Telstra is one of the Australia’s leading telecommunications provider. For many years Telstra owned monopoly in telecommunication market. A change in government policy to reduce the monopoly power of Telstra has resulted in many problems. Telstra is following Classical approach of management as it seeks to achieve effectiveness by focusing on task efficiencies i.e. focusing on their next G wireless broadband and not on external stakeholders (Schermerhorn, Davidson, Poole, Simon, Woods, Chau, 2011, pg. 183). Telstra needs to use more humanistic or contingency approach of planning. This report will argue the need for Telstra to use more contingency approach of planning to regain its market dominance.
Telstra as a telecommunication provider has many external environment which it needs to take into consideration while making decision. In particular, government change in decision has led into many problems that Telstra is currently facing. Telstra was following non-competitive behavior as Telstra owned the network as a wholesaler and also sold the network to customers as retailer. Telstra also needs to change its classical approach of planning into contingency or humanistic approach of planning. So, that it can cope with uncertainty as contingency planning assume various set of assumptions about the future and help to minimize the risk of negative events (Bloom, M. J., & Menefee, M. K., 1994). As Mintzberg states, “Classical planning often tends to understate both creative and strategic level of thinking making it more difficult and creating inflexible resistance to major strategic changes. It discourages truly novel ideas in favor of extrapolation of the status quo. There by, focusing attention on the short term instead of the long term.” Another problem was Telstra didn’t cooperate with government by refusing to bid on the Australian government plan for a national broadband...
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