One Tel Corporation

1782 WordsMar 13, 20118 Pages
One.Tel is a telecommunications company that was launched in May 1995 by Jodee Rich and Brad Keeling. Initially, it was a reseller of Optus network before later on decided to enter the deregulated telecommunications industry. One.Tel believed such deregulation could bring them many advantages. With its major competitors like Telstra and Optus viewed as being bureaucratic, slow pace, and old-fashioned, One.Tel promoted flat adhocracy culture as opposed to bureaucratic. It also used the “dude” mascot, a young cartoon character to create a youth-oriented image as it targeted more to youngsters and average people. Since then, One.Tel grew rapidly as a low cost mobile phone service provider and succeeded to acquire many customers.…show more content…
In fact, neither Rich nor Keeling paid attention to this control and coordination process. This negligence has led to poor corporate governance structure, causing problems failed to be detected by the board of directors. And instead, made the problems became worse. Pass (2004) explained corporate governance is concerned with the duties and responsibilities of a company’s board of directors in managing the company and their relationship with the shareholders of the company and other stakeholder group. While corporate governance plays a crucial role for company sustainability, Rich and Keeling were not involving the shareholders directly to the operation of the company in a timely basis. Needless to talk about the involvement of the shareholders, even Rich and Keeling as the founder were not irresponsible enough to manage planning for new product, forecasting staffing needs and training, advertising, and the availability of products. All those important processes were ignored and caused the frustration of the customers. This was directly impact to the call center staffs who were pressurized by the complaints and anger of customers. As a result, the turnover in call center increased to over 100% per year. In its declining stage, Rich created power that is not used to be exist in his New Age philosophy and
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