Examination of Factors affecting Strategy and Policy at DataStream


DataStream Technology Sdn Bhd also known as DST was established April 1995, Due to large population in Brunei it is one of the big private communication services in Brunei Darussalam. It has many branches located in four districts. DST provides mobile communications services for local and foreign communities in Brunei. It has two packages for users, one post paid which is called prima, and the other service is by prepaid which is called 'Easi' card. In 2005 the company updated its mobile communication services to 3.5 HSDPA (high speed downlink packet access) and putting it status to par with the worldwide services. The service provides video calls, internet access, MMS also known as Multimedia Services and many more.

DST also provides other products other than mobile communication services. Hence, DST is also called DST group because it has many channel under one company such as

  • Incomm (Integrated Communications Sdn Bhd)
  • It provides one stop centre that provides all the telephone paraphernalia from mobile phones to telephony services.
  • Fas Com (DST Technical Services Sdn Bhd)
  • It is a local network communications provider and reseller of trunked two-way radios (push-to-talk)

Kristal Astro (Kristal ASTRO Sdn Bhd)

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It is the sole operator of Brunei's multi-channel pay television services.

Zippi (DST payphone Shd Bhd)

It provides Zippi prepaid phone cards and booths which uses the GSM technology.

DST Multimedia (DST Multimedia Sdn Bhd)

It is the first private licensed internet services in Brunei it offers post paid and prepaid card and lease line internet access services.

Kristal Media (Kristal Media Sdn Bhd)

It involves in the designed production and marketing of merchandise.

There are factors that can affect the company in the short and long term which influence the type of strategies and policies. The factors are PESTEL meaning Political, Economic, Social, Technological, Environment and Legal factors.

Political Factors

Political factor is something that happens politically with regards to tax policy, employment law and many more. These refer to the government policy to protect their own country, and provide goods and services to other country in term of trading, import and export businesses.

The factors include, for example,

  • current and future taxation policy
  • Tax policy (corporate and consumer)
  • industrial safety regulations

Businesses are affected by a government's tax policy (e.g. corporation and consumer tax) the higher the interest rate the cost of investment and depress consumer demand for credit. If the government keeps on increasing the tax it will affect the business of the company and if the government apply tax to corporate it will increase the amount of the product. To be able to pay the tax to the government the company will increase the premium to certain products and this will gain more profits to the company. Governments are responsible for enforcing and creating a stable framework in which business can be done. Example DST will increase the amount of buying the prepaid card the normal price for the prepaid card is $30 due to taxation and others DST can increase the amount to $55 per card. And also for the usage of the mobile phone instead of 0.20 cents per minute they can increase it up to 0.30 cents per minute this same goes to the other products of DST. This is how affect the business when the government increase the corporate tax.

Economic Factors

Economic factors are affected by the dynamic conditions and business cycles. There are numerous economic factors affecting businesses, that have to be considered and measures must be taken up, to minimize their impact. Government has set up economic policies to monitor its country by monetary and fiscal policies to encourage and control the business.

The factors include, for example,

Economic growth

Unemployment rate

Business cycle stage (e.g. prosperity, recession, recovery)

As mentioned above, economic growth will affect the business by giving opportunity of developing more in term of DST opening new branches and it can avoid unemployment rate and it can protect the economic stability, when the DST employ more people it can avoid from recession. When it comes to inflation it will affect the wages, the company and the productivity. It will disturb the business cycle. The economy will influence the planning process of DST. In times of boom, the overall planning purposes will be to identify the demand. Conversely, in times of recession, the importance will shift to cost-effectiveness continuing profitability, survival and competition.

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DST mobile communication services sold packages to different socio-economic groups. It has variety of choices especially on the post paid plan. The choices are between $35.00 to $165.00 monthly based on the individual needs and income level.

