BT Group operates in the telecommunications industry and is one of the worlds leading company in that industry offering products and services such as landlines, broadband, television and network information services or IT. BT offers these services under their five divisions: BT Global Services, BT Retail, BT Wholesale, Openreach and another small division which handles innovation and design and technology. BT Global services provide governments and large private companies IT services all over the world, including the UK. BT retail caters to customers in the UK including broadband, landlines and TV services. It also supplies SMEs companies in the UK through its BT Business operation and more complex services to larger enterprises through their BT Enterprise operation. Their wholesale operation services smaller providers in the UK and Openreach services their ‘local loop’ network. In the year ending March 2013 BT Group recorded annual revenues of £18b with operating profits close to £3b. BT Group’s Head Office is based in London and the company employs 87.900 people, with operations in 170 countries worldwide. The UK is the Groups largest market with 45% of its revenue followed by continental Europe with 32% of the revenue coming from there. BT Group became a public company in 1981 when it was separated from the UK Post Office. BT Group is the Universal Services Provider of the UK, except for the Hull Area. BT Group’s 6 Strategic Priorities
1. Driving Broadband Based Consumer Services
2. Being the Brand for Business for the UK’s SMEs
3. BT Global Services – a Global Leader
4. The Wholesaler of Choice
5. The Best Network Provider
6. A responsible and Sustainable Business Leader.
The Business Environment
“In strategy, the environment means everything and everyone outside the organization” Lynch (2005). Organizations will need to take the environmental factors into account, as they will impact on the organization and its strategies, and ultimately their survival. Johnson and Whittington et al., (2012) states that this environment is what gives organizations “their means for survival”. The business environment is made out of a few layers. The macro environment is the environment in which all industries operate; these are the external influences that will affect the second layer, the microenvironment, which is the more immediate area around a firm and their competitors. “An industry is a group of firms producing products and services that are essentially the same” Johnson and Whittington et al., (2012). A PESTLE analysis will help organizations understand the macro environment and a SWOT analysis would help understand the microenvironment. To analyze the competition within an industry or sector the Porters Five Forces tool would prove useful. Strategic Positioning
The organizations strategic position explains the impact the external environment will have on the goals and strategies of the organization and the choices organizations make to compete. To understand what your strategic position is, you must know what your strategic capabilities are, your strategic purpose and the environment in which you are operating. Johnson and Whittington et al., 2012 say, “Understanding these four factors is central for evaluating the future strategy”. Organizations must decide where they place themselves in the market and how they are going to use their position and competences to gain a competitive advantage on their rivals. Businesses can’t serve every single customer on the planet; they will have to focus their positioning. When deciding on what strategic position to adapt, organizations must consider the practical implications, as described by Lawson (2002). These implications are cost, quality, flexibility and response. According to Porter (1996) organizations will adopt a strategic position from three sources: Variety-based positioning, being able to serve a wide range of customers, but only offering a narrow...
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