Business Strategy Implementation and Sustainability

This report provides an in-depth analysis of business strategy implementation and sustainability. It covers various topics, including Porter's Five Forces, Ansoff's Matrix, and environmental management systems. The report also discusses the importance of digital transformation and its role in electronic commerce. Additionally, it presents a summary of relevant articles and research papers on business strategies and sustainability.

Business
Strategies

Table of Contents
INTRODUCTION...........................................................................................................................1
Task 1...............................................................................................................................................1
P1. The impact and influence the macro environment has on British Telecom Company and
its business strategies. ............................................................................................................1
Task 2 ..............................................................................................................................................4
P2. Conduct an assessment of the British Telecommunication company's internal environment
and its capabilities. ................................................................................................................4
Critically evaluating the strengths and weaknesses of BT.....................................................7
Task 3...............................................................................................................................................7
.P3.Analysing the telecommunications sector........................................................................7
Task4................................................................................................................................................9
P4.Using Bowman’s strategy clock model, the strategic direction and options available for
BT...........................................................................................................................................9
Conclusion.....................................................................................................................................10
REFERENCES..............................................................................................................................12
Books and Journals...............................................................................................................12
Online...................................................................................................................................13

INTRODUCTION
Business Strategies is the summary of how company achieve the target and perceive the
expectations of customers. Business is a firm working plans for achieving its goal successfully.
Growth, renewal and stability is the main three corporate strategies. Effective business strategies
leads to success. In these appraisal we are taking British Telecommunication Company for
assessment. BT was founded 49 years ago. BT company is generating £24.062 billion. British
telecommunication company is the multinational company operating in world. Head office of
Telecommunication company is located in London and in United Kingdom. It has operating in
around 180 countries and it the biggest supplier of mobile, fixed line and broadband services in
UK and provided IT services. It is the first telecommunication company in Britain. This
assessment is introducing the impact or micro environment on BT by answering Pestle model
and Ansoff's Growth vector Matrix. The internal environment and its impact is also taken for
analysis by taking VRIO Model and identifying the strength and weakness of BT. Various
telecommunication sectors are also included for evaluation.
Task 1
P1. The impact and influence the macro environment has on British Telecom Company and its
business strategies.
Macro environment is a general condition and situation that exist in the economy as a
whole. Gross domestic Product (GDP) , spending, inflation, monetary and fiscal policy are
included in the Macro Environment.
Pestle Analysis of British Telecommunication Company
Political Factors- Laws and regulations issues cum up frequently in the environment
which affect the operational activities of BT. It is very difficulty for telecommunication
companies to handle. Wi-Fi and internet are regular concern of life. Customer wishes to
government to make the internet as a primary human right. Everywhere, in every sector there is
need for internet. A conflict for and against net neutrality is violent. But there is always a battle
arrive in between the government and service providers. BT has capabilities to overcome all the
political factors to ensure the proper working of BT.
Economical Factors- Taxes and inflation affect BT in Large extent. The pricing per plan
of BT is affected by increasing expenses. . Building towers and availing resources in remote and
rural areas are very expensive task. The people who lives in remote areas are largely affected.
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Because it is very important for BT to provide better services in all over the countries. It is the
need of every people to be available and accessible 24/7 is flourishing rapidly. BT company has
powerful strength to overcome all the economical factors
Social Factors- It is very important of any industry to work according to the social norms
as to remain in the market. BT is also operating effectively and efficiently in social environment.
The horizontal growth of BT is limited specially it is very challenging to spread out in remote
areas. When it comes to purchasing internet, mobile phones, broadband , customers are left with
less. Purchasing is not so much difficult task but to maintain its expenses like recharges etc is
very difficult. The daily life of average person, telecommunication has become very important
part of life. People in UK admired by the operation of BT which in turn complete the social
factor.
Technological Factors- Innovation is become the important part for telecommunication
companies to stand in the market as because technology is now becoming very advance now a
days. Mobile phones are becoming more consolidated and the telecommunication sector into a
wireless business. BT is investing in large in innovations as to stand strong in the market and in
front of competitors. Wi-Fi is developed into vehicles, hotels, cafe, railways station, airports and
in many places. BT introduce the latest technologies in the market. The products of BT is
appellant as it is beating all of its competitors in UK.
Legal Factors- Legislation issues have great impact on British telecommunication
Company. Conflict with government, competitors and customers are the main issues of BT. BT
company is operating in legal forms and in legal framework. Telecommunication sectors allows
export and imports of services and products in judicial way. By doing import and exports there
is more developments in BT (Maniora, J., 2018). BT company is operating in the norms provided
by government.
