Professional Documents
Culture Documents
Ufone: Internship Report
Ufone: Internship Report
UFONE
FAIZA YOUSUF
Project report Submitted in partial fulfillment of the requirements for the
degree of Master of Business Administration in Finance
AT
National University of Modern Languages
Islamabad, Pakistan
OCTOBER, 2009
It is hereby certified that the report has been thoroughly and carefully read and recommended to the
Faculty of Management Sciences for acceptance of Final Internship Report. by Faiza Yousuf Roll No.
7902, Session (Aug 2007 to Jun 2009) Morning, in partial fulfillment of the requirements for the degree
of Master of Business Administration in Finance of National University of Modern Languages,
Islamabad.
Supervisor: _______________
Observer: _________________
Head of Department:________________
Acknowledgment
By the Grace of Almighty, the most Merciful, the most Beneficial, I'm today submitting my
internship report, at the end of my pragmatic experience and I'm glad to have it with Ufone, where you
come first, because its all U. Thirst of learning is inside you, and whatever the environment, if you're
willing to learn, you do. At Ufone, I had a new, challenging, yet a perfect environment to learn. My
parents' prayers and their teachings were always with me and hereby I will like to take this opportunity to
show my gratitude to all those who made my internship an adventurous outwit.
.
Here I am, from more professional and rather corporate environment of Ufone main branch
Islamabad. I never knew what it all going to be. As I enter the office, it took me a minute to realize that
the person sitting in the half fortified walls is the manager. At a glance, I grasped the interesting
personality of the officer and today at the end of my internship; hes one of the persons Ill always
remember. Sir I learnt from you is always going to be respected, no matter whatever business field I
choose. Those tips are always in my memory bag.
Despite of the most hectic schedule, my teacher helped me so much. I'm really grateful to you for
clarifying my concepts and making me learn from your experience. Whatever I learnt from you will
definitely help me in my upcoming study and the professional life ahead. Thank you so much for being so
co-operative and so helpful every time. I hope I have been up to your expectations.
FAIZA YOUSUF
DEDICATION:
I dedicated my work to my parents, brother and friends. They help me a lot in the
accomplishment of this task. Without their help assistance and cooperation I will not be
able to complete my work. They encourage me at every step and boost up my moral. I
thank them all from the core of my heart.
Executive Summary
The mobile industry of Pakistan has seen phenomenal growth in recent years. The total mobile
subscribers in 2007 were more than 63 million, a growth of more than 80% from the previous
year. The telecom sector of Pakistan was deregulated in 2003, and mobile industry being a part
has seen phenomenal growth ever since. Many analysts believe that Pakistan is one of the fastest
growing telecom markets in the world.
Currently there are five diverse companies making the mobile industry of Pakistan, Mobilink
being one of them. Other companies include Ufone, Telenor, Warid, Zong and Mobilink enjoys
being the market leader with a 36% market share as of July, 2008.
Ufone GSM is a Pakistani GSM cellular service provider. It is one of six GSM Mobile
companies in Pakistan and is a subsidiary of Pakistan Telecommunication Company. Ufone
expanded its coverage and has added new cities and highways to its coverage network. After the
privatization of PTCL, Ufone is now owned by Etisalat. During the year Ufone successfully
completed the network expansion of Phase 4 in existing as well as in new cities and towns which
amounted to more than US Dollar 170 million. As a result the asset base of the Company has
increased from Rs. 20 billion to Rs. 27 billion.
GPRS Roaming facility is available with more than 75 Live Operators across 59 countries.
The company has also been awarded a new License for providing cellular services in Azad
Jammu & Kashmir and the Northern Areas. A strong focus will be on maintaining high quality of
service, which is always a benchmark of Ufone, increasing usage and exploring new revenue
streams on value added services, market visibility through various market initiatives to fulfill
subscribers satisfaction and demand and above all to increase the value of investment for the
shareholders.
Ufone agreement with Huawei set a competitive edge over its competitors because Huawei will
provide its future-oriented Energy GSM solution to expand Ufone's network to cover over 2200
cities, towns, villages and all major highways in the country. Ufone offer many services like
prepay, postpaid, corporate services, mobile product services and mobile entertainment services.
During my internship period at Ufone franchise I perform so many tasks like sales the Ufone
connections, change the packages, ownership transfer, handle the customer complaints, provide
information to the customers etc. My report covers the practical experience & exposure that I
gained at Ufone including the problems I faced with timely steps taken for its solution.
Lastly I would say that Ufone became the market leader by introducing new products and
services that took full advantage of new technologies over the years and I hope that it will tend to
do so in the coming future and provide stiff competition to any challenger that poses a threat to
its leadership in the market.
Table of Contents
EXECUTIVE SUMMARY..............................................................................................................................................................................5
1
INTRODUCTION.................................................................................................................................................................................8
1.1
COMPANY PROFILE........................................................................................................................................................................14
1.2
KEY ACCOMPLISHMENTS............................................................................................................................................................16
1.3
COMPETITIVE EDGE..................................................................................................................................................................16
1.4
NETWORK COVERAGE...............................................................................................................................................................16
1.5
INTERNATIONAL COVERAGE.......................................................................................................................................................17
1.6
CUSTOMER SERVICE..................................................................................................................................................................17
1.7
POSITIONING.............................................................................................................................................................................17
1.8
UFONE SERVICES......................................................................................................................................................................18
1.9
UFONE MANAGEMENT...............................................................................................................................................................19
1.10
STRUCTURE OF THE ORGANIZATION.........................................................................................................................................20
1.11
DEPARTMENTS...........................................................................................................................................................................20
1.12
ORGANIZATIONAL STRUCTURE...................................................................................................................................................21
2
PEST ANALYSIS.................................................................................................................................................................................23
2.1
ENVIRONMENTAL ANALYSIS........................................................................................................................................................23
2.1.1
Major Product Lines Market Segment..................................................................................................................................23
2.1.2
Growth Rate of Entire Industry.............................................................................................................................................25
2.2
SOCIAL & POLITICAL ANALYSIS..................................................................................................................................................26
2.2.1
Major Competitors................................................................................................................................................................26
2.2.2
Their Market Shares..............................................................................................................................................................28
2.2.3
Their Goals and Strategies....................................................................................................................................................29
2.3
TECHNOLOGY ANALYSIS.............................................................................................................................................................31
2.3.1
Technical Methods That Affect the Industry..........................................................................................................................31
2.3.2
Innovation..............................................................................................................................................................................32
2.4
SWOT ANALYSIS OF UFONE.......................................................................................................................................................33
3
INTERNSHIP DETAIL......................................................................................................................................................................36
INTERNSHIP AT UFONE FRANCHISE...................................................................................................................................................36
DEPARTMENT WORKED DURING INTERNSHIP..............................................................................................................................37
3.1
ACTIVITIES DONE WITHIN CASH MANAGEMENT DEPARTMENT................................................................................................37
