Integration of Business Functions

This paper focuses on the business functions of Telstra Corporation, the leading telecommunication organization in Australia. It discusses the organizational background, internal and external environmental analysis, financial analysis, and the contribution of business functions. The challenges of managing business functions and stakeholder analysis are also explored.

Running head: INTEGRATION OF BUSINESS FUNCTIONS
Integration of business functions
Name of the Student
Name of the University
Author Note:

1INTEGRATION OF BUSINESS FUNCTIONS
Table of Contents
Introduction......................................................................................................................................2
Organizational background..............................................................................................................2
Reason behind choosing the organization...................................................................................3
Internal Environmental Analysis SWOT Analysis..........................................................................3
External Environmental Analysis PESTEL Analysis......................................................................4
Porter’s 5 forces framework............................................................................................................6
Financial Analysis...........................................................................................................................7
Business function and their contribution over the years..................................................................7
Challenges of managing business functions outside the business environment............................10
Contribution of the business functions......................................................................................11
Ambiguity of the business functions.........................................................................................11
Stakeholder analysis:.....................................................................................................................12
Expertise of the stakeholders of Telstra.........................................................................................14
Ethical considerations....................................................................................................................14
Conclusion.....................................................................................................................................15
Reference.......................................................................................................................................16
Appendix........................................................................................................................................19

2INTEGRATION OF BUSINESS FUNCTIONS
Introduction
The notable determination of this paper is to focus on the business functions of Telstra
Corporation which is the biggest telecommunication organization in Australia. Established in the
year, this organization provides a wide range of services to their consumers such as the internet
data packages, telecommunication networks, markets voice, television services and products.
This paper will be having numerous segments and each of the section will be contributing to
understand the business functions of this organization (Telstra.com.au. 2019). The organizational
background, the reason behind choosing the organization, internal and external environmental
analysis along with the financial analysis will be presented in the paper. The paper will be
analysing the business functions of this organization and their contribution over the years which
are responsible for the success of this telecommunication organization (Moorhead 2016). The
challenges in managing the business functions will be also discussed in this paper as well along
with the ambiguities of the business functions in terms of the organizational structure, ethical
considerations of the business, stakeholder analysis and the work culture.
Organizational background
This unit of the paper will be discussing the organizational background of Telstra. Telstra
Corporation Limited which is also known as Telstra is the leading telecommunication
organization in Australia. Most of the telecommunication of Australia are managed by this
organization. The organization was included in the public in its initial stages however, the
organization is fully private now having 34000 employees (Muenjohn et al. 2018). The total
equity of this telecommunication organization is around $14.6 billion AUD by the end of the
year 2017 and the total revenue is around $26 billion AUD.

3INTEGRATION OF BUSINESS FUNCTIONS
Reason behind choosing the organization
The reason for choosing this organization for the paper will be discussed briefly in this
part of the paper. The financial report of this telecommunication organizations suggests the
growth of this organization in the last 15 years as compared with the wide range of services
offered by the other rival organizations such as Vodafone and TGP telecom (Molony 2015). This
organization can set an example to all the other telecommunication organizations in terms of
their market reputation and business growth over the years (Seale and Niesche 2017). Thus, it
can be said that the business functions of Telstra can provide a detailed understanding of the
complexities of the telecommunication sector in Australia.
Internal Environmental Analysis SWOT Analysis
Strength
1. The domination market position of the
organization is one of their key strength as
they are useful in increasing the business sales
of the organization in the last 10 years.
2. The investments in the next generation
technologies such as the 5G services are very
much beneficial for the organization as this
practise are attracting more potential
consumers of the organization.
3. The organization maintains a cordial
relationship between all the internal and
external stakeholders of the organization
along with the subsidiary organizations which
is a significant opportunity to deal with the
conflicts within the working environment of
this organization.
Weakness
1. The liquidity position of this organization
is very much limited which is one of the
prime weaknesses of the organization.
2. The market share of the organization is also
very much limited in nature.
3. Management of the cross-cultural conflict
is huge challenge for the managers of this
organization as there are employees from
different cultural background and different
languages.
4. The application of the satellite rights
regarding the use of the telecommunication
services is also a significant weakness of this
organization.
Opportunities
1. The strategies adopted by this organization
such as the reduction of the rates of the data
packets and new television schemes can be a
major opportunity for this organization to
Threats
1. The technological changes which are
required in the working environment of the
organization is a significant threat of Telstra
as the employees have to understood and

