PESTLE Analysis for Singtel

Discuss about the Management for Singapore Telecommunication Limited Company.
 

The primary objective behind this task is to outline and analyze the operations and functions of Singtel telecommunication Company which is operating its business in various countries successfully. Pestle analysis and porter five forces analysis for the company have been explained in the task. Along with this, here is brief information about the ample of issues that are being faced by the company. At the end, some suggestions have been given to reduce and eliminate these issues and challenges. More detail of the task has been detailed below.

Singapore telecommunication limited is a Singaporean telecommunication company that is incorporated in 1879. It has been analyzed that Singtel is one of the biggest and leading mobile network operators in the Singapore. In today’s era, the firm is increasing and expanding its business activities and operations across the world. The organization provides fixed line and ,mobile telephony, broadband, fixed line internet services, and network services to the customers in the global market. It is noted that Singtel is one of the biggest listed Singapore companies on the Singapore exchange measured by market capitalization. The firm has a vast network of offices throughout Europe, USA and Asia pacific and employs around 23,000 employees globally. The main vision of the company is to be a Asia pacific’s best telecommunications technology firm in the international market. The main mission of Singtel is to provide unique and effective telecommunication services to the customers around the world. The core values include customer focus, teamwork, integrity and personal excellence. 

Singtel has become one of the booming and effective companies in the telecommunication industry. Therefore, macro environment could affect the success and growth of the firm adversely. Thus, pestle analysis is done by the company to analyze and evaluate the risks and challenges of the market. This analysis also helps the company to identify and analyze the threats and opportunities of the market (Leng, 2014). The pestle analysis for SingTel Company has been detailed below.

Political factor: The political factors could affect the operations and success of the telecommunication company. The Singapore law and regulations restrict tariffs that set by the company. The rules, regulations and law that are passed by the government could affect the activities of the SingTel Company. It has been noted that the company need to be observed these rules and regulations to overcome the competitors in the international market (Negi & Ketema, 2013).

Porter’s Five Forces Analysis for Singtel

Economic factor: These factors are based on the interest rates and GDP that is exited within a specific economy. The company needs to focus on the economic challenges to beat the competitors in the international market. Tariffs could also have direct impact on the profitability of the firm. Besides this, interest rate, exchange rate, and unemployment also affect the revenue of the company adversely. The economic policies such as fluctuations and debts also affect the business operations directly. It is noted that cash flows are based on the dollar, Rupiah and Euro that can influence conversion rates and therefore influencing the company.

Social factors: The social factors include customs, rules, values, behavior, lifestyle and aspects of the people. It is analyzed that social factors are based on the way customers utilize the available services (Albini, 2013). It is becoming a major concern in front of the company. The extremely use of social media and skype changed the traditional communication sector with people also changing the communication trends. Apart from this, consumer behavior also affects the sales and revenue of the firm (Atsu, Agyei, Phanuel Darbi & Adjei-Mensah, 2014).

Technological factor: It has been found that advanced and innovative technologies also affect the sustainability of the company adversely. Technology has changed the world making companies to invest highly in new and innovative technologies to satisfy the customers. By using innovative technologies, the company has been able to increase its connectivity across the world. The firm uses unique and effective strategies to stand out against the competitors in the international market.

Legal factor: The legal factors are related to the rules and legislations that affect the outcomes of the company. It has been found that Singapore enjoys very few legal rules and regulations in Indonesia and therefore it makes investment easier than any other country. The structure for the telecommunication industry entails specific rules, regulations and government guidelines that have direct impact on the functions of the company (Babe, 2018).

Environmental factor: The environmental factors include weather, climate change and globalization. All these factors have direct impact on the outputs of the company. The country introduced laws and rules that permit every company to be a legal entity. It has been identified that business environment is constantly changing due to new inventions that each country is trying to develop and improve the quality of the services. Singtel Company sets the guidelines that reform the company by detailing provisions and principles in the line of the business (Nelson, 2015). 

