International Management Report 2022

Running head: MANAGEMENT
International Management
Name of the Student:
Name of the University:
Author Note:

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Executive Summary:
The aim of the report is to provide an insight into Telstra Corporation Ltd and the plans of its
business expansion in Germany. The report puts forward a brief background of Telstra along
with mentioning the reasons for the overseas expansion. There is also discussion about the ethics
and corporate social responsibility. The report also gives an overview of the country chosen and
provides a macro environmental analysis taking into account the political, social, economic and
the legal environment. The report also puts across recommendations based on the review of CSR
and the macro environment analysis

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Table of Contents
1. Introduction:................................................................................................................................3
2. Brief Background including Why it Might Consider Overseas Expansion.................................3
3. Ethics and Corporate Social Responsibility Issues......................................................................5
3. Introduction of Chosen Country:.................................................................................................8
4. Political & Legal Environment Analysis.....................................................................................8
5. Economic Environment Analysis:...............................................................................................9
6. Socio-cultural Environment Analysis........................................................................................10
7. Recommendations based on CSR Review and Macro Environment Analysis..........................10
8. Conclusions................................................................................................................................10
References:....................................................................................................................................11

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1. Introduction:
The report aims at providing an overview of Telstra Corporation Ltd and its plans of
expanding its business in Germany (telstra.com.au, 2019). It is the largest telecommunication
firm headquartered in Australia that operates and builds telecommunication network and also
markets mobile, voice, access, internet, pay television and various other services and products.
Telstra has long history in Australia. The company has now become completely privatized and
undergone a change program for becoming increasingly customer centric. The company
generated revenue of AUD$ 27.1 billon till the year 2016 and earned a profit of about AUD$5.8
billion. Telstra has various subsidiaries and the prominent among them includes Telstra Media,
Ooyala, Foxtel, Telkomtelstra and Pacnet.
During the earlier part of 1990s, Telstra faced immense competition not ony from Optus
which was considered as the second largest communication company of Australia but also
various small providers (telstra.com.au, 2019). Telstra retained ownership of fixed line telephone
network and played a major role in supplying resources to Government for upgrading it to
National Broadband Network. The company also has a pay TV and network for data cable
known as Foxtel.
The report commences with a brief background of the company and the reasons for its
overseas expansion. The report also discusses about the ethics and the corporate social
responsibility of the firm. There is also a brief introduction of the chosen country along with an
analysis of the political, social, legal and economic environment. The report also puts across
recommendations on the CSR review and the macro environment analysis.

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2. Brief Background including Why it Might Consider Overseas Expansion
In the year 1993, the Overseas Telecommunications Commission had been merged with
Australian Telecommunications Corporation into a very short lived entity known as Australian
and Overseas Telecommunications Corporation (AOTC) that continued to trade under
established identities known as OTC and Telecom. However, it was in the year 1993, AOTC had
been renamed as the Telstra Corporation Limited. The corporation then continued trading under
Telstra brand at the global level and as Telecom Australia in the domestic front until the uniform
Telstra branding had been introduced across entire organization in the year 1995(Khare, 2015).
Telstra represented an international technology company that ensures in empowering the
business for thriving into connected world (telstraglobal.com, 2019). The company helps in
delivering transformational experiences by providing collaboration, connectivity, innovation and
IT solution through one of the most advanced networks across the world. Telstra is solely an
Australian firm and it has long standing international business with focus on Asia Pacific region.
Presently, the company approximately has 3500 employees depending on close to 20 countries
besides Australia. The company has significant prominence in Asia since it provides services to
the thousands of government, carrier, and businesses and over-the –top (OTT) customers. The
company has established one of the largest subsea cable networks in Asia Pacific with diverse
and unique infrastructure which offered access to the intra-Asia capacity.
Telstra tries empowering its business through innovative solutions that includes IP
networks, data and various network application services that included unified communications,
managed networks, industry solutions, cloud, integrated software services, application and
considering network as service (exchange.telstra.com.au, 2019). Such services however remains

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underpinned through subsea network cable with the licenses in Europe, Asia and America having
access to over 2000 Points of Presence (PoPs) in over 200 international territories and countries
Nevertheless, under David Thodey’s leadership, Telstra embarked upon the
transformation agenda for becoming increasingly service oriented and sales focused. The
company also had a striving agenda related to customer service. In the year 2014, Telstra became
one of the respected companies of Australia. Telstra also has venture capital firm known as
Telstra Ventures that focuses on providing synergy of revenue to the portfolio companies and the
financial returns to limited partners. In addition to offices in Sydney, San Francisco and Sanghai,
Telstra Ventures have invested in close to more than 50 countries.
3. Ethics and Corporate Social Responsibility Issues
As far as the corporate social responsibility is concerned, Telstra believes in a value
based approach of doing business that leads it beyond compliance in making positive
contribution to communities and industries part where it participates. Telstra participated as a
part of Community Corporate Responsibility and ranked sixth amongst the Australian companies
thereby gaining a 90.21 percent score. The activity of the company (telstra.com.au, 2019):
Towards Community:
The people of Telstra demonstrated incredible amount of generosity in raising and
donating funds for the victims of tsunami disaster. The employees donated $1,561,280.27 as
relief funds for the victim. Besides, the community also provided $250,000 services that included
staffing, establishment of call centre for aid agencies, additional phone lines, waiving cost for
providing support to the volunteers. The company’s foundation however continues their support
to the young people and the children for reaching the potential and building more cohesive and

