Strategic Management

Strategic Management of T Mobile

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Introduction to Strategic Management

Strategic management is a very crucial but significant decision for an organization. It can define as a set of different managerial actions and decisions that help in determining the long run future performance of the company. Along with this it is an art and science of planning, formulating, implementing and evaluating the cross functional and strategic decisions that enables an organization to attain its objectives, mission and vision of the organization (Galliers and Leidner, 2013). The present research report focuses on the strategic management of the T-Mobile UK Company which is recently merged with Orange and now it is called EE. It comprises different strategic trajectories which are followed by organization in past and by which company has developed their strategic thinking (Abraham, 2012). The study focuses on different strategic models and theories for analysis the strategic management of T-mobile organization. The current investigation also includes different key issues which are faced by me at the time of research.

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TASK: b)

Key areas of research

For analyse the strategic management of the T-mobile major key areas of the research includes different strategic issues which are faced by organization in past and present business scenario. Along with this research also comprise different strategic models which are helpful for organization for effective strategic management (Doole and Lowe, 2005). In addition for resolving strategic challenges and issues are various solutions and recommendations are also including in the key research area.

Sources which are used by me for identifying and undertaking in presentation

Strategic management of the T-mobile can be presented by the power point presentation (Doole and Lowe, 2008). It is a very significant source for presenting current topic in an appropriate way. In this presentation I am using diagram, charts, graphs and key concepts relevant to strategic management of T-mobile. In the last slide of presentation I m using reference list in Harvard referencing style which provide a clear initiative about content of each slide (Galbreath, 2009).

Key sources of research/references/literature review

For analysing and evaluating the strategic management of T-mobile there are different key sources of research, references and literature review (Hensmans, Johnson and Yip, 2013). Major sources of research are websites of the T-mobile, books on strategic management and published documents of T-mobile organization. Different articles on strategic management are also useful for this research. Along with this scholars research on relevant topic will also provide insights for current research on strategic management of T-Mobile (Parvinen, Tikkanen and Aspara, 2007).

Research skills

There are different types of research skills which are required for conducting investigation and developing report on strategic management of T-mobile (Ren, Xie and Krabbendam, 2010). These include the way of using web based information and sources, such as report, trade association statistics about the performance of the T-mobile, government reports and rules, business press and journals, etc. Including this interpretation and evaluation of obtained data are also very essential for researcher.

TASK: c)

Critical discussion on strategic model for strategic management of T-mobile

T-Mobile is a national provider of the wireless voice, messaging and different data services. It has a strong local coverage in all over the country. Strategic management of the organization can be analysed by different strategic models, such as PESTLE analysis, Porter’s five force model and Mintzberg’s five Ps for strategy. Critical discussion on these models is as follows (Ulph, 2011):

PESTLE analysis

It is an external analysis and provides a look at the external environment of the T-Mobile in current position. It comprises different factors which influence strategic management of the organization; these are (Singh, 2013):

Political factors: As per the telecommunication industry of the United Kingdome after joint venture with the Orange, company is facing different political factors, such as consumers have strong rights within the Europe, strategic collaboration, different roaming regulations, distinct laws and legislations which are developed by European Union for communication industry of company (Doole and Lowe, 2008).

Economical factors: It include changes in GDP exchange rate of the country, global economic crisis and inflation etc are major economical factors for organization which affect the financial trades of the T-Mobile.

Social factors: These factors comprise green issues, mature population and their expectations towards T- Mobile and changing work patterns also influence the overall operation and production system of a company (Crawford, 2013).

Technological factors: For the T-Mobile new and technological innovations, 3G and 4G generations as well as emergence of alternative technologies for the future development of the organization. All these things also affect the technical development of the t-mobiles (Abraham, 2012).

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Legal factors: In this category company includes different acts such as the sales of Goods Act 1974 which states that all products and data pack which are developed by organization must fit for the purpose for which they are intended. Along with this distinct rules and regulations which are made by the government of the nation (Nandakumar, Ghobadian and O'Regan, 2011).

Environmental factors: Environmental pollution form handset accessories and pre-paid envelopes of the data packs of the T-Mobile. All these things affect the packaging services of the company (Aldehayyat, Khattab and Anchor, 2011).

According to the view of West, Ford and Ibrahim, 2011, “Political factors affect the joint venture strategy of T-mobile and orange which influence the overall performance of the Everything Everywhere” (West, Ford and Ibrahim, 2011). But as per the view of Parvinen, Tikkanen and Aspara, 2007, “Political factors also help in developing strategic plan for an organization as well as different practices for this joint venture” (Parvinen, Tikkanen and Aspara, 2007). Study of Galliers and Leidner, 2013 concludes that “GDP and inflation influence the international trades of the T-mobiles which decreases the overall performance of the company” (Galliers and Leidner, 2013). But Ren, Xie and Krabbendam, 2010 States that “economical factors increase the employment opportunities and availability of the resources which increases the strategic planning and progress of the T-mobile in international market” (Ren, Xie and Krabbendam, 2010). Along with these social factors decreases the overall production volume of the T-mobile organization but on other hand it maximize the corporate social responsibility of the company. Study of Kim, 2013 shows that “rapid change in technologies influences the overall strategies and data plans of T-mobiles” (Kim, 2013). But on other hand technologies change also improve the production efficiency of the organization. Legal factors affect the progress and different rules and regulations of T-mobile but it also increase the efficiency in production policy of the company (Singer and et. al., 2007).

