Streamlining of centralization of operations for a multinational telecommunications company in the Latin American market.

Abstract

The purpose of this thesis is to provide an analysis to help future companies in the process of implementing the strategy of centralizing operations to get advantages regarding processes, performance, costs savings and growth abroad when becoming a multinational company in the Latin American market.

This study was based on a multinational company from the telecommunication industry, where the author was doing her internship, working for the Supply Chain and Logistics department remotely performing activities. It is intended to answer the questions related to how multinational companies use the centralization of operations as a feasible strategy. Additionally, to figure out which kind of activities are centralized, enlist benefits, and how is this beneficial in the Latin American market telecommunications industry.

The analysis was based on qualitative research and carried out through a series of questions that were asked during individual interviews. Several details of the most relevant topics were discussed between the Team leader and the Supervisor of the Supply Chain and Logistics department and a specialist in the study area.

The results showed several advantages regarding agilization of processes, optimization of resources and cost-saving. The company was able to have streamlining outcomes that help the readers understand why is this strategy feasible. Additionally, a subcontracting model strategy was explained to complement the multinational company model regarding the management of massive work in the Latin American region. The partnership was created with Phone Carrier companies to enter the market with better acceptability criteria.

In conclusion, multinational companies centralize operations that can be performed remotely to obtain benefits and concentrate the expertise on a defined location for better solution providing. Further studies will have a better picture of the line that telecommunication companies follow when expanding to new markets.