British Telecom Essay -- GCSE Business Management Studies Essays

British TelecomMy aim in this investigation is to plow whether or not BritishTelecom has successfully grown and genuine since its Privatisationto compete on a world scale. In addition to this has it all long-termstrategies for future growth and development of products.According to the 1996 Budget red ink Book, more than 50 major businesses absorb been privatised since 1979 and the state owned arena 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 inwrought monopolybenefited from having economies of scale. Of grade this move had itsadvantages but there were also disadvantages. These were mainly amongthe staff who in a flash 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 bewildered in order to reduce costs.Privatisation is seen as a way of r easserting consumer sovereignty, airlift 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 short(p) ininnovation and restrict consumer choice instead of the consumer beingsovereign, might has been transferred to the state and itsbureaucracies. Before privatisation all nationalised companies had to ache their expenditure passed by the Treasury, because of this they bring it difficult to raise money. During these years almost 250,000 pot 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-linemarket has legato nearly been all encompassing they have seen that themarket as a whole decrease as almost half of the UK population havegone out and bought diligent 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 orange and Vodafone. Throughseveral acquisitions they have established themselves as a trackcompany with 7 million UK customers and very sound plans for thefuture, which they see as being a unification of the latest mobilephone engine room along with the immense power the Internet has tooffer.