Telstra Case Study

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Telstra suffered from an embarrassing situation which risked losing its position of dominance. The main reason for this is that its management structure, that is, classical management. The report will argue that the problem of classical management and offer a recommendation for this situation.

From this case, it is clearly to identify the management problem is that classical management. There are some facts, which can prove this. One of the fact is that the organization assets were privatised in a way that allowed the organization to function as a monopoly. In addition, another fact is that Telstra block competitors' access to the network. Both of these examples emphasize Telstra aimed at controlling others. Telstra control market by controlling competitors in order that it is a monopoly. According to William C, the classical management focus is controlling others(1992). In terms of investment, Telstra invest $300 million in upgrading network, and they want to get all providers to use this network. This means Telstra maximize return on investment, they also focus on short-term goals. William C stated that the classical management revolves managers are seen as keepers of scorecards who manage toward short-term goals and they maximize return on investment(1992). All of this facts are in accordance with classical management models.

In view of the above-mentioned facts, a recommendation is provided. Telstra should adopt new paradigm management. According to William C, the new paradigm is focus on continuously knowing what is valued and what would be of more value to customer. Telstra should focus on customers rather than controlling others. In this way, Telatra could get more customers and market share. Also, this can lead a long-term benefit. Furthermore, Telstra should continuous improve strategical organizational suprasystems. For example, Telstra made the wrong call because of not separating into two companies. In this situation, Telstra should use...
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