Internal & External Environment: Orange Mobile Telephony Company

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Introduction

The wireless telecommunications is fast growing, largely triggered by both how the enterprise segment has been integrated as well as positive convergence on the tastes and preferences of consumers. Similarly, the average revenue per user (ARPU) has continually declined with the emergence and general acceptance of conventional voice services. Indeed, several 3G operators are now adopting the new system as part and parcel of mastering market dynamics in mobile telephony.

It is also worth to note that the stiff competition has called for the need for mobile operators to usher new and more viable marketing strategies in order to have a dominant share of consumers. Hence, revenue growth remains top agenda even as advances made in Information Technology continue to pose serious business risks for operators who are less dynamic in their production and marketing skills (Ricketts, 2002).

Thus, commoditizing voice services is one of the competitive advantage most mobile telephony firms are seeking to achieve. This has been found to be especially popular in emerging and developed markets. Nonetheless, spurring growth in revenue demands that operators shift their attention from the commonly used 2G or even 2.5G networks and embrace the more competitive 3G broadband network (Robert, 2008, April).

They have found that this will be the only way through which input costs will be reduced to the minimum while at the same time providing customers with high speed internet connections for optimum efficiency. In nay case, most of these operators have come to the realization that this will be the only long term proven solution to efficiency and cost management.

3G technologies, unlike 2G, have vast abilities that mobile telephony operators are often after. The broadband network enables both operators and consumers to achieve certain goals within a very short time. For instance, their investments will be firmly protected since the 3G networks will ensure that there is a well established roadmap, not just for capital and revenue growth but also efficiency.

Additionally, the performance of 3G networks is deemed to be of high quality and it is the only platform through which cost efficiency can be realized owing to a wider ecosystem in infrastructure. Needless to say, there are myriad of applications and services that are rich in content when using 3G broadband. Thus, the need for ubiquitous coverage is adequately catered for.

The innumerable benefits of this new type of communication technology are being ripped by operators in both industrialized and growing countries. For example, over 400 3G operators were in operation before the close of 2008. This translates to slightly over half a billion 3G subscribers globally.

Both the High-Speed Packet Access and Evolution Data Optimized are used by those operators who have rolled into 3G broadband network. This paper explores Orange mobile telephony company, one of the outstanding 3G network providers in parts of Europe with other subsidiaries in Africa. Besides, the paper embarks on strategic analysis of the company with the aim of understanding both its internal and external business environment using such tools as SWOT analysis.

Besides, each of the technique used to analyze the company has been described. In the final part of the paper, some of the challenges facing the company and possible corrective measures that can be put in place have been critically evaluated. The paper concludes with wide spectrum of recommendations that the mobile telephony firm can adopt in order to remain competitive in the highly dynamic market.

Brief History of Orange

The firm was the fourth entrant in UK mobile telephony market way back in 1994. It had the broad objective of attaining market leadership in the provision of wireless communications. Although the market was apparently saturated by other like-minded operators at that time, Orange was not deterred by this. As part of achieving its targeted economic growth, Orange announced its first Initial Public Offering (IPO) in 1996 with the aim of raising additional capital infrastructure.

Both the Nasqad and London markets listed its shares in spite of the fact it was the most infant firm entering FTSE-100 at that point in time. Three years later, Orange permitted its brand to be licensed in other countries of interest such as Switzerland and Australia among others. hence, it paved way for other operators in the foreign countries to have access to its trading portfolio.

During the same time period (1999), Orange PLC was acquired by Mannesmann AG. The company considered this to be an important step in its expansion strategies. So far, Orange has expanded its network and geographical location with more expansions overseas. Some of the countries where Orange has stamped its presence include Hong Kong, South America and Belgium, just to mention a few.

Although the company has been marred with myriad changes in ownership, it has not relented in providing its customers with the best services. This was evident in May 2001 when it was ranked position 1, four years in a row, by J.D Power and Associates UK, a renowned marketing research company in the region.

