Consultancy Project for British Telecom: Strategic Growth and Analysis

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This consultancy project analyzes British Telecom's (BT) current strategic position, challenges, and potential growth strategies. The project evaluates BT's global services, debts, and competitive environment, highlighting key challenges like leadership turnover, mindset and culture issues, and the impact of traditional approaches. The report emphasizes BT's need for strategic and disruptive hiring to strengthen its capabilities, focusing on leadership qualities such as intellectual honesty, accountability, and self-awareness. It examines BT's plans for acquisitions and mergers to maximize its competitive advantage. The project offers insights into BT's internal culture, its shift towards a new brand identity, and its ongoing efforts to improve customer experience and digital skills, and provides a cost estimate and project plan for the proposed changes.
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Consultancy Project
Prepared for British Telecom
By XYZ Consultant
Date: _______
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Table of Contents
Introduction......................................................................................................................................3
Project Details..................................................................................................................................3
Part 1) Evaluate and summary of BT’s current strategic position..........................................3
Part 2) British Telecom wish to strengthen capability through strategic and disruptive hiring
of people into key leadership roles.........................................................................................5
Part 3) British Telecom operate in a global competitive environment and in multiple countries
across a range of cultures.......................................................................................................8
Part 4) British Telecom is seeking to undertake a range of significant acquisitions and/or
mergers to maximise their competitive advantage in a challenging market..........................9
Cost estimate..................................................................................................................................11
Project Plan....................................................................................................................................12
Conclusion.....................................................................................................................................12
References......................................................................................................................................14
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Introduction
The consultancy that has been taken into consideration is of British Telecom (BT), which
is looking forward to successful bring change within the management system, so that reduction
could be made of the impact of uncertain external environment. Basically, British Telecom
Group Plc is one of the leading multinational telecommunications holding company
headquartered in London, United Kingdom. At current, organisation is conducting it's operations
in more than 180 nations, which made this organisation as one of the largest provider of fixed-
line, broadband and mobile services in the UK including the IT services (Huemann, Keegan and
Turner, 2018).
Including this, it has been found that British Telecom is also going to make some
transformation within the existing services offered by them to customers, through improvising
mobile and fixed connectivity. This is going to be made through setting new standards for
customer experience, and providing digital skills for more than 10 million people and businesses.
On the other hand, another British Telecom is also changing the way people and businesses
interact with its products and services. But, the issue that came in front is that since, British
Telecom is working in more than 180 countries it is hard to bring change effectively, where
principle issues are directly linked with developed strategies in relation with Mindset, Culture
and Leadership. This report will be enclosed with number of key challenges, which leadership
team of British Telecom will face in upcoming future. Along with this, report will also put light
on capability through strategic and disruptive hiring of people into key leadership roles, which
would lead to improvise the existing culture followed by company which will support flexibility,
innovation and intrapreneurship as well, through all elements of business.
Project Details
Part 1) Evaluate and summary of BT’s current strategic position.
Summary of BT’s current strategic position:
Over the years, global services strategies that has been developed and followed by British
Telecom has specifically experienced difficult time period, which resulted high level of debt that
took place due to ample number of reasons like heavy debts because of massive use of joint
ventures in more than 180 countries (McGivern and et. al., 2018). Along with this, it is also said
that British Telecom which developed a specific global strategy, where organisation was offering
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products that were carrying homogeneous nature, leading to a needs-based strategy focusing on
multinational corporations instead of products intended for domestic use, as they offer in the
United Kingdom. But, there are many rivals like Verizon Business, AT&T, Orange Business
Services and more are serving to customers with competitive price, which impacted negatively
upon overall performance level of the company. Away with this, if it is talked about BT's
weakness, then they have considered high senior management turnover, which mostly impacted
over strategical formation process (Welcome to Technology’s Business Briefing, 2019).
