Strategic Management of France Telecoms - Essay Example

Strategic Management of France Telecoms France Telecoms implements strategic change management policies to keep abreast of the continuing changes in the telecoms industry. The research focuses on the company’s change from a nation-based to a global-based telecoms industry in order to have an edge or be at par with the revenue-generating and profit-enhancing activities of the competitors. The research includes a study on the company’s hurdle of the changes by implementing the proper changes to profitably hurdle any internal and external factors affecting the telecoms industry. France telecoms should set into motion required changes to maintain a strong foothold in the telecoms market segment. Identification of the scale of change in the case study. The case study shows there is a large scale change in the telecommunications industry. The telecommunications industry continues to grow into a more complex market segment in the past 20 years. Some smaller telecommunications companies have joined larger competitors in the same telecommunications industry to survive (emcc, 2005). The large scale change in the telecommunications industry is grounded on the transformation of the prior telephone services- based telecoms industry to producing phones that offer many exclusive features. The features include internet, ebook reading, camera, calculator, internet, word software, games, radio, broadcasting, relay, satellite, and video recording advantages (Abele, 2008). Triggers leading to change. Europe’s telecoms sector’s metamorphosis from a nation-based industry to a free market system under a bigger global environment triggered the change in France Telecoms. The European Union’s telecommunications industry is guided by the European Commission’s policies on telecommunications. In 1990, the European Commission issued a services directive 90/388/ECC stating that the telecommunications industry is now open to competition. However, there European Union’s regulatory policies have aided in establishing large –scale restructuring of the telecommunications industry over the past 20 long years. The company’s strive to increase its current revenue output and profit performance is one of the triggers that forced telecommunications companies to implement the right strategic changes to the company’s current revenue-generating processes and profit-enhancing activities. Drivers and barriers exist. There are internal factors (drivers and barriers) that exists. The dot.com bubble burst is one of the many external drivers that triggered the change in the telecommunications industry. Likewise, the liberalization of the telecommunications market segment is an external factor that triggered the change in the telecommunications industry. Each telecommunications company had to implement drastic changes in its current marketing, operations, and management processes in order to keep abreast of or even surpass the revenue performance , profit performance, and production performance of each telecommunications industry player. The establishment of an independent telecommunications industry watchdog is one of the key drivers that triggered the compulsory change management policies of the company. France Telecoms generated a € 46,121 million in 2003 (emcc 2005). Another internal factor is the company’s strive to increase its customer service activities. The company has focused on prioritizing the satisfaction of the telecoms industry customers. This is a compulsory change management strategy for it would increase the company’s current customer base. The company focuses on the fixed, mobile, and internet works. One of the internal factors that triggered a change in the company’s current revenue generating activities is the company’s strive to increase its revenues in a more complex and faster-paced telecommunications industry. Another internal factor that triggered a change in the company’s current revenue generating and profit enhancing activities is the reduction of its current operating expenses. This is accomplished by streamlining the company’s current telecommunications production s process. The streamlining is a good step towards eliminating avoidable costs of producing the company’s phone products and services. Using appropriate theories, analysis of France Telecom's strategic choices. The company’s strategic management change is hone to fit the needs of the clients. The company produces phone units that will fill the needs, wants, and caprices of the company’s current and prospective phone clients. The company increases it marketing strategy from catering to the needs of the local community to servicing the needs, wants, and caprices of the global market segment players (Weihrich, 2009). In addition, the company institutes structural changes to increase the company’s capacity to produce more and better quality phone units (Anon, 2005). The company also implements a process-based change in the company’s production and marketing services. For example, the company has increased its production output to cater to the needs, wants, and preferences of France telecoms’ global client base (Weele, 2005). Unfortunately, some employees could not cope with the changes in the production, marketing, and other change activities either due to age, capacity, ability, or other reasons. The company has implemented a people-oriented management change prerogative. The company hires more workers to produce the increasing demand for the company’s popular phone products and services. The employees are trained to master the new products. The company is forced to retrain the employees to adhere to the better, more complex, and bigger production processes (Rix, 2005). Based on the above discussion, France Telecoms must implement strategic change management to keep abreast of the continuing changes in the telecoms industry. The company must change from a nation-based to a global-based telecoms industry in order to have an edge or be at par with the revenue-generating and profit-enhancing activities of the competitors. The company hurdles the change by implementing the proper changes to profitably hurdle any internal and external factors affecting the telecoms industry. Indeed, France telecoms should implement necessary changes to ensure a continuing strong foothold in the telecoms market segment. REFERENCES Abele, E. (2008). Global Production: A handbook for Strategy and Implementation. London: Springer Press. Anon, (2005). European Foundation for the Improvement of Living and Working Conditions, retrieved May 20, 2011 from, EMCC, Trends and Drivers of Change in the EU Teelcoms Sector: Mapping Report, retrieved May 21, 2011, from Rix, P. (2007). Marketing: A Practical Approach. London: McGraw Hill Press. Weele, A. (2005). Purchasing & Supply Chain Management: Analysis, Strategy, Planning and Practice. London: Cengage Learning Press. Weihrich, H. (2009). Management. London: McGraw Hill. Read More