Business at work
BT is a public limited company. The major difference between private and public limited company is that the public version has its shares available to the public for anyone to purchase. It is very expensive going public because it costs a lot to have shares quoted on the stock exchange, the company must apply to the stock exchange council, the company needs to arrange merchant banks to handle paper work, selling shares is a risky business because the stock exchange has good and bad days and it cost a lot to advertise.
An advantage could be that large amounts of capital can be raised very quickly and that the company is always in the in the media so it gives the company free media coverage. A disadvantage could be that as more shareholders come in the business the company could be lost by the original owners, which would give them less control and as the company is always in the media, if the company does something bad then everyone will know and that if shareholders are unhappy with the business people can be voted out.
BT is one of Europe’s leading providers of telecommunications services. Its main activities include local, national and international services, broadband and Internet products and services and IT solutions. BT serves over 21 million business and residential customers and has over 28 million exchange lines and it provides network services. BT creates value for shareholders by being the best provider of communication services for everybody in the UK and business customers in Europe. BT consists mainly of BT retail, BT wholesale, BT global services and BT open world.
BT retail is the largest communication provider by market share; it supplies a wide range of communication products and services. It has three main customer groups, residential customers, business and major business. It has over 19 million consumers and over million business customers. BT wholesale provides networks services in UK as well as other BT business. Its main strategy is to upgrade to next generation. BT global services offer solutions to customers worldwide. Global services have 50 percent of people based outside the UK serving large business worldwide.
BT open world is one of UK’s leading Internet services providers. It provides broadband and narrowband services to more than1. 7 million businesses and consumer customers. Other businesses that make up BT are BTgroup PLC and BT exact, which specialize in telecommunication engineering and network design and its systems. BT mainly focuses on seven objectives. To deliver high level of customer satisfaction and to reduce the number dissatisfaction each year. To achieve profitable growth and capital expenditure while reducing capital expenditure.
To put broadband at the heart of BT and to expand the market for broadband services and create a media enabled network. To provide solutions to business in Europe and other value added services. To place all UK networks under single management structure and to limit investments in data platforms. To use the BT brand to move into broadband services and related markets such as communication solutions and business mobility services for major business customers and all the above objectives delivered by skilled and motivated people.