| dc.description.abstract | In the competitive telecommunications market, tariff cutting competition has been affecting the profit performance of telecommunications operators. Another change in the telecommunications industry is competition from the Internet′s OTT online services, has been eroding the traditional voice and SMS revenues of the original telecommunications services.
Company C, a telecoms service provider, has been facing the challenges from both internal and environmental factors. Among others, the escalating price competition of B2B communication services, where the quality of products and services by different providers cannot be felt directly by corporate customers, has resulted in acquisitions based mainly on price considerations. This study attempts to look into ways to assess the reasonable cost in entering a project tender. The organization of Telco C is large, fragmented and mutually independent. As a result, as of now, whether a project would be profitable cannot be projected before that project is finished.
This proposal includes the followings. An activity-based costing (ABC) study is to be launched to assess the cost structure of the different activities conducted in various projects. Based on the needs of enterprise customers, the requisite components should be planned. These include off the shelf products, services, and other activities required for the project. In addition, through studying the organization structure and inter-unit operations, some procedures of each organization unit should be adjusted accordingly, to derive at a set of new standard operating procedures. Through these new cost estimation and procedures, the front-line agents can confidently estimate the cost of a project on hand. They can then derive a more reasonable and profitable quotation, while responding to the price war of large corporate customers in B2B business quotation and still maintain reasonable profit margin.
It is expected that through the proposed improvements, the business unit facing corporate customers can be more effective, operates with less obstacles in the sales process, properly allocates manpower, and achieves an increase in the project completion rate, and increase the revenue and profit of Company C. | en_US |