International Business Management, Khaiser Ali Shah. Student Publications, Research, Projects, Investigation and Academic Work presented by Atlantic International University students, faculty and other contributors. Bachelor, master, doctoral degree progr

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Author: Khaiser Ali Shah
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	Atlantic Inter national Univers ity North Miami, F lorida Summer 2007 Course Title: Inter natio nal Busi ness Ma na ge me nt Name o f Instructo r: Rafael Mo lina Sub mitted By: Khaiser Ali S hah ID: UM3371 BHR8116 Phase II - 2007 ATLAN TIC INTERNA TIO NAL UNIVERS ITY Summer 2007 Phase � II THEORIES OF INTERN ATIONAL T RAD E International Marketing International M arketing is p erformance of business activities design ed to p lan, p rice, p romote and direct the flow of comp anies goods & services to customers or users in more than one nation for p rofit Absolute Advantage Theory The absolute advantage theory of international trade was p ut forward by Adam S mith. In his work "The Wealth of Nations", Adam Smith said that the real wealth of nation consists of goods & services availab le to the citizens & not on the quantity of bullion. Smith believed that every country has an absolute advantage in p roducin g some co mmodity over the others. Thus a country must imp ort those goods which are relatively cheap in other countries & exp ort those goods which are ch eap ly p roduced inside the country . Smith was advocate of Lassiez-Faire or Free Trade between the countries. Accordin g to Smith, a country should sp ecialize in those p roducts in which it either has a natural or an acqu ired adv antage. Natural advantage may be available to a country on account of climatic cond itions, availability of natural resources, abundant labour supp ly etc. The comp etitive advantage of nations in the exp ort of manufactured goods & serv ices dep ends up on acquired advantage E.g. Jap an has an acquired advantage in the p roduction of high qu ality steel although she has a natural disadvantage in not havin g any iron and coal min es. While India h as abundant supp ly of natural resources in terms of mineral & min es, it can exp loit its natural advantage only in exp orting iron ore and imp ort value added steel fro m Jap an for want of an acquired advantage. The theory of absolute cost advantage can be illustrated with the examp le of a two-country ; two-commodity model. Assump tion: 1. Two countries � India and United States 2. Two commodities � Tea and Wheat 3. Both countries have the same quantity of p roductive resources available to p roduce tea & wheat & these resources measure up to 200 units. Int ernat ional Business Management Page 2 of 31 Submitted by: Khaiser Ali Shah - UM3371BHR8116 GO BACK T O CONT ENT S ATLAN TIC INTERNA TIO NAL UNIVERS ITY Summer 2007 Phase � II Producti ve Resources = 200 units India Unites States Tea 8 units to p roduce 40 units to p roduce 1 Qunt. 1 Qunt. Wheat 20 units to p roduce 10 units to p roduce 1 Qunt. 1 Qunt. M ore Efficient Tea Wheat In the absence of International trade, both countries divide their p roduction resources equally between tea & wheat. India United States Total Tea 100/8 = 12.5 100/40 = 2.5 12.50 qunt qunt. qunt. +2.50 qunt 15.00 qunt Wheat 100/20 = 100/10 = 05.00 qunt 5qunt. 10qunt +10.00 qunt 15.00 qunt Point A Point B Point A & B shows the p roduction p ossibility of both the countries. Now, assume India & U.S decide to sp ecialize in p roduction of that commodity in which it has an absolute advantage. India would sp ecialize in p roduction of tea & U.S in wheat. India United States Total Tea 200/8 = 25 -- 25 qunt qunt. Wheat -- 200/10 = 20 20 qunt qunt Point D Point C Extendin g this examp le to all the countries of the world, we may say that international division of labour will lead to sp ecialization, gr eater efficien cy and all the countries can hav e more of every commod ity that is p roduced in the world. E.g. Let us assume that India is more efficient in p roducin g tea & wheat than U.S. India therefore has an absolute advantage in p roducing both the commod ities. Further, let us assume that India & U.S has only 200 units of resources availab le to p roduce these goods. Int ernat ional Business Management Page 3 of 31 Submitted by: Khaiser Ali Shah - UM3371BHR8116 GO BACK T O CONT ENT S ATLAN TIC INTERNA TIO NAL UNIVERS ITY Summer 2007 Phase � II Int ernat ional Business Management Page 4 of 31 Submitted by: Khaiser Ali Shah - UM3371BHR8116 GO BACK T O CONT ENT S ATLAN TIC INTERNA TIO NAL UNIVERS ITY Summer 2007 Phase � II Comparative Advantage Theory David Ricardo imp roved up on the Absolute Cost Advantage theory of Adam Smith & p ut forward his theory of Comp arative Advantage in 1817. What happ ens if a country has an absolute advantage or absolute disadvantage in p roducing all the commodities that it wants to consume? Will the country imp ort all its requirements in the case of an absolute disadvantage across the board or will the country p roduce every thing that it wants in the case of an absolute advantage across the board? In both the cases, the answer is "NO" David Ricardo said that countries should p roduce only those goods in which it either has a comp arative advantage or has the least comp arative disadvantage. The cru x of the theory is that resources should be withdrawn from less efficient uses & redirected to more efficient uses. India Unites States Tea 8 units to p roduce 20 units to p roduce 1 Qunt. 1 Qunt. Wheat 10 units to p roduce 20 units to p roduce 1 Qunt. 1 Qunt. M ore Efficient In the absence of international trade, both the countries divide their available resources equally in the p roduction of tea & wheat. India United States Total Tea 100/8 = 12.5 100/20 = 5 17.5 qunt qunt