Pestle Analysis of British Telecommunication

The assignment involves conducting a pestle (political, economic, social, technological, legal, environmental) analysis of British Telecommunication. The student is required to evaluate how globalization affects the company's provision of products and internet services to customers. Additionally, the student must consider the impact of various factors on the company's profitability, including cultural attitudes, buying behavior, utilization of technology by customers, recent technology adoption, and legal requirements. The report aims to provide a comprehensive understanding of the Pestle analysis of British Telecom in 2018.

Contemporary Business Issues in
a Globalized Environment

INTRODUCTION
British Multinational Telecommunication is the holding company with head offices in
London, UK and was founded in 1949. It was the largest provider of mobile and broadband
services in UK. BT is the holding company and owned subsidiaries of British
Telecommunications. They are operating the business under special government regulation (Adi,
2015). BT is providing services for expanding the business and more profitability. In this report,
explaining the globalization influencing the British telecommunication. Explaining the external
environmental factors affecting the BT businesses in the telecommunication industry.
1 Globalization
Globalization is the integration of national economic through trade, investment,
technology and capital flow. It implies local and national outlooks of interconnected with the
free transfer of capital, goods and services. It drives the government policies for poor countries
and developing their living standards. These government policies are beneficial for multinational
corporations. It is the result of freeing productive and unproductive activities of economics of the
worlds.
It means that liberalized the company their rules and procedures to permit to free flow of
people from country to country. It is a process of interconnected between people, companies and
government. Advance technology of communication and transportation is growing up through
globalization (Baylis, Smith and Owens, 2017). It is a process of economic interaction with
social and cultures aspects. Disagreement and practices of interaction is large part of
globalization. It is the result of increasing trades between nations. For multinational corporations,
for capital benefits.
The impact of globalization on the telecommunication industry such as technology
innovation, speedy information exchanges and developing the advance technology. It has a
positive impact on the industry. It is to huge increasing the information flows, decreasing the
transaction cost for best product and services brands. After the globalization, competition of
global industry with the telecommunication industry. Through globalization, it is helps
interconnection with environment improving the standards of human living. The huge impact on
the markets of the telecom sectors. Through liberalized industry is the overall growth of telecom
industry. Giving the globalization is to develop the international strategies. The impact of the
strategies, companies are entering into the foreign markets, to build the research and
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development department, developed the supply and production facilities. The impact of
strategies is to provide the market positions and developed the existing structures. They are
introduces the products and services to maintain the market positions for gain the capabilities of
resources and businesses.
The impact on British telecommunication company is to helps for developed advance
and giving easy information to the poor countries. The impact on industry is to products system
is complicated and influencing technology control and economic control. By expanding
companies for potential markets through increasing production, more control the industry
direction and decreased the competitive pressures (Horel, Yu and Truitt, Qualcomm 2015).
After globalization it is to more helping for developing products and services related to telecom
sectors. Sometimes, it is too difficult process of increased cost of transaction. It is to helps in
developing new technology and innovation of their services.
Today's world telecom sector is the largest for communicating between people and are
developing and growing internet and mobile phones. Because every people are using the mobiles
phones and internet services. The internet services will be growing in the world and we can e
easily communicate with others. So that the telecom industry is to more efforts on their products
and services for attracting peoples. After globalization, it had a positive impact on the British
telecom. An internet service of telecom industry is a powerful tool for communicating people.
International meetings and conferences are conducting through internet. Through telecom
services, it is easy and simple way top communicating people.
Globalization is a process of change, increasing interconnection with economies and
countries and worldwide communication. After globalization, new technology entering in
markets, it helps developing technology of telecom services of company. Globalization is
ongoing process of connecting cities, countries and people from telecom services (Špaček and
Vacík, 2016). Globalization has a positive impact on the British telecom by developing services,
adopting new technologies, with more productivity, and profitability in their businesses. In
internet services, Facebook and twitter had major impact on people and company as well.
Sometimes it has negative impact on people and companies.
2. Explain the external environment factors
There are various external factors which are influencing the company environment.