Environmental Factors- Telecommunication company is greatly affected by the climatic
changes and global tepid. It is big challenge for BT to reach the networks to its customers in
climatic changes. Products come and goes infrequently sometime replace from the environment,
which is very important task to fight and improve. BT company is doing in advance as-per the
changes and requirements of BT.
Ansoff’s growth vector matrix
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BT company is make use of Ansoff's Growth Matrix to analysis the growth and
opportunities in the market in long term. For evaluating the future growth of BT, the senior
managers and employees work according to the strategies in Ansoff's Model. A road map is
provided by Ansoff's to grow and take opportunities of the market when BT is launching a new
product and services. Ansoff's Matrix is presented in four quarters which is Market Penetration,
Market Development, Product Development and Diversification (7 principals of Business
strategies, 2018).
Market Penetration- When Existing product is noticeable in a way to increase the market
share of BT, market penetration occur. BT is trying to increase the market share by improving its
quality of product and services. It is strategies to increase the efforts of Company to increase the
market share of BT and ensuring the leverages the actual capabilities and resources.
Market Development- When BT desire to expand into new markets with their existing
products and services., market development occur. Is is very risky to develop the existing
product in the market than market penetration. Firm needs due intelligence and complete skills to
inter in the market with new products.
Product Development- When new products is launch in existing market, Product
development occur. This strategies leads to success if BT has establish itself in the existing
market. BT would ensure that the it has brand image and brand value than it easy to launch the
new product in the market ensuring about the quality maintain. Customers do not like same same
products, they need some changes and improvement in the products.
Diversification- This strategies is very much risky than other strategies of Ansoff's
Matrix as because it is very difficult to sell the new product in the market which company doesn't
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Illustration 1: Ansoff's Matrix.
Source- Ansoff's Matrix, 2018

have any know;ledge about the actual taste and preference of people. This strategies is done by
the critical research of market and than the product is launched in the market.
BT Company is using Pestle Model and Ansoff Matrix so efficiently by this company is
gaining higher level of profit margin. The Profit margin is increasing day by day and year by
year.
Task 2
P2. Conduct an assessment of the British Telecommunication company's internal environment
and its capabilities.
Strategic capabilities
The competitive advantage and organizational capabilities are the strength of BT
company. This company also have different types of capabilities like real-time, global market
and open platform for customer. This company is also using a basic line strategy to increase the
value of customers. BT company is trying to expand its location not only in urban areas but also
in rural and remote areas. This company has power to overcome the negative effects of internal
environment. The strategic capabilities of BT Company are competitive advantages, resources-
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Illustration 2: BT Annual Report
Source- BT Annual Report

based strategies, organizational capabilities and venture which are the various schemes of BT
company. Being the best supplier of communication and services as well as solutions, BT
Company is using a basic line strategy to create value to stockholder. To focus on global market,
real-time and open platform for customers are the strength of company. BT Company is
increasing capacity to enhance the capabilities to expand scope not only in urban areas but also
in rural and remote areas. BT Company is expanding online services to serve the small scale
businesses and it ties up with more overseas companies to expand businesses at global level. BT
company is fighting with the threats of its business like long-term vision, stiff competition and
global economic depression. BT Company has strategical capabilities to overcome with all the
factors affecting internal environment of business.(Buckley, Burton and Mirza,2016). BT
company is growing at high growth rate. The goodwill of BT is valued at highest level.
VRIO/VRIN MODEL :
VRIO model is a tool for an organization to analyses the internal capabilities of an
organization to evaluate that are they capable to fight against the competitive environment. This
model is best and a largest scheme. Framework of this model is done by four types of questions
such as :
 value
 rarity
 imitability
 organization
Question of value : The first question in the VRIO model, is the resources of an organization is
capable enough to the firm ? Resources such as human resources and financial resources are the
capabilities and the strength of a company. As all know that resources are the limited factor.
Wastage of the resources is not good for the company(Naor, Druehl and Bernardes, 2018). It
reduces the efficiency of productivity. BT company is utilize the best of their resources which
increase the opportunities in the market.
Question of rarity : Rarity of the BT company regarding to the network area. It has the best
network quality. BT company is growing fast in the telecommunication industry because of
capability of network quality. No company in the telecommunication industry can beat this
company. BT company has rarity in the business which lead to strength of the business and lead
to competitive plus point. Rarity in the BT Company is its network quality. No
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telecommunication company can beat the network quality of BT company. With this advantage
company is growing very fast as compare to other.
