DEUTSCHE TELEKOM: A TRANSFORMATION JOURNEY (A) Description
This is a classic transformation case, made more complex by the fact that it involves a huge organization led by a youthful company insider, RenA? Obermann. The two-part case study covers the period from 2006 to 2010. The case starts in late 2006, shortly after Obermann was promoted to replace Kai-Uwe Ricke at Deutsche Telekom (DT), one of the standard-bearers of the German economy.When he took over as chief executive, the former state-owned telecom monopoly was in bad shape. Having long been one of the dominant players in Europe, DT's share price had collapsed in just a few years, as had its grip on its home market. Shortly before Obermann was appointed, DT's share of new broadband customers in Germany - its traditional stronghold - fell to below 10 percent. And with its 260,000 strong workforce, DT's labor costs compared to sales were up to twice as high as those of its main European rivals. Still living on past glories, the company was heavily siloed and bloated. While its structure was not suited to the new market realities, few employees felt a strong need for anything more than incremental change. Yet many analysts foresaw either bankruptcy or break-up for DT within a matter of three or four years. Under Obermann's leadership, DT underwent a dramatic transformation, regaining its dominant position in the large domestic market within three years - but it remained too early to declare a full-fledged turnaround. Case A describes Deutsche Telekom's competitive challenges prior to RenA? Obermann's appointment as CEO. It gives a few background details on the new CEO and describes some of the key moves he made during his first two years at the helm - and his success in stabilizing DT. Case B covers the second phase of DT's recovery and the continued drive to create a single integrated company, to overcome resistance and to encourage new behaviors. Learning objectives: The cases cover three key themes: 1) The advantages and disadvantages of a strong organizational culture. 2) The process of organizational transformation and the challenge of building on success. 3) Some of the psychological challenges of leadership.
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Case Analysis of DEUTSCHE TELEKOM: A TRANSFORMATION JOURNEY (A)
DEUTSCHE TELEKOM: A TRANSFORMATION JOURNEY (A) is a Harvard Business (HBR) Case Study on Leadership & Managing People , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. DEUTSCHE TELEKOM: A TRANSFORMATION JOURNEY (A) is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. DEUTSCHE TELEKOM: A TRANSFORMATION JOURNEY (A) case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. DEUTSCHE TELEKOM: A TRANSFORMATION JOURNEY (A) will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.
Case Study Solutions Background Work
DEUTSCHE TELEKOM: A TRANSFORMATION JOURNEY (A)
case study solution
is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Leadership & Managing People, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of DEUTSCHE TELEKOM: A TRANSFORMATION JOURNEY (A), is to not only build a competitive position of the organization but also to sustain it over a period of time.
Strategic Management Tools Used in Case Study Solution
The DEUTSCHE TELEKOM: A TRANSFORMATION JOURNEY (A) case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.
Texas Business School Approach to Leadership & Managing People Solutions
In the Texas Business School, DEUTSCHE TELEKOM: A TRANSFORMATION JOURNEY (A) case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.
We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – DEUTSCHE TELEKOM: A TRANSFORMATION JOURNEY (A)
Step 1 – Problem Identification of DEUTSCHE TELEKOM: A TRANSFORMATION JOURNEY (A) - Harvard Business School Case Study
The first step to solve HBR DEUTSCHE TELEKOM: A TRANSFORMATION JOURNEY (A) case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Dt Dt's is facing right now. Even though the problem statement is essentially – “Leadership & Managing People” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Dt Dt's, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.
Step 2 – External Environment Analysis
Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the DEUTSCHE TELEKOM: A TRANSFORMATION JOURNEY (A).
The external environment analysis of DEUTSCHE TELEKOM: A TRANSFORMATION JOURNEY (A) will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.
What is PESTEL Analysis? Briefly Explained
PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in DEUTSCHE TELEKOM: A TRANSFORMATION JOURNEY (A) case study. PESTEL analysis of " DEUTSCHE TELEKOM: A TRANSFORMATION JOURNEY (A)" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.
How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?
As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with DEUTSCHE TELEKOM: A TRANSFORMATION JOURNEY (A) macro-environment and how it impacts the businesses of the firm.
How to do PESTEL Analysis for DEUTSCHE TELEKOM: A TRANSFORMATION JOURNEY (A)
To do comprehensive PESTEL analysis of case study – DEUTSCHE TELEKOM: A TRANSFORMATION JOURNEY (A) , we have researched numerous components under the six factors of PESTEL analysis.
Political Factors that Impact DEUTSCHE TELEKOM: A TRANSFORMATION JOURNEY (A)
Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.
Policy Making Impact on DEUTSCHE TELEKOM: A TRANSFORMATION JOURNEY (A)
Government policies have significant impact on the business environment of any country. The firm in “ DEUTSCHE TELEKOM: A TRANSFORMATION JOURNEY (A) ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.
Data safety laws – The countries in which Dt Dt's is operating, firms are required to store customer data within the premises of the country. Dt Dt's needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.
Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. DEUTSCHE TELEKOM: A TRANSFORMATION JOURNEY (A) has numerous instances where the competition regulations aspects can be scrutinized.
Import restrictions on products – Before entering the new market, Dt Dt's in case study DEUTSCHE TELEKOM: A TRANSFORMATION JOURNEY (A)" should look into the import restrictions that may be present in the prospective market.
Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Dt Dt's in case study “ DEUTSCHE TELEKOM: A TRANSFORMATION JOURNEY (A) ” should look into these export restrictions policies.
Foreign Direct Investment Policies – Government policies favors local companies over international policies, Dt Dt's in case study “ DEUTSCHE TELEKOM: A TRANSFORMATION JOURNEY (A) ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.
Taxation & Regulation Impact on DEUTSCHE TELEKOM: A TRANSFORMATION JOURNEY (A)
Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.
Tariffs – Chekout how much tariffs the firm needs to pay in the “ DEUTSCHE TELEKOM: A TRANSFORMATION JOURNEY (A) ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Dt Dt's can compete against other competitors.
Government Scheme & Subsidies Impact on DEUTSCHE TELEKOM: A TRANSFORMATION JOURNEY (A)
Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at DEUTSCHE TELEKOM: A TRANSFORMATION JOURNEY (A) case study have to assess whether their business can benefit from such government assistance and subsidies.
Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.
Political System & Stability, and its Impact on DEUTSCHE TELEKOM: A TRANSFORMATION JOURNEY (A)
Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.
Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.
Corruption level – Dt Dt's needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.
Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.
Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.
Economic Factors that Impact DEUTSCHE TELEKOM: A TRANSFORMATION JOURNEY (A)
Social Factors that Impact DEUTSCHE TELEKOM: A TRANSFORMATION JOURNEY (A)
Technological Factors that Impact DEUTSCHE TELEKOM: A TRANSFORMATION JOURNEY (A)
Environmental Factors that Impact DEUTSCHE TELEKOM: A TRANSFORMATION JOURNEY (A)
Legal Factors that Impact DEUTSCHE TELEKOM: A TRANSFORMATION JOURNEY (A)
Step 3 – Industry Specific Analysis
What is Porter Five Forces Analysis
PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in DEUTSCHE TELEKOM: A TRANSFORMATION JOURNEY (A) case study. PESTEL analysis of " DEUTSCHE TELEKOM: A TRANSFORMATION JOURNEY (A)" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.
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