Strategic Analysis of Telstra Corporation

This assignment provides a strategic analysis of Telstra Corporation, including SWOT analysis, PESTEL analysis, and environmental scanning. Recommendations for the company are also provided.

ACCOUNTING ASSIGNMENT
Submitted by
Student’s Name:
Date: 31st March, 2019
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Executive Summary
In this assignment, the chosen organization is Telstra Corporation and a full end review of the
strategic tools of the company has been done. The overall internal and external environment of the
company is examined with the help of various tools like the SWOT analysis, PESTEL analysis and
includes many other tools like environmental scanning. Based on that it can be said that the
company has applied all the different theories that are related to the strategic development of the
company in the best ways possible. The company has been in operation since a long time, and there
are certain aspects in which the company can do better which would include having better employee
friendly working environment and as the world is moving towards digitalization the same needs to
be applied by the company. These strategic theories help in understanding the company and its
environment in a better way.
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Table of Contents
Executive Summary..........................................................................................................................2
Introduction.....................................................................................................................................4
Analysis............................................................................................................................................4
Strategic Analysis of Telstra Corporation’.........................................................................................5
PESTEL Analysis................................................................................................................................5
Environmental Scanning...................................................................................................................5
Recommendations to the Company.................................................................................................5
Conclusion........................................................................................................................................6
References........................................................................................................................................7
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Introduction
Telstra Corporation is one of the biggest telecommunication company in Australia and the come
deals in a variety of products that includes mobile phones, broadband internet, telecommunication
lines and various mobile devices. The overall revenue of the company runs into millions and a
strategic analysis of the internal and external environment of the company is done. Various tools like
SWOT analysis which helps in understanding the overall strength, weakness and opportunities of the
company. PESTEL analysis which helps in understanding the overall environment in which the
company is functioning (Abdullah & Said, 2017). Analysis of the strategic environment of the
company helps in understanding which are the areas in which the management needs to improve
and how same would result in long term growth and success of the company. Telstra is a big
multinational company and analysis of the same helps in understanding how big companies whose
scope and area of operation is so huge functions.
Analysis
Strategic Theories include theories like SWOT analysis and PESTAL analysis and concepts like
environmental scanning. SWOT analysis is a framework that helps in examining the overall strengths
and weakness of an organization and analyses the overall threats and opportunities that an entity
has in the environment in which it functions. It is a very realistic, data driven and fact-based model
that is used by many companies around the globe. The organizations need of focus on real life
contexts rather than focusing on preconceived notions and beliefs.
PESTEL Analysis is another method for strategic analysis of an organization. It is a tool that is used by
the organization to analyze the external markets that affects them. It helps in developing solution to
the possible threats and weakness that the company faces with respect to the environment in which
it is functioning. PESTAL analysis includes political, social, economic, technological, environmental
and legal factors in an external environment in which the company is functioning (Norberg, 2018).
Environmental scanning refers to the process of gathering information about the events in an
organization and then studying about their relationship with respect to the internal and external
factors that affects the company. It helps the management in understanding the future changes that
it needs to bring.
Strategic Analysis of Telstra Corporation’
Strength Weakness Opportunities Threats
1.Reliable Suppliers
2.Excellent
1.The company needs
more investment in
1. There is an overall
decrease in the
1. There is a lack of
skilled workforce in
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Performance in new
markets
3.The overall
distribution network is
strong.
new technologies.
2.Expect the core
business the company
needs to expand its
operations.
3.The company needs
to invest more in new
technology
transportation cost as
the shipping charges
has reduced.
2.Changes in the
government
agreement has
opened avenues for
the company to invest
in new areas.
the industry.
2.Increased
competition in the
sector.
3. Increase in the
growing strengths of
the local distributors.
PESTEL Analysis
There are various PESTEL factors that affects the company on many grounds – which includes lack of
political stability, level of corruption, the overall rate of taxation etc. Economic factors that includes
the overall business cycle, the changes in the education cycle, the rate of unemployment etc. The
social factors that affects the company includes leisure interests, demographic and skill level of the
population etc (Webster, 2017). The technological factors include rate of technological diffusion,
impact on the overall cost structure, technological impact on the product offering, impact on the
overall value chain structure of the company. The environmental factors include changes of the
climate, the overall laws effecting the environmental pollution. The legal factors that include
changes in the employment law, health and safety law and data protection (Wendt, 2018).
Environmental Scanning
In terms of the Telstra shall include managing the overall carbon emissions, developing resilience to
the changes in the climate that occurs in case there is low carbon economic growth then that needs
to be studied also. The company also needs to study about the changes in the overall resource
efficiency where the company is aiming for reusing and recycling more than 60 mobile phones that
would help in increasing the overall efficiency of the company by more than 42 percent by 2020
(Vieira, et al., 2017).
Recommendations to the Company.
Thus, we see all these environmental goals of the management needs to be in sync with the overall
internal and external environmental goals in which the company is functioning. Thus, we see that
recent changes in the environment has affected the company in many ways and it ends up being
more important as time changes these environmental problems will keep on growing and hence it is
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important that solutions for the same is found as early as possible. The company should also aim for
digitalization that would help the company in growing its business in different other regions and
should try to recruit and more skilled work force that would help the company to grow and develop.
The company should also try to develop a relationship between the internal and external factors
that the company is functioning so that this relationship would help the company to grow (YUAN,
2018).
Conclusion
Based on the overall analysis it can be said that the company is functioning very well and there is
improvement in all the areas over the years. However, there are certain areas in which the company
still needs to improve and that includes dealing with the changing environmental factors that affects
the company, the company needs to protect the environment in which it is functioning. Overall the
company has performed well and needs to plan its resource allocation in a better way so that the
overall success rate of the company improves.
References
Abdullah, W. & Said, R., 2017. Religious, Educational Background and Corporate Crime Tolerance by
Accounting Professionals. State-of-the-Art Theories and Empirical Evidence, 3(1), pp. 129-149.
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Norberg, P., 2018. Bankers Bashing Back: Amoral CSR Justifications. Journal of Business Ethics,
147(2), pp. 401-418.
Vieira, R., O’Dwyer, B. & Schneider, R., 2017. Aligning Strategy and Performance Management
Systems. SAGE Journals, 30(1), pp. 23-48.
Webster, T., 2017. Successful Ethical Decision-Making Practices from the Professional Accountants'
Perspective. ProQuest Dissertations Publishing, 3(1), pp. 142-156.
Wendt, K., 2018. Positive Impact Investing: A Sustainable Bridge between Strategy, Innovation,
Change and Learning. first ed. Switzerland: Springer.
YUAN, T., 2018. The Prospect for RMB Becoming One of the Two Center Currencies of the Dual-
Center Global Financial System. The Dual-Center Global Financial System, Issue 1, pp. 83-91.
.
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