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BIZ202 Macro Environment and Its Impact on Organization Telstra: Assessment Answer

ASSESSMENT BRIEF
Subject Code and TitleBIZ202 The Business Environment
AssessmentEnvironmental Scan Report – Part B
Individual/GroupIndividual
Length1500 words ± 10%
Learning Outcomes
  1. Examine the influence of the external environment on the organisation
  2. Identify and apply appropriate frameworks and tools to the problems and challenges faced by organisations
  3. Research and relate industry specific factors to the organisation decision-making process
  4. Apply a relevant framework(s) to evaluate the macro and micro environmental influences on an organisation

Context:

Businesses in the modern marketplace cannot afford to ignore the environments in which they operate. To navigate this vast and ever changing landscape, businesses must keep a keen eye on macro environmental factors that influence them. The environmental scan report is an effort to identify these factors and propose solutions to the risks they pose.

Linkages between Part A and Part B:

Part A focused on the micro environmental factors that affect your chosen business.

Part B serves to expand on Part A by reporting on the macro environmental factors that affect your chosen business. It provides a comprehensive assessment of the challenges and risks posed to the business by its macro environment and proposes strategies to counter them.

Instructions:

Further investigate the organisation you reported on in Part A, or you may choose another Australian or international well-known business still in operation in consultation with your facilitator. The macro environmental scan must incorporate the following:

  • Identify macro environmental factors that influence the chosen business specifically. These factors may include but are not limited to changes in socio-cultural, technological, ethical, government regulation both in domestic and foreign, political, economic factors such as inflation, unemployment, income levels, economic growth, foreign exchange rates, international trade policies, foreign investment restrictions, taxation, etc.
  • Analyse their impact on business that may be in terms of but not limited to changes in business performance, structure, policies, profitability, growth and market share.
  • Propose solutions to challenges to counter prevailing/potential risks.

Submission Instructions:

Submit copy of Environmental Scan Report in only word document format (no pdf) via the Assessment link in the main navigation menu in BIZ202 and also via TurnItIn link. 10% penalty will apply for failing to submit via TurnItIn. The Learning Facilitator will provide feedback with reference to the criteria below via the Grade Centre in the Blackboard portal. Feedback can be viewed in My Grades.

Structure of the report

Cover Page – Includes assessment title, student name and ID, subject name and code, lecturer’s name, submission date, word count. Be creative while making your cover page.

Executive Summary - An executive summary provides a succinct summary of the content within the report. It presents information in such a way that readers are able to understand the intention and key elements of the report without having to read the entire document. This section is not included in the word count. However, it is recommended to write 10-20% of your total word of the report.

Table of Contents – Headings/sub-headings of the sections and pages numbers.

Introduction - The introduction sets the scene and provides context for the aim. It provides background to the issues being addressed only.

Main Discussion – In the main discussion part you should rename the headings/sub-headings to reflect your report. Two main parts need to discuss in your report.

  1. Identification and analysis of macro environmental factors- under this section, the report is expected to identify all macro environmental factors, provide insight and analysis thoroughly the wider macro environment of the chosen business.
  2. Challenges and solutions: the report expected to identify the key challenges and risks present in the macro environment of the chosen business and provides a correct strategy/solution to deal with each, as well as a thorough explanation and justification of each strategy.

Conclusion - The conclusion restates the aim then provides a brief and concise summary of the discussion to demonstrate that the aim of the report has been achieved. No new information is to be included in the conclusion.

References – Your references must be from credible sources such as textbook, academic journals, company annual reports, etc. Please use the correct APA referencing style and list in alphabetical order. It is recommended that you use reference management software such as EndNote or Mendeley to make the job of referencing simple and straightforward. Remember, every factual statement in your report will require a reference. 

Answer

The Business Environment

Environmental Scan Report – Part B


Executive Summary 

Telstra is the telecommunication company of Australia and was founded in the year 1975. The revenue of the firm is almost 26 billion Australian dollars, and they have about 32000 staff members. The country is having the stable political reform along with suitable economic factor. Australia consists of the diverse people of various region and culture, and also the country has a huge investment within the digitization for enhancing the service offerings. Telstra faces the direct impact of the regulatory changes that took place by ACCC and environmental sustainability while using the network service of 4G and 5G. The competitive rivalry within the telecom industry is high, then the bargaining power of the buyers is high. The bargaining power of the suppliers is considered to be moderate, a threat to new entrants is low, and the threat of product substitution is considered to be moderate.

Introduction

The primary purpose of the paper is to discuss the macro environment and its impact on the business. To effectively discuss the situation, the organisation Telstra has been selected. It is the telecommunication company of Australia and was founded in the year 1975. The revenue of the firm is almost 26 billion Australian dollars, and they have about 32000 staff members (Telstra, 2019). The organisation serve the area of Australia and also worldwide with the selected products. The primary products of the firm are the fixed-line then the internet and data service along with the network service. They provide 98 percent coverage to the area of Australia with their suitable and effective plan in the telecommunication industry.

Identification and analysis of the micro environmental factors 

PESTLE Analysis

Political factor

The country is having the stable political reform that provides suitable value to the telecommunication sector. Moreover, it can also be seen that in the political condition of the country, the government is pushing for the regulatory reforms. The country is also having cordial global diplomatic relations, which is highly effective for the telecommunication industry to maintain the network system (Atighechian, Maleki, Aryankhesal, & Jahangiri, 2016). Telstra even faces the impact regarding the various rules and regulation within the country regarding the telecommunication network system.

