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BACKGROUND OF CELLULAR INDUSTRY IN PAKISTAN

Today information has become the most vibrant force and factor of production in the new economy. Cellular Mobile segment of the industry is considered an engine of growth for telecom sector in Pakistan. Initially, the telecom industry was monopoly. The world started to see an initiation of reform in this sector from early eighties of previous century. In Pakistan the liberalization of telecom sector started in early 1990s. Pakistan s Cellular Sector has registered tremendous growth during the last 7 years. Various development stages, during which an industry evolves, as in a normal industry business cycle, have either been skipped or bridged quickly for Pakistan telecom industry. This growth, as a whole, is heavily tilted towards mobile, since investments made in the segment are far higher than any other segment of the industry. Basic telephony and value added services have their own specified markets and the industry life cycle is taking a comparatively steady pace. Following is there brief history,

1990-1992
With the deregulation of telecommunications sector in Pakistan in early 90s, Ministry of Communications awarded two licenses to begin cellular operations based on AMPS technology, namely y

PAKTEL, and y INSTAPHONE

INSTAPHONE initiated its services in 1990, while PAKTEL started its operations in 1992. PAKTEL and INSTAPHONE were formed as joint venture between foreign and local partners. Both the companies were using AMPS technology.

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1993-1995
A year later, a third license was awarded to the SAIF GROUP that led to the inception of MOBILINK that started its services in 1994. It was the first company that introduced GSM technology in Pakistan. In 1995, the Cellular Industry suffered a major blow with the closure of operations in Karachi, the largest market, but the closure sanction was lifted after almost two years.

Telecom Re-organization Act of 1996

The real defining moment was the passage of Telecom Re-organization Act of 1996, which established the Pakistan Telecom Authority (PTA) as independent regulator of the sector and set timeframe for ending the PTCL monopoly. This act paved the path for liberalization of the telecom sector in line with the global trends and Pakistan s commitment to the international treaties like WTO.

2001
On January 19th, 2001, PTCL entered the cellular market with its own operator based on GSM technology under the brand name of UFONE.

2004-2005
In April 2004 Pakistan Telecommunication authority (PTA) awarded two new licenses under an open auction process for a fee of $291 million. These were purchased by two companies namely, y y WARID TELECOM, and TELENOR.

TELENOR started its operations on March 15, 2005. AL-WARID started its operations on 23rd May 2005.

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2006-2007
In 2006 this has been revealed in the results of the first Telecom Regulatory Environment (TRE) Survey conducted in five Asian countries including Pakistan by Sri Lanka based independent telecom research organization LIRNEasia, that

PAKISTAN HAS A BETTER REGULATORY ENVIRONMENT FOR MOBILE TELECOMMUNICATION THAN INDIA, INDONESIA, SRI LANKA AND THE PHILIPPINES. `
Report states that:  The TOTAL TELEDENSITY reached 43.44 % in May 2007, which was just 12% in June 2005.  On average approximately 2.3 MILLION SUBSCRIBERS are being added on cellular mobile networks each month in Pakistan, which is an exemplary growth in relation to the population of any country in Asian region.  MOBILE PENETRATION reached 37.6% at the end of April 2007.  TOTAL MOBILE SUBSCRIBERS at the end of May 2007 crossed the 60.8 million.  DURING the first three quarters of 2006-07, telecom sector attracted US$ 1.4 BILLION FDI.

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2007-2008
Cellular mobile operators continued their aggressive marketing and network expansion, competition among operators became more intensive with aggressive entry of CMPak, a China Mobile subsidiary in Pakistan. CMPak with their brand,  ZONG  TELENOR Have added significant subscribers very rapidly. Several cellular operators offered various Value Added Services at lower rates to attract more customers.

 CELLULAR MOBILE TELEDENSITY jumped from 39% in 2006-07 to 54.7% in 2007- 08,

 COLLECTIVE REVENUES of the sector have grew by 35% in the year 2007-08 against a record growth of 48% in the year 2006-07,

 CELLULAR SUBSCRIBERS grew by about 40% in the year 2007-08, as against 82% in 2006 -07 and more than 100% during 2005-06; Total subscribers crossed 88 million at the end of 2007-08.

 Cellular Mobile sector continued to add 2.1 million subscribers per month during the year 2007-08.

 The sector exhibited slow growth than year before; main reason for its slow growth could be the rising inflation which affects the affordability, higher taxes, saturation of the urban markets and low tariffs.