Social-cultural Factors

Social-cultural factor is the attitudes of people which provide structure within an organisation works. There are many changes in the attitudes and beliefs of society have taken place has time past. Businesses have to monitor about the changes in the social environment and to take immediate action for their business to grow. The social and cultural influences on business vary from country to country. It is very important that such factors are considered.

Culture in its sense is a sign of the customs, art, institutions and attainment of a nation, people and group. Each society has its own culture so Brunei culture differs from Chinese culture and so on. Within each society, there are many culture groups.

The factors include


Population health, education and social mobility

Lifestyle choices

Fashions and fads

Living conditional

From the above factors it is an important input into economic and business planning by people create demand for goods and services for example as days past by people are more demanding in new advance product and services hence DST is providing what the customer wants. Economic growth should exceed population growth for improved standard of living. Factors that influence the company's strategies and policies are employment by demography at the company. When children in the population will eventually reach working age, and if they can find employment, it will begin to contribute to the country's economic wealth however, if they cannot find work they will remain dependent then it will become more serious if more unemployment for a firm or country it will increase high rate of economic growth and the company will suffer from not enough employee.

For cultural mobile services with advanced technology can access internet through mobile phone for teenager the western influence can change the Brunei culture can easily influence by the western lifestyle which totally differ from Brunei lifestyle.

DST also sells different kinds of mobile phone with the latest design and technology hence, it also has variety of choices it will depend from the buyer needs and wants and lifestyle choices.

Technological Factors

As years pass there are fast growths of technology, and organisations must get used to themselves and their activities to it. Technological advancements encourage company to expand and to produce more products or to improve the existing ones. It is often cited the cause of change, but it is important to realise what we can mean by the word. Technology is vital for competitive advantages, and is major driver of globalization.

The factors include

Changes in Mobile technology

Speed of technology speed

Impact of emerging technologies (new discoveries and development)

This can affect the company technologies change by reducing production cost and so to reduce sales prices to customer too hence people are more quickly to adapt with the technology. It can gain better quality product and services if the company can follow the latest technology. Especially in the mobile communication services they need to upgrade themselves in order to attract more customers and to gain more profit since people are more into technology nowadays. Technological change can be planned for the developing strategies for improved productivity and for product development. When it comes to latest technology DST is the one who change the services effectively so that they won't be out dated.

Environmental Factors

Environmental factor is about what happen to the environment around us. With the effect of the temperature or climate changes this will affect some industries such as agriculture, tourism, insurance and telecommunication services. Somehow if there is a major climate change due to global warming and with external factor's of larger environmental awareness this become one of the important issue for company to consider. Many industries applied environmental friendly products for example by using reusable bags, paperless and many more and processes is affecting demand pattern and creating business opportunities.

The factors include

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Global warming

Environmental issues

The level of pollution created by the product or service

Above factors will influence the company by creating awareness of how important environment in such a big company especially DST they will reduce usage of the paper by going online for example post paid bill payment they encourage people to use online services to pay payment to check the latest bill rather than sending the bills every month to their mailing services. This will decrease the amount pollution creating by the company. It shows that the company is really cares about the environmental issues. DST will introduce the going green by advertising from the radio or by banner, as they are trying to encourage and make the customer understand.

Legal Factors

Legal factors are to avoid any discrimination and disability discrimination legislation against the genuine products. It will increase the minimum wage and greater requirements for the company to reuse of relatively recent laws that effect an organisation's actions. Legal changes can save the environment, hence, the company can make lots of profit from it.

The factors include

Intellectual property protection

Contract enforcement law

Competition law

There are many different types of laws in different countries for example consumer law this is to protect the customers against any misleading of the product. Competition law this is to protect small company being bullied by the big company. Employment law is to protect the employee against the managers and health and safety legislation to ensure the employee are well protected against disaster and to make sure that they are wearing the appropriate uniform while working.

DST is applying the law by protecting the company, employee and the products. The government will also protect the copyright of the company so that the image or the products won't be copy by other firm illegally this is to ensure the usage of the product is safety.


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