...Prestige Telephone Company Question 1: Appraise the results of operations of Prestige Data Services (PDS). Is the subsidiary really a problem to Prestige Telephone Company (PTC)? Consider carefully the differences between the reported costs and costs relevant for decisions that Daniel Rowe is considering. The current data indicate that the PDS is in operating loss. And going by the presented data, yes, PDS is a problem to PTC at this point of time. And this in spite of many major costs being absorbed by PTC while charging a sum towards corporate services to PDS. However the way data was collected, costs calculated and presented could be different from the actual reality. And moreover the trend in the 3 months is that the commercial sales is going up (marginally though) and losses are reducing. Also it is reported that PDS is operating with un-used capacity (which might be another reason for the projected loss). Though PDS is in loss currently, (a) a re-structuring of the cost accounting methods, (b) more marketing activities to increase sales and thereby using the free capacity available, (c) reducing the staff count by reducing the number of shifts, could see PDS being profitable in the long run. Shutting down vs. restructuring PDS The decision has to be based on the ROI and the opportunity cost. By closing down PDS, the lost (customer) sales are the opportunity cost. But the short term benefits could be from the sale of equipment, savings from resource cost, rental...
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...PRESTIGE TELEPHONE COMPANY In deciding whether to continue, discontinue or sell a subsidiary company, we should consider the benefits and disadvantages of each option. We gauge the contribution of a subsidiary not only by looking at its profitability but also the advantage it can give to the parent company particularly in reducing its costs. Having a low profitability or even a net loss does not necessarily mean that the decision of retaining the subsidiary is wrong. Separating the relevant costs from the irrelevant costs helps the parent company determine how the subsidiary can be a factor in its overall operation. We may not know, but continuing could most likely be the best decision. Identifying cost objects and cost drivers are essential in determining the price, profit and breakeven levels of a firm. Differentiating fixed costs from the variable costs is also very important. Subtracting the variable cost from the selling price (or total revenues minus total variable costs) will give us the contribution margin which “contributes” to recovering the fixed costs, and the excess of which will increase the operating income of the company. Cost-Volume-Profit (CVP) analysis is very helpful in making sound business decisions for the short term, as well as for long-range planning, particularly in this case for product features and pricing. For a company to avoid operating losses, like in the case of Prestige Data Services, the managers should be interested in looking...
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...Case Analysis: Prestige Telephone Company Liam Hennessy, Xinyi Zhang, Yuan Chai, and Anthony Saba 1. Reasons for Continuing Losses Prestige Data Services’ main problem is that they have too many available hours that are not generating any revenue. In the first quarter of 2003, they have an average of 176 available hours per month of available hours. Its operations exact a huge amount of fixed costs to cover. If they could find more commercial customers for the available capacity, they could increase their commercial sales revenue by as much as $140,880 (176*800). In addition, they are also creating unnecessary expenses by having to pay all kinds of expenses during these unprofitable hours. 2. Breakeven Point of Commercial Sales & Evaluation of the Suggested Options (Questions #2 and #3 attached to the case) Before starting to answer these two questions, it is more than necessary that we get the formula for Prestige Data Services’ net income (loss), even they will not be very exact. If we combine the data in each category in Exhibit 2 (such as Intercompany sales, Rent, and Operations, etc.) as a whole, and let a = Intercompany revenue hours, and b = Commercial revenue hours, then we can derive the following revenue and cost formulae of Prestige Data Service in each month: i. Revenues Intercompany revenues = $400a Commercial revenues = $800b Total revenues = $400a+$800b+$0.055(400a+800b) Other revenues = $0.055(400a+800b) ...
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...McDermott Company Method of Least Squares McDermott Company is developing a cost formula for its packing activity. Discussion with the workers in the packing department has revealed that packing costs are associated with the number of customer orders, the size of the orders, and the relative fragility of the items (more fragile items must be specially wrapped in bubble wrap and Styrofoam). Data for the past 20 months have been gathered: |Month |Packing Cost |Number of Orders |Weight of Orders |Num. of Fragile | | | | | |Orders | |1 |$45,000 |11,200 |24,640 |1,120 | |2 |58,000 |14,000 |31,220 |1,400 | |3 |39,000 |10,500 |18,000 |1,000 | |4 |35,600 |9,000 |19,350 |850 | |5 |90,000 |21,000 |46,200 |4,000 | |6 |126,000 |31,000 |64,000 |5,500 | |7 |90,600 |20,000 |60,000 |1,800 | |8 |63,000 |15,000 |40,000 |750 | |9 |79,000 |16,000 ...
