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Introduction:
Bachelor of Commerce (Hons) academic program is the building up
of the theoretical knowledge about business administration which is the
base of practical knowledge. Bachelor of Commerce project work is an
attempt to provide business students an orientation to a real life business
situation in which we can observe and evaluate the use and applicability of
the theoretical concepts which were taught in the classrooms. As per norm
this report is the requirement of the fulfillment of the project work. This
report is the out come of our work in Telenor Private Limited.

Scope Of Study:

• This report is the out come of our work in Telenor Private Limited.
• Time Limitations
• Covers only Lahore City (outside Lahore city was not possible)
• Work Force In Lahore
• There were some areas which were restricted through out the period
because of security reasons.

Limitations:
• Analyzing financial data is much more confusing and complicated
than any other data.
• It was really difficult for me to accumulate confidential financial data.
• The policies might be changed Country to Country due to which we
are just focusing on our own country and resolving only the specific
issues.

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• Customer service (a comprehensive construct) was replaced by 6
parameters – product/service availability, lead time variability,
availability of shadow system, system recovery time, availability of
system information, and availability of post sales support service.
• Respondents of the quantitative survey have shown a tendency to
over state the time for which they are using the current operator
• Many of the findings & concepts from the qualitative study could not
be accommodated. Some of them (as following) were dropped from
quantitative survey:-
o Development of new features in mobile packages
o Role of pricing in customer perception etc.

Origin Of the Report :


This report covers the following heads:-
• Introductory overview of the cell phone industry.
• Overview of the Cell Phone Industry of Pakistan.
• Telenor Company Profile.
• To induce the relationship between the telenor and the other cell
phone companies in Pakistan.
• To analyze the company`s environment with the other cell phone
companies of Pakistan.

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General: (History of Cell phone)
Cell Phones are everywhere and their use is growing. Basically a
cell phone is a radiotelephone and its application is growing because of the
rapid rise of digital computers and very small and powerful
microprocessors. One of the most important advantages of
microprocessors is their ability to do very complicated operations with high
reliability.

The problem with early radiotelephones was that they quickly ran out
of available frequencies, i.e. channels. Often a wealthy individual with a
radio telephone in his car would have one of his employees make a series
of calls starting very early in the morning to reserve a channel for himself
and guarantee that he could have his radio telephone available as he was
being driven to work.

The problem was that to be useful, a radiotelephone had to work


throughout a whole metropolitan area, and a large area even back then
made for a large number of users. The problem could be solved by having
many small areas (now called cells) which all shared the same
frequencies. A small area only had a small number of users so that the
number of frequencies was adequate. In principle doing automatic
switchovers from one cell to another could solve this problem, but such
automatic switches were very complicated to implement. Enter the digital
computer, it was capable of doing the complex job of managing the
switchover so that the call would not be lost, and the modern cell phone
was born.

At first the speech was analog, and the logic to manage the
switchover was digital (i.e. done by a digital computer). These types of cell

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phones are known today as analog phones even though the switching is
digital. A true all digital cell phone, however, would also represent the
speech as a series of numbers, i.e. in digital form. A cell phone which also
digitizes the speech improves the sound quality; gets rid of static on the
line, and incidentally, increases the battery life by 3 to 5 times.

Since also making the speech digital was even more complicated
than just making the switchover digital, the true all digital cell phone had to
wait for microprocessors to get smaller and more powerful. This has now
been achieved, and one can have truly high quality cell phone service with
the new digital units. All digital cell phones have now become so capable,
the call rates so low, and the battery life so long that it makes sense for
some businesses to have only cell phones for their business extensions.

INVENTOR OF CELL PHONE:


The cell phone was invented by Bell Labs from about 1947 to 1967,
but a controversy has arisen about this. According to an Associated Press
Article in the April 12th issue of the San Francisco Chronicle, Page D3 and
an April 3, 2003 Chronicle Article, the Cell Phone was invented by Martin
Cooper who at that time was a vice-president at Motorola. Both articles
state that he made the first cell phone call in 1973 on a street corner in
New York using a base station at the top of a tall building in that city.
Motorola introduced its cell phone in 1983 after five generations, 15 years,
and $90 million; but as mentioned above, the first commercial cell phone
service was started by NTT in Japan on December 3, 1979.

This by no means the whole story, however, Cooper himself in the 10th
paragraph of the April 3rd Chronicle article states that “Bell Labs had
invented this thing called Cellular Technology”. What Martin Cooper

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apparently did was build a relatively small radiotelephone, which could be
carried by a person. He did not develop the idea and the mechanism for
automatically switching over when a phone went from one cell to another.
The true inventor of the cell phone is the person or group who developed
the concept of small cells and implemented the automatic switchover
system and this was Bell Labs.

Finally the explosion of cellular technology, which we now see around us


today, was caused by the Microprocessor, i.e. a computer on a small
single chip. Intel primarily pioneered this although Motorola and AMD have
played significant roles.

