Ateneo Regis MBA Talk Bpo Strategies Slide Share Promo
Ateneo De Manila University Graduate School of Business Dissertation StudyFor the Ateneo-Regis Master’s Degree in Business Administration SUBJECT: Strategic Management & Defence Talk Bpo Inc. To: Prof Dr. Albert Buenviaje From: Michael AJ Conroy MBA MBA Regis Defence with Honours Date: 24th of August 2012
INTRODUCTIONThe Document you are about to embark on is a briefintroduction and frame work to real life businessstrategies which have actually worked or are currentlyin process within the BPO/KPO/IT Industry within SEA,South East Asia.The 170 page BPO/KPO/IT research document is in theprocess of being self-published and will be for salesoon in well-known good book stores and on line websites.If you like what you briefly see here and require furtherinformation now please feel free to drop me a line firstname.lastname@example.org and I will revert as soon aspossible and try to answer your questions.Regards for now and best wishes,Michael AJ Conroy MBAAuthor of BPO/KPO/IT Strategies in SEA.Co-Founder & Non-Executive Director ofwww.talkbpo.com & www.facebook.com/talkbpo
TALKBPO BUSINESS CONSULTANCYTable of Contents Page No.1.0 EXECUTIVE SUMMARY 51.1 INTRODUCTION2.0 RESEARCH DESIGN & METHOLODGY 72.1 LIMITATIONS OF RESEARCH3.0 MARCRO ENVIRONMENTAL ANALYSIS 83.1 Social Cultural, Demographic Forces3.2 Talk Bpo Assessment of key Social Cultural Demographic & Natural Environment Variables3.3 Technological Forces3.4 Economic Forces3.5 Exchange Rates3.6 Political Government & Legal Forces3.7 Industry & Competitor Analysis3.8 Climate and Environmental Forces4.0 INDUSTRY & COMPETITOR ANALYSIS 284.1 Michael Porters Five Generic Strategies4.2 Porters 5 forces of Competitive Analysis4.3 Competitive Profile Mix (CPM)5.0 MARKET ANALYSIS 565.1 Market and competitor trends5.2 Market Segments5.3 External Factor Evaluation Matrix (EFE)& recommended Strategies
6.0 COMPANY ANALYSIS 736.1 Vision and Mission of the company6.1.2 Revised new mission vision statement6.2 Mc Kinsey’s 7S Framework6.2.1 Talk Bpo Staff Responsibilities6.2.2 7S Strategy Checklist6.3. Key Financial Ratio Analysis6.3.1 Projected Financial Ratios6.4 Analysis and Recommendations of IFE, Internal Factor Evaluation Matrix6.5.0 Strategic Formation Analysis & Recommendations Matches6.5.1 Strength Opportunities Analysis Strategy Match6.5.2 Strengths Threats Analysis Strategy Match6.5.3 Weaknesses Opportunities Analysis Strategy Match6.5.4 Weaknesses Threats Analysis Strategy Match7.0 STRATEGY INFORMATION TOOLS 1077.1 Industry SWOT Matrix7.2 SPACE Matrix7.3 Internal-External Space Matrix (IE)7.4 Grand Strategy Matrix7.5 BCG Matrix7.6 Summary of formulation Strategies7.7 Quantitative Strategy Planning Matrix (QSPM)8.0 RECOMMENDED STRATEGIES 1218.1 Medium to Long Term Strategies8.1.2 Marketing Penetration8.1.3 Service/Product Development8.1.4 Forward Integration
8.2 Short Term Strategies8.3 Summary of Short term Strategies9.0FINANCIAL PROJECTION AND RECOMMENDED STRATEGIES 1289.1 Talk Bpo Income Statement9.2 Projected Sales Activity9.3 Estimated Calculated Projections9.4 Income Statement with Percentage of Sales9.5 Projected Balance Sheet9.6 Balance Sheet Vertical Analysis9.7 Projected Cash Flow Statement10.0 STRATEGY EVALUATION MONITORING & CONTROL 13410.1 Talk Bpo Strategy Map Flow Process10.2 Strategic Map Initiative10.3 Balance Scorecard Table for Year 2012-201310.4 Measuring Organisation performance10.5 Contingency Planning Down Side/Up Side & MonitoringReferences:Research Methods and Reading Materials:Personal One on One Interviews:Industry Mentors:Listed Figures:Appendix 149Revision 158
1.0 Executive SummaryTalk Bpo Business Consultancy, (TBBC),www.talkbo.com , is a Call Centre Industry Serviced Company& was a sister company of Telebrokers Telecom (Australia) Pty Ltd, incorporated in 1998 in SydneyAustralia. The Talk Bpo division was established in 2008 in The Philippines. TBBC objectives inconjunction with Telebrokers Telecom, is to currently identify business opportunities withinAustralia, UK, Middle East & South Africa & influence partial operations to off shore to ThePhilippines. This allows foreign companies to become more cost effective and profitable, takingadvantage of the low cost tax fringe benefits, low operations cost, in lieu of creating jobs within theIT/BPO Industry, information technology & business processing outsourcing services.Unlike conventional IT/BPO’s within the Philippines, TBBC has a unique value proposition incomparison to the competition. With a combined executive work force of 70 years plus from DuPont& Microsoft and having served in the IT/BPO industry for over 15 years, TBBC is able to influence andassist prospective clients to off