Bell Aliant Strategic Objectives Commerce Essay

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Bell Aliant Inc. is the leading provider of telecommunication service in Atlantic Canada. It has a long history of operation in the Canadian telecommunication sector from 1888. Bell Aliant employees more than 90,000 employees and it is the largest income trust in Canada. Innovation, management, employee engagement and focusing on its vision is the key factors of bell Aliant's success. The paper analyses the management factors and the strategies followed by bell Aliant in all aspect in management. The paper encompasses the brief introduction, the longstanding history of this organization, its strategies, functions, alliance and joint ventures, management, financial analysis and management analysis of its operation.

Introduction:

Bell Aliant is one of the North America's largest telecommunication providers. Bell Aliant currently serves 5.3 million Canadians in telecommunication sector with multiple services like regional wire line telephone service, satellite service, mobility service, wire line cable network, high speed broadband, fiber op internet, IPTV cable television and many. Also serving its customers with full range of communication service that includes voice, data, internet, video, and value added business solutions. Bell Aliant also has the joint venture with Bell Canada's wire line business in Ontario and in Quebec. In Ontario and in Quebec Bell Aliant have its regional wire line connections in non-urban areas and mostly urban areas were covered by BCE (Bell Canada Enterprise). Bell Canada owns 44% of Bell Aliant shares and the rest by its managing shareholders. Bell Aliant is also one of the subsidiaries of Bell Canada but Bell Aliant owns much of what were Bell Canada's territories in rural areas in Ontario and in Quebec. (Aliant, 2012)

Research Theory:

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This paper going to analyze the organization (Bell Aliant) on the basis of its operating strategy, financial condition, its market, organization background and explains the history of the organization from its emergence to up-to date, a brief overview of its services provided to its customers. Also paper will analyze the whole key justifying strategies.

Bell Aliant Vision:

"Bell Aliant vision is to be the leading communications provider in the markets we serve"

This vision statement is very brief and explaining that Bell Aliant want to be the leading communication provider in its territories. As like Michael porter says this organization don't want to be the best in the business but it focus on how to be the leading service provider. The leading will provide the way for increasing its shareholders, profit, brand popularity and extending its market. (Aliant, investor relation, 2012)

Bell Aliant Strategic Objectives:

Improve the customer experience,

Retain our Customers,

Grow Broadband,

Rest our customer structure,

Engage employees.

Noteworthy Facts:

Bell Aliant was established in July 7, 2006, but Until spring 2009 the company operates in the former name Aliant in Atlantic Canada and then all it start to operate as Bell Aliant in Atlantic Canada. It serves its customers with innovative information, communication and technology services. Through i9ts IT division called Xwave it delivers IT professional services and advanced technology solutions. Bell Aliant stands for its superior commitment in delivering the highest quality of customer service by considering customer choice and convenience. Bell Aliant is also one of the largest income trusts in Canada. In 2009, the revenue of Bell Aliant was $3.2 billion and currently Bell Aliant heavily invested in FTTH (fiber to the home service). It is the first company to cover the entire city with fiber to the home service in Saint John and Fredericton, New Brunswick. Also the company invested more than half a billion dollars to extend the fibre op to more than 600,000 homes in its business territory. Bell Aliant proudly been recognized as the best in all of North America for innovation and leadership in FTTH deployment. Its principle operation also carried with its three subsidiaries, namely Bell Aliant regional communication, Telebec, Northern Tel.

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FTTH network provides Bell Aliant a competitive advantage that its rivalries cannot easily match. Bell Aliant is a Halifax based company and its main rivalries were Eastlink that have its operations in NS, rural Newfoundland and Labrador, Prince Edward Island and Rogers in New Brunswick and in Newfoundland and Labrador, also in Ontario and Quebec. Since Aliant is a Nova Scotia based company, it is considered as a community supporter. Aliant invested $2 billion investment in telecommunication infrastructure in Nova Scotia. Approximately it employees 2,500 employees, and contribute over $300 million economic activity inside the community by the means of employee salaries, investment, taxation and etc. more than 3,500 retired employees of Aliant serving as Aliant pioneer volunteers. For Bell Aliant innovation and creativity are the vital factors to achieve its objectives. All its products are innovative Aliant is the first network to introduce IPTV in Canada; it is the first company to bring FTTH service in Canada, Aliant was the first in Atlantic Canada to use MPEG-4 technology which has strong picture quality. Aliant's subordinate company called Innovatia, Inc acts as a research and development wing working on telecommunication field. Bell Aliant's strong foundation and relationship with Bell Canada provides Aliant N Access to the leading edge technologies of a much larger company that Aliant can offer for its customers. (Aliant, Bell Aliant, 2012)

History of Bell Aliant (1888- July 2012):

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Bell Aliant is the successor of Aliant Inc. which was the largest telecom network in Atlantic Canada. Bell Aliant has the long history in its operations and in its management. Aliant Inc was formed through the merger of Maritime telephone and telegraphs company (MT&T), Island telecom, Bruncor, and Newtel enterprise. These four are the major telephone companies in Nova Scotia, Prince Edward Island, New Brunswick and Newfoundland and Labrador.

