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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

Table of Contents I. Company Profile a. History b. Organizational Structure c. Industry Standing d. Financial Statements 3 4 5 11

II.

Cite one major marketing problem of the company (comprehensive case analysis) using this format: a. Introduction to the Case b. Time Context c. Viewpoint d. Problem Statement e. Objectives f. Areas of consideration (SWOT) g. Assumptions h. Alternative courses of actions (ACA) i. Analysis of each ACA j. Recommendation 14 15 15 16 16 17 18 18 18 21 22

III. Appendices

I.

Company Profile a. 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.

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 Barlett Vice Chairman

Richard Bledsoe Executive Vice President of International Business Development

Raj Dani Senior Vice President of Corporate Development

Martin DeGhetto Chief Operations Officer

Mark Grindeland Senior Vice President and Chief Marketing Officer

Judi Hand President and General Manager of Revana and Chief Sales Officer of TeleTech

Mike Jossi Executive Vice President of Human Capital Delivery

Regina Paolillo Executive Vice President and Chief Financial Officer

Brian Shepherd Executive Vice President of TeleTech and President of Customer Strategy and Technology Service

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 centers began 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 spoken American-style English and idioms(the Philippines was a former US colony

and English is the language of instruction in schools), a constant stream of collegeeducated applicants, and a highly-skilled and an overall motivated workforce. In 2008, call centers supported a $12-billion BPO industry. By 2011, the Philippines surpassed India to 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

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-growth164921819.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: Convergys This 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 Ayalabacked BPO company. Services provided here are technical support, sales program

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 Support This 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

expand as a BPO center in the country. It mainly supports clients through direct marketing, automated voice response services and customer service. Epixtar If 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

d. Financial Statements

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 of whats 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 of the 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

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

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

f. Areas of consideration (SWOT)

Highly skilled, Englishspeaking workforce. Abundant manpower Cheaper workforce compare to counterpart countries. Lower attrition rates. Dedicated workforce aiming at making a long-term career in the field. Lower response time with efficient and effective service. Operational excellence Conducive business environment

The cost of telecom and network infrastructure Manpower shortage Local infrastructure Political opposition from developed countries

Strength

Weakness

Opportunity

Threat

Correct Weakness New and Improved Facility New EnterpiseWide Sale Database Under Development Sales Coaching

The anti-outsourcing legislation in the US state of New Jersey. Three more states in 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

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. Alternative Course of Action No. 2 The company should prioritize the Job satisfaction and security of the employee. i. Analysis of each ACA Alternative Course of Action No. 1 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

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. Alternative Course of Action No. 2 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 satisfaction turnover 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

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

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 satisfaction performance 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

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.