management straregies ofufone

8/6/2019 management straregies ofufone

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BACKGROUND OF CELLULAR

INDUSTRY IN PAKISTAN

Today information has become the most vibrant force and factor of production in

the new economy. Cellular Mobile segment of the industry is considered an engine

of growth for telecom sector in Pakistan. Initially, the telecom industry was

monopoly. The world started to see an initiation of reform in this sector from early

eighties of previous century. In Pakistan the liberalization of telecom sector

started in early 1990s. Pakistans Cellular Sector has registered tremendous

growth during the last 7 years. Various development stages, during which an

industry evolves, as in a normal industry business cycle, have either been skipped

or bridged quickly for Pakistan telecom industry. This growth, as a whole, is

heavily tilted towards mobile, since investments made in the segment are far

higher than any other segment of the industry. Basic telephony and value added

services have their own specified markets and the industry life cycle is taking a

comparatively steady pace. Following is there brief history,

1990-1992With the deregulation of telecommunications sector in Pakistan in early 90s,

Ministry of Communications awarded two licenses to begin cellular operationsbased on AMPS technology, namely

y PAKTEL, and

y INSTAPHONE

INSTAPHONE initiated its services in 1990, while

PAKTELstarted its operations in 1992.

PAKTELandINSTAPHONE were formed as joint venture between foreign and localpartners. Both the companies were using AMPS technology.


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1993-1995 A year later, a third license was awarded to the SAIF GROUP that led to the

inception ofMOBILINKthat started its services in 1994. It was the first company

that introduced GSM technology in Pakistan.

In 1995, the Cellular Industry suffered a major blow with the closure of operations

in Karachi, the largest market, but the closure sanction was lifted after almost two

years.

Telecom Re-organization Act of 1996

The real defining moment was the passage of Telecom Re-organization Act of

1996, which established the Pakistan Telecom Authority (PTA) as independent

regulator of the sector and set timeframe for ending the PTCL monopoly. This act

paved the path for liberalization of the telecom sector in line with the global trends

and Pakistans commitment to the international treaties like WTO.

2001

On January 19th, 2001, PTCL entered the cellular market with its own operator

based on GSM technology under the brand name ofUFONE.

2004-2005

In April 2004 Pakistan Telecommunication authority (PTA) awarded two new

licenses under an open auction process for a fee of $291 million. These were

purchased by two companies namely,

y WARID TELECOM, and

y TELENOR.

TELENORstarted its operations on March 15, 2005.

AL-WARID started its operations on 23rd May 2005.


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2006-2007

In 2006 this has been revealed in the results of the first Telecom Regulatory

Environment (TRE) Survey conducted in five Asian countries including Pakistan by

Sri Lanka based independent telecom research organization LIRNEasia, that

PAKISTANHASABETTERREGULATORYENVIRONMENTFOR

MOBILETELECOMMUNICATIONTHAN

INDIA,INDONESIA,SRILANKAANDTHEPHILIPPINES.`

Report states that:

The TOTAL TELEDENSITYreached 43.44 % in May 2007, which was just

12% in June 2005.

On average approximately2.3 MILLIONSUBSCRIBERS are being added

on cellular mobile networks each month in Pakistan, which is an

exemplary growth in relation to the population of any country in Asian

region.

MOBILE PENETRATION reached 37.6% at the end of April 2007.

TOTAL MOBILE SUBSCRIBERS at the end of May 2007 crossed the 60.8

million.

DURING the first three quarters of 2006-07, telecom sector attractedUS$

1.4 BILLIONFDI.


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2007-2008

Cellular mobile operators continued their aggressive marketing and networkexpansion, competition among operators became more intensive with aggressive

entry ofCMPak, a China Mobile subsidiary in Pakistan. CMPak with their brand, ZONG

TELENOR

Have added significant subscribers very rapidly. Severalcellular operators offered

various Value Added Services at lower rates to attract more customers.

CELLULAR MOBILE TELEDENSITYjumped from 39% in 2006-07 to

54.7% in 2007- 08,

COLLECTIVE REVENUES of the sector have grew by 35% in the year

2007-08 against a record growth of 48% in the year 2006-07,

CELLULAR SUBSCRIBERS grew by about 40% in the year 2007-08, as

against 82% in 2006 -07 and more than 100% during 2005-06;Total

subscribers crossed 88 million at the end of 2007-08.

Cellular Mobile sector continued to add 2.1 million subscribers per

month during the year 2007-08.

The sector exhibited slow growth than yearbefore;main reason for its

slow growth could be the rising inflation which affects the affordability,

higher taxes, saturation of the urban markets and low tariffs.


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2008-2009According to the Annual Report for year 2008-09 issued by

Pakistan Telecommunication Authority (PTA),telecom sector continued to grow

positively in terms of subscription, revenues and teledensity as follows,

Telecom sector of Pakistan has shown 20% growth in its revenues by

generating Rs.327.8 billion total revenues in fiscal year 2008-09.

The Government collected Rs.112 billion in the form of taxes from the sector.

TELEDENSITY OF PAKISTAN stood at 62% showing a growth rate of 5.4%

hence sustaining positive growth trends in the sector.

It managed to attract US$ 815 million Foreign Direct Investment (FDI) in

2008-09. However, as most of the operators are foreign-based, the

pessimistic outlook of global economy compelled the telecom operators to

curtail the infrastructure expansion plans, still total investments in the

sector stood at US$ 1.7 billion.

During the year (i.e.2008-09) the sector contributed a total of Rs. 112 billion

to national exchequer in the form of taxes.

Telecom imports also grew by 20% and reached US$ 1.6 billion.

The mobile penetration reached 58.2%

Total mobile subscribers reached 94.3 million with more than 90% of the

country having access to mobile services.


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The trend in subscription remained tilted

towards prepaid subscription with 98%

prepaid subscriptions whereas only 2%

subscribers are postpaid.

Although the financial strength of mobile segment remained invariable still

the cellular revenues grew by 16% and stood at Rs. 212 billion at the end of

2008-09.

The mobile investments dropped by 48% and reached US$ 1.2 billion in the

reported year.

CURRENT SITUATION

Currently, there is tough competition in the cellular industry and all the

companies are trying hard to attract, retain and motivate their employees by

offering them attractive pay packages. With the current global and local political

and financial situation, the telecom sector had to face tough challenges in the

current year. Due to the reforms in the sector carried out by the Government and

effective regulatory interventions of PTA signs of recovery can be seen and it is

expected that during the ongoing financial year the telecom sector would perform

well and stand up to the expectations of all.


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SUBSCRIBERS GROWTH

IN PAKISTAN

As for net additions in the subscriber base, the sector added more than 6 millionSubscribers during 2008-09. However, the leading mobile operator, Mobilink faceda Set back and lost almost 3 million subscribers in 2008-09.

During the year 2009, TELENOR added about 2.8 million subscribers as

compared to 7.4 million in 2008;

MOBILINKsubscribers decrease by 2.9 million during the same period.

WARIDtelecom succeeded to add other 2.4million subscribers in year2009.

UFONE added only 1.9million subscribers in 2009 as compared to its

addition of 4.1 million in previous year1.

CMPAK entered the cellular market with aggressive marketing and

infrastructure roll out. Its growth was negative previous year but this year

it added 2.2 million subscribers in2009.

Figure 1


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INTRODUCTION

Ufone a company very highly spoken of these days.

