Organisational Strategy Analysis: BT's UK and International Growth

This report provides a comprehensive analysis of BT's organizational strategy. It begins with an introduction to the importance of organizational strategy in the business sector, followed by an examination of the key challenges BT faces in the UK's external environment using PESTEL analysis, including political, economic, social, technological, environmental, and legal factors. The report then delves into BT's internal business situation and resources, utilizing a SWOT analysis to assess strengths, weaknesses, opportunities, and threats, as well as identifying key resources like networks and customers. Furthermore, the analysis extends to the competitive environments in both the UK and international markets, employing Porter's Five Forces model to evaluate the bargaining power of suppliers and buyers, the threat of substitutes and new entrants, and the rivalry among competitors. Finally, the report explores strategic options and directions for future growth, both in the UK and internationally, applying the Ansoff matrix to evaluate market penetration, market development, product development, and diversification strategies, ultimately recommending market development as the most suitable approach for BT's expansion. The report concludes with a summary of the findings and references used.

Organisational Strategy

Table of Contents
INTRODUCTION................................................................................................................................3
MAIN BODY.......................................................................................................................................3
1)Analyse the key challenges facing the company in the external environment in the UK? .........3
2)Analyse the internal business situation and resources of the company in the UK?....................4
3) Analyse the competitive environments of the company in the UK and International market?...6
4) What strategic options and directions could the company pursue for the future growth both in
the UK and international Market?...................................................................................................7
CONCLUSION....................................................................................................................................9
REFERENCES...................................................................................................................................10
Books & Journal:...........................................................................................................................10

INTRODUCTION
In business sector, it is important to use organisational strategy to survive in market.
Organisational strategy is defined as sum of actions or that is undertaken by firm with motive of
accomplishing short as well as long term a goals (Nurmi, 2018). Strategies are crucial which are to
be adopted with detailed market research and collecting of information. BT which is also known as
British Telecom multinational company headquartered in UK. It is deals in ample number of
services such as mobile, broadband etc. across the globe. This report comprises of challenges in
external environment, internal business situation and resources of company and strategic
operations . This report gives brief knowledge about BT 's company business environment and
challenges faced by them in market.
MAIN BODY
1)Analyse the key challenges facing the company in the external environment in the UK?
BT is the largest service provider in IT sector and has its operations all over the world. As
they operate globally, they face many challenges such as resource allocation, governmental issue
etc. So, to determine the challenges in external environment in UK, company use PESTEL Analysis
as a tool to analyse their external issues.
PESTEL Analysis
It is framework which is used by organisations to determine the factors which have a impact
on their business activities and affects their functions as well as operations (Rahman, 2019). To use
this tool, a deep level of market research is required to examine the external environment properly.
It includes several components which are mentioned below-
Political factors- These includes several elements such as tax policy, labour law,
environmental law etc. In this, involvement of government is high and slows down or affects the
growth of economy. In context with BT, with regular changes of government policies and
procedures it is difficult for them to acquire resources externally for expanding their business.
Economic- These involves interest rates, exchange rates, disposable income of consumers
etc. In reference with British Telecom, they face challenges such as due to difference in disposable
income of consumers geographically, they have to adjust their products and services rates
accordingly. This makes it difficult for them to deal with fluctuation of rates. Due to change of
investment climate in some of the areas, BT have to pay high interest rate when acquiring resources
or raising of capital for business.
Social- This component includes elements such as population growth, age distribution,

