The benefit of this ownership which is being a public limited company is that is allows BT to have more then 2 owners which means more capital invested therefore making it easier for the firm to expand and become a well-known established service provider. Also it gives the company more chance of achieving economies of scale which majority of company find it easier to run cheaply. The other advantage of beings a plc it allows BT to be successful when the shares increase which overall the value of the company will boost up. Below is a chart showing BT dividends payment which are profits are allocated to shareholders which they expect as well as the value of the shares to increase but if it doesn’t happen of a risk of shareholders selling their shares especially at 2002:
As you can see BT has performing good as the shares increase 2000 where are goods days for BT whereas 2001 they decrease of the value of the shares & further increase in 2002 which indicates that year people are reluctant to buy shares. However BT survive by the increase of value of the shares
The drawback is if BT as a public company comes across problems it becomes news which they as a business have experienced in the past. Between the shareholders and BT’s board of directors disagree there would be problems inflicted. As well definite accounts must be organized so no errors can be hidden during the years. Mainly BT as a plc main concerned of the majority of their control being lose even if BT retains substantial shares.
So public limited have advantages and disadvantages for BT as a public limited company that by selling share it does benefit the business but as the same time BT itself can lose control which they try their best to try to prevent this from happening.
Task 3: Functional Areas
BT Group plc is the listed below holding company for included group of businesses that provide voice and data services in the UK and elsewhere in Europe.
BT Retail
BT Retail is one of the leading communications service providers, by market share, to the residential and business markets. It trades under one of the well known brands-BT. It supplies a wide range of communication products and services, including, data, Internet and multimedia services, and offers a range of managed and packaged communications solutions. Its aim is to improve the customer experience, control costs and increase cash flow, defend primary revenues and build new organic revenue. The primary range covers established telephony products such as calls, analogue/digital lines and private circuits. Which they believe that increased pricing innovation and package penetration, attached with improved value-for-money awareness, will stimulate the force for centre market share. New revenue generation is focused on broadband, mobility, and information and communication technology (ICT). BT Retail has three main customer groups: consumer (residential customers), major business (corporate customers and the public sector) and business (usually companies of up to 500 employees). As at 31 March 2003, BT Retail had more than 28 million customer lines (exchange line connections), 9 million of which were business lines and lines for other service providers, and the remainder of which were for residential customers.
BT Wholesale
BT Wholesale provides widespread network services within the UK, network operators and service providers, including other BT businesses - BT Retail, BT Global Services and BT Openworld. BT Wholesale searches for ways to build complete communications packages working with its customers to help them succeed in their business. It offers connections to every corner of the UK and its scheme is to upgrade its network to next generation services, including ADSL, to extract efficiencies from the scale and opportunity of its operations, to expand its customer base and satisfy demand for bandwidth by applying new technology to boost capacity and lower costs. The BT Wholesale group provides a complete range of wholesale and service provider products including digital subscriber line (ADSL), Internet protocol (IP) access for service providers and operators.
BT Global Services
BT Global Services is BT's business services and solutions division, serving customers worldwide. As an information and communications technology service provider, BT Global Services provides integrated data and value-added services to meet the European needs of global multi-site corporate and the global needs of European corporate. BT's wide global network and strong considered partnerships enable BT Global Services to serve customers in all key business-related centres of Europe, North America and Asia. The BT Global Services group ranges from desktop and network equipment and software, transport and connectivity, BT Global Services has 50 % of people based outside the UK, serving large business customers worldwide
BT Openworld
BT Openworld, BT's mass-market Internet business, is one of the UK's leading Internet service providers. It delivers broadband and services to business and consumer customers in the UK through The company offers a wide range of Internet access packages and payment options. BT Openworld also provides broadband over satellite for business users. BT products
Include: BT Openworld Anytime, BT Openworld Surftime, and BT Openworld Connect Anytime - designed specifically for business & customers, and Pay-as-you-go services. BT Openworld also provides extra value-added services to business users, such as Wireless LAN, teleworker and Web Design solutions. It also is developing a range of applications and services available to its own customers. In 2002 BT Openworld launched various sites aimed at computer gamers, music fans, classical music lovers, and sports and betting enthusiasts. To provide a mix of free and subscription based services
These are the 4 main of line of business that make up BT and assist the firm to reduce errors & increase performance during the years to come however BT a firm wants to became more efficient but these aren’t all of the functional area which there are Finance, Production, Human Resources, Marketing, Administration, Research & development departments for every one of the line of business so they have different employees working but not with the other departments.
