FINANCIAL AND INVESTMENT (research Vodafone plc and British Telecom Essay

FINANCIAL AND INVESTMENT (research Vodafone plc and British Telecom plc of Telecommunications company in uk) - Essay ExampleThis report identifies the relevant industry-related and economic-related factors which drive todays strategic decision-making in both companies.Both Vodafone and BT thrive within a very regulated environment. Depending on the nature of the product or services, various ordinance exists which dictate pricing limitations and overall service provision. British Telecom recognizes this and bitely expresses the business awareness of regulatory issues and how they relate to the long-term stability of the business. The Chief administrator Officer of Vodafone describes regulation as a risk to market share, competitive position and future profitability (Verwaayen, 2007 27). From a strategic standpoint, regulation is a routine part of business operations, however when various legislation is provided in different, multinational regions the business must subscribe to whe ther the foreign environment is worth the investment or whether new market opportunities should be researched. Moving either Vodafone or British Telecom presence into different markets which maintain less regulatory activities (such as impairment controls) would allow the company to have autonomy regarding the provision of competitive pricing which best befits the business model and profit expectations. It is clear that both Vodafone and BT must consider regulatory compliance in many varieties of business decision-making.Regulatory activity also comes in the form of litigation, where different foreign taxing powers regularly prize the value of company activities and demand capital gains taxes or other regional taxing expectations. Currently, Vodafone has appealed a case to the Supreme Court in which the business is be requested by the government in Bombay, India to pay approximately 2 billion in capital gains taxes (Leahy and Betts, 2008). In a situation where both Vodafone and B ritish Telecom have leveraged the