Comprehensive Strategic Management Report on SingTel Company

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This report provides a comprehensive strategic analysis of Singapore Telecommunications Limited (SingTel), examining its internal and external environments through SWOT and PESTLE analyses. It delves into SingTel's competitive landscape using Porter's Five Forces, comparing it with competitors like Starhub, Telstra and M1. The report highlights SingTel's strengths, weaknesses, opportunities, and threats, alongside political, economic, social, technological, legal, and environmental factors impacting the company. Furthermore, it assesses SingTel's strategic leadership, objectives, and the implementation of triple bottom line measures for sustainability, concluding with an overview of the company's strategic position and future outlook. Desklib offers a wide array of study tools and solved assignments for students seeking to enhance their understanding of strategic management concepts.
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Running head: Strategic management
Strategic management
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Strategic management
Table of Contents
Introduction.................................................................................................................................................3
Internal and external environment of the organization................................................................................3
Competitive analysis of SingTel..................................................................................................................6
Strategic leadership and strategic direction in SingTel................................................................................8
Triple bottom line measures......................................................................................................................10
Conclusion.................................................................................................................................................12
References.................................................................................................................................................12
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Introduction
The primary purpose of this research is to outline and analyze the business functions and
operations of SingTel Company. SingTel is one of the growing and largest companies across the
world. The paper also explains that how SWOT and pestle analysis are done by the firm to
identify and analyze the risks and challenges of the market. The SWOT and pestle analysis also
helps in overcoming the competitors in the marketplace. The porter five forces analysis,
competitors and sustainability also have been discussed in the task. Along with this, the paper
also depicts that how the organization follows triple bottom line approach to maintain
sustainability within the organization. More detail of the task has been discussed below.
Singapore Telecommunications Limited is a Singaporean Telecommunications Company which
is originated in 1879.The firm operates and manages its mobile network operators in Singapore
with 4.1 million subscribers. It is a biggest corporation in the world measured by capitalization.
The firm is a leader in the integrated telecommunication company who is providing innovative
products and services in the international market. SingTel telecommunication is the largest and
leading listed Singapore companies on the Singapore exchange evaluated by capitalization. The
main mission of the firm is to be a leader in the telecommunication industry. Along with this,
SingTel wants to provide easier, faster and more reliable for the consumers by delivering
excellent values to the customers. The core values include challenger spirit, customer focus,
integrity, teamwork and personal excellence. The main objective of SingTel is to create a
sustainable and effective long term growth and to provide superior returns to the shareholders
(SingTel, 2018).
Internal and external environment of the organization
The micro and macro environment play a vital and empirical role in each and every organization
to accomplish the long term goals and objectives. It has been found that SingTel can focus on its
micro environment. It is failed to monitor on the external environment (Leng, 2014). The
organization uses SWOT and pestle analysis to evaluate and analyze the opportunities and
threats of the market. Furthermore, it also helps in attaining competitive advantages in the
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Strategic management
international market (Curwen and Whalley, 2014). The SWOT and pestle analysis for SingTel
have been detailed below.
SWOT analysis: This analysis helps the company to identify and evaluate the strengths and
weaknesses of the competitors in the competitive market.
Strengths Weaknesses
The organization uses excellent
marketing and advertisement strategy
(Coombs, 2014).
Strong and unique performance in
enterprise business.
Next generation mobile network and
regional associates (Singtel, 2018).
Rising customer base with existing base
of over 400 million customers. In this
way, the company has been able to
maintain strong position in domestic
market in Australia and Singapore
(Singtel, 2018).
High price competition in the global
market (Hui, 2012).
The company is majorly dependent on
the Singapore market and mobile
revenue and outputs are reducing in
Australian market (Singtel, 2018).
Opportunities Threats
Positive outlook can provide a great
opportunity to the company (SingTel,
2018).
Growth oriented initiatives is also an
excellent opportunity for Singtel.
3G network is growing in the global
market (Fleischmann and Srikantaiah,
2011).
The high and intense competitive
market causing a margin pressures.
Saturated market in home regions.
The strict rules and regulations also
affect the business operations and
activities adversely (Bull et al, 2016).
