| Abstract | Atos Origin Thailand (AOTH) was established in 1998 and has staff strength of around 240. Atos Origin Thailand services clients in all major industry sectors, but has particular local expertise in several markets i.e. Financial Services – a leading card payments solution provider to the Thai banks since 1998, Consumer Packaged Goods (CPG) / Retail, Discrete Manufacturing, Process Industries, Telecoms and Public Sector. Atos Origin Thailand is also a silver partner of Cisco, providing expertise relating to network design, implementation, security, and performance management to many organizations in Thailand. The overall service offerings are Consulting, System Integration and Managed Operation.
Last year (2007), the company, Atos Origin (Thailand), faced a loss from operation for the first time since it established. Even though the revenue grew 14% from 2006, the company showed net loss of 148 Million Baht which is -25% of revenue. This is very important because it also impacted the cash flow causing lack of cash to pay suppliers and employees’ salary. In order to sustain the business in Thailand, the company needs to cover the loss in 2007 and make a profit in 2008. In 2008, the global direction of the company is to keep only profitable businesses so it is critical for the company to find a way to recover in 2008 and to find long term strategies to sustain the business.
The purpose of this study is to analyze the root causes of its operating loss in 2007 and develop short term and long term strategies to become profitable in 2008 and the future. The strategies must be implementable which means aligning to corporate policy and mission of the company. The methodologies to analyze the root causes include annual financial report, team financial performance, management interview and questionnaires. The results found that the main causes of the operating loss came from bad estimation and project management led to over budget.
The study proposed the short term and long term solutions based on timeframe and resource needs. Short term solutions aim to reduce cost, improve cash flow and improve project management. In 2008, the company must be healthy and sustainable. The company short term strategy is to stay healthy, get lean and not target on growing. While Long term solutions aim to have sustainable growth and healthy profit. From the finding and root cause analysis, there will be a lot to improve. The internal processes and policies will need to be tightened. Long term solutions include re-organization, improve internal processes and increase customer base. |