Running heading: Unit 5 Individual Project
Unit 5 Individual Project
2nd November, 2010
This paper is formulated with an aim to analyze the operations of Cypricot Communications Inc. Solutions. The paper rounds down to the company’s internal and external environment. This comes in way of trying to find out the effects of the company’s legal, social and economic environment have affected the company’s operations and performance. It also tries to connect between the financial status of the company and technological implications to the running of the company. Since the business does not operate as a monopoly, then analysis will also be done based on the market competitors and other factors.
Cypricot Communication Inc.
Cypricot Communications Inc. being a mobile telephony company is currently performing well as a company though the changing business environment has and is still a challenge to the future prospects of the company. In looking at what the future holds for the company, this can be looked at from three angles (Peirson, 2009).
a) The Legal Environment
The communications commission has the powers and jurisdiction over all the telephony companies in the country. As such Cypricot Communications Inc. being one of them has no option but to comply by the policies developed by this commission and also according to the law which set up the same commission.
Pressure has been mounting on the company to reduce its Tariffs with the introduction of more companies in the market that are working so hard to get a good share of the market. As such the commission has made it difficult for the company to maintain its customers by them dictating the tariff charges hence making its opponents to get the4 muscles in getting the share of the company’s customers.
b) Social and Economic Environment
The ever reducing cost of the internet has impacted and will continue to be a challenge to the prospects of the company. While mobile telephony has played a key role in communication since its invention, World Wide Web social sites such as Twitter and face book are posing a threat to the use of phones. There are currently millions of people in the world who are subscribed to these social sites and hence find it easier and cheaper in using such sites than using the phones. This is working against the company’s prospects as it has already forced the company to lower its tariffs on the short message sending (sms).
The aspect of social responsibility has been and is still a challenge to the company. The resent strike by the dwellers of Scheufer which neighbors our main card minting center is a clear picture of this. This is a difficult challenge to deal with as the locals feel they are not well taken care of in terms of jobs yet the residents majorly do not have the necessary skills required for the jobs. As such the company is considering an option of training those who desire to get the jobs before getting them to work. This is of course costly to the company (Peirson, 2009).
C) Technological status
Technology is the key engine for the success of a business and Cypricot Communications is no exemption. While the take up of the modern technology which is less labor intensive by the company seems to be reducing the cost of production, this has been received with a lot of resistance from the workers union. The workers who see the inevitability off- laying of workers especially when the expansion of the company stops staged a number of demonstrations against automation of some of the processes in our card production centers. This has made the company to go slow on its automation plans.
The cost of automation also seems to be very expensive for the company. To get the funds to facilitate automation has not been that easy with a lot of unfavorable conditions given by the lending institutions. This has been another obstacle to this process. This has been a disadvantage considering the fact that other companies in the telephony industry are at an advanced stage of automation ad hence have less costs of production (Jennings, 2005).
This research is based on the current developments that the Cypricot Communication Inc. as a mobile telephony company is associated with. The analysis of these developments is on the basis of how they happened, the reason for them taking place and the implications on the company both directly and indirectly.
This paper has also based its findings on comparison between the company and other players in the mobile telephony industry. As such this has involved the mechanisms applied by the competitors in the market and how these mechanisms have impacted on the company. The legal framework has formed a wide source of reference for the study and analysis of the operations and performance of the company. The laws and the regulating body have great influence in the operation of the company. The various (annual) comprehensive performance reports of the company also form part of the analysis as they give the general trend on the performance of the company (Jain, Trehan & Trehan, 2007).
Results and Recommendations
After doing all the analysis on the performance of the country, I find out that the company is currently facing a lot of challenges due to change s in both the internal and the external environment. While automation is likely to reduce the cost of production and henceforth increase the profit margin of the company, this should be handled with care given that the thousands of the employees of the company comprise a reasonable size of the consumers of the company’s product.
Since the social responsibility of the company is turning out to be an expensive affair, I would propose that the company would change its approach towards the surrounding communities of its card centers. I would propose that other community based initiatives by the company can be done e.g. the initiation of economic project that will generate income and reduce the rates of unemployment. Alternatively, due to the lack of skills the company can also come up with academic oriented programs that will boost the literacy levels of the community at large. This could be in terms of sponsorships of the top performers and other forms of reward to the card s center surrounding schools (Worthington & Britton, 2009).
With the increase in the dependence of internet as a facet of communication, I would advice that the company engages more in providing quality mobile enabled internet services as the falling in prices of the net will always make it the better option of communication. The company can also cushion itself from any looming loses due to changing business environment by widening its scope e.g. by engaging in the direct sell of phones and other electronic gadgets that are phone related. It can also engage in mobile banking through collaboration with the banks and other financial institutions.
Jain, T. R., Trehan, M. & Trehan, R. (2007). Business Environment. London: Business
Jennings, M. (2005). Business: its legal, ethical, and global environment. New York: Cengage
Peirson, G. (2009). Business finance. Sydney: McGraw-Hill
Worthington, I. & Britton, C. (2009). Business Environment. New York: Pearson Education