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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4 FUTURE OF PTCL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 4.1 TODAYS WORLD IMPORTANCE 5 QUESTIONNAIRES

6 suggestions 7 conclusion 8

Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . .

1 PTCL PAKISTAN TELECOMMUNICATION LIMITED

1.1 Introduction of PTCL

PTCL is the largest telecommunications provider in Pakistan. PTCL also continues to be the largest CDMA operator in the country with 0.8 million V-fone customers. The company maintains a leading position in Pakistan as an infrastructure provider to other telecom operators and corporate customers of the country. It has the potential to be an instrumental agent in Pakistans economic growth. 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. On the Long Distance and International infrastructure side, the capacity of two SEA-MEWE submarine cable is being expanded to meet the increasing demand of International traffic. With the promulgation of Telecommunication (Re-Organization) Act 1996, the Pakistan Telecommunication Authority was established as the Telecom Regulatory body. Following the open licensing policy in BUY @ PKR 45.40 accordance with the instructions of Government of Pakistan and in exercise of powers conferred by Pakistan Telecommunication (Re-Organization) Act 1996, the basic telephony was put under exclusivity and PTCL was given a seven years monopoly over basic telephony which ended by December 31, 2002. The year 2006-07 in the telecom sector witnessed a phenomenal growth in the mobile phone sector in Pakistan, which doubled its subscriber base to 60 million. The Teledensity increased from 26% to 40%, helping to spread the benefits of communication technology across the country. PTCL's mobile phone subsidiary Ufone's subscriber base grew by more than 87%, from 7.49 million to 14 million. The year also witnessed the entry of major telecom companies, most notably China Telecom and Singtel, into the market. Restructuring and re-engineering are in their final stages along with the implementation of ERP system. From the end customer's perspective, a major

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. With this offering, 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/

1.2 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 allows global communication. We are striving towards mobilizing the world for the future.

1.3 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

1.4 Core Values Professional Integrity Customer Satisfaction

ORGANIZATIONAL CHART

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PRESIDENT (C.E.O) C.T.O C.I.O

GENERAL MANAGER

C.F.O
GENERAL MANAGER

GENERAL MANAGER

SENIOR MANAGER

SENIOR MANAGER

SENIOR MANAGER

MANAGER

MANAGER

MANAGER

ENGENEER

SUPERVIOSER

TECHNICIAN

LINEMAN

INFORMATION FLOW CHART OF PTCL:

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Departmental Chart, 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

2.1 How it works in ptcl

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.

2.1.2 Implementation of ERP system in T&D:

The focus of the project is to set up and maintain the qualifications catalogs, create and evaluate profiles for a range of objects (for example, persons and positions), evaluate career and succession planning scenarios, set up appraisal systems, as well as plan, hold, and evaluate appraisals, create development plans, and work through individual development planning scenarios by customizing the functions of personnel development to meet customer requirements.

2.1.5 Quality Awareness Programme: 6

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In order to create quality awareness and skills improvement of PTCL staff, a 3-year QA plan has been made. The project is scheduled from March 2007 to December 2009. 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

3.1.1 Strengths
Largest operational network and infrastructure within ICT (Information & Communication Technologies) segment. An integrated Monopoly Market leadership in Local loop, Wireless local loop (WLL) and Fixed telephony. PTCL (Ufone) is market challenger in GSM segment Ufone is performing well though Warid and Telenor are tough competitors. PTCL, Ufones profitability increased by 49.2 percent to Rs 977 million in 1H/FY07 as compared to Rs 655 million in the corresponding period last. Competitors still depend on PTCL network either directly or indirectly Experienced Telecom Resources

3.1.2 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, the internet service provider arm of ptcl continues to incur losses due to poor management and lack of network optimization Ptcl-v, the fixed wireless phone service is poor Over employment & low productivity. Slow decision making including external interferences. Corporate culture akin to government departments.

3.2 EXTERNAL ANALYSIS 3.2.1 Opportunities

Low teledensity of pakistan. Have vast infrastructure and real estate assets which can be leveraged further. Global connectivity reliability has been improved. PTCL is expanding the long distance and infrastructure side through spreading out two sea-me-we submarine cables.. Partnership with new entrants in a deregulated environment.

3..2.1 Threats 7

INTRODUCTION TO MANAGEMENT Increased competition in long distance continues to exert pressure. 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. Accelerate expansion of telecom infrastructure to extend telecom services to unserved and undeserved areas. Encourage fair competition among service providers, 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.

3.2.2 ORGANIZATIONAL L MANAGEMENT CYCLE

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. Blue Blocks are the Strategic functions which are performed at the Strategic level only.

3 TYPES OF ORGANIZATION STRATEGY 3.1 CORPORATE STRATEGY 3.1.1 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 wont have to wonder for too long as all of these and many more features will soon be coming your way in shape of PTCLs 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

3.2 BUSSINESS STRATEGY

As the ptcl growing its position as the leading ICT service

INTRODUCTION TO MANAGEMENT provider and a profit leader, a 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, were all part of the master plan.

3.2.1 DIFFERENTIATION
PTCL has by far the largest network coverage, competitive price, and a range of Value Added services including Phone book, messaging, and call logs. PTCL wireless service gives voice quality of a landline with country-wide coverage, employing the state of the art CDMA 2001x technology and nationwide availability.