The finance departments have different directors in each main department which are responsible for managing the accounts and finance that keep in depth of the revenue and expense from this source of information they present the final financial records such as the balance sheet which BT majority stores all its data on computer files. Which BT finance and accounts departments which are financial accounting function that keep documentation of all economic events that have been taken place in the business and record all the transactions made by the business because to financial summaries for the directors of the 4 main departments and the management accounting function are those who BT workers who analysis the financial documents so they can give and their thoughts for the future of BT which they will do this by extracting information about the performance of BT in the previous years so that ways to for BT to become more efficient.
BT has different head of product management in 2 main departments that are BT Global Service & BT Openworld which they are responsible of BT for overseeing that the materials are transferred into completed products successfully not only they have to deal with the product but with the customers such as dealing with their queries mostly over the phone so that the service provided is carried out smoothly to offer consumers best value and good quality service and product. For the head of production they have to set average targets for their value products they have many duties of overseeing the products being suitable because if the consumers don’t find the quality of the product not good value or money because of the product not being at a suitable quality and having enough stock that is required to service. So this department supply the main departments the products needed to offer the product or service to the customers.
Human resources are maintained by different directors in 2 different main departments that are BT Wholesale & BT Openworld have many roles in this department. It’s important for setting up important policies for the people in BT and also the role of welfare for taking care of its employees and their requirements. The human resources management in BT are helping other functional managers to develop their ability so they can appoint and train workers. They also have the role for negotiating and discussing with the trade union of the interest of the employees. Its also anxious with the expense of salary and the control of health and safety law and finally BT is not only concerned about it self as a business but want to improve the economy by helping in the education service by having web sites and advisers & development they provide so that various killed workers can be expand their ability which help the business to meet its objectives by improving workers ability.
BT’s marketing function is to find ways to recognizing, predicting, pleasing the consumers requirement effectiveness which in the company sales and marketing are combined into one department for each main department which examines the needs and want of the consumer to achieve their objectives by carrying out market researches such as face-to-face interviews a way of
market research but also BT advertises on Television and radio ways of advertising their brand to make to consumers that the product exists and like they also do various promoting on their product & service that they provide to be more competitive over the other firms that compete with BT. This helps the company to increase sales so it will enable then to gain market share and as well as a solution to add value to the services and products.
BT as a plc is a large well established firm that has a central office which controls main features of the firms “red tape” (paperwork) which is important to the business because problems that have occurred. It can be sorted out by the administrators because they are most with dealing with enquires mostly over the phone such as customer service. This manages of office work through information technology and communication systems so this helps in a way to reduce customer’s dissatisfaction at the same time increasing customer’s approval. Which this department is important to the other main departments for offering expert advice to the head of departmental with the responsibility for organizing office facilities. BT administration department work in the flowering areas:
- Taking responsibility for and to guide of administrative staff to increase their work performance
- Advise other departments on various advices such as development etc…
- Arranging the make available of stationary
- Guarantying good standard quality of administration work done
- Present & sustain a communications system within the large company.
- Finally to produce reports to present to the board of directors about the effectiveness of BT
This department help BT to be more efficient and more control over the service provided to the consumers & as well as satisfying the board of directors which ICT give the business an advantage of effectiveness to accomplish their objectives by maintaining and control cash flow.
BT always find solutions to become global domination through research & development department so that not only it will benefit the company but the consumers by improving and providing better service or products and also advise to them and itself which BT hopes to remain successful but like some research cant be usually to pay itself and its also time consuming how ever BT allocates from its profit to their research budget to the it would contribute in the future hopefully. This shows that BT hopes to find solutions in ways to achieve its remaining objectives and prevent from BT making a loss or increasing dissatisfied customers
These departments interact to meet BT’s objectives more effectively in order for BT to do successfully in the long tem which overall BT is trying to achieve and in order for BT to do this is by having the functional directors pulling in the straight direction however its gone harder for BT because of the competition that has risen concerning them however as long as they have more control over their finance and increasing customers satisfaction the business will survive and also getting quality right at every time meeting customers need which requires time and money which is why that BT has 4 main line of business to concentrate on their aims.
Task 4: i. Management Style
BTs managers tend to discuss with other people sooner than making the decisions they use this by source of information and also more source of opinion. The managers of BT tend to have reasonable listening skills and the ability to generate the right kind of guide to consult with others.
Below is a diagram showing the style of management where BT is located where is shows the style of management relating to the interest of mangers and also the concerns for people with the concerning for their service.
BT Management style is that the managers of BT introduce inconvenience to the people of BT internally and externally to get idea in order to make decisions or improve their decisions. It’s less democratic and higher in authority which it similar their organisational structures chart. Because BT don’t wont to be democratic allowing BT’s employees to be in control like having them to run the company as owners.
ii. Organisational Structure
BT organizational structure is a outline of the job position ands ways of financing which is necessary because it shows clear & effective structure which can be improved that enables BT to meet their objective how it allows to see if they don’t meet there objectives it indicates that that they might have a poor structure which leads the failure of BT performance inefficient.
