Business Strategies Implemented Internationally Research Paper - 1

Business Strategies Implemented Internationally - Research Paper ExampleHow should you organize the business outside of the U.S.?Marketing department handles the sales operation in an internationalistic market.Setup of the export department that is in learn contact with the CEO.Setup of independent franchisees or subsidiaries whereby each franchise functions individually and is in direct contact with the CEO (Hodgetts & Rugman, 1995). Should you set-up reasonably independent companies, subsidiaries, in each foreign market?Yes, setting up subsidiaries in each of the international markets is one of the lift out ways to manage business outside the local market.The franchises are run according to the demands of that country. This is called as the multi-domestic strategy.Another similar strategy known as international strategy, in this concept certain departments of the international franchise are still maintained by the parent company (Aswathappa, 2008). In order to exercise check up on over each of the subsidiary, it is important that the companies know which of the strategies it is going to implement and their relevant advantages and disadvantages. A subsidiary board of director will manage the various subsidiaries and their cause and hence in this way it is easy to maintain the reputation and decrease the chances of risk in reputation. It is better not to impose a strict check image and it is also important that all the subsidiaries be linked with the help of the internet or any other software that might be uncommitted

How Effectively does Hourani use Ibn Khaldun Essay

How Effectively does Hourani use Ibn Khaldun - Essay ExampleAbd al-Rahm Ibn Khaldun belonged to a migrating family which has traveled from southern Arabia from Spain after the Arabs had conquered it. One elicitnot diminish the fact that Ibn Khaldun was bought with very traditional values that revolved around the Quran and the Sunnah. The Word of God as revealed in the Arabic language influenced ibn Khalduns personality to implement the shariah that he acquired from birth. Ibn Khaldun was an Arab historian that dramatically shaped the history that is written in more books. With that being said, Ibn Khaldun was utilized effectively to discuss many aspects that dominated society in his time period. The first reason that Hourani utilizes Ibn Khaldun is his ability to utilize Islamic knowledge and draw connections that are parallel in real brio. One of the prime examples of this can be seen about the concept of freewill and pre-destination. Ibn Khaldun utilizes his mastery skills to ana lyze and ponder on this fact that left the Muslims in a state of confusion. Since the dawn of mankind, theologians invite questioned where humans are given free will or have been predestined. This question has puzzled some of the most scholars kn declare throughout the history. What is more intrigue is the fact that even religions under the Abrahamic tradition have assorted viewpoints regarding this issue. While the Christian doctrine states that All humans have sinned, Islam has taken a different approach regarding this sensitive issue. Undoubtedly, life is full of challenges, surprises, and works in mysterious ways. One cannot ignore the fact that certain circumstance that occur in life that one cannot control. Hence, the issue of fate and freewill become vital aspects in this discussion. relaxwill is a meaningful theory that insists on unlimited experience of choice. Free will is a doctrine that refutes the idea of pre-destination. Freewill is a choice that individual possess that yields an outcome which is unknown. The concept itself is very unique in a sense that it does take into account of external factors. Ibn Khalud takes a very logical approach towards this issue as he breaks the issue into two components, which consist of fate and fate. He insists that human beings have never seen the past and can only anticipate the future, based on the natural law. Moreover, he insists in his works that it is not incumbent upon God to do the best for humans however, this does not mean that God will not in fact do the best of his own free will. Hence, Hourani utilizes the mastery of knowledge of Ibn Khalud to dissolve the confusion of this theory. The second reason Hourani utilizes Ibn Khalud to discuss the strength of the Islamic nation in midst of a striker to appoint the caliphood. Hourani appreciates Ibn Khaluds take on life, his work, and his relentless against trials and tribulations. Ibn Khaluds attitude to remain calm during a time where the plague de stroyed a urban center is the embodiment of leaderships that he possessed. This could be brilliantly illustrated as Hourani states, Ibns world was full of reminders of the frailty of the human endeavor (Hourani, 4). Hourani also discusses the development of the Makkan Empire and discusses the policy-making reform that Muhammad conducted with the assistance of Ibn Khalud. One must acknowledge the fact that Muhammad entered the era

Managing Finance Essay Example | Topics and Well Written Essays - 1000 words - 1

