Management and Contextual Factors Free Samples -Myassignment

Question: Examine Critical Issues related to Business and Management Context. Answer: The business organizations refer to the entities or group of individuals which collaborate to achieve certain commercial goals. The business organizations operate in a specific external environment. The external environment of the organization impacts its operations and business profitability. The management of the business organization also plays a crucial role in business development, collaboration with business partners and government (Alkhafaji Nelson, 2013). The business corporations have the same rights as other individuals. They can own property, hire employees, sue other or be sued. The business corporations have a specific business structure which depends upon the legal and regulatory system of the geographical location and the economic system of the country (Freeman, 2010). In the present context, the organization of Optus has been selected to gain the understanding of impact of contextual factors on the business decision making. Optus Australia is the second largest telec ommunication company and an independent subsidiary of SingTel, a Singapore telecommunication company. The company provides a range of services under in the telecommunication category such as providing telecommunication backbone, customer network and mobile telephony. The present essay will examine the internal and the external contextual factors which can impact on the managerial decisions of the organization. Optus is the leading telecommunication business organization in Australia. It is an independent subsidiary of the Singapore organization, SingTel. Although the company is an independent subsidiary of the company, its vision and mission are inspired by its parent company. The subsidiary and the parent company remain separate legal entities for liability, tax and the regulatory reasons; however, the parent company has significant control over the subsidiary. The amount of control that the parent company chooses to exercise depends upon the tax liability and the regulatory compliance requirements. Optus Telecommunication is a wholly owned subsidiary of SingTel, which means that all the common stock of the company is owned by the parent company. It remains an independent legal body; however, the day-to-day operations of the company are directed by the parent company. Therefore, the current organization structure of the company impacts on the success and the regular operations of the orga nization. Optus Telecommunication has established well-defined corporate governance process which has increased the efficiency of the organization (Optus, 2017). Along with the internal factors, there are a number of external factors which can impact on the operations of the organization. The external factors refer to the macro-environment factors which influence the operations of the organization; however, the organization cannot resist these factors (Kalay Lynn, 2016). The macro-environment factors can be categorized as the political factors, economic factors, social factors and the technological factors. These factors impacts the operations of the organization and the companies have to create strategies which make resist the negative impact of these factors (Freeman, 2010). In the telecommunication industry, the intervention of the government is significantly high. The government makes several laws regarding the bandwidth allocation, use, user privacy and the licensing requirements. There are a number of regulatory authorities in Australia such as Department of Broadband and Australian Competition and Consumer Commission. The companies ne ed to abide by the regulations and the privacy laws formulated by these agencies (Adekola Sergi, 2012). The economic factors are crucial in the business profitability of a company. All the business organizations benefits from robust and growing economy as it increase the profitability of the organization (Hill, Jones Schilling, 2014). The economy of Australia is developed and the customers are keen to spend money for the best services. In the telecommunication industry, the customers are attracted towards the 4G services, efficient and the fast telecommunication services. The taxation structure and the expenses of the business organization right on the pricing plan of the company. If the building of the towers and the resources is expensive in some geographical locations, it will drive the prices of the telecommunication companies in the organization. The social factors refer to the lifestyle, culture and other factors such as family, religion and wealth which can impact on the consumer behavior of the customers (Alkhafaji Nelson, 2013). The telecommunication companies have limited h orizontal growth. The establishment of the telecommunication infrastructure is expensive in the rural areas and the companies have limited options of horizontal growth. The customers are also attracted towards the fast services, discount offers and the network of the telecommunication organization. Presently, the customers are getting attracted towards the 4G services which are the latest technological development of the organization. The GDP of the organization is directly correlated with the consumer use of the internet and the calling services. The administration of the organization is responsible for taking the strategic decisions which can combat the impact of these contextual factors. Along with it, the business organizations should also make strategies to