Analysis of Corporate Communication Strategies: Telstra's Report

This report provides a comprehensive analysis of Telstra's corporate communication strategies, focusing on environmental scanning, SWOT and PEST analyses, and stakeholder relationships. It examines Telstra's internal and external communication, assessing its effectiveness in managing relationships with stakeholders and the public. The report delves into industry, communication, and reputation issues, evaluating Telstra's capabilities in undertaking effective communication. It highlights the importance of communication in organizational management, emphasizing feedback mechanisms and the adaptation of strategies to maintain a competitive market position. The report also discusses Telstra's corporate social responsibility and aims to identify areas for improvement in its communication processes, ultimately contributing to the company's growth and sustainability.

Running head: CORPORATE COMMUNICATION
CORPORATE COMMUNICATION
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Executive Summary
The report aims at understanding the environmental issues that is being faced by the
telecommunication organization, Telstra. The report helps in analyzing the state of the
stakeholders and thereby determines the position of the company. The report incorporates in
itself the situation analysis of the company and the communication strategy that is being
undertaken by the organization in order to maintain a good relation with the stakeholders of
the company. The aims and objectives of the company is also being widely discussed in
regards to the corporate social responsibility of the company. The main purpose of
undertaking this analysis is to understand the communication procedure undertaken by the
company in order to maintain healthy mutual relationship with the stakeholders and the
public.

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Table of Contents
1 Introduction.............................................................................................................................3
2 Environmental scanning to identify and respond to issues and opportunities........................4
SWOT analysis.......................................................................................................................5
PEST analysis.........................................................................................................................6
Differences between industry, communication and reputation issues...................................8
3 Analysis of the organization....................................................................................................9
External communication undertaken by the company.........................................................10
Internal communication undertaken by the company..........................................................12
4 Analysis of the stakeholders of the company........................................................................15
5 Relationship with the stakeholders and the publics..............................................................19
6 Evaluation of the company’s capabilities of undertaking effective communication............21
References................................................................................................................................23
Appendix..................................................................................................................................29

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1 Introduction
The growth of the multinational companies in order to support the needs and
requirements depending on the change and preference patterns of the consumers is increasing
perpetually. The modernization has brought about a change along with itself. The
consumerism and the demand for the new products, depending on the advancement of
technology, is an important phenomenon that is being considered by the organizations. In
order to sustain the market of the products the companies must integrate the management
systems by undertaking communication, which is effective (Albini, 2013). Communication
strategies help in the effective maintenance of the management systems that is being
undertaken by the organizations. The effective communication helps in making the people
work in an integrated manner, which again helps in maintaining the smooth functioning of
the systems of the business.
The discussion helps in understanding the influences of the communication in the
management processes of an established company. The management of the company largely
depends on the media of the communication that is being used by the company in order to
make use of the integrated approach that the company has. The telecommunication company
Telstra is basically into market since the few decades and is one of the top communication
providers in Australia. in order to retain its position in the market, the organization must takes
steps to improve the internal communication that helps in undertaking the proper
management process (Amran, Lee & Devi, 2014). Communication is being considered as the
backbone of the management. Therefore, the lack of proper communication might lead to
issues that might affect the smooth functioning of the organization. This report aims at
discussing the communication patterns that is being taken by the concerned company and the

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relationship that the company holds with its stakeholders- both internal and external (Ulrich
& Sarasin, 2012).
The main purpose of this report is to identify the importance of the communication
and thereby take steps in order to make improvements on the same. The report aims at
analyzing the stakeholders of the concerned company and the relation that the company holds
with the stakeholders and the public at large. It helps in understanding the company’s
credentials and the credibility of the company in maintaining a sound communication system
for its gradual improvement and growth. The communication strategies undertaken by the
company is also enumerated which states the reputation of the company in this competitive
market.
2 Environmental scanning to identify and respond to issues and opportunities
The environmental scanning of Telstra is done to assess the strengths, weaknesses,
opportunities and threats of the company and ensure successful business functioning with
ease and effectiveness. Telstra is a telecommunications company specialized in media and
telecommunications services. It develops world-class telecommunication networks and even
allows for marketing of voices, mobile, enabling internet accessibility along with
entertainment products and services for fulfilling the needs and requirements of the customers
with ease and effectiveness (Argenti, 2015). The environmental scanning is done with the
help of SWOT analysis and PESTLE analysis. It is essential for assessing the internal and
external environmental factors that can contribute to the organizational efficiency and even
may result in creating severe issues and complexities.
There are various stakeholders involved such as the suppliers, customers, managers,
employees and even the Government of Australia. The company to analyse its internal
environment considering the strengths and weaknesses of the company whereas the