3.1.1
Daily Activities.......................................................................................................................................................................37
3.1.2
Occasional Activities.............................................................................................................................................................38
3.1.3
Month End Activities.............................................................................................................................................................39
4
LIQUIDITY RATIO ANALYSIS.......................................................................................................................................................48
4.1
DAYS' SALES IN RECEIVABLES:...................................................................................................................................................48
4.2
ACCOUNTS RECEIVABLE TURNOVER:..........................................................................................................................................49
4.3
ACCOUNTS RECEIVABLE TURNOVER IN DAYS:...........................................................................................................................50
4.4
CURRENT RATIO:.........................................................................................................................................................................51
ACID TEST OR QUICK RATIO............................................................................................................................................................................52
CASH RATIO......................................................................................................................................................................................................53
4.5
DEBT TO EQUITY RATIO...............................................................................................................................................................54
4.6
DEBT TO TANGIBLE NET WORTH..................................................................................................................................................55
4.7
SALES TO FIXED ASSETS..............................................................................................................................................................55
4.8
ROI (RETURN ON INVESTMENT).................................................................................................................................................56
4.9
RETURN ON TOTAL EQUITY..........................................................................................................................................................57
4.10
GROSS PROFIT MARGIN...............................................................................................................................................................59
5
IDENTIFICATION OF A MAIN PROBLEM AND FINDINGS...................................................................................................61
5.1
MAIN PROBLUMS.........................................................................................................................................................................61
5.1
FINDINGS..............................................................................................................................................................................61
6
CONCLUSION....................................................................................................................................................................................64
6.1
RECOMMENDATION......................................................................................................................................................................65
6.2
REFERENCE..................................................................................................................................................................................67
6.2.1
Web Resources.......................................................................................................................................................................67
C HAPTER NO : 1
INTRODUCTION
Introduction
Since the inception of Pakistan, basic telecom services were being provided by a monopolist,
previously called as Telephone and Telegraph department (T&T). The department was being run
by the Government and played multiple roles of regulator, policy maker and operator in the
country. The T& T department was later converted into a corporation. Although the corporation
was earning huge profits from the services, it was re-investing the same profits into the sector for
the provision of more telecom service but the investment was not enough. Further, with the
technological advancement, more and more telecom services were becoming available but there
was not enough money available with the corporation to install new telecom systems for the
provision of modern services. Resultantly, a digital divide prevailed in Pakistan and we remained
far behind our neighbors and other comparable countries in terms of telecom access.
Cellular mobile services in Pakistan were commenced in 1990s when two cellular mobile
telephone licenses were awarded to Paktel and Pak Com (Instaphone) for provision of cellular
mobile telephony in Pakistan. Currently there are four cellular players in the market, two with
GSM and two with DAMPS technology. Cellular subscribers though grew over the years
however, due to partial competition; cellular companies could not meet the growing demand in
Pakistan. Keeping in view the above factors, government of Pakistan has decided to move away
from monopoly situation in basic telephone and introduce more competition in the cellular
market of Pakistan. The year 2003-2004 is considered as a historical year in the history of
telecommunication in Pakistan. The telecom deregulation which started early this year in
Pakistan has revolutionized the whole industry. Significant landmarks are achieved and the local
telecom scenario is completely changed. Today all telecom services in Pakistan are open to
competition whereby incumbent monopolies will now be competing with telecom giants of the
world working in Pakistan. Telecom services consumers are forecasted to increase by many folds
due to price reduction under competition and price regulation of SMP operators by the Authority.
Telecom sector is seeing exorbitant growth in Pakistan. The sector is said to be growing at a pace
of 170 per cent yearly. Mobile subscribers are 71.5 million as of October 2007, according to
Pakistan Telecommunications Authority (PTA), 2.7 million subscribers are added monthly. In
fact Pakistan has the highest mobile penetration rate in the region.
Mobilink
Ufone
Paktel CM
Warid Telecom
Telenor
based telecom company Orascom. It has been operating in Pakistan since 1994.
Subscriber share was around 42% at the end of June 2007.
http://www.telenor.com.pk/Norways Telenor, a recent entrant with about a billion US dollar
investment in Pakistan has been doing well, based on its recent earning report. It
has about 16% of the market share. Telenor stock is listed in the Oslo stock
market (TEL) and in US (TELNY.PK).
http://www.waridtel.com/ Warid, owned by the Abu Dhabi group of the United Arab
Emirates and sister of Wateen group is number 3 with 17% market of subscribers.
Recently it sold 30% share to SingTel.
http://paktel.com/gsm/ CMPak, formerly Paktel, is the latest target of foreign
acquisition. After it
got acquired by China Mobile it is in the process of rebranding. CMPak has
2% of market share.
10
11
VISION
We seek to create our own future and in the
process evolve and grow alongside the evolution
and growth of our team members and in turn
provide U the grounds most fertile for the career
growth, and also revolutionize the way everybody
communicates.
12
MISSION STATEMENT
13
The company commenced its operations under the brand name of Ufone from Islamabad on
January 29 2001. Ufone expanded its coverage and has added new cities and highways to its
coverage network. After the privatization of PTCL, Ufone is now owned by Etisalat.
Ufone
Demand
1.1
Growth
COMPANY PROFILE
Time
PTML is a wholly owned subsidiary of PTCL established to operate cellular telephony. The
company commenced its operations, under the brand name of Ufone from Islamabad on January
29 2001.
During the year, as a consequence of PTCLs privatization, 26% of its shares were acquired by
Emirates Telecommunication Corporation (Etisalat). Being part of PTCL, the management of
Ufone has also been handed over to Etisalat. During the year July 2005 to June 2006, Ufone
continued on the path to success. The Company further expanded its coverage and has added
new cities and highways. Ufone has network coverage in more than 750 cities, towns and across
all major highways of the country.
During the year Ufone successfully completed the network expansion of Phase 4 in existing as
well as in new cities and towns which amounted to more than US Dollar 170 million. As a result
the asset base of the Company has increased from Rs. 20 billion to Rs. 27 billion.
14
During the year Ufone adopted the policy of simplified tariffs with no hidden charges, which
resulted in positive impacts on the usage trends of subscribers as well as total subscriber base,
which has increased from 2,579k in June 2005 to 7,487k in June 2006. Ufone currently caters for
international roaming to more than 195 live operators across 119 countries and introduced
International roaming facility for Prepaid subscribers in Saudi Arabia, United Kingdom, United
Arab Emirates, Singapore, Portugal and Kuwait with lowest rates, featuring no security deposit
and activation charges. GPRS Roaming facility is available with more than 75 Live Operators
across 59 countries.
The company has also been awarded a new License for providing cellular services in Azad
Jammu & Kashmir and the Northern Areas.
Operating Performance Ufones operational performance has been very encouraging. Despite the
stiff competition in Pakistan telecom market which has led to reduction of prices to bare
minimum level, due to its aggressive policies and exercising strict control over expenses the
Company managed to improve its revenue and after-tax profit by 87% and 54% respectively, as
compared to last year.
Future Plans keeping in view the growth potential of the cellular industry there is no option but
to be aggressive in order to remain a potent force in the cellular industry. In order to extend
cellular network to new cities, towns and highways and enhance its current installed capacities in
existing cities, Ufone has finalized a huge network expansion contract amounting to about USD
550 million, which will enhance the subscribers capacity by 10 million. This is the largest ever
expansion project of Ufone.