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...Chapitre 2 La diversité dans les organisations Dans ce chapitre , nous observerons de quelle manière les organisations s’efforcent d’exploiter au maximum les contributions potentielles d’un effectif diversifié . Nous montrerons aussi comment les caractéristiques démographiques , telles que l’appartenance ethnique et les différences individuelles en termes de compétences , influencent les performances et la satisfaction de l’employé . 1. La diversité La diversité est devenue en quelques années un enjeu important pour l’entreprise La diversité est un outil de communication pour l’entreprise qui comprend que les pratiques et les attentes de ses clients changent et se diversifient elles aussi . Enfin , les recruteurs et les gestionnaires de carrière mesurent progressivement l’intérêt de jouer la carte de la diversité pour attirer les talents , manager les compétences et optimiser les potentiels . Nous ne sommes pas tous pareils . C’est une évidence .Mais les managers oublient parfois qu’ils doivent reconnaître et exploiter ces différences pour tirer le meilleur de leurs employés . La gestion efficace de la diversité offre à l’organisation une capacité accrue d’accéder au vivier de compétences , d’aptitudes et d’idées le plus large possible . Les managers doivent aussi prendre acte que les différences entre les gens risquent d’entraîner des difficultés de communication , des malentendus et des conflits . Nous découvrirons ici comment les caractéristiques individuelles...
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...Prestige Data Services Cost Volume Profit Analysis The following equation has been used for the purpose of this analysis: (Intra-company sales + commercial sales) = Fixed Cost + Variable Cost/hour * time (in hours) To work out only the contribution of intra-company and commercial computer use, “Other commercial sales” has been removed from the revenue. To counter that, “Materials cost” has been removed from the costs; three month average for these parameters is approximately equal. Fixed Costs = $212939 Rent ($8000), Custodial Services ($1240), Computer Leases ($95000), Maintenance ($5400), Computer Equipment Depreciation ($25500), Office Equipment and Fixtures ($680), Fixed component of Operations (6*$3600 = $21600), System development and maintenance ($12000), Admin ($9000), Sales ($11200), Sales Promotion ($8083), and Corporate Services ($15236). Variable Costs = $29/hour Variable component of Operations ($24 per hour), Power ($5/hour) – calculate from March power cost divided by March computer use, assuming only billable computer use is to be used for this variable cost. Revenue = $82000 + N* $800/hr (where N is number of commercial sales hours) Intra-company sale of $82000 per month at $400/hour translates to 205 intra-company sales hours per month. Hence, for breaking even: $82000 + $800 * N = $212939 + (205 hours + N) * $29 This gives us N = 177.54 hours, and gives us Break even revenue of $142032.68. Thus, to be run as a viable business...
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...AN ANALYSIS: HTC, THE INDUSTRY AND TAIWAN GROUP PROJECT JAPAN & THE FOUR ASIAN TIGERS SMARTPHONE TABLE OF CONTENTS INTRODUCTION ......................................................................... 3 1 Taiwan's Economic History ............................................................ 4 2 Impact of Globalization on Taiwan .................................................. 5 3 PESTEL- Analysis of Taiwan .......................................................... 6 3.1 Political Aspect ............................................................................... 6 3.2 Economic Aspect ............................................................................. 6 3.3 Social Aspect .................................................................................. 6 3.4 Technological Aspects ...................................................................... 7 3.5 Environmental Aspects ..................................................................... 7 3.6 Legal Aspects ................................................................................. 8 4 Financial Markets of Taiwan .......................................................... 8 4.1 Taiwan Stock Exchange .................................................................... 8 4.2 The Bonds Market ........................................................................... 9 4.3 The Inflation Rate in Taiwan .............................................................. 9 5 The Smartphone...