attitudes, behaviour, etc. This directly affects the decision making process of both customers and
firm at deeper level. In relation with BT, with change of market and trends of consumers firm has
to conduct market research to properly analyse the demands as well as needs which is cost
expensive process.
Technological- It is one of the major factor which affects the overall infrastructure of firm
at depth. The chosen entity also face challenges in this as they have to update their technology as
well as services because of regular change in use of technology (Willis, 2017). Huge investment is
required by them to expand their cloud and networks all over the globe.
Environmental- These comprises of green agenda, waste management, environment safety
etc. Consumers are mostly attracted towards those firm which have been always an active regarding
the environment safety and fulfil their social responsibility. Thus, British Telecom is being using
wires for their all products which leads to air pollution or disruption of wildlife. Due to this, many
consumers are not in favour of the entity.
Legal- The elements incudes contracts, agreements, etc. which are enacted by law or
government. In reference with BT, they make ensures that all documents are being properly carried
out so that legal issues does not arises.
2)Analyse the internal business situation and resources of the company in the UK?
Internal business situations are crucial and have direct impact on functions and operations
of business. It is necessary to determine them so that it become easy to carry out the decision
making process. There are many business situations which are faced by British Telecom during their
core management operations such as monitoring performance, exploding data, recruitment of right
talent etc. Thus, organisation uses SWOT Analysis to determine internal business situations of their
firm.
SWOT Analysis
It is marketing tool which is used by many firms which motive of determine and analysing
the strength, weakness, opportunity and threats as well as internal strategies (Balding, 2020). This
help in making effective decision making with appropriate measures.
Strength
 With their high level of quality of
services, company has been able to
maintain and achieve customer
relationship management.
Weakness
 Comparing to their competitors British
Telecom spend more on their training
and development due to which it difficult
for them to develop or expand their other

 As they invest in their recruitment
process, they hire talented employees
who provide huge contribution.
departments.
Opportunity
 With stability of their cash flow they
have the opportunity to invest in more
social or environmental programmes.
 Change in consumer behaviour and taste
generates opportunity for them to
develop their product portfolio into new
market (Makovhololo, 2017).
Threat
 As the firm is involved in many
countries, it faces challenges such as
currency fluctuation leads to impact of
their services.
 Liability laws are heterogeneous in
different countries which BT PLC might
face various legal claims in those
markets.
Resources of company in UK are being identified through resource audit. It is essential to
examine the available resource of firm so that they are used with appropriate considerations. So, the
their are various resources which are available for chosen enterprise in UK and are mentioned
below-
 Networks- It is being considered as most optimistic physical resource which are used by
company for providing fast network and broadband services to every household. This assist
entity to expand their services at wider scale (Hajizadeh, 2019).
 Customers- These are most crucial resource which is are available in UK as they are the
one who use entity services and products for both personal as well as professional use. With
large population of UK, they are able to find the potential customers for their product.
3) Analyse the competitive environments of the company in the UK and International market?
Competition is rising at rapid scale and it has become important to analyse the level of
competition in market so that strategies are implemented in proper manner. So, to analyse the
competitive environment in UK & international market selected corporation uses Porter Five Force
model.

Porter Five Force Model-
It is a framework which used by company's to examine or analyse the competitive
environment in market at both national and international level (Paes, 2019).This help in using of
resources and strategies in most efficient way. Thus, corporation uses with to analyse their intensity
of competition across the globe.
Bargaining power of suppliers- Vendors are most important part of business as they have
the major source through which products are being distributed all over in market. Most of suppliers
wish for higher power with motive of gaining profit and providing low quality products. In
reference with chosen corporation, they have diversified communications field and which lowers
their profitability. They can deal with bargaining power of suppliers by establishing efficient supply
chain with number of vendors. In international market, suppliers in some international countries
such as New York have higher bargaining power.
Bargaining power of buyers- In market, buyers also often wish for high bargaining power
with aim of getting quality of products at affordable rate. In relation with chosen firm, they can
tackle bargaining power of buyers by building large customer base and market, innovating of new
products into international markets etc.
Threats of substitutes- It sector and telecommunication industries are rapidly changes and
growing which increases the availability of substitutes of a product at larger level. For example- BT
also have have many substitutes of their products such as Qualcomm, Huawei are some of the
examples substitutes which have a high threat in market (Summanen, 2019).
Rivalry among competitors- This specifies the level of competition in industry and how
its impact the market. In relevance with given entity, they have high level of competition in their
diversified communication field. The can deal with their competitors by focusing on differentiation
strategy, collaborating with rivals to expand business. Through this it will be easier for them to
access survive in international market.
Threat of new entrants- Entry of new network communications PLC leads to innovation
but also decreases and affects the price of product & pricing strategies of entity. BT faces many
challenges in this field as their products prices gets affected, cost reduces, etc. They deal with this
institutions by innovating new products, investing more in R & D development etc.
Therefore, after analysing the above examined paragraph it is seen that competitive
environment in telecommunication is higher & is rising at rapid level. In international market, it is
necessary to have proper knowledge of competitors and rivals so that functions/ operations are
carried out effectively. This assist in developing appropriate tactics for business without facing any