Question of imitability : imitation of a company appears in two different ways such as
submission and duplication. BT company maintain its market share and position in the market
with the helping of high imitation cost(Naor, Druehl and Bernardes, 2018). If a company wants
to increase the profitability margin and advantages of competition then imitation cost must be
high.
Question of organization : next question in the VRIO model is all the resources are in proper
manner? Company has to organize it's all resources such as human resources and financial
resources to gain maximum utilization and efficiency of productivity. VRIO model helps in to
manage all the resources accordingly. Valuable refers to the competitive advantage, rare refers to
competitive parity, inimitable refers to temporary competitive advantage and organized refers to
unused competitive advantage(Buckley, Burton and Mirza,2016).
Strategic capabilities means a ability to survive in the competitive market with increasing
a value over time. It includes the asserts, resources and market position of the company in the
market.
Analysis of VRIO model by this table :
RESOURC
ES
VALUE RARITY IMITATE ORGANIZ
ATION
COMPETI
TIVE
IMPLICAT
IONS
STRENGT
HS AND
WEAKNES
SES
Human
resources
low high medium low Temporary
competitive
advantage
weakness
Customer
relationship
high medium medium high Sustained
advantage
strength
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Managerial
expertise
medium high low high Temporary
advantage
weakness
Service
level
high low medium low Competitive
advantage
strength
technology high medium high low Competitive
advantage
strength
Strengths and weaknesses of an organization of BT company :
BT company is a brand known company in the world. There are different kinds and
characteristics of strengths and weaknesses of this company. Which generates from the
environment. Environment includes both macro and micro. Strengths and weaknesses of a
company can be identified by SWOT analysis. Strengths of BT company are :
 high coverage area in the market
 revenue generated
 development of marketing strategy
 premium cost is very low
 the highest base of subscriber
 brand valuation
BT company covers the highest coverage area in the market which is the best strength of a
company. The balance sheet of BT is healthy and strong financial position in the market. . Wide
network area and wide distribution area is also well known characteristic of this company. Other
companies in telecommunication sectors is using strategy of penetration marketing but BT
company is using differentiation marketing strategy. Brand valuation of BT company is also
highest rather than other companies. BT has large number of users and it has wide products and
service range. BT has signed the world's largest renewal energy deal which company has unique
strength from its competitors. BT has invested in new Internet Protocol century Network 21CN.
BT is operating in 28 million UK telephones lines. BT has largest penetration network in work
wide (Juneho, U and et.al, 2018).
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Weaknesses
Unsound cable lines, slow service and lustreless sales are the main three weaknesses that
would be the weak points of telecommunication company. Their is lack of convergence of BT
in fixed mobiles. The operation in mobile phones is underdeveloped. The lack of business
strategies towards the publicity of Cheap Voice calls. Their is occasional pay phones issues due
to BT operations. The customer services are also not good, users is not liking the customer
services. In global crisis BT is not able to stand strong the market. Sometimes there is fund
management crisis. Their is limited liquidity in the operation in BT. BT is convicted for
practices such as activity targeting. Sometimes business is may be losing money in specific areas
like in remote areas and rural areas as there is lack of resources.
Critically evaluating the strengths and weaknesses of BT.
As per the Lim, E.K - The strength and weaknesses of BT Company which affect
the internal capabilities, structure and skills of the company. BT company has excellent strength
which proves the company the best telecommunication company of the world. The weaknesses
of BT company affects its profit and market share in the market which is its lack convergence
(Lim, E.K., Chalmers, K. and Hanlon, D., 2018).
Task 3
.P3.Analysing the telecommunications sector
Porters-five-forces-Porter's five forces is a instrument for analysing the competition of
a business. It is the model which analysis the competitive position and strength of a business. It
a frame work which ascertain the competitive magnitude and quality of market. Every
telecommunication company in UK is using Porter's Five Model as the competitive position and
strength of business is influenced by this model. BT is also using the Porters-five-forces Model
which helps in enhancing its position.
