Company Overview of Teletech Corporation

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Teletech Corporation 2005 When a corporate raider infiltrated Teletech Corporation by acquiring a 10% stake in the firm, management was forced to contemplate whether their evaluative models and tools appropriately matched (pg. 217). With a mission statement professing a commitment to pursue premium returns, the objective focus on value maximization is seemingly simple (pg. 220). The top down management of resources and project undertakings may appear prima facie fitted with a single weighted average cost of capital hurdle rate, however the demands of the corporate raider implies a contrary view. If the firm were efficiently allocating capital to the investments that deliver the maximum net present value of discounted cash flows, calculated using the firm's overall hurdle rate of 9.3%, then it would intuitively appear as the most effective and efficient allocation of resources (pg. 218). The firm's telecommunications business is benefitting from their strategic investments over the previous 10 years. The results of the 1.5-2 billion dollar annual investment delivered continued growth of its customer base by an average of 3%, from 2000-2004, in the midst of new competitors entering their market (pg. 218-219). Evidenced by the highest customer satisfaction ratings in their market, Teletech management delivers a superior product and remains strategically focused on retaining its market leader positioning (pg. 219). With an eye to the evolving market of communication

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