UFONE (OFFICIAL NAME: PAK TELECOM MOBILE LIMITED (PTML)

A 100% owned subsidiary of PTCL was established to operate cellular GSM 900

services. The company commenced its operations, under the brand name of Ufone,

from Islamabad on January 29, 2001. It was first to launch the GPRS services and

Multi-media Messaging Service (MMS) and prepaid roaming in Pakistan. This

customer focus and best offering has allowed Ufone to build a subscriber base of

over 20 million in less than a decade.

Ufone has network coverage in 10,000 locations and across all major

highways of Pakistan. Ufone currently caters for International Roaming to more

than 260 live operators in more than 150 countries. Ufone also offers Pakistans

largest GPRS & BlackBerry Roaming coverage available with more than 150 Live

Operators across 105 countries. More recently, Ufone has become a focused and

intensive leader in VAS, constantly introducing innovative services, which have

been the first of their kind in the Pakistani cellular industry.


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Ufone owes its success to its employees believing that

providing employees with job satisfaction motivate them to

work hard and provide better results.

Proper planning is Ufones strongest point; all the products that they have

launched so far are backed by wise strategies with proper market research andmassive advertisement campaigns. Decisions are taken at top level with some

participation from the lower levels showing that they do comprehend the worth of

Group decision-making. However goal setting is a procedure dedicated to only the

top management.

As the world of telecommunications advances, Ufone promises its customers to stayahead, developing and evolving, to go beyond their expectations, because at Ufone,

Its all about U.


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HISTORY OF UFONE

UFONE (OFFICIAL NAME: PAK TELECOM MOBILE LIMITED (PTML) is a 100%

owned subsidiary of PTCL established to operate cellular telephony. The company

commenced its operations, under the brand name of Ufone, from Islamabad on

January 29, 2001.

2001-2004

After its opening, initially they started their service in major cities likeRawalpindi, Islamabad, Karachi and Lahore and on major highways.

Later the service expanded to other major cities like Peshawar, Quetta

and different towns.

Ufone invested around $ 65 million to setup its modern technical

infrastructure to provide high quality crystal clear voice and fast data

transmission.

Ufone targeted the MIDDLE CLASS , by introducing low rates and

different packages with Urdu names like JAZBA etc to attracted lower

and middle class people. Ufone has expanded its customer support in a very organized manner

with a planned network of dealers, outlets for people convenient. Ufone

is committed to care for its customers even after they have acquired a

new connection.

Ufone startedGPRS through which users can connect themselves to the

global village via Internet, also introduced multimedia messaging

services and worldwide SMS at flat rates.

Not only SMS but also provides UFONE INFO SERVICE through which user

can get latest information about news, sports, religion, horoscope, stock

exchange etc even live sports updates. THE TARIFF PACKAGES had been designed keeping in mind the

requirements of every segment of the society may that be a housewife, a

taxi driver, a trader or a student.


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PRIVATIZATION OF UFONE

In April 2006, EMIRATES TELECOMMUNICATION CORPORATION , which is

commonly known as ETISALAT, has assumed management control of PakistanTelecommunication Corporation Ltd part of the $2.6bn deal to buy a 26% stake

in PTCL. The successful privatization of PTCL, and consequently Ufone, is hailed as

ushering in a new era for telecommunications in Pakistan.

2005 -2006

During the year July 2005 to June 2006, Ufone continued on the path to success.

The Company further expanded its coverage and has added new cities and

highways. Ufone has network coverage in more than 750 cities, towns and acrossall major highways of the country.

Ufone placed at 2nd number with COMPANY REVENUES IN MILLIONS

The total revenue of 16098 million rupees.

During the year Ufone successfully

completed the network expansion ofPHASE IV in existing as well as in new

cities and towns, which amounted to more

than USDollar 170 million. As a result the

asset base of the Company has increased

from Rs. 20 billion to Rs. 27 billion.

During the year Ufone adopted the policy of simplified tariffs with no hidden

charges, which resulted in positive impacts on the usage trends of

subscribers as well as total subscriber base, which has increased from 2,579

k in June 2005 to 7,487 k in June 2006.

The company had also been awarded a new License for providing cellular

services in Azad Jammu & Kashmir and Northern Areas


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Ufone catered for International Roaming to

more than 200 live operators across 121

countries and introduced International

roaming facility for Prepaid subscribers in Saudi Arabia, United Kingdom,

United Arab Emirates, Singapore, Portugal, Thailand, Cyprus, Bangladesh,

Uzbekistan, Tunisia and Kuwait with lowest rates, featuring no security

deposit and activation charges.

GPRS Roaming facility had been made available with more than 90 Live

Operators across 66 countries.

The company had also been awarded a new License for providing cellular

services in Azad Jammu & Kashmir and Northern Areas.

In September 2006, Ufone selected HUAWEI to deploy the nationwide GSMnetwork at a contract value of above USD550 million. Ufone adoptedHuawei's new-generation GSM solution, including All-IP core network andBTS, to construct a GSM network covering 1,500 cities and towns ofPakistan.

2007-2008

Ufone earned 2nd highest revenuers

i.e. 27455 million rupees during the

year.

Ufone made investment of US $174

million.

During the year Ufone successfully

completed the launching of sites

underPHASE V in existing as well as

new cities and towns by investing

more than US$ 525 million.

To further enhance the subscriber base and strategically position the

company in the growing telecom market, Ufone has finalized a network

expansion for Phase VI contract amounting to about US$ 170 Million.


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2008-2009As of 2008, Ufone is the second largest telecommunication company in Pakistan. In

recent years the company has endured significant improvement in services to

almost 4,745 locations throughout

the country.

As of 2008, Ufone employs

more than 1,730 people.

It manufactures its the

GSM company providing

services to all four

continents

It has a subscriber base of

20.05 million as of July

2009.Its share in overall

subscribers ration is given

besides,

Out of all the 5 mobile operators, only Ufone registered profit of Rs. 1.7 billion

during 2008-09, and the rest of the companies recorded financial burden due to

heavy running expenses including power expenses, rupee depreciations and

employees salaries etc.Its percentage share in overall revenue is given below,


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Company profile

Type Private

Genre Subsidiary

Founded January 29, 2001

Founder(s) Pakistan Telecommunication Company Ltd

HeadquartersIslamabad, Pakistan

13-B, F-7 Markaz

Area served2336 cities of Pakistan, GT Road, Super Highway &

Motorway

Key people Abdul Aziz, CEO

Industry Telecommunication

Products Pre Pay, Post Pay

Revenue Rs.5.1 billion PKR (first quarter 2006-07).[1]

Parent PTCL Pakistan

Website www.ufone.com


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UFONEs BRAND PHILOSOPHY

& VALUEOur philosophy and values are based on:

Solid Commitment to Growth

Security

Reliability

For all its customers, employees, stakeholders, suppliers & society as a

UFONE FIRSTS

Ufone takes pride in setting standards through market initiatives and is the first cellular

company in Pakistan to:

Offer real value for money packages

Introduce 6 months free incoming

Offer 32k Power SIM

Start GPRS / MMS /WAP Data services

Offer Real VPN System for corporate clientele

UFONEs SLOGANS

One of the main reasons of the popularity of the Ufone is to use slogan to attract

the customers. The Slogan of Ufone:

In Urdu is

Ufone Tum Hi to Ho"

In English

"Its all about U


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VISION STATEMENT

To be the leading telecommunication service provider in

Pakistan by offering innovate communication solutions forour customers while exceeding shareholder value & employee

expectation.

No matter whom you are, where you are,

How you want to say it or how you feel,

What you want to say, you are our focus.