Bargaining power of buyers- Porter's five forces of buyer refers to the pressure exert on
British Telecommunication Company by buyers to get them available of high quality, better
customer services and lower prices (O'Brien, A. and Welford, R, 2018). According to the Porter's
five Model- buyer power is one of the forces that shapes the competitive structure of BT
company. BT buyer's are in numerous subscriber's but still the bargaining powers of buyer of
BT is strong as because of competition in the market. The buyer's of BT is powerful which
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reduces the cost of services and products. These buyers cut down the leader monetary value but
not past the level of rivals. To control the bargaining powers of buyer BT. BT should ensure the
returns above the competitors in the telecommunication sectors to survive in the market.
Company is using this porter's model which analysis the competition spreading in the
marketplace which influenced the prices, prime quality of services and products of company.
Sometimes, Buyers also bargains for enhancing the services of products in same charge before.
Bargaining power of suppliers- Porter's five forces of buyer refers to the pressure exert on
British Telecommunication Company by suppliers that how easy they increase their Prices. The
suppliers of BT is also bargains in supplying various products like Sim, mobile phones, fiber
optical cables etc. For controlling the the powers of suppliers,BT has relationship with numerous
suppliers, which in turn control the bargaining powers of suppliers. More suppliers, company is
in better position. Thus model determines that what is the cost will increases in switching of
suppliers (Hartmann, J. and Vachon, S., 2018). Suppliers bargaining power is excepted when
their is uniqueness in the product of him otherwise company switch to other. BT have to ensure
the bargain powers of suppliers because if they increases the prices, the cost of product increases
which in turn decreases the customers.
Threat of new entry- The first impact on telecommunication sector is Threat of new entry. When
the threat is high, BT must hold the customers with minimum prices of the product and services.
But in telecommunication sector the threat of entry is not so high, it is low because the
development of structure of telecommunication sector required immense fund, and secondly the
another issues which stop the new entrants is telecommunication sector is facing competitions
with established firms. BT company faces considerable threat of products and services still BT
does not has to minimize its prices due to impressive economic scale and strong power of buyers.
Arranging finance is also become a biggest barriers of entry as telecommunication sector as it
require huge cost and typically need massive cash in hand to start up the business. In UK,
telecommunication company has to apply for the license Federal Communication Commission
(FCC) for approval to start their business. BT has excellence skills of management which also
become challenging for new entrants
Threats of Substitutes- Porters-five-forces studies that in telecommunication sector the rate of
switching is high. The competition level in telecommunication sector is at peak level. BT is
facing worthy substitutes of products and services. The CDMA services and basic land line
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phones are declining with the innovation of Broadband services which are becoming middling.
BT does not need to pass down the cost of submission due to strong and powerful and effective
scale of management. The services provided by the buyers of loves BT services and its products,
which can be identified by the coverage of market share in the telecommunication sector. Social
networking sites like Facebook, Instagram, Video calls, emails, yahoo, Skype and many other
services have taken place as substitute of mobile services.
Competitive Rivalry- Telecommunication sector is facing cut-through competition in the market.
Their are number of competitors in UK still BT is facing and fighting intense competition with
their competitors. Porters-five-forces examines the intensity of competition currently in the
market and also evaluate the strength to overcome it. Rivalry competition is very high when
there are just a few businesses evenly selling a product or service. BT has to charge same price
what other telecommunication sectors in UK is charging as because the switching cost is very
high. Today there is competition everywhere in each sectors. Enhancement in qualities is
important but customer instantly take decision regarding price when their are so many substitutes
available (Cubas‐Díaz, M. and Martínez Sedano).
Task4
P4.Using Bowman’s strategy clock model, the strategic direction and options available for BT.
Bowman-strategy-clock model is the framework used by telecommunication company to
analysis the competitive position of a company. It was developed by Cliff Bowman. With the
help of this model BT can assemble all the information on its market position in respect to the
competitors. Bowman model has 8 competitive directions Bowman-strategy-clock model is the
expansion of Porters-five-forces Model.
Low Price and Low value (Position1)- This position is not a competitive position of BT.
Generally telecommunication companies do not use this position because the switching cost is
very high and there is intense competition in the market.
Low Price (Position2)- For attracting customer's companies often use this position keeping the
price very low. BT company when introduce its products and services in the market, keep its
prices very low which attract many customers and automatically the market share increased.
Hybrid (Position3)- This position includes low price and some differentiation in products and
services. They produce lower cost products and services and also offer some product
specialization. Many minor businesses fall into this position as they cannot compete with giant
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businesses. In this position more focus is on manufacturing goods dependable products and
services at reasonable price (Nadeem, A and et.al, 2018).