Managing Finance - Essay ExampleBudgetary control and cost processes have been combine to compute variance between budgetary standards and the actual performances. The basic idea is to make adjustments, rectifications, and additions to budgetary control process to attain the set standards and objectivities. Variance analysis fulfills this role within organizations. In combined standard costing and budgetary control system, variances can be calculated on either an absorption costing basis or marginal costing basis.(Michael Broadbent and others, page 151) . Variance analysis is the most important feature of budgetary control, and it is this process that establishes the creditability of the budgeting system. Technically speaking, budgeting plays the role of internal controls that have been made compulsory to chisel in and evaluate under statutes like Sarbanes Oxley Act in the US in the aftermath of accounting scandals like Enron. Therefore, budgetary controls are not only strategicall y important for an organization, but also socially and morally important for safeguarding the interests of stakeholders.Budgets motivate the organizational system to achieve the laid down objectives. Budgetary control is a constructive exercise to create motivation in the organization. In fact the motivation of a budgetee (a manager working in a budget system) is rub into two components the relevance of budget standards to the budgeters task, and the attitude of the budgetee towards the system.(G.H.Hofstede, page 3)

Dulux Paints, a Hospital, a leisure centre and a GPs Surgery Essay Example for Free

Dulux Paints, a Hospital, a leisure centre and a GPs Surgery EssayFor this project I have sent a letter to each company, I have emailed 1 of the companies and visited 2 of the companies in effectuate to help me with my research. Although non wholly companies gave me the applicable information, I also used the internet to help me fill in the missing gaps.Production OrganisationsThe only product organisation I have chosen to do is Dulux. Dulux is a paint company.Dulux Customer Cargon CentreICI PaintsWexham RoadSloughSL2 5DSTel 08444 817 817Dulux produce a wide-cut range of different paints and products both interior and exterior to help you paint. Here are a few examples of what products they make.PaintPaint is any liquid liquefiable or mastic composition which by and by application to a substrate in a thin layer is converted to a solid film.Products do for interiorPaint pod Paintpod ringlet system, Paintpod matt emulsion, Paintpod silk emulsion, Paintpod 2m extension tu be, Paintpod extra reach handle, Paintpod roller sleeve, Paintpod dip tube, Paintpod edging brush, Paintpod spare parts Main Range Matt, Natural hints matt, Feature w in all matt, demulcent sheen, Solid emulsions matt, Solid emulsions silk, Non-drip gloss, Satin wood, Professional liquid gloss, Pure brilliant white eggshell, Quick dry gloss, Quick dry satin wood, Tile paint, Cupboard paint. Exterior productsProducts made for exteriorMain range non-drip gloss, professional liquid gloss. Once Gloss. Weathersheild smooth masonry paint, textured masonry paint, ready to roll smooth masonry paint, exterior gloss, exterior satin, exterior nonpareil coat gloss, exterior undercoat, exterior stablishing primer, multi-surface fungicidal wash, exterior preservative primer.What Science is involved?Paint is manuf puzzle outured with mineral fillers (clay and limestone) and pigments from various minerals. Paint contains four canonical ingredients pigments, resin firmnesss and additives.Each ha s a different purpose. The pigment is for colour, resin is a binder, the solvent carries the pigment and resin from the paintbrush to the wall, the additive is added to change or improve its characteristics, in paint it is added to help the paint stick better.Making the spreadheadPigment manufacturers send bags of pigments to the paint factory where it is them premixed with the resin, the solvent and additives to form a paste.Dispersing the pigmentThe paste mixture is whence routed to a sand mill (shown below) this agitates tiny particles of sand to grind the pigment particles to make them smaller then dispersing them by means ofout the mixture. The mixture entrust then be filtered to remove the sand particles.Although not all paint companys use a sand mill, instead they may be used in a high speed scattering tank. (Shown below) here the premixed paste is subjected to high speed agitation by a circular toothed blade abandoned to the rotating shaft. Using this process leave be hind blend the pigments into the solventThinning the pasteNo matter how it is dispersed whether by sand mill or dispersion tank the paste must be thinned to produce the final product. The paste is transferred to a large kettle where it is agitated with the right amount of solvent to match the paint desired.Canning the paintThe paint is then man sequence into the canning room. Empty cans are rolled horizontally onto labels the set upright for the paint to be pumped into them. A machine impart then place the lids onto the filled cans and a second machine pass on press the lid so it is sealed. The handles are then made and cut by a bolometer before hooking them into the holes made on the cans. The cans are then boxed and sent to the warehouse.Health and proficientty actThe health and precaution act defines general duties on employers, employees, contractors, suppliers of goods and substances for use at escape, person in control of behave premises and people who manage and off er them. The act enables a regime of regulations by the government ministers through the statutory instrument. They created an extensive system of specific provisions for various industries, including discipline and risks. It enforces powers backed by criminal sanctions extending to unlimited fines and imprisonment for up to 2 geezerhood. The act provides a critical interface with the law of European Union on workplace health and safety.How is the HS act used in Dulux?The health and safety act ordain be used in Dulux to make sure that paint is not leftfield on the floor and so that the company is a safe environment to work in. listed below are a few ways in which they will check over health and safety* They are to make sure there is no paint left on the floor to hold no hap occur* They are to make sure Special clothes will be worn to protect the workers from toxic chemicals* They will hear that all equipment is safe to use to help prevent accident occurring* They will ensure that All fire exits are clearly marked and not covered so undemanding access incase of a fire* All rules and regulations are clearly stated, visible and always followed.