shore, with minimal exposure and risk in over heads & operations.TBBC can either run customer call centre campaigns for the client or operate the campaign inconjunction with the assistance of a sister company which could be a fortune 500 IT/BPO supplier.From business operation process to set up, to leasing seats with in a call centre for the Australian,UK, Middle East & South African Markets, TBBC can increase growth and business development withits vast network of affiliated global consultants via our web site.The IT/BPO Industry has grown 24% in 2011 and has earned USD $11 Billion within the Philippines.Taking into consideration the domestic clients whom have earned US $2.5 Billion. By 2016 theindustry has targeted 1.3 million jobs with the added advantage of being a 24/7 industry and isexpected to earn over US $25 Billion by 2016.With over 30 IT/BPO Companies in 2010 earning a combined income of 130 Billion Pesos, the trendis set to grow exponentially on average 10% + per year. To compete with the market place TBBC hastwo business models. 1. Direct Operations, similar to the competition, but within the sme market &2. Ancillary, Integration & Facilitation Services unlike what a majority of the direct competitioncurrently don’t offer.With an average EBITA return of 60%-65% forecasted. TBBC is on target to grow with the assistanceof a Marketing Management Strategy Plan which will focus on more International business clientsvia means of Market Penetration, Market Service Development focusing on Mergers Acquisitions &Fit Outs & Forward integration of a Franchise Model to assist boutique call centres to start up IT/BPOservices in the future.With the potential threat of the industry becoming commoditised and minimal barriers to entry forcompetition, TBBC is well poised and has a very astute & flexible mobile business model, supportedwith an efficient and effective Management Strategy to be on target for stake holders.For future developments TBBC is in a position to offer competitive innovated unique business ideasin conjunction with fortune 500 partners and the local government where traction has already beengained. For example a call centre child cares franchise, which will reduce attrition and allow tosupply more jobs within the industry. TBCC anticipates recurring business and sustainable trading forthe next 5 to 10 years.
References nd1. http://www.bsau.org/&http://www.kellyservices.co.in extracted 22 July, 2012.2. http://jatps.hubpages.com/hub/The-Philippines-is-Still-the-Undisputed-Text-Capital-of-the-World nd extracted 22 July, 2012. th3. The Manila Bulletin Sunday Newspaper July 8 , 2012.4. BPAP, Business processing association of the Philippines, IT/BPO Conference Radisson Blu Hotel, Cebu The Philippines, June, 2012.5. http://image.guardian.co.uk/sys-files/Guardian/documents/2008/02/01/SEA_CABLES_010208.pdf, th World Submarine Cable Grids, extracted 25 July, 20126. http://www.cloudhypermarket.com/whatiscloud/CloudUptake extracted 21st July, 2012.7. David, Fred R, “Strategies in action”, Chapter 3, Strategy Evaluation & Control, External Assessment (2010): 1038. http://talkbpo.com/index.php?option=com_content&view=category&layout=blog&id=22&Itemid=80 th Current Services extracted July, 25 , 20129. Tholons, Nasscom, 201110. Gartner Global Business Processing Outsource Research, 201111. http://www.atkearney.com/ research and statistics on business processing outsourcing.12. Bangko Sentral Pilipinas, 200913. Tholons, Nasscom, BPAP 201214. Source World Bank & IMF, 201215. http://www.tititudorancea.com/z/aud_to_php_exchange_rates_australian_dollar_philippine_peso.h tm extracted 21st July, 201216. IDA Ireland Irish Development Board, research report on investing in Ireland, June, 201217. Michael Porters competitive strategy analysis for analysing industries & competitive markets (New York Free Press 1980):35-4018. Talk Bpo market research perception of Porters Five Forces internally, June, 201219. Asian Development Bank, Trends in outsourcing within SEA, 2011.20. www.rappler.com, May 2012, 34 Bpo’s firms grossed over 1million Peso in 2010, extracted May, 2012. th21. http://en.wikipedia.org/wiki/Accenture, Retrieved June 25 , 201222. "Yahoo! – Accenture Ltd Company Profile". Biz.yahoo.com. Retrieved September 9, 2010. th23. http://en.wikipedia.org/wiki/Convergys, www Retrieved June 25 , 2012 th24. http://en.wikipedia.org/wiki/TeleTech, www Retrieved June 25 , 2012 th25. Strategic Management Concepts and Cases, Fred R David, 13 Edition, 2010, page 114 chapters 3 external assessment. th26. Martin Conboy, President of Australian BPO Assoc. IT BPO Forum, Cebu Philippines, June 27 , 201227. "Yahoo! – Accenture Ltd Company Profile". Biz.yahoo.com. Retrieved September 9, 2010.