qunt Wheat 100/10 = 10 100/20 = 5 15 qunt qunt qunt Now, given the distribution of resources and other things remainin g constant the p roduction of tea or wheat in both the countries cannot be increased without involving a sacrif ice i.e. if the p roduction of tea is to be increased, wheat p roduction will have to be reduced and vice- versa. By entering into International Trade, combin ed p roduction of Tea & Wheat can be increased. Int ernat ional Business Management Page 5 of 31 Submitted by: Khaiser Ali Shah - UM3371BHR8116 GO BACK T O CONT ENT S ATLAN TIC INTERNA TIO NAL UNIVERS ITY Summer 2007 Phase � II India United States Total Tea 140/8 = 17.5 -- 17.5 qunt qunt Wheat 60/10 = 6 Full 200 units qunt then, 200/20 = 10 16 qunt qunt India United States Total Tea 150/8 = 18.75 -- 18.7.5 qunt qunt Wheat 50/10 = 5 qunt 200/20 = 10 15 qunt qunt This gain can be shared by both the countries, thus increasin g the economic welf are of the p eop le.Product Life C ycle Theory Raymond Vernon, exp lains world trade in manufactured p roducts on the basis of stages in the p roduct life. Accordin g to Vernon, certain p roducts go through a cy cle consisting of about 4 stages, namely Introduction Growth M aturity Decline and the location of the p roduction will shift internationally dep ending on the stage of the cy cle. The Introduction stage of the p roduct life cy cle, which starts with the launching of the new p roduct characterized by 1. No sales : because it gen erally takes sometime for a new p roduct to get wide accep tance by consumers and it also takes time to exp and the marketin g of the p roduct. 2. High cost p er unit, because of the low sales and high p romotional exp enditure 3. Absence of or low comp etition if the p roduct is entirely new. Loss or negligib le p rofit because of low sales and h igh cost The Growth stage which follows the International stage is characterized by Int ernat ional Business Management Page 6 of 31 Submitted by: Khaiser Ali Shah - UM3371BHR8116 GO BACK T O CONT ENT S ATLAN TIC INTERNA TIO NAL UNIVERS ITY Summer 2007 Phase � II 1. Fast growth in sales because of incr easin g consumer accep tance and exp ansion of mark eting 2. Growing p rofits because of growin g sales and fall in the incidence of fixed p roduction cost and marketing cost p er unit 3. Increase in comp etition 4. M arket segmentation and the introduction of different versions (models of the p roduct) The Maturity stage is ch aracterized by 1. Saturation of sales: In the ear ly p art of the stage sales may grow slowly but at a later p art there could even be a f all in sales 2. Intense comp etition 3. Fall in p rofits because of high p romotional exp enditure and fallin g mar gins Last stage (Decline) is characterized by 1. Entry of new p roducts which comp ete with the p roduct 2. Declinin g sales 3. Declinin g p rofits: Profits may even become negative 4. Exit of some of the firms Int ernat ional Business Management Page 7 of 31 Submitted by: Khaiser Ali Shah - UM3371BHR8116 GO BACK T O CONT ENT S ATLAN TIC INTERNA TIO NAL UNIVERS ITY Summer 2007 Phase � II E.g. A Black and White television extensively p enetrated households in the USA, nearly a dozen y ears before, they reached comp arable number of v iewers in Europ e and Jap an. In the case of colour television the time lag was 5-6 y ears for Jap an and a few more for Europ e. In the case of video cassette recorders, there was a difference of 3-4 y ears. But in this case Europ e and Jap an led the way , the USA kept its focus on cable television. It may be noted that the Black and Wh ite television was introduced in Ind ia nationally only after it had reached the declin in g stage in advan ced countries and the Colour television was in the introduction / growth stages in India, wher eas it was in the maturity / declinin g stage in several other countries. AN INTRODUCTION TO INTERNAT IONAL INFORMAT ION TECHNOLOGY EN AB LED S ERVIC ES (IIT ES ) The ITES is that sector of information technolo gy (IT) which aims at p roviding various services through the use of IT. The sp ectrum of IT enabled services includ es call centers, medical transcrip tion, back office op erations, accounting and legal services, content develop ment esp ecially for the internet, p ay roll management, lo gistics management, GIS map p ing, etc. The entire range of IT enabled services varies from p ure and simp le data entry to customer interaction, which is comp lex and r equires intelligen ce. Comp lete work sp here of ITES Activities involves Data entry Back office p rocessing M edical transcrip tion Insurance claims p rocessing Salary p rocessing Legal d atabase Content develop ment Call centers Customer service Int ernat ional Business Management Page 8 of 31 Submitted by: Khaiser Ali Shah - UM3371BHR8116 GO BACK T O CONT ENT S ATLAN TIC INTERNA TIO NAL UNIVERS ITY Summer 2007 Phase � II Knowledge Process Outsourcing (KPO) KPO is an up coming facility which deals with research and develop ment activities. It has been estimated that by 2010, 300,000 jobs would be created in the KPO sp ace and 70% of these jobs are exp ected to come to India. But the p icture is not as rosy as it looks. The KPO industry will hav e to wade through many challen ges to keep up the exp ectations and p redictions for its bright future. Difficulties faced by KPO One of the major p roblems faced by the KPO industry is the dearth of skilled manp ower with domain exp ertise. The client's exp ectations and quality requirements are very high. Also in the KPO sp ace, client conversion and develop ment takes longer comp ared to other p rocesses. If India wants to get 70% of KPO jobs by 2010, then serious intervention at the educational level and investment in trainin g ar e imp erative. A Peek into the BPO Industry Business Process Outsourcing (BPO) is