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Basics:
The very first telecommunication technology that came into Pakistan was
GSM.which is the reason for telecommunication through out the world at present.
GSM is

A wireless Mobile Telecommunication standard which stands for

“Global System for Mobile Communication”

GSM History

In 1876 telephone was introduced to the public in Philadelphia USA,


ALEXANDER GRAHAM BELL was able to transmit speech electrically in
one direction only on COPPER WIRE. This was later perfected for two way
communication.

In the end of 19th Century a German Scientist named “Heinrich Rudolph


Hertz” discovered that from an electric spark there seemed to emanate
invisible waves of force which could be captured at a distant location by a
suitably constructed receiving device.

In 1897 Guillermo Marconi made first wireless transmission over 15km in


Bristol and in 1901 he transmitted there waves overseas and began to call
it “Radio”

The First public Mobile Telephone Service was introduced in twenty five
American Cities. Each system used a single “HIGH POWER
TRANSMITTER” and large tower in order to cover distance. These were
early “FM PUSH TO TALK” Telephone Systems used 120Khz of RF
bandwidth in Half Duplex Mode.

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In 1982 first commercial cellular system [Analog] was turned on in
“Chicago”

In 1992, GSM the firstly fully “Digital Cellular System”, was introduced on in Germany
and France.

Analog Systems:

The world’s first cellular system actually was implemented in 1979 by


Nippon Telephone and Telegraph [NTT] in Japan.

In Europe, Nordic Mobile Telephone System was developed in 1981.There


are two types NMT 450, MNT 900. In France, Switzerland, Spain etc.

The Extended Total Access Cellular System [ETACS] was developed in


1985 and is identical to US AMPS system.

Advanced Mobile Phone Service [AMPS] is implemented in 34 countries


USA, Canada, Argentina, Chile ,Indonesia, Brazil etc

AMPS Operators in Pakistan:

There are currently two AMPS [Advanced Mobile Phone Service] Networks
Operational in Pakistan.

Paktel [Pakistan Telecom] 1st AMPS Operator in


Pakistan]

Instaphone

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AMPS Operator NDC [Network Destination Code]

Paktel 0303

Instaphone 0320

GSM History

CEPT decided to establish a Group Special Mobile the initial origin term GSM in order
to develop a set of common standards for European Cellular Mobile Nerwork , which
include

• The radio interface


• Transmission and signaling protocals
• Interfaces and network Architecture

With the establishment of Europena Telecommunication Standars Institute [ETSI] Group


special Mobile becomes a committee:

• GSM is embodied into European Telecommunication Standards


• GSM stands for Global System for Mobile Communication
• In 1992 Official commercial launch if GSM service in Europe.

There are currently Five GSM [Global System for Mobile Communication]
Networks Operational in Pakistan. Following are the operators and their
corresponding vendors working in Pakistan.

Mobilink [Motorola] 1st GSM Operator in Pakistan

U-Fone [Nortel + Siemens]

Paktel-GSM [ZTE]

Telenor [Nokia + Siemens]

Al-Warid [Ericsson]

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GSM Operators Commercial Launch:

Mobilink started its service as the founder GSM operator in Pakistan in


August,2004

Ufone started its service from Islamabad on January 29,2001

Paktel-GSM started its service in Pakistan on Octuber 28,2004

Telenor started its service from Karachi on March 15,2005.

Al-Warid started its service in Pakistan on May 23, 2005.

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Introduction: (Telenor)
Telenor is emerging as one of the fastest growing service providers
of mobile communications services worldwide. Telenor is also the largest
service provider of TV services in the Nordic region. Telenor is organized
into three business areas; Mobile operations covering 12 countries, and
Fixed-line and Broadcast services covering the Nordic region.

• They have More than 129 million mobile subscriptions worldwide.


• Strong position in the growing Scandinavian market for broadband
services.
• Largest provider of television and broadcast services in the Nordic
region. Revenues: NOK 91.1 billion
• Workforce: 33,500.
• Listed in Oslo Stock Exchange.

During the late 90’s it has been deregulated and changed from fully
government owned into a public limited company. However the
government retained substantial stake in terms of shares. Since
deregulation began in EU, the telecommunication industry is facing tough
competition from new entrants and this is the case for Telenor as well. The
company is split into four groups: Mobile operation, Telenor fixed,
Telenor broadcast, and others activities.

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History of Telenor :
For over 150 years, telecommunications has played a vital part in
the development of modern Norwegian society. As the incumbent provider,
Telenor has been the driving force in the development of a highly
sophisticated home market. The physical work has helped in rolling out
infrastructure and developing services over long distances and in tough
natural conditions. The real job, however, is building relations between
people.

In 1994, the then Norwegian Telecom was established as a public


corporation. In December 2000, the company was partly privatized and
listed on the stock exchange. This transformation took place as a gradual
adaptation to increasing competition in the Norwegian telecoms market
after deregulation in the 1990s, with free competition for all services from
1998. Telenor has successfully defended its strong position in the
Norwegian market.

Internationally, Telenor has achieved on the basis of strong positions in


satellite communications, in mobile communications and in domestic
Internet activities. Telenor has been one of the world's leading suppliers of
satellite communications for many years. Telenor Launched it services in
Pakistan in March 2005.

Company Profile:
Telenor Pakistan, a wholly owned subsidiary of Telenor ASA,
launched its operations in March 2005. One of the leading telecom
operators providing prepaid, postpaid and value-added services to seven
million customers, it is spread across the country with a network of 15
company-owned sales and service centers, more than 200 franchisees

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and some 100,000 retail outlets selling subscriptions and refills.
Differentiated packages include TalkShawk, Telenor Persona and Djuice.
Being a part of the Telenor Group which has its operations in 12 countries
employing more than 34,000 individuals, Telenor Pakistan has created
2,200 direct and 20,000-plus indirect employment opportunities.

The organization is in the growth phase capturing more than 14% of the
market share, achieving a 200% increase in the subscriber base in 2006
(beating Ufone in the number of the subscribers) and planning for further
expansion of network and services. Maintaining a wide coverage in the
country, with 500 destinations covered within less than 16 months of the
company’s launch, it now has the second largest network in Pakistan. The
striking growth rate has been achieved through the application of a highly
successful business model, local enthusiasm and hard work. Telenor
Pakistan considers Mobilink as its major competitor.

“Telenor Pakistan is obviously different from the competition. Our culture is


different, our values are different and our focus on the fundamentals of
business is different. Telenor Pakistan is fully involved with its key
stakeholders and trusted as a friend of the community.”

Telenor Pakistan: (Business Description)


Telenor Pakistan is a wholly-owned subsidiary of Telenor. On 14
April 2004, Telenor was awarded a GSM licence to build and operate a
mobile network in Pakistan. On 15 March 2005, a full multimedia platform
for commercial mobile services was launched under the name of Telenor
Pakistan. As at 31 March 2010, Telenor Pakistan had 23.3 million mobile
subscriptions. As at 31 March 2010 the mobile penetration and number of

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inhabitants in Pakistan were 58% and 168 million, respectively according
to official estimates.

Network and licences:


Telenor Pakistan currently holds a nationwide GSM 900 MHz/1800
MHz licence (excluding Azad Jammu and Kashmir (AJK) and the Northern
Areas). This licence was awarded in April 2004 for USD 291 million. In
June 2006, Telenor Pakistan was awarded a GSM 900 MHz /1800 MHz
licence to build and operate a mobile network in AJK and the Northern
Areas for USD 10 million. Both licences are valid for a 15 year period.
Telenor Pakistan met its rollout obligations under both licences during
January 2007 and March 2007, respectively. In addition to the two GSM
licences, Telenor Pakistan holds a Long Distance and International licence
through which it is providing nationwide and international call services. The
licence expires in 2024. Since its inception, Telenor Pakistan has rolled out
its GSM network at a steady pace and has become one of the fastest
growing mobile networks in Pakistan based on its coverage and capacity.
The network currently being rolled out is GPRS and EDGE enabled. As at
30 September 2009, Telenor Pakistan’s EDGE coverage is the most
extensive in Pakistan.

The Pakistan Telecommunication Authority (the PTA) has issued M-


Banking regulations which envisage a bank-led model for mobile banking
in Pakistan. In response, Telenor Pakistan worked to acquire a bank and
was successful in acquiring a 51% share in Tameer Bank. While Telenor
Pakistan has started working on the provision of mobile financial services
via a bank-led model, it has also stressed the need for transition towards
implementing a telecom-led model in the coming years.

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Competition:
As at 31 March 2010, Telenor Pakistan had a market share of
approximately 24%. In addition to Telenor Pakistan, there are five other
mobile operators in Pakistan: Mobilink, Ufone, Warid, Zong (formerly
Paktel) and Instaphone. Based on PTA numbers as at 31 March 2010,
Mobilink was the largest mobile operator in Pakistan with a market share of
approximately 33%, Ufone had a market share of approximately 20%,
Warid had a market share of approximately 17%, and Zong had a market
share of approximately 7%.

Regulatory matters :
The PTA has broad regulatory power including power to grant licences,
regulate market conditions, including the price of interconnection, and
monitor and enforce the licence conditions pursuant to the Federal
Government’s telecommunication policy. The Frequency Allocation Board,
a separate entity under the administrative control of the PTA, manages
radio frequencies.

Certain regulatory issues are stated below:


The Government of Pakistan earlier communicated its intentions to issue
3G licences through an open auction in 2009. This may create an
opportunity for mobile companies to offer wireless broadband, as the
broadband density is less than 0.5% in the country. However, the
government plans to open this auction to parties not providing mobile
services today by opening existing networks to these potential new
operators. In light of the global recession, security situation, economic
indicators and market situation the mobile operators have made a
recommendation to the government to push the auction back for at least

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another year when the environment is more conducive to further
technological investments in Pakistan.

