Telenor Pakistan<br />Telenor Pakistan is 100% owned by Telenor ASA and adds on to its operations in Asia together with Th...
Low centralization
More training or experience
Small span of control.</li></ul>Interdependence among Departments<br />Most of the departments of Telenor are having poole...
Customized packages available for every market segment e.g djuice for price conscious class, smart calls for routine users...
Implementation of WTO will result in open & competitive pricing even in the service sector exclusively in telecom.
There is an imbalance between prices of inputs & outputs.</li></ul>COMPETITIVE ADVANTAGE<br />In order to gain a competiti...
Bonus/commission
Long-term incentive plans </li></ul>In addition, Telenor offers a total package that may include insurance, recreational a...
Ufone
Warid
Zong</li></ul>657225142240<br />2190750208280<br />32480251238254457700123825<br />1343025237490<br />332422545720<br />MO...
Decision-making is highly centralized and empowerment is not appreciated as much but to some extent.
Telenor has adopted formal rules and procedures whereas some of work is done informal between departments.
The important success factor for Telenor is differentiation.
Because the environment is becoming tougher  with each Passing day so to enhance their competitiveness & profitability it ...
The employees of the organization are committed to their company and the company is taking care of the need of its employees.
It has many major competitors which are trying their hard to get the market share, but all the strategies of the competito...
As the organization's structure is highly Functional, and the Environment is currently stable, organization is suited well...
The organic structure is being used in the Telenor Pakistan but organization is needed to move to Mechanistic structure fo...
There should be an effective employee exchange program even at the level of middle management so the organization can shar...
Introduction of employees stock options would further enhance the motivation level because then the employees too would ha...
In their workforce there should be a quota for the disabled people. This is currently being practiced in the parent compan...
Z:\Telenor  Pakistan Final
Z:\Telenor  Pakistan Final
Z:\Telenor  Pakistan Final
Z:\Telenor  Pakistan Final
Z:\Telenor  Pakistan Final
Z:\Telenor  Pakistan Final
Z:\Telenor  Pakistan Final
Z:\Telenor  Pakistan Final
Z:\Telenor  Pakistan Final
Z:\Telenor  Pakistan Final
Z:\Telenor  Pakistan Final
Z:\Telenor  Pakistan Final
Z:\Telenor  Pakistan Final
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  1. 1. Telenor Pakistan<br />Telenor Pakistan is 100% owned by Telenor ASA and adds on to its operations in Asia together with Thailand, Malaysia and Bangladesh.<br />Telenor Pakistan launched its operations in March 2005 as the single largest direct European investment in Pakistan, setting precedence for further foreign investments in the telecom sector. The company has crossed many milestones and grown in a number of directions, making Telenor Pakistan a leading telecom operator of the country.<br />They are the fastest growing mobile network in the country, with coverage reaching deep into many of the remotest areas of Pakistan. In the most difficult terrains of the country, from the hilly northern areas to the sprawling deserts in the south, at times we are the only operator connecting the previously unconnected. <br />They are keeping ahead by investing heavily in infrastructure expansion. With USD2 billion already invested, they have extended agreements with our vendors for network expansion and services until 2009. The agreements, with a potential to result in USD750 million worth of orders from Telenor Pakistan, are some of the biggest of their kind in the industry.<br />3569335694690They are spread across Pakistan, creating 2,500 direct and 25,000-plus indirect employment opportunities. They have a network of 23 company-owned sales and service centers, more than 200 franchisees and some 100,000 retail outlets.<br />Telenor ASA is an international provider of high quality telecommunications, data and media communication services. It ranks as world’s 6th largest mobile operator above 170 million subscribers in its mobile operations. Telenor Pakistan is 100% owned by Telenor ASA and adds on to its operations in Asia together with Thailand, Malaysia and Bangladesh.<br /> VISIONOur vision is simple: Telenor exists to help customers get the full benefit of communications services in their daily lives. We're here to help.<br /> MISSION“Telenor is a customer focused business mobile service operator/telecommunications Company that seeks competitive advantage in quality and valued added service in both prepaid and postpaid categories through state of the art technology. Telenor relies on building trusting relationships with customers, owners, employees and society in general”<br />PRODUCTS & SERVICES<br />Products:<br />Telenor provide products of two types<br />Prepaid<br />Postpaid<br />Prepaid packages are<br />Dejuice<br />Talkshawk<br />Postpaid offers are<br />Persona individual<br />Persona karobar<br />Services:<br />The Telenor Group provides a wide range of innovative services that are available throughout the world. Here is a selection.<br />Mobile Fun<br />Following are the mobile fun service of Telenor.<br />4234180260985Mobile Sports<br />And he scores!!! You just got a text message alerting you about a sportive highlight. Luckily you don’t have to wait until you get home to watch that winning moment – you can watch it directly on your mobile.<br />30480275590Mobile Music<br />Right now there are 1 million songs ready to download to your mobile. You can share these digital rights management-free songs with your friends and family or transfer them to your mobile phone, mp3 player and PC. Share that funky music!<br />Mobile TV <br />467360060960Keep your favorite TV shows available in your pocket and watch them anytime, anywhere. You can easily access live TV channels on the move so you don’t have to miss out on any of the action. Keep yourself updated on news, sports, entertainment and more, directly on your own mobile phone.<br />30480248920Mobile Communities <br />Get out and about, and stay connected and in touch with your friends. With Telenor you can access communities such as Windows Live MSN and Facebook on your mobile and keep your friends close anytime, anywhere.<br />Mobile Interaction<br />Following are mobile interaction services providing by Telenor.<br />Community Information Centers<br />-5270513970500 Community Information Centers (CICs) offer high speed Internet access to rural areas in Bangladesh, where the nearest Internet facilities would otherwise be at least 20-30 miles away. The service was set up by Telenor's Bangladeshi mobile operator Grameenphone.<br />4768850308610Health Line<br />Health Line provides 24/7 access to medical services for mobile users in remote areas, several miles from the nearest doctor. All Grameenphone subscribers in Bangladesh can get medical assistance directly over the phone.<br />19050367030ApnaPCO - Share a Mobile<br />Can you imagine life without a phone – at all? That is the case for many people living in some of the most rural communities in Pakistan. ApnaPCO is a business-in-a-box solution, which allows people in remote areas to share a mobile phone where there are no other alternatives – making life a little easier. <br />4768850319405TeleDoctors<br />Are you a Telenor Pakistan subscriber and in need of expert medical advice? Simply dial 1911 to get in touch with experienced doctors who can help you with your problems – wherever you are in the country.<br />19050354965Mobile in Flight<br />By using AeroMobile secure mobile communication technology you can now call your colleagues, customers, friends and family whilst in flight from your own mobile phone.<br />Mobile at Sea<br />4457700139065Most people have experienced little or no connectivity at sea.  Maritime Communications Partner enables mobile phone coverage by installing and operating the ship borne radio networks, linking the vessels with public networks via satellite.<br />Mobile Marketing<br />-14732026035Register your phone number with your favorite shops and services, and receive sms’s with up to the minute information on the latest events and offers. Don’t get first in line, avoid the queue altogether!<br />Child Internet Protection<br />434340071755The Security Shield technology offered by Telenor protects children from accessing sites that have not previously been approved or from coming into contact with unsuitable people on the Internet. Children have their own login with a protected desktop controlled by parents.<br />Child Sexual Abuse Filter<br />In areas with limited access to regular banking services and the Internet, people can use their mobile phones to transfer money – anywhere, anytime. The easy accessibility of the service will bring new opportunities to DiGi subscribers with insufficient access to regular banking services.<br />Mobile Commerce<br />Mobile commerce services of Telenor are as follow:<br />Easy Paisa<br />-1714592075Easy paisa is a unique service offered by telenor.by easy paisa you can send your mony nationwide to your lovedones.you can send your money by easy paisa either you are a telenor customer or not.i.e this service is for all the only requirment is that you shoud have a valid nation id card.<br />4528820400685CellBazaar - Marketplace in Your Pocket<br />Using CellBazaar, buyers and sellers in Pakistan can trade basic goods from their mobile phones, bringing the benefits of information exchange, community networking and one-to-many trading to a previously unwired rural population.<br />-17145382270BillPay - Pay by Phone<br />BillPay is an innovative service, the first of its kind in Pakistan. It provides an electronic bill payment service for utilities services and for other companies. Customers can pay their utility bills and other bills through this service regardless of whether they own a mobile connection or not.<br />Research-products in near future<br />Working with academic and industrial partners worldwide, Telenor is constantly developing, testing and demonstrating new mobile services and technology solutions. <br />The Telenor Research & Innovation unit is an innovation hub for the Telenor Group. With three locations in Norway and a satellite in Kuala Lumpur, Malaysia, Telenor R&I employ 236 people from 23 countries.<br />Our main research areas are:<br />33147002540 <br />Wireless BroadbandFutureSIM<br />6858001384303314700138430<br /> <br /> <br /> Connected Objects Content and Service<br />CORE VALUES<br />Core values in Telenor Pakistan are<br />322580106045<br />CULTURE IN TELENOR<br />Telenor has an Adaptability Culture, with flexibility being the need of the organization and strategic focus being external. The organization has a clear vision, with the goal of increasing growth, profitability, and market share. The employees are paid for performance. The individual employees are made responsible for contributing in gaining the organization's goal, and in return they are rewarded with incentives thus keeping the employees motivated. The organization has Award Functions, as a part of the organization's culture.<br />PEOPLE<br />Telenor Pakistan consists of energetic, youthful and dedicated employees aged 27 to 28 on average. An appropriate match is required between the culture and employees at recruitment and hiring. If People Excellence (Human Resource Department) feels that a person will not be unable to adjust into the organization’s environment, even if he/she is performing functionally well, the person is rejected. The dynamic group of people, sharing similar mind-sets, love being with each other and meet on other occasions if unable to meet during work-hours. They even stay back late, employees can be seen roaming around till 9 at night.<br />Primarily the culture comes from the top management. CEO of Telenor Pakistan is humble and cooperative. The employees get the message that if the top management is so accommodating then the employees should behave similarly. What is important to the CEO becomes important for employees to identify completely with the organization. There are four foreigners in the top management but this does not create communication barriers. They are extra humble to others while individuals of a local origin are extra sensitive to them so no one feels alienated. The values of humbleness and free interaction in putting forth ideas lead to a harmonious culture and efficient communication. The management is easily accessible to discuss various issues. It is difficult to distinguish between them as the culture is so homogeneous that it keeps every one at par with others.<br />ORGANIZATIONAL STRUCTURE<br />The structure of Telenor is mechanistic structure. As being told, during the interview with Human Resource Manager, there are strict rules and regulations, which the company's employees have to follow. Decision-making is highly centralized and empowerment is not appreciated.<br />The structure of Telenor is functional as there are seven departments. A Senior Executive Vice President or Executive Vice President heads every department. Each executive in charge is responsible for all the services that are related to him. Every department is headed by a separate manager, which controls overall operations of that department.<br />Flat structure for each department is adopted to enhance mutual operations and co-operations between lower staff and managers. Wide span of control in whole organization makes it easy for lower staff to access top managers and enhance coordination between them.<br />For maximum efficiency, the overall structure of organization is functional as all human knowledge; skills and abilities with respect to specific activities are consolidated in a single department.The organ gram of Telenor Pakistan is given as:<br />TYPE OF STRUCTURE: VERTICAL DIFFERENTIATION <br />HIERARCHICAL LEVELS<br />There are seven hierarchical levels as the size of the organization approaches 2500 to 3000 employees. Roles and responsibilities are clearly defined at the time of joining the organization; employees are selected against defined criteria. Roles can be added later but employees have a fair idea about their job responsibilities from the beginning. <br /> Hierarchical Levels At Telenor Pakistan<br />Seven layers do not create communication or motivation problems due to the open culture. There are no instances of de-motivation though in certain areas like Customer Relationship Department or Customer Service Centre different customer queries and complaints can raise frustration levels. Managers in these departments intervene to solve problems.<br />Whenever an employee has a new idea, he/she is encouraged to approach the management and share it with them. Idea drop boxes are also placed at various locations where employees leave their suggestions. The Communications Department works out if the ideas can be implemented and then discusses them with the employees. There is also a formal platform at the group level known as SEED where innovation is encouraged and new ideas about revenue concepts and cost efficiency can be discussed. Employees are welcome to participate and submit their ideas. If the ideas handed in are feasible then they are implemented in the organization (at country level or global level, depending on the nature of the proposal). Employees are then rewarded financially for their helpful contributions. <br />SPAN OF CONTROL<br />Span of Control is determined by the role and job responsibilities of managers. It varies from department to department. On average, the span of control is 4-5 people under a manager.<br />INTEGRATING MECHANISMS<br />Cross-functional teams are a major integrating mechanism. Further there are temporary project teams. No ad-hoc committees have been formed to date. Team-building is enhanced by Away Days when members of different divisions and departments take some days away from work to meet other geographically spread employees of Telenor. Sometimes the whole department goes away from work for 2-3 days to have fun. Employees get to know those with whom they have communicated before but not met in person. Formal team evaluation does not exist. Employees on teams, for instance finance teams, are rewarded individually. <br />CENTRALIZATION AND DECENTRALIZATION<br />Apart from STRATEGY, all other functions are de-centralized. People at Telenor Pakistan are motivated to take their responsibilities especially in cross functional projects. Managers in each department oversee that the employees take up their roles and duties and their performance is monitored accordingly. If an employee is loosing focus from his core job by taking added responsibilities, he/she is instructed to re-adjust his/her priorities. <br />STANDARDIZATION AND MUTUAL ADJUSTMENT<br />At Telenor Pakistan, the level of standardization and mutual adjustment varies across functions. Generally strict obedience to rules is not required as long as results are not affected. As long as individual responsibilities and deadlines are met, there are flexible hours of work. Work is important instead of the number of hours worked. Employees can select their work timings which can even be from afternoon to evening. Instead of being bound by office hours, a sense of responsibility is inculcated in them to achieve self-assigned goals. This brings a sense of comfort in working in such organizational structure.Rules and procedures are present to control the behavior of employees and to facilitate smooth working of the organization. A level of standardization is required to be maintained in certain vital functions such as Budget Control. SOPs are documented in the case of the financial control or HR related policies.<br />Genuine requests from external customers are taken into account by the CRO (Customer Relationship Officer) at Service Centers. The CRO does all he/she can or is possible within authority to process the request or complaint. If the customer’s request is beyond the authority of the CRO, then managers are there to aid the customer or provide some sort of non-monetary compensation to appease him. <br />Formalization<br />Although the organization has a functional structure, the level of Formalization is not very high. Written Rules & Procedures do exist at the office Level, but at higher levels, Informal channels of communication are most visible. The Policy Manual currently needs to be updated. Telenor has well defined job descriptions that give the details of every job.<br />Specialization<br />Telenor is highly specialized, since the organizational tasks are subdivided into separate jobs and there is a visible division of jobs between employees.<br />Standardization<br />Standardization is high at Telenor, the procedures are well defined, and the employees perform their tasks in a uniform manner. Standardization is mostly visible in lower and middle level of employees.<br />Centralization<br />Strategic Decisions are highly centralized, where as certain decisions may be decentralized to lower levels. For example, HR decisions are highly centralized. On the other hand decisions taken for the marketing of brand are highly decentralized. The decision is done on the spot, whether to display the Billboard on that specific place or not.<br /> Professionalism<br />Telenor has a high level of Professionalism. Formal education and Training of the employees and requites is given major importance.<br /> Complexity<br />Since the organization has a Functional structure as described earlier and has several levels of hierarchy.<br />DEPARTMENTAL DESIGN<br />Departments following the routine technology have the Organic structure with following characteristics:<br /><ul><li>Low Formalization
  2. 2. Low centralization
  3. 3. More training or experience
  4. 4. Small span of control.</li></ul>Interdependence among Departments<br />Most of the departments of Telenor are having pooled interdependence. So the success of every department contributes to the success of organization as a whole. Mediating technology is used which provides products or services that mediate or link clients from external environment and, in so doing, allows each department to work independently<br />ETHICAL VALUES <br />Since recently, the organizations' major ethical focus is on the physical environment in which it exists. Telenor has no such by-product that would end up polluting the environment. Hence the organization is not a burden on the environment.<br />BUSINESS OBJECTIVES<br />Objectives 2006-07 2015 Market Share in terms of Subscribers 10% 40% Market Penetration 9% 30% Market Share in terms of Revenue 7% 30% Unprompted Brand Awareness 20% 90% <br />MARKET SEGMENTATION AND POSITIONING<br />Segmentation is the process of dividing the total market for a good or service into several smaller, internally homogenous groups. Since Telenor is a customer oriented and quality driven company, it segments its market on the basis of various different dimensions.<br />Market dominated by low-end, low-ARPU customers (largely Untapped)<br />Relatively large emerging middle class segment (Basic in Telenor Terminology)<br />Strong youth culture with needs similar to other markets.<br />Private postpaid almost non-existent.<br />Small but profitable (high ARPU) Corporate/SME segment.<br />Women a largely untapped segment.<br />Segmentation is the process of dividing the total market for a good or service into several smaller, internally homogenous groups. Since Telenor is a customer oriented and quality driven company, it segments its market on the basis of various different dimensions.<br />Market Segmentation & Product Positioning Analysis<br />Market SegmentTodayFuture 4 years EstimateExisting ProductsProfitability %Youth/ students25%27%Djuice, Talkshawk29%Women10%20%TalkShawk21%Financially Constraint40%23%TalkShawk, Telenor Azadi20%Corporate/ SME25%30%Post Paid -Packages30%<br />Companies positioning against competition<br />ParametersMobilinkTelenorProduct Life Cycle Maturity Growth Market share % 59% 7% Coverage 900 cities 1100 cities Product Portfolio Jazz Octane, MobilinkIndigo, Ladies First, TalkShawk, TelenorAzadi, DJuice Customer Base 17.2 million 3.6 million Marketing Operations Excellent Average <br />Segmentation Strategy<br />Telenor is using multiple segmentation strategy and developing separate marketing program for each segment because different customers are looking for different benefits from different services they purchase. Estimating the market potential of each segment includes asking how many prospects with how much purchase power there is for each particular want. <br />Market to Segment<br />Regarding Pakistan different markets are segmented by Telenor on the basis of:<br />1. Geographic<br />2. Demographic<br />3. Psychographic<br />4. Behavioural<br />Geographic (Area wise)<br /> In Pakistan Telenor is segmenting the whole country region wise. There are different regions in Pakistan. Telenor is providing service specially in Northern Areas and in Rural areas of Sindh, Balochistan and Punjab where others are not providing services.<br />Demographic (Life style)<br />Age:<br /> Telenor knows that needs and wants of customers changes as they go through life. So, with change in age Telenor introduces different services. The main segmented market is the young people of age 15-30.<br />Pre paid-mostly Students, youngsters and middle class<br />Post paid-Business Class, Industrialists<br />Pre paid:<br />Talkshawk<br />Talkshawk Her SecondFor 15-22 yrs<br />Talkshawk 30 SecondFor 20-27 yrs<br />Talkshawk Her MinuteFrom 25- onward<br />Djuice<br />DjuiceFrom 15-24<br />Djuice Jaagtay rahoFrom 18-24<br />night<br />Post paid:<br /> Persona<br />This Post paid service targets the Business Class mainly. There are four different plans which varies with the amount of monthly line rent.<br />Persona From 32-55<br />Income:<br /> Telenor also segments the customers on the basis of income level. Different packages are there for people of different income level<br />Pre paid:<br />Talkshawk<br />Talkshawk Her SecondFor Students<br />Talkshawk 30 SecondFor Students and Job people (low income)<br />Talkshawk Her MinuteFor Job people<br />Djuice<br />DjuiceFor SMS lovers Students<br />Djuice Jaagtay rahoFor SMS lovers & who like to talk them in night<br />Psycho graphically (Personality)<br />Psychographic segmentation goes beyond demographic. Telenor doing segmentation on the basis of customers mind set. Telenor is segmenting the customers as they are giving different packages for different personality. There are seven packages of Telenor on the basis of different call & sms rates.<br />Behavioral<br />Telenor is segmenting the customers according to their behavior, mind set and thinking. Different people have different behavior, different mind set different thinking Telenor is segmenting behaviorally by offering different package in pre paid and different plans in post paid. Singers are liked by people the singing culture is being promoted in our country so they hire singers for their promotions to hit customer’s mind.<br />ENVIRONMENT<br />EXTERNAL ENVIRONMENT<br />Environmental Domain<br />Telenor Pakistan is an open system and operating in a competitive environment. External environmental variables like telecommunication industry competitors, government rules and regulations, customers, and other stakeholders etc do affect the Telenor domain.<br />TASK ENVIRONMENT<br />Telenor's task environment includes Industry Sector,, Market Sector, Human Resource and these sectors have a direct impact on the ability of Telenor to achieve its goals.<br /> Industry Sector<br />The major competitors of Telenor Pakistan are Mobilink, Ufone, and Warid While Paktel and Instafone are also competitors of Telenor but right now they are not in position of being the headache of Telenor.<br /> Market Sector<br />Market sector or the customer sector is the main sector that influences all the telecommunication companies. For a telecommunication company it is very important to satisfy its customer and to make long term relations with them.<br />Marketing department has the responsibility of establishing long term relationship with the customers through public relation. Marketing department also has the responsibility of advertisement which is very important to grasp the attention of its customers.<br />Human Resource Sector<br />Telenor Pakistan has been very successful in obtaining Human Resources; hence the organization is very successful in this sector. There is a separate human resource department to hire new employees, to retain them with the organization and satisfy them.<br />GENERAL ENVIRONMENT<br /> Financial Sector<br />Telenor has no issues obtaining the finances. The organization has no debts; hence it is pretty stable in this sector. Teienor Pakistan is the subsidiary of Teienor International that is among the world largest telecommunication firms therefore, Teienor is having to financial problems.<br />Socio-Cultural Sector<br />This is the sector that so far has influenced Teienor Pakistan more than any other factor. Telenor's parent company, which is Teienor international, is mainly owned by Norway and Denmark. As Pakistan is an Islamic country, so after the publication of cartoon in the newspapers of Norway and Denmark related to Holy Prophet S.A.W influenced Teienor Pakistan. The offices of Teienor were burnt down in Pakistan. After that mishap, Teienor built its goodwill with great hard work and consistency.<br /> Technology<br />Telecommunication industry is influenced heavily by the technology introduced and being used in the market by the company and its competitors. So far Telenor is dealing well with this factor and it is far ahead as compared to its competitors.Mobile TV is one example and Edge service in another one. GPRS and WAP is more fast as compared to other networks. So, Telenor is having no problems related to technologies.<br />5579745-447040ENVIRONMENT UNCERTAINTY<br />The environment of Telenor is Complex and Unstable, with high uncertainty. There are only many external elements to compete with, and they all are dynamically active.<br />Adapting to Environmental Uncertainty<br />The structure of Telenor suggests that it is adapting to environmental uncertainty. For this it has increased the number of its departments and positions, and also pays emphasis on communication and coordination between these departments.<br />Framework for Organizational Responses to Environmental Uncertainty<br />The Environment for the organization is Complex. The organization has many competitors, like Mobilink, Warid, Ufone etc., and the competition is high with its competitors. Due to this reason the environmental changes become unstable. To counteract the changes in the environment the organization has organized into Cross-functional Teams. The Uncertainty is high, and hence the organization has an Organic Structure.<br />‘SWOT’ ANALYSIS<br />Strengths<br /><ul><li>First one to bring the concept of "Mobile TV" in Pakistan.
  5. 5. Customized packages available for every market segment e.g djuice for price conscious class, smart calls for routine users, telenor persona for upper middle and ellite class.</li></ul>State of art technology e.g they are up with the latest networking underground fiber optical network.5568950-436245<br />Widest network coverage after Mobilink.<br />The first ones to provide free roaming facility during hajj program. <br />Telenor is operating in more than 200 destinations with more than 1.7 subscribers all over the Pakistan.<br />Weaknesses<br />Pakistan has no institute that provides formal education in this field regarding networking and other core technical competencies so they are required to have a major chunk of their employees trained from foreign institutions.<br />Poor call center performance. Customer service center is not up to the commitment and most of the customers' calls are not served.<br /> Comparatively high prices in Telenor persona (postpaid) as compared to Warid and Ufone.<br />Poor visual quality of Telenor mobile TV, as there is a buffering problem and stills are received instead of the proper videos Franchise distribution system is not up to the mark. This is the problem with almost every telecom company in Pakistan. Lack quality in record keeping at franchises and other distribution networks.<br />Opportunities<br />Participation within the growing industry.<br />Ample opportunities are available in the telecom sector and still many of the areas are not being covered.<br />Increasing market share.<br />5558155-436245<br />Product line expansion.<br />Cost discount strategies. <br />Product innovation.<br />To become customer size specialist.<br /><ul><li>Constant repositioning.</li></ul>Threats<br />Monopoly of PTA, at any time PTA can alter the facilities of telecom sector.<br /><ul><li>Immense cut-throat competition operating in kinked demand oligopoly.
  6. 6. Implementation of WTO will result in open & competitive pricing even in the service sector exclusively in telecom.
  7. 7. There is an imbalance between prices of inputs & outputs.</li></ul>COMPETITIVE ADVANTAGE<br />In order to gain a competitive advantage one has to align competences and strategies. Highly motivated employees and flexible culture enables them to achieve an edge over competitors.<br />Core Competencies<br />The Human Resource at Telenor Pakistan is their core competency. The reason is that the employees create a culture and all the achievements of Telenor are attributed to its flexible culture. It is necessary to motivate and retain this asset of the organization. For this purpose, training and compensation is provided to employees along with other motivational techniques. <br />Human Resource Strategies:<br />Training<br />The methods of training differ from function to function. On-the-job training is required in the Customer Relationship Department (CRD) and similar system training in the IT Department. Management Training Programs combine experiential learning with theory. Leaders are chosen according to the following role expectations:<br />LEADERSHIP EXPECTATIONS<br />Compensation<br />The core compensation includes:<br /><ul><li>Base salary
  8. 8. Bonus/commission
  9. 9. Long-term incentive plans </li></ul>In addition, Telenor offers a total package that may include insurance, recreational activities and other benefits adapted to the local market and individual employee’s need. <br />Managers are rewarded according to the achievement of assigned goals. Apart from monetary rewards, such as variable pays/increments, other motivational tools such as recognition (Employee of the Year rewards) are used. <br />Employee Motivation<br />Underperforming managers are encouraged through coaching and counseling by their respective directors or the director of People Excellence. The turnover is not high as compared to that of the industry. There is no defined employee exchange program. Employees performing exceptionally well are taken up to work in the Telenor Group. <br />Relocations are common in the organization: employees are transferred from People Excellence to Finance or from Procurement to Customer Relations. Investment per employee is placed at the higher end of the industry.<br />PERFORMANCE APPRAISAL SYSTEM:<br />Policies at Telenor for Performance Appraisal<br />Objectives: The purpose of this policy is to provide a formal review program to evaluate work performance and to promote communication and discussion of job performance. The intent of these discussions should be to review current job performance and responsibilities, set goals, and discuss future opportunities with reference to past performance at Telenor.<br />The Objectives of the Performance Review Program are:<br />To measure work performance<br />To motivate and assist employees in improving their performance and achieving their personal/professional career goals<br />To identify employees with high potential for advancement<br />To provide objective information for making decisions on salary increases, promotions, bonus and transfers.<br />To identify employees training and development<br />To provide a solid path for career planning for each individual<br />Frequency of the Performance Review: Informal performance discussions should be conducted frequently as and when the need arises. These discussions will provide the basis for an objective summarization of performance during formal Performance Reviews and allow more time for discussing future plans and organizational as well as personal objectives. The supervisor is encouraged to make notes on pertinent points discussed and to place those notes in the employee’s personnel file.<br />Formal written performance reviews will be conducted with all employees annually. Notification along with Performance Evaluation Forms will be sent from the Human Resources Department in advance with the scheduled performance evaluation date.<br />All employees will be reviewed at least once at confirmation. Therefore, Performance Reviews will be held on an annual basis from the date of hiring or more often if desirable to do so. The supervisor will receive notification of the scheduled review period from the Human Resources Department.<br />Practices at Telenor for Performance Appraisal System: <br />Telenor conducts performance appraisal in order to evaluate their employee’s current performance or past performance relative to company’s performance standards. Telenor try to adapt the performance appraisal in which their employees understood what his or her performance standards were and that the supervisor also provides the employee with feed back, development, and incentives required to help the person eliminate performance deficiencies or to continue to perform above par.<br />There are many performance appraisal methods. Telenor uses the computerized performance appraisal method. <br />In Telenor the performance appraisal of employees is conducted in December. The Telenor HR department has developed a performance appraisal sheet and has downloaded it on the intranet of Telenor so that the supervisor performs the evaluation of the employees. When the supervisor completes the evaluation, he will send the performance appraisal sheet to the employee for the affirmation with the ideas of the supervisor if the employee does not agree with the supervisor he will not sign the PA sheet. When the last date of submission of PA sheet is passed then the HR department asks the supervisor and the employee about the problem and resolves the problem. <br />Performance Review: <br />At TELENOR a review is intended to be an open and frank discussion between an employee and their Team Leader/Manager. Generally there are two elements: first is the element in which discussion takes place over the strengths and areas which need to be developed as displayed by the job holder over the past 12 months. The performance is of course judged comparing the performance against the core indicators of Job. The second element is concerned with discussing the training needs/inputs activities that are considered to be appropriate to help the jobholder overcome some of development areas discussed in the review and also those activities that are deemed appropriate to build upon their current strengths.<br />Appraisal categories<br />Appraisal categoryDefinition of category% Of total numbers of employees which can be rated in this category 1.expertIndicates exceptional performance15%2.very GoodIndicate performance that consistently meets the requirements of the position,” very good” indicates the individual is on track for advancements10%3. GoodIndicated performance that requires improvement (i.e. meet requirements without initiative or advancement)8%4. Basic Performance to be improved (hardly meets requirements)5%<br />Reward System:<br />TELENOR considers its employees not just as a cost but also as a resource in which the company has invested from which it expects valuable returns. Pay policies and programs are one of the most important human resource tools for encouraging desired employee behaviors. The advantage of paying above the market average is the ability to attract and retain the top talent available, which can translate into highly effective and productive work force. The incentive schemes and incentive objective have been clearly communicated to all individuals and weekly progress report is also communicated to all concerned.<br />Compensation and benefit plans:<br />Telenor has a separate department for compensation. That department deals in staffing and compensation planning. First of all this department has all the information regarding who is being employed and how it is performing. What so ever promises are made to the employees, they know that. So it’s easy for them to design compensation plans because they know every employee which is being hired. <br />Compensation and benefit plans are particularly based on performance. If performance is up to the standards of Telenor and the employee has good conducts he is rewarded. After performance evaluation, results are rechecked and matched with the standards. Based on that, proper compensation plans are designed.<br />Salary policy<br /><ul><li>The company will pay salaries of the employees as fallows </li></ul>All new employees have to open bank accounts in specified banks prescribed by the company so that their salary will be credited at the end of each month.<br />After opening account with the bank employees should forward his account number to HR.<br />Upon termination of services the employee will receive his salary within 15 days up to the time of date of his last working day.<br />Upon resignation the employee will be paid his dues during a maximum period of 15 days from the date he left the job<br />STRATEGIC MANAGEMENT<br />A mix of differentiation and low cost strategy is followed by Telenor Pakistan. Differentiation and innovation exist at the core of Telenor, be it culture, compensation packages or value added services. <br />Market Penetration<br />Diversification in new directions and regions<br />Focus on mobile internet<br />Acquiring a microfinance bank<br />Global expansion (Telenor has also entered the Indian market by taking a stake in Unitech Wireless)<br />Mix of differentiation and low cost<br />Lower capital expense investment due to recession/ slow market growth <br />Utilize 3G technology opportunity<br />COMPETITION<br />As at 30 June 2008, Telenor Pakistan had a market share of approximately 20%. In addition to Telenor Pakistan, there are five other mobile operators in Pakistan: Mobilink, Ufone, Warid, Zong (formerly Paktel) and Instaphone. According to data provided by the Pakistan Telecommunication Authority (the PTA), as at 30 June 2008 Mobilink was the largest cellular mobile operator in Pakistan with a market share of approximately 37%, Ufone had a market share of approximately 20%, Warid had a market share of approximately 17%, Zong had a market share of approximately 4%, and Instaphone had a market share of approximately 0.4%.<br />Major Competitor <br />ParametersMobilinkTelenorProduct Life CycleMaturityGrowthMarket share % 37%20%Coverage900 cities 1100 citiesProduct Portfolio Jazz Octane, MobilinkIndigo, Ladies First, TalkShawk, TelenorAzadi, DjuiceCustomer Base17.2 million3.6 millionMarketing OperationsExcellentGood<br />BCG MATRIX<br />Boston Consulting Group is used to help corporations with analyzing their business units or product lines. This helps the company allocate resources and is used as an analytical tool in brand marketing, product management, strategic management, and portfolio analysis.<br />This BCG matrix is with respect to the competition that exists for Telenor in the telecom industry. This includes the following mobile operators:<br /><ul><li>Mobilink
  10. 10. Ufone
  11. 11. Warid
  12. 12. Zong</li></ul>657225142240<br />2190750208280<br />32480251238254457700123825<br />1343025237490<br />332422545720<br />MOTIVATION<br />Motivation at Telenor is based on a factor i.e High performance culture.<br />Telenor describes the working context of the employees by:<br />Guideline (procedures).<br />Targets to be completed within standard quality and time.<br />So every employee is well aware of the values and vision which are contributing towards the core goal of Telenor. In this way considering their targets and guidelines, they are required to execute with high performance. The high performance gives rise to high performance culture. Now Telenor has to maintain this performance culture which is maintained through motivation.<br />MOTIVATING DRIVERS<br />Empowerment:<br />For employees to work appropriately there is employee motivation which is employee empowerment. Employees hired at Telenor are empowered enough that they can make decisions of the given project and responsibility. It makes an employee feel as though he or she is important and thus the motivation is elevated. It also makes the employees responsible for their actions because when power is delegated to them they also become accountable for their dealings.<br />Compensation:<br />Telenor Pakistan offers the employees with good salary packages and incentives in return of the performance they are providing. The employees are awarded with high quality income in relation with the high quality performance. Compensation is an important motivating tool for motivation for some employees at Telenor as it increases the efficiency of the employees. <br />Environment Factor- Physical Setup:<br />Employees at Telenor are provided with good setup for working. This can be a motivating driver because the hired personnel feel honored when they are provided with better work place.<br />Culture: <br />In an organization, the culture plays an important role for the person to show high performance. The culture at Telenor is TOP DOWN, the top employees establishes the tone for the organization. The top level employees take good care while performing any task or action because it will have to be followed by the subordinates. Things are properly informed.<br />Recreational Activities:<br />The employees are provided with recreational activities, by sending to hilly stations to be getting fresh and also perform certain work tasks which are to completed in normal routine. They get motivated and work well by having these recreational activities.<br />Promotions:<br />Employees are upgraded when their performance meets the standards or beyond, this is also an important motivational driver.<br />CONCLUSION<br /><ul><li>Structure of Telenor is Organic and functional structure.
  13. 13. Decision-making is highly centralized and empowerment is not appreciated as much but to some extent.
  14. 14. Telenor has adopted formal rules and procedures whereas some of work is done informal between departments.
  15. 15. The important success factor for Telenor is differentiation.
  16. 16. Because the environment is becoming tougher with each Passing day so to enhance their competitiveness & profitability it is providing excellent service, giving top priority to meeting customer requirements and charge low operating cost from their customer.
  17. 17. The employees of the organization are committed to their company and the company is taking care of the need of its employees.
  18. 18. It has many major competitors which are trying their hard to get the market share, but all the strategies of the competitors are successfully watched and answered.</li></ul>RECOMMENDATIONS<br />Dealing with challenges requires a coordinated effort so that the company is able to sustain itself in the ever-changing competitive environment and continues to provide superior value to the customers. The group recommends the following:<br /><ul><li>Telenor as described in the report has a functional structure with well-defined department. The coordination and communication is enhanced by the cross functional teams. After viewing the functioning of the organization it is recommended that the organization could have a Hybrid Structure, between the characteristics of functional and horizontal structures. Horizontal model offered the best chance to gain a faster, more efficient approach to a customer service.
  19. 19. As the organization's structure is highly Functional, and the Environment is currently stable, organization is suited well to the environment. But organization should also focus on the changing trends in the Environment, and make the structure flexible enough for any sudden changes.
  20. 20. The organic structure is being used in the Telenor Pakistan but organization is needed to move to Mechanistic structure for the better control of the employees for the better use of rules, policies and procedures.
  21. 21. There should be an effective employee exchange program even at the level of middle management so the organization can share the level of skill and expertise at all levels with the parent company
  22. 22. Introduction of employees stock options would further enhance the motivation level because then the employees too would have a stake in the organization.
  23. 23. In their workforce there should be a quota for the disabled people. This is currently being practiced in the parent company. This would enhance the image of the organization being socially responsible</li></ul>REFERENCES<br />Management (9th edition)by Steven P. Robbins and Mary Coulter<br />Telenor Broadcast Report - 2008-09as on 11th of February 2009<br />Interim Report January–December 2008<br />Corporate Responsibility Report 2008<br />Telenor Cantt Franchises<br />www. Telenor.com.pk<br />www.researchandmarkets.com/reports<br />www.telenor.com.pk<br />

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