the delegation of one or more IT-intensive business p rocesses to an external p rovider that in turn owns, administers and manages the selected p rocess based on defined and measurab le p erforman ce cr iteria. BPO is a bro ad term ref errin g to outsourcing in all fields. It differentiates itself by either p utting in n ew technolo gy or app ly ing existing technolo gy in a new way to imp rove a p rocess. BPO has been the latest mantra in India today . As the current sources of revenue face slower growth, software comp anies are try ing new way s to increase their revenues. BPO is top on their list today . IT services companies are mak in g a qu ick entry into the BPO sp ace on the strength of their existing set of clients. We hop e to addr ess all issues related to BPO in Ind ia on this p ortal. The p hilosop hy behind BPO is sp ecific, do what y ou do best and leave every thing else to business p rocess outsourcers. Comp anies are movin g their non-core busin ess p rocesses to outsource p roviders. BPO saves p recious management time and resources and allows focus while build in g up on core co mp etencies. The list of functions bein g outsourced is getting longer by the day . Call center s ap art, functions outsourced sp an p urchasing and disbursement, order entry , billin g and collection, hu man resources administration, cash and investment management, tax co mp liance, internal audit, p ay roll...the list gets lon ger every day . BPO is one way of increasing the p rofits. If done well, BPO results in increasing shareholder value. Few of the motivation factors as to why BPO is gainin g ground are: Int ernat ional Business Management Page 9 of 31 Submitted by: Khaiser Ali Shah - UM3371BHR8116 GO BACK T O CONT ENT S ATLAN TIC INTERNA TIO NAL UNIVERS ITY Summer 2007 Phase � II Int ernat ional Business Management Page 10 of 31 Submitted by: Khaiser Ali Shah - UM3371BHR8116 GO BACK T O CONT ENT S ATLAN TIC INTERNA TIO NAL UNIVERS ITY Summer 2007 Phase � II CALL C ENTRES IN INDIA Definition of Call Center A Call Center is the room or rooms where telemark eters sit at p hone banks talking with customers or p rosp ective customers. There are two kinds of call center, though the two are sometimes combin ed in on e p lace. An inbound call center receives call, as when a customer calls a 1-800 nu mber with a question about a p roduct. In an outbound call center, the telemarketers call the customer or the prosp ective customer. Outbound call centers often use an automatic dialer, a setup in which a comp uter dials random p hone numbers from a given file and then transfers any answered calls to an availab le telemarketer. Availability of high ly qualified skill p ool and faster adop tion of well-def ined busin ess p rocesses leads to higher p roductivity gains without comp romising on quality . Customers across verticals like Insurance, Bankin g, Pharmaceuticals, Telecom, Automotive and Air lines seem to be the early adop ters of Business Process Outsourcing. Of the vertical listed above insurance and bank in g are able to gener ate bulk of the sav in gs p urely because of the lar ge p rop ortion of p rocesses they can outsource like claims p rocessing, loans p rocessing and client servicin g through call centers. Why Outsourcing from India? Robust communication infrastructure, a lar ge En glish-sp eakin g workforce, low labor costs, app rop riate time-zone difference with the West and the brand equity built by the software services sector are comp ellin g reasons for choosin g Ind ia as the BPO destination. The international bandwidth situation has imp roved dramatically over the last 3 y ears with the launch of India's first p rivate undersea cable. The p rivatization of the telecom Industry has resulted in significant drop in telecom rates. Continuing co mp etition in the industry with the recent entry of newer p lay ers will see a further drop in telecom p rices. As a result, the telecom costs have dropp ed by 85% in 3 y ears. Power availability has also imp roved dramatically over the last 5 y ears, thus ensuring p ower reliab ility at most ITES locations like Ban galore, Delhi, Chennai, Bombay , Pune and Calcutta. Resp ective state governments in India have undertaken reforms in the p ower sector to imp rove p ower supp ly to ITES comp anies. Int ernat ional Business Management Page 11 of 31 Submitted by: Khaiser Ali Shah - UM3371BHR8116 GO BACK T O CONT ENT S ATLAN TIC INTERNA TIO NAL UNIVERS ITY Summer 2007 Phase � II INDIA CONS IS T OUTSOURCING OF 80% T HROUGH OUT THE WORLD. India emer ged as a software service exp orter in the late 1980s and early 1990s with the country 's transition from centralized p lannin g to a market-oriented economy . Today Indian comp anies hold the lion share of the global outsourcing market and comp ete with leading multi-national sup p liers across the IT solutions sp ectrum. Following is the p ie chart describing the share of India as a software service exp orter in the glob al BPO industry Few of the motivation factors as to why BPO is gainin g ground are: Factor Cost Advantage Economy of Scale Business Risk M itigation Sup erior Comp etency Utilization Imp rovement S UTHERLAND AT A GLANCE Founded in 1986, Sutherland h as metamorp hosed from a regional startup into a global outsourcing giant. Dilip Vellod i, founder and CEO has been the drivin g for ce b ehind 19 y ears of relentless endeavor that is catap ulated Sutherland Global Services into the top 15 outsourcing firms on the p lanet. A p ioneer in Closed Loop customer M anagement, a mod el r ep licated in the initial serv ices p latform at Sutherland. The comp any serves fortune 500 clients in the Information, Communication, Technolo gy , Financial Services and e-Retail sp ace. Sutherland has sp awned confidence and goodwill amon g the business across