PDS continuing to report operating losses due to some issues like delay of Equipment Deliveries, personnel commended higher salary than expected , Difficulties to find customers , Storage space which is used for keeping the equipment was high , high lease and equipment purchase cost , Limitation on service providing cost for parent company and charges which is given to the corporate service by the prestige Telephone Company .
After analyzing the exhibits and the relation between the prestige telephone company and prestige data services I would recommend Mr.
Rowe that Mr. Rowe should give some privilege to PDS in case of rent charges and the PTS should look over the facilities which provided by corporate services . PTC and PDS should manage their sales department together so it become easy for them to provide service to the clients in case of data maintaining, accounting so the individual cost will be limited.
Secondly I would recommend Mr. Rowe regarding service providing hours as after analyzing the total revenue and total hours in report of first quarter there is a huge gap of hours in between these two’s If they plan to work around 550-600 hours in different shifts and maintenance of the computer is done on non-working days and utilize remaining hours for service providing they can increase their revenue hours per month.
Regarding improved reporting / accounting format I would be preferring the graphical representation for revenue hours as it is easy to study graphically how many hours been actually utilize for intra company and for commercial purposes and on the other hand the financial report will be presented in percentage format as it will become easy to calculate some important figures and make some plan action upon that.
As per the first quarter report on exhibit 1 the PDS showing some positive increment in their revenue hours as we compare month Jan and March this proves the company is efficient to provide good service as its bit difficult to get such a result at initial stages. So after seen such a improvement the company should get some more period of time to improve his performance and meet the revenue hours with total hours .
And as the PDS is the parent company they should give some costing privilege in below cases they may overcome some losses in which they are invested in different sections like rent of the storage space and salary issues to the personnel and at other hand as the PDS is not in a public sector so they can increase their service charges and make some profit through it by providing efficient service to the clients .