Strategic Operations Management Analysis: Telstra Corporation

This report provides a comprehensive analysis of Telstra's operations management. It begins with a background of Telstra and then explores its value chain, highlighting pre and post-activities. The report examines how value chain design can improve operational activities and how Telstra's operations strategy responds to current trends. It also discusses Telstra's competitive strategies and challenges associated with the organization. The analysis includes Hill's Strategy Development Framework and a scope of business performance measurement, covering finance, operations, strategy, product design, forecasting, and supply chain configuration. The report emphasizes the importance of operational strategy in achieving business excellence and provides insights into process types, supply chain integration, capabilities, facilities, and inventory management. This detailed examination offers valuable insights into Telstra's operational approach and strategic decision-making processes.

Running head: Operations management
Operations Management
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Operations management
Contents
Background of Telstra.....................................................................................................................3
Value Chain of Telstra.................................................................................................................3
Pre-Activities...............................................................................................................................4
Post Activities..............................................................................................................................4
Value chain design can help Telstra to improve operational activities...........................................5
Telstra operations strategy best responds to current trend...............................................................6
Telstra manage its operational activities to stay competitive......................................................6
Challenges associated with the organization in the near future...................................................7
Hill’s Strategy Development Framework to Telstra........................................................................8
Develop the scope of business performance measurement for an organization to monitor the
effectiveness and efficiency in operations.....................................................................................10
Finance...................................................................................................................................10
Operation...............................................................................................................................10
Strategy..................................................................................................................................10
Design of the product.............................................................................................................11
Forecasting.............................................................................................................................11
Supply Chain Configuration..................................................................................................11
References......................................................................................................................................12
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Operations management
Organization Selected: Internet Service Provider: Telstra
Background of Telstra
Telstra is Australia's biggest telecommunications corporation. Its main products include telecom
services such as voice, data and pay TV. Telstra has considerable influence in Australia through
acquisitions and premium service delivery. The company has over 50% market share in
Australia. The company also paid overseas fees. It has been on the European market since 1992
and has been providing voice and data services to its customers. The mobile phone market is
huge and growing. As a result, the telecommunications services market is also growing. This
opens up a huge opportunity for Telstra's cross-border sale. The company has partnered with a
number of companies and has expanded to the US, India, Hong Kong, China, and Singapore. The
company will primarily cooperate, joint ventures and acquisitions as a global entry strategy.
Value chain paradigms and perspectives of Telstra
The mobile phone market is huge and growing. As a result, the telecommunications services
market is also growing. This opens up a huge opportunity for Telstra's cross-border sale. The
company has partnered with a number of companies and has expanded to the US, India, Hong
Kong, China, and Singapore. The company will primarily cooperate, joint ventures and
acquisitions as a global entry strategy (Aggarwal & Singh, 2014).
Value Chain of Telstra
Telstra's main goal is to provide customers with the best telecommunications services and to
meet their satisfaction. The company's value chain design is as follows;
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Pre-Activities
Input Marketing & Sales
Policy
Administration
Output
Software provider
Certificates
Network infrastructure
Advertising
Target Markets
Sturdy distribution
channels
Confidentiality and
user strategy
Transaction
Payments
VAS
Mobile internet
Broadband
Call services
Post Activities
Source: self Created
Both of the above figures show the value chain activities of the Telstra organization. It includes
major activities such as; input, marketing, sales, and output. The company's support activities are
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very effective and assist the company. If the organization effectively implements all activities, it
will be able to make a profit in a competitive environment. These activities are good for Telstra.
Value chain design can help Telstra to improve operational activities
It is recommended that Telstra introduce the Michael Porter paradigm named as a value chain
model that is utilized as an assessment tool for companies that want to understand how
companies are tactically positioned between buyers, suppliers, future competitors, and
governments. Porter said that the competition benefits could not be confirmed only by observing
the company as a whole. The model does various activities, for example, marketing, production,
support, design, and delivery. This model supports the Telstra company search for the actual
operations performed by business unit (Al-Shammari& Al-Faqir, 2017). This model supports
companies to describe their connections to external buyers. This model helps companies to map
exchange processes outside and inside the organization. This model supports companies to
identify the basic actions of strategic achievement. The model helps identify resource allocations
and allocates resources through perspectives and contributes tasks to tactical directions. In
Telstra's case, it is believed that the company does not have enough infrastructures to provide
adequate services for its mobile services telephone Internet customers and fixed line services.
According to analysis, the model supports the organization to properly form the infrastructure to
fully provide mobile, fixed line and telephone Internet services. In general, infrastructure
activities include and are driven by strategy and business planning. Conversely, this activity
consists of MIS as well as other planning and control processes, such as the influence of the
accounting department Telstra beyond our own operations, so our economic, social and
environmental impacts are also true. So, we have a broad understanding of how we create value
for businesses and stakeholders (Bourk, 2013).
