BT Group Plc Organizational Strategy Analysis

The assignment involves analyzing the external environment and internal strategic capabilities of BT Group Plc, using the VRIO (Valuable, Rare, Imitable, Organization) model. It requires consideration of various external factors affecting profitability and strategies, as well as an assessment of the company's ability to implement new activities in areas where competitors are offering high-priced products and services.

BUSINESS STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P.1.Critically analysing the macro environment and how it determines BT organisation's
management decision..................................................................................................................3
TASK 2............................................................................................................................................6
P.2. Critically evaluate the strengths and weaknesses of BT organisation's internal
capabilities, structure and skill set..............................................................................................6
VRIO model to determining strategic capabilities that possessed by BT organisation .............6
TASK 3............................................................................................................................................8
P.3. Devising appropriate strategies to improve competitive edge and market position of BT
company......................................................................................................................................8
TASK 4..........................................................................................................................................10
P.4. Producing a strategic management plan that has tangible and tactical strategies and
objectives...................................................................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business strategy is most essential factor for each organisation, so its strategic
professionals need to take into consideration while designing of effective strategy for company.
In the report, the company has to be taken which is,BT group Plc. UK based one of the largest
telecommunication industry in the nation. In addition to this, the report will be discussed about
impact and influences of the macro environment factors that will be considered within it. Beside
from it, the report will be discussed about VRIO model, porter;s five forces model and
Bowman's strategy clock model in order to identification of strategic capability and its
succession as well.
TASK 1
P.1.Critically analysing the macro environment and how it determines BT organisation's
management decision
It is most essential things for each organisation to having macro environmental analysis
within the business environment in order to identifying those elements which is affecting
business functioning externally (Williams, 2014). In case of BT organisation, it is one of the
largest telecommunication company in UK, which is furnishing varied of telecom networking
and IT services in industry. It has been examined that, varied of external environment factors
presented here, which is affecting BT's organisational functionality in industry at broad level
which is as following:
British Telecommunication (BT) is the largest and biggest telecommunication provider in the
UK. British Telecommunication's main activities include networked IT services, local, national
and international telecommunication services. Key aims of British Telecommunication is to
emphasise and improve on the quality aspects and provide good customer service.
PESTLE analysis is important for any company as these can influence marketing and
relationships that a company has worked hard to develop. PESTLE analysis stands for-
 Political Factors, Economic Factors, Social Factors, Technological Factors, Legal
Factors, and Environmental Factors (Spender, 2014).
PESTLE analysis model for BT's environmental analysis:
Political factors that impact BT group Plc :

Political factors of the firm determines that factors which is making impact on BT group
Plc's in a long terms of its profitability in a certain country or market. The business is serving its
existing telecommunication services in a dozen of countries and facing different kinds of
political environment and political system's risks in industry. Regulation issues come up very
frequently to companies. Political factors that impact the telecommunication industry are ways
through which the government gives specific rules and regulations to the telecom industry. These
government laws can put restrictions on phones and the tariffs that the telecommunication
industry can easily produce (Slack, 2015). Every new technology has to follow these
governmental rules. Goods and services made available by the telecommunication industry
should also fit the privacy and safety government regulations. To overcome such issues before
starting any new scheme, strategy or plan the telecom company has to follow the government's
rules.
Economic Factors- Economic factor refers to the macroeconomic situation, world
economic situation and economic status of industries. Economic analyses cover everything from
national-level to industry-sector or market-specific trends. Some very well-known factors which
affects the telecommunication industries are inflation, economic growth and interest rates. As the
population growth increases, the need for telecommunication resources also increase. This can
drive prices (plus revenue) up depending upon location, amount of customers in an area, and the
need for telecommunication services (Scholes, 2015). British Telecommunication has acquired
EE From Deutsche Telecom and Orange in 2015. This acquisition of EE will help British
Telecommunication to improve their cost efficiencies and low churn rate. EE has a strong 4G
mobile network infrastructure which will allow British Telecommunication to invest in a better
future strategic plans for their costumers.
Technological Factors- British Telecommunication has invested in high speed network
and 5G technologies which will help them to maintain a strong technological advantage. BT has
planned to taking consideration of innovative technologies upon its various telecommunication
and IT services which is generating large amount of profitability for the business environment.
Social factors: Varied types of social culture and the way of doing thing also make
impact upon organisational strategy and its performance effectively as well (Quirke, 2017).
Demographics and skills level of nation's population influences upon the organisational

