The analysis of Telstra Essay.

The analysis of Telstra

Graduate Learning Outcomes

ULO 1, GLO 1 – Demonstrate an understanding of managerial theory and preparation in contemporary organisations

ULO 2, GLO 1 & 2 -Communicate management concepts in a written business report.
ULO 3, GLO 1 & 4 – Critically analyse information relevant to management.

Solution

The analysis of Telstra

TOC

Summary………………………………………………………………………..…….2

Introduction ……………………………………………………………………..……2

Body………………… ……………………………………………………..………  3

The academic concepts on the purpose of Telstra

  The academic concepts on Telstra’s general environment

  The academic concepts on Telstra’s CSR and ethics

  The academic concepts on Telstra’s culture

Conclusions……………………………………………………………………………8

References list……………………………………………………………………..….9

Executive summary

This paper defines, describes and explores various academic concepts and literature relating to an organization, identifies and relates those concepts to a chosen organization, Telstra. It discusses the concept of the purpose of an organization and identifies Telstra’s purpose as ‘to create a brilliant connected future for everyone’. It also explores the concept of an organization’s general environment and identifies political, economic, social-cultural, technological, ecological and legal as factors outside an organization that affects its operations. Technology is identified as the key external environmental factor that has the greatest impact on Telstra. The concept of corporate social responsibility (CSR) is also defined as a ‘company sense of responsibility towards the community and environment-both ecological and social- in which it operates’, and Telstra’s CSR activities discussed.  Finally, the paper explores the concept of organizational culture, the set of shared values, behaviors and beliefs, traditions, customs, rituals, languages and ways of interactions within an organization.

Introduction

Telstra Corporation limited, or simply Telstra, provides mobile telecommunication and other information services to a wide clientele including individual customers, small and medium size enterprises, large organizations and government departments. Its product range includes mobile services, data services, voice and managed services. It primarily operates in Australia, with headquarters in Melbourne. It has a presence in over 20 countries and, serves hundreds of millions of clients and employs over 25,000 employees directly. This final report explores Telstra’s purpose, environment, and culture and CSR activities

1.3 Final report

1.3.1. Define, describe and discuss academic theory/concepts on the purpose of an organization

According to Robbins, DeCenzo, Coulter & Woods, (2016), the purpose of an organization is the principal reason why the organization exists. It basically answers questions regarding ‘why the organization’s work is important’. Stakeholders should find the purpose of an organization to be inspirational and even motivational as it defines their contribution to society through their work. While businesses fundamentally exist to make profits, they also purpose to make a difference in the society and also are part of a larger meaningful legacy.

1.3.1.1 Identify the purposes of your chosen organization, its mission in 2016/7, and its profit/not-for-profit orientation with reference to relevant theoretical concepts

The purpose of Telstra is to ‘create a brilliant connected future for everyone’. The company desires to take on the responsibility and aspiration to create a future where all its customers can enjoy a global interconnectedness. It also hopes to leverage technology to create a social, economic and cultural change in our communities and societies. Besides generating value for its stakeholders and delivering excellent service to its customers, Telstra aspires to play a greater role in making the world a better place through various community programs.

With a vision to become a ‘world-class technology company that empowers people to connect’, Telstra offers a wide range of connectivity, content, and media to businesses and consumers in Australia and beyond. The company leverages its core strengths in networks to capture new opportunities in the global arena in both conventional and emerging frontiers. All this is done to generate returns to shareholders and offer great value to customers with the purpose of creating a brilliant future for everyone.

