Telstra Corporation: Reorganizing Strategic Business Units
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Case Details:
Case Code : BSTR123
Case Length : 20 Pages
Period : 1995-2004
Organization : Telstra Corporation
Pub Date : 2004
Teaching Note :Not Available
Countries : Australia
Industry : Telecommunications
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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EXCERPTS
Telstra's Growth Strategy
In its efforts to become more customer-focused, Telstra made minor changes in its organizational
structure in the fiscal 1995-96. The changes were made on the basis of key customer groups (corporate and government),
geographical scope (international business) and product areas (mobile communications and national directories).
Similarly, the functional discipline, Employee Relations was split into
Personnel; Learning and Development; and Center for Leadership.
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As per the revised structure, the Corporate, International and Enterprises SBU was renamed Business and International unit. One of the
key changes in the structure included the creation of Telstra Multimedia Private Limited.
This unit was responsible for managing
broadband network, the FOXTEL pay television, providing Internet services and maintaining the existing portfolio of directory services,
yellow pages and multimedia products. The creation of this group was in sync with Telstra's broadband strategy. In the short term,
Telstra wanted to add new revenue streams (like Pay TV, Internet etc.) to its already developed basic telephony market...
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The Reorganization
Previously, Telstra was organized into five SBUs - Commercial and Consumer; Business and International; Retail Product and Marketing; Network Technology Group and Multimedia and Carrier Services Group.
Under the new structure, the Carrier Services Group, whose financial
performance had deteriorated since the fiscal 1997, was abolished.
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The company's wholesale operations were consolidated as one unit - Wholesale and International. This unit was formed by merging the previous Carrier Services Group into the Business and International Group.
In order to concentrate on the mobile communications market, a new SBU called Telstra On Air was created. Through this separate unit, Telstra aimed to focus more on its Code Division Multiple Access (CDMA) mobile network introduced in August 1999.
Telstra viewed CDMA as the technology which would drive the growth of its mobile business into the 21st century... |
Excerpts Contd... >>
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