Business Strategy Analysis of British Telecom (BT) - A Comprehensive Study

Business Strategy

Contents
Introduction......................................................................................................................................1
Task 1...............................................................................................................................................2
P1 Analyze the impact and influence the macro environment has on your chosen organization
and its business strategies............................................................................................................2
Brief introduction of BT..............................................................................................................2
M1 critically analysis the macro environment and how it determines your chosen
organization’s strategic management decisions...........................................................................7
Task 2...............................................................................................................................................9
P2 Conduct an assessment of the organization’s internal environment and its capabilities........9
M2 critical evaluation of the strengths and weaknesses of an organization’s internal
capabilities, structure and skill set.............................................................................................14
Task 3.............................................................................................................................................16
P3 Evaluate the competitiveness of UK’s telecommunications sector using Porter’s five forces
model.........................................................................................................................................16
M3 devising appropriate strategies............................................................................................18
Task 4.............................................................................................................................................19
P4 Using Bowman’s strategy clock model, analyze the strategic direction and options
available for chosen organization..............................................................................................19
M4 Produce a strategic management plan that has tangible and tactical strategic priorities and
objectives...................................................................................................................................21
Conclusion.....................................................................................................................................23
References......................................................................................................................................24

Introduction
Technology is growing everyday with new inventions and innovations and these technological
advancements create lots of challenges for the businesses. The businesses which are capable
enough to tackle these challenges by its strategic capability can run or can sustain for long run. In
case the businesses are not capable enough to handle the challenges they face difficulties to
survive. Businesses need to frame a business strategy which works as tool to give potential or
strength to overcome the challenges and to make stand in increasing competition. The present
study would be focussing on the different aspects of business strategy with respect to British
Telecom which is one of the leading market players in United Kingdom.
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Task 1
P1 Analyze the impact and influence the macro environment has on your chosen organization
and its business strategies.
Brief introduction of BT
British Telecom is a multinational telecommunications service provider company that deals with
fibre, fixed and mobile and TV in UK and across 180 countries worldwide. This company has
established in 1969 and now working globally with its 102,000 employees. In terms of revenue
generation the last year revenue was about 24,062 pounds million (About BT, 2018).
At Glance;
Parent company BT group plc
Category Mobile service provider
Sector Telecommunications
Slogan Connected world; Bring it all together
Unique selling point Oldest telecommunications organisation in world
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PESTLE model for environmental analysis
PESTLE analysis represents the macro environment factors influence on the business;
Figure 1: Pestle Analysis
(Source: Author)
Following is the PESTLE analysis for BT:
Political: British telecommunication industry is highly regulated industry and it needs to comply
according to the government rules & regulations such as Brexit is beneficial for BT because the
higher interest rates helpful in reducing its pension ability (Irwin, 2015).
Economical: Economical decision as synergy through acquisition of EE really helps for
improving cost efficiencies and low churn rate. Telecom industry is increasing its scope by the
economic decision of the government it has many opportunities for merger & acquisition (Irwin,
2015).
Social: The free bundling of products for broadband consumers is providing product
differentiation at superior level. Increased growth of living styles of people gives growth to smart
phones, wearable and smart devices gives customers a connected mind set.
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Technological: Technological advancement works as wonder for telecommunication sector if
applied positively as a result it provides investment in high speed network and various alliances
for 5G development (Iden and Methlie, 2012). Keeping capitalization on cloud of clouds service
by BT global services division would be helpful for BT for attaining economies of scale.
Legal: There is legality in every sector of business as it is necessary to operate fairly; ruling by
Ofcom, the regulation of UK is providing a path to be separate of Open reach from BT.
Environmental: Every organisation has to work in a way as not to hamper the ecological
environment and that is why BT has taken initiative for reducing carbon emissions.
The other initiative is taken as switching to 100% renewable energy.
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