The SIM activation tax was first introduced in Pakistan in 2001. When it
was introduced in 2001, the SIM activation tax was PKR 2,000. It has since
then been reduced three times, to PKR 1,000 in 2004 , to PKR 500 in 2005
and to PKR 250 effective from 1 July 2009. The general sales tax level
(GST) in Pakistan is 15%. In June 2008 a telecom sector specific GST of
21% was introduced, which from 1 July 2009 was reduced to 19.5%.

The PTA issued a determination in April 2008 in which the MTR, which
was previously PKR 1.25 per minute, was revised downwards after
conducting a cost based study. Currently, the rate is PKR 0.90 per minute
effective from 1 January 2010 onwards. The cellular industry has
requested PTA for freezing of MTR at PKR 1.00 for the next 3 years. The
request is under consideration by the PTA.

Telenor is a pioneer in mobile communications. Manual mobile telephony


services were introduced in Norway in 1966, as a forerunner to the
automatic NMT system, which appeared in 1981. Its digital successor,
GSM, was introduced in 1993, and third generation mobile network,
UMTS, was launched for commercial use in 2004.

Telenor Facts :
The Telenor Group is a leading provider of telecommunications services
worldwide. The company has a strong footprint in Central Eastern Europe
and Asia and a leading Nordic position in mobile, broadband and TV
services

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• 195 million mobile subscriptions (105 million in consolidated operations
and 91 million in VimpelCom Ltd)
• Our largest consolidated mobile operations:

¬ Kyiv star, Ukraine 17.7 million subscriptions


¬ DTAC, Thailand 11.2 million subscriptions
¬ GrameenPhone, Bangladesh 9.4 million subscriptions
¬ DiGi, Malaysia 5.6 million subscriptions
¬ Telenor, Pakistan 4.6 million subscriptions
¬ Pannon, Hungary 3.0 million subscriptions
¬ Telenor, Norway 2.7 million subscriptions

• Norway’s leading Telecommunications Company


• Largest provider of TV services to the Nordic market
• Our largest consolidated mobile operations:
• Strong subscription growth, particularly in our Asian operations
• Listed among the top performers on Dow Jones Sustainability
Indexes
• Revenues 2009: NOK 91 billion

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• Workforce: more than 34.000 employees (as of 2010) (22,500
outside Norway)
• Listed on the Oslo Stock Exchange
• Headquarters in Norway

Vision And Values


“We Are Here To Help”

The distinguished culture is determined by the vision and values


communicated throughout the structure and amongst people. Their vision
underlines customer focus while values describe the behaviors necessary to
realize that vision.

Mission Statement Of Telenor

“ Telenor's primary goal is to create greater value for our


shareholders, customers, employees and partners, and for
society in general. We strive to be a driving force in creating,
simplifying and introducing communication and content solutions
to the marketplace. In order to achieve this goal, Telenor base its
strategy on its customer oriented vision, ''Here to Help''

Core Values:

''Make it easy , Keep promises , Be inspiring , Be respectful"

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Departments:

TelenorPakistan Technology Commercial(ex.CRD) Finance Financial Human S&CA CEO TKP Total
Services Capital Office
TotalEmployees 502 705 151 21 126 56 5 50 1716
LineFinalization 544 556 86 14 113 27 5 47 1392
Percentage 90% 79% 57% 67% 90% 48% 100% 94% 81%
Completion

People :
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 mindsets, 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.

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

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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 (no formal protocol is given).

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Stakeholders of Telenor:

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Mobile Operation:
Telenor is a leading provider of communications services and one of the fastest
growing mobile operators worldwide. Telenor holds controlling interests in mobile
operations in Norway, Denmark, Sweden, Ukraine, Hungary, Montenegro,
Thailand, Malaysia, Bangladesh and Pakistan. Telenor also holds minority
interests in mobile operations in Russia and Austria. In accordance with Telenor’s
strategy of consolidating its position in international mobile by obtaining control
of selected international mobile operations, and in order to maximize the benefit of
cross-border synergies and increase overall profitability. Telenor’s mobile
commitments in Asia and Eastern and Central Europe are becoming increasingly
important. During 2005, Telenor successfully extracted a number of cross-border
synergies across the group. Common technologies for optimal spectrum and
network utilization have been successfully implemented at each of the group’s
operations, and Telenor maintains its focus on adopting new technologies to
improve service quality and reduce costs. In order to harmonize the group’s
customer orientation across all markets, Telenor has developed a common
segmentation model that enables more effective targeting, while also providing
greater insight into the global markets. Telenor has developed a framework that
provides affiliates with a proven concept of developing target segmented offerings
and optimized go to market strategies.

Telenor’s worldwide mobile operators:


Highlights from their mobile operators and the markets in which they operate.

Norway Sweden Denmark Ukraine

Russia Hungary Montenegro Serbia

Pakistan Bangladesh Thailand Malaysia

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Hierarchical Structure Of Telenor :

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Seven Layers Communication Hierarchy:

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Hierarchical Levels at Telenor Pakistan:
Hierarchical Levels:

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.

