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TELUS: ETHICS AND CELLPHONE TOWER SITES

Prepared for Christopher Barrett PRINCIPLES OF MANAGEMENT 1120 Northern Alberta Institute of Technology Edmonton, Alberta

Prepared by Pawandeep Kaur, Khushneet Kaur, Mandeep Kaur, Harsimran Kaur First Year Business Student: Section A07

March 25, 2019

Pawandeep, Khushneet, Mandeep, Harsimran Section A07

Table of Contents Executive Summary.........................................................................................................................2 Introduction……………………………………………………………………………………….3 Part 1: Problem identification..........................................................................................................3 Part 2: Priority Decisions………………………………………………………………………….4 Impact of the decision on the organization and stakeholders…………………………………5 Part 3: Factors influencing managerial decisions............................................................................7 PEST analysis..............................................................................................................................7 Porter’s five force........................................................................................................................8 Stakeholders’ analysis................................................................................................................10 SWOT analysis..........................................................................................................................11 Part 4: Reasonable alternatives......................................................................................................13 Part 5: Best option for the organisation.........................................................................................14 Conclusion.....................................................................................................................................16 Reference.......................................................................................................................................17

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Pawandeep, Khushneet, Mandeep, Harsimran Section A07

Executive summary TELUS Corporation is one of the important telecommunication organisations in Canada. Recently, the company is facing severe threat regarding violation of the environmental framework that turned into protest among the local communities. In this regard, this report aims to deal with the issue and recommends possible solution that can be effective. Our analysis will include problem identification, priority decisions, the impact this decision will have on organization and stakeholders, SWOT analysis, PEST analysis, Porter’s 5- Force analysis and stakeholder analysis. Within the first section of the paper, problem within the TELUS Corporation was identified. In the second section, we analysed what factors are important for managers to consider making this decision. In the final section, we discussed possible solutions and eventually gave a recommendation for the best option. Moreover, for a better understanding of the Canadian telecom market and emphasising on the ability of TELUS Corporation to cope with the possible solution. In this regard, an action plan is also set in order to deliver effective measure for the resolving the issue. After conducting theses analysis, we would advise TELUS Corporation to use the optic fibre cable for their telecom towers. We believe this is the optimal solution which would result in the greatest long-term benefits to regulators, customers and society.

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Pawandeep, Khushneet, Mandeep, Harsimran Section A07

Introduction TELUS Corporation is one of the three largest national telecommunication companies of Canada. For a business organization, sustainability and ethical business orientations are considered to be one of the major aspects. In this regard, putting emphasis on the environmental considerations and affecting local communities have also high value in order to sustain the business activities. In this report, we will be analysing the case study: TELUS: Ethics and Cellphone Tower sites, which aims to understand the role of the TELUS and its ethical business practices. This research is also going to identify the issues and analyse it in the light of effective action planning. Our analysis will include problem identification, priority decisions, the impact this decision will have on organization and stakeholders, SWOT analysis, PEST analysis, Porter’s 5- Force analysis and stakeholder analysis. With this analysis, we will deliver a strong recommendation to TELUS Corporation based on which decision they should make.

Part 1: Problem identification Telecommunication companies needed to install cellphone towers to provide cellphone services. As a telecommunication organisation, this company is also entitled to set up towers in different locations. However, the Canadian regulation stated that the telecom tower must be build up at a distance of 100 meters away from the communities. In case of TELUS Corporation, the organisation, chose a new location of University of Calgary to set up telecom towers near the West Campus Child Care Centre, which includes the major problem. The location TELUS Corporation has chosen is within 90 meters of the West Campus Child care centre that comes under the list of “discouraged locations” under the City of Calgary’s Telecommunication Antenna Structures Siting protocols. This issue is important because these cellphone towers send 3

Pawandeep, Khushneet, Mandeep, Harsimran Section A07 radio frequency waves, which are considered to be carcinogenic. It created a vulnerable situation for local communities and the parents to protest against the adverse impact of telecom tower near the communities. According to Roda and Perry (2014), the radio frequencies coming out in form of electromagnetic spectrum can result fatal health issues even cancer. In fact, the impact on the children is more fatal as their brain absorbs more waves in compare to the adults ( Sharma & Lamba, 2017). Therefore, it should be a great concern for TELUS Corporation to emphasis on the environment and community issues besides expanding business robustly. In this regard, it is important for the organisation to set up towers away from 100 meters of the local communities. In this case, TELUS Corporation established the tower within the 90 meters radius of local school and college. It is essential for the organisation and the stakeholders to mitigate immediately with relocating the telecom towers outside the local communities.

