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Case Analysis

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CASE ANALYSIS

Boom and Dust in Telecommunication

I. What should the managers do to avoid the impact of the possible future crisis that may cause the Telecommunications firm to fail or to be bankrupt?
II. Michael O’Dell stated that data traffic over the internet was doubling every hundred days which implied a growth rate of 1000% a year. Furthermore, there was not enough fiber optic capacity and the demand will outstrip supply for the foreseeable future. Due to this, many companies had rushed into the business.

But in 1988, Andrew Odlyzko, an internet researcher at AT&T labs, conducted a careful analysis and concluded that growth was much slower and only a 100% a year. But only few companies paid attention to him and it turned out that Odlyzko was right and many companies tumbled into bankruptcy.

III. Courses of Action A. The managers should have look on to every possibility that could have a big impact on the firm and make a contingency plan and crisis management plan on every theory or on every possible crisis that may occur if the present analyzation that is being followed have gone wrong.
The advantage of this action is that the firm is ready to any possible changes that may occur in the future, while the downside of this is that the time used to prepare a plan may go to waste if the crisis that is being prepared for is proven wrong.

B. Snob the other people’s analyzation or research and instead stick to what it is being tested and just do a crisis management plan to overcome, if there will be, the future crisis that the firm may face.
This could be an advantage in terms of time. The firm may focus more on running the business. But this will also come with an disadvantage. This may cause failure on company if the analyzation , which is contradictory to the present one is proven correct. Also may lead to bankruptcy....

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