Global Communication Benchmarking
Bell is one of Canada’s largest communications companies (Bell Canada Enterprises, 2008) and they provide comprehensive and innovative suites of communication services to residential and business customers in Canada. Services include local, long distance and wireless phone services, high-speed and wireless Internet access, IP-broadband services, information and communications technology services (or value-added services) and direct-to-home satellite and VDSL television services.
Other Bell Canada Enterprise holdings include Telesat Canada, a pioneer and world leader in satellite operations and systems management, and an interest in CTV globemedia, Canada’s premier media company (Bell Canada Enterprises, 2008). For 127 years Bell Canada has served Canadians’ communication needs (Bell Canada Enterprises, 2008) and through this history as Canada’s leading communication organization, similar to Global Communications, they have had to deal with shareholder value. They have developed governance guidelines that assist in management decision making.
“The process of considering multiple scenarios raises important “what if” questions for decision makers and highlights the need for preparedness and contingency plans” (Bateman & Snell, 2004). Bell Canada Enterprises declares that they are committed to sound principles of corporate governance, which guide their decision making and behavior and that make Bell Canada Enterprises (2008) accountable to their shareholders. In order to address share value issue, their guiding principles and governance structure includes accountability to shareholders and increasing share value through these guidelines.
The board of governors and executive management strives to remain a leader in corporate governance and ethical business conduct by maintaining best practices, transparency and accountability to their stakeholders (Bell Canada Enterprises, 2008). This includes a commitment to the highest standards of corporate governance as BCE’s Board and management believe that good corporate governance practices tend to contribute to the creation and maintenance of shareholder value (Bell Canada Enterprises, 2008).
The Bell Canada Enterprises (2008) web site states that, on an ongoing basis, the Board reviews its structure, practices and composition and initiates changes to improve its effectiveness, from this, in 2006 the board adopted a Statement of corporate governance principles and guidelines (Bell Canada Enterprises, 2008). The principles and guidelines enhance and complement their mandate and provide a description of expectations and responsibilities. Bell Canada reports in 2007 fourth quarter results that they had the best performance in operating profitability since 2004 (Bell Canada Enterprises, 2008).
Bell Canada Enterprises (2008) reported in their 2007 Annual report, net earnings applicable to common shares for 2007 were $3,926 million, or $4. 88 per common share, which represents an increase over 2006 net earnings of $1,937 million, or $2. 25 per common share. Bell says that their reporting structure reflects how they manage the business and how they classify the operations for planning and measuring performance (Bell Canada Enterprises, 2008). Dell Inc. – Vanessa Everett
Dell is one of the world’s largest suppliers of personal computers and related products. It designs, develops, manufactures, markets, and services personal computers, servers, printers and other products (Datamonitor, 2008). Like Global Communications, Dell recognizes that there are opportunities for globalization for the growing computer and Internet demands in India. The Indian Internet market has grown seven fold since 2000 to reach about 50 million people using Internet representing less than about 5% of the total population (Datamonitor, 2008).
In line with the increasing demand, Dell and Global Communications can increase its focus on this key global market and hit one of their key end state goals by basing a ‘just in time’ operation in India. The growing demand for internet in India combined with the company’s increasing focus on this market could facilitate its growth and provide cost savings, similarly addressing the same issues as Global Communications. Paul-Henri Ferrand, Vice President of Sales (South Asia), Dell, stated that Dell was aware that the road ahead in India would be challenging.
“Delivering out of India is not going to be an easy thing,” he admitted, pointing to the infrastructural constraints. “The market is also different. It is divided into white boxes (grey markets) and branded ones” (Kannan ; Jagannathan, 2006). He also felt that consumers were highly demanding and looked for high quality at low prices (Kannan ; Jagannathan, 2006). By setting up a plant in India, Dell was confident they would satisfy consumers and Indian consumers would get computers and services from Dell at a competitive price.
Dell also stated that they did not want to manufacture low cost computers and would stick by the value proposition that its products would offer rather than the price points (Kannan ; Jagannathan, 2006). The upcoming plant will be equal to other operations located in various countries. Dell supported the `Just-in-time’ concept for India operations, which meant that a production base would enable the company to deliver products faster to its Indian customers. The decision of the “Just-in-time company” would likely open the gates for a wave of manufacturing, especially in the area of electronic items (Kannan & Jagannathan, 2006).
Global Communications can improve the predictability and the consequences of their actions, like Dell, thus leading to a more successful organization. “Uncertainty means that the manager has insufficient information to know the consequences of different actions” (Bateman & Snell, 2004). Dell seemed to have read the picture well as five million computers and service were sold annually in India. This number was projected to double in the next three to five years.
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