Cases

Identifying the Business Options of Divestment for a Telecom Service Company based in Singapore

Challenge

The client, a leading telecom services company engaged in providing voice based services to telecom and broadcasting companies, was looking for options in divestment due to the following reasons:

  • The sudden reduction in order positions from a leading basic and mobile telephony operator resulted in severe cash flow constraint
  • The company had a small customer base and was constrained by technological infrastructure to support new needs of the prospects

Thus, the company requested UC to examine the issue of survival and therefore the options for divestment

Our Approach

To identify the business options for the client, UC adopted the following approach:

  • Mapped perceptions of the key stakeholder in the company, giving UC the context of the ambitions and expectations of the stakeholder
  • Conducted a quick strategic audit to understand the relation between the intent of the stakeholder and the actions of the management team
  • Based on the trends in the telecom services space and the current situation of the company, UC detailed out the strengths and constraints faced by the company and examined its key requirements
  • Laid a clear roadmap for divestment after evaluating the options that optimised the immediate cash flow requirements, long term survival possibilities, and the impact on stakeholders, customers and business partners

Impact

The client was made to understand the various business options of divestment. The company operationalised its actions and began working towards enhancing their attractiveness for divestment purposes.