Telstra's Stakeholder Success Strategy

The assignment recommends that Telstra maintains its market share by continuously improving services to customers, eliminating competition barriers and ensuring employees maintain and monitor services that align with the organization's values. Additionally, there is scope for improvement which can assist the company in achieving market capitalization.

Running Head: Telstra Case Study Report
Business & Society Team Case Study Report

Telstra Case Study Report 1
Contents
Introduction.................................................................................................................................................1
Mission and Vision of Telstra Corporation Ltd...........................................................................................2
Purpose of Telstra Ltd.............................................................................................................................2
Value of Telstra Corporation Ltd.............................................................................................................3
Value creation for stakeholders...............................................................................................................4
Internal Stakeholder.............................................................................................................................4
External Stakeholders..........................................................................................................................4
Business Model...........................................................................................................................................5
Opportunity to Telstra with adoption of NBN.........................................................................................5
PESTLE Analysis of Telstra Corporation................................................................................................6
Ethics and Sustainability of NBN............................................................................................................7
Key Stakeholders.........................................................................................................................................7
Identification of stakeholders..................................................................................................................8
Stakeholder Management Theory............................................................................................................8
Creating shared values for organization and stakeholders.......................................................................9
Stakeholder 1...........................................................................................................................................9
Stakeholder 2.........................................................................................................................................10
Stakeholder 3.........................................................................................................................................11
Conclusion and Recommendation.............................................................................................................11
References.................................................................................................................................................13

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Introduction
Information technology refers to the application which is designed to provide use of electronic
devices to the customers. This industry has led to major change in various industries of the
world, also with the aid of information technology, most of the businesses effectively
communicate internally as well as externally. The information technology industry provides
computer networks and applications with the help of which, companies efficiently use the
technological resources to generate greater output for the company. the IT industry has led to
change the regular business work of the organizations, like earlier there used to be manual
recording of transactions and receipt, and now the process has shifted to electronic recording of
all transactions. Also, the process has led to transparency in the organization culture.
The Company Telstra is an Australian which is involved in providing telecommunication and
media services to its customers worldwide. Basically, the company creates and operates
telecommunication networks and other mobile internet services which assist the people in
managing their information technology activities. The company is Australia's one of the largest
companies providing telecommunication services to people (Telstra 2017).
Talking about the market position of the company, Telstra was originated in the year 1975 as a
government department. After that, the company went into privatization to provide better
customer support services. In early 1990's the company was deregulated still somehow they
managed to survive are the largest telecom service, provider. The HBR (Harvard Business
Review) stated in its article that the company is earning the market capitalization by strategically
providing low-cost services to customers on same routes at different times. In the current year

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2017 the company's market holding 41.4 percent despite having tough competition (Reichert
2017).
The report further holds an overview of the company Telstra. It evaluates the market position of
the company in the eyes of stakeholder, its vision and mission and opportunities and business
model which has helped the company to grow in the Australian market.
Mission and Vision of Telstra Corporation Ltd
As discussed earlier the fact is known that the telecom industry is experience speedy growth and
the network traffic along with digital communication is also growing in the changing world. The
purpose of the Telstra Ltd. is to creatively create a connection for everyone. The company aims
to connect everything to every person and make a better future. They aim to change the economy
by changing the methods of communication and making it more efficient for use (Telstra 2017).
Purpose of Telstra Ltd
The detailed view of company's purpose to exist in the global world is discussed below:
 Telstra believes that it is their responsibility to create better applications for future
assistance, an application which connects future aptly. Future connectivity cannot be
created on own thus; the company feels it as their responsibility to bring all the parts
together which helps them to create a better future connectivity (Ali 2014).
 The aspiration of Telstra telecom is to build a system for every person who shall connect
them with all the achievable products and services which are required by them. Also, they
aim to provide connectivity at all the workplaces and business to work efficiently and
create better market conditions to survive in. the assistance of telecom connectivity in the

