Question

Read the case study - "Do you really think we are so stupid?" A letter to the CEO of Deutsche Telekom (A)"

1. What are the major challenges at Deutsche Telekom and what is critical for its survival and future success?
2. What do the think the customers, general public, investors, and employees thought of the leaked letter?
3. Put yourselves in the shoes of a middle manager who is witnessing employees discussing the letter during the hours that they should be working. How would you handle that?

Answer 1

Answer1:

Major challenges

· Too several staff

· Employees being paid a great deal compared to different places

· Performances don't seem to be that sensible

· Cost is 25% of sales compared to the trade average of 18-12%

· magnified management however a reduced effectiveness

· Their profit fell by seven-membered

· The union (want to guard employee) + government at odd with folks at the non-public Blackstone cluster (private equity firm that owns thirty seconds of the share: they need to extend stock costs as a result of they bought it in 2006)

What’s essential for its survival and future success

· Decrease the budget items (basically the price of the employees)

-Evaluate employees’ performance

-The solution within the article: They let the workers work longer hours and obtain paid less,   and provides higher service

· Retain customers (because they lost too several customers)

· Better service to customers

· React to the letter

Answer2:

· Customers can feel involved and feel that it’s unreliable

· Analysts (assume stock analyst) can say that the long run isn't bright, therefore don’t obtain stocks (downgrade the rating of the company)

· General public can get a negative image of the corporate and lose religion

· Employees square measure happy that they’re finally detected

Answer3

· Would interact within the discussions, however informally solely, therefore we will deliver the opinion to the highest level

-Ask regarding their opinion toward the letter

-Suggestions for the corporate

-See if they’re simply being emotional

· Or let the workers provide anonymous opinion via different channels

-To scale back employees’ stress

-Get potential concepts from negative comments

· Share your own concepts on a way to fix the matter with the workers

· Be the arranger between the highest level and therefore the staff