ACCT2127 - Telstra Corporation: Sustainability and Financials
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This report provides a comprehensive analysis of Telstra Corporation Ltd., focusing on its financial, environmental, and social performance. It examines the company's strategies for growth, shareholder value, and customer advocacy, including initiatives to improve customer service, expand online services, and offer more value to customers. The financial analysis includes a review of Telstra's income statements, balance sheets, and earnings per share (EPS), highlighting improvements in total income, EBDITA, and net profit. The report also assesses Telstra's environmental performance, focusing on its environment strategy to address environmental issues and opportunities, reduce energy consumption, and lower carbon emissions. Additionally, it discusses Telstra's social performance, including its support for people with disabilities and initiatives to address family violence. The report concludes with an assessment of whether to invest in Telstra based on its overall performance, noting its revenue-generating capacity and positive trends in sustainability and financial metrics.

Telstra Corporation
Ltd.
Ltd.
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By student name
Professor
University
Date: 27th May 2018.
[Type here]
By student name
Professor
University
Date: 27th May 2018.
[Type here]

2
Executive Summary
In this assignment, we shall discuss about the financial/ economic, sustainable and the corporate social
responsibility of Telstra. We shall come to know as to how the strategies are being planned and measures
adopted in order to attract and retain the employees. We shall see the measures adopted for the
environment conservation. The gradual increase in the income and development of Telstra shall be
graphically analysed with the help of various snapshots of the income and expenditure statements,
balance sheet, as well as the EPS. With the help of all these factors, we shall conclude whether to invest
in the company or not. If the investment made, would be profitable or would it lead to loss.
CONTENTS:
[Type here]
Executive Summary
In this assignment, we shall discuss about the financial/ economic, sustainable and the corporate social
responsibility of Telstra. We shall come to know as to how the strategies are being planned and measures
adopted in order to attract and retain the employees. We shall see the measures adopted for the
environment conservation. The gradual increase in the income and development of Telstra shall be
graphically analysed with the help of various snapshots of the income and expenditure statements,
balance sheet, as well as the EPS. With the help of all these factors, we shall conclude whether to invest
in the company or not. If the investment made, would be profitable or would it lead to loss.
CONTENTS:
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Introduction...........…………………………………………………………………..........…....4
Analysis………………………………………………………………………………………….4-15
Financial Performance………………………………………………………………...6
Environmental Performance…………………………………………………….........9
Social Performance.......................……………….........................................................13
Conclusion.......................………………....................................................................................15
References......................………………......................................................................................
Introduction
[Type here]
Introduction...........…………………………………………………………………..........…....4
Analysis………………………………………………………………………………………….4-15
Financial Performance………………………………………………………………...6
Environmental Performance…………………………………………………….........9
Social Performance.......................……………….........................................................13
Conclusion.......................………………....................................................................................15
References......................………………......................................................................................
Introduction
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Telstra Corporation Ltd. has its operation in telecommunication networks and deals in internet, mobile
phones, television, etc. It is Australia’s biggest telecommunication company. It is now has become
completely private as going through more developments to become more focused on customer with the
guidance of prior Chief Executive Officer named, David Thodey. The company has been operations since
ages and have been delivering quality performances to the client. There have been a lot of analysis
already done on the overall feasible status of the company and how they have been working to provide
the best results. We are here to discuss about the economic/ financial, social and environmental
performance of Telstra Corporation Ltd. The annual report of the company has been downloaded and
important analysis have been done (Telstra, 2016). Important points based on the environmental, financial
and social status of the company has been stated and also it has been recommended on the approach of the
investors of the company their in. We shall analyse both the annual (financial) as well as sustainable
reports to understand whether to invest in the company’s share or not.
Analysis:
Purpose: The purpose is to develop bright connected future for consumers. It is aimed to provide
them with best services at affordable prices and to improve the present status of the company by
expanding the business to other parts of the world (Alexander, 2016).
[Type here]
Strategy
The strategy is to target on growth and value adding in the
Shareholders wealth. It has 3 parts.