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.

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.

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Span of Control:
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.

Integrating Mechanism:
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.

Centralization and Decentralization:


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.

Standardization and Mutual Adjustment:


At Telenor Pakistan, the level of standardization and mutual
adjustment varies across functions. Generally strict obedience to rules is

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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.

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.

It and Empowerment:
The level of empowerment differs across departments and divisions,
depending on the nature of work. It varies according to the style of
management of functions; more empowerment in CRO and Sales and
Marketing than in People Excellence. IT increases the level of
empowerment. Within the network service of the Telenor in Pakistan, there
is a (inter and intra net) portal system used to communicate information
efficiently. An online HR MS System, H2H (Here to Help), is being used

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internally. This locally built system was launched last year but is still not
well integrated at present.

Conflict Resolution:
When different departments work together in an organization, their
interests may differ due to functional and structural differences. Due to
these variations, conflicts among departments are inevitable. The issues
are not taken to the top management and there is no coordination post in
the organization which can facilitate the departments to increase
coordination with each other. Whenever a conflict arises among functions,
the heads or managers from those functions sit together and discuss the
source of conflict. They try to resolve all their differences amicably. There
are always conflicts between the technical and commercial divisions which
they mostly solve between themselves. If, however, a major issue arises
which they are unable to resolve themselves then it is taken to a level
higher. The management then discusses the reason for the conflict,
addresses the concerns of both the parties and then arrives at a
conclusion which is in the interest of all departments.

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Communication System:
Communication is life blood of every organization. Organization
cannot function with out open and effective communication. It includes
internal and external structure through which messages pass and the way
information is presented as well as the actual content of the messages
themselves. Telenor uses a variety of formal and informal forms of
communication while exchanging information with people inside and
outside the organization. Following are the methods used by the Telenor
while communicating:

1. Internal Cmmunication

2. Eternal Cmmunication

1. Internal communication:

Internal communication refers to the exchange information and ideas


with in an organization. In Telenor, mostly information is exchanged
internally by e mail fax, phone, and intra net.

Internal communication helps employees to do their jobs, develop a


clear sense of an org mission and identify and react quickly to potential
problems. To maintain a healthy flow of information with in Telenor,
communicators use both formal and informal channels.

• Formal Communication
• Informal Communication

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1.1 Formal communication:

Planned communication with in the organization in the form of


letters, reports, memo and emails, that follows the company’s chain of
command. Telenor also use the same tools while communicating with in
the organization formally. They mostly used letters, memos, reports, e-
mails and intra net. Information may travel downward, upward and across
the organizations formal hierarchy.

As Telenor has an open cultural organization, where employees


have full independence to share their ideas, plans, views and information,
so they are following all three types of formal communication flow with in
the organization. The following are three main types of formal
communication flow:

• Downward communication
• Upward communication
• Horizontal communication

1.1.1 Downward communication:

Telenor’s Organizational decisions are usually made at the top and


then flow down to the people who will carry them out. In Telenor, when
employees receive an appropriate downward communication from
management, they can be better motivated and more efficient. Moreover,
not only they need clear job directions but also facts about organizational
strategy, products and view points on important controversial issues. When

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given the authority, the employees of Telenor can be held accountable and
responsible for their decisions.

1.1.2 Upward communication:

Upward internal communication has become increasingly more


significant in Telenor. Many executives sincerely seek frank comments
from their employees. Executives of Telenor closely listen to opinions,
complaints, problems and suggestions given by their employees. They
believe that their employees would furnish them with accurate, timely
reports, emerging trends, opportunities for improvement, grievances and
performance. Managers must learn what’s going on in the organization
because they can’t be everywhere at once. In order to face global
competition Telenor is developing new management style which will make
input from employees an integral part of important decisions.

1.1.3 Horizontal Communication:

Like other organizations, Telenor is also having Horizontal


Communication flow i.e., from one department to another either laterally or
diagonally. This Horizontal Communication helps employees share
information and coordinate tasks and it is also essential in order to solve
problems, perform job duties, prepare for meetings and cooperate on
important projects. Moreover, Telenor is using all the three communication
flows including Emails, Fax, Intranet (Web portal), Company Intranet and
etc, but the most preferable and feasible way of communication with others
used by Telenor is through E-mails. The reason is that as in modern world
companies are transforming themselves to Online Communication Network

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and paperless environment, so they usually communicate through E-mails
and also it proves to be a written document for the company. In Telenor
irrespective of designation, emails are sent to every employee so that they
can be indulged in company’s work and also know the current situation of
the company.

1.2 Informal Communication:

Telenor informal communication network or grapevine follows the


path of casual conversation & has no set flow pattern. Communication
between organizations & outside world can be as informal as talking with a
customer or letting your appearance transmit an impression of your
organization. As people go about their work, they have casual
conversations with their friends in the office. Eliminating the grapevine is
virtually impossible. About 80% of the information that travels along the
grapevine pertains to business. Apart from all above method of
communication, Telenor is also emphasizing on Verbal Communication
among the employees.