Issues Faced by Singtel

By using porter five forces analysis, the company has been able to analyze and evaluate the plans, policies and actions of the competitors. This analysis plays a significant role to cope with rivalries in the international market (Heger & Rohrbeck, 2012). This model also helps many companies in determining and analyzing their current rivalries conditions through collaborative networks. The porter five forces analysis for SingTel has been detailed below.

Threats of substitute’s products: It has been found that threats of substitutes for SingTel company are high that can be a benefit for reducing and handling the communication and infrastructure cost within the organization. However, fixed line telecommunication is still using widely in almost corporations including SingTel. The substitute’s products also affect the outcomes of the firm (Sutherland, 2014).

Bargaining power of buyers: After the various researchers, it has been noted that buyers affect the company through their ability to force down price, and on the other hand, buyers bargain for higher quality. The buyers play a significant role to stand out against the competitors in the universal market. The bargaining power is high in the hands of the buyers just because of the increase of various communication and low switching cost. It is analyzed that customers have many options in the standards and undifferentiated between SingTel products and others (Magretta, 2011).

Bargaining power of suppliers: There is a balance of power between Singtel Telecommunication Company and suppliers in the Singapore. In this way, the bargaining power of suppliers is high in the global market. It is noted that suppliers are not able to strive directly with customers just because of the geographically network. It is difficult for them to maintain long term contract with suppliers in the telecommunication market.

Threats of new entrants: It is one of the significant and effective forces in porter five forces analysis. After the various studies, it has been identified that threat of new entrants is moderate in the Singtel company. In addition, new entrants are required more capital as a key factor and new entrant can identify the sufficiency of financial resources. There is less competition in the telecommunication industry in the Singapore (Porter, 2011).

Intensity of rivalry: There are ample of factors related to the intense and high competition. The plenty of competitors in telecommunication industry have increased and on the other hand industry’s growth has slowed down have caused the strong and unique industry competitor. It is noted that SingTel have to key an eye on the needs, requirements and wants of the customers. Along with this, they need to focus on the opportunities and threats of the market. The intensity of rivalry is high that could affect the financial position of the firm adversely in the international market (Cetindamar & Kilitcioglu, 2013).

Recommendations

It has been identified that porter five forces analysis indicates that the Singtel has to struggle and cope with the competition which gives customers available options within the market. Now it can be measured that pestle analysis, porter five forces analysis and SWOT analysis is used by the company to uplift the profit and beat the rivalries in the global market (Dälken, 2014). 

It has been analyzed that various issues being faced by the company while implementing the business activities and operations at international level. One of the significant issues that dealt by the company is traditional techniques and approaches (Fu, Zhu & Sarkis, 2012). It has been analyzed that the organization uses traditional techniques to provide services to the customers across the world. It is affecting the progress and sustainability of Singtel adversely. The company does not focus on the advanced technology and innovation. The company does not about think about the new technology because it increases absenteeism and high turnover rate at the workplace. Thus, it largely affects the performance and productivity of the company and employees as well. Resistance to change is other issue that faced by the top management in the organization (Thomas & Hardy, 2011).

It has been noted that from the various analysis that the company has declared a new management structure to stay in the competitive market. It also helps in providing growth opportunities to the company in a large extent. Furthermore, effective and unique decisions can be taken with the help of unique management as well as organizational structure. This organizational structure also helps in attaining desired goals and objectives in the international market (Thomas & Hardy, 2011). Some of the suggestions that help to improve and enhance the future are discussed below.

