Telstra Company In The Telecommunications Industry In Australia

Background Information

In Australia business competition and rivalry is very high in different industries (De, & Adams, 2010, pp. 219-235). Technological advancement has brought knowledge among the businesses on how to work and gain a competitive edge in the market. Technology is an external environmental factor that affects business activities. It creates awareness of the firm on how to maximize their production activities with the aim of increasing the profit margins. The country is economically stable making the business environment suitable for business operations. Management of any organization has an obligation to compete fairly as the environmental factors are favorable. Competition, however, is regulated by the government to avoid odd ways of the businesses competing which disadvantages other businesses. Creativity and innovation are the only strategy for businesses to get a competitive advantage over their competitors in the market (Legrenzi, 2010). The companies also have the corporate social responsibilities to adhere so as to avoid conflicts with other business stakeholders. The success of business in Australia is subtle, and failure probability is the highest for companies due to the problems likely to encounter them. Managers as the people who oversee the business activities have the duty to come up with a fundamental problem making methods to ensure business survival in the market. This report will look into details Telstra Company in the telecommunication industry in Australia. The things to look for the company are the ways it carries out its activities to remain competitive in the market, the possible challenges it faces and how it can solve the problems to avoid failure or stoppage in its operations (Wirtz, 2011, pp. 2).

Telstra the Company under study is the largest mobile telephone providers in Australia. It is located in Melbourne; Australia and the CEO are Andy Penn. Telstra is a limited corporation large in both customer subscriptions and coverage. The products it offers to the customers include fixed-line services of home phones and also business phones, internet and data services, network services, etc. (Ricketson, Richardson, & Davison, 2012). The core values of the company are: caring for the needs of its customers all over Australia, moving together with the clients in the steps it takes, building a trust relationship with customers, making things that are involved with customers comfortable and finally getting the customer is courageous in their activities. The objectives of the company are creating a brilliant connected future for all the people both in Australia and globally. The company has connected 1.7milion mobile services, 6.8 million fixed voice services and 3.5 million retail fixed broadband services (Given, 2010, pp. 540-549). The company improves the people’s way of living and working through connection. The main objectives and goals of the company are:

Company Background

Ensuring that all the people in the world are connected through modern communication technology regardless of the age, sex, income, abilities and location.

Enhancing environmental leaders focused on putting the employees needs first and protection of the environment.

Employees’ involvement with the issues that matter to the company concerning connection issues.

Service strategies are the methods that each firm uses to meet its goals and objectives. Through putting operational strategies, businesses can check and put into actions systems to ensure better utilization of its employees, time and the resources at its disposal (Zhu, Cheung, Hwang, & Sadjadpour, 2010, pp. 390-397).

The Telstra Company has put up strategies which make it reduce the impact of the competition in the market and market it attracts large numbers. These policies help the company reach its set targets and they include; outsourcing, globalization, production of high quality products, and better governance of the firm and better acquisition of machinery. The products and services offered to the customer are of high quality and can be used for long periods. The company has employed blue ocean strategy in an attempt to avoid competition. Even though competition is inevitable, the company has put into place, so measure to reduce it. The company serves Australia, and it has also engaged in foreign trade. Engagement in international business aims at getting ‘blue oceans’ in the new location or find markets with little competition. These have increased the sales if the company tremendously (Strategy, 2015).

The company uses outsourcing strategy to get some services and products from other service providers. Outsourcing is the ability to get goods or services from a service provider to enable continuity of business operations. A company outsources if it is unable to produce the goods and services. The inability may be caused by low resources, inadequate workforce, time limitation, inadequate machinery, etc. Outsourcing is carried out as the last option and must be having benefits to the firm. Telstra Company has outsourced network installation and maintenance services from private contractors and joint ventures. These service providers are the ABB communication company and the Siemens Thesis Communication Joint Venture. The two strategies aim at making the company operations is successful by executing them at favorable cost and promptly. Better strategies are the beginning of the success of business as they act as a guideline to the stakeholders (Mol, & Brewster, 2014, pp.  20-34).

Globalization strategy is the ability of a firm to engage in international trade. Telstra Company is a multi-national company serving 22 countries some from the Asia pacific region. The company also boosts of 3000 employees who work in the international branches. The foreign trade provides the firm with more customers who increase the sales of the company. This strategy has been relevant in ensuring that the company as high profits from its operation.

Operation Strategy

Telstra Company has acquired the necessary machinery to aid in execution of its duties; the devices to supply network to the customer are of high quality minimizing outages. The products like mobile phone are of the best quality attracting a large market for the company. Employees also determine the success of any company and Telstra Company has ensured that it employees the most qualified employees to enhance better execution of its duties. Any difficulties faced by the employees such as disputes and inability to execute their duties are carefully handled by the human resource department. The governance of the company is the best. The managers who manage its key activities have skills, knowledge and experience in their areas of operations. These make the management come up with the best decision to take thus ensuring the company remains competitive in the market. 