Maritime Telephone and Telegraph (MT&T):

MT&T was founded in 1910 and it's a Halifax, Nova Scotia based company. It provides telecommunication solutions to Nova Scotia. From 1989 MT&T enjoys the monopoly for the telephone service in Nova Scotia.

Island Telecom:

Island telecom is a telecommunication based company based in Prince Edward Island and it was founded in 1885. Island telecom had a formal alliance with MT&T to share (902) area code. Before 1998 Island telecom is called as Prince Edward Island Telephone Company.

NBTel:

NBTel was founded in 1888 as New Brunswick Telephone Company. From 1973, NBtel enjoys monopoly for the telephone service in the province of New Brunswick. NBtel was based in Saint John, New Brunswick.

NewTel Communications:

NewTel communication was a Newfoundland and Labrador based company which provided telephone, data, and cellular service to the province. NewTel was originally called as Avalon Telephone Company and the extension of its territories and the acquisition of four small telecommunication companies and Labrador Telephone company and other small Island telecom companies. After acquisition overall the company changed its name as Newfoundland Telephone Company and later it was shorten to NewTel communications.

In early 1999, the four major telecommunication companies in Atlantic Canada planned for a Merger and turning into a single big trust company. By combining the four major communication company's personal, financial and technological resources the merger company could be seen as a vibrant enterprise. So the Merger would give all four companies to have access to all technologies they have, strong financial background and the potential to grow wide. Companies were merged in base of cooperative management strategy in which the company has no head office anywhere in the specific province and the functions of the head office had spread across the integral companies. Aliant Telecom Inc. was incorporated on August 4, 1999, at the time of incorporation Aliant telecom Inc. owns 79.4% of shares and the rest 20.6% owned by subsidiaries. At initial Aliant have $3 billion initial market capital and it considered to be the largest private sector employers in Atlantic Canada with 9000 employees.

After merger Bell Canada show interest in purchasing Aliant shares in October 4, 1999. BCE offers cash purchase up to 15.8 million outstanding common shares of Aliant at $27 and in December 1999, the offer was increased to $27.5 per share. Bell Canada and BCE owns approximately 54 percent common shares of Aliant. In February 7, 2005, Aliant launches two innovative, fiber optic based broadband service to the customers with fiber to the home service and 10 mega bit internet service. On March 7, 2006 Bell and Aliant jointly announced the plans to merge Aliant's operation into those of Bell. In july7, 2006, Bell Aliant regional communications had been created. Bell Aliant is one of the north America's largest telecom service provider with over 3.4 million local access lines and over 400,000 high-speed internet subscribers in six province. From on July 10 Bell Aliant start trading in Toronto stock exchange with the trading symbol "BA.UN". Due to the merge Bell Aliant becomes the largest business trust in Canada, with the enterprise value of approximately $10 billion. In result of the merge of Aliant with Bell gave Bell Aliant access to do business in six provinces by serving more than 5.3 million populations in Canada.

In January 22, 2007, Bell Aliant acquires 100% common shares of Bell Nordiq Group Inc. indirectly. Bell Nordiq Inc. holds 63.3% interest in and is the general partner of Ontario based NorthernTel and Quebec based Telebec. Since January 30, 2001 Bell Aliant wholly owns Telebec and from then Telebec and NorthernTel are operating as a subsidiary company of Bell Aliant.

On July 13, 2009, Bell Aliant announced the deployment of fibreOP service in New Brunswick, followed by Nova Scotia, Prince Edward Island and in Newfoundland and in Labrador. Until 2010, approximately 140,000 homes and business were powered by fibreOP. Bell Aliant projected to cover more than 600,000 homes and the business by the end of 2012. Bell Aliant invest more than half a billion dollar for the fibre infrastructure projects.

