Thursday, December 5, 2019
Global Strategy and Leadership of Telstra â⬠MyAssignmenthelp.com
Question: Discuss about theGlobal Strategy and Leadership of Telstra. Answer: Introduction Telstra is a telecommunication and information services provider organization, which is based in Australia. It is providing various services, like; business services, internet access and fixed line services. It is a market leader in Australian telecommunication industry. The organization has adopted different effective strategies for maintaining its position in market. This report examines the strategic analysis and leadership styles of the leader at Telstra. The strategic analysis is conducted by examining the generic strategies and using SWOT analysis. Generic Strategy There are three generic strategies, such as; cost leadership, product differentiation and focus, which are used to gain competitive advantage in market. In order to improve its position in industry, Telstra is aiming on the youth and student market to offer the mobile and information technology products and other value added services. It has focused on differentiation and cost leadership. It is combining the uniqueness and broad target and providing best network and quality services (Bilbao-Osorio, Dutta Lanvin, 2013). It is offering the products to youth and students at affordable prices by using different cost saving technologies. SWOT analysis: Strengths The major strengths of Telstra are that it is one of the largest brands in Australia and it dominates the telecommunication and information service market in the country. It has the latest technology on mobile phones, i.e. Next G Network and broadband service, i.e. ADSL 2 Plus to fight with other competitors. Company is working with more than 35000 employees, who are serving the customers of 230 countries. It is actively sponsoring various sports events (Telstra, 2016). Weaknesses Telstra is not expanding its business operations internationally and limiting its growth strategy. The prices of products and services are comparatively higher than other competitors. It is making emphasis on postpaid plans rather than prepaid plans (Bartholomeusz, 2017). This company has decreased fixed line advertising and it has invested that amount on the promotion of new products like; Next G Network. The company has limited liquidity position. Threats One of the major threats for Telstra Company is market saturation in Australia. It means the mobile phone market in Australia has nearly reached to the saturation. There are changes in the customer behavior, i.e. it will find very difficult to compete for creating new customers. Technology changes are posing threats to the company (SP, 2017). Telstra has so many competitors, who are posing fierce competition for this company. There are very strict regulations in this sector in different areas like; price control, licensing, interconnection, agreements and use of infrastructure. Telstra needs to disassemble all the regulatory problems to enter in global markets. Opportunities There are so many opportunities for the company in this industry. Telstra can expand its business to international markets, like; China and Asia Pacific. The internet users in China country has been reached to 298 million up at high of 43%. The rate of internet penetration in China is at 22% that is very low and there is scope of improvement (Garca-Ochoa Mayor Bajo Dav, 2016). The internet market in China can improve the growth of company seeing from its expansion in present. Moreover, there is an increasing demand of smartphones and tablets and high speed broadband services all over Asia. Apart from this, this company can look at other alternatives but related business operations and pull its existing competencies to start new business ventures (Telstra, 2016). Telstra is the contracted data supplier of Australian government. By an initiative of government, it expanded its CDMA network to the rural population. So, the organization has most extensive CDMA networks in the Australia c ountry. Leadership The leadership team of Telstra feels very proud to be the part of one of the largest telecommunication company. The Chief Executive Officer (CEO) of Telstra, i.e. Andy Penn played his leadership role effectively. He is reshaping the team of senior executives continuously. He is including latest appointments offering a vision into his ambitions and priorities. As a senior leader, he knows how to build the organizational capabilities. He continues to play a significant role in increasing awareness of the role, which theproject management plays in implementing the organizational strategy. Andy Penn focuses on different leadership areas, for example; customer focus, personal leadership, results leadership and strategic leadership. As a leader of Telstra, he plays an important role in creating scenario of success in organization. Andy Penn is a pragmatic leader, who is practical thinker (Rothaermel, 2015). He has a strong interest in making strategy and focus on different strategies, which are used for completing any task, goal and initiative. He thinks that most of the companies either gets succeed or fail on the basis of their ability to implement strategy well. He executes the strategies by focusing on the customers. He is focusing on making good relationships with his team and building trust together. The top priority of Telstras CEO is to figure out that how his team is going to complete the tasks (Telstra, 2016). This style can be linked with transformational leadership. According to the public report and investors report, the CEO of Telstra company has effectively managed the employees and customers and he was able to align strategies with its overall objectives. Appropriateness of leadership It can be concluded that the leadership at Telstra was effective (Waterhouse, 2015). The CEO of the company played an effective leadership role. He is the person, who is responsible for Telstras effective strategy and other actions, for example; treasury, mergers and acquisitions, corporate planning, internal audit, external reporting, reporting and analysis and expansion of its business operations internationally (Northouse, 2015). All these aspects show that he played his leadership role effectively and able to attain predetermined objectives. Feedback The report is formed using various resources, like; books, journals, Telstras website and annual report of the company. For conducting the SWOT analysis, telecom industry and its other players are examined. Annual report and investors report of the company assisted in incorporating all the details in this report. Conclusion Thus, the above analysis shows the company is having better positive in the telecom industry in Australia. The company is using differentiation and cost leadership strategy. To overcome its weaknesses and threats, it should focus on the technology changes and competitive environment. It will help he organization in ruling the market for a long term. The company should conduct the research and development process to know about the products and demands in the market and then produce the products with new features. References Bilbao-Osorio, B., Dutta, S., Lanvin, B. (2013, April). The global information technology report 2013. InWorld Economic Forum(pp. 1-383). Bartholomeusz, S. (2017). Telstra leadership shake-up shows the scale of Penns ambitions. The Australian Business Review. Garca-Ochoa Mayor, M., Bajo Dav, N. (2016). Competitive advantages of the mobile phone operators in the Asia Pacific region: analysis from the strategic groups approach.Technology Analysis Strategic Management,28(5), 541-554. Northouse, P. G. (2015).Leadership: Theory and practice. Sage publications. Rothaermel, F. T. (2015).Strategicmanagement. New York, NY: McGraw-Hill. SP. (2017). Telstra Corporation Ltd. SWOT and PESTLE Analysis. Retrieved from https://www.swotandpestle.com/telstra/. Telstra. (2016). Telstra Annual Report, 2016. Retrieved from https://telstra2016ar.interactiveinvestorreports.com/. Waterhouse, J. (2015). Who is Telstras new CEO, Andrew Penn. Retrieved from https://exchange.telstra.com.au/who-is-telstras-new-ceo-andrew-penn/.
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