Business Strategy and Implementation

The assignment delves into the world of business strategy by examining fundamental models like VRIN analysis, Porter's Five Forces, and Bowman's Strategy Clock. It aims to illustrate how these frameworks provide a structured approach to analyzing a company's competitive landscape, identifying resources and capabilities, and developing effective strategies for success. The focus is on understanding how these concepts can be applied in practice to gain a competitive advantage.

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Affect and influence the macro environment has on BT organisation..................................1
TASK 2............................................................................................................................................5
P2 Internal environment and organisation capabilities...............................................................5
TASK 3............................................................................................................................................9
P3 Competitiveness of UK’s telecommunications sector using Porter’s five forces model.......9
TASK 4..........................................................................................................................................11
P4 Bowman's strategy clock model...........................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Business strategy can be termed through which an organisation determines their
determined goals and objectives. This can conveniently defined as a long term planning of
business adopted or executed by company in order to achieve business target. Such techniques
and strategies assist an organisation in facing issues that can be resolved through the assistance
of this. It is associated with numerous operations of organisation which can aid in reducing
probable risk in adequate manner. Mobile telecommunication segment is developing and
growing rapidly in competitive business environment. Numerous telecom companies are
dominating the telcos market ion UK dealing with several networking and smart phones service
and products (Ackermann and Audretsch, 2013). There are more than 22 million people that
consist of £3.8bn in revenues of retail. Numerous benefits that are associated with the
competitive edge reducing hazards, and satiate demands of consumer along with staff members
etc. This report will analyse services of BT and develop a business strategy through conducting a
proper business environment evaluation such as VRIN analysis, PESTLE etc. the company
operates its business in more than 180 nations which demands more attention of environment
audit while developing a strategic plan.
TASK 1
P1 Affect and influence the macro environment has on BT organisation
British Telecom Company is known as UK division of telecommunication organisation
which deliver IT and communication services to multinational organisation globally, with
approximate 180 nation. The organisation was originated in 1969 that provide various different
types of product deals such s mobile, fixed, fibre. TV and many more. YK has more than
102,000 worker and more in 2016. The organisation has service oversees with subscription,
broadband and telephones etc. i.e. controlled through British telecom (Alsoboa and Aldehayyat,
2013). It is gradually diversifying into digital products and information technology which are
more beneficial and has slighter regulation. In regard of this, numerous subsidiaries that are
performing in BT company include international division of service to state organisation in entire
world due to the multinational activities, where there are more influencing components existing
in the macro-environment i.e. makes the company essential to conduct proper PESTLE analysis.
This will assist in demonstrating different challenges faced through BR in environmental, social,
1

political, economical, environmental and legal ecosystem that are significant factors influencing
entire telecom sector and organisation as well. Here is briefly discussed those factors:
Political Factor: Brexit has created numerous changes in competitive telecommunication
industry which has highly beneficial for BT company can get relief from their pension liability
due to increase in interest rates (Bentley, Omer and Sharp, 2013). Political component impact
whole industry of telecommunication in several negative as well as positive manner. The
OFCOM agree with other organisation to deliver associated services and broadband through
pulling down the BT monopoly rights in UK broadband. This can evaluate some more elements
before market investment:
 Value along with political telecom stability in the country's economy.
 Intellectual property protection.
 Bureaucracy and interferences in entire segment by state.
 Tax rates and incentives.
 Favouring partner trading. Trade regulation and tariff concerned to telecom.
Economical Factor: Synergy from EE acquisition will assist in develop efficiencies of
cost and low churn rates. Along with this, service scope increment in telecom segment has
created further development and M&A opportunities for British Telecom. In regard of BT
telecommunication organisation, this is more complicated to improve tourer and resources in the
rural sector (Cadle, Paul and Turner, 2010). As per this, few determinants should be involve by
BT telecom organisation discussed as below:
 Exchange rate and stability at host nations.
 Infrastructure quality in telecommunication sector.
 Unemployment rate.
 Education Level.
 Interest rate
 Economic Growth Inflation rate.
Social Factor: Evolution of telecom segment is very limited. Belief and attitudes of
population has vital role in the decoding consumer demands. In relation to this, expansion
process become more complex for such organisation specially at the rural areas. As per this, BT
2

