Resources Base View of Singtel

RESOURCES BASE VIEW Financial resources: The 1998 financial report shows that SingTel, the largest telecommunications caller-out in Singapore, has a huge reserve (cash and bank deposits) of S$4.44 billion. This is the companys strength as not many companies take over such large reserves. The debt-to-equity ratio1 in the last 3 eld was also very low. In fact in 1997, it was dear 0.05 as opposed to in 1998 and 1999 when it was merely 0.06. With such a huge reserve and low debt-to-equity ratio, SingTel is thus capable to scram internal funds as well as brook high demand of debt and equity to finance any expansion. For instance, the 1999 yearbook report shows SingTel was able to seize opportunities and invest well in overseas ventures (S$2.3 billion in 55 investments) during the 1990s. This goes to show that the conclave of financial resources and its managerial capabilities had served as a source of combative advantage for the firm over its rivals. The ability to invest substantially at any point of time is indeed valuable, rare, strong to imitate and non-substitutable. As such, it is a core competence of SingTel. Although SingTel has remained the profitable, we must also be cognizant with the fact that the company faced roughneck challenges in the recent years.

Based on the financial performance of 1996-1999, the throw on shareholders funds and total assets as well as the operating return on turnover and net hardened assets had actually declined. This indicates that the net return of the firm (or shareholders investments) and the effectiveness of SingTel in employing/ utilizing its inventory and total assets are no longer as good. The inability to effectively use its equity/assets is a mathematical weakness of SingTel. Organizational Resources: In order to ensure incessant growth and success, SingTels collective structure was reorganized in adjoin 1999 so as to cater to greater levels of diversification. The SingTels corporate structure... If you want to get a full essay, order it on our website: Orderessay

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