Singapore Telecom

Strategic Audit Worksheet

Presented by
Iram Khalid
Adeel Akhtar
Outline
 Introduction
 Current situation
 Corporate Governance
 External Environment
 Internal Environment
 Analysis of strategic factors
CURRENT SITUATION

Performance:
 Quality of Singapore telecom infrastructure ranked Number one in (1997)
 Its telecom infrastructure particularly ranked 1 st in Asia-pacific telecommunications
in 1999
 Ranked 7th in data communications survey that rated telecom providers on value
quality, reliability, speed of repairs ,billing &leased line services.(1999)
 Revenues fell by 1.2% (1999)
 Operating profits fell by 1.5% in the beginning of ((1998) but at the end it increased
by 6%
 Unable to achieve its target of drawing 15 to 20 % of total sales from overseas in
2000
 overseas investment increase 20% profit in 2005
B. Strategic Posture
Mission
 We help businesses and people communicate anytime, anywhere and in various
ways.
 We make communications easier, faster, more economical and reliable
Objectives:
.
 To Focus on customer need
 To hold old customer and seek new customers
 To bring creativity and innovation
 working as one team with shared goals
Strategies:
 Achievement of short term & long term profitability.
 Pursuit of globally competitive services.
 High investment in established technology.
 Establishment of world class telecom infrastructure.
 Adoption of internationalization strategies in late 1998
Policies:
 Singapore telecom’s policy is to price its services among the lowest in the world and
to pass saving achieved through efficiency and productivity back to the customer
 Flexibility to adopt change
 Think about tomorrow
 Aggressive in market and to provide new feature and services
Corporate Governance
Board of Directors
 Total 10 Member in BOD
 Internal Members – 03, External Members - 07
 Female Members – 01, Male Members – 09
 BOD & Executive officers hold 14.96% shares (Board member must hold stock)
 All directors actively take part in management
Top Management
 Responsible for current situation
 ensure shareholder interests and protected and enhances corporate performance and
accountability.
External Environment
A. Societal Environment
 Successfully met the challenge of changing from a government department
to becoming the largest listed firm in Singapore
 Barriers that protected ST market appear to be in danger of collapse.
 Asian crisis is taking its toll on Singapore telecom s performance
 Rapid introduction of networking and telecommunications technologies
B. Task Environment:
Level of competitive intensity increasing
 Current competitors are joining with larger companies outside industry to gain
resources and power.
 New entrants threaten increasingly as larger companies with brand names,
technological knowledge and capabilities,
 Customer demand is forcing industry to offer full range of services and high levels
of customization.
 Technologies Tele media & Singapore Power are trying to capture a significant
part of profitable IDD market as well as large corporate business segment
 Cultural changing require to become a effective competitor.
Internal Environment
Corporate Structure
 Corporate structure was reorganized (focus on growth)
 There are three main departments of Singapore telecom
Specific customer business unit.
emphases on new growth areas
corporate business unit overseas investment

Corporate Culture
 Singapore telecom motto is services first always
 Owing to the historical baggage market has done its atmosphere indicate the sprit
of customer responsiveness
Corporate Resources
Marketing
 Operate in 19 countries
 Quality of Singapore telecom infrastructure ranked Number one
 Its telecom infrastructure particularly number one in Asia-pacific telecommunications
 Ranked 7th in data communications quality, reliability, speed of repairs ,billing
&leased line services.

Finance
 Financial position is very good
 high demand of debt & equity to finance expansion.
 overseas investment increase 20% profit by 2005.
Research & Development
 R &D is not so good
 Want so much improvements in R& D

Human Resource Management:

 Humana Resource policy are not so good most of employees leavening organization
and new ones are also have fear for losing their jobs
Analysis of Strategic Factors (SFAS)

Environmental Opportunities and Threats

Technological Opportunities

 Increase in use of telecommunication and broad cost technology

 Globalization

Technological Threats:

 Rapid Changes in technology like telecommunication and broad costing

 Constant R&D is required and its require a strong R & D department
 Technology is more complex
International Opportunity:
 Joint Venter with other multinational companies
 Internationally use of telecommunication is increase
 Operation cost is reduce due to technology
 Purse global and regional expansion through investments overseas

International Threats:
 Asian financial crisis
 Strong competitors

Organizational Analysis: Strengths and
Weaknesses

Finance
Strengths:
 Singapore telecom is blessed in that its final conduction is very solid
 It has treasury department to look after its investment and risk management

Weaknesses
 null
Marketing and sales
Objective
Customer is first always
Strengths
 Aggressively market their services
 Customer care department
 Providing verity of services in may options
 advantages of existing assets such as billing system and telecom network
Weaknesses:
 more tanning required for its marketing and sales staff
 Week in environment scan analyses
Human Resources:
 Very week human resource department
 Employees are not motivated due lake of reward system
 Not well trained and also not compatible with new technology
Recommended Strategy

Recommend that Singapore Telecom implement growth strategy

 maintain a strong emphasis on the customer and development of technologies.
 Singapore telecom take advantage of the business opportunities that come with the
convergence of telecommunication such as IT and media and broad band
multimedia services
 Seek new business opportunities as they emerge and synergize with our existing
services and operation such as E-commerce