Ateneo Regis MBA Talk Bpo Strategies Slide Share Promo
1. Ateneo De Manila University
Graduate School of Business
Dissertation Study
For the Ateneo-Regis Master’s Degree in Business Administration
SUBJECT: Strategic Management & Defence
Talk Bpo Inc.
To: Prof Dr. Albert Buenviaje
From: Michael AJ Conroy MBA
MBA Regis Defence with Honours
Date: 24th of August 2012
2. INTRODUCTION
The Document you are about to embark on is a brief
introduction and frame work to real life business
strategies which have actually worked or are currently
in process within the BPO/KPO/IT Industry within SEA,
South East Asia.
The 170 page BPO/KPO/IT research document is in the
process of being self-published and will be for sale
soon in well-known good book stores and on line web
sites.
If you like what you briefly see here and require further
information now please feel free to drop me a line at
strategies@talkbpo.com and I will revert as soon as
possible and try to answer your questions.
Regards for now and best wishes,
Michael AJ Conroy MBA
Author of BPO/KPO/IT Strategies in SEA.
Co-Founder & Non-Executive Director of
www.talkbpo.com & www.facebook.com/talkbpo
3. TALKBPO BUSINESS CONSULTANCY
Table of Contents Page No.
1.0 EXECUTIVE SUMMARY 5
1.1 INTRODUCTION
2.0 RESEARCH DESIGN & METHOLODGY 7
2.1 LIMITATIONS OF RESEARCH
3.0 MARCRO ENVIRONMENTAL ANALYSIS 8
3.1 Social Cultural, Demographic Forces
3.2 Talk Bpo Assessment of key Social Cultural Demographic & Natural Environment Variables
3.3 Technological Forces
3.4 Economic Forces
3.5 Exchange Rates
3.6 Political Government & Legal Forces
3.7 Industry & Competitor Analysis
3.8 Climate and Environmental Forces
4.0 INDUSTRY & COMPETITOR ANALYSIS 28
4.1 Michael Porters Five Generic Strategies
4.2 Porters 5 forces of Competitive Analysis
4.3 Competitive Profile Mix (CPM)
5.0 MARKET ANALYSIS 56
5.1 Market and competitor trends
5.2 Market Segments
5.3 External Factor Evaluation Matrix (EFE)& recommended Strategies
4. 6.0 COMPANY ANALYSIS 73
6.1 Vision and Mission of the company
6.1.2 Revised new mission vision statement
6.2 Mc Kinsey’s 7S Framework
6.2.1 Talk Bpo Staff Responsibilities
6.2.2 7S Strategy Checklist
6.3. Key Financial Ratio Analysis
6.3.1 Projected Financial Ratios
6.4 Analysis and Recommendations of IFE, Internal Factor Evaluation Matrix
6.5.0 Strategic Formation Analysis & Recommendations Matches
6.5.1 Strength Opportunities Analysis Strategy Match
6.5.2 Strengths Threats Analysis Strategy Match
6.5.3 Weaknesses Opportunities Analysis Strategy Match
6.5.4 Weaknesses Threats Analysis Strategy Match
7.0 STRATEGY INFORMATION TOOLS 107
7.1 Industry SWOT Matrix
7.2 SPACE Matrix
7.3 Internal-External Space Matrix (IE)
7.4 Grand Strategy Matrix
7.5 BCG Matrix
7.6 Summary of formulation Strategies
7.7 Quantitative Strategy Planning Matrix (QSPM)
8.0 RECOMMENDED STRATEGIES 121
8.1 Medium to Long Term Strategies
8.1.2 Marketing Penetration
8.1.3 Service/Product Development
8.1.4 Forward Integration
5. 8.2 Short Term Strategies
8.3 Summary of Short term Strategies
9.0FINANCIAL PROJECTION AND RECOMMENDED STRATEGIES 128
9.1 Talk Bpo Income Statement
9.2 Projected Sales Activity
9.3 Estimated Calculated Projections
9.4 Income Statement with Percentage of Sales
9.5 Projected Balance Sheet
9.6 Balance Sheet Vertical Analysis
9.7 Projected Cash Flow Statement
10.0 STRATEGY EVALUATION MONITORING & CONTROL 134
10.1 Talk Bpo Strategy Map Flow Process
10.2 Strategic Map Initiative
10.3 Balance Scorecard Table for Year 2012-2013
10.4 Measuring Organisation performance
10.5 Contingency Planning Down Side/Up Side & Monitoring
References:
Research Methods and Reading Materials:
Personal One on One Interviews:
Industry Mentors:
Listed Figures:
Appendix 149
Revision 158
6. 1.0 Executive Summary
Talk Bpo Business Consultancy, (TBBC),www.talkbo.com , is a Call Centre Industry Serviced Company
& was a sister company of Telebrokers Telecom (Australia) Pty Ltd, incorporated in 1998 in Sydney
Australia. The Talk Bpo division was established in 2008 in The Philippines. TBBC objectives in
conjunction with Telebrokers Telecom, is to currently identify business opportunities within
Australia, UK, Middle East & South Africa & influence partial operations to off shore to The
Philippines. This allows foreign companies to become more cost effective and profitable, taking
advantage of the low cost tax fringe benefits, low operations cost, in lieu of creating jobs within the
IT/BPO Industry, information technology & business processing outsourcing services.
