Business Analysis of Bell Canada Enterprise Inc. | Report
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Running head: ECONOMICS
Economics
Name of the Student:
Name of the University:
Author’s Note
Economics
Name of the Student:
Name of the University:
Author’s Note
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1
ECONOMICS
Table of Contents
Introduction................................................................................................................................2
Discussion..................................................................................................................................3
Non-Market Environment......................................................................................................3
Integrated Strategy.................................................................................................................6
Conclusion..................................................................................................................................7
Reference....................................................................................................................................8
ECONOMICS
Table of Contents
Introduction................................................................................................................................2
Discussion..................................................................................................................................3
Non-Market Environment......................................................................................................3
Integrated Strategy.................................................................................................................6
Conclusion..................................................................................................................................7
Reference....................................................................................................................................8
2
ECONOMICS
Introduction
The main purpose of the assessment is to analyse the business of BCE Inc which is
engaged in telecommunication services in the market. BCE Inc is a publicly traded
telecommunication company and the headquarters of the company is situated in Canada. The
full form of the company is Bell Canada Enterprise Inc which provides wireless
telecommunication solutions for the customers. The company was created by an act of
parliament for promoting telecommunication facilities in the country. The company since
then has diversified the operations of the business and entered into television market as well
providing wireless solutions to the customers (BELL CANADA'S CHALLENGES. 2020). The
company was once recognised as leaders in the telecommunication market but excessive
competitive forces in the market has affected the ability of the company to conduct day to day
operations so that appropriate revenue is generated by the business.
Figure 1: (Number of Subscribers of BCE Inc)
Source: (BELL CANADA'S CHALLENGES. 2020)
ECONOMICS
Introduction
The main purpose of the assessment is to analyse the business of BCE Inc which is
engaged in telecommunication services in the market. BCE Inc is a publicly traded
telecommunication company and the headquarters of the company is situated in Canada. The
full form of the company is Bell Canada Enterprise Inc which provides wireless
telecommunication solutions for the customers. The company was created by an act of
parliament for promoting telecommunication facilities in the country. The company since
then has diversified the operations of the business and entered into television market as well
providing wireless solutions to the customers (BELL CANADA'S CHALLENGES. 2020). The
company was once recognised as leaders in the telecommunication market but excessive
competitive forces in the market has affected the ability of the company to conduct day to day
operations so that appropriate revenue is generated by the business.
Figure 1: (Number of Subscribers of BCE Inc)
Source: (BELL CANADA'S CHALLENGES. 2020)
3
ECONOMICS
Discussion
Non-Market Environment
The business of BCE Inc operates mainly in Canada and the business model for the
company which can be identified from the annual report is to expand the operations of the
business and also further diversify the activities of the business. The management of the
company needs to focus on non-financial factors as well and not just on financial factors. The
analysis of the annual report for the company for 2019 reveals that the business faces
numerous legal cases which is related to damage claims or relief which the company needs to
provide to the customers (Bce.ca. 2020). The business reported several issues which is
associated with the numerous legal regulations such as consumer and other litigation. These
impact the operational efficiency and process of generation of revenue generation in the
business. Another major issue which the business is facing the competitive environment is the
high competition and changes in the taste and preference pattern of the consumers. The
company was considered to be the market leaders in wireless internet but at present but the
competitive pressure in the market has hampered the positioning of the business and also
affected the revenue which is generated by the business. Alltel Corp., Telus Corporation,
America Movil SA are some of the competitors of BCE Inc.
The management of the company needs to ensure that proper attention is paid to the
customer service area for the company which is one of the main reasons that the customers
are switching to other companies. The business needs to make amendments in the policies of
the company from billing services to telemarketing services and this improvement is
necessary in order to retain the customers and generate appropriate profits from the
operations of the business. In order to better demonstrate the issues which the company of
BCE Inc is facing, four I’s Model is applied and explanation for the same is provided below:
ECONOMICS
Discussion
Non-Market Environment
The business of BCE Inc operates mainly in Canada and the business model for the
company which can be identified from the annual report is to expand the operations of the
business and also further diversify the activities of the business. The management of the
company needs to focus on non-financial factors as well and not just on financial factors. The
analysis of the annual report for the company for 2019 reveals that the business faces
numerous legal cases which is related to damage claims or relief which the company needs to
provide to the customers (Bce.ca. 2020). The business reported several issues which is
associated with the numerous legal regulations such as consumer and other litigation. These
impact the operational efficiency and process of generation of revenue generation in the
business. Another major issue which the business is facing the competitive environment is the
high competition and changes in the taste and preference pattern of the consumers. The
company was considered to be the market leaders in wireless internet but at present but the
competitive pressure in the market has hampered the positioning of the business and also
affected the revenue which is generated by the business. Alltel Corp., Telus Corporation,
America Movil SA are some of the competitors of BCE Inc.
