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Running Head: ENVIRONMENT SCAN        1
ENVIRONMENT SCAN         2
BUSINESS ETHICS
ASSIGNMENT ONE – ENVIRONMENT SCAN PART A
(FOR TELSTRA CORPORATION LIMITED, AUSTRALIA)
Table of Contents
Introduction and Background    3
Environmental Scan of Telstra Corporation Limited, Australia    3
PESTEL Analysis    3
Analysis of the Influences    4
SWOT Analysis    5
Analysis of the Challenges    6
Porter’s 5 Forces    7
Strategies for Reducing Threats    7
Conclusion and Summary    8
References    10
Introduction and Background
The environment, in which a business operates has farfetched impact on the performance of the company and is a major determinant of the company’s status in the market. The external factors that collectively formulate the environment of a company generally include the government norms, economic policies and the behaviour of the customers. The effectiveness of the strategies used by companies for competitive advantages depend highly on their degree of alignment with their respective environment, therefore, it is found that companies often take into account the need of assessing the environmental aspects, which makes their business more aligned to the demand in the market and helps in reducing risk of failure.
Telstra Corporation Limited, commonly known as Telstra has been chosen for assessing the role of business environment on the status of the business. Telstra has become a leading business organisation in Australia and its success is deeply aligned with the way it associated with its business environment (Telstra, 2018).
Environmental Scan of Telstra Corporation Limited, Australia
PESTEL Analysis
    P
    POLITICAL
    · Stable Politics, in favour of local companies, offering tax benefits
    E
    ECONOMIC
    · Strong Economy ensures high buying power of customers and have consistent growth in GDP
    S
    SOCIO-CULTURAL
    · Standard of living is very high and the high numbers of diverse culture people adds up to active customer base who use telecommunication services
    T
    TECHNOLOGICAL
    · Latest technology is available in the market and there are reliable suppliers who import latest technology for faster changes in the market
    E
    ENVIRONMENTAL
    · The environment is suitable for extensive labour and is not affected by heavy snowfall, heat or rain
    L
    LEGAL
    · Legal bindings in Australia makes the local companies follow standards that are easy to meet and the standards also remains marginally higher for foreign companies. The tax policies and business expansion norms are also in favour of national companies.
Table 1: PESTEL Analysis of Australia
Analysis of the Influences
Australia has very little political diversity and the change in the political power is very stable and generates minimal conflicts, which makes the market stable and the economy strong. As supported by Beiko, Murray, Davies, Oake and Houle (2018), the political stability is directly influential on the economy of a country, which again is influential for the social and economic stability. The economic condition of Australia shows that the country has a strong economy, although the growth in GDP has been slow. The strong economic condition influences and gives the business organisations to focus on the aspect of quality without considering much about the manufacturing cost of the products or services. As stated by Ulubeyli and Kazanci (2018), strong economy of a country helps in tackling the market fluctuations easily and offers its customers higher buying power, which makes the profit margin higher as the companies can price their products and services higher.
Based on the strong economic condition, the socio-cultural nature is formed and in case of Australia, there is no exception to this rule. The stable politics influences the economy and the economy influences...