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Bell Aliant got the fibreOP trademark and fibreOP service is considered to be the company's next generation broadband network. In fibreOP line customer can service access like Internet, home phone and IPTV. In early 2012 Bell Aliant invested $ 30 million in greater Sudbury for the deployment of fibreOP in Ontario. In April 13, 2011 Bell Aliant launches the next generation in fibreOP service that is fibreOP2.0 which has 30mbps download speed and 15mbps upload speed. On July 25, 2012 Bell Aliant upgrade all fibreOP speeds like fibreOP1.0 has 15mbps download and 15 mbps upload(15/15) speed has been upgraded to (20/15), fibreOP2.0 (30/30) has been upgraded to (50/30), fibreOP3.0 (70 /30) upgraded to (80/30) and fibreop4.0 has 250mbps download and 30mbps upload speed that remains same. (Aliant, Historic time line, 2012)

Porter's five forces:

Porter's five forces determine and help to understand the intensity of rivalry among existing competitors, the bargaining power of the buyers, the bargaining power of the suppliers, threat of new entrant and the threat of substitutes. Analyzing these factors helps to find the external threat or factors that affect the company's profit and helps to make a strategic decision.

Customers Bargaining Power:

Basically people always go with the best deals and offers. So existence of completion will give choice to the customer in selecting their brand. To boost their sales and to increase their market companies will provide discount and offers that reduce profit margin. This empowers the customer to have a choice upon low switching cost if and when required. So to overcome these kinds of challenges organizations have to provide competitive price to keep pace in the race. Bell Aliant has its much focus on Atlantic Canada and the rural areas in Ontario and Quebec. Bell Aliant have focus and have wide range of operation in Atlantic Canada but outside Atlantic Canada it focus on third tire cities and rural areas. That covers only 30 to 40% of the population remaining population is concentrated inside urban cities, where the customers were already use to have other network services. While in the meantime of the merger due to Aliant's increase in cost for the service, most of their customer's starts go with other service providers.

To attract customers Bell Aliant provides innovative and impressive offers that is well customized and focused on specific target groups. Categorizing the speed of the internet and allocating the price. Giving discount and providing the service in the contract basis. It also Provides bundle service that includes internets, home phone, and IPTV with reasonable price. FibreOP is another innovative factor that attracts more customers. Also Bell Aliant takes all Steps to improve the customer experience. So due to these factors Bell Aliant now powering more than 450, 000 customers with its FTTH ( fibre to the home ) service.

Threat of new entrants:

There exists a less chance of having the threat due to new entrant in the telecommunication field. Because starting the telecommunication industry and building its infrastructure needs huge investment. But basically telecom field is the most competitive field in the world. Telecom regulatory concerns also one of the main factors that minimize the threat of new entrant. The growing competition among the exiting companies, competitive, pricing, innovation and infrastructure cost also the reasons for the less chance of new entrants in the telecommunication field. In this case Bell Aliant has minimum chance of getting threat from new entrant. But having a new entrant in its market won't affect the growth of the giant concern like Bell Aliant.

Threat from competitors:

In and with fibreOP Bell Aliant enjoys monopoly because of zero competition but in highspeed and dial-up internet access, wireline telephone service, and IPTV cable television it has some major competitors like EastLink in Nova Scotia, Newfoundland and Labrador, and in Prince Edward Island; and rogers communication in Ontario and Quebec. Also literally in some point Bell Canada also considered as an competititor to Bell Aliant because in urban Ontario and in Quebec Bell Canada retains the responsibility for all IPTV services. Also in third tier cities Bell Canada and Bell Express provides impressive deals and promotions to retain their customers. The figures and the growth of fibreOP show the outperformance of its competitors in Atlantic Canada. But the fact is the potential competitors of an organization never quit they try hard to promote their business by promotions and including some value added features. As far as the technical concerns, from June 2012, EastLink in Atlantic Canada try to increase their speeds in highspeed copper internet service to retain its customers from moving to fiberOP. EastLink market shares gained a random increase in telephone shares from 34.9% in 2005 to 50% in 2009. But from 2009 EastLink outperforms due to the lack of technological innovation. But currently EastLink is working on projects like CDMA( Satellite based direct to home) internet service. Bell Aliant operates ina highly competitive environment, competitive activities semms growing strong in Bell Aliants market. Potential competitor leverages discounts, promotional offers, marketing campaigns and technological deployments to boost their sales.

Threats of substitutes:

Technology innovation always seems to be a threat in the telecom industry. Telecom companies have to keep pace with the advanced technologies to sustain in the market. As far as Bell Aliant is a technology oriented company that focus much on innovation and up gradation in terms of technical aspects. Bell Aliant is the first company to implement IPTV concept, first company to bring high speed internet service in the market and the first in bring FTTH service in Canada. But its potential competitors were working on some new project like satellite based direct to home internet service, etc.

Supplier Bargaining Power:

Bell Aliant also outsources its some major operation in installation, splicing, cable line infrastructure, maintenance, call center and also some IT jobs. Call center and It jobs were outsourced to Saskatoon and to Montreal based companies. Maximum all the equipment used by Bell Aliant were manufactured in Canada some technical devices and some other materials were manufactured in Mexico and in China. So the company fully depends on other companies for its communication equipment. Therefore the company has more external threats due to the bargaining power of its suppliers.

SWOT Analysis:

Strength

weakness

1). Well trained professionals and management structure

2). Long history of operation

3). Having huge financial assets, Increase customer experience due to innovative technologies.

4). Customer friendly service and installation

5). Deployment of FibreOP technology

6). Large pool of employees.

7). Having the goodwill as North America's largest regional telecommunication network.

8). Excellent skilled CEO and board of directors who serves the company and work hard to attain its vision.

1). Companies debts, high operating cost and revenue.

2). Bell Aliant's less focus in deployment of its service in major cities.

3). Outsourcing of its core operations.

4). Bell Aliant receives less government subsidies than its competitors.

Opportunities

threats

1). Perfect time for the deployment of fibreOP lines in the urban regions simultaneously using the current successful goodwill in Atlantic Canada.

2). Increase marketing the current success of fibreOP in Atlantic Canada over all province in Canada.

3). Targeting more on urban cities would help to increase the profit.

1). Increasing the cost price of the service will cause customers to switch to other networks.

2). If Bell Aliant fails to reduce its operating expense and its other expenses then this will reduce the annual profit.

3). Due to instable global economic condition, the Bell Aliant might face a problem from outsourcing companies, those companies might bargain for the increase in cost of the equipment.

4). Though fibreOP is going good Bell Aliant have to focus research and testing because lots to problem will emerge in new products.

5). EastLinks focus on Satellite based direct to home internet service.

Tows Analysis:

Tows analysis helps to take a strategic decision by comparing the strength and weakness with opportunity and threats. Strengths are analyzed with opportunities and threats to understand how the issues can be eliminated and the benefits can be capitalized respectively. Also the weakness are taken in consideration by engaging a comparison with threats and opportunities to get a clear picture on to how to overcome the problems caused due to companies weakness.

Strength

weakness

1). Well trained professionals and management structure

2). Long history of operation

3). Having huge financial assets

Increase customer experience due to innovative technologies.

4). Customer friendly service and installation

5). Deployment of FibreOP technology

6). Large pool of employees.

7). Having the goodwill as North America's largest regional telecommunication network.

8). Excellent skilled CEO and board of directors who serves the company and work hard to attain its vision.

9). Strong business partners.

1). Companies debts, high operating cost and revenue.

2). Bell Aliant's less focus in deployment of its service in major cities.

3). Outsourcing of its core operations.

4). Bell Aliant receives less government subsidies than its competitors.

opportunities

SO

WO

1). Perfect time for the deployment of fibreOP lines in the urban regions simultaneously using the current successful goodwill in Atlantic Canada.

2). Increase marketing the current success of fibreOP in Atlantic Canada over all province in Canada.

3). Targeting more on urban cities would help to increase the profit.

1).well trained professionals, well trained large pool of employees were the biggest strength of the organization and using the strength of the organization for prevailing opportunities for the deployment of FibreOp and extending its territory.

2). Using the goodwill of the company to market the fibre in overall Canada.

3). Using financial assets to focus on extending its territories and its deployment.

1). If the company reduces its operating expenses then it will help to expand its territory.

2). Bell Aliant wants to reduce its outsourcing while increasing its territory. So the risk due to the bargaining power of suppliers will be reduced.

3). Company needs to reduce its debts, operating revenues and and its expenses to increase its operation without expecting the government funding.

Threats

ST

WT

1). Increasing the cost price of the service will cause customers to switch to other networks.

2). If Bell Aliant fails to reduce its operating expense and its other expenses then this will reduce the annual profit.

3). Due to instable global economic condition, the Bell Aliant might face a problem from outsourcing companies, those companies might bargain for the increase in cost of the equipment.

4). Though fibreOP is going good Bell Aliant have to focus research and testing because lots to problem will emerge in new products.

