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					Term Paper Strategic Management

Executive SWOT analysis on a Call Center Service

Prepared For

Dr.M.A.Mannan MBA Program
East West University

Prepared By

Moeid Muktadir Rizvee ID : 2007-2-95-080

Letter of Transmittal

Date: July 6, 2009 Professor Dr. M A Mannan Course Instructor MBA Program Dept. of Business Administration East West University, Dhaka

Subject: Submission of term paper on” SWOT analysis of Legato Service Limited”

Dear Sir:

It gives me immense pleasure in presenting this term paper on “SWOT analysis of Legato Service Limited” which was assigned to me. This has been a great opportunity for me to gain an extensive knowledge on SWOT analysis. It has provided me with a great scope of applying this gathered knowledge in the practical field.

I would be honored if you go through my Report and find it worthwhile as I really put in a lot of effort while preparing it.

With regards,

MOEID MUKTADIR RIZVEE ID No. 2007-2-95-080 MBA PROGRAM EAST WEST UNIVERSITY

Document Name Document Type Created: Version:

SWOT analysis of Legato Service Ltd Term Paper July 6,2009 V1.0

Document Revision information Rev. 1.0 Author Moeid Muktadir Rizvee Date July 6,2009 Description Prepare a SWOT analysis on the legato service Limited

Table of Contents
Organization Background: ............................................................................................................................ 5 About Legato Service Ltd .......................................................................................................................... 5 Vision:........................................................................................................................................................ 5 Mission: ..................................................................................................................................................... 5 Product and Services offered ........................................................................................................................ 5 HCCSP (Landlord-Tenant/Franchisee)....................................................................................................... 6 Call and Contac Center Services/BPO ....................................................................................................... 6 Professional Services................................................................................................................................. 8 Organization Structure.................................................................................................................................. 8 Financial Structure ........................................................................................................................................ 9 Establishment cost .................................................................................................................................. 10 Balance Sheet:......................................................................................................................................... 10 Marketing Issues ......................................................................................................................................... 11 Marketing for inbound customers .......................................................................................................... 12 Computer based Marketing: ............................................................................................................... 12 Paper Based Marketing ....................................................................................................................... 13 Physical Advertisings ........................................................................................................................... 13 Human Resource Management .................................................................................................................. 13 Technological Resources ............................................................................................................................. 14 Premise based own technology .............................................................................................................. 14 Hosted technology .................................................................................................................................. 15 Metrics of SWOT analysis............................................................................................................................ 15 Possible Strategic actions............................................................................................................................ 16

Organization Background:
About Legato Service Ltd
Legato Service Ltd is a UK-Bangladesh joint Venture Company starts business in Bangladesh in February 2007. It is offering IT Management Services and Hosted Contact Center Services to clients home and abroad. It also offers the professional services to HCC and CC Clients. It holds both the Hosted Call Center (HCC) and Hosted Call Center Service Provider (HCCSP) license. Legato, is at the forefront of the call centre revolution in Bangladesh. It is the pioneers to have introduced the carrier class fully IP based Hosted Model (Landlord-tenant concept) here in Bangladesh. Legato service Ltd. also the first to offer TIA 9421 compliant Tier III data centre for our hosted clients

Vision:
To be referred as the IT enabled service partner of choice to build a successful and profitable future both for the clients as well as legato.

Mission:
To provide inspirational and cost effective business solution to clients.

Product and Services offered
Legato starts with a highly experienced management team with proven project management capabilities, leading edge technology platforms & best operating practices from our global strategic partners. Currently it is offering the following three strategic Business Unit of services:  HCCSP (Landlord-Tenant/Franchisee): Hosted Carrier class platform to provide a virtual multimedia call and contact center and data center to HCC service providers.  Call and Contac Center Services/BPO: Business processing Outsourcing (BPO) to clients and abroad  Professional Services: – –
1

IT integration, CRM, Biz Process optimization. Project Management.

