Gtcl Business Structure and Strategy
Business and Management
Submitted By amoomichael
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.
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
- 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.
- Decision taking is done easily since process and procedures have to exhausted.
- They are not easily affected by changes in the business environment.