company deliver services and offers as per the demands and requirement of consumer in more
efficient manner (Curwen, 2011). At the season time, organisation deliver more employment
service to several people as well as aid them to connect across the nation overseas. Here are
mentioned some of the social elements which are influencing services of BT:
 Class, power and hierarchy structure of society.
 Attitude.
 Culture,
 Leisure interest. Broader entrepreneurial spirit and nature.
Environmental Factor: Many markets consist of different norms and standards in
environment that influence the productivity and profitability level of organisation in those types
of market. Major focus over BT is to reduce the carbon emission along with 100 switch in
renewable energy. This is fundamental for enterprise to set standards of environment before
initiate new business in the existing marketplace. Here are mentioned some elements mentioned
under:
 Recycling.
 Management.
 Weather.
 Climate change. Attitude and support toward renewable energy.
Legal Factor: Mostly nations. Legislative structure along with companies are not robust
any more in regard of safeguarding IP rights of organisation (D'Aveni, Dagnino and Smith,
2010). This is fundamental that organisation should evaluate entire laws and policies associated
with registration, patents and other activities before entering new market or launching new
services. Here are some legislations need to be outlined:
 Data Protection Act.
 Discrimination Law
 Consumer Protection and E-commerce. Legislation, Patent, copyrights and IP rights.
Technological Factor: Technology is the major aspects which create a unique
recognition of organisation across the overseas. Due to evolution in technology dan system of
3

networking, BT's growth has been strengthened. The company create more investment in
delivering high technology and speed network along with the alliance development of 5G
network (E. Dobbs, 2014). This is fundamental for these element to aim on the technological
evaluation of organisation due to increase the technology disruption in telecom segment. Less
speed will deliver more opportunity of development. Here are mentioned its evaluation discussed
as below:
 Technology diffusion rate.
 Influence product offering of technologies.
 Influence on costing structure of entire sector.
 Technology evolution by BT competitors.
Hence, through understanding the above mentioned factors, the organisation can understand
macro environment condition of British Telecom. But in regard of carry out proper business
strategic plan, macro environment in context of market or trading condition is required which
can be conducted through preparing Ansoff Matrix that are briefed as below:
Ansoff Matrix: It is also known as market or product grid. As per the ANSOFF
MATRIX, Major four options for improving it through matching up existing and new
commodities with new or existing commodities that can lead to various internal and
diversification environment aspects.
The strategy of positioning can explain the weakness and strength of organisation that is
focusing over the requirements and needs of consumer in regard of evolving their market
position at marketplace in comparison to their more effective competitors (Firnkorn and Müller,
2012). In regard of this, major purpose of such type of strategy is to evolve the firm's practices
more effectively in comparison to their strong competitors in regard of attaining more share at
market. This build better benefits and impact positively on organisation. Ansoff Matrix is
fundamental theory which can assist in improving different effective development strategy of
business in more adequate way.
BT Ansoff Matrix
Market Development: This include numerous procedures associated to the business
increment in the new market through delivering in the existing products or service. The main aim
of enterprise is to light over new marketplace or new consumer. In regard of this, BT is focusing
4

