Case study – to decide whether to bid or no-bid<\/p>\n
Paper details:<\/p>\n
write a report of my recommendation to the management, whether to bid or not to bid, using investment evaluation techniques and business reasoning.<\/p>\n
Presentation Exercise<\/p>\n
Prepare to present to your senior management the key decisions to be made, as to whether or not to bid for the opportunity described below. You should bring hard copies of any presentation with you and prepare to talk for around 10 minutes before taking questions on your presentation.
\nThe Customer – AB Managed Services (ABMS)
\nABMS is a global managed services company with locations in over 50 countries worldwide. According to its latest company report it has net revenues of \u20ac19.7 Billion for Fiscal 2013 (12 months ending 31st March 2013) which is a reduction of 10% on the previous year\u2019s revenue figures. It currently has over 170,000 employees (4400 of them at senior executive grade) based in over 150 cities worldwide (35,000 in India alone). Recent press reports have indicated major changes in the companies focus with over 20,000 jobs being lost in Europe and the USA but expansion taking place in APAC of over 10,000 new jobs.
\nThe CEO, Desmond White, has reiterated the company\u2019s focus of working to control costs wherever possible whilst at the same time seizing new opportunities for growing revenues in the new emerging markets.
\nThe customer currently has over 27,000 connections, 10,489 with Vodafone OpCos, 5,354 with Vodafone Partners and Affiliates (A&Ps) with the remaining 11,000+ connections currently lying with our competitors. They are unsure of the competitor figures because of poor management information in this area. Current revenue generation is \u20ac7.8 million with OpCos, \u20ac3.4 million with A&Ps and approximately \u20ac6 million with the competition.
\nAt present Vodafone spends over \u20ac150 million with ABMS for services provided by them. The current opportunity is for a two country bid UK and Germany which are the two countries likely to face the majority of job losses in the next year. (Reducing from 14,560 down to 11,620).
\nThe current base and revenues in the two countries are as follows
\nCountry Number of
\nconnections Total Revenue Monthly ARPU Connections with
\nthe Competition Competition
\nRevenue
\nUK 4589 \u20ac2,900,000 \u20ac53 1238 \u20ac742,000
\nGermany 2345 \u20ac1,600,000 \u20ac57 654 \u20ac392,400<\/p>\n
We have been asked to bid for our existing connection base with a reduction of 20%, however, ABMS have informed the Global Account Manager that the expect a reduction in spend of over 40% in the next two years, however, the P&L produced by your commercial team is showing a negative EBITDA of -5% if we achieve their targets.
\nIn recent months there has been a growth in Data connections BlackBerry and Mobile Connect Cards (MCC) both of which generate higher revenues per user than voice connections. The customer believes this trend will continue as they rationalise their current portfolio of properties across the globe with a move to more flexible working practices, remote working, hot-desking etc. However, the customer in the present climate will not commit to any growth<\/p>\n","protected":false},"excerpt":{"rendered":"
Case study – to decide whether to bid or no-bid Paper details: write a report of my recommendation to the management, whether to bid or not to bid, using investment evaluation techniques and business reasoning. Presentation Exercise Prepare to present Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-240259","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/240259","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=240259"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/240259\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=240259"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=240259"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=240259"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}