attached are the pictures

ENVIRONMENTAL ANALYSIS OF TELSTRA CORPORATION
Executive Summary
This report provides the basic information regarding the history of the Telstra Corporation, the way it changes and also identifies the challenges faced by the company during the growth. In order to analyse the variable strategies used for management and decision making over the years, SWOT analysis and PESTLE analysis are used. SWOT analysis will provide information regarding the internal strategic decision or factors while the PESTLE analysis provides information regarding the impact of macro environment on the company due to its multinational approach. These analyses will also provide the data regarding the strength, weaknesses, based on which recommendation can be made, which can then be incorporated by the company in order to eradicate the persisting issues. These recommendations are efficient cash usage, recruitment of more skilled labour, multinational expansions and provision of a continuous supply of new products
Introduction
Australia’s biggest communications company known as Telstra Corporation Limited originated from Australia’s oldest communication department that was Postmaster’s General Department. In 1970, Postmaster’s General Department split into ‘Australian postal commission’ and the ‘Australian telecommunication commission’ also known as ‘Telecom’, which upon merger with ‘Overseas Telecommunications Corporation’ changed its name to ‘Telstra’ in 1993. Within 1997 and 2011, the federal government privatised this corporation (Telstra, 2019). From there only, Telstra has set milestones in the telecommunication industry with the introduction of optical fi
es and High Definition TV (HDTV) in 2007, National Broadband Network in 2008. It has also set foot in healthcare and finance, which were also successful. However, under the leadership of new CEO David Thodey, Telstra became more focused towards sales and service (Telstra, 2019). With a future perspective as Telstra2022, the corporate strategy of the company will lead Australian markets by simplifying products and services in order to improve customer service, reduce cost and simplified operations.
Analysis of Telstra’s Internal and External Environments to Recommend Strategies for Future Strategic Directions
In order to provide a complete analysis of Telstra, SWOT analysis can be done to identify internal and some external strategic factors while PESTEL analysis can be done to study the impact of macro environment.
SWOT Analysis of Telstra
The Strengths (S), Weaknesses (W), Opportunities (O) and Threats (T) Analysis is a useful technique in order to provide a better understanding of Telstra’s business environment. It is an effective tool for this corporation because it a telecommunication company. This analysis also reflects the coordination among various departments such as marketing, operations and finance (Papakonstantinidis & Jurcic, 2018).
Table 1: SWOT Analysis of Telstra
Strengths - Telstra possess multiple strength pillars in terms of reliable suppliers that enable company to overcome supply chain bottlenecks, strong dealing where dealers not only sell its product but also promote the company, successful got market strategies and good returns on capital investment (Telstra, 2019).
Weaknesses - Telstra needs to work upon its investment policy in new technology from now only because as of now company’s expansion plan will force it to invest in technology later on. As suggested by Muenjohn et al. (2018), further improvements are required in research and development, marketing strategies of a desired product, setting foot in new business and integrating different cultural firms into the business.
Opportunities - Opportunities (external strategic factors), by which Telstra can improve include cutting down transportation cost to
ing down the cost of product, stable cash flow, use of online channels to attract new customers, decreasing inflation rate and much more (Telstra, 2019).
Threats - Shortage of skilled work force, lawsuits from various markets, competitors with advance and cheap technology are some of threats that company can face.
