Telstra Corporation: Reorganizing Strategic Business Units
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Case Details:
Case Code : BSTR123
Case Length : 20 Pages
Period : 1995-2004
Organization : Telstra Corporation
Pub Date : 2004
Teaching Note :Not Available
Countries : Australia
Industry : Telecommunications
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Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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EXCERPTS Contd...
The Reasons
Since 1997, Telstra had been making modifications in the structure of its SBUs in almost every alternate year. Analysts and industry experts felt that all these reorganization initiatives were Telstra's response to the rapidly changing business environment since the 1997 deregulation of the Australian telecom industry.
Between 1997 and 2003, the competition in the Australian telecom sector
intensified significantly.
Several small time ISPs had grown into cross-country carriers while companies
offering Internet & mobile services had emerged into full-service carriers.
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Starting from the late 1990s, Telstra increased its focus on emerging business sectors such as mobile communications and content that yielded improved results..
To strengthen its competitive position in the mobile communications business, Telstra made massive investments to develop the GSM and CDMA networks that covered 95% of the Australian market served by 4000 retail outlets.
The number of Telstra's mobile customers increased consistently as the company launched value added service offerings such as short message service (SMS)...
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Exhibitss
Exhibit I: Telstra's Organization Structure (1995)
Exhibit II: Telstra's SBUs and Functional Disciplines (1995)
Exhibit III: Telecom Industry in Australia
Exhibit IV: Telstra's Strategic Business Units (1998)
Exhibit V: Telstra's Strategic Business Units (1999)
Exhibit VI: Telstra's Strategic Business Units (July 2000)
Exhibit VII: Telstra's Strategic Business Units (July 2001)
Exhibit VIII: Telstra's Stock Price Chart (1999-2004)
Exhibit IX: Telstra's Strategic Business Units (January 2003)
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