strategies of the company. So it can be said that, numerous types of technological factors are
affecting the external environment and strategies of BT group Plc. Organisation.
Legal factors: Numbers of legal factors are affecting the business functionality in
industry in respective form. It has been seen that, there are numbers of legislative provisions are
presented here in different-different countries (Parnell, 2016). So its professionals need to follow
each of them in order to functioning of their various business functionality in respective form.
Environmental factors: In UK, there are numbers of environmental factors are presented
here which is making impact upon productivity and profitability of the business environment in
respective form. Weather, climate changes, laws regulating environment pollution and recycling,
waste management in telecommunication sector etc. all these environment elements are making
impact upon productivity and profitability of the business and its strategy as well as effective
manner.
Ansoff's growth vector matrix to analyse BT's strategic positioning:
In order to understand strategic positioning of BT organisation, Ansoff's growth vector
matrix is most essential things for them.
Market development: In respect to targeting new markets, it can be said that, BT business
need to focus on targeting new markets in other countries by developing its marketing criteria in
new industry. Its marketing professionals need to target various different types of geographical
markets at home of abroad as well as, by conducting PESTLE analysis and internal analysis to
recognise opportunity and threats in the different markets of several countries. It assists them to
proper market development.
Market penetration: Market strategy formation is most necessary thing for BT
organisation marketing professionals to implement on it to targeting new markets at domestic
and foreign market as well (Moseley III, 2017). Developing new market strategies as per
determining current situation can assist them to processing new marketing approaches to
encourage more people to select BT's IT services as their preferable products and services.
Diversification: This strategy can be more risky for BT organisation, according to this
strategy, its strategic professionals can make efforts to utilising existing expertise for
accomplishing economies of scale, because they make endeavour to trying to sell different types
of IT and telecommunication products and services for different types of customers in market. In

this approach, they can face high level of complexity in terms of serving new products to its
targeted audiences in different markets.
Product development: As per this strategy, BT organisation can offer unique and new
products and services for the same peoples in industry (Marx, 2015). They need to extend its
products nad services for adverse types of variants from its competitors offering into market,
then offering them by displaying them in existing market in order to encourage its customers
towards innovative IT products and services. Customer services and quality is required to be
improved within industry to raise up its customer base in new marketplace.
TASK 2
P.2. Critically evaluate the strengths and weaknesses of BT organisation's internal capabilities,
structure and skill set
Strategic capabilities' means: Strategic capability means, it provides strength to BT
organisation in order to implementing an appropriate strategy in order to complying with tactics
according to deliberate strategies of an organisation. From the analysis, it has stated that, the
process of shaping strategies and putting them into action is the responsibility of a business'
leadership. However, strategic capabilities refer to a business ability to successfully employ
competitive strategies that enables them to sustain and raise its value over time in industry
(Lehmann, 2016). The strategic capability does take into account by its leaders to making focus
on sufficient development in such areas where something effective can be gained by the
company. Strategic capabilities help its employees in context to determining consideration upon
the company's assets, resources and market positioning, project and how effective it will prove
for strategies of the company in the future. In case of telecommunication industry, it is been
necessary for BT organisation in respect to paying attention on its strategic capabilities enter into
new market and also attain new marketplace in attractive form. BT's leader tract the strategic
capabilities not only for gaining sufficient success in their own business, but also better
understand its competitors strategies in market in which they are operating.
VRIO model to determining strategic capabilities that possessed by BT organisation
VRIO analysis is same like PESTLE analysis which assesses macro-environment of the
company. It also assists its business professionals to ascertaining its internal resources is VRIO
analysis.

Value: The first phase of VRIO approach determines that, it needs to add up some
effective values to resources by attaining them to exploit and opportunities or defend against
threats. Organisation needs to consider valuable resources to its products and services to enabling
its organisational capabilities to understand those areas where customer value can be increase
towards firm's products and services in market (Johnson, 2016). Consistently chaining in internal
and external environment of the business, it is necessary for its professional to frequent check out
the added values to its capable resources.
Rare: Those resources which is owned by one of few organisations in industry which is
considered as rare. Valuable and rare resources of BT organisation furnish impermanent grant to
gaining competitive advantage to the firm. The two of more companies have the unlike resources
or utilisation in similar way, which leads competitive parity for all those organisations in
industry. In such a manner, BT organisation can use of its crucial resources to sustaining in
telecommunication competitive industry in respective form.
Costly to Imitate: A resource can be developed in such a way, where some imitate
products are generated by some other companies in industry to building competition in industry
in respective manner. Some organisation can introduce some attractive substitute and duplicate
products of telecommunication and IT services at cheap rate. So it makes incudes the generation
of various products and services in industry in order to gaining competitive advantage in industry
in respective form. So the company has always comparable product and services threats in
industry in order to facing high level of competition.
Organise to capture value: When BT organisation start to capture its value, the resources
of the company is not confer competitive advantage for them, it is needed to be added value
within them to increase its effectiveness (Grant, 2016). The enterprise must need to organise its
management process, policies, corporation structure and culture to be added into its valuable
process.
 BT organisation's strength and weaknesses:
 BT group Plc is the UK based the largest telecommunication and IT services provider
company which is furnishing its services existing services such a Fixed line telephony,
Mobile telephony, Broadband internet and digital television and IT networking services
in industry. So it makes organisation sufficient enough to compete its competitors at
broad level upon entire industry across the world.