Porter’s five force model:
  • This model has appropriate consistence and compatibility with the porter’s five force model and its forces (Aldehayyat, Khattab and Anchor, 2011). For instance it includes a force which is threats of new entrants that develops a barrier for the new entry in the industry.
  • Another force of the model is threat of the substitute products and services of the T-mobile, such as relative prices and quality of the substitute products and switching cost of the buyers of the organization. (Orange and T-Mobile Confirm UK Merger Details, 2010).
  • Existing competitors also influence the overall strategies of the T-mobile organization for their competitive advantages. It focuses on the number of competitors of the organization and their product differentiation, etc.
  • Another force is power of buyer which can be measured by the number of buyer of the T-Mobile. It can be increased by improving the quality and range of the services which are provided by the organization (West, Ford and Ibrahim, 2011).
  • Power of supplier force can be measured by the number of available supplier and quality of the raw material which are offered by them. It affects operation and production system of T-mobile.

According to the Kim, 2013, “analysis of five forces states that first strength develops barrier for the new entrant by different factors such as product differentiation, high financial requirements, economies of scale, etc” (Kim, 2013). But, McGrath, 2013 says that “this force stuck the competitive advantages for an organization” (McGrath, 2013). However As per the view of The Five Competitive Forces That Shape Strategy, 2014, “Barrier for the new entrant stuck different strategic of the company which influence the advantages of the transitional competitive advantages” (The Five Competitive Forces That Shape Strategy, 2014). Along with this as per the point of view of Kim, 2013, “this strategic model leads the end of the competitive advantages but focuses on being an average company to a great company in telecom industry” (Kim, 2013). On other hand McGrath, 2013 says that “all these forces are adopted by some old companies which are not in the telecom market now” (McGrath, 2013). Thus, existing competitors does not affect the competitive advantages of the organization.

Mintzberg’s five Ps for strategy

This model provides five Ps for strategy formulation for an organization; these are as follows:

  1. Plan
  2. Poly
  3. Pattern
  4. Position
  5. Perspectives

Critical evaluation shows that as per the view of Ulph, 2011, “All these strategies are helpful for attaining the competitive advantages for T-mobile”. This model is consistent and compatible for attaining different competitive advantages of T-mobile (Young and Owen and Connor, 2011). According to the Abraham, 2012, “effective planning leads the outcome of company towards the great level of the competitive advantages but this element does not focus on the transitional competitive advantages” (Abraham, 2012). Poly means decided and planned strategy must be associated with the objectives of the organization and provide a way to organization to become a better than their competitors. On other hand Doole and Lowe, 2005 states that “Poly strategy does not focus on the running competitive advantages for T-mobile” (Doole and Lowe, 2005). According to Galbreath, 2009 “Specific pattern strategy lead that general plan is not sufficient for an organization it requires specific pattern strategies such as consistency with the behaviours” (Galbreath, J., 2009). Position states that company should ensure about the match of internal and external environment of the organization. Strategy as perspectives shapes the organizational standpoints also. Ren, Xie and Krabbendam, 2010 articulates that “all five Ps of the organization leads that company should focus on sustainable competitive advantages not transitional competitive advantages” (Ren, Xie and Krabbendam, 2010). Bust as per the view of Singh, 2013, “all these strategy provides insights for effective strategic management of the organization but is does not lead a continuous competitive advantages for T-mobile (Singh, 2013).”

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TASK: d)

Conclusion and findings related to the strategic theories and model

PESTEL analysis of T-mobile concludes that strategic management of organization is affected by political factors, such as rules and regulation of the European Union for joint venture, roaming regulation for telecom industry, etc (Young, Owen and Connor, 2011). Economical factors are Growth Development Product and exchange rates decreases the overall international trades of the organization. Social factors of the T-mobile affect the production and operation system of organization but it also increase the corporate social responsibility of the organization. Technologies factors decrease the compatibility of T-mobile as compare to their competitors of T-mobile should use the latest technologies for their organization, product and services. For managing legal factors T-mobile should focuses on European Union rules and regulations for developing different practices of organization. Along with this, T-mobile should spotlights on those elements that reduce environmental pollution form operation and production system of organization (AT&T and T-Mobile Open Networks to Customers of Both Carriers in New York and New Jersey, 2012).

