case competition

Deloitte Case Competition

Team: Cole Feldman, Lake Heckaman, Jenny Ng,

Janine Romy, Neil Jones

Friday, April 4th

TELECOM CO

Deloitte Consulting LLP

The Team

Jenny Ng

Freshman IT Management

Neil Jones

Freshman Accounting, Economics

Janine Romy

Sophomore Finance, Int’l Economics

Cole Feldman

Freshman Economics, IT Management

Lake Heckaman

Freshman Business, Mathematics

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Refocused Strategy Will Turn TELECOM CO Around

Grow Revenue 20% through

2018

Explore Growth in Emerging

Markets

Maintain Commitment to

Customers

Offer Dependable, In-

Demand Products

Long Term Stability: Attrition

and Service Quality

Presentation Outline

• How can TELECOM CO increase growth rates and successfully retain customers?

Strategy

• What approach should TELECOM CO take to resolve its IT issues?Technology

• What should TELECOM CO do to combat the causes of higher-than-average attrition rates?

Human Resources

Increased Customer Base Will Come Mainly From Mexico

Strategy Technology Human Resources

Expansion in Mexico’s consumer

mobile market

Acquisition of a tower

company

Postpone future

development in Argentina

Transition back to fleet service in the United States

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Suggestion Matrix

Revenue

Risk

Suggestion Feasibility

Elderly

Sport

s

Basketball

Pay Per View International

Expansion

Elderly

U.S.

Argentina

Mexico

Expansion in Mexico is Less Risky and More Profitable

Mexico Argentina


19%

65%

16%

Revenue by Sector

US Mexico Argentina

Lack of LTE coverage in

Mexico gives TELECOM

CO the opportunity to

capture a growing market.

Representative of a Mid-Size Tower Company to Acquire

Diamond Communications

• Financially achievable

• Experienced in expanding coverage

• Looking for opportunities to expand abroad

• International presence


LTE Capability in Mexico Gives First Mover Advantage


• Increase service quality for smartphone users

• Capture market share from up and coming telecom sector

Build towers to expand LTE infrastructure

• Appeal to lower income customers in Mexico

• Generate guaranteed prepaid revenue for TELECOM CO

Develop prepaid plan for mobile

consumers

• Begin to offer LTE capable smartphones to consumers

• Develop and implement aggressive marketing strategy

Move forward with new product

launch

Top line revenue

will increase

faster than the

telecom average

in Mexico of

12.5% annually.

Waiting to Move Aggressively to Argentina Will Pay Off


Next Six Months: Learn

Next Year: Build

Next Five Years: Grow

Hold off on

new product

launch in a

volatile area

Gauge readiness

for expansion and

initiate tower

construction

Attack mobile

LTE market as

infrastructure

grows



Strategy



Human Resources

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Underperformance in Helpdesk and Server Performance

0

1

2

3

4

5

6

7

8

9

Target US Mex. Arg.

ITCo.'s Helpdesk Performance

95.0%

96.0%

97.0%

98.0%

99.0%

100.0%

Target US Mex. Arg.

ITCo.'s Data Center and Server Performance


To cut response hours in

half in Mexico, ITCo must be

encouraged to hire more

helpdesk employees.

Server and app difficulties

resulting from

infrastructural problems

must be addressed.

Hou

rs to

Resp

on

d

Up

tim

e

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Poor Customer Service Leads to Customer Attrition

Increased Customer Effort

Unsuccessful solutions

Being transferred

Re-explaining the issue

“I always feel like I

have to re-explain

my issue when I

am transferred.”

“Being

transferred is

so frustrating.”

“I was on the

phone for an

hour and my

problem is not

even fixed!”

“Talking to customer

service is exhausting. I

hear Verizon has better

customer service.”


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• Severe helpdesk

underperformance

• Mexican customers

most dissatisfied

• Decreased costs

• Infrastructure

already established

• Finding another

vendor takes time

and money

Contract with ITCo is Worth Keeping


Keep Contract with

ITCo Find Another Vendor

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Two-Pronged Approach to ITCo Problem


Vendor

Management

Look for

Alternative

Vendors

Strengthen

Contract

Encourage

Hiring of

Helpdesk

Employees

Emphasize

Quality

Service

Strong

Presence

in Mexico

Manage Risk

Simultaneous Actions



Strategy



Human Resources

Lack of Focus and Team Skills Results in Attrition


TELECOM CO’s higher-than-average

attrition rates hinder growth.

Loss of human capital

Loss of institutional knowledge

Weakened company image

Address Problem Areas to Improve Employee Experience


Area of Concern Proposed Solution

Teamwork is undervalued

• Public recognition of team success

• Team-building seminar

• Redesign office space to

encourage collaboration

Lack of clear career progression

• Give promotions based on positive

team reviews

• Implement employee incentives

Lack of fair compensation

• Adjust compensation package so

that salary increase reflects

company revenue increases

Successful Growth Solves Back for Employee Turnover

“Employees don’t want to be team players,

as much as they want to play on the winning team.”

Recommendation Overview

• Mexico: Develop LTE infrastructure and prepaid plan

• Argentina: model after Mexico, if non-nationalized

• US: focus on fleet servicesStrategy

• Renegotiate ITCo contract

• Improve customer service with focus in MexicoTechnology

• Emphasis on teamwork coming from the top management

• Employees want to work for winners

Human Resources

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2018


Markets


Customers


Demand Products


and Service Quality

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2018


Markets


Customers


Demand Products


and Service Quality

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2018


Markets


Customers


Demand Products


and Service Quality

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2018


Markets


Customers


Demand Products


and Service Quality

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2018


Markets


Customers


Demand Products


and Service Quality

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2018


Markets


Customers


Demand Products


and Service Quality

Questions?

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