This report provides a comprehensive analysis of British Telecom's business strategy. It begins with an introduction to the telecommunications sector and the importance of technology. The report then examines BT's mission, objectives, and external environment using a PESTLE analysis. The Ansoff Matrix is applied to assess strategic positioning. The internal environment is evaluated using the VRIO model, identifying strengths and weaknesses. The telecommunication sector is assessed using Porter's five forces analysis to understand competitive dynamics. Finally, the report explores strategic direction and options for BT using Bowman's Strategy Clock model, concluding with strategic recommendations based on the analyses. The report also provides an overview of the models used and provides recommendations for the future.