* There is a fire safety point Cleary situated.* Ensure all fire alarms workService organisationsThe 1st armed service organisation I have chosen to do is within the health care system. I have chosen to do a hospital. I will research manor hospital.Manor HospitalMoat Road,Walsall,WS2 9PS01922 721172Manor hospital offers a wide range of work from AE to Vascular operating room. I have listed a few below* AE* Cancer services* Care of the elderly* Dermatology* Ear, nose and throat surgical operation* Maternity* Orthodontics* Pharmacy and medicines* Sexual health* Therapy services* Urology* Vascular surgeryManor hospital is a place where you can get out medical treatment. They help you in a variety of different ways.I have chosen to do focus my project on the AEWhat Science Is twisty?In the AE there are a variety o f different learnings involved. Although not all are used daily. There are approximately things that you may not be aware off that use science. The AE is a place where you go if you have been involved in an accident. They deal with all accidents and emergencys ranging from a sprain up to a breakage of a bone. Although this may seem like no science is involved there is. Biology is mainly used because its deals with the human body. They pauperism to have a biology degree. For example if almostbody were to come into AE with a nail in there hand, they would have to use the biology in order to figure out the best treatment n how to go about getting the nail out. Would they just pull it out or would they operate? afterwards deciding this they will indispensableness to sterilise the nail in order to stop the micro-organism infecting the wound. This is another form of science involved. After that if they choose to operate they will use anaesthetic. Although this may seem as if this is not using science it is. This is used to temporarily reduce sensation so that painful procedures or surgery can be performed. There are 2 types of anaesthetic* General makes the patient unconscious* Local numbs the part of the body that would feel pain.So what is in anaesthetic?* Benzocaine* Dibucaine* Liudocaine* Tetracaine* Novocaine* Prilocaine* Mepivacaine* Bupivacaine* Articaine* ProcaineHealth and safetyAs stated above manor hospital will also have health and safety regulations to help ensure nobody is seat at risk, listed below are both(prenominal) examples of where health and safety will be used in the AE* They will ensure that when using needles or checking a patient they will use gloves, that are to be changed after every patient* They will ensure that all needles used are put into a container and only used on 1 person.* They will ensure that all the toilets are clean.* They will ensure that no fire exits or covered and are fully accessible.* They will ensure that if a patient is highly ill they will be put into quarantine.* They will ensure that all medical equipment is clean and able to be used.* A fire safety point clearly stated* Ensure all fire alarms work* They will ensure that there are enough seats available so that people are not standing around.The second service organisation I have chosen to do is Berkley practice. This is a GPs practice.Berkley practiceChurchill RoadWalsallWest midlandsWS2 0BAThe Berkley practice provides a wide range of services such as* Blood tests* STI Tests* Pregnancy testsAt the Berkley practice there is more than one GP available to suit your needs, as each GP may have a different area of expertise. This also may be so that it is easy access to your GP if you live close by. Although you may have a personal GP you may also chose to use a different Doctor.What Science is involved?As a dentist they will need to know a variety of different thing that involve science such as x-ray machines and chemicals. Here below ar e some of the sciences used.A dentist will diagnose and treat problems relating to the teeth and gums in the mouth. This means the dentist will need to know the science of the body still specifically the mouth and teeth. This will be so they can give advice about brushing and healthy eating for looking after teeth and gums. They will also need to know the science of chemicals and antibiotics so that they are able to provide proper protection and pain relief. Dentist will also need to know the science of x-rays machines and other equipment so that they can be used safely and easily without accidents occurring. Finally dentist will need to know the science of infectious diseases so that he can prevent them happening whilst providing treatment.Health and safetyLike in the hospital the GP may have some of the same constraints to ensure safety.* Ensure all equipment is clean and safe to use* Ensure that gloves are worn when treating a patient* All needles will be put into a container* A fire safety point clearly stated* Ensure that all rules and regulations are stated, visible and always followed.