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identification of opportunities and threats are part of the external analysis uses the SWOT
analysis (Wrisberg et al., 2012). By performing the environmental scanning, it has become
easier for Telstra to identify the gaps in expectations of customers and furthermore evaluate
the opportunities to create something new for the fulfillment of customers’ needs and
preferences (Babatunde & Adebisi, 2012).
SWOT analysis
Telstra is one of the major established telecommunications and information services
company that has a wide range of service portfolio. Due to this, most of the customers, i.e.,
the most important stakeholders have been satisfied and this has enabled the company to
obtain a huge customer base as well. The company holds active sponsorship with popular
sporting events, because of which, it has a strong brand image and name and more than
35000 employees’ preferences have been fulfilled from more than 230 countries. The
weaknesses of the company include limited liquidity position that has resulted in creating
gaps for the stakeholders who have been purchasing the products and services at a much
higher cost (Fabbe-Costes et al., 2014). The market share is also limited due to the extremely
tough market segment. Limited market share resulted in reaching lesser numbers of
customers, which has further created issues in generating good amount of sales revenue as
well. Due to inappropriate customers’ service and latency issues, the customers’ needs will
remain unfulfilled and there will be gaps in their expectations too (Albini, 2013).
The external analysis includes identifying the opportunities and threats faced by the
company and the issues that have created gaps in expectations of the stakeholders. The
strategic growth initiatives have helped in managing international expansion while the
increased demands for telecommunication services has resulted in attracting more customers
and influencing their buying behaviors too. The IT services market has been increasing
consistently and with the launch of 4G mobile broadband network, Telstra has met the

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expectations of the customers (Martin & Burke, 2012). The suppliers’ needs and preferences
were also fulfilled because of the raw materials, supplies and other networking components
delivered to enhance the efficacy of manufacturing and production processes. The threats are
rapid changes in technology, rules and regulations of stringent and high level of competition
within the business environment, which has created complexities and even may make the
company unable to meet up to the expectations of the customers. With the increase in
competition level, the company might face other issues as well like delivery of similar kinds
of products and services offered by another company at lesser prices (Telstra.com.au, 2017).
This would make the customers more inclined towards those products rather than focus on
the products and services delivered by Telstra, Australia.
PEST analysis
The external business environment is scanned with the help of PEST analysis for
identifying the various political, economic, social, technological, legal and environmental
factors that can create an impact on the organization both positively and negatively. This kind
of environmental scanning tool helps in determining the impact of Government, which has
OpportunitiesStrategicgrowthinitiativeshavehelpedinmanaginginternationalexpansion.Launchof4GThreatsImmensecompetitiveenvironmentwithrivalslikeVodafone.AvaiabilityofbetterservicesatreasonablepricesSWOTanalysis

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changed the policies and procedures in taxation schemes for enabling privatization of various
bodies and improving the industry structure too. The Government has managed to overcome
the taxation issues and managed privatization of the organization to enter a competitive
business environment. The intellectual properties like patents, trademarks and copyrights are
protected so that these cannot be imitated by other organizations (Argenti, 2015). The trade
regulations and wage legislation have helped in maintaining the safety rules within the
industry.
The economic factors that created an impact on Telstra included intervention of
Government, skilled workers within the workforce, high rate of unemployment and rise in
inflation rate along with high labor costs. The Government intervention has helped in keeping
a skilled workforce consisting of employees who possess relevant skills, knowledge and
expertise to perform to their potential. This is done for providing the right amounts of wages
to the employees and keeps them satisfied, because they are also considered as one of the
most important stakeholders in business. One of the industry issues here could be the rise in
cost of products due to high inflation rate while communication issues were faced when the
workers of Telstra faced communication barriers due to cultural differences (Wrisberg et al.,
2012). The community is also benefited because the company has provided employment
opportunities to vast numbers of individuals.
The social factors include the demographics, education opportunities, culture,
attitudes and behaviors of people within the company. Telstra, being an Australian company
can also expand its business in other countries. The scope that the company has of expansion
is based on the policies and the adaptability of the organization. This would make the
managers of Telstra motivate the employees and help them to gain entrepreneurial spirit.