Strategic issues

Mobile telephony has continually increased in importance in the last few years, forming an integral part of day-to-day activities. Contrary to the earlier perception on the use of mobile telephone, the services provided by this industry has gone beyond mere marketing targeting the business world; it is more of a compelling consumer product than a luxury pursued by few people.

In UK alone, close to 85 percent of the entire population has either access to mobile phone or owns one. Hence, it has become a mass consumer product. Consequently, operators are now fighting for the available marketing opportunities. An array of strategies are being used; raging from trimming down both data and voice costs, innovating new services to expanding consumer base.

This bandwagon for market superiority does not live Orange out. The profitability of such operators as Orange will hence rely heavily on how competitive they are. By fact, providing better and more innovative services is a must for Orange.

Peripheral Challenges

Similar to other mobile operators, Orange also faces myriad of challenges. One such growing challenge is the government regulation that goes towards changing trading policies from time to time. it is sometimes quite impossible to precisely predict any future changes in formal regulations even when the company has heavily invested on infrastructure.

Moreover, the various tariff options available to consumers whether on data or calling services lacks sufficient publicity. For instance, the advent of 3G technologies brought along stiff competition among 3G operators. While consumers have various tastes and preferences, lack of publicity on these options is still eminent. In order to take full advantage of price wars by operators, consumer sought to be knowledgeable enough.

Furthermore, the off-net calls are still relatively high compared to calls within the same network. Besides, the international roaming calls are equally restrictive due to the higher rates. Worse still, number portability is still a pipe dream to the majority of the population. Subscribers seem to have not derived the full benefits of using this service.

This has been aggravated by the tendency of most operators locking handsets so that only sim-cards from one particular operator can be used. Nonetheless, overcoming these, among other challenges, will imply that Orange telecom will become consistently competitive bearing in mind that rolling out a 3G network by a mobile operator demands huge capital investments in spite of the fact the returns are not always guaranteed.

Change management and Leadership at Orange

Adoption and implementation of cultural change within an organisation is an important practice that cannot be ignored at all costs. Hence, it is fundamental for Orange Company to embrace and act appropriately to any form of change that may come its way in the course of operation. In order to carry out cultural change, it is fundamental for Orange to appreciate the fact that transforming its norms might be a necessary ingredient.

In addition, improving performance will equally demand more radical changes to be put in place. The success of Orange Company will largely be determined by how it manages change variable. For example, both the formal and informal working groups ought to be fully integrated when executing change (Kakabadse, Bank & Vinnicombe, 2004). The mode and intensity of interaction among all employees should be integral when carrying out organizational change.

There are various behavioral sciences that can be applied by the management at Orange in order to boost its effectiveness as a mobile telephony company. this demands an effective leadership style, which when applied well, will steer the profitability as well as individual growth of employees.
In order to implement change in an organisation with minimal resistance, there are quite a number of setbacks that may be experienced.

These barriers to introducing change should be eliminated if any change will have to take effect in an organisation. To begin with, the management at Orange should pin-point goals and objectives that have not been clearly defined since they are barriers to change. Clarity of goals and objectives should be a priority before and during the process of change. The process of introducing change can equally be interfered with by inadequate working capital.

Finances are required in order to fully implement changes in an organisation and compete effectively with other market rivals. Moreover, when resources are not available or they are poorly allocated, it may hinder the introduction of any change necessary in the life of an organisation. Bad or inappropriate decisions are occasioned by bad options taken by managers especially in the allocation of finances and human resource to various units within an organisation.

Similarly, traditional leadership structures are often repugnant to change and therefore it may grossly strangle any adjustments being introduced at Orange. This may be coupled with poor communication within and without the organisation.
There are myriad barriers that have worked against implementing changes in human resource system at Orange. It is vital to reiterate that human resource development forms the backbone of any organisation without which it may be practically be impossible to do business.

