The success of an organisation depends on how it adapt itself to the environment. An organisation's success is influenced by both internal as well as external environment. The organisation which can manipulate the environmental factors can plan its present as well as future strategies. Environmental analysis is of paramount importance for an organisation in its decision-making.Decision making processes requires a valid information about the environmental conditions of an organisation.For instance,commercial decision making takes place within the legal environment established by the government.A wise organisation,thus,takes the advantage of its environmental factors and attains success.
This assignment deals with the internal and external environmental factors of BHARTI AIRTEL,INDIA.Bharti Airtel was founded in the year 1995 as Bharti Tele-Ventures Ltd.(BTVL).Now it is India's largest cellular service provider with more than 110 million subscribers.With this,Bharti is now the world's third-largest,single-country mobile operator and sixth-largest integrate telecom operator. (India Today Magazine,Sep 2009).The company also offers fixed line services and broadband service.
Bharti Airtel is the 3rd largest in-country mobile operator by subscriber base in the world,just behind China Mobile and China Unicom.In India,the company has a 24.6%share of the wireless services market,followed by 17.7% for Reliance Communiications and 17.4% Vodafone Essar.(India Today Magazine,Sep2009).The Business Environment:
By business environment,it is meant the area in which an organisation operates.Taking business environment into account,it is required to study external as well as the internal environmental factors which regulate the working of an organisation.
Following type of forces influence an organisation's business environment:
PESTLE factors:These includes political,economical,social,technological,legal and environmental influences.These are external forces which the organisation cannot control directly.
Macroenvironmental factors:These includes the internal forces which an organisation can directly control such as finance,production and so on.
PESTLE analysis is evaluation of an organisation's political,economical,social,technological,legal and environmental factors.It is used to identify the external forces affecting an organisation.
Political factors influence organisations in many ways.Political factors can create advantages and opportunitiesfor organisations and on the other hand they can also place obligations and duties on organisations.Political factors include the following types of instrument:
- legislations like minimum wage or anti discrimination laws.
- market regulations
- voluntary codes and practices
- taxation norms
- trade tariffs and restrictions
- type of government:communist,democratic and so on.
Airtel has a strong set of policies to withstand the political system of the country.Airtel keep on reforming its policies as per the needs of time. The Company is committed to maintaining the highest standard of conduct and professionalism and towards this end has formulated a policy that will provide clarity about the method and process for stakeholders.(www.airtel.in)
All the busineses are affected by national and global economic factors.Globalization has a great influence on the organisation's economy.National and global interest rates and fiscal policies will be decided by economic conditions.The condition economy decides how consumers,suppliers,creditors etc behave within a society. Following are the economic consequences on an organisation:
- an economy undergoing recession will have high unemployment whereas a booming economy will have low unemployment.
- organiations have to keep a constant look on the impact of economic conditions on their businesses as well as of their competitors.A successful organisation will respond accordingly to the economic conditions.
- in this world of globalisation,organisations are affected by the economies throughout the world.
- cheaper labour in developing countries affects the competitiveness of products from developed countries. An increase in interest rates in the USA will affect the share price of UK stocks or adverse weather conditions in India may affect the price of tea bought in an English caf.
Airtel being a tele-communication giant has a stiff competition with its rivals like Idea,Vodafone,Reliance and so on.Airtel keeps a sharp eye on economic policies of its competitors and formulates its policies to keep pace with them.Time to time airtel come with new ideas and plans to compete with different business entities. Moving one step ahead in the tariff war, Bharti Airtel has launched the pay-per-second calling option for the US customers who use the calling cards to make calls to India. Bharti Airtel is the first telecom operator to provide pay-per second plan on calling cards to India in the US.(www.india-server.com)
Thus,a successful organisation has to be aware of economic conditions across all borders and should formulate its strategies based on the available economic conditions.
Social factors also greatly affects the success of an organisation.Social forces affect company's attitudes,interests and opinions.Social condition at large decides customer moods and what he will purchase.Population,religion,rate of literacy and other social factors are chief elements which designs the organisation's strategy.
Airtel always comes with something new for its customers.Airtel has targeted the Sri Lankan population and won one million customers by providing strongnetwork back up, better service and low call charges.Bharti Airtel Lanka (Pvt) Ltd, a subsidiary of Bharti Airtel, Asia is leading integrated telecom services provider has crossed the 1 million revenue earning customers mark in Sri Lanka.Having achieved this remarkable milestone within six months of launch of its services in Sri Lanka, Bharti Airtel Lanka is now the fastest growing mobile services operator in the country.(ITpro,July 2009)
In short a company's success largely depends on its understanding of its social environment.If organisation do not respond to changes in society it will lose its market share and demand for their product and service.
Technological developments can give organisations a competitive advantage. Recent changes in internet and ebusiness technology have made a dramatic impact on many businesses. Developments in technology also enable more efficient processes, faster research and development and improved sharing and use of data.
Airtel is known for innovation and creativity.It always brings something new and trendy for its customers.With the launch of IPTV airtel has placed itself among the top network operators and has enabled its customers with a new technology that too at an affordable price.Airtel is a leader in technological innovation.For instance,airtel has made a tie-up with the popular micro-blogging service Twitter..(www.topnews.in)
Each and every organisation has to work within a legislative framework.It has to abide by the laws and follow the rules and regulations. The legislative and regulatory environment must be monitored by all organisations.
Airtel has many company laws which covers almost every aspect of the organisation.Airtel operates separate laws for it's employees health and safety and their wages.Airtel very closely examines its legal responsibilities.Airtel use its trade associations to lobby government to make legislation practicable.Airtel has a specific set of legal policies.Airtel takes utmost care of the personal information of its customers.Airtel works within the legal principles and wins the support of government as well as of its customers.