2. External Communication:

The External communication links the organization with the outside


world of customers, suppliers, competitors and investors. Telenor have an
effective communication with people outside the organization that helps in
creating a good reputation and have a positive impact on its ultimate
success. Telenor have created its goodwill in a very short span of time just
because of its effective external communication with its customers, which

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in result created a desire for Telenor’s product or service, and encourage
the decision of its customers.

As there are two main types of communication used by the


organizations for effective external communication:

• Formal External Communication


• Informal External Communication

Telenor prefers formal external communication while communicating


externally. As in the external environment the words speak for its
organization. So they use formal language, which will enhance the goodwill
of the organization. Telenor is using external communication to create a
favorable impression, because carefully constructed oral presentations,
emails and websites will convey an important message to outsiders about
the quality of Telenor. In order to minimize the impact of any crisis expert
communicators in Telenor advise managers to communicate honestly,
openly and often. Otherwise the crisis can destroy Telenor’s image,
reputation, drain its financial strength and ultimately result in negative
publicity.

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Communication Chart:

Business Messages:

There are different types of business message which are used by

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3. Business Messages:
Telenor to convey information to the customers. Basically the
purpose of writing letter is to convey your idea to the customers rather than
to impress them. To compete for attention the business messages are
purposeful, audience centered and concise.

Types of Messages:

• Good news messages


• Goodwill messages
• Bad news messages
• Persuasive messages
• Promotional messages

3.1 Good News Messages:

A message that will receive a favorable or neutral reaction from


reader is usually easy to write because such a message tells the reader
something pleasant or offers useful information. These messages are
generally organized by direct approach also known as good news plan. In
order to build good will, Telenor replies to all reasonable requests
courteously, helpfully and promptly.

3.2 Goodwill Messages:

Goodwill messages are important for building relationship with


customers, customers who are more brand conscious. Telenor try to

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satisfy its customers in such a way, that they may increase the reputation
of the company.

3.3 Bad News Messages:


When message is a negative, then analysis become extremely
important. Telenor believes that bad news messages should be sent and
written rather communicating face to face or in a quick phone call. While
writing a bad news messages Telenor do give concentration that the facts
and figure should be explained in details. There should not be any
incomplete information.

Telenor also look upon in maintaining a good and healthy


relationship with their customers so while writing bad news messages they
take care of this fact.

3.4 Persuasive Messages:

The main aim of persuasive messages is to influence the audience


who are inclined to resist. Therefore, Telenor when writing persuasive
messages, generally they are longer, more detailed and often depend
heavily on strategic planning. Telenor while writing persuasive messages
make sure that purpose is perhaps the most important planning task.

3.5 Promotional Messages:


The main emphasis of the promotional message is to enhance the
sale of the organization. Telenor while writing promotional messages keep
the audience centered approach. The main sources for Telenor in order to
promote its product are TV commercials, news papers, bill boards and
internet. Promotional messages of Telenor are designed in a way that
helps them indulging their customers to buy their products and services.

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Recruitment Process

Telenor, unlike other organizations, having unique online recruitment


process. A candidate can only apply online for job, rather going and
submitting the resume physically. Jobs are advertised on their website.
Candidates have to fill in the online application form regarding their
personal information.

After submitting their personal information, their resumes are sent to


HR department. The HR Department then forwards their resumes to
recruitment department of HR, where their data base is collected and
evaluated. The recruitment department makes a shortlist of candidates
which are sent to their relevant department. The relevant department then
evaluates the selected candidates and makes further shortlist of
candidates. The list of these candidates is sent to the Head of Department,
providing him with the information in detail of each selected candidates.
Then the list of short listed candidates is sent to Head of Department for
further analysis or interpretation. After sending list of short listed
candidates to Head of Department, the interview schedule is prepared for
the candidates. In their final comprehensive interview, the selected
candidates are evaluated on the basis of their job knowledge and their
personal skills. While analyzing their personal skills, the Telenor manages
will make an overview on their academics and past experience regarding
the relevant field.

After conducting their interview, they rank the candidates on the


basis of their job knowledge and personal skills which includes their
academia, communication skills, past experience in relevant department
and etc. After ranking they will offer the contract to the best suitable
candidate. In this contract, they will mention the salary and are the terms

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and conditions of the job. If the terms & conditions are acceptable or
suitable for the candidate, he/she will join the job. Otherwise the company
will go for the best possible alternative. In their recruitment process, the
Telenor will first hire the employee for specific prohabitional period. If the
company is satisfied with the performance of the candidate, they will turn
the status of candidate as a permanent employee and he will become the
part of Telenor Family.

Recruitment Procedure

Advertisement

Job Requirement

HR Department

Database Recruitment
Department

News Paper Ads Replacement


Department

Department Head

Interview Schedule

Job Knowledge Personality

Ranking the candidates

Offer to Selected candidates

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Telenor Employee
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In-depth Swot Analysis:
In order to find what are the strengths, weakness, opportunities and
threats faced by telenor Pakistan. How can they increase their market
share in Pakistan Cellular Industry?
Following Is the SWOT Analysis of telenor Pakistan.

