Strategic management Essay Example | Topics and Well Written Essays - 3000 words - 8

Strategic management - Essay Example (Florio, 2003) In 1981 the British Telecommunications Act separated BT from the Post Office and began the process of liberalization. Consequently in 1982, Mercury, an ancillary of Cable and Wireless, was certified as a national fixed line network operator became a competitor of BT. In 1983 the government declared its duopoly policy which stated that the only telecom service providers for fixed lines in the nation would be BT and Mercury for the coming 7 years. (Summanen, and Pollitt, 2003p.2) In 1982 the government planned to privatize BT. In 1984 the plan was executed and BT was privatized: 50.2% of its stakes were sold to the public. The creation of Oftel under the Telecommunications Act 1984 after BT’s privatization, finally led to the separation of its regulatory and operational functions. The privatization of BT in 1984 showed signs of a new structure of the telecom industry that could fare better in a competitive framework than in the public sector. The need for investment in the operations and services and customer orientation was acknowledged. (BT’s response, 2005, p.7) The duopoly stage of BT, from 1984 to 1990, led to a soft landing into competition. Even though BT sold its manufacturing units shortly after its privatization, the number of employees grew from1984 to1990. (Summanen, Pollitt, 2003, p.4) In 1987 Iain Vallance was selected as the chairman of BT. The initial reorganization of British telecom as an integrated telecommunications corporation was made in the early 1990s. In April 1991, BT came up with a different business structure, which was the outcome of a yearlong reorganization. BT’s new establishment concentrated on definite market sectors to satisfy the needs of a variety of customers- individuals, small companies, and MNCs. At the same time, the objective of achieving a leading position as a global telecommunications operator was laid down.

Implementing Pricing Strategies Term Paper Example | Topics and Well Written Essays - 1250 words

Implementing Pricing Strategies - Term Paper Example Moreover, fixed costs and prices are those which are essential for running any business. Hence, these contributions are mandatory for any individual. If an individual is operating any business enterprise, the remunerations, rent and raw material cost among others are considered as overhead or fixed costs. Besides, the employees and general public also gives rise to certain fixed costs and prices such as insurance cost, health cost and medical cost among others. Therefore, fixed costs and prices can be referred to as those expenses which do not change with any alterations in the function of the business. Thus, it can be affirmed that fixed cost and prices relates to those components which are essential for measuring contribution (Avis, 2009). Apart from these, fixed cost and prices charged are also necessary in case of marketing. It facilitates in predicting the earnings of a business generated by varied modifications in ‘unit sales’ as well as the impact of anticipated p romotions. Hence, both cost and price play a significant role in contribution. In addition, these uncertain variables might prove indecisive due to changing needs and demands of customers. When the demand of a particular product or service is high, the amount of contribution might also be increased in order to attract the premium group of customers. It would enhance the market share and profitability of an organization as well as improve the brand identity. Similarly the contribution percentage or investment should be lowered at the saturation stage of a product or service to avoid incurring huge loss. Thus, it can be avowed that determination of uncertain variables such as cost and price is entirely based on the demand of product or service (Bloom, Bond & Reenen, 2007). Hence, these tentative components should not be considered as fixed, because it entirely depends on the demand fluctuations in the market with high possibility of changing values. Question 2 Pricing strategy is refe rred as the idea of implementing an optimum price, based on the features of the particular product or service. The prime objective behind the notion of shaping pricing strategy is to capitalize profit thereby enhancing the total sales of specific product or services. There are varied types of prices such as ‘cost-plus-pricing’, ‘skimming pricing’, ‘penetration pricing’, ‘value-based pricing’ and ‘target pricing’ among others. Moreover, the pricing strategies are mainly implemented based on the competition of product or services in the market. In addition, price of products and/or services help to determine the sustainability and consistency of a brand in the market among others. Thus, it can be affirmed that pricing policy is one of the significant decisions of product or service of an organization. However, at times, determination of pricing strategies of products and/or services also creates conflict among the employ ees of an organization thereby hindering their dedication towards work. Hence, pricing strategies also hamper enthusiasm and employee morale which might prove detrimental for an organization (Avis, 2009). Pricing strategy is a tool which is utilized in order to enhance the profit of an organization augmenting the demand of products and/or services in the market. Moreover, at times, experienced managers also had to change the