Global Business Corporate Strategy Sample

In the present report discussion is about BT Group plc, trading as BT, and its global corporate telecommunications strategy, its competitive structure, various models and theories, and its strategy to capture external innovation for its growth. As mentioned in the report, British Telecom (BT) Group is one of the world's leading communications services companies, serving 18 million customers in over 170 countries. BT's main activities include of fixed-line services, broadband services, innovative mobiles and TV and networked IT services. Globally, BT supplies managed networked IT services to multinational corporations, domestic businesses and national and local regulatory organizations and government. Globally there are more of opportunities than threat that come in the nature of challenges to provide best of the services and applications, since mobiles are now more integrated in life and work of people (Wigginton, 2013).

In the following report the focus of discussion will be BT's global competitive strategy to capture and sustain innovation as competitive advantage, impact of regulations, convergence and intensity of competition. Detailed study of about BT's various strategic alliances, ventures and mergers with other corporate in order to become competitive leader has been performed. Detailed analysis based on research to answer the quest as to various technological innovations in the organizational structure to grab the global market (Afuah, 2013).

TASK 1: External innovation and competiveness

Compliance with global corporate strategy includes a very important segment, i.e. to abide by the regulations of the authority as this forms part of compliance with international standards to facilitate approvals from international quality authorities and also constitutes organizations corporate social responsibility. Regulation can be understood as a legal framework designed by the authorities to provide legal framework and disciplines to be complied with in business operations like in the given report BT. As telecommunications markets is said to be increasingly ruled by its technological innovation and the consistent launch of new services and products, therefore competition law principles will tend to play an important role in the regulation and oversight of the telecom industry (Bauer and Shim, 2012).

The Bureau has prime and sole responsibility of certain aspects of this sector (e.g., market oversight in areas where the CRTC has completely refrain from regulation) and also share its responsibility with the CRTC in the event of dealing with deceptive marketing practices and other anti-competitive matters. For example: control of predatory behavior and any activity which symbolize abuse of dominant position. Therefore the Competition Bureau handles complaint redressal concerns with the activities of company abusing its dominant position in an anti-competitive fashion. A scope of the Enterprise Act 2002 now covers disclosure of confidential information in UK. The Enterprise Act permits the disclosure of information which is termed to be very confidential but where disclosure of such information is obligatory as per the specified EU Community rules and regulations, a public authority is able to smoothly carry out its statutory functions (Walden, 2009).

In very short span, mobile communications has grown drastically from accessing voice calls, to MMS and androids to devices over billions in figure offering wonderful services in all areas of life. Mobile services in an ascending order of its occurrence are voice calls, text and picture messages, e-mails, video chats, mobile banking, online shopping, windows, etc. The moment mobiles have gripped the Internet for various services, fixed-mobile convergence has become an industry driving objective to fully integrated services available anywhere and anytime. Mobility and convergence have become big business - clearly visible from UK revenues from mobile at around £28bn in 2006, far more than the revenues from fixed network. Mobile convergence, together with broadband and ICT, is the basis of BT's new wave 21C and also a crucial motivator of the world-wide name in level of next generation networks (NGNs) (Brandt and et al., 2005).

Convergence of mobile and internet was seen at early stage and this is estimated to generate immense growth to the mobile market. Chief Technology Officer of British Telecom once revealed that WLANs will be able to provide improved access and speed at comparatively cheaper than cellular. This technology will be able to facilitate voice and video calls across a cell group of WLAN: for almost all public places which will denote the mobility in its true sense. Concept of mobility and convergence are changing at a faster pace with the growing needs and creative thinking of the world. Therefore, maintaining expertise in updating technological supports, standards and competitive rivalry is a tedious yet most demanded thing. BT management and team has always believed that mobility is that last for long, all this because of its wireless reach is just a segment of the bigger mobility picture. Due to demand of having wireless climate telecom industry players will have to face typical issues constantly that will demand intense researches and creative solutions (Doh, Teegen and Mudambi, 2004).