Because at Ufone,

Its all about U.


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MISSION STATEMENT

"Ufone, it's all about U!

We are where you want to beAt Ufone we aim

to provide you with wider coverage, superiorconnectivity, clear signals & voice quality.

Wherever you are, Ufone keeps you connected."


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OBJECTIVES

Commitment to Total Customer Satisfaction:Customers are at the heart of our success. They have placed their trust and

confidence in us. In return, we strive to anticipate their needs and deliver

service, quality and value beyond their expectations.

Passion for Business Excellence:We strive for excellence in all that we do. We aspire to the highest standards

and raise the bar for ourselves every day. This commitment to delivering

world-class quality translates into unmatched service and value for our

customers and all stakeholders.

Trust & Integrity: At Ufone, we take pride in practicing the highest ethical standards in an

open and honest environment, and by honoring our commitments. We take

personal responsibility for our actions, and treat everyone fairly, and with

trust and respect.

Respect for People:Our relationships drive our business. We respect and esteem our employees

and all stakeholders. We believe in teamwork, empowerment and honor.

Responsible Corporate Citizen:As the market leader, we recognize and fulfil our responsibility towards our

country and the environment we operate in. We contribute to worthy causes

and are dedicated to the development and progress of the society


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MAJOR

COMPETITORS OFUFONEThe major competitors of Ufone are domestic companies like

MOBILIINK

PAKISTAN MOBILE COMMUNICATIONS LIMITED, better known as Mobilink GSM, is

a telecommunication service provider in Pakistan. It is a subsidiary of ORASCOM

TELECOMstarted its Operations in 1994 and has become the market leader both in

term of Market Share and also the largest customer subscriber in Pakistan. To

achieve the objective they offer both

y Post pay (INDIGO), and

y Prepay (JAZZ)

Services to their customer. Jazz is an amazingprepaid service that allows freedom from monthly bill and gives complete control

over the customers cellular expenditure. The user can decide in advance when and

how he wants to spend. He can load a scratch card whenever he wants and talking.

Mobilink have 13 more products given below.

y Mobilink Indigo

y Mobilink Jazz

y Mobilink PCO

y Mobilink Black Berry

y MobilinkWimax

y Mobilink TV

y Mobilink Game


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y On Jazz Cricket Sims

y PSO Card

y PIA Reservationy StockWatch

y Corporate SMS

y SMS Advertiser Fax Mail

According to PTA statistics, Mobilink has 30.88 million customers by January 2008.

Mobilink's Head office is located in Kulsum Plaza, Blue Area, Islamabad

TELENOR

TELENOR (OSE: TEL, NASD AQ: TELN) is the incumbent telecommunications

company in Norway, with headquarters located at Fornebu, close to Oslo. Today,

Telenor is mostly an international wireless carrier with operations in Scandinavia,

Eastern Europe and Asia. In addition, it has extensive broadband and TV

distribution operations in four Nordic Countries.

PAKTEL/ CHINA MOBILE/CMPAK

PAKTEL was the first ever company granted license to

carry out cellular phone services in Pakistan set up by

Cable & Wireless. It carried out AMPS services until 2004,

when the company launched GSM services as well. Its

main competitor emerged in late 1990s as INSTAPHONE

and soon began to dominate the market. On 4th May 2007, Paktel was renamed to

CMPAK. And then, on 16th May 2007, China Mobile announced that it had upped its

stake in CMPak to 100%. Moreover, PTA (Pakistan Telecommunication Authority)

has announced that it may resolve the frequency issue with China Mobile, as it was

one of the main reason for pullout byMillicom International Cellular S.A.


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WARID

WARID TELECOM INTERNATIONAL IS AN ABU

DHABI based mobile telecommunication firm providing telephony services in Bangladesh,

Pakistan and Uganda.

ZONG

Zong is the first International brand of

China Mobile being launched in Pakistan. It

is meant to empower and liberate thepeople of Pakistan in every nook and corner

of the country

In crux


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Hierarchy of Ufone

In Ufone the hierarchy is very lean, in general the whole setup is centralized, all thematters are to be reported to the main company and all the policies and targetsare approved at the higher level. But at the department level the structure isdecentralized.

Technical

Customer operations

Finance

Administration & Procurement

Human Resource

Co-ordination (Govt. relations)

Marketing

Current CEO (Chief Executive Officer) & President of UFONE is Mr. Abdul Aziz


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MANAGEMENTPROFILES

Mr. Abdul AzizPresident & CEO

Mr. Abdul Aziz has rejoined Ufone as President & CEO inDecember 2007. A fellow Chartered Accountant, he has over

fourteen years of experience in the Telecom Industry bothlocal and International including Europe, Asia and Africa.

Mr. Mohammad Zahid QureshiGeneral Manager Administration

Mr. Mohammad Zahid Qureshi has over 12 year

experience in telecom industry. Mr. Qureshi has beenassociated with Paktel and later Ufone for quitesometimes.He participated actively in successful launch of Ufone

services in Lahore & Faisalabad.His core competencies and the areas he holds expertise ininclude Sales, Services and Administration. He has playedan instrumental role in launch of product and system

development for Ufone.Mr. Qureshi has done MBA from Punjab University, Lahore.


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PRODUCTS:The following are the services of Ufone:

PREPAID:

Ufone markets its prepaid services as Prepay. Ufone Prepay is more affordable.

Its primary markets intended towards teen agers and students.

Following are some of the prepaid packages of Ufone.

PACKAGES:

y Life plus Package

y Prepay Life

y Life Value

y

Joshy U Circle Life

y U Circle Life Plus

y U Rock


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y Public Demand

y Paanch Ka Pandrah

y Ghanta Package

y UWon

y Teen minutes Package

y One Number free Package

POST PAID:

Postpaid services are marketed by the name Post

pay. These services are mainly targeted towards the

business community of the country Ufone Post pay is

a brand that keeps up with you, understanding your

drive for victory in the business arena and your sense

of belonging in your personal life. On the road to

success, Ufone Post pay is a brand for those who expect more from life, from

themselves and from their phones, so turn your mobile communication into the

unique experience you always wanted

PACKAGES:

Ufone Post pay is designed to suit your life style & communication drive. As you

always wanted more from your mobile phone service! So now you can enjoy:

Special discounts: on a range of talk plans you can choose from

Virtual Private Network (VPN): Your own private network withinthe Ufone network

GPRS: Internet Access on your GPRS enabled phone & mobile office soyou can be in touch with business while you are out and about

U-mail:To enjoy wireless email products

International Roaming: in countless destinations, keeping youconnected worldwide

Exclusive Customer Care: with personal service to help set up yourphone to suit your needs.


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CULTURE OF UFONE

Organizational culture

ITIS SHARED VALUES,PRINCIPLES,TRADITIONS& WAY OFDOING

THINGS THATINFLUENCE THE ORGANIZATIONAL MEMBERS ACT

Organizational Behavior is the study and application of knowledge about how

people, individuals, and group act in organization. It does this by taking a

system approach. This is, it interprets people-organization relationships in

term of the whole person, whole group, whole organization, and whole social

system. In our project, from the definition above, organizational behavior

encompasses a wide range of topics that are being practiced in ufone

Telecom, such as

Human behavior

Change

Leadership,

Teams etc.


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CHARACTERISTICS OF

UFONE CULTURE

The factors that have influenced organizational Culture of Ufone:

History and Owner ship:

The one-person business, the family business, the small-group entrepreneur will

determine influence, power, style, due to its centralized ownership.

