Abstract

The case discusses the reorganization of strategic business units (SBUs) carried out by the Australian telecom giant, Telstra Corporation (Telstra) between 1997 and 2003. Telstra's SBUs were reorganized six times in eight years. The case describes each of the six reorganizations in detail and examines their implications for Telstra. It discusses the impact of these structural changes on the financial performance of Telstra. The case also elaborates on the major initiatives taken by Telstra to face the competitive market situation since 1997 when Australia's telecommunications industry was deregulated.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Corporate Restructuring
• Deregulation of Telecom Industry.

Keywords

Telstra Corporation of Australia, Restructuring of SBUs, Telstra's Growth Strategy, Organizational Structure, Telecom Industry in Australia, Deregulation of Telecom Industry, Changes in External Business Environment