over expansion of their operations of business overseas through implementing similar strategic
provision (Grover and Kohli, 2013).
Market Penetration: Information technology is significant components which is opted by
organisation in regard of expanding their business activities. Under this, different demands of
business is analysed to emphasise of consumer loyalty and improve lifetime value of consumer.
This deliver consumer the opportunity to emerge their market share in the existing trade.
Product Development: IT include process linked to manufacturing new products and
service as well as product in regard of satiate the demands of consumer in present market.
Through implementation of innovative digital technologies in regard of attracting rival
consumer. In relation to BT organisation, this can create a proper alliance with other enterprise in
order to access 5G technologies.
Diversification: This refer to the business expansion in the recent market through
improving new services and products in efficient manner. By this strategy, British
Telecommunication company can deploy their business along with increase the share of market
in business region. Under this, higher danger is included within the company. Company is
identified to acquire other entities of business in regard of attaining diversification.
Henceforth, this can be summon that organisation need to execute different designs and
organisational plan that have assisted the whole company in attainment of business in more
efficient manner (Johnson, 2016). The whole condition explains that strategic position of
organisation. BT is one of developed and leading telecom company which provide wide range of
services and products in the competitive marketplace.
TASK 2
P2 Internal environment and organisation capabilities
1) Strategic capabilities: These can be referred as the organisation abilities in executing
the strategy through which this is made through firm in regard of surviving in the environment of
business along with increasing company value. IT not only aim on company;s strategy, this also
aim on company's strategy which also aims on the available company's resource. A company's
determine a proper evaluation model for assessing the capability of strategy of firm. There are
numerous companies who consider the value of financial sound and its optimisation for
accomplishing remaining goals and competitive edge (Kernbach, Eppler and Bresciani, 2015).
5

On other side, some companies depend on development and research for ascertain whether they
will increase their time value. Each organisation try to assess their weaknesses and strengths in
order to develop their strategies accordingly as well as become leader in their field.
2) Execution of VRIO model on British Telecom
VRIO or VRIN framework is utilised for evaluating different organisational resources of an
organisation. BT group can be referred s financially sound along with better quality workplace.
Skilled and money oriented workplace. Here are discussed the VRIO framework of BT
mentioned as below:
Value: Human capital and money are the vital and more important resources of this
organisation. It is financially sound along with this is prime cause that firm enable billion pound
investment in the new technologies and service development such as 5G network. Approximate
100000 individuals are -performing organisation as well as posses many skills types. Various
considered and experience valuable asses of BT needed to be discussed by company.
Rareness: The organisation can deliver service such as deep Pocket which refer to the
concept that financial resources of an organisation are rare. This is essential to well-train them
over their rivals in regard of attaining the competitive edge in more significant manner. Quality
workplace can be considered as one another resource of organisation (Klettner, Clarke and
Boersma, 2014). Firm employ across 100000 worker with professional skills and well trained
along with expertise. This can lead to more rare as well as can deliver an extra advantages of
firm over their rivals.
Imitability: Finance can be considered as valuable but not very rare resource of firm. At
same duration, company's strategies associated to managing a sound financial situation is
imitable. There are various firms in this segment can imitate the finance source i.e. used by
organisation. Hence, this can affirm that training programs are more imitable. These resources
are imitable but at the same time are valuable and rare.
6

Illustration 1: VRIN model
Source 1: VRIN model, 2018
Organisation: Resource scarcity is not a vital issues for an organisation, maintaining this
is the real problem. Enterprise consist of valuable and rare financial resources but those
resources are not expensive to imitate. Organisation in maintaining them in adequate manner that
refer to the incurring of additional cost within firm. BT also make certain optimum use of firm's
resource they are also investing their monetary training events, which can affect organisation for
short term or long term period. The company is providing numerous benefits with this. HRM is
also properly coordinate in firm.
3) BT Strengths and weaknesses
British telecom Group is one of the last MNC telecom service organisation in United
Kingdom i.e. dealing in several service and products type such as fibre, TV etc. The legacy of
company's USP refer the firm as one of oldest telecommunication organisation i.e. being
functioned even across overseas (Li, Zhou and Si, 2010). This is considered as BT that face
numerous issues and problem while their UK tenure in international corporate and public sector
market as well. This can be affirm that BT has availed several competitive edge from the brand
that firm have accumulated in market such as EE Group etc.
Here are presented the SWOT analysis of BT mentioned as below:
7