problem or issue.
4) What strategic options and directions could the company pursue for the future growth both in the
UK and international Market?
Strategies are essential for every business to access growth and overall development. To
implement effective strategies, decision making is carried out in appropriate way. For future growth
in UK and international market BT uses Ansoff matrix as a model to use effective strategy within
their business operations.
Ansoff matrix
It is a tool which is used by organisations to select or choose strategy for future growth &
development (Ward, 2019). It is effectively used with correct measures so that issues do not arises.
It includes several strategies which are mentioned below-
Market Penetration- This is strategy in which firms focuses on introducing of existing
product into existing market. It is most safest one as do not require any market research and risk
associated with this one is also low. In context with chosen enterprise, they can adopt this as it assist
them in using of resources and capital efficiently. Moreover, it will assist in attracting of more end
users for their network services and clients.
Market development- In this, corporation use to target on existing product into new
market. It is mostly used by companies with aim of expanding their product line at larger scale. In
context with selected brand, they can use this strategy with motive of developing their service at
wider scale. It is riskier more compared to penetration one because of targetting on new markets.
Product development- In this, enterprises focuses on developing of their new product into
existing market. Risk associated with this one is high because of focusing of business on new
product. To do this, marketing or advertising strategies are used at higher level which also increases
the cost of British Telecom. It can adopted by them to retain their old customers or attracting of new
one (Varelas, 2017).
Diversification- This is the most difficult and riskier strategy as compared to the above
stated one. This states that new products are being introduced into new market. To implement this,
it requires market research, resources, capital etc. are needed at wider scale. In reference with
British Telecommunication, they should not go with this one because due to uncertainty of events, it
might disturb the business environment as well as cause a major problem for them due to changing
scenario of market.

The strategic option which is selected and beneficial for firm is market development. The
reason is because it help them in expanding their overall business at wide level of area.
SWOT Analysis of chosen market development strategy
Strength
 This provide them new customers and
clients which leads to higher profit.
Weakness
 Due to uncertainty of market, it is
difficult to use this strategy.
Opportunity
 Firm will able to attract new customers
for their product. (Yin,2016)
Threat
 In new market, existing company will try
to dominate their business (Loredana,
2016).

CONCLUSION
After a brief analysis of above report, it is seen that organisational strategy is to be used in
most efficient way so that business is able to expand their activities & survive in market.
Discussions have been about use challenges faced by company in UK in external environment
( PESTEL), SWOT Analysis, Porter Five Forces Model & Ansoff matrix. So, strategies are used by
firms after a deep level of market research. e

REFERENCES
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Balding, 2020. Making high quality care an organisational strategy: Results of a longitudinal mixed
methods study in Australian hospitals.Health Services Management Research,
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Makovhololo, P2017. Diffusion of innovation theory for information technology decision making in
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Hajizadeh, 2019. Machine learning in oil and gas; a SWOT analysis approach.Journal of Petroleum
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Paes, 2019. Organic solid waste management in a circular economy perspective–A systematic
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Greek tourism destination.J Tour Res,18, pp.121-131.
Yin,2016. Application of AHP-Ansoff matrix analysis in business diversification: The case of
Evergrande Group. InMATEC Web of Conferences(Vol. 44, p. 01006). EDP Sciences.
Loredana, 2016. The Use Of Ansoff Matrix In The Field Of Business. In MATEC Web of
Conferences(Vol. 44, p. 01006).