Strategy Report: British Telecommunications Business Analysis

This report provides a comprehensive analysis of British Telecom's (BT) strategy, encompassing its business description, financial performance, and a SWOT analysis. The report details BT's operations across 180 countries, its product lines, and market share, particularly within the United Kingdom. It examines BT's financial statements, highlighting profit trends and the impact of market competition and technological advancements. The SWOT analysis evaluates BT's strengths, weaknesses, opportunities, and threats, considering factors like financial stability, brand image, global presence, pension deficits, competition, and the impact of Brexit. Additionally, the report explores the application of a balanced scorecard to assess BT's performance across financial, customer, internal business processes, and learning and growth perspectives, providing insights into strategic objectives and initiatives. The conclusion summarizes the key findings, emphasizing the importance of strategic planning and performance evaluation for BT's continued success.

Strategy Report

Table of Contents
INTRODUCTION ..........................................................................................................................3
Section 1: Strategy Report...............................................................................................................3
Description of the business.....................................................................................................3
Financial performance of the British Telecommunications...................................................4
SWOT Analysis......................................................................................................................5
Section 2: Balanced Scorecard.........................................................................................................7
CONCLUSION ...............................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Strategies are the path way of performing the various in an organisation and guide the
senior and subordinates in order to attain the desired goal of the company. Strategic report is the
critical part of the annual report or can say it the point which determine the operations of the firm
that what the business does(Watt and Jacobs, 2018). British Telecom is a multinational
telecommunications company that is operating their business in across 180 country and its
headquarter is in London, United Kingdom. This report will cover the product lines,
geographical reach and the market share of the company. Moreover, it will analyse the financial
performance and the SWOT analysis of the company.
Section 1: Strategy Report
Description of the business
It is the First telegraph company which has developed the nationwide communications
and the Government has take the monopoly across the telecom services in the United Kingdom
and become the Public corporation. British Telecom is operating their business with wide range
of products starting from fixed line telephony mobile telephony broadband and internet, Fibre-
optic communication Digital television IT and network services home security(Universities
Australia, 2018). They are operating their business in 180 countries and In UK, It is the leading
company and offering the communications services, selling products to the consumers, small
and medium sized enterprises. They are also operating their business in the America for over 30
years and In Europe since 1980s and also having offices in Austria, Benelux, Central and Eastern
Europe, France and Germany. The highest market share of the British Telecom company is 35
percent of all fixed broadband subscribers in the United Kingdom.
Telenor is a public telecommunications provider and founded in1855 across the various
locations BG Kobenhavn, Bearum and so on. They are dealing in Mobile & Telecommunications
as it is the broadband mobile provider telecommunications as they are working with approx
20,000 and It is the biggest competitors and generating the 128.2b(Kohut and Segars, 2017).
Telefonica is also the leading company in the telecommunications services In the United
Kingdom as this is also a public operator company which is establish in 1924 and operating their
business in Madrid, AR Providercia and Munchen. They are working with approx 114,042
employees and generating the revenue of 1.7b.

Financial performance of the British Telecommunications
As per the Above financial statement, the profit for the year ended 32 March 2019 is
2611 and the operational profit are 3846 and there is the decrease in the sale and the operating
profit for the year ended 31 MARCH 2020 is 2324 due to market competition and the usage of
outdated technology within the organisation which is leading to get the decrease in the
profitability of the firm. The decrease in the sale of the company due to ineffective performance
of the employees. When they want to increase the sale of the company so they need to improve
the technology and innovation so that they can attract the large group of customers.

It is observed from the above image that the company initially is not getting any profit
due to high competition in the market and the use of outdated technology but with the time the
manager of the company have used the innovative and advance technology in their operations in
order to meet the changing demand of the large market and the year ending the 2020, they have
increased their profitability $22824 million and they have launched the Our wholesale channel
sells infrastructure services to UK MVNOs who provide mobile connectivity to their end
customers. This helps them to cover the large market and attains the higher profits in order to
maintain the brand image of the company. They get the direct impact on the firm as they are
getting the increase in the sale by using their resources in an appropriate manner.
SWOT Analysis
It is the framework of analysing the internal environment of the company as which
includes the strengths, weakness, opportunities and threats. In context of British Telecom., the
SWOT Analysis of the company is explained as follows:
Strengths Weaknesses