Hence, relevant changes should be injected in Orange operations on a regular basis in order to meet the changing needs and demands of a company. These changes my include but not limited to enhanced working conditions, better wages and benefits as well as sustained cordial employee relations with the organisation. Nevertheless, implementing these human resource changes may prove to be cumbersome and challenging owing to some of the reasons discussed below.

First, changes to human resource can be thwarted by the high cost maintaining talented employees in a business organisation. Employees with a higher input ratio to a company can only be retained when there is a better wage level, favourable working environment as well as attractive fringe benefits that are over and above the basic pay.

Although most firms would wish to retain talent rather than hire amateurs or semi-experienced workers, the former desire is short-circuited by high operational costs which end up cutting down the net revenue. The Orange Company is not an exceptional case since the management has to struggle between balancing profit levels and retaining high skilled and competent workers.

Second, capacity building and training through seminars, workshops and team building exercises is indeed a worthy investment to make on existing employees. This will not only equip workers with the necessary organizational tools required for optimum performance, it will also replicate into higher productivity of the firm under question.

Similarly, training costs may also increase organizational overheads.
Another barrier to changes in human resource policies is evident when recruiting employees for various positions in an organisation. In the even that the recruitment policy in place is not good, then it will act as a hindrance towards implementing the right policies on human resource.

In addition, organisations with poor support system may not have an upper hand in adopting and implementing the much needed changes on human resource. Issues being faced by the employees in an organisation ought to be communicated to the right authorities within the organisation for appropriate action to be taken. Malfunctioning support system is a barrier to an operational human resource.

Finally, lack of employee motivation due to poor or lack of performance management system is a real setback to vibrant human resource system. Performance appraisals should be conducted on a regular basis to ascertain whether goals were met or not. Employees who meet the targets should then be motivated in variety of ways in order to remain productive.

Strengths and Weaknesses

Supporting performance management at Orange is indeed paramount if the company will have to survive the stiff competition. The company ha s managed to successfully set up systems and process that are instrumental to change management as one of the pathways of accelerating the success of the company among other competitors.

The company has gone through a series of difficulties and challenges since its inception and full launch in the market. This has been evident by the manner in which the company has undergone through several acquisitions in a bid to offload itself from overwhelming marketing production and marketing overheads. For instance, only three years after its launch, Orange PLC was acquired by Mannesmann AG (cite).

“The Future is bright” (Salaman & Asch, 2003) has been its advertising slogan and a culture well knit to provide its active and prospective clients with hope for a better tomorrow. Although the slogan apparently elicits a feeling of concern for users, the company has had to face other marketing forces such as changing technologies that require surplus capital investments that may not have been necessarily planned for. Getting to the people and appealing to their consumption experience demands more than just advertising.

Opportunities and Threats

One of the management loopholes that Orange company has gone through is the inability to transform its marketing mantra from simply a mobile phone service provider to an intrinsically appealing tool of communication that befits the tastes and preferences of individual customers. As mentioned earlier, provision of mobile telephony services in an already competitive market is a highly volatile engagement. This is worsened by the fact that setting up a 3G network infrastructure is costly while the returns cannot be estimated.

For Orange Company, distinguishing between service provision and personal communication is necessary. While both parameters are integral for any mobile services operator, the importance creating and growing personal identity cannot be overemphasized (Lee, 2003). Perhaps, the management at Orange did not take due consideration when it was rebranding itself from France Telecom. Marketing strategies at France Telecom may not have been really applicable in all the geographical regions covered by the company.

The Cultural Web

Definitely, the success level of Orange in the otherwise competitive and dynamic market will be greatly driven by a well set and publicly recognized cultural web. The term “cultural web” was originally developed from the Mckinsey organisation. It is close to what many may refer to as organizational culture although quite distinct both in terms of meaning and application. When the meaning of cultural web is brought onto the surface, several latent elements can be discussed.

