The New ConquistadorEssay Preview: The New ConquistadorReport this essayInternational Business“The new conquistador”Case SummaryA telecommunication company named Telefonica was founded in 1924 originated in Spain. Before European Union formation, this company obtained monopoly concession on telephone services in Spain, begin to nationalize in 1945, Government owned 41% of telefonicas shares. After European Union formation, state-sponsored telephone monopolies were abolished; telefónica faced threat of new entries from European rivals. Building strategy to win the markets by trimmed excess payrolls ruthlessly and expand capacity aggressively. However, telefonica lacked competitive advantages against European rivals so they invest in Latin American first before entering European markets. Challenges faced by this company towards their marketing strategies are critics made by minor investors towards telefonica: Denounced by the local skeptics as “conquistador capitalism” because telefonica laid off thousands of workers to trimmed excess payrolls, create chaotic disruptions of services led to numerous complaints and huge management fees must be paid by South Americans subsidiaries. Also the operational challenges became an obstacle in the industry; telefónica was forced to paid $8 million refunds due to poor services in Sao Paulo then forced to take a $300 million write off for currency losses after devaluation of Brazil. Lastly, the most influential problems are the increasing of competitive pressures due to government new policy in different area. In current Situation, telefonica having built strong bases in Spain and Latin America; In 2005, Telefónica turned its attentions back to Europe acquired Cesky Telecom,O2 and, purchased a minority in telecom Italia and invested minor shares in China Netcom in 2005 and 2008.
Discussion Questions1. SWOT ANALYSIS in 1986:STRENGTHSTelefonica has a strong position in Spain due to high demand for telephone services in Spain. Similar language applies in South American country.WEAKNESSTelefonica is lacking in terms of technology and managerial talent in EU market.OPPORTUNITIESTelefonica is looking on the privatization of telecommunication companies in South American countries.THREATSSpain is joining the EU on 1986 which create possibility of any major changes in the market.From the analysis above, it is similar with the managers, especially about the decision to expand their business to South American countries2. We would characterize the strategy as a great strategy because the manager of the company knew all too well the problems of the problems of state-owned telecommunications
2. In 1991, he worked with his brother and his own family. In 2003, the company was sold for a total of 30 Billion USD. They did not realize the difficulties the new owners were facing. Three years after their sale, they realized that they no longer could make a profit. They had to buy two-thirds of their assets. They had to create more staff to maintain their control group. Thereafter, management decided to go back to business as a company of public company. The company was acquired by the SON Corporation (SOC) for a total of 25 Billion USD and their business was transferred back to the same company, which will be closed in two years. SON was then bought by a private holding company(s) that were part of the group of privately held companies. The owner of the company was a company called “KOROS” which has some private investment in its name, at least for some time now, but as of the time of writing, it has a number of directors of its own company, which are a couple of other companies. It has a CEO named, but he used to be in control of two companies. A group of three directors of SON was also created that was controlled by his own company, which has shareholders, to be kept separate from each other. However, it was never fully owned by the director. According to the manager, even this management of SON took a long time before the company reached its peak and they never fully had complete control of its business. At the end of 1983, they also decided to buy their remaining shares by merging with the company called “ZB” which has a management position of 2.5 years, with the owners of the same company. They wanted to move their business into a private company with a lot of trust of shareholders, so that SON could maintain all their current plans and be able to continue its long-term growth strategy.However, this plan was not finalized at the first discussion, because for the most part, most of the decisions are carried out through managers. The management and shareholders of SON had to choose to stay with SON by moving their current business into new-owned company “ZB” in this new company instead. The company moved from a “sons business” in 2007 to its first public company of private companies in early 2011. The company has recently changed into a public company after taking into account the situation and will be sold by the SON Corporation for another total of 25 Billion USD. This company is owned jointly by its owners and is headed by a CEO with a good track record of working on many projects, especially on the financial side, but also managed by two of its most important directors, who will be the very first directors to take leadership positions there after the company’s formation. It is not expected that the CEO will return to be involved in the management of the company after the takeover. The board members of the company will then be the best qualified to bring about the changes that will be adopted by SON Corporation. SON Corporation must be able to maintain its current business and maintain its position in South America as well, as the CEO will be responsible for managing the company’s
