INTRODUCTION TO MANAGEMENT

PROJECT REPORT ON

PAKISTAN TELECOMMUNICATION COMPANY LIMITED (PTCL)

SUBMITED TO:MISS. LALA RUKH

SUBMITED BY:MUHAMMAD NOMAAN (SP09-BEL-033) MUHAMMAD BILAL (SP09-BEL-061) UMAIR AHMED (SP09-BEL-067) BUSHRA IMTIAZ (SP09-BEL-014) ANUM QAYYUM (SP09-BEL-006)

INTRODUCTION TO MANAGEMENT

TABLE OF CONTENTS

1 PTCL – PAKISTAN TELECOMMUNICATION LIMITED . . . . . . . . . . . . . . ..
1.1 Introduction of PTCL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.2 Vision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.3 Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.4 Core Values . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.5 Organizational Structure .............................................. 2 STATEGIC MANAGEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.1 Why It Is Important For An Organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.2 Process Of Strategic Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.2.1 SWOT Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.2.2 External Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .... Strength Weakness 2.2.3 Internal Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Opportunities Threats 2.2.4 STRATEGIC MANAGEMENT CYCLE

3 TYPES OF ORGANIZATION OF PTCL . . . . . . . . . . . . . . . . . . . . .

3.1 CORPORATE STATEGY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.1.1 GROWTH

3.2 BUSINESS STRATEGY
3.2.1 DIFFERENTIATION 3.2.2 COST LEADERSHIP 3.2.3 FOCUS STRATEGY

3.3 FUNCTIONAL STRATEGY
3.3.1 HUMAN RESOURCE 3.3.2 MARKETING 3.3.3 FINANCIAL RESOURCES

Profitability Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Liquidity Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Leverage Position . . . . .

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. . . . . . . . . . . . . . . . . . . The Teledensity increased from 26% to 40%. . . . PTCL's mobile phone subsidiary Ufone's subscriber base grew by more than 87%. . . . . . . . a major 3 . . . . . . . . .INTRODUCTION TO MANAGEMENT 4 FUTURE OF PTCL . . . . . The year 2006-07 in the telecom sector witnessed a phenomenal growth in the mobile phone sector in Pakistan. . PTCL has laid an Optical Fiber Access Network in the major metropolitan centers of Pakistan and local loop services have started to be modernized and upgraded from copper to an optical network. into the market. . On the Long Distance and International infrastructure side. . . . . . Following the open licensing policy in BUY @ PKR 45. 4. . . .40 accordance with the instructions of Government of Pakistan and in exercise of powers conferred by Pakistan Telecommunication (Re-Organization) Act 1996. 1 PTCL – PAKISTAN TELECOMMUNICATION LIMITED 1. most notably China Telecom and Singtel. . from 7. helping to spread the benefits of communication technology across the country. . the Pakistan Telecommunication Authority was established as the Telecom Regulatory body. . . . . . . .. . . . . . . .. .8 million V-fone customers. . . . .49 million to 14 million. PTCL also continues to be the largest CDMA operator in the country with 0. . It has the potential to be an instrumental agent in Pakistan’s economic growth. . Restructuring and re-engineering are in their final stages along with the implementation of ERP system. . . . . . . . which doubled its subscriber base to 60 million. . The year also witnessed the entry of major telecom companies. . . 2002. . . From the end customer's perspective. . . . . . . . . The company maintains a leading position in Pakistan as an infrastructure provider to other telecom operators and corporate customers of the country.1 TODAY’S WORLD IMPORTANCE 5 QUESTIONNAIRE’S 6 suggestions 7 conclusion 8 Bibliography . the basic telephony was put under exclusivity and PTCL was given a seven years monopoly over basic telephony which ended by December 31. . . With the promulgation of Telecommunication (Re-Organization) Act 1996. . . . . the capacity of two SEA-MEWE submarine cable is being expanded to meet the increasing demand of International traffic.1 Introduction of PTCL PTCL is the largest telecommunications provider in Pakistan. . . . . . . . . . . . . . . . . .