Unlike conventional IT/BPO’s within the Philippines, TBBC has a unique value proposition in
comparison to the competition. With a combined executive work force of 70 years plus from DuPont
& Microsoft and having served in the IT/BPO industry for over 15 years, TBBC is able to influence and
assist prospective clients to off shore, with minimal exposure and risk in over heads & operations.
TBBC can either run customer call centre campaigns for the client or operate the campaign in
conjunction with the assistance of a sister company which could be a fortune 500 IT/BPO supplier.
From business operation process to set up, to leasing seats with in a call centre for the Australian,
UK, Middle East & South African Markets, TBBC can increase growth and business development with
its vast network of affiliated global consultants via our web site.
The IT/BPO Industry has grown 24% in 2011 and has earned USD $11 Billion within the Philippines.
Taking into consideration the domestic clients whom have earned US $2.5 Billion. By 2016 the
industry has targeted 1.3 million jobs with the added advantage of being a 24/7 industry and is
expected to earn over US $25 Billion by 2016.
With over 30 IT/BPO Companies in 2010 earning a combined income of 130 Billion Pesos, the trend
is set to grow exponentially on average 10% + per year. To compete with the market place TBBC has
two business models. 1. Direct Operations, similar to the competition, but within the sme market &
2. Ancillary, Integration & Facilitation Services unlike what a majority of the direct competition
currently don’t offer.
With an average EBITA return of 60%-65% forecasted. TBBC is on target to grow with the assistance
of a Marketing Management Strategy Plan which will focus on more International business clients
via means of Market Penetration, Market Service Development focusing on Mergers Acquisitions &
Fit Outs & Forward integration of a Franchise Model to assist boutique call centres to start up IT/BPO
services in the future.
With the potential threat of the industry becoming commoditised and minimal barriers to entry for
competition, TBBC is well poised and has a very astute & flexible mobile business model, supported
with an efficient and effective Management Strategy to be on target for stake holders.
For future developments TBBC is in a position to offer competitive innovated unique business ideas
in conjunction with fortune 500 partners and the local government where traction has already been
gained. For example a call centre child cares franchise, which will reduce attrition and allow to
supply more jobs within the industry. TBCC anticipates recurring business and sustainable trading for
the next 5 to 10 years.
7. References
nd
1. http://www.bsau.org/&http://www.kellyservices.co.in extracted 22 July, 2012.
2. http://jatps.hubpages.com/hub/The-Philippines-is-Still-the-Undisputed-Text-Capital-of-the-World
nd
extracted 22 July, 2012.
th
3. The Manila Bulletin Sunday Newspaper July 8 , 2012.
4. BPAP, Business processing association of the Philippines, IT/BPO Conference Radisson Blu Hotel, Cebu
The Philippines, June, 2012.
5. http://image.guardian.co.uk/sys-files/Guardian/documents/2008/02/01/SEA_CABLES_010208.pdf,
th
World Submarine Cable Grids, extracted 25 July, 2012
6. http://www.cloudhypermarket.com/whatiscloud/CloudUptake extracted 21st July, 2012.
7. David, Fred R, “Strategies in action”, Chapter 3, Strategy Evaluation & Control, External Assessment
(2010): 103
8. http://talkbpo.com/index.php?option=com_content&view=category&layout=blog&id=22&Itemid=80
th
Current Services extracted July, 25 , 2012
9. Tholons, Nasscom, 2011
10. Gartner Global Business Processing Outsource Research, 2011
11. http://www.atkearney.com/ research and statistics on business processing outsourcing.
