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Gtcl Business Structure and Strategy

In: Business and Management

Submitted By amoomichael
Words 690
Pages 3
This report outlines the acquisition of GTCL, issues relating to market share increase, the

launch of new products and improvement of quality of service rendered in order to

reduce external failure costs such as warranty etc.

Human resource issues such as appraisal of staff and performance, motivation and

reward as well. The flow of information from top management to operational areas

and how they are implemented shows the type of hierarchy the organization is practicing

however with GTCL it is highly bureaucratic hence the challenges it is facing.

However GTCL has a lot of goodwill this can be anlysed by the use of the SWOT


Strength: This gives the Organization a competitive advantage over others.

- A large number of loyal customers and the range of services it provides.

- A wide coverage area of operations.

- A loyal customers and a good reputation due to many years of operations.

Weakness: This shows weaknesses within the organization.

- Poor quality of service.

- Poor employee relations and lack of specific skills

- Lack of funds due to over-reliance on government for subsidies.

- A highly bureaucratic system being operated by the organization

Opportunities: In the organization’s external market.

- A large market ready to consume the organization’s services.

Threats: This may be from outside the organization such threats


- Political interferences

- Competition from other service providers

- Poaching of skilled staff by other competitors due to lucrative offers being

Offered to staff.

A case study can be said of Ghana Telecom now Vodafon Ltd. Which was 100% owned

by the Ghana Government could not perform due to administrative and government

interference, there were lack of initiative, and innovation, a large work force, a huge

infrastructure which under normal circumstances and good leadership have to perform

but they fail.

This organization has the good will and reputation to succeed, a large market share and

Skilled personnel but could not compete with its competitors.

Ghana Telecom, just like GTCL was also affected by the business environment it

was operating within, this can be anlysed by the use of the PESTLE analysis.

Political: This can be in the form of interference from government, such as the

appointment of politicians to managerial positions, these politicians are not techno-

crats but are there to bid their masters will. hence policies that will enhance growth

in the organization are not implemented.

Economic: Due to competition from rival companies, the high exchange rates to

Import equipment for operations and high operational costs . companies tend to fail.

Sociological factors: Such as changes in the tastes of customers, that is demand for more

mobile phone and data services as well as mobility of skilled labour.

Technology: The introduction of new technological phones such as the smart phones and

new IT applications has make organizations to improve their infrastructure otherwise

you will be out of business.

Legislative: Laws by government allows the movement of capital and labour as well as

well as repatriation of profits.

Environmental: Consumer groups ensures that companies produce goods that are

Environmentally friendly and waste can easily be disposed off.

The current structure of GTCL can be said to be a hierarchical structure with a number

of functional departments. It is highly bureaucratic, due to this communication flow is

poor and employees rather get information from the organization through the newspapers.

Chief Executive

Finance Director Human Resource Director Marketing Director Operations Director Research & Development Director

This is a typical example of a large complex organization with departmental power and

expertise. In this form the strength of the bureaucratic form lies in the constituent parts.

Power and responsibility are distributed to functionally defined departments. The work of

These departments and coordination of information flows between departments is

governed by:

- Rules and procedures to ensure predictability.

- Specialization to ensure division of labour

- A hierarchical chain of command

- Selection of posts based on competence.

- Written documentation of rules and decisions.

Advantage of such a system is that:

- Career path are well defined

- They offer the chance to acquire specialist expertise.

Disadvantages include:

- Decision taking is done easily since process and procedures have to exhausted.

- They are not easily affected by changes in the business environment.

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...Business Advice !1 Business Advice Business Advice Mr. Owner, you are off to an excellent start. It is pivotal for business owners to compare options to discover which business structure would be most suitable for their needs. Because you are undecided how to finance and whether you will have partners, I compiled a list of the advantages and disadvantages of each business structure for your review. Sole Proprietorship If you decide that you want full control of the business, a sole proprietorship could be the best option. In this structure, you would be the decision maker; therefore, the way in which your business operates will be up to you. Additionally, since you are undecided about financing, you will be pleased to discover that a sole proprietorship is the least expensive option and has a very simple formation process (“Corporate Business Structures”, 2011). In reference to your question about taxes, a sole proprietorship does not have any specific business taxes; instead, as the own- er, you would pay taxes on your income as part of your personal income tax payments (“Advan- tages and Disadvantages of Sole Proprietorships”, 2007). Before you decide upon a sole propri- etorship, you should be aware of the negative aspects. Because there is no liability protection, you would be held personally liable for the business’s debts and any liabilities that result from your employee’s actions (“Advantages and Disadvantages of Sole Proprietorships”, 2007). Ad- ditionally,......

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