To improve consumer
support
To earn value and growth from
the bottom
To setup new
growth businesses
Telstra Corporation Ltd. has its operation in telecommunication networks and deals in internet, mobile
phones, television, etc. It is Australia’s biggest telecommunication company. It is now has become
completely private as going through more developments to become more focused on customer with the
guidance of prior Chief Executive Officer named, David Thodey. The company has been operations since
ages and have been delivering quality performances to the client. There have been a lot of analysis
already done on the overall feasible status of the company and how they have been working to provide
the best results. We are here to discuss about the economic/ financial, social and environmental
performance of Telstra Corporation Ltd. The annual report of the company has been downloaded and
important analysis have been done (Telstra, 2016). Important points based on the environmental, financial
and social status of the company has been stated and also it has been recommended on the approach of the
investors of the company their in. We shall analyse both the annual (financial) as well as sustainable
reports to understand whether to invest in the company’s share or not.
Analysis:
Purpose: The purpose is to develop bright connected future for consumers. It is aimed to provide
them with best services at affordable prices and to improve the present status of the company by
expanding the business to other parts of the world (Alexander, 2016).
[Type here]
Strategy
The strategy is to target on growth and value adding in the
Shareholders wealth. It has 3 parts.
To improve consumer
support
To earn value and growth from
the bottom
To setup new
growth businesses

5
Vision: The old techniques and telecommunications are clashing and the innovation of
technologies is increasing. The company aims to bring in renovation in the present strata and
improve it so that customers can take full advantage of this in times to come. Technology has
evolved so much and day by day new innovations are happening hence it is imperative that the
company must offer people more advanced services which they can use and that would lead to
better results in the future. Hence the aim is to improve the present condition of the
telecommunication services that are offered and to provide more refined services.
Improve Customer Advocacy:
To improve the customer advocacy, is the utmost priority and primary objective of Telstra. With the
provision of great services to customers, Telstra means that it shall change the perspective about the
customer thinks of us. They in turn will act like advocates and shall refer us to others as well.
Likewise the market shall prosper in the economy. The following initiatives are taken for customer
advocacy:
Improvement in customer service.
Improving the process of order.
Growth in online services
Interacting in different languages.
More value to customers.
Growing the Telstra wifi plan.
Offering of more music.
Entertaining by providing the live football passes and rewards.
Introduction of new technologies.
Always check-in with customers.
Seeking feedbacks for improvement.
[Type here]
Vision: The old techniques and telecommunications are clashing and the innovation of
technologies is increasing. The company aims to bring in renovation in the present strata and
improve it so that customers can take full advantage of this in times to come. Technology has
evolved so much and day by day new innovations are happening hence it is imperative that the
company must offer people more advanced services which they can use and that would lead to
better results in the future. Hence the aim is to improve the present condition of the
telecommunication services that are offered and to provide more refined services.
Improve Customer Advocacy:
To improve the customer advocacy, is the utmost priority and primary objective of Telstra. With the
provision of great services to customers, Telstra means that it shall change the perspective about the
customer thinks of us. They in turn will act like advocates and shall refer us to others as well.
Likewise the market shall prosper in the economy. The following initiatives are taken for customer
advocacy:
Improvement in customer service.
Improving the process of order.
Growth in online services
Interacting in different languages.
More value to customers.
Growing the Telstra wifi plan.
Offering of more music.
Entertaining by providing the live football passes and rewards.
Introduction of new technologies.
Always check-in with customers.
Seeking feedbacks for improvement.
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So, we can say based on overall analysis of the strategies of the company that they aim to improve the
current status of the technology based cellular services that are offered and to provide more refined
services that would provide faster communication for this they have developed the above plans and
strategy that would help them in achieving this in the lesser time possible and would lead to long term
growth and development on part of the customers by providing them with class services (Bromwich &
Scapens, 2016). Thus, we can say that these strategies are developed keeping in view long term gains and
long-term development and not short term development. The company has also taken help from experts
who can help them in this regard, and help them in framing strategies for the company.
Financial Performance:
This deals with the overall financials of the company based on their financial statements of the
company, on the overall net profit and taxes related to the company. The financial performance of the
company is very important, the investors depends upon this to decide whether they want to invest in the
company or not and the overall gains they are going to make from it. In this analysis the annual report of
the company has been downloaded and the overall financials have been studied to judge how much profit
the company is making, how much growth have they achieved since previous years and what are the areas
in which they need to put more effort so that in future the overall return for the company is high. This is
how this system works and it leads to provide better insights into the overall financial position of the
company with respect to its financial data (Belton, 2017).
