Introduction
A strategic business plan proposal aims at enhancing efficiency, cost-effectiveness, and responsiveness in the business processes. Also, it acts as a means of managing wealth for the existing business organization. The strategic direction of the business organization is thus effectively managed, and its reliability enhanced. A strategic business plan covers three to five years and is focused on establishing business organizations to sustain business growth levels (Wit & Meyer, 2010). The aspect of wealth management has become the goal of every successful company in the world. Well-drafted business plans can only achieve effective and efficient wealth management. A company that does not lay concrete plans to manage its wealth risks collapsing during challenging business times when profits are not realized expectedly. This paper seeks to evaluate the possibility of creating workable mechanisms to manage wealth for the Telecom Liechtenstein Company.
The article will give insights to various investors on different types of businesses and how to develop sound plans and procedures for wealth management. Resource prioritization remains a crucial aspect of business organization in the business environment in which the Telecom Liechtenstein Company operates. Time, people, and monetary resources are crucial in enhancing the competitiveness of the organization. As a result, resource allocation should be undertaken with a lot of attention being directed on improving the level of productivity and reliability of the overall business structure. A futuristic approach, enhancement of strategic business initiatives, and improvement of revenue, and the global competitiveness of the organization are of great importance to the overall performance of the Telecom Liechtenstein Company.
To ensure that Telecom Liechtenstein Company’s mobile solutions remain viable and practical, this strategic business plan focuses on ensuring that resource utilization is channeled towards ensuring that the strategy, direction, and decision-making process is improved. Communication of the needs and demands of the organization to the organizational stakeholders is critical to its success. The management of staff and stakeholder is fundamental to the overall success of national business ventures of the Telecom Liechtenstein Company at both local and international levels (Wit & Meyer, 2010). Because the organization has multiple business sectors or units with a wide variety of products and services being offered to both the existing and potential clients, the strategic business plan is of great importance in the enhancement of the organizational competitiveness. Departmental plans and sales strategies should be interlinked to the corporate-oriented strategic plan. The strategic planning process should enable the organization to maintain a steady growth plan.
Description of the business
Mission and objectives
The Telecom Liechtenstein Company is a multinational communication company that is currently at the forefront of the technological revolution in Liechtenstein and other sectors of the global technological revolution. The company’s mission is closely interlinked with its vision that aims at fostering a world in which people’s movement and communication mechanisms are not limited by distance or any form of matter. In the envisioned world, people would be accessible to their friends and relatives thanks to improved information technology. The Telecom Liechtenstein Company has been in existence for over ten years. In the telecommunication industry, the organization is a major global technology player (Aaker and McLoughlin 2010).
Company’s description
The Telecom Liechtenstein Company is a leading mobile solution company that focuses on ensuring that people’s communication demands are addressed in a timely and cost-effective manner. Telecom Liechtenstein Company has been doing business for fifteen years in different countries. The company is situated in Thalwil in Switzerland. It operates in several countries in Europe, which include Switzerland, France, and Britain. Telecom Liechtenstein Company’s current customer base of 35 million clients is expected to grow with its envisioned enhancement of efficiency, cost-effectiveness, and sustainability of its core business functions steadily. The Telecom Liechtenstein Company enjoys close links with the Swiss Bank as well as certain major global business corporations that have continued to have profound impacts in the business market. Telecom Liechtenstein Company’s focus is on transforming the communities in which its core business functions are performed. As a result, the company has managed to undertake technological revolution across the globe.
Products and services
The need to enhance unique and rich customer experiences is a crucial aspect to the success of the Telecom Liechtenstein Company and the continued acceptance of its products in the global telecommunication market. Major products offered by the Telecom Liechtenstein Company include internet connectivity, fixed-line telephones, mobile products and solutions, and data accessories, hospitality, Select Plus, unique country communication plans, ISDN, Service 9000, Service 600, the International Toll-Free Service and the unlimited SDN plan. Every product or service offered by the company is customized to address the uniquely and strategically identified consumer needs in line with the ever-evolving telecommunication industry. The e-Life system has continued to ensure that home entertainment remains a crucial aspect of the business market. Enhanced communication and flexibility of the Telecom Liechtenstein Company’s telecommunication services have maintained to ensure that the popularity of the company’s products is made better. Rich support services rendered by Telecom Liechtenstein Company are a focal aspect of the company. As explained by Aaker and McLoughlin (2010), the services have the significance of enriching the company’s products and ensuring that enhanced production efficiency and sustainability are maintained at all costs.
