Provide a critical analysis of the macro environment and how it determines your chosen organisation’s strategic management decisions using; i. PESTLE model for environmental analysis
RQF Unit 32 Business Strategy Unit level 5
Unit code K/508/0574
Business Strategy: Telecommunication Sector (UK)
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. Amongst the main telecommunications provider in the UK, you are to select one for the purpose of completing the tasks. Your answers across all the tasks should be based on your chosen organisation
Task 1 – The external environment.
Provide a critical analysis of the macro environment and how it determines your chosen organisation’s strategic management decisions using;
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, critically evaluate the organisation’s internal environment and its capabilities
i. Applying the ‘VRIO/VRIN’ model to analyse the strategic capabilities possessed by your chosen organisation
ii. Strengths and weaknesses of the organisation
Task 3 – Analysing the telecommunications sector.
Considering the competitiveness of UK’s telecommunications sector devise appropriate strategies to improve the organisation’s competitive edge in the market using suitable analytical tools and model of analysis such as; Porter’s five forces model, Stakeholders analysis, Ansoff’s product/market matrix, Balance scorecard etc. NB: You are not compelled to use all the models but a variety of different models for different situations is highly encouraged.
Task 4 – Understanding and interpreting strategic direction
Produce a strategic management plan for the organisation showing clear strategic direction and options available to the organisation. You must try to model the strategic direction of the organisation based on concepts or models such as Bowman’s strategy clock model, Porter’s generic and Hybrid strategies etc. Please note that ability to critique and interpret information and data by applying environmental and competitive analysis to produce a set of valid strategic directions, objectives and tactical actions for your chosen company would be rewarded.
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