The capital management strategy holds a clear focus for maximising the profitability of shareholders,
to maintain the finance strength, and to hold financial flexibility. It notifies that it would return up to
around $1.5 billion capital to stakeholders, forgoing a $1.2 billion of the share in market for buy back and
$250 million on-market share buy-back. The buy-backs are supposed to be financed from the excess cash
of Telstra accumulated profits.
The performance of financial in the year 2016 are:
Increment in total income of 3.6% to $27.1 billion
EBDITA lowered 0.6% to $10.5 billion.
Increment in total income of 6.3% to $28.3 billion,
Increase in EBDITA 2.6% to $11 billion and
Free cash flow resulted in $4.8 billion.
Increase in net profit post tax by 35.9% to $5.8 billion.
[Type here]
So, we can say based on overall analysis of the strategies of the company that they aim to improve the
current status of the technology based cellular services that are offered and to provide more refined
services that would provide faster communication for this they have developed the above plans and
strategy that would help them in achieving this in the lesser time possible and would lead to long term
growth and development on part of the customers by providing them with class services (Bromwich &
Scapens, 2016). Thus, we can say that these strategies are developed keeping in view long term gains and
long-term development and not short term development. The company has also taken help from experts
who can help them in this regard, and help them in framing strategies for the company.
Financial Performance:
This deals with the overall financials of the company based on their financial statements of the
company, on the overall net profit and taxes related to the company. The financial performance of the
company is very important, the investors depends upon this to decide whether they want to invest in the
company or not and the overall gains they are going to make from it. In this analysis the annual report of
the company has been downloaded and the overall financials have been studied to judge how much profit
the company is making, how much growth have they achieved since previous years and what are the areas
in which they need to put more effort so that in future the overall return for the company is high. This is
how this system works and it leads to provide better insights into the overall financial position of the
company with respect to its financial data (Belton, 2017).
The capital management strategy holds a clear focus for maximising the profitability of shareholders,
to maintain the finance strength, and to hold financial flexibility. It notifies that it would return up to
around $1.5 billion capital to stakeholders, forgoing a $1.2 billion of the share in market for buy back and
$250 million on-market share buy-back. The buy-backs are supposed to be financed from the excess cash
of Telstra accumulated profits.
The performance of financial in the year 2016 are:
Increment in total income of 3.6% to $27.1 billion
EBDITA lowered 0.6% to $10.5 billion.
Increment in total income of 6.3% to $28.3 billion,
Increase in EBDITA 2.6% to $11 billion and
Free cash flow resulted in $4.8 billion.
Increase in net profit post tax by 35.9% to $5.8 billion.
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EPS increased from 37.4% to 47.4%.
Addition of 560000 domestic retail mobile customer services and 235000 of domestic retail fixed
broadband consumers.
The subsidiary Ooyala intelligent video of $246 million got impaired.
$1.8 billion profit earned on the sale of Automobile shares.
56% reduced greenhouse gas emission intensity.
533 people with disability given employment are supported through workforce program.
58% of all customers’ services are resolved online.
$1.3 billion is invested in the mobile business (Das, 2017).
The services of network application and business grew by 14.3%.
Achieving a sustainable engagement score of 71% with 80% response from people.
Giving away more than 20k mobile phones to those women impacted by family violence.
4G services spreading and reaching to 98% population in Australia.
Dividend pay-out of 31% per share in the current year (FY16).
We have provided here a snapshot of the company’s financial position as of FY16. We also have a
comparability of the current year report with the prior year report summary of the same company. With it,
we shall have a specific picture of the data and information related to each income and expenditure
statements, the assets and liabilities of the company. Furthermore, we can also see as to how it has an
impact on the Earnings per share of the company with regards to the current year in comparison with the
prior year. We can see that the value of Current year EPS is higher than the prior year. This shows that it
is revenue generating company and investment decision in Telstra shall hold good. However, along with
the financial position and performance, we shall also consider the major parameters of social as well as
environmental performance of the company as well (Dichev, 2017).
