BMP3002 - British Telecom: Analysis of Internal and External Factors

This presentation provides an analysis of the internal and external factors affecting British Telecom (BT), a UK-based telecommunications company. The internal analysis uses a SWOT framework, identifying BT's strengths (extensive distribution network, wide product range, presence in major stoc...Read More

Internal and External factors Affecting Business
INTRODUCTION
 The poster is about the external and internal factors that
affect the businesses and how business affect the external
environment.
 British Telecom is a UK based telecommunication service
situated in London with 105300 employees and net sales
$28.1billion. Vision is to be company that helps customer
to access the whole world instinctively. The core activity
is to sell communication and information technology
services to customers.
External Factors
External factors are factors affecting from outside that have no control
of the business. For this PESTEL analysis has been used with respect to British
Telecom.
Political
 Governmental policies and their intervention like tariffs, bureaucracy
that affect a business.
 British Telecom helps in creating importance and stability of
telecommunication in UK.
 Risk for military invasion.
 British Telecom has to maintain trade regulation of
telecommunication imposed by government.
Economic
 Factors affecting economy performance like exchange rates, inflation
rates etc.
 British Telecom has to deal with labour cost and productivity of
country of operation.
 Deal with exchange rates and stability of country of operation
currency.
 Infrastructure quality for customer service department.
Social
 Culture and way of doing things of organization in environment..
 Deal with different skill level of population of every country.
 Attitude regarding health problems of population towards telecom.
 Culture with different gender and social convections of different
countries.
Technology
 Factors related to technology that affect the operation of industry and
the market.
 Impact of cost structure in telecom sector of host country.
 Impact of technology development by competitors.
 Business have to face the prices of new technology or up-gradation of
existing one.
Environment
 Factors related to ecological affects to business.
 British Telecom has to deal with weather and climatic changes of the
country.
 Attitude of country towards ecological and waste management in
telecommunication industry.
 Customer needs keeps on changing which means technology using
now won't remain in the future.
Legal
 Factors that define what a business can do or not in legal framework.
 British Telecom has to deal with Employment and Discrimination
laws.
 Deal with different intellectual property and copyright laws for every
country.
 Follow consumer protection and e-commerce laws of host and own
country.
Internal Factors
Internal factors means anything tangible or intangible
within the company which impact the approach and success of
operation of business. For this SWOT analysis is used with respect
to British Telecom.
Strengths
 These are capabilities with respect to business.
 British Telecom has distribution network all over the
world with a huge customer base.
 Offers wide range of products and services.
 Present in London and New York Exchange and present
in FTSE 100 Index.
 Leads UK in internet and broadband services.
Weakness
 Processes that are negative attributes of business that are
need to be improved.
 Mainly dependent on UK market and not have many
stores in Asiatic region.
 British Telecom has been punished for behavioural
targeting on customers.
 British Telecom are in phase of underdevelopment of
mobile business and lack of fixed-mobile connection.
 Lack in business strategy regarding cheap calls.
Opportunities
 Factors that business should adapt to be successful in the
future.
 Enter 5G market with other mobile companies.
 Should start new services and products in telecom sector.
 Should promote European football by advertisements to
expand their customer base.
 British Telecom should make connections with overseas
partners for global expansion.
Threats
 Factors that a company don't have control. Company have
to face when problem arises.
 Business faces pressure of other telecom companies that
leads to reduction in profitability.
 Intense pressure of governmental standards and
regulation.
 Devaluation of Pound reduces profit for British Telecom.
 Inability to foresee the successfulness of long-term
projects considering current economic fluctuations
Impact of businesses on External environment
Business affect the environment through extraction and utilization of
environment resources. These impacts can be:
 In making of the product British Telecom burns much toxic material
and gases which released in atmosphere. These gases have direct
impact on environment by absorbing radiation from the sun that lead
to rising sea level, rising temperature, melting of ice caps and risks of
animals becoming extinct.
 Provides a technological foundation for society as communication
among people differentiate a business from individual. People feel
more connected from different location.
 Communication through technology makes easier to transfer
knowledge. It helped businesses to held back their traditional
infrastructure and use mobile as their office. From this there are new
interventions in social and political environment.