Strengths of Telenor:

• Network Quality and design


• Superior Customer Care
• Financial Strength
• Excellent Coverage & Distribution
• Contract with Siemens & Nokia
• Brand Image of Quality
• Superior Product quality for customers
• Better Customer relationship than competitors
• Extra Features and services
• Committed And Efficient Staff
• Products innovations ongoing
• Good reputation among customers
• Good packages according to the target market
• Management is rational and understanding the situation
• Low Price VAS as Compared to the Competitors

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Weakness Of Telenor:

• Less time in market as compared to other cellular companies ,like


mobilink.
• Less coverage as compared to the competitors like mobilink
• Less experienced employees than competitors
• “Seth Organization”
• Not able to capitalize on start

Oppurtunities Of Telenor :

• A developing market
• Mergers joint ventures or strategic alliances
• Extension to overseas
• Low Cellular market penetration
• Decline of major competitors
• E-Commerce Usage
• Mobile Number Portability
• IMEI System
• Technologically better environment
• New Launches
• More customers on newer products introduced

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Threats Of Telenor :

• Emerging companies in market


• Unstable political Conditions
• MNP Mobile Number Portablility
• Wireless Technology at Boom
• New companies entrance in the telecommunication market
• High Public Expectations
• Low Prices of competing brands
• Propagandas attacking

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Competitive Advantage Of Telenor:

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.

Core Competencies:

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.

Training:

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

Compensation:

The core compensation includes:

• Base salary
• Bonus/commission
• Long-term incentive plans

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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.

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.

Career Growth:

Initially, qualifications are the defining criterion for fresh graduates.


For career growth, the right mix of performance on the job and
performance potential for the other level is imperative. Apart from the right
attitude, knowledge also matters. If an individual from Finance gets a
higher degree, for instance, becomes a chartered accountant

then the chances of growth increase. There are no specific career paths:
Vice President (VP) of Human Capital Division (HCD) became the next
Chief Marketing Officer (CMO).

Employee Motivation:

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.

Relocations are common in the organization: employees are


transferred from People Excellence to Finance or from Procurement to

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Customer Relations. Investment per employee is placed at the higher end
of the industry.

Strategy:

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.

Managing Diversity:

Telenor Pakistan is keen to promote diversity and has achieved


good results in this area. Telenor has developed requirements for diversity
in both recruitment and our management development programs. There is
an appropriate blend of less seasoned and experienced employees. No
quota has been assigned; the best-fit candidate (according to the job
requirements) is employed. At the office level or call centers, even fresh
graduates are apt but the director level requires a masters degree and
preferably some work experience.

Telenor Pakistan has a large proportion of females who are recruited


for internal leadership development programs and executive positions on
the basis of past performance. The organization is working on Day Care
Centers to help female employees manage their responsibilities after
settling down. Relocation issues are dealt cooperatively when female
individuals move out of the city after marriage and wish to continue
working. They are relocated and facilitated in the new city.

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Promoting Efficiency And Innovation:

Innovation and novelty, mainly in the areas of business processes,


customer satisfaction and goal setting, is highly encouraged at Telenor.
Employees are also motivated to come up with innovative ideas and to
convey them to the upper management. If the ideas are feasible enough to
be implemented then they are applied to respective areas and the
employees are duly rewarded for their contributions. For example the sales
personnel have a greater interaction with customers and knowledge of
their needs. They can convey this information to the management who can
use it to design better consumer packages.

Efficiency is achieved through maximum utilization of resources and


also through adherence to goals set by the top management. Telenor
introduced the Six Sigma program for the improvement of its business
operations in the very first year of its operations in Pakistan. This has
helped the organization in maintaining its quality standards and also in the
up gradation of its business processes.

Telenor Pakistan is a young and progressive organization which has


a multitude of strengths in its existing organizational design. There are still
a few weaknesses which can affect the organization in the long-run.

Beginning with the strengths, there are no communication barriers.


There are seven layers in the organization so one would believe that there
would be a lot of communication barriers between the employees and their
superiors but that is not the case. The policies adopted ensure that there
are no communication barriers present. They include an open door policy
and open work environment where the managers sit with their sub-
ordinates and do not have separate offices. Also employees of the same

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level have no cubicles so it helps in enhancing the communication
amongst them.

Employees are encouraged to take initiatives and come up with new


ideas: empowerment exists. Also these ideas can easily be communicated
to their superiors. Employees are free to express themselves. The span of
control also suggests that not all powers rest with any particular individual.
In projects people are encouraged to come up with the best possible
solutions and the manager just oversees the performance of employees.
The SOPs and guidelines have to be followed in order to ensure smooth
functioning of all departments

Strong integration with in the organization has been a key success


factor. All conflicts are managed by the concerning departments and if not
they are taken one level above but there have been no such cases which
have been reported to the CEO. The managers of the concerned
departments sit and come up with a solution which is acceptable to both
the departments. Social gatherings also help in enhancing the integrating
capabilities of the organization.