The management of the company needs to ensure that proper attention is paid to the
customer service area for the company which is one of the main reasons that the customers
are switching to other companies. The business needs to make amendments in the policies of
the company from billing services to telemarketing services and this improvement is
necessary in order to retain the customers and generate appropriate profits from the
operations of the business. In order to better demonstrate the issues which the company of
BCE Inc is facing, four I’s Model is applied and explanation for the same is provided below:
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4
ECONOMICS
Issues: The firsts area is issues which is the basic unit for analysis and the same can
be appropriately be used for reviewing a problem faced by a business. The major
issue which the management of BCE Inc has faced over the recent years is associated
with the ineffective management of the business and improper customer services.
Besides this, the company also faced significant competitive pressure in the market
which affected the operations and revenue generation procedure (Kim, Jun & Lee,
2014). In addition to this, the working environment is not well constructed as majority
of the employees are at the risk of losing their jobs so that the business can stabilise
the operations. As per the annual report of 2019, the performance of the business has
deteriorated from previous year which is mainly due to the inefficient services which
the management is providing. In addition to this, the business is also facing pressure
from competition and changing taste and preference pattern of the consumers in the
market. It is very necessary for the company to rejuvenate the corporate governance
of the company, so that the company can get back their glory days. The company
should consider changing the top executives of the company.
Interests: The interest element refers to the group of people who have a stake in the
organization and is closely associated with the operations of the business. As per the
issue, the main interest of the employees is affected and this is the reason that the
company has received such negative responses from the employee. Along with the
employees, the customers are also impacted due to the inefficiency of the business
and therefore demand for the products of the company is decreasing. The business has
faced lawsuit from the customers which has affected the legal position of the business
in a severe manner and thereby also have to bear damage claims (Tabaku & Çerri,
2015). The management of BCE Inc needs to consider the interest of the employees as
ECONOMICS
Issues: The firsts area is issues which is the basic unit for analysis and the same can
be appropriately be used for reviewing a problem faced by a business. The major
issue which the management of BCE Inc has faced over the recent years is associated
with the ineffective management of the business and improper customer services.
Besides this, the company also faced significant competitive pressure in the market
which affected the operations and revenue generation procedure (Kim, Jun & Lee,
2014). In addition to this, the working environment is not well constructed as majority
of the employees are at the risk of losing their jobs so that the business can stabilise
the operations. As per the annual report of 2019, the performance of the business has
deteriorated from previous year which is mainly due to the inefficient services which
the management is providing. In addition to this, the business is also facing pressure
from competition and changing taste and preference pattern of the consumers in the
market. It is very necessary for the company to rejuvenate the corporate governance
of the company, so that the company can get back their glory days. The company
should consider changing the top executives of the company.
Interests: The interest element refers to the group of people who have a stake in the
organization and is closely associated with the operations of the business. As per the
issue, the main interest of the employees is affected and this is the reason that the
company has received such negative responses from the employee. Along with the
employees, the customers are also impacted due to the inefficiency of the business
and therefore demand for the products of the company is decreasing. The business has
faced lawsuit from the customers which has affected the legal position of the business
in a severe manner and thereby also have to bear damage claims (Tabaku & Çerri,
2015). The management of BCE Inc needs to consider the interest of the employees as
5
ECONOMICS
well as the customers while framing the policies of the business in order to ensure
long term sustainability of the business.
Institutions: As per the model, institution refers to the place where rules and
regulations are established and thereby steps needs to be taken by management to
ensure that such rules and regulations are adhered to in the operations of the business.
The employee issues which the company faces are mainly associated with the layoff
of the employees which is not a popular practice in the market. In addition to this, the
business has also faced complaints from the customers as they are unable to get
effective services (Hossain, 2017). In addition to this, the government is also one of
the stakeholders in the company as the business is directly related to the
telecommunication services. Therefore, it can be said that the government also has a
vital role to play in effectively making regulations and then the management of the
company needs to implement the same for the welfare and fair treatment of the
employees.
Information: The next element which is included in the model is information which is
considered to be very important for solving issues which are non-market related. The
management of BCE Inc needs to take active steps in accumulating the main
grievances of the customers and identify what is actually going wrong with the
policies which are already established. The business needs to take an interest in the
market trends and devise a strategy so that competitive pressure in the market can be
faced in an appropriate manner. The information which is collected is very important
for making progress with the issues and also for meeting the competitive pressure in
the market (Masse & Beaudry, 2015). The first step which the senior officials of BCE
Inc should do is to settle the cases or lawsuits which are pending in the court and then
make amendments to the policies of the business considering the information which is
ECONOMICS
well as the customers while framing the policies of the business in order to ensure
long term sustainability of the business.
