ojt case study.docx

8/22/2019 ojt case study.docx

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COLLEGE OF BUSINESS ADMINISTRATION AND ACCOUNTANCY

MAJOR IN MARKETING AND ADVERTISING DEPARTMENT

A Marketing and Advertising Practicum Final Paper

Presented To

Ms. Chona O. Bautista

Marketing and Advertising Department Chairperson

CBAA, DLSU-D

In Partial Fulfillment in the Requirements

In Marketing and Advertising Practicum

Submitted by:

Alfelor, Jangaile Danae

MKA42

2013


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Table of Contents

I. Company Profilea. History 3

b. Organizational Structure 4

c. Industry Standing 5

d. Financial Statements 11

II. Cite one major marketing problem of the company (comprehensive caseanalysis) using this format:

a. Introduction to the Case 14

b. Time Context 15

c. Viewpoint 15

d. Problem Statement 16

e. Objectives 16

f. Areas of consideration (SWOT) 17

g. Assumptions 18

h. Alternative courses of actions (ACA) 18

i. Analysis of each ACA 18

j. Recommendation 21

III. Appendices 22


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I. Company Profilea. History

Since 1982, TeleTech has led the industry with strategic, innovative customer experience

solutions to drive increases in customer loyalty and shareholder value.

1982 - TeleTech Pioneers a New Industry: Ken Tuchman creates a company with the single

focus of delivering an exceptional customer experience as a core competency.

1995 - Expands Operations to Meet Growing Demand: Adds new technologies and

centers to serve increasingly complex multichannel client needs.

1996 - NASDAQ's IPO of the Year: Completes IPO and voted NASDAQ's most

successful IPO of the year.

1998 to 1999 - Global Footprint Expands and Joint Venture Announced: Opens centers in

Scotland, Canada, Argentina, and Brazil. Announces a joint venture with the Ford Motor

Company called Percepta.

2001 to 2005 - First to the Cloud: Deploys the first global IP-based platform to facilitate

the delivery of comprehensive global solutions on a centralized model. Formalized a human

capital methodology with HirePoint, TeleTech University, and TeleTech Total Rewards

services. Established a presence in the Philippines and announced record revenue in 2005.

2006 to 2010 - Expansion and Transformational Growth: Makes strategic acquisition of

Revana (formerly Direct Alliance), an award-winning revenue generation company.

Focuses on providing technology-enabled marketing, sales, and customer management

solutions to Global 1000 clients. Expands into South Africa. Launches Revenue Generation,

Social CRM, and Click-to-Chat solutions. Makes strategic acquisition of a global customer

experience thought leadership and management consulting firm, Peppers & Rogers Group.


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2011 to Present - Redefining the Customer Experience: Acquires technology leader

eLoyalty to enhance multichannel customer experience capabilities for clients and their

customers. Expands suite of cloud-based technologies and services to include premise-based

offerings. Establishes a strategic partnership with Satmetrix, co-developer of the Net

Promoter Score (NPS), and begins building NPS measurements and processes into

delivery capabilities. Makes strategic acquisition of iKnowtion to bring deep data analytics

methodology to the client base.

b. Organizational Structure

International Officers

Kenneth Tuchman

Chairman and Chief Executive Officer

James BarlettVice Chairman

Richard BledsoeExecutive Vice President of International Business

Development

Raj Dani

Senior Vice President of Corporate Development


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Martin DeGhetto

Chief Operations Officer

Mark GrindelandSenior Vice President and Chief Marketing Officer

Judi HandPresident and General Manager of Revanaand Chief Sales Officer of TeleTech

Mike Jossi

Executive Vice President of Human Capital Delivery

Regina PaolilloExecutive Vice President and Chief Financial Officer

Brian ShepherdExecutive Vice President of TeleTechand President of Customer Strategy and Technology Service


