Strategic change pattern of Hong Kong Telecom : a case study

Pao Yue-kong Library Electronic Theses Database

Strategic change pattern of Hong Kong Telecom : a case study

 

Author: Ng, Wai-kee
Title: Strategic change pattern of Hong Kong Telecom : a case study
Degree: M.B.A.
Year: 1996
Subject: Hong Kong Telecommunications Limited. -- Management
Hong Kong Polytechnic University -- Dissertations
Department: Dept. of Management
Pages: viii, 134, [3] leaves : ill. ; 30 cm
Language: English
InnoPac Record: http://library.polyu.edu.hk/record=b1246554
URI: http://theses.lib.polyu.edu.hk/handle/200/521
Abstract: Like many other services industries, the telecommunications business world-wide has experienced dramatic changes in its industry structure and basis of competition. With considerable assistance from the technological revolution in computers, satellites and fire optics which combined with the forces from changes in market demands, telecommunications industry has increasingly evolved from natural monopoly to competition. Governments are forced to change their oversight mechanisms to take advantage of advances in telecommunications technologies and broadening market demands. As a result of these changing forces, major firms in the telecommunications industry are struggling to adapt both internally and externally, responding to these deregulation and market liberalisation. Telecommunications industry in Hong Kong is in no way immune from this global industry trend. In the early 1990s, the Hong Kong Government had announced the deregulation of the local telephone network in mid-1995 together with a series of regulatory movements and policies to liberalise the telecommunications industry. Hong Kong Telecom, as the sole local telephony operator before 1 July 1995, had responded vigorously to the upcoming future competition by reorganising and initial downsizing its workforce in year 1991, accompanied by different forms and phases of strategic evolution and organisational changes. Following a two-year period of massive organisational transformation in response to government announcement of a deregulated telecommunications industry, which ended in uproar and tumult, Hong Kong Telecom is now in the midst of another cycle of structural and strategic changes, packaged under the terminology of "Activity Value Analysis" and "Business Process Re-engineering", aiming at manpower elimination and cost reduction through the scrutiny of all appropriated resources. Externally, the company has announced a bundle of customer services programmes to sharpen its competitive edge against its potential rivalries. Before long, the group has made public a long-term redeployment and voluntary redundancy programme, which constituted the main theme of a recent five-year vision that were announced shortly after an emerging upheaval has been aroused by the rumour of another retrenchment that would happen in the near future. In view of the turbulence and internal stress intervening at various levels of the company hierarchy and uncertainties that persist in the Group's future prospects - a situation that resembles a potential crisis situation which would be unhealthy for a growing organisation, there must exist some strong strategic grounds behind these dramatic changes. This project attempts to research into the conceptual framework and reasons behind the specific pattern of strategic changes experimenting at Hong Kong Telecom and to explore how the company has been changing its strategy and structure to cope with changes in the industry and market environment.

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