STRENGTHS WEAKNESSES
 It can be defined as the most suitable
and best service providing organisation
United Kingdom as well as leading
organisation that deliver distinct
facilities to their clients.
 They are delivering global telecom
network service in approximate 180
countries in more overall the world.
 The company is operating and
regulation 28 million in UK with the
assistance of telephones lines.
 It is one of the largest telecom company
on the grounds of market coverage and
penetration.
 It is leading telecommunication and
broadcasting company of UK along
with setting telecom tour operator line.
 British telecom's major drawback is
less management of external factors of
enterprise.
 This is another underdeveloped mobile
business operations and there are lack
of set mobile occurrence.
 In company, there is proper business
strategy dearth and promotional and
functional policies which needed to be
manage in adequate manner.
 Company can only render general and
common compliant in relation to
enterprise in regard of common and
generic complaints delivered through
British Telecom.
OPPORTUNITIES THREATS
 Organisation keep making efforts to
deploy the functions and business
operations in order to achieve their
business income along with revenues.
 Firm is expanding their services and
products which are less regulated and
adequate in adequate manner.
 It will enhance the solution of IT and
other broadcasting system helping in
proper deliver of services.
 It will render achievement of mission
 British Telecom Group will deliver
global financial situation or crisis.
 Workforce lack and different
administrator issues such as wholesale,
distinct global products etc.
 Potential barrier or rusk for BT network
in marketplace.
 There is crisis of fund management
which incur in organisation.
 Action of marketing of organisation
will be operating as well as regulating
8

and vision along with high quality
system of networking.
 It need to deploy smart phones product
in regard of attract and deliver more
consumer toward the organisation.
 Acquiring with abroad for upcoming
their internation business expansion.
 On other side, organisation is
expansing their products and service in
highly dynamic business environment
of UK telecom industry at different
places.
 They need to make use of methods and
techniques that aid in emphasising their
productivity and profitability in huge
marketplace.
markets in negative way.
 Numerous forecast inability with the
achievement of long term objectives or
projects which set the present economic
organisation fluctuation.
TASK 3
P3 Competitiveness of UK’s telecommunications sector using Porter’s five forces model
Porter's five forces can be termed as strategic management tool managed in regard of
evaluating the overall segment with outlined profitability lever in entire telecommunication
industry. BT manager opt Porter;s five forces model or approach in regard of considering the
different five competitive aspects of forces of organisation that is needed to maintain for
achieving goals. This is assisting for creating more diversified services, expansion of
organisation and creating various strategies of recent market which determine the potential
benefits of British Telecom (Pagani, 2013). Under this, BT opt this model in order to identify the
marketplace competition along with evolving effective future strategies. Through the assistance
of effective tools utilisation, organisation can set the negative business influence in more
significant manner. In the provided research report, different forces are discussed to compete
rivalry and sustaining for longer period in the competitive marketplace. There are numerous
strong competitiors of BT i.e. Virgin Group, Vodafone etc.
9

Here are discussed the elements of Porter's five forces mentioned as below:
Competitive Rivalry: This consist of process to set the number of strength of large
number of competitors which mainly deals with the industry of telecommunication. In this
specific market place, there are various tough rivals of BT company and others are Virgin,
Vodafone, EE, O2 , etc. which are facing huge competition from fast developing and formulating
the whole market share which is around 23% and virgin firm has approximately 22.5%. In the
large market area, there are number of buyers for which company can reduce their value and it
will affect on their profit level of industry (Porter, 2011). BT firm operated and regulated in the
huge competitive market place.
Threats of new entry – The owner of British telecom organisation has own around 27%
total market share in the market area of broadband in united kingdom nation so this will compare
with telecommunication company such as Virgin company fix the suppliers line which is around
22.5% of the whole market share. Along with this, virgin company come to existence after the
origination of BT but own their effective market area.
Bargaining power of consumers – In this, there are ability to buying the best quality
based products which satisfying the customers needs and wants in proper manner. After that,
customers required to purchase appropriate offerings which are existing with the help of paying
minimum amount in accurate way. British telecom has strong and effective base of customers in
over 5 million and on the other side Virgin has around 8.2 million. An organisation has exchange
large number of substitutes of innovative products as compare with their strong rivals. In the
whole market place, customers always need best quality goods at reasonable cost and the main
challenge for British telecom company is to gain effective cost but this will make and create
proper improvement on customers facilities and services in better manner.
Bargaining power of suppliers – This will recognising the value of raw materials and
this is other inputs which help in identifying required factors of operational values of the firm.
This has been strong connection with suppliers chain management (Scholes, 2015). British
company mainly deals with some providers to make type of goods and services and the major
part of this, it will provide greater advantages to track the quality products in proper manner.
Threats of substitutions – In the large market place, there are certain organisation which
mainly deal in similar sectors. In telecommunication sector, British telecom provide fixed line
services and facilities and this will take major benefits in effective manner. If buyers does not
10