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c. Industry Standing

Business Processing Outsourcing remains a large and growing industry. It

facilitates economic growth, International investment, world trade and employment

and therefore is one of the main proponents of globalization. Call Center companies

have three main goals, providing good service to the customers, returning the

investment with an increase to their shareholders, and lastly providing sustenance to

nations economy. BPO Industry must not only take in priority the goal they have set

up for their company but also the dynamics that affect the improvement and success

of their industry. Such as their site improvement, quality service, technology, salary

and benefits their agents received. There are also some unpredictable dynamics that

when unprepared can affect the whole industry like the economic stability that is

irregular especially in Philippines where there is inflation all year round. Politics

environment is also a main factor in the dynamics that could change the entire

industry. Technology is also the second largest expense and a significant portion of a

Call Center total cost. The largest expense a call center incurs is labor that the

company must pay to agents, managers, directors, maintenance, and the different

management departments.

In the Philippines,call centersbegan as providers of business email response and

managing services. The call center sector comprises 80% of the total BPO industry in

the country. With 80% of the call services provided for the US market.

Growth of the call center industry in the Philippines can be written up to the lower

operational and labor costs relative to the US, the high proficiency in

spokenAmerican-style Englishandidioms(the Philippines was a former US colony
http://en.wikipedia.org/wiki/Call_centershttp://en.wikipedia.org/wiki/Call_centershttp://en.wikipedia.org/wiki/Call_centershttp://en.wikipedia.org/wiki/American_Englishhttp://en.wikipedia.org/wiki/American_Englishhttp://en.wikipedia.org/wiki/American_Englishhttp://en.wikipedia.org/wiki/Idiomshttp://en.wikipedia.org/wiki/Idiomshttp://en.wikipedia.org/wiki/Idiomshttp://en.wikipedia.org/wiki/Idiomshttp://en.wikipedia.org/wiki/American_Englishhttp://en.wikipedia.org/wiki/Call_centers


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and English is the language of instruction in schools), a constant stream of college-

educated applicants, and a highly-skilled and an overall motivated workforce. In

2008, call centers supported a $12-billion BPO industry. By 2011, the Philippines

surpassedIndiato become the top call center BPO destination in the world.

The Business Process Outsourcing (BPO) industry continues to post robust growth,

exceeding its targets last year. Data from the Information Technology and Business

Process Association of the Philippines (IBPAP), formerly Business Processing

Association of the Philippines, showed that revenues rose 18% to $13 billion in 2012

from $11 billion in 2011. The number of workers also rose 21.8% to 780 ,000 in 2012

from 640,000 in 2011. This year, the number of workers is expected to rise to

926,000.

Under the BPO roadmap, the government targets $25 billion in revenues and a

workforce of 1.3 million by 2016. The call center segment is expected to corner $14.7

billion of the BPO revenues, and 816,000 of total jobs to be created by 2016.

Healthcare, banking and financial sectors were factors for the 2012 boom. The

Philippines led in voice-based BPO. Healthcare BPO, due to its large talent pool, is

one of fastest-growing sectors, with revenues reaching $430 million by end-2012. It

has become a career alternative for some 200,000 Filipino nurses who work in

medical transcription, data management, medical coding and billing, and

pharmaceutical benefit management.

The voice sector employs two-thirds of the entire industry. The good command of

English by Filipinos paved the way for large-scale voice-based services outsourcing
http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/India


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to the Philippines, notably call centers, surpassing other countries as No. 1 destination

for call center operations. The Philippines is one of top destinations globally for

Information Technology (IT)-BPO and Global-In-House Centers (GIC) operations.

(http://ph.news.yahoo.com/editorial-strong-business-process-outsourcing-growth-

164921819.html)

It was the year 1992 when the first Business Process Outsourcing was first introduced

in the Philippines. From then on, a lot of call center companies have sprung like grass

on various parts of major cities in the Philippines. The BPO in Philippines was even

named Sunshine Industry because of the rampant establishment of BPO firms in

this country. Today, you can name hundreds of call center firms scattered across this

country but only a few remain huge and successful. Yes, there might be a lot of

business process outsourcing companies here but seldom are what you can consider

big companies meaning they pay and treat employees a lot better. So here are the

top ten BPO companies that you might be passing by, unknowingly:

ConvergysThis is one of the leading companies in the world in line with providing

various services such as human resources and billing services. Since the year 2003,

the BPO company have grown tremendously and is continually growing and

expanding in various parts of the Philippines. Its largest call center firm is located in

Glorietta 5 in Makati City. The biggest firm can house 2,041 seats and its also

recognized as the biggest call center in the world.