BT organisational structure chart shows us the relationships between various members of BT as well as showing the level of authority and responsibility of each person position within the business. BT managers directly supervise the employees having enough control over BT employees as well as keeping them happy in order for BT directors or managers to use time more effectively. The span of control helps BT to support its tall
Structure where the span of control is lesser spans of control more authority as shown in the organisational chart which indicates that BT operates with a tall structure. BT’s advantage is that the more numbers of levels of authority the increasing of opportunities for promotion and rank with high status. However the disadvantage is that for BT there are more levels that tend to not an accurate decision where conflicts might arise between the directors and the people of BT. Overall BT organisational structure increases the chance for the development of the future of BT and it employees.
iii. Culture
BT’s personality seems tends to work in relation to their different objectives by BT and its workers to perform and solve BTs problems. BT has a culture which is spoken in their attitude, values and philosophy. BT is developing and finding solution to create a better everyday life at home and businesses. BT encourages the people to participate in the life of BT that culture is important for BT which uses Role culture by BT members are given an outline job or function to accomplish which is typical establishment that is split up into a number of functions that are then planned in BT hierarchical way. By BT divided into various functions (e.g. accounts, management, service, etc…) then there would be hierarchical instructing of departments (e.g. Directors of the 4 main line of business, Director of Finance, Director of improvement etc…). This indicates that the Chairmen and the Directors are the main source of power and also is the main of influence.
BT’s structure, culture, and management style are way to affect the performance of BT and their function to help tem to meet their objectives. BT structure shows us the relationship, level of responsibility, lines of communication which helps them to meet their objectives finalising their decision before reporting it to the chairmen. It also help to meet BT’s goals by being more organised and more efficient over the line of authority and also helping them in the long run. BT management helps to meet BT objectives by improving decision making and also having accurate source of information from people.
BT’s culture influence effects the economic, social, and environment which has an affect on BTs objectives and BTs tall structure which helps BT to perform more effectively by finding new unchanged profit growth. It shows that BTs culture in how BT operates and the main concerns of BT. However the things that come in BTs way from delaying them in their development are such as competitive environment and they can avoid this by being innovative, to come up with new ideas to match if changes in BT’s environment which is one of their objectives.
On the other hand BT have decreased in the number of employees during the year that obstruct BT from achieving their goal because they require a wide range of skills such as good communication skills, good interpersonal skill, the ability to work effectively in BTs problem-solving situations etc… in order to develop training and have skilled workforces
There is a clear relationship between the tall structure, management style and the roll culture used because they are based on BTs attitude with others which depends on the where the persons position in BTs organisational structure. BT communication with one and other could be better if they likely to us team approach to increase their performance. BT is using good structure and could improve method of management by using more use of team work. BT has more layers of authority which more ideas are introduced but issue might arise. Overall it helps to meet their objectives however seem to have strings attached that it’s impacted on BT to improve their performance and overcome problems
Task 5: Information Communication Technology
BT is based on ICT for internal and external communication which mainly they are providers of national & international communication to a wide range of organization and residents especially focused in the UK which they need in order to expand worldwide. Majority BT uses internal & external communication to connect with their employees, customers, other business and also shareholders etc... In BT they use networking linking together 2 or more computers to allow them services and information to be shared. They also use local area network (LAN) to connect computers within the building not only that but a wide area network (WAN)to connect computers on another building which extend their technology to use modems which mostly many business use because they are primarily used by computers.
BTs use number of internal communication that are using emails for memos which are sent to those who are on the mailing list by being produced in word processing programmers which is a form of communication because it can produce clear information, diagrams such as the flow charts, bullet points, reports etc... Mainly it’s used for forwarding on information to various people with in the business and from this information that in created within BT part of its purpose of protecting accurate data or to inform future decision-making process from mainly reports and also other aspects. Not only that but it allows the business to do various things such as listen through the phone line. BT’s finance uses database to store data in order to provide information about aspect of BT such as accounts but it can also be used as external communication. Such as sending payment to creditors and sending information to BT’s customers.
BTs needs to communicate with internal & external people which they use various range of external communication to do specific jobs such as using media a way in promoting their product and services or company reports, notification of meetings between the board of directors with the chairman even about enquiring about orders, payments, advertisement but mainly to provide various groups necessary information. Which BT relies on communication which needs it continuously day to day not only for them but to provide it to their customers because communication allows us to know about BT as a company if they are carrying out in a true & fair way. BT uses various kind of external communication which is the following:
- Telephones to contact on and each other- Not only BT uses it but also provides it which is the main kind of service that they provide to the economy.
