Business Intelligence Systems Getting Value -Myassignmenthelp.Com

Question: Discuss About The Business Intelligence Systems Getting Value? Answer: Introduction Telstra is one of the biggest telecommunication companies in Australia that provides hands on services to the people in the field of media and digital communication. Telstra is a leading producer of large number of mobile phones, prepaid mobile, digital broad band services and other services to the people. In Australia they provide 17.4 million mobile services and 3.5 million broadband services. It has been in the business from past many decades and has been giving stiff competition to many other telecom companies that operate in this field. They mainly try to use the new generation technological updates to provide solutions to the people and aims to provide the largest and the fastest telephone connection to the Australians(Abbott, Daugherty, Parker, Peters, 2016). The company has also ventured into other fields and has a large human resource that effectively manages all its operations. They are not only actively present in Australia but functions in many other international countr ies also. They aim for having a global presence in as many as 20 countries in different parts of the world. The business is growing with revenues running into billions. The audit of the company is an important aspect of it that helps in understanding whether the financials are able to show the true state of affair of the business(Chariri, 2017). As per the annual reports of the company the major investing activities consists of payment for property plant and equipments and payments for the various intangible assets of the company. The major financing activities of the company includes share buyback, repayment of financial leases, finance cost paid, dividend expenses all are part of the financing activities. The financial statements of the company are prepared as per the , International Financial Reporting Standards and Interpretations and as per the Corporation Act 2001. The statements are prepared to make sure that the books of the company are showing a true and fair of the financials of the company. All the necessary accounting and auditing standards have been followed and the same has been stated by the auditors of the company(Das, 2017). The books of accounts of the company are prepared as per the going concern basis and the same has been declared in the directors report. The notes of accounts of the financial statements have been prepared in brief where all the important points are highlighted. The company is growing exceptionally well and is trying to expand their area of operations. Industry overview The Telecom industry in Australia has been growing since the last ten decades with the growth in technology. The digitalization era is characterized by strong data transfer and network requirements that will help in development of the telecommunication industry. There are large number of companies that are working in the telecom industry and there is healthy competition is there that has helped in development of the services that the end consumers receives. The main characteristics of the telecom industry is high speed internet, effective cloud designing and storage and transfer of data over the same. There are many new avenues that have opened in the telecom market(Fay Negangard, 2017). Every industry now requires high speed data to operate efficiently and that has improved the demand of the telecommunication industry. The main element that is responsible for the success of this industry is the presence of strong data analytics and that is seamlessly been incorporated in todays era . The industry is driven by strong technological innovations an development(Grenier, 2017). There has been huge growth since the past decades and the same is expected to continue in the coming years as the demand for the internet increases and the entire world is going towards digitalization. If we go through reports today the annual revenue that the telecom sector is generating is $40 million in 2016.The overall growth has been 20 percent. The major player in the market is TPG Telecom, Vodafone, Telstra, Optus etc. Telstra has the highest marketing share in this industry and is also the top companies that have been expanding to many other countries also(Grenier, 2017). The market is extremely flexible at the lower levels where easily operators can enter but mainly three four companies dominate the overall market and is responsible for its growth and development. They are all working towards providing content services to the consumers. The major critical success factor in this type of industry is the amount of digitization they are ready to bring and the amount of innovations that are being introduced that will help in providing better services to the consumers. There are so many services that the companies are providing to the consumers like mobile services, internet, dth services, along with the latest introduction of the cloud computing services that are used by so many companies for storage their data and their overall operations(Jones, 2017). The few threats that this industry faces is that entry is very easy in the lower levels where small operators can easily take over this may destroy the business of the top companies in some way or the other. Because the small companies are providing same services at the cheapest prices none of the customers will be ready to pay expensive prices to the big companies. This has increased the total amount of competition. The company is now defined by cloud computing and other digital services and the companies often face security risks because the data can be lost and there are many hackers that unethically try to make misuse of these information(Knechel Salterio, 2016). Thus security