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Impact of organizational culture-Telenor-Pakistan (1)

Impact of organizational culture-Telenor-Pakistan (1)

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Published by Sajjad Ali

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Published by: Sajjad Ali on Apr 09, 2011
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By: Muhammad Mohiuddin Baig


Brief Overview Literature Review Research Methodology Findings & Analysis Results & Conclusion






Objective: To analyze the impact of organizational culture on brand performance Using a grounded theory standpoint, a survey for a sample size of 100 has been conducted to gather data on brand perception and performance Three research papers considered Base Paper: The Impact of Organizational Culture on Brand Performance





` The other two articles include: A Step by Step Process to Build Valued Brands by Peter Boatwright and Jonathan Cagan The Impact of Culture on Brand Perceptions: A Six Nation Study by Thomas Foscht and Cesar Maloles .` Base article chosen: ´Interactions between Organizational Cultures and Corporate Brandsµ by Leslie de Chernatony and Susan Cottam.

a set of values and beliefs that shape the way people think and behaveµ Hankinson and Hankinson (1999) ´The pattern of shared values and beliefs that help individuals understand organizational functioning and thus provide them norms for behavior in the organizationµ Deshpande and Webster (1989) .` Definitions of Culture: ´A company·s overall philosophy.

strategically appropriate and adaptive cultures were positively associated with long-term economic performance. Corporate culture was a factor in organizational success.1992) Link between relatively open. 2004) ` ` and . (Kotter and Heskett . externally oriented organizational cultures and better performance (Deshpande Farley.` Develop an understanding of the interaction between organizational cultures and corporate branding which contributes to brand performance. specifically. strong.

Gabbot and Hogg.. 2003) .` Behavior of employees which give the brand substance and influences perceptions (Alloza et al. 1990.. 2001. 2004. 1994) ` Without an appropriate and supportive organizational culture. Bitner et al.. there is little chance of employees living the brand (Schultz. McDonald et al.

1998 ) ` Culture has also been found to influence employee retention rates (Sheridan. it may be the one decisive influence for the survival or fall of the organizationµ (Hofstede.` ´There is little doubt that organizational culture affects performance. in the long run. 1992) .

financially centered performance targets Overly 'tough' organizational culture .Inconsistency between organizational culture and brand values Unsuccessful or poor thought out cultural change intiatives Cultural pitfalls to avoid while seeking brand success Internal value consistency between organizational subcultures Focus on quantified.

Societal values change over time Organizational culture is no longer synchronized with societal values Organizational culture adapts naturally to societal value change Culture stagnates and brand suffers Cultural change efforts initiated within organization Factors impeding and facilitating culture change Culture change unsuccessful or short-lived Culture change successful Organizational culture is synchronized with societal values and brand thrives .

` A company should stay focused on managing talent pool as closely as managing brands The dimension 'Rewards based on merit vs. politics' was listed as the single most important issue that drove a company's success. as well as the biggest opportunity gap ` .


incidents within the data are compared and categories/themes are formed ` ` . emerging patterns are identified and a theoretical framework is developed.` Qualitative research which is inductive From the data. rather than testing hypotheses formed from existing theory Once data is collected.

.` Target Population Current users of Telenor from NBS ` Sample Element Age: 18-25 years ` Sample Size 100 current users of Telenor from NUST Business School ` Rationale Greater speed of data collection due to time constraint. The sample size is assumed to be representative of the greater population and their opinions while rendering a perfect fit with the scope of the project.

` Judgemental sampling was used since a criterion has been defined according to which only current users of Telenor are considered in the study .

` Primary Method: Surveys Self-administered Surveys 8 Questions ` Secondary Data Analysis: Previous work done on this area of research (World Wide Web) .



Organizationa l Structure Values People (and HR practices) Vision Sources of Culture Organizationa l Ethics .

we're here to help. We strive to bring energy to the things we do.MAKE IT EASY ‡ We're practical. Because we never forget we're trying to make customers' lives easier. We're about delivery. ‡ We acknowledge and respect local cultures. . modern and fresh. actions not words. We want to be a part of local communities wherever we operate. We don't complicate things. We are passionate about our business and customers. or if it doesn't. Everything we produce should be easy to understand and use. BE INS IRING BE RES ECTFUL     ¡     ‡ We are creative. KEE R MISES ‡ Everything we set out to do should work. Everything we produce should look good. not over promising. We believe loyalty has to be earned. We do not impose one formula worldwide.

` Organic Structure Open Culture 7 layers in the hierarchy Open communication at all levels ` ` ` .

so they claim to cherish the core cultural norms and values of the Pakistani people.In most of advertisements they project themselves as the care taker of the values of Pakistani people. Do you think Telenor has designed packages and promotional campaigns aligned with the culture? 29% Yes 71% No .

Ser i e Q lit Perf r e t r superi r et rk esi C enience t r ugh the istributi setup Si plicit nd tr st thr ugh prici g structure tr sparency Efficiency thr ugh alignment f structure and strategy .

Survey Response Company Mobilin Ufone Warid Zong Rating 3.41 3.2 4.27 2.3 .

Telenor Pakistan was able to increase its subscriber base by 200% It has created the second largest mobile network and the largest and most advanced data network in the local market ` ` .` Highest ARPU (Average Revenue per Consumer) In the year 2006 to 2007.

Reasons for using Telenor 8% 18% 28% Quality of Service 24% Low Price Valued Added Services Variety of Pac ages 22% Other .

Customer Satisfaction with the quality of service 33% es 67% No .

Rate the customer service of Telenor 12% 34% Poor Average 54% Excellent .

Rate the promotional activities of Telenor 18% 30% Poor Average Excellent 52% .

Will you switch if Telenor was involved in an unethical practice? 48% 52% es No .

Will you switch if Telenor was involved in a controversy? 36% 64% es No .

Will you still prefer Telenor if another telecom company introduces an attractive package/service? 42% 58% es No .

` The Pakistan Society of Human Resource Management·s Preferred Graduate Employer Award for Most Preferred Telecommunications Company 2007 among MBA students SAARC Communication Industry Conference 2007·s Most Innovative Mobile Operator Award and Mobile Operator with the Most Consumer Pull Award Telenor Global Brand Award for the year 2007 ` ` ` .

` All Pakistan Dawn Aurora Advertising Awards in three of five nominated categories in March 2007 The National Forum for Environment & Health·s Annual Environment Excellence Awards 2008 The Helpline Trust·s 2nd Corporate Social Responsibility Award 2008 ` ` .


who has been operating for 13 years ` ` .` Telenor entered the market when it was very competitive Through its culture and HR practices it was able to gain a competitive advantage over the others Telenor has quickly assumed the number two position behind the largest organization Mobilink.

` The market is primarily dominated by the prepaid services The market is characterized by price sensitivity and there is a need to provide coverage to remote and northern areas ` .

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