Business Strategy Assignment - Business Strategy: Telecommunication Sector (UK)
Purpose of this assignment -
This assignment is designed to develop students' awareness of the different kinds of strategy which could be used in an operational, tactical or strategic role for any organisation. It will also encourage learners to assimilate the key concepts of business strategies while focusing on various micro and macro environmental factors. Learners will use a wide range of theories, models and concepts that will enhance their understanding and knowledge which could significantly support an organisation's strategic choice and direction.
Case study - Mobile Telecommunication Sector (UK)
Mobile telecommunication sector is growing fast worldwide. In the UK the trend is also the same. According to survey done by Deloitte, more than half (53%) of 16-75-year-olds in the UK use their smartphones while walking - the equivalent of around 22 million people. For younger consumers aged 16-24, the proportion rises to 74% (Deloitte, 2017). Mobile telephony services generated £3.8bn in retail revenues in Q1 2017, a £65m decrease from the previous quarter but a £32m increase compared to a year previously (Ofcom, 2018).
Major mobile network operators in the UK are; EE, Vodafone, BT, Giff-gaff, O2, Virgin, Three and BT.
The market is very competitive for obvious reasons. It has become a great challenge for all the companies to maintain their current position and to increase their market share in both national and international market.
Assignment -
Amongst the main telecommunications provider in the UK, you are to select one for the purpose of completing the tasks. Your answers should be based on your chosen organisation in all the tasks.
Task 1 - The external environment
You are to analyse the impact and influence the macro environment has on your chosen organisation and its business strategies.
In your answer you are to use;
i. PESTLE model for environmental analysis
ii. Ansoff's growth vector matrix to analyse the organisation's strategic positioning
Task 2 - The internal environment and organisation capabilities
Continuing with your chosen organisation, conduct an assessment of the organisation's internal environment and its capabilities.
In your answer you will need to;
i. Explain what strategic capability means
ii. Apply the 'VRIO/VRIN' model to determine the strategic capabilities possessed by your chosen organisation
iii. Identify the organisation's strengths and weaknesses
Task 3 - Analysing the telecommunications sector
For this task you are to evaluate the competitiveness of UK's telecommunications sector using Porter's five forces model. Your answer should show clearly analyse;
a. Bargaining power of buyers
b. Bargaining power of suppliers
c. Threats of new entrants
d. Threats of substitutes
e. Rivalry within the market
Task 4 - Understanding and
Using Bowman's strategy clock model, analyse the strategic direction and options available for your chosen organisation.