[Type here]
EPS increased from 37.4% to 47.4%.
Addition of 560000 domestic retail mobile customer services and 235000 of domestic retail fixed
broadband consumers.
The subsidiary Ooyala intelligent video of $246 million got impaired.
$1.8 billion profit earned on the sale of Automobile shares.
56% reduced greenhouse gas emission intensity.
533 people with disability given employment are supported through workforce program.
58% of all customers’ services are resolved online.
$1.3 billion is invested in the mobile business (Das, 2017).
The services of network application and business grew by 14.3%.
Achieving a sustainable engagement score of 71% with 80% response from people.
Giving away more than 20k mobile phones to those women impacted by family violence.
4G services spreading and reaching to 98% population in Australia.
Dividend pay-out of 31% per share in the current year (FY16).
We have provided here a snapshot of the company’s financial position as of FY16. We also have a
comparability of the current year report with the prior year report summary of the same company. With it,
we shall have a specific picture of the data and information related to each income and expenditure
statements, the assets and liabilities of the company. Furthermore, we can also see as to how it has an
impact on the Earnings per share of the company with regards to the current year in comparison with the
prior year. We can see that the value of Current year EPS is higher than the prior year. This shows that it
is revenue generating company and investment decision in Telstra shall hold good. However, along with
the financial position and performance, we shall also consider the major parameters of social as well as
environmental performance of the company as well (Dichev, 2017).
[Type here]

8
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Based on the overall financial analysis it can be said that since previous years the company has shown
great amount of growth and that is visible from the overall financials of the company when we compare it
with the previous year financials of the company (Farmer, 2018). On the sustainability front also, the
company has taken effective steps and that is evident from the overall reduction in the greenhouse gases
of the company, it is also evident from the reduction of carbon emission, thus we see that the company is
trying to perform as per the energy standards that have been set as palpable and correct by authorities.
[Type here]
Based on the overall financial analysis it can be said that since previous years the company has shown
great amount of growth and that is visible from the overall financials of the company when we compare it
with the previous year financials of the company (Farmer, 2018). On the sustainability front also, the
company has taken effective steps and that is evident from the overall reduction in the greenhouse gases
of the company, it is also evident from the reduction of carbon emission, thus we see that the company is
trying to perform as per the energy standards that have been set as palpable and correct by authorities.
[Type here]
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This has effect on the financials of the company. The overall share prices of the company have improved
and thus investors have
A great deal based on which they can invest in the financials of the company and that can earn them huge
returns.
Environmental Performance:
Environment Strategy:
The environment strategy lays down the solution for how to address all the issues related to environment
and its opportunities. This strategy aims to enhance the performance of environment for the operations
and the shareholders to the whole value chain. The Telstra’s strategy has 3 focus. These are:
1. Environmental Consumer Value Hypothesis:
Evaluating the quantity and educating how the services and products can make the customers to reduce
the effect on environment, specially the energy consumption, and carbon emissions. This will help in
understanding what are the main reasons because of which emissions are happening in the environment
and how they can reduce it. It is important to find the source and then only efforts can be taken which can
help the management of the company, and then customers can be educated to reduce energy emission
from those sources as those would help them in getting a sustainable environment (Farmer, 2018).
2. Excelling in Operations:
Staying super active in locating and lowering the huge environmental impacts and the costs related to
operation of the businesses. This will help in putting the framed strategies to operations and that would be
helpful in the long run, as that would help in reducing cost and generating operational results. For this
proper budgeting needs to be done, experts need to be hired who have good knowledge about this matter
and then applying them so that all of these operations can begin for long term results (Goldmann, 2016).
3. Sustainable Supply Chain:
[Type here]
This has effect on the financials of the company. The overall share prices of the company have improved
and thus investors have
A great deal based on which they can invest in the financials of the company and that can earn them huge
returns.
Environmental Performance:
Environment Strategy:
The environment strategy lays down the solution for how to address all the issues related to environment
and its opportunities. This strategy aims to enhance the performance of environment for the operations
and the shareholders to the whole value chain. The Telstra’s strategy has 3 focus. These are:
1. Environmental Consumer Value Hypothesis:
Evaluating the quantity and educating how the services and products can make the customers to reduce
the effect on environment, specially the energy consumption, and carbon emissions. This will help in
understanding what are the main reasons because of which emissions are happening in the environment
and how they can reduce it. It is important to find the source and then only efforts can be taken which can
help the management of the company, and then customers can be educated to reduce energy emission
from those sources as those would help them in getting a sustainable environment (Farmer, 2018).