E-Telecare This company is one of the countrys pride as its the first Ayala-

backed BPO company. Services provided here are technical support, sales program
http://ph.news.yahoo.com/editorial-strong-business-process-outsourcing-growth-164921819.htmlhttp://ph.news.yahoo.com/editorial-strong-business-process-outsourcing-growth-164921819.htmlhttp://ph.news.yahoo.com/editorial-strong-business-process-outsourcing-growth-164921819.htmlhttp://ph.news.yahoo.com/editorial-strong-business-process-outsourcing-growth-164921819.htmlhttp://ph.news.yahoo.com/editorial-strong-business-process-outsourcing-growth-164921819.htmlhttp://ph.news.yahoo.com/editorial-strong-business-process-outsourcing-growth-164921819.html


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and inbound customer service. This is also one of the major BPO players that ranked

3rd in the year 2008.

SVI Software Ventures International is a company that focuses in Business

Solutions Development and IT consulting. The company has been operating for more

than 20 years now and has ventured into trending world-wide industries like health

care and pharmaceuticals, transportation, telecommunications, media, manufacturing,

banking and insurance, and energy and government.

Aegis People SupportThis firm is considered as one of the fastest growing call

center companies in the Philippines. The revenue hit 5.7 billion pesos in the year

2008. The BPO company focuses in providing back-office services to a number of

Fortune 500 companies globally. Field of business include telecommunications,

travel, banking and finance and health care and insurance.

Teleperformance With 6 contact centers and more than 7,000 workstations, the

Teleperformance is an ISO-certified company that primarily provides services in

technical support, back-office support, automation solutions and customer care.

ICT Group This company started in the year 2003 as a firm more focused in

customer care solutions. They have domestic and international businesses as clients in

providing support in the fields of health care, insurance, hospitality,

telecommunications and information technology.

West Services With an award of 2009 Employer of the Year given by the

European Chamber of Commerce of the Philippines, this company is continuing to


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expand as a BPO center in the country. It mainly supports clients through direct

marketing, automated voice response services and customer service.

EpixtarIf there are BPO companies that are more focused in IT services, Epixtar is

more into winning back clients and retention. However, their services changed into

offering the clients support in the field of financial services and medical transcription.

Teletech In alliance with Philippine Long Distance Company (PLDT), Teletech

aims to grow in business in the fields of integrated customer relations and

management solutions. It also has something to brag of as it ranked number one in the

year 2008. Its revenue hit 8.1 billion pesos.

Telus International Philippines This is a part of a Canadian company named

Telus International. Companies here provide various services to their international

clients. Services include: telecommunications, customer care, sales, market research,

back office support and technical support.

http://www.method1.com.ph/top-ten-bpo-firms-in-the-philippines.html
http://www.method1.com.ph/top-ten-bpo-firms-in-the-philippines.htmlhttp://www.method1.com.ph/top-ten-bpo-firms-in-the-philippines.htmlhttp://www.method1.com.ph/top-ten-bpo-firms-in-the-philippines.html


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d. Financial Statements


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II. Cite one major marketing problem of the company (comprehensive case analysis)using this format:

a. Introduction to the Case

TeleTech is one of the largest and most geographically diverse global providers of

technology-enabled, fully-integrated customer experience management solutions. With a