 They are having strong financial
statement and cash flow fro their
operations.
 They are offering the best services by
satisfying the customer and giving good
customer experience.
 They are having the good brand image
in the UK market by having large
number of customer base.
 They are having the limited presence in
the global market and highly depends
upon UK market.
 The company is facing the large
pension deficit and accounting scandal
in the Italian business and face huge
loss in their accounts.
 Separation of Open reach results in loss
in increase in cost and the branding of
the company.
Opportunities Threats
 Innovation and the development of 5G
Strategic partnership with Nokia and
Huawei.
 They are generating the higher revenue
by launching the new products and
services capitalising on synergy form
EE acquisition.
 They are giving the broadcasting rights
to the European football to help BT
further for this expansion.
 There is a huge impact of Brexit and
the Subsequent decrease in the value of
pound that hurt the profitability.
 There is a huge increase in the number
of competitors and the decrease in the
profits due to cheaper competitor
offerings.
 Pressure of government regulations and
licenses.
Opportunities in the upcoming year
 The market The market development will lead to dilution of competitor’s advantage and
enable BT Group plc to increase its competitiveness compare to the other competitors.
 New trends in the consumer behavior can open up new market for the BT Group plc . It
provides a great opportunity for the organization to build new revenue streams and
diversify into new product categories too.
Threats in the upcoming year

 New technologies developed by the competitor or market disruptor could be a serious
threat to the industry in medium to long term future.
 No regular supply of innovative products – Over the years the organsaition has formed
numerous products but those are often response to the development by other players.
Secondly the supply of new products is not regular thus leading to high and low swings in
the sales number over period of time.
Section 2: Balanced Scorecard
A balance scorecard is a strategic management performance metric that is used to identify
and improve the various functions of business that results in the betterment of the external
outcome of the firm(Moore, Mompe and Moy, 2018). It is used to measure and give the feedback
to the companies in which the data is being collected and give the quantitative results in the
better decision making by the executives and the managers in order to get the better results in the
organisation. Balance score card enables companies to have the better alignment with the
organisational structure so that they can have the better results in the organisation. It also helps in
providing the powerful framework for building the communication strategy and it also helps in
improving the strategic planning for the business so that they can get the better results within the
organisation. It also improves the performance reporting by which they can establish the
organisational alignment.
In context of British Telecom the analysis of the different elements of the balance scorecard is
describe as follows:
Perspective Objectives Measures Targets Initiatives
Financial The company
aims to increase
their market share
and the
profitability so
that they can add
the value to their
brand.
The company is
using the key
performance
indicator in order
to achieve the
high profitability.
The set target of
the company is
increase the
revenue by 20%
each year.
They are making
the best use of
financial
resources in order
to get the full
control in the
market.

Customer They are aiming
to new customers
and aim to
maintain the
customer loyalty
by which then can
increase the
profitability.
It will analyse the
customer
portfolio and
margin for the
customers along
with their
satisfaction.
They are setting
their target to
cover the large
group of
customers.
They are
initiating the
customer loyalty
program.
Int. Bus.
Processes
They are aiming
to increase the
quality of services
and efficiency in
the improvement
processes.
They are using
the Key
performance
indicator in order
to check the
product quality.
They are targeting
to achieve the
improvement in
their process.
As they are
introducing the
new quality
indicator in order
to get
effectiveness in
the business.
Learning and
Growth
They are using
the best practices
with the help of
research and
development.
Also focuses on
staff turnover.
They are using
the using the best
alternatives so
that they can get
the full control
over all the
factors.
They are targeting
to compete their
training in an
easy approach so
that they can have
the effectiveness
in the working.
The motivate the
staff and make the
bets use of
Research and
development.
CONCLUSION
It is concluded from the above report that strategies are the blue print of the further
actions and the decision taken by the company in respect to perform the various task in the
organisation. The company is operating their business at global level and having the effective
market reach in the United Kingdom. Moreover, the SWOT analysis is conducted by which the
company get the new opportunities in order to expand their market and generate the higher

revenue and profitability. Balance scorecard is the strategic approach that is use to identify and
evaluate the functions of management in order to give the valuable feedback to the organsaition.

REFERENCES
Books and Journals
Moore, J.E., Mompe, A. and Moy, E., 2018. Disparities by sex tracked in the 2015 National
Healthcare Quality and Disparities Report: trends across national quality strategy
priorities, health conditions, and access measures. Women's Health Issues, 28(1), pp.97-
103.
Universities Australia, 2018. Universities Australia Indigenous strategy: first annual report.
Watt, P. and Jacobs, K., 2018. Discourses of social exclusion: an analysis of bringing Britain
together: a national strategy for neighbourhood renewal. Housing, theory and
society, 17(1), pp.14-26.
Kohut, G.F. and Segars, A.H., 2017. The president's letter to stockholders: An examination of
corporate communication strategy. The Journal of Business Communication
(1973), 29(1), pp.7-21.