Interim Assessment
SECTION A
This question is compulsory
QUESTION 1
Introduction
UK-based T plc is a well-established company providing telecommunications services bothnationally and internationally. Its business has been concerned with telephone calls, theprovision of telephone lines and equipment, and private telecommunication networks.Recently, T plc has supplemented these services by offering mobile phones, which is anexpanding market worldwide.The company maintains a diverse customer base, including residential users, multi-nationalcompanies, government agencies and public sector organisations. The company handlesapproximately 100 million calls each working day, and employs nearly 140,000 personnel.
Strategic development
The Chairman of T plc, Stuart Dickinson, stated in the latest Annual Report that there arethree main areas in which the company aims to develop in order to remain a world leader inthe telecommunications market. He believes that the three main growth areas reflect theevolving nature of the telecommunications market, and will provide scope for development.Dickinson is determined to move into the Chinese Market, although he is still not sure whethersuch an overseas commitment would be best served by a direct investment in that region. Hesuspects that, initially, an exporting strategy from the United Kingdom might be a safer andless risky proposition. Nevertheless, he believes that the company must be bold in itsactivities.The areas in which development is planned are:
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expansion of the telecommunications business in the national and Chinese markets,both by the company acting on its own and through partnership arrangements withother suppliers
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diversification into television and multi-media services, providing the hardware topermit telephone shopping from home and broadcasting services
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extension of the joint ventures and strategic alliances that have already beenestablished with companies in China.Dickinson explained that the company is intent on becoming a world leader incommunications. This will be achieved through maintaining its focus on long-termdevelopment by improving its services to customers, developing high quality up-to-dateproducts, and being innovative, flexible and market-driven. His aim is to deliver a world-classservice at competitive cost.KAPLAN PUBLISHING Page 3 of 7
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