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2. External Environment Factors
There are various external factors which are influencing the company’s environment.
Social Factors
This factor includes social cultures, trends, beliefs and attitudes of people who have been
playing roles in the British market. This element impacts on the company such as people using
mobile phones and internet services, therefore it tries to develop their products and services. It is
a positive impact on the company (Lasserre, 2017). However, customers taste and preferences
are always different so that it is negative impact on the company to satisfy of customers’ needs
and wants. This factor includes cultures like gender roles etc. There are different interests of
people for using telecom services like mobile phones and internet services.
The company is developed their products and services provides for attracting peoples
for their company. British telecom is introduced television products, mobile products, sports and
Wi-Fi according to youth. They can provide Wi-Fi services in schools, colleges and
multinational companies for working are to be easy and simple.
Social factors include natures of society, because it is support wide natures for
entrepreneurship, so that it will be positive impact on the company. The company is developing
and growing smarts devices and phones for giving connected mind set of consumers (Yaseen, ,
Dajani and Hasan, 2016). In this element, it is helping skills level of people. They can adopt
products differentiation strategies like BT television, BT mobiles. BT's Wi-Fi etc.
Technological Factors:
This elements are includes developing innovation, adopting new and latest technology,
providing better quality products and services. It is the positive and negative impact on the
company. Faster technology in telecom industry is the positive impact on their development and
growth. Technological factors are affecting the cost structures of the BT products and services,
values chain structures are affecting the telecom sectors. BT global services division will helping
to achieving the economic scale. Through investment, BT is developing and connecting the 5G
services and providing high speed networks.
The negative impact of this factors, to recent technology is adopting by the competitors
of the BT. The technology is impacted on the products offering is also negative impact on the
company. Increasing the technological activity is the positive impact on the company. BT is to
provides high network of internet to the populations. So that they can adopted recent technology
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and innovation on their products and services, is the positive impact on the company. Utilization
of internet facilities by the populations include in technological factors, because now a days,
everyone using smart phones, devices and internet services, so that it is positive impact on
company's profitability and productivity.
The company is focusing on the market for adopting the new technology which is
introduced in the market so that competitors should not being adopted of the new technology. If
the recent technology is adopting by the company in their products and services so that
customers are more attracting and they will buy their products and using the services, it is the
positive impact on the company. Today's world all the services are technology based, so that the
company should be adopting the recent technology in their services (Kirton and Larionova,
2018). More technologies are using in the international conferences, meetings, dealing with
international clients, in colleges for teaching, video calling, messaging for communicating and
connecting with the countries, cities and peoples. BT is adopting the technology in their other
products such as digital television, mobiles phones, smart devices and providing services such as
network, IT, home security services according to customers expectation. They can provides
services for satisfaction of the customers needs and wants so that it is the positive impact on the
company. They are adopting marketing strategies to improve their brand image. So that they are
selling the brand products to customers.
BT is to adopting the recent technology services are providing to customers, it is helping
to satisfied of customers needs and wants and improving the brand reputation in the telecom
sectors in UK. They can more investing on their products and services, more efforts on the 5G
development on their internet speed network. Therefore technological factors are impacting the
positive and negative on the company (Pieterse, 2015). These elements are impact on offering of
the products in the market by company, if any case, changes in technology or coming the new
technology in the market, so that company in the difficult situations and take the decision for
introduced the products in the market. It is negative impact on the company position and
reputation. If the company adopting recent technology so that it is easy to providing services to
the customers. Therefore, technological elements are the positive and negative impact on the
company profitability and productivity.
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Legal Factors:
Legal factors includes laws, rules and regulation related to the telecom sectors.
Government is operating the businesses of the British telecom. There many laws related to
telecom sectors such as consumers protection law, employment law, intellectual property laws
like copyrights, patents, etc. It is necessary adopting and mentioning all the laws in their
company policies. All the laws are positive and negative on the company.
Any of the company has to be legal framework and regulation. Any of the complain
against the company is negative impact on their brand image and reputation (Mang’unyi,
Khabala and Govender, 2018). The company should know about the laws and entering the
markets, so that it is easy to defining the market strategies and conditions. On the legal aspects
that is the important of following the laws as per the customers and employees as well.
