Telstra Corporation Limited: Telecommunication And Media Company

Discuss about the Telstra Corporation Limited for Telecommunication and Media Company.


Telstra Corporation Limited also known as Telstra is Australia’s largest telecommunication and media company which has ruled the continent for years until Vodafone and Optus entered. Thus there was monopoly of the said company. It provides a wide array of services such as internet. Television cable, telecom networks and other products and services which –are a part of the entertainment industry. With its Head Quarters at Melbourne, Australia the company has recently been privatized. All these years it was a government owned entity. Before Telstra came into light the telecom service was merged with the postal services of Australia until in 1975 the two were separated.  Although it has always faced competition from Optus, a company which is ranked to a second position in Australia in the said segment yet it enjoys the ownership of the fixed line telephone and the data cable connection of televisions. The company’s privatization took place in three phases which was finally ended a decade ago in the year 2006. The company post its privatization has started concentrating upon customers and services. It activities under the leadership of David Thodey were diverted towards preparing a more vigorous customer centric agenda (Ibisworld, 2016).

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Structure of Telstra

Until the company was privatized, it was only concentrated to Australia. But now the company has spread its wings to the international market as well. The structure of the company is divided into various segments. This segmentation provides better service quality for the customers and also enables development segment wise. The company’s structure is such that their exists division basis wholesale and retail operations as well as locational operations. It has Telstra Retail, Telstra Wholesale segments, Global Enterprises and Services and Telstra Operations. These are the four major divisions. However the company further fragments these divisions for ease of controllability of operations. Because of a wide range of products the company has on the platter to offer to its customers, the structure in place holds utmost importance ( 2016).

The company’s structure is guided and lead by eminent leaders and all these are further guided by the CEO of the company. The segmental structure adopted by the company ensures that the customer reach is increased and servicing the customers becomes more efficient. Such as the Telstra Retail has various retail businesses of the company under it which has the responsibility of managing the overall marketing of the company as well. The other very important segment in the company structure is that which manages its global businesses and that with the government agencies. This is a very sensitive segment and thus separate division of the same ensures better monitoring. The next big segmental division is that of a wholesale division which is responsible to increase business in the area of providing connectivity rights to the other major telecom industries. Lastly to ensure all these segments work well, an efficient and effective operational segment is required. It has a separate segment for the same too which basically collates and addresses various operational issues of the other segments and also formulates the basic plans and designs which would satisfy the customer needs internally as well as externally. Thus the company adopts a segmental form of a company structure so as to cater to its diverse range of products that it offers with ease. Divisional segmenting enables addressing to specific issues easier, leadership skills can also be managed properly and the focus of various segments will not be diverted. The leaders of the respective segments also are aware of the area of work and can thus easily approach the right person due to a very clear and concise company structure in place. Further this segmentation and division enables the company to diversify more (Crozier, 2013).

Leadership Style of Telstra

Telstra has experienced leadership of various CEOs. The present CEO Andrew Penn who has recently taken up the said post is not as effective as David Thodey though his plan to lead the company is very similar to David’s. It is the leadership style of a leader which creates a remarkable edge for any company’s future. If the leader is not effective enough to drive the team towards working for a single common goal i.e. ensuring that the organization reaches new highs, then the organization’s success becomes questionable. The said quality of a leader was very well understood by David Thodey (Bartholomeusz, 2016).

During the reign of David Thodey, Telstra’s focus shifted towards satisfaction of its customers. The present CEO was helped by David for almost four months before his final exit (Crozier, 2015). But during his leadership era his biggest contribution was alignment within the company’s varied segments and sections. He focussed upon uniting the company with its customers both present and prospective. The leadership style adopted by the CEO whom David Thodey had succeeded was full of agony. His style of leading the company had destroyed its relation with many industrial houses and the government as well which proved to be detrimental to the health of the company. He had to fight various battles with these business icons and the government agencies before a change could be experienced. As soon as the leadership shifted into the hands of a more democratic leader the things took a turn for the better and the company again saw new highs (Densley, 2012).

Fortunately the present CEO also claims to follow the path of Thodey and reveals that he is a very open minded person who prefers to talk straight without any confusion. He expresses his willingness to learn from this new responsibility that has been granted to him and this is what a good leader’s quality is. His biggest challenge is to ensure to continue with the legacy set by Thodey which had set the ball rolling for Telstra. Further it is very difficult to convince the people also that nothing would change during his leadership (Ramli, & Boyd, 2015).

Thus the leadership style adopted by Telstra during the time of David Thodey and now Andrew Penn is almost on similar lines. They both believe that for any company to grow, traits of a good leader are a must. Cohesiveness is the key to success and that our industry’s success depends upon the satisfaction level of customers. Thus it concentrates towards serving the society with the highest possible stances of services. Also it thinks about the organization as a whole and believes that clear communication of expectations within the team can ensure the desired results (Sainsbury, 2015). It will take time for the new CEO to adjust and also for his colleagues and employees but with efforts the same is possible. It is very important for him to instil a style which would enable people to believe that if he brings in any change to the existing method and ways of working then it is for the better and the same would not lead to any insecurity within the team. David Thodey’s strategy was to lead in a way which would remove insecurities within the organization as well. The productivity depends a lot on this criteria (Handford, 2015).

