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Introduction to Information Technology

Information technology refers to the application which is designed to provide use of electronic devices to the customers. This industry has led to major change in various industries of the world, also with the aid of information technology, most of the businesses effectively communicate internally as well as externally. The information technology industry provides computer networks and applications with the help of which, companies efficiently use the technological resources to generate greater output for the company. the IT industry has led to change the regular business work of the organizations, like earlier there used to be manual recording of transactions and receipt, and now the process has shifted to electronic recording of all transactions. Also, the process has led to transparency in the organization culture.

The Company Telstra is an Australian which is involved in providing telecommunication and media services to its customers worldwide. Basically, the company creates and operates telecommunication networks and other mobile internet services which assist the people in managing their information technology activities. The company is Australia's one of the largest companies providing telecommunication services to people (Telstra 2017).

Talking about the market position of the company, Telstra was originated in the year 1975 as a government department. After that, the company went into privatization to provide better customer support services. In early 1990's the company was deregulated still somehow they managed to survive are the largest telecom service, provider. The HBR (Harvard Business Review) stated in its article that the company is earning the market capitalization by strategically providing low-cost services to customers on same routes at different times. In the current year 2017 the company's market holding 41.4 percent despite having tough competition (Reichert 2017).

The report further holds an overview of the company Telstra. It evaluates the market position of the company in the eyes of stakeholder, its vision and mission and opportunities and business model which has helped the company to grow in the Australian market. 

As discussed earlier the fact is known that the telecom industry is experience speedy growth and the network traffic along with digital communication is also growing in the changing world. The purpose of the Telstra Ltd. is to creatively create a connection for everyone. The company aims to connect everything to every person and make a better future. They aim to change the economy by changing the methods of communication and making it more efficient for use (Telstra 2017).

Telstra - Australia's Leading Telecommunication Company

 The detailed view of company's purpose to exist in the global world is discussed below:

  • Telstra believes that it is their responsibility to create better applications for future assistance, an application which connects future aptly. Future connectivity cannot be created on own thus; the company feels it as their responsibility to bring all the parts together which helps them to create a better future connectivity (Ali 2014).
  • The aspiration of Telstra telecom is to build a system for every person who shall connect them with all the achievable products and services which are required by them. Also, they aim to provide connectivity at all the workplaces and business to work efficiently and create better market conditions to survive in. the assistance of telecom connectivity in the business context will help them to create an efficient workplace management which will initiate productivity in the organization and lead them to provide better services n the external world. Resulting to which ultimately the customers will generate greater satisfaction which is the core objective of the company (Telstra 2017).
  • The company services are not limited to a particular group of business or people, instead, the aim of the company is to spread its services worldwide so that change process is not laid to a particular area, instead all people shall make use of these transformational benefits so that cultural, economic and social change is adopted.

Along with a set of purpose the company initiated set of values to express its customers that what they stand for and to guide them to the way with which they do things. The values of the company are in alignment with the activities of the business. Further, the values are described below in detail:

  • Show that they care,
  • Find courage (Muzellec, Ronteau, and Lambkin 2015),
  • Trust the delivery of output of each other,
  • Work together for better motive;
  • Initiate simplicity in complexity.

Along with which the company acts as a team while working on such activities. The team initiates to fulfill the purpose of the organization (Telstra 2017). Being a value based organization; the team must have the following spirits in them:

  • Willingness to take responsibility
  • Humility
  • Courage to challenge working of our own and other values which were desired but not met;
  • Determination to work effectively and
  • The desire to learn

Thus, with the following above statements, it shall be known that the company focuses on the fulfillment of their core values and purposes so that organizational objective is attained (EY 2013).

The company efficiently tries to fulfill the expectations of their both external and internal stakeholders. They have created their values to assist the internal stakeholders so that they can provide and receive benefits provided by the company. Further values of the company with respect to values of Telstra with respect to their stakeholder are discussed below:

Internal Stakeholder: the internal stakeholders of the company involve the employees of the organization. The company has created value for them in such a way that the management helps them to express their views about their job and the environment. Yabber is the internal site of Telstra which provides an opportunity to the employees to talk about their challenges, triumph etc. (McIntyre 2013).

External Stakeholders: the external members of the organization include customers, community, government etc. To these members, the company has planned values so that they can communicate to them properly. Also, the system provides a transparency which provides trust of stakeholders on the company.

A business model is a program which helps the organization to create and capture the values from the business activities implemented. The model in an organization is defined by looking at all the aspect which can affect a business. The model represents the core aspects of the business which also includes the purpose, target customers, management and manufacturing process etc. (Sebhatu, Gebaur, and Enquist 2014).