Major benefits and performance
The low-cost voice mail service offers fixed-line communication services that ensure that people keep in touch with their families, friends, and business partners at all times. It ensures that people are connected due to its easy access to the mailbox, personalized mode of responding to messages, wireless communication platforms, and efficient retrieval of messages. Voice mail also ensures that retrieval of messages and the forwarding of messages from one phone to another is done effectively. The voice mail product that is designed for mobile systems has the core benefits of enhancing business privacy, the existence of a 24-hour response facility, and enhanced access to one’s mailbox. This idea is closely related to the audio conferencing facility that is an improved communication mechanism that provides easy control of participants in the communication channel. The voice mail product also provides the benefit of communication reaching the intended destination in a timely and cost-effective manner.
On the other hand, the landline for businesses is a vital product whose significant advantages include the provision of free local calls within one’s city of residence and up to 55% discount on the international calls that an individual makes and an “opt-in voice” option for one’s usage plans. The e-hospitality provision combined with internet and data related products enables health care facilities and business centers an opportunity to acquire business network packages for minimal pay every month with a vast range of dynamic business packages. This package also contains the provision of free email accounts. According to Wit and Meyer (2010), online services that are offered by the company ensure that it remains competitive and that the benefits of authorization and service delivery are realized at the right time. The various products and services offered by Telecom Liechtenstein Company not only encourage individual growth and development but also ensure that the company sustains its relevance in the market. Sourcing The concept of sourcing in management refers to the acquisition of legal business operation permits from various state and federal governments in the different countries in which a given company operates. Since 1998, the services of Telecom Liechtenstein Company have continued to be outsourced by various national and multinational corporations. The strategic sources provided by the company focus on ensuring that the company manages to get the best business deals possible.
Telecom Liechtenstein’s voice mail product and technological advancement embrace the need to adopt cost-effective and reliable communication strategies (Saylor, 2012). Telecom Liechtenstein Company’s products focus on ensuring that clients not only enjoy cost-effective landline communication but also gain from the numerous benefits of emerging mobile telephony. Voice mail may be affected by poor network coverage in some parts of the region. This fact limits effective communication in certain sectors of the economy. Demand for voice communication in Liechtenstein, France, and Switzerland has been on a steady rise. Cyber stocking and related cyber crimes remain a major challenge to the existence of Telecom Liechtenstein Company’s voice mail service. Nonetheless, voice mail is a commercially viable communication platform as it offers a mobile telephony service that is cost-effective, reliable, and flexible to adapt to the diversity of regional and societal groupings.
Businesses’ landline communication services
This is an old communication platform that uses the concept of fixed-line telephony with a wired switched system of communication. Lack of text messaging in the use of landline communication is a major challenge to the efforts being made to enhance the success of Telecom Liechtenstein Company’s landline communication services. Landline communication is also not as popular as it was in the past. Many people now prefer flexible and portable means of communication, even at the workplace. In Liechtenstein, Switzerland, and other developed regions, the hospitality industry has continued to thrive economically. Improvements have continued to be made, while a lot of people have decided to adopt the concept of technology in the health and wellness sectors.
Consequently, electronic and information systems have continued to be popular with medical professionals. In Switzerland, for instance, e-hospitality has continued to be accepted as a rational means of administration of certain medical services. Patient to doctor consultancy has also increasingly been administered through hospitality mechanisms. Telecom Liechtenstein Company’s e-hospitality focuses on distributing, supporting, and servicing both new and proven technology and hospitality products. However, besides the front desk vending e-hospitality platforms, many e-hospitality solutions have not been fully embraced in the hospitality industry. Lack of full-scope e-hospitality front-desk implementation is a major challenge for the Telecom Liechtenstein Company e-hospitality solutions.
Select Plus
Routing of the landline telephone at both national and international level calls is very crucial for the success of the telephone services rendered by the Telecom Liechtenstein Company. The cost of Telecom Liechtenstein Company’s Select Plus routing of national and international calls from mobiles and landline voice network services is not affordable to many people who would otherwise be clients. The fact that the Telecom Liechtenstein Company’s Select Plus process period is about six working days means that a lot of bureaucratic processes are involved. Although configuring the network is faster, the technicality involved is likely to lead to the end-users incurring more costs in the use of the company’s services. Select Plus offers a unique country communication. ISDN This product is an alternative digital service offered by the company to the standard analog mobile and analog telephone system. Both the ISDN Basic-Rate Interface and the ISDN Primary-Rate Interface version of ISDN offer high-speed data transfer rates. The cost of enhancing efficiency and cost-effectiveness is a major challenge to the performance of the ISDN service. Telecom Liechtenstein Company’s ISDN operates with the speed of both 64kilobits per second and 28 kilobits per second. The primary rate access uses 2mega bits per the second pipe that offers more than thirty communication channels, all of which operate at a speed of 64kilobits per second or higher.
