Taurus Telecommunications Corporation: A New Prepaid Phonecard

11 Pages Posted: 21 Oct 2008

See all articles by Robert L. Carraway

Robert L. Carraway

University of Virginia - Darden School of Business

Robert Jenkins

University of Virginia - Darden School of Business

Multiple version iconThere are 2 versions of this paper

Abstract

Students are introduced to a spreadsheet model for evaluating the potential profitability and relative merits of three retail product proposals and single-point estimates of numerous inputs. This case is effective in MBA courses covering new product introduction, cost analysis, risk analysis, and decision analysis. A small firm operating in the U.S. prepaid-phone-card industry considers offering a $5 telephone card with 60 minutes of service to Mexico. The sales group believes the card will be a market success. The brand manager, skeptical of the card's potential profitability, has been assigned the task of analyzing its costs. Three carriers have offered different pricing proposals for the new card.

Excerpt

UVA-QA-0659

Taurus Telecommunications Corporation:

A New Prepaid Phone card

Kyle Shilling loathed sales meetings. A brand manager at Taurus Telecommunications Corporation (TTC), Shilling felt certain the sales team's job description was simple: “to fail to sell perfectly viable products.” To him, these meetings were just forums for the sales department to make excuses for its lackluster results.

Worse, Peter Francona—TTC's chairman—actively participated in the meetings. An ex-beverage salesman, he seemed remarkably sensitive to the alleged plight of the salespeople. On joining the firm three months ago (straight out of college), Shilling had appreciated the opportunity to work closely with the CEO of such a large company. But, as of late, his interactions with upper management had become cumbersome.

Today's meeting was proceeding as he had expected. With growing frustration, Shilling listened to complaint after complaint about his new product line. Never known for his adherence to protocol, Shilling eventually lost his temper.

. . .

Keywords: Telecommunications prepaid phonecard industry, new product introduction, cost analysis, decision analysis, risk analysis, simulation

Suggested Citation

Carraway, Robert L. and Jenkins, Robert, Taurus Telecommunications Corporation: A New Prepaid Phonecard. Darden Case No. UVA-QA-0659, Available at SSRN: https://ssrn.com/abstract=912059

Robert L. Carraway (Contact Author)

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

HOME PAGE: http://www.darden.virginia.edu/faculty/carraway.htm

Robert Jenkins

University of Virginia - Darden School of Business

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

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