1.3.2 Define and describe academic theory/concepts on an organization’s general environment

The general environment of an organization is defined as the range of factors or forces that operate outside the organization but often influence the operations and even performance of an organization. Their impact is uncertain, but may sometimes have severe consequences to the operations of the business.  The key dimensions of the general environment that affect a business are best captured by the acronym PESTEL, which denotes the political, economic, social-cultural, technological, ecological and legal factors that affect an organization. The political factors are the political issues that affect a business such as campaigns, elections, and political violence; economic factors are those economic variables such as unemployment and interest rates, inflation, exchange rates, taxation regimes, fiscal policies etc that have affect money supply, availability of credit, disposable income etc; social-cultural factors include demographic factors, tastes and preferences, attitudes and values etc; technological factors include issues such as rapid changes in technology and its impact on industries and the way business is conducted; the ecological factors are those that affect the business operations with regard to its impact on the environment while legal factors relate to the business regulatory environment with regard to areas such as consumerism, employee relations, competitive practices etc. Managers must utilize appropriate tools to analyze all the dimensions of the general environment in order to understand how such factors impact on the organizational strategies, goals and objectives and the ability of the organization to achieve its vision.

1.3.2.1 Discuss one general factor/condition relevant to your chosen organization’s general environment with reference to relevant theoretical concepts. Analyze the impact of this factor on your chosen organization in 2016/7 and suggest how the organization could deal with this factor. (Approximately 600 words)

The general environment factor that is most relevant to Telstra is technology.  Telstra thrives in a fast changing technology world where competition is no longer a function of size, capital base, prices, geographical reach or any other conventional competitive arena. Future competition will mainly be anchored on innovation and advancements in technology. There are numerous examples of companies that have gone down due to failure to adapt to changes in technology. Nokia and Kodak are some of the landmark cases of how failure to innovate can lead to the collapse of global giant corporations. Telstra, therefore, continues to face the challenge of adapting to innovations in this sector if it is to continue being a market leader in its niche market.

Technology is the core of operations for players in the telecoms industry. Telstra, for instance, has leveraged on advanced networks such as LTE and 4G technology to offer unrivaled products and customer experience to its subscribers. Despite its enviable position in the industry, the company continues to face significant challenges with innovation in the industry, which threaten to affect its bottom line. Key among this is the wireless telecom service providers that offer over-the-top- services. As long as someone is able to talk to their friends and loved ones via social media such as skype, iMessage, Whatsapp and other platforms, the conventional voice revenue will continue to take a hit. The challenge presented by these innovations is that they will continue to be invented and therefore unless telecom operators continue on the innovation path, their core products will be rendered obsolete or at best, secondary. In order to overcome the challenges posed by the technological environment, the management must carefully evaluate the company’s current and projected technology situation, and determine whether the company is prepared to take on the changing technology needs of the modern consumer. Telstra must also invest heavily in research and development in the newest technology, mergers, and acquisitions of complementary service providers and other models of business development so as to be part of the new technology frontier.

1.3.3  Define and describe academic theory/concepts on organizational Corporate Social Responsibility (CSR) and ethics.

Beal (2014) defines corporate social responsibility (CSR) as a form of corporate self-regulation that is integrated into an organization’s business model. In this self-regulatory business model, businesses ensure that they comply with the legal, ethical standards and national and international norms and best practice. Corporate social responsibility goes further than compliance, and attempts to engage in ‘actions that further the social good, beyond the business interests and the legal requirements’. The Business Dictionary defines corporate social responsibility as a ‘company sense of responsibility towards the community and environment-both ecological and social- in which it operates’. The most common forms of corporate social responsibility actions include waste and pollution management, contribution to social and educational programs and environmental conservation among other social causes.

The concept of corporate social responsibility underlies the idea that businesses can no longer operate in isolation as they are linked to the broader society in one way or another, which has eroded traditional views regarding competition, profitability, and survival. It promotes a vision of accountability to a broader range of stakeholders besides the traditional shareholders and investors. The need for corporate social responsibility is driven by factors such as;

The reduced role of government

After realizing the government failures in the management of various social issues such as education for the marginalized population, environmental conservation, and other social issues, businesses have explored the possibility of voluntary and non-regulatory initiatives to help the communities.