Company’s Strategies within Australia and/or overseas Market

Telstra is seen growing its business both within the country as well as internationally. Its employee base has expanded to as much as 36000 which provides services across 22 countries outside Australia. The company has adopted three strategies so as to grow well in the international markets along with in Australia. The same is enumerated as under:

  1. The company’s Global Enterprise and Service Division is putting in all efforts to partner with the high end communication companies in the Asia-Pacific region.
  2. Within Australia the company’s main focus is towards better connectivity and ensuring timely resolution of any issues.
  3. Proposing various innovative products and services globally by investing in crucial projects so as to ensure that Telstra has a brand name in the international market as well (, 2015).

This is why the company had established a separate wing to handle the global business. Focus is not diverted or divided and hence the company officials responsible for this wing can only concentrate over development of the global stand. The company has entered into collaborations in various forms such as joint ventures and mergers. One of such is the joint venture between Telstra and Telkom Indonesia which caters to provide various network related application services indigenously as well as globally.

Another very important strategy adopted by the company to capture the local as well as the international market is its investment strategy through Telstra Software Group and Telstra Ventures. Telstra has ventured into the healthcare segment in Asia as well as Australia by introducing the concept of e-health services. The company not only focuses upon working with the Australian Entrepreneurs but also has extended this program in Singapore, New Zealand and is on a continuous look out for new regions and areas for the introduction of the same (The Australian, 2013).

Therefore , Telstra has been on a continuous search of providing the best connectivity across Asia pacific region so that people and the business houses can communicate more effectively which is the need of the hour presently for all. Thus through its investment strategies Telstra has created a brand image in countries like Singapore, China, New Zealand and Indonesia.

Views on Company’s Structure and Strategeis

On analyzing the strategies and the present structure of the company it is very clear that Telstra has a firm goal to achieve and the same is very well understood across the company at all levels and sections. The most commendable part of the entity is that it has strong leaders who know that for a company to survive and grow it should work together. All should be motivated towards reaching a common goal and customer satisfaction should be the sole aim as Telstra Corporation Limited is a very customer-centric company. In my opinion the strategy adopted by its past leader and the present leader both are very apt. The company has a very clear cut structure which is well defined and all the duties and responsibilities are also well understood and segregated. Each segment has a leader and all these leaders have to report to the CEO of the company which makes managing the affairs of the company easy as well as effective (Raszkiewicz, 2014). The strategy to grow and multiply is also worth applauding as it is continuously trying to make a mark in the international market. Entering into joint ventures and various other forms of collaborations are the best way to grow. It clearly understands and strategies the fact that for the company to succeed in the home as well was the host countries it has to learn to bridge the gap subtly. Thus in my opinion the company’s structure and strategies are well defined and all the layers easily understandable.


On a concluding note I would like to re-emphasize over the fact that Telstra Corporation Limited is a company which became privatized only a decade ago but through it well defined policies and strategies it has shown that time is never a constraint if the leader is good and democratic. It has clearly proved that if the leader has qualities of honesty, far-sightedness and cohesiveness then any company can rise from rags. Its has an ambition to expand but with two things in mind, one is customer services and satisfaction and secondly employee satisfaction. Telstra has ensured that the differences between the host and the home country if dealt with caution and diligence can reap fruitful results.


Bartholomeusz, S., (2016), Telstra leadership shake-up shows the scale of Penn’s ambitions, The Australian, Available at (Accessed 24th August 2016)

Crozier, R., (2015), Ten Things You Need to Know About Telstra’s CEO Swap, Available at (Accessed 24th August 2016)

Crozier, R., (2013), Telstra Breaks up IT in latest restructure, Available at : (Accessed 24th August 2016)

Densley, J., (2012), Powerful Business leaders: David Thodey, Available at : (Accessed 24th August 2016)

Handford, R., (2015), Telstra’s Thodey urges new approach to leadership, Available at (Accessed 24th August 2016)

Ibisworld, (2016), Telstra Corporation Limited – Profile Company Report Australia, Available at (Accessed 24th August 2016), (2015), Telstra Business awards share their tips on growing your business overseas, Available at (Accessed 24th August 2016)

Ramli, D., & Boyd, T., (2015), : Lessons from David Thodey, Available at : (Accessed 24th August 2016)

Raszkiewicz, O., (2014), Who’s got the best Asian Strategy: Telstra Corporation Limited or ANZ?, Available at (Accessed 24th August 2016)

Sainsbury, M., (2015), Incoming CEO to lead overseas expansion, Asian Review, Available at (Accessed 24th August 2016) (2016), About Telstra, Available at (Accessed 24th August 2016)

The Australian, (2013), Telstra Unveils Strategic Update, Available at (Accessed 24th August 2016)

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