12. Bangko Sentral Pilipinas, 2009
13. Tholons, Nasscom, BPAP 2012
14. Source World Bank & IMF, 2012
15. http://www.tititudorancea.com/z/aud_to_php_exchange_rates_australian_dollar_philippine_peso.h
tm extracted 21st July, 2012
16. IDA Ireland Irish Development Board, research report on investing in Ireland, June, 2012
17. Michael Porters competitive strategy analysis for analysing industries & competitive markets (New
York Free Press 1980):35-40
18. Talk Bpo market research perception of Porters Five Forces internally, June, 2012
19. Asian Development Bank, Trends in outsourcing within SEA, 2011.
20. www.rappler.com, May 2012, 34 Bpo’s firms grossed over 1million Peso in 2010, extracted May,
2012.
th
21. http://en.wikipedia.org/wiki/Accenture, Retrieved June 25 , 2012
22. "Yahoo! – Accenture Ltd Company Profile". Biz.yahoo.com. Retrieved September 9, 2010.
th
23. http://en.wikipedia.org/wiki/Convergys, www Retrieved June 25 , 2012
th
24. http://en.wikipedia.org/wiki/TeleTech, www Retrieved June 25 , 2012
th
25. Strategic Management Concepts and Cases, Fred R David, 13 Edition, 2010, page 114 chapters 3
external assessment.
th
26. Martin Conboy, President of Australian BPO Assoc. IT BPO Forum, Cebu Philippines, June 27 , 2012
27. "Yahoo! – Accenture Ltd Company Profile". Biz.yahoo.com. Retrieved September 9, 2010.
8. 28. Accenture Digital Media Advertising Budget Spend, www.marketingcharts.com/television/media
extracted 4th July, 2012
th
29. Convergys setting up in Davao July 4 announcement www.zambotimes.com/archives/49106-
th
Convergys-to-put-up-BPO-facility-in-Davao-City.html extracted July, 6 , 2012
30. http://articles.economictimes.indiatimes.com/2007-11-11/news/27678568_1_high-attrition-
th
employees-cash-incentives extracted July 7 , 2012
31. http://executiveandhrguidance.blogspot.com/2012/03/bpo-attritionturnover-20-60-retention.html
th
extraction July, 7 2012
32. http://www.convergys.com/company/recognition-awards.php
th
33. XMG Global Research, IT BPO Forum, Cebu Philippines, June 27 , 2012
rd
34. You Tube, Martine Conboy, President of the Australia Business Processing Association, 3 July, 2012,
“17,000 Australian Call Centres Agents pulled from Indian Call Centres because of incoherent Indian
accents
35. Australian Business Processing Association, Everest Analysis, Sydney, June 23, 2012.
th
36. Tesda Research, IT/BPO Conference Cebu City The Philippines, June 27 , 2012
37. http://www.kittelsoncarpo.com/philippines-labor-employment/salary/call-center-agents extracted
27th July, 2012
th
38. David, Fred R, “Strategies in action”, 13 Edition Chapter 3, Strategy Evaluation & Control, External
Assessment (2010): 104
39. Peza, Presentation, Increase in PEZA Zones, BPI Launch, Resorts World Manila The Philippines, May,
2012.
