Historical philosophical, theoretical, and legal foundations of special and i...
Strategic management
1. Strategic Management
Syed Muhammad Taskheer Mumtaz
2018280126
Northwestern Polytechnical University Xi’an China
Taskheermumtaz6@gmail.com,Taskheermumtaz6@yahoo.com
2. COMPANY REVIEW
Pakistan Telecommunication Company Limited (PTCL) is the largest integrated Information
Communication Technology (ICT) company of Pakistan.
Start from a telephone and telegraph department in 1947
PTCL is the largest telecommunications provider in Pakistan
Net income (As per Internet)
3.
4. COMPANY REVIEW
Vision
To be the leading Information and Communication Technology Service Provider in the region by achieving
customer satisfaction and maximizing shareholders' value'. The future is unfolding around us. In times to come,
we will be the link that global communication. We are striving towards mobilizing the world for the future.
Mission
To achieve our vision by having
An organizational environment that fosters professionalism, motivation and quality
An environment that is cost effective and quality conscious
Services that are based on the most optimum technology
“ Quality" and "Time" conscious customer service
Core Values
Professional Integrity,
Teamwork,
Customer Satisfaction,
Loyalty to the Company.
5.
6. PTCL ORGANIZATION STRATEGY
1. CORPORATE STRATEGY
1. GROWTH
PTCL Upcoming
IPTV Services
Broadcast and specialty TV channels
Digital Broadcast TV – Pay-per-view (PPV)
2. Directed advertising
The ability to receive specific adverts for products that you are interested in buying
3. And many more mouth watering features
Gaming – Interactive services – SMS/voice integrated applications
7. BUSSINESS STRATEGY
As the ptcl growing its position as the leading ICT service provider and a
profit leader.
Five year Strategic Master Plan for the Company, with defined corporate
KPI targets, timelines and ownerships was developed by the PTCL
management.
Defining yearly targets on market shares for various voice and data
services,
introduction of a corporate KPI based performance measurement system,
Restructuring of the organization,
formulation of IPTV,
Triple Play and converged services,
migration to an end to end IP based network,
Investment strategies such as Assets Management for risk diversification
and improved Return on Investments,
8. BUSSINESS STRATEGY
DIFFERENTIATION
Besides PTCL has by far the largest network coverage, competitive price, and a range of
Value Added services, launched a separate device 4G wingle and cloud internet devices.
Nokia has deployed 100G in Pakistan Telecommunication Company Limited (PTCL)
network to enhance the capacity and speed of its optical network for both domestic and
international traffic.
(PTCL) & its subsidiary, Pak Telecom Mobile Limited, Ufone, (MoU) with edotco Group
(edotco), leading end to end integrated telecommunications infrastructure services company,
through its local operations edotco Pakistan Private Limited (edotco PK), to enhance the
country's connectivity capabilities.
This includes efficient operations and energy management,
fabrication as well as modernization of structures and offerings.
It will meet the exponential data growth and usage requirement in the country as more users are
transitioning from 3G to 4G and beyond.
9. BUSSINESS STRATEGY
1. COST DIFFERENTIATION
1. Broadband Starter Packages 2019
2. 1 Mbps Economy TO 100 Mbps
3. Minimum amount to Highest amount
4. Lower rank to Highest Rank
5. Affordable for everyone
10. FUNCTIONAL STRATEGY
HR ASPECTS
Current employees 18000 (More or less)
PTCL in exchange for financial compensation.
PTCL injected young blood in the organization by onboarding over 350 aspiring fresh
graduates as part of PTCL Summit Program. These management trainees were selected after
thorough assessment and went through a focused orientation with six weeks class room
training in a residential program followed by a six-month on-the-job development program.
PTCL re-launched the online training Harvard Manage Mentor® (HMM) for
employees to promote learning in convenient and cost effective ways
11. MARKETING
Market Structure
PTCL Group’s revenue for the 1st half of 2018 has grown YoY by 4% to Rs. 60.7 billion as a result
of positive contribution by all group companies. QoQ PTCL Group’s revenue has grown by 2%
during the second quarter of 2018. Ufone revenue has increased by 5% YoY despite tough
competition in the cellular market. UBank, a microfinance banking subsidiary of PTCL, has shown
significant growth of 71% in its revenue over 1st half of 2017. PTCL Group’s operating profit for the
period improved by 57%, however, its net profit declined by 45% mainly due to adverse impact of
currency devaluation of Rs. 1.1 billion and positive one-offs of Rs. 1.3 billion of last year. Like-for-
like net profit of PTCL Group would have been higher by 28% compared to last yea.
During 2017, numerous 360-degree product marketing campaigns covering all aspects of PTCL
products and services e.g. Broadband Double-Up Offer, 2 Mbps Starter Package and various EVO
& CharJi offers were launched.
One-window solution customer helpline.
360-degree communication campaign was launched to further strengthen PTCL’s image as a
customer-oriented organization.
13. PEST Analysis
Political Analysis
2016-2017 Pakistan has faced political instability
2018 to March 2019 Pakistan is in much better state of political stability
14. Economic Analysis
Due to political instability the value of PKR. Went down as compare to US$ and the
company faced many challenges.
The company had to face a huge loss because of this.
15.
16. SOCIO CULTURE
The current population of Pakistan is 203,627,036 as of Monday, April 1, 2019, based
on the latest United Nations estimates.
The health system of Pakistan desperately needs a dynamic leadership, governance that
is prepared to design and enforce evidence-based policies and programs and taking care
of the system.
Information technology in Pakistan is a growing and rising, which has the potential
to expand even more in the future. Matters relating to the IT industry are overseen and
regulated by the Ministry of Information and Broadcasting of the Government of
Pakistan
PTCL is declared as the fastest growing brand in Pakistan with a brand value of USD
119 million (More than 12.5 billion Rupees). This was announced by Brand Finance at
a ceremony held in Barcelona during the Mobile World Congress 2018.
17. TECHNOLOGY
A new technological era has prevailed across the globe and every country is trying best
to keep enhancing technological advancements and capture Information Technology
market share which has a value of worth $12 trillion.
19. COMPETITIVE RIVALRY
Currently there are many market competitors but in future they might be increased. The
intensity of competitive rivalry within an industry will affect the profitability of the
industry. The completive actions might be taken from the price competitions,
advertisement, and sale promotion campaigns, introducing new products for the market,
providing guarantees or warranties and improving after sales services. Competition can
decrease the demand of PTCL, expand the market or it can leave demand unchanged.
20. BARGAINING POWER OF SUPPLIERS
The power of supplier is high in case of telecommunication sector. But the reality is that
numbers of suppliers are few in the markets but they are competing in the market to
make agreement with mobile service providers. The overall aim of the suppliers is that
to get the higher prices from customer
Results According to the facts and figure PTCL have strong bargaining power of
suppliers because the huge numbers of suppliers of PTCL are working in the market,
PTCL suppliers would not find it hard and difficult to enter my business, PTCL have a
variety of potential suppliers, PTCL have products which is differentiated from
competitors products.
21. THREATS FORM ENTRANTS
PTCL has a huge threat from new entrance because
the new entrance are using accessing distribution channels,
new entrance spending a huge amount of capital,
new entrance are obtaining the necessary materials, skilled people or supplies.
22. BARGAINING POWER OF CUSTOMERS
There is high bargaining power of customer in telecommunication sector. There are
many competitors in market and they are offering the different packages at different
prices to customers and situation of price war is running very hardly. Customer has a
power of buying any package which is suited to them. Charge of switching from one
company package to other company package is low. Hence power of customer is high.
23. THREAT FROM SUBSTITUTE PRODUCTS
PTCL have many competitors like (WARID, MOBILINK, ZONG, TELENOR,
WATEEN and etc) which are providing the substitute products in the telecom market.
The threat can be determined on the basis of annual profit of competitors.
Results: According to the facts and figures we can say that the growth rate of PTCL is
decreased by 2.9%. This is not good sign for PTCL.
26. STRENGTHS
Reliable Telecommunication company of Pakistan for a long time.
Supported by Govt. of Pakistan
The largest landline network of Pakistan.
Strong international brand names.
Strong financial position
Inject young and talented blood
Competent and Skillful Human Resources in few specialized fields.
PTCL is offering multiple services which includes Telephone, Internet and T.V smart devices applications.
PTCL can be used as a backup network if the mobile networks are down due to any reason.
PTCL maintain the records of customers in an organize way with the principle of privacy.
Introduced smart machines to pay bills
Complaint cell on district level
All the telecommunication companies operating in Pakistan directly or indirectly dependent upon PTCL network.
It has been offering Internet DSL connection to the customers with students’package offer.
It offers low rates for the national calls etc, as compared to mobile networks.
Customer care servies
27. WEAKNESSESS
Image-Government organization
Conflicts
Lack of Customer focus
Customer Dissatisfaction and Delayed Responses
Inconsistent and Adhoc decisions by Company management.
29. THREATS
New players in the industry.
Security and fraud issues.
Cyber crimes percentage is increasing.
Political instability.
Inflation in the country, may increase the cost of services which will finally transferred
to customers.
Rapid raise in Government taxes.
Recession in economy.
Growth in telecommunication industry
31. S-O Strategies
An oldest telecommunication company of Pakistan, containing good reputation,
customers trust & high brand loyalty as strengths can grab the opportunity to increase
its market share and position globally.
Having a high reputation and brand name, it has an opportunity of Joint ventures with
other telecommunication companies for introducing new services so can increase its
market share.
The largest land-line network having a strong financial position can increase further its
product lines, invest its capital, hiring competent marketers to adopt aggressive
marketing strategies particularly advertising.
Hiring 0f expertise and skillful human resources to adopt latest technologies and to
make technology accessible to all.
Good financial position of PTCL can help availing the opportunity of developing new
and innovative products.
32. S-O Strategies
Producing customized products as per demand of the customers can able PTCL to
compete with other companies in the industry. For instant hourly’ package for DSL.
PTCL offering multiple services, enjoying competitive advantage in the industry, can
cope with its national and international competitors through its valuable resources.
PTCL can be used as a more sophisticated and secure backup network.
Continuous improvement in customer services: PTCL can increase its market share by
improving its customer services including privacy of customers, secrecy and
organization of profiles, before /during & after sale services etc.
Low call (national & international) rates or uniform fixed service charges may help
PTCL to enjoy long term sustainability and growth.
33. W-O Strategies
PTCL has weak marketing of new services and contain an opportunity to adopt latest on-line
technologies (Facebook, Twitter, YouTube and other social networks) to overcome this
weakness.
The company can also overcome this weakness by availing opportunities of hiring competent
marketers and to adopt aggressive marketing strategies particularly advertising.
Enhancing employees morale with organizational polices and leadership trust .
Poor and in-efficient customer service can be overcome through re-structuring of
organizational hierarchy and delegate authority in a limit with responsibility to low level
staff, that may increase level of motivation with accountability.
Impact of poor overall management structure and policies can be reduced through re-
structuring of organizational hierarchy and benchmarking.
Bad debts (non payments of bills from customers) requires improved , enthusiastic and
efficient management in decision making process.
34. W-O Strategies
Low Revenue per user, generated by company, can be overcome by increasing its
market size to make it acceptable and sufficient for company.
Technical staff in DSL technical support can be helpful to the level of DSL issues and to
increase customer satisfaction.
To adopt latest on-line technologies the company may overcome the weakness of form
processing and can make it easier.
No area coverage in rural areas more revenue can be collected from those areas by
introducing smart devices and internet facilities
35. S-T Strategies
PTCL good reputation, customers trust & high brand loyalty can eliminate the threat of
new comers in industry.
PTCL financial position can overcome the threat of existing competition with other
telecommunication companies in the industry through differentiation.
PTCL also maintains privacy of its customers by keeping customer profiles secret and
in well organized manner to enhance customer satisfaction and resolve the security
issues like fraud and cyber crimes.
36. W-T Strategies
Following weaknesses /problems have to be addressed to avoid or minimize the threats
of competitive environment.
Poor organizational/management structure
Inconsistent and adhoc decisions by company’s management.
in-efficient customer service (especially internet services.
Cheap and better services are being provided by the competitors which is an alarming
situation for PTCL
Low employee morale
Form processing duration for new connection
Political intervention in decision making process
37. VALUE CHAIN ANALYSIS
Supportive Activities
Human Resource Management
Employee Training
Young personal hiring
Team building
Incentives and Appraisals
Value Added services
Service after complaint
Internet problem fixing
Get to know caller’s number
before answering the call
through PTCL CLI service.
Absent Customer
A customer with this facility
may inform the calling person
about his non availability. This
calling person will get an
announcement or a special tone
Technological Advancement
Internet devices
Fast internet service
Introducing 5g internet
Collaboration with industry
38. VALUE CHAIN ANALYSIS
R & D
Continuous research
Nine projects worth Rs 10.58
million to promote research and
development in various sectors
with focus on information
technology and
telecommunication.
provide new learning
opportunities and capacity
building for the talented youth of
the country through various
initiatives.
Financials
39. Primary activities
Marketing and sales
Marketing plan
Product advertisement plan
Sales Training
VALUE CHAIN ANALYSIS
Services
Customer care center
Problem fixing
Internet services
42. Strategy Execution
We are developing the strategy of product line development, because PTCL is loosing
its profit and customers day by day so we need to introduce a policy that takes place
again this position of PTCL and make its customer satisfied and earn more profit.
This strategy has to face challenges by the employees because they do not accept the
change so quickly
So to tackle these kind of situation we are required skilled employees
Because of new product line we will face some challenges in marketing and sales
43. Implementers of Strategy
Sales and Marketing Department
Human Resource Department
Finance Department
Strategy will lead by the top management but with the cooperation of middle and lower
managers and employees of PTCL
44. Strategy Execution
As soon as we implement the strategy we will rate the strategy and make changes if required according to
the situation and feedback by the employee and customers
Guideline will be given to all managers they will actively participate while execution of the product line
development policy
After making changes according to time and other changes employees of PTCL will implement this
strategy
If changes are not required then PTCL will implement the policy
A continuous idea exchange will keep transferring by the top level to the employees
In the case of PTCL employee does not need to be empowered because of employee attitude but the
managers needs to be empowered as it is necessary to take daily decisions.
Measures will be done by the managers to see the employee motivation towards work and their attitude
Those who will make sure that the strategy has been done the way it should be then they will be rewarded
to keep them motivated towards the work
45. Relationship Managers with Strategic Partners
As our strategy to grow the business is Product line development
To execute this strategy we will ensure some policies that will support the Product line development strategy
We will lead the PTCL towards the sustainable working environment and make the competencies, capabilities and resource
thorough
Staffing the organization
Making a team for developing a new product line through R & D and aligning them into line to achieve the goal
A headhunting process to hire talented employees
To retain the team make them satisfied through flexible working environment
Core competencies and competitive capabilities
The company needs motivated and fully dedicated employees to done the jobs
Continuous improvement in employees skills and competencies
Search for the customer demand
Try to cope the issue arise by the customer
Retention of employee
Support of government
Continuous training and development of employees
46. Team Management
PTCL needs to assign the work to those who are capable to cope the problems and handle the
situation
This team can be from PTCL or they can be hired by headhunting process
In my suggestion PTCL should assign this task to old employees with best records of sales
and plan
In this way they can save the cost PTCL and the employee knows the company norms and
values
Employees must be trained according to product line need
47. Employee selection and Training
Employee will be hired according to product strategy with relevant skills for instance
we are launching an internet device, for that we will be needed employees those who
are having skills and expertise in the relevant field
Training will be provided as needed according to the product
Marketing Training
Problem Fixing training
Customer services training
Middle managers will be trained under professional trainers
Those managers will train their teams
Online courses will be provided for those who can not attend the training
Online training from other countries and universities can be provided
48. Competency building
With the passage of time when the company and employee has learnt how to perform
well in the required field it will turn their ability into competency.
We will be cooperating with local companies to decrease our external threats.
Employees will be trained for work individually and I group
With proper training and proper guidance employees will start working better than
rivals
These training and experience will turn our competencies into competitive advantage.
Employee having competencies
Know-how of the product, market and customer
49. Structuring the work effort to promote successful
strategy Execution
Value chain
Training and development
Research and development
Employees retention
Customer and market feedback
Teams can be out source for product development and employee competencies development
50. Issues to Consider
Overview of strategy and rethink on it
Make changes if required
Exclude extra activities
Assigning key roles to managers
Look after the employees
Make sure the policy is implementing as it is required
Collecting feedback from employees
Employee motivation
Coordination between top managers and employee
51. Type of Company
Functional department structure
As employees in Pakistan are not used to work in a flexible environment and in case of
PTCL each and every decision is made by the top management and everyone else has to
follow the orders
So Authority will remain centralized
52. Future Execution
Product must be marketed using internet especially using social media
websites
Collaboration between teams and individuals must be maintained