Strategic Analysis of operations at the Telecom

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CORPORATE MANAGEMENT IN ACTION

Corporate Managment in Action has assisted me in gaining greater knowledge and appreciation as it relates the to functions of the manager, at the corporate and business level of the hierarchy of the orgnisation as well as the importance of strategy to the survival and competitiveness of an organiation.

As a result I was able to conduct a PESTEL of Telecommunications Limited of which I have been employeed for the past fourteen years. The under-mentioned is an assessment of how an organisation utilise their core competencies to gain competitive advantage in a global recessionary market.

Politically as a direct consequence of the global recession many countries in an attempt to protect their economy and local industries impose trade embargoes and tariffs in an attempt to prevent and make it more difficult for the importation of products into their country.

The effects of the double-dip in the global economic recession has resulted in a decrease in sales of as many persons are unemployed as many companies inability to financially able to meet their overhead cost. As a result many persons have chosen to hold on to their savings due to the economic uncertainty. The recession has impacted operations as countries in which companies operate in, may deglobalised there markets and try to promote buying-in to their local products and services instead of products from the international market. Therefore, this would reduce companies' earning potential and as a result of the decrease in customer spending.

Socially, many global companies are able to take strategic advantage over their competitor since they have been outsourcing the primary level of the activities of the company's value chain. This strategy is used to increase employment levels in developing countries as they grapple with the social effects of the global recession, such as increased unemployment and criminal activities.

While technology supports the development of new products in addition to which research and development systems and methods to improve the production process. Technology can result in an efficient distribution chain which ensures that their goods reaches the consumers as and when they are needed ensuring that just-in-time delivery is maintained. I.T. offers countless opportunities to simplify, streamline, and improve every aspect of operational activity, however, it is costly to the organisation. The cost of new technology however, is absorbed by the customer in the form of higher prices.

The rate of technological change and the cost of purchasing new technology varies between industries as advances in technology affects the production process and the cost of manufacturing or service delivery. To be more competitive businesses need to keep up to date with new and innovative technological advances.

Through its clear definition of their roles and their relationship with their customers, an organisation is able to increasingly develop strategies and systems to ensure that products reaches the customer on time and is of the highest marketable quality available at affordable prices. As a result organisations are better able to determine the long-term success of the organisation and analyse the strategies which are currently employed and what part they play in establishing the competitiveness of the organisation.

Personal I have used the knowledge acquired in this area of study to academically advance myself to obtain a secure a better paying job and practicing wise spending patterns

PESTEL ANALYSIS

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Although, there are also legislations to control the ethical and lawful management organisations. Businesses must conduct their operations according to the rule of law as it pertains to the countries in which they operate especially regarding the human rights act, the protection of workers and the proper implementation of the Occupation Health and Safety Act. These laws are enacted to protect worker from exploitation, abuse, discrimination and violation. If workers feel that their rights, while employed have been violated by the company they have a course of action which they are obligated to take against their employer.

The violation of workers' rights can be very damaging to the image, brand and reputation of the organisation. Acer has been challenged by the spate of suicides at Foxconn whom they outsource too. Many third world countries and their labourforce are exploited through outsourcing and offshoring because there are many poor and unpriveleged persons and the demand for jobs are great.

At this level business operations must be conducted ethically to the benefit of its stakeholders (employees, environment, customers, shareholders, suppliers, competitors). Organisations have a responsibility to society and by its interaction with its stakeholders must reflect and represent the organisation's best interest.

It is of utmost importance that organisations develop a written code of conduct as this can force a number of employees at all levels to align their behaviours with the mission of the company and its societal obligations. Acting ethically is the socially responsible thing to do and developing a code of conduct can set-up a framework of ethical behaviour and with the recent scandals of Enron and Alan Sandford this action would be embraced and welcomed.

The effects of corporate actions can go beyond the company boundaries and affect the general public when fraud and bankruptcy cases which can total billions of dollars in losses impacting on society to bail-out organisations from their debts. The emergence of corporate codes of ethics and changing the way businesses operate.

There seems to be a lapse in the level of checks and balances which have been implemented by legislation to protect the financial investment of stakeholders as many organisations are shirking their responsibility by failing to ensure that corporate governance and ethical business practices are observed.

Because of the course I am in a better position to determine the negative impact which poor corporate governance and ethical practice can have on the brand and image of a product, which may lead to reduced sales. The need to ensure that proper standards and set and adhered to to penalise those persons breaching these standards are punished if found guilty to the fullest extent of the law.

At the business level operational strategies are implemented which allowing for the hiring of the best skilled, qualified and trained employees who are able to work efficiently with minimum supervsion. Employees should be empowered to be a part of the company's decision making processes. This has allowed the company to be increasingly innovative in fullfilling the vision, missions and values of the organisation. The proper implementation of business strategy would result in the organisation realising its competitive advantage.

STRATEGIC CAPABILITIES

Strategic capabilities are the strengths, such as their skilled human resources and their efficient value chain and distribution channels. Companies developed strategies to overcome weaknesses converting them into strengths which the organisation can capitalise on to gain competitive advantage. The standisation or adaptation of the production process in the manufacture of their products allows companies to increase its production output with increased accuracy and efficiency, thereby enjoying economies of scale.

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Many companies outsourced to a number of global manufacturers where they are able to produce at a cheaper cost and there is the easily availability of raw material and a skilled labourforce. This however, can be a challenge as governments wish to protect their local industries. Therefore, goverments may impose trade tariffs and embargoes on the company's products thus making them more expensive for import.

It is equally important that when an organisation is hiring its human resources that they possess the right competencies and qualities which are suited for the job that they are being employed to perform, this may result in increase production with greater efficiency and accuracy allowing the organisation to enjoy economies of scale. This would ensure that the strategic objectives of the organiation are properly implemented to secure the long-term survival of the organsiation in a globally competitive environment. H.R. faciltate the organisation's ability to achieve its strategic goals since the strategic drivers are the intellectual capital, managing diversity in the workplace, embracing new technologies, building the business through mergers and acquisitions, and providing an environment where it is possible for employees to maintain a work-life balance. If these things are not intergrated the organisation will loss it competitive edge since there would be not synergy in the organisation

However, it is worth noting that outsourcing limits the ability of the organisation to develop specialists. Through standardising the outsourcing process can be difficult due to time arbitrage the different partners are at different time zones.

Management can also determine the sustainablity of the product which they are offering, whether or not the product has growth potential or not, use resource and divest into other areas etc. Therefore, I am in a better position to determine what type of products to invest in and which ones not too, through product and service innovation, market research and product development. Thus allowing the organisation to gain competitive advantage through development of its strategic capabilities above its market rivals.

Competitive advantage can be derives from the distinctiveness of an organisation's capabilities

Some businesses achieve extraordinary profits compared with others in the same industry

Their resources or competences permit production at lower cost generation of superior product or service at standard cost.

The uniqueness of a company is the key to profitability and not through its copying other firms, but capturing and maximising their differences. Establishing competitive advantage involves formulating and implementing a strategy that exploits the uniqueness of a firms portfolio of resources and capabilities

As many organsations use benchmarking to improve this level and standard of production which can result in better quality products and services, increased expectations due to improved performance in another sector allowing for diversification into new areas of business, setting standards above the performance of their competitiors and building on core competencies.

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Culture is simply our beliefs and values that influence our behaviour, ideas and interaction with others. In understanding the cultural diversity of others this can certainly help in preventing conflicts in the work please, allowing for persons to be more tolerant respecting the uniqueness of others. Culture assesses the compatibility between organisational culutre and what issues which may arise due to cultural differences between the workforce. Instead of viewing cultural diversity in the organisation as a negative management must use it as a driving force to influence change within the organisation.

Conclusion

To reestablish their company in the global marketplace, businesses must continue to respond to the needs of their customers by developing products that anticipate and shape those needs. They must adopt the latest technologies that will help them market products effectively in the global market. To remain competitive in a changing global environment, companies must anticipate and influence the needs of the consumer, differentiate their products from their competitors, offer a more superior value product or services than their competitors.

Personal Statement

Consumers are becoming more aware of how they can make a difference and influence the drive the globnal environment and market to produce goods and provide services which are of marketable standards, consumers want value for their money. It is therefore through their understanding of the needs of the modern consumers can an organisation make a step towards developing a competitive marketing strategy with this in mind the organisation can therefore develop a strategy that meets or exceeds the needs of their consumers.

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