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Telstra Corporation Limited Economic Analysis

Background of Telstra Corporation Limited

            The Telstra Corporation Limited is one of the largest companies of telecommunications in Australia that operates and builds networks of telecommunications and markets voice, pay television, internet access, mobile, and other services and products. Telstra is working for a long time in Australia; originate together with the Australia Post as Department of Postmaster-General. Now, Telstra is completely privatized and was undergo a transform program to become more focused on the customer under its preceding CEO, David Thodey. The Telstra Corporation Limited offers information and telecommunications services in Australia and globally. This company offers mobile and fixed network transportation, Internet services and broadband access, cable distribution services and wholesale services. It provides the fundamental access services, long distance and local telephone calls, content services and broadband access, Internet and data services, and services of cable distribution, and also the advertising, information, and search services, international connectivity, pay television, 3G network services, and roaming, and also management services. The Telstra Corporation Limited  was privatized in 3 different phase, unofficially known as in 1997, “T1” ($3.30), in 1999 “T2” ($7.40) and in 2006 “T3” ($3.60). In T1, in Telstra the administration sold one quarter shares for $14 billion and in public listed the Australian Stock Exchange company.

Critical Analysis of Telstra Corporation Limited Economic Analysis

 The Telstra Corporation Limited has to undergo some of the economical challenges. Capital marketing polarization is the most important issue for the Telstra. Thus, managers perform their duties to eradicate and stamp out the barriers which lead to the polarization. They devised new and effective strategies and policies in which solutions are given to address the issue in the path of betterment. However to increase the competitive condition of the organization in the developing markets specific universal strategies can be used this strategic phase will influence the capitalization of the organization in a positive way. In the perspective of such models there are two solutions available that are: partially compensate the issues or else simultaneously or moderately mitigate the issues in the financial strategy at the stage of expansion

It cannot be denied that in the developing market to overcome the above problems completely of construction of financial policy a proper comprehensive work is required. It can be seen that the economical ratio of opportunities for the organization to investments and also describes obtainable the financing debts in the natural progression of the organization. By the high school matrix of financial management it imitates the rate of the ratio of maintainable development of the organization and reflects the process of creation of value in the long-term.

There are two options in matrix which fluctuate from one to the next not only in nature but also in purposes and usages. One option is to conduct research on econometric, and the second is the normative description standards under the aegis of its paradigms. In further explanation, there are two options which are usually suggested or referred in order to make up matrix. First is to conduct econometric research and label of the paradigms which possess the normative values of matrix. Another mechanism that is usually adopted is to compare the distribution with the distribution of the companies which are in fact considered as competitors in the same field in market. It is possible to develop the structure of an optimal capital but only for the specific organizations. The suggestions for several universal capital structures are not based on reality. In the same way the use of financial strategy model is just for the sake there is an individual methodology for each of the organization and the aptitude and skills for the optimal capital structure model

The relationship between divergent parameters under the sway of matrix can be considered as indicators of standards. The adoption of matrix parameters with reference to divergent values in order to assess qualitative evaluation of that leads to a comprehensive and reliable findings. Competitive positions with relation to financial management are also given pivotal and utmost attention in the whole process of evaluation

Cost Indicators

There is a misconception that has clinched for the global marketing on different levels financial strategy does not matter in order to make a company stable or a plan successful. The misconception can be evaluated on the basis of the most authentic work of two economic scientists who are Nobel Prize economist Modigliani and Miller. These are the two internationally reputed economists who developed their narrative differently in their research work against the approach and myth of ‘’no matter of financial strategy in any company’s success’’ that has been hovering for many decades on world marketing sphere.

Economic liberal values are followed under the umbrella of the concept that harmonized the whole business world. There is long history in which different fields played their role in order to make the world globally integrated. Growth and diversified process of production of products, which are used by different companies, lighten up the concept in way that is more comprehensive.  It can be said that the factors like economic mechanism, cultural harmony, production methods, expansion of investment beyond boundaries international trade development, international political economy, international trade development and many other factors have an impact on the Telstra company economical strategy.

Reflection in the key issues of Telstra Corporation Limited

I have learn from the analysis of the company that the world is moving towards globalization and economic growth is crucial part to develop a nation and for advance progressing. Our economic depends on our financial assets and companies are moving rapidly towards more effective business strategies. Financial strategy is very important thing, must be cater initially for the growing companies, and must take proactive steps like hiring professional and skilled persons who have strong analytical skills and problem solving skills. Investors’ in the Telstra also plays an important role for any developing business because they invest their money and do business with local and international clients and pay lot of tax to the government so that they can work easily and government can provide them security of their assets.

When we talk about economic market, we see that they can grow the business of Telstra very fast and they improved in every sector. When any company progress towards their goals, there must be accountability sector who monitor all developing tasks and do audits on daily basis so that no one can think about the corruption and by following this approach the Telstra within few years can be successful in achieving goals just by making few changes in the economical framework of company.