* Ensure that all fire alarms workThe 3rd service organisation I have chosen to do is Darlaston leisure centreVictoria RoadDarlastonWalsallWS10 8APTelephone 0121 526 7473facsimile machine 0121 568 7379Darlaston leisure centre offers a wide range of activities and facilities such as* Childrens gym* Adults gym* Swimming pool* Tanning studio* Swimming lessons* vend area* Spectators area* steam rooms* holiday campsDarlaston leisure centre also caters for disabled people by providing disabled access, parking and disabled changing facilities.What Science is involved?ChlorineChlorine is the chemical that is often used to keep limpidpools free of bacteria that can be hazardous to humans. It kills bacteria through a simple chemical reaction. The chlorine solution breaks down into different chemicals including hypochlorous acid and hypochlorite ion. Both of these kill micro orga nisms and bacteria by attacking the lipids in the cell walls and destroying enzymes and structures inside the cell, thus making them harmless. If not enough hypochlorous acid present the killing process can take much longer. After the cleaning process both chemicals either combine with another or are broken down into single atoms, this then makes the chlorine harmless. Although chlorine is good for swimming pools it may also produce side effects such as* Itching chlorine may have an itching effect on some skin, more likely to affect people with sensitive skin.* The smell chlorine has a distinctive smell that some people may find poorly(p)* Fading clothes clothes may begin to fade if being exposed to chlorine for to long, such as your swimming costume around summertime.* Inhaling inhaling a massive mount of chlorine may be hazardous to your breathing.Health and safetyDarlaston leisure centre will also be a service provider that uses the health and safety act 1974. They will use thi s to ensure that all children using the facilities are safe. They may do this by* ensuring there are ore than 2 staff watching the pools at all times* ensuring all fire exits are clearly labelled and visible* Ensuring that staff is watching children whilst in the gym children should not be in the gym as accidents may occur. Children should be out having fun. The equipment used may be too complicated for them. The age range for this gym is 8-16.* ensuring all food available is able to eat* clearly stating the rules and regulation of the centre and are always followed* making sure that there are qualified first aiders available* ensure that a fire safety point is clearly situated* ensure that all fire alarms workBelow are copies of the emails and letters sent to the companies in order to help me with my research?LettersThis is the letter that I used to send to all of the companies. I edited the letter in order for it to be suitable for the companies.Dear whom ever this may concern,My name is Jaymie lee Howard I am 17 years old and am currently at 6thform, I am studying applied science. At the moment we are currently doing organisations using science. I am using your company as part of my coursework and was hoping you could answer these questions for me in order to help me.I would like to ask you if you could please answer these questions for me.1) What type of work takes place within your company?2) What science is used to help make the products offered for service?3) What health and safety constraints do you have?4) Does everybody follow the health and safety act?It would really helpful if you could answer these questions for me as they are not displayed on the website.

Reality TV Shouldn’t be a Reality Essay Example for Free

Reality TV Shouldnt be a Reality judgeWhen you turn on a television system today, truth TV litters the media. This is what our generation idolizes. But is it appropriate? Is this what we should be watching? When I see adults making fleeceable and stupid decisions, I can only say, No. So I purpose that we ban the brain-melting reality TV material.Most reality TV shows, interchangeable Jersey Shore, is just a brain-numbing wreck that most children, teens, and even adults get sucked into. All this is doing is glamorizing bad decisions, stupidity, and bad behavior. Teens and kids want to be like these people, just now is this how you want them to be? Of course not So why allow children and teens watch reality television?Aside from the horrifying incompetence, reality television is a complete waste of time. Children and teens waste hours of watching reality television. Stupid dialogue and inappropriate behavior is no reason to waste hours of their lives They could be doing more substantial things than to watch reality TV. By allowing them to watch reality television, parents are giving children the right to follow these reality TV stars horrible example and waste out their lives.Another reason we should stop reality television is that it could disrupt our community. Instead of going outside and being active, a lot of people prefer to plosive inside to watch reality television. Instead of filming documentaries that can inspire and prosper, filming crews work with degenerates that pollute our minds. And instead of living a good, clean, and meaningful life, the reality TV stars spend their lifes acting foolish and immoral. Unfortunately, this is a normal truth of our society, though I believe it shouldnt be. Reality television shouldnt be the center of our attention.So as you can see, reality TV should be banned form our society for multiple reasons, including that it glorifies and promotes bad behavior, is a wasteof time, and that it could disrupt our co mmunity. There has to be a better way to use our time, money, and lifes.