Pestle analysis: It is a significant analysis for the company to stay in the competitive market.
PESTLE analysis for SingTel has been discussed below.
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Political factors: It has been noted that Singapore Telecom Company is protected from the
ample of market forces and rendered with a financial support. The company faces ample of
competition when the firm stripped of this protection (Tremewan, 2016). The Singapore
government introduces and encourages competition because the government wants to prepare
Singapore Telecom to face international competition and development. This could also affect the
market share and profitability of the company. It is noted that SingTel Company locked major
customers into multiyear service agreements in the Singapore and some other countries. In this
way rules, regulations and policies have been made by the different government could also affect
the success and profitability of the firm. On the other hand, it has been noted that competition is
encountered by the Singapore government to prepare Singtel Company for the expansion and
development. All these factors affect the outcomes and progress of the firm adversely and
negatively as well (Feraco and Müller-Wittig, 2014).
Economic factors: It has been analyzed that various economic factors affect Singapore Telecom
performance and productivity. Globalization has jumped into the national boundaries this it
provides is an opportunity for the firm. The government of the country has invested huge amount
in diversifying the economy. Apart from this, business sector will also generate a good and
favorable environment to motivate and support the labor force as well as setting the financial and
legal business framework. The growth and success in various economic factors represents the
various opportunities for the company to increase business globally. It is noted that the company
need to do good preparation to gain competitive advantages in the international market (Brooks,
2016).
Social factors: It is revealed that Singapore culture is unique and effective with four primary
ethnic groups such as Indians, Eurasians, Malays and Chinese. Thus, the company can take
ample of advantages in the country. The social cultural factors include values, beliefs, custom,
aspects and attitudes of the people that might affect the progress of the firm. All these factors
present a great opportunity for the company to increase and enhance their revenue and outcomes
(André Cavalcante, 2013).
Technology factors: It is analyzed that technological factors also affect the outputs of the firm.
The company uses advanced and innovative technologies in the workplace to gain competitive
benefits in the global market. The lifestyle of the people and quality of daily operations and
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activities is having an effective and unique impact of the internet, communication technology
and social networking that have been used there. The IT infrastructure of the country is quite
unique and effective as it also has a favorable impact on the growth and development of the
country. E-commerce is also used by the company to attract and retain maximum number of
customers in the global market (Yeboah-Asiamah, Quaye and Nimako, 2016).
Legal factors: Beside the above mentioned factors, legal factors also influence the targets and
results of the firm. The government of the country thinks that growth and expansion of the
electronic commerce depends on the market favorable legislations and regulations. Specific
regulatory, legal and business settings are essential to support the economic growth and
industrial development. Along with this, the country also introduces some new e-commerce
policies. All these things will provide support to SingTel to grow and flourish the business
activities and operations worldwide. In addition, Intellectual property rights, electronic
transactions act and tax issues could also influence the efficiency and effectiveness of the
company (McNeill, 2013).
Environmental factors: It is observed that Anti pollution unit and ministry of the environment
work in order to maintain air quality and other environmental elements in the country. Pollution
and climate change is the key issues in the Singapore urban areas. It has been measured that
Singapore lost around 30% of its mangrove area. One of the significant issues for Singaporeans
is that the nation does not have enough water to support their wants, desires and needs. Along
with this, the country is dependent on the Malaysian supplied water. It is analyzed that Singapore
is a remarkable and significant country (Quah, 2013). SingTel Company should focus on the
macro environmental factors to stand out against the competitors and to maximize the returns
and profitability (Hwang, Zhao and Gay, 2013).
Competitive analysis of SingTel
The company uses porter five forces analysis to gain competitive benefits in the global market.
The porter 4 corner analysis for SingTel has been discussed below.
Competitive
analysis
SingTel Starhub Telstra M 1
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Future
objectives
The main goal of
the company is to
create a
sustainable long
term growth and to
render the superior
returns and
outcomes to the
shareholders. The
corporate culture
of the company is
unqiue and
effective. The core
values include
teamwork,
integrity, personal
excellence,
customer focus.
