The primary purpose of this research is to outline and analyze the business functions and operations of SingTel Company. SingTel is one of the growing and largest companies across the world. The paper also explains that how SWOT and pestle analysis are done by the firm to identify and analyze the risks and challenges of the market. The SWOT and pestle analysis also helps in overcoming the competitors in the marketplace. The porter five forces analysis, competitors and sustainability also have been discussed in the task. Along with this, the paper also depicts that how the organization follows triple bottom line approach to maintain sustainability within the organization. More detail of the task has been discussed below.
Singapore Telecommunications Limited is a Singaporean Telecommunications Company which is originated in 1879.The firm operates and manages its mobile network operators in Singapore with 4.1 million subscribers. It is a biggest corporation in the world measured by capitalization. The firm is a leader in the integrated telecommunication company who is providing innovative products and services in the international market. SingTel telecommunication is the largest and leading listed Singapore companies on the Singapore exchange evaluated by capitalization. The main mission of the firm is to be a leader in the telecommunication industry. Along with this, SingTel wants to provide easier, faster and more reliable for the consumers by delivering excellent values to the customers. The core values include challenger spirit, customer focus, integrity, teamwork and personal excellence. The main objective of SingTel is to create a sustainable and effective long term growth and to provide superior returns to the shareholders (SingTel, 2018).
The micro and macro environment play a vital and empirical role in each and every organization to accomplish the long term goals and objectives. It has been found that SingTel can focus on its micro environment. It is failed to monitor on the external environment (Leng, 2014). The organization uses SWOT and pestle analysis to evaluate and analyze the opportunities and threats of the market. Furthermore, it also helps in attaining competitive advantages in the international market (Curwen and Whalley, 2014). The SWOT and pestle analysis for SingTel have been detailed below.
SWOT analysis: This analysis helps the company to identify and evaluate the strengths and weaknesses of the competitors in the competitive market.
Strengths |
Weaknesses |
· The organization uses excellent marketing and advertisement strategy (Coombs, 2014). · Strong and unique performance in enterprise business. · Next generation mobile network and regional associates (Singtel, 2018). · Rising customer base with existing base of over 400 million customers. In this way, the company has been able to maintain strong position in domestic market in Australia and Singapore (Singtel, 2018). |
· High price competition in the global market (Hui, 2012). · The company is majorly dependent on the Singapore market and mobile revenue and outputs are reducing in Australian market (Singtel, 2018). |
Opportunities |
Threats |
· Positive outlook can provide a great opportunity to the company (SingTel, 2018). · Growth oriented initiatives is also an excellent opportunity for Singtel. · 3G network is growing in the global market (Fleischmann and Srikantaiah, 2011). |
· The high and intense competitive market causing a margin pressures. · Saturated market in home regions. · The strict rules and regulations also affect the business operations and activities adversely (Bull et al, 2016). |
It is a significant analysis for the company to stay in the competitive market. PESTLE analysis for SingTel has been discussed below.
Political factors: It has been noted that Singapore Telecom Company is protected from the ample of market forces and rendered with a financial support. The company faces ample of competition when the firm stripped of this protection (Tremewan, 2016). The Singapore government introduces and encourages competition because the government wants to prepare Singapore Telecom to face international competition and development. This could also affect the market share and profitability of the company. It is noted that SingTel Company locked major customers into multiyear service agreements in the Singapore and some other countries. In this way rules, regulations and policies have been made by the different government could also affect the success and profitability of the firm. On the other hand, it has been noted that competition is encountered by the Singapore government to prepare Singtel Company for the expansion and development. All these factors affect the outcomes and progress of the firm adversely and negatively as well (Feraco and Müller-Wittig, 2014).
Economic factors: It has been analyzed that various economic factors affect Singapore Telecom performance and productivity. Globalization has jumped into the national boundaries this it provides is an opportunity for the firm. The government of the country has invested huge amount in diversifying the economy. Apart from this, business sector will also generate a good and favorable environment to motivate and support the labor force as well as setting the financial and legal business framework. The growth and success in various economic factors represents the various opportunities for the company to increase business globally. It is noted that the company need to do good preparation to gain competitive advantages in the international market (Brooks, 2016).