A strong focus will be on maintaining high quality of service, which is always a benchmark of
Ufone, increasing usage and exploring new revenue streams on value added services, market
visibility through various market initiatives to fulfill subscribers satisfaction and demand and
above all to increase the value of investment for the shareholders.
15
Pakistan, and lead the way in introducing GPRS international roaming and prepaid international
roaming for these services in the Pakistani market.
1.3
COMPETITIVE EDGE
Ufone agreement with Huawei set a competitive edge over its competitors because Huawei will
provide its future-oriented Energy GSM solution to expand Ufone's network to cover over 2200
cities, towns, villages and all major highways in the country. The network also allows Ufone
subscribers to enjoy high-speed wireless data service.
The GSM contract for Ufone also include Huawei's new generation GSM dual density BTS that
feature high integrated and receiving sensitivity to improve the network performance and lower
the cost of network construction and O&M expenditure. In addition, Huawei will provide Mobile
Soft switch solution based on the advanced R4 architecture to satisfy Ufone's network expansion
requirements, enables the telecom service provider to evolve into 3G smoothly.
The other competitive edge is that Ufone is very cheap and its packages and call rates are very
attractive for customers and the main competitive edge is Ufone is the subsidiary of Pakistan
Telecommunication limited.
1.4
NETWORK COVERAGE
As one of the fastest growing mobile communication markets in the world, Pakistan becomes the
target of international operators. Ufone spent less than 4 months attracting more than 1 million
mobile subscribers. In order to meet the need of rapid growth of subscribers and support its
marketing strategy, Ufone joined hands with Huawei. In November 2006, Huawei completed the
construction of hundreds of RFI sites by turnkey way including civil engineering, satisfying
Ufone need of the monthly increment of 1 million subscribers. With .Huawei's EnerG GSM
provide more high speed wireless data service, and thus further enhance service offerings to
Ufone subscribers. At Ufone we aim to provide you with wider coverage, superior connectivity,
clear signals & voice quality. Covering over 2404 key destinations your Ufone is the ultimate
means to stay connected wherever your business takes you allowing seamless roaming through
the network providing the best nationwide coverage. Ufone, being one of the leading cellular
service providers has recently launched its service in many new cities. Keeping up with its
rapidly expanding its network. Ufone keeps on adding new cities with superior network that
continues to expand. Ufone covers all major cities of Pakistan now you can enjoy comprehensive
16
coverage in areas like the GT Road, Super Highway & Motorway etc. So wherever you are in
Pakistan Ufone keeps you connected.
1.6
CUSTOMER SERVICE
Ufone is proud to have an efficient and friendly customer service through 21 company-owned
Sales & Customer Service Centers and nearly 250 franchisees across the country. The outlets are
able to service the customers with innovative solutions, and are empowered with Web based
franchise management systems. Ufone is poised to face the ever increasing challenges of the
market and is confident it will attract new customers. It has the ability to retain its existing
customer base with a high level of customer satisfaction via optimum network service and a 24
hour call center facility.
1.7 POSITIONING
In keeping with the upcoming competition and market dynamics, Ufone increased its focus on
the youth segment (which comprises 50% of the population), with the Prepay brand. By
designing market focused products, Ufones brand team launched aggressive campaigns, which
further increased the brand equity. The new brand image gained huge popularity amongst the
targeted market. A recent marketing survey conducted by a prominent marketing research
company showed that Ufone has considerably increased its brand visibility and image. Ufones
Prepay brand is now considered to be one of the most favored brands by the youth market and is
followed by other mobile operators launching their respective brands for the youth market.
1.8
UFONE SERVICES
17
Prepaid Services
Tariff
Recharge
SMS bundle
U-Circle
International Calling
Products & Features
U-share
Public Demand
Life
Call Details
Postpaid Services
Tariff
International Calling Tariff
Postpaid Supplementary Connections
Boundless Roaming
Value added Services
Rewards
Payment Choices
Customer Care
Blackberry
Corporate Services
18
U-talk
Phonebook
My-phone
Infotainment
Urdu info services
Pocket data services
VPN
Call Features
Messaging services
Missed call notification
U-Share
Voice Bucket
U-Tunes
Ring Tones
Games
Wallpapers
Animations
Picture Messages
Mobile Logos
Themes
Song Dedication
Ufone is basically equal employment opportunity organization. Almost 65% of its employees are male
and 35% are female. The job description of each and every employee is predefined. Performance
appraisal is done on annual basis. Average age of Ufone employee is between 30 to 40 years. This shows
that they prefer young and energetic people for their middle and lower level management. High profile
well experienced persons are considered for top-level management.
The employees at Ufone are very devoted as they are given a wonderful learning environment to work;
pay offered to them is also very attractive chance of progress motivates them to work more. The job
analysis is done on targets assigned and daily routines. The employees are indeed very satisfied and
motivated. The human resource of Ufone is highly skillful, educated and committed towards their work.
Mostly people working in Ufone are MBAs and masters in specialized fields. Total number of Ufone
employees is 3000 all over Pakistan. According to them their human resource is their biggest assets and
they want committed people. Their human resource department is a well-established department working
on career development and compensation of their employees. A continuous training is conducted inside
and outside the organization to improve the skills of the employee. On achieving different target different
intrinsic and extrinsic rewards are given.
1.11
DEPARTMENTS
As shown in the organizational structures there are 7 departments, which are prevailing in Ufone.
Finance
Marketing
Engineering
Customer Care
Quality Assurance
Information System
Human Resource & Admin
20
1.12
ORGANIZATIONAL STRUCTURE
CEO
GM
Business Unit
Manager
(BUM) North
Customer
GM
care
HR &GM
Admin
BUM Central
Finance
GM
Information
Systems
GM
BUM South
Similar
Lines for
the other
two BUMS
NOTE:
Marketing
GM
GM
Engineering
Quality
Assurance
There are 7 different departments each headed by a General Manager. They report directly to the CEO.
Then there are three BUMs (Business Unit Managers) who report directly to the CEO but they are also
directed and responsible to report to all the GMs of the 7 other departments. BUMs are divided
geographically into three divisions
CHAPTER NO. 2
A NALYSIS
22
2 PEST Analysis
2.1 Environmental Analysis
2.1.1 Major Product Lines Market Segment
Mobile Industry has been very effective in introducing new and innovative products and services over the
years. The major product lines can be segmented into, three categories, which are as follows:
1. Consumer Packages
2. Value Added Services
3. Corporate Packages and Services
These product lines have a range of different services, catering to different market segment.
2.1.1.1 Consumer Packages
The consumer packages of the mobile Industry include the prepaid and postpaid packages being provided
by the different cellular providers of Pakistan.