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2008-2009
According to the Annual Report for year 2008-09 issued by Pakistan Telecommunication Authority (PTA), telecom sector continued to grow positively in terms of subscription, revenues and teledensity as follows,

 Telecom sector of Pakistan has shown 20% growth in its revenues by generating Rs.327.8 billion total revenues in fiscal year 2008-09.

 The Government collected Rs.112 billion in the form of taxes from the sector.  TELEDENSITY OF PAKISTAN stood at 62% showing a growth rate of 5.4% hence sustaining positive growth trends in the sector.

 It managed to attract US$ 815 million Foreign Direct Investment (FDI) in 2008-09. However, as most of the operators are foreign-based, the pessimistic outlook of global economy compelled the telecom operators to curtail the infrastructure expansion plans, still total investments in the sector stood at US$ 1.7 billion.

 During the year (i.e.2008-09) the sector contributed a total of Rs. 112 billion to national exchequer in the form of taxes.

 Telecom imports also grew by 20% and reached US$ 1.6 billion.  The mobile penetration reached 58.2%  Total mobile subscribers reached 94.3 million with more than 90% of the country having access to mobile services.

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 The trend in subscription remained tilted towards prepaid prepaid subscription whereas with only 98% 2% subscriptions

subscribers are postpaid.

 Although the financial strength of mobile segment remained invariable still the cellular revenues grew by 16% and stood at Rs. 212 billion at the end of 2008-09.

 The mobile investments dropped by 48% and reached US$ 1.2 billion in the reported year.

CURRENT SITUATION
Currently, there is tough competition in the cellular industry and all the companies are trying hard to attract, retain and motivate their employees by offering them attractive pay packages. With the current global and local political and financial situation, the telecom sector had to face tough challenges in the current year. Due to the reforms in the sector carried out by the Government and effective regulatory interventions of PTA signs of recovery can be seen and it is expected that during the ongoing financial year the telecom sector would perform well and stand up to the expectations of all.

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SUBSCRIBERS GROWTH IN PAKISTAN

As for net additions in the subscriber base, the sector added more than 6 million Subscribers during 2008-09. However, the leading mobile operator, Mobilink faced a Set back and lost almost 3 million subscribers in 2008-09.  During the year 2009, TELENOR added about 2.8 million subscribers as compared to 7.4 million in 2008;  MOBILINK subscribers decrease by 2.9 million during the same period.  WARID telecom succeeded to add other 2.4million subscribers in year2009.  UFONE added only 1.9million subscribers in 2009 as compared to its addition of 4.1 million in previous year1.  CMPAK entered the cellular market with aggressive marketing and infrastructure roll out. Its growth was negative previous year but this year it added 2.2 million subscribers in2009.

Figure 1

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INTRODUCTION
Ufone a company very highly spoken of these days. UFONE (OFFICIAL NAME: PAK TELECOM MOBILE LIMITED (PTML)
A 100% owned subsidiary of PTCL was established to operate cellular GSM 900

services. The company commenced its operations, under the brand name of Ufone, from Islamabad on January 29, 2001. It was first to launch the GPRS services and Multi-media Messaging Service (MMS) and prepaid roaming in Pakistan. This customer focus and best offering has allowed Ufone to build a subscriber base of over 20 million in less than a decade. Ufone has network coverage in 10,000 locations and across all major highways of Pakistan. Ufone currently caters for International Roaming to more than 260 live operators in more than 150 countries. Ufone also offers Pakistan s largest GPRS & BlackBerry Roaming coverage available with more than 150 Live Operators across 105 countries. More recently, Ufone has become a focused and intensive leader in VAS, constantly introducing innovative services, which have been the first of their kind in the Pakistani cellular industry.

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Ufone owes its success to its employees believing that providing employees with job satisfaction motivate them to work hard and provide better results. Proper planning is Ufone s strongest point; all the products that they have launched so far are backed by wise strategies with proper market research and massive advertisement campaigns. Decisions are taken at top level with some participation from the lower levels showing that they do comprehend the worth of Group decision-making. However goal setting is a procedure dedicated to only the top management. As the world of telecommunications advances, Ufone promises its customers to stay ahead, developing and evolving, to go beyond their expectations, because at Ufone,

Its all about U.

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HISTORY OF UFONE
UFONE (OFFICIAL NAME: PAK TELECOM MOBILE LIMITED (PTML) is a 100% 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.

