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REDtone International

Berhad
Business Project 2
UniKL Business School
Presented By: Mohd Ikbal bin Hashim
Advisor: Dr. Nazatul Shima bte. Abdul Rani

OBJECTIVE OF STUDY
TO PROVIDE EXPOSURE TO THE MBA STUDENT TO
RELATES ALL THE KNOWLEDGE GAIN FROM THE
EARLIER MODULES IN RESPECT OF MAKING
JUDGEMENT ON THE BUSINESS CHOOSEN
THROUGHOUT THE STUDY, STUDENTS SHOULD BE
ABLE ANALYSE THE COMPANY DATA, ANALYSE THE
AREA OF PROBLEM BY SHOWING THEIR FINDING
AND GIVE RECOMMENDATION ON THE ISSUES

INTRODUCTION
REDtone International Berhad (RTI), an
investment holding company, provides
telecommunications services
Products and services offered by RTI includes:
Data, Voice services, high-speed broadband
connectivity Wi-Fi hotspots, base stations, and
fiber infrastructure; offers 4G wireless
broadband services; and provides E-Purse,
consulting services on telecommunications

VISION
To become the market leader in
personal communications and unified
messaging products and services
within five years.
To become the lowest cost provider
and drive an aggressive pricing
model through the industry.

MISSION
RedTone
is
already
the
most
technologically-superior
telecommunication system in the
world. RedTone management will
build on their brand and technical
reputation to become the market
leader in personal and business
communications,
and
unified
messaging systems within five years

CORPORATE STRUCTURE
Corporate structure of
REDTone International
Berhad consists of
several Strategic
Business Unit doing the
functional job of the
organization, such as:
REDTone Marketing Sdn
Bhd is handling the
marketing function of the
Group

Current Ratio
2010
(RM)

2011
(RM)

Current
Assets

100,329,344

53,295,330

49,453,543 116,000,087 106,529,000

Current
Liability

56,745,212

45,941,342

46,660,257 84,482,358

Current
Ratio

1.77:1

1.16:1

2012
(RM)

1.06:1

2013
(RM)

1.37:1

RedTone Current Ratio 2010-2014

2014
(RM)

67,929,000
1.57:1

Identification of Problematic
Areas
Two major problems of REDTone:
1. Having too many SBU (Strategic Business
Unit) as a subsidiary in the group
2. The liquidity level does not meet industry
average

Having too many SBU (Strategic


Business Unit) as a subsidiary in the
group
DRAWBACKS:
1.
2.
3.
4.
5.

Possible loss of control over a company's business processes


Problems related to quality and turnaround time
Sluggish response times coupled with slow issue resolutions
Lower than expected realization of benefits and results
Although outsourcing to SBU most of the times is cost-effective,
at times the hidden costs involved in signing a contract while
signing a contract across international boundaries may pose a
serious threat
6. Sometimes an outsourced SBU may be catering to the expertiseneeds of multiple organizations at a time. In such situations SBU
may lack complete focus on your organizations tasks

Liquidity level does not meet


industry average
RECOMMENDATIONS:
1. REDTone should assess its overhead costs and see if there are
opportunities to decrease them
2. If REDTone has unproductive assets that the business is just storing,
then it's time to get rid of them.
3. Monitor accounts receivables effectively to ensure REDTone billing
their clients properly and that they are receiving prompt payments
4. Negotiate longer payment terms with REDTone vendors whenever
possible to keep their money longer
5. Review the profitability on REDTones various products and services
and even the creation of various SBU units.

Why Centralization of Marketing


is not advisable

1.
2.
3.
4.
5.

Delay in work
Remote control
No loyalty
No Secrecy
No special attention

Balanced Scorecard (BSC)

Internal Business Process


Goal Measure Target Initiative

Balanced Scorecard (BSC)


Dept

Areas

Finance

Return On Investment
Cash Flow
Return on Capital Employed
Financial Results (Quarterly/Yearly)

Internal

Number of activities per function

Business

Duplicate activities across functions

Processes Process alignment (is the right process in the right


department?)
Process bottlenecks
Process automation

Balanced Scorecard (BSC)


Learning &

Is there the correct level of expertise for the job?

Growth

Employee turnover
Job satisfaction
Training/Learning opportunities

Customer

Delivery performance to customer


Quality performance for customer
Customer satisfaction rate
Customer percentage of market
Customer retention rate

Balance Scorecard implementation

A Balanced Scorecard should result


in:
Improved processes
Motivated/educated employees
Enhanced information systems
Monitored progress
Greater customer satisfaction
Increased financial usage

Balanced Scorecardon
REDTone marketing strategy

Balanced Scorecards will measure overall


revenue growth
Measures relating to customer acquisition and
to customer retention, growth, and
satisfaction.
Pelate to how you gather and use data from
and about your customers and prospects, and
some will relate to how you design and execute
marketing campaigns and programs.
measures the intangible assets - human
capabilities, technological capabilities, and
organizational/cultural attributes

Balanced Scorecard as a tools


to improved REDTone liquidity
thefinancial perspectivein BSC emphasizes
the stakeholder concern about how efficient
and effective the unit is at using its resources
Reducing overhead
Shed unnecessary assets to increase liquidity
Stop products or offer services that dont yield
a profit
review accounts receivable to make sure
customers receive and pay bills on time

Projected Sales for Red Tone


International Berhad for Year
2015 to 2019
Red Tone Sales
2010 - 2020
Income
Year
2010
2011

(RM)
82,211,459
89,573,235
106,975,93

2012

0
142,047,65

2013

6
141,758,00

2014

0
163,983,50

2015

7
181,140,25

2016

7
198,297,00

2017

8
215,453,75