Key challenges that are faced by the leadership team at BT
After analysing current strategic position of BT, there are number of key challenges that
leadership team of this company has faced and some of these are presented underneath: Accountable leadership roles and decision making: Since,British Telecom is dealing
with high senior management turnover ratio, which affected the development of strategies
in relation to company's welfare. Basically, innovation and agility are the two major
factors that would lead British Telecom to facilitate success. Under this, the major issue
was that company as dealing with lack of decision making because organisation was
already having good number of leaders (Boman, Brooks and Rooke, 2018). People's mindset and culture: Another crucial challenge that was faced by British
Telecom was that linking with cost of service and communication as well. This was
specifically needed by the organisation to remove or to reduce in order to bring the
change for betterment of their own and to serve better to both existing and new
employees. Basically, organisation was looking forward combined itself with a continued
focus on cost transformation across the group, which would lead British Telecom to
resolve all the issues related to prices faced by its potential customers. This convergence
would help firm in raising their EBITDA (Yan, 2019). Traditional approaches: If it is analysed than, it is said that both convergence along with
the innovative approaches are something that within BT, as it started lacking because of
the traditional approaches utilised by BT. Along with this, it is also said that promoting
many different services in front of customers worldwide is something that this
organisation was doing considering traditional approaches. This could be understood with
a good example of British Telecom where this organisation is approximately 65 percent
of these services are traditional. Including this, approximately 35% that is considered to
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be a leading edge. This is where, British Telecom has stated that 35 percent is something,
which may lead longer-term perspective to a whole new level.
Culture: Another key challenge that came in front was that internal culture of British
Telecom was not that effective enough and the reason that came in front was that this
company was working almost in 180 countries, where there are ample number of cultures
present among these nations. This affected the whole working of the company, because
of the diverse culture followed by number of staff members, which impacted on
productivity due to rise in conflicts. This was needed to be improvised and for this,
British Telecom started looking into ample number of aspects and after doing it company
reached to a decision where, it could develop a whole new brand purpose. This is where
identification took place and reflected with considering a whole new approach and i.e.
Beyond Limits. This is where, British Telecom created a whole new approach, which
would directly drive the overall internal culture of British Telecom to help people,
businesses, and communities go beyond limits, which could be anything from ability,
location, age, scale, background in order to enhance the overall potential of the
organisation. Including this, it is also said that British Telecom will directly unveil its
new identity with a broad internal and external campaign that would lead it's employees
to get connected with other individuals like customers and so on (Dyer, Gregersen and
Christensen, 2019).
Part 2) British Telecom wish to strengthen capability through strategic and disruptive hiring of
people into key leadership roles.
Since the business organisation i.e. British Telecom is looking forward to boost up their
own capability in order to develop a crucial culture which consists of different elements like
intrapreneurship, flexibility and innovation through considering strategic & disruptive hiring of
people into key leadership roles. It has been taken into consideration is because, British Telecom
was specifically dealing with high senior employee turnover ratio, where leaders started leaving
jobs because of different reasons like conflict, less motivation, utilisation of traditional
approaches and so on (BT launches new products, services and skills programmes to help boost
the UK’s potential, 2019).
This impacted negatively upon overall performance level of the business organisation and
upon current and external environment as well of the company. The reason that came in front is
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that due to less innovation, flexibility and intrapreneurship, British Telecom started going
through ample number of difficulties and though of developing a recruitment plan in relation to
hiring number of qualified leaders so that they can enhance the strategic capabilities within the
company for their own betterment (Joshi, 2018). Including this, it is also said that there are
number of key leadership capabilities that British Telecom will consider while hiring the
individuals among leadership roles and these are presented underneath:
Intellectual honesty: Intellectual honesty is an applied method of solving a problem
without using any personal bias or dishonest attitude, that means any personal faith, politics or
lack of politics will not influence the truth, the relevant facts and information should be used not
to be omitted as this will mislead the truth. All the fact should be presented in a actual way that
the truth will not change. This is being considered as one of the crucial and primal capability that
a leader should carry when it comes to perform various tasks at workplace, while developing
various policies and motivating staff for the better achievement of desired goal (Chan and et. al.,
2019). This would lead the whole BT's capabilities to get improvised within the challenging
environment and sustain for a longer period of time. It is also said that a leader with this would
directly start adapting new realities, which would directly develop strategic business
environment for the company, as the leaders are not welded to the strategies, products or
processes of the past. They are not afraid to break free of their comfort zone and recognize that
times have changed - and that the competitive advantage of the best product is now obsolete. If
British Telecom would directly take into consideration of this capability while recruiting number
of employees, then it would lead the organisation to sustain within the market for a longer period
of time as it will support innovation, flexibility along with the intrapreneurship as well. This
would lead British Telecom to enhance the overall performance level through recruiting number
of employees at workplace. Considering this,British Telecom has developed Halo products for
homes and businesses, which has helped them in sustaining within the market for a longer period
of time (Akkermans and Van Oorschot, 2018).