4INTEGRATION OF BUSINESS FUNCTIONS
grow in the African and the Asian conditions.
2. This organization introduced VoLTE in the
telecommunication market of Australia, the
introduction of similar services during the
implementation of the 5G services can be
very much beneficial for the organization.
3. The increasing demand of the telecom
service is also a significant advantage for
Telstra.
implement the technologies so that the
efficiency and productivity of the service is
enhanced.
2. The government regulations of Australia
and the national regulations for each of the
subsidiary organizations which are located in
different parts of the world is also a huge
threat for this organization.
3. Increasing competition among the other
telecom services of Australia such as TGP
Telecom and Vodafone is also a significant
threat of Telstra.
Table 1: SWOT ANALYSIS OF TELSTRA
(Source: Created by the author)
External Environmental Analysis PESTEL Analysis
The macro-environmental parameters which have a direct impact on the growth and the
productivity of the organization will be discussed in this unit of the paper. The following table
will be very much useful for the environmental scanning of the organization. This unit of the
paper is very much important for the managers of this organization to deal with the complexities
of the business functions of the organization (Thomas et al. 2016). The impact of the strategy
which is practised in this organization can be also understood with the help of this analysing
technique. The components of PESTLE analysis are Political, Economic, Social, Technological,
Legal and the Environmental. The below table can be very much important to conduct the
external environmental on Telstra.
Components Explanation
Political: The regulatory reforms of Australia have a
significant impact on the growth and
productivity of Telstra. The HFC networks of
Australia are capitalized by this organization
in the last 10 years after the organization is
privatized. The intra-regional capacities of the

5INTEGRATION OF BUSINESS FUNCTIONS
organization is also improved by the political
strategies adopted by this organization. The
intervention of the government official can
have a huge impact on the growth and
productivity of the organization.
Economic: From 2016 onwards this organization faces
severe threat from the Chinese telecom
markets. The volatile exchange rate of
Australia in the last few years can have huge
impact on the business profits of this
organization (Udagepola et al. 2015). The
liberalization of the trade policy is also a very
important economic factor which can be used
by this organization to enhance their existing
profitability.
Social: The experimental products offered by Telstra
are much popular as compared with the
traditional products offered by this
organization. However, it can be said that the
remuneration of the different types of
stakeholders of this organisation can have a
significant impact on the growth and
productivity of the organization. The work
culture and demographics are very much
important to deal with the complexities of the
international market.
Technological factors This business organization uses different type
of technologies to improve the quality of
products used by this organization. Different
types of automated technologies are
increasingly used in the working
environment. The technology incentives also
needed to be managed in the first place in this
organization so that there is more scope of
development especially in the European
conditions.
Environmental factors Climatic and environmental conditions of
each of the subsidiary organization have to be
considered by the central administrative
departments of this organization (McIlroy
2017). The application of the 5G services has
a very negative impact on the migratory birds
due to the frequencies and the wavelengths of
that wireless technology.
Legal factors: There are different types of legal factors
associated with Telstra such as the

6INTEGRATION OF BUSINESS FUNCTIONS
discrimination laws for each of the workers of
this organization. The intellectual property
laws are also increasingly practised in the last
5years. The health and safety norms of
Australia has to be followed in Telstra so that
there are no real security issues regarding the
health of the employees of this organization.
Table 2: PESTEL ANALYSIS OF TELSTRA
(Source: Created by the author)
Porter’s 5 forces framework
This unit of the paper will be discussing Michaels Porter's five forces framework of
Telstra. The components of this framework related to Telstar discussed as followings:
Bargain power of the buyers Telstra faces significant threat from the
consumers which are located in different parts
of the world, however, large base of customer
are formed by Telstra thus the bargaining
power of the buyers have a negligible impact
on the organization.
Bargain power of the suppliers The supply chain of this organization is very
important to deal with the bargaining power
of the dedicated suppliers (McDougal 2017).
The prices of the raw materials are managed
very professionally by the managers of the
organization. The third party manufacturers of
the organization is very much important to
deal with the bargain powers of the suppliers.
Threat of substitute products Service-oriented products are produced by
Telstra which helps in eliminating the threats
coming from the substitute products (Coutts
and Selby 2016). Telstra increased the
switching cost for the consumers to deal with
this substitute product.
Threat of the new entrants New economies of scale are adopted in
Telstra in order to lower the fixed cost per
unit of the products.
Table 3: Porter’s 5 forces framework OF TELSTRA
(Source: Created by the author)

7INTEGRATION OF BUSINESS FUNCTIONS
Financial Analysis
Considering the financial report of Telstra in the last 5 years it can be said that the gross
margin, operational margin, pre-tax margin, and the net profit margin of this organization have
increased considerably. The return on the equity shares of this organization also increased along
with the return on the assets (Burgess et al. 2015). The net return of investment is somehow not
changed considerably in the last 5 years. The financial report of 2018 suggested that the retail
market of this organization is around 26.3 million customers which reflects the perfect financial
management if this organization. The subdued GDP which resulted in the falling the prices of the
commodities in the Australian conditions in the last 5 years had no real impact on the business
sales of this organization (van Rijmenam 2019). The prices of the data packets and other services
offered by this organization had a very little or negligible impact on the organization (Atanasova,
Malinova, and Krushkov 2016). The efficiency of the operational managers can be also
understood using the above-discussed profit margins of Telstra. The norms and protocols which
are followed in the working environment of Telstra are very much important to increase the net
profitability of the business.
Business function and their contribution over the years
Human Resource Management: According to Nankervis et al. (2016), the efficiency
and the commitment of the employees of this organization can be managed using the goal
settings theory. The researcher stated that the incentive schemes and increased motivations
speeches from the organizational leaders can be very much important to deal with the
complexities of business organizations (Witzleb 2017). The researcher stated that the HR
department is the most significant business function of Telstra which has to be managed well so