the world by its ability to access market Int ernat ional Business Management Page 12 of 31 Submitted by: Khaiser Ali Shah - UM3371BHR8116 GO BACK T O CONT ENT S ATLAN TIC INTERNA TIO NAL UNIVERS ITY Summer 2007 Phase � II needs and p rovide results based Technology and M arketing Solutions. Sutherland, with a legacy of nearly two decades has emer ged a lead er in an area, still deemed to be in its infancy . Sutherland Glob al Services p rovides world class Business p rocess Outsourcing (BPO) that enables its clients to manage their customer-relationship s. Sutherland Glob al Serv ices as a BPO has exp anded itself to Canada, Philip p ines and India alon g with the Sutherland Global Serv ices incorp oration in USA. In India, the co mp any established itself as the Sutherland Global Services Limited. It co mp rises of main ly two branches, one of which is in Ch ennai from p ast five y ears and the other in M umbai fro m two y ears. The p hilosop hy of Sutherland Global Services limited is laid down in the words of the Promoter, M r. Dilip Vellodi as follows... "The most imp ortant ingredient Sutherland Global Serv ices p uts into any relationship is not what we say , but what we do and who we are. Sutherland consists of p rofessionals: all dedicated 100% to our customers, buildin g a legacy of relationship s through the consistent delivery of "end to end" Customer Relationship M anagement Service. We comb ine busin ess strategy , business p rocess, p eop le and technolo gy with knowledge relentlessly driving towards one key objective-increasin g our clients' p roductivity " In today 's world where globalization is p roceeding at the rap id rate with many BPO incorp orations, Sutherland Global Services has succeeded to acqu ire second p osition in the top five BPO firms. MISS ION To be the p remier p rovider of integrated technolo gy , marketing and customer care serv ices. Sutherland's mission statement has remain ed relevant and unchan ged since incep tion. VIS ION To be the leadin g global p rovider of Business Process Outsourcing solutions in the Customer M anagement sp ace. Sutherland's offer in gs cover a ran ge of services from consultin g for p rocess outsourcing to the imp lementation and man agement of outsourced op erations. Sutherland Global Services wil strive to build strong client relationship s and emerge as a p artner of first choice for strategic outsourcin g, and the emp loy er of choice for each of the geo gr ap hies within which we op erate. Int ernat ional Business Management Page 13 of 31 Submitted by: Khaiser Ali Shah - UM3371BHR8116 GO BACK T O CONT ENT S ATLAN TIC INTERNA TIO NAL UNIVERS ITY Summer 2007 Phase � II S UTHERLAND AT THE FLOOR LEADERS HIP Dilip R. Vellodi - Chair man and CEO Don Fairbairn - Chief People Officer Ashok Jain - Chief Operating Officer Prem Puthur - Chief Technology Officer Bharat Chadda - Senior Vice President, Client Services Christopher Crowley - Senior Vice President, Sales Daniel Lang - Senior Vice President, M arketing and Strategic Accounts Joseph Buggy - Senior Vice President, Client Services K. S. Kumar - Senior Vice President, Global Initiatives M uthu Narayanan - CFO, India Operations Tom Stuewe - Senior Vice President, Service Delivery THE HIERARCHICAL ORD ER The 35000 sq feet area of the Sutherland Glob al Services, where var ious inbound and outbound calls are carried on involves the followin g h ierar chy : Int ernat ional Business Management Page 14 of 31 Submitted by: Khaiser Ali Shah - UM3371BHR8116 GO BACK T O CONT ENT S ATLAN TIC INTERNA TIO NAL UNIVERS ITY Summer 2007 Phase � II P resident (Mu mbai) Chief Vice-P resident Department al Heads (Hr, Finance, Administration, Marketing) Team Manager Team Leader Senior Executives Executives Associates Trainees (Freshers) THE MAIN DEPARTMENTS The HR department In case of BPO industry the HR dep artment p lay s very imp ortant p art. The HR sp ecialists introduce a scientific and analy tical ap p roach to the organization. This dep artment faces the followin g challen ges: 1. Brand equity : Peop le still consider BPO to be "low brow", thus making it difficult to attract the best talent. Int ernat ional Business Management Page 15 of 31 Submitted by: Khaiser Ali Shah - UM3371BHR8116 GO BACK T O CONT ENT S ATLAN TIC INTERNA TIO NAL UNIVERS ITY Summer 2007 Phase � II 2. Standard p re-job training: Again, due to the wide variety of the jobs, lack of gener al clarity on skill sets, etc, there is no standard curr iculu m, which could b e designed and followed. 3. Benchmarks: There are hard ly any benchmarks for comp ensation and benefits, p erformance or HR p olicies. Every one is chartin g their own course. 4. Customer-comp anies tend to demand better results from outsourcing p artners than what they could actually exp ect from their own dep artments. "When the job is being done 10,000 miles away , demands on p arameters such as quality , turn around timeliness, information security , business continuity and disaster recovery , etc, are far high er than at home. So, how to be more efficient than the origin al? 5. Lack of focused train in g and certifications. The Finance Department The Finance Dep artment needs to consider the budget, the objectives for the volume/quality of data wanted, and the in-house resources, in terms of manp ower, skills and equip ment, comp ared to the cost of using an outside agen cy . Telemarketin g rar ely stands on its own; it is needed establish how it integrates with the other sales and marketing activities within the financial bud get. The Process of calls Sutherland basically deals with international inbound calls. All the calls are conn ected with the call center through hu ge servers. Typ ically , a customer calls the call center (usually a toll-free number). This number is disp lay ed on the service tag