TIA-942 is the telecommunication infrastructure standard for data centers. This standard, however, does not only cover the telecommunication part but also other important factors which lead to a robust data center

– –

Business Continuity and Risk Management. Software license Management and migrations.

HCCSP (Landlord-Tenant/Franchisee)
Hosted Contact Center is a network-based service in which a service provider owns and operates a contact center technology platform and leases its services and features to end-users for a monthly or usage-based fee. The hosted model is gaining popularity because of its strong value proposition and low cost of ownership. Benefits of going for the Hosted Solution: No capital expenditure - Only pay for the technology features used on a monthly operating expense basis Maximum flexibility - As new entrants do you know the mix of services required – inbound, outbound, number of agents etc. - Growth plans - difficult to predict the size of technology system you require in the future Known Total Cost of Ownership - With hosted model you need no software or hardware to maintain; no upgrade program to manage; no ongoing IT skills training and no technology obsolescence to overcome. Legato Service Offerings: – – – – Contact Centre Support Telemarketing Help Desk Pre & Post Sales Support

Call and Contac Center Services/BPO
A call center is a centralized office used for the purpose of receiving and transmitting a large volume of requests through telephone. The call center is operated by a company to administer incoming product support or information inquiries from the customers. Legato service is offering Business Process Outsourcing services to local organizations in the fields of Banking, Insurance, Telecom, ISP, content Development, E-Commerce, FMCG, Logistics,

Retail/local chain etc. The goal is to continually provide its clients with cost-effective, flexible, scalable solutions and thereby enabling them to a competitive edge by leveraging the power of outsourcing. Legato Service Ltd. has one simple & clear goal - to ensure customer delight at the end of each interaction. We believe in optimizing each customer contact to deliver business value to both the end-customer and the client.
Legato offers both voice and non-voice BPO services across various industries and domains. BPO offerings can be segmented in two broad areas:

1. Customer Interaction 2. Back Office Operation

Customer Interaction: Legato service ltd. provides both the inbound and outbound services in the following sectors:         Telemarketing Collection of order and process those. Customer care programs Market research (pre and post sales) Verifications Account supports Inbound query resolutions Help desk

Back Office Operation Back office operation is an integral part of customer’s lifecycle. They often form a support system of the business and consistently contribute customer’s satisfactions. Legato service ltd. offers our clients optimize various back office processes to manage workflow, time and resources. Such as:      Digital content management Form processing Advertising through our website Data processing Offsite disaster recovery center (DRC)

Professional Services
Legato services ltd offers also the professional services to its valuable clients. such as IT PROGRAMME AND PROJECT MANAGEMENT: • Program Management Office (PMO) • Implementation • Maintenance and Support. CONSULTANCY: • Operation and Management • HRM, Training and Recruitment • Marketing and Promotion

BUSINESS CONTINUITY: • Risk Management • Disaster Recovery • Security CRM: Customer Relationship Management: • Trade Marketing and Distribution IT • Application and Software Development • Software Lifecycle Management and Migration. Other Services: • • • • • System Integration IT Security Hosted Data Centre Hosted Shared Services IT and Services Help Desk

Organization Structure

The CEO is the managing director of the legato Service ltd. Under the managing director there is financial, marketing, Administrative and HR and the Technical managers. The technical and operational manager is the lead of all the business units of legato service ltd. Under the technical and operational manager there is individual unit manager who have control over the subordinates. The organ gram of the legato service is given here:

Managing Director

Manager Finance & Accounting

Manager Marketing

Manager Administratio n & HRM

Manager Technical & operations

Finance & Accounting Executive

Marketing & Sales Executive

Admin & HRM Executive

HCCSP unit Manager

Call Center Unit Manager

Professional Service Unit Manager

Office Assistant

Executives

Executives

Financial Structure
Legato service ltd started its business in Bangladesh from the beginning of 2007. From its beginning it have a good startup and very strong financial conditions in the following years. This year company gets the profit from its all units. The following charts and figures gives the standing of the legato services of the financial years.