30-year history of helping their clients maximize the value of their brand through the

design and delivery of exceptional customer experiences and with approximately 120

service delivery centers in 15 countries worldwide. In 10 years Teletech have been

providing a great opportunity for every Filipino to gain valuable experience working with

diverse clients, customers, and cultures every day. Since 1982, TeleTech has thought and

acted outside the traditional boundaries of business. This stems from their belief that

every challenge brings new opportunities, and driven to identify these possibilities

at every turn. Teletechs ability to quickly adapt to global change has helped companies

scale their business, better serve customers, reduce risk, and increase profits along the

way. Today, they are still on the forefront ofwhats next in sales, marketing, and

customer relationship management plus they have the technology innovations

to successfully support these organizations. .TeleTechs ability to equip our clients with

the transformative tools that enable their success has led to a proven track record of

stability and reliability regardless of whats going on in the rest ofthe world or within a

particular industry

Business processing outsourcing is a fast growing industry in the Philippines it

supply jobs for the increasing demand of employment. Call Center Agencies invest a lot

on their employees in terms of induction and training, developing, maintaining and


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retaining them in their organization. Therefore, managers at all costs must minimize

employees turnover. Although, there is no standard framework for understanding the

employees turnover process as whole, a wide range of factors have been found useful in

interpreting employee turnover. Therefore, there is need to develop a fuller understanding

of the employee turnover, more especially, the sources of what determines employee

turnover, effects and strategies that managers can put in place minimize turnover. One of

these factors is job satisfaction; theories propose that if the employee is satisfied and

happy in his job then he will not change his job. The study is going to talk about job

satisfaction and how can it effect on employee turnover in Teletech. Now a days all

companies have a common goal which is to increase productivity and reduce costs, and

one way to reach that goal is to satisfy the employee to use all his abilities and creativity

while doing his job, and they seek to find the factors which effect on satisfaction. This

study is going to find a solution for job satisfaction and employee turnover.

b. Time Context

The analysis has been conducted during the 240 hours of Internship program. The

Study have been prepared through this period and will be based from the information and

experiences the researcher had experienced.

c. Viewpoint

This study will be analyzed and responded from a marketing and advertising

student point of view. The perspective of the student will depend from the experiences


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and information attained during the 240 hours internship program. Including the

knowledge obtained from years of academic lessons and activities in the university.

d. Problem Statement

This study aims to answer the question regarding the topic to attain the results

needed for analysis. What courses of actions will strengthen Teletechs employees

loyalty and job satisfaction and reduce the rate of possible resignation and transfer of the

employee to other call centre companies?

e. Objectives

To heighten Teletechs industry status. To increase brand awareness resulting into boost in applicant flow. To have a facility that lead in technical and architectural advancement. To retain employee and reduce the employee turnover To attain employees loyalty and job satisfaction


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f. Areas of consideration (SWOT)

The anti-outsourcing

legislation in the US state of

New Jersey. Three more statesin the United States are

planning legislation against

outsourcing Connecticut,

Missouri and Wisconsin.

Competing Employers

Consolidation of Competitors

Other ITES destinations such as

China, India and South Africa

could have an edge on the cost

factor.

Slowdown of demand

Correct Weakness

New and ImprovedFacility

New Enterpise-

Wide Sale DatabaseUnder

Development

Sales Coaching

The cost of telecom

and network

infrastructure

Manpower shortage

Local infrastructure

Political opposition

from developed

countries

Highly skilled, English-

speaking workforce.

Abundant manpower

Cheaper workforce compareto counterpart countries.

Lower attrition rates.

Dedicated workforce aiming at

making a long-term career inthe field.

Lower response time with

efficient and effective service.

Operational excellence

Conducive business

environment

Strength Weakness

ThreatOpportunity


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g. Assumptions

Assumptions are one of the most critical steps in the preparation of a marketing

plan because it is the easiest step to do carelessly. They should be: Key, Critical and few

in Number Consistent with relevant known facts with defensible assumptions.

h. Alternative courses of actions (ACA)

Alternative Course of Action No. 1

Marketing should provide events, programs and activity that will heighten

the interest of the employee in working.


