British Telecom Essay -- GCSE Business Management Studies Essays

British TelecomMy aim in this investigation is to establish whether or not BritishTelecom has successfully grown and develop since its Privatisationto compete on a world scale. In addition to this has it both long-termstrategies for future growth and development of products.According to the 1996 Budget vehement Book, more than 50 major businesses grow been privatised since 1979 and the state owned orbit of industryhas been reduced be two-thirds. British Telecom was privatised in1984, with no major restructuring. This meant that a public monopolywas transferred directly into private hands, this innate(p) monopolybenefited from having economies of scale. Of turn tail this move had itsadvantages but there were also disadvantages. These were mainly amongthe staff who forthwith had much less of an easy time in work. Not onlythis but as a result of privatisation the company obviously becamecost effective and jobs were woolly-headed in order to reduce costs.Privatisation is seen as a way of reasserting consumer sovereignty, lift standards of provision, of increasing efficiency and ofreducing costs.There are many reasons to why the Government chose a course ofdenationalisation. State monopolies create inefficiency, are poor ininnovation and restrict consumer choice instead of the consumer beingsovereign, cater has been transferred to the state and itsbureaucracies. Before privatisation all nationalised companies had to relieve oneself their expenditure passed by the Treasury, because of this they be it difficult to raise money. During these years almost 250,000 commonwealth who wanted a new phone line couldnt get them and BT didntknow what to charge the people who did have them. Privatisation gavecompanies t... ...nge from Mercury and have seen their share pricerise from an sign 130p back in 1984 to an incredible 1351p now.BT, while being a natural monopoly in Britain realise that theirposition is being challenged. Although their share of the land-linemark et has shut away nearly been all encompassing they have seen that themarket as a whole decrease as almost half of the UK population havegone out and bought sprightly phones. In answer to this threat BT havetaken up a strong position in the mobile phone market themselves,competing alongside the big guns such as orangeness and Vodafone. Throughseveral acquisitions they have established themselves as a ahead(p)company with 7 million UK customers and very sound plans for thefuture, which they see as being a unification of the latest mobilephone technology along with the immense power the Internet has tooffer.