Business Strategy of British Telecommunication : Report
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Added on 2020-06-03
Business Strategy of British Telecommunication : Report
Added on 2020-06-03
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BUSINESSSTRATEGY
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1. Impact and influence of macro environment by PESTLE model for environmentalanalysis .......................................................................................................................................1TASK 2............................................................................................................................................3P2. Conduct an assessment of the organisation's internal environment and its capabilities.......3TASK 3............................................................................................................................................3P3. Evaluate the competitiveness of British Telecommunication using Porter's five forcesmodel...........................................................................................................................................3TASK 4............................................................................................................................................3P4. Analyse the strategic direction and option using Bowman's strategy clock model..............3CONCLUSION................................................................................................................................3REFERENCES................................................................................................................................3
INTRODUCTIONBusiness strategy is a important concept that define the path through which final goalsand objectives could be achieved in set time period. Strategies are formulated for the future thatguide every individual entity towards single direction. As every business organisation have tooperate in dynamic environment which keeps on changing thus, it is important to assist overallfunctioning according to the framed strategy. The company included in this report is BT(BritishTelecommunication) which is a telecommunication company dealing in IT and communicationservices operating in approx. 180 countries. This report highlight the impact and influence ofmacro environment by performing PESTLE analysis and evaluation of competitiveness of thecompany with the use of Porter's five force model. TASK 1P1. Impact and influence of macro environment by PESTLE model for environmental analysis Every company have to face competition from number of competitors that are present insame industry. Similarly, BT Group also faces various challenges and competition from theirrivalries thus, to evaluate the influence and impact of macro environment company they performPESTLE analysis. The business environment consists of number of factors that poses hugeimpact on overall functioning of the company. (Ackermann, and Audretsch, 2013). Dynamicenvironment includes several micro and macro elements that affect the organisational decisionmaking power. Thus, it is necessary for the management level to perform the environmentalscanning process to examine all the factors and elements that have direct impact on the overallstructure of the company. British Telecommunication is operating in telecom sector and have to operate broadly indifferent parts of the world. Thus, it become necessary for them to study macro environmentthrough PESTLE analysis that are discussed below: Political Factors: UK have faced several instabilities in political sector after the phase ofBrexit, in result of it various telecommunication sector companies have faced number ofissues related to it. There are several rules and regulations that have to be followed by thetelecommunication companies operating in number of countries. Government haveframed policies related to minimizing the usage of mobile phones so that health problems1
could not be raised (Klettner, Clarke and Boersma, 2014). Thus, it poses a negativeimpact on the functioning of BT Group. Economical Factor: UK have faced recession phase that lead to change in purchasingpower of customers in market place. Hence, BT Group have to face condition of costpricing war that rises among several telecommunication companies that is operatingthere. Formulation of inflation condition have pose the direct impact on prices of theirproduct and services Social Factors: Customers are the real kings in the market place hence, it is necessary forevery business organisation to work in accordance to the prevailing market condition. Forinstance, the youngsters are attracted towards the use of mobile phones thus they are thetargeted clients for the company. BT company have to study the purchasing trends of thecustomers so that they can execute their decisions considering it. Technological Factors: Technology is considered most important aspect that must befocused by telecommunication sector as it is necessary to adopt modern and advancedtechnology in frequent time period. BT have to make sure that proper advancement oftechnology must be implemented in the working process so that customers get satisfiedwith the services. Due to change in 4g and 5g generation system, company have to makemodifications accordingly. Legal Factors: This component include number of legislations and policies that have tobe incorporated by the company in to their system. For instance, BT Group have to makedecision in relation to Sales of Goods Act 1974 that have numerous guidelines regardingsales and products. Hence, telecommunication sector also have to examine the strategiesof their competitors and then take decision according to it. Environmental Factors: ContinuousChanges in weather conditions directly impact thefunctioning of telecommunication sector. For instance, change in climate or globalwarming has direct impact on the overall functioning of the organisation (Annabi, andMcGann, 2013). As it results into disturbance of communication path. From the above discussion it can be concluded that PESTLE analysis helps in finding outseveral areas that have to be examined properly so that final objectives can be accomplished.Organisation's strategic positioning can be evaluated by performing Ansoff's growth vectormatrix, which is described below: 2
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