5). EastLinks focus on Satellite based direct to home internet service.

1). Bell Aliant have to provide innovative offers to its customers to avoid customers switching to other networks.

2). Wants to provide a clear cut management decision with its well skilled professionals to avoid operating cost and expenses.

3). Using its financial assets and management, Bell Aliant have to try controlling its supply chain for long sustainability.

4). This organization have an excellent R&D and innovation department so using those resource Bell Aliant have to concentrate on minimizing problems in FibreOP.

1). Bell Aliant wants to focus on reducing its all expenses to avoid resetting its cost price.

2). It has to reduce all its debits and expenses to avoid the outsourcing its major operation.

3). Competitors innovation and the need for the expansion of fibre in its territory with less government funding's have to be considered and proximate measures should be taken.

Management board:

Bell Aliant has three level top level management structures. This hierarchy has president and CEO, Executive team and Board of directors.

President and CEO:

Kareen Sheriff:

Currently Karen Sheriff is the president and CEO of Bell Alaiant. She was appointed as president and CEO of Bell Aliant in 2008, before that she served as chief operating officer and also she served as a director of Aliant and Bell Aliant. Karen Sheriff take over the postion of CEO and President in an competitive situation and in 2010 Bell Aliant was recoganized as top performing Canadian Telecom based on past three year return to the investor She have also recognized as Atlantic Canada's top 50 CEO's in Atlantic Business magazine. She also recognized as one of Canada's top 100 most powerful women three times. Ms. Sheriff holds a bachelor degree in psychology, economics and mathemetics in St. Louis University and Masters in Business Administration with concentration in marketing and finance, from the University of Toronto. Before joining in Bell Ms. Sheriff works at ArmiTech Inc. where she is responsible for Marketing and Branding of the company. She is the one who initiated the corporate transformation and strategic priority setting. That gave a good return to its investors.

Board of Directors:

George Cope:

Mr. George is the chair of the board of Bell Aliant and presidenet and the CEO of Bell Canada Enterprise. He is also a director of bank of Montreal.

Robert Dexter:

Robert Dexter is one of the members and he is the chairman and CEO of maritime Travel Inc. and chairman of Empire Company limited and Sobeys Inc. and also the director of High Liner Foods Corporation.

Karen Sheriff:

Karen Sheriff is president and CEO of Bell Aliant.

Martine Turcotte:

Martine Turcotte is the vice chair Of Bell Canada Enterprise and Bell Canada, Quebec. Before that she played active role as vice president and chief legal and regulatory officer of BCE and Bell Canada.

John Watson:

John Watson is the executive vice president in the field of customer operation of Bell Canada. He finished his Masters in Business administration in York University.

Catherine Bennett:

Catherine is one of the Board members of Bell Aliant. She is also the chief executive officer of Bennett Group of companies. She is also the member of board of governors of the Atlantic Province Economic Council.

Edward Reevey:

Mr. Edward is lead independent director of Bell Aliant and the Chairman and the CEO of Eedda Capital Inc., a private holding company.

Louis Tanguay:

Mr. Louis is one of the board members of Bell Aliant. He worked for Bell Canada for four decades and got retired. He worked as President of Bell Quebec and president and Chief executive officer of Bell Canada International Inc.

Siim Vanaselja,

Siim Vanaselja is executive vice president and Chief financial officer of BCE and Bell Canada. He also holds position in boards of numerous Bell Canada Enterprise Group Companies.

David Wells:

Mr. David Wells is executive vice president of corporate services of Bell Canada Enterprise and Bell Canada.

Executive Team:

Karen Sheriff

Karen Sheriff President and CEO is also one of the members in the executive team.

Mary-Ann Bell:

She is the vice president of Bell Aliant, Quebec and Ontario. She also engaged as a board member in various nonprofit organizations. In Ontario and in Quebec Mary plays a vital role in strategic leadership role in engaging with the customers and employees. She is also responsible for the Bell Aliant's wireless business, Cablevision, KMTS, Proximedia and Noralynx.

Fred Crooks:

He is an executive officer and the vice president, also corporate service and Chief legal officer. In 2003 Fred joined in the company as a senior vice president.

Chuck Hartlen:

He is the senior vice president in the field of customer experience. He is responsible for field service and network engineering and operation. He was with Bell Aliant for past 25 years.

Glen Leblanc:

Glen is an executive officer and chief financial officer. Glen served over 17 years of his finance career with Bell Aliant.

Rod MacGregor:

He is a vice president in the field of corporate development and strategy in 2004, Rod joined in Bell Aliant and at the time he is responsible for strategic planning and acquisition. From 2007 onward his responsibilities also includes managing Bell Aliant's wholesale operations.

Dan Mckeen:

He is the senior vice president in the field of customer solutions, with leadership and responsibility for all aspect of marketing. Sales and call center operations.

(Aliant, Executive profile, 2012)

Management review:

Bell Aliant has a well-organized and structured top level management which has members with lot of experience and excellent management skills. The company's focus on customer satisfaction and providing customer based service that empowers the organization to achieve its goal and the vision of the Bell Aliant. The current combination of board of members and the executive teams brings excellent results in its operation from 2008 to 2012. The primary responsibility of the board of members is to promote the long term success of the Bell Aliant. Directors and the executives were responsible for performing the planning, selecting a board chair and appointing committees. Karen Sheriff took her position as a CEO in a competitive and recessive environment. But due to her administration and these management persons planning and execution Bell Aliant is retaining growth in its market.

Competitive Advantage:

As already mention Bell Aliant is doing business in the cluster of competition but Bell Aliant follows a unique style in its management style and its products. This organization basically focuses on customer needs and attracting customers rather than demolishing its competitors. Providing an excellent service and satisfying the customers will automatically outperform the rivals. In terms of management and in Business operations bell Aliant provides unique approach from its competitors. It has variety of quality services for higher and lower end customers. It also maintains pricing for both high end and low end customers to avoid the external threats due to the bargaining power of its customers. Over all the strategic model of the Bell Aliant always seems to be unique and innovative as like its products and services. Bell Aliant follows the right set of competition that to be "unique".

Value chain Analysis:

Value chain management is the sequence of activities that a company performs in designing, producing, selling, delivering and providing support to its customers.

Designing:

This organization designs all its plans and strategies with its excellent professionals and in terms of product designs Bell Aliant has an excellent innovation and R&D department that provides superior outputs and products for its development. In some scenarios Bell \Aliant also outsources some of its R&D process to outsiders.

Producing:

Bell Aliant maximum depends on outsourcing for its production, so in here company faces external threat 'the suppliers bargaining power'.

Sales:

Bell Aliant also have an excellent sales wing that poses all sales operation in the field of telecommunication and for IT sectors.

Deliver:

This organization has a large pool of technicians and employees who provide excellent product deliver or installation in its customer's premises with excellent customer friendly service. Also it delivers all networking and broadcasting services by its own. And also it outsources some operation in service installations to some private sectors.

Support:

Bell Aliant provides 24 hours technical and customer service through its call centers and also it outsources some of its services to some companies in Montréal and in Saskatoon. It also promises the service to any repairs orders within 24 hours.

Financial Overview:

Bell Aliant GP is the entity that holds Bell Aliant's financial operations. As already mentioned BCE indirectly owns one voting share and Bell Aliant GP also owns one voting common shares. Bell Aliant GP consolidates the financial results of Bell Aliant regional communication's limited partnership organizations like Telebec, NorthernTel and Bell Aliant preferred equity Inc... Bell Aliant economical dependent on Bell Aliant GP to provide the cash flow and share details, that it required to pay dividends to its shareholders. Bell Aliant GP's uncertain expenses and factors like financial and management, transactions and risks also disturb the dividends that Bell Aliant receive from Bell Aliant GP.

Corporate Conversion:

To avoid this impacts that happens due to Bell Aliant GP holding serious of steps were taken on January 1, 2011. Initially the fund completed its conversion from an income trust structure to a corporate structure. Every fund unit holder receives a common share of Bell Aliant Inc. for each fund unit. BCE

and Bell Canada exchanged 100 per cent of their class B exchangeable limited partnership units issued by

Bell Aliant LP. Through these step the Bell Aliant fund was dissolved and the total assets and the liabilities of the trust were transferred to the Bell Aliant Inc. without any controversy. Bell Aliant GP's ancestor and Bell Aliant regional communications holding Inc. got amalgamated into sing organization.

