2 VALUE CHAIN ANALYSIS

The below Figure represent Vodafone departments and mapping with Value
Chain Analysis diagram which will be explained in next section.
*VRIO Analysis

VRIO
Activity
Value Rareness Imitability Organization
*Inbound Logistics
"Purchasing
Department"

Cost I/P    
Quality I/P    
Time I/P    
Quantity I/P    

*Operations
"Production
Department"
Waiting time    
Availability    
Durability    
Multifunction    

*Outbound Logistics
"Distribution Unit"
Geographical
   
Coverage
Distribution time    
Distribution Cost    
Relation with
   
distributers
Sales Representatives
   
productivity
*Marketing & Sales
Activities
Corporate Brand    
Corporate
   
Reputation
Marketing Mix    
Customer & Partners
   
Relationship

* Service "After Sale

services"
Quality    
Price    
Time    
Quantity    

*Procurement

Strategic relation with

   
suppliers/vendors
Reduce
   
inventory cost
Agility    
 *Technology
Development "R&D"
Improve existing
products & services    
Develop new products
& services    
Develop existing/new
technology
   

*HRM
organization structure    
Job description    
Selection criteria    
Training &improve
   
employees skills
salaries &
   
incentives
 *Management &
Administrative
Services
Financial Dept.
1-Net Profit Margin    
2-Gross Profit Margin    
3-Debt ratio    
4-Debt Equity ratios    
5-Liquidity ratios    
6-Return on equity    

IT Dept.
1-Operational
   
Excellence
2-Continous
   
Improvement
3-Customer &supplier
   
intimacy
4-Response time    

2.1 SUPPORT ACTIVITIES

2.1.1 FINANCE
Analysing the Financial ratios is key step in order to understand the
current company financial position and later helps on selecting strategic
alternative along with other tools.

Current Assets
1. Current Ratio =
Current Liabilities

Fiscal Year Current Assets (€m) Current Liabilities(€m) Current Ratio

Mar’22 27,578 33,647 82%

Mar’21 27,013 28,711 94%

Mar’20 26,150 27,230 96%

Current Assets−Inventory
2 Quick Ratio = Current Liabilities

Inventory Current Quick Ratio

Fiscal Year Current Assets (€m)
(€m) Liabilities(€m)

Mar’22 27,578 836 33,647 79.5%

Mar’21 27,013 676 28,711 91.7%

Mar’20 26,150 612 27,230 94%

3 Cash+Marketable Securities
Cash Ratio = Current Liabilities

Other Investments Cash

Fiscal Year Cash (€m) Current Liabilities(€m) Ratio
(€m)
Mar’22 7,496 7,931 33,647 45.8%
Mar’21 5,821 9,159 28,711 52.2%
Mar’20 4,956 8,564 27,365 49.4%

Account Receivable
4 Average Collection Period =
Average sales per day

Fiscal Year A/R (€m) Revenue (€m) Average Sales per day Average Collection Period

Mar’22 4,971 45,580 125 39.81

Mar’21 4,980 43,809 120 41.49
Mar’20 4,860 43,150 119 40.8
 Account Payable
5 Average Payment Period =
Average puchase per day

Fiscal Year A/P (€m) Cost of Sales (€m) Average COGS per day Average Payment Period

Mar’22 19,661 30,574 84 234.72

Mar’21 18,070 30,086 82 219.22

Mar’20 17,562 29,604 81 216.8

6 Total Assets Turnover = Sales/Revenue

Total Assets

Fiscal Year Total Assets (€m) Revenue (€m) Total Assets Turnover

Mar’22 153,953 45,580 29.6%

Mar’21 155,063 43,809 28.3%
Mar’20 154,056 43,150

7 Gross Profit Margin = Gross Profit

Revenue

Fiscal Year Gross Profit Revenue (€m) G.P.M

Mar’22 15,006 45,580 32.9%

Mar’21 13,723 43,809 31.3%
Mar’20 13,012 43,150 30.1%
8 Operating Profit Margin = Operating Profit
Revenue

Fiscal Year Operating Profit Revenue (€m) O.P.M

Mar’22 5,664 45,580 12.4%

Mar’21 5,097 43,809 11.6%
Mar’20 4,065 43,150 9.4%

Net Profit
9 Net Profit Margin =
Revenue

Fiscal Year Net Profit (€m) Revenue (€m) N.P.M

Mar’22 2,624 45,580 5.8%

Mar’21 536 43,809 1.2%
Mar’20 502 43,150 1.1%

Net Profit
10 Return on Assets =
Total Assets

Fiscal Year Net Profit (€m) Total Assets (€m) ROA

Mar’22 2,624 153,953 1.7%

Mar’21 536 155,063 0.3%
Mar’20 502 154,056 0.325

Net Profit
11 Return on Equity =
Total Equity

Fiscal Year Net Profit Total Equity ROE

Mar’22 2,624 56,977 4.6%

Mar’21 536 57,816 0.9%
Mar’20 502 57,115 0.87%
 12 Total Liabilities
Debt Ratio = Total Assets

Fiscal Current Liabilities Non-Current Liabilities Total Assets Debt

Year (€m) (€m) (€m) Ratio

Mar’22 33,647 63,329 153,953 63.0%

Mar’21 28,711 68,536 155,063 62.7%
Mar’20 27,365 66,364 154,056 60.8%

EBIT
13 Times Interest Earned =
Interest
Interest-Financing Costs Times Interest Earned
Fiscal Year EBIT (€m)
(€m)
Mar’22 5,664 1,964 2.88
Mar’21 5,097 1,027 4.96
Mar’20 4,065 1,654 1.97

14 Market to book value ratio = Market Price per Share

Book Value per Share

Fiscal Year Market Value (€) Book Value (€) Market to Book Value

Mar’22 11.740 21.580 0.54

Mar’21 17.100 23.930 0.71
Mar’20 18.156 22.618 0.8

15 Market Price per Share

Price to Earnings = Earning per

Fiscal Earnings Per Price to Earning

Market Value
Year Share Value
Mar’22 11.740 0.713 16.46
Mar’21 17.100 1.030 16.61
Mar’20 18.156 0.9 20.17