Accountability: This is being considered the capability of a leader in which a leader
accept the consequences which may arise after there completion of an action which is done by
the leader or is done on the instruction of the leader by an subordinate, these consequences may
be positive or may be negative but are accepted by the leader itself. Like a leader give instruction
to its subordinate that follow the plan which leader gave him and if plan get failed or success
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the subordinate is not accountable for that failure but the leader is accountable for that failure or
success. Considering this capability within the leader, British Telecom could directly lead the
organisation in investing and help in building full fibre internet usage among homes and business
in all over the world. This plan would directly become achievable if it's leaders would become
able to gain accountability at workplace where the plan is to make the four million premises by
March 2021. this would lead to develop ambition among leaders. This can also be considered as
a section of governance, it has been central to discussions related to problems in the public
sector, non-profit and private and individual contexts (Szymanski, Fitzsimmons and Danis,
2019).
Self-awareness: A leader must be self aware about the decision he is making in a
organization. Self awareness is the key capability of any leader in organization and a leader must
aware about the organization. In today's environment there are biased people present in every
organization and a good s tragic leader should not influenced by these people he must have his
own knowledge and idea about the organization which bring effectiveness in work of
organization and bring effective leadership. Another crucial capability that is needed by leaders
that British Telecom is going to recruit, where they need to be self aware as with the help of this
only, they would become able to deliver the to BT. Considering self awareness, BT's leaders will
directly start serving best to staff members. Through this, it can be said that a leader would
directly become intrapreneur for the business company. Since, organisation is continuously
looking forward to grow EBITDA, here, it will be required by it's newly recruited leaders to
become self aware in relation to cash flow growth for the business. We will continue our prudent
financial policy of investing in our business, reducing net debt, supporting the pension fund and
paying progressive dividends.
Talent magnet. Basically, British Telecom organisation has taken into consideration of a
plan where, it is going to create the UK’s most personal and local customer service, where they
will recruit and launch new team (with 900 Home Tech Experts). This is where they could
effectively help business company in making the 4000 premises filled with high speed premises
with the help of fibre line. Along with this, organisation also kept it's focus on delivering digital
tech in their homes and supporting workplace, returning all customer contact centres to the UK
& Ireland 12 months earlier than planned from January 2020.
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Part 3) British Telecom operate in a global competitive environment and in multiple countries
across a range of cultures.
Hofstede's cultural dimensions theory can be considers as one of the crucial framework
that has helped business organisation when it comes to understand both national and
international competitive environment as it is enclosed with different elements like cross-cultural
communication (De Mooij, 2018). This specific theory was taken into consideration by Geert
Hofstede. Along with this, Hofstede's cultural dimensions theory has specifically linked with
Society's culture on the values of its members. Considering this model, British Telecom would
directly become able to serve better to potential customers within the challenging business
environment through surviving within the different cultures (Li, Cui and Lu, 2018). In this theory
there are a number of factors that are enclosed and these are given and presented underneath:
Power Distance Index (high versus low): This dimension expresses the degree to which
the less powerful members of a society accept and expect that power is distributed unequally.
The fundamental issue here is how a society handles inequalities among people (Goldfarb and
Trefler, 2018). Since, British Telecom is looking forward to expand it's business through
considering an agile approach, it will directly lead the organisation to sustain within the company
for a longer period of time.
Individualism Versus Collectivism: Basically, Individualism, can be defined as a
preference for a loosely-knit social framework in which individuals are expected to take care of
only themselves and their immediate families. On the other hand, collectivism shows all the
preference for a tightly-knit framework in society in which individuals can expect their relatives
or members of a particular in group to look after them in exchange for unquestioning loyalty for
British Telecom.