28. Accenture Digital Media Advertising Budget Spend, www.marketingcharts.com/television/media extracted 4th July, 2012 th29. Convergys setting up in Davao July 4 announcement www.zambotimes.com/archives/49106- th Convergys-to-put-up-BPO-facility-in-Davao-City.html extracted July, 6 , 201230. http://articles.economictimes.indiatimes.com/2007-11-11/news/27678568_1_high-attrition- th employees-cash-incentives extracted July 7 , 201231. http://executiveandhrguidance.blogspot.com/2012/03/bpo-attritionturnover-20-60-retention.html th extraction July, 7 201232. http://www.convergys.com/company/recognition-awards.php th33. XMG Global Research, IT BPO Forum, Cebu Philippines, June 27 , 2012 rd34. You Tube, Martine Conboy, President of the Australia Business Processing Association, 3 July, 2012, “17,000 Australian Call Centres Agents pulled from Indian Call Centres because of incoherent Indian accents35. Australian Business Processing Association, Everest Analysis, Sydney, June 23, 2012. th36. Tesda Research, IT/BPO Conference Cebu City The Philippines, June 27 , 201237. http://www.kittelsoncarpo.com/philippines-labor-employment/salary/call-center-agents extracted 27th July, 2012 th38. David, Fred R, “Strategies in action”, 13 Edition Chapter 3, Strategy Evaluation & Control, External Assessment (2010): 10439. Peza, Presentation, Increase in PEZA Zones, BPI Launch, Resorts World Manila The Philippines, May, 2012.40. Australian Business Processing Association, Everest Analysis, Sydney, June 23, 2012. th41. www.golden abc.com, retrieved 11 July, 2012, evaluation of your business mission vision statement42. Peter Drucker, Management: Tasks Responsibilities and Practises (New Yorker: Harper & Row, 1974):6143. http://www.mindtools.com/pages/article/newSTR_91.htm44. David, Fred R, “Strategic Management Concepts and Cases”,13 Edition Chapter2, The Business Mission & Vision,(2010): 7945. David, Fred R, “Strategic Management Concepts and Cases”, 13 Edition Chapter 6, Strategy Analysis & Choice, (2010): 21846. www.slideshare.com, Business Strategy Management, identifying strategy for a single business th extracted June 14 , 201247. David, Fred R, “Strategic Management Concepts and Cases”, Chapter 4, Internal Assessment, (2010): 15548. http://www.philstar.com/Article.aspx?articleId=788656&publicationSubCategoryId=63, extracted 29/7/201249. http://www.abs-cbnnews.com/business/04/02/12/bpo-workers-opt-jobs-overseas, extracted 29/7/2012
50. Benoit GENUINI President Passerelles Numériques, Vietnam, IT/BPO Conference Cebu Philippines, th June 28 , 201251. David, Fred R, “Strategic Management Concepts and Cases”, 12 Edition Chapter 5, Internal Assessment,: 18352. David, Fred R, “Strategic Management Concepts and Cases”, 12 Edition Chapter 5, Internal Assessment,: 184 th53. Encyclopaedia of Management, diversification strategy e-notes, extracted July, 30 , 201254. It’s more fun in the Philippines, Dept of Tourism & DTI The Philippines. Extracted 30/7/1255. http://investing.businessweek.com/research/stocks/financials/ratios.asp?ticker=CVG:US, extracted th 29 July, 2012 rd56. Source: taking you www.forward.comRetrieved June, 23 , 201257. David, Fred R, “Strategic Management Concepts & Cases”, Chapter 6, Strategy