Institutions: As per the model, institution refers to the place where rules and
regulations are established and thereby steps needs to be taken by management to
ensure that such rules and regulations are adhered to in the operations of the business.
The employee issues which the company faces are mainly associated with the layoff
of the employees which is not a popular practice in the market. In addition to this, the
business has also faced complaints from the customers as they are unable to get
effective services (Hossain, 2017). In addition to this, the government is also one of
the stakeholders in the company as the business is directly related to the
telecommunication services. Therefore, it can be said that the government also has a
vital role to play in effectively making regulations and then the management of the
company needs to implement the same for the welfare and fair treatment of the
employees.
Information: The next element which is included in the model is information which is
considered to be very important for solving issues which are non-market related. The
management of BCE Inc needs to take active steps in accumulating the main
grievances of the customers and identify what is actually going wrong with the
policies which are already established. The business needs to take an interest in the
market trends and devise a strategy so that competitive pressure in the market can be
faced in an appropriate manner. The information which is collected is very important
for making progress with the issues and also for meeting the competitive pressure in
the market (Masse & Beaudry, 2015). The first step which the senior officials of BCE
Inc should do is to settle the cases or lawsuits which are pending in the court and then
make amendments to the policies of the business considering the information which is
6
ECONOMICS
collected. The company should also formulate strategy to mitigate the pressure that is
rising due to the entrance of new competitors in the market.
Integrated Strategy
The grievances of the customers over better services have been common for the
business of BCE Inc and negligible changes have been made over the years. The business is
trying to expand the operations of the business and provide better quality of products to the
customers so that the customers are satisfied. However, the company is forgetting to looking
after the needs of the customer and only focusing on enhancing the revenue which is made by
the business (O’Connor, 2014). This is affecting the reputation of the business in the market
and thereby also impacting the revenue generation process of the business.
The business as per the 2019 annual report has decided to take steps in order to
improve the work culture and ensure that the primary focus is shifted to satisfaction of
customers and retention of the same. In order to achieve this, the business needs to combine
market factors and non-market factors for formulating strategies and policies which can be
implemented in the organization. The business needs to make improvements in the policies
and practices which are followed in the operations and ensure that internal management
process of the business undergoes improvements. As per the past trends of the business, the
management has always been ready to compensate for the damages caused to customers but
has not taken an active step for making improvements in the internal processes of the entity.
The management of BCE Inc has continued to follow expansion strategy and for such
a purpose acquired different businesses which can help the business to achieve the long term
goals which are already established. One other step which the business has taken is in terms
of making changes in the management team of the company so that a new approach can be
brought about in the formulation of policies (Uppal & LaRochelle-Côté, 2014). The change
ECONOMICS
collected. The company should also formulate strategy to mitigate the pressure that is
rising due to the entrance of new competitors in the market.
Integrated Strategy
The grievances of the customers over better services have been common for the
business of BCE Inc and negligible changes have been made over the years. The business is
trying to expand the operations of the business and provide better quality of products to the
customers so that the customers are satisfied. However, the company is forgetting to looking
after the needs of the customer and only focusing on enhancing the revenue which is made by
the business (O’Connor, 2014). This is affecting the reputation of the business in the market
and thereby also impacting the revenue generation process of the business.
The business as per the 2019 annual report has decided to take steps in order to
improve the work culture and ensure that the primary focus is shifted to satisfaction of
customers and retention of the same. In order to achieve this, the business needs to combine
market factors and non-market factors for formulating strategies and policies which can be
implemented in the organization. The business needs to make improvements in the policies
and practices which are followed in the operations and ensure that internal management
process of the business undergoes improvements. As per the past trends of the business, the
management has always been ready to compensate for the damages caused to customers but
has not taken an active step for making improvements in the internal processes of the entity.
The management of BCE Inc has continued to follow expansion strategy and for such
a purpose acquired different businesses which can help the business to achieve the long term
goals which are already established. One other step which the business has taken is in terms
of making changes in the management team of the company so that a new approach can be
brought about in the formulation of policies (Uppal & LaRochelle-Côté, 2014). The change
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ECONOMICS
in the policies will benefit the company by considerable means. The expectation of the
business is that integrated approach which is being followed would help the management to
resolve the issues which the customers are facing and at the same also promote transparency
in the operational process of the business.
Conclusion
The above discussion appropriately shows some of the main issues which is faced by
the business of BCE Inc and how the same has influenced the operations of the business. The
effect of the issues has a direct impact on the revenue of the business. The analysis identifies
that the main issue which the company has been facing in recent times is related to
appropriate management of the operations which is directly linked with the customer services
and different legal suits which are already pending in the court. The discussion also shows
real examples of the company and how the issues are impacting the operations of the
business. In addition to this, the analysis also shows application of Four I’s model for
resolving nonmarket issue. In addition to this, the discussion also provides suggestions
regarding the approach which BCE Inc need to take for improving the business structure. The
recommendation which can be provided to the business is listed below:
The business needs to reduce the costs and focus on providing more effective services
to the customers as the same should be the primary focus of the busines.
