company is doing by analysing how profit is earned according to sales, assets and net ...