Analyse Pestel Orange

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BMN301 Building and Sustaining Strategy
2011-12 Portfolio Assignment

University of Gloucestershire

Week 2 – Mission, Vision, Goals and Objectives – Orange Group (France Telecom) Orange is the key brand of France Telecom (FT), a leading telecoms operators and the leading mobile provider in France, with more than 130 million subscribers in Europe. The Orange brand encompasses FT's Internet business, digital television and computer telephony services. In the UK, Orange is the leading carrier through a joint venture with T-Mobile (Deutsche Telekom) called „Everything Everywhere‟. Spain and Poland are key wireless markets, and subsidiary Orange Communications serves Switzerland. Outside Europe, Orange is active in Africa, the Middle East, and the Caribbean (Yahoo, 2011 and Orange, 2011). Orange‟s strategy is the broad direction in which they aim to determine their long- term goals and objectives, through courses of action or a pattern in a stream of decisions, to allocate resources in order to deliver a unique mix of value (Chandler, 1962; Porter, 1996; Johnson et al, 2011) - thus fulfilling Orange‟s mission to reach its visionary state. In order to deliver this strategy, Montgomery (2008) cited in Johnson et al. (2011) suggests managers can ensure that all stakeholders understand the purpose of the organisation, by expressing it through means they easily relate to – this is attempted by Orange through their mission, vision, goals and objectives statements.

The Mission
The mission Orange portrays should be displayed through a brief statement, defining the fundamental purpose of the organisation, which can be understood with clarity by all stakeholders (Johnson et al, 2011; Kaplan et al, 2008). Orange‟s (Conquest, 2015 2010: 1) organisational mission is:

“To become the global leader in the integration of communication solutions.” It answers the fundamental question, (1) „What business are we in?‟ – For Orange this is communications solutions, however the statement needs to further „make this clear in longterm purpose… [by asking]… (2) „What would be lost if the organisation did not exist?‟… [and]… (3) „How do we make a difference?‟ (Johnson et al. 2011: 120). Collins and Porras (1996) suggest that the mission statement can be underpinned by asking (4) „Why do we do this?‟ (cited in Johnson et al. 2011: 120). Orange explicitly states it „believes that progress is worth nothing unless it is shared by all‟ (CSR report, 2011: 5). The statement below shows Orange wants to make a difference, by becoming the „benchmark‟ organization for CSR, in the telecoms industry – thus, this statements answers question (3): “Corporate social responsibility is a key factor in the Group‟s future success, and a source of value creation for all its stakeholders. Based on this conviction, Orange has defined an

BMN301 Building and Sustaining Strategy
2011-12 Portfolio Assignment

University of Gloucestershire

ambitious strategy to enable it to become the benchmark for corporate social responsibility in the telecommunications sector “(CSR, 2010: 5).
The statement does not however answer question 2 and this could be due to the evolutionary industry Orange operates in, which it recognizes is a tremendously dynamic sector „driven by technological advances…a constant flow of innovative services and by the arrival of major new players‟ (Annual Report, 2010: 6). The industry and Orange is constantly undergoing incremental change (Plowman et al. 2007; Balogun and Hope-Hailey, 2004) with new products and services. Radical change is thus required, in order to adapt Orange‟s strategy (Plowman et al. 2007) to a changing environment, resulting in transformational changes (Bologan and Hope-Hailey, 2004). Hence, their current focus is on CSR – conviction they hold down to the realization that a key to future success is through value creation for all stakeholders simultaneously (CSR, Orange, 2010).

The Vision
The following vision from Orange‟s...
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