Identification of the countries where Telstra can enter
Telstra Corporation Limited which is also known as Telstra is considered to be the biggest telecommunications organization in Australia which mainly develops and operates telecommunications related networks in the country. The other major services that are provided by the organization are thereby based on internet access, mobile services, voice services and different services and products. The company has been able to develop a history in the telecommunications market of Australia. The organization was totally privatised after a change based program had taken place in the organization in an effective manner. The CEO of the company has not been able to maintain the revenues and profitability of Telstra Corporation in an effective manner (Telstra.com.au 2018).
The report will thereby be based on the ways by which Telstra Corporation can expand its operations in other countries. The countries which have been taken under consideration for the expansion based operations if Telstra are India in Asia and Germany in Europe.
India has been chosen as an option for the expansion of Telstra as the country has an emerging economy and will be able to provide huge chances of growth and revenues to Telstra Corporation. The company will be able to expand its operations and revenues in an effective manner with the help of its services and products. On the other hand, Germany is a developed country and can be an effective potential location for the expansion based operations of Telstra Corporation. The external environment based factors of the counties will thereby be analysed with the help of PESTLE framework and the perfect area for expansion can further be selected (Kaur and Dhillon 2017).
The macro environment of India can be analysed with the help of the PESTLE framework that is able to provide a clear insight based on different factors that are able to affect the ways by which organizations can operate in the country.
Political factors – India has been able to develop an effective powerful position in the world with the help of large size of its democracy. The political environment of the country is also considered to be quite stable in nature which can be helpful for the development of the policies by Telstra. The people of the country have a democratic will and the government is thereby created with the proper elections on a local as well as a national basis. The stable political climate has thereby been developed with the help of high levels of political tolerance in the country. One of the major concerns in the country is corruption which affects the stability of the environment (Sahoo, Sahoo and Sahu 2014).
Study based on the environment of the countries
Economic factors – The GDP of India is mainly worth 2.4 trillion Dollars which has been able to develop the 7th position in the world based on the economy. The different researches have been able to forecast that the GDP of the country is expected to grow by around 7% in the coming years. The current rates of corporate taxes in the country are thereby based on a rate of 30%. India has also acquired the topmost position in many different industries which operate in the country. The strong economy of the country can provide effective support to Telstra (Dhanesh 2015).
Social factors – India has a huge consumer based market with the help of a total population of 1.2 billion. The huge market will be a major opportunity for the expansion of Telstra Corporation. The cheap labour based opportunities can also be used by Telstra Corporation in an effective manner. The huge number of multinationals which have their operations in India have thereby been able to take effective advantage of the consumer market. The consumers who are present in the country have variety of choices as they belong to different areas (Saxena and Shanker 2018).
Technological factors – The technological environment which has been developed in India is also highly advanced in nature. India has thereby developed third position in the world based on technological developments. The technological development of the country is an important part of the opportunities which are provided to Telstra for its operations in India. The e-commerce based activities are also quite evident in the country (Chatterjee and Sahasranamam 2018).
Legal factors – The legal landscape of India is an important factor that can affect the operations of different organizations. The scope of the business and the needs are thereby based on the regulations that can be developed by Telstra Corporation. The foreign investors need to analyse the labour laws and employment based laws in order to expand their operations in an effective and profitable manner (Gupta et al. 2016).
Environmental factors – India has been able to make huge progress based on the different types of industries and organizations which have their operations in the country. The country has been facing high levels of challenges based on different environmental factors like, water pollution, air pollution, resource depletion and floods. Telstra will thereby need to consider the environmental factors in order to improve its operations and procedures in the telecommunications industry (Ganguly and Das 2017).
Macro-environmental analysis of India
The geo political position of India is mainly based on the way by which the country is positioned in comparison to its neighbouring countries. India is thereby able to maintain its position in the geopolitical area in spite of the major obstacles which have been faced with respect to the economic and the political issues as well. The global influence of India has been increased with the proper improvement of its position in the geopolitical situation. The country also aims at increasing the geopolitical reach in order to attract more international organizations. The position which has thereby been developed by the country will act as a major advantage for Telstra Corporation (Gupta et al. 2016).
The foreign trade based policies are implemented in India mainly by the Ministry of Commerce and Industry. The other major ministries which are related to the development of these laws are, Finance, Textiles and Agriculture based ministries. The execution of foreign trade related policies is the responsibility of The Directorate General of Foreign Trade (DGFT) which further operates under Department of Commerce. The free trade based environment that has been made in the country will act as a major opportunity for the proper expansion of Telstra in India (Wheelen et al. 2017).
