(MGT501)Internal and External Stakeholder Analysis

In this report  we will discuss about business environment and below are the summaries point:- Telstra Corporation Limited is Australia's largest telecommunications company with a market share of 48 percent. The report aims to analyze the company's business structure, macro-environmental impact, stakeholder analysis, and how Telstra is performing as an organization. The functional areas of Telstra's business include strategy, marketing, finance, human resources, technology and equipment, and operations. Telstra has adopted a sustainability strategy and the Sustainability Team is responsible for embedding sustainability principles across Telstra. Telstra uses Marketing Mix Modelling (MMM) to assess the effectiveness of marketing investments and respond to changes in customer needs. Telstra follows a competitive financial strategy and publishes an annual report to inform shareholders and stakeholders. Telstra has a functioning human resource team working to provide a gender discrimination-free environment and uses technology and a competent team for day-to-day operations. The macroeconomic environment and its impact on Telstra include inflation, economic growth rate, price level, and gross domestic product (GDP). The COVID-19 pandemic impacted Telstra's dividend price and total income, but the increased use of mobile devices and data connections has increased Telstra's demand during the pandemic, resulting in an increase in GDP. PESTEL analysis can provide a broader idea of how the macro situation of a company can impact it.

Executive Summary
This report is a stakeholder analysis for Telstra Corporation Limited. Throughout the report the
author will be describing business structure, analyse the macroenvironment impact on the company.
This will include an intensive stakeholder analysis along with mapping & matrix. From the report it
will be provided how important stakeholders are for a company, how their influence and interest
affect the business and how Telstra is doing as an organization.
2

Contents
Introduction...........................................................................................................................................4
Aim........................................................................................................................................................4
Functional Areas of The Business..........................................................................................................4
Strategy.............................................................................................................................................5
Marketing..........................................................................................................................................5
Financial.............................................................................................................................................5
Human Resource, Technology and Operation...................................................................................6
Macroeconimic Environment and Impacts............................................................................................6
Internal & External Stakeholders...........................................................................................................7
Major Stakeholders & Their Role...........................................................................................................9
Stakeholder Interest, Impact & Conflict Level.......................................................................................9
Compare Industry with Peer Review...................................................................................................10
Conclusion...........................................................................................................................................11
Reference............................................................................................................................................11
Appendices..........................................................................................................................................13
3

Introduction
With a market share of 48 percent, Telstra is Australia's largest telecommunications company
(Financial Review, 2017). It was founded in 1975. As part of a government programme, it has begun
its journey to become the largest company. Later in 1997, the Australian market was opened to
other competitors. Telstra is now working seamlessly to compete with all the other companies vying
for market share in international-local calls and communication, as well as data services.
A quick idea about how Telstra is doing a business can be identified through a SWOT analysis.
Figure 1: SWOT Analysis
Aim
The purpose of this report is to analyse the research the fundamentals of contemporary business
practises. Create and defend a professional value proposition as a business practitioner.
Functional Areas of The Business
Functional areas of a business define how a business will conduct their day-to-day service; it is the
way a business will have their plan ready to achieve their goals. Strategy, marketing, finance, human
resources, technology and equipment, and operations are the six functional areas of business
4

management. Within larger organizations it is easier to find these functional areas as people work in
various departments. Each department is responsible for the tasks that pertain to its specific area
(Carysforth & Neild, 2006).
Strategy
Any company that wants to compete in the market needs a clear and precise strategy or sets of
strategies. To stand out in the market Telstra has adopted the sustainability strategy. The Telstra
Sustainability Team, which was formed in 2011, is responsible for championing and embedding
sustainability principles across Telstra, managing the risks and opportunities associated with current
and emerging sustainability issues, and collaborating with the business to deliver social and
environmental programmes and outcomes for our customers and communities. The team also
oversees the Responsible Business Strategy's implementation, collaborating closely with the
business to ensure key targets and performance indicators are met.
Marketing
Telstra use MMM (Marketing Mix Modelling) to get better value from their customers. This is an
age-old modelling mix. MMM employs advanced econometrics and marketing science to rationally
assess the relative effectiveness of a comprehensive set of marketing and advertising investments,
competitive steal, or initiatives designed to generate sales and growth in the short and long term
(Pandey et al., 2021).
Tesltra along with Accenture developed a customized modelling to their marketing sector. Telstra's
marketing team can use MMM to plan, track, and optimise marketing investments based on data. It
allows for rapid responses to changes in customer needs, market conditions, and/or competitor
behaviour. MMM assists the Telstra team in understanding the impact of marketing factors as well
as factors unrelated to marketing activity in driving revenue. Furthermore, MMM delivers campaign-
level, multichannel results, and insights faster than ever before.
Financial
An organization's financial strategy is primarily concerned with the acquisition and utilisation of
funds. The primary goal is to ensure an adequate and consistent supply of funds to meet the
business's current and future needs. Financial strategy addresses issues such as financial resources,
cost structure analysis, profit potential estimation, accounting functions, and so on (Urmila, n.d.).
Telstra follows a competitive strategy to keep its cost at minimum and provide the service at best
value. Every financial year Telstra publishes a report to inform its shareholders and stakeholders
how the company is doing financially and describe their goals for next year.
5