Differentiation (Position4)- For creating unique position in the market it is very important to
differentiate it from competitors products. The aim of differentiation in product style and in
service management and its quality also. In this position branding plays a key role. The services
and products of BT is different from other. Differentiation leads company to great success and
win the market. Differentiation also leads to monopoly in the market (Cottle, C and et.al, 2018).
Focused Differentiation (Position5)- In this position the products and services has high perceived
value at highest price level. This position is adopted by luxury brands companies who desire to
gain superior prices at highly targeted market. In this position customer is ready to pay for it.
Increased Price (Position6)- This position is followed by many companies who takes advantage
and opportunities of market supply disequilibrium and approach short term strategies and
increase the price of the products. Any telecommunication sector producing differentiated and
innovative products utilize this position of increased price. If the increased price is accepted by
consumers, company enjoy high profit in the marketplace, and if it not accepted by customers
than company loses its existence as its market share fall, and it keep on falling until company
make improvement in price level.
High Price/ Low price (Position7)- This position is for company who has monopoly in the
market. In UK,BT is the first Telecommunication company. In that time BT has its monopoly
powers in UK. The qualities of companies that position themselves as a monopoly in the market.
In this position company has no fear of competition. Customer's have only single choice,
whether to purchase or reject. In telecommunication company it is not easy for new entrants
because of its cost of infrastructure, monopoly remain for long lasting.
Loss of market Share (Position8)- This position is very desirable position for company as
company comes to the stage of shutdown. The whole market share of company is disappeared
from the market. In this position company has only two choice, whether to quit or adjust the
price at low. Their are two reasons that company reaches to this position either the price is too
high or the quality is rejected (Cascio, W., 2018).
Conclusion
In the above report it is concluded that businesses strategies are very important for each and
every organization to sustain in the market. Efficient and Effective strategies helps in gaining
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competitive advantages and opportunities in a market as well as support in improving
performance of BT. The report identified various external and internal factors which are
affecting business functions and strategic planning in Telecommunication Sector. The report
included various analysis tools such as Bowman Strategies of clock Model and Porter's Five
Forces and Ansoff's Matrix in order to identify the factors affecting business operations of BT.
Moreover, the report also discovered various strategies that can be adopted by the organization in
order to gain competitive advantages and sustain a leading position in the telecommunication
sector. Furthermore, the assessment giving direction to BT Company how bargaining power of
buyer and suppliers and how to analysis the threat of new entrants and threat of substitute can be
controlled and how the porters-five-forces can be implemented in the organization. This report
also helps in fixing the price level of products and services in manner that leads to success.
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REFERENCES
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Cottle, C and et.al, 2018. Carbon Pricing in the Private Sector: How the Science, and Politics, of
Carbon Pricing and Climate Change Influence Business Strategy.
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and business strategy–A triple bottom line approach. Business Strategy and the Environment.
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Hartmann, J. and Vachon, S., 2018. Linking environmental management to environmental
performance: The interactive role of industry context. Business Strategy and the Environment.
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Jamasb, T., Thakur, T. and Bag, B., 2018. Smart electricity distribution networks, business models,
and application for develo
Juneho, U and et.al, 2018. Aligning Product Variety with Supply Chain and Business Strategy.
International Journal of Productivity and Performance Management.
Leonidou and et.al., 2017. Internal drivers and performance consequences of small firm green
business strategy: The moderating role of external forces. Journal of business ethics. 140(3),
pp.585-606.Cascio, W., 2018. Managing human resources. McGraw-Hill Education.
Lim, E.K., Chalmers, K. and Hanlon, D., 2018. The influence of business strategy on annual report
readability. Journal of Accounting and Public Policy. 37(1), pp.65-81.
Maniora, J., 2018. Mismanagement of Sustainability: What Business Strategy Makes the
Difference? Empirical Evidence from the USA. Journal of Business Ethics. pp.1-17.
Nadeem, A and et.al, 2018. digital transformation & digital business strategy in electronic
commerce-the role of organizational capabilities. Journal of Theoretical and Applied Electronic
Commerce Research. 13(2), pp.i-viii.
Naor, M., Druehl, C. and Bernardes, E.S., 2018. Servitized business model innovation for
sustainable transportation: Case study of failure to bridge the design-implementation gap.
Journal of Cleaner Production. 170. pp.1219-1230.
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O'Brien, A. and Welford, R, 2018. Submission and citation practices in Business Strategy and
Development and our commitment to integrity and ethics. Business Strategy & Development.
1(1). pp.6-7.
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Assessed through: <https://jeroen-de-flander.com/business-strategy-principles/>.
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