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
Strength, Weakness, Opportunity and Threat Analysis
Within the Economy
Within the Competitive Environment
Within the Business
Improve Customer Satisfaction
Simplify The Business
Balance Score Card
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...
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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
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