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Operations management
Telstra's influence is beyond our own operations, so our economic, social and environmental
impacts are also true. Therefore, we have a broad view of how to create value for our business
and stakeholders (Eldor, 2019).
Telstra operations strategy best responds to current trend
Telstra manage its operational activities to stay competitive
As a leading leader in the Australian telecommunications industry, the organization is well aware
of the needs of its customers. Telstra has redesigned incentive systems and profit sharing to
improve service quality by increasing productivity. Through this new system, the company's
technical staff can understand their tasks and responsibilities. This company's operational
strategy is very effective in maintaining competitiveness in today's business environment.
Telstra's competitive priorities are to provide better network access and provide
telecommunications services at competitive prices (Gerrand, 2017).
Telstra has developed a new strategy to improve the customer experience, simplify the
structure and reduce costs
 A fundamental shift in customer planning and pricing to provide an improved customer
experience
 By the 22nd fiscal year, our productivity proposal will further rise by 1 billion to 2.5 billion
US dollars
 A net decrease of 8,000 contractors and employees, reducing 2-4 levels of management
 Monetize up to $2 billion in the assets over the next 2 years to reinforce balance sheets
 Telstra maintains a premium brand and leads and wins 5G
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 The FY19 EBITDA Guidelines are expected to be between US$8.7 and US$9.4 billion,
excluding restructuring costs of around US$600 million.
The strategy, called Telstra 2022, has four important pillars: radically simplifying our products,
eliminating purchaser pain points as well as creating entire digital experiences to build a separate
infrastructure business to propel performance and build options afterwards deployment greatly
simplifying our structure and functioning methods provide industry-leading cost saving planning
as well as portfolio management for industry-leading cost reduction planning and portfolio
management(Kohnen, 2012). These changes outline a three-year proposal based on Telstra's
strategic investment declared in 2016.
Challenges associated with the organization in the near future
Telstra Innovation defy is an IoT hackathon that began in the year 2017. For the 2019 Telstra
Innovation Challenge, we will work with diverse industry associates to design novel challenges
to test the skills and imagination of all opposing teams. This time, we are working with the
Linfox to become our challenge partner (Makanyeza&Mumiriki, 2016). 2019 defy will
emphasize on logistics and transportation, and the industry always wants to gain advantage from
new technologies and innovations. We want to develop innovative IoT solutions for the
transportation and logistics industry to improve the operational and on-site staff experience and
deliver new value to the market. Diagnostics systems and wearable’s devices dominated this
year's Telstra Innovation Challenge as the team demonstrated how IoT technology can be used to
improve patient life and help those working in the healthcare industry provide the best care. The
teams of both Challenge teams are working hard to design, build and code hardware devices,
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leveraging our Cat M1 IoT networking capabilities and Bupa's insights as a leader in the health
and healthcare industry (Manasakis, Mitrokostas& Petrakis, 2013).
Hill’s Strategy Development Framework to Telstra
Operations Strategy
Operations strategy refers to the total of decisions that influence the long-term capabilities of the
operations and their contribution to the overall strategy, by reconciling the market requirements
with operations resources. Satisfying market requirements need setting the appropriate
performance objectives for operations. The company makes decisions regarding its markets and
the customers that it intends to target and position it to attract customers to its products and
services in a better way than the competitors. The company must position itself to have a
competitive advantage over and above its competitors. Relationship of the corporate strategy and
operations strategy to achieve excellent business performance
The operational strategy focuses on the cost, flexibility, quality, reliability, and speed of
operational functions relative to the company's competitive approach by making the decisions in
the areas of capability, technology, and supply chain, the organization as well as information
management. The basic assumption is that an operational approach is an answer to corporate
goals, an internal decision function, and then conversed through a well-defined interface and
combined with other operative strategies to attain a strategic fit with the enterprise-level strategy.
Therefore, many research efforts are dedicated to supporting decision-making, communication,
and integration processes by developing and proposing appropriate procedures and tools in a
disciplined manner (Mashingaidze, 2014). Therefore, if the formation of an operational strategy
is seen as a practice-centred open organizational process, then the establishment of a common
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Operations management
reference point through the establishment of operational/conventional linkages and final
institutionalization of operational strategies can facilitate operational strategies in corporate
strategy. In the transfer and union of practice/conventions, the technologies, and other materials
they participate in play a very important role.
Operations design choices
1. Process Types and Alternative Designs: Process design refers to the process of developing this
part of an organization that uses a set of inputs that are then used to convert raw materials into
products or services. Telstra needs to adopt different methods or improve its processes to ensure
maximum production at the lowest cost.
2. Supply Chain Integration and Outsourcing: Telstra needs to propose mechanisms to ensure
that information flows from suppliers to end users of their products. The information collected is
necessary for the process and feedback integrated into the supplier and consumer.