of the equip ment. The customers usually dial this number to find out solutions to the equip ment related p roblems. This call gets connected to any of the call centers which are in contract with the resp ective equip ment comp any . After p ressing numerous numbers (e.g. 1 for up gradation, 2 for warranty p eriod, 3 for technical services etc.) the op erator or the associate resolves the resp ective query by accessing the database relatin g to the equip ment. The query is resolved on p hone itself. But, if it is not p ossible, they mail the resp ective comp any to help the customer for services. The timing of attending each call is restricted for a given p eriod of time. All the receivin g, answerin g, recordin g and fin al billin g are effectively recorded, tap ed and at the end of a certain p eriod rep orted to the p rogrammin g manager. Delegation of work Int ernat ional Business Management Page 16 of 31 Submitted by: Khaiser Ali Shah - UM3371BHR8116 GO BACK T O CONT ENT S ATLAN TIC INTERNA TIO NAL UNIVERS ITY Summer 2007 Phase � II Bein g a lar ge scale unit the entire work within the organization is rightly delegated amongst various lev els. Every team leader has around 20-25 associates (emp loy ees) under him with whom he coordinates. There is a p articular group of associates for every client. For e.g. there is a group of 400 associates to manage and answer the calls related to DELL. There is one p rogrammin g man ager for them who is assisted by the team leaders Weekly schedules are p rovided to every associate along with the average numb er of calls to be attended. Even after strict p rofessional training if, in case any associate is not answerable to any call the call is transferred to the sup erior escalation level. Thus, only very complex issues reach to the top most escalation level. In order to assure more efficiency and quality service there ar e escalation lev els namely : Level 1 - Initial - Software p rocess is ad hoc, chaotic and undef ined with little success Level 2 - Repeatable - Basic p roject management p rocesses established to track cost, schedule and fun ctionality Level 3 - Defined - Software p rocess is documented, standardized and integrated for the organ ization Level 4 - Managed - Detailed measures of software p rocess and p roduct quality collected and software p rocess and p roducts quantitatively understood and controlled. Level 5 - Optimizing - Continuous p rocess improvement enabled by quantitative feedback fro m the p rocess and p ilot innovative ideas and technolo gies. Int ernat ional Business Management Page 17 of 31 Submitted by: Khaiser Ali Shah - UM3371BHR8116 GO BACK T O CONT ENT S ATLAN TIC INTERNA TIO NAL UNIVERS ITY Summer 2007 Phase � II PERFORMANC E MANAGEMENT PROCES S Analy ze and Give Feedback Identify Clear M easures (involved clients) Coach and Imp rove Daily Feedback Formal Evaluations Continuous Comp ensation Based on Performance Imp rovement M easure and M onitor M easure Performance M onitor Calls (online and lo gged) M onitor Rep orts and Client Survey s Client Call and Agent M onitoring Define Target M etrics Nesting � M entoring by Peers Team Lead ers focus on Coachin g Continuous Training Int ernat ional Business Management Page 18 of 31 Submitted by: Khaiser Ali Shah - UM3371BHR8116 GO BACK T O CONT ENT S ATLAN TIC INTERNA TIO NAL UNIVERS ITY Summer 2007 Phase � II EMPLOYEE CARE The Associates at Sutherland Two y ears from now when Sutherland Glob al Services Ltd. started in M umbai it had only 300 associates. At p resent it has the strength of 1200 associates and is aimin g at exp andin g it to 2500 associates in near future. At Sutherland, the emp loy ees are their valuable assets. They look up to maintain the healthy working cond itions and try to fulfill their exp ectations to the maximum. Parents meeting Sutherland h elds frequ ent p arent meetings in order to keep the p arents of the emp loy ees well informed about the work done and also assurance about the saf ety and comfort of their children. This is because BPO has a great height created in India. The p arents want their children to work in good environ ment. Thus, all misconcep tions and misrep resentations are clear ed. There queries raised ar e answered by the chief of Sutherland, M umbai. Transport Sutherland p rovides transp ort facilities to their associates. Durin g day shifts, the associates are p rovided with the p ick-drop facility till the near est station. At the time of night shifts the associates are p rovided to p ick-drop facility from their door step itself. Shifts The associates are recruited in three-four shifts dep ending on the volume of calls that are to be attended by them. One shift consists of ten hours where in they are giv en one hour as rest time in break-up s of 15 minutes- 15 minutes and � hour. Dress code The dress code followed at Sutherland is > M onday- White shirt, Dark trousers & Blue tie > Tuesday - Formals > Wednesday - Blue shirt and matchin g p ants > Friday - In formals > Saturday � Casuals (light colour ed clothes) Recreations Int ernat ional Business Management Page 19 of 31 Submitted by: Khaiser Ali Shah - UM3371BHR8116 GO BACK T O CONT ENT S ATLAN TIC INTERNA TIO NAL UNIVERS ITY Summer 2007 Phase � II The recreation availab le at Sutherland, M umbai are: Gy m with all advanced equip ments Rest rooms with all entertainment p rovisions Canteen facilities with healthy food Free tea, coffee, soup s etc availab le any time of the day Em ployee Related Officer (ERO) All the associate's p roblem issues related to their salaries, taxation, misbehav ior not able to understand something, gr anting leave, transp ort p roblem, p ersonal issues like blood donations required or illness of the associates or its family member etc are resolv ed by this officer eff ectively and efficiently