The business process used by the Telstra Company is NBN (National Broadband Network) business model. The network is Australia's largest telecommunication infrastructure project. It helps the organization to diversify their business activity and also it gives assistance to the company is delivering the services at every end of the company (Telstra 2017).

Telstra's Market Position and Business Strategy

There are numerous benefits which the company receives with an adoption of NBN services in the business. The opportunities which the company enjoys are discussed below:

  • The project of the Telstra is to multiply their locations to access the applications and software of the organization. The model helps the organization to initiate speedy changes and meet the crucial deadline.
  • Video conferencing is one of the sources with the aid of which organizations handle meetings and training worldwide without geographical boundaries barrier. Thus this model helps them to share their views more often, also circulate their feedbacks without distorted image or voice streaming. It is a better way to communicate (NBNCO 2017).
  • Downloading and uploading speed matters a lot while working online. But apart from that the size of with which the file is going to upload also matters. Like, if a small file is also taking many Mbs to upload then also it is an issue for the organization. Thus, this model helps the organization to do certain online activities without excessive data consumption (Budde 2015).
  • Now a day customers have become very fussy and do not believe in waiting to see any content online. The rich content involves photos and video which takes time to slowly upload on the website, till the customer feels restless. Thus, the model helps the company to generate greater satisfaction among customers by providing quick and efficient services.
  • The speeds available over NBN is the fastest speed in networking process, thus this process assists the work from home feature and enable people to provide quality work (Telstra 2017).
  • Thinking of future, Telstra's current connection and speed are good right now. But looking at the future scenario, as the company will acquire more employees and more customers; resulting to which demand for the product and services will also increase, thus the company needs a connection will help in hinder.

P- Political factors that affect the macro environmental analysis of the company is that there is stability in the external environment. Also, there is pricing regulation prevailing in the country, adding to which the anti-trust laws negatively affect the state of the company. Favored trading partners assist the growth of the company in the external market (Fernandez-Feijoo, Romero, and Ruiz 2014).

E- Economic factors which affect are government intervention, exchange rates, labor cost, type of economic system of the country etc. these are some of the factors which both positively and negatively affect the state of the company.

S- Social factors such as demographics, culture, class of people, leisure interest, entrepreneurial spirits etc. are the factors which affect the growth of the company.

T- Technological factors involved in the external environment of the organization are developments, cost structure, value chain, the rate of product offers etc. These factors directly impact the internal activities of the organization (Engstrand, and Sjödin 2015).

The model opted by the company adequately fulfill the requirement of internal and external members of the organization and also implies transparency with the organizational culture. Thus it shall be noted that yes the business model which is used by the company is ethical as well sustainable. The model of the company reflects that the company is constantly aiming to provide future connectivity to the whole world not just a class of people.

Talking about sustainability, the model provides a positive environment in the organization which results in building more capabilities for the organization. The FY14-15 focuses on embedding sustainability and monitoring compliances of the organization (Telstra 2017).

Stakeholder refers to a person who is connected to the company by any means whether external or internal. A stakeholder may also be a person who does hold shares of the company but is interested in buying or any person who is involved in the financial transaction of the company. Further, the difference between stakeholder and shareholder is discussed below:

  • A shareholder is the stakeholder of the organization but a stakeholder may or may not be the shareholder of the organization. Stakeholder includes shareholders, customers, competitors, employees, suppliers, and government. On the other hand, shareholder includes equity or preference shareholder (Parida, and Rönnberg Sjödin, 2017).
  • A shareholder is a person who has purchased the shares of the organization by investing into the company. On the other hand, stakeholders are the people who are directly or indirectly affected with the activities of the organization.
  • Shareholders are the owners and stakeholders are the interested party of the organization.
  • A shareholder can be a part of a company limited by shares only whereas stakeholder is the part of every organization (Keydifference 2017).

Stakeholders are the most important part of the organization. In order to first identify the stakeholders, the company needs to analyze the meaning stakeholders which is discussed above. The stakeholder of project in an organization can be analyzed as a person who is affected by the activities of the organization or has an influence on the activities of the organization (Delimiter 2010).

Telstra's Values and Purpose

The stakeholder theory is used to manage the interest of the customers in a particular project of the organization. The theory refers to an organizational management theory which states that the organization shall take care of the interest of all the stakeholders prevailing in the organization. There are many approaches defined under which theory which describes the way to manage the interest of stakeholders. The company shall adequately plan and implement the approach which shall satisfy their interest (Porter, & Kramer 2011). The theory also assists the corporate social responsibility and states that the company shall ethically support the interest of stakeholder and do not perform any activity which defrauds them (Teh, and Corbitt 2015).