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business context will help them to create an efficient workplace management which will
initiate productivity in the organization and lead them to provide better services n the
external world. Resulting to which ultimately the customers will generate greater
satisfaction which is the core objective of the company (Telstra 2017).
 The company services are not limited to a particular group of business or people, instead,
the aim of the company is to spread its services worldwide so that change process is not
laid to a particular area, instead all people shall make use of these transformational
benefits so that cultural, economic and social change is adopted.
Value of Telstra Corporation Ltd
Along with a set of purpose the company initiated set of values to express its customers that what
they stand for and to guide them to the way with which they do things. The values of the
company are in alignment with the activities of the business. Further, the values are described
below in detail:
 Show that they care,
 Find courage (Muzellec, Ronteau, and Lambkin 2015),
 Trust the delivery of output of each other,
 Work together for better motive;
 Initiate simplicity in complexity.
Along with which the company acts as a team while working on such activities. The team
initiates to fulfill the purpose of the organization (Telstra 2017). Being a value based
organization; the team must have the following spirits in them:
 Willingness to take responsibility

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 Humility
 Courage to challenge working of our own and other values which were desired but not
met;
 Determination to work effectively and
 The desire to learn
Thus, with the following above statements, it shall be known that the company focuses on the
fulfillment of their core values and purposes so that organizational objective is attained (EY
2013).
Value creation for stakeholders
The company efficiently tries to fulfill the expectations of their both external and internal
stakeholders. They have created their values to assist the internal stakeholders so that they can
provide and receive benefits provided by the company. Further values of the company with
respect to values of Telstra with respect to their stakeholder are discussed below:
Internal Stakeholder: the internal stakeholders of the company involve the employees of the
organization. The company has created value for them in such a way that the management helps
them to express their views about their job and the environment. Yabber is the internal site of
Telstra which provides an opportunity to the employees to talk about their challenges, triumph
etc. (McIntyre 2013).
External Stakeholders: the external members of the organization include customers, community,
government etc. To these members, the company has planned values so that they can
communicate to them properly. Also, the system provides a transparency which provides trust of
stakeholders on the company.

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Business Model
A business model is a program which helps the organization to create and capture the values
from the business activities implemented. The model in an organization is defined by looking at
all the aspect which can affect a business. The model represents the core aspects of the business
which also includes the purpose, target customers, management and manufacturing process etc.
(Sebhatu, Gebaur, and Enquist 2014).
The business process used by the Telstra Company is NBN (National Broadband Network)
business model. The network is Australia's largest telecommunication infrastructure project. It
helps the organization to diversify their business activity and also it gives assistance to the
company is delivering the services at every end of the company (Telstra 2017).
Opportunity to Telstra with adoption of NBN
There are numerous benefits which the company receives with an adoption of NBN services in
the business. The opportunities which the company enjoys are discussed below:
 The project of the Telstra is to multiply their locations to access the applications and
software of the organization. The model helps the organization to initiate speedy changes
and meet the crucial deadline.
 Video conferencing is one of the sources with the aid of which organizations handle
meetings and training worldwide without geographical boundaries barrier. Thus this
model helps them to share their views more often, also circulate their feedbacks without
distorted image or voice streaming. It is a better way to communicate (NBNCO 2017).
 Downloading and uploading speed matters a lot while working online. But apart from
that the size of with which the file is going to upload also matters. Like, if a small file is

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also taking many Mbs to upload then also it is an issue for the organization. Thus, this
model helps the organization to do certain online activities without excessive data
consumption (Budde 2015).
 Now a day customers have become very fussy and do not believe in waiting to see any
content online. The rich content involves photos and video which takes time to slowly
upload on the website, till the customer feels restless. Thus, the model helps the company
to generate greater satisfaction among customers by providing quick and efficient
services.
 The speeds available over NBN is the fastest speed in networking process, thus this
process assists the work from home feature and enable people to provide quality work
(Telstra 2017).
 Thinking of future, Telstra's current connection and speed are good right now. But
looking at the future scenario, as the company will acquire more employees and more
customers; resulting to which demand for the product and services will also increase, thus
the company needs a connection will help in hinder.
PESTLE Analysis of Telstra Corporation
P- Political factors that affect the macro environmental analysis of the company is that there is
stability in the external environment. Also, there is pricing regulation prevailing in the country,
adding to which the anti-trust laws negatively affect the state of the company. Favored trading
partners assist the growth of the company in the external market (Fernandez-Feijoo, Romero, and
Ruiz 2014).

