Tata Global Internship - Capital allocation strategy for Tata Communications (Remote Internship)
Tata Global Internship
Company: Tata Strategy Management Group ( Remote Project)
Project Title: Capital allocation strategy for Tata Communications
Description: TSMG is an internal consulting firm working with various companies within the Tata group. In this project we are working on the Communications business. Tata Communications is a global telecommunication player focussing on core connectivity as well as new age businesses in platforms, applications & software. It has a revenue base of around $2.5B and has presence across the globe.
Globally, telcos face price erosion and commoditization in their core connectivity business and are moving up the stack to increase their revenues and profitability. Capital allocation becomes a critical aspect of the business to drive this strategy. As telcos, focus on their 3-5 year growth plan, they need to have a dedicated capital allocation strategy which ties to their overall strategic roadmap. How to allocate capital between different areas and how the individual projects are prioritized becomes critical to ensure the highest return on investment. This is the core problem we are solving.
Design a comprehensive capital allocation strategy for Tata Communication:
1. Align capital allocation strategy with the long term strategy of the firm.
2. Define the capital allocation buckets and methodology to allocate capital between them
3. Define approach to prioritize projects and allocate capital
4. Review historical investments in new businesses and ways to increase their success rate
The intern will have his/her separate workstream with clear deliverables. Activities that he/she will work on include:
1. Study long-term strategy and capital allocation benchmarks and best practices by leading global telcos.
2. Understand approach taken by global tech companies with respect to new businesses.
3. Framework for capital investments in new businesses