Organizational Analysis

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Organizational Analysis
T-Mobile UK

Jose-Luis Andrade April 2010

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Contents

1. Contextual Description…………………………………………………. 2. T-Mobile UK - Current Organization………………………………… 3. T-Mobile UK’s Performance and its Environment…………………. 4. Strategic Opportunities for Change…………………………………. 5. References………………………………………………………………. 6. Bibliography……………………………………………………………...

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1. Contextual Description. T-Mobile is a telecommunications‟ organization part of the Deutsche Telekom group with headquarters in Bonn, Germany; T-Mobile counts with over 150,000 million customers globally and its organizational structure is composed of several strategically located regional divisions providing mobile services throughout diverse GSM networks across Europe and the US regions where T-Mobile owns business shares of other mobile telecommunications operators. These facts make T-Mobile the seventh largest mobile services supplier globally and the first largest telecommunications organization within the UK now after the recent merger with Orange UK. The year 2009 was a very important year for T-Mobile UK‟s history because of important changes within its management and organizational structure. In June 2009 after Jim Hyde left T-Mobile UK for personal reasons, Richard Moat was appointed the new managing director of the organization; Richard Moat occupied previously the position of Chief Executive Officer at Orange Romania. He was offered the opportunity of joining T-Mobile to manage the organization‟s operations within the United Kingdom thanks to his excellent record of a highly skilled manager who delivers development and positive results as declared to Mobile Europe‟s Editorial by Hamid Akhavan, Chief Executive Officer of T-Mobile International and member of Deutsche Telekom‟s management board. Immediately after joining T-Mobile UK, Richard Moat implemented the Value-led Attack Strategy which required drastic organizational changes in order to reduce operational costs, to improve personnel performance, and to design plans for investing in better networks for the future of TMobile UK. He established an Executive Committee in order to implement more strict regulations and control operational expenditure better which was in fact reduced by 8% only 5 months after his joining, and the EBITDA (Earnings before Interests, Taxes, Depreciation, & Amortization) increased 19% by the end of 2009 as he

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informed on December 2009 via a webcast video broadcasted within T-Mobile UK‟s Intranet and accessible by all employees. On September 2009, Deutsche Telekom‟s T-Mobile and France Telecom‟s Orange decided to merge their UK operations in order to become the biggest mobile telecommunications provider in the UK serving 29.5 millions customers; fact which represents 37% market share overtaking Telefonica’s O2 and Vodafone Group’s UK operator which occupied the first and second positions respectively. This action represents a crucial moment for T-Mobile UK‟s organization; therefore, Richard Moat who was previously working for Orange Romania as previously mentioned will be a key element to ensure the success of this Joint Venture. T-Mobile UK needs to ensure that its Strategic Operations are aligned to its Operational Performance within an organization which ensures there is a balance between the culture and its current external environment. T-Mobile UK and Orange UK have just announced their Joint Venture name being „Everything Everywhere‟ which positions this new company as the mobile telecommunications leader in the UK with over 30 millions of customers and 16,500 employees.

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2. T-Mobile UK - Current Organization The following report presents an organizational analysis of T-Mobile UK in order to learn and understand better how the different elements composing this organization interact with each other with the main purpose of finding whether there are opportunities for change and...
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