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3.Functional Level Strategies
“Celcom’s current marketing strategy to maintain customer-company relationship withpotential customer”Evaluation:Celcom sends personal sales representatives to market their products on potentialcustomers and create service concepts for their business or choice of order. Specifications arethen sent to suppliers. This enhances more customer loyalty and relationship with thecompany. Although some of the customers do go on credit, 20% of the annual sales areobtained from this form of marketing sales and this is designed to reach their objectives ofbeing the market leader and providing quality services for the customer and profit to thecompany in return. This is a potential advantage they have over their competitors as well.Celcom has been in the telecommunication business with the primary objective tokeep people connected and helping companies to market their goods and services as well askeeping them close to their customers. Besides formulating a market-orientated andcustomer-focused mission statement, Celcom has established and objective to achievecumulative growth in the next five years with a 50 per cent net profit for the newly launchedU-verse. To accomplish these objectives, Celcom has developed a benchmark for progress inthree different categories. Firstly, through using a market penetration pricing, the service willbe brought to the customers at affordable and reasonable prices. Secondly, by gaining a betterunderstanding of the need and satisfaction of the current customers, they will improve theservice to encourage re-orders. Finally, the service is to be able to utilize its currenttechnology and knowledge base, and research as well would be conduct on similar productswith an eye towards developing the services to a speciality advertising productOther than marketing strategy, Celcom should have proper planning on others areasuch as management, financial, and others. They cannot only focus on marketing strategybecause other areas also will affect the company performance. In term of management, theyneed to manage their resources properly such as staff’s welfare, quality of services, and so on.Through the effective marketing strategy will lead to the good financial performance. Financial Ratio
1)Return on shareholders’ equity= Net incomeTotal stockholder s'equity= RM1,203,302RM20,609,155= 0.06Return on equity (ROE) is the amount of net income returned as a percentage of shareholdersequity. Return on equity measures a corporation's profitability by revealing how much profit acompany generates with the money shareholders have invested. The return on shareholders’equity is 0.06. This means that every ringgit of shareholder’s equity earned about RM0.06this year. In other words, shareholders saw a 6% percent return on their investment.