StudentShare solutions
Triangle menu

Sykes Enterprises - Case Study Example

Not dowloaded yet

Extract of sample
Sykes Enterprises

The mission of Sykes is to provide its customers with competitive rates so that it can provide its customers with the lowest rates. Sykes' strategy is to compete with the industry leaders on cost. It has to thus ensure that its operations stay profitable for it to continue its operations. Its mission and objectives are aligned with the amount of competition in the market and allows Sykes to target the same companies its competitors are targeting however, offering the lowest rates in town. There is no need to review the mission and objectives, but the strategy needs re-working.
It is obvious that Sykes can take more than one action to improve its revenues and build a profitable business. The closure of its operations in India have resulted in consolidation of its costs in the United States. The competitors of Sykes have resorted to opening up call centers in South East Asian nations such as the Philippines to counter the high turnover costs and possible wage rises in Indian cities due to growing economies.
One of the strategic alternatives for Sykes could be to introduce a culture of hiring fresh graduates and providing them training and binding them with contracts to serve Sykes for a period of two years. This would result in a significant drop in turnover for a temporary period. Reduction in the hiring and firing costs will result in lower running costs that will allow Sykes to offer lower rates to its customers.

It would be wise for Sykes to continue its contracts with various towns and cities and gather benefits in taxation and other utilities offering employment in return. The reduction in taxes would result in a lower deductions in the revenues. The reduction would improve the profitability, though not necessarily the revenues. The current scenario asks for more involvement in the US rather than other countries. Significant cost reduction in Asian economies is no longer an onus and in countries that still offer lower operation rates, there is always the chance of high turnover costs and bad customer experiences - due to accents of offshore employees.

Recommended Strategy
Keeping into view the tough conditions of the economy, it would be wise for Sykes to combine the two strategies and work towards reducing its costs. Since Sykes mission and objective is reduction in costs to offer competitive rates in the industry, the two strategies could both be used to reduce the costs in order to provide highly competitive rates to corporate customers. This strategy would result in attraction of more corporate clients. However, Sykes should not close down any further call centers nor should it pursue an aggressive strategy within the US - current operations should be maintained until there is a significant rise in the profits.

Implementation
It would be wise for Sykes Enterprises to consider more large firms in the market other than SBC ...Show more

Summary

Sykes Enterprises' current performance, in spite of the economic problems, has been satisfactory. However, its financial performance has fallen short of the expectations of the industry speculations and thus there is a strong reason to re-consider the options available to Sykes to improve profitability and maintain relationships with the different states that have provided Sykes Enterprises with favorable taxation and land deals.
Author : spadberg
Sykes Enterprises essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the case study on your topic
"Sykes Enterprises"
with a personal 20% discount.
Grab the best paper

Related Essays

Performance Management at Vitality Health Enterprises, Inc
Hoffman identified that pitfalls in the current performance management system had discouraged the firm’s top performers and negatively influenced innovations. This paper will critically analyze the Vitality’s performance management system, and will provide potential recommendations to make this system effective for the firm’s business growth.
8 pages (2000 words) Case Study
Sykes Enterprises Case Study
The lack of revenue growth is a significant issue for Sykes and there are serious concerns over the number of call centers that Sykes has been closing down over the past year in various areas. Sykes' top management, especially the CEO, John Sykes' focus has been towards investors and the return on investment.
4 pages (1000 words) Case Study
The support of Small and Medium-sized Enterprises
The importance of support for SMEs is under the implicit assumption that SMEs are vital for the economic development and the health of the economy, and that support given to SMEs has a significant role in ensuring a healthy SME sector (Lauder et al., 1994).
24 pages (6000 words) Case Study
International Business. Multinational Enterprises
By this definition, IBM is a multinational enterprise. However, being a multinational enterprise and global are two different things. In IBM's case though, it is both a multinational enterprise and global. In fact, IBM is one of the only nine companies in the Fortune 500 companies to be considered global.
5 pages (1250 words) Case Study
Business Law
eral government is supported by the Constitution to enact any laws that would serve the purpose of protecting the interests of US citizens; in a similar vein, state governments, which act as independent plenary bodies, can also make laws as stipulated in the diverse state
2 pages (500 words) Case Study
Human resurses
In conditions where workers yearn and are legitimately authorized to have a mutual bargaining contract, human resource department usually acts as the organization’s
5 pages (1250 words) Case Study
Case brief
Harlequin’s creates values to their customers by estimating that there is more demand for these single-title women’s fiction novels which comprises of romantic series.
2 pages (500 words) Case Study
Foreign direct investment and its impact on the Thai economy : the role of financial development
The author should have included a discussion on the core objectives of financial reforms. More credits to private SMEs (small and medium enterprises) are a sign of effective financial intermediation (Rajan 65). On the
1 pages (250 words) Case Study
System Analysis and design (case study)
d on the synchronized data and information, the authors discussed that these trends will serve with beneficial results for the business enterprises as well as the government. In the current year, both the government and the business entities are assumed to face various
2 pages (500 words) Case Study
CMR Enterprise-Blackstone Partnership
In the year Blackstone approached CMR for a joint business venture, it was going to build forty homes in the next forty months and seventy additional once in the coming year. The partnership also increased chances of the oldest employees to improve their expertise since they were mainly in the residential business.
6 pages (1500 words) Case Study
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation