Telstra

Topics: Strategic management, Telstra, National Broadband Network Pages: 17 (3989 words) Published: October 12, 2013
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 Summary3
Introduction4
Strength, Weakness, Opportunity and Threat Analysis4-6
Within the Economy4
Within the Competitive Environment5
Within the Business6
Business Stakeholders7
Strategies8
Strategy Implementation9
Improve Customer Satisfaction9
Simplify The Business10
Strategy Map11
Balance Score Card11
Conclusion13
Bibliography14
Appendix17

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’s shareholder value generation. Moreover, according to history Telstra has a strong brand reputation in comparison with the other firms in the Australian market thus the position in market competition is enhanced.

Furthermore, the relationship with five major stakeholders of Telstra namely customers, competitors, government, employees and suppliers are discussed. Each stakeholder has individual interest therefore align interests of those parties with generation of shareholder value is important for the growing of business. This report suggests a measurement for each party that Telstra could apply to exam whether the creation of shareholder value has been violated and how could firm achieve collaboration with these stakeholders interest.

To improve customer satisfaction and simplify the business are deem to be the main focuses for Telstra based on the 2011 Telstra Annual Report. The evaluation of each strategy is linked to the SWOT analysis discussed along with the generation of value for shareholders. In addition, cost and benefit analysis and value added analysis would demonstrate the reasons why these two strategies are preferred.Corporate Balanced Scorecard (BSC) outlines how each strategy will be implemented, measured and evaluated. More specifically, the objective and measurement that can take to measure whether the target has been met with a strategy map that illustrates the interaction of four different perspectives of financial, customer, internal business processes and learning and growth. Introduction

Telstra Corporation Ltd (known as Telstra) is the leading telecommunications and media company in Australia. Telstra’s business has been expanding among the most Asia-Pacific region since 1901 and listed on the Australia, New Zealand and New York Stock Exchange. A comprehensive analysis is included in this report, which concentrates on business operations through SWOT analysis in order to outline the key opportunities and threats within the...

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
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