Macro Environment Impact on British Telecom Industry

Business strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Impact of Macro Environment on British Telecom ..............................................................1
TASK 2............................................................................................................................................4
P2 Conduct an assessment of organisation's internal environment and its capabilities..............4
TASK 3............................................................................................................................................8
P3 Analyse the competitiveness in telecommunication sector...................................................8
TASK 4..........................................................................................................................................10
P4 Understanding and interpreting strategic direction..............................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
In the present business scenario, every corporate association is tend to acquire an
effective strategy or policy so as to compete with all environmental factors which has a vast
impact on firm's market position. Business strategy is a long term action plan which is designed
in order accomplish specific goals and objectives. In other words, its a management policy which
strengthen the performance level of entire business organisation. Along with this, business
strategy is a core management function which ensure firm's growth and success at marketplace.
Apart from this, telecommunication sector is rapidly growing but also faces higher market
competition (Ackermann and Audretsch, 2013). Every firm faces these kind of challenges so as
to manage its market position over the world. According to the survey, mobile technology has
generated £3.8bn revenues in 2017; the sector also contributes 5 Billion Euros in UK's economy.
The present assignment is based upon BT group; its a one of the largest telecommunication
company which renders networking and IT services to multinational companies. BT group is
operating in 180 countries by having an aim to connect all people through a single chain of
network. The report enlighten influence of macro environment on business organisation and its
strategies. Readers will also come to know about nature of competitiveness in
telecommunication industry.
TASK 1
P1 Impact of Macro Environment on British Telecom
While formulating any business strategy, firms are required to conduct an external
environmental analysis so as to recognise those factors which affect its market position. In UK,
telecommunication sector has been developed from the early days of telegraphs to modern
broadband and mobile phones networks with internet services. Here, telecom market is largest in
Europe which defined by intense competition in mobile and broadband sectors.
Telecommunication industry of the nation involves several companies in which British Telecom
is a leading networking service provider company which operates in 180 countries. Main
services of the firm are – subscription television, broadband, fixed line services and IT related
services (Annabi and McGann, 2013). The overall revenues of BT are - £24.062 billion whereas
its current operating income is £4.135 billion; there are over 106,400 employees are presently
working it. The prime objective of the company is to provide better quality services to its clients
so as to satisfy their needs and wants in the best possible manner. Due to its global market
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presence, business operations and activities of BT group get affected by several external factors
in positive and negative manner. Below is defined numerous factors which turns out successful
evaluation of firm's business strategy, such as -
Political factors – These factors has a significant role in order to identify those political
factors which can hinder long term success or profitability of BT group in UK. The firm is
operating numerous countries and expose itself to diverse nature of political environment as well
as risks which occurs due to political system. British government has set a framework for
telecommunication industry, it involves fibre access, net neutrality, spectrum, expansion of green
ICT. Another government policy is – the Digital Agenda which confirms high speed network
over the world (Auzair, 2011). Along with this, strategic political relationship between UK and
BT group are strong which helps company to diversify political risks and uncertainties.
Economic factors – It encompasses with saving rates, interest rates, inflation rates,
foreign exchange rates and economic cycle so as to identify actual demand and investment of an
economy. Economic factors like – fierce competition affects defensible advantages of the nation.
On the other hand, globalization has raised up transformation of business economics, now firms
are trying to enter into international arena; this can increases efficient communication and new
products. There is discussed several economic factors BT group should consider, such as –
recognise the type of economic system in operating country, intervention of government in free
telecommunication markets, exchange rates and stability of host country currency etc.
Social factors – Cultural of a society and way of doing things also affects the cultural of
a business association. There are visible social changes influence telecommunication industry
and enhancement in earning capabilities of people due to lifestyle changes. Behaviour and shared
beliefs of population plays a crucial role in understanding customers' preferences and desires to
British telecommunication in the given target market. Accordingly, telecom companies will be
able to produce its marketing strategies so as to grow and diversify themselves in target market
(Azar, 2011). Following are some social factors which must be taken into account: -
demographics and skills level of generation, leisure interest, attitudes (health, consciousness,
environmental), entrepreneurial spirit of society, cultural aspects and so on.
Technological factors – In the era of technology, several industries are trying to expand
their functional areas over the world so as to gain high competitive edge and attain market
growth in a certain time period. There are numerous technological developments are being done
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