Training Recruitment is done on the basis of camp us interviews, consultants recruit fresher. Freshers are giv en inhouse trainin g in their callcentres itself. Sutherland h as seven trainin g roo ms and each room h as 150 seatin g cap acity it begins with the business strategy and ends with a comp lete curriculu m and delivery p rogram. The chann els for delivery include: Face-to-face classroom trainin g Conference sessions Web-based seminars (webinars) Self-p aced train in g (books and toolkits S ome of the benefits to the associates at S outherland Provident Fund Gratuity Group M edi-claim Insurance Sch eme Personal Accident Insurance Sch eme Subsidized Food and Transp ortation Comp any Leased Accommodation. Recreation, Caf eteria, ATM and Concierge f acilities Corp orate Credit Card Cellular Phone / Lap top Personal Health Care (Regu lar medical ch eck-up s. Loans Educational B enefits Performance b ased incentives Int ernat ional Business Management Page 20 of 31 Submitted by: Khaiser Ali Shah - UM3371BHR8116 GO BACK T O CONT ENT S ATLAN TIC INTERNA TIO NAL UNIVERS ITY Summer 2007 Phase � II Flexi-time Flexible Salary Benefits Regu lar Get together and other cultural p rogr ams Weddin g Day Gift Emp loy ee Referral Scheme Paid Day s Off M aternity Leave These benefits vary as p er the p ost of each associate Problems faced by S utherland* Attrition Attrition level is not only the p roblem of Sutherland but of every call centre that is of every BPO all over the world. In literary lan guage, Attrition imp lies a gradu al, n atural redu ction in memb ership or p ersonnel, as through retirement, resignation, or death. But in p racticality , The reasons for the high rate of attrition was due to various factors like salary , work timings, other career op tions, adding that there is alway s the danger of costs increasin g while billin g r ates declin e. The new strategy regardin g this p roblem imp lies that the industry should look bey ond the traditional areas of recruitment and some thought should be given to emp loy p hysically challen ged p eop le and housewives. Competition The comp etition virtually does not p revail. The only fact that in the Interface Buildin g, M alad, and M umbai there are four other call centers alon g with Sutherland which adds to the comp etition. Besides the this office buildin g, there are several call center or ganization the surrounding ar eas. As a result situations are such that at times when a graduate comes for interview, he has interview letters of the other call centers in the same ar ea. Int ernat ional Business Management Page 21 of 31 Submitted by: Khaiser Ali Shah - UM3371BHR8116 GO BACK T O CONT ENT S ATLAN TIC INTERNA TIO NAL UNIVERS ITY Summer 2007 Phase � II THE EXT ERNAL ENVIRONMENT OF S UTHERLAND GLOBAL INDUS TRIES Sutherland is unique in the outsourcing industry where they are able to build and manage an integrated B lended So lution, in which a client p rogram is comp rised of agents located across multip le geo gr ap hies working under a sin gle management model. Client experience Sutherland takes great p ride in not only the p eop le they employ and the work they do, but also in their esteemed glob al client base. Fortune 500 leaders, as well as emer gin g growth comp anies, have relied on their p roven app roach to customer management outsourcing to achiev e their business objectives. The kinds of outsourcing projects managed Technical sup p ort for a Fortune 500 comp uter manufacturer. Customer care for a Fortune 500 online r etailer. Cross-sales for the leadin g cab le co mp any in the United States. Customer care and licensed sales for a Fortune 500 insurance comp any . Lead gen eration for a Fortune 500 telecommunications equip ment comp any . Account management for a lead in g U.S. medical equ ip ment company . Customer care for a leadin g electronic p ay ment systems comp any . Sales, customer care and back-office p rocessing for a leadin g U.S. wireless telecommun ications comp any . Direct sales for a Fortune 50 p harmaceutical comp any . Technical sup p ort for a Fortune 100 software comp any . Installed base sales and account management for a leading exp ress delivery comp any . Back-office p rocessing for a lead in g U.S. catalo g comp any Customers Sutherland Global Serv ices value their customers as business p artners and also treat their goals and objectives as their own. Supported Mo des of Customer Interaction: Leveragin g a rock-solid telecommun ications n etwork and technolo gy infrastructure that they have inv ested in dur in g 18 y ears as a contact center outsourcing comp any , Sutherland builds and runs Customer Service op erations for comp anies in the insurance industry . Sutherland Int ernat ional Business Management Page 22 of 31 Submitted by: Khaiser Ali Shah - UM3371BHR8116 GO BACK T O CONT ENT S ATLAN TIC INTERNA TIO NAL UNIVERS ITY Summer 2007 Phase � II p rovides multi-lingual supp ort to consumers over telep hone, as well as via email and web chat. Live, 24 x7 supp ort featuring agents trained on y our sp ecific p roducts and p rocedures, and qualified to interact directly with y our customers over the telep hone. For both automated and agent-based supp ort environments, we can efficiently manage high volumes of e-mail and Web-for m inquir ies. Real-time customer sup p ort via one-on-one text chat sessions between y our customers and our agents Enhanced agent assistance such as collabor ative browsing, forms/d esktop sharing, transferring URLs and online shop p ing cart order assistance. Advanced remote supp ort cap abilities such as automated p roblem detection, diagnostics and rep air. Sutherland currently uses technology such as fax on demand, automated f ax back, and fax servers to add efficien cies to our customer supp ort p rograms. Customer care