Financial Analysis:

Bell Aliant financial highlights:

2006

2007

%

2008

%

2009

%

2010

2011

%

Operating revenve

2684.3

3373.4

25.7

3282.0

0.9

3174.2

-2.2

2807.4

2275

-1.2

EBITDA

1147.5

1450.4

26.4

1450.9

0.9

1450.3

1.1

1376.1

1326.8

-3.6

EBITDA margin

-

-

-

-

-

-

-

49.0

47.8

-2.5

Operating income(loss)

550.8

515.4

-6.4

595.8

18.2

600.5

3.5

-1073.5

656.8

-

Net earnings (loss) from continuing operation

2351.2

68.9

-

331.9

6.9

336.6

10.8

-1037

320.7

-

Net loss for discontinuing operation

-

-

-

-9.7

-

-14.4

16.7

-1.8

-4.4

-

Net Earnings (loss)

2902

584.3

-79.9

322.2

-43.9

322.2

10.6

-1038

336.3

-

Bell Aliant's consolidated Balance sheet:

2006

2007

2008

2009

2010

2011

Assets

Current Assets

Cash and equivalents

0.7

2.1

6.2

2.6

5.3

5.7

Distributions receivables

28.5

28.5

31.2

31.1

29.6

-

Due from receiving parties

3.0

13.6

25.2

27.4

33.8

29.2

33.6

51.0

58.9

62.3

39.5

investment

4141

4290.5

4160.6

4092.7

3324.4

3447.6

Total assets

4170.2

4324.1

4211.6

4151.6

3386.7

3487.1

Liabilities and unit holders equity

Current liabilities

Payables & accruable

1.1

0.4

0.2

-

0.1

0.1

Distributions payables

28.3

29.8

30.7

30.8

30.8

0.5

29.4

30.2

30.9

30.8

30.9

0.6

Unit holders equity

4140.8

4293.9

4180.7

4120.8

3355.8

3486.5

Toatal liabilities and unit holders equity

4170.2

4234.1

4211.6

4151.6

3386.7

3487.1

(Aliant, Financial reports, 2012)

Short term solvency of Bell Aliant:

Short term solvency ratios provide the information about the organizations liquidation level and this is also called as liquidation ratio. There are two types of liquidity ration short term and long term liquidity ratio. Short term liquidity ratio is to analyze the company's ability to liquidate fund whenever it needs. Long term solvency is used to find the companies long run ability to meet its responsibilities and its financial leverage. By analyzing the 2011 financial statement of the company, Bell Aliant,s current ratio for the 2011 fiscal year was 65.83 times. This shows the organization have large pool of resources for their shot time investment. Short term creditors always look for the good cash ratio. It has 9.5 times cash ratio than its liabilities. Total debt ratio is used to find the long term sustainability of the organization. Total debt ratio of Bell Aliant is 0.00017 times. It shows the organization has long standing capabilities.

Profitability measures:

Profitability measures of the organization show how efficiently the company uses its assets and manages its operation. For the fiscal 2011 fiscal years the organizations profit margin was 14.7% of its net earnings. Due to the cluster of competition in the field of telecommunication field in its operating territory and its deployment of services in new places makes Bell Aliant to have a descent profit margin of 14.7%. Though, it's a good profit margin for the organization. Return on assets is used to measure the profit earned per dollar of assets. It is used to analyze and find how efficiently company building its assets and how efficiently it increases and used its assets. Return on equity helps to measure how company efficiently increases the shareholders profit and because for every organization benefiting shareholders is their goal. Bell Aliant performs 9.6% on equity returns.

Over all in 2009 Bell Aliant faces a steep decline in its operations and revenue to due new management strategies and plans the figures in the financial statements significantly improving. In 2011 fiscal year Bell Aliant revenue decline was reduced to 1.2% which is comparatively better than previous years. Operating cost of the organization increased to 1.2% because of the services to its employees and the deployment of fibre in many places. Earnings before interest, taxation, depreciation and amortization have dined to 1.2%. Capital expenditure was high in 2011 due to the deployment of fibre in new places. Cash flow seems to be stronger in 2011 which is increase to 4.8% from 2010. The results from the 2011 fiscal year, shows the significant improvement and CEO Karen Sheriff said in 2011 company met or exceed all its financial targets.

Stockmarket share history of Bell Aliant:

Bell Aliant faces a steep decline in its Share price at the time of amalgamation of Aliant with Bell Canda. The shares drops to $18 CAD per share and then with the strong mangement and powerfull strategies and innovation, the organisation makes a rapid growth in their share now at present Bell Aliant share price is $26.80 CAD per share.

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(Aliant, investor relation, 2012)

Strategies and the tactic of implementation followed by Bell Aliant:

Bell Aliant follows certain strategies and plans to improve its profit and to attain its goals,

Improve customer experience:

Delivering superior customer experience is the goal of Bell Aliant

To attain this strategy organization focus on meeting its commitment and doing things right at the first time.