40. Australian Business Processing Association, Everest Analysis, Sydney, June 23, 2012.
th
41. www.golden abc.com, retrieved 11 July, 2012, evaluation of your business mission vision statement
42. Peter Drucker, Management: Tasks Responsibilities and Practises (New Yorker: Harper & Row,
1974):61
43. http://www.mindtools.com/pages/article/newSTR_91.htm
44. David, Fred R, “Strategic Management Concepts and Cases”,13 Edition Chapter2, The Business
Mission & Vision,(2010): 79
45. David, Fred R, “Strategic Management Concepts and Cases”, 13 Edition Chapter 6, Strategy Analysis
& Choice, (2010): 218
46. www.slideshare.com, Business Strategy Management, identifying strategy for a single business
th
extracted June 14 , 2012
47. David, Fred R, “Strategic Management Concepts and Cases”, Chapter 4, Internal Assessment, (2010):
155
48. http://www.philstar.com/Article.aspx?articleId=788656&publicationSubCategoryId=63, extracted
29/7/2012
49. http://www.abs-cbnnews.com/business/04/02/12/bpo-workers-opt-jobs-overseas, extracted
29/7/2012
9. 50. Benoit GENUINI President Passerelles Numériques, Vietnam, IT/BPO Conference Cebu Philippines,
th
June 28 , 2012
51. David, Fred R, “Strategic Management Concepts and Cases”, 12 Edition Chapter 5, Internal
Assessment,: 183
52. David, Fred R, “Strategic Management Concepts and Cases”, 12 Edition Chapter 5, Internal
Assessment,: 184
th
53. Encyclopaedia of Management, diversification strategy e-notes, extracted July, 30 , 2012
54. It’s more fun in the Philippines, Dept of Tourism & DTI The Philippines. Extracted 30/7/12
55. http://investing.businessweek.com/research/stocks/financials/ratios.asp?ticker=CVG:US, extracted
th
29 July, 2012
rd
56. Source: taking you www.forward.comRetrieved June, 23 , 2012
57. David, Fred R, “Strategic Management Concepts & Cases”, Chapter 6, Strategy Analysis & Choice,
(2010): 217 BCG
58. David, Fred R, “Strategic Management Concepts & Cases”, Chapter 6, Strategy Analysis & Choice,
(2010): 218 BCG
59. Michael O’Leary, A Life in Full Flight, Penguin Allan Ruddock, (2008): Rear Cover
60. David, Fred R, “Strategic Management Concepts and Cases”, Chapter 6, Strategy Analysis & Choice,
(2010): 217 Reasons to disclose or not to disclose financial information
th
61. The Manila Bulletin Sunday Newspaper July 8 , 2012
62. David, Fred R, “Strategies in action”, Chapter 5, Strategies in Action , (2010): 174
63. http://www.valuebasedmanagement.net/methods_strategy_maps_strategic_communication.html
Kaplan Norton extracted 19th Jul, 2012
64. David, Fred R, “Strategies in action”, Chapter 9, Strategy Evaluation & Control, (2010): 325
65. David, Fred R, “Strategies in action”, Chapter 9, Strategy Evaluation & Control, Contingency Planning
(2010): 331
66. David, Fred R, “Strategies in action ”,Chapter 3, Strategy Evaluation & Control, External Assessment
(2010): 104
th
67. GGLC, John Boakes Peregrine Inc Clark PEZA Zone, 7 July, 2012 email research extract, occupancy of
Clark Free Zone Areas Tax Incentives
10. RESEARCH METHODS & READING MATERIALS
1. Gmail Alerts, Google, Research Methods for Strategic Management, BPO Philippines, and Push
Email Alert as it happens, April, 2012 current.
2. IT/BPO Conference, Radisson Blu Hotel Cebu City The Philippines, June 26th-June27th, 2012. App 9
3. BPAP Business Processing Association of the Philippines, Intl Guest Speaker Martin Conboy BPO
4.0, Makati Manila June 28th, 2012
4.Dr Prof Albert Buenviaje, Course Professor, Strategic Management Lecture notes Ateneo De
Manila Regis MBA Rockwell, April-May 2012
5. John Bokaes Peregrine Inc Clark PEZA Zone, 7th July, 2012 email research extract, occupancy of
Clark Free Zone Areas Clarke is it Global Investor Guide and site visit
6. New Era of Management, Concepts and applications, 2nd edition, 2012
7. http://www.slideshare.net/AndyForbes/great-executive-summaries, extracted, 1st August, 2012
PERSONAL ONE ON ONE INTERVIEWS
1.Mr Martin Conboy, Industry Interview, The Climate & direction of Philippines IT/BPO: President of
the Australian Business Processing Association, June 27th, The Radisson Blu Hotel Cebu, The
Philippines.
2. Mr Benedict Hernandez Industry Interview, The Role of BPAP in the Philippines outsource process
industry: President of the Philippines Business Processing Association. July 17th, 2012 The Peninsula
Hotel Makati Manila Philippines.
3.John Bokaes Peregrine Inc Clark PEZA Zone, 7th July, 2012 email research extract, occupancy of
Clark Free Zone Areas Clarke is it Global Investor Guide and site visit
4. Mariecris Conroy, President, Talk Bpo Business Consultancy, Rockwell Makati The Philippines.
INDUSTRY MENTORS
1. Mr Paul Harris, Mentor for Future Software Applications Senior Architect South East Asia Cloud
Computing Microsoft.
2. Mr Jonathan De Luzuriaga, Mentor for research within the IT/BPO: Former Vice President
Philippines Business Processing Association and current CEO of the Outsourcing Network.