Prepaid packages, due to their nature is the most common type of package being used today by millions
of Pakistanis. Prepaid packages provide a sense of affordability, whereby consumers have the option of
only recharging their accounts, when needed. This affordability has led to a massive increase in the
prepaid subscriber base, with everyone from housewives to teenagers; to electricians to small shop
owners all using prepaid packages. The main user segments of prepaid packages include the lower,
middle and middle upper class of the country. Furthermore, a number of people use prepaid packages as a
second number, which also include people from the upper class..
Mobile companies today have used immense popularity of prepaid packages to introduce packages that
are targeted to different segment. These include Telenors Djuice, targeted towards teenagers and young
individuals and Ufone night packages, targeted towards students outside their home. Furthermore,
packages that bill at 1min, 30 second and per second have also been introduced by mobile companies.
Postpaid packages were introduced, keeping in mind, the businessmen and executives. Postpaid packages,
due to their nature provided the benefits of connectivity 24/7, without the fuss of scratch cards and
recharge of accounts. Furthermore, as competition rose in the mobile industry and new entrants came;
postpaid packages were made more affordable. The work of Warid in this concern is an example, creating
postpaid packages as affordable as prepaid ones. The main market segments, towards which the postpaid
packages are targeted, include small and medium businessmen, industrialists, bureaucrats and people of
23
the upper class. However with the affordability of postpaid packages, people from the middle class have
also been seen using post paid packages.
24
As the above figure shows, the mobile industry saw phenomenal growth from 2006-2009. According to
PTA, on average 2.3 million subscribers were added every month during 2006-07.
Furthermore, in 2003-04 the sector was offering 466,068 direct and indirect employments, which in 200607 more than doubled to 1,366,698 employments. Also the cellular mobile density or mobile penetration
in the total population has also increased over the years. In July 2008, the mobile density reached 55.62%.
It was 54.7% in Dec 2007 and 39.94% in Dec 2006, according to official figures.
Also during 2006-07 the revenue of mobile industry was Rs.133 billion, an increase of 48% from
pervious year
25
However, none the less, the growth has subsided since 2006, from 170.2% in December 2006 to 80.7% in
December 2007, the major reasons of which include the crackdowns on SIM registration, rising taxes and
the general economic conditions of the country.
Major Competitors
2.2.1.1 Mobilink
It started as a joint venture of IWC, Motorola and Saif Group in 1994 with GSM digital technology.
Foreign partners later sold out and now Mobilink is a subsidiary of Orascom. It is the current market
leader with a strong nationwide footprint and 56% market share. Mobilink is benefiting from its earlier
entry in the market, its GSM technology and availability of a large variety of cell phone models.
Mobilink is currently the largest cellular company in the country as far as the number of subscribers and
covered cities are concerned. The company proudly boasts of being the first cellular service provider in
Pakistan to operate in a 100% digital GSM technology.
It is currently providing nationwide coverage in over 300 cities and also has a roaming partnership with
210 operators worldwide. It also got an ISO 9002 Quality Management Systems Certification for billing,
engineering department and customer service contact centre. Mobilink has also been nominated for the
category of Best Mobile Operator of the Year, Regional India and Subcontinent Awards at the Asian
Mobile News Awards 2004.
2.2.1.2 Telenor
Telenor Pakistan is 100% owned by Telenor ASA and adds on to its operations in Asia together with
Thailand, Malaysia and Bangladesh. Telenor acquired the license for providing GSM services in Pakistan
in April 2004, and had launched its services commercially in Islamabad, Rawalpindi and Karachi on
March 15, 2005 and on March 23, 2005 Telenor started its services in Lahore, Faisalabad and Hyderabad.
Telenors investment in Pakistan is the single largest direct European investment in Pakistan.
By the end of July 2008, the total subscribers of Telenor exceeded 18 million, with a market share of
20%. Telenors network covers more than 3000 cities, towns and highways throughout Pakistan.
Furthermore, Telenor Pakistan has more than 5,000 cell masts throughout Pakistan, making it the 2 nd
largest network in Pakistan and 3rd in terms of customer base.
Telenor has a strategic alliance with Nokia Siemens Networks for expansion in Pakistan. With USD 1
billion already invested, Telenor has extended agreements with its vendors, including Nokia Semens for
network expansion and services until 2009. The agreements will result in USD750 million worth of orders
from Telenor Pakistan.
2.2.1.3 Warid
Warid Telecom is a joint venture between Abu Dhabi Group & SingTel Group. In 2004, Warid Telecom
International LLC, purchased a license for operating a nationwide mobile telephony network, (WLL) and
long distance international (LDI) for $291 million US dollars and was the first venture of Warid Telecom
International LLC. Warid Pakistan launched its services in May 2005 and is based in Lahore.
26
Abu Dhabi Group is one of the largest business groups in the Middle East and the single largest foreign
investor in Pakistan. Abu Dhabi Group entered into a strategic alliance with Singapore Telecom.
Subsequent to this transaction in July 2007, telecom giant SingTel acquired 30% percent equity stake in
Warid Telecom, Pakistan, for US$758 million- valuing the company at an enterprise value of $2.9 billion.
This partnership is part of a strategy to support Warid Telecoms continued growth and to enhance its
market position.
In July 2008, Warids total subscribers were more than 15 million subscribers and enjoyed 4 th position in
the market with a market share of 18%. In June 2008, Warid Telecom announced it would invest $1.5
billion by end of this year and $2.5 billion by end of 2009 to expand and modernize its network in
Pakistan.
2.2.1.4 Zong
China Mobile Pakistan (CMPak) is a 100% subsidiary of China Mobile. The pioneering overseas set up of
China Mobile came through acquisition of a license from Millicom to operate a GSM network in
Pakistan. With ambitious plans to cater to the fastest growing Pakistani market and to win over the ever
demanding Pakistani customer, CMPak's edge comes from the experience and expertise of running the
world's largest telecom service and the commitment they make to setting quality and customer relations
standards. ZONG is the first International brand of China Mobile being launched in Pakistan.
On 22nd January 2007, Millicom International Cellular S.A. announced that it would sell its 88.86 percent
stake in Paktel Ltd. to China Mobile for $284. On 4th May 2007, Paktel was renamed to CMPak and then,
on 16th May 2007, China Mobile announced that it had upped its stake in CMPak to 100%. It later
rebranded branded Paktel to Zong.
In July 2008, the total subscribers of Zong were more than 4 million and enjoyed 5 th position in the
market with 5% share in the market. So far CMPak has invested more than US$ 700 million in the
telecom sector in Pakistan and an additional US$ 800 million will be invested till the end of year 2008.
27
In 2007, Ufone still remained second (14,014,044) in terms of mobile subscribers and Telenor third
(10,701,332), followed closely by Warid (10,620,386), which remained forth. Zong was fifth (1,024,563)
and Instaphone sixth (333,081). The total subscribers in 2007 were 63 million (63,159,857).
28
2.2.3
2.2.3.1 Mobilink
It started as a joint venture of IWC, Motorola and Saif Group in 1994 with GSM digital technology.
Foreign partners later sold out and now Mobilink is a subsidiary of Orascom. It is the current market
leader with a strong nationwide footprint and 56% market share. Mobilink is benefiting from its earlier
entry in the market, its GSM technology and availability of a large variety of cell phone models.
Mobilink is currently the largest cellular company in the country as far as the number of subscribers and
covered cities are concerned. The company proudly boasts of being the first cellular service provider in
Pakistan to operate in a 100% digital GSM technology.
It is currently providing nationwide coverage in over 300 cities and also has a roaming partnership with
210 operators worldwide. It also got an ISO 9002 Quality Management Systems Certification for billing,
engineering department and customer service contact centre. Mobilink has also been nominated for the
category of Best Mobile Operator of the Year, Regional India and Subcontinent Awards at the Asian
Mobile News Awards 2004.
2.2.3.2 Telenor
Telenor since its inception in 2005, has been an aggressive company, trying to gain market share from
other competitors, first it took the third position from Warid (another company that started in 2005) in
2007 and is now giving stiff competition to Ufone (currently second 1) and is favorite in gaining the
position from its rival company.
The main goal of Telenor is to help its customers get the full benefit of communications services in their
daily lives. This is also reflected in their vision, which is were here to help. The main goal of Telenor is
to provide services, which take use of the latest technologies and are also new to the industry, thus
providing their customers with the full benefits of communications, which other companies are not able to
provide. Telenors slogan or punch line also reiterates their goal which is the smart call. Henceforth, by
accomplishing its vision, Telenor would be able to take the second position in the industry and can then
provide competition to the market leader-Mobilink.
The strategies used by Telenor to achieve its goals is by being creative, that is providing new and modern
services, that take advantages of new technologies but are also easy to understand and use. Some of the
creative products introduced by Telenor over the years include: EasyLoad, SmartShare, mobileTV, largest
network of EDGE, PicShare, international packages like Djuice and many more. All these services are
very creative, never been introduced before and helping all its customers around Pakistan.
2.2.3.3 Warid
Warid started its operations in May 2005, and enjoyed a good market share in the industry, however it has
lost its subscribers to its competitors in recent years, leading to its loss of position in the industry. The
main goal of Warid is to maintain and strengthen its current market share and increase to positions, which
it earlier held in the industry.
29
The major strategy used by Warid is to create a sense of confidence among its customers that it is the best
network for their lives. That is it provides the best calling and sms rates, including the value added
services. Its slogan, life ka network also provides emphasis to this point.
Warid had earlier efficiently promoted its postpaid packages as affordable as its prepaid packages, a
strategy that increased its postpaid customers significantly in the mobile industry, at a time when overall
post paid connections were decreasing. Currently its agreement with SingTel will also provide emphasis
to its goals and associated strategies.
2.2.3.4 Zong
Zong, a recent entrant in the mobile industry is a subsidiary of China Mobile. Zongs inception was the
result of the takeover of Paktel by China Mobile in 2007. Being a new entrant in the mobile industry, its
goal is to gain market share, currently Zong is a small part of the industry, but however it aims to increase
its market share reach above 10% by 2010.
The main strategy of Zong in this concern is to allow people to communicate at will, without worrying
about tariffs, network coverage, capacity issues or congestion. Its slogan Say it All, provide the
emphasis to their strategy.
Currently Zong is providing packages with the lowest call rates. Furthermore it has also introduced
features, which were not present earlier. These include change of happy hours, changing SMS packages
and internet packages on the discretion of its customers.
30
31
2.3.2 Innovation
The mobile industry of Pakistan is considered by many as the most innovative industry of Pakistan.
Innovation means introducing new things or methods, and the mobile industry has kept this promise by
introducing new and innovative services for years.
In recent years, most of the innovative services have been introduced by Telenor; these services being
innovative took the Pakistani market by storm and have become part of our daily lives. Examples of these
services include Easyload and Smartshare. Although Telenor is seen as the most innovative company right
now, we cannot diminish the contributions of other competitors to the Pakistani mobile industry. Some of
the innovative services introduced by the different service providers are as follows:
These and many more services have helped make the mobile industry what it is today. With innovations,
being the hallmark of the mobile industry of Pakistan, future prospects are bright. Also with swap of
mobile operators becoming very easy using Mobile Number Portability (MNP), and competition based on
tariffs, innovation becomes a must to create a competitive advantage. Furthermore, introduction of 3G
services in the years to come would also increase the innovative service provided by the mobile operators.
Future innovation would take advantage of the current network capabilities and additional benefits of 3G
networks, including the high speed data transfer services.
32
STRENGTHS
Following are the vital strengths of Ufone:
The customers of Ufone are very much satisfied therefore, therefore it is the biggest strength
The company has hired well qualified and able employees in all its departments. The services of Ufone
are wide spread such that you can see many small outlets in every market area.
WEAKNESSES
Following weaknesses are identified in Ufone:
Sometimes the network is busy and over loaded which results in poor connectivity.
33
OPPORTUNITIES
Ufone has the following opportunities:
Ufone can expand its target markets and enter new market segments.
Ufone has the opportunity to add further products to its existing product line.
2.3% of the population of Pakistan is mobile users. Ufone has the opportunity to expand its
services to a larger number of people.
THREATS
The threat that Ufone may faces is the strength of existing competitors. Although
Ufone
has competitors in the market but as Ufone is a market leader so it has no fear from competition but still
there are some factors which can affect the sales of Ufone.
Ufone has three major competitors, Mobilink, Telenor and Warid. Under certain circumstances
these companies may act as a major threat for the organization.
Rising sales of substitute products like Mobilink may also act as a threat.
34
CHAPTER NO. 3
TASKS PERFORMED AT
WORK
35
Internship Detail
I have completed my internship in Ufone franchise, Islamabad. Franchises are the part of the sales
department of Ufone. Following part is showing my detail regarding my internship.
To plan for the future of oneself and learn how to adjust in an organization.
36
To get exposure to do a work in an organization and also know about organizational behavior,
ethic rules and regulations.
Daily Activities
Accounts, these includes the number of accounts, with which Ufone has overdraft facilities.
Fixed Deposit Accounts, theses are the accounts with which Ufone has some fixed deposits, if
any. Short Term Loan Accounts, theses are the accounts used when Ufone wants any short term
loans. Foreign Currency Accounts, there is only one foreign currency account of Ufone, which
is with CitiBank and is used for off shore marketing expenses and international receipts. Sinking
Fund Accounts, maintained by Ufone, contains funds that are set aside to pay the license fee,
paid out to PTA and Utility Accounts, to pay utility bills of Ufone are the other types of accounts.
4. Liabilities: In this section, major liabilities for the month are recorded in the following
categories: taxes, commissions, payroll, and repayment of loans, roaming partners payments,
payments against Form M and Link Direct International (LDI), a subsidiary of Ufone payments.
The liabilities are updated as needed, with amounts; bank used for paying off and date of
payment.
5. Cheque Float: In cheque float, the major liabilities of different vendors are recorded. They are
divided into three different regions, which include Islamabad, Karachi and Lahore. The
intimidation of the cheques released comes from the accounts payable department, while the
clearance coming from daily bank statements. All payments of vendors are made from CitiBank.
6. LC and ICs: This section includes the Import Contract (IC) and Letter of Credit (LC) payments
that have to be paid out for the foreign transactions that take place with Ufone. The intimation
comes from the Trade department of Ufone Treasury.
7. The Main and Forecast summary: The Main Summary includes both the revenues and
liabilities of Ufone on a given day, while and the Forecast Summary is made for the current &
following month.
3.1.1.2 Cash Transfers
The cash transfer take place every day and includes the transfer of collections and payment from and to
different banks. The major collection of funds takes place in Allied Bank Limited, Habib Bank Limited,
Standard Chartered Bank and United Bank Limited. These banks receive the most collection on daily
basis but pay less interest, thus all collections from these banks are transferred to a bank that pays more
interest, currently transferring to Askari Bank, as it pays a better interest rate of 13.65%. . Also transfer of
collection funds from other banks can take place as and when required by Ufone. Furthermore all transfer
of funds for paying off liabilities take place from ACBL to the bank required. These transfers for paying
off liabilities take place as required, and are not usually on daily basis.
3.1.2
Occasional Activities
3.1.2.1 Encashment
Occasionally, international roaming income is received by Ufone from other cellular operators around the
world. However as these receipts are in foreign currencies and are thus needed to be encashed, on an
intimidation from the bank. Furthermore according to the SBP Foreign Exchange Policy, companies can
only keep 35% of the total foreign exchange earned in their foreign currency accounts, the remaining 65%
needs to be converted to PKR.
38
3.1.3
39
3.1.3.2 OD Sheet
Ufone takes on overdraft facilities daily from different banks, which gets off set from the collection,
however sometimes it is not offset and remains outstanding. On the outstanding amount, interest
payments are to be paid and are calculated at the month end and passed on to the accounts payable
department. However the actual payments are made on quarterly basis while accrual is calculated on
monthly basis.
3.1.3.3 Calculation of Cash Flow Statement
Cash Flow Statement consists of three major parts:
1. Capex (Capital Expenditures)
2. Opex (Operating Expenditures)
3. Financial Charges
Revenue information is received from the revenue monitoring department (Finance Operations)
bifurcating the total revenue earned form postpaid and prepaid connections. Average revenue earned is 78 Billion PKR. Furthermore information regarding financial charges is taken from the financing
department of Ufone Treasury.
3.1.3.4 Finance department
My last two weeks were spent in the finance department. PTML closes its annual year in June due to
which July is a busy month in which a lot of year end activities were being conducted, including the visit
by the external auditing team. I worked on the Bank reconciliations in which I had to collect supports of
the non-reconciled bank figures from the years bank statement records. These supports were then used
by the accountants in reconciling their cash flow statements. Most of this work was done on the Sun
Systems software. This software was primarily used by the finance department and kept record of all
financial and accounts related activities of the company conducted across Pakistan.
Along with this I worked in updating their payments vouchers files by abstracting any of missing
documents from the database (again using Sun Systems). Hard copies of these payments voucher, (from
the operations conducted throughout the year) are maintained for the future reference purpose and record
proof keeping. Other than this I made spreadsheets to record the shipments of new SIMs - for the
payments and tax calculations purpose. Some of the other tasks that I had to do were, typing out the bank
letters for special payments and checks etc, and the calculations of the amounts redeemed by the
company, to the employees on their company work visits to other stations.
40
CHAPTER NO. 4
BALANCE SHEET
& INCOME
STATEMENT ANALYSIS
Items
Current Year
(2009)
Horizontal
Analysis
Figures in %
41
Sales
Add / (Less):
Differential
margin /
(development
surcharge)
123,404,537 122,091,652
100
101.08
1.08
750,496
124,155,033
(9,514,600)
112,577,052
100
110.28
10.28
109,107,461
15,047,572
99,168,250
13,408,802
100
100
110.02
112.22
10.02
12.22
916,351
828,140
100
110.65
10.65
703,328
673,241
100
104.47
4.47
790,289
591,354
100
133.64
33.64
17,457,540
15,501,537
100
112.62
12.62
11,797,778
10,692,061
100
110.34
10.34
1,379,080
1,312,983
100
105.03
5.03
Other
operating
expenses
957,194
241,324
100
396.64
296.64
Other
operating
income
1,446,568
1,855,118
100
77.98
-22.02
4,770,056
789,247
5,110,287
860,715
100
100
93.34
91.7
-6.66
-8.3
3,980,809
4,249,572
100
93.68
-6.32
422
485
100
87.01
-12.99
3,981,231
4,250,057
100
93.67
-6.33
Cost of goods
sold
Gross profit
Rental and
service
income
interest on
sales arrears
Amortization
of deferred
credit
Profit from
operations
Operating
expenses:
Distribution
cost
Administrative
expenses
Operating
profit
Finance cost
Profit before
taxation and
share from
associate
Share in profit
of associate before tax
Profit before
taxation
42
Taxation
Profit after
taxation
1,484,541
1,571,714
100
94.45
-5.55
2,496,690
2,678,343
100
93.22
-6.78
Ufone
Balance sheet Horizontal Analysis
For the Year ended June 2009
Items
EQUITY AND
LIABILITIES
Share capital and Reserves
Authorized share capital
ordinary shares of Rupees 10
each
Issued, subscribed and paid
up capital
Revenue reserves
Total equity
2009
2008
Base Year
(2008)
Current Year
(2009)
(Rupees in Thousands)
1,500,000,000
1,500,000,000
5,491,053
5,491,053
100
100
11,647,796
10,798,422
100
107.87
7.87
17,138,849
16,289,475
100
105.21
5.21
62,500
2,717,963
9,068,102
31,386,548
7,562,412
336,667
662,500
3,710,181
7,270,407
23,108,412
6,752,570
331,754
51,134,192
41,835,824
100
100
100
100
100
100
100
9.43
73.26
124.73
135.82
111.99
101.48
122.23
-90.57
-26.74
24.73
35.82
11.99
1.48
22.23
27,416,384
396,323
1,561,895
22,810,592
467,452
2,281,243
100
100
100
120.19
84.78
68.47
20.19
-15.22
-31.53
29,374,602
80,508,794
97,647,643
25,559,287
67,395,111
83,684,586
100
100
100
114.93
119.46
116.69
14.93
19.46
16.69
Non-current liabilities
Long term financing:
Secured
Unsecured
Security deposits
Deferred credit
Deferred taxation
Employee benefits
Total non-current
Liabilities
Current liabilities
Trade and other payables
Interest / markup accrued
Current portion of long term
financing
Total current Liabilities
Total liabilities
TOTAL EQUITY AND
LIABILITIES
ASSETS
43
Non-current assets
Property, plant and
equipment
Intangible assets