Table 1: Income Telstra Company Gets from Foreign Trade

To external income	Financial Year 2016	Financial Year 2015	CHANGE
	$M	$M	%
Telstra retail	16,656	16,911	(1.5)
Global enterprise and services	6,262	5,618	11.5
Telstra wholesale	2,622	2,586	1.4
Telstra operations	602	424	42.0
	908	573	58.5
Total telstra segments	27,060	26,112	3.6

Firms set up strategies to enable the individual meet objectives. The objectives are to get more customers hence increase the sales. When the sales are high, the profits are high making the company affords to manage its business activities as resources are adequate. Operation performance is the aligning all the units in the organization to achieve the core goal and objectives (Iosup, Yigitbasi, & Epema, 2011, pp. 104-113).

The goals that the company wishes to achieve vary in different firms. Managers have an obligation to choose the purpose of the organization all the time it carries duties. The primary operation performance objectives of Telstra Company are: low cost of their products and services, high-quality goods and services, flexibility, dependability and reliability by customers’. The company sources cheap raw materials and services from other service provider and this make it cut the cost of its goods and services but they are high quality. Quality assurance is crucial to the company in its products and services with the management putting guidelines on how to achieve it. Buyers needs keep on changing with time, and therefore the firm is flexible to enable it to cater adequately for the changing requirements of the customers.

 Telstra Company has a track record of offering good services in timely manner without delays to the customers and this make new customers depend and rely on it for delivery of services and products. All the above factors are crucial for better performance and achievement in the telecommunication industry. Management has the duty to ensure they are observing to attract more customers to the company (Slack, 2015).

Key Decision Areas of Structure and Infrastructure

Key product revenue	Financial Year 2016	Financial Year 2015	Change
	$M	$M	%
Fixed	7,029	7,188	(2.2)
Mobile	10,441	10,654	(2.0)
Data & ip	3,789	3,417	10.9
Nas	2,763	22,418	14.3
Media	974	931	4.6

Competition in the market is high, and therefore Telstra Company has priorities in the execution of services to attract more customers. The company produces high-quality which is sold at low costs to customers. Also, it comes up with innovation hence enhancing better customer relationships. The company outsources raw materials at a low cost making the products it makes be of low costs. The low-cost products always attract clients in the market. The quality of service and products is important in attracting customers, and the company ensures it enhances it. Creativity and innovative is the goal of the business to come up with unique products with not competition in the market. The makes the products have high sales as they attract many buyers. Good customer relations is necessary to aid in trust from the purchaser, Telstra core value stresses on achieving trust from the clients. The company produces these by responding to the questions and complaints immediately (Xiaosong Peng, Schroeder, & Shah, 2011, pp. 484-510).

Competitive advantage is the ability of the firm to attract more customers than the competitors in the market. Telstra Company achieves by ensuring that there is feedback system for the clients to comments on the services and products they offer to them. The platforms feedback is through emails, website, phone calls, etc. Products that the company produced are of high quality, but it offers them at great prices compared to the competitors thus attracting scores of customers. The relationship between the firm employees and the customers is great making them feel a sense of belonging to the company thus be loyal to the enterprise. Businesses to survive in the competitive market they must put up a measure to attract large numbers of customer hence have a competitive edge in the market (Porter, 2011).

Internal consistency is the ability of all the departments in the company to work towards the achievement of the overall goal. In Telstra Company the better governance by managers ensures that all the departments work towards achievement of the overall goal. Managers in different department oversee their employees in executing duties as required. When there is internal consistency among the departments to work towards the goals of the organization the firm is able to achieve its targets. These achievements make the Telstra Company have a competitive edge in the market over the competitors

Execution of business activities is not always easy for the firms as there are many problems which they encounter. Telstra Company has many problems in its operation. The business environment in Australia is highly competitive posing a significant risk for its failure. Poor management issues are also a problem for the company. The company shareholders in the recent past had to sack the CEO due to wrong decisions and claims of embezzlement of funds. The employees’ turnover in the company is high, and also the customers experience multiple network outages. The company also is making massive losses (Galliers, & Leidner, 2014).

Operation Performance

The above factors are solemn, and the management has to solve them with urgency. I would recommend the following:

1. The shareholders to choose managers, who are qualified, experienced and with integrity qualities to ensure proper oversee of the company affairs.
2. The managers to come up with plans which will be widely researched and consulted. The strategies must also put ways of making profits for the firm.
3. Managers to check the reasons for employees exit from the company and take necessary measure to curb it as recruiting process is costly for any firm.
4. The IT experts to test the network systems and update them to avoid outages as these may lead to poor service delivery to the customer who might opt for competitors’ services.

Conclusion

The business future is always uncertain, the situation may be profitable or not. Managers, therefore, must put strategies to ensure the success of the business and measures top correct any uncertainties experienced in the market. Challenges should not cause a business to fail but make it stronger in the future. Managers must take challenges as points of learning to ensure better governance of the business activities (Rue, Byars, & Ibrahim, 2012).

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