Leadership And Organizational Studies Essay

Question:

Discuss about the Leadership and Organizational Studies.

Answer:

Introduction

The given report highlights the importance of strategic analysis for the modern organizations. The current business environment has witnessed a higher level of competition among business firms. Internal analysis is the process of reviewing the strength, weakness, threat and opportunities of an organization. It is the process by which the specific characteristics of the organization such as capabilities, resources and the core competencies can be identified.

Identification of Resources and Competencies of Telstra Corporation limited

The sustainable competitive advantages of Telstra are – it is the largest telecommunication provider in Australia, it has huge and continuously growing customer base, it provides latest technologies like cloud computing and it provides high quality and excellent customer services (Telstra.com.au, 2017). These capabilities of the firm are considered as competitive advantages as these factors help the organization to retain the existing customers and to earn new potential customers by providing them with advanced technologies and satisfactory customer services. Therefore, this results into increased revenue as well as increased profit of the firm. The capabilities of the firm Telstra Corporation Limited are whether capable or not to create business advantages can be better understood through VRIO analysis and Value chain analysis.

VRIO Analysis of Telstra Corporation Limited

Resource or Capability

Valuable

Rare

Inimitable and Non-substitutable

Organized to Exploit

Impact on Competitive Advantage

Largest Telecommunication provider in Australia

Yes

Yes

Yes

Yes

Realized sustainable competitive advantage

Huge and Continuously Growing Customer Base

Yes

No

No

Yes

Realized Competitive Parity

Provides Latest Technologies (Cloud Technology)

Yes

Yes

Yes

Yes

Realized sustainable competitive advantage

High-quality and Excellent Customer Service

Yes

No

Yes

Yes

Realized Temporary Competitive Advantage

Value Chain Analysis of Telstra Corporation Limited

The above figure indicates that the infrastructure of Telstra Corporation Limited is well developed and has good human resource management. Thus, the employees provide satisfactory customer services to its clients. Moreover, the company plays a leading role in the market of Australia, thus, it is eligible for providing modern or latest technologies to its clients. Therefore, it can be said that the modern technologies help the firm to attract more customers and to retain the existing ones. All these mentioned factors are considered as support activities as these support the firm to run systematically and accurately. On the other hand, the primary activities of Telstra Corporation Limited are inbound logistics, operations, outbound logistics, sales and marketing and service and support. The inbound logistics of Telstra Corporation Limited include – collection service and self return, operations of the firm include customer visit, product quality, order fulfilment and quality expectations. The outbound logistics of Telstra Corporation include ordering, fulfilment of order, emergency load, delivery on time, pick up of customers, management of transaction and management of inventory of the firm (Telstra.com.au, 2017). The marketing and sales of the firm include proper management of account, proper pricing strategy and structure, invoicing and understanding the demand of the customers. Moreover, the firm Telstra provides satisfactory services to its customers and thus customer survey is performed in order to meet the demand of the customers.

Justification of the Competitive Advantages

On the basis of the VRIO analysis, it can be said that the capabilities of Telstra like largest telecommunication provider in the world and providing latest technologies are considered as sustainable competitive advantage, whereas, the capability like Huge and Continuously Growing Customer Base is considered as competitive parity. On the other hand, the capability of Telstra likes high quality and excellent customer service acts as temporary competitive advantage of the firm. The reason behind this can be better understood from the above-mentioned VRIO Analysis. On the other hand, based on the value chain analysis, it can be said that the particular firm meets the customer demand and provides value to the customers; moreover, both the support as well as primary activities indicate that the mentioned capabilities act as sustainable competitive advantages of Telstra Corporation Limited (Telstra.com.au, 2017).

Internal analysis:

While conducting the internal analysis, it is essential to look at the elements such as the visions, mission and strategic objectives of the Telstra Corporation limited. Internal analysis of Telstra Corporation limited is performed by conducting the SWOT analysis, which makes the systematic evaluation of internal key features of the company. The internal analysis of Telstra Corporation limited helps in analysing the strategic factors, which is company specific. Conducting internal analysis helps in evaluating core competencies (Barney & Hesterly, 2015).

SWOT analysis of Telstra Corporation Limited:

Strength:

Telstra is one of the leading telecommunication and information service provider in Australia (Rothschild et al., 2012). It has an expanding operating margin and has a wide range of portfolio of service. Telstra enjoys a strong customer service base. The reduced labour cost is another strength. Although, Telstra is experiencing a slower growth, Telstra has made record in the retail business board. It enjoys a strong market position and the company is improving its competitive position by launching new services in the market (Dess et al., 2013).

Weakness:

Liquidity position of the company is limited and its market segment is extremely tough, which is indicative of the fact that it has limited market share. Telstra has higher price for its broadband and mobile phones, relative to its competitors such as Optus. The growth prospects of Telstra is limited due to its lack of initiative to diversify internationally. Telstra has been focusing on the post-paid mobile phone plans rather than on the pre-paid. The reduction of the expenses on the fixed line advertising is another weakness of the company (Hill et al., 2014).