3. Ms Charlene Geneill, Independent Financial Analyst Certification of Financial Accounts.
4. Ms Mariecris Conroy, President Talk Bpo Business Consultancy, Proof Reading of Thesis.
11. FIGURES
FIGURE 1, Demographic Locations of Philippine Call Centres
FIGURE 2, Talk Bpo Assessment of Key Social Cultural Demographic & Natural Environment
Variables.
FIGURE 3, Percentage of Talk Bpo Ranking to outsource to the Philippines
FIGURE 4, Texting capital of the world.
FIGURE 5, Boracay Beach World Ranking
FIGURE 6, Asian submarine optic fibre grid
FIGURE 7, Cloud Statistics
FIGURE 8, Using the cloud
FIGURE 9, % of cloud users globally
FIGURE 10, Talk Bpo current services.
FIGURE 11, Increasing economic significance
FIGURE 12, Global Ranking of IT/BPO Countries
FIGURE 13, The rise of alternative outsourcing cities
FIGURE 14, The Global IT/BPO % of Market Share
FIGURE 15 Significance to emerging economies
FIGURE 16, 15% to 20% CAGR over the next 5-10 years
FIGURE 17, Salary Variance Payment per month
FIGURE 18, The AUD versus the PESO
FIGURE 19, The Euro versus the PESO
FIGURE 20, The Pound versus the PESO
FIGURE 21, Fiscal Non Fiscal benefits
12. FIGURE 22, Salary Cost Advantages in the Philippines
FIGURE 23 Cost Advantages to have IT/BPO in the Philippines
FIGURE 24 Philippines Business Confidence
FIGURE 25 Philippines Consumer Price Index
FIGURE 26 Philippines Inflation rate
FIGURE 27 Porters 5 Generic Strategies
FIGURE 28 Microenvironment
FIGURE 29 Porters Five Forces Perception within Talk Bpo
FIGURE 30 CPM Matrix Weighting
FIGURE 31 CP Graph Analyses
FIGURE 32 Picture of Transcom Taxi Advertisement
FIGURE 33 Outsourcing Drivers, An Australia Study
FIGURE 34 How do you expect to spend on advertising?
FIGURE 35 Accenture Global Locations and Maps
FIGURE 36 Talk Bpo Global Affiliate Locations
FIGURE 37 Talk Bpo Facebook Advertisements
FIGURE 38 Current ICT-BPO Industries Versus Penetration
FIGURE 39 Outsourcing in Canada and Philippines Business & Economic Environment
FIGURE 40 Outsourcing in Canada and Philippines Resources & Skill
FIGURE 41 Current & Future Trends
FIGURE 42 Off shore Preferences
FIGURE 43 Important criteria in selecting IT/BPO providers
FIGURE 44 Global off shore BPO Market by type of process
13. FIGURE 45 Figure 45, The Philippines IT-BPO Industry hit its 2011 targets
FIGURE 46 National High School Results below average
FIGURE 47 From Voice to Non Voice BPO
FIGURE 48 15%-20% CAGR over the next 5 years
FIGURE 49 ICT BPO Forecasted revenue
FIGURE 50 Fragmented Industry
FIGURE 51 The growth of the IT/BPO in the future
FIGURE 52 Salary Ranges per month
FIGURE 53 Structured layout of the 7s Formation
FIGURE 54 Identifying strategy for single businesses
FIGURE 55 The New Talk Bpo Direction
FIGURE 56 Strategy Options for Local Companies
FIGURE 57 Hierarchy Structure
FIGURE 58 The Strategic Making Pyramid
FIGURE 59 Talk Bpo Internal Factor Evaluation Matrix Table.
FIGURE 60 Talk Bpo Business Ideas, 2012
FIGURE 61 Primary influences in processing
FIGURE 62 Summary of possible strategies
FIGURE 63 Outsourcing Philippines and Canada
FIGURE 64 Tourism Philippines, “More fun in the Philippines”
FIGURE 65 Space Matrix
FIGURE 66 Space matrix Results
FIGURE 67 The Internal Factors evaluation and External Factors Evaluation Space Matrix
15. TABLES
TABLE 1 Summary of possible strategies and actionable items
TABLE 2 Projected Financial Ratios for Talk Bpo
TABLE 3 Reasons to disclose or not to close financial information
TABLE 4 Top three call centres turnover in the Philippines
TABLE 5 Quantative Strategic Matrix Plan
TABLE 6 Results of QSPM
TABLE 7 Projected Sales Activity Income 2013
TABLE 8 Details of 2013 Projections (amounts in US$)
TABLE 9 Balance Score Card Table