If the any employees are complaining against the company and any of issues related to
employees, so that company should be solving the complain and issues according to the
employment law of the company. If the any customers are complaining against the company, so
that company should be solving the issues according the consumer protection law of the
company. The company is to providing the products and services to customers, but in case any of
the accidents and injury of the employees of working in the company, so that company should be
paid for the employees according to health and safety law.
These laws are including the legal elements which are the affecting on the company.
Copyrights and patent law is also adopting by the company. Because all the company having
their own copyrights and patent on their products, so that no body can copied of their products. If
any case, company's copyrights and patents are copied so that there is one law intellectual
property law. The class action laws suits against BT Italian division. These legal aspects
affecting the company. Employment laws is also affecting the telecom industry and increasing
the productivity in the market.
Health and safety law is also affecting the company, consumers protection laws is also
positive impact on company for attracting the customer towards company. E-commerce laws are
adopting by the company (Hsueh, 2016). These are the always positive impact on the company.
E commerce laws are related to the technology adopting in the company. Anti trust laws of the
telecom industry is adopting in overall country. Another laws are consider as discrimination laws
adopted by the industry and BT as well. The should be adopting all the laws in their company for
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employees health, safety, consumer protection, data protection and related to copyrights and
patents of their products.
These all laws are impacting either positive or negative on the company brand image and
reputation. Legal factors are affecting the not only the company but also the industry. All the
businesses of the BT are affecting from the legal elements. The company has to be strict for all
the laws in the company on the behalf of consumers, employees and themselves. The rules by
Ofcom, the separation of the Openreach from the BT. Therefore, all the legal factors are
affecting the BT brand image and reputation in telecom industry (Pestle analysis of British
telecommunication. 2018).
CONCLUSION
In this report, it can be concluded explaining of globalization that how it is to helping the
British telecom for providing products and internet services to the customers. It can be
concluded that social, legal and technological elements are positive and negative impact on the
company. In the social factors includes cultures, attitude and buying behaviour of customers are
affecting the positive impact on company. In the technological factors includes utilization of
technology by the customers and recent technology adopted by the company, is the positive and
negative impact on the company profitability. In the legal factors includes the various laws are
affecting on the company.
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REFERENCES
Books and Journals
Adi, B., 2015. An Evaluation of the Nigerian Telecommunication Industry Competitiveness:
Application of Porter’s Five Forces Model. World, 5(3).
Baylis, J., Smith, S. and Owens, P. eds., 2017. The globalization of world politics: an
introduction to international relations. Oxford University Press.
Horel, G., Yu, J. and Truitt, R.J., Qualcomm Inc, 2015. Data synchronization interface. U.S.
Patent 9,203,923.
Hsueh, R., 2016. State Capitalism, Chinese‐Style: Strategic Value of Sectors, Sectoral
Characteristics, and Globalization. Governance, 29(1), pp.85-102.
Kirton, J. and Larionova, M. eds., 2018. BRICS and Global Governance. Routledge.
Lasserre, P., 2017. Global strategic management. Macmillan International Higher Education.
Mang’unyi, E.E., Khabala, O.T. and Govender, K.K., 2018. Bank customer loyalty and
satisfaction: the influence of virtual e-CRM. African Journal of Economic and
Management Studies, 9(2), pp.250-265.
Pieterse, J.N., 2015. Globalization and culture: Global mélange. Rowman & Littlefield.
Špaček, M. and Vacík, E., 2016. Design of an Innovative Business Model for Mobile Virtual
Network Operators. Quality Innovation Prosperity= Kvalita Inovacia Prosperita, 20(2),
p.69.
Yaseen, S.G., Dajani, D. and Hasan, Y., 2016. The impact of intellectual capital on the
competitive advantage: Applied study in Jordanian telecommunication
companies. Computers in Human Behavior, 62, pp.168-175.
Online
Pestle analysis of British telecommunication. 2018. [Online ]. Available through :
<https://www.swotandpestle.com/british-telecom/>
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