3. Capabilities and Facilities: Telstra management should review to determine if the available
machines and personnel are fully operational. If capacity is not the greatest, strategic steps
should be taken to make the most of it. The result will be lower production costs and Telstra
quality, and the cost reduction will be passed to consumers at a lower price.
4. Inventory management: Telstra should develop strategies to manage the raw material
inventory of finished products.
Infrastructural decisions
1. Planning and control
2. Workforce
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Operations management
Develop the scope of business performance measurement for an organization
to monitor the effectiveness and efficiency in operations
The operations manager exists not only in the company nevertheless also in the manufacturing
unit. Some key features of Operations Manager include:
Finance
Finance performs a major role in operations management. This is important to make sure that the
finances of the organization are properly used to achieve main functions, for example, creating
services or goods to fulfil customer requirements (Moorhead, 2017).
Operation
This function in operations management mainly involves the planning, organization, direction,
and control of whole activities of the organization, which supports to transform the raw materials
as well as human resources into valued services and goods to fulfil customer desires.
Strategy
An operational management approach is a planning strategy which helps them optimize
resources, in addition, has a competitive advantage. Business strategy means sales, supply chain
configuration, ability to hold money, optimal use of human resources, etc.
Design of the product
Incorporating pioneering technologies plays a dynamic role in product sales. So, it is the duty of
the operations manager to make sure that the design of the product is in line with market trends
and customer needs.
Forecasting
Forecasting is the procedure of estimating specified events that may happen in the future. In the
operational management, the forecasting denotes to an estimate of consumer demand so that the
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production may be performed accordingly. This way, the manager can understand what is being
produced, when it is produced and how it is produced according to the customer's needs(Newton
&Arockiam, 2015).
Supply Chain Configuration
The chief motivation for supply chain configuration is to ensure effectual management,
supervising as well as control of all major activities in the organization. The supply chain
configuration begins with the supply of the raw materials then continues until the final product is
produced, which is then sold to clients to fulfil their requirements and desires (Turner
&Stylianou, 2015).
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References
Aggarwal, N., & Singh, R. (2014). Companies’ Practices and Customers’ Perception Regarding
Drivers of Customer Delivered Value: A Comparative Analysis. Paradigm, 6(2), 22-38.
Al-Shammari, E., & Al-Faqir, T. (2017). Analysis Support Activities Value Chain Model to the
Porter and Impact on the Knowledge Department. Iraqi Administrative Sciences
Journal, 1(1), 60-86.
Bourk, M. (2013). Scott V. Telstra: A Watershed in Australian Telecommunication
Policy. Media International Australia Incorporating Culture And Policy, 96(1), 69-81.
Eldor, L. (2019). How Collective Engagement Creates Competitive Advantage for
Organizations: A Business-Level Model of Shared Vision, Competitive Intensity, and
Service Performance. Journal Of Management Studies.
Gerrand, P. (2017). Historical paper: The 2004 Proposal for the Structural Separation of
Telstra. Australian Journal Of Telecommunications And The Digital Economy, 5(4), 70-86.
Gerrand, P. (2017). Revisiting the structural separation of Telstra [2004]. Telecommunications
Journal Of Australia, 60(3), 41.1-41.14.
Kohnen, J. (2012). Streamlined Process Improvement: The Breakthrough Strategy to Reduce
Costs, Improve Quality, Increase Customer Satisfaction and Boost Profits. Quality
Management Journal, 19(3), 71-72.
Makanyeza, C., &Mumiriki, D. (2016). Are all customers really the same? Comparing service
quality and satisfaction between residential and business telecommunications
customers. Acta Commercii, 16(1).
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Manasakis, C., Mitrokostas, E., & Petrakis, E. (2013). Strategic Corporate Social Responsibility
Activities and Corporate Governance in Imperfectly Competitive Markets. Managerial And
Decision Economics, 35(7), 460-473.
Mashingaidze, S. (2014). CUSTOMER EXPERIENCE MANAGEMENT: NEW GAME
STRATEGY FOR COMPETITIVENESS. Journal Of Governance And Regulation, 3(3).
Moorhead, S. (2017). The Telstra Research Laboratories. Australian Journal Of
Telecommunications And The Digital Economy, 4(4), 1.
Newton, C., &Arockiam, L. (2015). A Framework to Facilitate Network Operators to Provide
Better Quality of Service in Mobile Networks. SSRN Electronic Journal.
Oshima Lee, E., & Emanuel, E. (2013). Shared Decision Making to Improve Care and Reduce
Costs. New England Journal Of Medicine, 368(1), 6-8.
Turner, W., &Stylianou, A. (2015). The IT advantage assessment model: Applying an expanded
value chain model to academia. Computers & Education, 43(3), 249-272.
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