PESTEL analysis of Telstra
Telstra, being an international corporation, possess numerous macro environments and analysis of Political, Economic, Sociocultural, Technological, Environmental and Legal factors (PESTEL) that is will provide a clarified image of the impact of these external or macro environments. The factors included are based on not only individual firm, but also taking into consideration potential competitors and their impact on the market of respective firm. The analysis is as follows—
    Factors
    Analysis
    Political
    Telstra functions at multinational level and therefore have to face dynamic political instabilities, risks of military invasion, co
uption practices, Intellectual property prevention, bureaucracy, work regulations, employee benefit and much more
    Economic
    Growth rates and financial investment of the company has to vary according to the regional level. Therefore, as stated by Bankins and Waterhouse (2018), economic factors include identification of type of economy, government interventions in the market, stability of host cu
ency, infrastructural quality, education level, labour cost, inflation rates, interest rates and much more
    Sociocultural
    Taking into consideration the social beliefs and attitude of host population social factors to be considered are, demographics, class organisation and hierarchy, culture, entrepreneurships and health and environmental consciousness
    Technological
    Technology is the boost that an organisation needs to rise up in the market therefore technological factors that impact Telstra are, competitor’s recent innovations, capital invested in innovation, rate of technology diffusion, availability of skilled labour, and the value chain structure
    Environmental
    Environment poses variable threats when it comes to telecommunication because various disasters impact the company’s investment and these factors include, weather, climate, air, altitude, recycling, protection of endangered areas and animals (Muenjohn et al. 2018)
    Legal
    Legal framework of each company is dynamic and may possess some embezzlement factors therefore legal factors include, copyright laws, Intellectual property laws, human rights, data protections, health and safety concerns, consumer protection and employment laws
Table 1: PESTEL Analysis of Telstra
Recommendations
· Telstra’s investment planning according to the SWOT analysis is not efficient as the cu
ent asset ratio and liquid asset ratio presents that a more efficient cash usage can be done by the company.
· The outcomes from the Telstra’s research and development (R&D) are below than the expected as analysed PESTLE. Therefore, it needs to work on the recruitment of more skilled labour in order to decrease the R&D cost and utilise it in marketing, which is another weak point.
· Telstra’s multinational expansions allow it to face the dynamic human rights and environmental legal suites. So in order to improve that, planning and management of the process and outsourced investigation of the project site can be done, which can include regional lawyers and intellectual property advisors (Popa, 2018)
· PESTLE analysis further suggested that the company has not been able to provide a continuous supply of new products. However, as argued by Pappu and Quester (2016), modified products were made available but the lack of regular supply of innovative products generates disinterests among consumers towards the
and, and soon the
and is considered as outdated.
Conclusion
Telstra is the collaborative result between Telecom and ‘Overseas Telecommunication Corporation’. The company has set milestones in field of communication and other than that health and finance sector are now also being covered by the company. Cu
ent study presented the SWOT and PESTLE analysis of the strategic management and decision making of Telstra over the years. Analysis presented the strengths and weakness of the company in variable aspect and being a multinational company it has to imply every aspect in order to continue its expansion further, based on the analysis recommendations that the company can incorporate were suggested.
References
Muenjohn, N., McMu
ay, A, Fernando, M, Hunt, J, Fitzgerald, M, McKenna, B, Intezari, A, Bankins, S & Waterhouse, J 2018 Leadership Cam
idge: Cam
idge University Press
Papakonstantinidis, LA & Jurcic, I 2018 ‘Eight Key Fields analysis (EKF) and the 3-pole (win-win-win) challenges for mobile telecommunication’
Pappu, R & Quester, PG 2016 ‘How does
and innovativeness affect
and loyalty?’ European Journal of Marketing, vol. 50, no. 1/2, pp. 2-28
Popa, C 2018 ‘Globalization Opportunity and Threats’ In International Scientific Conference “Strategies XXI" vol. 2, pp. 114-118
Telstra 2019 Telstra - Our corporate strategy Available at: https:
www.telstra.com.au/aboutus/our-company/future/Ourcorporatestrategy [Accessed 29 Mar 2019]
Telstra 2019 Telstra - Past - Our Company Available at: https:
www.telstra.com.au/aboutus/our-company/past [Accessed 28 Mar. 2019]
Strengths
Telstra possess multiple strength pillars in terms of reliable suppliers that enable company to overcome supply chain bottlenecks, strong dealing where dealers not only sell its product but also promote the company, successful got market strategies and good returns on capital investment (Telstra, 2019).
Weaknesses
Telstra needs to work upon its investment policy in new technology from now only because as of now company’s expansion plan will force it to invest in technology later on. Further improvement are required in research and development, marketing strategies of a desired product, setting foot in new business and integrating different cultural firms into the business.
Opportunities
Opportunities (external strategic factors), by which Telstra can improve include cutting down transportation cost to
ing down the cost of product, stable cash flow, use of online channels to attract new customers, decreasing inflation rate and much more
Threats
Shortage of skilled work force, lawsuits from various markets, competitors with advance and cheap technology are some of threats that company can face
7