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...Comparative analysis of service quality of GP with other private Telco service providers in Bangladesh A COMPARATIVE ANALYSIS OF SERVICE QUALITY OF GRAMEENPHONE WITH OTHER PRIVATE TELECOMMUNICATION SERVICE PROVIDERS IN BANGLADESH by Md. Fuad Al Hassan ID: 0720053 An Internship Report Presented in Partial Fulfillment Of the Requirements for the Degree Bachelor of Business Administration INDEPENDENT UNIVERSITY, BANGLADESH April 2012 Comparative analysis of service quality of GP with other private Telco service providers in Bangladesh A COMPARATIVE ANALYSIS OF SERVICE QUALITY OF GRAMEENPHONE WITH OTHER PRIVATE TELECOMMUNICATION SERVICE PROVIDERS IN BANGLADESH by Md. Fuad Al Hassan ID: 0720053 Has been approved April, 2012 Mr. Md Sohel Islam Senior Lecturer School of Business Independent University, Bangladesh Comparative analysis of service quality of GP with other private Telco service providers in Bangladesh April 28, 2012 Mr. MD. Sohel Islam Senior Lecturer, School of Business Independent University, Bangladesh. Dear Sir, It is a great pleasure and honor for me to submit my internship report “A comparative analysis of perceived service quality of Grameenphone with other private telecommunication service providers in Bangladesh. I am submitting this report as a part of my internship in Grameenphone. This report will help the organization to find out the customers perception of the service quality comparing to the other telecommunication...
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...CUSTOMER SATISFACTION AND CUSTOMER RETENTION OF TELECOMMUNICATION COMPANIES IN BANADIR REGION BY Open University of Malaysia CUSTOMER SATISFACTION AND CUSTOMER RETENTION OF TELECOMMUNICATION COMPANIES IN BANADIR REGION Project Paper Submitted in Partial Fulfillment of the Requirement of the degree of Master of Business Administration ABSTRACT After the collapse of the central government in Somalia, the telecommunication industry was almost dismantled in the period (1991-1993). Since 1993, the telecommunication industry in Somalia has grown many folds; new companies joined the market to reap the potentials of this growing industry. Companies worked hard to introduce more innovative products to satisfy, attract and retain customers. This study seeks to describe the relationship between customer satisfaction and customer retention of Hormud and Nationlink, mobile phone operators in Mogadishu, Somalia. The method used was descriptive correlation design. Customer satisfaction indicators were: price, call clarity, and value-added services. Customer retention is indicated by: intention to repurchase, positive word-of-mouth, and patience towards price. In the descriptive analysis section, customer retention was low on all aspects of: intention to repurchase, positive word of mouth, and patience towards price. The results also showed that customer...
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...v.2.1 Introduction Back in late eighties while I was fresh out of college, I had a job as a sales rep for a major telecommunications company. One of my largest clients had called me into a meeting earlier that week telling me that she wanted her telephone bills lowered because they were more than she thought her company should be paying. After all, I was the person who sold them their services and I was supposed to take care of them. They were important to my company and I was anxious to do my best for them. I turned to the CTO and exclaimed “Absolutely! I’ll be back in a week with our new program and rates for you!” As I left their office, walking out the door I had NO idea what I was going to do. I was 23 and even though my company had already paid me for getting them as a customer, I knew the right thing to do was to help out my client and reduce their costs. The first thing I did was go to my boss and I asked. “’My client asked me to come in today and wanted me to reduce their phone bills, what do you think I should do?” My boss shot an angry look back at me “Didn’t you sell them a year ago? Aren’t they already a customer?” he scolded. “Yes I did, but I want to keep them as a happy customer so they don’t leave” I replied. “Forget them, you (and I) have already been paid. You need to move on, just let the customer support department out of Atlanta handle their issues and find some new business” he shouted back. I was shocked and surprised, but I was also undeterred. I decided...
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...threat of new entrants, and finally 5) rivalry among existing competitors. The first of these things is buyer power, which is defined as: “How easy is it for buyers to drive prices down” (“Porter’s five forces”, n.d.). If buyers have many choices of competitors to buy from, the buyer power is said to be high, alternatively if there are very limited suppliers that buyers can get what they want from, the buyer power is said to be low. Ideally, businesses want to reduce buyer power, or reduce the number of suppliers from which customers can obtain the product they want. Technology has enabled us with many tools that help reduce buyer power. The most common of these is a loyalty program. This rewards the customer for buying from your company. We see these everywhere from airlines that give out frequent flyer miles to the burger joint down the road that allows you to buy 6 burgers and get the 7th one free. There are many different variations of loyalty programs but the focus of each of them is to encourage the customer to do business with your business in exchange for some sort of reward. The second thing that we should look at is supplier power. This is the reverse of buyer power. Supplier power is high when buyers have few...