Employees are evaluated on the basis of individual evaluation. Even


when they are working in a group this ensures that there are no free riders.
Underperforming employees are provided with counseling sessions or
shifted to another position where they can perform in a more effective
manner. All employees are assigned specific roles and responsibilities for
which they are held accountable. There are no specific work hours but
employees are supposed to meet the specific deadline. This also
increases the motivation level of the employees as they are not bound yet
increases their level of productivity as they are motivated. This results in
effective evaluation.

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Similarly there is an effective hiring process. Only those people are
hired which the HR department would believe can easily blend into the
culture of the organization. This ensures harmony within the whole culture
effectively manages diversity.

Competitive Advantage :

All the point discussed above lead to a flexible culture which is


most suitable for the employees on the other hand ensuring all the targets
is met. Employees are not bound to follow a dress code unless they are to
attend a formal meeting. This culture has been set by the CEO himself and
the new employees coming into the organization have no difficulties in
adjusting into it.

However, Telenor Pakistan is faced with a few challenges. At this


point of time there is no employee exchange program which creates a
barrier in exchanging skills and expertise with the parent company. Only
the top level management comprises of foreigners and there are only few
cases where the managers from Pakistan have been taken abroad.

This can act as a double edged weapon as young employees are


easy to mould and are highly motivated on the other hand they might lack
skills and expertise which are required to perform the task. In order to train
them for performing their tasks efficiently, extra resources have to be
spent.

Moreover, the CEO being a foreigner would have difficulties in


understanding the psychology of domestic employees. Also his ability to
comprehend the overall situation of the domestic market would not be as

62
strong compared to his competitors. Coming at par with competitors would
require utilization of extra resources.

Moreover, 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:

• 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
• Introduction of employees stock options would further enhance the
motivation level because then the employees too would have a
stake in the organization.
• 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.

Major Competitors:

Competitors Market Share


Mobilink 37%
Ufone 20%
Warid 17%
Zong 4%
InstaPhone 0.4%

Major Competitor : (Telenor vs Mobilink)

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Competitive Analysis Of Telenor:

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Learning as A Student Internee:
Bechelor of Commerce (hons) is the degree in which I was taught abt the
communication, Business Athics, Management ,Financial Accounts, Maintaining
financial accounts, Financial management ,organizational behavior etc ,so it was
compulsory for me to be associated with an organization in order to practically
apply the study which was acquired through out the four years. So I choose
Telenor being the prominent name in the telecommunication industry telenor has
widely spread into the Country .I was transferred to the franchise and there I
practice the daily operational work like inventory opening and closing, budgeting,
market analysis, product knowledge, and most prominently I was taught about
the Organizational Environment and the company related jargons that are as
important as company`s culture ,company`s policies are meant to be kept in mind
while practicing such internship and I was strictly prohibited in the areas or in the
departments which were accounted to violate the company`s policies when
interfered. So I enjoyed the internship tenure and I was taught the core
professional skills to undergo the professional career in this field.

Detail of skills acquired during internship period:

This program was designed to accomplish three objectives. These


objectives were identified through a closer interaction and exchange of
views with the management of Communication personnels. The objectives

are as follows:

1) Communication Skills
2) Organizational Interaction
3) Management Skills
4) Practically possible Problem solving techniques
5) Analytical Reasoning
6) Handling the Emergencies
7) Theoretical Analysis
8) Company Jargons
9) Environment Recognition
10) Self Improvement
11) Self Correction

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Financial Statements:

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Conclusions & Recommendations:

With some changes at higher level including advisor to CEO,


Finance Manager has improved this year in Telenor overall rating. Telenor
Pakistan certainly has potential to capture good market and to give tough
time to the competitors, but for this at least following steps should be taken

1. Telenor is offering cheap rates for its prepaid and postpaid customers as
Compared to its competitors but the main area they are lacking is the way
to Communicate it to customers.

2. Seth Culture should be avoided.

3. Network should be enhanced to much more cities.

4. There should be consistency of brand ambassadors, jingles, colors and


graphics in their print and electronic media ads to create strong brand
recognition.

5. More regional departmentalization should be there, so as to create


strong presence and market analysis at regional levels.

6. More staff should be hired in some departments to meet the


requirements.

7. There should be more decentralization and employees should be


encouraged for their ideas.

8. Compensation and benefits plans should be revised, as it can be used


as a very important tool to create motivation in employees.

9. There should not be favoritism in the HR Department and also in other


operational departments.

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Bibliography :

www.google.com

www.scribd.com

www.ask.com

www.telenor.com

www.telenor.com.pk

www.pta.gov.pk

www.zong.com.pk

www.wikipedia.com

www.mobilinkgsm.com

www.ufone.com

www.ntcpk.com/paktel.htm

www.waridtel.com/

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