The scenario of this report determine the competitiveness in telecommunication industry of UK in which BT organisation requires to consider impactful strategies that can assist them in developing a unique image in front of target customers with the help of:
- Identify the influence of external environmental factors over the business decision making of BT organisation.
- Evaluate the internal environment and capabilities of BT organisation.
- Analyze the competitiveness of telecommunication industry of UK.
- Describe the availability of strategic directions for BT organisation.
Business strategy refers to procedure of developing effective policies as well as strategies which guides the various departments in company in order to achieve the set aims and objective sin an effective or better manner. Business strategy is regraded as long term plan of action to perform all the future activities by reducing risk in proper manner. In addition to this, it is a responsibility of manager to evaluate internal as well as external factors before developing and implementing the strategies or policies at workplace (Ackermann and Audretsch, 2013). There are many benefits which are related with competitive advantages, reducing risk, satisfy demands of neds of customers, performance level of staff members etc. IT will be helpful in giving effective opportunities to company for raising their internal capabilities and motivate staff members to give their better contribution for accomplishing aims of firm in effective manner. BT provides global services in United Kingdom and it provides better telecommunication services to people . This firm operates its business in more than 180 countries. In given report mention about the PESTLE analysis of firm to determine all external factors.
P1 Affect and influence the macro environment has on BT organisation
BT is big size organisation and its operation its business in all over the world. It give sits networking related facilities in more than the 180 countries. In addition to this, there are various types of services which are offered through this company are broadband, subscription television, fixed- line services and IT related services. Under this organisation, there are almost 106400 staff members are working for satisfy needs of consumers by providing them better quality of service sin an effective manner ( Alsoboa and Aldehayyat, 2013). In addition to this, there are many subsidiaries which are working in BT organisation consists BT international services division offers the telecom services to government or business firms in all over the world because of the multinational operations, there is more affect of macro- environmental components on operations of company which are necessary to understand to firm through PESTLE model.
1) PESTLE Analysis of BT organisation
In business environment, there are many different factors which develop negative impact on operations as well as activities of business firm. This tool is used through the marketers or company to determine as well as monitor all factors of macro environment which affect of functions and operations of an organisation. Under this, there are different factors mention such as political, economical, social, technological, legal and environmental. These all factors develop negative as well as positive impact on business or based of organisational capabilities. In order to this, it is a responsibility of BT organisation management to formulate its future business strategies through considering all necessary factors (Bentley, Omer and Sharp, 2013). PESTLE analysis of BT business organisation are given below as above:
Political factors- These factors is related with the political conditions in an country. The regulations issues or problems both come up rapidly. This factor plays a necessary role in identifying those components which affect on long term profit or productivity of BR organisation at marketplace as well as country. BT telecom company operates its business in many countries and also explore itself in various kinds of political system and political environment risks. In order to attain success in changing telecommunication sector in many different countries is to be varied political environment systematic risk. It analyse some given factors before invest in market:
- Importance as well as political stability of telecom industry in an economy of country.
- Protection of an intellectual property.
- Interference and bureaucracy in telecom sector through government.
- Incentives as well as tax rates.
- Favoured trading partners.
- Tariff and trade regulations concerned to telecommunications.
Economic factors- Under this includes interest rate, inflation, saving, economic cycle and foreign exchange rate identify an aggregate investment as well as demand in an economy of country. BRT organisation company use an economic factor of country like for an instance inflation rate, growth and economic indicators like for an instance telecommunication sector, spending power of consumers, economic industry etc. in order to forecast develop of this industry (Cadle, Paul and Turner, 2010). In context to BT telecommunication firm, it is more complex to develop resources as well as tourers in the rural areas. Under this, some elements which should be include through BT telecommunication company mention below:
- Stability and exchange rates of host countries.
- Quality of an infrastructure in telecom sector.
- Education level.
- Rate of unemployment
- economic growth
- Interest rates
- Inflation rate
Social factors- Growth in telecommunication sector is very limited. Attitudes and beliefs of population plays a necessary roles at market place to understand consumers. In order to this, it is complex to expand business in to the rural areas (Curwen, 2011). Under this, BT organisation produce good and provide service son the basis of demands or needs of consumers in an effective manner. At the peak season time, this firm gives employment services to many people and help them to connect with other countries. In addition to this, social factors that leadership of the BT organisation should be consider to analyse PESTLE analysis given below as above:
- Leisure interests.
- Power structure, class structure and hierarchy in society.
- Broader nature as well as entrepreneurial spirit.
Technological factor- Under this, technology is fastest disrupting different industries in all over world. Because of developing technology, network system of BT company is strengthened. In order to this, needs for the telecommunication services are very advanced. This organisation makes more investment in providing high speed of network as well as alliances for the 5G development (QD'Aveni, Dagnino and Smith, 2010). It is necessary for component to not focus on technology evaluation but also increase speed at which disrupts of technology in telecommunication sector. Less speed will provide more time and fast speed can disrupt technology. Analysis of technology included some given points:
- Rate of the diffusion of technology.
- Affect of technology on product offering
- Affect on pricing structure in a telecommunication sector.
- Technology development through competitors of BT organisation.
Legal factors- In most of the countries, legal structure as well as organisations are not more robust more in order to protect rights of intellectual property of company. It is necessary that company should examine all legislations before entering in to the new markets. Some of the following points are included in this factor:
- Discrimination law.
- Data protection act.
- E- commerce and customer protection.
- Patents, legislation of intellectual property and copyright.
Environment factor- Various markets ave the different environmental standards and norms which can affect on profit level of company in those kinds of market (E. Dobbs, 2014). The main focus of BT organisation is on minimize carbon emissions and also switch to the 100% renewable energy. It is essential for an organisation to determine environmental standards before start new business in an existing markets. Some components related to environment factors given below:
- Endangered species.
- waste management
- Support and attitudes towards for renewable energy.
- Climate change
2) Ansoff matrix
This matrix is known as market/product grid. Under this, four different options for developing through matching up new or existing goods with new markets which are plotted on matrix (Firnkorn and Müller, 2012). This matrix helps highlighting risk with specific growth related strategy. In addition to this, strategic position is an organisation position for future context of proper time by considering of various aspects such as internal factors and diversifying environment.
The positioning strategy explain about weaknesses as well as strengths of company which aids to identify existing consumers needs and requirements in order to develop their better position at market place as comparison to its strong competitors. In order to this, main aim of this kind of strategy is to develop the activities of firm more effective as comparison to its strong rivals to achieve more market share. It create positive affect on profit level of company. Ansoff matrix is a necessary theory which aids in developing various strategies for developing whole business in better manner.
Ansoff matrix of BT organisation given below:
Market penetration- IT is necessary factor which adopted through a business firm for expand business in better manner (Grover and Kohli, 2013). Under this, there is a requirement to business to search new ways to enhance loyalty of consumers and develop lifetime customer values. It gives an effective opportunities to consumers for rise its market share in existing market.