As commonly known, the culture adopted by an organisation largely sets both the mode and pace of that particular organisation. It is intently how a business organisation would conduct its activities in a coherent and orderly manner in order to meet the set targets (Anon., 2007, December). Orange company must set out its corporate culture in order to prevail against its competitors.

As noted earlier, the time period when an organisation is undergoing through changes is crucial. During such times, culture becomes central to all the activities being undertaken. One possible channel through which culture may conflict is when different organizations merge.

In some instances, there may be a conflict in culture when strategies are changed. One such example is when Orange Company was split from France Telecom. Realistically speaking, the company may not have achieved its revenue targets while sticking to the old culture. When the current culture has been deemed as inappropriate, then it becomes necessary for an organisation to change accordingly. This will be the only way a mobile telephony company like Orange will thrive in a highly competitive market (Parhizgar, 2002).

Hence, corporate culture can vastly affect the performance of a firm. No singe strategic planning and change management can be successfully implemented without factoring a vibrant and workable corporate culture.

The management at Orange company can make use of the cultural web model in designing how the mobile telephony company will manage both current and unforeseen changes

The process of implementing cultural web entails the application of the six known paradigms. When the paradigms are thoroughly analyzed, it is possible to critically identify which organizational culture is working, the one which is obsolete and one that requires total overhaul.

To begin with, the past story of an organisation matters a lot about the overall image. If Orange has to make a lasting impact on customer experience, then the management of the firm will be compelled to create a consistent culture, that which is perceived by general public as acceptable ad generally appealing (Tate, 2009).

The second most important paradigm is the routines and rituals valued and practiced by the management at Orange. If the said routines and rituals are not accepted by people or cannot be predicted by customers then it fails to meet the cultural we test.

In most cases, psychological desires precede motivation. An employee who is intrinsically motivated does not necessarily require to be impressed by external factors before working smart to improve the productivity of an organisation (Salaman, Storey & Billsberry, 2005).

However, most employees would appreciate to be externally motivated, either by the style of leadership in place or better working conditions where job satisfaction is not an illusion but reality. It is therefore most important for the management at Orange to devise ways and means of maintain a high level of motivation to employees for sustained productivity.

One away through which Orange can motivate its huge bulk of employees is by enriching their jobs. The different roles and responsibilities assigned to employees should be designed in a manner that it will provide chances for growth, attaining set goals and recognizing achievements. Job enrichment should also entail greater authority among employees to exercise not just their skills and competences but also the unique talents which each one is endowed with.

Motivation by goal setting

Orange employees can be motivated through a well defined process of setting goals for the organisation. Studies have revealed that people tend to be motivated to work when there are certain goals to be achieved after a given period of time. This type of motivation is well explained by Locke’s goal setting theory.

At this point, it is undisputed that Orange can attain its short, medium and long term goals once they have been set. Nevertheless, it implies that employees will only be motivated when they are part and parcel of goal setting.

Moreover, each group member within wider IBM community should be made to visualize the importance of the goals being set. In most cases, employees will not inject an additional effort if they have no clear idea on how the set goals are going to beneficial, not just to the organisation, they should also derive quantifiable benefits upon achieving the goals.

Goal setting as a way of motivating employees comes with its own cost if it is to be successful. Firstly, there are five core principles which the management at Orange should bear in mind for this theory to be fruitful: the set goals should be clear, challenging, demonstrate high level of task complexity, have a feedback system and also demonstrate commitment.

Operating and managing big companies require good leaders and great leadership skills. Leaders are selected based on their personalities because it may naturally lead people into the leadership roles. The term Big Five is used to describe the major classifications of personality types evident in people. Each person has a unique and inherent behavioral pattern that conspicuously stands out and can be used to identify the person Big Five and leadership

Firstly, extraversion tops the list of the Big Five. This personality type is sometimes referred to as Surgency. People who are extroversive are often characterized with being assertive, of high energy and tend to talk a lot. Agreeableness is the second type of the Big Five. Those who belong into this category are associated with affection, sympathy and tendency to be benevolent or compassionate (Peper et al., 2005).

