Preview

Onetel Case Study

Better Essays
Open Document
Open Document
1705 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Onetel Case Study
Background
One.Tel was launched by Jodee Rich and Brad Keeling in 1995 (Cook, 2001). At first, it looked to get the advantages from deregulation of telecommunication industry by reselling other network’s capacity and making money through stock market speculation. Rich and Keeling tried to increase the company’s shares rather than to profit the company (Cook, 2001). Initially, One.Tel used to develop the culture of strong teamwork and togetherness. There was no hierarchy in the structure of the company. However, the dissonance of its culture and system is the main factor that led to One Tel decline.
One.Tel failure had been indicated since there was a sharp fall in its share price in 1999 (Cook, 2001). In 2001, OneTel had no cash left to pay the expenses and it had huge debt. The company expanses too fast so that the billing system cannot handle it and the customers did not receive their accounts. Jodee Rich, as the main founder of the company, did not pay attention to any problem reported. All these factors made One.Tel could not stand in the crisis time.

Major Issues
Major issues face by OneTel is that the company structure was not developed, in which lead to ineffective communication. In its operation, One.Tel run high centralization as the managers only do what Jody told them. He creates the leadership turnover since he liked promoting the yes man and humiliated managers who brought problems to his attention, therefore, there are high staff turnover. He also did not accept any opinions from others and used his authority to manage the company. Furthermore, he focused too much on advertisement in taking in the new customers. He was too autocratic which made the employees unable to exercise their ability in solving problem.
In addition, One.Tel had low complexity that is determined by having unclear job tasks and responsibilities. As there is no organizational chart, the relationship between the employees could not be determined and the job descriptions



Bibliography: Cook, T., 2001, Collapse of Australia’s fourth largest Telco adds to growing list of corporate failures, International Committee of the Fourth International (ICFI), < http://www.wsws.org/articles/2001/jun2001/onte-j08.shtml> Five base of power, 2004, Power and Politics, viewed 12 October 2007, <http://www.unf.edu/~gbaker/Man6204/Power.PDF> Organisation Structure, 2003, Bnet, Viewed 5 October 2007, <http://jobfunctions.bnet.com/whitepaper.aspx?docid=79265> Organisational Structure, 2003, Bnet, viewed 10 October 2007, <http://jobfunctions.bnet.com/whitepaper.aspx?docid=83034> Robbins, S.P & Barnwell, N., 2006, Organizational Theory: Concepts and Cases, 5th edn., Pearson Education Australia. Schmidt, T., 2006, A Review of Structure in Fives; Designing Effective Organisations, viewed 14 October 2007, <http://thesis.msc-cse.com/pdf/article_mintzberg.pdf>

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Teletech Case

    • 852 Words
    • 4 Pages

    Teletech has two business segments, Telecommunications Services and Products and Systems unit, for the last couple of months senior management at Teletech Corporation had been discussing returns. However, only until they received the letter from Victor Yossarian did they decide to spin into action and review the company’s returns, the hurdle rate that was being used company wise and not by business segments, the annual capital budget situation, the review of new possible policies, and finally they needed to do a concrete assessment of the Products and Systems segment to know if it was profitable on its own. This situation becomes even more critical when taking in consideration that the company plans to invest about $2 Billion in the next year on capital projects.…

    • 852 Words
    • 4 Pages
    Satisfactory Essays
  • Better Essays

    Org 581

    • 1304 Words
    • 6 Pages

    References: Anthony, W. P., Gales, L. M., & Hodge, B. J. (2003). Organization Theory: A Strategic Approach (6th ed.). Upper Saddle River, NJ: Pearson Education, Inc.…

    • 1304 Words
    • 6 Pages
    Better Essays
  • Good Essays

    West Teleservice IPO

    • 795 Words
    • 3 Pages

    West Teleservice is an integrated teleservice provider whose business model is based on recurring large volume application with focus on state of art technology, quality of service, long term corporate relationships and a management with high level of expertise. We also looked at other dimensions such as size of revenue and revenue projection, operational margins and net margins as indicators of comparable companies in the industry. A detailed analysis of this is captured in Appendix 1.…

    • 795 Words
    • 3 Pages
    Good Essays
  • Good Essays

    A key issue with Nokia was that fact the company’s stock took a 14 cent dive. The major key issues that were presented in an internal memo were that there was a lack of accountability, leadership and internal collaboration that leads to Nokia’s inability to deliver innovative products in a timely manner (Kwong & Wong, 2011).…

    • 732 Words
    • 3 Pages
    Good Essays
  • Good Essays

    References: Organization Theory and Design, 2010, Tenth Edition, Robert L. Draft, Published by Thomson, Chapter One…

    • 551 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Other than that all the other steps taken by the company have caused the arise of problem like customer dissatisfaction which have caused the company shares to decline 20%. This can be a treat for the company because it is not consistent with the company new objective set by the ceo to increase its profit margin and reduce the finance to invest in the wireless broadband technology. To…

    • 880 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Teletech Corporation

    • 1821 Words
    • 8 Pages

    Headquartered in Texas, Teletech Corporation operates under two main business segments: the Telecommunications Services segment, providing various telephone services to business and residential customers and the Products & Systems segment, which manufactures computing and telecommunications equipment. In late 2005, the Securities & Exchange Commission revealed that billionaire Victor Yossarian acquired a 10% stake in Teletech and demanded two seats on the board of directors. He felt that the firm was misusing their resources and not earning a sufficient return. He stated that Teletech should sell off its Product & Systems segment and focus on creating value for the company’s shareholders. A detailed analysis will reveal whether or not Teletech should follow Mr. Yossarian’s requests.…

