Micro Environmental Factor within Telstra Dwelled: Environmental Scan Report Assessment Answer
The Business Environment
Environmental Scan Report – Part A
Telstra dwelled in the telecommunication industry and was founded in the year 1975, and they served entire Australia along with worldwide with their selected products. The micro environmental factors are the consumers, competitors, suppliers, employees, as well as shareholders. All the micro environmental factors have a direct impact on the success of the business. The primary internal challenges that have been faced by the firm are Poor customer service, a large number of the invoice as well as billing disputes along with the bloated workforce.
The primary purpose of the paper is to discuss the micro environmental factor within a business and also provides a view on its impact over the firm. To effectively understand the situation, the organisation Telstra has been selected. It dwelled in the telecommunication industry and was founded in the year 1975, and they served entire Australia along with worldwide with their selected products (Telstra, 2019). The organisation has 150 subsidiaries with almost 32000 employees. The primary products of the firm are the fixed-line then mobile telephony, internet, network services, Pay TV and data services.
Identification and analysis of the micro environmental factors
The consumers are considered to be the central part of the business because the organisation always wants to attract as well as retain most of the consumers to generate their revenue. The telecommunication sector needs to adopt effective marketing strategies to grab the attention of the consumers and provide them with the best service (Testa et al., 2016). Telstra always tries to provide the best to their consumers by providing them with suitable telecommunication services. In this process the organisation effectively value the need as well as the wants of the customers which help them to provide the value-added services within the market.
It can be effectively viewed that the competitors of the business are having a direct impact on the business strategy. It is essential for the firm to have clear view and understanding regarding the competitive analysis of the competitors within the market as this will help to develop the competitive advantages of the firm (Bouazza, Ardjouman, & Abada, 2015). Telstra performs effective competitive analysis within the market for providing valuable service to the consumers and gaining the competitive advantages within the market. The analysis of competitors allows the firm to differentiate them from the competition level within the market and offer unique products to the customers that the competitors are not able to provide.
The activity of the suppliers can effectively influence the development of the business strategy of the firm. This is due to the fact that suppliers are providing effective materials to the business for production. If the service of the suppliers is not reasonable, then it might affect the production time as well as the sales of the firm (Hillary, 2017). Telstra maintains its suppliers and effectively deal with them for providing the best raw material and service to increase the sales volume of the firm.
It is the fact that the skilled employees of the firm help the organisation for achieving the organisational goal. Moreover, it can be seen that the skilled, as well as the experienced employees, are highly effective for the business to achieve success. Getting the best and the right candidates start with the hiring process, along with the training session. Telstra is having a huge number of employees that are quite experienced and also skilled in providing the best service to the consumers (Cinar, & Cubukcu, 2018). It is highly essential for the business to hire the best candidates so that they are able to fulfil the organisational goal.
The shareholders are also having a huge influence over the business because they are investing within the organisation for the development of the business. They effectively provide the view for increasing the private ownership of the business to deal with the activity of the firm. The changes in the business activity and the shareholders will affectively create pressure on the firm to seek the returns on the investment (Ghezzi, Cortimiglia, & Frank, 2015). Telstra has a high shareholder value that helps them to develop their business strategy and activity within the market. The demand of the shareholder for raise in the profit effectively allows the firm to achieve success within the long run.
Challenges and solutions
Challenges are as follows;
Poor customer service: It is one of the most vital issues that the organisation face due to the changing need and wants of the consumers (Fleisher, & Bensoussan, 2015). It is the fact that the telecommunication sector faces the challenges while providing the best internet as well as telecom service to the consumers as every people have diverse need and choice regarding their telecommunication plans.
A large number of the invoice as well as billing disputes: The organisation is also facing the issues regarding the inaccurate rates of the service plan then unexpected hike within the rates leads to the disputes of billing and invoice (Young et al., 2015). This happens due to the facts that the organisation is having a large number of consumers and maintaining the data is one of the challenging tasks for the firm.
Bloated workforce: It is a fact where the organisation is struggling with the cash flow due to the high cost (Young et al., 2015). The organisation is having a huge number of workforce, and it is a huge challenge for the firm to maintain the high-cost activity of the staff members within the market.
The effective Solutions for the challenges are as follows;
- The organisation needs to enhance their skill and their knowledge for dealing with the needs as well as wants of the consumers within the market.
- The organisation also needs to maintain their rates and their service plan stable to maintain the billing process. It is also essential to deal with the inaccurate rates of service plan for the consumers.
- The management of the firm needs to scrap within the 13000 to 15000 jobs for maintaining the number of staff members within the organisation. The management also needs to take an effective decision regarding the employment cost within the business.
The paper eventually concludes the fact that the internal environment of the organisation is highly influential for maintaining the activity of the firm and also for dealing with the situation in the most effective way. The paper even concludes that the telecommunication sector faces some of the huge challenges in the internal environment that directly affect the growth of the business within the market.