Human Resource, Technology and Operation
Tesltra has a functioning human resource team working seamlessly to provide gender discrimination
free environment. Uses the best of its technology and day-to-day operations are done by a
competent team of individuals.
Macroeconimic Environment and Impacts
Macroeconomics is an integral part of business environment. It consists of four factors
(Bénassy, 2011).
1. Inflation
2. Economic Growth Rate
3. Price Level
4. Gross Domestic Product (GDP)
Telstra needed to make some changes to its business goals and vision in order to be
sustainable during covid 19. Telstra's dividend price was expected to fall at the start of the
pandemic. According to USB analysts, the company will be forced to reduce dividend
payments. Swiss Investment Bank stated that the company will reduce its dividend price from
16 cents to 14 cents in order to meet the FY21 target (Shane Walton, 2020). Telstra paid
dividends of 8 cents per share that year. Because mobile communication has revolutionised
our business and personal lives, the telecommunications sector has had a significant impact
on our economic growth. The increased use of mobile devices and data connections has
increased Telstra's demand during the pandemic, resulting in an increase in GDP (John Small &
Alex Robson, 2014). This pandemic has taught us that working or studying from home
necessitates a strong network connection, resulting in increased use of mobile data and nbn
connections. Telstra is determined to capitalise on it. Their total income is expected to fall by
11.6 percent by 2020 (Telstra, 2021). Telstra is offering to extend their leadership in
providing 5G networks to customers in FY22, as well as work on the NBN headwind.
One strategical way to identify how macroenvironment is impacting Telstra can be identified
by PESTEL analysis. It gives a broader idea of how macro situation of a company (Institute of
Leadership & Management, 2020).
6

Table 1: PESTLE Analysis
Political
a. Government Rules,
Regulation &
Bureaucracy
b. Taxation
c. International
Relation
d. Political Stability
Economical
a. Demand & Supply
b. Inflation
c. Interest rate
d. Exchange rate
e. Labour cost
Social
a. Demographic & Skill
b. Culture
c. Education
d. Attitude
e. Hobbies
Technological
a. Technology applied
by competitor.
b. Product Offering
c. Cost Structure
d. Value Chain
Structure
Environment
a. Weather
b. Climate change
c. Waste management
d. Ecological Offerings
Legal
a. Anti-trust law
b. Consumer Law
c. Employment Law
d. Health & Safety Law
e. Confidentiality &
Data Protection
Internal & External Stakeholders
Stakeholders are people or factors who have an interest in the operations of the organisation. These
individuals both influence and are influenced by organisational choices. Stakeholders should be
pleased at this moment in order to establish a better image and achieve significant growth. It is also
necessary to assess and verify the demands and expectations on a regular basis in order to meet
them. Each stakeholder possesses a certain level of power, influence and gain interest from a
company. They are a significant reason why the organisation is able to establish a strong market
image and make larger income. Not only that, but organisations must act ethically by delivering
value and respect to each stakeholder based on their stake. Honesty, teamwork, loyalty,
compassion, and professionalism are fundamental principles of value. In comparison, ethics are
certain fundamental principles that must be followed when running a business. It involves regard for
ethics, openness, and justice (Pedrini & Ferri, 2019).
Tesltra has both internal and external stakeholders impacting their business directly and indirectly.
We will be identifying them for Telstra through a stakeholder map. Stakeholder mapping is the visual
technique of depicting all the stakeholders of a product, project, or concept on a single map. The
7