Part 2: Priority Decisions When the TELUS Corporation faced protests from parents, priority decisions needed to be made. As their tower near the property of University of Calgary comes under the list of “discouraged locations”, TELUS Corporation would operate in a socially responsible manner. Priority decisions considered are as follows: 1) Relocation of the tower 2) Mutual agreement with the local community 3) Using eco-friendly technology Many factors were considered in the decision-making process: First and foremost, cost of the company needed to be considered when making the decision to change. TELUS Corporation can relocate the tower; however, it could incur further cost because

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Pawandeep, Khushneet, Mandeep, Harsimran Section A07 the tower is already installed, and the installation of a cellphone tower cos approximately CA $ 150,000- $350,000 (Foster, 2017). Secondly, they should consider the concern of the parents. As no one in the area was consulted, which gave rise to a protest against TELUS Corporation. Opposite to that, according to Bart Becker, vice-president of facilities with the University of Calgary, there are already eight towers and four cellphone antennae on campus, and it is not standard practice for the university to hold public consultations prior ton installing towers (The Canadian Charger, 2015). In this regard, the decision of mutual agreement could be better, however, this may not be possible if one of the parties fail to negotiate. The next decision to be considered was to use eco-friendly technology. For this, TELUS Corporation can use optic fibre cable for the cellphone towers. This would be a reasonable alternative for TELUS Corporation to increase business as well as operate in a socially responsible manner. This decision, however, could bring some issues with the cists associated. The impact this decision will have on the organization and stakeholders: Organization Pressure from regulatory bodies and society at a large for environmental sustainability could be mitigated, if TELUS Corporation could use the optic fibre cable. This technology can be helpful because TELUS Corporation have already installed the tower that is very difficult to relocate. However, the need for optic fibre cable for the installation of towers significantly contribute to company expenses. The decision to switch to optic fibre cable may look non-negotiable to TELUS, however, it will put TELUS at the forefront of the industry. As costs related with optic fibre cable are passed onto consumers, TELUS would see mitigated expenses in the future. 5

Pawandeep, Khushneet, Mandeep, Harsimran Section A07 Stakeholders The decision to switch to optic fibre cable would affect the TELUS’s stakeholders both positively and negatively. When making the decision to switch to optic fibre cable, TELUS corporation must educate stakeholders on the business pressure from the parents which create a demand for either relocating or using other technology for the tower near the day care. University of Calgary As the sole shareholder, the University of Calgary would receive the major benefits for the installation of tower. This would increase the efficiency of signals received by the students and faculty members. The benefits received by the residents of University of Calgary would further increase the support of University in integrating smart technologies. Customers Customers are the most significant stakeholders in case of telecommunication companies. In this case, students and faculty members are the main consumers for the TELUS Corporation. Switching to optic fibre cable and activating the TELUS tower would result in high-quality signals received by the consumers, resulting in benefit in every aspect of telecommunication as well as in case of emergency. Parents On of the stakeholders that will be negatively impacted with this decision would be the parents of children. Although TELUS would switch to optic fibre cable, however, parents may still be concerned about the health of their children. They would be concerned due to the emission of RF waves from the tower. 6

Pawandeep, Khushneet, Mandeep, Harsimran Section A07 Children The min stakeholders that will be negatively affected would be the children, which are described as a group of particularly vulnerable stakeholders. This is because RF waves cause more damage to children than adults due to the structure of their brain, which is more absorbent than adults.

Part 3: Factors influencing managerial decisions PEST analysis Elements Political

Explanation  Political stability index in Canada has an average rate of 1.08 which means the power of the government is high.  Moreover, the government effectiveness can be marked as 1.83 that represents the efficacy of the government to procure effective measures.  The quality of regulation is of an average value of 1.66 points connotes the importance of the regulation in doing business in Canada.  As far as the economic growth is concerned, it can be stated that Canada witnesses a steady growth of 3.23% (Arthurs, 2018).  Inflation in the Consumer Price Index can be estimated at an average of 3.83% in recent times that highlights volatility in the Canadian consumer market (Westerlund, Leminen & Rajahonka, 2014).  The social identification highlights average life expectancy in Canada is growing at a rapid pace with an average percentage of 76 years (Lehoux et al., 2014).  The ratio between male and female students in secondary education can be identified with a value of 1%. Therefore, balance in education irrespective of gender is a significant feature in Canadian society

Economic

Social

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Pawandeep, Khushneet, Mandeep, Harsimran Section A07 (theglobaleconomy.com. (2019).  In technology and innovation, Canada ranks 15th in the Global Innovation Index. As a result of that advanced technology with proficiency in the process of making effective environmental measures is a key of success for the business organisations in Canada (theglobaleconomy.com. (2019)).

