Business Strategy: A Case Study of British Telecom

Busin
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Strategy
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Table of Contents
Introduction...........................................................................................................................................3
Task 1....................................................................................................................................................4
P1: Analyse the impact and influence the macro environment has on your chosen organization and
its business strategies.........................................................................................................................4
Task 2....................................................................................................................................................8
P2: Continuing with your chosen organization, conduct an assessment of the organisation’s internal
environment and its capabilities.........................................................................................................8
Task 3..................................................................................................................................................11
P3: Evaluate the competitiveness of the UK’s telecommunication’s sector using Porter’s Five
Forces model...................................................................................................................................11
Task 4..................................................................................................................................................14
P4: Using Bowman’s strategy clock model, analyse the strategic direction and options available for
your chosen organization.................................................................................................................14
Conclusion...........................................................................................................................................16
References...........................................................................................................................................17
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Introduction
Business Strategy deals with the various strategies implemented by the business organization
in order to achieve organizational objectives and the competitive advantage. In the following
assignment we have discussed about the various business strategies in relation with the
British Telecom, which is the leading company in the British telecommunication sector and is
the major provider of communication as well as internet broadband services in UK. The
company is currently providing its services in more than 197 countries across the globe. The
report will discuss the influence of the external as well as the internal environment on the
business operations of the British telecom.
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Task 1
P1: Analyse the impact and influence the macro environment has on your chosen
organization and its business strategies.
PESTEL model for environmental analysis
The PESTEL model will help us in evaluating the external macro environment of the British
Telecom so as to review its political, social, economic, technological, legal environment. It
helps in analysing the current market situation of BT and future directions for business.
M1: Political: Political factors have a great impact on the business operations of a company.
The government of UK as well as the rules and regulations made by them severely affect the
telecommunication industries of UK. The political stability of UK is of great importance for
the success of the BT’s business operations. The global issues of politics have a significant
impact on some of the services of the British Telecom. In addition to this, the business
operations of BT as well as the expansion is affected by the terrorism activities in UK and
other countries. The decision taken by UK of leaving European Union has also affected the
business operations of British telecom.
Economic: The economic situations like rise in globalization these days have a great impact
on the operations of the business. The increasing economic crisis in the country is affecting
the growth as well as the profitability of the organization. It has been observed that the
revenue generation of BT in UK has reduced by 4.5 % due to the economic situations of the
country. In order to overcome the losses incurred in business, BT is planning new methods.
For example, BT is in process of developing new and more-fast network for the broad band
services so as to make for the losses. It is also checking carefully its flow of cash in the
company. Moreover, BT is making more efforts to do more market research so as to have the
proper knowledge of the customer needs and expectations and also working on its E-business
(Chaturvedi, 2018).
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