The shared value in an organization helps the company to align the interest of stakeholders with the profit making company. The company aims to fulfill the corporate social responsibility of the organization which assists them to accomplish the stakeholders' interest as well. Thus, resulting to which the profits of the company is also maximized. So in this way, the interest to of the company is aligned with the interest of stakeholder. This process is called shared value through which the company Telstra manages to align the interest of stakeholders and fulfill the organizational objective a well (Cestino, and Matthews 2015).

The company Telstra has shareholders who have the stake in the well-functioning of the company. They are the people who have purchased the shares of the company by investing in the capital of the company. The major reason for which they are related to the company is that they are the owners of the company who have invested in the company. They have a risk aligned with, thus they constantly feel that the company shall grow so that better return can be availed by them. The company is liable to pay dividends to the shareholders of the company. The growth of the company is directly aligned with the interest of the shareholders (Tantalo, and Priem 2016).

In order to provide values to the shareholders of the organization, the company Telstra shall do its business activities in such a way that they provide an adequate dividend to the shareholders of the company. Also, the fact shall be considered that the shareholders should get the optimum dividend and other benefits in the ratio of their shares purchased. Also, they shall not be restricted to access their rights like voting etc. in the organizational decision. Also, the organization shall not only think of their own profit instead they shall work to provide benefits to the whole community of shareholders. Their private data shall also be kept safe and secured (Teti, Perrini, and Tirapelle 2014).

Telstra's Business Model and Opportunities

The regional customers of the company Telstra include community and local customers. These are those stakeholders of the organization who are local buyers of the organization. They usually purchase products from the local market present in the geographical boundaries of the country. Telstra being a wide area network service provider has many network users around the country; thus it shall be noted that most of the first customers of the company are localities of Australia only (Fernandez-Feijoo, Romero, and Ruiz 2014).

The value can be shared with the regional customers of the company in such a way that the company shall aim to provide assistance to these customers. They shall aim to stand on their values and purposes defined for the activities of the company. Along with which in order to gain shared values, the company must try to provide maximum satisfaction to customers. This will provide better services to the customers and the feedbacks will initiate efficiency in productivity of the organization (Porter, & Kramer 2011).

Other stakeholders of the company include government, suppliers, and regulars of the organization. These are those people who are not the shareholders of the organization but are directly or indirectly connected with the working of the organization. Suppliers are the people who supply raw material or spare parts to the organization. With the aid of such part, only the company becomes able to drive final products. The government decisions affect the growth of the company, also Telstra being the biggest company in Australia, change in the activities of the working of the organization highly affect other businesses and communities of the organization. Thus the government is also connected with the company in term of corporate social responsibility and tax paying system.  Regulators are those bodies present in the telecommunication industry who regulate the market fluctuations. Change in the market and its ups and downs are managed by them only. Telstra being one of the largest companies somehow regulates different activities prevailing in the market. Also, the decision taken by regulators need to be follow by the company as well (Pang, Lee, and DeLone 2014).

Value shares which these stakeholders is in such a way that the company shall continuously aim to maintain the corporate social responsibility. With compliance of CSR these people will generate greater satisfaction out of the services and ultimately the sale will increase (Porter, & Kramer 2011). Thus, it will become a win-win situation for both the parties i.e. stakeholders and the company Telstra Ltd.

PEST Analysis of Telstra's External Environment


In the limelight of above events, the fact that shall be noted is that the company Telstra is Australia's one of the largest companies in the world. The company regularly aims to provide best networking services around the world. The company uses NBN nosiness model to implement its business activities is the company. The further company constantly aims to maximize the satisfaction level of customers by providing fast growing telecommunication services. The mission and visions statements of the company state that Telstra wants to create future connectivity by providing telecom service all around the world. Thus, the fact shall be noted that the company is one of the companies existing in Australia's telecommunication sector. The company shares value with the stakeholders of the organization. Shared value process helps the company attain success for the organization by taking care of the interest of stakeholders.

After going through the data it is recommended that the company Telstra adequately holds the market share in the industry. Adding to it, for the company to improve its current position which is held by them in the market, the company shall constantly aim to provide better services to the customers. Through way, the company can eliminate the competition barrier from its working. Another barrier shall be removed by the company is that the employees of Telstra shall maintain and monitor that the services adequately serve the purpose and values of the organization. Hence, Telstra Corporation is working efficiently in the Australian market, further; there is some more scope of improvement which can assist the company in achieving market capitalization.


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