The dynamics behind Consistency: Case study on NTT Group and Deutsche Telecom

Sammanfattning: The main aim of this thesis is to investigate the implications and dynamics behind consistency between individual resource allocation decisions and corporate strategy concept. The telecom industry, a high-velocity environment going through an extensive deregulation process, is put under the magnifying glass. Japanese telecom giant NTT Group is compared to its German counterpart Deutsche Telekom. Potential antecedent factors in the strategic decision-making process to consistency are studied. It is also examined whether there is a direct interplay between consistency and economic performance. This is carried out in order to get a better understanding of the concept of consistency. A better perception of consistency could help managers improve their understanding of formulation and implementation processes of corporate strategy and get better in timing and creation of new corporate strategies. Looking at consistency could also support stakeholders with valuable information of investment opportunities. The approach used in the thesis is the deductive method. By studying a theoretical framework, hypotheses on factors influencing consistency have been developed. The data used is derived through longitudinal case studies of NTT Group and Deutsche Telekom. All important resource allocation decisions over a specified time period are codified into a Resource Allocation Database at the University of St. Gallen. The hypotheses are then tested by analysing the codified data with regression and correlation analysis methods.