This mainly deals with the marketing environment.How you sell your product to the available environmental conditions.Airtel very well know how to market its products to the public.Airtel has hired Sharukh Khan as the brand ambassador for the mobile company and Kareena Kapoor and Saif Ali Khan for the DTH company.With the good use of adverts Airtel is attracting its customers to a great extent.Thus,Airtel also possess strong marketing strategies.
The PESTLE analysis is done to study the competition in the marketplace. All organisations,in commercial business, need to monitor the competitive environment.Airtel also has to face a tough competition with the other telecom giants like Vodafone,Tata Communications and so on.Airtel is fighting neck to neck with its competetiors by launching its new plans and strategies for its customers.Airtel has launched its new Pay Per Second plan and is also providing Twitter on Airtel which is attracting customers.With these strategies Airtel is is giving a sound competition to its competetiors.
SPECIALIZATION OF AIRTEL:
Bharti Airtel has three important specializations. The businesses at Bharti Airtel have always been structured into three individual strategic business units (SBU's):
- Mobile Services: The mobile business provides mobile and fixed wireless services using GSM technology across 23 telecom circles.
- Airtel Telemedia Services: Telemedia services business offers broadband and telephone services in 95 cities and has recently launched a Direct-to-Home service,Airtel Digital TV.
- Enterprise Services: Airtel provides to the corporate customers end-to-end data transfer through its nationwide fiber optic backbone and good connectivity in fixed line and mobile circles.(Business Today Magazine,2009)
TECHNOLOGY USED IN AIRTEL:
Airtel is widely known for its tele-communication businesses.Airtel provides the GSM network,the BROADBAND sevices,the DTH services and has recently launched the IPTV.Airtel has multiple technological use as it has to maintain a large database of its customers.Airtel has a collaboration with the IT entity IBM for the IT solutions.Airtel also possess a good after sales services through its call centre operations in collaboration with IBM DAKSH,HINDUJA TMT,TELEPERFORMANCE,FIRST SOURCE and AEIGS.
SIZE OF THE ORGANIZATION :
The size of Airtel organisation is dependent on the following factors:
- number of employees.
- area of company's network.
- the customer base.( 110,511,416 GSM mobile and 2,928,254 Telemedia Customers (status as on Sept 30, 2009)
- the company's service outlets.
- company's turnover.
All these factors determines the the size of a company. Airtel is spreading both in length and breadth and expanding to new countries like Sri Lanka and so on. Airtel is just a 15 year old organisation but reached to extraordinary heights.
GOALS AND ACHIEVEMENTS:
Airtel wants to be the most admired brand in India.
- Loved by more customers
- Targeted by top talent
- Benchmarked by more businesses
Bharti Airtel won the first prize for Six Sigma implemented in Transport network to enhance voice quality in its network. "Quality is an integral part of a company's strategy while the mechanism to achieve quality is a matter of choice. The quality deliverables should be driven from the top and Airtel takes pride to call itself a quality company, " stated Mr. Sanjay Kapoor, Deputy CEO, Bharti Airtel Ltd.
"We at Airtel always think in fresh and innovative ways about the needs of our customers and how we want them to feel.We deliver what we promise and go out of our way to delight the customer with a little bit more"(www.airtel.in)
- Voted India's most innovative company,2008
- Winner of the "Gallup Great Workplace Award",2008
- "2nd Most Trusted Service Brand"-Annual Economic Times,2008
- 'Best Content Service'Award for its Farmer Information Dissemintation Platform for Bharti Airtel's joint venture with IFFCO,IKSL (IFFCO Kisan Samachar) - World Communications Awards 2008
- Best Telecom Company at NDTV Profit Business Leadership Awards.
- GSM Association Chairman's Award 2008 to SUNIL BHARTI MITTAL.(www.airtel.in)
Airtel maintains high standards of service management.Service sector management is a managerial process of managing services.Airtel firmly believes that service management is an organized effort for providing a strong foundation for the development of an organization.In course of service management,Airtel understands the utility the customer receive by consuming or using the service offering of the organization.Airtel takes a proper care of its personnel,technology,physical resources,systems and customers and maintains a proper balance between them to come out with the strong service management.By maintaing these high standards of service management,Airtel assures the quality of its services to its customers on a continuous basis.
For a successful service sector management an organization must have following quality dimensions of services:
Consistency:it means that a firm must withstand its promises and quality always.Airtel maintains consistency in its services through accurate billing,work done at right time and so on.
Concern:it means taking care of its customers and employees.Airtel has launched many service centres providing the customer with after sales services.
Competence:it means having the right skills and knowledge to perform the service.Airtel gives a proper training to its employees for a skilled customer support.
Courtsey:it involves politeness,report,consideration and friendliness of contact personnel which is maintained by the Airtel.
Communication:it means keeping consumers informed in a language that they can understand and take their feedback.In this case,Airtel has many after sales services in operation.
Credibility:it involves trustwothiness,believability and honesty in which Airtel has won the hearts of its customers.
Airtel is,therefore,one of the successful organisation for its proper understanding of the environment.It has won the hearts of many customers for its excellent customer support and because of its innovative mind.Airtel always comes with something new and beneficial for its customers.
- Ian Worthington and Chris Brittion.(2008),Business Environment,Pearson Education.
- Robbins.S,Cenzo.D(2008),Fundamentals of Management: Essential Concepts and Applications,Blackwell Publishers.
- Business Today Magazine,September 2009.
- India Today Magazine,September 2009.
- IT Pro,July 2009.