Part 1

Strategic information system is an effective part of each and every company. As the same way, it also plays a significant role in Telstra. Telstra is a growing information and telecommunication service company with one of greatest brands in the country. The profile, background and core competencies of Telstra have been explained in the task. The company cannot flourish its business internationally without using core value, competencies and capabilities. It discusses that how general environment plays a vital role to prevent the threats and risks of the market. The external environment consists various factors such as political, social, cultural, demographic, legal and technological factors. Moreover, industry analysis such as porter five forces analysis is done by Telstra to make a dynamic image in the market. The resources like tangible and intangible and core competencies are essential for Telstra which have been briefly explained in the paper. At the end, effective and unique information system is proposed for Telstra to protect its business from the external threats. Without dynamic information system, the firm cannot survive its business in a large extent. More detail of the task has been elaborated below.

Telstra is one of the biggest and growing technology and Telecommunication Company in Australia who is rendering ample of telecommunication products and services to the customers. It provides wide range of growth opportunities to the people and further, the company also works to create a brilliant connected future for the people around the world. It develops and improves the technology and provides wide range of solutions for handling the various issues and challenges. It provides biggest and dynamic mobile network to the customers. The firm improves and enhances the ways in which people work and live through connection. Telstra was incorporated in 1^st July 1975 in Australia (Telstra, 2018). It provides various technology solutions for the government and business customers including IP networks, Data and network application services. The organization has invested huge amount for providing high and unique growth opportunities in the global market. It is stated that Telstra is a biggest provider of e-health services in Australia (Telstra, 2018).

The telecommunication is one of the significant and dynamic industries in the world. This industry plays an empirical role in the evolution of the information society and mobile communications. Telecommunication is the transmission of signals, messages, writings, sounds, signs and images any nature by radio, optical, wire and electromagnetic systems. This industry further provides vital and significant infrastructure for national security (Nap, 2018). It is seen that telecommunication is considered the lifeblood of the society and it further helps to make the world a universal village. Telecommunication industry plays a fundamental role in each sector such as education, healthcare and financial sector.

Business Background

It is analyzed that macro environment is a significant part of each and every company. As the same way, it also plays a vital role in Telstra. Macro environment analysis is conducted by the company to eliminate and prevent the challenges and risks of the market (Dodgson, 2018). The general environment entails various elements that have been elaborated below.

Economic: The macro environment consists various economic factors like interest rate, employment rate, saving rate, foreign exchange rate and exchange rate. The GDP annual growth rate in Australian country was 3.46 percent from 1960 until 2018, achieving an all time high of 9% in the first effective quarter of 1967( Trading economics, 2018). The company should focus on the economic factors to gain ample of competitive advantages widely.

Physical: One of the significant factor is sustainability strategies that could be used by Telstra to capture the entire target audience in a large extent. Aside this, various programmes and sessions also are held by the company to sustain its competitive edge in the market.

Socio-cultural and demographic: The society’s culture and way in the country also put direct impact on the culture and working environment of the firm. The shared aspects and values of the people also play a great and dynamic role in how marketers at Telstra would understand and evaluate the customers of a given market. On the other, the demographic factors such as lifestyle, age and lifestyle could also affect the performance and effectiveness of the company (Jung et al, 2012).

Global elements: It is portrayed from the various analysis that Telstra is exploring the business functions in a large extent. Thus, the firm should focus on the targets and goals to render various telecommunication and network services to the customers around the world (Katz, Lazarsfeld, and Roper, 2017).

Technological: It is analyzed that advanced and innovative technology is quickly disrupting ample of industries around the world. Telstra must focus on the technology factors and speed at which innovative and advanced technology distracts that industry (Liu, Guo and Lee, 2011).

Political and legal: The legal and political factors may impact on the long term profitability and revenue of Telstra. The company is operating and supervising the telecommunication services in more than dozen and show itself to various types of political system risks, challenges and political environment as well. The bureaucracy, political stability, risk of military and level of corruption are main significant political factors. Before initiating the business, Telstra needs to focus on the political and legal factors to beat the rivalries globally (Shaikh and Karjaluoto, 2015).