Economic factor 

The economic factor effectively reveals the desired economic performance of the country as well as it is considered to be highly essential for the performance of trade practice within the country (Doulgeroglou, 2015). It can be seen that the rise of the inflation rate effectively generates a huge impact on Telstra. Furthermore, it becomes quite crucial for the firm to understand the need of the consumers for maintaining the desired balance within the demand as well as the supply.


Social factor 

The rising expatriate population effectively help in the growth of the telecom service providers. Telstra effectively faces the social impact regarding the providing of best and suitable for the various people all over the country (Mattila, & Parkinson, 2017). Australia consists of the diverse people of various region and culture, which even allow the firm to provide its service plan according to the needs of the consumers. Social factor like the demographic then the cultural trend effectively help the firm to maintain change within the business procedure. 

Technological factor 

The country has a huge investment within the digitization for enhancing the service offerings as well as the customer experience. Moreover, it can also be seen that the leasing of the telecom infrastructure, as well as a network, is having an effective view for Telstra (Doulgeroglou, 2015). The use of suitable and advanced technology is highly essential for maintaining the competitive advantages and providing an effective network system to the consumers. Implementation of effective technology is highly essential for maintaining the changing trends within the country.

Legal factor 

Telstra faces the direct impact of the regulatory changes that took place by ACCC within the country (Sutherland, 2016). Moreover, it can also be seen that the complex telecom regulation compliance law varies according to the country, so Telstra have to maintain the law in term of worldwide for their selected products. The employment, as well as the tax reform, is also maintained by the firm according to the legal activity of the country.

Environmental factor

Telstra directly impacts the environmental factor as they provide the network services which are affecting the environment (Sutherland, 2016). The business needs to develop a solution regarding environmental sustainability while using the network service of 4G and 5G. Furthermore, it can also be seen that Telstra has developed various environments friendly network service that did not create much harm to the birds due to the ultraviolet rays from the telecom service.

Porters 5 Forces Analysis

Competitive rivalry 

The competitive rivalry within the telecom industry is high. The primary competitors of Telstra are Vodafone, primus, Optus, as well as orange (Možný, 2017). Due to the high competition level, it can be seen that Telstra has eventually expanded their concern in the various other markets of Asia-Pacific parts. Due to the high competition level, Telstra needs to provide their best service to the customers for maintaining their position within the market.

Bargaining power of the buyer 

The bargaining power of the buyers is high in term of the telecommunication sector. It is the fact that the high competition level allows the consumers to opt for various telecommunication service option within the country (Sultana, 2016). Telstra is the largest web as well as a service provider in Australia and to maintain that position they need to effectively provide some of the best service plans with reasonable price to the consumers. It will eventually help the firm to maintain consumer loyalty towards the business.

Bargaining power of the supplier

The bargaining power of the suppliers is considered to be moderate as the sellers, and the organisation is having equal power regarding the buying of the raw materials (Možný, 2017). The organisation has suitable suppliers that help them with the advanced technology and providers for maintaining their value and their services within the field. The cost of the products to various suppliers is different, and for that, it becomes highly useful for maintaining the value of the firm and also for dealing with the situation.

The threat to new entrants 

The threat to new entrants is low within the market as the formation of the telecommunication industry is quite problematic for the industry. Telstra is one of the best and the most effective network service provider within the country (Sultana, 2016). The industry is filled with the legislative policies then capital requirements along with the patents rights for the industry. The power of the new market entrants might get due to the high competition level within the market.

The threat of product substitution 

The threat of product substitution is considered to be moderate for the industry because almost all the telecommunication has similar and some unique products (Magee et al., 2018). It is the fact that the entire activity of the firm is to develop their service plan in the unique way for maintaining the consumer loyalty within the field. The willingness of the consumers is to develop their market value and their service plan for dealing with the business activity. 

Challenges and solutions 

Challenges are as follows;

Technological innovation: The organisation is facing challenges regarding technological innovation within the market. The world is rapidly developing and for that maintaining the innovative changes within the market is highly essential (Esmailzadeh, 2016). The development of 5G network is highly effective for providing the best service to the consumers. Continuous advancement in the technological filed is highly essential for maintaining the activity of the firm.

Physical environment: The physical environment consists of the climate factor along with the geographic factor that the organisation faces within the external market. The firm has to face the challenge regarding climate change due to the experiment of developing 5G network system within the country (Oztunc, Demirbas, & Orhan, 2019). Another challenge in term of the physical environment is that people of the diverse geographic area has a diverse activity for providing the service to the consumers according to their needs.

Work value: Another challenge faced by the firm is regarding the work value as the employees needs to maintain the rules and regulation of the firm for maintaining their value and achieving the organisational goal (Esmailzadeh, 2016). Maintaining the staff members as well as their working function in the market is considered to be highly effective for the business. 

The effective solutions for the challenges are as follows;

  • It is highly essential for the telecommunication sector to enhance their skill and knowledge regarding the use of technology within the market. 
  • It is also essential for the firm to develop sustainable activity within the field and provide some of the effective value for the staff members within the market.
  • The organisation also needs to maintain effective rules as well as regulation for dealing with the workforce within the firm.

Conclusions 

The paper eventually concludes the fact that the organisation Telstra faces a huge impact due to the external environment on their business activities. The primary external environment impact on the business is due to the political factor, along with the economic factor and other factors that are highly affecting the value of the firm. The paper even concludes that the organisation are facing some of the huge challenges regarding the innovative technology along with the work value and even due to the climate and the geographic factor.

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