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The case discusses the reorganisation of strategic business units (SBUs) carried out by the Australian telecom giant Telstra Corporation (Telstra) between 1997 and 2003. Telstra''s SBUs were reorganised six times in eight years. The case describes each of the six reorganisations in detail and examines their implications for Telstra. It discusses the impact of these structural changes on the financial performance of Telstra. The case also elaborates on the major initiatives taken by Telstra to face the competitive market situation since 1997 when Australia''s telecommunications industry was deregulated. The case is designed to help students: (1) understand the rationale behind the frequent reorganisation of SBUs in large corporations in the telecom industry; (2) evaluate the costs and the consequences of the frequent reorganisation (often accompanied by changes in top management) of large multinational corporations; (3) examine whether frequent changes in an organisation''s structure in response to changes in the business environment, can help improve its performance and profitability; and (4) study the attempts of corporations in the telecom industry to adjust to increasing competition and changing business opportunities and challenges. The case is intended for MBA/PGDBA students as part of the strategy and general management curriculum. The teaching note does not contain an analysis of the case.