Evaluation of Financial Performance of BT Group plc

Accounting
&
Finance

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Background:................................................................................................................................3
Evaluate the financial statements and other non- financial information of BT Group:..............6
BT Group plc’s performance over past 3 years compares with two of its main competitors:....8
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
In every organisation, accounting and finance are key aspects of their operational
structure. Accounting involves all the activities dedicated towards classification and recording of
monetary events. Finance includes effective allocation of financial resources and arrangement of
funds. These are most crucial element in business which also help to define business targets and
goals in efficient manner (Andreasch and Lindner, 2014). In this context this study provides an
comprehensive evaluation of financial performance of BT Group plc while covering different
fiscal events. BT Group is well-known UK telecommunication company operating in different
countries.
TASK
Background:
Introduction of Company: BT Group plc is UK based international telecom corporation and
company's headquarter is situated in London,UK. Company is currently operating in
approximately 180 nations. The group is top supplier of telecommunication services like
broadband, fixed line and mobile-telecom services though-out UK, further company is providing
IT-services and television subscription. Company is also a leading telecommunications service-
provider and providing services to individual consumers along with small & medium-sized
organizations as well as public sector. It is selling wholesale items and telecom services to
communication supplier across the world.
BT is today an innovative organization that provides general consumer products and
services via new advanced technology but has also developed a businesses offering of consulting
services and technology solutions to support the company's growth and secure-life in different
markets. BT is strongly committed to identification of its consumer base's primary origin in retail
outlets and therefore concentrates on sales. Nonetheless, a large share of overall revenues
generated in local market remains so that the industry is carefully regulated and invested to
ensure the safety of this industry.
Objective of Company: Company's core aim is to supply world-class and quality
telecommunications and information-technology merchandise and services, as well as to create a
strong networks across the world. For which company has set following objectives:
 Fulfil core requirements of their clients and customers,

 Sustainability in earning growth of entire group for stakeholders, and
 Form a proper attempt towards community in which company is operating business.
But during three year with change in competition scenario, technologies and customer
base company's objectives currently are: boosted speed to market, cost transformation and
consumer experiences. In the next decades BT has a forward-looking, versatile and insightful
network to allow the business to provide communications which match the needs of its
consumers. Company have a quite clear view of where company want to be and now take
specific actions toward this objective. Three primary goals are set by their transformation
scheme:
 To increase customer experience.
 To speed up products to market-times
 To cut down company's cost base.
21CN is designed and intended to provide end-to-end clients with a globe-class experience. It
will create a dramatically streamlined process for BT, boost productivity and enable new
technologies to be introduced more quickly on the marketplace than today. It will allow the client
as never before to be regulated, elected and versatile. It will be made more effective, faster and
more versatile with its new-network to meet market demands. It says that it is much simpler for
consumers to launch digital, networked services and more power and versatility to handle their
accounts through BT and its IT-infrastructure network.
For evaluation of major opportunities and major issues which BT Group plc has faced
over previous 3 years, SWOT analysis of BT Group Plc, as follows:
Businesses face competitive and changing external conditions that are ever more critical
to business sustainability and growth as a result of global economical globalization and the
extensive use of information technologies. As far as political considerations were concerned, BT
was the forefront of telecommunications change in Europe and US, and the UK Government's
telecommunications policy was a major success, particularly for the best option in the area of
control their policies. SWOT evaluates the strengths or strong-points, weaknesses, opportunities
and threats that corporation have to take advantage of to self identify a major strategical niche
(Weston, 2013).
Strength: