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  • 1. INTERNSHIP REPORT ON MTN Afghanistan Telecom (Kabul Afghanistan) By Rohullah (Ibrahimi) BBA (Marketing Finance)A consumer preference Study On MTN AfghanistanDepartment of Management sciences Preston University Peshawar. 15 August 2011
  • 2. AcknowledgementThis project is report entitled Consumer preference study on MTN AfghanistanIs an output of 6 weeks sincere and constant effort. I would like to take this opportunity toexpress my gratitude and thank everybody who have help in this project and without whomThis would not have been completed successfully.I wish to express my gratitude to my guide Mr.Azim Atarud .I am grateful to the managersof all departments for granting me guide required sanctions and allowing me to visit all thedepartments of the company.I am also truly grateful to the organization and all those people working at MTNAfghanistan for having patiently endured me and for spending their valuable time toelucidate demonstrate to me in detail about the working of the various departments speciall ymarketing, throughout my placement there. Their extreme co-operation and helpfulnesshave proved as an equal factor of support to me Rohullah Ibrahimi
  • 3. Rohullah IbrahimiReg NO: 1711-108017Preston university Peshawar Pakistan
  • 4. DeclarationI Rohullah Ibrahimi hereby declare that the present project report entitled ConsumerPreference Study on MTN Afghanistan is submitted in partial fulfillment of the requirementfor the award of degree of Bachelor of Business Administration of Preston University ofPeshawar Pakistan Management Studies, is a Bonafide record of work done by meUnder the supervision of Mrs.Harsha Talaulikar I further state that no part of the projecthas been submitted for a degree or diploma or any other similar title of this or any otherUniversity.Place: Preston University of Peshawar PakistanDate: 15-08-2011 Rohullah Ibrahimi
  • 5. Guide CertificateThis is to certify that the project report entitled Consumer Preference Study on MTNAfghanistan is an original work carried out by Rohullah Ibrahimi under my guidance andthat no part of this has been presented for any other degree or diploma, fellowship or anyOther similar title.Place: Preston University of Peshawar PakistanDate: 15-08-2011 M.Azhar Hussin (Course coordinator)
  • 6. Table of ContentsTITLE PAGE NO.ACKNOWLEDGEMENTSEXECUTIVE SUMMARY 1Methodology of the study 3CHAPTER-IIndustry Overview 4Global Perspective 4Afghan Perspective 5Service Market 5Telecom Industry Trends 5Business Environment 6Regulations and liberalization 7Competitive landscape in basic telephony 8CHAPTER- IICompany Profile 11Our Mission 11Vision & Mission 12MTN Group Profile 12
  • 7. Rationale of the Transaction 13The Values 14Openness 14Enablement 14The Future 14Products & Services 15SWOT Analysis 15PEST Analysis 17Marketing Mix 19Chapter IIIHR Department 21Admin Department 25Finance Department 27Sales Department 29Carrier Services Department 30Customer Care Department 31IT Department 34Technical Department 36Marketing Department 38Chapter IVConsumer preference 40Analysis & Interpretations 41Marital Status 41
  • 8. Chapter VObservations & Recommendations 46Suggestions and Recommendations 47Organizational Structure 49Work Specialization 49Centralization 50Departmentalization 50Formalization 51Organizational Culture 51Leadership styles 51Recruitment 52Job satisfaction 52Motivation 52Performance evaluation 53Decision making process 53Communication Model 53Strategy 54Conclusion 55Annexure 56Questionnaire 57Bibliography 58
  • 9. Executive SummeryAfter20years of war and civil unrest, Afghanistan is finally seizing the chance to start a recoveryprocess. Telecommunications will certainly play a big role in repairing the country s shatteredeconomy and society. The extraordinary recent growth in mobile subscribers is of particularnote, as the country works to restore some normality. By mid-2011, mobile market penetration had reached21%still low by regional standards but thetotal subscriber base had grown by a remarkable165%in the previous12months.Need For The StudyTwo kinds of data are useful for telecom companies. Data about the population and dataAbout audiences.Data about the populationAlmost every country has a government department in charge of statistics, often called aDepartment of Statistics,or census Bureau. Every 5to10years,that department does aCensus of the entire population, and publish volumes with detailed tables of results.Some organizations, such as NGOs, often collect this statistical data from various sources,And republish it in a handy format.Its almost certain that some data about the population is available for the wanted coveragearea.Data about audienceHowever when it comes to audience research it tends to be a little different. SomeOrganizations automatically find out if they have customers, because they get income fromSales.I therefore realized this need and decided to do a survey, specially done for MTNAfghanistan, avoiding asking questions about other telecom companies except thoseQuestions which translated value in terms of competitive analysis. The rationale behind thisKind of research is that it can give you much more detailed information thane syndicated
  • 10. Methodology of the studyPrimary Data:Sampling designDetermining the sample size and nature was the first crucial step. In accordance with the natureof the survey i.e. according to the demographics, sampling was done.The criterion reserved was;The target interviewee was compulsorily required to be a mobile user who who used MTNSpecifically, as I aimed to undertake accompany specific survey.Research designTaking the objective into consideration a survey questionnaire was prepared to collect theNecessary information. The survey was targeted automobile users who particularly used MTN.It was designed to understand the psychographic profile of the consumer, the general trend of theindustry in terms of consumers preference in service, the consumers assessment of MTN in termsof it sufferings, the consumers satisfaction with MTN, to gain an insight intoThe consumers switching habits,Data collectionsThe primary data for the study was collected with the help of the research questionnairedesigned. The necessary data was collected by means of face to face direct interviews and phoneinterviews with the consumers. As I wanted the patrons of MTN exclusively, the geographicscope of my survey was extended to areas where MTN events or MTN sponsored events weretaking place. Also, I frequented high end hangouts and regulars where I was able to come intocontact with a variety of candidates, for the said interview.Data analysis.As data was collected personally through direct interaction with the consumers, some factsin terms of customer s expectations and needs have been revealed in the process.Survey was completed and then the data was tabulated into database for further analysis. Withthe help of programs the data was then transferred into percentile variables for ease ininterpretation and presented along with the report.
  • 11. Further the analysis and the interpretation of the each variable from the questionnaire was doneseparately. And the interpretations were presented in graphical forms with the help ofpie charts and bar graphs for better understandingFinally based on the analysis and the feedbackfrom the customers set of suggestions andRecommendations have been forwarded through the report.Secondary data:The basic purpose of the secondary data surveyed was to understand the macro dynamics ofThe Afghan telecom Industry. The understanding of the macro dynamics made it easier toUnderstand the market and customer of the telecom industry at the micro levelThe objective of this study was to collect the necessary data about the Afghan telecomIndustry and understand the discipline of the industry and gain insights on the marketing theProduct with so many limitations.The data was successfully collected from various sources like web sites, reference guide andMaterial. The knowledge gain from the secondary data was finally combined with thePrimary data and hereby presented in this reportObjectives of the study: The chief objective of the study is to understand the consumer preference It was designed to understand the psychographic profile of the consumer. The general trend of the industry in terms of service offerings, To ascertain the consumers preference in cellular brands. The consumer s assessment of MTN in terms of its offerings, To measure the consumer s satisfaction with MTN To gain an insight into the consumers switching habits. To recommend suggestions based on the findings of the research.Limitation of the study:The study has been conducted in a systematic and comprehensive manner so as to achievethe objectives stated under the objectives of the study , with accurate results. Though all thePossible, care and precautions were taken, some of the limitations that were unaccountableIt takes a lot of skill to do a survey well, and produce unbiased information. Even then, asurvey can cover only a small proportion of the population, so there is always someSampling error involved. The smaller the sample, the larger the sampling error. Despite theseLimitations, a skillfully-done survey provides unbiased information. It is more trustworthyThan spontaneous audience feedback
  • 12. Chapter I Industry OverviewIndustry OverviewGlobal Perspective:World telecom industry is an uprising industry, proceeding towards a goal of achievingTwo third of the worlds telecom connections. Over the past few years information andCommunications technology has changed in a dramatic manner and as a result of that worldTelecom industry is going to be a booming industry. Substantial economic growth andMounting population enable the rapid growth of this industry.Research works associated with world telecommunication industryA number of research works are being carried out all over the world to improve the quality.And speed of transmission. Research works are also done on the basis of the users needs.The objective of the research work is to provide quality and affordable service to theConsumers.Market potentiality of world telecommunication industryThe world telecommunications market is expected to rise at an11percent compound annualGrowth rate at the end of year2010. The leading telecom companies like AT&T,Vodafone,Verizon, SBC Communications, Bell South, Qwest Communications are trying to take theAdvantage of this growth. These companies are working on telecommunication fields likeBroadband technologies, EDGE (Enhanced Data rates for Global Evolution) technologies,LAN-WAN inter networking, optical networking, and voice over Internet protocol, wireless dataService etc.Economical aspect of telecommunication industryWorld telecom industry is taking a crucial part of world economy. The total revenue earnedFrom this industry is3 percent of the gross world products and is aiming at attaining morerevenues. One statistical report reveals that approximately16.9%of the world populationhas access to the Internet.
  • 13. Present market scenario of world telecom industryOver the last couple of years, world telecommunication industry has been consolidating byAllowing private organizations the opportunities to run their businesses with this industry.The Government monopolies are now being privatized and consequently competition isdeveloping. Among all, the domestic and small business markets are the hardest.Afghan Perspective:The total Afghan market grew to6.72m,with an annual uplift of66.7%.This was less thanHalf the139.8%recorded in the prior twelve-month period. Indeed, growth has declinedConsistently over the past four quarters despite the fact that penetration remains low, with arate of just20.4%at the end of Q3 08.It seems highly likely that growth will continue toslow, unless there is any significant change in the country s economic conditions.Service MarketThe market for commercial public telecom services grew to about US$100 million by the end ofDecember2005. The forecast for2006 is an increase of around35% based on the historically highgrowth levels plus the introduction of one additional nationwide mobile (GSM) licensee as of15April2006 and the possibility of one more nationwide mobile(GSM) and up to four additional unified services licensees by the end of 2006.Telecom Industry TrendsThere is very robust demand for all kinds of telecom services. The mobile (GSM) servicesMarket has essentially doubled during2005,and the number of urban areas with coverageHas likewise doubled. Consumers are demanding higher quality of service and the regulatorhas responded with drive tests and enforcement campaigns.
  • 14. Business EnvironmentMarket conditions and competitionMarket conditions in Afghanistan are generally favorable. The Afghan Constitutionprovides guarantees to the protection of private investment and property and a new PrivateInvestment Law,Promulgated in2005 provides further details. The Companies Law andCommercial Code is expected to be drafted during the course of2006.The Ministry ofCommunications has adopted a forward-thinking policy and encouraged private investors.A new Telecom Law was promulgated by President Karzai on18December 2005that isvery favorable towards private investment, competition and consumer protection. TheMinistry of Commerce has begun serious preparations for World Trade Organization (WTO)Accession.Market structure and trendsThe telecom market is currently dominated by two nationwide mobile (GSM) serviceProviders that were licensed in 2003. In September 2005,the regulator concluded anInternational competitive tender for two (2) additional nationwide mobile (GSM) licensesthat was awarded for US$40.1apiece. The incumbent wire line service provider, AfghanTelecom was corporatized in September 2005with the government of Afghanistan owning100%of the share capital. Afghan Telecom will very likely be fully privatized (sold) during2006.The regulator completed an international competitive tender for Local Fixed ServiceProvider (LFSP) licenses in December2005 and at least four (4) applicants are expected toBe licensed to serve approximately300, 000 additional users in rural and underserved areasOf Afghanistan. About a dozen nationwide Internet Service Providers (ISPs) have beenLicensed and there appears to be solid demand for additional players.Thuraya is alsoProviding satellite mobile communications services and cooperates with a national serviceProvider since late 2004.
  • 15. Regulations and liberalizationOn18December 2005,President Karzai signed the new Telecom Law into effect. The lawEstablishes an independent sector regulator, to be called Afghanistan Telecom RegulatoryAuthority (ATRA).ATRA will consist of a five-member board appointed by the cabinet.ATRA has the complete range of regulatory powers, including licensing, numbering,frequency management, interconnection, consumer protection and monitoring &Enforcement.ATRA will be guided by the Ministry of Communication s Telecom &Internet Policy (3July2003), which sets forth a very comprehensive and pro-competitive approach towardsMarket liberalization to accelerate the widespread availability of affordable access totelecom services on a nationwide basis.Based on this policy, the government has already issued two nationwide mobile (GSM)Licenses (in July 2003) and completed an international competitive tender for two (2)Additional mobile (GSM) licenses in October2005.In addition, in December2005,the regulator completed an international competitive tenderfor additional Local Fixed Service Provider (LFSP) Licenses that will provide wireless localLoop (WLL) to rural and underserved areas of the country.As of10January 2006,the policy allows licensed mobile service providers to also offerfixed services and vice versa. The first licensee in this category will be Afghan Telecomformerly the telephone operations within the Ministry of Communications, established as aCompany in September2005 (100%government-owned). ATRA will soon conduct a publicConsultation on formally adopting an Unified Services License regime by the end of2006.Revenue and conduct of contribution in basic servicesThe MoC collects2.5%of the net revenues of all licensed service providers fora TelecomDevelopment Fund (TDF)to increase penetration in the rural and un-served areas.ATRAis in the process of developing procedures and policies to use these funds efficiently andEffectively. Also, the MoC is working on a plan to provide subsidized telecom services tothe public education sector and other social services and for disabled and poor people.The majority of GSM Services users utilizes pre-paid scratch cards, while the majority ofInternet usage is by NGOs and private companies that pay monthly subscription fees.
  • 16. The government has adopted a modern tax regime and therefore revenue sharing is notRequired. Various tax laws were promulgated in2005, including Business Receipts Tax (aPrecursor to Value Added Tax) and Income Tax.Competitive landscape in basic telephonyAt the present time there is no competition in the basic telephony market. The Policy foresees theawarding of two additional national (fixed-line telephony) service licenses, but it is unlikely tobe implemented until after2006.Meanwhile, at least four (4) LFSP licensees will commenceoperations in early 2006 to address rural and underserved parts of the country. It is expected thatthe LFSP licensees will deploy at least100, 000 new accessesLines by the end of 2006.Market structure and trendsMobile is by far the preferred choice by most users. The two mobile licensees are the largestInvestors of private capital, make the largest tax contribution to the ordinary budget of theGovernment of Afghanistan, are the largest employers and provide training and well-paidjobs to hundreds of Afghans.Analysis of revenues, usage and adoptionMobile penetration has gone from zero at the end of2002to500, 000by the end of 2004 andClose to one million at the close of2005. Services are mostly being offered on a prepaid basis,while some postpaid customers exist in the corporate market. ARPU (Average Revenues PerUser) were initially fairly high but are expected to decrease, as penetrationincreases.Overview of mobile data service and adoptionMobile data services are currently not being offered and SMS is apparently beingdiscontinued due to lack of market response. Most ISPs offer broadband connectivity to thebusiness market, through point-to-point wireless connections. However, Afghan Telecom hasrecently rolled out dial-up internet connectivity with modest success and CDMA-based Wi-Ficonnectivity that appears much more promising. Other licensees have also indicatedinterest in offering Wi-Fi and WiMax.Adoption forecasts by technologyNo official statement has been made by mobile operators as to technological innovations
  • 17. Slated for introduction yet, but it is assumed that the offering of roaming by both operatorswill introduce competition in this sector and reduce tariffs.Market structureUp until now, it appears that most data communications is internal and among privateenterprises and NGOs (including various United Nations operations).However, the MOC has recently created an ICT department devoted to promoting theSector. The initial focus will be on the creation of an ICT Council, consisting of theMinistries with the highest level of requirement and infrastructure. The first electronicGovernments (Gov) project was deployed during 2005and is a real-time treasury applicationto facilitate the budget process. A second initiative focusing on procurement will likely followin2006. In truth, most Ministries have been very slow to adopt ICT, most due to the lack oftrained personnel.The MoC commenced framing legislation to facilitate the broader adoption of ICT.Thedraft law incorporates the UNCITRAL electronic commerce (ecommerce) and digitalSignatures model law, reflects the Cyber Security and Cybercrime standards set by theCouncil of Europe and adopts the key elements of the information society service (electronicCommunications) directives of the European Union.Current Population Current Total Population28Million Current Rural Population19M million (70%) Current Urban Population- 09M illion (30%) Population Growth Rate Per Annum2 %Current GDP Currency: Afghani GDP: 20Bn($) GDP Per Capita :714($) GDP Real Growth :18 20% GDP Composition :Agriculture:70%, Industry: 15%, Services: 15% Literacy 36% Phone lines (85,000(2008) Phone density (0.34(2008)
  • 18. Mobile phones (500000)Mobile Phone Operators in AfghanistanMobile Communication is one of the booming sectors in Afghanistan. MobileCommunications were introduced in Afghanistan after the fall of the Taliban in 2001.It has.Become the main means of communication and one of the fastest-growing and mostprofitable sectors in the country s economy.Currently there are four mobile operators in Afghanistan.Etisalat Afghanistan is a newly established GSM operator inAfghanistan. In May2006Telecommunications Corporation [Etisalatof the Unites Arab Emirates] signed an agreement with Afghanauthorities in Abu Dhabi, U.A.E. to operate a GSM network acrossAfghanistan and become the fourth GSM operator in the country.Afghanistan is100%owned by Etisalat U.A.E. Etisalat UAE (the parent company) is theSixth largest company in the Middle East and has subsidiaries in Benin, Burkina Faso,Central African Republic, Egypt, Gabon, Ivory Coast, Niger Saudi Arabia, Sudan, Togo,Tanzania and Pakistan.Areeba is a new global brand which made its appearance in theSudanese telecommunication market in July2005.Areeba s first project has started in1990in Ghana then BeninFollowing in1999, Syria in 2001, Liberia 2002, Yemen in2003, Cyprus and Guinea BissauIn year 2004,Guinea Conakry and the trading name for Telecom Development Company AfghanistanLtd.Currently, Roshan is one of the largest private company employers inAfghanistan, directly employing over470 people,21% of whom areWomen. In addition,Roshan provides indirect employment to more than5, 000 people whoWork as dealers, distributors, contractors and suppliers.
  • 19. Afghan Wireless Communication Company is the product of founderEhsan Bayats mission to reconnect Afghanistan with the wider world.Currently, Afghan Wireless is serving 17cites: Kabul, Herat, and Marzar-I-Sharif, Kandahar and Jalalabad to become one of the very fewAfghan companies operating in17separate regions of the country.
  • 20. Chapter II Company OverviewCompany ProfileInvestcom ProfileAreeba Afghanistan’s telecommunication company started at22ndJuly 2006andFunctioning in four major cities of Afghanistan. Areeba is a subsidiary of investcom anInternational provider of mobile telecommunications services with operations in nicecountries in the Middle East, Africa and Europe. Areeba Afghanistan Ltd has about300employees which out ofthem6%to 7%are expatriates.Investcom is a leading international provider of mobile telecommunications services withOperations in ten countries in Africa,the Middle East and Europe. As at 31 December 2005,Investcom had a total of approximately4.9million subscribers compared to approximately2.5million as at31December 2004.Investcom operates five mobile telecommunications networks in Africa, namely Benin,Ghana, Guinea-Bissau, Liberia and Sudan. In the Middle East, Investcom operates mobileTelecommunications networks in Syria and Yemen and in Europe, Investcom operates a3Gmobile telecommunications network in Cyprus. Investcom also provides international carrierservices, principally through Mediterranean Network SAM in Monaco andtelecommunication engineering and consulting servicesOur MissionInvestcoms mission is to be the leading international telecommunications company in eachof the markets in which it operates by continuously striving to exceed its customersexpectations. Investcom aims to improve the lives of its customers, creating the highestlevels of satisfaction and loyalty, through the provision of high quality, innovativetelecommunications services. Investcom aims to achieve a leading position in all of itsmarkets, and our focus is on regions offering high growth potential. This is especially thecase for the regions of Africa and the Middle East, where Investcom has a strong
  • 21. competitive advantage. Investcom believes that a combination of economic growth andfavorable demographic profiles in the markets in which it operates, or will operate in thefuture, will result in increased demand for its services.Investcom considers it a vital obligation that it acts as a responsible business, providing aGreat working environment for its employees, as well as working to improve the lives of theCommunities and countries in which it operates. For this reason, Investcom undertakes aVariety of social, sporting and educational programs and sponsorships within many of itsterritories.The origins of Investcom Holding date back to1982, when it was founded as InvestcomGroup. Since then, Investcom has built a solid track record of providing quality, cost-effective telecommunications services and using the most advanced mobile and wirelessTelephony systems. Investcom has expanded its business into markets with high growthOpportunities, especially in Africa and the Middle East. In expanding its internationalPortfolio, it has successfully leveraged its experienced management team and track record ofdeveloping and operating mobile telecommunications businesses. The result is a diverserevenue base drawn from strong customer demand and loyalty.Vision & MissionTo be the leading provider of telecommunication in AfghanistanMTN Group ProfileMTN Group Limited is a multinational telecommunications group that began operations inSouth Africa in1994.Since then,MTN has expanded beyond Africa as the Group continuesto pursue further growth in emerging markets.Phuthuma Nhleko,is its CEO.The MTN Group offers cellular network access and associated services through subsidiariesand joint ventures in10 other African countries as well as in Iran,Where it is the49%shareholder in Iran cell, the company that was awarded the second GSM license in Iran.As at31 March2006,
  • 22. MTN reported over24 million subscriber’s across10 of its cellularnetwork operations in Africa Botswana, Cameroon, Cote d Ivoire, Nigeria, Rwanda, SouthAfrica, Swaziland, Uganda, Zambia and the Republic of Congo (Congo Brazzaville). Todate, the MTN Group has invested over R30 billion in telecommunications infrastructureAcross the African continent.In May 2006,MTN announced a landmark deal to create the pre-eminent mobile operator inthe emerging markets of Africa and the Middle East that will operate mobile networks in21countries and serve nearly30million subscribers.Rationale of the TransactionInvestcom LLC (Investcom) and the MTN G roup Limited (MTN Group)announced aLandmark deal to create the pre-eminent mobile operator in the emerging markets of Africaand the Middle East.The Proposed Transaction is firmly in line with MTN Groups vision to be the leading providerof telecommunications in emerging markets. MTN Group is undertaking the ProposedTransaction to enhance its growth profile in Africa and the Middle East, to gain further scale inemerging mobile markets, to strengthen its operational capabilities and todiversify its financial profile, thereby unlocking synergistic potential.Investcom is a leading international provider of mobile telecommunications services withoperations in Africa, the Middle East and Europe.At the end of2005, Investcom’s mobileoperations hadapproximately4.9 million subscribers in Benin,Cyprus, Ghana,GuineaBissau, Liberia, Sudan, Syria and Yemen. Investcom has recently been awarded GSMlicences to build and operate mobile networks in Afghanistan and Guinea Republic,expanding its operations to ten countries and boosting its combined population under licenceto approximately147million.There are no overlapping operations between MTN Group and Investcom. On a combinedBasis, MTN Group and Investcom (the "Enlarged Group") would operate mobile networks in21countries, covering a population under license of approximately488 million people andServing approximately28.1 million subscribers (as of31 December2005). The footprint wouldalso more comprehensively cover important regional hubs such as West and Central Africa withNigeria, Ghana, Cameroon, Cote dIvoire, Benin, Congo Brazzaville, Liberia, Guinea Bissau and
  • 23. Guinea Republic and East Africa with Sudan, Uganda and Rwanda. Furthermore, the ProposedTransaction would expand MTN Groups presence in the MiddleEast through operations in Iran, Syria, Yemen and Afghanistan.Given the attractive competitive position of MTN Group and Investcom in their variousmarkets, the Proposed Transaction would complement the Enlarged Groups strategy to bethe leading mobile operator across its footprint.Investcoms cash generative operations would make a sizeable contribution to the financialperformance of MTN Group, enhancing its growth profile and diversifying revenues andearnings. The Proposed Transaction also offers the Enlarged Group the potential for increasedrevenue and reduced costs through regional cross-selling opportunities, enhanced economies ofscale, technology and product sharing and the alignment of a centralisedprocurement system.The Values:Energy:It values and nurture the energy and dynamism needed to achieve the very best in business.It looks forward to future challenges and opportunities.Openness:As a company, it is welcoming, sociable, and friendly to customers, suppliers, and employees. Itdeals with people in a clear, direct way and is always honest and fair in business dealings.Enablement:Its aim is to open up opportunities and to actively help people reach their goals. It alwaysdelivers what it says it will.The Future:The future is a world in which technology extends its reach. Already, music, books, and servicesno longer have to have a physical format to be sold online. Advanced networks will increasingly
  • 24. provide education, healthcare and other services and goods. For instance, telemedicine alreadyallows patients to seek the best advice from doctors around the world; now robotic aids arebeginning to make remote surgery possible. As the pace of technological change increases,MTNwill extend its reach into new technologies, services, and markets to create opportunities for itscustomers.Products & Services Call Me GPRS M e 2U (Dealer to customer) M e 2U (Peer to Peer) Send Me Product Caller Tunez Messaging services GSM-Fax Family SIM Pack Public Call Office BoGo SMS MMS Exchange Rates Pay as you goSWOT AnalysisSWOT analysis is an important tool for auditing the overall strategic position of a businessand its environment. Once key strategic issues have been identified, they feed into businessobjectives, particularly marketing objectives. We have used SWOT analysis conjunctionwith other tools for audit and analysis explained further on. It is also a very popular toolwith business and marketing students because it is quick and easy to learn. If a SWOTanalysis does not start with defining a desired end state or objective, it runs the risk of beinguseless. A SWOT analysis may be incorporated into the strategic planning model.Identification of SWOTs is essential because subsequent steps in the process of planning forAchievement of the selected objective may be derived from the SWOTs
  • 25. Strength: Attractive Schemes Good network quality Good roaming service Good billing system International identity Low cost service provider. Equipped with the latest technology Provides global telecommunication services in more than21countries worldwide; Owns Largest nationwide telecom coverage and penetrationWeakness: Highway coverage problem New in the market Underdevelopment of mobile business and lack of fixed-mobile convergence; Lack of business strategy towards the promotion of cheap voice calls ; General complaints about customer services provided .Opportunities: Untapped market. Expansion to more profitable products and services that are less regulated; Emphasis on telecommunications and IT solutions and broadband internet services; Expansion of Internet smart-phone services. Contracting more overseas partners to further its global expansion;Threats: May lose its customers in case of entry of new mobile players Fierce competition from MTN-Areeba s main rivals: Etisalat, Roshan, and AWCC Global financial crisis; Overall increase of redemptions; Operating markets liquidity; Recent behavioral targeting scandal; Inability to foresee the successfulness of long-term projects considering currentEconomic fluctuations
  • 26. PEST AnalysisThe PEST analysis has proven to be a flexible and easy to understand tool in the context ofStrategic planning. Like with all tools, the real value of the PEST analysis depends on theway it is used.Political FactorsThe Communications Act 2003Environmental ConcernsInternet RegulationConcerns over Radiation from MobileTelephonesConverged RegulationSocial FactorsShift towards the Information SocietyMobile SocietyCommercialization of the HomeIncreasing Need for CommunicationsInternet at HomeChanging Population DemographicsEconomic FactorsFluctuations in the EconomyOverall Economy of AfghanistanGDP GrowthTechnological FactorsWireless and Mobile Communications
  • 27. ConvergenceResidential VoIPReal-Time and On-DemandCommunicationsPorter s Five Force AnalysisAn industry is a group of firms that market products which are close substitutes for eachother. Some industries are more profitable than others. Why? The answer lies inUnderstanding the dynamics of competitive structure in an industry. The most influentialanalytical model for assessing the nature of competition in an industry is Michael PortersFive Forces Model, which is described belowThe bargaining power of customersThis segment is unattractive because the buyers posses strong or growing bargaining powerSuch as:1 The buyer s switching cost is low in telecom sector.2 The product is undifferentiated because most of the companies in the telecom sectorprovide almost same services.The bargaining power of suppliersIn this segment, the suppliers bargaining power is more, because there are less number ofCompanies in this sector and for that reason they have the strong bargaining powerThe threat of new entrantsSegments attractiveness varies with the height of its entry and exit barriers.If we look from this angle then this segment is moderate because the entry barriers are high forthe foreign companies, because of the restriction imposed by the Afghan government on them,such as, they can have a maximum of20% stake in the company and secondly thecompanies should have certain amount of money with them as mention by the govt. and theexit barriers are low. this segment is more attractive for the companies.The threat of substitute productsWhen we considers on the substitute products, this segment is unattractive because there are
  • 28. many actual and potential substitutes for the product of MTN and all the competitors havealmost similar product or services, but they mainly differ in the service point of view.The intensity of competitive rivalryA segment like telecom sector which is very attractive because, it is in the growing stage ofits life cycle, and this makes this segment attractive but on the other hand it already containsaggressive competitors such as:1 Etisalat 2 Roshan 3 AWCCThe numbers of Competitors are less in the telecom sector that makes this Sector attractive tomost of the foreign companies. And in future this can lead to frequent price wars, advertisingbattles and new-product introductions and will make it expensive to compete.But overall this segment is very attractive.Marketing MixProduct Mix: -The telecommunication companies in general develop the productsby providing some new offers or features in them so that they stand unique in thecompetitive service market. Under this section will be all the different productsoffered.Promotion Mix:-In the formulation of marketing mix, telecommunicationprofessionals also blend the promotion mix in which different components ofpromotion such as advertising, publicity, sales promotion, word of mouth promotion,personal selling are given due weight age.Price mix: - Pricing policy of MTN is considered important for raising the numberof customers and subscribers, prices are flexible as per the market conditions.Special offers: For a specific period buy a sim card worth(100) and get50afg
  • 29. talk time etc.Occasional offers: New Year offers, Eid to Eid offers.Discount in international calls: lower than other competitors.Place mix: -MTN s services are sold through the retail outlets and shops, theservices are available all over the country.People mix:- People are very important in the service delivery business, as opposedto the product delivery, where one reaches for the product on a shelf. The servicecustomers will judge the product partly by the service provider whether he or she isfriendly, knowledgeable, etc, so marketer carefully select, and motivate their frontline people. This task is called internal marketing.
  • 30. Chapter III Departmental Overview HR DepartmentHR DepartmentCurrently there are7 employees working in HR department.Talent management, induction, performance management, carrier development and benefitsare the most common functions of this department.Recruitment and selection:They use many ways of recruitment such as walk-ins, referrals, newspapers, campus hiring andweb site. Rival firms can not be a source of recruitment, because they do not patch, but they hirethem if the candidate has already left the rival firm. And there is one important barrier onrecruitment and selection process, which is the labor market; they can not getwhat exactly they have described in their job description.
  • 31. Interview process:They follow well-structured interview pattern. The first interview test is taken by one of the HRpeople, and after the candidate successfully passed this interview he is send to the HR officer forthe second round interview and then to the concerned department for the last Interview.Orientation:They provide on-the-job orientation program. Maximum it takes one week depending uponthe seniority of the job. Organization and development (OD) team takes care of this wholeprocess.Performance Appraisal:Balance Score Card/EPR (Employee Performance Review) performance appraisal is used in thiscompany. It has a cover page containing the general information, guidelines and instructions.General information will be filled accurately by the appraisal. And it is very important to readthe guidelines and instructions before rating the appraise. Each party willadd their comments with the due dates and signatures.In this EPR form they focus on4things:1. Objectives Review and EvaluationIn this part, the appraiser has to rate the achievements of objectives with the due dateand related information.2. Knowledge and SkillsHere, the appraisal rates the technical skills and knowledge of the appraise.3. Behavioral CompetenciesThe Appraisal has to rate the behavioral competency of the appraise in this section.4. New Objectives and Development Needs and PlanHere, new objectives and development plans will be filled.The main objective of this is to:
  • 32. Assess employee performance based on objectives, technical skills & behavioralCompetencies. Control company productivity by improving individual performance. Establish individual development planTraining & Development:T&D is need based and they do the skills gap analysis. After the skills gap analysis theycome to know who needs what type of training and development. Below are some of thetrainings they provide: Communication skills. Sales management. Customer satisfaction.Employee RemunerationThey are much better than the standards in the industry. Factors influencing their remunerationplan are economic situation of the country, social and political environment and mostly nature ofthe job itself. Some of the benefits they provide are: Salary Bank Account Transportation Medical facility Recreational activities. Events Gatherings Carrier development Bonus is given once in a year based on their performance.Motivation:They use several ways of motivating the employees. As they are following open-door policy,they have created a friendly environment. They appreciate employee s efforts by words andrewards. They take care of their development needs, for example if someone is lacking skills orknowledge in a particular field, he is provided and automatically he feelsmotivated.They give bonus on annual basis and salary is increased every year based on their
  • 33. Performance.They have an interesting program called Yellow Star which is held every month. There is a panelteam consists of12 members taking care of this whole process. The employee of the month gets aprize. And the winner of the year gets the chance of traveling to South Africa.Policies:Policies are made in corporate (Core Office) and then it is adapted, revised, and customizedAccordingly in the company.Firing Policy:They believe in long-term relationship, but unethical behavior is not tolerated.
  • 34. Admin Department40employees are working in this particular department.Procurement:All types of purchase which are above100$ are done by procurement,and those purchaseswhich are less than100$it is given by the concerned department itself.The Directors and managers are the authorized signatories.All SIM, Generators and Towers are bought by corporate or group level in order to gain thebenefit out of purchasing in bulk.
  • 35. Site Acquisition:This particular division basically deals with the locations/ sites for antennas or towers. Forany site in a particular location first many Site Survey Request forms are sent to the AdminDepartment, and then they choose one out of all based on location and price. After the site ischosen, contract is made for minimum 15years which is extendable.There are two types of sites which they choose for their antennas.1. Roof top (small towers)2. Green field (60meter towers)G e neral Services:Many activities are carried out by this particular division such as transportation, insurance,Security, and warehousing etc.Fleet:Hotel reservation, ticketing, travel, and visa etc are done by fleet people.Travel expense from for travels and all are filled by the employees and sent to admindepartment and then they check it according to the policy of the company and payment isdone by finance department.Warehouse:There are two kinds of warehouse, one for SIM Cards and the other is for Technicalequipments. Stocks are kept accordingly, they order whenever needed.Fixed Assets:They insure all their fixed assets like buildings, antennas, generators by internationalcompanies.Maintenance:Fuel of generators and the maintenance work is given to only one vendor in order todecrease the complications.
  • 36. Finance DepartmentCurrently there are13employees in this department.Payables:Related to supplier’s cycle, a cycle is anything which starts with the order and ends withreconciliation.Receivables:All cycles related to dealers and customers.
  • 37. General Ledger:Cycle of depreciation, contracts and accruals plus employees whole related data such asSalary etc.Plus whatever is related to tax, rent and similar.Cashier:Pay and receive money (Cash/ cheque) according to payment or receive order.Bank Controller:To do the reconciliation and the cash control.Revenue Assurance:To coordinate and analyze the revenue structure against (Interconnect) plus other services.And his frequent job is to coordinate with Carrier Services, Marketing, Sales and IT.Budgeting and Reporting:His job is to contribute the budget and send the various monthly reports to the concernedParties.
  • 38. Sales DepartmentThere are28 employees working in sales department and it has1200 dealers aroundAfghanistan.Retailer:To motivate the retailers to sell out the product by giving them incentiveDirect & Indirect Sales Manager:He is the responsible person to create packages in order to sell out the product for corporateusers like NGOs, Embassies, and Ministries etc and distribution accounts.Sales Reporting Coordinator:He has to send the weekly, monthly reports to sales general manager.Order:Sales General Manager is the authorized person to order the required quantity. The processis first the order goes to procurement and they order it according to the budget. The quantityis ordered by sales and marketing is responsible for design.
  • 39. Carrier Services DepartmentThis department is the company s interface consists of 4 people.Main function of thisparticular department is to deal with AWCC, ROSHAN and Afghan Telecom and also withInternational GSM networks around the world.They also make sure that the revenue being generated is higher than what they charge. Theyalso take care of the quality of local and international networks.There is one first time contract called mother contract which is made with the other networkoperators in the local and international markets and if there are some risky issues affecting thecustomers then they edit it. They become ready to edit in the contract because both theparties loose the revenue if even the problem is with one party.As we know companies specially the rival firms arevery stiff and while making the contractas they are their competitors they demand more than what is expected, in this case the issuegoes to the higher authority which is the Ministry of Communication.
  • 40. Customer Care Department72employees in 3 shifts are working in this department.And the number of agents workingin this department is dependent on number of subscribers. The most common functions ofthis department are customer service, data entry, quality, activation, back office and training.They have Areeba Customer Service Centers in five main cities of Afghanistan such asHeart, Mazar, Kabul, Jalalabad and Kunduz.Qualities of Agent:An agent should be like a salesman or who can act like a salesman. Who has computerKnowledge, good communication skills, passion, good look and personality. Who can takeall the anger from customer to let him feel relax.
  • 41. Orientation:Agent is provided 3-days orientation program about areeba, GSM networks, customer caredepartment, and services being provided by areeba such as loading a card, call waiting, callForwarding, roaming, call conference, SMS, credit transferring etc and the way agent shouldexplain it to the customers. After 3 days the agent will sit with experienced agents to watchit practically.Quality:Main job of quality team is customer satisfaction. i.e.Calling back the customers about their solved problems.Asking about the services.Listening to the conversation of agents with customers.Quality team is also checks whether the CSR (customer service representative) is wellgroomed, their body language, the way agents speak, what the agent should say after theconversation mostly in customer service point.Call Center:Agents working in call center receive calls mostly about SMS, prices, codes, services,international call. It is just like point of service but on the phone. Details of the customers areentered in the system. If the agent is not able to solve the problem then the problem isescalated to the back office.Back Office:After the unsolved problem is sent to the back office, they check it once again before escalatingthe problem to the IT/ Technical department. i.e. a customer having problem sending SMS, theagent will check the SMS Center No, if it was right, then the agent sends the problem to the backoffice, they check the problem and if they could not solve theproblem, the problem is sent to the IT/ Technical department.
  • 42. Data Entry:These people are responsible to collect the Subscribers Application Forms from the dealers,retailers, areeba main shops and enter them correctly in the system.Promotion:Before a promotion is launched, the marketing department sends the details of the promotionto CC department and then it is told to the agents by Quality people and CC Supervisors.IV R:IVR is prepared by marketing and CC department and is loaded in the system by IT people.
  • 43. IT Department17employees are working in IT department.There are various activities carried out by thisdepartment like Software development, database development, LAN and WAN and INoperation.Employees joining this department first go through orientation program and then on-the-jobtraining which is for4 -6days.Software Application:Software applications are build in-house as well as it is purchased from 3rd party. They paythe first part of the whole money while purchasing the software and the rest is paid after thetraining and implementation is done.
  • 44. Application Support Team:They support both the development and database people.Billing and IN:Billing is responsible to generate the bills for postpaid SIM Cards. And IN is responsible forSIM Card activation, top ups, putting them in the system which is for prepaid subscribers.Infrastructure:These people basically deals with IT related issues like PABX, LAN and WAN. PABX isalso called IP phone. Software is there to configure the IP phones in particular numbers inthe company.
  • 45. Technical Department74employees are working in this department. Maintenance, operations and implementationare the3main functions of this department.Operations:Which is also called core network consists of switching, MSC (Mobile Switching Center),BSC (Base Station Center), VAS (Value Added Services).MS C:Handles and interconnect the routing of calls from one phone to another.
  • 46. BSC:Handles the allocation of resources to the phones. It is like a channel, and without it you cannot make a call. And all the BTS are connected to BSC, and BSC controls the BTS. OneBSC can handle about100BTS (15000) subscribers.BTS:BTS(Base Terminal Station) is the antenna gives average of15 20 kms coverage andmany BTS can be connected to one BSC.NMS:Network Management System people look after the alarms by BTS and inform theMaintenance group.VAS:SMS, GPRS, Call me, ME2U are the value added services.Implementation:These people just install the towers, BTS, and the generators.Maintenance:Maintenance is consists of electrical power. As in Afghanistan there is no proper electricity,the GSM Network companies use generators to provide electricity for antennas.Generators and Power:There are two diesel generators for every site which are filled accordingly by the contractor.They are configured in such a manner that automatically takes breaks without affecting orloosing electrical power. There are 3 security guards working in shifts.There is also one room for security guards. Each DG gives60 Amps. And each areeba antenna saverage consumption is30 Amps.The rest of the30 Amps is consumed by security guard s roomand lighting around the site.
  • 47. Marketing DepartmentThere are10 employees working in this department.The most common functions of thisdepartment are communication, PR, business development and product and services.
  • 48. Communication:All types of advertising is carried out by this section. Generally there are two types ofAdvertising they follow.1. ATL (Above the line) such as TV, Radio, Magazines, Outdoor, and Newspaper.2. BTL (Below the line) such as even sponsorship, brochure, leaflets, stickers and webetc.There is a company in Karachi, Pakistan who makes the story of the ad and sends it to themarketing department in order to give the ad a local feel. And after that the marketing peoplemake the schedule for the ad and put it on all the channels like Tolo, Afghan TV,Shamshad and Arianna Television Network.
  • 49. Chapter IV Consumer surveyConsumer preference study of the Afghan MarketThe study was aimed to understand the consumer preference of the various segments in thetelecom sector and related factors in the telecom industry. Since consumer preference ofsegment or brand determines the popularity and the growth of the given brand.Further it is important to mention that, the study revolves around the functional line ofConsumer behavior. The chief objective of the study is to understand the consumerpreference1. The general trend of the industry in terms of service offerings,2.To ascertain the consumers preference in cellular brands.3. The consumer s assessment of MTN in terms of its offerings,4.To measure the consumer s satisfaction with MTN5. To gain an insight into the consumers switching habits.6. To recommend suggestions based on the findings of the research.Understanding these issues helps adapt strategies by taking the consumer into consideration.For example, by understanding that a number of different messages compete for potentialcustomers attention, it can be learned that to be effective, advertisements must usually berepeated extensively. It can be also concluded that consumers will sometimes be persuadedmore by logical arguments, but at other times will be persuaded more by emotional orsymbolic appeal. By understanding the consumer, marketers are ableto make a moreInformed decision as to which strategy to employ.
  • 50. Analysis & Interpretations1. Which cellular brand are you using?Analysis:15%of the respondents had Etisalat SIM Card31%of the respondents had MTN(Areeba) SIM Cards when they were interviewed
  • 51. 18%of the respondents said that they have Roshan SIM Cards36%of the respondents when they interviewed said that they had AWCC SIM CardsAnalysis:15%of the respondents had Etisalat SIM Card31%of the respondents had MTN(Areeba) SIM Cards when they were interviewed18%of the respondents said that they have Roshan SIM Cards36%of the respondents when they interviewed said that they had AWCC SIM CardsAnalysis:33%of the respondents will go for Etisalat brand if they go for a second connectiontaking into consideration the call rate and network coverage.29%of the respondents said that they will go for MTN (Areeba) for secondconnection.14%of the respondents will for Roshan if they a second SIM Card24%of the respondent’s will buy AWCCSIM Card if they go for a secondconnection.the ads in the newspaper had given the information to refer to the telecom companiesand buy a SIM Card.33%of the respondents found information from their friends because they askedtheir friends about which cellular brand to go for, so friends were reliableinformation.27%of the respondents found information about the cellular brand from theirfamilies (father, mother, sister and brother)whom the respondents trust the most.7. Which facilities did you consider while choosing this cellular brand?ServlitAnalysis19% of the respondents considered the Internet(GPRS), those who serve the netspecially the age group of20to 35because for their daily requirements.23% of the respondents considered the call rate because their brother, sister, son and
  • 52. daughter stay out of station in other states.21% of the respondents considered receiving the coverage of the telecom companiessince Afghanistan is a mountainous it is very essential for them to be able to connectwith their relatives.22% of the respondents considered the customer care, incase if they face anyproblems with their SIM Cards so it should be easy for them to contact customer careand get their problems solved.15% of the respondents considered the service speed of the telecom companiesbecause they are time consciousspeciallyfortraders and merchants.8. What external factors did influence your decision choosing this cellular brand?FamilyFriendsexternal factorsAnalysis29%family had influenced the respondents decision while choosing cellular brandbecause for some family members were the big influencers and had enoughinformation about the cellular brands and had to follow what they said and even for afew the SIM Cards were purchased by their family members.27%friends were the external influencer of the decisions made by the respondentsbecause they are a reliable source to them and asked them every kind of questions openly andeven went to the concerned company branches with the respondents to buy a SIM Card.25%the organization where the respondents work were influenced, because SIMCards were distributed freely for some government organizations and employeeswere the SIM Cards as bonus.7%the marketing activities (TV ads, Newspaper& Magazines ads,the billboardsads, internet ads and also schemes)had influenced the respondents decisions.12%Occupation has influenced the respondents to have a SIM Card like the doctorsbecause they have to cooperate with people in case of emergency.9. How do you feel about your decision choosing this cellular brand?SatisfiedAverage Sat isfied
  • 53. UnsatisfiedSatisfaction levelAnalysis28% of the respondents were satisfied because their needs for which they had theSIM Cards were satisfied like Call rates and networks coverage.63% of the respondents were average satisfied those who used to talk on the phonevery regularly and just wanted to have a SIM Cards for other facilities like to serveInternet.9% of the respondents were not satisfied with their decisions because there was aDelayactivationwhenthey bought a SIM Card, often they had problems withnetwork coverage so they had to opt for some other cellular brand.10. Will you recommend someone else to go for this brand?Yes RecommendationAnalysis98%of the respondents, who are,Satisfied and average satisfied with their decisionand the facilities provided by telecom companies specially MTN like (Caller tunes,Me2U, GPRS) will recommend someone else when they are asked to buy a MTNSIM Card.2%of the respondents who were unsatisfied with their decision will not recommendSomeone else when they are asked to buy MTN SIM Card, because there was a delayin activation or because of the network coverage problem.AnalysisRespondent in age group of17 to25, 5% of them had SIM Cards which includesStudents, fresh graduates.Respondents in the age group of25 to35,47%which is the majority were the newlyMarried couples, junior executives, supervisors had SIM Cards.Respondents in age group of35 to4521% are the doctors, HR mangers, financialmanagers and senior supervisors a few of them use cellular phone for their dailytasksRespondents who had above45years of age made just27% who were the general
  • 54. manager, doctors, HR managers, financial managers and etc.Occupation:SalariedStudent ccupation76%of the respondents were salaried, working in different organization whichincludes the faculties, executive, supervisors, doctors and engineers and managers.9%of the respondents were students a few number of them work part time aftercollege inhotelswedding halls, or in their own shops like selling mobile credit cardsand stationeries.15%of the respondents were self employed running their own business like garmentshop, mobile phone shops, stores and electronic shops.Marital Status:MarriedSingleAnalysis61%shows that most of the respondents who had SIM Cards were married becausethey are more concerned about their families lives and daily work.39%of the respondents were unmarried includes the fresh working graduates, thestudents who study college and want to pursue their further education bought SIMCards.Analysis77%of the respondents were male because the number of male working in differentOrganization, running different businesses, looking after house finance are more thanthe female.23%of the respondents were female because the number of working female is lessas compared tomalein different organizations and also in running different business,the number of females are less in young in age groupof17 to30 years as againstmale
  • 55. Chapter VI Observations & RecommendationsKey Findings & Observations Majority of the respondents had AWCC SIM Cards. Majority of the respondents had their SIM Cards for12-18months. Majority of the respondents are aware of all the plans available with MTNAfghanistan. Majority of the respondents are aware of value added services provided by MTNAfghanistan. Majority of the respondents found information for buying SIM Cards from friendsand families. Majority of the respondent’s consider Call rates when they want to buy SIM Cards. Majority of the respondents decisions were influenced by friends and families whileopening saving accounts in banks. Majority of the respondents were satisfied with their decisions in buying MTN SIMCard. The majority of the respondents recommend someone else for MTN SIM Card. Majority of the respondents were male. Majority of the respondents were salaried (workers). Majority of the respondents fall in age group of25to 35. Majority of the respondents were married.Observations The analysis proves that most of the customers subscribe to MTN because it providesbetter services to its customers using the latest technology and competitive strategies, butthey have to be more active to keep the current customers and find new customers. From the response (personal interaction) received from the customers during the surveyit could be concluded that they are happy till now and are looking forward to havingmuch more better services and continue to keep this strategy and make it better. One of the problems which was told by some of the customers during personalInteraction was that some customer care calls were not answered which is going to havean effect on the customers and on the company. It is observed that influence of friends play a major role in selection of cellular serviceproviders. The current cellular user prefers to switch to other cellular service provider due toreasons like limited coverage, no good network
  • 56. Suggestions and Recommendations As I was working and searching for positive points and suggestions I found manypositives and two suggestions which are as follows: Customers are not answered and guide properly, which has got a bad impact on customers, I would suggest them to control the employees who are working in call centers and talk to their bosses in order to avoid such problems, and warn them if such action is repeated or any complain has been found by the customers he or she will befined and fired. They should consider the following points while training the employees:1. Organization culture, purpose, and strategy: - When new employees are hiredemployees should be told about to promote core mutual respect, honesty, integrity,team work, service excellence, responsiveness sand responsibility at their jobs.2. Interpersonal and technical skills: - As we know that interpersonal skills areimportant especially when it is a service providing organization. These interpersonal skillsinvolve body language, facial expression, attentive listing, answering customer care calls, findsolution to the customer’s problem etc all these must be explained to them in advance during thetraining period. Technical skills involve knowledgeregarding how to handle new technology and take care of customers.3. Product knowledge: - This is the most important key aspect of service quality. Staffmembers must be able to explain effectively the product to customers and also knowhow to position the product. As the company is having its branches only in few major cities it should start openingsome more branches in other cities too which will be better and easy to reach customers,find new customers and understand the market situation clearly and the customersPerception about its services. Holding customer relations programs. They should survey after each three months to know what the customers response is andwhat are they demanding for and having problem with.Attracting customers: - As we see that companies spend a great amount of money, timeand resources to so the MTN should be very careful with the market and the customers
  • 57. to be maintained properly and not lose the current customers but to attract morecustomers.Overall Marketing strategy for M TN:-This marketing strategy will be explained by adiagram shown below:Internal MarketingExternal MarketingServicesEmployeesCustomersInteractive MarketingExternal marketing: Describes the normal work that is to prepare, price, promotions,distribute, etc.Internal marketing: Describes the work to train and motivate the employees to servecustomers well.Interactive marketing: Describes the employee s skill in serving the customers becausecustomers judge services not only by its technical quality but by its functional quality. Satisfying customer complaints: - Sometimes it happens that some customers have asay or are not satisfied with the services provided MTN they don t complain basicallybecause they don t know whom to complain or feel that complaining doesn’t worth theeffort, but they can find these complains and problem only when they go for a survey. Some of the solutions to solve this problem are as follow:1. Maintain a database of the entire customer and should contact those customers havingcomplains further it can analyze the types and sources of complains and further cancontact theses customers and try to solve their complains and problems.2.MTN can have service provider s work more skillfully so that they can handle thecustomers well.3. There should be proper management of advertisement and sales promotion campaignwhich may be helpful in enhancing the sales of MTN.4. MTN should promote several schemes in the market according to the different uses
  • 58. based on occupation segmentation.Learning DerivedThis part of the project contains details of how the various observations made in theorganization can be related to the theoretical concepts learnt throughout the year. Thissection of the project aims at establishing a link between the observations made in theorganization and the theoretical concepts learnt during the year.The following observations have been made at the organization:Organizational Structure:Every company has a different organizational structure, and it s very necessary to maintainsmooth functioning in the working of the company. An organizational structure basically defineshow job tasks are formally divided, grouped, and coordinated. There are some key elements thatthe managers should keep in mind while designing their organizationalstructure.Amidst a vast variety of organizational structures, MTNhas a Bureaucratic structure. This isbecause, as observed, it satisfies all the aspects of the organizational functioning like itshighly formalized, the decision-making is centralized, and there are not many levels in theOrganizations.Work Specialization:Work specialization refers to degree to which tasks in the organization are subdivided intoseparate jobs. It means that a worker is assigned a specific, particular task, which is to be done.There are many benefits of adapting this form of working.MTN also identifies itself on such a paradigm of specialization and has adapted this style ofworking. For instance, a particular employee of MTN, working in the finance would just dothe work of finance. At MTN a worker as far as possible does not interfere in working stylesand patterns of other employees. In this pattern of working, employees are bound to havelimited skills but there are many prose s to this kind of a work design; some of which arelike: the work by the employees can be performed more efficiently and effectively, employeewill be focused. The employee s skills are efficiently used. Employee s skills alsoimprove in that particular job through repetition. It is easier and less costly to find and trainworkers to do specific and repetitive tasks from the company point of view.