2. Excelling in Operations:
Staying super active in locating and lowering the huge environmental impacts and the costs related to
operation of the businesses. This will help in putting the framed strategies to operations and that would be
helpful in the long run, as that would help in reducing cost and generating operational results. For this
proper budgeting needs to be done, experts need to be hired who have good knowledge about this matter
and then applying them so that all of these operations can begin for long term results (Goldmann, 2016).
3. Sustainable Supply Chain:
[Type here]

11
Joining hands with suppliers and making them to lessen the major impact affecting the society and
environment, with the products and services provided by them to the Telstra. This is a very important step
this will help the company in getting help from suppliers who can help them in creating such products and
taking such steps that would help them in reducing the overall emission of gases and providing quality
products to the customers (Telstra, 2016). This supply management is a very important task, developing a
connection with the suppliers and getting them to deliver what the management really requires is
important for the long-term success of the company and will help to reach to their goals in the best ways
possible. Experts can be appointed who can help the management in managing these supply chains and
regulate them effectively.
Environmental Customer Value Proposition:
a. Designing and Developing of Green product:
To embed into the designing and development of current products and services all of the environment
consciousness. It is important that all products that are build should match up to the environmental
standards and should be in that limit as set by the environmental authorities and it should not lead to too
much emission of gases and other harmful gases in the environment.
b. Awareness of the benefit of environment of ICT:
It relates to communicating the advantages to environment with the goods and services that is being sold.
The customers should know what they are using and how much harm can it cause to the environment to
which it is being served and how they should use it so that in future it will lead to sustainable use and
protect the environment from all kind of harms. Awareness should be spread so that the customers are
aware about the steps that the company is taking to protect the environment from all kind of harms.
c. Innovating the environment:
It helps in introducing new products and services that leads to the advantage of environment. The
company needs to make use of technology to see how they can reduce the harmful effect on the
environment, develop new strategies that would help them in the long run to protect the environment. For
this the company needs to do a lot of research and innovation and make use of the resources that they
have to deliver the customers the best products which is both environment friendly and as per the needs of
the people who are using it (Kuhn & Morris, 2016).
d. Advantages of cloud to the environment:
[Type here]
Joining hands with suppliers and making them to lessen the major impact affecting the society and
environment, with the products and services provided by them to the Telstra. This is a very important step
this will help the company in getting help from suppliers who can help them in creating such products and
taking such steps that would help them in reducing the overall emission of gases and providing quality
products to the customers (Telstra, 2016). This supply management is a very important task, developing a
connection with the suppliers and getting them to deliver what the management really requires is
important for the long-term success of the company and will help to reach to their goals in the best ways
possible. Experts can be appointed who can help the management in managing these supply chains and
regulate them effectively.
Environmental Customer Value Proposition:
a. Designing and Developing of Green product:
To embed into the designing and development of current products and services all of the environment
consciousness. It is important that all products that are build should match up to the environmental
standards and should be in that limit as set by the environmental authorities and it should not lead to too
much emission of gases and other harmful gases in the environment.
b. Awareness of the benefit of environment of ICT:
It relates to communicating the advantages to environment with the goods and services that is being sold.
The customers should know what they are using and how much harm can it cause to the environment to
which it is being served and how they should use it so that in future it will lead to sustainable use and
protect the environment from all kind of harms. Awareness should be spread so that the customers are
aware about the steps that the company is taking to protect the environment from all kind of harms.
c. Innovating the environment:
It helps in introducing new products and services that leads to the advantage of environment. The
company needs to make use of technology to see how they can reduce the harmful effect on the
environment, develop new strategies that would help them in the long run to protect the environment. For
this the company needs to do a lot of research and innovation and make use of the resources that they
have to deliver the customers the best products which is both environment friendly and as per the needs of
the people who are using it (Kuhn & Morris, 2016).
d. Advantages of cloud to the environment:
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