In times to come. the PTCL not only bringing the benefit of high speed Internet access to subscribers in major cities but will also generate new revenue streams for future growth/ 1. 1. The future is unfolding around us.INTRODUCTION TO MANAGEMENT initiative was put in place in the shape of 'Broadband Pakistan' service launch as a first step towards providing its customer with more value added service and convenience. we will be the link that allows global communication.4 Core Values • Professional Integrity • Customer Satisfaction ORGANIZATIONAL CHART 4 . We are striving towards mobilizing the world for the future.3 Mission To achieve our vision by having • An organizational environment that fosters professionalism. With this offering. 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 1.2 Vision To be the leading Information and Communication Technology Service Provider in the region by achieving customer satisfaction and maximizing shareholders' value'.

I.INTRODUCTION TO MANAGEMENT PRESIDENT (C.O GENERAL MANAGER C.O C.E.F.T.O GENERAL MANAGER GENERAL MANAGER SENIOR MANAGER SENIOR MANAGER SENIOR MANAGER MANAGER MANAGER MANAGER ENGENEER SUPERVIOSER TECHNICIAN LINEMAN INFORMATION FLOW CHART OF PTCL: 5 .O) C.

create development plans. hold. evaluate career and succession planning scenarios. set up appraisal systems. and work through individual development planning scenarios by customizing the functions of personnel development to meet customer requirements.1 How it works in ptcl 2.INTRODUCTION TO MANAGEMENT Departmental Chart.5 Quality Awareness Programme: 6 . persons and positions).1. 2.2 Implementation of ERP system in T&D: The focus of the project is to set up and maintain the qualifications catalogs. as well as plan. and evaluate appraisals. H-9 Islamabad Branch General Manager Traffic Department Account Department Clerical Department Engineer Senior Accountant Admin Supervisor Operator Staff Technician Supervisor Cashier Line Man 2 STATEGIC MANAGEMENT OF PTCL 2. create and evaluate profiles for a range of objects (for example.1. 2.1.1Customer Care Initiative : To achieve the pinnacle of Excellence in Customer Service envisioned by the President/CEO the Training and Development department has assumed the responsibility for effectively imparting training under the Customer Care Initiative to all PTCL employees.

• Have vast infrastructure and real estate assets which can be leveraged further. • PTCL (Ufone) is market challenger in GSM segment • Ufone is performing well though Warid and Telenor are tough competitors. PTCL is expanding the long distance and infrastructure side through spreading out two sea-me-we submarine cables. Following four types of programmes are under the work plan: • • • • Installation Quality Standards Quality Auditor Course Companywide Quality Awareness ‘Train the Trainer Programme’ offered to the faculty of PTCL training centers 3 SWOT ANALYSIS 3.1 INTERNAL ANALYSIS 3. • Corporate culture akin to government departments. • Slow decision making including external interferences.2 percent to Rs 977 million in 1H/FY07 as compared to Rs 655 million in the corresponding period last.1 Opportunities • Low teledensity of pakistan.1. a 3-year QA plan has been made.2.INTRODUCTION TO MANAGEMENT In order to create quality awareness and skills improvement of PTCL staff.. The project is scheduled from March 2007 to December 2009.1.2 Weakness • Not been able to nurture its growth around customer services oriented strategy • Internal organizational and business processes issues • Monopolistic culture has further added to its complexities • Paknet. Ufone’s profitability increased by 49. 3.2.2 EXTERNAL ANALYSIS 3. • Competitors still depend on PTCL network either directly or indirectly • Experienced Telecom Resources 3. the fixed wireless phone service is poor • Over employment & low productivity. the internet service provider arm of ptcl continues to incur losses due to poor management and lack of network optimization • Ptcl-v.1 Strengths • Largest operational network and infrastructure within ICT (Information & Communication Technologies) segment. Wireless local loop (WLL) and Fixed telephony. • Partnership with new entrants in a deregulated environment. PTCL. • An integrated Monopoly • Market leadership in Local loop. 3..1 Threats 7 . • Global connectivity reliability has been improved.