The favorable
culture provides
ample of benefits
to the employees.
The goal of
Starhub is to
focus on the
every person,
every business
and every home
in Singapore by
providing
effective and
unique
communication
services.
The primary
purpose of Telstra
is to create a
brilliant future for
the customers by
rendering unique
and dynamic
telecommunication
services in the
competitive
market.
The main goal of
M1 is to provide
unique
telecommunication
products and
services to the
customers. The
company is
committed for
generating an
engaging work
environment that
also a provide
support a healthy
work life
integrated lifestyle
for all the staff.
Current
strategy
The current
strategy of the
company is to
improve the
economics of core
consumers and
enterprise
business. Along
with this, the firm
It is noted that
Starhub uses
data centre
strategy to
fulfill the needs
and desires of
the customers.
The corporate
strategy is initiated
by the company to
stay in the
competitive
market.
The advertisement
strategy is initiated
by the firm to
stand out against
the rivalries. Aside
this, M1 focuses
on the
communication
and marketing
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uses digital
marketing strategy
to beat the
competitors. Team
work and
collaboration is
maintained by the
firm reduce and
prevent the risks
and challenges of
the market.
strategy to attract
more and more
clients in the
global market.
Assumptions It is assumed that
SingTel maintain a
strong and
powerful financial
position in the
local as well as
international
market. Effective
language is used
by the colleagues
to communicate
with customers.
Security and
protection also are
provided by the
company.
Integrated and
dynamic culture is
followed by the
firm. The firm
The cost
advantage and
customer
loyalty is the
main strength
of Starhub.
Unique
products are
being offered
by the firm
effectively and
successfully.
Telstra is
Australian leading
and growing
telecommunication
company who is
expanding
operating margin
quickly.
Despite prices
being very similar,
compared to
Starhub and
Singtel, the prices
of the M1 is lower.
Strong and
dynamic is
followed by the
firm to attract the
candidates towards
attainment of goals
and objectives.
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Strategic management
wants to be leader
in
telecommunication
industry by
focusing on the
activities of the
competitors.
Capabilities The financial
position of the
company is very
strong and
effective. Effective
workforce and
unique marketing
strategies are used
by Singtel at the
workplace. Chua
Sock Koong is the
CEO of the firm.
She is one of the
powerful corporate
personalities
across the world.
She is a good
leader who
believes in
mentoring.
The core
capabilities of
Starhub include
excellence,
teamwork,
creativity and
integrity. Tan
Tong Hai is
CEO of starhub
Company. He
uses
transformation
leadership to
encourage the
employees for
performing
roles and
responsibilities
effectively.
The revenue of
Telstra is approx
2710 crores AUD.
In this way, the
organization
maintains a strong
and effective
image in the minds
of the customers.
Andy Penn is the
CEO of the
company who
follows effective
leadership style to
motivate the
workers. The
organization uses
growth and
corporate level
strategies to build
and create a
dynamic image in
the marketplace.
The goodwill of
the firm is unique
and effective.
With the
deployment of 4G
network, M1 is
able to provide
support theoretical
downlink and
uplink speeds of
up to 75 Mbps and
37.5 Mbps
respectively. The
company also
provides value
added services to
the customers.
Action Although, the On the above The firm should M1 needs to focus
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/Response company is
growing its
business but still it
should take actions
towards the
fulfilling the
requirements of
the customers. It
should use new
and innovative
strategies.
mentioned
analysis it has
been found that
Starhub needs
to use some
new strategies
to hit the
competitors and
it should also
use new and
advanced
technology in
the workplace.
increase and
enhance the
performance and
productivity of the
employees and it
also differentiate
its services from
the competitiors to
cope up with
rivalries.
on the business
activities and
strategies of
SingTel and
Starhub.
