Telstra
ACCT 3583 Syndicate Case Study Report
Telstra Corporation Limited
By BIG MAC
Abilene Madeline Johan z3329202
Hui Melina Jarita z3357725 Lingbo Li z3346177 Li Chen z3326855 Xiaoyi Xu z3326452
Yinan Jia z3343736
Table of Contents
Executive Summary 3
Introduction 4
Strength, Weakness, Opportunity and Threat Analysis 4-6
Within the Economy 4
Within the Competitive Environment 5
Within the Business 6
Business Stakeholders 7
Strategies 8
Strategy Implementation 9
Improve Customer Satisfaction 9
Simplify The Business 10
Strategy Map 11
Balance Score Card 11
Conclusion 13
Bibliography 14
Appendix 17
Executive Summary
To advise Telstra on how to generate higher shareholder value, this report will recommend two strategies based on the assessed strengths and opportunities while addressing threats and weaknesses in Telstra’s internal and external environments.
The report begins withanalyzing Telstra’s internal strength and weaknesses as well as opportunities and threats to the business in the external environment. Major opportunities can be identified in the field of social culture, technological, demographic and global with minor threats founded in political and economic segment providing an overall opportunity to the business. However, it can be argued that there is high competition within the telecommunication industry due to substitute and intensity of rivalry factors hence Telstra should focus on its core competency and provide product differentiation. On the other hand, general economic uncertainty and high levels of competition within the telecommunication industry creates threat to
Telstra Corporation Limited
By BIG MAC
Abilene Madeline Johan z3329202
Hui Melina Jarita z3357725 Lingbo Li z3346177 Li Chen z3326855 Xiaoyi Xu z3326452
Yinan Jia z3343736
Table of Contents
Executive Summary 3
Introduction 4
Strength, Weakness, Opportunity and Threat Analysis 4-6
Within the Economy 4
Within the Competitive Environment 5
Within the Business 6
Business Stakeholders 7
Strategies 8
Strategy Implementation 9
Improve Customer Satisfaction 9
Simplify The Business 10
Strategy Map 11
Balance Score Card 11
Conclusion 13
Bibliography 14
Appendix 17
Executive Summary
To advise Telstra on how to generate higher shareholder value, this report will recommend two strategies based on the assessed strengths and opportunities while addressing threats and weaknesses in Telstra’s internal and external environments.
The report begins withanalyzing Telstra’s internal strength and weaknesses as well as opportunities and threats to the business in the external environment. Major opportunities can be identified in the field of social culture, technological, demographic and global with minor threats founded in political and economic segment providing an overall opportunity to the business. However, it can be argued that there is high competition within the telecommunication industry due to substitute and intensity of rivalry factors hence Telstra should focus on its core competency and provide product differentiation. On the other hand, general economic uncertainty and high levels of competition within the telecommunication industry creates threat to
Bibliography: AAP, 2012, Telstra to slash 650 jobs in shock revamp, The Australian, Accessed 8 September 2012, http://www.theaustralian.com.au/business/breaking-news/telstra-axes-more-than-400-jobs/story-e6frg90f-1226455066845 http://www.smh.com.au/business/telstra-expands-4g-coverage-areas-20120828-24xqo.html Battersby, L, 2012, Mobile phone costs rise as price war ends, The Sydney Morning Herald, Accessed 16 September 2012, Bingemann, M, 2012, Telstra 's 'Project New ' means big job cuts, The Australian , Accessed 16 September 2012, http://www.theaustralian.com.au/australian-it/telecommunications/telstras-project-new-means-big-job-cuts/story-fn4iyzsr-1226455283631 Department of Broadband, Communication and Digital Economy (DBCDE), 2012, What is the National Broadband Network?, NBN, accessed 15 September 2012, http://www.nbn.gov.au/2012/04/27/what-is-the-national-broadband-network/ Durie, J., 2012, NBN boss warns on virtue of monopoly, The Australian, Accessed 8 September 2012, http://www.theaustralian.com.au/business/in-depth/nbn-boss-warns-on-virtue-of-monopoly/story-e6frgaif-122646855871 Foo,F, 2011, Telstra bucks complaints trend, The Australian, Accessed 16 September 2012, http://www.theaustralian.com.au/australian-it/telecommunications/telstra-bucks-complaints-trend/story-fn4iyzsr-1226188682623 Mcdonald, S., 2012, Coalition could revoke Optus and Telstra NBN agreements, Computerworld, Accessed 8 September 2012, http://www.computerworld.com.au/article/435590/coalition_could_revoke_optus_telstra_nbn_agreements/ McDuling, J, 2012,Picking the right telco stock a tough call, Australian Financial Review, accessed 16 September 2012, http://afr.com/p/technology/picking_the_right_telco_stock_tough_L0buFsz9bEQnpbOdVOOyxL Naumann, E (1995). Creating Customer Value: The Value to Competitive Advantage. New York: Thomson Executive Press. Telecommunication Industry Ombudsman (TIO), 2011, 2011 Annual Report Fast Facts, Telecommunication Industry Ombudsman Media Releases, Accessed 16 September 2012, http://www.tio.com.au/publications/media/2011-annual-report-fast-facts 2011 Current Ratio= Current Asset/ Current Liability=7453/ 8538= 0.8729 2010 Quick Ratio=(Current Asset-Inventory)/ Current Liability= (7185-295)/ 8682=0.7936 2010 Quick Ratio=(Current Asset-Inventory)/ Current Liability= (7453-283)/ 8538=0.8398 2.Long-term Solvency