Foundations Of Management Assignment

FOUNDATION OF MANAGEMENT ASSIGNMENT

"A Strategic Review"

Case: Lannet Communications, Greek Telecommunications Company

Name: Yannis Ghikas Student I.D. No: 2079778 (IACY)

Date: 11/03/2005

Word Count: 4.713

1. INTRODUCTION 3

THE CASE 3

2. VMOST ANALYSIS/STAKEHOLDERS 4

2.1 VMOST ANALYSIS 4

2.2 STAKEHOLDERS ANALYSIS 4

3. EXTERNAL ANALYSIS 5

3.1 PEST ANALYSIS 6

3.2 LIFE CYCLE ANALYSIS 7

3.3 THE MAJOR COMPETITORS 8

3.4 PORTER'S 5 FORCES MODEL 9

4. INTERNAL ANALYSIS 11

4.1 VALUE CHAIN 11

4.2 MC KINSEY 7S MODEL 15

4.3 FINANCIAL PERFORMANCE 16

4.4 DISTINCTIVE CAPABILITIES, UNIQUE ASSETS AND RESOURCES 17

5. SWOT ANALYSIS AND CONCLUSIONS 17

5.1 SWOT ANALYSIS DISCUSSION 17

5.2 CONCLUSIONS 20

6. OPTIONS AND RECOMMENDATIONS 20

7. REFERENCES/BIBLIOGRAPHY 22

8. APPENDICES 24

APPENDIX 1: VMOST 24

APPENDIX 2: STAKEHOLDERS ANALYSIS 25

APPENDIX 3: PEST ANALYSIS 28

1. INTRODUCTION

This assignment attempts to examine the competitive standing of Lannet Communications, a Greek telecommunications services provider. In doing so we are going to examine the external and internal environment of the organization, by using business models that will help us conduct a SWOT analysis and evaluate Lannet's VMOST in order to reach some conclusions concerning the organization's strategic position. A brief description of the company is given below.

THE CASE

Lannet Communications, who was established in 1999, is a subsidiary of the KLONATEX business group and a member of the Athens Stock exchange in the telecommunications sector. The deregulation of the Telecommunications market in Greece which was initiated on January 2001, has given the option to both residential and corporate customers to choose between Telecom Operators. Lannet Communications was the first Greek company that materialized its interconnection with the public National Telecom Carrier (OTE) in November 2001 and ever since is aiming at capturing leading market share in pre-selected segments which are large corporations, small-medium enterprises, international carriers and residential customers by offering optimal cost and high efficiency.

After the finalization of the merge with Lantec s.a. in December 2003 Lannet's service portfolio includes mainstream fixed and leased line telephony, internet services, bandwidth trading, data communication and virtual private networks deployment. At the end of the first semester of 2003, Lannet's share in the fixed telephony market, including public National Telecom Carrier (OTE), modulated to 4,5% (Lannet Communications Annual Report, 2003) giving Lannet the leading position among the rest of the privately-owned telecom companies. At the end of 2004, the number of Lannet's clients surpassed 161.785, 16.701 of which were corporate clients while the market share modulated to 4, 76% giving thus Lannet the second position among the competition, despite OTE (Lannet Communications Annual Report, 2004).

2. VMOST ANALYSIS/STAKEHOLDERS

2.1 VMOST ANALYSIS

In our attempt to get a better understanding of Lannet's ideology, what is trying to achieve and through which strategy, we first looked into the organization's VMOST. A detailed analysis of our findings is placed in the Appendices but as an overall conclusion we could assume that Lannet's VMOST presents certain drawbacks. The vision and mission although they seem appropriate and realistic, are not communicated properly within the organization whereas objectives are not specific and measurable and tactics do not help in the implementation of the strategy which though seems relevant for the company.

2.2 STAKEHOLDERS ANALYSIS

As we can see from the detailed stakeholder's analysis in Appendix 2, there is a linkage between Lannet's vision, as presented in the VMOST and most of the key stakeholders' expectations and therefore we can assume that the organization is moving towards satisfying them. On the other hand, the founder's expectations are not aligned with the organization's vision and mission while conversely the rest of the top management team is focused on these statements. This contradictory confuses the management team and probably explains what we underlined in our VMOST analysis concerning lack of monitoring and co-ordinating in day-to-day tactics, non specific and measurable objectives and lack of vision and mission awareness to the employees, which as a result do not fully meet their expectations. Finally, it is quite essential that customers expectations are met, but we should pay attention to the fact that according to Lannet's strategy shareholders might need to be patient enough in order to see the return of their investment.

Following in our analysis, we are going to take a look in the external environment of Lannet Communications.

3. EXTERNAL ANALYSIS

In this part we aim to give a thorough