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stronger communities. The company’s community development fund and the kids fund
supported close to 855 projects (St Clair et al., 2019).
Towards Environment:
As far as the environment is concerned, Telstra achieved sustainable means of operating
that integrated the social, environmental and the economic considerations. The company remains
dedicated towards setting a standard for the environmental performance in industry through
pursuing the best practice in the world through environmental management (telstra.com.au,
2019). The company remains responsive and open towards environmental concerns of
shareholders, employees, shareholder, Government and wider community. Besides, the company
also audits, monitor and publicly report on the environmental progress. In addition to this, the
company also aims at improving environmental performance of the contractors, customers and
staffs by minimizing reliance on the transport by not only using audio, visual and online
communications but also replacing the resource intensive and the paper based means of
information transfer. Further, the company also works with the stakeholders for improving the
management of the environmental issues arising from maintenance and building of the network.
Some of the initiative or the strategic plan undertaken by Telstra includes (telstra.com.au, 2019):
 Introduction of the Energy Impact Statement (EIS) for building of the capital works and
land. The process involves energy efficiency within delivery stage of the project thereby
optimizing the energy and greenhouse gas thereby reducing the impact of Telstra on
environment.

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 Telstra remained proactive towards the rehabilitation and the restoration of Perth
International Telecommunications Centre (ITC) site for ensuring future and current
development of the environmental values.
 Telstra initiated an increase in the recycling of pit water via a system that enabled
collection of water in the street pits and treat it for the re-use in the sports fields and the
council park.
 Telstra reduced water to the landfill through expansion of the recycling program for
including the hard hats.
Towards Workplace:
As far as the workplace is concerned, Telstra has been awarded Australian Human
Resources Institute National Award for its excellence in people management within the sector.
The company also introduced a program for raising awareness of the mental issues and the ways
of providing support in workplace (Nankervis et al., 2016). The company also supported various
health and wellbeing programs along with initiation of celebration for International Women's
Day along with various lunchtime sessions for speaker.
Towards Marketplace:
As far as the market place is concerned, Telstra extended its benefit to over $160 million
to lower income Australians through range of products, services and concessions. According to
survey conducted in 2005 by Low Income Measures Assessment Committee (LIMAC), it has
found that the overall improvement in accessing telecommunications for lower income,
homeless, transient people and the indigenous Australians. In the year June 2005, Telstra brought

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about a newer service known as the BudgetPay that allowed the customers in spreading the
estimated phone cost over a monthly or fortnightly payment(telstra.com.au, 2019).
3. Introduction of Chosen Country:
The country chosen here is Germany. It is one of the fourth largest economies of the
world that accounts for about one fifth of total GDP of European Union (Dustmann et al., 2014).
It is also one of the trading partners of the United States and ranks sixth in being the largest
market for exports in the United States. As far as the social market economy is concerned,
Germany pursues principles of the free market and is under government regulation and
undertakes program related to the social welfare (Conradt & Langenbacher, 2013). Germany
also has one of the largest consumer markets with a population of closer to 82.3 million.
However, the importance of consumer markets is considered beyond borders and it becomes a
desirable option for firms for building the expansion strategies due to the geographic location,
consumer and trade volume. According to the survey reports put forward in the year June 2018,
the economic forecasting of Germany is two percent of the GDP for the year 2018 (De Grauwe,
2018).
Germany has a resilient labor market and rising employment figures with an all time
higher of about 44.34 million for the year 2017. On the other hand, the rate of unemployment has
been the lowest according to the annual value calculated in 2017. It is however vital to note that,
factors like the demographic changes, labor shortages, higher energy prices and regulation of
labor market and the higher energy prices are some of the factors that dampens competitiveness.