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E- Economic factors which affect are government intervention, exchange rates, labor cost, type
of economic system of the country etc. these are some of the factors which both positively and
negatively affect the state of the company.
S- Social factors such as demographics, culture, class of people, leisure interest, entrepreneurial
spirits etc. are the factors which affect the growth of the company.
T- Technological factors involved in the external environment of the organization are
developments, cost structure, value chain, the rate of product offers etc. These factors directly
impact the internal activities of the organization (Engstrand, and Sjödin 2015).
Ethics and Sustainability of NBN
The model opted by the company adequately fulfill the requirement of internal and external
members of the organization and also implies transparency with the organizational culture. Thus
it shall be noted that yes the business model which is used by the company is ethical as well
sustainable. The model of the company reflects that the company is constantly aiming to provide
future connectivity to the whole world not just a class of people.
Talking about sustainability, the model provides a positive environment in the organization
which results in building more capabilities for the organization. The FY14-15 focuses on
embedding sustainability and monitoring compliances of the organization (Telstra 2017).
Key Stakeholders
Stakeholder refers to a person who is connected to the company by any means whether external
or internal. A stakeholder may also be a person who does hold shares of the company but is

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interested in buying or any person who is involved in the financial transaction of the company.
Further, the difference between stakeholder and shareholder is discussed below:
 A shareholder is the stakeholder of the organization but a stakeholder may or may not be
the shareholder of the organization. Stakeholder includes shareholders, customers,
competitors, employees, suppliers, and government. On the other hand, shareholder
includes equity or preference shareholder (Parida, and Rönnberg Sjödin, 2017).
 A shareholder is a person who has purchased the shares of the organization by investing
into the company. On the other hand, stakeholders are the people who are directly or
indirectly affected with the activities of the organization.
 Shareholders are the owners and stakeholders are the interested party of the organization.
 A shareholder can be a part of a company limited by shares only whereas stakeholder is
the part of every organization (Keydifference 2017).
Identification of stakeholders
Stakeholders are the most important part of the organization. In order to first identify the
stakeholders, the company needs to analyze the meaning stakeholders which is discussed above.
The stakeholder of project in an organization can be analyzed as a person who is affected by the
activities of the organization or has an influence on the activities of the organization (Delimiter
2010).
Stakeholder Management Theory
The stakeholder theory is used to manage the interest of the customers in a particular project of
the organization. The theory refers to an organizational management theory which states that the
organization shall take care of the interest of all the stakeholders prevailing in the organization.

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There are many approaches defined under which theory which describes the way to manage the
interest of stakeholders. The company shall adequately plan and implement the approach which
shall satisfy their interest (Porter, & Kramer 2011). The theory also assists the corporate social
responsibility and states that the company shall ethically support the interest of stakeholder and
do not perform any activity which defrauds them (Teh, and Corbitt 2015).
Creating shared values for organization and stakeholders
The shared value in an organization helps the company to align the interest of stakeholders with
the profit making company. The company aims to fulfill the corporate social responsibility of the
organization which assists them to accomplish the stakeholders' interest as well. Thus, resulting
to which the profits of the company is also maximized. So in this way, the interest to of the
company is aligned with the interest of stakeholder. This process is called shared value through
which the company Telstra manages to align the interest of stakeholders and fulfill the
organizational objective a well (Cestino, and Matthews 2015).
Stakeholder 1
The company Telstra has shareholders who have the stake in the well-functioning of the
company. They are the people who have purchased the shares of the company by investing in the
capital of the company. The major reason for which they are related to the company is that they
are the owners of the company who have invested in the company. They have a risk aligned
with, thus they constantly feel that the company shall grow so that better return can be availed by
them. The company is liable to pay dividends to the shareholders of the company. The growth of
the company is directly aligned with the interest of the shareholders (Tantalo, and Priem 2016).