Industry

It is noted that industry environment plays a significant role in Telstra Telecommunication Company. The porter five forces analysis for Telstra is discussed below.

Rivalry in the industry: There is high and immense competition in the telecommunication sector that could affect the profitability and revenue adversely. The competition is high because of telecommunication corporations supplying relatively similar products to the customers across the world. The major competitors of the firm include Vodafone, Optus, Orange and Primus. Suppliers and buyers search competitor’s companies if they fail to get appropriate deal and products. The organization needs to make unique and dynamic strategies to deal with competitors in a large extent (Rajasekar and Al Raee, 2013).

Bargaining power of suppliers: It is stated that bargaining power is high for the sellers of the various devices and technology. The telecommunication organizations could not afford to lose to the rivalries as many of the customers identify and analyze the buying of these devices and technologies. This includes labor, raw material, components and services. Along with this, the suppliers of vendors can escalate easily the prices of telecommunication products and services. Thus, the company needs to consider the bargaining power of suppliers to stay in the competitive market.

Bargaining power of customers: The bargaining power is high in the hands of the customers. This also affects the prices of products and services in the marketplace. There are various factors that affect the bargaining power of buyers include effectiveness of the products, gross trading and availability of existing substitute. Telstra has to make strategies and plans to reduce and eliminate the bargaining power of buyers globally (Rajasekar and Al Raee, 2013).

Potential of new entrants into the market: Any profitable markets with high revenue or returns attract and retain new players in the market. This can reduce the profitability and outcomes of the firm. Some factors that could impact on the new business leaders include capital requirements, branding, patent rights, legislative policies and accessibility to distribution. New entrants also affect the performance and efficiency of Telstra negatively. Therefore, the company needs to focus on the new entrants to meet the long term requirements of the business (Sutherland, 2014).

Substitute products: Competition and development in technology have brought about largely decreased profitability and revenue in the industry. The prices of substitute’s products negatively may affect the sale and revenue of Telstra in the international market. If Telstra wants to be a leader in telecommunication sector, it needs to focus on the substitute products widely (Porter, 2011).

General Environment Analysis

The competitive environment plays a crucial role to analyze and identify the risks, barriers and challenges of the market. Without analyzing the environment, Telstra cannot achieve its desired objectives and goals. Optus, Virgin mobile and Vodafone are come into the list of competitors that may affect the performance and productivity of the Telstra (Mbaskool, 2018). Effective and unique strategies are done by the company to beat the competitors in the marketplace (Cameron, and Quinn, 2011). Capabilities are an essential part of Telstra success that helps in maximizing the profitability and returns. The capabilities and culture program of Telstra are monitoring on the key capabilities of people and diversity. Furthermore, the firm is passionate about generating an environment that supportive and dynamic and making sure that workplaces give the employees a chance to shine.

 Apart from this, it uses unique practices and policies to promote equality and diversity within the organization. Aside this, it motivates individuals leaders to foster flexibility and fairness within their teams (Pehrsson, 2013). It has been analyzed that Telstra needs to use innovative strategies to hit the competitors globally. Corporate level and business level strategies need to be considered by the company while exploring and flourishing the business globally (Young and Muller, 2014). These strategies help in providing competitive advantage in the international market. Competitor is one of vital threats for Telstra that may impact on the growth rate and sales volume of the firm. Telstra needs to keep an eye on the plans and policies of the competitors to make a good image in the eyes of the customers (Mbaskool, 2018).

The opportunities and threats of Telstra is discussed below.

Opportunities

• Strategic growth initiatives are one of the vital and biggest opportunities for Telstra.
• Rising demand for telecom services can also be a unique opportunity for the company.
• Growing IT service market and 4G mobile broadband network launch (Mbaskool, 2018).

