Research Paper on:
Tough Trading Circumstances and British Telecom's Financial Strategy

Unformatted Sample Text from the Research Paper:
projections may help, but even large companies have found that in harsh economic conditions it is harder navigate in the sea of corporate survival. British Telecom (BT) is a company  that has seen trading conditions alter dramatically over the last few years and has had to develop strategies in order to deal with the situation. In looking at the  2002 annual report there is a strong indication of the direction the company is taking as the way in which the strategy has reflected the needs of the current harsh  economic environment. This has also been complicated by the lack of growth that had been projected within the telecommunications markets and increased debt taken out to fund that growth,  as seen with the third generation licences bids. The strategy is one which takes into consideration the different conditions. The emphasis is stated with the main strategy statement "BTs  strategy is to create value for shareholders through being the best provider of communications services and solutions for everybody in the UK, and for corporate customers in Europe, achieving global  reach through partnership" (BT, 2002). The main area of concern is stated as customer concern, but under this is the statement that the issue of financial discipline. The issue of  financial discipline may be seen as key to the companys survival, and it is the financial strategy that will be focused upon in this paper. BT had undertaken  a rapid growth strategy, with the development of Cellnet as a subsidiary company and the desire to maintain a dominant position with the relaxation of the OFTEL rules. This has  resulted in the growth being funded by debt. The debt structure of the company can be seen reflected in the strategy that has created it as well as the