Opportunities:

The demand for telecom services is ever rising and the market of IT service is growing at faster pace. This would provide Telstra with the opportunity to grow and prosper. Investment opportunity is provided by the Telstra venture in the breakthrough companies. The strategies of Telstra would provide it with high growth opportunities. This venturing would provide investment leadership to the future of Telstra (Hitt et al., 2012). The customers are provided with new products and services with the help of its leveraged assets.

Threat:

The increased competition and rapid changes in technology pose threat to the existence of Telstra Corporation. In the near term, the regulatory environment can affect the operating performance of Telstra. The declining profitability and the growing competition in the telecom market is likely to influence the performance of the company. Due to the changing behaviour of the customers, Telstra has found it increasingly difficult to cope up with new customers. The regulations have been a threat to the company such as the mandated access of ACCC to the local network of Telstra by the issuance of the local loop unbundling has been responsible for making the competition fierce in the telecom market of Australia (Mellahi & Frynas, 2015).

Issues in internal environment of Telstra:

The company has been distinguished by highly competitive market and it is struggling with increasing cost of operation, development and mature market and production as well. Concerning the decision-making in the company, it faces the management issues. The issue relates to the recognition of different strategies that would enable the company to help in maintaining the competitive position. The issues concerning the strategic analysis is in relation to the identified weakness, strength and opportunities. Issues are regarding the recapturing of the customers who have switch to other service providers. The customers’ needs to be provided with the lower priced products (Morden, 2016).

Adaption of the company to the newly advanced technology has been slow, and because of which the customers are not provided with the best products and services. The internal customers that are employees influence the performance of the business. Culture of the business is not supporting the ongoing trend in the telecommunication business. Considering all the issues in the internal environment of Telstra, it should facilitate deployment of networks of next generation mobile. It should also ensures that customers have continued access to the services provided (Rothaermel, 2015).

Issues in external environment of Telstra:

There is lack of flexibility in terms of adapting what the company in the evolving market conditions offers. The company has not been able to keep pace with the developing trends. The external environment has affected the networking of the Telstra. There is lack of services provided to the customers. The competitors of Telstra have been offering the same products and services at the price, which is lower than Telstra. The issues are related to the Telstra external environment. Moreover, there is a lack of effective strategies regarding the business process of telecommunication. Telstra has been facing the sustainability issues, which is relevant to the existence of the business. There is the growing issues of e waste, which needs to be handled in a coordinated and holistic manner. It also has been facing the compliance issues with the legislations that affected the local network of the company. This has made fierce competition in the telecommunication market. Telstra lacks international harmonization, which acts as hindrance to the development and growth of Telstra. The support tools of the company has faced the common problems. The service interruptions is complex and this affects the large events and localised events (Stead & Stead, 2013).

Recommendations:

  • Telstra needs to widen its brand portfolio. It should offer more plans in terms of mobile plans. This is so because it will help in catering the different demographics of their customers.
  • It is recommended that Telstra should come up with the personalize application, which would enable the customers to get all the latest updates, news and promotion.
  • Telstra should come up with plan that will offer better value to the customers. In order to implement the effective marketing strategies, Telstra should transform its corporate culture.
  • It should also improve the public relations by serving the customers in a better way. The information about the new products should be updated and the broadband capabilities should be developed. There is also need on part of company to realize the benefits of harmonization, when it intends to expand internationally.

Conclusion:

The SWOT analysis of Telstra has provided a comprehensive insight into the internal factures of company. It can be concluded from the above analysis that Telstra has few direct competitors. It is likely in the future that the untapped market of Telstra would introduce Telstra to its core competitors. The market growth of the company would be enhanced due to the growing technological innovations. Nonetheless, this trend is consider as the major input to the business continuity. Telstra needs to provide the customers with the better products and services. For this, the company needs to continue research and development.

Reference:

Barney, J. B., & Hesterly, W. (2015). Strategic management and competitive advantage concepts and cases. Pearson.

Dess, G. G., Peng, M. W., & Lei, D. (2013). Strategic Management Current Issues and Future Directions. Journal of Leadership & Organizational Studies, 20(4), 373-374.

Eden, C., & Ackermann, F. (2013). Making strategy: The journey of strategic management. Sage.

Hill, C. W., Jones, G. R., & Schilling, M. A. (2014). Strategic management: theory: an integrated approach. Cengage Learning.

Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2012). Strategic management cases: competitiveness and globalization. Cengage Learning.

Mellahi, K., & Frynas, G. (2015). Global strategic management. Oxford University Press.

Morden, T. (2016). Principles of strategic management. Routledge.

Rothaermel, F. T. (2015). Strategic management. McGraw-Hill.

Rothschild, A. A., JBWere, G. S., & Bank, U. I. (2012). Telstra Corporation Limited.

Stead, J. G., & Stead, W. E. (2013). Sustainable strategic management. ME Sharpe.

Telstra.com.au. (2017). Telstra.com.au. Retrieved 4 January 2017, from

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