Corporate Governance And Innovation Of Deutsche Telekom - Research Paper Example

Restructuring its internal organization, expanding its market share in the international markets on the strength of cooperative agreements, and reconstructing the communications system in Eastern Germany are the foremost challenges that Deutsche Telekom has to deal with nowadays. Deutsche Telekom Company is the largest telecommunications company in Europe, with an immense number of employees, and with annual sales of roughly DM 50 billion (Jussawalla 1993: 43). The company, in 1990, was seceded from the Postal Administration and started to operate autonomously, dealing with competition and vigorously catering to the needs and requests of its customers (p. 43).The company is currently in a highly competitive market.

For instance, satellite and data network and mobile communications services are now free competition arenas (Shi 2007). Deutsche Telekom, at the same time, is building a more global approach. In the field of geopolitics, the world that the global village has become familiar with is experiencing radical transformation (Shi 2007). Economic recession, despotism, the conflict between military factions, and the battle of ideologies are ever more substituted by the free market and democracy (Koenig, Bartosch, Braun, & Romes 2009).

As an outcome of the globalization of operations in the market, businesses are innovating. In the meantime, electronic networks are transforming market processes (Smith 1997). In order to deal with the drastic changes in the telecommunications industry, steered by emergent network potentials and demand for better technological services, Deutsche Telekom has to initiate capable, profit-generating products and services rapidly and regularly (Shi 2007).