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The technological factors were related to the cost of implementing advanced
technologies for enhancing the production process efficiency and create a positive impact on
the cost structure and value chain structure as well (Babatunde & Adebisi, 2012). This would
meet the expectations of employees and allow them to work much more efficiently to bring
positive outcomes.
Differences between industry, communication and reputation issues
Industry issues were the stakeholders’ trust and brand image that were damaged due
to the lack of good relationship between the regulatory bodies and Telstra. Due o immense
competition Vodafone and other rivals in business, Telstra’s operations were inconvenient
and the customers’ services had also been not up to the expectations of the customers (Roper
& Fill, 2012).
Communication issues were faced while adapting a new culture of the place where the
organization wants to expand its business. Lack of communication between workers
deteriorated the organizational performance, furthermore leading to services’ degradation
PEST

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because of latency issues and operational ineffectiveness. The lack of proper customers’
services also prevented good relationships between the customers and business.
Reputation issues were faced when the company’s telecommunication and networking
services were not up to the mark, though the prices were higher as well. The saturated mobile
market and rapid change in technologies had also created many issues that not only hindered
the accomplishment of business goals and objectives but also resulted in bad brand image and
reputation (Martin & Burke, 2012). It was worse when the bad reputation of Telstra created
negative mindset among people and the sales revenue declined as well.
3 Analysis of the organization
Communication is the basis of every organization’s success in the current market.
Proper communication helps in avoiding situations that might affect the workforce thereby
affecting the progress of the organization. The company that is striving to prosper in the
respective fields must take care of communication. Communication helps the organization in
modifying and upgrading the standards and therefore helps ion surviving the market structure
that is ever changing. The fundamentals of undertaking a good communication process
depend on the feedback that is being received by the organization. The actions taken by the
organizations in order to modify the structure as per the requirements of the feedback is the
basic step that every organization must consider.
The internal and the external communications of a company plays an important role in
undertaking the proper management of the organizations. The internal communication
enables the company in understanding the requirements of the people working for the
company. It helps the management in understanding the requirements of the workforce and
thereby makes decisions accordingly. Every organization runs on the human resource,

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therefore in order to facilitate the smooth functioning of the organization, better internal
communication procedures must be undertaken.
On the other hand, external communication is also an important consideration that
must be undertaken by the company in order to understand the requirements of the
consumers, through their feedbacks, and thereby modify the products accordingly. The
stakeholders of the company also hold an important position in the progress of the company.
They hold certain expectations from the company. Proper communication processes must be
undertaken by the company in order to facilitate the free flow of information. The most
important consideration that is being undertaken by the company in order to facilitate the
growth and expansion of the company is based on the proper channels of communication.
The channels of communication play a major role in the transmission of the information to
the internal and the external stakeholders and the general public. The methods determine the
effectiveness of the communication. The choice of the channel depends on the type of
information that is being transmitted to the people at large.
The communication strategies that is being undertaken by the concerned company,
Telstra, in order to undertake the effective communication is being discussed in this section
of the report.
External communication undertaken by the company
The external communication that is being undertaken by the company depends on the
type of the information that is being transmitted and the audience. The company sends off the
annual report to the stakeholders and the clients in order to make them aware of the situation
of the company in the market (Refer to Appendice 3). Moreover, the company also transmits
general information to the public in order to make them aware of the company’s new
launches and the change in the schemes. The methods and the channels that is being

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undertaken by the company in transmitting the information differs according to the
requirements of the audience. Therefore, the company adheres to the communication
channels accordingly to suit the purpose of the message that is being transmitted.
The concerned company makes use of the following channels in order to transmit the
information externally:
Website
The formulation of the website plays an important role in making the people aware of
the product and guarantees the authenticity of the organization. a registered organization must
have an website in order to transmit the information. It is considered as a mass media
platform, which enables the people, visiting the site, to have a clear understanding of the
situation of the organization and the type or range of products that is being manufactured. It
works as an online media of advertising the capabilities of the company (Andzulis,
Panagopoulos & Rapp, 2012).
The concerned company for this report maintains a website where the company
publishes its annual report for making the people aware of the economic condition of the
company and therefore makes a statement of its achievements. The company also aims at
making its stakeholders aware of the progress that is being made by the company in order to
comply with the expectations that they have from the organization. Moreover, the company
publishing the annual report helps the consumers in justifying the superior position that the
company holds in the market. It therefore helps the consumers in making a choice of buying
the products or the services given out by the company. Most of the information about the
undertakings of the business is being covered by their corporate website, which aims at
providing detailed information on the company. Telstra being a telecommunication
manufacturing company adheres to the upgrading of the systems based on the change in the