Investment in an associate
company
Long term loans
Employee benefits
Long term deposits and
prepayments
Total Non-Current Assets
Current assets
Stores and spare parts
Stock in trade
Trade debts
Loans and advances
Trade deposits and short
term prepayments
Interest accrued
Other receivables
Taxation net
Sales tax recoverable
Short term investments
Cash and bank balances
Total current assets
TOTAL ASSETS
62,165,176
50,036,217
100
124.24
24.24
29,441
4,900
17,713
4,978
100
100
166.21
98.43
66.21
-1.57
224,645
357,140
7,138
222,310
54,756
6,406
100
100
100
101.05
652.24
111.43
1.05
552.24
11.43
62,788,440
50,342,380
100
124.72
24.72
2,287,084
525,370
18,757,385
148,403
95,428
1,089,526
473,404
16,229,067
181,414
33,293
100
100
100
100
100
209.92
110.98
115.58
81.8
286.63
109.92
10.98
15.58
-18.2
186.63
40,988
2,235,441
764,521
1,356,339
511,096
8,137,148
72,756
1,319,206
134,079
263,233
0
13,546,228
100
100
100
100
56.34
169.45
570.2
515.26
34,859,203
97,647,643
33,342,206
83,684,586
100
100
100
60.07
104.55
116.69
-43.66
69.45
470.2
415.26
100
-39.93
4.55
16.69
44
Items
2009
2008
Rupees in Thousands
123,404,537 122,091,652
750,496
-9,514,600
Gas sales
Add / (Less): Differential margin /
(development surcharge)
Net Sales
Cost of goods sold
Gross profit
124,155,033 112,577,052
109,107,461 99,168,250
15,047,572 13,408,802
Vertical
Analysis
Figures in %
100
87.88
12.12
916,351
703,328
790,289
828,140
673,241
591,354
0.74
0.57
0.64
17,457,540
15,501,537
14.06
Operating expenses:
Distribution cost
Administrative expenses
11,797,778
1,379,080
10,692,061
1,312,983
9.5
1.11
957,194
241,324
0.77
1,446,568
1,855,118
1.17
Operating profit
Finance cost
Profit before taxation and share from
associate
Share in profit of associate - before tax
Profit before taxation
Taxation
Profit after taxation
4,770,056
789,247
3,980,809
5,110,287
860,715
4,249,572
3.84
0.64
3.21
422
3,981,231
1,484,541
2,496,690
485
4,250,057
1,571,714
2,678,343
0
3.21
1.2
2.01
45
Ufone
Balance sheet Vertical Analysis
For the Year ended June 2009
Items
EQUITY AND
LIABILITIES
Share capital and Reserves
Authorized share capital
ordinary shares of Rupees
10 each
Issued, subscribed and paid
up capital
Revenue reserves
Total equity
Non-current liabilities
Long term financing:
Secured
Unsecured
Security deposits
Deferred credit
Deferred taxation
Employee benefits
Total non-current
Liabilities
Current liabilities
Trade and other payables
Interest / markup accrued
Current portion of long
term financing
Total current Liabilities
Total liabilities
TOTAL EQUITY AND
LIABILITIES
ASSETS
Non-current assets
Property, plant and
2009
2008
Vertical
Analysis %
(Rupees in Thousands)
1,500,000,000 1,500,000,000
5,491,053
5,491,053
32.04
11,647,796
10,798,422
67.96
17,138,849
16,289,475
100
62,500
2,717,963
9,068,102
31,386,548
7,562,412
336,667
51,134,192
662,500
3,710,181
7,270,407
23,108,412
6,752,570
331,754
41,835,824
0.12
5.32
17.73
61.38
14.79
0.66
100
27,416,384
396,323
1,561,895
22,810,592
467,452
2,281,243
93.33
1.35
5.32
29,374,602
80,508,794
97,647,643
25,559,287
67,395,111
83,684,586
100
62,165,176
50,036,217
99.01
46
equipment
Intangible assets
Investment in an associate
company
Long term loans
Employee benefits
Long term deposits and
prepayments
Total Non-Current Assets
Current assets
Stores and spare parts
Stock in trade
Trade debts
Loans and advances
Trade deposits and short
term prepayments
Interest accrued
Other receivables
Taxation net
Sales tax recoverable
Short term investments
Cash and bank balances
Total current assets
TOTAL ASSETS
29,441
4,900
17,713
4,978
0.05
0.01
224,645
357,140
7,138
222,310
54,756
6,406
0.36
0.57
0.01
62,788,440
50,342,380
100
2,287,084
525,370
18,757,385
148,403
95,428
1,089,526
473,404
16,229,067
181,414
33,293
6.56
1.51
53.81
0.43
0.27
40,988
2,235,441
764,521
1,356,339
511,096
8,137,148
34,859,203
97,647,643
72,756
1,319,206
134,079
263,233
0
13,546,228
33,342,206
83,684,586
0.12
6.41
2.19
3.89
1.47
23.34
100
47
Formula:
Gross Receivables
Annual Net Sales / 365
Calculation:
For year 2009:
18757385+1428181
124155033 / 365
= 59.3429 Days
= 50.4 Days
48
Interpretation:
This ratio tells that our account receivable in one day sale is converted into cash in 59.3429 days
Lower the ratio, better the company position and vice versa
As compared to 2008, we are at weaker position as our ratio increase to 59.3429 days
Calculation:
For year 2008:
Average Gross Receivable (2009) = 20185566 + 17351841
2
= 18768704
Putting the values in Formula
124155033
18768704
= 6.615 Times per year
49
Interpretation:
This ratio tells that our account receivable is converted 6.615 Times in cash in a year
Calculation:
For year 2009:
187687035
124155033 / 365
= 55.177 Days
50
= 132.45 Days
Interpretation:
This ratio tells that our account receivable are converted into cash in 55.177 Days
Lower the ratio, better the company position and vice versa
Calculation:
For year 2009:
34859203
29374602
= 1.186
51
Interpretation:
This ratio tells about our company ability to pay its current liability, in 2009, we have 1.186 rupee
current assets to pay a 1 rupee current liability
Lower the ratio, weaker the company position and vice versa
Calculation:
For year 2009:
= 8,137,148+511,096+18,757,385
29,374,602
= 0.93
25,559,287
= 1.164
Industry Average:
= 1.06
Interpretation:
This ratio tells about our company ability to pay its current liability from its more liquid assets, in
2008, we have 0.93 rupee more liquid assets to pay a 1 rupee current liability
Lower the ratio, weaker the company position and vice versa
Cash Ratio
Purpose of Ratio: Indicates a conservative view of liquidity such as when a company has
pledged its receivables and its inventory, or the analyst suspects severe liquidity problems with
inventory and receivables.
Formula
Cash Equivalents + Marketable Securities
Current Liabilities
Calculation:
For year 2009:
= 8,137,148+511,096
29,374,602
53
= 0.2944
This ratio tells about our company ability to pay its current liability from its most liquid assets, in
2008, we have 0.2944 rupees liquid assets to pay a 1 rupee current liability
Lower the ratio, weaker the company position and vice versa
As compared to 2007, we are at weaker position as our ratio decrease by 0.24
Formula
Total Liabilities___
Total Shareholder equity
Calculation:
For year 2009:
=80508794/17138849)100
=104.69%
= 103.08%
54
Interpretation:
Formula
Total Liabilities
Total Shareholder equity Intangible Assets
Calculation:
For year 2009:
=80508749/(17138849-29441)
= 4.705 100
= 104.705%
Interpretation:
Formula
=
Net sales_______
Average Net fixed assets
Calculation:
For year 2009:
Calculation of Average Fixed Assets2008 = [(62165176-10269886)+(50036217-6513194)]/2
= 47709157
55
Interpretation:
Our fixed assets are converted into sales 2.60 times a year.