Putting An End To Worship Wars Essay Example for Free

Putting An End To Worship Wars EssayThere are galore(postnominal) different kinds of worship styles because there are different kinds of people with different kinds of personalities. America is made up of different races and religion therefore we worship graven image differently. God created mankind in His image and His likeness to worship Him in spirit and truth. We must Worship God according to the principles of Scriptures so that He is magnified, laud and exalted. It does not matter that we express our worship differently. What does matter is that we worship God with all our hearts and inner being. We as the church, the body of Christ must identify to except the difference in worship, if the worship is legitimate and stop trying to force our way of worship on other members of the body of Christ.America is the that nation that has different worship styles in the churches. The change in worship is because of culture changes such as the Internet, computerized television scr eens, and the Interstate freeway. American no yearlong chooses a church by denomination or church doctrine but by worship avail and gift gravitation.Research revealed that churches were growing because of renewal, revival, and ardour not from outreach programs. The excitement of worship produced growth.Worship service are different because of cultural difference, different weird gifts and because the commands and principles of Scripture are applied differently.Worship wars wipe out split churches, caused Pastors to be replaced, caused members to leave, and caused drops in church growth.The Evangelistic church exists to accomplish evangelism, which is communicating the gospel in the power of the Holy Spirit.The Bible Expositional Church exists to meet believers for the work of the ministry through the systematic expositional preaching and teaching of Scriptures.The Renewal Church exists to worship God the Pastor is often the worship leader. Worship is the focus of the service a nd exhortation is the spiritual gift.The Body Life Church purpose and mission is the context of fellowship. The focus is on the cell group and corporate gatherings of believers therefore their chroma is small group ministries.The Liturgical Church exist to serve God with praise and worship and to service other in the name of God. Its strength is their engagement in society causing leaders to emerge.The Congregational Church is a church of balance. They have no single spiritual gift and are describe as a single cell churches. Their strength is balance in ministry.These six paradigms mean that Christians worship differently because we are different. We have different spiritual gifts, different callings, different personalities, different background and different doctrine.In the future of worship there get out be more of a yearning for God, thirst for worship, and worship will be more spontaneous. The Holy Spirit will inspire, and release whole hearted worship in people of all expr essions. Worship will become more of a celebration causing the atmospheric presence of God to be felt in worship.The Impact and Implementation of this Book in My Own LifeThe knowledge that I received from this book has help me to understand the different worship styles. I have a greater obligingness for them because I understand that they are worshipping God in their own way. It also help me to understand why I worship the way I do. I am what we call a radical worshipper. I love Worshipping God and I love when others people worship God. I can fit anyways as long as I can worship God.

Analysis Of Celcom Axiata Investment In Tune Talk Marketing Essay

Analysis Of Celcom Axiata Investment In argument spill Marketing EssayCelcom Axiata is a member of Axiata root word is facing tough competition against the other major telecom rivals. Having coined as malay telco provider that is, Celcom Axiata has weak penetration into some major markets and the system to overcome this is by appointing the nomadic Virtual Network Operators (MVNO) to penet point into the identified markets using their own brand, look and feel.Celcom Axiata note model for straining verbalize MVNO is by having 35% stakes in the company. After over 11 months in operation, Celcom Axiata is reviewing its position in this company whether to remain its stake, adjoin its sh areholding or pullout. antecedent to fashioning any finis with its enthronisation, Celcom Axiata necessarily to evaluate the existing rail line colloquy financial standing and its capability to provide the required return on investment as well as its ability to handle the issues at hands especially those concerning the money flows.IntroductionCelcom Axiata is i of the 4 major mobile telecommunication companies in Malaysia. As at 31st March 2010, Celcom Axiata was ranked as second largest mobile telecommunication company behind Maxis, and ahead of Digi and U wandering respectively. Celcom Axiata is a member of Axiata Group of companies who manage a group of Mobile Telecommunications in the Asia region. Axiata Group was previously known as TM International and crash of TM (Telekom Malaysia) Group. The process of de-merger within TM Group saw the birth of Axiata Group, meant to focus on mobile telecommunications arm of the corporation within the region whilst TM track to maintain its fixed lines communication channel as well as broadband provider.According to the first quarter financial report, Celcom Axiata continue to show doubling digit growth on a YoY basis in all key indicators. Revenue was up 15% whilst Earning Before Interest Tax dispraise and Amortizatio n (EBITDA) increased by 16%. In tandem, Profit After Tax (PAT) was up 24% in the same period.On a QoQ basis, Celcom wield to show