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Case Prompt
Call Center Location Decision
Our client, an international company, is in the process of establishing a call centre in South Africa. They are contemplating five different cities for this venture. Your task is to provide advice on which city our client should select for their call centre operation.
Exhibits
Exhibit 1: Details of Call Services
|
Type of Call |
Time per Call (minutes) |
Number of Calls per Hour |
|
Service Calls |
10 |
600 |
|
Retail Calls |
6 |
300 |
Exhibit 2: Survey of Workers in 5 Different Cities
|
City |
Population |
% Surveyed Willing to Work for Listed Wage/Hour |
|
Baviaans |
20,000 |
$0.5: 200, $1: 400, $1.5: 1000 |
|
Cape Agulhas |
30,000 |
$0.5: 150, $1: 300, $1.5: 450 |
|
Ikwezi |
10,000 |
$0.5: 100, $1: 200, $1.5: 400 |
|
Hantam |
18,000 |
$0.5: 360, $1: 720, $1.5: 1080 |
|
Laingsburg |
8,000 |
$0.5: 240, $1: 320, $1.5: 400 |
Exhibit 3: Cable/Internet Users and Suppliers in the 5 Cities
|
City |
Cable/Internet Users |
Number of Competitors |
|
Baviaans |
7,200 |
1 |
|
Cape Agulhas |
6,500 |
2 |
|
Ikwezi |
5,800 |
2 |
|
Hantam |
6,000 |
3 |
|
Laingsburg |
8,300 |
1 |
Background
Our client, a prominent cable/internet supplier, is venturing into setting up a call center in South Africa. The call center will be responsible for providing general product support and promoting products to a global customer base. They are evaluating five cities for this purpose.
Analysis
- Factors to Consider
Identify and discuss the various factors our client should consider while selecting the call center location. - Minimum Employee Requirement
Calculate the minimum number of employees needed at the call center based on service and retail call requirements. - Employee Availability
Assess the availability of employees willing to work at the specified wages in different cities using data from Exhibit 2. - Job Offer Rejections
Discuss potential reasons, other than wage, that might lead individuals to reject a job offer from our client. - Integration with Cable/Internet Services
Examine the best city option considering the client's interest in setting up cable/internet services. Utilize data from Exhibit 3.
Final Analysis
I recommend that our client establish a call center and cable/internet services in the city of Baviaans. Despite marginally lower labor costs in Hantam, Baviaans promises significantly higher revenues due to a larger customer base. Potential risks include competitor reactions and new market entrants. Our client should focus on attracting customers through promotions during the initial stages of market entry and work on building a solid customer base.
Frequently asked questions
What factors should be considered when choosing a call center location in South Africa?
When selecting a call center location, companies must consider labor availability, wage rates, internet infrastructure, competition, local population, and alignment with existing services. These factors ensure cost efficiency, reliable operations, and market synergy, maximizing the investment’s long-term success.
How many employees are needed for a call center handling service and retail calls?
Based on the call durations, the center needs enough agents to handle 600 service calls at 10 minutes each and 300 retail calls at 6 minutes each per hour. This requires at least 180 employees to meet demand efficiently without overburdening staff.
How can companies assess employee availability for call centers?
Companies should analyze surveys on local willingness to work for certain wages, population size, and workforce skills. This ensures enough qualified workers are available at sustainable wage levels, avoiding understaffing and ensuring smooth call center operations.
Why might candidates reject call center jobs even if wages are fair?
Aside from pay, people may decline due to long shifts, high stress, poor working conditions, lack of growth opportunities, or inconvenient locations. Addressing these concerns improves acceptance rates and helps attract and retain quality employees.
Why is Baviaans a good city for setting up a call center and internet service?
Baviaans offers a large pool of potential employees at fair wages, a strong base of internet users, and minimal local competition. This balance of labor, customer base, and infrastructure makes it ideal for launching integrated call center and cable/internet services.
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