Size

As the enterprise grows and expands, tight ownership and control may dwindle

and others will start influencing style and culture.

ORGANIZATIONALCULTURE

AtentionToDetail

People

Orientation

TeamOrintation

outcomeorientation

Agressiveness

Stability

Innovative

& RiskTaking


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Technology

High cost, fast changing technologies like in

telecommunications might require a more flexible culture than those technologies

that are expensive (machinery) where a more formal, well structured culture willbe needed

Leadership and Mission

Individuals and their values will impact on the culture o f the Ufone.

FUNCTIONS OF UFONE CULTURE:

Define the boundary

between the other

organization and Ufone.

Conveys a sense of

identity for its members.

Facilitates the

generation of the

commitment to something

larger then self-interest.

Serves as a sense-making and control mechanism for fitting

employees in the organization


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Elements of Ufone

Culture

The organizations base rests on managements philosophy, values, vision and

goals. This in turn drives the organizational culture which is composed of the

formal organization, informal organization, and the social environment. The

culture of Ufone Telecom determines the type of leadership, communication, and

group dynamics within the organization. The workers in Head Office of Ufoneperceive this as the quality of work life which directs their degree of motivation &

they learn their culture though

PARADIGM

STORIES

SYMBOLS


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Stories:What people talk about, what is defined as success, Failure.

Routines:

What is normal way of dong things, procedures ad practices?

Rituals:

What does the organization highlight? Long service, quality, performance, and

innovation.

Symbols:

Symbols lay office size, size and type of car.


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Environment of

Ufone

The External Environment

All outside factors that may affect Ufone make up

the external environment.

The external environment of Ufone is divided into two parts:

Directly interactive:

This environment has an immediate and firsthand impact on the Ufone.

A new competitor for example ZONG entering the market is an example.

Indirectly interactive:

This environment has a secondary and more distant effect upon the organization.

New legislation taking effect may have a great impact.

For example, political instability in Pakistan

DIRECTLY INTERACTIVE FORCES

Directly interactive forces on Ufone include owners, customers, competitors,employees. Management has a responsibility to each of these groups. Here are

some examples:


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Owners

Expect managers to watch over

their interests and provide a return on investments.

Customers

Demand satisfaction with the products and services they purchase and use. Ufone

provides customer care through Customer Care Center located in all key cities,

across the country. Ufones customer care representatives are more helpful. They

will not only resolve Consumers issues but also guide them into customizing Ufone,

according to their needs.

Competitors

Present challenges as they vie for customers in a marketplace with similar

products or services-e mobilink

Employees

Provide both the people to do the jobs and the representation of work force

concerns to management.

INDIRECTLY INTERACTIVE FORCES ON UFONE

The second type of external environment of Ufone is the indirectly interactive

forces. These forces include

Sociocultural, Political And Legal,

Technological,

Economic, And

Global Influences.

Sociocultural Dimension

Is especially important because it determines the goods, services of Ufonethat they convey to the society. The sociocultural force includes the

demographics and values of a particular customer base in ufone.


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y Demographics

Are basically measures of the various characteristicsof the people and social groups who make up a society of Pakistan .Age,

gender, and income are examples of commonly used demographic

characteristics considered by ufone.

y Values

Refer to certain beliefs that people have about different forms of behavioror products. Changes in how a society values an item or a behavior can

greatly affect on business of ufone.

Political and legal Dimensions

of the external environment of ufone include regulatory parameters within which an organization must operate.Political parties create or influence laws, and business ownersmust abide by these laws.

Tax policies, trade regulations, and minimum wage legislation

PTA Pakistan Telecom Authority is the regulatory authority in Pakistan

concerning the network operators as well as telecommunication practices. Ufone isalso abiding the rules that are being made by PTA. The relationship with PTA is

also being maintained as PTA is Govt. regulation.

Technological Dimension

of the external environment impacts the scientific

processes used in changing inputs (resources, labor,

money) to outputs (goods and services). The success of

many ufone depends on how well they identify and respondto external technological changes.


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Economic Dimension

Reflects worldwide financial conditions. Certaineconomic conditions of special concern to ufone include

interest rates, inflation, unemployment rates, gross national product, and The value of the U.S. dollar against other

currencies

Global DimensionOf the environment of ufone refers to factors in other countries that affect U.S.organizations. Although the basic management functions of ufone is

planning,organizing,staffing,leading, and

controlling

ufones overall success as a global business depends, in part, upon their ability to

succeed in different economic, social and political environments and to manage

and to mitigate these risks.


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Brands of Ufone

While keeping its tradition of being the trend setter in the industry, Ufonechanged the image of mobile phones from a luxury only affordable by the

elite, to a necessity affordable by the common man. Since its inception, Ufone

has positioned its brand for masses.

In keeping with the upcoming competition and market dynamics, Ufone

increased its focus on the youth segment (which comprises 50% of the

population), with the Prepay brand. By designing market focused products,

Ufone brand team launched aggressive campaigns, which further increased

the brand equity.

The new brand image gained huge popularity amongst the targeted market. A

recent marketing survey conducted by a prominent marketing research

company showed that Ufone has considerably increased its brand visibility

and image. Ufone Prepay brand is now considered to be one of the most

favored brands by the youth market and is followed by other mobile operators

launching their respective brands for the youth market.


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CORPORATE LEVEL STRATEGY

As their corporate level strategy, they have entered as a subsidiary of PTCLorganization.On the basis of findings, it appears that for the past few years. Ufone had a

focus on INTERNAL GROWTH. All this is evident from the fact that since thederegulation of the mobile service industry of Pakistan, has undertakenvarious efforts to ensure that it changes its stance from concentrating on itsexisting market to growing its market presence. The main reason for thischange is mainly to keep up with the competition and to retain and increaseits market share. With the threat of new entrants into the industry after thederegulation, UFONE strategy took a new turn. To keep abreast with thecompany ufone took the following steps during the last 2 years:

Expanded its international roaming Service scope

Bilateral roaming agreements signed with 100 countries aroundthe world to have true roaming service operational in 151operators of the world.

Promotional Campaigns

Ufone BUNDLE OFFERS: These bundles include a handset, a Ufoneconnection and airtime worth

Ufone packages deliver nationwide cellular freedom at local Callrates

Exclusive deals to 6 northern area destination including Chitral,Gilgat, Hunza, Kaghan, Skardu and Swat. 37

As their


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BUSINESS LEVEL STRATEGY

It has focused on Differentiation strategy ever since it started. Ufone has always

made successful attempts to distinguish their products or services from other inthe industry. They make their product unique through.

Advertising

Highly creative people in the marketing dept

Billboards,

TV commercials, bringing in famous personalities from media to

endorse their packages

Distinctive Product Features

Value added services Online billing

GPRS enabled

International roaming:

Bilateral roaming agreements signed with 100 countries around the world to have

true roaming service operational in 151 operators of the world.

Exceptional Service

There are certain areas of Pakistan where PTCL connections are not available; the

PTCL cables have not reached yet, but Ufone has its service in those areas.

Providing services in 413 cities

Best customer service in the cellular market:

Biggest Call Center in Pakistan, which is there to assist the customers 24 hours.

New Technology


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Low Cost Strategy

Ufone does follow a low cost strategy. Ufone is a giant in Pakistani mobile industry

Tel. it has been focusing its products on the upper strata of the society. That is why

its rates are less than its competitors, mobilink , Warid, Telenor, etc Boston

consulting group is used to help corporation with analyzing their business units or

products lines.

