Question
QUESTION 2 Mestro Bhd is a pay-TV broadcaster that has been operating for many years. Two years ago, the company offered broadband and telephone services
QUESTION 2 Mestro Bhd is a pay-TV broadcaster that has been operating for many years. Two years ago, the company offered broadband and telephone services to its pay-TV customers to increase revenue and attract more customers. Customers were provided product bundling, where they had to take up all three services together, i.e., pay-TV, broadband, and telephone services. Those who subscribed to pay-TV alone were not able to subscribe to broadband and telephone services separately. All contracts were for a minimum of three months, and the pay- TV box was sold to the customer at the beginning of the agreement, while broadband and telephone equipment was rented. The company saw a steady profit increase in the first few years after introducing product bundling. However, the company saw its revenues and operating profits fall in the later years, leading to staff dissatisfaction and non-payment of staff bonuses. There are several reasons for the deterioration. Some of these factors include: 1. The company faced increased competition from other pay-TV broadcasters who offered similar product bundling services. This increased competition led to a decrease in the company's market share and customer base. 2. The global economic downturn affected the company's revenue and profits as customers cut back on spending and sought cheaper alternatives. 3. Some customers complained about the quality of the broadband and telephone services, leading to a decline in customer retention rates. 4. The company faced technical issues with its equipment and services, leading to downtime and loss of revenue.
Required: a. Suggest FOUR (4) ways the company could overcome the problem and improve its performance. (8 marks) b. Design a balanced scorecard that could be used by Maestro Bhd, with FOUR (4) indicators for each perspective and explain the benefit of the balanced scorecard for the company. (17 marks)
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