Establishment cost
The following financial chart gives a view of the initial investments

Particulars Hardware Equipment Cost Salary: Manager Assistant Technical Manager Executives Office Staff Loan Payable Space allocation Advance Internet connection Rent Furniture and decoration Utility AC (2*40,000) Generator Software Web site Training BTRC license Others Total Cost

Yearly Cost 31,216,000 1288,000 560,000 3,656,000 48,000 650,000 575,000 340,000 560,000 430,000 300,000 180,000 275,000 1,30,000 55,000 148,000 35,000 50,000 40,366,000

Balance Sheet:

Projected balance sheet:

FY 2007 Assets
Current Assets Cash in bank Cash Accounts receivable Total Current Assets Fixed Assets Machinery & equipment Furniture & fixtures Total Assets

FY 2008

FY 2009

1,750,000 2,500,000

1,500,000 3,800,000

1,000,000 5,800,000

470000
4720000

539200
5839200

605000
7405000

1,544,000
150000 6,414,000

1,544,000
150000 7,533,200

1,544,000
150000 9,099,000

Liabilities and Equity
Current Liabilities Salary Payable Accounts payable Taxes payable Total Current Liabilities Long-term Debt Bank loans payable Total Liabilities

2706000 1270000 0 3976000

3318000 1270000 0 4588000

3840000 1390000 470000 5700000

1500000 5476000

1250000 5838000

750000 6450000

Owners' Equity
Invested capital Net Profit /Loss Total Owners' Equity 1944000 -1006000 938000 1944000 -248800 1695200 1944000 705000 2649000

Marketing Issues
The main marketing part is segmented in 2 sections.  Marketing for inbound customers



Marketing for outbound customers

Marketing for inbound customers
Legato service Limited starts it inbound marketing from the very beginning of its journey in the local market. The following strategies it has followed to capture the local market and clients.

Computer based Marketing: 1. Email and phone to the customers proactively to let them know about legato’s products and the services. 2. E-advertising by using banners, mails and adverting in several web sites. 3. Direct Business to Business contacts with the clients. 4. Legato also creates blogs and gather information from the clients and customers and get updated with the other organization services and products.

Paper Based Marketing
1. Initially and still now legato gives news paper adverting for their product and services to let the customer know and attract them. 2. Magazines and posters are also a medium for advertising of the legato services.
3. Moreover, legato do so corporate advertising which is directly to the clients.

Physical Advertisings
1. Legato service arrearage conference with its prospective clients and it help them to make a good and reliable relationship with the clients. 2. Trade show and call center fair is another important area where the legato service do its advertising for its products and services. This year they attended at Call Centre Expo & CCF Conference 2009, Birmingham, UK.

Human Resource Management
Legato service ltd. empowers our Call Center employees to foster individual ownership, teamwork, and improved overall performance. Legato services ltd also adopting the best Human Resource practices focusing on the following areas: • Call Centre HR practices with special emphasis on Call Centre Employee Satisfaction and Retention, Call Centre Recruitment and Selection, Call Centre Training and Development and Leadership and Communication. • Career Path, Succession and Advancement planning includes career advancement, career path, and succession. Our continuous development programs include analysis of leadership attribute profiling, succession candidate identification, training and mentoring, and career path definition and planning. Besides, legato's plan includes key matrices for leadership competencies and development programs. These activities help employees to identify key strengths and improvement areas in succession planning and leadership program management. • Compensation, Rewards, and Recognition policy and procedures are aligned with legato's