BT has a huge range of products and services; even then it struggled hard to achieve same results in achieving forecasted profit targets in the last years. All attempts to create stability in the mobile market were unsatisfactory, with lowest subscribers. Major reasons which were detected were delayed product launch and substandard product quality behind BT's declining performance. The intensity of competition is gigantic in this dynamic industry thus it faces various threats, like; extension of online service platform open to small businesses in addition to giant corporate, enhancements of its strategic application to deliver an enhanced and improved broadband television services, rise in number of Internet smart-phone services and improvisation of the Broadband speed, tie up with higher number of globally located partners to promote expansion beyond territorial limits, close competition from huge players already existing, global economic depression, employing talented workforce, shortage management and reducing operational cost, etc (Goerzen, Asmussen and Nielsen, 2012).

With the study of above-mentioned factors on innovation and BT's corporate strategy and the performance of company in terms of DPS, EPS and share prices, it can be understood that the company is on the path of growth but yet unstable. DPS and EPS of the company is on the increasing trend which shows that the operational performance are good enough as to pay its shareholders good returns on their investments in the company. But the share prices of the company have been facing a downward trend since 2008. This reveals that the company is not in sync with the other factors which determine its success on the stock exchange, i.e. performance of its shares in comparison to others competitors as well its last quoted price (Bartlels and Islam, 2002).

Recommendation

BT is recommended to adopt certain financial measures so as to increase the share prices which have been facing a downward trend since 2008. Reducing debts and increasing its profit after tax by adopting certain tools will enable it to achieve this. Also, the global alliance is the best potential extracting measure of BT to stay at the top of the telecom industry world-wide so it should look for more of these alliances and ventures in the developing nations as well so as cover an emerging market and customers. British telecom has been constantly increasing its standard in its human resource accumulation so as to deliver new and more innovative products to the world. This qualifies workforce has led BT all through its journey to success with a constant rising trend.

Conclusion

From the above-mentioned case study of British telecom, the study revealed that the corporate strategy plays a vital role to determine the success and profitability of the company as it guides the management to react actively at the right time by making the right move. It enables the management to make plans, strategize the options and take the best competitive and profitable solution from the available options. This not only reduces the chances of failure and losses but also enhances the chances of global networking, grabbing challenging opportunities and converting them to profits and channelizes resources in the best available manner (Meyer and de Wit, 2010).

References

• Afuah, A., 2013. ARE NETWORK EFFECTS REALLY ALL ABOUT SIZE? THE ROLE OF STRUCTURE AND CONDUCT. Strategic Management Journal. 34(3). Pp . 257-273.
• AT&T And BT Announce Financial Closure of Concert Joint Venture -- New company begins 2000 as leading global services provider. 2000. [Online]. Available through <http://www.thefreelibrary.com/AT%26T+And+BT+Announce+Financial+Closure+of+Concert+Joint+Venture+--...-a058430736> [Accessed on 3 October 2013].
• Bartlels, R., and Islam, T., 2002. Supply Restricted Telecommunications Markets: The Effect of Technical Efficiency on Waiting Times. Journal of Productivity Analysis. 18(2). Pp . 161-169.
• Bauer, M. J. and Shim, W., 2012. Regulations and Innovation in telecommunication. [pdf]. Available through <http://quello.msu.edu/sites/default/files/pdf/Bauer-Shim-Regulation_and_Innovation-QCWP012102.pdf > [ Accessed on 28 Sept 2013].
• Brandt, W. M., and et al., 2005. A Simulation approach to Dynamic Portfolio Choice with an Application to Learning about Return Predictability. Oxford University Press.
• BT Alliance Partners. 2013. [Online]. Available through <http://www.globalservices.bt.com/uk/en/campaign/bt_alliance_partners > [Accessed on 28 Sept 2013].

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