 The business is furnishing its valuable telecommunication services at wide level in
different-different countries across the world, so they have great chances to enhance its
market share and customer base at high level by implementing its international marketing
strategies. However, it has large market share in The UK, which makes it capable enough
to expanding its business growth at broad steady (Lawton, 2017).
 The organisation have also major strength which is, it is serving more than 170 countries
at worldwide level so it assists them to gathering high level of profitability by serving
valuable telecommunication and IT services at 4G and 5G scale. At the domestic level, BT organisation is furnishing more than 28 million UK telephones
lines in the nation, which shows high level of customer base of the company in industry.
So it could be said that, the company has wide range of source by which they can
generate high amount of revenue from the UK marketplace.
WEAKNESSES:
BT organisation also have some weaknesses which is, organisation have lack of business
strategies to proper promotions of its various business products and cheap voice calls rate in
market which decrease the rate of its customers.
The business is facing wide range of competition level in industry which enable them to not
making major focus on developing its business criteria instead of taking consideration on facing
competition level in well manner.
The company is also facing general complains from it customer services provided by B, so it
generates lack of positive values towards organisational products and services in industry.
Organisation is broadly dependent on the UK market which create less possibility to expand its
business into other country's market. So it can be reasons to less effectiveness of the firm in
industry.
TASK 3
P.3. Devising appropriate strategies to improve competitive edge and market position of BT
company
It can be said that, there are numbers of issues can facing by BT organisation in order to
sustaining in competitive edge of telecommunication industry of UK. Multiple numbers of IT
and telecom firms are operating in UK market which is generating wide range of competition
level and issues for the company as well. Porter's five force model might be useful approaches

for BT firm in respect to identifying those factors which has potential to increase
competitiveness. BT organisation can develop sustainable competitive advantage for
diversification of its varied of communicational services in industry.
Bargaining power of suppliers:
It can be said that, almost all companies is using diversification communicational
services in industry to purchasing their raw materials and other essential thing for various
existing suppliers in market. Increment in numbers of suppliers can be reasons of falling down
margin of BT group Plc in the market (Giacomin, 2014). So bargaining power of suppliers affect
the business telecommunication and IT facilities by using their negotiation power to pull out
higher prices of telecom services from the business in diversification of communicational
services in industry. It makes effect overall profitability of the business in industry. So its
professionals need to create effective supply chain system and engaged with multiple suppliers in
market which assist them to distributing its various IT and telecommunication facilities in the
market in respective manner.
Bargaining power of buyers:
Buyer are always expecting more to consume product and services of company. In case
of BT organisation, its customer often expecting that, they get the best and attractive offering
from the available by paying the lower price as possible in industry. It generates negative
circumstances for BT group business for long terms. So small level of customer base of company
is the higher amount of bargaining power of customer and high ability to seek attractive offers
and discount offers of the business in market. Company require incrementing within its customer
base a lot which enables firm to minimise the bargaining power of its existing customers and also
will furnish the firm to raising up its profitability and productivity (Coltman, Tallon, Sharma,
and Queiroz, 2015). New product and services should be launched by BT group to its existing
customer which can not tract easily by them and its competitors as well. So it can reduce
bargaining power of its buyers.
Threats of new entrance:
This is one of the most important factor which affect BT business functionality at broad
level. Entrance of new company in telecommunication industry of UK is major threats for BT
company. New entrance come up within the market by introducing new products with
innovation, lower pricing strategies, reducing cost of telecom and IT services, furnishing new