BCG Matrix

This help the company allocate resources and used as an analytical tool to analyzethe market in brand marketing, product management, strategic management &

portfolio analysis. This bcg matrix is with respect to the competition that exist for

ufone in telecom industry. This includes the following mobile operators:

Mobilink

Telenor

Zong

Warid


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Functional Level Strategy

MARKET SEGMENTATION:

Cellular service market is a diverse set of people. Ufone as well as other cellularservice companies segment their market on four bases: - economy, age, gender &occupation.

I. ECONOMY: Upper class, Middle class, socio-economic class, lower class

II. AGE: Teenagers, youngsters, middle age, aged people

III. GENDER: Male & Female

IV. OCCUPATION: corporate class, Business class, working class etc

TARGET MARKETS

Cellular phones are the technology of new era, the 21st century. Thesecellularphones are the main focus of our youngsters. All the cellular companies are

targeting The Youth one way or other. Ufone is no longer a follower in this

race. Its main focus is THE YOUTH of Pakistan which is its Target Market.

TARGET MARKETING STRATEGY

Ufone has always been targeting Youth Market by using young brand

endorsers or ambassadors. It always brings such packages and offers that

precisely meet the needs of our young people. No doubt it has also launched

packages, brands and offers for working people, business class, ladies and

aged ones. Ufone seeks to target masses in the long run.


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POSITIONING

Positioning is the process of creating an image of

companys brand in the mind of market. Companies position themselvesemotionally, functionally or on the basis of brand quality. Ufone is still a

market challenger in comparison to market leader MOBILINK. It is still to

reach to the top most position of cellular companies. So Ufone positions itself

on the basis of its services.

UFONES POSITIONING STRATEGY:

Ufone changed the image of mobile phones from a luxury only affordable by

the elite, to a necessity affordable by the common man. Since its inception,

Ufone has positioned its brand for MASSES on the basis of services it is

providing and its lowest call rates. It makes them believe that it satisfies the

needs of everyone (viz all classes, age & genders). It tells them that Ufone is

there when anybody needs it. The brand name UFONE itself is a positioningstatement.

DIFFERENTIATION

In these days of intense competition marketers find it hard to differentiate

their services from those of competitors. Now customer care about only

price. An unsatisfied customer will immediately go for brand switching.Thus leaving a customer unsatisfied and not meeting his/her demands is out

of question for marketers.


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DIFFERENTIATION STRATEGY:

Ufone has always strategized in satisfying the demands

of its customers. In doing so it has been successful in differentiating itself in

terms of:-

Price

Quality service

Technology

CUSTOMER RELATIONSHIP

With 28 million mobile users in Pakistan, Ufone is having a subscriber base

of around 7 million. Ufone is showing a remarkable growth rate. It is

maintaining a healthy customer relationship through its customer service

centers and call centers. Its department of Customer Operations is

specially designed for maintaining Customer Relationships.

CUSTOMER RELATIONSHIP STRATEGY:

Ufone strategize to build and maintain strong customer relationships in

order to build long-term customer loyalty and to capture customer lifetime

value. In this context Ufone has been training its internees and permanent

employees in the fine art of interacting with customers. It is also

strategizing to offer gifts & rewards for its long-term customers in its Post

pay to match the wonderful customer relationship strategy of INDIGO.


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TOTAL MARKET ORIENTATION

Total Market Orientation is about understanding and meeting customers

expressed and latent needs.

STRATEGY:

Ufone has always considered the ever growing needs of low call rates and

quality service. It has provided its customers their needed packages and has

introduced such brands & packages that meet customers latent needs as

well. For example 5 ka 15 is result of a latent need of women of our society.

They plan to make a short call but it becomes a long one unintentionally due

to gossips and chit chats

COMPETITORS

There is a hard core competition among the cellular service providers in

Pakistan. Ufone is a market challenger in its competitive position, where

MOBILINK is the market leader. Warid, Telenor and newly introduced ZONG

are also strong contenders in market challenger category. Ufone has the

following four direct competitors:-

y

Mobilink

y

Telenor

y

Warid


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Ufone also considers the following as its competitors:-

y

ZONG (former PAKTEL)

y

PTCL WIRELESS

y

Wateen

y

World Call

COMPETITIVE STRATEGY:

Ufones competitive strategies are Customer intimacy and Differentiation.

Ufone aims at fore passing Mobilink in its competitive race

Forces In The Industry Analysis

In telecom industry five competitive forces dictate the rule of competition

Threat of New Entry

As government of Pakistan is showing liberalism in case of telecommunication

sector and opened its policies to award new licensees to new mobile service

providers so threat of new entry is high.

As set-up cost is in billions of dollars so in this case threat of new entry is low, but

there are companies who are working to achieve licenses and approaching PTA to

know terms and conditions for this.

As for this business companies need a well established distributions and

franchises network so threat of new entrant is high in this case


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Bargaining Power of Buyers

Power of buyer is high in telecommunication sector. There are six market playersand players are offering different packages at different prices and a situation of

price war is running. Buyers have a power to buy any package which is suited to

them.

Cost of switching from one company package to other company package is low.

Hence, power of buyers is high.

Bargaining Power of Suppliers

The power of suppliers is low in case of telecommunication sector.

But the fact is that numbers of suppliers are few in the market but they are

competing in the market to make agreements with mobile service providers.

Threat of Substitute Products

Government also gave so many land lines and wireless local loop licenses to

different companies like PTCL wireless local loop, GO CDMA etc. these services in

future will be like mobile phone services like they are planning to offer services a

lot but currently they are offering SMS and CLI services to their customers.

Competitive Rivalry

Currently there are six market players but in future they will be eight and nine or

even more.

Thruway satellite service is offering subscribers freedom of mobility and

uninterrupted service. Thruway s satellite technology supplements of existing

mobile service providers, overcoming the challenges of large geographical areas

and insurmountable terrain


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MARKETING MIX STRATEGY

1 - PRODUCT/SERVICES

Ufone is a service providing company. Service is any intangible product that

consists of activities, benefits or satisfactions offered for sale.

STRATEGY:

Ufone makes strategies to provide a better cellular telephonic service whichexcels its competitors at all levels. When Ufone launches a new package in a

market, it actually makes it a complete package of core benefit, design,

features, brand name, quality, and after sale service.

2 - PRICE

Cellular service providers are facing intense price competition in

contemporary market. Customers perceive pricing as the heart of brand

selection. Price has always been the core differentiation of Ufone. Ufone is

the one who is offering least call rates off-network.

STRATEGY:

Ufone strategize to capture the existing pricing needs of its customers and

use it well on occasional or timely basis. For example Ufone offered very

good call rates on international calls in Eid days. It offered hourly call rates


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in Ramadan when people were least likely to avail the

offer that much that it might prove unprofitable for Ufone. It was a fantastic

strategy to beautify the brand image in term of pricing in customers minds

as well as remain profitable in doing so. Ufone follows market penetration

pricing strategy and dynamic pricing strategy to meet the customer needs

and ever changing price competition.

3 PLACE

Place plays a very important part in the distribution and promotion of

services.

Competitors of Ufone are seeking to penetrate into places where others

havent reached. Cellular service providers are drastically widening their

network & coverage in every area of Pakistan. Mobilink has this edge in

place excellence because it is the pioneer in cellular telephonic field.