Social factors: It is revealed that Singapore culture is unique and effective with four primary ethnic groups such as Indians, Eurasians, Malays and Chinese. Thus, the company can take ample of advantages in the country. The social cultural factors include values, beliefs, custom, aspects and attitudes of the people that might affect the progress of the firm. All these factors present a great opportunity for the company to increase and enhance their revenue and outcomes (André Cavalcante, 2013).
Technology factors: It is analyzed that technological factors also affect the outputs of the firm. The company uses advanced and innovative technologies in the workplace to gain competitive benefits in the global market. The lifestyle of the people and quality of daily operations and activities is having an effective and unique impact of the internet, communication technology and social networking that have been used there. The IT infrastructure of the country is quite unique and effective as it also has a favorable impact on the growth and development of the country. E-commerce is also used by the company to attract and retain maximum number of customers in the global market (Yeboah-Asiamah, Quaye and Nimako, 2016).
Legal factors: Beside the above mentioned factors, legal factors also influence the targets and results of the firm. The government of the country thinks that growth and expansion of the electronic commerce depends on the market favorable legislations and regulations. Specific regulatory, legal and business settings are essential to support the economic growth and industrial development. Along with this, the country also introduces some new e-commerce policies. All these things will provide support to SingTel to grow and flourish the business activities and operations worldwide. In addition, Intellectual property rights, electronic transactions act and tax issues could also influence the efficiency and effectiveness of the company (McNeill, 2013).
Environmental factors: It is observed that Anti pollution unit and ministry of the environment work in order to maintain air quality and other environmental elements in the country. Pollution and climate change is the key issues in the Singapore urban areas. It has been measured that Singapore lost around 30% of its mangrove area. One of the significant issues for Singaporeans is that the nation does not have enough water to support their wants, desires and needs. Along with this, the country is dependent on the Malaysian supplied water. It is analyzed that Singapore is a remarkable and significant country (Quah, 2013). SingTel Company should focus on the macro environmental factors to stand out against the competitors and to maximize the returns and profitability (Hwang, Zhao and Gay, 2013).
The company uses porter five forces analysis to gain competitive benefits in the global market. The porter 4 corner analysis for SingTel has been discussed below.
Competitive analysis |
SingTel |
Starhub |
Telstra |
M 1 |
Future objectives |
The main goal of the company is to create a sustainable long term growth and to render the superior returns and outcomes to the shareholders. The corporate culture of the company is unqiue and effective. The core values include teamwork, integrity, personal excellence, customer focus. The favorable culture provides ample of benefits to the employees. |
The goal of Starhub is to focus on the every person, every business and every home in Singapore by providing effective and unique communication services. |
The primary purpose of Telstra is to create a brilliant future for the customers by rendering unique and dynamic telecommunication services in the competitive market. |
The main goal of M1 is to provide unique telecommunication products and services to the customers. The company is committed for generating an engaging work environment that also a provide support a healthy work life integrated lifestyle for all the staff. |
Current strategy |
The current strategy of the company is to improve the economics of core consumers and enterprise business. Along with this, the firm uses digital marketing strategy to beat the competitors. Team work and collaboration is maintained by the firm reduce and prevent the risks and challenges of the market. |
It is noted that Starhub uses data centre strategy to fulfill the needs and desires of the customers. |
The corporate strategy is initiated by the company to stay in the competitive market. |
The advertisement strategy is initiated by the firm to stand out against the rivalries. Aside this, M1 focuses on the communication and marketing strategy to attract more and more clients in the global market. |
Assumptions |
