Management Analysis Report: 2Degrees Mobile Company Operations

This report offers a comprehensive management analysis of 2Degrees Mobile, a telecommunications company operating in New Zealand. It begins with an introduction to the company and its services, followed by an examination of the external environmental factors impacting the business, including economic, technological, political/legal, global, and sociocultural influences. The report then delves into the company's organizational culture, highlighting its values and impact on employee performance. The analysis extends to the company's structure, differentiating between mechanistic and organic models, centralized versus decentralized decision-making, and hierarchical structures. The report also addresses the span of control within 2degrees and explores potential organizational structures, such as functional and divisional structures, while examining the advantages of each. The report discusses leadership styles, stakeholder relationships, and sustainable business practices, including ethical considerations. The report concludes by summarizing the key findings and offering insights into 2degrees' management strategies and operations.

Management
2Degrees Company
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Management 1
Contents
Introduction......................................................................................................................................3
External Environments................................................................................................................4
Organisational culture......................................................................................................................6
Culture is shown in the organisation...........................................................................................6
Learn the culture of an organisation............................................................................................6
Culture impacts on the performance of the company..................................................................7
Organisation’s structure...................................................................................................................7
Mechanistic or organic................................................................................................................7
Centralised or decentralised.........................................................................................................9
Hierarchical and departmentalised..............................................................................................9
The span of control....................................................................................................................10
Structures.......................................................................................................................................10
Possible structures.....................................................................................................................10
Mechanistic structure.................................................................................................................11
The span of control....................................................................................................................12
Advantages of a centralised structure and decentralised structure............................................12
Leadership and stakeholders..........................................................................................................13
Sustainable business practice.....................................................................................................13
Payment of Government officials is an ethical issue.................................................................14

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Conclusion.....................................................................................................................................15
References......................................................................................................................................16

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Introduction
The aim of the report is to analyse the company that is currently operating their business in the
market of New Zealand. The company that has been selected for the analysis of different terms
of management is 2degrees. Two Degrees Mobile Limited is one of the well-known companies
in New Zealand who offer the full-service telecommunication services. In the year 2001 Tex
Edwards founded the company by offering the initial capital (2degrees mobile, 2018). The major
services which are offered by the company include prepaid and pay-monthly mobile services
with a fixed line phone and broadband services. Further, the paper includes the analysis related
to the company and its operations in New Zealand.

Management 4
External Environments
The analysis of the external environment factors that affect the company includes general as well
as the specific environment.
General
environmental factors
Description
Economic GDP of New Zealand has increased by 1% in the second quarter of
2018 comparing it with the year 2017 (Country economy, 2018). This
growth in GDP brings the rise in purchasing power which leads to a
rise in sales of the company. Thus, 2Degrees will be able to earn a
good amount of profit.
Technological The change in the technology is one of the threats for the company as
the competitor can bring the change in their products and services by
offering innovative products with the use of technology (2degrees
mobile, 2018).
Political/Legal New Zealand is political stable due to which 2degrees can’t face the
frequent changes. Though, the company need to take of legal
obligations such as tax, safety regulations, and many others.
Global The 2degrees have numerous opportunity and threats that are present
in the global market. These opportunities include expansion, mergers
and other. In addition, the threats include the high competition and
change in trends.
Sociocultural The change in customer preference can affect customers. Presently,
more of the customers have been shifted towards the Wi-fi networks

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which have reduced the need for broadband. Further, mobile users are
increasing which leads to a rise in demand of the company.
Specific environment
Customers The demands of the mobile services are increasing which leads to the
rise in demand of services offered by 2degree.
Suppliers The company don’t need to get in touch with the supplier as 2degree
itself offers the services throughout New Zealand. Though, the
company need to spend more amounts for which they need to be
financially capable which will help them to offer products in the entire
market (Baker, 2014).
Competitors 2Degrees faces tough competition from different international
companies which include Spark, Vodafone, M2 and many others.
Regulators The regulator of the industry can make changes in the way of working
and prices of services. This can directly create an effect on the
working and profit of the company.
Interest groups The interest groups can include media, stakeholders and many others
that can influence the working as they are the one who has an interest
in the operations of the company.
Strategic partners 2degrees is an important partner for chorus with the motive of
delighted to secure the multi-year contract for their national backhaul
requirement. The strategic partner and services of chorus might get
affected due to the conflicts (2degrees mobile, 2018).
Employees, labour The employees of the company appreciate the workplace culture as it

Management 6
markets and unions includes the different opportunities and effective place to work, this is
favourable for 2degrees company
Organisational culture
Organisational culture reflects the collective beliefs, values and principles of the organisation
member (Elsmore, 2017). The company believes that the organisation culture contributes to the
unique social and psychological environment related to the business. The 2degrees company is
one of the value-based organisation and this is the reason that the staff of the company sincerely
personifies the values. The company maintain the values of simplicity, devotion and passion. All
these values are integrity in the employees and make the environment effective (2degrees
mobile, 2014).
Culture is shown in the organisation
The company place focuses on understanding and offering the best interests to the people which
include their customers and staffs who are equally valued. Being the part of the corporate
culture, an awards night is held by the company on yearly basis (Indian Newslink, 2017).
Learn the culture of an organisation
The award nights offer an opportunity to the staff to excelled in the values and go beyond their
work. This reflects the way through which the company can learn the culture of the organisation
and this also tends to match perfectly own values in the work environment (Indian Newslink,
2017). Along with this, the young new employees of the company motivate the other senior
employees to work with full dedication and passion.