Masculinity Versus Femininity: The Masculinity side of this dimension represents a
preference in society for achievement and material rewards for success. Society at large is more
competitive. Its opposite, Femininity, stands for a preference for cooperation for the weak and
quality of life. This would lead British Telecom to sustain within the market for a longer period
of time.
Uncertainty Avoidance Index (high versus low): With the help of this degree, British
Telecom would directly reduce all the uncertainties that are present within the different
dimensions. This will lead BT to deliver digital tech in homes and supporting workplace,
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returning all customer contact centres to the UK & Ireland 12 months earlier than planned from
January 2020.
Long- Versus Short-Term Orientation: Every society has to maintain some links with its
own past while dealing with the challenges of the present and the future.
Indulgence Versus Restraint: Indulgence stands for a society that allows relatively free
gratification of basic and natural human drives related to enjoying life and having fun. This
would lead BT to sustain within the market in upcoming future through following agile approach
(Riad and Daellenbach, 2019).
Part 4) British Telecom is seeking to undertake a range of significant acquisitions and/or mergers
to maximise their competitive advantage in a challenging market.
In present situation, changes are required within the business organisation for the purpose
of sustaining within the market as it directly helps to accomplish the organisational goals. Each
and every organisation has the plan that how they can perform better with the situation they are
provided and in this types of situation, organisation has the option to select the alternative way
like acquisitions or merger. Here, company gets the right to take competitive advantage from this
two respective process. As per the working capabilities of British Telecom, they are one of those
organisation which can take the help of merger for competing with rivalry firm.
Merger can be defined as the process where two or more then two organisation combines
together to form a new organisation through which large area of market can be covered easily. It
is one of the way through which one firm can give tough competition to their rivalry firm at a
greater level. It also helps organisation to accomplish their goals within the specific time period.
If company like British Telecom is taking the help of merger they are needed to find
some of the crucial points or ways through which they can give competition to their rivalries.
Firstly, they are needed to find or decided that which types of merger they are willing to conduct
as there are two types of merger i.e., horizontal and vertical. If they are willing to have horizontal
merger they will have to find the industry which is dealing in same market. But, in case of
vertical they will have to target the industry from different sector, still which can be effective in
obtaining the result (Hovenkamp, 2018).
Here, Management of British Telecom is willing to focus more on agile type of
organisation so it will be important for them to find those companies which are specialist in IT
sector because it will help them to explore. In simple word choice of selection of for should be
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appropriate for effective result. It is because it will deliver more opportunities to explore
themselves for attaining their desire goals. Talking about merger in detail, it will be necessary for
the organisation like British Telecom to find that whether their employees are satisfied with the
changes or not because they are the one who plays the most important role with the business
organisation (Brueller, Carmeli and Markman, 2018).
It will be necessary for them the to clear out all of the doubts which occurs within the
mind of employees during the process of merger. Also, it will be necessary for management to
provide proper training so that employees can be adjust within the changing environment and
allow themselves to perform as per the requirement of objective and goals. In addition, once
merger takes place the newly company should be able to form their common goals because that
is the only way through chances of obtaining the effective result can be improved. In last, it will
be essential for British Telecom to distinguish between their employees and their capabilities so
that they can divide roles and responsibilities accordingly. It is one of the way through chances
of obtaining the effective result through merger can be planned effectively for company like
British Telecom (Nelson, 2018).
It is up to organisation that how they can plan their merger effectively but in case of
British Telecom, if they are able to manage their merger in best possible manner then they will
be able to compete within the market. There will be high chances that they can improve the
satisfaction level among the customers. Also, company will have the option to introduce some of
the technology within their business organisation which can easily attract customers. Finally, as
company is trying to focus more on IT sector, simply it will give them the idea that how they can
fix all of the bugs which create issues at the time of delivering the services to their customers.