8INTEGRATION OF BUSINESS FUNCTIONS
that the productivity and the efficiency of the employees of Telstra. The rate of technological
change has to be managed in an efficient way with the help of the floor managers and the
operational heads as stated by the researcher.
Accounts and Finance Operations: As stated by Muenjohn and McMurray (2018),
there are numerous issues associated with the accounts and finance department of most of the
global organization. The researcher of the paper stated there the uncertainties of the financial
reports are needed to be revised by the strategic management team of the organization using the
goal settings theory (Andriof and McIntosh 2017). The paper helps in understanding how
specific goals are needed to be set in the accounts and the financial operations of the global
organization so that the stakeholders associated with the accounts and finance department. The
prime challenge of the tax departments of Telstra is the taxation charges of each countries are
needed to be followed very accurately by the managers of the regionals offices. The cordial
relations are very much important for Telstra as they improved the business reach of this
organization to every corner of the world.
Figure 1: Segment income of Telstra
Source: (Davidson et al. 2017)

9INTEGRATION OF BUSINESS FUNCTIONS
Marketing operations: As discussed by Medcraft (2016), the marketing department of a
global business organization is the most important department in terms of the net profitability of
the business. The researcher stated that the challenges of the marketing department comes mainly
from the substitute products which are easily obtained by the consumers of the business. The
researcher stated that providing innovative designs and quality of products with exclusive social
media marketing techniques in regional languages can be very much important to meet the
mission and the vision of the organization (Faul 2018). Participation of the employees can be
enhanced with the help of the goal setting theory as stated by the researcher. The researcher
stated that the data protection laws are very much important for global organization for
marketing perspective as it helps in protecting the data which are readily circulated in the
working environment across all the offices all around the world.
Recruitment: According to Klettner, Clarke and Boersma (2016), there are lots of
systems and technologies which are used in this organization these systems are needed to be
maintained and managed by professional IT expert. The goal setting theory can be also very
much useful to update the existing recruitment procedure for this organization. Clear and specific
goals are needed to be set by the recruitment team of Telstra so that the new employees are able
to deal with the technologies which are used in the production laboratories (Adams 2015). The
researcher of the paper also stated the role of the organizational leaders as they provide
motivation with each of the employees of the organization (Klettner, Clarke and Boersma 2016).
The researcher also stated that the laws regulating environmental pollution are needed to be
highly focus using the motivational leaders of the organization in order to manage the air and
water pollution. Recycling of the products needs to be practised more in the production room so
that the initial investment of the board are minimised as stated by the researcher. The

10INTEGRATION OF BUSINESS FUNCTIONS
motivational leaders of Telstra are also very much important regarding the maintenance of the
employment law and the consumer protections laws associated with this telecommunication
organization (Medcraft 2016). The researcher stated that the cordial diplomatic relation
maintained by the stakeholder of business organizations has resulted in the growth of the
infrastructure of the business organizations in all parts of the world.
Linkage between these functions
All the above-discussed functions of Telstra are linked with each other. The efficiency of
the HR department of this organization will have a direct impact on the other departments as well
such as the accounts and finance departments as well as the marketing department (McCosker,
2017). The recruitment of the resources can be very much impactful for the growth of other
departments of Telstra.
As discussed by Faul (2018), the growth of these Telstra over the years is due to the
efficiency and productivity of each of the departments of this organization. Considering the
financial statements of the other telecommunication organizations in Australia it can be said that
Telstra has managed to retain the largest provider of the telecommunication services in Australia
(England 2017). The exclusive business strategies adopted by the managers of this organization
has resulted in the business growth of this organization over the years.
Challenges of managing business functions outside the business environment
As mentioned by Davidson et al. (2017), the prime challenges in managing the business
functions of a global organization are keeping updated with the local market conditions and the
demands of the local consumers. Planning and cash flow management is also a source of concern
for global organizations as they have their external stakeholders in every corner of the world