Technological

Porter’s five force Elements Threat of new entrants

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 Bargaining power of suppliers

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 Bargaining power of buyers

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Threat of substitutes

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Rivalry among existing competitors

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Explanation Threat of new entrants in the Canadian telecom market is highly possible because of the relaxation of government (Haider et al., 2015). It is essential for TELUS Corporation to implement new technologies to reduce risks and environmental degradation. The existing telecom market of Canada is heavily dominated by three telecom giants like Rogers Communication, TELUS and CE Inc. Therefore, the suppliers get enough options to supply raw materials in terms of energy resources and technology. Telecommunication sector in Canada is highly competitive and lists of organisations are providing services. As a result of that it symbolises high power of the customers to switch as per their needs. The telecom market in Canada is highly volatile as the existing telecom communication industry is full of telecom companies (Shepherd, Taylor & Middleton, 2014). Moreover, introduction of advanced technologies also helps the organisations to formulate better and environment friendly substitutes to deal with the change in the market. Due to immense competition in the market, it becomes a significant factor for the organisations to bring healthy competition

Pawandeep, Khushneet, Mandeep, Harsimran Section A07 among the companies.  The open and flexible market entry is also helping the telecom companies to settle the business initiatives unique in order to sustain in the market profitably.

Stakeholders’ analysis Stakeholder’ s name

Responsible persons

Impact

Influence

Organisationa l managers

Managers High from different departments

Moderate

Suppliers

Different Supply agencies

Medium

Low

Customers

Different customers

High

High

Community

Local communities

High

High

Top management

CEO, CFO Medium and other top management

Medium

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Importance

Strategy to engage the stakeholder to Monthly meeting and discussion

Essential take important decision making Establishing an important measure to continue the business efficiently. As TELUS Corporation is a servicebased industry therefore customers are considered to be the most important part of the business orientation. To provide sustainability in business dominantly.

General meeting and feedback meetings in a half-yearly tenure. Open feedback forms and customers satisfaction management

Campaigns and development programs for community development. Helps out in Managerial meeting important decision

Pawandeep, Khushneet, Mandeep, Harsimran Section A07 making

SWOT analysis

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Strengths Strong brand portfolio is identified as one of the key aspects for TELUS Corporation. Good returns and capital expenditure strengthens the revenue system of TELUS Corporation. Good communication with the suppliers is also an important facet for the organisation to sustain in the highly competitive market of Canada. Successful track record in terms of integrating complimentary firms through merger and acquisition are referred as one of the significant roles of the TELUS Corporation. Understating the importance and value the market flexibility is another key determinant for the success of the organisation. It is associated with effective and relevant marketing strategies where the organisation tries to develop more agile framework for intense market capitalisation. Weakness The profitability ration and net contribution percentage of TELUS are below the average. Lack of effective financial planning cause further obstacle for the development of expected profit for the organisation. Failure to address challenges regarding the potential new threats into the market leads the organisation to a vulnerable situation. Lack in product diversification and introduction of unique and innovative products create several problems for TELUS Corporation. The community engagement program is also not effective enough to procure better strategic advantage for the organisation in the highly competitive market of Canadian

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Opportunities New business policies can be an effective measure for the organisation to refurbish its market capitalisation more extensively. Recession and slow growth rate in the Canadian telecom industry are considered to be an important aspect for TELUS to bring new customers into the target customer index. Introduction of new technologies and cost effectiveness can be a new scope for TELUS to compete in the market effectively. The green initiatives will facilitate further advantage for TELUS Corporation to ensure its business activity aligned with the government procedures. Dilution of competitors’ advantage will formulate better strategic benefit for TELUS to encapsulate the market robustly.

Threats  Rising environment protection leads to more government concerns that can curb down the business opportunities for TELUS Corporation.  Recent violation of the environmental standards further perturbs the image of the organisation.  Changing nature of the consumer behaviour through the incorporation of online facilities creates more obstacles for the organisation.  Failure in community engagement and development ushers a new threat for TELUS Corporation.

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Pawandeep, Khushneet, Mandeep, Harsimran Section A07 telecom sector.

Part 4: Reasonable alternatives In this regard, there are three possible decision making that can mitigate the issue effectively. The decisions are as follows, 

At first, it will be effective to relocate the existing tower to a better distance so that it does not affect the community. As a matter of fact, it is a very important decision making on behalf of the organisation that contributes to the development of community engagement and respect the regulatory aspects. However, the possible drawback can be stated as this relocation can drain huge expenses and identified as a serious threat to the cost-effective mechanism of the organisation.

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Secondly, rendering mutual agreement with the local community will be an effective decision making for TELUS Corporation. A mutual argument where both the party can share their point of view and take a mutual decision so that both the party will get benefits. On the contrary, this decision can also get threat if both the party fail to derive a common strategy.

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Thirdly, implementing cutting edge technologies is considered to be an important aspect for TELUS Corporation to sustain in near future. In this regard, using optic fibre cable is an important step for the organisation to foster eco-friendly attitude. However, the technological measure requires great number of skilled workers and it can increase the exp...