It is assumed that SingTel maintain a strong and powerful financial position in the local as well as international market. Effective language is used by the colleagues to communicate with customers. Security and protection also are provided by the company. Integrated and dynamic culture is followed by the firm. The firm wants to be leader in telecommunication industry by focusing on the activities of the competitors. |
The cost advantage and customer loyalty is the main strength of Starhub. Unique products are being offered by the firm effectively and successfully. |
Telstra is Australian leading and growing telecommunication company who is expanding operating margin quickly. |
Despite prices being very similar, compared to Starhub and Singtel, the prices of the M1 is lower. Strong and dynamic is followed by the firm to attract the candidates towards attainment of goals and objectives. |
Capabilities |
The financial position of the company is very strong and effective. Effective workforce and unique marketing strategies are used by Singtel at the workplace. Chua Sock Koong is the CEO of the firm. She is one of the powerful corporate personalities across the world. She is a good leader who believes in mentoring. |
The core capabilities of Starhub include excellence, teamwork, creativity and integrity. Tan Tong Hai is CEO of starhub Company. He uses transformation leadership to encourage the employees for performing roles and responsibilities effectively. |
The revenue of Telstra is approx 2710 crores AUD. In this way, the organization maintains a strong and effective image in the minds of the customers. Andy Penn is the CEO of the company who follows effective leadership style to motivate the workers. The organization uses growth and corporate level strategies to build and create a dynamic image in the marketplace. |
The goodwill of the firm is unique and effective. With the deployment of 4G network, M1 is able to provide support theoretical downlink and uplink speeds of up to 75 Mbps and 37.5 Mbps respectively. The company also provides value added services to the customers. |
Action /Response |
Although, the company is growing its business but still it should take actions towards the fulfilling the requirements of the customers. It should use new and innovative strategies. |
On the above mentioned analysis it has been found that Starhub needs to use some new strategies to hit the competitors and it should also use new and advanced technology in the workplace. |
The firm should increase and enhance the performance and productivity of the employees and it also differentiate its services from the competitiors to cope up with rivalries. |
M1 needs to focus on the business activities and strategies of SingTel and Starhub. |
Star hub is the main and biggest competitor of SingTel that is affecting the progress of the firm adversely. Starhun Ltd is one of the three major telcos in the republic of the Singapore. It is preventing the growth and success of Singtel Company in the country by focusing and identifying the plans, policies and strategies in the modern world. In today’s competitive world, Starhub is providing security solutions to protect the business against the cyber threats. The competitor serves a inclusive suite of cyber security services to manage and handle the security solutions to system integration and professional training services. Starhub is the first company that uses telcocentric visibility from network to endpoint (Luiz, 2016). With Starhub’s cyber threat intelligence, the company can quickly uncover time sensitive insights about the malicious actors and their motivation to accomplish the goals and objectives. Starhub is an info communication company that provides communication, information and entertainments services in the Singapore. It has been analyzed from the various analysis that Starhub and Singtel for Singapore’s spectrum frequencies at auction. Beside this, the organization also uses effective and unique promotional and advertisement strategies to prevent the success and growth of SingTel Company. It has been noted that Starhub uses hubbing strategy to strive with Singtel in the marketplace. The customers get offers and discounts when they become a hubber in the market. The hubbing strategy provides one stop solutions for all their mobile, entertainment and internet needs and requirements. This strategy reduces the churn rate and increases average revenue of the company. Cross selling is done by the firm with the help of hubbing strategy. Hubbing strategy is being worked excellent for the company over the last 10 years to beat the competitors such as SingTel. Along with this, Starhub is maximizing its EBITDA ( Earnings before interest, tax, depreciation and amortization) market share despite decline in subscriber market share. Moreover, the firm uses diversification strategy to defend SingTel company in the competitive market (Deng, Wang and Wang, 2017).
The leadership and strategic direction are an important and effective part of SingTel Company.