2001-2004
 After it s opening, initially they started their service in major cities like Rawalpindi, Islamabad, Karachi and Lahore and on major highways. Later the service expanded to other major cities like Peshawar, Quetta and different towns.  Ufone invested around $ 65 million to setup its modern technical infrastructure to provide high quality crystal clear voice and fast data transmission.  Ufone targeted the MIDDLE CLASS, by introducing low rates and different packages with Urdu names like JAZBA etc to attracted lower and middle class people.  Ufone has expanded its customer support in a very organized manner with a planned network of dealers, outlets for people convenient. Ufone is committed to care for its customers even after they have acquired a new connection.  Ufone started GPRS through which users can connect themselves to the global village via Internet, also introduced multimedia messaging services and worldwide SMS at flat rates.  Not only SMS but also provides UFONE INFO SERVICE through which user can get latest information about news, sports, religion, horoscope, stock exchange etc even live sports updates.  THE TARIFF PACKAGES had been designed keeping in mind the requirements of every segment of the society may that be a housewife, a taxi driver, a trader or a student.

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PRIVATIZATION OF UFONE
In April 2006, EMIRATES TELECOMMUNICATION CORPORATION, which is commonly known as ETISALAT, has assumed management control of Pakistan Telecommunication Corporation Ltd part of the $2.6bn deal to buy a 26% stake in PTCL. The successful privatization of PTCL, and consequently Ufone, is hailed as ushering in a new era for telecommunications in Pakistan.

2005 -2006
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.

 Ufone placed at 2nd number with

COMPANY REVENUES IN MILLIONS

The total revenue of 16098 million rupees.

 During the year Ufone successfully completed the network expansion of PHASE IV 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.  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 2,579 k in June 2005 to 7,487 k in June 2006.  The company had also been awarded a new License for providing cellular services in Azad Jammu & Kashmir and Northern Areas

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 Ufone catered for International Roaming to more than 200 live operators across 121 countries and introduced International roaming facility for Prepaid subscribers in Saudi Arabia, United Kingdom, United Arab Emirates, Singapore, Portugal, Thailand, Cyprus, Bangladesh, Uzbekistan, Tunisia and Kuwait with lowest rates, featuring no security deposit and activation charges.  GPRS Roaming facility had been made available with more than 90 Live Operators across 66 countries.

 The company had also been awarded a new License for providing cellular services in Azad Jammu & Kashmir and Northern Areas.

 In September 2006, Ufone selected HUAWEI to deploy the nationwide GSM network at a contract value of above USD550 million. Ufone adopted Huawei's new-generation GSM solution, including All-IP core network and BTS, to construct a GSM network covering 1,500 cities and towns of Pakistan.

2007-2008
 Ufone earned 2nd highest revenuers i.e. 27455 million rupees during the year.  Ufone made investment of US $174 million.  During the year Ufone successfully completed the launching of sites under PHASE V in existing as well as new cities and towns by investing more than US$ 525 million.  To further enhance the subscriber base and strategically position the company in the growing telecom market, Ufone has finalized a network expansion for Phase VI contract amounting to about US$ 170 Million.

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2008-2009
As of 2008, Ufone is the second largest telecommunication company in Pakistan. In recent years the company has endured significant improvement in services to almost 4,745 locations throughout the country.  As of 2008, Ufone employs more than 1,730 people.  It manufactures it s the GSM company providing services to all four continents  It has a subscriber base of 20.05 million as of July 2009.Its share in overall subscribers ration is given besides, Out of all the 5 mobile operators, only Ufone registered profit of Rs. 1.7 billion during 2008-09, and the rest of the companies recorded financial burden due to heavy running expenses including power expenses, rupee depreciations and employees salaries etc.Its percentage share in overall revenue is given below,

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Company profile
Type Genre Founded Founder(s) Headquarters Private Subsidiary January 29, 2001 Pakistan Telecommunication Company Ltd Islamabad, Pakistan 13-B, F-7 Markaz 2336 cities of Pakistan, GT Road, Super Highway & Motorway Abdul Aziz, CEO Telecommunication Pre Pay, Post Pay Rs.5.1 billion PKR (first quarter 2006-07).[1] PTCL Pakistan www.ufone.com

Area served Key people Industry Products Revenue Parent Website

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UFONE s BRAND PHILOSOPHY & VALUE

Our philosophy and values are based on:  Solid Commitment to Growth  Security  Reliability For all its customers, employees, stakeholders, suppliers & society as a