Sutherland builds a multi-chann el customer car e op eration to handle customer inquiries and p rovide the level of service they demand. During due diligence p rocess, Sutherland has develop ed a full understandin g of customer serv ice objectives so that it can design and build a customized contact center operation that meets all the requir ements. Sutherland will build a customer care solution to p rovide telep hone, e-mail and ch at supp ort from a choice of on e or Int ernat ional Business Management Page 23 of 31 Submitted by: Khaiser Ali Shah - UM3371BHR8116 GO BACK T O CONT ENT S ATLAN TIC INTERNA TIO NAL UNIVERS ITY Summer 2007 Phase � II a comb ination of locations around the world � the United States, Canada, India and the Philip p ines. Sutherland's Best shore Delivery Model p rovides clients with a choice of strategic delivery locations across the glob e. Some examp les of the typ es of customer care services we can p rovide include: Pre-sales Ship p ing/delivery Insurance claims hand lin g inquiries Billin g sup p ort Order inquiries Reservations Shop p ing Pay ments Warranty entitlement assistance Refunds and Account rebates information Technical Support to customers Technology 's p roliferation within the business, home, p ersonal communications and entertainment environments is causin g a tremendous in crease in the demand for first-rate technical sup p ort cap abilities. Often, the comp anies that develop and market technical p roducts and services do not have the in-house exp ertise, resources or desire to op erate a high-qu ality supp ort center. These comp anies are increasin gly turning to outsourced service p roviders to help them deliver p ost-sales technical sup p ort to their customers. Sutherland p rovides technical sup p ort services to some of the world's leadin g technolo gy comp anies. It has established a r ep utation in the high-technolo gy industry as one of the most credible accomp lished and creative p roviders of outsourced technical sup p ort services by consistently deliverin g on our commitments and scorin g high customer satisfaction marks for our clients. Clients take their customer supp ort rep utation seriously . And so do The Sutherland group , which is why all of client relationship s are rooted in the ability to deliver high customer satisfaction scores at a comp etitive value. Sup p ort team dedicated to each client (no shared resources) Business-to-consumer and business-to-business models Best shore delivery option � from our centers in the U.S., Canada, India and the Philipp ines M ulti-channel cap abilities that include voice, e-mail, chat and remote assistance Web p ortal technology , knowledgeb ase tools, and integrated p roblem case tracking Int ernat ional Business Management Page 24 of 31 Submitted by: Khaiser Ali Shah - UM3371BHR8116 GO BACK T O CONT ENT S ATLAN TIC INTERNA TIO NAL UNIVERS ITY Summer 2007 Phase � II COPC and Six Sigma methodolo gies Flexible p ricin g structures Sutherland also comp lements technology supp ort with revenue generatin g customer extension services such as entitlement sales, warranty up grades, cross-sell and up-sell initiatives. Our technical sup p ort exp erience sp ans a wide variety of p roducts: Hardware � Desktop , notebook, server Software � Op erating sy stem, ap p lications, p roductivity , utilities and secur ity , web p ublishing Broadband Internet services Networking/teleco mmunications equip ment Comp uter p erip herals Consumer electronics Online software and services Customer satisfaction Quality monitoring is one of the most effective methods for imp roving customer satisfaction levels. M any sup ervisors and managers look for correlation between customer service levels and quality monitoring scores. Wh en p erformin g quality monitoring, Sutherland : Imp rove overall emp loy ee p erformance. Gain valuab le customer feedback. Increase customer satisfaction by addressin g common co mp laints and evaluatin g customer needs. Assess associates' listening and comp rehension skills. Evaluate associates' p roblem-solving abilities. Gain insight as to how well agents are controllin g the p ace and f low of the conversation. Assess associates' customer relationship management skills. Int ernat ional Business Management Page 25 of 31 Submitted by: Khaiser Ali Shah - UM3371BHR8116 GO BACK T O CONT ENT S ATLAN TIC INTERNA TIO NAL UNIVERS ITY Summer 2007 Phase � II A c 1988 Sutherland established in Rochester, NY h 1993 Comp any lands major BPO client relationship s with Digital Equip ment i Corp oration and Xerox Corp oration e v 1996 Entered into a co-sourcin g arr an gement with a Fortune 50 technology client. e Sutherland is resp onsible for customer care, account management and m marketin g supp ort services from four op erations centers across the U.S. e n 1 Launches Technical Sup p ort/Help Desk p ractice t 9 Achieved I SO 9000 registration s 9 8 2 Offshore op erations commence with the op ening of f irst facility in Chennai, 0 India 0 0 C 2 Near shore op erations commence with the op ening of first facility in Sault Ste. o 0 M arie, Canada r 0 e 3 v 2 Sutherland receiv es first round of COPC certifications a 0 l 0 u 4 e s 2 Sutherland exp ands into the Philipp ines with the op ening of first facility in 0 M anila o 0 b 5 s e 2 Comp any crosses the 10,000 employ ee mark r 0 v 0 e 5 d Int ernat ional Business Management Page 26 of 31 Submitted by: Khaiser Ali Shah - UM3371BHR8116 GO BACK T O CONT ENT S ATLAN TIC INTERNA TIO NAL UNIVERS ITY Summer 2007 Phase � II Values Peop le � The Sutherland Group value their emp loy ees and their contributions. They are dedicated to p roviding a workplace that is p rofessionally challengin g and p ersonally rewardin g. Integrity �The Sutherland Group insist on op en and honest dealin gs with our emp loy ees, customers