Analysis & Choice, (2010): 217 BCG58. David, Fred R, “Strategic Management Concepts & Cases”, Chapter 6, Strategy Analysis & Choice, (2010): 218 BCG59. Michael O’Leary, A Life in Full Flight, Penguin Allan Ruddock, (2008): Rear Cover60. David, Fred R, “Strategic Management Concepts and Cases”, Chapter 6, Strategy Analysis & Choice, (2010): 217 Reasons to disclose or not to disclose financial information th61. The Manila Bulletin Sunday Newspaper July 8 , 201262. David, Fred R, “Strategies in action”, Chapter 5, Strategies in Action , (2010): 17463. http://www.valuebasedmanagement.net/methods_strategy_maps_strategic_communication.html Kaplan Norton extracted 19th Jul, 201264. David, Fred R, “Strategies in action”, Chapter 9, Strategy Evaluation & Control, (2010): 32565. David, Fred R, “Strategies in action”, Chapter 9, Strategy Evaluation & Control, Contingency Planning (2010): 33166. David, Fred R, “Strategies in action ”,Chapter 3, Strategy Evaluation & Control, External Assessment (2010): 104 th67. GGLC, John Boakes Peregrine Inc Clark PEZA Zone, 7 July, 2012 email research extract, occupancy of Clark Free Zone Areas Tax Incentives
RESEARCH METHODS & READING MATERIALS1. Gmail Alerts, Google, Research Methods for Strategic Management, BPO Philippines, and PushEmail Alert as it happens, April, 2012 current.2. IT/BPO Conference, Radisson Blu Hotel Cebu City The Philippines, June 26th-June27th, 2012. App 93. BPAP Business Processing Association of the Philippines, Intl Guest Speaker Martin Conboy BPO4.0, Makati Manila June 28th, 20124.Dr Prof Albert Buenviaje, Course Professor, Strategic Management Lecture notes Ateneo DeManila Regis MBA Rockwell, April-May 20125. John Bokaes Peregrine Inc Clark PEZA Zone, 7th July, 2012 email research extract, occupancy ofClark Free Zone Areas Clarke is it Global Investor Guide and site visit6. New Era of Management, Concepts and applications, 2nd edition, 20127. http://www.slideshare.net/AndyForbes/great-executive-summaries, extracted, 1st August, 2012PERSONAL ONE ON ONE INTERVIEWS1.Mr Martin Conboy, Industry Interview, The Climate & direction of Philippines IT/BPO: President ofthe Australian Business Processing Association, June 27th, The Radisson Blu Hotel Cebu, ThePhilippines.2. Mr Benedict Hernandez Industry Interview, The Role of BPAP in the Philippines outsource processindustry: President of the Philippines Business Processing Association. July 17th, 2012 The PeninsulaHotel Makati Manila Philippines.3.John Bokaes Peregrine Inc Clark PEZA Zone, 7th July, 2012 email research extract, occupancy ofClark Free Zone Areas Clarke is it Global Investor Guide and site visit4. Mariecris Conroy, President, Talk Bpo Business Consultancy, Rockwell Makati The Philippines.INDUSTRY MENTORS1. Mr Paul Harris, Mentor for Future Software Applications Senior Architect South East Asia CloudComputing Microsoft.2. Mr Jonathan De Luzuriaga, Mentor for research within the IT/BPO: Former Vice PresidentPhilippines Business Processing Association and current CEO of the Outsourcing Network.3. Ms Charlene Geneill, Independent Financial Analyst Certification of Financial Accounts.4. Ms Mariecris Conroy, President Talk Bpo Business Consultancy, Proof Reading of Thesis.