In short, it will be crucial for British Telecom to take the help of merger for effective
result and also it will enhance the changes to bring more idea and techniques which will directly
allow organisation to perform their work in a systematic manner (Teusch, 2019). This would
lead the company to enhance the different elements and will become able to serve the best to it's
potential customers like upgradation of 700,000 homes and businesses to Superfast Broadband,
launching 4G and 5G broadband solutions for small businesses, becoming one of the first mobile
providers in the UK to launch 5G mobile plans and launching new programme with Apprentice
Nation to help 1000 young individuals.
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Cost estimate
Basically, the cost estimation has been developed on the basis of different sections and all
of these are presented underneath:
Part 2.
Particulars Amount (In pounds)
Hiring cost 100
Training cost 250
Cost of advisory committee 50
Other costs 10
Total cost 410
Part 3
Particulars Amount (in pounds)
Marketing cost 250
Legal charges 100
Freight charges 50
Insurance of goods 125
Import taxes 150
Miscellaneous expenses 80
Total 755
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Part 4
Particulars Amount (in pounds)
Direct cost: 410
Cost of accountants 250
Attorneys 140
Investment banker 20
Financing cost: 100
Debt issuing cost 40
Tax treatment 60
Total cost 510
Project Plan
Plan for
WBS TASK By Whom
1 Part 2.
1.1 Hiring Human resource department
1.2 Training Human resource department
1.3 Advisory committee Board members
2 Part 3
2.1 Marketing Marketing department
2.2 Legal services LAW
2.3 Freight Logistics department
2.4 Insurance of goods LAW
2.5 Import Logistics department
3 Part 4
3.1 Cost of accountants Accounts department
3.2 Attorneys Accounts department
3.3 Investment banker Accounts department
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3.4 Debt issuing Accounts department
Conclusion
With the help of above mentioned report, it is being concluded that global competitive
business environment of a company needs ample number of changes when it comes to bring
innovation, flexibility and intrapreneurship within the organisation. Including this, it is also said
that it will be required by the organisation to consider number of agile approaches in order to
enhance the overall performance level of their own. Away with this, it is also said that effective
change process would lead the company to make significant acquisitions and mergers with
number of business organisations, which would directly lead to improvise or enhance the
competitive advantages within today's challenging business environment.
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References
Books and Journals
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Chan, C. M. and et. al., 2019. Agility in responding to disruptive digital innovation: Case study
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De Mooij, M., 2018. Global marketing and advertising: Understanding cultural paradoxes.
SAGE Publications Limited.
Dyer, J., Gregersen, H. and Christensen, C. M., 2019. Innovator's DNA, Updated, with a New
Preface: Mastering the Five Skills of Disruptive Innovators. Harvard Business Press.
Goldfarb, A. and Trefler, D., 2018. AI and international trade(No. w24254). National Bureau of
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Hovenkamp, H., 2018. Prophylactic merger policy. Hastings LJ. 70. p.45.
Huemann, M., Keegan, A. and Turner, R., 2018, September. Human resource management in the
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Joshi, B. P., 2018. Disruptive innovation in hospitality human resource. Journal of Tourism and
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Szymanski, M., Fitzsimmons, S. R. and Danis, W. M., 2019. Multicultural managers and
competitive advantage: Evidence from elite football teams. International Business
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Teusch, J., 2019. When Efficient Firms Flock Together: Merger Incentives Under Yardstick
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Yan, Y., 2019, July. Consultancy project for the employer scenario of Google. In 2019 Scientific
Conference on Management, Education and Psychology (Vol. 1, pp. 25-29). The
Academy of Engineering and Education.
Online
BT launches new products, services and skills programmes to help boost the UK’s potential.
2019. [Online]. Available through:
<https://www.btplc.com/Sharesandperformance/Financialreportingandnews/
Quarterlyresults/2019-2020/Brand/Downloads/Newsrelease/DC19-
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202BTlaunchesnewproductsservicesandskillsprogrammestohelpboosttheUKspotential.p
df>.
Welcome to Technology’s Business Briefing. 2019. [Online]. Available through:
<https://www.btplc.com/Sharesandperformance/Financialreportingandnews/
Quarterlyresults/2019-2020/Technologybusinessbriefing/Downloads/Slides/
Technology-BusinessBriefing-25June-final.pdf>.
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