Business Strategy of British Telecommunication (BT)

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................2
TASK 1............................................................................................................................................2
P1 Analysing macro environment and how it determines strategic management decisions.......2
TASK 2............................................................................................................................................5
P2 The internal environment and organisation capabilities........................................................5
TASK 3............................................................................................................................................7
P3 Competitiveness of UK's telecommunication sector.............................................................7
TASK 4............................................................................................................................................9
P4 Understanding and interpreting strategic direction................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
Business strategy is a very important part of every organisation since it plays a very
important role in helping the company achieving its goals and objectives in an effective manner.
It is being considered as a part of management plan which is designed inside the company by the
managers (Ackermann and Audretsch, 2013). It is considered as very much effective because
through this, the company can strive to achieve the goals and objectives but if these strategies are
not prepared in an effective manner then the company face many issues while doing their
business activities like facing the competition etc. Through effective business strategy, company
can strive to understand their internal and external environment as well through which they will
be able to improve their performance in the market. The company which will be referred in this
report is British Telecommunication (BT). It is having their headquarters in London and is
considered as the holding company of British Telecommunication plc. They are having their
offices on more than 180 countries. This report will include the PESTLE analysis, Ansoff’s
strategy, Swot analysis and Vrio matrix of the organisation.
TASK 1
P1 Analysing macro environment and how it determines strategic management decisions
In the telecommunication industry, there are various kinds of challenges which are being
faced by the companies in the market. PESTLE is considered as one of the most effective
strategy through which the company can understand the whole working environment in an
effective manner. PESTLE stands for Political, Economic, Social, Technological, Legal and
Environmental. Telecom sector is required to be understood by the company since because of
this, the company can do their socio-economic development and evaluation for the country. In
the international market, the telecommunication industries are doing their operations in most
effective manner as they make use of substantive reforms and bringing out effective
improvement as well (Annabi and McGann, 2013).
An association procures different assets from providers and the environments of various
products and enterprises inside the substantial market place. There are different components
which affect on capacities of business for offering items to their clients. Such components of
environment render dangers and open doors for some business association. Macro environment
comprises of outer powers which specifically impact on organization's gripping promoting
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methodology in wide range. There are predominantly two external environments, for example,
macro and micro that is impacting the basic leadership and making strategic marketing as well. It
is vital for understanding different elements of full scale condition and examination of PESTLE
investigation which is more reasonable (Auzair, 2011).
British telecommunication can be regarded as one of the largest telecom sector which are
doing their operations from London and are also handling various types of subsidiaries as well.
BT international services department are providing the telecommunication services to all of its
corporate clients which are located all around the world. It can be considered as one of the
strategic method through which they can make them reach different components which are
located in the business environment. The factors that are included on this process are as follows:-
Political factor – After the incident of Brexit, the political economy of United Kingdom
became politically in-stable. Therefore the referred company is required to make appropriate
strategies so that they can deal with such kind of issues which are prevailing in the political
economy in an effective manner. There are many times when the measures which are being made
by the government comes in the way of BT while providing their services like using mobile
phones in an excessive manner is very harmful for the health of an individual so it needs to be
taken care of by the company. It is compulsory for the company to follow all these regulations
while doing their activities in the county because then only they will be able to avoid further
issues. Country faces political unsuitability for some time that all create problem for BT also and
and from problem of corruptions that is major problem before BT while operating in country
and different laws in telecommunication sector which affects its economic stability and its
structure and there is harder trade regulations and tariffs in telecommunication in UK that affect
its economic stability. If environment is not suitable for business proceddings then it hinders self
interest of organisation and diversify from its goals and objectives.
Economical factor – In this factor, the state of economy is being measured through the
changes that are happening in the company. In the recession period, it is very much required that
the purchasing habits of the customers of UK should be judged because they are generally not
willing their spent their income on any such elements happening in the economy. This has
become a major factor for the companies that re operating UK as they would have to lower down
the prices of their products so that more customers can get attracted towards them (Azar, 2011).
British telecommunication acquired EE from Deutsche telecom and Orange in the year of 2015.
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