is an important concern for these kinds of companies. The reach of these companies have improved a lot over the year. In case of Telstra it is not only the leading company in Australia but is also trying to operate effectively in other parts of the world. The companies have strong expansion plans and are trying for the same(Maynard, 2017). As we see through the annual reports, the revenue of the company runs into billions and the company is also investing a lot in research and development that has helped the company in bringing changes to its overall processes. The legal environment of the company is characterized by the various rules and regulations that the company requires to follow and the various steps that they need to take to maintain the same. The companies need to prepare their financial reports as per a particular framework and in case they deviate from the same then they will be penalized. The management of the company can be held liable in cases there are any loopholes in its functioning. The government rules and all the other legalities must be properly followed(Muller, Ward, Moodley, 2017). The companies must pay the respective amount of taxes as and when required. They need to make sure that the employees of the company are following the same and are preparing the books as per the prescribed guidelines. The legal environment that is there in Australia is flexible in a way that the importance is given to the substance then to the form of any legal need and any issues arising from the same External Environmental Factors The Pest analysis is a type of analysis in which the overall legal social economic and political factors that affects the functioning of any company are discussed in details. In the given section, we will do a PEST analysis of the Telstra Company and see what those factors that affect this company are Political Factors The main political factors that regulate the economy and the telecom industry are that there are a lot of regulations, trade barriers, national radio spectrums and network licensing that the company has to deal with. The operators that are based in the lower levels of the industry do not feel the affect much but those that are operating at the highest levels have a lot of issues because of all these regulations. But now days a lot of privatization and deregulation has occurred that has helped the companies a lot. This has helped in the overall development of the top companies because there are less amount of government intervention and also fewer issues that are related with human rights(Muller, Ward, Moodley, 2017). Economic Factors Economic factors are those factors that affect the GDP of the economy and are characterized by the demand and supply effect and the overall purchasing power of the consumers. The main economic factors that had affected the telecom companies in the past have been recession due to which these companies were spending less on the telecom expenses. Telecom expenses are not a necessity and hence when the income is low, people avoid spending their money on it. The overall changes in the technology have brought a lot of changes in the economy and there are free trade barriers because of which entry and exit into the market has become easy. Social Factors The social factors are characterized by the needs and the taste of the people. The main factors are governed by what the consumer needs and what does he spends his money on. With the increase in the usage of internet, people are ready to spend a lot in the telecom services. It has socially affected a lot of lives by making the process of data transfer extremely easy and flexible and has helped in improving the overall business of these companies. Technological Factor Technology is the main factor that affects this kind of industry. It is very important that the companies bring new innovations in their services with the help of the technology. It is a very necessary in this era of digitalization. It affects the overall growth and development of the company and has also helped in making the Telstra is the leading telecommunication company in Australia. It has a wide range of service related portfolio with many diversified products. It has one of the strongest consumer bases and has also expanded in other countries as well(Werner, 2017). It has a strong employee base with more than 35 thousand employees that are operating in more than 230 countries and cities of the world. It also has major sponsorships in large number of sports evenThe major weakness of the company is that its overall liquidity position is very limited and also there is a very tough market segment that has increased a lot of competition as there are so many companies operating in t he same industry. The major opportunities that the company has are that the demand for the telecom services is increasing at a fast speed. The growing IT services market is a proof that the demand for the high data services will increase. The launch of the new 4G broad band data services has also opened new doors for the company. The company also has undertaken various strategic growth initiatives that has helped in their overall growth and development. The major threats that the company faces is that there is large amount of competition in the industry. This has posed a great threat to its overall market share. The various rules and regulations of the company and the various IT acts make it difficult for the companies to function smoothly. The changes in the technology is happening at a very fast pace which makes it difficult for the companies to cope up with the same. These are the few of the threats that the Telstra Company faces in the telecommunication industry. Porter Five forces analysis The Porter Five Forces Analysis is related to the various threats that the company faces with regard to the competition and rivalry that is present in the market. In the given case we see that there are many top players in this business which makes the competition very stiff. The companies also faces threats from new entrants as entry and exit into the industry is easy at the lower levels. The low level operators provides cheap services and hence people are willing to take form them only. This affects the business of the top players(Venezia, 2017). The other related cost that affects the growth of the company is the total cost that the company needs to the security services and also the overall cost of the research and development that the company is undertaking. The various external factors that affects the company are technological changes that are happening at a very fast speed and the companies often find it difficult to cope up. The companies needs to be in synced with the same else they will lose on a big consumer base and that might affect their overall operations and functions(Sweeting, 2017). Auditing is a process by which the auditor checks the books of records of the company and comment whether they have been prepared effectively or not and are showing a true or fair view or not. The three types of audit risks are detection risk which occurs when the auditor fails to detect major errors and issues. Inherent risks that occur because of certain factors that is not in the control of the management and control risks that occur when the management fails to employ effective control methods. Identification of the risk and reducing the same is a very important part of the overall audit process. a) Industry development: The main risk that is associated with the industry is that entry and exit is very easy that the lower levels. This increases the overall competition. b) New Product and Development: With changes in the technology occurring at a fast speed, it has become difficult for the companies to keep in sync with the same. c) Expansion of the business: The market of the business is already having many big players like Vodafone and TPG Telecom that makes expansion very difficult during those times. d) New accounting requirements: Every now and then new changes are being introduced in the already existing reporting framework, which makes it difficult for the companies to comply with the same. e) Regulatory requirements: In case of the telecommunication business there are a large number of rules and regulations that the business has to follow for its overall development. f) There are a large number of issues that are associated with the current requirements as a large number of companies find It very difficult to comply with. g) In case of use of data analytics and cloud computing, the companies need to maintain the highest level of data security, else the companies might lose very vital information. Thus the need for effective IT practices is very genuine h) If the companies do not do proper research and analysis before implementing the new strategies then the companies might face huge amount of loss in case the new strategy fails. Industry Analysis After going through the annual reports of both the companies it can be said both the companies are performing extremely well. In case of TPG we see that the overall return on assets and the return on equity is table. This shows that the company is earning profit and the shareholders are getting their share of return on the money that they have invested in the company. The company is also improving because the net profit margin and the gross profit margin is very stable. The overall liquidity position of the company has detoriated because the current ratios and the quick ratios have declined. In case of Telstra the shareholders are not in a good position as the return on assets and equity have decreased(Muller, Ward, Moodley, 2017). The company has strong internal control measures and the liquidity position is also very stable as the net profit and the gross profit margin is stable. The Company is the leader in the field of telecommunications because of its strong position in trading on equity. Understand the management and governance It is very important that the auditors apply all kind of processes to identify the basic risk factors and mitigate the same. The management of the company must help the auditor by providing them with all the necessary support that they might required.It is important that the auditor does proper research of the company and its area of operations and then apply the basic processes and helps in designing of the overall control(DeZoort Harrison, 2016). The management must also apply proper control methods and make sure that their employees are trained enough to apply the same. The auditor must not be biased in their judgment and should not be influenced by outside sources. In case of the Telstra it is important that the company should keep its strong expansion policies going and should apply the necessary amount of changes that may be required. The company must spend money in research and development as that will help in the progress of the company. The company also need to make sure th at it keeps holding it strong position and should be the best in the business as it already is(Laursen Thorlund, 2016). Conclusion After the entire analysis it can be said that the company has large number of factors that is going in its favor. The company holds the highest market share in the business and will continue to do so in the times to come. The growing demand for the IT related services is a boom for the company in many ways and will the company to prosper in the times to come. The company should keep its strong technological innovations going as it will help the company in having an edge over its competitors. 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