• After the various analysis, it has been noted that Singtel needs to focus on the competitive benefits to earn maximum outputs. Along with this, it should focus on the core values and competencies to perform in the international market.
• Corporate level strategies, business level strategies and innovation strategies shall be used by the company to destroy the competitors worldwide. It also helps in improving the goodwill and position of the company in near future.
• Singtel must focus on the leadership to attract maximum number of candidates within the organization so that desired goals and objectives can be achieved easily. The company should appoint leaders with excellent skills and knowledge to guide the employees in the workplace (Kotter, 2012).
• A favorable and unique culture shall be maintained by the top organization to reduce the absenteeism and high employee turnover rate. The company should follow health and safety rules and protocols to ensure the safety of the employees. It will grant ample of growth opportunities to the company in long run.
• It has been evaluated that Singtel should focus on the management of change to attain various advantages in the international market. Effective training and development sessions must be held by the HRM to handle and manage the managerial changes at the workplace. It will help to provide motivation to the employees and furthermore, it also increases and boosts level of satisfaction of the employees. New technology and resources must be used by in the workplace to accomplish the goals and targets.
• A performance management system shall be used by the top management and managers to analyze and review the performance and productivity of the employees at the workplace. The talented and skilled employees shall be rewarded and recognized within the organization. Along with this, the company should use online channels and social media to attract the maximum number of the target audience in the competitive market.  

Conclusion

It has been analyzed from the above mentioned analysis that Singtel is largest telecommunication company in the Singapore that provides telecommunication and internet services to the customers in the marketplace. The paper shows that how the company conducts Pestle analysis, and porter five forces analysis to stay in the international market. Along with this, here is the discussion about the issues that are being encountered by the company while implementing the business activities globally. It discusses that how Singtel is taking various advantages by conducting situational analysis worldwide. It has been analyzed that business environment is unique and keep changing every time. Telecommunication industry is the biggest industry who is facing various issues in today’s competitive world. Lastly, management recommendations have been given in the paper to make attractive and unique Singtel Company. It will also help to make a dynamic image in the minds of the customers.  

References 

Albini, G. L. A. (2013). An analysis of the European telecommunications strategic environment: how can strategic actions be defined to adapt to the new scenario? A Telefónica case study.

Atsu, F., Agyei, C., Phanuel Darbi, W., & Adjei-Mensah, S. (2014). The impact of telecommunication revenue on economic growth: evidence from Ghana. African Journal of Economic and Management Studies, 5(2), 195-208.

Babe, R. E. (2018). Communication and the Transformation of Economics: Essays in information, public policy, and political economy. Routledge.

Cetindamar, D., & Kilitcioglu, H. (2013). Measuring the competitiveness of a firm for an award system. Competitiveness Review: An International Business Journal, 23(1), 7-22.

Dälken, F. (2014). Are porter’s five competitive forces still applicable? a critical examination concerning the relevance for today’s business (Bachelor’s thesis, University of Twente).

Fu, X., Zhu, Q., & Sarkis, J. (2012). Evaluating green supplier development programs at a telecommunications systems provider. International Journal of Production Economics, 140(1), 357-367.

Fullan, M. (2014). Leading in a culture of change personal action guide and workbook. John Wiley & Sons.

Heger, T., & Rohrbeck, R. (2012). Strategic foresight for collaborative exploration of new business fields. Technological Forecasting and Social Change, 79(5), 819-831.

Kotter, J. P. (2012). Leading change. Harvard business press.

Leng, H. K. (2014). The Marketing of the F1 SingTel Singapore Grand Prix. In Strategies in sports marketing: technologies and emerging trends (pp. 29-39). IGI Global.

Magretta, J. (2011). Understanding Michael Porter: The essential guide to competition and strategy. Harvard business press.

Negi, R., & Ketema, E. (2013). Customer-perceived relationship quality and satisfaction: A case of Ethiopian Telecommunication Corporation. African Journal of Economic and Management Studies, 4(1), 109-121.

Nelson, R. R. (2015). The rate and direction of inventive activity: Economic and social factors. Princeton University Press.

Porter, M. E. (2011). Competitive advantage of nations: creating and sustaining superior performance (Vol. 2). Simon and Schuster.

Singtel.2018. Company profile [Online]. Available from https://www.singtel.com/about-us/company/company-profile, [Accessed as on 8^th June 2018].

Sutherland, E. (2014). Lobbying and litigation in telecommunications markets–reapplying Porter’s five forces. info, 16(5), 1-18.

Thomas, R., & Hardy, C. (2011). Reframing resistance to organizational change. Scandinavian Journal of Management, 27(3), 322-331.