- Interviews with people outside BT to achieve different targets which is good to keep a good public relation in order to improve BT’s reputation.
- Most commonly used BT’ business letters for different causes such as confirming arrangements, send notices, receive invoices or credit notes which the BTs layout, style and appearance does effect the BT’s letters which is eye catching and easy readable. And also that ICT helps to translate or change it to another language.
- Faxes seem to be expensive by sending written or visual information electronically over the telephones.
- BT uses E-mail (electronic mail) increasingly which are sent over the internet or intranet to the receiver’s e-mail address (customers, shareholders etc...) which can only be done if the receiver has access to this e-mail facilities if not it be because people might not read e-mails regularly.
- BT Openworld use CD’s a lot because of its popularities and a way of providing data about the
- BTs activities or programmes to allow them to access to the internet or other programmes.
- Majority now days BT’s uses electronic data interchange to pay or receive electronically without the need of cheaques or paper work allowing to reduce time spent to send or receive cash
- BT has used of electronic media known as web sites which purpose of this external communication to achieve public relations between the people & BT it self.
The force of ICT has given BT advantage of performing more efficiently and how it created communication more effectively. Which is helpful to the business because it’s the like the future of today by BT usage of e-
mails might even replace many communication. BT uses mainly networked database that replaces traditional system such as manual accounting which ICT has replaced a wide range of operations for an example maintaining all transactions of BT plc. Not only that but the use of internet has spread their influence over the global market that the use of ICT has made faster communication between BT and the people involving a range of media, programmes, visual and other forms of communication internally and also externally communication which increases the potential of BT to increase efficiencies by effecting the decisions of managers based on their accurate information. ICT has revolutionized BT not only them but impacting them
but the roles at homes and the environment by reducing the use of paper in a way of reducing cost and also benefiting the economy by providing more jobs to maintain ICT in BT ands ways to keep workers more motivated by improving job satisfaction. However ICT in BT has disadvantages is that files can be corrupted or infected by virus’s which BT uses high security by various programmes and anti virus software and also storing information internally and externally incase of something goes wrong internally at least there would be back ups. BT’s use of ICT comes with responsibility by updating & upgrading the technology on a regular basis.
In a way I think that ICT is playing a big role in BT’s performance by saving them money and at the same time achieving economies of scale not only that ICT is effecting BT internally but effecting them externally by increasing job satisfaction, becoming environmental friendly and helping the economies by offering jobs and also benefiting the workers which will help them in the long run from this experience. It helps the BT internally by having more accurate information for the managers to make decisions for the future faster increasing their performance rate. This ICT has made an impact on BT in order to achieve their objectives.
Task 6: Quality Control
Today BT produces goods and services that are reasonable and meeting customer’s requirement. BT trademark adds value through quality of the products and services provided. BT uses Total quality management (TQM) for services which BT is concerned with forming a quality culture so that BTs employees will search for to satisfy customer by doing this by providing want they want that meets their requirement. However the requirements change which BT has to find new ways of meeting their obligation. BT uses quality method is total quality management is the mainly total form of function management which encouraging and helping their people to acquire the knowledge they need to succeed in this 'new world' which BT describe it as so that they can intend to please customers. BT also uses ISO 9000 that’s reliable quality which BT decides which suppliers of goods to use. The quality of products of BT is important to them because it establish a well known reputation over time. Not only quality it about BTs improvement but it includes training and development for staff so that they can approach to BTs quality standards. This improves BTs performance and adds value to their product and hoer service which helps them to achieve their objectives.
The use of the 6 Sigma by other business are numerical thinking to improve the business process by developing the capability of reducing problems by having quality driven by customers or issues effecting customers potential on the business process that looks at chain of methods which can cause waste or inefficiency. Six Sigma understands the essential inputs that resolve the quality output. Its equally suitable for marketing and product development additionally as manufacturing and customer service.
The Six Sigma can effect on BTs functions by managing there process more efficiency than competitors, the ability to survive and grow in their long term competitive market as a result not only it depends in how BT introducing new and innovative product to the market as well as managing and developing to be provide to their customers. The other advantage is that new ways of thinking about how to meet customers desires by training. Adding more value to their service and product such as treating global markets equally and expanding world wide preventing to be over taken by the competitors however the disadvantage of using Six Sigma method is that by having BT motivated employees undertaking like owners which tend to have a poor organisational structure, BT partnering with customers to have their prospect with the market and its best service and product and changing BT’s management style democratic involving power to those individual and teams which are given responsibility to make decisions. In a way it helps to achieve BTs objective by supporting process improvement and producing BTs opportunity for future organic profitable growth.