案例分析简介-西南财大

1 Hand Out of the Strategic Business Solutions of the Case Study 4 Up Prioritization of Key Issues 1. Closing the profits gap 2. Foreign investment proposal 3. Raising finance 4. Introducing designed handsets 5. Outsourcing issue 6. IT system 7. Ethical issues Analyses of Issues 1. Closing the profits gap Due to a delayed impact of the global financial crisis on mobile telephony industry，Dizz’s 5-year plan looks too optimistic in the current “credit crunch” climate. Actions must be taken immediately to close the profits gap. 2. Foreign investment proposal Taking the risk into account, we find the NPV of this investment proposal positive. It should be accepted with the purpose of occupying the Asia market. 3. Raising finance The raising finance issue is followed by the investment. We compare 3 proposals and find that they are of high risks or lack of money. 4. Introducing designed handsets For the competitiveness especially in Asia market, the designed handsets become a good way to grab big markets in different continents. 5. Outsourcing issue Since Fre and Mre refused to renew the contract, Dizz is facing the danger of losing the qualified suppliers. This would certainly influence the customer service quality. 6. IT system With the advent of the 3G services, Dizz is facing the capital expenditure of 1500 million for the construction of its IT system. 2 7. Ethical issue There is a possibility that the fees of training and development of employees, as well as the cost of the government-sponsored hospitals would be cut, given that Dizz is challenged by the balance of the short-term and long-term goal. Recommendations 1. Closing the profits gap Differentiation strategy including advertising campaigns, designing more flexible pricing structures, improving the overall customer experience, linking up to famous internet search engines should be adopted with the aim to boost ARPU and customer numbers. 2. Foreign investment proposal The investment with positive NPV should be accepted when it is in accordance with the long term goal of Dizz in the promising Asia markets. 3. Raising finance Our advice is to raise finance by cutting dividend to 10% of profit at first and then using a 1 for 4 right issues to all shareholders, with 2744 million cash from cutting dividend and 3256 million cash from sharing rights. 4. Introducing designed handsets Dizz should introduce designed handsets to attract and retain customers in Europe market and to penetrate Asia. As to the ordering volume, Dizz should consider the aggregate demand, ordering price, available net cash flow, and turnover rate of funds. 5. Outsourcing issues Dizz should undertake a better negotiation with Fre and Mre to retain them. 6. IT system The enhancement of IT system could be compatible to 3G standards and the increasing customers’ needs and could lead to save administration cost. So it is recommended that the IT capital expenditure shouldn’t be delayed. 7. Ethical issues Dizz should communicate with its employees to reach a consensus acceptable for all. For the community issue, we advice Dizz provide additional manpower support to satisfy the hospital’s request, maintaining the positive brand image and corporate social responsibility.