The strategic management at SingTel is unique and effective. The goals and objectives for SingTel are determined by the top management and board of directors. Under the strategic direction, the top management work towards the attainment of the desired targets and objectives. The firm is committed to create a sustainable and long term success for the business while shaping and leading the favorable change for the customers as well as marketplace. The organization works together with strategic partners to take plenty of advantages in the Singapore. The firm makes communication faster, easier and economical by breaking and preventing the barriers of price, distance and technology. Sustainability is the core function of SingTel to attain the corporate mission and vision. At SingTel, the top management and leaders are committed to analyze and understand the external as well as internal drivers to stay in the competitive market (SingTel, 2014). The top management provides right and appropriate direction to the employees for performing roles and responsibilities. Chua Sock Koong is the CEO of SingTel company as she is performing her roles and responsibilities in a hassle free manner. She is responsible to conduct business activities and operations of SingTel effectively and successfully. She is also a certified public accountant in Singapore and a CFA charter holder. It has been analyzed that Chua Sock Koong uses democratic leadership style to make unique and effective decisions. This leadership style helps SingTel to capture the entire market. By using democratic leadership style, the company is able to build and sustain competitive benefits in the international market. The qualities of Chua Sock Koong include intelligence, honesty, creative and fairness. The pros and cons of Chua Sock Koong leadership style include the following:
The firm is committed to enhance and maximize stakeholder value. Audit committee also provides board level oversight of the accuracy and efficiency of fraud risk management framework, processes and policies. The company has partnered with leading and growing IT solution providers and system integrators to render industry expertise and best services to the customers across the world. SingTel channel partners include first tel, Malifex, Platinum partner, Meganet PTE Ltd, Accesstech engineering PTE Ltd. In addition, the company declared plans to deploy and develop Massive MIMO technology on its LTE advanced and unique mobile network to increase and improve mobile data speed experience by up to 200% at particular events for its consumers. This technology will help in boosting network capacity in a large extent. The firm is partnering strategic vendors as a unique and effective part of the 5G exploration and expansion programme. The company has signed a memorandum to study and analyze the future of 5G network and it applications for both the enterprise as well as customers.
(Source: SingTel, 2014)
It is noted that effective team of the company maintains a strong control over the various activities and operations in the international market. The company aspires to the highest and effective standards of corporate governance to create long term revenue and value. The directors of the company are responsible for the corporate governance policies and standards. The board of the firm entails 10 members. Along with this, effective and unique relations with stakeholders, investors and customers are maintained by the top management and leaders within the organization. The top management and managers influence members and subunits to behave in ways that lead to the achievement of organizational objectives and goals. Risk management approach is followed by the company to control on social and human issues. Financial measures are taken by SingTel is to asses and evaluate the performance and productivity. Audit committee is also appointed to control and measures the human and financial risk.
After the various researchers, it can be analyzed that SingTel is managing and handling its resources effectively and significantly. The managers of the firm are managing carbon footprint and energy consumption by using effective process and technology. It also commits to reduce and prevent the negative impact of climate change and pollution. Apart from this, the corporation is engaging with stakeholders to address the environmental issues. The firm is expanding and flourishing the network and infrastructure to capture the entire market. The company also makes strategies for climate change and environment (Henriques and Richardson, 2013). Singtel offers various financial resources such as mobile, internet, cloud service, data connectivity, telephony and conferencing services. The company’s HR assists and guides the employees for performing tasks and duties in a successful manner. Singtel HR executive guides and assists powerful payroll processing capability that streamlines and automates payroll and back office functions effectively. They work for welfare of the staff and increase their productivity and efficiency in the competitive market. HRM also helps to reduce paperwork and ensures constant compliance and standards with prevailing tax laws and statutory legislations. It has been revealed that the firm invests huge amount for health and safety of the employees. Health and safety act is considering by the company to satisfy the demands of the customers. Human and social capital are keys for Singtel to well being and economic growth.