Right now, organizations are come across a sharing economy, where persons are purchasers as well as, in the interim, venders of things, while the cash related assets and common assets are more capable. Moreover, it is vital not entirely to pass in new worldwide markets and grow the client base, yet to center in making an inducement for whatever number associates as could be expected under the conditions. I have learned from the analysis that macroeconomic controls are redesigning the world, to be specific: joining and the rise of the set of three controls, innovation developments, particularly the assortment. In this kind of cheap, upheld by the development of new advances, the trust and disrepute are the principle columns and drivers for progression. Thus, the actions on economical measurement of the Telstra should focus to organize the standards of sharing cheap in the plans of action and ought to focus on area networks.

Analysis of Options to address key strategic issue of Telstra Corporation Limited

The financial strategy plays an important role to achieve such targets for development of the Telstra. They should increase their businesses by getting more clients local / international, improving IT sector and many more. Corporate strategy should be part of following:

Strategy to make financial decisions, which focus to deliver tasks on time

-          Financial strategy should predict the future crises, which can be occurred in economic growth, and we need to cater them first in the developing phase.

-          To determine any new tools and techniques is the responsibility of financial strategy, which closely works with development team and provides them new ideas.

We have identified some major problems which faced to develop economical strategy, these are most important issues in any emerging markets during implementation of financial strategic. But we discuss some more issues like:

Staff was not skilled and its management also not suitable for this post and they did not accept any new change. They create hurdles to implement financial strategy, don’t have knowledge of strategic objectives, and lacking in their professional skills.

−        Economical strategies are implemented in phases and due to this, companies of emerging markets was not confident and those who created financial strategies, should provide them confidence and give them surety about their business and money.

−        Conflict arises in everywhere, so people who have authority to control all the things they damage of its strategic development and economic growth becomes unstable.

−        They focused on the short-term company goals; they should consider long-term goals so that they can flourish in their economic growth.

−                    Strategic alliance is another approach that can be used in order to internationalize the cost of capital. Foreign industrialists and investors usually make great strides through collective cooperation in regional or global capital market. They formulate their groups and develop their own strategy on common concerns and financial interests. There were a number of multi-dimensional factors which infused the collapse and decline of the strategy. Ineffectiveness was one of them that played a vital and devastating role in the decline. Equity issue was another cause that is still considered as the motivational factor in the fall.

Conclusion and Recommendations on Telstra Corporation Limited

It is concluded that for the Telstra to grow its business it is crucial to work strategically on increasing the level of economic development. Such strategies should be applied which help boost up the business and link one business with the other. For the development of meaningful and workable strategies it is important to go through the strategic analysis in the market.  In many companies the integrated assessment in the field of financial management is never used, the point is in order to ensure financial development; competitive financial models and strategies to-be-act-upon are integral issues. The implementation and harmonization of regulations of economic progress is not practiced. In order to achieve maximum results proper strategic management need to be made which assures the implementation of rules for the better future of companies. The assessment internal and external helps locate the issues and give ideas to solve those issues in a strategic manner. Similarly these studies help developing and testing of unique strategies and financial models. In the hierarchy of financial globalization, financial strategy and financial management are two important elements to boost the economy. A study of the relationship between financial instruments and financial strategy in context with the management to support analyze the strategic repercussion of structural reforms and thus improving the financial level up to the mark

·         After implementation of strategy to address financial issues, there is a need for the Telstra to start process of investment and get funds so that we can initiate as step towards our goals which we set for our nation. The researchers think that this kind of emerging economics and to grow a company is not impacting on any nation.

·         To achieve greater capitalization, the Telstra must provide a ground to investors so that they can invest money securely and generate more income for their business.

References of Telstra Corporation Limited

Crozier, R. (2018, October 16). Telstra pins its financial woes on government. Retrieved from https://www.itnews.com.au/news/telstra-pins-its-financial-woes-on-government-514005

Duke, J. (2019, February 14). Telstra warns NBN charges will lead to 'higher prices for customers'. Retrieved from https://www.smh.com.au/business/companies/telstra-expects-to-face-short-term-challenges-as-profit-falls-20190214-p50xn7.html?js-chunk-not-found-refresh=true

Jennifer, D. (2018, August 16). 'Enormous challenge': Telstra's biggest share price jump in a decade. Retrieved from https://www.smh.com.au/business/companies/enormous-challenge-and-change-telstra-posts-8-9-percent-fall-in-profit-20180816-p4zxqy.html

Knight, E. (2016, July 1). Telstra outages now a real problem for the company. Retrieved from https://www.smh.com.au/business/telstra-outages-now-a-real-problem-for-the-company-20160701-gpw5ra.html

News, T. (2018). The five things to know about Telstra’s 2018 full year financial results. Retrieved from https://exchange.telstra.com.au/the-five-things-to-know-about-telstras-2018-full-year-financial-results/

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