Customer interests

A recent research on consumer behavior indicates that ethical conduct of companies greatly influences consumers purchasing decisions. In the study carried out by Environics International, more than one in five respondents reported having made a purchasing decision based on the company’s perceived involvement in community issues.

Investor demands

Rather than concentrating on the bottom line concerning a company’s performance, modern investors are increasingly concerned about a whole round criterion, including ethical concerns. A recent study carried out by Environics International revealed that more than a quarter of American investors strongly considered the ethical and social involvement of a company when making stock purchasing decisions.

Benefits

While corporate social responsibility represents a significant cost to an organization, it’s not without key benefits. Improved financial performance, enhanced reputation and brand image, increased customer loyalty, reduced regulatory oversight and employee retention capacity are some of the perks associated with corporate social responsibility.

1.3.3.1 (Start by reading pp. 52–59 of the textbook). Discuss the CSR and ethics of your chosen organization with reference to relevant theoretical concepts on ethics and CSR. (Approximately 600 words)

Telstra group engages in a number of CSR activities. In the last year alone, the company spent $175 million on CSR activities.The company deploys technology and digital connectivity to support social services, employment, and social interactions. Through the following platforms, the company is leveraging its technology, scale, presence and expertise to make a difference in the society.

Promotion of digital literacy

The company recognizes the need for literacy in technology as an essential skill in modern times. In 2016, through its Telstra Digital Ambassadors programs and the Tech Savvy Seniors program, cyber security awareness programs, the company reached at least 59,000 people through instructional videos and face to face training. Partnerships with the New South Wales, Queensland and Victorian state governments have deepened digital inclusions and increased access to government information online.

Supporting victims of family violence

In partnership with Women’s Services Network, Telstra continues to help victims of family violence to stay safely connected with their family, friends, vital information and essential services. The company projects that it will issue at least20,000 Smartphone’s over the next three years, a $30 pre-paid package coupled with information on the safe utilization of technology.

The company, through its foundation, has also partnered with non-governmental organizations to tackle tough societal issues such as youth suicide and outcomes of people living with a disability. The company, through its eSmart library initiatives, is also involved in the promotion of education throughout Australia.

1.3.4 Define and describe academic theory/concepts on organizational culture.

Organizational culture, according to Martin (2002), comprises of shared values, behaviors and beliefs, traditions, customs, rituals, languages and ways of interactions within an organization.It’s generally a common set of values, even meanings, that are shared by the members of a given population, profession or organization. In essence, culture unites employees by providing a sense of belonging and identity, creates a unique identity for each organization, generates employee commitment that supersedes individual interests, and finally, culture helps in setting the organizational rules, standards, and norms and set of behaviors in an organization.

Essentially, each organization develops its own culture, consisting of values and elements that are practiced in that organization. The challenges that face communication and organizing in a local or global environment are based on the realization that there are differences in culture, behavior, and relationships either within or without the organization. As detailed below, the elements of culture include;

Values- these are the commonly held beliefs and accepted set of behaviors and philosophies that are shared in an organization.

Rites and rituals: activities such as performances and celebrations that reinforce and foster a sense of teamwork and inclusion are what make an employee to feel part of the bigger organizational dream. These include sales meetings, end-year parties, planned retreats and other related group activities.

Heroes- culture also comprises those members of the organization, who, by virtue of their contribution to the organization, personify its values and bear its vision. Icons such as Bill Gates, Richard Branson, and the late Steve jobs are strong characters that identify the culture of the organizations that they lead. Other elements of an organizational culture include communication channels, norms, stories and legends and the organizational climate.

1.3.4.1 Start by reading pp. 42-44 and 46-47 of the textbook). Complete the personal insights quiz ‘What’s the Right Organizational Culture for me?’ (Robbins et al., p. 46). Report on your results from this quiz and reflect on how well you think you might fit into this organization and its organizational culture with reference to relevant theoretical concepts.