STRATEGY:

Ufone strategize to widen its coverage to all places in Pakistan in order to

meet the requirements of its increasing customer base. Now Ufone is

heading from cities to remote northern areas in expanding its network.

Ufone has intensive promotion in cities, but it is also considering improving

its promotion in rural areas as well.


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4 - PROMOTION

Ufone believes in Integrated Marketing Communication which is a carefully

blended mix of promotion tools. Ufone employ different marketing activities

and channels to communicate and deliver value to customer. These activities

are coordinated to provide maximum communication output. These

communication channels includes:-

y

Advertising,

y

Sales Promotion

y

Public Relations

y

Direct Marketing & Personal Selling.

Ufone strategize to carry out promotion in order to increase its market

share.

STRATEGY:

y

Advertising (discussed later)

y

Sales Promotion (discussed later)

y

Public Relations: Ufone is less conscious of developing its

general public relations. But recently it has launched its

Hajj Guide service on Ufone. It avoids getting in news

stories and controversies but sometimes it proves

inevitable.


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y

Direct Marketing: Ufone employ on-road umbrella

franchises where the directly market and sell their

connections and Sims.

y

Personal Selling : Ufone administer personal selling

facility to sell their Post Pay connections targeting well to

do people and businessmen

COMPETITIVE ADVANTAGE OF U-FONE:

Its an advantage over competitors gained by offering consumers greater

value than competitors offer. Ufone strategizes to gain more and more

competitive advantages. It also uses these competitive advantages well

enough for its promotion. Currently Ufone is enjoying the following

competitive advantages:-

y

Lowest overall call rates

y

Value added Services (VAS)

y

Call block service

y

Corporate color


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CHALLENGES TO UFONE:

Ufone face many challenges with the ever growing needs of

telecommunication. It must remain profitable with the

decreasing economical situation of Pakistan. It must grow as

well in these dark times if it has to remain IN the market. Ufone

face very strong competition from its competitors. It must offer

lowest rates with better quality service. New features and

services should be introduced to make its customers loyal,

happy and satisfied.


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FUTURE PLANS OF

U-FONE:

Keeping in view the growth potential of the cellular industry there is

no option but to be aggressive in order to remain a potent force in the

cellular industry.

In order to extend cellular network Ufone has finalized a huge

network expansion contract amounting to about USD 550 million,

which will enhance the subscribers capacity by 10 million. This is the

largest ever expansion project of Ufone.

A strong focus will be on maintaining high quality of service, which is

always a benchmark of Ufone, increasing usage and exploring new

revenue streams on value added services, market visibility through

various market initiatives to fulfill subscribers satisfaction and

demand and above all to increase the value of investment for the

shareholders.


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SWOT ANALYSIS OF

UFONEWhat is a SWOT Analysis?

ASWOT(STRENGTHS,WEAKNESSES,OPPORTUNITIES, AND

THREATS) IS A TOOL USED TO PROVIDE A GENERAL OR DETAILED

SNAPSHOT OF A COMPANY'S HEALTH.

SWOT analysis is a tool for auditing an organization and its environment. It is the

first stage of planning and helps marketers to focus on key issues.

SWOT stands for

STRENGTHS

S

WEAKNESSESW

OPPORTUNITIES

O

THREATST


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By identifying the organization's strengths, weaknesses, opportunities and threats,

managers can formulate strategies in such a way so that the strengths andopportunities can be utilized and internal weaknesses and environmental threats

can be minimized. To fulfill its mission, Ufone should capitalize on its key

strengths, overcome or alleviate its major weaknesses, avoid significant threats,

and take advantage of the most promising opportunities.

Why use a SWOT Analysis?In any business, it is imperative that the business be its own worst critic. A SWOT

analysis forces an objective analysis of a company's position and the marketplace.

Simultaneously, an effective SWOT analysis will help determine in which areas a

company is succeeding, allowing it to allocate resources in such a way as to

maintain any dominant positions it may have. The SWOT analysis of Ufones

conducted as under: -

INTERNALENVIROMENT

STRENTHS

WEAKNESSES

EXTERNALANALYSIS

OPPORTUNITIES

THREATS

SWOT ANALYSIS


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STRENGTHS

Second Large

Market Share

Although Ufones market share

has dropped due to current

economic and political

circumstances it but is still very

much competitive at 20 percent.

Ufone is enjoying the second

largest cellular network in

Pakistan

Worldwide Cheap call Experience

As explained above even with Ufones recent decline they still have the market

share and the experience to bounce back. They have been a nationwide company

for nearly ten years now and have established themselves as the national leader

for most of them. Fewer rates than competitors

Representing PTCL name

As it is the subsidiary of PTCL

Coverage on GT Road 60%

Now covering Pakistan business highway up to 73%


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Variety of Value Added Service

Provide varieties of value added services as compared to other cellular networks.

Ufone is offering more and better Value Added Services (VAS) than its competitorsi.e.

y Mobile Office

y Mobile Internet

y Mms

y Ufones Walkie

Talkie

Others

Ufone has great management within the organization (internally

& externally)

Established customer base including lower middle class

Company present in all four provinces

Highly motivated and trained work force

Ufone has the most promising and attractive ATL (Above the

Line) activities


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Others

Ufone has less professionalism within the organizational

members

Ufone still has room for the betterment of its network coverage in

comparison to The Market Giant MOBILINK

Ufone has pathetic billing system for postpaid connections. Thisfaulty system creates a negative vibe among its customers

Less coverage in remote areas

Not targeting the rural areas at the moment

No proper planning to cater the excessive demand


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OPPORTUNITIES

Can target Corporate:

It is obvious that GM was behind its competition with regards to the research and

development of hybrid vehicles. However hybrid technology is still very much new

giving GM the opportunity to once again become the automotive industry's leader

in innovation and technology.

Continuing to Expand Globally:

Ufone have the ability to expand globally. But due to current economic condition all

its operation are on halt

Publicity and Marketing:

With the right marketing strategy they can acquire much more.

Develop New Value Added Service:

This is an opportunity that will never be satisfied, meaning that Ufone shouldalways be attempting to keep improvising new valued added services, and as we

know, what is in today will be out tomorrow.


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Others

Company has faster market growth.

They can start their services in other cities of Pakistan

As they are the subsidiary of Pakistan telecommunication

limited, they can acquire as much fund needed to improve

their technology

They can also target corporate sector

New Technology

Ufones biggest opportunity lying ahead in near future is the

phase of conversion of their GSM technology into 3G (satellite

based) technology

Ufone has the opportunity of growing its customer base due to

increasing trend of using mobile phones

Ufone has the opportunity to win the customers of its

competitors by providing them superior services on lower

price

Ufone has the opportunity that it is pioneer in southern

Punjab where it can promote itself and become market leader

on the basis of this very fact


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THREATS

The threat that ufone may faces are the strengths of its current competitor.Although ufone has competitor in the market but ufone is the market leader so ithas no fear from competition but still there are some factors which affect the salesof ufone:

Ufone has three major competitor i.e.

MOBILINK

TELENOR

WARID

Under certain circumstances these companies may act as a majorthreat for the organization.

Change in Government policies act as a threat.

Rising sales of substitute as MOBILINK also act as a threat


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DECISION MAKING

STYLES OF UFONEIn the modern era of communication every cellular company is trying to survive

and to lead the market by adopting different effective decision making approaches.

Due to high competition and rapidly changing environment all most all the cellular

companies in Pakistan prefer analytical decision making style. In ufone both

ANALYTICAL and CONCEPTUAL styles of decision making are adopted. Ufone has

taken the lead by ensuring they are the first to launch the most innovative pricing

offers, products & packeges.so. While taking any decision ufone management

consider all the available alternatives and then select the best one.

