Influential macroeconomic factors and their impact on Telstra
Central bank policies: After the global financial crisis, the central banks had taken certain steps that were necessary to support the economy of the country by slashing the interest rates as well as injecting high levels of liquidity. The policies undertaken by the central banks are a reflection of the Global economic environment and hence it is very important to adjust the policy settings instead of taking an aggressive stance to properly reflect the economic condition improvements (Marcussen, 2017). When the stimulus is removed it drains liquidity from the market which means that the primary issue that should be considered is whether the earnings of a company in complement to the economic growth able to offset the liquidity reduction. Telstra even though is not directly affected by the central bank policies, needs to consider the possible impact of the central bank policies as it affects the stakeholders of the company.
Australian consumers: The state of the Australian consumers and their economic position has a significant impact on the broader economy of the country (Seid, 2018). The fiscal health of the Australian consumers is fragile irrespective of the fact that the Global economic growth is steady and increase in the frequency of full-time jobs complemented by Low unemployment rates give a positive Outlook of the market. The Australian consumers enjoy a certain standard of living and this means that they have a wide number of options to choose from.
Chinese economy: China has been recognised as Australia’s biggest trading partner and the fact that it is the second largest economy in the world makes the Chinese economy critical through the growth as well as the financial viability of the Australian economy (Worldfinance.com, 2019). Telstra has been investing a lot to buy shares of Chinese firms which makes it clear that any variation in the growth and development of the Chinese economy will have a significant impact on the operations as well as financial performance of the company.
Competitive analysis of Telstra
Threat of substitutes: In order to minimise the threat due to substitution, the Telstra Corporation has to take steps in order to continuously invest in research and development activities or risk itself losing out on profits due to the emergence of substitute products and services in the telecommunications industry. This is a very strong force (Papakonstantinidis and Jur?i?, 2018).
The threat of industry Rivals: The Australian market is inundated with several major communication service providers. In case the competition amongst the Rival companies stocks to get intense it will become immensely difficult for Telstra Corporation to make sure that they earn sustainable profits (Lozano, 2015). This can be also regarded as a strong force.
Bargaining power of consumers: The consumers can exploit the bargaining power that they have to minimise the pricing strategy which prohibits the Telstra Corporation to enjoy significant profit margins (Prawindra, 2017). The bargaining power of the customers is the strongest force.
Bargaining power of suppliers: In case the suppliers have dominant bargaining power, they will make use of it to extract a high price for the services provided to Telstra corporation and this intern will result in the day to day operations of Telstra Corporation making it difficult to maintain the profit levels in the communication service industry. The bargaining power of the suppliers is a weak force.
The threat of new entrants: If a new entrant gives a strong threat in the communication in it is very likely that the existing market players will accept the proposition of lowering the profits in order to reduce the threat from new entrants (Gregory, 2018).
The corporate objective of Telstra Corporation is the creation of long term shareholder value by providing services like integrated communication, entertainment and information and Solutions focused on customers. The framework of corporate governance at Telstra Corporation includes activities like conducting open, timely as well as clear communication with the shareholders, have an independent, skilled, diverse as well as experienced board wherein the structure of the board committee is suited to the needs of the shareholders. The corporate governance also focuses on delegation, decision making as well as accountability (Soltani and Maupetit, 2015). The Framework also takes into consideration the need for utilising robust risk management systems for Quality Assurance.
The corporate governance framework highlights the values, policies as well as the code of conduct that is necessary for explaining the position of the company as well as provides the Employees with the guideline to conduct themselves when working together in order to achieve the set goals and deliver the results. The governance framework is a very integral part of the operations of Telstra Corporation as it helps in supporting the business as well as delivering on the strategies that have been formulated. The corporate governance Framework is also utilised for giving structure for strategy making and setting of business objectives (Tricker, 2015).
It also takes into consideration how the performance is to be monitored and the risks to be managed. Understandably the clear framework helps Telstra Corporation in the decision making process emphasis on accountability across the business. It also helps in highlighting the behaviour standard that is to be expected from an employee of Telstra Corporation. Telstra Corporation uses the corporate governance strategy for transparency as well as accountability as this is very critical as well as essential in long-term performance and company sustainability why protecting as well as increasing the interests of the stakeholders and shareholders.
The corporate governance framework of Optus Limited helps the company to attain the high level of standards in terms of business practices as well as sustainability integration across the organisation. Sustainability is the key point of governance in the case of Optus Limited and the organisation believes that this will result in a significant difference for the employees as well as customers and society (Optus.com.au, 2019). The corporate governance framework is utilised for developing a resilient business which not only delivered on the set goals and objectives but also delivers values. In order to help the company with their corporate governance, a corporate responsibility steering group was established in the company in the year 2010 that provides approach oversight, strategic leadership as well as governance.
