Essay on Business Strategy - British Telecom

Added on - 21 Jul 2020

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BUSINESS STRATEGY
CONTENTSINTRODUCTION.......................................................................................................................................1TASK – 1....................................................................................................................................................1PESTEL analysis of British telecom........................................................................................................1Ansoff Growth Matrix to analyze British Telecom’s strategic positioning..............................................3TASK – 2....................................................................................................................................................5Strategic capability..................................................................................................................................5British Telecom’s strength and weakness................................................................................................6TASK – 3....................................................................................................................................................7Porter’s five force analysis......................................................................................................................7TASK – 4....................................................................................................................................................8Bowman’s Strategy Clock model and strategic options for British Telecom...........................................8Strategic direction and options..............................................................................................................10CONCLUSION.........................................................................................................................................10REFERENCES..........................................................................................................................................11
INTRODUCTIONThe most dynamic sector of the world economy, incorporating a large number ofoperations is the telecommunication sector. For this type of industry, technology is the heart.Mobile telecommunication sector is growing with a fast pace all across world and in UK, thetrend is same. A survey being carried out by Deloitte discovered that around 53% of peoplefalling in the age group 16 to 75 years are making use of smart phones in United Kingdom.Furthermore, the revenue generated in this industry has also depicted as an increasing trend(Grant, 2005). Many mobile telecommunication companies are operating successfully in themarkets of UK such as Vodafone, British telecom, EE, etc. The presence of these global playershas resulted in fierce competition within telecommunication sector. Because of such level ofcompetition, it is becoming difficult for organizations to sustain a competitive position in themarket as well as to expand internationally.Consequently, the present research report is being undertaken with an aim to analyze theinternal as well as external environment of British Telecom. BT is global telecommunicationcompany which deals in mobile, TV, fiber and fixed primarily in UK and around 180 nations ofthe world. Company was established in the year 1969 and has its headquarters in London, UK.The business of British telecom is regulated by British telecom regulator Ofcom. The firm is alsodiversifying into information technology as well as digital products as there are less regulationsand laws (British telecom, 2018). The main vision of the company is to secure position ofleading mobile telecommunication provided by enriching life of consumers and helping them tohave connection all throughout the globe. But there are numerous factors that act as a hindrancefor successful operations of the business concern. Therefore, the current research report willcritically analyze such factors that influence the strategic decision making of British Telecom. Inaddition to this, the internal capabilities of the firm will be evaluated by applying approaches andmodels. Further various strategic options available for British telecom will be evaluated in laterpart of the report.1
TASK – 1PESTEL analysis of British telecomThe factors being involved in PESTEL analysis influence the operations and decisionmaking power of the business. With this analysis, firm can make plans beforehand and canpenetrate the market. In addition to this, with this framework, business will be in a position totackle all t revolving issues around the society. Therefore, it is quite significant for company toevaluate these factors (Summanen and Pollitt, 2003). Additionally, organization can attain acompetitive advantage, as they will be in a position to gaze knowledge about scope andlimitations of their business. PESTEL analysis of British Telecom is defined underneath:Political– It includes various elements like trade restrictions, political stability, tariff,labor laws as well as environmental laws. Because of the political issues, company facesmany problems and issues. With the alteration of government, laws and legislations alsochange. Due to high rate of inflation, the government of UK pressurizes the company toreduce price. Due to this, different changes have been made in internal and externalenvironment of British Telecom.Economical– Economical factor is quite significant for the firms like British Telecom.Due to rapid development in the state, chances of firm to expand in various parts alsoincrease. Further, they get an opportunity to establish a new unit in the well-developedzones. The gross domestic product of UK is good enough and this shows that people havemore income level. People with high income level are more prone to adapt the latesttechnology related to communication (Akio, 2005). Pertaining to this, the overall profitslevel of the British telecom increases. But due to economic slowdown in Asian andEuropean nations, the firm is compelled to cut their prices and profits. The globaluncertainty forces firm to change their strategies. Additionally, BT has good base ofcustomers and relationships and thus, the management is ready to alter their approachfrom unit pricing to unit based tariffs. Because of this; the organization is in a goodcondition to serve their clients.Social– This factor relates with the cultural values, beliefs, society, beliefs and values ofpeople wherein the firm operates their business. Consequently, it can be well attributedthat it is a quite dynamic domain and thus, to succeed, firms are required to have flexible2
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