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Culture impacts the performance of the company
The culture of the company directly affects the performance as the positive culture makes the
employees to remain with them and to work with full dedication. The values of the company
help the company to meet their personal objectives which makes them retain in the company.
The retention of employees in the company contributes in improving the performance (Anitha,
2016). For 2degrees the culture of the company motivates the employees to offer the customer
delight and growth which is the target of the company.
Organisation’s structure
An organizational structure is referred to as the system that is majorly used to define a hierarchy
within the organization (Babnik, Breznik, Dermol & Trunk Širca, 2014). 2degrees organizational
structure analysis is given below: -
Mechanistic or organic
The mechanistic organisation structure is pyramid shaped with the authority centralised at the
top. Contrasting this, organic organisation structure is flat shaped with the authority decentralised
to the lower level (Maduenyi, Oke, Fadeyi & Ajagbe, 2015). The chosen company make use of
the mechanistic organisational structure. The reason due to which the company follow the
structure is the intense separation of the labour and work into different specialised tasks. A task
within the organisation is performed according to the position in 2degrees. This structure is
effective for the companies who are operating their business in a stable environment.

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(Source: 2degrees mobile, 2018)
The image given above reflects the team of the 2degrees that are involved in the structure of the
company. The team handle the different specialist who works under them which shows that there
is Mechanistic structure.

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Centralised or decentralised
Centralisations refer to as the hierarchical level in which the organisation has the authority to
form the decision on their own. Decentralisation takes place when they delegate the decision-
making ability to the lower organisational levels (Pollitt, Birchall & Putman, 2016). 2Degrees
makes use of the centralisation decision making the hierarchical level as they make their own
decisions. The major features of this level are that decisions are made keeping the customer in
mind instead of the self-interest. The decisions of the company help them to respond in the
market. This is the way through which the other low-level executives can learn. This level
related to the company due to their effective decision company won the multiple customer
satisfaction levels which include- The Canstar Blue; the award for the ‘most satisfied customers-
mobile phone providers’ for continuous 3 years.
Hierarchical and departmentalised
Hierarchical is the flow of power vertically and upwards with the employees who remain
departmentalization. Departmentalization refers to as the process related to the grouping
activities into different departments. In this, all the employees implement the chain of command
(Pollitt, Birchall & Putman, 2016). 2degrees Company follow both vertically and upwards flow
of power in which they communicate and transfer the responsibility to the employees which
include the vertical flow. Further, the employees share the feedback and this offer the chance to
the manager to improve the skills. 2degrees Company has different departments who perform
various job responsibilities which include talent sourcing, marketing team, payroll accountant
team, store management team and many others. These departments are currently present in
2degrees company with this these departments are performing their obligations effectively.

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Span of control
In the 2degrees company, there is generally present of the narrow spans of control because the
company follows the mechanistic model which has limited managers under the particular
department (Chen, 2017). In addition, the company might have wide spans of control in the
various parts of the organisation. The narrow spans of control are suitable for the company as
this is the only way through which every department can make their own decisions. Though, the
wide span of the control in 2degrees Company can lead to the complexity. In-depth analysis of
the company reflects that the HR department of the company make use of the wide span of
control because it includes the decision of the candidate for different departments. Thus, the HR
needs to involve different managers while making the decisions.
Structures
Possible structures
The two possible structures that the company should make use include Functional and
Divisional.
 Functional structure divides the company on the basis of speciality into departments
which include sales department, marketing department and customer service department
and other. The reason behind selecting the functional structure is that 2degrees Company
includes different departments who are performing the functions due to which this
structure suits the best (Alton, 2018).

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Benefit: - The structure offers the benefits to the company as the employees become
dedicated to perform the single function. There will be no confusion related to the roles
and expectation of the employees.
 Divisional structure refers to as companies structure considering the different products or
projects. The company is planning to expand their services and their stores at different
places. This makes them make use of the divisional structure in the near future due to
which this structure has been selected (Alton, 2018).
Benefit: - The divisional structure supports the company to organise the activities of the
business around the geographical, market or product and service groups. The company
can keep the functions of different products separately which is essential for the proper
management and this is possible because of the divisional structure.
Mechanistic structure
In the mechanistic structure, the structure always remains in the pyramid-shaped with the
authority at the top. The structure creates an impact on the management practices of the
company. The structure remains highly formalized which shows that all the procedures and
processes are authorized in an effective manner (Maduenyi, Oke, Fadeyi & Ajagbe, 2015). This
structure helps the company to increase the efficiency which is considered as one of the
important management practices. There is the way of having the standardized flow of authority
applied to the employees who include the motivational foundation, rise in productivity of
department, and accomplishment of goals. This shows that the structure helps in engaging the
customers which is one of the management practices. While communicating the team, this
structure helps the company to conduct the regular meetings.