Threat

• Rapid and constant technological changes
• Intense competition
• Stringent rules, norms and regulations

Resources play a crucial role in each and every company to grow and expand the business functions globally. Telstra cannot maximize profitability and revenue without using effective and sustainable resources at the workplace. It is noted that Telstra provides 17.7 million retail mobile services, 3.6 million retail fixed broadband services and 4.9 million retail fixed voice services to the customers across the world. Telstra ranks as 11^th biggest Telco global in terms of market capitalization (Telstra, 2018). The company is well known for rendering mobile, fixed line and broadband internet services to the customers globally. The firm has employed approx 32,000 employees to perform roles and responsibilities effectively. The tangible and intangible resources entail goodwill, brand image, sustainable human resource management, supply chain management, trademark, and copyright. Effective and dynamic workforce is also appointed by sustainable human resources management to sustain rivalries benefits in the competitive market (Telstra, 2018).

Industry Environment Analysis

The core capabilities create new roles and delete existing roles. Furthermore, capabilities help to conduct or run the business activities in a large extent (Huemann, 2010). The company conducts unique and effective capabilities program to attract and retain maximum number of customers and employees as well. It provides training and development coaching to the workers for performing tasks and duties in a smooth way. Telstra is dedicated towards creating a favorable and dynamic working culture that provides support to the customers and employees globally (Klein, 2009). Aside this, unique leadership styles are also used by the top management and managers to motive the workers towards the attainment of objectives and goals. The core values include care, trust, integrity, together, simplicity and encourage (Fu, Zhu and Sarkis, 2012).

The core competencies are essential for innovation and development of the firm. The core competencies include innovation, integration and advanced technology. Advanced and innovative technology helps in attracting wide range of target audience Australia. The main purpose of the innovation is to improve and enhance the cost or prices of the telecommunication products and services in the global market. Along with this, innovative and advanced technology is used or initiated by the company to maximize the customers in the competitive market. In addition, the digital devices are used by Telstra to improve and enhance the level of satisfaction of the customers. Effective and innovative design practices are sued by the company to expand flourish the business widely. Aside this, Telstra is also responsible to connect with ample of customers globally. The firm is working to eliminate the pain points and generate all digital experience for the customers around the world. It establishes a standalone infrastructure business unit to drive efficiency and performance at the workplace (Cusumano, 2010).

It has been analyzed that Telstra should use dynamic decision support system to guide with analysis and decision making within an organization. This software system would help the company to make unique and effective decisions at the workplace. The decision support system will also helpful to improve and enhance the productivity and effectiveness of the workers. Aside this, digital media scenario shall be used by the company to save the energy and time of the customers. To overcome the competitors, Telstra has done some stronger and effective alignment with the IT system. In addition, ERP system can also be implemented by the firm to get good results and outputs within the organization (Partanen and Möller, 2012).

Telstra needs to conduct training and development sessions and programs to make unique decisions within the organization. The talented and potential expert or professionals should be hired by the company to detect the issues and problems of the customers (Partanen and Möller, 2012). Apart from this, Telstra can also implement a system to control the entire department through only a single device. This proposed system will help the customers to resolve their queries and complaints in a given time period. It is recommended that Telstra should focus on the corporate level strategy and business level strategies to stand out against the rivalries in the market. In addition, strong and sustainable human resource management shall be used to hire talented and skilled workforce within the organization. Leadership also plays a crucial role to assist and guide the workers at the workplace. Unique and dynamic leadership styles shall be implemented to motivate and enhance the employees towards the achievement of long term objectives and goals.

Conclusion 

It concludes from the above mentioned analysis that Telstra is one of fostering and leading company which provides telecommunication and mobile products and services to the customers around the world. The above analysis indicates that how the company uses intangible and intangible resources to cope up with competitors in the market and how it uses capabilities and core competencies to run the business functions smoothly. Telstra is best well known brand in the Australia who provides ample of mobile and telecommunication services to the target audience. Pestle analysis and porter five forces analysis are conducted by Telstra to minimize risks and threats of the market. These techniques further help to maximize or uplift profitability in the international market. On the other hand, the paper discusses that how Telstra uses suitable or appropriate information system to handle the grievances and issues of the customers. At the end, some suggestions have been given to improve the business performance and effectiveness in the competitive market.

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