over all strategy which emphasizes on a competitive compensation approach, continuous improvement, right fit incentive program and rewards and recognition of the talents. • Employee Satisfaction and Retention Practices are focused on alignment with strategy, corporate spotlights, employee morale, measurement through regular survey, and evolving retention drivers. • HR Mission, Strategy, and Structure Practices concentrate on a direct perspective on employee needs and attitudes. legato has several benchmark partners from multi-level and cross-functional teams to address issues that will affect a broad spectrum of employees. This approach increases employee buy-in for changes and ensures programs align with employee needs. • Performance Management Practices do include a management by objectives emphasizing on advancement and recognition, periodical appraisals, measurement against key performance indicators, regular feedback, coaching and mentoring. • Recruitment and Selection Practices with detailed procedure of advertising the position, developing candidate sources, identifying hiring needs, measuring recruitment, recruiters, screening candidates, selection tests, and job offers. • Work Environment and Culture having a fun-filled environment with communication, diversity, employee empowerment, flexibility in work place, dynamism in the leadership of the top management, work rotation and relocation and the team work. • Human Resource Information System meeting all the information need of legato to make quality decision as well as employee services on a round-the-hour basis.

Technological Resources

Premise based own technology
- Means that you must specify, procure, install and support all technology used within the call centers - Requires you to have considerable CAPEX, tech resource & know-how - Own risk for technology function - Call Centre ‘model’ or Service Provider ‘model’

Hosted technology
- Solutions delivered using IP technology - Full integration of telephony, email and CRM components - Provided on an OPEX basis - Shared risk with Service Provider - HCC ‘model’ Besides of that Legato service ltd. Have its own team directly interaction with the clients who are doing several jobs for the clients.

Metrics of SWOT analysis
Strength Weakness 1. The image of Bangladesh is not good enough in the world market. 2. Proficiency over the English Language is not good enough. 3. Cultural and geographical distance from the west. 4. Customer Service Culture for the

1. Business Strategy and IT Strategy Alignment which can make a good output to the end. 2. Implementation, Maintenance and Support team which can provide a satisfactory support to the clients. 3. 24x7 service for the BPO will make both the local and foreign customer more satisfied. 4. Information Technology Infrastructure Transformation is optimized with the change of the new technologies which make a better ability to respond to business challenges 5. Customer centric and quality driven approach make the service more effective. 6. Unique culture, motivated and educated work force and low staff turnover make a strong contender for offshore market.
7. Legato service ltd is equipped with the

legato service is good but not strong enough.
5. More dependencies on the foreign clients is problematic for the organization as it is a single line business organization. 6. Time difference with the western world is another problem for legato service. 7. Uninterruptable electricity and uninterruptable internet connection is making disturbance of the business.

leading edge technology platforms & best operating practices from our global strategic partners, enabling to offer customers a customized and competitively advantageous service.
Opportunity 1. As there is unique culture and educated work force coupled with a stable economy,
Bangladesh is a strong contender for offshore market. So legato can capture that opportunity

Threats 1 Vulnerable economic condition (recession) may make some disturbance is the growth of the country. Sustainable competition from BPO heavy weights. Abusing the Call Center technology to the illegal VoIP. Overpromised but under delivery.

2. Government sector is also a growth area for
BPO with the potential for new government service.

2

3

3. With the middle management shortage, very
high employee turnover and increasing cost, many in the industry are looking for alternatives. So Bangladesh as well legato may be a good alternative for the BPO services.

4

4. Franchisee model can build a capability
early.

5. Available IT & Telecommunications
Infrastructure and tax reduction from the government on that sector.

Possible Strategic actions
Although late to get on the BPO band-wagon, Legato Service Ltd. has the potential to offer quality off shoring solutions at a fraction of cost. With abundant skilled & passionate manpower, the right policy framework, language skills & entrepreneurial mindset, we can offer unique capabilities and systems to set measure and monitor quality targets. Furthermore, legato is in favorable position to offer a 24x7 services and reduction in turnaround times by leveraging time zone differences (similar to other local and even India organizations). Our unique geographic positioning makes this possible.

Legato has the added advantage of patronage from the Government who support very liberal policies on this upcoming industry by offering tax advantages, & reduction in duty for capital machinery & software. Our policy also advocates the hosted model (landlordtenant/Franchisor-franchisee) to build early capacity to handle international volume. Moreover legato have to focus on to provide a uninterruptable electricity and internet facilities to the service stations to provide a good service to the clients.


				
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