Optus and Tesla Firms’ Business Strategy in the UAE


There is a lot of positivity in the business environment in the United Arab Emirates (UAE) right now, with various companies attempting to survive in the wake of the global financial downturn. This is true for all businesses, including telecommunications companies like Optus and Tesla. To achieve transformation, it is necessary to consider various financial analysis concerns such as macroeconomics variables, governance practices, and ethical considerations. High unemployment and inflationary pressures in UAE and a shift away from the resource sector are vital macroeconomic variables that impact Telstra’s performance and corporate governance when contrasted to Optus. An ethical case involving a rich and powerful customer is considered to provide a more uninterrupted view of auditors’ ethical concerns.

Strategy and Macro Economic Factors

The financial system of the UAE has been plagued by uncertainty over the past few years because of falling commodity prices, rapidly increasing unemployment and underemployment, and a variety of factors in sectors other than the resource sector, among other things (ALBU, 2019). All these macroeconomic factors are distinct in their privilege. The outlook for UAE trade has improved over the past five years due to the higher iron ore price, which reflects increased demand from abroad, particularly from Chinese consumers.

Regrettably, worldwide production has grown, resulting in a reduction in output in UAE and an eventual drop in price. This is a phenomenon that can be observed in various other industries. Unemployment has been increasing due to the under-utilization rate, with staff working for reduced hours, as evidenced by the actual output of less than 2.5 percent recorded in 2018 (Christensen, 2021). Furthermore, the ultimate market growth in the domestic market, which is defined as the difference among inventory items and net exports, was only 1.2 percent, which is a low index. Because of the improvement in companies such as residential construction, the UAE resource sector is slowly becoming depleted.

Furthermore, improvements have been made in service exports over time. This, in contrast to the other two, is a positive indicator that can be used as a lifeline (Guo, 2021). As of June 2018, Telstra Cooperation Limited (TLS) has experienced an 8.4 percent decrease in its earnings per share (EPS). When it comes to organizational development, human resource is an essential factor. Since Telstra’s recruitment rates have declined in recent years, along with a corresponding increase in layoffs, the company’s economic outlook would be insufficient in the world’s current instabilities and competition.

Telecommunications service charges have decreased significantly due to increased competition from other telecom companies such as Optus and Vodafone. As a result, the growth rate has been slowed on several important economic aspects. Finally, because Telstra is a company that is not associated with the UAEs resource sector, it has not taken advantage of the growing non-resource industry markets in the same way that the residential sector and other industries have (ALBU, 2019). This effect occurs in conjunction with decreased human resource availability and unstrategic planning.

Management Governance

Ethics and corporate social responsibility, disclosure and transparency, federal regulations, financial reporting, and differing interests are fundamental corporate governance theories and techniques (Tidd, 2021). Telstra’s cooperative governance has deteriorated significantly, particularly in protecting shareholder interests. For example, in 2018, the company’s chair, John Mullen, publicly expressed his displeasure with the firm’s more prominent investors, a display that revealed the board’s underperformance. Specifically, there was an issue in which Telstra’s small investors were victimized by ambiguous pay scales at the company, with the head honcho shareholders making large sums of money despite the firm’s economic difficulties in this case. While Optus conveyed exponential development and shareholder satisfaction from stockholders’ analyses, the company’s head of government and corporate affairs, Maha Krishnapillai, communicated steady corporate governance structures, which reflected the company’s steady growth.

Telstra’s economic future is in jeopardy due to these issues and other negative aspects, including internal economic factors, unless some senior executives take the initiative and take action. For stakeholder relationships, the ethical intellect of Telstra’s committee is doubtful; this is one of the significant contributors to the company’s current financial difficulties, and its nearest rival, Optus, is conducting well. Optus company presumed and noticeable managerial freedom from SingTel, on the other hand, has observed rapid growth. The gap previously existed between the company and Telstra is closing day after day.

Telstra is gradually losing its ability to attract its client base with outstanding service, its shareholders with accountability and remarkable dividends, and other stakeholders over the long term. The company Optus, as a result, has growth prospects in the UAE markets. Optus’ contextual factors in ensuring good corporate governance have also resulted in a more likeable environment among UAEs due to their efforts. Because of this, the board composition structures of the two companies differ from one another.


The model proposed by the American Accounting Association consists of seven stages that instruct a person to make the right decisions. The first three stages are the facts, identifying ethical issues, and identifying the fundamentals, principles, and guidelines that apply to the case. The final four steps are classifying various alternatives, selecting the best approach that is consistent with the policies, principles, and morals, considering the repercussions of each plan of action, and making the decision (ALBU, 2019). In this instance, the facts reveal that the wealthy customer is paying a lot more for her pension scheme account than she would be if she had chosen ‘WealthBuilder Plus’ or ‘RapidGrow.’ Thus, WealthBuilder Plus is the most advantageous option for her because the spinoff charge is the lowest of the available options.

Choosing between endorsing RapidGrow or WealthBuilder Plus, which has lower continuity fees, puts my firm’s interest in a higher commission from bank B in jeopardy. As an alternative, you could suggest that the customer use WealthBuilder Plus, the least expensive option for her retirement savings plan. Bank B will pay my firm a commission if I direct the customer to RapidGrow. It is, however, in keeping with the accounting values of integrity, transparency, and fairness that putting the customer’s interests first makes sense. For example, accountants are expected to be honest and fair to their clients and the companies they work for, and other stakeholders by the norms, values, and principles.