while maintaining leadership in the telecom sector • Maintain consistency with the Pakistan IT and internet promotion policy of low prices for Bandwidth and Internet access.INTRODUCTION TO MANAGEMENT • Increased competition in long distance continues to exert pressure. • Accelerate expansion of telecom infrastructure to extend telecom services to unserved and undeserved areas. • Encourage fair competition among service providers.2.2 ORGANIZATIONAL L MANAGEMENT CYCLE 8 . • VOIP use is increasing despite ambiguous and discriminatory policies • Exposure to market competition • Migration to Cellular Networks • Ability to Attract & Retain Quality Professionals • Reduction in International Settlement Rate taxable revenue base. 3.

2 BUSSINESS STRATEGY As the ptcl growing its position as the leading ICT service 9 .1 GROWTH PTCL Upcoming IPTV Services Ever wondered what it would be like to receive adverts on TV only for the products that you are interested in buying? What if when you are watching the latest thriller on a movie channel or a live cricket match and you have to suddenly leave to attend to guests. you are still able to come back and see the action from exactly where you left? What if you can see the daily and monthly program list and times for your favorite TV channels with the press of a button? What if you are offered a multi channel TV service with state of the art digital DVD picture quality? Well you won’t have to wonder for too long as all of these and many more features will soon be coming your way in shape of PTCL’s multi channel IPTV service! Broadcast and specialty TV channels – Digital Broadcast TV – Pay-per-view (PPV) Directed advertising – The ability to receive specific adverts for products that you are interested in buying And many more mouth watering features – Gaming – Interactive services – SMS/voice integrated applications 3.1 CORPORATE STRATEGY 3. Blue Blocks are the Strategic functions which are performed at the Strategic level only. 3 TYPES OF ORGANIZATION STRATEGY 3.1.INTRODUCTION TO MANAGEMENT The cycle above describes the Organizational Management process at PTCL. Yellow blocks describe the core functions of the Company performed at all levels in the Organization.

199. and a range of Value Added services including Phone book. formulation of IPTV. Restructuring of the organization. all subscribers who were on Pakistan Package as of 31st March 2008 have been shifted to Pakistan Plus with effect from 1st April 2008 10 . Moreover. timelines and ownerships was developed by the PTCL management.500 minutes of nationwide calls for a fixed package charge of Rs. PAKISTAN PLUS LEADERSHIP Pakistan Plus offers 2.2. Triple Play and converged services. messaging. Investment strategies such as Assets Management for risk diversification and improved Return on Investments. introduction of a corporate KPI based performance measurement system. 3.INTRODUCTION TO MANAGEMENT provider and a profit leader. with defined corporate KPI targets. migration to an end to end IP based network. and call logs. competitive price. The package also includes free voicemail and call waiting. Defining yearly targets on market shares for various voice and data services. were all part of the master plan. employing the state of the art CDMA 2001x technology and nationwide availability. PTCL wireless service gives voice quality of a landline with country-wide coverage. a five year Strategic Master Plan for the Company.2 COST LEADERSHIP.1 DIFFERENTIATION PTCL has by far the largest network coverage. 3. for convenience to customers.2.

00/min Rs. Line rent (excl. 2. taxes) Package charge Local – Peak (8 am to 9 pm) Local – Off Peak (9 pm to 8 am) NWD call Rs. 174 Rs. 199 Rs. Call waiting VALUE LEADERSHIP Value Plus is designed for the internet savvy and offers 1.50/min Voice mail. 75.00 / min Rs.200 internet minutes in addition to 25 nationwide calling minutes per month for a fixed package charge of Rs. 2. taxes) Package charge Local – Peak (8 am to 9 pm) Local – Off Peak (9 pm to 8 am) NWD call Mobile Free Services Rs. 2. 174 NIL Rs. 2.INTRODUCTION TO MANAGEMENT Line rent (excl.00/2 mins Rs. 2. 2.50/min Voice mail.00/2 mins Rs. The package also includes free voicemail and call waiting 11 . 2.00/4 mins Free (up to 2500 minutes) additional minutes would be charged at Rs. Call waiting Mobile Free Services BASIC LERDERSHIP Basic Plus is designed to meet the needs of the low usage segment and includes basic services along with voicemail and call waiting.00/4 mins Rs. 2. All customers who were not on Pakistan Package as of 31st March 2008 have been shifted to Basic Plus with effect from 1st April 2008.