Causes of Adopting Analytical and Conceptual

Decision Making Styles

Following are the causes to adopt analytical and conceptual decision making

styles:

Tense Work Environment

Huge Investments

Dense Hierarchy

Departmental Isolations

Randomly Changing Policies

Aggressive Marketing Campaigns


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Decision making

matrix of ufone

HIGH

LOW

RATIONAL INTUITIVE

analytic conceptual

directive behavioral

Toler

anceforambiguity

Way of thinking


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Work

SpecializationU fone is one of the leading cellular companies of Pakistan and have million of loyal

customers. It is working in Pakistan. During the year Ufone successfully completed

the network expansion of phase IV in existing as well as new cities and towns which

amounted to more than US $ 170 million. As a result asset base of company has

increased from Rs. 20 billion to Rs. 27 billion. During the year Ufone adopted the

policy of simplified tariffs with no hidden charges , which resulted in positive

impacts on the usage trends of subscriber base , which has increased from 2,579 k

to 7, 487 k in June 2006 . Ufone currently caters for international roaming to more

than 195 operators across 119 countries and introduced international roaming

facility for prepaid subscribers in following countries , with lowest rates featuring

no security deposit and activation charges.

y Saudi Arabia

y United Kingdom

y United Arab Emirates

y Singapore

y Portugal

y Kuwait

GPRS roaming facility is available with more than 75 live operators across 59

countries. The company has also been awarded a new license for providing cellular

services in Azad Jammu & Kashmir and Northern Areas. Operating performance,

Ufone operational performance has been very encouraging.


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Departments in

UfoneThe organizational Structure at Ufone is Lean or Horizontal structure. One of the

organizational functions of Ufone in relation to its hierarchy is, the company is

having Decentralized structure. The flow of communication becomes easy and

simple in such structure. It is divided into different departments and every

department has its head and all are interconnected.

The concept of Departmentalization is effectively in practice at Ufone. There aredifferent departments which are working within their functional units to

contribute towards the success of organization and to achieve the over all goal of

the Organization.

UFONE HAS8DEPARTMENTS THAT AREWORKING

EFFICIENTLY AND ALL ARE INTERACTINGWITH EACH

OTHER TO MAKE IT A MUCH BETTER COMPANY BYSATISFYING ITS CUSTOMERS DEMAND.

The structure of Ufone comprises of Board of directors who are being reported byCEO, Chief Executive Officer.CEO is a great supervision to the 8 Major operations ofthe company. These operations are divided into departments that are


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Finance

Department

Mr.MohammadNadeemKhan

Chief Financial Officer

There are further 4 sub-heads in Finance Department


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FUNCTIONS OF FINANCE

DEPARTEMENT

CNC

The department is responsible for Credit exposure for Ufone postpaid connection.

The department maintains the record of all postpaid subscribers in order to

ensure the subscribers validity.

Budgeting and PlanningThe department is working over the budgets, the planning of budget and its

reports to the authorities. This head provides the annual budget to be spent. The

function of this head is also to forecast any opportunities or threats towards the

organization. The reporting of the budget is being done on the monthly basis to the

head of financial officer to keep the record of the budgets. Relationship with banks

are also being maintained in order to get help in the need time.

Accounts

The accounting head is responsible for the book keeping of the records. The

internal audits are done to ensure the stream lined working of the processes as

well as external audit by the Accountancy firms.

Revenue Assurance

There are Revenue Assurance policies & procedures being made by the personnel.

This assurance head also Liaise with other departments, obtain, analyze andreconcile reports to ensure prevention of revenue leakage. The sub-head also

ensure error free billing operations, deployment of key revenue assurance

applications/solutions, fraud management.


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INFORMATION

TECHNOLOGY

DEPARTEMENT

Mr. Faisal Khaliq

Chief Information Officer

While being a part of information technology and telecommunications, Ufone is

having a major department of Information technology.

IT department is working with the division of further 2 sub-heads.

CIO

(cief information

officer)

BILLING IT DEVELOPMENT


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FUNCTIONS OF INFORMATION

TECHNOLOGY DEPARTEMENT

Billing

The billing department is responsible for aggregating CDRs and preparation of the

postpaid billing for customer from system.

IT Development

Any kind of IT development required by the company in billing or CRM (Customer

Relationship Management) module is done by IT development team.


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CUSTOMERSERVICE

OPERATIONDEPATEMENT

Mr. Ahmad Kamal

Chief Officer Customer Services

Operations

VP COPs

(Vice president of

customer operations)

CUSTOMER

CALL CENTER

BUSSINESS

CENTER

GOVT.

RELATIONS


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FUNCTIONS OF

CUSTOMER SERVICE

OPERATION DEPATEMENT

Customer Care:

Ufone provides customer care through Customer Care Center located in all key

cities, across the country. Ufone customer care representatives are more helpful.

They will not only resolve Consumers issues but also guide them into customizing

Ufone, according to their needs. Customers care is offered to through

1.Call Centre:

Call centre representatives are providing services, 24 hours a day. The customers

can contact the Ufone Call Center to get answers to all their queries. Some of them

include:

Bill enquiry (credit limit, expiry date etc.)

Reporting of lost phone

Number blocking in case of lost or stolen SIMs

Post Pay Reward Redemption

Call forwarding

Conference call


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Engineering

Department

Mr. Jafar Khalid

Chief Engineering Officer

CTO

(chief technical officer)

BSS

(Bussiness support

system)

NSS

(Networking switching

sub system)

IN

(Intelligence network)


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Sales Department

Mr.Younas Iqbal Sheikh

Chief Officer (Sales & Distribution)


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Functions of Sales

Department

Corporate Sales

The division of the sales department is handling the sales for executives or

corporate clients. These clients are having postpaid products with billing system.

Franchises & Retail Outlets

This division is handling franchises and retail outlets with a network of more than

365 franchises and 25 company-owned customer service centers along with a

distribution network of 150,000 outlets nationwide.

Sales operations

Sales operations at the company have been set up to provide the customers, quality

services all under one roof so consumers can walk in to any Ufone Sales & Service

Center for services like

Connection closure

Handset & other mobile accessories

PIN / PUK code number inquiry

GPRS

IR activation


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FORMALIZATIONThe degree to which jobs within the organization are

Standardized and the extent to which employee

Behavior is guided by rules and regulations

HIGHLY FORMALIZED:

Jobs offer little discretion over what is to be done.

LOWFORMALIZATION:

Means fewer constraints on how employees do their

work.

IN U-FONE:AS U-fone is a mechanistic nature company so, it has

adopted HIGH FORMALIZATION technique. It allows its managers to work

according to rules and regulations formulated by the top management. Due to

rapidly changing and dynamic environment, u-fone has to take significantsteps to guide its managers about its current objectives and trends of the

market. Organization,s goals are clearly forwarded to employees at all level of

organization.

ADVANTAGES OF HIGH FORMALIZATION:

y Managers are clear about organization,s goals.

y Organization,s policies are clearly mentioned.

y

Rules and regulations are strictly followed at all levels of management.y Proper controlling is easy as well as possible.

y Clear guidelines are provided to the lower level employees.


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SPAN OF CONTROL

u-fone has got well established management control system Which is workingunder the supervision of human resource department .The responsibility of thisdepartment is to make and review the conduct rules of u fone . Through thisdepartment they have been able to keep proper check and balance on theiremployees.In Ufone the span of control is narrow .it means

14

16

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Nature of ufone

structureIn ufone the nature of organization structure is MECHANISTIC.