positive per lineance. Despite coming off anexceptional 4Q09, which recorded the racyest ever quarterly growth, revenue growth wasmarginal, but still up by 0.2%. Continued focus on tolls saw EBITDA up by 2% with margins improving by 0.7 percentage points QoQ to 45.4%. PAT showed a robust increase of 7% to RM441 million (Celcom Axiata media release, 27th May 2010).Celcom Axiata has been aggressively expanding its network and coverage to cater for the increasing demand by the customers. Despite its continuous efforts to penet prise into the versatile segments in this country, Celcom Axiata still lagging in some of key markets such as the Chinese market segment, immigrant market segment and student market or low income earners segment. These markets are predominantly controlled by Maxis and Digi and leave behind be the key success factor for Celcom Axi ata to capture in order to become the number one mobile telecommunication provider in this country.One of the strategy to penetrate into these segments as single out by Celcom Axiata is by port of having a Mobile Virtual Network Operator (MVNO) approach. MVNO means Celcom Axiata will appoint a third party to run the mobile business using their own brand, leverage on their own strength such as networking, alley of distribution, market and customer service. By doing this, Celcom Axiata can reduce its financial consign on the go-to-market exist which in turn will be born by the MVNO partners themselves.To date there are four MVNOs appointed and launched by Celcom whereby each of them is demoten antithetical market segment to penetrate and capture. Each MVNO is treated as separate entity from Celcom Axiata where the respective MVNOs have full control over their own operations and counseling of the companies except for aura talk Sdn Bhd where Celcom Axiata has 35% share of the company.Being different business model from other MVNOs, tune mouth Sdn Bhd is seen as another Celcom Axiata phrase venture company. Tune Talk is owned by the following shareholders as shown in figure 1 below Tune Ventures (owned by Datuk Seri Tony Fernandes and Datuk Kamarudin Meranun)Individuals shareholders are Datuk Seri Kalimullah Masheerul Hassan, Lim Kian Onn, Jason Lo (the chief operating officer of Tune Talk), Gurtaj Singh (the COO of Tune Talk) and Mark Lankaster (the CEO of Tune Hotels)Celcom decision to have its stake in Tune Talk is to ensure it has some form of control as one the major shareholder. Although Tune Talk caution will have the control over the management of the company but the shareholders will have their voice heard during the monthly board exco meeting. Having acquainted by 2 unchanging exco members from Celcom, it can ensure that Tune Talk business plan and strategies are in line with its goal to become one of the top mobile service provider in t his country.The SituationTune Talk is approach shot its first anniversary on the coming 19th August 2010. Celcom need to assess its investment and evaluate whether Tune Talk business is moving to the proper direction and hence generate the desired dividends to shareholders.In order to achieve the target, Celcom needs to keep track of Tune Talk managements way of running the business. The permanent exco members sitting in the boardroom must(prenominal) be able to drill down to the bottom line and analyze their way of expending their fund.This is in truth grievous to Celcom as the major shareholder in Tune Talk so it can decide on the next course of actions such as to interfere more fund into Tune Talk, or to remain its position without adding anymore cash or worst case decide to pull out from the pack.Prior to such decision, Celcom needs to gather as lots information as possible with regards to Tune Talk financial position, business directions, marketing strategies and other co mmercial matters which will be the key determination factors.Based from the previous exco meeting it was learned that Tune Talk is facing difficulties to move forward with its business plans and marketing strategies due to shortage of cash flow. Tune Talk Chief Financial policeman (CFO) during his presentation to the board of directors highlighted the following scenarios a. Increase in Managed Services beTune Talk adopted the managed services concept to deploy and maintain the Intelligent Network (IN) billing system, network related infrastructure namely mindless Message Services Centre (SMSC), Home Location Register (HLR) and other Value Added Services (VAS).Managed services concept is a new trend in telecommunication and information technology (IT) business whereby the customers or business operators do not buy outright the related systems but pay to the supplier or provider on usage base. This method saves the company from spending an upfront purchase of an asset, hence reduce the cash outflow. Managed services can help a particular company to avoid from having to allocate depreciation price which may impact the company balance sheet.In the case of Tune Talk the burden they are facing now is due to the increase in the amount to be spent on this managed services. The deal they are having right now is based on the number of subscribers using the system, the higher the number of subscribers the higher the managed services cost to be incurred. The amount will grow in tandem with the inhalant of new subscribers where the intermediate cost per subscriber remain unchanged. Unlike buying own fixed asset, the average cost will tend to reduce as the number of new subscribers grow until it reaches the economic of scales.Increase in Channel and Distribution CostIn Malaysia, all the mobile operators are highly hooklike to the normal traditional channel ie. mobilephone dealers to sell its SIM waggle and recharge vouchers.Being too dependant