The primary function of the group is to assist the board members in order to fulfil the commitment of the company to conduct the businesses in a response as well as ethical manner. This also helps to ensure that the business priorities are actually aligned with the business strategy. The key parts of the business report are represented by the corporate responsibility task force and this enables the corporate responsibility in steering loop for implementing the priorities as well as implementing the corporate Responsibility in the business practices (optus.com.au, 2019).
The authentication, authorisation and accounting framework that is used for controlling the access to computer resources, auditing usage, enforcing policies as well as providing necessary billing information for the services (Downe, Cowell and Morgan, 2016). The combination of the processes mentioned above is very important for effectively managing Network and security. It is also used for undertaking ethical decision making by following a seven-step process that takes into consideration the ethical issues.
Establishing the case; The consumer has been paying a certain amount of fees for existing superannuation account for products that the accounting practice actually promotes. Option A will cost the client less in continuing with the fees and when consulted with the senior accountant, directives are given to provide the client with option B without giving any reason.
Identifying the ethical issue in the case; Option B that has been suggested by the senior accountant offers higher commissions in return for reference to the accounting firm
Identification of principles, values and norms related to the case; Accounting mainly makes use of information generation for stakeholders for identifying a valuable source of income. Bad accounting practices lead to defrauding of the financial statements that destroy the reality of the company’s economic condition. Going with the Directive of the senior accountant will violate the promise of an accounting firm to minimize wasting of money for the client. It will also mean that the customer is being conned by the accounting firm in return for high commissions.
Identification of alternative course of action; Disclose the Misinformation to the client and offer them option A
Overlapping the norms principles as well as values to the alternative actions; This will discredit the trustworthiness of the company in the market and future operations in the concern of accounting firm will be ceased. However, this action will mean that the accounting firm has realised the value of ethical response and will try to minimise the damage caused to the consumer.
Consequences of the actions; Disclosing the Misinformation to the client main result in legal actions to be taken against the accounting firm.
Decision making; Notify the client to switch to option A by getting a written approval of the senior accountant even if they are unwilling to consent to it.
References
Downe, J., Cowell, R. and Morgan, K., 2016. What determines ethical behaviour in public organizations: Is it rules or leadership?. Public Administration Review, 76(6), pp.898-909.
Gregory, M.A., 2018. Australian wholesale telecommunications reforms. Australian Journal of Telecommunications and the Digital Economy, 6(2), p.1.
Lozano, R., 2015. A holistic perspective on corporate sustainability drivers. Corporate Social Responsibility and Environmental Management, 22(1), pp.32-44.
Marcussen, A.A.C.G.M., 2017. Central Banking Reform across the World: Only by Night Are All Cats Grey. In Transcending New Public Management (pp. 147-166). Routledge. London
optus.com.au, (2019) OPTUS Available from https://www.optus.com.au/aboutoptus/About%20Optus/Corporate%20Responsibility/Our%20Responsibility/Governance/Governance Accessed on 24 March 2019
Optus.com.au, (2019) OPTUS Available from https://www.optus.com.au/aboutoptus/About%20Optus/Corporate%20Responsibility/Our%20Customers%20&%20Society Accessed on 25 March 2019
Papakonstantinidis, L.A. and Jur?i?, I., 2018. „Eight Key Fields analysis (EKF) and the 3-pole (win-winwin) challenges for mobile telecommunication.
Prawindra, M.S., 2017. Usulan strategi PT. Telekomunikasi Indonesia Internasional (Telin) dalam mengembangkan bisnis Content Delivery Network (CDN) di Indonesia.
Seid, S.H., 2018. Global regulation of foreign direct investment. Routledge. London
Soltani, B. and Maupetit, C., 2015. Importance of core values of ethics, integrity and accountability in the European corporate governance codes. Journal of Management & Governance, 19(2), pp.259-284.
Tricker, B., 2015. Corporate governance: Principles, policies, and practices. Oxford University Press, USA. California
Worldfinance.com, (2019) WORLDFINANCE Available from https://www.worldfinance.com/markets/chinas-transitioning-economy Accessed on 19 March 2019
Essay Writing Service Features
Our Experience
No matter how complex your assignment is, we can find the right professional for your specific task. Contact Essay is an essay writing company that hires only the smartest minds to help you with your projects. Our expertise allows us to provide students with high-quality academic writing, editing & proofreading services.
Free Features
Free revision policy
$10Free bibliography & reference
$8Free title page
$8Free formatting
$8How Our Essay Writing Service Works
First, you will need to complete an order form. It's not difficult but, in case there is anything you find not to be clear, you may always call us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
Complete the order form
Once we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.
Writer’s assignment
As soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download