Formula
= Net Income before Non Recurring Items + Interest exp (1-tax rate) 100
Average (Long term Liabilities + equity)
Calculation:
For year 2009:
56
= 1.97%
Interpretation:
57
Formula
= Net Income before Non Recurring Items Dividend on .R.P.S
Average total shareholder equity
Calculation:
For year 2009:
Calculation of Average Equity2008:
= (17138849+16289475)/2
= 16714162
= (16289475+15108692)/2
= 15699084
= 12.27%
Interpretation:
58
Formula
Gross Profit
Net Sales
Calculation:
For year 2009:
= (15047572/124155033) 100
= 12.12%
= 10.36%
Interpretation:
= 11.91%
CHAPTER NO. 5
IDENTIFICATION OF MAIN
PROBLUM
60
5.1 FINDINGS
I learnt a lot during the 6 weeks I spent at Ufone, and my learning experience was further
enhanced by another 4 weeks internship that I did at Citi Bank. This way I got a chance to work
in two different types of service industries; the banking sector and the non-banking sector. After
working at both the places I discovered one thing for sure that there is no such thing as a 9 to 5
job. The work timings at Ufone were 9 5:30 but the employees stayed for at long as 10 at night.
Putting in long hours was not an uncommon practice especially the days when everyone was
working hard to complete the final financial accounts and work with the auditing team.
61
I learnt how much it matters to conduct one self professionally and how to maintain similar
professional relationships with ones seniors, colleagues and customers. The last one was of vital
importance especially while I was working at the customer services centre. Since Ufones product
caters to all classes of people, every day we had to deal with a variety of customers. The older
(age wise) customers were the most difficult. Since the technology leap has been a little too big
for them they got agitated easily if their problem was not solved to their satisfaction. Dealing
with such customers required lot of well patience. At times we have also had some difficult
customers who tried to blame any damage that they had done to their SIMs onto us. No matter
how unreasonable or angry the customer sounded we were always required to remain calm,
helpful and amiable. The aim was to win over any customer, no matter how unsatisfied he
seemed by giving him the service better than what he expects from you.
Another important factor was customer confidentiality. We had access to a lot of customer data,
some of it private, and it was up to us to respect that and not try to use it to gain undue
advantage. Customers address and numbers, his/her call details are all confidential information
and should be treated so, and violation cannot be taken lightly.
Although I found most of the staff members very friendly and helpful, but then exceptions are
always there. Not everyone is easy to work with and some can even be rude at times but it was
always important that we never cease to respect them and . Simply stay out of their way!!!
(This is how I dealt with the unpleasant ones).
This internship defiantly provided me with a vision that is going to help me in the long run
especially when I myself enter the work force tomorrow. A job may be maintained by performing
ones responsibilities in the 8 hour day but it takes a lot more to built one self a career. Cause that
requires handwork, teamwork, knowledge and professionalism.
62
CHAPTER NO. 5
CONCLUSION
& REFERANCES
63
Conclusion
The mobile industry has seen phenomenal growth over the year, showing growth rate of more
than 80% in 2007. This growth is not new to the industry, as previous years have shown
substantial growth as well. This growth is a direct result of the increased competition in the
mobile industry, resulting into better services at reduced rate. Furthermore, this has favorably
affected our economy as a whole, generating revenues for the government, through direct and
indirect taxation and creating employment opportunities for the people. The mobile industry of
Pakistan is considered by a majority of prospective employees as the best industry for a job.
Although the mobile industry has seen substantial growth over the years, many observers feel
that the industry may become saturated and will show lower growth rates as a result of increased
taxation and the general economic conditions of Pakistan. Although the concerns may be valid to
some extent, but with PTA, introducing the 3G platform in the coming years and a major part of
our population still without mobile connectivity, especially in distant villages, there is still
optimism that the mobile industry will not become saturated and there is still place for
competition in the industry.
Thus, all in all, Ufone can be described as todays Modern organization - where policies and
procedures are made keeping in mind - equality, quality, competitiveness and professionalism.
Ufones performance in the industry, since the time of its establishment has been exemplary, as it
surpassed all financial and marketing goals, converting mobile phones into an everyday business
and personal communication tool for all. Despite Ufones strategy to provide a high standard of
service rather than increasing subscriber base without capacity, it has achieved a substantial
market share in a market ten years older than itself.
But like any other organization, nothing is perfect. Managers here do face many challenges.
Integrating a group of people on a common ground, who otherwise have nothing common
amongst them, is not an easy task. People come with their own set of principles, views and
beliefs. It is the task of the organizations managers, that via efficient policies they inculcate
amongst their employees the dedication that is required to help the organization achieve its goals.
Thus retaining the right people is at times considered a challenge.
But all in all, Ufone finds itself having full grown potential in spite of the odds in its way. Its
employees feel that they are well equipped in terms of stamina, experience, knowledge and have
just the right attitude to make Ufone the leaders in the mobile service market.
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5.2 Recommendation
Following are my recommendations for Ufone to increase the quality of service.
Learn to listen to your customers first. Really listen to them - ask what you can do to help
them. This is the most important step in preventing problems and the only way you can solve
complaints if they come up.
Look at all complaints about your service as an opportunity to improve. Aim to resolve
any complaint quickly and efficiently.
Establish an environment where great service is recognized and rewarded and poor
service is challenged and rectified.
Have a fun staff meeting where good service elements are discussed and role played.
Ensure that your staff feels they are an important part of your success. Have fun team
building days as well as formal meetings.
Lead by example - show respect for every person at every level in your company.
Give your staff a reason to come to work with a big smile on their face and a great
attitude. Paying them competitive wages so they can live comfortably in the area is a good start.
Create a sort of enthusiasm you want to inspire in your employees. Their enthusiasm will
naturally pass on through their service.
Be sure your employees are aware of your expectations. Clear service guidelines and
knowledge of the company's mission are necessary.
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Hire the right people for the right job. Ensure your interview techniques get the right
answers, not the answers you want to hear. Some people are just really good at interviewing, but
may not be the best people for the job.
To improve the loyalty of employees with the organization it is necessary that proper
incentive must be provided to each level of employees.
Look outside the box and employ people who have a love of service - people with little
experience in your field, but lots of service experience (e.g. retail or hospitality experience) may
be able to learn the intricate details of your business and also provide the kind of service you
need. A service professional with no specific experience might be better than someone who
knows the field, but has no people skills.
Also have your customer service goals in clear view for customers to see.
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5.3 Reference
6.1.1
Web Resources
Wikipedia (wikipedia.com)
Articles used:
o
Ufone
MObilink
Telenor Pakistan
Paktel
Ufone (ufone.com)
Mobilink (mobilinkgsm.com)
Telenor (telenor.com.pk)
Warid (waridtel.com)
Zong (zong.com.pk)
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