address the uncertainty in the near future. It refers to the likelihood and the impact of an event which can influence the achievement of the organizations objectives. The severity of the risks can be measured upon two factors, its likelihood or probability and the extent of its impact of consequences (Sadler, 2003). The corporate risk can arise due to the negligence of the poor market assessment, poor selection of suppliers, poor monitoring of competitor activities and poor responses to the economic downturns. The risk can be categorized as macro risk or micro risks. The macro risk focuses on the risk which can impact on all the companies in a particular industry. The micro risk refers to the risk associated with a particular industry. Other than that, there are also other kinds of risks such as legal risk, economic risk and societal risks (Thompson Martin, 2010). Optus is a telecommunication organization which deals in a highly regulated environment. The companies need to either transfer to mitigate the risks. The financial risks can occur when the organization is unable to extract values from the network assets and has poorly defined growth objectives. The political risk or the compliance risk can occur when the companies disregard the existing compliance and the regulatory laws. In the telecommunication sector, there are a number of laws related to privacy, security and market structure. The strategic risk can occur when the organization fails to develop strategies to achieve growth. It denotes that the organization is incapable of adopting faster innovation methods and understanding the needs of the customers. In this regard, the management of the organization has developed various strategies to mitigate the operational risks (EY, 2014). Th e company conducts regular audits to check its compliance to different regulatory laws. Moreover, the company also has a separate department for the business intelligence and market research. The company remains aware of the latest trends, competitors strategies and consumer preference to remain competitive in the organization (Kronsbein, Meiser Leyer, 2014). It has also implemented an advanced consumer service system to resolve the customer queries more quickly. The customer service is the most significant factor in building the customer loyalty in the companies. Therefore, it is important for the organizations to adopt customer-friendly services. The company also has a division for the strategy development and implementation. The strategic team of the organization is responsible of the strategy development and implementation (Thompson Martin, 2010). It evaluates the current competitive environment of the organization and identifies the emerging business opportunities. This department engages in extensive research to identify the upcoming opportunities for the organization (Bingemann, 2013). The management of the organization is uses the information collected by the department and uses it to provide a strategic growth and direction to the organization. Other than that, the research and development team of the organization is also focused on the innovation and invention so that the companies can offer innovative products to the customers (Optus Media, 2016). The organization practices and the operations also impact on the productivity of the organization (Hill Jones, 2011). A business organization can create a high performance work practice system to ensure that the employees are positively engaged with the organization and the system will be effective. In order to create a positive work culture, the organization uses following strategies, namely, power, information, knowledge and rewards. The employee should be given autonomy and knowledge so that they can function independently. The business organization should also create a reward system wherein the companies offer rewards according to the performance of the individual employees. Optus Telecommunication has adopted a number of strategies which can increase its competency in the market (Optus, 2017). It can be concluded that the contextual factors have a significant impact on the operations and the strategy development of the organization. The companies need to develop strategies so that they can combat the impact of these contextual factors. The organization structure and the corporate governance influences on the operations and the strategy development of the organization. The companies also need to consider the external factors such as the government policies, economic downturn and the customer preference in the strategic management of the organization. The organization can develop culture of high performance by engaging employees by providing them with power, autonomy and reward system References Optus. (2017). Governance. Retrieved 9 April 2017 from https://www.optus.com.au/about/sustainability/responsibility (2014). Top 10 risks in telecommunications 2014. Retrieved 9 April 2017 from https://www.ey.com/gl/en/industries/telecommunications/ey-top-10-risks-in-telecommunications-2014 Optus Media. (2016). Optus Accelerates Transformation Strategy. Freeman, R.E. (2010). Strategic Management: A Stakeholder Approach. Cambridge University Press. Adekola, A., Sergi, B.S. (2012). Global Business Management: A Cross-Cultural Perspective Innovative Business Textbooks. Ashgate Publishing, Ltd. Nieuwenhuizen, C. (2007). Business Management for Entrepreneurs. Juta and Company Ltd. Bingemann, M. (2013). Strategy brightens up Optus image. Weekend Australian. 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