Service 9000 and 600
Banks like the Swiss Bank employ the concepts of Service 9000 and 600 for telebanking and enhancement of efficiency and cost-effectiveness. Visa processing, management of account information, revenue streams, and interactive voice responses are crucial aspects of utilizing such mechanisms. Service 9000 and 600 platforms have the challenge of being difficult to integrate with other existing information systems. The subscription charges for the Service 9000 and 600 are 600 US dollars with a rental charge of 300 dollars. The rate per minute for the services rendered varies based on the speed of the device being used and the technicality of the service being offered. This platform is relatively slow compared to most modern technologies. As a result, the International Toll-Free Service has continued to be a costly technological invention of the Telecom Liechtenstein Company, especially in most European markets. Based on the historical use of the machine and the unlimited SDN plan, it has been realized that a crucial mechanism of ensuring that faster and cost-effective network coverage needs to be created. Various studies have revealed that technological products and services are a major challenge to the operation of Telecom Liechtenstein Company.
Future products and services technology
It is highly expected that technology will play a pivotal role in shaping the business ventures and overall future of the Telecom Liechtenstein Company. The existence of a 3G network that covers most of its markets in Liechtenstein, Switzerland, and France is likely to thrive on the network and technology-related advancements. Advancement of the company’s VSAT service and its transformation to the emerging 4G network will help to transform the operations of Telecom Liechtenstein Company’s products. Inventions of wireless communication platforms are linked to the idea that wired communication is costly and cumbersome to most consumers. The technological concept of voice over internet protocol is a crucial communication platform. Addressing the challenge of mapping of technological challenges is a major issue of concern to the operational processes of the Telecom Liechtenstein Company and most of its global partners. As a result, better, innovative, and creative mechanisms of addressing mapping would be established to cater to the ever-changing and dynamic telecommunication needs. This future trend would best be undertaken by streamlining the diverse communication processes and ensuring that sound security-related practices are implemented in an open, clear, and accountable manner (John 2010).
Consequently, incidences of insecurity will be minimized and, where possible, totally eradicated. Broadened network coverage will be directed towards minimizing the security vulnerability of the systems being invented. The projected high cost of telecommunication services and the expected rise in budgetary demands of information and communication systems are feared to result in a biased market with the low-end consumers not being in a position to access necessary mobile data services. To adopt and adhere to all telecommunication services, the Telecom Liechtenstein Company, in conjunction with big states and corporations such as Swiss Bank, Swiss com AG, and other globally recognized corporations, will shift their focus from value-added mobile services. The future of the company’s products is likely to be founded on the splendid sound quality. Fewer dropped calls, superb network signal strength, and effective network coverage. Market analysis The Existence of syndicated loans is a major threat to the economic development, strategic improvement, operation, and future progress of the company. Several interlinked issues relate to Telecom Liechtenstein Company’s market segment and its future operations. The Telecom Liechtenstein Company has a market value of 10 billion US dollars. As the fastest growing telecommunication operator in Liechtenstein and Switzerland, the Telecom Liechtenstein Company has approximated 12.5 million active subscribers and a market share subscription of 70.5 mobile telephony subscribers in Switzerland. Increased demand for broadband and related value-added products remains to be crucial to the continued success of the company’s telecommunication industry. Nonprofitable market segments like India will no longer be accorded the desired attention, while new market ventures that adopt modern technologies will be pursued. In Switzerland, Telecom Liechtenstein Company’s market accessibility rate in the year 2012 stood at 59%. It is expected that the company’s sales levels will steadily increase through the margins are expected to remain relatively constant.
Table 1: Telecom Liechtenstein Company’s market trends
The expected growth trends for the company are based on high population trends in the markets, which will boost its acceptance levels. The company’s strategic initiative is not viewed as a market penetration approach for the company. A steady rate of innovation and creativity has continued to increase mobile accessibility in the markets through telecommunication products like WLAN. Currently, WLAN has the largest customer base. On the other hand, WLAN is a core provider of nautical and aerial satellite communication solutions that enhance remote communication. It currently controls 65% of the market share in the specific regions in which the company operates. The company’s ever-increasing popularity can be attributed to the fact that the company offers the desired faster access to increased network bandwidth. Moreover, the company has a near-monopoly in Liechtenstein. It also has a lot of presence in Europe but with low penetration levels in African countries apart from Egypt and Nigeria.