value propositions to its customers in industry in well manner. So it generates wide range threats
for company to facing all these challenges in industry. BT group Plc, need to identify all its
challenges and manage it according to using various strategies to building effective barriers
which can maintain competitive edge of the firm in telecommunication industry in UK in
respective scale (Cavusgil and et.al., 2014). So its professionals require to implementation of
new products and service as per modern requirements and expectation from telecom industry,
which encourage its loyal customers to buy its premium telecom and IT services in market.
Threats of substitutes:
Threats of substitutes also a big scourge for BT group Plc. When new products and
services introduce in the market by reviewing innovative and fresh products for similar
customers needs in different ways so that industry will gain more profitability. Varied types of
technological invention can be seen in telecommunication industry, so BT organisation have
major risk of substitute products which might be launched by its competitors in IT sector. There
are numerous applications has been introduced by varied of companies in market (Chang, 2016).
So BT firm need to keep up their telecom and IT products and services with current innovation
in industry, that will increase the productivity of company. Its professionals need to consider an
approach which is, being services oriented rather than product oriented within the firm.
Rivalry within the market:
Rivalry among the existing player in telecommunication industry in UK, determined that,
it will minimise the profitability and productivity of the company in industry. BT company is
operating its business functionality in very competitive industry, so its professionals need to take
consideration of overall long terms profitability of the organisation in industry by using
competitive advantage approaches within their existing strategies in market. Organisation require
building up a sustainable difference from their existing products to its competitor's services, so
that enables the company to gaining competitive rivalry in market.
TASK 4
P.4. Producing a strategic management plan that has tangible and tactical strategies and
objectives
Bowman's strategy clock model analysis:
With the assistance of Bowman's strategy clock model, BT group Plc. Organisation need
to explore the options for strategic positioning of the business in order to determining the growth

level of the company in industry in respective manner. It assists its marketing professionals to
designing of marketing strategy to assess its competitive positioning in comparison of offering of
its competitors in market. So it will beneficial for the organisation products and services to
making add up some essential values to its competitors in market in order to sustain in the
market in order to gaining sufficient level of growth in industry (Buckley and Ghauri, eds.,
2015). For instance, it has been seen that, its professionals need to determine that, they have to
consider the products positioning to make identification of competitive advantage of the business
in industry. So it can be said that, this approaches can be utilised by BT group Plc. Company in
order to consideration involves in the business in determining in its existing strategies:
Position 1 with low price and low value added:
It has been seen that, there are numbers of issues are being arisen in case of proper
development in such areas where something new approaches can be applied by its business
managers. Product differentiation can be examined that such an issue that can be used in such a
manner in order to understand such section where BT group Plc (Armstrong, Kotler, Harker and
Brennan, 2015). Would perceive their value at low price. So it will assist them to bargain some
essential areas of the business where something new activities can be raised in appropriate form.
It has been seen that. It provides the products at cheap rate.
Position 2 with low price:
The business professionals have to use of strategies of leading low costing of their
telecommunication and IT services in industry which can reduce the works as consideration of
such areas where something new activities can be raised in appropriate form. It has been seen
that, there are numbers of telecommunication services are being furnished by the company in
industry in respective manner. Lower price offering in its various innovative products and
services can increase the customer base of the company in industry. It has been seen that, there
are numbers of issues are being arisen in case of proper generation of such areas where
something new activities must be added within the firm.
Positioning 3 with Hybrid:
According to this approach, it can be seen that, there are numbers of telecommunication
and IT services are provided by the company in industry in relevant manner. The company's
professionals need to offering their services at lower prices for the same product differentiation
so that they will be able to compete their competitors strategic pricing policies within the

industry in respective form. It has been seen that, it can be very effective positioning strategy for
BT group Plc. Organisation in industry in order to building competition for the industry in
respective form. So Hybrid strategy can increase the amount of profitability of the business
professionals within the industry in respective form.
Positioning 4 with differentiation:
There are numerous types of products are offering by its professionals in industry to
serving its various types of services in industry in order to maintain important
telecommunication services in industries in respective manner (Goleman, 2017). Its professionals
need to have product differentiate strategy to making profitability for the business.
Position 5 with focused differentiation:
It has been seen that, its competitors are offering their various types of products and
services at high price level, so that effectiveness can be raised in such a manner where something
new activities can be seen within such areas where something new activities can be
implemented.
CONCLUSION
From the analysis, it can be concluded that, BT group Plc. Organisation need to take
consideration of various types of external environmental factors which is making impact upon
profitability and strategies of the company as well. In addition to it, the report also concludes
about VRIO model that can be used by BT company's professionals to determining strategic
capabilities of the business.

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