Mckinsey 7s Framework-Telenor
Telenor (First 3 ‘S’ Example)
I did only the first 3 ‘S’ for Telenor analysis. They were strategy, structure and system. “Telenor Group is the incumbent telecommunications company in Norway, with headquarters located at Fornebu, close to Oslo. Telenor Group is mostly an international wireless carrier with operations in Scandinavia, Eastern Europe and Asia, working predominantly under the Telenor brand. It is ranked as the sixth largest mobile phone operator in the world, with more than 172 million subscribers. In addition, it has extensive broadband and TV distribution operations in four Nordic Countries.” – Wikipedia, as of August 5, 2010.
As on August 5, 2010, two of Telenor strategies were to capture growth in three regions (Asia, Central-Eastern European and Nordic), and to undertake Merger and Acquisition (M&A) activities. These strategies were understandable, considering the condition of the economy (global financial crisis) and the commoditized telecommunication service (less ARPU), while telecommunication company required a high fixed-asset. But anyway… I am not talking about the industry.
I looked at the structure of the Telenor organization (as of August 5, 2010). Assuming that the link may be broken in the future, I describe the structure. The highest position was, of course, the CEO, Mr. Jon F. Baksaas. The groups under him were: Asia, Center-Eastern European, Nordic, Finance, Communication and Corporate Responsibility, Human Resources, and Business Development and Research. The Asia, Central-Eastern European and Nordic group showed the merger-and-acquisition-and-consolidation-ready structure. When there was a need for Telenor to acquire a new company, Telenor could easily put the company under the regional group. Telenor could also remove the company with ease. Conversely, Telenor could do the same for its consolidation effort. In addition to that, this structure explained that Telenor closely monitored the performance of these three regions,
I did only the first 3 ‘S’ for Telenor analysis. They were strategy, structure and system. “Telenor Group is the incumbent telecommunications company in Norway, with headquarters located at Fornebu, close to Oslo. Telenor Group is mostly an international wireless carrier with operations in Scandinavia, Eastern Europe and Asia, working predominantly under the Telenor brand. It is ranked as the sixth largest mobile phone operator in the world, with more than 172 million subscribers. In addition, it has extensive broadband and TV distribution operations in four Nordic Countries.” – Wikipedia, as of August 5, 2010.
As on August 5, 2010, two of Telenor strategies were to capture growth in three regions (Asia, Central-Eastern European and Nordic), and to undertake Merger and Acquisition (M&A) activities. These strategies were understandable, considering the condition of the economy (global financial crisis) and the commoditized telecommunication service (less ARPU), while telecommunication company required a high fixed-asset. But anyway… I am not talking about the industry.
I looked at the structure of the Telenor organization (as of August 5, 2010). Assuming that the link may be broken in the future, I describe the structure. The highest position was, of course, the CEO, Mr. Jon F. Baksaas. The groups under him were: Asia, Center-Eastern European, Nordic, Finance, Communication and Corporate Responsibility, Human Resources, and Business Development and Research. The Asia, Central-Eastern European and Nordic group showed the merger-and-acquisition-and-consolidation-ready structure. When there was a need for Telenor to acquire a new company, Telenor could easily put the company under the regional group. Telenor could also remove the company with ease. Conversely, Telenor could do the same for its consolidation effort. In addition to that, this structure explained that Telenor closely monitored the performance of these three regions,