BUSINESS STRATEGY ASSIGNMENT
Members of Syndicate :
Tamadara Hilman (29112042)
Yulianita Rahayu (29112060)
Aditia Sovia Pramudita (29112061)
Ratu Sonia Gardenia (29112065)
SCHOOL OF BUSINESS AND MANAGEMENT
BANDUNG INSTITUTE OF TECHNOLOGY
I. Current Situation
A. Current performance
* The most profitable Singapore firm, with profit of S$1,88 billion for financial year 1998 and S$1,95 billion for 1999.
* Singapore’s Telecom infrastructure scored poorly in the “choice” and “regulation” subindex in the survey of Asia Pacific Telecommunications Index in 1999. They offering limited choice of service providers and having a regulator that was not responsive and transparent.
* Ranked 7th out of 26 international carriers in 1999 Data Communcations survey that rated telecom providrs on value, quality reliability, speed of repairs, billing, and general responsiveness for frame relay and leased-line services.
* Singapore Telecom’s growth rate is relatively unstable, the growth earnings were flat.
B. Strategic Posture
To be a total service provider with a range that covers the entire spectrum of the telecom business
To maintain its exceptional record of profitability and as much market share as possible.
* Focus on the achievement os short- and medium-term profitability
* Pursuit of globally competitive service and effeciency standards
* High investment in proven technologies
* Establishment of a worldclass telecom infrastructure
II. External Environment
A. Societal Environment
Political – Legal
* Trend in deregulation (T)
* Government support by providing sophisticated industrial policy (O)
* Possibilities of financial crisis (T)
* General movement toward more open and competitive markets (O) & (T)
* Economic growth (O)