satisfied with the firm services then in this case they will getting bad impact on products, poor
level of satisfaction.
TASK 4
P4 Bowman's strategy clock model
Bowman's strategy clock model are used in the marketing method for evaluating and
measuring the competitive position of the company which are compared with tough rivals. This
is that model which identifying the alternative option that are related with strategic positioning of
an organisation (Sumer and Bayraktar, 2012). Along with this, this is effective thoughts and idea
of company which assist in gathering necessary facts and figures about their actual market
position in the context of strong competitors. It is appropriate marketing model in which an
enterprise measure their effective strategical position. In this model, the competitive advantages
gain cost benefits and differentiations. In this strategic, there are various strategies which are
described as follows:
Position 1: low price and low value added – It is that strategy which demonstrate the
business which does not have the competitive positive at the large market place. Along with this,
there are various services or facilities which are given by British telecom organisation which is
general in nature and it is compare with their strong rivals. For the effective business, it is not
competitive position for the business concerns. There are certain services and goods which are
not unique with their customers perceptions.
Position 2: Low price – In this firm, company producing best quality based goods and
services that are valuable for them. On the other hand, an organisation sold their different
products at low cost and it will lead towards gaining accurate profit margin on goods in better
manner. This will assist British telecom providing effective market area as minimum cost leader.
Also this will providing different techniques and methods of cost minimisation for gaining
effective growth and success at large market place (Tavitiyaman, Qu and Zhang, 2011). In this
stage, profit level is minimum but the delivering services are good which assist company in
increasing income level.
Position 3: Hybrid – This will consist with integrating two different types of strategies
that includes certain components of minimum cost and differentiated services or facilities. It is
11

useful for British telecom for gaining customer loyalty and trust with the help of adding accurate
values. Along with this, the main concentration of firm is to reduces the cost amount.
Position 4: Differentiation – An organisation are using such type of strategy which help
in providing high quality based services at reasonable price. At the time, when an enterprise
design and develop such types of products and services that are totally different from their
competitors for gaining huge competitive benefits.
Position 5: Focused differentiation – In this, company providing better products and
services at increasing its cost. This is such type of strategy and policies which has been adopted
by such companies so the customers buying specific products which are totally depend on
perceived value. Along with this, this is not necessary for company is that innovative goods and
services have some real value but perception of values will charge more premium. In this,
services and facilities should be positioned at the high value in the large market area.
Position 6: Risky high margins – This is very risky strategy and policy in which firm
provide innovative products and services at high cots except with extra features. Along with this,
if customers need to use such services at same condition then the level of profit in British
telecommunication company will continuously higher. This is important for company is to take
position at top place in the market area of country where they attracting large number of buyers
towards their services and facilities in better manner (Williams and Figueiredo, 2011).
Position 7: Monopoly pricing – It is that type of strategy which can be implemented at
large market place in which an enterprise provides effective services and facilities in proper
manner. An organisation capabilities and abilities of business considered as monopoly at market
place and company providing effective goods in the large market place.
Position 8: Loss of market share – It is that type of position which are capable for
developing and making appropriate alterations at market area. In this, British telecommunication
set their accurate values of specific products and services at reasonable rate for gaining attention
of large number of buyers.
CONCLUSION
From the above mentioned report it can be analysed that Business strategy can be termed
through which an organisation determines their determined goals and objectives. This can
conveniently defined as a long term planning of business adopted or executed by company in
order to achieve business target. A company's determine a proper evaluation model for assessing
12

the capability of strategy of firm. There are numerous companies who consider the value of
financial sound and its optimisation for accomplishing remaining goals and competitive edge.
BT manager opt Porter;s five forces model or approach in regard of considering the different five
competitive aspects of forces of organisation that is needed to maintain for achieving goals.
Bowman's strategy clock model are used in the marketing method for evaluating and measuring
the competitive position of the company which are compared with tough rivals. This is that
model which identifying the alternative option that are related with strategic positioning of an
organisation.
13