fundamental advantage of a stakeholder map is that it provides a visual depiction of all the people
who can have an impact on your project and how they are related (Bajaj, 2017).
Figure 2: Stakeholder Mapping
Internal stakeholders are regarded as a company's core stakeholders. They oversee making business
decisions, investing, and carrying out day-to-day operations. They are also directly impacted by
corporate developments (Chebbi et al., 2020).
Telstra's Board of Directors is responsible for the company's strategies and plans. They oversee
transactional planning, governance, the recruitment of CEOs and managers, as well as financial and
risk management. Andrew Penn, the CEO, is more accountable to the goals. He is in charge of
carrying out the business in accordance with the vision of the BOD. Project managers are in charge
of carrying out certain projects. Joy Marrocco has just joined Telstra as Application Support and
Improvement Principal- People and Workplace Services. Her goal is to deliver excellent customer
service. The service outlets and helpcenters are Telstras’ way of reaching the customers. These
centers provide service, sale products, gather feedback and pass the information to the company.
Later the company’s R&D department analyses everything and provides information and advice to
the higher management or supervisors.
External Stakeholders are individuals or organisations who are impacted indirectly by a corporation.
They have an impact on the firm, their business practises, and their earnings (Ninan et al., 2019).
Customers that purchase Telstra services help to keep the company solvent. MVNO Providers are
businesses that use Tesltra's network services. Shareholders have a significant role in Telstra's ups
8
Planning, Execution, Reward, Support
Feedback, Demand, Revenue, Regulations

and downs. Telstra shares are owned by eleven significant corporations. Gabelli Funds LLC holds the
most, having a 0.01 percent position in the firm (CNN Business, 2022).
Major Stakeholders & Their Role
Stakeholders have their fair share of influence in Telstra and vice versa. They effect the business
directly on various levels. Telstra is determined to focus on their stakeholders as they know this will
affect their way of conducting business. Government & Society has big influence as legal compliance
and risk-management activities are two ways that business stakeholders impact your company.
Municipal, county, state, and federal governments are distinct sorts of stakeholders in a firm than
consumers, workers, and suppliers since they have the power to shut Telstra down. Customers must
be satisfied, and long-term connections must be established to construct a long-term, profitable
business. For example, during covid-19 Telstra offered unlimited data for their customers and small
business. They slightly increased their pricing as well to benefit from the pandemic demand. The
industry is rapidly rising as well, Telstra is continuously working to keep pace with the growing
competition.
Stakeholder Interest, Impact & Conflict Level
The major stakeholders of Telstra are government, customers, industry, and investors. They have a
high influence in the company. Telstra by giving more focus on the shareholders has lost some of the
major interest of its main stakeholders (Chron, 2020).
Telstra was focused to establish new services. Telstra submitted permission applications to
Melbourne City Council in 2018 for the exhibition of promotional signs on about 30 new payphones
across Melbourne (MCC). After originally allowing these applications, MCC then declined further
applications and questioned the legitimacy of the original 30, claiming that participating in third-
party advertising was a violation of Telstra's legal authority to instal new payphones without a
permission. This also brought negative marketing for the company. They worked with Michaelson
Alexander to bring a strategical solution to this (Alexander, 2020). It helped make strong
communication among the stakeholders. Specially with the investors and customers. This helped to
compete other companies, stay strong in the industry, and provide service towards the customers
keeping the government rules intact. Cooperation with stakeholders is also necessary for successful
and efficient growth. It is proven, companies can only function with the help and collaboration of
various stakeholders.
Below is a stakeholder matrix to show better the influence of major stakeholders for Telstra.
9

Table 2: Stakeholder Matrix
Stakeholde
rs
Power/
Influence
H/M/L
Interest
H/M/L
Stakeholder’s
Influence
Stakeholder’s
Interest
Conflict
Governmen
t
H M a. Taxation
b. Regulations
c. Socio-
economic
Wellbeing
a. Compa
ny
Success
b. Country
econom
ic
progres
s
a. Company’s
way of
conducting
business
b. Community
Preference
and
Acceptance
Customers H H a. Demand &
Supply
b. Pricing
a. Service a. Better
service &
Pricing
from
competitor
Industry M L a. Competition
b. Innovation
a. Busines
s
Structur
e
b. New
Product
Offering
s
a. Lack of
innovation
Investors H H a. Company’s
way of
business
b. More
revenue
a. Revenu
e
b. New
projects
c. New
earning
s
a. Differentia
tion of
company’s
objective
Compare Industry with Peer Review
Telstra's primary stakeholders include the government, customers, industry, and investors. The
government is the first and most powerful stakeholder since it directly influences organisational
activities. Telstra is also compelled to observe government laws and regulations in order to stay in
business. It will not be able to survive in the market if it disregards any of the government's laws.
Every retailing and non-retailing firm is obliged to successfully implement government policies to
carry out its operations. Customers, on the other hand, have an impact on decision-making because
they are the primary reason for the company's growth in the market. Telstra has also launched
several innovative initiatives to meet the demands of its customers. It has provided unlimited data to
10