Previously, Telecom Liechtenstein Company enjoyed a monopoly in Liechtenstein. Business patterns and sudden changes in consumer patterns have drastically changed the trend. The current major competitors of the Telecom Liechtenstein Company include Swisscom AG (SCMN), which bought 75% of shares of Telecom Liechtenstein in 2003. Swisscom boosted the wealth management policy of Telecom Liechtenstein by the reintegration of new strategic management practices. Other companies that compete with Telecom Liechtenstein for the wider European market include Blue win AG, People Fone AG, Enkon Inventis AG, Smart, and Telecom AG. Cyber terrorism has also compelled the company to suspend its telecom ventures in emerging economies across the globe. The company’s mobile operations are lucrative yet vulnerable to exploitation and fraud.
Sales and revenue
The generation of revenue trends at Telecom Liechtenstein Company is important to the continued success of the company. Mobile telephony, internet, telephone-related services, data services, and interconnections are the major sales platforms and revenue generation streams of the Telecom Liechtenstein Company.
The growth of the telecommunication sector reveals several critical developments that relate to the challenges and business opportunities that the company faces hence the need for strategic business planning. The compound annual growth levels and rate concerning the sales’ levels for Telecom Liechtenstein Company’s mobile subscribers for the past ten years stand at 18.5%.
To boost the company’s sales revenues, it is anticipated that the Telecom Liechtenstein Company will venture into various new markets to enrich consumer communication experience and home entertainment. The establishment of a strong financial background with little or no competition will be of great importance to the company. It is presumed that the future of the global economy will remain stable and that no major global financial crises will be experienced. Consequently, working capital and start-up costs in the new business environment to be ventured by companies are expected to remain within the previous costs used for the establishment of business processes in countries such as Monaco, Britain, Italy, Switzerland, and Germany. In 2012, the company recorded a 12% return on investment.
Financial projections
To finance the planned possible expansion strategy that is focused on enhancing greater customer efficiency, the company aims at engaging financial institutions, especially banks, in soliciting funds of up to $8 billion. The money will be used in financing potential business transactions and thus boosting its financial base in the market. Between 2011 and 2012, the Telecom Liechtenstein Company’s international operations recorded the highest operating revenues. The company realized a 14% increment in its profit level. The percentage was estimated at 29% of the total revenue of the company. The major expected growth levels are expected to be realized by undertaking strategic business investments in new markets. In 2012, Telecom Liechtenstein Company reported steady growth in its financial performance. The company had a 27% rise in its net income, and thus its communication platform proved very beneficial to the entire economy. The 27% rise in its net income was a yearly growth rate that was mainly realized due to the steady good performance of the data and telecommunication platform. If overseas investments had been keenly monitored, and their mobile networks effectively managed, the company’s income streams would have steadily improved.
Other related projects like mobile telephony, the Liechtenstein data collection and clearance station, e-Marine, real estate investments, wide consultation project that aims to expand indoor cabling and the electronic facility management should be focused on enhancing greater productivity and better network structure and thus enhance the company’s network structure. As evidenced in the analyses, the realization of substantial growth in mobile telephony, data services, and corporate segments are key aspects of the success of the Telecom Liechtenstein Company’s mobility strategies. The company must enhance its mobility by diversifying its revenue streams and thus benefit from any competitive challenges in the market. This fact partly explains the reason why data services for the company contributed more than 30% of the total company revenues generated from local and internal markets.
Project financing
In Liechtenstein, the Telecom Liechtenstein Company’s financing remains to be the largest information technology project in the history of telecommunication in the country (Plunkett, 2008). Financing of either an existing or new business venture for the Telecom Liechtenstein Company is a costly venture that presents several challenges. Proper planning, research, and cost-effective management of the resource are crucial in enhancing the reliability and overall success of the company’s technological innovations.
Table 2: Estimated start-up costs
In a multinational company, project financing is not expected to be costly due to the existence of already established networks and effective communication platforms. The current cost of the most mobile and internet related services has steadily increased, thus making the cost of starting a new business venture costly (Reading, 2005). The assumption being made is that in a new market, the cost of starting a new business venture would not be increased by high trade tariffs and import duties as the concerned government would provide vital trade subsidies.
