This Case is about BUDGETING
PUBLICATION DATE: April 11, 2014 PRODUCT #: W14090-HCB-ENG
Sound fiscal management is the main component in the viability of any company endeavor, and capital investment decisions will be the foundation stone of the procedure. An organization can pursue an outside, inorganic strategy which uses borrowed funds to create acquisitions it expects will raise its company or an internal, or organic way of its funding alternatives.
This is the path taken by Bharti Airtel Limited, the leading telecommunications giant in India. Starting in 2010, it has borrowed heavily in international market to exert resources in procuring 3G licence in India, in Zain Africa as well as in the broadband wireless access division of Qualcomm Inc.
Event though, based on several causes – comprising the consequences of the global downfall on the industry; the highly robust Indian telecommunications market; restructuring and disorganization in firm’s top management; and regardless of innovation in the offering and substantiating novel amenities in India – the company experienced not the growth it had expected from its expansion strategy, but a constant decline in profits.Just how can the management recover the business standing as a leader in the telecommunications marketplace in India and internationally and turn this situation around?