Star hub is the main and biggest competitor of SingTel that is affecting the progress of the firm
adversely. Starhun Ltd is one of the three major telcos in the republic of the Singapore. It is
preventing the growth and success of Singtel Company in the country by focusing and
identifying the plans, policies and strategies in the modern world. In today’s competitive world,
Starhub is providing security solutions to protect the business against the cyber threats. The
competitor serves a inclusive suite of cyber security services to manage and handle the security
solutions to system integration and professional training services. Starhub is the first company
that uses telcocentric visibility from network to endpoint (Luiz, 2016). With Starhub’s cyber
threat intelligence, the company can quickly uncover time sensitive insights about the malicious
actors and their motivation to accomplish the goals and objectives. Starhub is an info
communication company that provides communication, information and entertainments services
in the Singapore. It has been analyzed from the various analysis that Starhub and Singtel for
Singapore’s spectrum frequencies at auction. Beside this, the organization also uses effective and
unique promotional and advertisement strategies to prevent the success and growth of SingTel
Company. It has been noted that Starhub uses hubbing strategy to strive with Singtel in the
marketplace. The customers get offers and discounts when they become a hubber in the market.
The hubbing strategy provides one stop solutions for all their mobile, entertainment and internet
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needs and requirements. This strategy reduces the churn rate and increases average revenue of
the company. Cross selling is done by the firm with the help of hubbing strategy. Hubbing
strategy is being worked excellent for the company over the last 10 years to beat the competitors
such as SingTel. Along with this, Starhub is maximizing its EBITDA ( Earnings before interest,
tax, depreciation and amortization) market share despite decline in subscriber market share.
Moreover, the firm uses diversification strategy to defend SingTel company in the competitive
market (Deng, Wang and Wang, 2017).
Strategic leadership and strategic direction in SingTel
The leadership and strategic direction are an important and effective part of SingTel Company.
Strategic direction
The strategic management at SingTel is unique and effective. The goals and objectives for
SingTel are determined by the top management and board of directors. Under the strategic
direction, the top management work towards the attainment of the desired targets and objectives.
The firm is committed to create a sustainable and long term success for the business while
shaping and leading the favorable change for the customers as well as marketplace. The
organization works together with strategic partners to take plenty of advantages in the Singapore.
The firm makes communication faster, easier and economical by breaking and preventing the
barriers of price, distance and technology. Sustainability is the core function of SingTel to attain
the corporate mission and vision. At SingTel, the top management and leaders are committed to
analyze and understand the external as well as internal drivers to stay in the competitive market
(SingTel, 2014). The top management provides right and appropriate direction to the employees
for performing roles and responsibilities. Chua Sock Koong is the CEO of SingTel company as
she is performing her roles and responsibilities in a hassle free manner. She is responsible to
conduct business activities and operations of SingTel effectively and successfully. She is also a
certified public accountant in Singapore and a CFA charter holder. It has been analyzed that
Chua Sock Koong uses democratic leadership style to make unique and effective decisions. This
leadership style helps SingTel to capture the entire market. By using democratic leadership style,
the company is able to build and sustain competitive benefits in the international market. The
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qualities of Chua Sock Koong include intelligence, honesty, creative and fairness. The pros and
cons of Chua Sock Koong leadership style include the following:
Pros
She increases subordinates commitment level and productivity in the global market.
The democratic leadership also enjoys ample of benefits of diverse opinions.
This leadership style helps in creating a strong vision and mission for the firm as well as
employees.
Cons
The delegation of authorities is quite complex.
The employees are failed to make unique decisions due to limited authorities and
responsibilities.
It is time consuming and sometimes this leadership style can appear uncertain.
The firm is committed to enhance and maximize stakeholder value. Audit committee also
provides board level oversight of the accuracy and efficiency of fraud risk management
framework, processes and policies. The company has partnered with leading and growing IT
solution providers and system integrators to render industry expertise and best services to the
customers across the world. SingTel channel partners include first tel, Malifex, Platinum partner,
Meganet PTE Ltd, Accesstech engineering PTE Ltd. In addition, the company declared plans to
deploy and develop Massive MIMO technology on its LTE advanced and unique mobile network
to increase and improve mobile data speed experience by up to 200% at particular events for its
consumers. This technology will help in boosting network capacity in a large extent. The firm is
partnering strategic vendors as a unique and effective part of the 5G exploration and expansion
programme. The company has signed a memorandum to study and analyze the future of 5G
network and it applications for both the enterprise as well as customers.
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