Conscientiousness is the next personality type. Conscientious characters are shrewd, well organized and strategic. Emotional Intelligence is the fourth trait. This personality type is also referred to as neuroticism and is mostly associated with individuals who tend to be tense, emotional, considerate or anxious.

Finally, Openness personality is characterized with the ability to be thoughtful, insightful or the ability of being intellectual. There are no well-known studies done to examine the relationship between Big Five and leadership. For Orange firm, a well endowed leadership structure is necessary in order to maintain the market upbeat of the company in terms of competition and revenue growth.

In order to understand leadership, personality has been incorporated in the whole process. The main reason given behind this is that how people behave or act is basically a result of who they are. Another possible reason why personality has been linked with leadership is due to the fact that throughout adulthood, personality is part and parcel and also a function of day to day activities and can be assumed to have a predictive power that is longitudinal in nature.

In order to obtain an analytical measure of personality, the five-factor model has been employed. This model has also proved to be reliable and comprehensive in determining global personality, or better still, a wide range of personality traits. Most of the research studies conducted both in the distant and near past conclude the same way; that all the personality types largely fall into the five main categories albeit the varying degrees of functionality.

The five-factor model has also shed more light when discussing personality and trait differences in people and how this can affect individual leadership styles (Pareek, 2006). These five dimensions have equally proved to be highly reliable and have high level of validity and when molded together, the structure of personality is well established.

Moreover, the Big Five can be applied is a very beneficial way in a variety of settings. For example, the survey carried out on both male and female students from engineering and business classes is a vivid illustration on how profitable the model is.

The male engineering students who were found to be mainly task oriented still fall under the Big Five especially if those characteristics are linked to personality traits. One dominant personality characteristic evident among the male engineering students is conscientiousness. The fact that they are task oriented implies thoroughness on their part. They are always conscious of their work and hardly dwell on people or building strong relationships.

In expounding the Big Five model, it is imperative to underscore the fact that extraversion relates to the ability of a person to demonstrate more energy while performing tasks (Haas & Hayes, 2006). A person with this character trait is highly enthusiastic, is capable of building strong and long lasting relationships due to the outgoing nature.

In addition, the person is generally talkative. These traits can be used to predict leadership style of an individual. In the case of the female business students, they were found to be more people oriented than task oriented. They can also be said to be extroverted and tend to speak out freely whenever there is need.

Openness to experience, conscientiousness as well as extraversion have been found to be key players in determining the performance of a leader.

For instance, conscientiousness correlates so well with certain occupations. In this regard, people who are goal directed and reliable are generally good performers in any given job (McKenna, 2000). Occupations such as sales and management require extraversion personality. This is because such occupations require continuous interaction with the target client or group being managed for optimum performance. This is a similar case to the Business students who were surveyed (Jones, Conway & Steward, 2001).

Due to the nature and eventual practice of the career they are in, they will be required to be outgoing, extroverted, and talkative and above all, make friends. This explains the reason why their average score on people oriented was very high in comparison to other categories measured. Furthermore, openness to experience alongside extraversion can be used to predict the level of performance especially within the context of leadership.

Human resource management continues to be at the centre of business operations on a day-to-day basis (Robbins, 2009). Business managers are charged with the responsibility of ensuring that the goals and objectives of an organisation are met alongside maintaining a cordial relationship with workers. The double-ended responsibility might sometimes pose a real challenge to the working environment.

Firstly, the main driving force in any firm or business organisation is to maximize returns. A firm can improve on its returns by either reducing the cost of operations or engaging in other more profitable ventures. In other words, a business unit can boost its net returns by diversifying its portfolio.

Secondly, the productivity of a company is also determined by the nature of the existing workforce (Kang, & Dickinson, 2003). Employees who are demoralised and lack motivation can hardly deliver or showcase their productivity at workplace. In this regard, human resource management has to draw clear lines between how much the company expects in terms of profitability and the net overheads on employee wages and fringe benefits.