11INTEGRATION OF BUSINESS FUNCTIONS
following different business logic and approach. Skill and decision making of the manager is
also very much important the meet the challenges of the business functions which are outside the
business environment (Leeming 2015). Change management skills of each of the employees of
the global business organization are important to deal with the challenges such as the resource
management, managing the customer loyalty and risk management (Muenjohn and McMurray
2018). The researcher stated that effective training schedules and formal appraisal policies can be
very much important to deal with these challenges.
Contribution of the business functions
The collective effort of the business function has resulted in numerous good quality
products and services such as the pay television packages, market voices (Knapp 2018). The
releasing of the video publishing website known as the WotNext by this telecommunication
organization has resulted in improved transparency in the business transactions as well for the
products and services offered by this organization.
Ambiguity of the business functions
Organizational Structure: The introduction of the business specialists is helping this
organization to attract all the potential consumers of this organization is a significant success for
the organization, however there are few issues in the business functions in terms of the
workplace conflicts, innovative sales and marketing procedures which is adopted by Vodafone,
management of the external stakeholders located outside the continent, updates recruitment
procedure of TGP telecom, motivational issues regarding the implementation of latest IT
technologies like Internet of Things in the production laboratories, Business Intelligence (BI) and
the outage management systems (Nankervis et al. 2016). These issues in the business functions

12INTEGRATION OF BUSINESS FUNCTIONS
of this organization can be understood by the operational managers and the management team of
this organization with the help of this essay.
Work Culture: The work culture of Telstar depends entirely on the satisfaction of the
consumers of this organization (Lamb et al. 2018). The qualities of the products as well as the
human resources are always evaluated by this organization so that a healthy work culture is
maintained in the working environment of Telstra.
Stakeholder analysis:
There are different types of internal and external stakeholders of Telstra which are
described below.
Stakeholders Type Shareholder value
Community External stakeholders The expenditure of the
community-related services is
aligned with the sales of the
organisation with the help of
the Telstra community.
Consumer Internal Stakeholders They are the primary
stakeholders of the
organization and are
responsible for the business
growth of the organization.
Employees Internal Stakeholders The product and service
offered by the organization
depend upon the performance
of this stakeholder.
Government External stakeholders Compliance with the
government protocols can lead
to sustainable development of
the organization and tax
benefits.
Sales and Marketing
department
Internal Stakeholders The consumers of this
organization are attracted with
the help of exclusive strategies
adopted by the sales and
marketing team of Telstra.

13INTEGRATION OF BUSINESS FUNCTIONS
Third parties External stakeholders There are more than 150
subsidiary organizations who
are working for this
organization. The workflow of
this organization in the other
continents are managed by the
third parties of this
organization. They are
managed with the help of
contractual agreements.
Table 4: Stakeholders of TELSTRA
(Source: Created by the author)
Figure 1: Governance framework of Telstra
(Source: Gerrand 2017)

14INTEGRATION OF BUSINESS FUNCTIONS
Expertise of the stakeholders of Telstra
Role Nam es
S o ft- S k ills
M a na gem e nt
T e chnica l a bilitie s
C o m m unica tio n
M e e ting Eff e ctiv e nes s
S y s te m s E x p e r tis e
D a ta cha r t
T e le v io sn pa y
D e v elo pm ent a ppr o a che s
D a ta Ev a lua tio n
Se r v e r k no w le dge
Trading Roles
Employees 0 0 3 1 0 2 2 1 0
Sales and marketting team 0 2 2 1 2 0 1 2 1
Telstra Community Consumers 2 3 3 3 3 3 4 2 1
Operational Manager 4 4 4 4 3 3 4 3 5
Definitions
0 - Need not have know ledge
1 - Should have basic know ledge
2 - Should do w ith support
3 - Should have know ledge & do independently
4 - Should be good in theory and practical and can train
Figure 2: Soft skills and system expertise
(Source: Created by the author)
Ethical considerations
The ethical considerations which are followed in the working environment of Telstra are
as followings:
 Maintaining a governance framework to improve the accountability and transparency of
the business.
 Maintainability of the different stakeholders of the business.
 Insights of the business have to be provided to the highest stakeholders of the business.
 Maintaining of the workforces and the corporate business protocols is a must in this
organization.

15INTEGRATION OF BUSINESS FUNCTIONS
Conclusion
Thus the paper will be very much beneficial for the readers to understand the role of the
managers of this telecommunication organization to understand and manage the complexities of
the business functions. The paper helps in understanding the market position of Telstra and the
market reputation of Telstra with the help of the internal and external environmental analysis.
The trending business functions of this organization can be also determined from the paper
supported by the literature from other researchers. The challenges of managing business
operations outside the business environment can be also determined from the paper. The
contribution of the business functions along with ambiguity of the business functions in terms of
the organizational structure, work culture, stakeholders and ethical considerations can be also
determined from the paper.

16INTEGRATION OF BUSINESS FUNCTIONS
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Appendix
Figure 3: Mind Map Diagram of Telstra
(Source: Created by author)