Dizz Company Business Analysis

Dizz operates a highly profitable, cash generating business, which can be reasonably recognized from continual growth of customer numbers and profits. However, this is also a risky business, particularly in the current financial climate.

Considering the internal and external pressure, Dizz had better amend its long-term strategy, reallocating the company’s total resources such as human capital, natural resources, tangible and intangible resources in three divisions, that is, focus on more promising division to obtain the maximum profit in going concern. Because European market has already reached the saturation level and is under fierce competition. While in Asian and African market, especially in Asian division, it contains huge potential to attracting new costumers and increasing ARPU in the long run. It seems that in the future Asia and Africa division will have a higher return on investment. What’s more, Dizz should combine the long range plan and short-term goals together.

Apart from this, due to financial crisis, Dizz is under pressure to cut operating cost and boost revenues to maximize profits. There are four proposals to cut costs and two proposals to boost revenue.

When considering cutting operating cost, it is recommended to cancel certain sponsorship contracts in Europe and limit contribution made to various activities of community support. As for cancelling certain sponsorship, the reasons are Europe is a mature market, reducing market contribution is acceptable; on the other hand, Dizz is proposed to change the direction to put more attention to Asia and Africa. And for limiting contribution, the backing points are Economic recession and change of market direction may request this limitation. One of the hospitals has requested more employees, but it will need other related cost such as training cost.

Because of the requirement of high quality and technology environment, it is unwise to cut training and development cost

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