The General Environment of Telestra Company (Term Paper Sample)

Telestra Company Report
Name
Institution
Executive Summary
Telestra Company is Australia’s leading telecommunication with a wide-range of services provided to its customers. The organization is led by its purpose which determines its operations that are directed towards meeting the stated purpose of the company. The company which is formerly state-owned dominates the telecommunications industry despite the high competition in the industry. Companies like Vodafone, Optus, and Vocus have helped shaped the telecommunication industry through the stiff competition they offer Telestra Company. The company has also been influenced in its operations based on the need to fulfill its CSR responsibilities. The company has initiated a number of sustainability programs to their employees, environment and community. The company has also an organizational culture that is value based. Therefore, the core values of the company are used by employees in determining how their beliefs, values and principles. The organization culture of Telestar can suit me based on my key aspects in an organizational culture.
Introduction
Telestra Company is Australia’s leading telecommunication and technology service provider. The company provides a full range of communication services as well as competing in the telecommunication markets. The company operates internationally in more than 20 countries but Australia remains its leading market with 17.4 million mobile service customers, 6.8 million fixed voice services provided and with a client base of 3.5 million in retail fixed broadband services. The company which was formerly state-owned has undergone various transformations in the past to enable it compete successfully in today’s Australian telecommunication industry. The company aims at reaching and connecting more people hence providing them with a variety of opportunities. The company’s current performance and operations have been influenced by a number of factors including the purpose of the organization, the general environment, corporate social responsibility and ethics, along with its organizational culture. This report is aimed at investigating these four key factors in relation to the company’s operation.
Purpose of the Organization
The purpose of an organization provides a goal plan or objective that the company aims to achieve. The purpose helps the company to perform better planning on its activities that are directed towards achieving their primary goals. Purpose is used to express the fundamental value of the company and therefore it is an important aspect that is the end to which strategy is directed (Foster, 2012). Telestra being a telecommunication industry, its general purpose is based on creating a brighter future for everyone. However, their purpose is broken down into three major aspects that are derived from their purpose statement. Telestra company purpose is ‘To create’. In delivering the bright future it has promised, the first step is to create it. Telestra affirms to the fact that they have what it takes to create the brilliant future hence accomplishing the first part of its purpose. The second purpose is ‘A brilliant connected future’. This is Telestra’s aspiration and, therefore, the company works towards building a brilliant connected future to all of their customers and in any market environment they work in. ‘For everyone’ is a crucial purpose for Telestra as the company serves everyone. In order to achieve change, everyone should be involved and this is the reason why Telestra aims to reach everyone and provide them with technologies that will help create economic, social, and cultural change (Telestra Corporation Limited). When all of the three purposes are added into a statement, they provide Telestra main purpose ‘To create a brilliant connected future for everyone’.
Telestra’s General Environment
Telestra Company operates in the telecommunication industry which is experiencing enormous growth based on the technological advancements that are being developed rapidly. Telecommunication in the 21st century is one of the most technologically developed industries in the global arena. Over the last few decades, enormous technological developments have been achieved in regard to telecommunication industry hence proportionally increasing the growth of the industry. The growth of the industry has led to increased competition in the industry hence Telestra facing a number of competitors. The competition in Australia’s telecommunication industry has increased with time as more companies enter the market to share the benefits of the industry’s growth as well as the market share. Despite the steep competition, Telestra Company has managed to continue dominating the telecommunication industry based on the wide-reach of its services to the Australian people. However, the leading position of Telestra Company has been attributed to the fact that the company was formerly state-owned and monopolized the market hence expanding its reach. Nonetheless, the new players in the market are keeping Telestra on its toes to ensure that that it stays competitive in the current market. Due to the open competition environment with minimum entry and operational requirement, Australian telecommunication industry is expected to experience higher competition which is based on the high number of operators in the market.
Competition is an important factor in any business environment as it leads to better service delivery as well as better operations for the company that enables increase of its revenues. Telestra Company faces a number of competitors on its wide-range of eservices it provides. In a report released by Australian Competition and Consumer Commission (ACCC) in 2015-2016 findings, it indicates the competition aspect in the Australian telecommunication industry. The National Broadband Network (NBN) is one of the services provided by Telestra Company. Based on the ACCC report, the competition in the NBN wholesale access services was acquired by Telestra (48%), TPG (26%), Optus (14%), and Vocus (6%). As of June 2016, more than 94% of Australian had access to 4G mobile network services provided by three companies (Telestra, Optus, and Vodafone). The report however recommends increasing the competition in this sector so as to allow better service delivery. In mobile handset services also provided by Telestra Company, there is a stiff competition but Telstra still remains dominant with a 45% share in the market, followed by Optus at 27% share and Vodafone gaining an 18% share in the market. Based on the ACCC report, telecommunication industry in Australia remains competitive, but still Telestra Company remains dominant in most of the services they provide (Flannery, 2017).
Therefore, in dealing with competition in the telecommunication industry, Telestra Company needs to position itself effectively to ensure it maintains the dominant position. One of the ways that Telestra can ensure it increases its competitive edge is by adjusting its pricing plans to ensure that most of the population can easily afford them. Based on the report released on the pricing model of different telecommunication companies in Australia, Telestra was leading with high prices on a number of its services provided (The CIE, 2015). The higher prices limits the clientele base which the competitors can use as an advantage by providing similar services at an affordable price hence luring more clients. By gaining more clients, competitors might be in a better position to dominate the industry. Therefore, Telestra Company has to take into consideration the need to reach everyone as it states in its purpose as higher prices for the services provided will limit the number of people reached. Alternatively, Telestra can provide services based on a pricing plan that meets the needs for everyone. For those willing to pay higher rates, Telstra should provide customized services while for the rest of the population they receive the general services which meet their needs. This will ensure that Telestra captures the entire market right from the top to the bottom. This will also help in increasing the revenues that will help the company to compete effectively. Based on the rapid technological development in the telecommunication industry, Telestra Company also ought to be well updated in the technological front so as to integrate the new technology which will help in providing better services to their clients hence competing effectively.
Telestra Corporate Social Responsibility (CSR) and Ethics
Corporate social responsibility commonly known as CSR is an initiative by the company to take responsibility for the effects caused by the company on the environment and social wellbeing (Crowther, & Aras, 2008). The CSR initiatives involve the company going beyond its requirement placed by the regulators to ensure that both the environment and people within area of operation benefit from the company. The CSR initiatives are not-for- profit ventures and there are various ways in which a company can participate in CSR activities (Matten, & Moon, 2005). As a company that has a wide-reach and operates both in international and national arena, Telestra has a bigger role in terms of achieving CSR programs. However, the company has taken some of the key initiatives that interest the company and have successfully implemented CSR programs that are meant to sustain both the environment and people. Telestra CSR initiatives have been divided into three categories involving the community, employees, and the environment.
Telestra Company has participated in a number of community programs that are aimed at improving the wellbeing of the communities. One of their programs is aimed at promoting digital li...