Essay On Debriefing Report Of Vol P2vol.Biz, Inc

Type of paper: Essay

Topic: Business, Company, Internet, Market, Services, Customers, Network, Sales

Pages: 3

Words: 825

Published: 2020/12/11

(Roll No), Inc.Evaluating the Next Steps for a VoIP Supplier

Introduction and background

It has been reported that “VoIP2.Biz supplier” was established in 2005 (October), and this is the company that is based in Indianapolis initially. Many external investors like Lawrence Milkowski and Harley Services Corporation (HSC) has its ownership rights. This is noteworthy point that VoIP2.Biz is superb market brand that delivers different technological solutions in the market with a great output for comparatively average size customers of related group.
It has been witnessed that VoIP2.Biz sold out such equipment and systems that provided the financial and economic benefits of mixing the voice and data network jointly into a set-up comprised the call initiation and termination services as an alternative to conventional phone services and utilized a unique but excellent processing stand. At the end of 2006 (June), after implementation of the phase one plan, VoIP2. Biz sold its systems to at least 22 customers merely with a loss of $66,000 . Milkowski had planned his suggestions and recommendations for the future activities of the company to be presented at the meeting of the board of directors on 27th June, 2006. It has been expected that board of directors have high expectation to get the company's cash flow to a break-even point in the coming year.
VoIP2. Biz Future challenges and issues.
It has been observed that after implementation of phase one plan, VoIP2. Biz had a negative cash flow with a loss of nearly $66, 000.Likewise; company had much slower development with barely 22 customers. Additionally, it was covering a small portion of the market in Indianapolis with merely 100 lines or even less than it, also, did not spread out in Indian market. Furthermore, it was established fact that VoIP2.Biz was facing difficulties in getting local staff and employees with the opposite know-how and abilities. In addition to this, company has a severe difficulty of low close rate since the sales life-cycle devour more and more time
It has also been reported that there are large numbers of communication solutions brands in the business market, comprise mainly different kind of instruments and solutions providers, in- office switch over instruments, simple local switch over instruments, internet services and solution provider, interconnected and interrelated swap over and classified branch exchange ( private unit ) value added possessions and data link services sharing and related network services business provider .This is noteworthy that these market players are offering the same solution and services as VoIP.Biz solution.

Opportunity for VoIP.Biz

It is believed that businesses can merge voice and internet connection into a single firm network that will decrease the monthly expenditures for the trade and businesses. Additionally, the internet will be used to integrate business's remote locations into a single network that will definitely decrease the voice communication charges. Also, this integration will bring advance features that are not presently available to most of the average size business customers. Similarly, many of proprietary PBX manufacturers are re-shaping their systems and technology to comprise IP Technology but with limited features offered to their customers without suitable cost reduction. In addition to this , solutions offer their customers a superb single point of service and responsibility for the complete telecommunications structure that not only include phone number, phone, local network, PBX, switch/router, wide area network, internet, long distance but also it comprise P-S-T-N .Likewise, finished the installation of the network infrastructure to hold up implementing the VoIP solutions with high-class procedure that exceeded 98 percent. Additionally, it has protected the sales channel agreement with four approved and identified distributors.

Phase Two Plan

It has been witnessed that Milkowski, the CEO, has prepared a phase two plans that he thought will put in the revenue generation position with superb growth rate. For the perfect execution of the plan, it was divided into two segments; the primary part will take one year for its completion. This plan comprises “development of sales and marketing activities in Indianapolis to attain two new system sales in a week, extension of sales and promotion services in regions like Indiana further than Indianapolis, targeting definite prospect areas like large operations along with center development and extension, commencement of sales and operations in 5 more markets and development of contract and legal issues and strategy for comparatively smaller business markets" . In addition to this, the other part of the project will begin after the first component during which period company will penetrate further twelve business markets potentially .

Options and choices

It has been believed by Milkowski that if the board decided to continue the present plan, the estimated income will exceed nearly $60 million and about $20 million gross margin by the end of year 2009 as per reports and studies .Additionally, the plan will resolve the dilemma of low close rate and will systematize the sales hold up and operations. Moreover, The will access more geographic business market by a joint venture with knowledgeable solution providers .For this necessarily, the board of directors requires to financing this plan with at least $3 million investment. Also, closing down the company is another alternative that will cause main disruptions for the existing 22 customers and may lead to financial loss to break down the present contracts with them. Similarly, the employees will lose their jobs, and the directors will lose their earlier investment and money. Likewise, another choice is selling to company; with this choice no one will be interested to invest money in a losing company. Finally, slowing down rate of growth alternative will lead to extension of the first plan which shows an enhance in the revenue from $88,000 to $150,000 and this can drive the company to reach the break-even and later on it may lead to a level of low profit .Also, asking for a 90 day extension to handle the problem of cash flow will be a sensible option since a new-fangled contact for large call center will be signed which will make the company to reach the break-even more rapidly. Finally, the last option in hand is reducing the expenses by reducing the operational expenses but this cutback may lead to reduced worth of services to the customers. Similarly, in order to make the project a cost viable matter, the company can decrease perks and benefits for employees which may impact the employees' performance and devotion to the organization


Brooks, R. (2010). My Finance lab. Pearson.
Lawrence, M. P. (2009). CISSP For Dummies. John Wiley & Sons.

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