Around 29. 75 Rs. 2.3 FUNCTIONAL STRATEGY 3. 174 Rs. PTCL’s broadband services100. 2.3 FOCUS STRATEGY Broadband and Value Added Services PTCL through diversification and assorted products and services could retain its fundamental presence in the Telecom Sector.000 subscribers by providing services in the five largest cities and had a decent start by adding over 10.3.INTRODUCTION TO MANAGEMENT Line rent (excl.3.2.00/2 mins Rs. taxes) Package charge Local – Peak (8 am to 9 pm) Local – Off Peak (9 pm to 8 am) NWD call Mobile Free Minutes / Services Rs. 2.1 HUMAN RESOURCE DEVELOPMENT HR ASPECTS The transformation from a legacy public sector organization into a responsive and competitive enterprise in the deregulated era could not have been possible without implementing a forward looking Human Capital development and management strategy. Stiff competition from other cable based broadband service providers and local cable operators still persists. 2. Call waiting 3. 25 nationwide minutes. One of the most important objectives of this new strategy was to optimize the workforce which was implemented by offering the voluntary option of separating From PTCL in exchange for financial compensation.00/min Rs. 3. 3.00/4 mins Rs.000 subscribers within the first few months of its operations depicting PTCL’s brand recognition.50/min 1200 Phone n Net minutes. Voice mail.920 employees opted to pursue other career opportunities after accepting terms of voluntary separation from PTCL. Introduction of DSL Broadband services across major cities with plans to include more cities in times to come will enhance the revenue base of PTCL.2 MARKETING 12 .

2 percent.2 percent market share at the end of December 2007. Two major players. PTCL has gained over 1 percent marketshare compared to the same quarter of last year while Telecard added over 5 percent market share during this period.3 FUNCTIONAL STRATEGY Financial Aspects The structural adjustments undertaken by the company in response to the increased competition and substitution impact of mobile expansion has adversely hit the profitability of PTCL in the short run.Great Bear International share is reported to be 3 percent. which has about 54 percent market share of total traffic of WLL segment.which started their services during the quarter. PTCL share came down to 54 percent from 57 percent while Telecard share in total traffic has come down to 22 percent from 30 percent. 13 . PTCL.3. the incumbent operator in fixed line in Pakistan has also emerged as market leader with 57 percent market share followed by Telecard and Worldcall with 19. WorldCall has gained 100 percent and its share reached to 22 percent at the end of 2007 compared to the same quarter last year. policies by the PTA. while Wateen Telecom share is 0. PTCL and Telecard have lost market share in WLL traffic in quarter ending December 2007 when compared with the same quarter of the last year. 3.6 percent and 20.INTRODUCTION TO MANAGEMENT Market Structure PTCL is leading in terms of traffic on WLL in Pakistan. Great Bear International though a smaller shareholder in WLL market but its share is increasing due to its quality of service as it reached to 3 percent as compared to 2 percent in December 2006.

INTRODUCTION TO MANAGEMENT Fig Below: 5 years Financial Analysis of PTCL 14 .

INTRODUCTION TO MANAGEMENT Liquidity Position 15 .