It means it is

Highly Formalized

Rigid

Departmentalization

Clear Chain of

Command

Narrow span ofControl

Centeralized


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RESOURCE ALLOCATION

The manner in which scarce resources are distributed. From a businessstandpoint, this relates to how management distributes capital among its variousoperations. From a consumer's viewpoint, resource allocation relates to how goodsand services are distributed among consumers. Efficient resource allocationresults in a more productive economy. Also called allocation of resources.

RESOURCE ALLOCATION OF U-FONE

There are two major resources of u-fone:

y Finance

y Human resource

ALLOCATION OF FINANCE:

U-fone has allocated its finance resourcesaccording to following schedules:

2005 -2006

During the year July 2005 to June 2006, Ufone

continued on the path to success. The Company

further expanded its coverage and has added new

cities and highways. Ufone has network coverage

in more than 750 cities, towns and across all

major highways of the country.

y Ufone placed at 2nd number with

The total revenue of 16098 million rupees.


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2007-2008y Ufone earned 2nd highest revenuers i.e. 27455 million rupees during the

year.

y Ufone made investment of US $174 million.y During the year Ufone successfully completed the launching of sites

under PHASE V in existing as well as new cities and towns by investing

more than US$ 525 million.

y To further enhance the subscriber base and strategically position the

company in the growing telecom market, Ufone has finalized a network

expansion for Phase VI contract amounting to about US$ 170 Million.

2008-2009

As of 2008, Ufone is the second largest

telecommunication company in Pakistan. In

recent years the company has endured

significant improvement in services to almost

4,745 locations throughout the country.

y As of 2008, Ufone employs more than

1,730 people.

y It manufactures its the GSM company

providing services to all four continents


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ALLOCATION OF HUMAN

RESOURCES

U-fone has allocated its human resources into following schedules:

UPPER LEVEL MANAGERS:

These managers are responsible to handle the overall decisions and actions of u- fone. These managers are responsible to handle all the significant matters of u- fone. They formulate all the suitable strategies to accomplish their requiredtargets.

MIDDLE LEVEL MANAGERS:

These managers are responsible to supervise all the activities of lower levelmanagers. These are the usually branch managers who monitor the activities of all

managers accountable to them.

LOWER LEVEL MANAGERS:

These managers are responsible to carry out the assigned tasks to them by theirsuperiors. These managers usually include sales managers, marketing managers,and agents etc. they are directly working on the assigned tasks of u-fone.

upper levelmanagers

middlemanagers

lower levelmanagers


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Forecasting about

Ufone

Planning tool which help mangement in its attempt to cope with the

Uncertainity of the future . It starts with certain assumptions based on

management experience , knowledge and judgment.

Keeping in view the growth cellular potential of the company there is no

option but to b aggressive in order to remain in the cellular company . in order to

extend the cellular network to new cities , towns & highways and to enhance its

current installed capacities in existing cities u fone has finalized a huge a network

expansion contract amounting to about $ 550 million , which will enhance the

subscriber capacity by 10 million , this the largest ever expansion project of u- fone

.

A strong focus will be on maintain high quality of service which is always

a benchmark of u-fone , increasing usage and exploring new revenue streams on

value added services , market visibility through various market initiatives to fulfill

subscriber satisfaction and demand and above all to increase the value of

investment for the share holders . Hence U-fone has high quantitative as well as

qualitative forecasting techniques.


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In this study we are making a forecast of 6

months budget of ufone on the basis of last 6

months.

Average of last 6 months sales is used as the amount of cash receipts

in the forecast.

While average of last 6 months payments are used as amount of cash

payments in the forecast.

Average of last 6 months fixed expenses is used as the minimum

amount to be maintained in the forecast.

Analysis of the Forecasted Cash Budget

Months Oct-09 Nov-09 Dec-09 Jan-10 Feb-10

GROWTH RATE 11% 10% 9% 8% 8%

Forecasted Average Growth Rate of Six Months is 9 %

The Results of the forecasted Budget shows that the Ufones

Sales Dept. can make its sale targets to maintain 9% Monthly Growth.

The Budgeted forecast will help to set sale Targets.

Monitor Monthly expenses.

Define Actual Targets without effecting Growth.

Market Growth Rate of Competitors (As per PTA) is 12.8%.


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Analysis of Previous Months

0.87%

-2.36%

-0.47%

-2.93%

8.96%

-4.00%

-2.00%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

May-09 Jun-09 Jul-09 Aug-09 Sep-09

Growth


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Conclusion &

Recommendations

against forecasting


Sales Dept. can make its sale targets to maintain 9% Monthly

Growth.

The Budgeted forecast will help to set sale Targets.

To Monitor Monthly expenses.

To Define Actual Targets without effecting Growth.

Market Growth Rate of Telecom Industry is 12.8%.

To be a Market Leader Ufone has to Cross at least 12.8%, this means Ufone

needs to increase its growth more than 3.8% than what currently is.


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FINDINGS AND

RECOMMENDATIONS

For Finance Department

By the careful analysis of ufone strategies, we find that finance department at

ufone is aiming to reduce its cost to the minimum possible level to gain competitive

edge over its competitors.

Following are some recommendations in this regard;

To minimize the cost ufone management should Control on Advertising and

Budget.

To introduce new technology ufone should SeekFOREIGNINVESTORS.

To cut down the non-productive expenditure some Departments must be

eliminated.

Monthly expenses should be monitored strictly.

To survive in changing and dynamic environment ufone must revised its

budget policies from time to time.

For Human Resource Department

Hierarchical structure must be flatter to make internal control and internal

check system more effective.

Work Environment must be professional

Ufone should make strategies and plans for Installation of equipment withprofessional engineers.


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For marketing and selling

departmentAfter careful analysis of marketing and sale department we find that

Restructuring is required in sales and franchise support department.

Following are some recommendations in this regard;

y New Sales policies must be defined from time to time.

To increase the demand level Trainings in sales department should be

started.


Sales Dept. can make its sale targets to maintain 9% Monthly Growth.

OTHER FINDINGS AND RECOMMENDATIONS

Market Growth Rate of Telecom Industry is 12.8%. To be a Market Leader

Ufone has to Cross at least 12.8%, this means Ufone needs to increase its

growth more than 3.8% than what currently is.

To compete with other cellular companies ufone must intoduce new Call

Rates & SMS Bundle offer.

To provide maximium satisfaction to its customers company should remove

Network Connectivity Problems.

Department isolation must be minimized.


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CONCLUSION

By keenly analyzing the various aspects of Ufone, we group member agree thatmobile services are the toughest market to enter and survive. And in this toughmarket Ufone isnt only surviving but growing at an exceptional rate. Ufone is

penetrating its market by taking risks and aggressively promoting & advertisingitself. It holds second largest market share and is seeking to become the marketleader anyway possible. We came through very unconventional strategies and adcampaigns while working on this report.

Ufone is using humorous theme in its ads which has become its benchmark. A

strong focus will be on maintaining high quality of service, increasing usage andexploring new revenue streams on value added services, market visibility throughvarious market initiatives to fulfill subscribers satisfaction and demand andabove all to increase the value of investment for the shareholders.

Ufone bring amazing packages to attract the customers. The choice of people is

Ufone because Ufone price level is low and affordable that every one can say

management straregies ofufone

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