    • 1821 Words
    • 8 Pages
    Powerful Essays
  • Satisfactory Essays

    Teldar company has a lot of different stakeholders such as customers, employees, society, distributors, competitors and creditors. They will be affected from the impacts of the company policies to the stakeholders and these impacts needed to be discussed in all aspects before reaching a final decision. For example firing employees and offering wage cuts in order to increase company profits will affect employees directly in the short term. Profitable Teldar company will have positively affect the creditors since they would paid their debt and supply more paper to distributors. In the long run, by creating new job opportunities, a profitable company would also affect the society in a good way.…

    • 380 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    In this scenario Margret Weston, received a letter. In the letter she found out that Yossarian acquired 10% of the company’s stock. This aggressive move by Yossarian was motivated by the company management not doing their job to maximize shareholders wealth. Moreover, the managers were having issues with the hurdle rate, because it is just generally accepted, but not scientifically proven. On the other hand one TV Commentators opinion about Teletech Corp. is that “there is no way to have a hostile takeover in this sector, but for the Teletech Corp. there are many reasons to try.” Teletech Corp. has two major business segments, Telecommunication Services and both Product and System Manufacturing make up the other segment we will analyze. The ROC of both the segments combined for a firm Return on Capital of 9.58%. In addition to this, the company is expecting a decrease in revenue in both segments.…

    • 1664 Words
    • 7 Pages
    Good Essays
  • Good Essays

    References: Structures of Organizational Governance — Human Relations March 1984 vol. 37 no. 3 207-223…

    • 879 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Teletron Inc

    • 3002 Words
    • 13 Pages

    The main objective of the case is to outline how Teletron Inc plans to use Information Technology to improve its business processes, increase revenue and enter a new market segment. It highlights how the company sought to implement a new business model with the intent to tap into a new niche market, and change the culture of the organization. The case emphasized the importance of getting top management’s full participation in the decision process and how a Consultative Management style can facilitate management participation. It brings to the fore the importance of using timely and accurate information to make strategic decisions in order to improve competitive advantage and increase market share. Teletron’s founder, chairman and chief executive officer, Timothy Lybrook had a keen for eye for identifying market gaps and knew how vital it is to do a comprehensive analysis before pursuing any business venture. This point was evident in the case; before Teletron began operations, a thorough analysis of several industries was done to ensure that there was a large enough market to make the business profitable. After some years in operations, when the decision was made to change the business model a task force was created to investigate the market to identify the opportunities and threats that existed in the market. This highlighted the importance of research in major business decisions and how the vision of an organization directs the strategies and Information Technology infrastructure that needs to be implemented to achieve organizational goals. The role that the culture of any organization plays in its growth and development was manifested in the case, as Mr. Lybrook did not believe that the company could meet its growth objectives with its current culture and took drastic measures (replacing his top managers) to change it.…

    • 3002 Words
    • 13 Pages
    Good Essays
  • Powerful Essays

    Crm in Airtel

    • 1084 Words
    • 5 Pages

    Why did Airtel go for CRM...? * When Bharti had started out operations (1995), the whole system was manual. * All the processes like order processing, project management, billing, customer details, call center operations, direct marketing, sales management etc were handled with minimum coordination and the interdependence was avoided which later proved to create problems like duplicity, insufficient data, inefficient service etc. * Only 40% of the customer issues were getting solved. * Customer loyalty was a major concern. * Had many local players (dealers, vendors etc) * Were not able to centralize the services and give a common brand experience. * Not able to pay bills anywhere in India * Low customer retention * Vodafone’s customer service was rated far…

    • 1084 Words
    • 5 Pages
    Powerful Essays
  • Better Essays

    Teliasonera Case Study

    • 936 Words
    • 4 Pages

    TeliaSonera continues to invest in high-quality networks to meet growing demand for services and data transfer, and together with its partners and suppliers offers its clients access to the best solutions. TeliaSonera Group has more than 27,8 thousand employees around the world. In 2012, the groups’ sales reached 104,9 billion Swedish kronor (about U.S. $16.2 billion), EBITDA amounts 36.1 billion Swedish kronor (U.S. $5.6 billion). TeliaSonera shares are listed on the NASDAQ OMX, Stockholm and Helsinki stock exchanges (http://www.report2012ru.kcell.kz/reports/kcell/annual/2012/gb/English/1010/kcell-today.html).…

    • 936 Words
    • 4 Pages
    Better Essays
  • Satisfactory Essays

    infromation security

    • 541 Words
    • 3 Pages

    The fact that the company's position of VOIP2.biz is a very difficult and very spiky to the lack of support or facilities or external funders to ensure the functioning of the company in the right direction, pace and confident. With the Executive Director to develop two plans and the division of each plan in two phases, but the regulations of the state and the policy of monopoly and the large size of the expenditure and income of vulnerable and interest, as described in the economic feasibility of the project has failed, unfortunately, must be in place a contingency plan to save the company. As is well known the field of finance and business , it does not have the only solution , but there are the best solution which is the situation in which the best so get out the least possible losses and costs in innovative ways and smart through the Executive Director, a seasoned expert in risk management and the company VOIP2.biz considered a good model for many companies entering the market and is located in a critical position and a person must have sufficient expertise to save the critical situation.…

    • 541 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Telecomunications Essay

    • 271 Words
    • 2 Pages

    Telecommunications is crucial for growth and modernity. It is one of the fastest sectors and has immense potential for future growth. As a prime support service needed for rapid growth and modernism of all sectors of the economy, it needs to be promoted and developed as a basic infrastructural input.…

    • 271 Words
    • 2 Pages
    Satisfactory Essays