Although the liquidity stance of the company is fairly satisfactory at the moment. This may provide an edge to the company over its competitors. with the current trend in debt ratios bought about largely by changes in current liabilities of the company. The debt to asset ratio of the company had declined considerably in FY05 but the trend reversed in FY06. the new packages can and will inflate your telephone bill quite a bit so be prepared for a hefty setback at the end of this month if you use your PTCL line at all.1 FUTURE OF PTCL PTCL Launches New Packages PTCL recently launched three brand new packages for its consumers. PTCL has actually increased its rates! While almost brilliant in their design. but a continuation of the current negative trend may spell trouble for the company. Leverage Position The debt ratios showed a decreasing trend in the FY07.INTRODUCTION TO MANAGEMENT The liquidity position of the company suffered a setback in FY06. But where every other telecom in the country is slashing its call rates and finding other ways to make money. 4 STRATEGIC MANAGEMENT IN TODAY’S ENVIORMENT OF PTCL 4. as current liabilities grew more sharply. This trend has been witnessed despite increasing current assets. It IS important to note that the company maintains a largely unleveraged capital structure. It may be noted that the company holds large amounts of cash and bank balances compared to the other companies in the business. The short term borrowings of the company have been mounting for the last few years and this has contributed to the current trend of the current ratio. 16 . declining again in FY07.

Q. INDIVIDUAL QUESTIONAIRE NADEEM KHATAK (Engineer/S. No. Are you satisfied with the privatization of PTCL? Ans. What is your qualification? Ans. Which Procedure is followed for hiring employees? Ans. Customers are decreasing because of Etisalat not good policies towards their customers such as Pakistan Package. Q. because employees are not permanent they’re on contract basis because of poor policies of Etisalat. Are your customers are increasing or decreasing? Ans. What facilities PTCL provide to its employees? Ans. According to new method of Etisalat 3 year diploma in engineering is required. According to National Payment Scheme. What is your job experience? Ans.M)? Q.M) H-9 ISLAMABAD Branch Q.INTRODUCTION TO MANAGEMENT 5 QUESTIONS TO NADEEM KHATAK( Engineer/S. BS and MS in Telecom Engineering Q. 30 years job experience in PTCL 17 . a supervisor rank officer gets 15000 salary and online salaries to other employees and medical facilities as well. Old method of hiring by TNT is not used now a day. Q.

Cooperative FACTORS OF ORGANIZATION Customer o Organizations o General public o Supplier Input TIP from Haripur. internal inputs also from Siemens. and Huawei out door optical fiber system from Z-T china including DSL facility. Erricson. Competitor o Wateen Substitute o Zong o Ufone o Mobilink • Pressure Group o News media o 18 . What is your qualification? Ans. 22 years job experience Q. What is your attitude towards junior employees? Ans.INTRODUCTION TO MANAGEMENT INDIVIDUAL QUESTIONAIRE Atta ur Rehman (MANAGER) H-9 ISLAMABAD Branch Q. What is your job experience? Ans. Engineering Q.

A quick look shows that the telecom consumers of Pakistan have been engaged in various forms of struggle with the privatized face of PTCL. 7 SUGGESTION I will give following suggestions to the organization by which they can be able to overcome there drawbacks: • • • • • They have to implement the user intensive technology.INTRODUCTION TO MANAGEMENT ENVIRONMENTAL UNCERTAINITY MATRIX Degree of Change Stable Dynamic • • Customer Competitor 6 CONCLUSION Over the past 2 years. The way PTCL handled the most recent rate increase of local calls (from 0.Net has offered many reviews and commentary about PTCL.4 Rs per minute to 1 Rs per min) is indicative of its attitude towards consumers. Immediate Response to the Customer Increase Network Capacity Improve Complaint Department Proper Billing to the Customer 19 DEGREE OF COMPETITOR • • Supplier Pressure group Simple Complex • Substitute . TelecomPk.

These resources lie in both digital and analog form. Resources which are consulted discussed below: Resources o o o o o o o o o Company’s website .com Economic survey of Pakistan Businessrecorder.www. We are thankful to company management who had welcome and cooperate with us.com PTA Reports 20 .com. from which we have obtain required data. while a visit to company is also made to get further information.INTRODUCTION TO MANAGEMENT 8 Bibliography For successful completion of this project we have utilize different available resources. Most of the information is obtain from Internet.pk Company Annual Reports Magazine Business Economist Google.com Security and Exchange Commission of Pakistan Yahoofinance.ptcl.

INTRODUCTION TO MANAGEMENT PROOF 21 .

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