Changes needs to be made in the administration policies and focus of the business
should be retention of employees.
The management of the company needs to further diversify the operations of the
business and ensure that proper revenue is generated from the operations of the
business.
ECONOMICS
in the policies will benefit the company by considerable means. The expectation of the
business is that integrated approach which is being followed would help the management to
resolve the issues which the customers are facing and at the same also promote transparency
in the operational process of the business.
Conclusion
The above discussion appropriately shows some of the main issues which is faced by
the business of BCE Inc and how the same has influenced the operations of the business. The
effect of the issues has a direct impact on the revenue of the business. The analysis identifies
that the main issue which the company has been facing in recent times is related to
appropriate management of the operations which is directly linked with the customer services
and different legal suits which are already pending in the court. The discussion also shows
real examples of the company and how the issues are impacting the operations of the
business. In addition to this, the analysis also shows application of Four I’s model for
resolving nonmarket issue. In addition to this, the discussion also provides suggestions
regarding the approach which BCE Inc need to take for improving the business structure. The
recommendation which can be provided to the business is listed below:
The business needs to reduce the costs and focus on providing more effective services
to the customers as the same should be the primary focus of the busines.
Changes needs to be made in the administration policies and focus of the business
should be retention of employees.
The management of the company needs to further diversify the operations of the
business and ensure that proper revenue is generated from the operations of the
business.
8
ECONOMICS
Reference
Bce.ca. (2020). Retrieved 4 March 2020, from https://www.bce.ca/investors/AR-2018/2018-
bce-annual-report.pdf
BELL CANADA'S CHALLENGES. (2020). The Globe and Mail. Retrieved 4 March 2020,
from https://www.theglobeandmail.com/report-on-business/bell-canadas-challenges/
article17988210/
Haider, M., Rasli, A., Akhtar, C. S., Yusoff, R. B. M., Malik, O. M., Aamir, A., ... & Tariq,
F. (2015). The impact of human resource practices on employee retention in the
telecom sector. International Journal of Economics and Financial Issues, 5(1S), 63-
69.
Hossain, M. Z. (2017). Building Sustainable Relationships through Customer Support Service
in Telecommunication Industry. Global Journal of Management And Business
Research.
Kim, K., Jun, C. H., & Lee, J. (2014). Improved churn prediction in telecommunication
industry by analyzing a large network. Expert Systems with Applications, 41(15),
6575-6584.
Masse, M., & Beaudry, P. (2015). The State of Competition in Canada's Telecommunications
Industry-2015. Montreal Economic Institute.
ECONOMICS
Reference
Bce.ca. (2020). Retrieved 4 March 2020, from https://www.bce.ca/investors/AR-2018/2018-
bce-annual-report.pdf
BELL CANADA'S CHALLENGES. (2020). The Globe and Mail. Retrieved 4 March 2020,
from https://www.theglobeandmail.com/report-on-business/bell-canadas-challenges/
article17988210/
Haider, M., Rasli, A., Akhtar, C. S., Yusoff, R. B. M., Malik, O. M., Aamir, A., ... & Tariq,
F. (2015). The impact of human resource practices on employee retention in the
telecom sector. International Journal of Economics and Financial Issues, 5(1S), 63-
69.
Hossain, M. Z. (2017). Building Sustainable Relationships through Customer Support Service
in Telecommunication Industry. Global Journal of Management And Business
Research.
Kim, K., Jun, C. H., & Lee, J. (2014). Improved churn prediction in telecommunication
industry by analyzing a large network. Expert Systems with Applications, 41(15),
6575-6584.
Masse, M., & Beaudry, P. (2015). The State of Competition in Canada's Telecommunications
Industry-2015. Montreal Economic Institute.
9
ECONOMICS
Tabaku, E., & Çerri, S. (2015). An Empirical Investigation of Customer Loyalty in
Telecommunication Industry in Albania. Mediterranean Journal of Social
Sciences, 6(1 S1), 224.
Uppal, S., & LaRochelle-Côté, S. (2014). Changes in the occupational profile of young men
and women in Canada. Statistics Canada= Statistique Canada.
ECONOMICS
Tabaku, E., & Çerri, S. (2015). An Empirical Investigation of Customer Loyalty in
Telecommunication Industry in Albania. Mediterranean Journal of Social
Sciences, 6(1 S1), 224.
Uppal, S., & LaRochelle-Côté, S. (2014). Changes in the occupational profile of young men
and women in Canada. Statistics Canada= Statistique Canada.
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