Organization
The five years organizational plan for Telecom Liechtenstein Company is built on the premise that visionary, cost-effective management of resources, business processes, and personnel will be the key attributes of enhancing sound wealth management practices. A lean organizational structure is vital for the effective utilization of resources. For efficiency and cost-effective operational mechanisms, the company employs a lean organizational structure that aims to enhance efficiency and cost-effectiveness at both the local and internal level. Rather than focus on establishing operations in new environments, it is highly likely that proper planning and streamlined allocation of resources to the new markets should not be undertaken at the expense of the existing and already established business markets. The global economic recession has been an issue of great concern to top-level managers. Incidences of cybercrime and attacks, terrorism, and related insecurity challenges must be keenly investigated and addressed promptly.
Avoidance of fraudulent schemes and other management challenges like differences among personnel in the company remains to be major issues of concern in enhancing a greater level of efficiency and cost competitiveness (John, 2010). For effective wealth management, the organization of business should be focused on shaping the future and enhancing relations among investors and other key stakeholders. Technological revolution should not necessarily be established on costly technology but on creative, innovative, and unique solutions aimed at addressing the consumers’ needs. The company’s facilities include strategically located and decent offices. These buildings host its regional headquarters, antenna support, and telecommunication infrastructure, and monetary resources should fully be utilized to enrich customers’ experiences.
Exit plan
The exit plan of Telecom Liechtenstein Company would relate to how well the company would handle its future failures and manage the decrease in its sales volumes, including the constant decline of its customer base. Failure to venture into new territories would translate into the total failure of the Telecom Liechtenstein Company.
Consequently, the sales volumes would steadily decline, leading to poor market share performance for the company. Reduced telecom involvement would be a good exit strategy as it would ensure that loyal customers find the alternative service provider before the Telecom Liechtenstein Company fully exits the specified markets. Payment of salaries, bonuses, and wages to the personnel would be based on the company’s performance and competitiveness. Repayment of loans would be undertaken with a full understanding of the fact that how money is utilized would build or lead to a decline of a business venture (Birchall, 2006). The liquidation exit strategy is not an ideal exit mechanism because it is a robust approach that does not put into consideration the aftermath of the business strategy. Acquisition of wealth for any business would be a safe approach as it would address the needs of all stakeholders and thus ensure that massive losses are minimized while executing the mobile solutions’ exit plan.
Appendices (Pro-forma Income Statement and Balance Sheet (Source: Company Update, Swiss Bank)
Executive summary
The strategic plan focuses on ensuring that mobile solutions and home entertainment are enriched (George, Kress & Snyder, 1994). The Telecom Liechtenstein Company is a multinational communication company that is currently at the forefront of a technological revolution in the European region and other sectors of the global technological revolution. The strategic business plan aims at enhancing unique and enhanced customer experiences. Sound wealth management practices are important initiatives to the success of the Telecom Liechtenstein Company and the continued acceptance of its products in the global telecommunication market. Telecom Liechtenstein Company’s sales revenues for the year 2013 are expected to increase from 2% up to 4%. Although the profit levels were 9% in the year 2012 after suffering losses of 1.8 million Francs in 2011, earnings before tax, amortization, depreciation, and interest for the year 2013 are expected to plummet by 2%. The information revolution and technological development will continue to play a critical role in determining the future investment and strategic, operational mechanisms of the company.
References
Aaker, D A, McLoughlin, D 2010,Strategic Market Management – Global Perspectives, John Wiley & Sons Ltd,West Sussex.
Birchall, M 2006,”Consultancy pioneer is still setting the pace”, The Times, p. 8.
George, J, Kress, T, & Snyder, J. 1994. Forecasting and Market Analysis Techniques: A Practical Approach, Quorum Books, Westport.
John, R 2010, Network Nation: Inventing American Telecommunications 520 pages; traces the evolution of the country’s telegraph and telephone networks, Harvard University Press, Harvard.
Plunkett, J W 2008, Plunkett’s Telecommunications Industry Almanac Etisalat Financials, Choice Magazine, Houston.
Reading, C 2005, Strategic Business Planning: A Dynamic System for Improving Performance and competitive advantage, Edn. 3 (paperback edition), Kogan Page Limited, London.
Saylor, M 2012, The Mobile Wave: How Mobile Intelligence Will Change Everything, Perseus Books/Vanguard Press, New York.
Wit, B, & Meyer, R 2010, Strategy Process, Content, Context an International Perspective, Fourth Edition, South-West CENGAGE Learning, Connecticut.