Risks – The changes which are continuously taking place in the economic situation of India and stability of the political environment can act as major risks for the profitability of Telstra Corporation. The environmental situation also can be considered as a risk to the ways by which Telstra is able to operate in the country.
Opportunities – Telstra has been provided with huge number of opportunities in the form of technological advancements and free trade based environment. The company will be able to increase its revenues based on the huge number of customers who are present in the market (Saxena and Shanker 2018).
The PESTLE analysis based tool can be used by Telstra in order to analyse the external environment based factors that are able to affect its operations in Germany in a positive or negative manner. The country has been considered to be the fourth biggest economy in the world and has been able to develop effective standards of living for the people.
Political factors – The political system which has been developed in Germany is mainly based on the system which is known as the Grundgesetz that was established in the year 1949. The three major wings which are an important part of the government based system of Germany mainly include, the executive wing, legislature wing and the judiciary wing. The value system which is followed in the country is totally dictated by the government of Germany. The structured government system which has been developed in Germany is effective for the expansion of Telstra Corporation (Achterberg et al. 2018).
Geo-political analysis of India
Economic factors – The levels of raw materials are quite low in the Germany which can affect operations of different international organizations. Germany has been able to lead the market based on the production of electricity and natural gas. More than 70% of the total GDP of Germany is based on the contribution which is provided by the service sector. The most important products which are thereby manufactured in the country are based on engineering. The stable economic situation of the country is a major advantage for the future operations of Telstra in Germany (Schaltegger, Lüdeke-Freund and Hansen 2016).
Social factors – Germany has been considered to be the largest EU country based on the population and it can thereby be described as a multicultural and modern country. The society can thereby play an important role in the ways by which the company can gain its effective position in the country. The young people are able to develop a major part in the society of Germany. The social changes which have recently taken place in the country are important for the development of the revenues of Telstra (Ketata, Sofka and Grimpe 2015).
Technological factors – The national technology and science based activities have been backed by the German government in an effective way. The private research and national laboratories are also present in the country for the purpose of conducting these activities. The technological developments are thereby supported by the country which is a major advantage for the proper operations of Telstra Corporation in the country. The technologically advanced and peaceful environment of Germany is a perfect opportunity for Telstra Corporation to expand its operations (Jenkins and Williamson 2015).
Legal factors – The division of the legal administration process is done in a manner which is highly influenced by the laws that have been developed by the European Union. The patents and trademarks which are possessed by the organizations or brands in Germany are able to enjoy efficient levels of protection. Telstra can thereby expand its operations in Germany in a safe and protected manner. The different laws and standards which have been developed in the country are important for the proper expansion of Telstra (Bottenberg, Tuschke and Flickinger 2017).
Environmental factors – The environment of Germany has been affected by the industrialization based activities in the country. The major sources of energy which are an important part of the environmental factors of the country include, petroleum, natural gas and nuclear energy. The other major sources of energy also include, solar, hydroelectric power and wind power. Telstra thereby needs to develop the products in such a manner which can reduce its effects on the environment (Hamilton and Webster 2015).
Analysing the business and trade related policies of India
The geo political situation of Germany has been affected by the changes which have taken place in the laws of European Union after Brexit. Germany has made many different trade based agreements with other countries in order to improve its position and relationship as well. The entry of Telstra Corporation in the telecommunications industry of Germany is thereby based on the major geo political position which is held by the company in the world (Boasson and Wettestad 2016).
Germany has developed an important part in the operations related to imports and exports which are performed in the European Union. The Common External Tariff or CET is applicable in an effective manner in the countries which are a part of the European countries. Germany is also affected by the application of this law. The laws are able promote free trade which has further provided opportunities of growth to Telstra (Hamilton and Webster 2015).
Risks – The risks that can be faced by the company in its expansion in Germany are mainly related to lack of effective raw materials.
Opportunities – The company is also provided with major opportunities which are related to the advanced technologies and the stable economy of Germany (Wheelen et al. 2017).
Conclusion
The analysis in the report can be concluded with the statement that the expansion of Telstra Corporation is highly favourable in Germany. The technologically advanced environment of the country can be considered to be an advantage for the operations of Telstra Corporation. The revenues and profitability of the company will also be increased in an efficient manner with the help of expansion in Germany.
References
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