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Jinan Broadcasting Corporation

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Ji’nan Broadcasting Corporation
What are the key issues facing Zhou Jianglin? The DVP is scheduled for launch in January 2002 which was 6 months from the initiation. Based on inputs from Chin(Postel) a project of DVP’s magnitude would require a lead time of 8-9 months. An alternative would be to source equipment from multiple suppliers. Sourcing the equipment from multiple suppliers would Type approval which would add uncertainty to the project and the approval itself would take 3 months. If multiple suppliers are involved clear demarcation points are required to avoid potential conflict of interest. There were internal objections from other division MDs. MD of Radio and Television Programming was of the opinion data & voice was the business of China Post & Telecom. Another MD, of the Radio & Television Broadcasting was of the opinion Alcatel equipment was more robust than Nortel’s. Budget was a key constraint as RMB 110 million was sanctioned but the initial estimates suggested it might cross the same. JBC needed in-house expertise to remotely monitor the network which was lacking. Zhou was not sure if reselling of long distance capacity was permitted by the Chinese government.

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Trace the history of decisions made in the data and voice project. 1) What were the decisions made? What were their implications? Decisions made and their implications are as follows - To launch the DVP by January 2002 – This decision was made without keeping in mind the time required to implement a project of this magnitude. - Budget allotted to the project RMB 110 million – Preliminary estimates indicate higher budgetary requirement. The scale of initial deployment maybe trimmed if the budget is rigid and cannot be increased. - Decision to go ahead with the DVP without clearing potential conflict of interest - Unclear whether Data & Voice was within JBC’s portfolio or

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