  • 59. Centralization:MTN has a centralized form of decision-making system. Centralization means the authorityof making decision is given only to one singular authorities person like at MTN thisauthority of decision-making is given to the M.D.MTN is a company where all the employees are treated equally on one par, as an importantpart of the company, hence there are times when even the employees are asked for theirsuggestions, active participation and contribution in the decision making process. It wasobserved that since the system is centralized, the decisions at MTN are made at a fast paceand there prevails flexibility in decision-making process.Departmentalization:This is the second element is the organization structure after the work design of the companyis selected. Once having divided the jobs according to the workers skills we further on need togroup these similar jobs together so that these common tasks can be coordinated, it s mainlydividing the similar jobs together as departments. As MTN has tailored the work specializationelement so it s necessary even to adapt departmentalization and we have seen in the previouspages that the company has many departments. There are different types of departmentalization sMTN have adapted one of these different types i.e. the function based. Function baseddepartmentalization is used in the service division of the company, thedifferent departments under functional based are the Accounts department, Human Resourcedepartment, sales, billing. Here at MTN there exists a functional departmentalization. It can beinferred so because here the departments are divided by the similarity of the tasks performed by aparticular group of employees. For example all of those belonging to the accounts departmentwill perform jobs related to the accounting of the firm and likewisewith all the other departments of the firm
  • 60. Formalization:MTN is a highly formalized company. Each and every employee in the company knowswhat he/she is supposed to do. All the job details like what they are supposed to do, what theyare not supposed to do, how much work they have to do, what time their work starts, when itends all rule and regulations are set and all the employees have to strictly abide by the set rulesand regulations. This formalized wok pattern enables the company to achievethe predetermined uniform and desired output.Organizational CultureIt s a set of values, standards, ethics, and facilities given to the workers etc., which make oneorganization different from the other organizations.The culture of MTN is like, what a perfect company which is excellent in its performancehas. They have high values and morals set. They consider their employees a very importantpart of the organization. They give them all the facilities like bonuses, they even provide theemployees with health club facility, and many more facilities are provided.Organizational culture is defined as a common perception held by the organization smembers and is a system of shared meaning. At MTN all the employees believe in servingthe customer in the most efficient manner and they have shaped their culture keeping this inmind.Leadership styles:The managers at MTN have high concern for productivity as well as for people. TheManager treats his subordinates as his friends and understands their difficulties and tries notto overburden them. The Managers here at MTN Afghanistan are a mixture of bothTransactional and transformational leader as they guide and motivate their followers in thedirection of the established goal by clarifying role and task requirements and at the sametime providing individual consideration to their subordinates. They are also visionaryleaders as they are able to create and articulate a realistic, credible attractive vision of thefuture for all their employees. It is also seen that the managers here are employee orientedleaders because their main emphasis is on the interpersonal relationships of the firm. Theytake a very keen interest in the needs of the employees and also accept individual differencesamong the members.
  • 61. Recruitment:The firm has no stringent recruitment strategies. If at all there is a vacancy for a post in the firm,they put out an advert in the news paper and the required response comes in. These responses arethen filtered and only the best few are selected (those that most closely fit the requirements of thepost) and these candidates are then called in for a personal interview. And then from here thefinal selection if made based on the candidates performance in the interview. The firm iswelcome and open to young people especially in the marketing field where the energy andenthusiasm is most sought. And in the administrative field the experience would play a morevital role. If anyone needs a chance they give it to them. If they prove themselves then they aretaken in. if however their performance is not up to the expected standards even after manyopportunities then they are let go of. This helps them tobuild their professionalism in the firm itself without any previous restrictions.Job satisfaction:All the employees in MTN seem to be satisfied, as the employee turnover of the companyseems to be next to negligible. The reason could probably be mutual support, compatibilityand understanding between the employees; better and lucrative job prospects and higherfinancial opportunities; no ego clashes; satisfactory pay roll structure offered, pay forperformance, family feeling and so on.Motivation:Motivation may be defined as the propensity, or the level of desire of an individual tobehave in a certain manner at a certain time and in a certain situation. That means, that beingmotivated means that a particular behavior has to follow. Motivation in MTN is observed to bethe willingness of an employee to respond to the organizational and company requirements. It sseen that, the more positive the individual s motivation towards theorganization and the company s requirements, the more effective is his performance. But ona whole, it was observed that, there s a lot of positive vibes of motivation coming from the
  • 62. management front of MTN towards its employees.Performance evaluation:At MTN, Performance Evaluation is carried out every year in order to find out whether anemployee deserves a promotion or a termination. These Performance Appraisals are carriedout to also identify training and development needs. The main aim of these appraisals is toprovide feedback to the employees about their performance and their conduct at work. Theseappraisals act as a basis for reward allocations. Performance appraisal of each employee isdone by his or her immediate superior. Every minute detail is taken into consideration whilepreparing a performance appraisal.Decision making process:The decision making process takes place at two levels in the company major decision and minoror small time decisions. The type of decision making and goal setting approach used by thecompany is of the traditional goal setting type, with a means end chain following it and not themanagement by objectives approach followed by most of the companies today. The traditionalgoal setting approach refers to the process of setting goals in which goals are set at the top levelof the organization and then broken down into sub goals for and at each level of the organization,which is then followed by a means end chain referring to an integrated network of goals in whichthe accomplishment of goals at one level servers the, means of achieving the goals or ends at thenext level. At MTN the major decisions of thecompany are taken by the M.D.Communication Model:In today s fast moving world everything seems to be moving on just the way one
  • 63. communicates. As far as communication in relation to an organization is concerned it servesfour major functions in an organization controlling and motivating the employees, emotionalexpression and providing information to the employee. Thus helping the organization toincrease its productivityThe main objective of the communication model at MTN is to establish a procedure forinternal communication for the effectiveness of the quality management system.Here in MTN internal communication is established for three means- from individual department to top management- from top management to individual department- from department to departmentCommunication within a particular dept is maintained through personal discussion. But in acentralistic point of view, the communication takes place in the company in well organizedformal, systematic free flow pattern, with very little barriers to communication.The communication network that the channel to which the information flows in this organizationis formal network, which is mainly used in the vertical communication pattern, that helps in themovement of the authority chain and also limits the communication to taskrelated communication.Strategy:An organization structure is a tool to help the management of a company to achieve the goals ofthe company. Since objectives are derived from the organization overall strategy, it is closelylinked to each other.MTN as an organization mainly makes use of the strategy of costminimization. Cost minimization is a strategy which emphasizes on high cost control, avoidanceof unnecessary expenditure, marketing expenses and price-cutting. As it believes that the costminimization helps in making economical use of material, labor and time in themost effective and efficient manner thus increasing the productivit
  • 64. ConclusionTo conclude my project report I would like to say that it was really a great experience workingwith MTN and I really did gain a lot of knowledge and experience not only regarding my projectbut also other things regarding other functions and found the reasonsthat why people want to go for particular brand.I really appreciated working in such a prestigious and famous company in the world.I am very much thankful to each and every person who is working there especially my guideEngineer Abdul Azim Atarud the one who really and mostly encouraged and helped me withmy project.Wrapping up the survey conducted and the analysis of the survey it can be said that MTN isfacing major competition from Etisalat, Roshan and AWCC. The reason why MTN is facingmajor competition is: All the companies are giving good returns like MTN They also have flexible and customized products. They are also trying to build brand through advertisementsHence the outcome of the survey conducted is the fact that MTN mainly faces majorcompetition from Roshan, AWCC and more specifically from Etisalat.
  • 65. Annexure Questionnaire1. Which cellular brand are you using?a.Etisalat b. Areeba c.Roshan d. AWCC2. How long are you using this brand for?a. 1-6months b. 6-12months c. 12-18months d. more than18months3. Do you know all the plans available with your brand?a. Yes b. No4. Do you use value added services?a. Yes b. No5. If you go for second connection which cellular brand you will go for?a.Etisalat b. Areeba c.Roshan d. AWCC6. Where did you find information about this cellular brand from?a. Internet b. TV c. Newspapers d. Friends e. Family f. Others: Pleasespecify.7. Which facilities did you consider while choosing this cellular brand?a.Service speed b. Customer care c.Coverage d.Call rate e. Internet (G PRS)f. Others: Please specify8. What external factors did influence your decision choosing this cellular brand?a. Family b-friends c. The organization where you work d. Marketing Activitiese. Occupation f. Others: Please specify.9. How do you feel about your decision choosing this cellular brand?
  • 66. a. Satisfied b. Average satisfied c.Unsatisfied10. Will you recommend someone else to go for this brand?a. Yes b. NoT nky f y r k c pea o ha ouor ou ind oo rt n iNameMarital Status.Occupation...............................................Sex:a. Male b. Female Age: a.17-25 b. 25-35 c. 35-45
  • 67. Bibliography1) World Wide Web2) Marketing Management by Philip Kotler5) Services Marketing by Christopher Lovelock6) MTN brochures and Magazines