December 2009, Quarter 0/12

TelCo Manager
You will run a Telco company that competes against 'BigTel' and 'PeopleTel'. You need to invest heavily to get new subscribers and become market leader.
Simulation Run Time The simulation will run for 12 Business Quarters (3 years), at a screen-refresh rate of 4 minutes per simulated Quarter. The simulation round therefore lasts 48 minutes - plus some start up time, as you familiarise yourself with the screens.
Topics Covered Strategy, Market Segmentation, Product Lifecycle, Portfolio Management, Customer retention, Customer acquisition. Your Starting Position The intial seed capital is 100M$ and your available investment budget is 108M$. Your company has already invested into 4 product lines: Mobile Home, Mobile Small Business, Broadband Home and Broadband Small Business. You are competing against 3 virtual competitors: TelCo Inc., BigTel Inc. and PeopleTel Inc.

Telecommunication

Accessories Home

Investment: 13M$
Monthly Capacity: 8,333 Units
Product Life Cycle: 30 months

Monthly Subscription: 92$ / Units
Monthly Revenues: 0.77M$
Staff: 23

Broadband Home

Investment: 25M$
Monthly Capacity: 104,167 Subscriber

Monthly Subscription: 18.46$ / Subscriber
Monthly Revenues: 1.92M$
Staff: 48

Broadband Small Business

Investment: 25M$
Monthly Capacity: 104,167 Subscriber

Monthly Subscription: 18.46$ / Subscriber
Monthly Revenues: 1.92M$
Staff: 48

Fixed Line Home

Investment: 55M$
Monthly Capacity: 138,889 Subscriber

Monthly Subscription: 28$ / Subscriber
Monthly Revenues: 3.85M$
Staff: 96

Fixed Line Small Business

Investment: 55M$
Monthly Capacity: 138,889 Subscriber

Monthly Subscription: 28$ / Subscriber
Monthly Revenues: 3.85M$
Staff: 96

Mobile Home

Investment: 38M$
Monthly Capacity: 83,333 Subscriber

Monthly Subscription: 32$ / Subscriber
Monthly Revenues: 2.69M$
Staff: 67

Mobile Small Business

Investment: 38M$
Monthly Capacity: 83,333 Subscriber

Monthly Subscription: 32$ / Subscriber
Monthly Revenues: 2.69M$
Staff: 67

Strategic Positioning

Customer Service	TQM/Product Quality	R&D/Innovation	HR/Training	CSR/Sustainability
Staff Cost +10.00% Cust.Satisfaction +50.00% Demand +4.00%	Staff Cost +8.00% Material Cost +8.00% Production +2.00% Demand +7.00%	Staff Cost +8.00% Material Cost +8.00% Demand +10.00%	Staff Cost +4.00% Material Cost +4.00% G&A Expenses -25.00% Production +2.00%	Staff Cost +8.00% Material Cost +8.00% Taxes -30.00% Demand +4.00%

TelCo Manager