Porter’s five force model and its analysis shows that company is facing different powers which influence strategic management, competitive advantages and overall performance of T-mobile. These forces includes threats from new entrant, bargaining power of supplier and buyer, threat form substitutes, rivalry among existing competitors, etc (Crawford, 2013). All these forces affect the product differentiation strategies, continuous competitive advantages, technologies, quality of product and services, pricing decision of company, efficiency of operation and production system of T-mobile. For effective strategic management company should focuses on the effective strategic planning, different strategies which are based on different forces of organization (Kim, 2013).

Mintzberg’s five Ps for strategy shows that company needs to focus on five Ps of company, such as Plan, Poly, Pattern, Position and Perspectives. On the basis of all strategies are helpful for attaining the competitive advantages in product differentiation and cost leadership etc. Along with this company should determine different aspects such as strategic planning, specific criteria and pattern for strategic management, positioning of different product and services of T-mobile organization with strategic perspectives (The Five Competitive Forces That Shape Strategy, 2014).

TASK: e)

Key issues and conclusions

Undertaking a group project on an organization and analyzing the key issues as well as challenges for it has been quite an interesting task for me (Strategy, 2012). After having worked with the group, I was able to have an understanding of various factors that affect the functioning of T mobile and challenges it faced for carrying on them smoothly. By taking proper participation and involving in all the activities of the group I became aware of the various issues like that of communication revaluation of company that it is facing (The Five Competitive Forces That Shape Strategy, 2014). This has occurred for the organization because of the recent changes in the technology that led to advancements in internet also. This has brought challenges for it like that of product differentiation and development. In addition to this, through the group activity I was also able to identify various other challenges in form of political and legal as well as technological that the company has to face while formulating its strategies (Daft, 2008). Apart from this, it was also known that T mobile also faced challenge from its competitors which are also big brand names like AT&T. T mobile has the issue of considering the strategic moves of its rivals also before framing its own.
The group activity was also an immense source of learning for me. With the completion of the group activity we were able to identify the basis on which we can judge the success or failure of our work done (Galliers and Leidner, 2013). By having understand the application of various strategic models applied for T Mobile and also knowing about the main challenges it is facing it can be considered as a success factor for the entire group. The entire group worked as a team with cooperation with one another and thus this help in proper completion of all the assigned tasks.

TASK: f)

Individual reflection

A group activity is never completed without the cooperation and support of all the members of the team in an equal manner. Thus individual contribution plays a significant role in accomplishing the task for the entire group. Prior to assigning of tasks to each individual, all important activities to be done for the group project were noted so that there remains no ground of confusion. My individual work for the team was to collect all relevant information related to various factors that affect T Mobile as well as various challenges for it. This was collected by me from the best available sources and all data gathered was also then compiled by me. All of the relevant information related to the topic of strategic management for T Mobile was need to be collected by me. Until and unless relevant data is not present for the project until then objectives would not be accomplished. Other member has the responsibility of analysing and evaluating the data collected so that no kind of irrelevant information is added into the project. Contribution of each of the member of the group was important as without any one the activity would not have been fulfilled.

Conclusion

Strategic management review of T-mobile concludes that in past company has adopted different strategies such as merger of T-mobiles and orange, new monthly 4G line up, open network to customers and Reinvigorated Challenger Strategy. All these strategies develop a way for effective strategic thinking for T-mobiles. Along with this investigation also describes different political, economical, social, technological, legal and environmental factors which influence the overall performance and competitive advantages of T-mobile. Research also describes different strategic models such as porter’s five force and Mintzberg five Ps; both models are reliable and compatible for effective strategic management of organization as well as for attaining competitive advantages also.

References

  • Abraham, C. S., 2012. Strategic Planning: A Practical Guide for Competitive Success. 2nd ed. Emerald Group Publishing.
  • Daft, L. R., 2008. The New Era of Management. Cengage Learning EMEA.
  • Doole, I. and Lowe, R., 2005. Strategic Marketing Decisions in Global Markets. Cengage Learning EMEA.
  • Doole, I. and Lowe, R., 2008. International Marketing Strategy: Analysis, Development and Implementation. 5 ed. Cengage Learning EMEA
  • Galbreath, J., 2009. Building corporate social responsibility into strategy. European Business Review.
  • Galliers, D. R. and Leidner, E. D., 2013. Strategic Information Management. Routledge Publication.
  • Germano, A. M. and Stretch-Stephenson, M. S., 2012. Strategic value planning for libraries. Bottom Line: Managing Library Finances.
  • Hensmans, M., Johnson, G. and Yip, G., 2013. Strategic Transformation: Changing While Winning. Palgrave Macmillan Publication.
  • Parvinen, P., Tikkanen, H. and Aspara, J., 2007. Corporate strategic marketing: a new task for top management. Business Strategy Series.
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