Retain our customers:

To retain its customers Bell Aliant provides bundles, which has a complete and integrated communication, internet and entertainment solutions

Grow Broadband:

The Fibre To The Home (FTTH) service provides the telecom supremacy that its competitors cannot easily match. The FTTH service provides High speed internet access to its Customers.

Reset Cost Structure:

Bell Aliant operates in an intensively competitive market. So to do a descent cost-cut will be critical. So it focuses on reducing operational expenses to keep the cost structure low.

Engage Employees:

Bell Aliant continues to promote a high performance culture, focusing on leadership development and improving communication with its employees by providing clear direction on its strategies and goals.

(Aliant, Annual report 2008, 2012)

Marketing Strategy:

Bell Aliant follows innovative and impressive marketing. Bell Aliant uses its innovative products as a marketing concept and markets in an innovative approach. It supports the sports events and in 2012 it produces commercials using Canadian Sport athletes to promote it IPTV and fibreOp business. It gives a unique marketing by promoting the values of its products and features instead of comparing its products with its other competitors.

Research and Development:

Bell Aliant has a Innovation and R&D wing called as Innovatia. Innovatia is responsible for the deployment of IPTV and FibreOP by Bell Aliant in Canada. The technical solution and the research on its products were processed in R&D wing to provide a superior service to its customers and also to keep pace with the technological race.

Joint Alliance and Strategic Alliance:

Bell Aliant has strategic alliance with Bell Canada and also enjoys Limited partnership with Telebec, Northern Tel. Cable vision, KMTS, Xwave were owned by Bell Aliant.

Bell:

BCE Inc. is the Canada's largest communication company, providing broadband communication, wireless, and wire line operation all over Canada. BCE Inc. owns 44% shares in Bell Aliant and exercise management control.

TeleBec:

Telebec id the division of Bell Aliant and it is Quebec based company. Bell Alliant enjoys limited partnership in Telebec. Telebec provides over 300 municipalities in Quebec. It provides all service in Telecommunication sector like voice, data, internet etc.

Northern Tel:

Northern Tel is also a division of Bell Aliant and Bell Aliant enjoys limited partnership in Northern Tel. It provides telecommunication services like wire line and wireless telephone service, Internet etc. in Northern Ontario.

KMTS;

KMTS is a division of Bell Aliant and it is a northwest Ontario communication leader. I provides state of art solutions for cellular, internet, home and business telephone.

CableVision;

Cable vision is the division of Bell Aliant based in Quebec and in Ontario. It is the leader in the regional television and Cable Internet industry. It has 40 employees in total.

Xwave:

Xwave is an information technology company. It is operates as an information technology wing of Bell Aliant. Xwave is also a division of Bell Aliant. Xwave provides its client with advanced technological solutions. Xwave employees over 700 people in offices in St, john, Halifax, Montreal, Fredericton, Summer side, Moncton, Ottawa and Toronto.

(Aliant, Bell Aliant, 2012)

Suggestions:

Bell Aliant should reduce the operating expense and other expenses.

It should extend its full operation in all over Canada because there is a huge market outside Canada for FibreOp.

It has to try controlling its value chain by limiting the outsourcing operations.

Bell Aliant has to increase its Marketing Campaigns to boost its profit and to improve its customer traffic.

Conclusion:

The analysis of all financial, marketing, management level, company structure by value tools, it shows clear overview that the organization has the potential to be the market leader as it stated in its vision. It is more evident that the revenue and the growth are significantly progressing. Maintaining and improving these strategies with market conditions will enhance the company's profit. Having Taken in charge of the CEO position Karen Sheriff has showed consistent contribution to the growth of Bell Aliant.

Biblography;

Aliant, B. (2012). Annual report 2008. Retrieved from Bell Aliant: http://www.bellaliant.ca/english/ir/2008_annualreport/pdfs/2008_Annual_Report.pdf

Aliant, B. (2012). Bell Aliant. Retrieved from http://www.bellaliant.ca/english/about/index.shtml#

Aliant, B. (2012). Executive profile. Retrieved from Bell Aliant: http://www.bellaliant.ca/english/about/management.shtml

Aliant, B. (2012). Financial reports. Retrieved from Bell Aliant: http://www.bellaliant.ca/english/ir/financial_archive.shtml

Aliant, B. (2012). Historic time line. Retrieved from Bell ALiant: http://www.bellaliant.ca/english/about/popup_timeline8.html

Aliant, B. (2012). investor relation. Retrieved from Bell ALiant: http://www.bellaliant.ca/english/ir/financial_archive.shtml