Developing Strategic Plans for Success … Assessment
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¶ … Strategic Plans
Assessment 1 is Develop a Strategic Plan for Telstra
Telstra Company began as a government-owned venture that had its dominance in every share of the portfolio. In the 1990s, Telstra Company was privatized when the Federal Government traded out its whole stake in four tranches, T1, T2, T3, and the balance paid to the Future Fund. Today, the company is facing massive changes arising from its internal and external environmental pressures. It needs to reinvent itself after a segregated sale of most of its parts. With the trading of the company to private managers, they entered into unending conflicts over the denial of the unsettled changes that will have an impact on the business. Because of this, the government, through the Minister of Communication, has undertaken to strip Telstra Company of its powers of monopoly by forming a National Broadband Network (NBN), company externally from Telstra Company. Telstra Company will have to compete in the market alongside Vodafone and many other 500 competitors. On a fortunate note, the company has negotiated with the government to transfer its wholesale product of copper to the new company for $14 billion to be paid back in three years. In essence, Telstra Company will have to do some things to secure a better strategy of restarting its performances and growth. The number of workers has to be reduced. The company will be forced to adopt policies of the newly formed organization. The organization will have to change wholly in many fields. All these changes will have to come under a new strategic plan. This paper discusses a proposed strategic plan for Telstra Company. It presents the goals and objectives, vision, mission, PEST analysis and a monitoring and evaluation criterion.
2. Goals and Objectives
Telstra's segmentation approach is related to the primary conditions established in external marketplaces as compared to the cost production linkages. The main aspects, in this case, include common manufacturing facilities, technical linkages, standard technology, and common distribution channels. The issues suggested are inclusive of collections of markets and products, which are presented by different sets of competitors (Kelly, 2006). The goal also has a similar influence on price changes and the satisfaction of single customer sets. The top management is also impacted by drastic changes regarding quality and style. Composite products show substitutes of other diversified corporate businesses. As such, the main objectives of Telstra Company are as follows:
S: To increase its competitiveness in the market by 25% and reduce costs of service provision by 25% within a period of 6 months
M: To derive and apply new opportunities of growth to replace the state of monopoly earlier enjoyed to have a growth rate of not less than 12% annually
A: To develop a new and vibrant organizational culture that caters for the productivity of the organization and has a chance of increasing effectiveness by a measure of 10% in within a period of one year
R: To derive and integrate a new program of management and productivity customized to the needs of the employees and customers to meet the needs of the employees by 80% capacity.
T: To integrate the new NBN into its structure for productivity within six months
3. Vision and mission
A world leader in engaging full participation in and contribution to sustainable development of an equitable and peaceful society
To develop the capacity of businesses to act together through learning from each other on ways of engaging with alternative institutions involved in shaping people's lives.
Diversity: Recognizing that plurality of the product lines as the strengthen core and foundation based on people's diversity in fulfilling the mission. This will establish commitment towards opportunity equality for all and respect for difference (Steiner, 2010).
Collaboration: Recognizing that responsive, accountable and effective corporate governance requires inputs of each stakeholder, Telstra will share lessons generated in the participation of industrial performance (Camillus, 2006). The firm desires to inspire dialogue across different fronts up, promoting consultations, forging partnerships, building consensus, facilitating convergence and engaging diverse stakeholders.
Integrity; Recognizing that business organizations are answerable to all constituents; Telstra will act in the thorough and transparent manner in all undertakings. The firm is committed towards the demonstration of accountability to all stakeholders.
4. Environmental analysis
The political environment in which Telstra operates is rather stable and static, which limits the tendencies of harmful legal relations with the government.
The economic environment is relatively harsh as International currencies are exerting more pressure on the value of local and regional currencies.
The social environment is volatile as the staunch religious and firm cultural beliefs negatively influence consumer decisions.
The technology environment is fast changing and firms are struggling to keep up with the trends leading to the high acquisition and maintenance costs.
5. SWOT analysis
One of the strengths of Telstra is the availability of financial and qualified human resource capabilities. The main weakness is the frequent changes in the organizational structure. The firm has an opportunity of competitively operating with strategic partners. Moreover, the threat that the firm faces relates to high technological costs involved in the production processes.
6. Gap analysis
Previously, the firm had not phased its operations. This led to a breakdown of alternative ground in an organization. This signaled a determination to make application and focus on outcomes orientation in the main works. The gap failed to respond to immediate mandates that collectively developed staff inputs in the stakeholder inclusiveness. Initially, Telstra Company enjoyed a monopoly of the market. With new competitors, approximately 500 with the presence of Vodafone, Telstra Company needs to introduce new strategies of coexistence and sustenance in the market. It needs to have a new restructuring, including new vision, marketing strategy, new and diverse production process, vibrant products, and the establishment of the new customer base. Moreover, knowing that it already has a brand in the market, it needs to diversify its products and production processes. Telstra Company needs to realize that it has to create mergers and integration mechanisms like the integration of products processes with NBN to post a good force in the market.
The implementation of the strategic plan will take place in within a span of eight months. This will include circulation of business information and communication of the plan. Top management will work on gaining support from different stakeholders while delegating various roles and tasks (Kelly, 2006). The existing work base will be equipped with the new and necessary skills to implement the strategy. The Telstra Company will use its initial base and channels of implementation, through with a new seal and intent in the market. Merging with NBN, Telstra Company will introduce new schemes of operation. The plan will be presented to all the implementers amidst advertisement and training on the same. Stakeholders will be put to task to participate in the implementation process as a way of creating cohesion and quick integration of the plan. Monitoring and Assessment will be done in every process of implementation.
8. Review and evaluation
Top management will appoint a monitoring and evaluation team. The review process will use key performance indicators and strategic milestones for continual improvement and identification of the implemented review changes. This will require discussion of effective plans and methods aimed at improving strategic planning processes in future. Monitoring and evaluation will be done at every stage of implementation. The monitoring process will involve the use of KPI monitoring and evaluation process. With this process, Telstra Company will involve sales KPIs, marketing KPIs, Financial KPIs, among others. The performance indicators to be used include quantitative, practical, financial, actionable, and directional indicators.
9. Evaluation of achievements
The evaluation criterion will take different functional involvement forms in the ascertained steps (Steiner, 2010). The first aspect is relatively passive participation that calls for functional managers to focus on broad action programs and business strategies prepared by businesses and concurrence votes. If the functional managers at Telstra decide that the business plan is unacceptable due to unrealistic or inadequate commitments in functional areas, corresponding functional managers should issue non-concurrence statements (Kelly, 2006). The non-concurrences will be resolved by bilateral discussions between functional and business managers. If such agreements are not reached, non-concurrence issues will escalate based on organizational hierarchy towards a final resolution. Strategic partners can adopt the planning mode. In general, achievers will be assessed and evaluated based on performance. The performance of each implementer, in the form of departments, sections, individuals, and the entire organization will be used. Reward systems and appraisal mechanisms will be used to boost continued growth and development of the organization. Targets will be set for each department, with individuals requested to set personal targets. The achievement of these targets will act as a basis for evaluating the trend of development, together with predicting possible levels of growth for the future.
Some legislations and by-laws could affect Telstra's business operation. These legislations include the following:
The Employment Equity Act legislation
Human Rights Act
Fair… [END OF PREVIEW]
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