2. In 1991, he worked with his brother and his own family. In 2003, the company was sold for a total of 30 Billion USD. They did not realize the difficulties the new owners were facing. Three years after their sale, they realized that they no longer could make a profit. They had to buy two-thirds of their assets. They had to create more staff to maintain their control group. Thereafter, management decided to go back to business as a company of public company. The company was acquired by the SON Corporation (SOC) for a total of 25 Billion USD and their business was transferred back to the same company, which will be closed in two years. SON was then bought by a private holding company(s) that were part of the group of privately held companies. The owner of the company was a company called “KOROS” which has some private investment in its name, at least for some time now, but as of the time of writing, it has a number of directors of its own company, which are a couple of other companies. It has a CEO named, but he used to be in control of two companies. A group of three directors of SON was also created that was controlled by his own company, which has shareholders, to be kept separate from each other. However, it was never fully owned by the director. According to the manager, even this management of SON took a long time before the company reached its peak and they never fully had complete control of its business. At the end of 1983, they also decided to buy their remaining shares by merging with the company called “ZB” which has a management position of 2.5 years, with the owners of the same company. They wanted to move their business into a private company with a lot of trust of shareholders, so that SON could maintain all their current plans and be able to continue its long-term growth strategy.However, this plan was not finalized at the first discussion, because for the most part, most of the decisions are carried out through managers. The management and shareholders of SON had to choose to stay with SON by moving their current business into new-owned company “ZB” in this new company instead. The company moved from a “sons business” in 2007 to its first public company of private companies in early 2011. The company has recently changed into a public company after taking into account the situation and will be sold by the SON Corporation for another total of 25 Billion USD. This company is owned jointly by its owners and is headed by a CEO with a good track record of working on many projects, especially on the financial side, but also managed by two of its most important directors, who will be the very first directors to take leadership positions there after the company’s formation. It is not expected that the CEO will return to be involved in the management of the company after the takeover. The board members of the company will then be the best qualified to bring about the changes that will be adopted by SON Corporation. SON Corporation must be able to maintain its current business and maintain its position in South America as well, as the CEO will be responsible for managing the company’s
2. In 1991, he worked with his brother and his own family. In 2003, the company was sold for a total of 30 Billion USD. They did not realize the difficulties the new owners were facing. Three years after their sale, they realized that they no longer could make a profit. They had to buy two-thirds of their assets. They had to create more staff to maintain their control group. Thereafter, management decided to go back to business as a company of public company. The company was acquired by the SON Corporation (SOC) for a total of 25 Billion USD and their business was transferred back to the same company, which will be closed in two years. SON was then bought by a private holding company(s) that were part of the group of privately held companies. The owner of the company was a company called “KOROS” which has some private investment in its name, at least for some time now, but as of the time of writing, it has a number of directors of its own company, which are a couple of other companies. It has a CEO named, but he used to be in control of two companies. A group of three directors of SON was also created that was controlled by his own company, which has shareholders, to be kept separate from each other. However, it was never fully owned by the director. According to the manager, even this management of SON took a long time before the company reached its peak and they never fully had complete control of its business. At the end of 1983, they also decided to buy their remaining shares by merging with the company called “ZB” which has a management position of 2.5 years, with the owners of the same company. They wanted to move their business into a private company with a lot of trust of shareholders, so that SON could maintain all their current plans and be able to continue its long-term growth strategy.However, this plan was not finalized at the first discussion, because for the most part, most of the decisions are carried out through managers. The management and shareholders of SON had to choose to stay with SON by moving their current business into new-owned company “ZB” in this new company instead. The company moved from a “sons business” in 2007 to its first public company of private companies in early 2011. The company has recently changed into a public company after taking into account the situation and will be sold by the SON Corporation for another total of 25 Billion USD. This company is owned jointly by its owners and is headed by a CEO with a good track record of working on many projects, especially on the financial side, but also managed by two of its most important directors, who will be the very first directors to take leadership positions there after the company’s formation. It is not expected that the CEO will return to be involved in the management of the company after the takeover. The board members of the company will then be the best qualified to bring about the changes that will be adopted by SON Corporation. SON Corporation must be able to maintain its current business and maintain its position in South America as well, as the CEO will be responsible for managing the company’s