WealthBuilder Plus’s benefits for both the customer and the company include customer satisfaction that leads to more referrals and an increase in its business outlook and thus its future growth. Again, the senior accountant would have something to say about this. Despite the potential problems, RapidGrowth’s selection would result in more commission by bank B during the short period. The client would be outraged if she learned of this fact, which could harm the company’s business acumen in the long run. Therefore, I’d recommend WealthBuilder Plus to the customer because it’s beneficial to her, and she’s already a client of ours, so it’s a no-brainer. As a result, even if she is wealthy, there is no reason to sacrifice for her sake.

Theories For Analysis

According to strategic management theories, the interpretation of the strategic directions available to an organization can be managed by specifying its objectives and policies, programs, and paradigms for managing strategies and planning actions to achieve those objectives. Different resource allocation models are used to carry out the policies, programs, and plans that go along with them. Alignment models provide a viewpoint of strategies through the execution strategy that drives the entire model, the technology’s capacity as a driver for the business strategy, and all its IT strategies supporting it, for all their IT strategies to help. The theories explained in this alignment model will interpret the organization’s business strategy. The competitive potential will be used to develop new IT capabilities (Chaturvedi, 2020). the service levels that are geared toward building a more comprehensive system for the business.

Porter five forces

One of the most valuable macro tools in business analytics is Porter’s Five Forces Model. Although SWOT analyses focus on the specific industry data and the industry’s analyses, this method looks at the industry’s economy. If you want to know how an industry’s weaknesses or strengths stack up against its competitors, Porter’s Five Forces are used to identify and assess those forces. In determining a company’s long-term assessment, the Five Forces model is mainly used to assess the industry’s competitive landscape. Any economic sector can use Porter’s model to gauge competition and improve long-term profitability

Porter wrote that an industry’s current profitability could be traced back to its competitive forces. In contrast, a better understanding of these forces can help an industry predict and influence future profitability. ‘Strategists should be as concerned about the industry’s structure as they are about their own company’s position.’ As numerous examples demonstrate, Porter’s Forces are applicable to various industries and businesses (Chaturvedi, 2020). A company’s long-term success hinges on accurately identifying the opportunities and dangers that exist.

Rivalry in competition

Telstra is facing intense rivalry from Optus and other incoming players. Optus and incoming industries, which have previously been considered to have more resources at their disposal, are doing well in the industry. The product line of Telstra, which does not have any processing inventions, could be replicated in the future (Chaturvedi, 2020). There is also a threat of the entrance of new businesses into the market. This is hard as it requires a lot of funds to venture into the telecommunication industry, but it is also possible for small enterprises soon.


Once you’ve finished your research and analysis, it’s time to put your plan into action to improve your company’s competitive position. That is why Porter described three standardized strategies that can be adopted in any industry or company at any time. Firstly, Telstra should invest in cost leadership strategies (Chaturvedi, 2020). Secondly, Telstra company should adopt differentiation strategies. To achieve this mission, the company must be highly significant to the competitions, and their competitiveness and values to the public must be significantly improved. Effective sales and marketing were also necessary and extensive research and development. Lastly, Telstra company should adopt focus strategies. Considering this, for a business to be successful, it must target specific niche markets for its products. It necessitated an in-depth knowledge of the market, vendors, customers, and competitors.

Ansoff matrix- product/ market strategy

Anyhow known as Product-Market broadening Grid, Igor Ansoff’s Ansoff Matrix could be a vital planning device for drawing up an item and market development plan. In various development opportunities, it’s a business examination strategy that’s extremely useful. However, a company’s success depends on its current and expected market and product, which the matrix best embodies, for example, the business getting a consideration (Guo, 2021). The product and the market are two parts of a matrix that, when combined, give rise to four different development options.

Market penetration

A development strategy in which the company aims to sell an existing product into a current market segment to boost the overall share of the pie. For this to be possible, the company needs to make a lot of deals with these clients or find new customers in the established market if the product isn’t particularly dynamic (Doan, 2021). The cost of publicizing and private corporate greed is enormous for penetration. A forceful limited-time crusade is required for a long-term industry, supported by a rating system that attracts many customers.

Market development

Market improvement occupies the second quadrant of the Ansoff Matrix. Companies use this procedure to sell their current products to new markets. It’s a system for determining and developing new markets for an organization’s existing products. This approach is significantly less secure than the entry method because the company is entering a replacement market where managers lack adequate information (Guo, 2021). This is done in two ways: by expanding the company’s business division, hiring more salespeople, or diversifying. Minor changes to the item, like new packaging or different measurements, can expand deals and attract new markets.

Product development

Product development is a strategy in which a company seeks to expand its market share by introducing a replacement product within the already established market. Even if the company stays in the current market, it will increase the variety of products to grow and enhance; for example, if a new product yields excellent returns, other deals can increase the market share. Interest in R&D and deed rights to manufacture another person’s product can lead to product advancement. A company’s entry strategy into a new market with a new good or service is one form of diversification (Lipinsky, 2020). A new line of products or a new market is created or secured by the company under this system.


Businesses are an essential part of economic growth, and careful efforts must be made to achieve success in this area. There has been an increase in commodity prices and unemployment rates in UAE and a shift from the resource sector to industries like residential construction. However, Telstra’s performance compared to its rivals has been impacted by the first two factors. Telstra has seen a decrease in board transparency, precisely the opposite of Optus. For ethical reasons, it is preferable to prioritize the customer’s interests over the commission in favour of bank B’s option, which would result in fewer long-term benefits like customer referrals and a better business outlook. Porter five processes were used to analyze the strategies needed for Telstra’s company to improve.

Reference List

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