3.2.2 COST LEADERSHIP. PAKISTAN PLUS LEADERSHIP Pakistan Plus offers 2,500 minutes of nationwide calls for a fixed package charge of Rs. 199. The package also includes free voicemail and call waiting. Moreover, for convenience to customers, all subscribers who were on Pakistan Package as of 31st March 2008 have been shifted to Pakistan Plus with effect from 1st April 2008

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Line rent (excl. 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. 2.00/2 mins Rs. 2.00/4 mins Free (up to 2500 minutes) additional minutes would be charged at Rs. 2.00 / min Rs. 2.50/min Voice mail, 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. 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.

Line rent (excl. taxes) Package charge Local Peak (8 am to 9 pm) Local Off Peak (9 pm to 8 am) NWD call Mobile Free Services

Rs. 174 NIL Rs. 2.00/2 mins Rs. 2.00/4 mins Rs. 2.00/min Rs. 2.50/min Voice mail, Call waiting

VALUE LEADERSHIP Value Plus is designed for the internet savvy and offers 1,200 internet minutes in addition to 25 nationwide calling minutes per month for a fixed package charge of Rs. 75. The package also includes free voicemail and call waiting

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Line rent (excl. 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. 174 Rs. 75 Rs. 2.00/2 mins Rs. 2.00/4 mins Rs. 2.00/min Rs. 2.50/min 1200 Phone n Net minutes, 25 nationwide minutes, Voice mail, Call waiting

3.2.3 FOCUS STRATEGY Broadband and Value Added Services

PTCL through diversification and assorted products and services could retain its fundamental presence in the Telecom Sector. 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. Stiff competition from other cable based broadband service providers and local cable operators still persists. PTCLs broadband services100,000 subscribers by providing services in the five largest cities and had a decent start by adding over 10,000 subscribers within the first few months of its operations depicting PTCLs brand recognition.

3.3 FUNCTIONAL STRATEGY 3.3.1 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. 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. Around 29,920 employees opted to pursue other career opportunities after accepting terms of voluntary separation from PTCL.

3.3.2 MARKETING
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Market Structure
PTCL is leading in terms of traffic on WLL in Pakistan, which has about 54 percent market share of total traffic of WLL segment. Two major players, 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. 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. WorldCall has gained 100 percent and its share reached to 22 percent at the end of 2007 compared to the same quarter last year. PTCL, 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 19.6 percent and 20.2 percent market share at the end of December 2007.Great Bear International share is reported to be 3 percent, while Wateen Telecom share is 0.2 percent,which started their services during the quarter. 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. 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. policies by the PTA.

3.3.3 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.

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Fig Below: 5 years Financial Analysis of PTCL

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Liquidity Position

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INTRODUCTION TO MANAGEMENT The liquidity position of the company suffered a setback in FY06. This trend has been witnessed despite increasing current assets, as current liabilities grew more sharply. 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. It may be noted that the company holds large amounts of cash and bank balances compared to the other companies in the business. This may provide an edge to the company over its competitors. Although the liquidity stance of the company is fairly satisfactory at the moment, 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. The debt to asset ratio of the company had declined considerably in FY05 but the trend reversed in FY06, declining again in FY07. It IS important to note that the company maintains a largely unleveraged capital structure, with the current trend in debt ratios bought about largely by changes in current liabilities of the company.

4 STRATEGIC MANAGEMENT IN TODAYS ENVIORMENT OF PTCL

4.1 FUTURE OF PTCL PTCL Launches New Packages

PTCL recently launched three brand new packages for its consumers. But where every other telecom in the country is slashing its call rates and finding other ways to make money, PTCL has actually increased its rates! While almost brilliant in their design, 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.

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5 QUESTIONS TO NADEEM KHATAK( Engineer/S.M)?

Q. What facilities PTCL provide to its employees? Ans. According to National Payment Scheme, a supervisor rank officer gets 15000 salary and online salaries to other employees and medical facilities as well. Q. Which Procedure is followed for hiring employees? Ans. Old method of hiring by TNT is not used now a day. According to new method of Etisalat 3 year diploma in engineering is required. Q. Are your customers are increasing or decreasing? Ans. Customers are decreasing because of Etisalat not good policies towards their customers such as Pakistan Package. Q. Are you satisfied with the privatization of PTCL? Ans. No, because employees are not permanent theyre on contract basis because of poor policies of Etisalat.

INDIVIDUAL QUESTIONAIRE NADEEM KHATAK (Engineer/S.M) H-9 ISLAMABAD Branch

Q. What is your qualification? Ans. BS and MS in Telecom Engineering Q. What is your job experience? Ans. 30 years job experience in PTCL

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INDIVIDUAL QUESTIONAIRE Atta ur Rehman (MANAGER) H-9 ISLAMABAD Branch

Q. What is your qualification? Ans. Engineering Q. What is your job experience? Ans. 22 years job experience Q. What is your attitude towards junior employees? Ans. Cooperative

FACTORS OF ORGANIZATION
Customer
o Organizations o General public o

Supplier
Input TIP from Haripur, internal inputs also from Siemens, Erricson, and Huawei out door optical fiber system from Z-T china including DSL facility.

Competitor
o Wateen

Substitute
o Zong o Ufone o Mobilink

Pressure Group
o News media o

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ENVIRONMENTAL UNCERTAINITY MATRIX

Degree of Change Stable Dynamic Customer Competitor

6 CONCLUSION Over the past 2 years, TelecomPk.Net has offered many reviews and commentary about PTCL. A quick look shows that the telecom consumers of Pakistan have been engaged in various forms of struggle with the privatized face of PTCL. The way PTCL handled the most recent rate increase of local calls (from 0.4 Rs per minute to 1 Rs per min) is indicative of its attitude towards consumers.

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. 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

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

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PROOF

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