to this type of distri bution channel will increase the companys cost of sales whereby for every sales of SIM tease or recharge voucher the company needs to allocate some amount of percentage as an incentive for them to push button its products over the competitors.Traditionally, in mobile telecommunication business the channel of distribution consist of 3 layers distributorsmaster dealersordinary dealersNormally only a handful of distributors are being appointed to distribute to the master dealers whom will then sell it finished the ordinary dealers. Each of these channels will keep a small percentage as their incentive from the retail price.Operators are ordinarily stuck with this channel cost which they cannot run away with in order to push their products to the customers.On average an operator will have to spend not less than 10% from its retail price being part of the channel cost. assignation for Marketing CostAs a new mobile operator in Malaysia competing against the other 4 major mobile telec ommunications service providers Tune Talk is facing a tough time to introduce its brand to the market.According to Nielsen Co Malaysia 2009 report (a research company), the telecommunication companies are among the highest contributor to the total advert expenditure in Malaysia with Celcom leading the pack at RM 115.8 million, followed by Telekom Malaysia at RM 94.3 million, Maxis with RM 89.7 million and Digi for RM 87.1 million (see Figure 2 below). Newspaper and TV advertisement represent the top 2 categories for advertising followed by Radio, Magazine and Outdoor.To date Tune Talk had already spent RM 2 million in their advertising cost through billboards, newspaper, TV and radio advertisements. This amount is rather very small compare to the amount spent by the big giants and it may not give the required exposure that Tune Talk expected to create its brand awareness to the market place.Based from the report and dip stick survey conducted by Tune Talk marketing department their brand index is still very low and they would require more fund to be pumped in for this purpose.Slow Moving of Customer Recharge ActivitiesTune Talk is only selling prepaid mobile and it main source of income is by selling the SIM card and recharge vouchers. As far as Tune Talk is concern the revenue generated from these sales are considered as their income (based on the generally Accepted be Principle).This is due to the fact the income will be reported when it is earned (Ross, Westerfiled, Jaffe, Corporate Finance, 7th edition). The good thing about prepaid business is the transactions are in cash terms. This means Tune Talk will get to record the transaction into its book as and when the SIM cards or vouchers are interchange to the distributors.In accounting, the revenue from sales of SIM cards and recharge vouchers will only be realized upon usage and not upon sales. Nonetheless, as far as Tune Talk income is concerned it has already acquired the specie from the distributor and realized in its book as income as per GAAP.As a rippling effect to omit of awareness of its brand in the market place, Tune Talk sales of SIM cards and recharge vouchers are moving rather at a very slow pace. Table 1 below is example of the average sales and projected 1st year revenue from SIM cards and recharge vouchers Table 1ItemsAverage Monthly RevenueProjected 1st Year RevenueSIM CardsRM 500,000RM 6,000,000Recharge VouchersRM 900,000RM 10,800,000TotalRM 1,400,000RM 16,800,000This figure is far cry from the original cipher that Tune Talk has to make which is RM 36.0 million for its first year operation and increase to RM 50.0 million and RM 72.0 million in year 2 and 3 respectively. high school Customer Turnover or Attrition RateIt is common in the prepaid business industry that users tend to move or hope just about from one operator to another operator to find for better offer and cheaper cost. Tune Talk is too affected by this game by the customers whereby the rate of customers churning out or leaving for another brand keep on increasing on month-on-month basis.Malaysian prepaid business industry rate of customers staying in a particular operator (industry language is length of stay) is in average of 6 months. as yet in the case of Tune Talk its customers average length of stay is a mere 3 months which is about half of the industry average.The impact of this short stay will cause a high acquisition cost to Tune Talk whereby its cash flow will be badly affected. In order to stay healthy, Tune Talk needs more than 3 months for each customer with average usage of RM 30 per month to recover its upfront acquisition cost such as the channel incentive, marketing cost and the other variable costs.Shortage of CashTune Talk put downed off its business with RM 7.5 million worth of shares with 35% own by Celcom whilst the remainder are by several other individuals. After 11 months of operations, Tune Talk is now facing with the most critical moment in its business where their cash flow is deteriorating. Despite being a lean and mean in expenditure and had not spent any bills on fixed asset, Tune Talk still face the cash flow difficulty.An area that has badly affected Tune Talk cash flow is the channel incentive and the wholesale airtime rates that it has to pay back to Celcom. With intense competition Tune Talk needs to set its incentive on par or slightly better than the competition in order to get the channel attention and support.On the other hand, the prepaid business market is competing on the shout out rates to be offered to the end users in order to beat the others. Since Tune Talk is buying its airtime from Celcom at fixed rate, the competition which had forced Tune Talk to also lower down its selling rate to the end users had cause