REFERENCES
Books & Journals
Ackermann, S.J. and Audretsch, D.B. Eds., 2013. The economics of small firms: A European
challenge (Vol. 11). Springer Science & Business Media.
Alsoboa, S. S. and Aldehayyat, J. S., 2013. The impact of competitive business strategies on
managerial accounting techniques: A study of Jordanian public industrial companies.
International Journal of management. 30(2). p.545.
Bentley, K.A., Omer, T.C. and Sharp, N.Y., 2013. Business strategy, financial reporting
irregularities, and audit effort. Contemporary Accounting Research. 30(2). pp.780-817.
Cadle, J., Paul, D. and Turner, P., 2010. Business analysis techniques: 72 essential tools for
success. BCS, The Chartered Institute.
Curwen, P., 2011. Question for Vodafone: are minority stakes worthwhile?. Info.13(2).
D'Aveni, R.A., Dagnino, G.B. and Smith, K.G., 2010. The age of temporary advantage. Strategic
management journal,31(13), pp.1371-1385.
E. Dobbs, M., 2014. Guidelines for applying Porter's five forces framework: a set of industry
analysis templates.Competitiveness Review. 24(1). pp.32-45.
Firnkorn, J. and Müller, M., 2012. Selling mobility instead of cars: new business strategies of
automakers and the impact on private vehicle holding. Business Strategy and the
environment. 21(4). pp.264-280.
Grover, V. and Kohli, R., 2013. REVEALING YOUR HAND: CAVEATS IN
IMPLEMENTING DIGITAL BUSINESS STRATEGY. Mis Quarterly. 37(2).
Johnson, G., 2016. Exploring strategy: text and cases. Pearson Education.
Kernbach, S., Eppler, M. J. and Bresciani, S., 2015. The use of visualization in the
communication of business strategies: An experimental evaluation. International
Journal of Business Communication 52(2). pp.164-187.
Klettner, A., Clarke, T. and Boersma, M., 2014. The governance of corporate sustainability:
Empirical insights into the development, leadership and implementation of responsible
business strategy. Journal of Business Ethics. 122(1). pp.145-165.
Li, Y., Zhou, N. and Si, Y., 2010. Exploratory innovation, exploitative innovation, and
performance: Influence of business strategies and environment. Nankai Business Review
International. 1(3). pp.297-316.
Pagani, M., 2013. Digital business strategy and value creation: Framing the dynamic cycle of
control points. Mis Quarterly. 37(2).
Porter, M.E., 2011. Competitive advantage of nations: creating and sustaining superior
performance (Vol. 2). Simon and Schuster.
Scholes, M.S., 2015. Taxes and business strategy. Prentice Hall.
Sumer, K. and Bayraktar, C. A., 2012. Business strategies and gaps in Porter's typology: a
literature review. Journal of Management Research. 4(3). pp.100-119.
Tavitiyaman, P., Qu, H. and Zhang, H.Q., 2011. The impact of industry force factors on resource
competitive strategies and hotel performance. International Journal of Hospitality
Management.30(3). pp.648-657.
Williams, B. and Figueiredo, J., 2011, June. Strategy and technology management: An
innovation-leader case study. InTechnology Management Conference (ITMC), 2011
IEEE International (pp. 806-811). IEEE.
Online
14

Bowman Strategy Clock. 2017. [Online]. Available
through:<https://www.toolshero.com/strategy/bowman-strategy-clock/>.
Porter’s Five Forces of Competitive Position Analysis, 2018. [Online]. Available through :
<https://www.cgma.org/resources/tools/essential-tools/porters-five-forces.html>./
15