customers since customers increasingly choose to work and communicate online during covid-19. It
has been proven fruitful to keep the stakeholders satisfied as it helps company grow.
Comparing to Telstra, LBP (Landbank of the Philippines) has a different structure. Being a financial
institute, it deals mainly with client’s investment and savings. By providing effective schemes it keeps
its external stakeholders like small farmers and fishers (SFFs), Micro, Small and Medium
Enterprises (MSMEs), Countryside Financial Institutions (CFIs), The Local Government
Units (LGUs), The National Government Agencies (NGAs) satisfied. Government has a
similar effect on both companies. Without government influence and proper regulations none
of the companies can conduct business. One more thing that effects LBP is international
inflation and rate change.
Conclusion
Based on the discussion so far, it can be concluded that stakeholders are an important element of
the organisation and contribute to its success in a variety of ways. However, the primary areas on
which organisations must focus are environmental protection, customer satisfaction through the
delivery of quality goods and services, beneficial relationships with suppliers, and compliance with
government norms and regulations. Stakeholders also have a big impact on the decision-making
process since it is necessary to keep the various stakeholder groups in mind when developing any
new measure or modification. Woolworths has also implemented several innovations and
modifications in this area to satisfy the happiness of diverse stakeholders.
Telstra has also demonstrated a clear understanding of the various stakeholder needs by taking
them into account. Telstra is able to expand in Australia because of this. It is capable of creating an
image in the minds of customers by giving high-quality services and products through innovation.
Cooperation with communities is also necessary for successful and efficient growth. As a result,
stakeholders play an important role in determining the organization's plans and policies. At the same
time, it is necessary to adhere to ethical considerations in business in order to ensure the smooth
running of various commercial processes, which Telstra provide by their sustainability method.
Reference
Alexander, M. (2020). Taking Telstra from crisis to coalition - Michelson Alexander.
https://michelsonalexander.com.au/2020/11/25/taking-telstra-from-crisis-to-coalition/
11

Bajaj, S. (2017). In support of the circular economy: An exercise in stakeholder mapping. Materiaux et
Techniques, 105(5–6). https://doi.org/10.1051/mattech/2018018
Bénassy, J. P. (2011). Macroeconomic Theory. In Macroeconomic Theory.
https://doi.org/10.1093/acprof:osobl/9780195387711.001.0001
Carysforth, C., & Neild, M. (2006). The main functional areas within business organisations. Business, 1.
Chebbi, H., Yahiaoui, D., Sellami, M., Papasolomou, I., & Melanthiou, Y. (2020). Focusing on internal
stakeholders to enable the implementation of organizational change towards corporate
entrepreneurship: A case study from France. Journal of Business Research, 119.
https://doi.org/10.1016/j.jbusres.2019.06.003
Chron. (2020). What Is a Corporate Social Audit? https://smallbusiness.chron.com/corporate-social-audit-
20345.html
CNN Business. (2022). TLSYY - Telstra Corporation Ltd Shareholders - CNNMoney.com.
https://money.cnn.com/quote/shareholders/shareholders.html?symb=TLSYY&subView=institutional
Financial Review. (2017). Telstra share price: Telstra leaves Optus, Vodafone in its wake.
https://www.afr.com/chanticleer/telstra-leaves-optus-vodafone-in-its-wake-20220217-p59x8n
Institute of Leadership & Manageme. (2020). PESTLE analysis. In Marketing for Managers.
https://doi.org/10.4324/9780080914947-15
John Small, & Alex Robson. (2014). Economic Drivers and Contribution of Mobile Communication in
Australia. https://exchange.telstra.com.au/wp-content/uploads/2014/02/Mobiles-Report-for-
Telstra-FINAL.pdf
Ninan, J., Mahalingam, A., & Clegg, S. (2019). External Stakeholder Management Strategies and Resources
in Megaprojects: An Organizational Power Perspective. Project Management Journal, 50(6).
https://doi.org/10.1177/8756972819847045
Pandey, S., Gupta, S., & Chhajed, S. (2021). Marketing Mix Modeling (MMM)-Concepts and Model
Interpretation. International Journal of Engineering Research & Technology (IJERT), 10(06).
Pedrini, M., & Ferri, L. M. (2019). Stakeholder management: a systematic literature review. In Corporate
Governance (Bingley) (Vol. 19, Issue 1). https://doi.org/10.1108/CG-08-2017-0172
Shane Walton. (2020). Telstra share price: is the dividend at risk? | IG AU. https://www.ig.com/au/news-
and-trade-ideas/is-telstra_s-dividend-at-risk--200402
12

Telstra. (2021). Telstra Annual Report 2021.
Urmila, k. (n.d.). Financial Strategy: Meaning, Components, Elements, Types, Functions, Issues. Retrieved
April 21, 2022, from https://www.businessmanagementideas.com/strategic-management/financial-
strategy/21040
Appendices
13

14

15

16

17

18

19

20

21