To this end, Orange may opt to stick by the minimum wage requirements set up by the law or decide to pay a living wage to its workers. Although both types of wages have their own implications, employees need to be assured of a conducive working environment that do not only rewards them fairly but also upholds their dignity as workers . The working conditions are therefore paramount.

For instance, occupational health and safety demands that employees should work in a safe and dignified environment. Nonetheless, employers in various business organizations continue to bear the brunt of meeting the constantly rising needs of workers, whether though maintaining a minimum wage, living wage or allowances even during periods of economic downturn (Bratton & Gold, 2001).

Quite often, there is least consideration of how much businesses may run into millions of losses when they have to keep a record of complying with the demands of workers. The management at Orange can indeed go above par by ensuring that workers are treated more as company assets rather than liabilities.

Conclusions and recommendations

There are myriad barriers that have worked against implementing changes in human resource system at Orange mobile telephony. It is vital to that human resource development forms the backbone of any organisation without which it may be practically impossible to do business.

Hence, relevant changes should be injected into organisations on a regular basis in order to meet the changing needs and demands of a business unit. These changes my include but not limited to enhanced working conditions, better wages and benefits as well as sustained cordial employee relations with the organisation. Nevertheless, implementing these human resource changes may prove to be cumbersome and challenging owing to some of the reasons discussed below.

First, changes to human resource can be thwarted by the high cost marinating talented employees in a business organisation. Employees with a higher input ratio to a company can only be retained when there is a better wage level, favourable working environment as well as attractive fringe benefits that are over and above the basic pay. Although most firms would wish to retain talent rather than hire amateurs or semi-experienced workers, the former desire is short-circuited by high operational costs which only cut down on net revenue.

Second, capacity building and training through seminars, workshops and team building exercises is indeed a worthy investment to make on existing employees (Fletcher, 2004). This will not only equip workers with the necessary organizational tools required for optimum performance, it will also replicate into higher productivity of the firm under question. Similarly, training costs may also increase organizational overheads.

Another barrier to changes in human resource policies at Orange company is evident when recruiting employees for various positions in an organisation. The firm has been making use of graduate trainees who are first of all trained and later put on further on-the-job training so that they can deliver the best services to customers. In the event that the recruitment policy in place is not good, then it will act as a hindrance towards implementing the right policies on human resource.

References

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Kakabadse, A.; Bank, J. & Vinnicombe, S. (2004). “Working in organizations”, Burlington: Gower Publishing Company.
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Lee, G. (2003). “Leadership coaching: from personal insight to organizational performance”, London: Chartered Institute of Personnel and Development.

McKenna, F.E. (2000). “Business psychology and organizational behavior”, East Sussex: Psychology Press.

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Parhizgar, D.K. (2002). “Multicultural behavior and global business environments”. New York: International Business Press.

Peper, B. et al. (2005). “Flexible working and organisational change: the integration of work and personal life”, Cheltenham: Edward Elgar Publishing Ltd.

Ricketts, J.M. (2002). “The economics of business enterprise: an introduction to economic organisation and theory of the firm”, Cheltenham: Edward Elgar Publishing Ltd.

Robbins, P.S. (2009). “Organizational behaviour: global and Southern African perspectives” Cape Town: Pearson Education Inc.

Robert L. (2008, April). Orange UK brand chief to take retail responsibility. Marketing Week,3. Retrieved from ABI/INFORM Global.

Salaman, G. & Asch, D. (2003). “Strategy and capability: sustaining organisational change”, Oxford: Blackwell Publishing.

Salaman, G., Storey, J. & Billsberry, J. (2005). “Strategic human resource management: theory and practice”, London: Sage Publications.

Tate, W. (2009). “The search for leadership: An organisational perspective”, Devon: Triarchy Press.

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