Business Strategy on British Telecommunication Group plc
Added on 2020-12-18
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Business Strategy
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1 ...........................................................................................................................................1Impact and influence of macro environment...............................................................................1TASK 2 ...........................................................................................................................................6Analyse the internal environment and capabilities......................................................................6TASK 3..........................................................................................................................................13Appropriate strategy to improve the competitive edge by using tools in the market ...............13TASK 4 .........................................................................................................................................16Produce strategic management showing clear strategic direction and option to the organization....................................................................................................................................................16CONCLUSION .............................................................................................................................21REFERENCES .............................................................................................................................23
INTRODUCTIONBusiness strategy refers to a strategy of an organization that consists of various actionsand decisions that a business will achieving its objectives in the future. Strategy helps a businessto achieve its goals in an effective and efficient manner. Due to intense competition in themarket, the importance of strategy of the business has increased. Business strategy plays animportant role in overall plan of the business. There are different levels of business strategy suchas corporate level strategy, strategic business unit strategy, functional level strategy etc. (Awan,2016). The Report is based on British Telecommunication Group plc. that was founded in year1969. The company belongs to telecommunication industry. It is a multinational company thatoperates in more than 180 countries. Headquarter of company is located in London, U.K., keyproducts of company are mobile telephony, digital television, information technology services,supply chain management etc. The key peoples of British Telecommunication are Philip Jansen,Jan Du Plessis. There are various subsidiaries of the company like BT Italia, Plusnet etc. TheReport will outline the impact of macro environment through PESTLE analysis and Ans-offgrowth matrix. The Report will also analyse internal environment of the company throughVRIO/VRIN model and SWOT analysis. The Report will also describe models for evaluatingcompetitive edge in the market, strategic management plan by applying various theories andmodels.TASK 1 Impact and influence of macro environment.Business environment consist of different factors and forces that may impact theoperations of the business directly or indirectly. Business environment can be divided in twoparts that is micro and macro environment. Macro environment- It refers to the factors that exist outside the organization andindirectly affects the working of the company. These factors cannot be fully controlled by thebusiness. The impact of macro environment on the operations of the business can be analysethrough different models. They are a follows-PESTLE model- PESTLE analysis is a tool that helps the business to determine theimpact of external factors that exist in business environment that may impact the performance of1
the organization. This model is very useful at the time of entering in a new business or when acompany is launching new product or service in the global market.Political-There are various political factors that may impact the performance and profitability ofthe company. British Telecommunication is having its operations in more than 180 countries.Therefore, the stability in Government of different countries will affect the operations oftelecommunication company because when government changes policies related with wage rateof labour, policy towards business will also change. It may be possible that political factors willimpact all the countries in which British Telecommunication is operating or it may also affect thecompanies that are involved in trade with the company (Eaton, 2015). There are various political factors that must be considered by British Telecommunicationwhile operating in any country. The level of integrity of the political party, there are various lawsthat are enforced by the Government of U.K. Related with business will affect the working of thecompany. For example- contract law that provide the things that company is not allowed to do. IfBritish Telecommunication is operating in such a country in which there is no law for protectingIntellectual property rights then entrepreneurs will hesitate to invest in the company.Economic-Economic factors that are related with the economy of the country in which BritishTelecommunication is operating will also impact the working of the company in different ways.There are various economic factors that can impact the operations of British Telecommunicateare the rate of inflation in the country, exchange rate of foreign currency, development stage ofeconomy and rate of interest etc.The rate of interest in U.K. will impact the level of borrowing and investment by the people. Forexample- If, the rate of interest on the investment is high in the countries where BritishTelecommunication is operating it means different investors will invest in the company as aresult the growth of organization will also improve.Social-There are various social factors that not only affects the operations of BritishTelecommunicate but also impact the marketing of the company. The demographic factors of thepopulation such as age, gender also impact the marketing strategy of the company. The nature ofsociety in which company is operating also affects the level of investment in the company. For2
example- some societies in U.K. promotes spirit of entrepreneurship while some societies do notpromote. British Telecommunication must be aware of the standards related with health that areprevailing in the industry.Technological-There are various technological factors that can impact the operations of BritishTelecommunicate such as continuous innovation in providing services to the customers, accessof the population to information etc. British Telecommunication is using advance technology formeeting out needs of existing and targeted customers. Company is making efforts for restructuring its management of supply chain so that,expectations of the customers from telecommunication company can be satisfied. Technology iscreating pressure on marketing department of company for developing and offering newproducts.Legal-There are various legal factors that may impact the working of BritishTelecommunication. Company operates in different countries therefore, company has to complythe laws related with environment. Laws related with intellectual property, patents are different in different countries and ifBritish Telecommunication is not having these rights it will suffer. Company have to follow lawsrelated with data protection and it should also consider the process of protecting the breach ofdata, company also have to consider the norms related with health and safety of workers etc. Environmental-There are various norms of Government of U.K. related with environment that, BritishTelecommunication need to follow. Government has provided norms for managing waste inurban areas that are to be followed by company for its operations near urban areas.Environmental standards and norms have an impact on the process of innovation in the productsof British Telecommunication. Nowadays, customers are becoming more and more aware regarding the impact ofactivities of company therefore, company have to comply all the legal norms for meetingexpectations of the customers.3
Ans-off's growth model-It is a tool that helps the management, marketing manager and other peoples that areworking in the organization to develop different strategies so that, sales and profitability of thecompany will grow in future.Market penetration- Market penetration refers to the strategy that can be used by BritishTelecommunication for selling its existing products or services in the existing geographicalsegments (Yuliansyah, 2016). For example- British Telecommunication can offer its existingproducts such as broadband services, information technology services to the existing customersof the company in different ways such as by decreasing the prices of products in respect ofcompetitor products. Company should invest more funds in promotion of goods and servicessuch as it can invest in advertisement of telecom services through magazine, social mediaplatforms etc. and supply chain management of British Telecommunication(Pisano, 2015). For successful implementation of market penetration strategy, company can enter intopartnership or joint venture with other top companies. British Telecommunication have tomodify its supply chain management or it can access to different distributors for providingexisting products and services to the customers.Market development- 4Figure1 : Ans-off matrixSource : (Ans off matrix, 2018)
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