The culture at Telstra is value-led and sets out the values that represent what the company wants to be and the way to act.These values govern the way people behave and make choices in the company and encourages everyone to take the high ground, to act ethically and to embody integrity, values that create a sense of shared pride amongst employees. Values define how Telstra runs its business, how it makes decisions, what it stands for and finally guides actions and shapes the business.

Telstra’s value-led culture is more responsive, innovative, diverse and even collaborative, and is, therefore, critical to the ability of the company to deliver on its purpose and business strategy.It’s anchored on engaging employees, giving them opportunities to learn, grow and develop in their roles and enabling employees to derive job satisfaction in what they do in order to be able to deliver great customer experience.

Telstra’s organizational culture is best captured by the words of Rod Gillis, a sales manager who noted that it was a great opportunity to ‘enjoy several careers while staying within the one company,”. He has worked at Telstra for the last 40 years. He continues ‘My son now works here and I couldn’t be prouder that he selected Telstra as his career of choice. The company has a very bright future as we get stronger and stronger.”  This explains the commitment of employees, backed by a strong organizational culture, to excel in serving their customers.

With a score of 28, in the culture evaluation quiz, I strongly believe that Telstra’s culture is ideal for me and that I would easily identify and thrive in this work environment. My quiz score can be interpreted to mean that I am comfortable in cultures that are informal, humanistic, innovative and flexible, which are more likely to be found in high-tech companies such as Telstra. The fact that it focuses on values, integrity and responsiveness, innovative, diverse and even collaborative and the fact that it supports the growth and development of employees as demonstrated by the above case studies appeals to me.

Conclusion

Organizations exist for a particular reason, which is clearly depicted by its mission, vision, purpose, goals and objectives. In order to attain its main goals, it has to deal with various challenges that are posed by both the internal and external environments. Managers must, therefore, interrogate the organization’s external environment and establish how each factor influence its strategic direction. In order to create an environment of collaboration, commitment and focus by employees, organizations must create and develop a favorable and conducive organizational culture that unites all the stakeholders in an organization, creates a sense of pride and inclusion in an organization. For long term sustainability, organizations must be socially responsive through participating in various CSR activities.

Reference list

  1. Robbins, S, DeCenzo, D, Coulter, M, & Woods, M 2016, Management: The Essentials, n.p.: Melbourne, Vic Pearson Australia, [2016], DEAKIN UNIV LIBRARY’s Catalog, EBSCOhost, viewed 29 March 2017.
  • Telstra profit down as competition bites’, 2017, The Age (Melbourne, Australia), 2017, Academic OneFile, EBSCOhost, viewed 29 March 2017.
  • ‘Telstra Corporation Limited SWOT Analysis’ 2016, Telstra Corporation, Ltd. SWOT Analysis, pp. 1-8, Business Source Complete, EBSCOhost, viewed 29 March 2017.
  • Moorhead, S 2016, ‘The Telstra Research Laboratories’, Australian Journal Of Telecommunications And The Digital Economy, 4, 4, p. 1, Informit Business Collection, EBSCOhost, viewed 29 March 2017.
  • Beal, BD 2014, Corporate Social Responsibility. [Electronic Resource]: Definition, Core Issues, And Recent Developments, n.p.: Los Angeles: SAGE, [2014], DEAKIN UNIV LIBRARY’s Catalog, EBSCOhost, viewed 29 March 2017.
  • Laeequddin, M, &Waheed, K 2016, Corporate Social Responsibility: Is It A Matter Of Ethics?, n.p.: [London]: SAGE, 2016., DEAKIN UNIV LIBRARY’s Catalog, EBSCOhost, viewed 29 March 2017.
  • Martin, J 2002, Organizational Culture. [Electronic Resource]: Mapping The Terrain, n.p.: Thousand Oaks: SAGE Publications, 2002., DEAKIN UNIV LIBRARY’s Catalog, EBSCOhost, viewed 29 March 2017.