and vendors. They believe that this is the only way to do business. Training � The Sutherland Group is committed to investing in the d evelop ment of every emp loy ee as they p rogress through their career in the or ganization. Customers � The Sutherland Group value their customers as business p artners and will treat their goals and objectives as their own. Entrep reneurial Sp irit � the Sutherland group takes p ersonal risks to imp rove their comp any and maintain the leadership p osition as the p remier p rovider of outsourced sales, marketing and technolo gy services. Focus Sutherland's back-off ice services allow clients to focus on strategic functions while outsourcing the management or execution of non value-addin g p rocesses to the enterprise. These p rocesses typ ically involve transaction p rocessing of high volume, rep eatable, labor intensive tasks that dominate the back-office. Flexible The services are either managed comp letely by Sutherland, whereby we own all op erational asp ects of the back-office function, or are co-sourced with both Sutherland and the client managin g d ifferent asp ects together. Efficient Sutherland's solutions lev erage technolo gy and a global delivery model to enable dramatic cost savings and p rocess imp rovements, while p roviding the client with flexibility and control. Total S olutions Int ernat ional Business Management Page 27 of 31 Submitted by: Khaiser Ali Shah - UM3371BHR8116 GO BACK T O CONT ENT S ATLAN TIC INTERNA TIO NAL UNIVERS ITY Summer 2007 Phase � II The Sutherland Group p rovides the highest quality service to the customers. They increase their comp etitive advantage through sup erior service and p erformance, consistently exceed in g their goals and exp ectations. S WOT ANALYS IS S trengths Highly skilled, En glish-sp eakin g Workforce. Cost Advantage Lower attrition rates than in the West. Dedicated workforce aimin g at makin g a lon g-term car eer in the field. Round-the-clock adv antage for Western comp anies du e to the hu ge time difference. Lower resp onse time with efficient and effective serv ice. Exp ertise in new technolo gies and reasonab le technical innovations. Strong Government Sup p ort. Weaknesses Recent months have seen a rise in the level of attrition rates amon g ITES workers who are quitting their jobs to p ursue higher studies. Of late workers have shown a tendency not to p ursue ITES as a full-time career. The cost of telecom and n etwork infrastructure is much higher in India than in the US. Opportunities To work closely with associations like Nasscom to p ortray India as the most favoured ITES destination in the world. Indian ITES comp anies should work closely with western governments and assuage their concerns and issues. India can be branded as a quality ITES destination rather than a low-cost destination. It gives op p ortunities for creation of global brands. Indian domestic-market growth. Threats Int ernat ional Business Management Page 28 of 31 Submitted by: Khaiser Ali Shah - UM3371BHR8116 GO BACK T O CONT ENT S ATLAN TIC INTERNA TIO NAL UNIVERS ITY Summer 2007 Phase � II Other ITES destinations such as China, Philipp ines and South Africa could have an ed ge on the cost factors. Internal comp etition for resources. Rising labor costs. The biggest challen ge the sector is facin g is with attrition. Int ernat ional Business Management Page 29 of 31 Submitted by: Khaiser Ali Shah - UM3371BHR8116 GO BACK T O CONT ENT S ATLAN TIC INTERNA TIO NAL UNIVERS ITY Summer 2007 Phase � II Bib lio grap hy 1. The Ethics of International Business �T Donaldson - 1989 - Oxford University Press New York 2. International Business: Environments and Op erations � JD Daniels, LH Radebaugh... - 1989 - books.global-investor.com 3. International Trade and Business Cy cles � M Baxter - 1995 - id eas.repec.org 4. M ultinational enterp rises and the global economy � JH Dunning - 1993 - Addison-Wesley Reading, Mass 5. Coop erative Strategies in International Business: Joint Ventures and Technolo gy Partnerships � FJ Contractor, P Lorange - 2002 - books.google.com 6. International Business Cy cles and the ERM : Is There a Europ ean Business Cy cle? � MJ Artis, W Zhang - 1995 - doi.wiley.com 7. The borderless world: p ower and strategy in the interlinked econo my � K Ohmae - 1990 - reiters.com 8. Comp eting with Integrity in International Business � RT De George - 1993 - Oxford University Press New York, NY 9. A Theory of Co-op eration in International Business � PJ Buckley, MC Casson - 1987 - University of Reading, Dep t. of Economics 10. [BOOK] Exp lainin g international p roduction � JH Dunning - 1988 - Unwin Hyman Boston 11. Comp etition in global industries � ME Porter - 1986 - Harvard Business School Press Boston, Mass Int ernat ional Business Management Page 30 of 31 Submitted by: Khaiser Ali Shah - UM3371BHR8116 GO BACK T O CONT ENT S ATLAN TIC INTERNA TIO NAL UNIVERS ITY Summer 2007 Phase � II 12. International business � MR Czinkota, IA Ronkainen, MH Moffett - 1994 - Dryden Press Fort Worth 13. International marketin g � PR Cateora - 1987 - gsp.khu.ac.kr 14. The cultural dimension of international business � GP Ferraro - 2002 - Prentice Hall 15. Globalization and its discontents: essay s on the new mobility of p eop le and money � S Sassen - 1998 - reiters.com 16. International p roduction and the multinational enterp rise � JH Dunning - 1981 - Allen & Unwin Boston 17. The cultural environment of international business � V Terpstra, K David - 1991 - South- Western Cincinn ati, OH 18. Technological innovation and multinational corp orations � J Cantwell - 1989 - B. Blackwell Cambridge, Mass., USA Int ernat ional Business Management Page 31 of 31 Submitted by: Khaiser Ali Shah - UM3371BHR8116 GO BACK T O CONT ENT S
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