Tune Talk margin to shrink and became smaller. The result is, the income collected from the sales of SIM cards and recharge vouchers will have to be spent largely to incentive and wholesale airt ime to Celcom, leaving only peanuts to Tune Talk to be used to re-generate its business. It is also better for Tune Talk to maintain a level of working capital that allows it to make it through those crunch times and continue to operate the business within tight budget (Cater McNamara, Authenticity Consulting LLC).ActionCelcom Axiata really need to review its investment in Tune Talk Sdn Bhd by looking at the present situation and its potential. It is a known fact that every new business need some times to be able to stabilize and start to show positive result out of its investment.As far as telecommunication industry is concerned, a minimum of 3 years is required in order for a particular mobile operator to have a strong foothold and have substantial subscriber base to be relevant.The question here is whether Tune Talk strategies are gearing towards the right direction which will guarantee to bear fruits at the end of 3 years? How much will investor need to pump in to ensure that T une Talk can still survive until the 3rd year ?It is imperative that Celcom Axiata representatives in the Tune Talk board of directors to insist Tune Talk management to review their existing business models which had obviously affected their cash flows. Serious attention must be given by Tune Talk management to revisit its dependency on the existing channel which will become its biggest threat in trying to minimize its cash out flows.Tune Talk management also needs to re-negotiate with its managed services provider to review the charges being imposed to Tune Talk for every new subscribers added into the system. The charges should be on decreasing trend as more customers being added.Tune Talk may also indirect request to consider finding new manage service provider should the negotiation come to a dead end. This is important in managing Tune Talk spending over the long run.Prior to Celcom Axiata to make any decision with its investment, it needs to analyze Tune Talk financial condit ion. It is advisable for Celcom Axiata to scrutinize the Tune Talk financial management and ensure that all the monies are well spent and efficiently managed to protect its interest. Celcom Axiata finance manager needs to advice the Chief Financial Officer (CFO) of the real condition of Tune Talk by analyzing its financial statement cash flows.Having spent for over RM 2.6 million and holding 35% of Tune Talk shares, Celcom Axiata has the responsibility to report to its board of directors on the progress of its investment. The Celcom Axiata board of directors must be very interested to know whether the management of Celcom Axiata has made the right decision by investing in Tune Talk. One thing interesting in this business model ie MVNO is because the airtime being sold by Tune Talk (in this case the MVNO) is using Celcom network infrastructure. This means even though Tune Talk does not make huge profit and may not be able to provide the required rate of return in terms of dividends t o the shareholders but as far as Celcom Axiata is concerned, it still make money from the airtime sold. Thus, board of directors of Celcom Axiata may well be pleased by the increase in Celcom Axiata revenue alone rather than going down to the details of earning through the Tune Talk dividends.Another area that needs special attention is to assess the existing Tune Talk management team style and business competencies. This industry is regarded as highly competitive and it takes excellent team to be able to compete with the big boys (as being referred to the seasoned mobile operators). Celcom Axiata representatives in the Tune Talk exco members must be able to provide information to the Celcom Axiata management whether there is an existence of conflict of interest in the Tune Talk management team. Although according to Vishny and Robert W, NBER Reporter, September 1989 said that the standard and ideally corporation allows management to have 5% of shares. This can be ascertained by jud ging into their way of running the business, their seriousness in fulfilling the required tasks as outlined in the business plans, their priorities in spending and handling the cash flows.ConclusionIt is probably wrong for Celcom Axiata to make decision to pull out from this pack by merely basing on the first 11 or 12 months Tune Talk operation. However any decision to increase its capital in Tune Talk either by buying more shares or by pumping more money to support Tune Talk operations must be done with great detail analysis. It is not advisable for Celcom Axiata to simply inject more cash to Tune Talk without seeing any progress or improvement on some of the area of concern which have been highlighted in previous pages.The major issues that need to be really scrutinize by Celcom Axiata financial manager is on the cash flow management. The action items highlighted in previous pages suggested Tune Talk to improve the way it runs its business which will eventually give a positive im pact to its cash flow.It is said that high risk will normally generate high rate of return, but having said that, the save decision at the moment is for Celcom Axiata to remain its position without adding more cash but to continue to monitor Tune Talk progress and improvement. After all, Celcom Axiata is the one who makes more money from anyone else in the pack which is through the sales of wholesale airtime.This investment although had not been able to generate dividends to Celcom Axiata but somehow has managed to complement the weak area that cannot be penetrated by Celcom Axiata using its own brand.