The company appoints right and appropriate people in the workplace to fulfill the mission and vision. The organization also maintains a favorable culture and working environment in the workplace. At SingTel is continuing investing in retaining, motivating, attracting and aligning the talents needed to sustain and grow SingTel group. The strong and unique culture provides competitive benefits to the organization. The corporation is committed to promote and encourage a healthy organization and lifestyle and rendering a safe working atmosphere. In the organization, each and every person is responsible for maintaining a unique and effective culture in the workplace. No company can survive and grow its business without maintaining dynamic culture at the workplace (Saafein and Shaykhian, 2014). The five dimension of entrepreneurship include the following:
Autonomy: It is noted that autonomy plays a significant role in entrepreneurship. It is the capacity of entrepreneurship to make a un-coerced and informed decision. The entrepreneurship is well known as a autonomous. They are innovative person to get new ideas and views.
Innovativeness: This dimension of entrepreneurship affects the tendency of a company to engage in and support new ideas, creative processes and experimentation. Innovativeness helps the company to introduce new and innovative products in the marketplace.
Proactiveness: It explains that how Singtel response to promising and getting marketing opportunities and how the firm is taking strict actions. This dimension reflects the top management and their functions to beat the rivalries in the marketplace.
Risk taking: It refers to Singtel tendency to engage in high risk projects and managerial preferences for cautious versus bold steps to attain the goals and objectives.
Competitive aggressiveness: In this dimension, the company focuses on the strategy, plans and approaches of the competitors to capture the entire market and to hit the competitors.
It has been observed that SingTel is well known and recognized for effective and unique ethical business practices. The unique code of conducts is followed by the management at SingTel Company. The company makes unique and effective policies, strategies and rules for the welfare of the workers in the workplace. If any mistake and misconduct is done by the employees then strict actions and steps are taken by the top management and leaders (Webb, 2015). Singtel is identified and recognized by the Ethisphere institute a global and unique leader in advancing and defining the standards and norms of ethical business practices (SingTel, 2018).
Triple bottom line is one of the significant systems being initiated by SingTel to assess the profits they are making through their corporate social responsibility solutions. It includes social, economic and environmental factors. It is one of the effective and unique markers to know and understand whether how the company is achieving profitability and attaining sustainability. The three parts of the bottom line have been discussed below.
Social sustainability: The social bottom line measures and evaluates the business profits and outcomes in human capital including company’s position within the local society. The firm increases bottom line by having beneficial and talented labor practices in the workplace. It also helps in measuring the impact of SingTel business activities on the local economy (Sutherland, 2016).
Environmental sustainability: The triple bottom approach also focuses on the environmental sustainability. It has been found that SingTel manage, and monitor on the consumption, emission and waste water. The company cannot survive its business activities without measuring the environmental sustainability (Tripathi, Kaushal and Sharma, 2013).
Economic sustainability: The economic sustainability is not only simply SingTel traditional corporate capital in the triple bottom line approach. The triple bottom line approach measures and analyzes that how much of an impact SingTel operations and activities have on its economic development and environment (Chamberlain, 2018).
(Source: Chamberlain, 2018)
By using this approach, the company has been able to know its position and image in the current economy as it also identifies and analyzes the company’s ability to survive and grow in the future.
It is noted that SingTel follows GRI standards to improve and enhance the sustainability performance and to reduce the risk of the market. The GRI standards also help the company to maintain good communication with investors and customers in the global market. Along with this, GRI index also improves and enhances the stakeholder’s relationship in the global market. GRI standards also build and develop credibility as a committed and effective corporate citizen. It also helps in internal data management and reporting systems. There are ample of GRI standards related to customer privacy, health and safety, local communities, training and education, energy and water (Bagie?ska, 2017).
Conclusion
On the above mentioned analysis, it has been concluded that SingTel has been ranked the transparent and well governed Corporation. The above analysis shows that situational analysis is done by the firm to meet the long term requirements of the customers and business as well. Along with this, the paper explains the competitors and porter five forces analysis and on the other hand, it also provides a brief explanation about the triple bottom line approach that is initiated by the company. Beside this, it also discusses about the strategic direction and leadership that are used by the firm to carry out the business activities and functions successfully. The ethical and CSR practices that are initiated by the company have been also explained in the task. In today’s era, the organization is making unique and effective strategies to make a sustainable image in the international market.
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