Introduction Over the recent past, the business environment has become very dynamic. The changes in the business environment, have forced businesses to be more concerned with developing their strategic direction. Strategic direction refers to an organization’s strategic intent (Simons, 2000, p.45). This paper analyzes the strategic direction of Telstra by taking into account a number of issues such as the organizational tensions facing the firm and how it can confront them. Identify and explain the strategic direction of the organization According to Horngren, Datar, Foster, Rajan, and Ittner (2009, p.1), an organization’s strategic direction is illustrated by its vision. Strategic vision defines the organization’s purpose and direction. It also outlines the organization’s mission and goals. An organization’s strategic direction also incorporates the firm’s culture. By establishing a strong organizational vision, an organization is able to establish a link with the company’s values hence increasing the probability of achieving each of the predetermined goals. Strong vision contributes towards increased participation, enhanced communication, and employee commitment. Horngren et al (2009, p.1), further asserts that an organization’s strategic vision is critical in an organization’s effort to ensure that it is strategy-focused. Telstra’s vision entails improving how people live and work. On the other hand, the firm’s mission entails providing its customers with diverse telecommunication technologies that are easy to operate and result in maximum customer value. The firm is also committed to serving its customers more effectively compared to its competitors. Telstra is also committed to developing a comprehensive understanding of its customers (Telstra, 2012, para. 1-3). Telstra has also integrated a set of values in its strategic direction. The core values which guide the firm’s operations entail ensuring effective service and respect for all stakeholders and developing a high level of trust and integrity. With regard to integrity, Telstra’s management team is committed to ensuring that it operates in an ethical and honest manner. One of the ways through which the firm intends to achieve integrity in its operation is by complying with the law. Telstra’s management team is also committed to nurturing teamwork and accountability within the firm. Telstra’s strategic direction is also well illustrated by its culture. Over the years, Telstra has developed a strong organizational culture. The firm has taken into account three main categories of culture. These include relating to being customer-driven, increasing the rate of collaboration and innovation, and the winning culture. To become customer-driven, Telstra is committed to understanding its customers’ needs, ensuring reliability, and ensuring that it offers its customers ready products, being courteous, and keeping its promises. How strategic direction can be used in the context of the organizational tensions Telstra is experiencing a number of tensions for example the need to balance its short-term results against its growth opportunities and long-term capabilities. Telstra has to ensure that it establishes a balance between its long term investment and short term profit demands. In order to achieve this, Telstra has diversified its operations by owning other firms which include Foxtel and HFC. The second tension that the firm is facing arises from new legislation within the Australian telecommunication industry. The legislation requires firms to cease from being an owner and ser