Strategies for Success Testra … Business Plan
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¶ … Strategic Plans
Developing and Implementing Strategic Plans
Assessment 1 is Develop a Strategic Plan for Telstra
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.
Telstra's segmentation approach is related to the primary conditions established in external marketplaces as compared to the production cost linkages. The main aspects, in this case, include common manufacturing facilities, technical linkages, and 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 in terms of quality and style. Composite products show substitutes of other diversified corporate businesses.
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 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.
The threat that the firm faces relates to high technological costs.
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.
The implementation of the strategic plan will take place in 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).
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.
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 on the basis of 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.
There are some legislation and by-laws that could impact on Telstra's business operation. It is critical to appreciate that various forms of strategic laws affect businesses (Camillus, 2006). Despite them contributing towards similar purposes, the improvement of the firm's capabilities will be governed by the accounting rules in treating each item differently. The investment will focus on increasing net assets on balance sheets, and other annual expenses against depreciation indices for profit and loss statements. Increments in the working capital enlarge net assets, but without annual cost repercussions (Wittmann & Reuter, 2008). Development expenses, in this case, will be charged as expenses within current year income statements and the additions to assets. The considerations point to dysfunctional behavior resulting in business managers having the unwillingness to commit themselves towards significant strategic expenses. This is a trend observed whenever there is a need to reward appropriately and monitor myopic management control systems (Steiner, 2010).
Assessment 2: ORAL/WRITTEN QUESTIONS
1) Legislation that may impact on the organization
One of the legislation affecting organizations is competition law. Competition law focuses on ensuring that fair competition is undertaken in various industries (Wittmann & Reuter, 2008). Governments hold that greater competition allows for lower prices, a wider variety of products and better quality goods. For instance, agencies such as Office of Fair Trading (OFT) and the Competition Commission (CC) investigate businesses that have more than 25% market share after merging with other businesses. The organizations feel that such businesses have excessive power and have the ability to set high prices while providing poor quality products. The regulators have the power to fine the businesses or prevent mergers from taking place (Camillus, 2006). Governments may fine businesses that fix prices and prevent other businesses from trading within similar markets.
The other forms of legislation are Consumer Protection laws. The legislation targets businesses that act unfairly towards consumers. This is especially noted as consumers are mostly in weaker financial position. Main consumer protection laws include Sale and Supply of Goods Act stating that goods sold should be of satisfactory value and quality. The Trade Description Act requires that services and goods perform in the manner advertised by businesses (Wittmann & Reuter, 2008). Consumer Credit Act protects consumers when buying on credit or borrowing money. Consumer protection adds extra costs to firms as there is intense need to comply with existing laws. If there is a lack of compliance, they risk fines and being put out of business through court orders.
2) Strategic Planning Methodologies
One of the viable methodologies is organic strategic planning. This conventional model is considered confining and linear in its application (Camillus, 2006). In such case, organizations are dynamic and robust systems that are changing. The plans produce conventional planning with quick obsolescence.
The model includes phases such as:
1. Articulate long-term vision and values to work to the vision of people gathered from the generation or community.
2. Persons leave that vision with a selection of realistic actions that are taken towards the prior vision meeting again.
3. People can regularly meet in reporting actions that take learning from them. The vision is further clarified through the meetings.
4. Occasionally, the lists and the vision of intended and accomplished actions are included in the Strategic Plan.
The second approach includes Issues-based strategic planning. The model works best for the firm had very limited resources, several major and current issues to address, minimal success with attaining ambitious goals, and little buy-ins to a strategic planning (Steiner, 2010). The model includes the phases such as:
1. Identify 6 of the important current issues that organizations faces.
2. Suggest action plans aimed at addressing issues over the next eight months.
3. Include information on the Strategic Plan.
3) Knowledge of competitors
It is critical to appreciate the existing activities and progress of the competition. If competitors are in service businesses, it is important to know whether they have changed their offerings or created new combined services (Camillus, 2006). Such information includes going into partnerships with related companies of diversifying their offerings to accommodate innovation. The retail businesses benefit from knowing whether competitors have slashed prices, sourced alternative product types, changed ownership, rebranded, or started marketing themselves in different ways. These aspects are important in impacting change in the manner that people run businesses. A critical source of information about competitors is customers. Talking to them about immediate perceptions of business and other elements of the sector is important (Kelly, 2006). The mystery shopping trends and sending friends along to competitor's shop and giving them calls to find out what they offer is a way of handling customer information. Even… [END OF PREVIEW]
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