The company should prioritize the Job satisfaction and security of the

employee.

i. Analysis of each ACA


The prime factor in job satisfaction is the work itself. It is difficult, if not

impossible, to have job satisfaction if we hate the work we are doing. However,

sometimes people claim to hate their job when in fact just hate doing the job for

their current employer. These people actually like the work; they just don't like

the people they are currently doing it for. Others may dislike some aspect of their

job. Job satisfaction generally increases as the number of skills used in

performing a job increases. Additionally, job satisfaction generally increases as


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the amount of knowledge needed to perform a job increases. These two factors,

required skills and quantity of knowledge, combine to form job variety.

To avoid unnecessary career changes, the researcher have suggested that

the above courses of action be implemented so we can accomplish the desire

attachment and involvement of the employee through creating meaningful and

motivating activity that will further develop the employees skills and interest

towards their job forming loyalty to the company.


Satisfaction is also negatively related to turnover, Yet, again, other factors

such as labor-market conditions, expectations about alternative job opportunities,

and length of tenure with the organization are important constraints on the actual

decision to leave one's current job. Evidence indicates that an important

moderator of the satisfactionturnover relationship is the employee's level of

performance. Specifically, level of satisfaction is less important in predicting

turnover for superior performers. The organization typically makes considerable

efforts to keep these people. They get pay raises, praise, recognition, increased

promotional opportunities, and so forth. Just the opposite tends to apply to poor

performers. Few attempts are made by the organization to retain them. There may

even be subtle pressures to encourage them to quit. We would expect, therefore,

that job satisfaction is more important in influencing poor performers to stay than

superior performers. Regardless of level of satisfaction, the latter are more likely


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to remain with the organization because the receipt of recognition, praise, and

other rewards gives them more reasons for staying.

Traditional theory suggests that job performance is affected by job

satisfaction; increase job satisfaction and we will increase job performance.

However job performance is much more complex than the traditional theory. The

prevailing theory was/is that increased job satisfaction results in

increased performance. Intuitively this theory makes sense. The two attributes,

job satisfaction and job performance, are too closely linked to one another, and

that they affect each other. Here are cases in point: If a person is highly satisfied

with his/her job, this would lead the person to want to do a good job and to

perform well. On the other side is the person's ability level. If the person is

struggling with performing the job, it may give the appearance that the person is

a poor performer even though he/she may be exhausting a great deal of effort in

trying to perform the job. This person's frustration then in turn leads to poor job

satisfaction.

With this course of action it will prioritize the employees wellbeing

especially their satisfaction and security toward their job. Most of employees who

are not satisfied in their jobs express through their action that they are not proud

by working to the company and they can change their job if they found another

opportunity. With this mentality it nay reduces work quality and productivity that

will certainly affect the standing of the company in the Industry. So it is important

that this course of action will be taken comprehensively providing the employees


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with the benefits and contentment in the work environment they needed in order

to minimize employees turnover rate.

j. Recommendation

Teletech must make satisfaction of their employees a priority, in order to reduce

turnover rate. The company must work on increasing the benefits, since most of the

employees can change their jobs for another one with extra benefits. The company must

make changes in its environment, in order to satisfy its employees and attract them to

stay, this could be done by applying shared governance, and this will make the employee

feel that he is a part of decisions take. The company should do a career leader, this

will help to reduce turnover, since each employee will have a goal to reach and each time

he reach his goal, he will find another goal to reach. Company must do interviews

with those who want to leave the call center, and try to find the reasons for leaving of

employees.

Happy workers may not necessarily be productive workers. At the individual

level, the evidence suggests the reverse to be more accurate that productivity is likely to

lead to satisfaction. Interestingly, if we move from the individual level to that of the

organization, there is renewed support for the original satisfactionperformance

relationship. When satisfaction and productivity data are gathered for the organization as

a whole, rather than at the individual level, we find that the organizations with

more satisfied employees tend to be more effective than organizations with fewer
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satisfied employees. So although we might not be able to say that a happy worker is more

productive, it might be true that happy organizations are more productive.

III. Appendices: Certification of Completion (Number of hours); Time card or logbook

(original or photocopy) for the whole OJT period.

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