FIGURESFIGURE 1, Demographic Locations of Philippine Call CentresFIGURE 2, Talk Bpo Assessment of Key Social Cultural Demographic & Natural Environment Variables.FIGURE 3, Percentage of Talk Bpo Ranking to outsource to the PhilippinesFIGURE 4, Texting capital of the world.FIGURE 5, Boracay Beach World RankingFIGURE 6, Asian submarine optic fibre gridFIGURE 7, Cloud StatisticsFIGURE 8, Using the cloudFIGURE 9, % of cloud users globallyFIGURE 10, Talk Bpo current services.FIGURE 11, Increasing economic significanceFIGURE 12, Global Ranking of IT/BPO CountriesFIGURE 13, The rise of alternative outsourcing citiesFIGURE 14, The Global IT/BPO % of Market ShareFIGURE 15 Significance to emerging economiesFIGURE 16, 15% to 20% CAGR over the next 5-10 yearsFIGURE 17, Salary Variance Payment per monthFIGURE 18, The AUD versus the PESOFIGURE 19, The Euro versus the PESOFIGURE 20, The Pound versus the PESOFIGURE 21, Fiscal Non Fiscal benefits
FIGURE 22, Salary Cost Advantages in the PhilippinesFIGURE 23 Cost Advantages to have IT/BPO in the PhilippinesFIGURE 24 Philippines Business ConfidenceFIGURE 25 Philippines Consumer Price IndexFIGURE 26 Philippines Inflation rateFIGURE 27 Porters 5 Generic StrategiesFIGURE 28 MicroenvironmentFIGURE 29 Porters Five Forces Perception within Talk BpoFIGURE 30 CPM Matrix WeightingFIGURE 31 CP Graph AnalysesFIGURE 32 Picture of Transcom Taxi AdvertisementFIGURE 33 Outsourcing Drivers, An Australia StudyFIGURE 34 How do you expect to spend on advertising?FIGURE 35 Accenture Global Locations and MapsFIGURE 36 Talk Bpo Global Affiliate LocationsFIGURE 37 Talk Bpo Facebook AdvertisementsFIGURE 38 Current ICT-BPO Industries Versus PenetrationFIGURE 39 Outsourcing in Canada and Philippines Business & Economic EnvironmentFIGURE 40 Outsourcing in Canada and Philippines Resources & SkillFIGURE 41 Current & Future TrendsFIGURE 42 Off shore PreferencesFIGURE 43 Important criteria in selecting IT/BPO providersFIGURE 44 Global off shore BPO Market by type of process
FIGURE 45 Figure 45, The Philippines IT-BPO Industry hit its 2011 targetsFIGURE 46 National High School Results below averageFIGURE 47 From Voice to Non Voice BPOFIGURE 48 15%-20% CAGR over the next 5 yearsFIGURE 49 ICT BPO Forecasted revenueFIGURE 50 Fragmented IndustryFIGURE 51 The growth of the IT/BPO in the futureFIGURE 52 Salary Ranges per monthFIGURE 53 Structured layout of the 7s FormationFIGURE 54 Identifying strategy for single businessesFIGURE 55 The New Talk Bpo DirectionFIGURE 56 Strategy Options for Local CompaniesFIGURE 57 Hierarchy StructureFIGURE 58 The Strategic Making PyramidFIGURE 59 Talk Bpo Internal Factor Evaluation Matrix Table.FIGURE 60 Talk Bpo Business Ideas, 2012FIGURE 61 Primary influences in processingFIGURE 62 Summary of possible strategiesFIGURE 63 Outsourcing Philippines and CanadaFIGURE 64 Tourism Philippines, “More fun in the Philippines”FIGURE 65 Space MatrixFIGURE 66 Space matrix ResultsFIGURE 67 The Internal Factors evaluation and External Factors Evaluation Space Matrix
FIGURE 68 Grand Strategy MatrixFIGURE 69 Boston Consultancy Matrix BCGFIGURE 70 Accenture Job AdvertisementsFIGURE 71 TeleTech Job AdvertisementsFIGURE 72 Summary of formation StrategiesFIGURE 73 Talk Bpo - Affiliate Commission Investment StructureFIGURE 74A Talk Bpo Geographic Affiliations GloballyFIGURE 74B Primary Influence ProcessesFIGURE 74C You Tube Video, Why the PhilippinesFIGURE75 Flow of Talk Bpo Strategy MapFIGURE 76 Strategic MapsFIGURE 77 Talk Bpo Contingency Plans DownsideFIGURE 78 Talk Bpo Contingency Plan Upside
TABLESTABLE 1 Summary of possible strategies and actionable itemsTABLE 2 Projected Financial Ratios for Talk BpoTABLE 3 Reasons to disclose or not to close financial informationTABLE 4 Top three call centres turnover in the PhilippinesTABLE 5 Quantative Strategic Matrix PlanTABLE 6 Results of QSPMTABLE 7 Projected Sales Activity Income 2013TABLE 8 Details of 2013 Projections (amounts in US$)TABLE 9 Balance Score Card Table