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...1.0 Introduction Telecommunication is very important in the social and economic empowered both for developed and developing countries. The government must be able to promote growth of vibrant telecom sector. However, most of the governments seek to come up with methods of ensuring that there is an independent telecoms regulator. Communication infrastructure reforms are a concept which enables operators to offer quality services. Infrastructure sharing is one of the reforms that can take place. It refers to the ability of operators to share networks or the ability of one party building communication infrastructure that will lease to other providers. Communication infrastructure can be done in fixed, mobile and broadcasting networks, and it is one of the best options of bringing reforms and best practices by bringing competitors in the industry to collaborate with an aim of lowering the cost and increasing their capital. It is also a method of reducing the risk of proliferating network deployment. There can be active or passive communication infrastructure sharing. In active sharing, the active network and components are shared by the operators. The regulator is aimed at providing clear directions towards achievement of national and regional development goals. This paper looks at the reforms of three countries, Czech Republic, Botswana and Liberia. The historical perspectives of how reforms have been achieved will the area of concern in this review. 2.0 Czech Republic ...
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...Term paper On Identifying the Marketing Strategy in Existing mobile Company in Bangladesh [pic][pic][pic] [pic] [pic][pic] Siddheswari University Collage, Dhaka Department of Marketing Term paper on Identifying the Marketing Strategy in Existing Mobile Company in Bangladesh Submitted to Md. Mizanur Rahman Mazumder Chairman Department of Marketing Siddheswari University Collage, Dhaka. Submitted by Md. Shibly Hasan Dept. Marketing Roll no: 9575781 Registration no: 1625621 Date of submission: 15 April, 2013. Siddheswari University Collage, Dhaka Letter of Transmittal 15 April, 2013 Md. Mizanur Rahman Mozumder Chairman, Department of Marketing, Siddheswari University Collage, Dhaka. Subject: Submission of term paper Dear Sir, With great respect, I am happy to submit my report on the topic “Identifying the marketing strategy in existing mobile company in Bangladesh”. I am felling proud to prepare my Report under your energetic guidance and supervision. This report is an important part of BBA program. In completing the report I tried my level best to blend all my knowledge and in imparting every accessible details of the survey avoiding needless intensification of the report. Your priceless supervision, suggestion, and guidance have helped...
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...Regulatory Commission (BTRC) officials investigating the case. Grameenphone has not actively taken enough measures to prevent the use of its products by some customers for illegally terminating international calls. Acknowledging that this has caused the Government loss of revenues, Grameenphone has agreed to pay this compensation to the Government. “In this case, measures for monitoring general usage by certain customer groups could have prevented customers’ wrongful use of our products and thus loss of revenue for the Government. Such measures are now being developed,” said Anders Jensen, CEO of Grameenphone. International call termination to Bangladesh is a licensed service and is currently provided only by the state-owned landline telephone operator BTTB. SIM cards from several operators have been used to terminate international calls illegally. A mobile operator will never have a full overview of the origin for calls coming into its network. Grameenphone has not been accused of directly operating international calls through internet or for having the necessary equipment for such calls installed at its premises. "This practice has been increasing over the last few years, leading to illegal termination into most mobile operators' networks. The Government is now focusing on this practice. We support all law enforcement activities to ensure that the telecommunications sector in Bangladesh and the customers adhere to the laws and regulations of the country. We also support all...
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...Beatrice Williams AC1208946 EN120.2.1 English Composition I Assignment 4 November 13, 2012 Comparison-Contrast Paragraph between Cell Phones and Landline Phones The cell phones versus the landline phone. When deciding which phone service meets your needs there are a wide range of differences between the two. Both serve a purpose in communicating effectively and have become an essential part of everyday life. Both offer call forwarding, voice mail, caller ID and other basic features. A home phone gets its service from a land line and may only be used for making and receiving calls at home. A cell phone can fit almost anywhere on your person and is convenient in times of travel. It receives service from cell towers and due to its additional features may be used as a camera, gps, mp3 player and also a pathway to accessing data for internet browsing, sending and receiving emails and downloading applications for personal and professional use. There is a downside to having a cell phone with all these sensational features. One thing you will never have to worry about is having your landline phone power off on you during an important conversation. In contrast, a landline phone is steadier where it relates to quality service. During a catastrophe as the service becomes interrupted, a cell phone will eventually lose service while on the other hand a landline phone could withstand a power outage, storms and some disasters, hence, cell phones...
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