Business Environments Report of British Telecom

Business
Environments

Table of Contents
INTRODUCTION...........................................................................................................................1
1. Macro environmental analysis of British Telecom............................................................1
2. Micro environmental analysis of British telecommunication industry..............................4
3. Internal environmental analysis of British Telecom..........................................................8
4. SWOT analysis of British Telecom..................................................................................10
CONCLUSION .............................................................................................................................13
REFERENCES .............................................................................................................................14

INTRODUCTION
The term business environment can be used for all the internal and external factors
which affects the functioning of the particular company. The supply, demand, customer
management in the company are affected due to business environment. All the political , cultural,
legal condition etc are included in business environment. The business environment is not static
or fix it changes after a particular time period and the any change in environment of business
cannot be predicted (Kumie and Gilliland, 2016). The business environment of all the places are
not same it changes from lace to place or from culture to culture. The political conditions of UK
or different form Australia so the way of operation of business will also be not same for both
these countries.
British Telecom company is a well-known Telecom company in UK. Around 180
countries across globe it provides its services (British Telecommunications plc , 2017). In the
UK it is one of the largest provider of fixed-line, mobile and broadband services. In his report
pestle analysis will be done of British Telecom company in order to see the impact of external
environment on this company. Also in order to assess the attractiveness of this industry porter
five forces framework will also be conducted in this report. Further more in this report the
internal factors such as resources, capabilities ,core competencies etc analysis will also be one.
This report will also conduct SWOT analysis of this company.
1. Macro environmental analysis of British Telecom
British Telecommunication company is also known as BT, in the UK it is one of the
largest company. In the year 1984 it was privatized and in more than 170 countries around the
globe it operates. The networked IT services, local, national and internal Telecommunication
services are the main activities of this company. The broadband internet services is also provided
by BT to its customers across globe. For the Olympics and Paralympic games that held in UK ,
2012 BT was the official commination service partner. In the coming year it wants to provide
bets communication services to its customers .
In order to service the impact of external environment on British Telecommunication company
pestle analysis will be done.
Political factors – For this industry of Telecom the political environment is full of risk.
In a diverse external environment BT group operates. At both international and local level it
proved its service. The business environment will be affected due to government regulations and
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legal factors. Suppose if there is any change in the laws of government then Telecom industry
also need to implement that polices or laws. The safety regulations, tax guidelines , political
stability etc ear address in the political factors in context of the company. The national trad
barriers, network licensing, regulations etc are some traditional political risks for BT group. The
network operators are mainly affected by this and on the equipment and the service provider the
effects that is felt is less (Špaček and Vacík, 2016). In the favour of Telecom industry the one
factors that works is the privatization and deregulation. In the process of globalization the
freedom was given to this industry . In last some years there are number of threats that have
been merges for this company .There is a rise of political risks. In this sector the control of
government is also high. For the Telecom industry the major sources of political pressure are the
political risks that is there in national security and human rights issue. The measures have been
launches by the government across globe in order to monitor and control communication that is
encouraged by political and security reasons. Against this company large number of countries
have maintained trade barriers. BT group is one of the highly regulated industry all the polices
that is been implemented by the government of UK is followed .
Economic factors – On the industry of Telecom the economic factors such as inflation,
growth rate and interest rates have a great impact. In the context of Telecom industry such as
British Telecom the role of economic factors is essential. This sectors is been hurt deeply due to
recession in UK. There will be an impact on the company due to examining of economic
issues .The factors such as rates of unemployment and polices, inflation , economic growth etc
are included in the economic factors. The recession that is faced in UK due to this various
employees lost their job in Telecom company. So ,a major loss was faced by the company as
they were not able to afford so many employees during that time. As the purchase of Telecom
products was less during that time period. Many employees that are working in BT group loss
their job during recession in UK. But now in the year 2016 thins gave improved this company
sells are increasing so it is providing job opportunities for population of UK. The people were
not spending on the Telecom during this the period of recession (Business Environment of BT
Group, 2017.). There was a cut-down on manliness and the slow growth of cellular services was
there during this period. But now the customers are spending back on the Telecom industry as
the condition is between now in UK. Around the globe things are now changing. The customers
are now using Telecom service again.
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