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In order to provide values to the shareholders of the organization, the company Telstra shall do
its business activities in such a way that they provide an adequate dividend to the shareholders of
the company. Also, the fact shall be considered that the shareholders should get the optimum
dividend and other benefits in the ratio of their shares purchased. Also, they shall not be
restricted to access their rights like voting etc. in the organizational decision. Also, the
organization shall not only think of their own profit instead they shall work to provide benefits to
the whole community of shareholders. Their private data shall also be kept safe and secured
(Teti, Perrini, and Tirapelle 2014).
Stakeholder 2
The regional customers of the company Telstra include community and local customers. These
are those stakeholders of the organization who are local buyers of the organization. They usually
purchase products from the local market present in the geographical boundaries of the country.
Telstra being a wide area network service provider has many network users around the country;
thus it shall be noted that most of the first customers of the company are localities of Australia
only (Fernandez-Feijoo, Romero, and Ruiz 2014).
The value can be shared with the regional customers of the company in such a way that the
company shall aim to provide assistance to these customers. They shall aim to stand on their
values and purposes defined for the activities of the company. Along with which in order to gain
shared values, the company must try to provide maximum satisfaction to customers. This will
provide better services to the customers and the feedbacks will initiate efficiency in productivity
of the organization (Porter, & Kramer 2011).

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Stakeholder 3
Other stakeholders of the company include government, suppliers, and regulars of the
organization. These are those people who are not the shareholders of the organization but are
directly or indirectly connected with the working of the organization. Suppliers are the people
who supply raw material or spare parts to the organization. With the aid of such part, only the
company becomes able to drive final products. The government decisions affect the growth of
the company, also Telstra being the biggest company in Australia, change in the activities of the
working of the organization highly affect other businesses and communities of the organization.
Thus the government is also connected with the company in term of corporate social
responsibility and tax paying system. Regulators are those bodies present in the
telecommunication industry who regulate the market fluctuations. Change in the market and its
ups and downs are managed by them only. Telstra being one of the largest companies somehow
regulates different activities prevailing in the market. Also, the decision taken by regulators need
to be follow by the company as well (Pang, Lee, and DeLone 2014).
Value shares which these stakeholders is in such a way that the company shall continuously aim
to maintain the corporate social responsibility. With compliance of CSR these people will
generate greater satisfaction out of the services and ultimately the sale will increase (Porter, &
Kramer 2011). Thus, it will become a win-win situation for both the parties i.e. stakeholders and
the company Telstra Ltd.
Conclusion
In the limelight of above events, the fact that shall be noted is that the company Telstra is
Australia's one of the largest companies in the world. The company regularly aims to provide

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best networking services around the world. The company uses NBN nosiness model to
implement its business activities is the company. The further company constantly aims to
maximize the satisfaction level of customers by providing fast growing telecommunication
services. The mission and visions statements of the company state that Telstra wants to create
future connectivity by providing telecom service all around the world. Thus, the fact shall be
noted that the company is one of the companies existing in Australia's telecommunication sector.
The company shares value with the stakeholders of the organization. Shared value process helps
the company attain success for the organization by taking care of the interest of stakeholders.
Recommendation
After going through the data it is recommended that the company Telstra adequately holds the
market share in the industry. Adding to it, for the company to improve its current position which
is held by them in the market, the company shall constantly aim to provide better services to the
customers. Through way, the company can eliminate the competition barrier from its working.
Another barrier shall be removed by the company is that the employees of Telstra shall maintain
and monitor that the services adequately serve the purpose and values of the organization. Hence,
Telstra Corporation is working efficiently in the Australian market, further; there is some more
scope of improvement which can assist the company in achieving market capitalization.

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