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4. Political & Legal Environment Analysis
In regard to the political environment analysis, Germany has an independent judiciary
comprising of constitutional courts (Jäckle, 2016). The topmost court in the country is the
Federal Constitutional court that results in the consistent interpretation of constitutional
requirements and protects the rights of individual citizens. Recently, there has been a change in
the no intervention policy of the country due to the rising pressure of the external world. Thus,
the country remains politically stable and puts across an ideal ambience for the expansion of the
business.
As far as the legal system is concerned, Germany is shaped by constitutional law and
remains influenced by the international law and European Union law. The federal law body
comprises of 1900 acts and close to three thousand statutory instruments. Legal stability in the
country attracts foreign companies and acts in favor of entrepreneurial activity and investment in
the country (Schroll-Machl, 2013). Nevertheless, the business life in Germany relies on the
principles of competition. Goods remain protected by trademarks and patents. Besides, the
country sticks to a specific metric standard with quantities and qualities being decided based on
metric standard. Besides, there are regulations on the labeling of products imposed by Federal
Institute of Risk assessment for ensuring product safety. Hence, the legal system in Germany has
been designed in a way to promote business.
5. Economic Environment Analysis:
Germany is considered the fifth largest economy across the world and being considered
largest in the European Union. The country also witnessed steady rise in GDP by 3.3 percent
(Hayo & Uhl, 2013). Stabilization along with tax cuts acted as the stimulus for business. Besides,

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Germany also believed in a principle of free market but had degrees of government regulation
along with programs and protections of social welfare. Subsidies are also encouraged across
various sectors thereby promoting competition and free enterprise. Hence, economic factors also
provides positive boost for businesses.
6. Socio-cultural Environment Analysis
According to Quine (2013), it is basically a modern and multicultural country marked by
varied lifestyles. The country also has traces of ethno cultural diversity where family is still
preferred in social units. The reunification of the West and the East Germany led to not only
better development but allocation of resources. The socio-cultural environment analysis of
Germany led to favorable business ambience.
7. Recommendations based on CSR Review and Macro Environment Analysis
These include:
1. From the CSR review it can be recommended that Telstra should build a clear
framework for the purpose of decision making and holding accountability across the business
and providing guidance on the behavioral standard expected from one another and with
shareholders.
2. Given the macro environment analysis it has become clear that Germany provided a
favorable ground for Telstra to expand its business. Therefore, it is recommended that the
company can deploy newer technologies by providing the customers of Germany with fastest,
safest, largest, smartest and one of the most reliable network available.

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8. Conclusions
On a concluding note, it can be said that the report portrays that Telstra is one of the
renowned telecommunications service company of Australia that adopts various initiatives in
incorporating a successful corporate social responsibility. The report also briefs about the
company and mentions its background and puts forward the reasons for its overseas expansion.
However, the political, legal, social and economic environment of Germany shows how it puts
across suitable environment for business expansion.

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References:
Conradt, D.P. & Langenbacher, E. (2013). The German Polity. Rowman & Littlefield Publishers.
De Grauwe, P., (2018). Economics of monetary union. Oxford university press.
Dustmann, C., Fitzenberger, B., Schönberg, U. & Spitz-Oener, A., (2014). From sick man of
Europe to economic superstar: Germany's resurgent economy. Journal of Economic
Perspectives, 28(1), 167-88.
exchange.telstra.com.au, (2019). Retrieved from https://exchange.telstra.com.au/innovation-
numbers-classic-complementary-techniques/
Hayo, B. & Uhl, M. (2013). The macroeconomic effects of legislated tax changes in
Germany. Oxford Economic Papers, 66(2), pp.397-418.
Jäckle, S., (2016). Pathways to Karlsruhe: A sequence analysis of the careers of German Federal
Constitutional Court judges. German Politics, 25(1), 25-53.
Khare, S. B. (2015). Elements of flowing stream strategy crystal for telecom service providers.
In Systemic Flexibility and Business Agility (pp. 33-61). Springer
Nankervis, A. R., Baird, M., Coffey, J., & Shields, J. (2016). Human resource management:
strategy and practice. Cengage AU.
Quine, M.S., (2013). Population politics in twentieth century Europe: Fascist dictatorships and
liberal democracies. Routledge.

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Schroll-Machl, S., (2013). Doing business with Germans: Their perception, our perception.
Vandenhoeck & Ruprecht.
St Clair, M., Murtagh, D. P., Kelly, J., & Cook, J. (2019). Telehealth a game changer: closing the
gap in remote Aboriginal communities. Med J Aust, 210(6 Suppl), S36-S38.
telstra.com.au , (2019). Retrieved from https://www.telstra.com.au/aboutus/our-company/past
telstra.com.au, (2019). Retrieved from https://www.telstra.com.au/aboutus/telstra-international
telstra.com.au, (2019). Retrieved from
https://www.telstra.com.au/aboutus/our-company/present/purpose-values
telstra.com.au, (2019). Retrieved from
https://www.telstra.com.au/content/dam/tcom/about-us/investors/pdf%20C/ar-other-
information.pdf
telstra.com.au, (2019). Retrieved from
https://www.telstra.com.au/content/dam/tcom/about-us/investors/pdf%20F/2018-Annual-
Report.pdf
telstraglobal.com, (2019). Retrieved from
https://www.telstraglobal.com/images/assets/misc/Telstra-Enterprise-Corporate-
Brochure.pdf