UFONE FIRSTS
Ufone takes pride in setting standards through market initiatives and is the first cellular company in Pakistan to:      Offer real value for money packages Introduce 6 months free incoming Offer 32k Power SIM Start GPRS / MMS / WAP Data services Offer Real VPN System for corporate clientele

UFONE s SLOGANS
One of the main reasons of the popularity of the Ufone is to use slogan to attract the customers. The Slogan of Ufone: In Urdu is

Ufone Tum Hi to Ho"

In English

"It s all about U

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VISION STATEMENT
To be the leading telecommunication service provider in Pakistan by offering innovate communication solutions for our customers while exceeding shareholder value & employee expectation. No matter whom you are, where you are, How you want to say it or how you feel, What you want to say, you are our focus . Because at Ufone,

Its all about U.

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MISSION STATEMENT

"Ufone, it's all about U!

We are where you want to be At Ufone we aim to provide you with wider coverage, superior connectivity, clear signals & voice quality. Wherever you are, Ufone keeps you connected."

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OBJECTIVES
Commitment to Total Customer Satisfaction:
Customers are at the heart of our success. They have placed their trust and confidence in us. In return, we strive to anticipate their needs and deliver service, quality and value beyond their expectations.

Passion for Business Excellence:

We strive for excellence in all that we do. We aspire to the highest standards and raise the bar for ourselves every day. This commitment to delivering world-class quality translates into unmatched service and value for our customers and all stakeholders.

Trust & Integrity:

At Ufone, we take pride in practicing the highest ethical standards in an open and honest environment, and by honoring our commitments. We take personal responsibility for our actions, and treat everyone fairly, and with trust and respect.

Respect for People:

Our relationships drive our business. We respect and esteem our employees and all stakeholders. We believe in teamwork, empowerment and honor.

Responsible Corporate Citizen:

As the market leader, we recognize and fulfil our responsibility towards our country and the environment we operate in. We contribute to worthy causes and are dedicated to the development and progress of the society

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MAJOR COMPETITORS OF UFONE

The major competitors of Ufone are domestic companies like

MOBILIINK
PAKISTAN MOBILE COMMUNICATIONS LIMITED, better known as Mobilink GSM, is a telecommunication service provider in Pakistan. It is a subsidiary of ORASCOM TELECOM started its Operations in 1994 and has become the market leader both in term of Market Share and also the largest customer subscriber in Pakistan. To achieve the objective they offer both y y Post pay (INDIGO), and Prepay (JAZZ)

Services to their customer. Jazz is an amazing prepaid service that allows freedom from monthly bill and gives complete control over the customer s cellular expenditure. The user can decide in advance when and how he wants to spend. He can load a scratch card whenever he wants and talking. Mobilink have 13 more products given below.

y y y y y y y

Mobilink Indigo Mobilink Jazz Mobilink PCO Mobilink Black Berry Mobilink Wimax Mobilink TV Mobilink Game

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y y y y y y

On Jazz Cricket Sims PSO Card PIA Reservation Stock Watch Corporate SMS SMS Advertiser Fax Mail

According to PTA statistics, Mobilink has 30.88 million customers by January 2008. Mobilink's Head office is located in Kulsum Plaza, Blue Area, Islamabad

TELENOR
TELENOR (OSE: TEL, NASDAQ: TELN) is the incumbent telecommunications company in Norway, with headquarters located at Fornebu, close to Oslo. Today, Telenor is mostly an international wireless carrier with operations in Scandinavia, Eastern Europe and Asia. In addition, it has extensive broadband and TV distribution operations in four Nordic Countries.

PAKTEL/ CHINA MOBILE/CMPAK

PAKTEL was the first ever company granted license to carry out cellular phone services in Pakistan set up by Cable & Wireless. It carried out AMPS services until 2004, when the company launched GSM services as well. Its main competitor emerged in late 1990s as INSTAPHONE and soon began to dominate the market. 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%. Moreover, PTA (Pakistan Telecommunication Authority) has announced that it may resolve the frequency issue with China Mobile, as it was one of the main reason for pullout by Millicom International Cellular S.A.

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WARID
WARID TELECOM INTERNATIONAL IS AN ABU DHABI based mobile telecommunication firm providing telephony services in Bangladesh, Pakistan and Uganda.

ZONG
Zong is the first International brand of China Mobile being launched in Pakistan. It is meant to empower and liberate the people of Pakistan in every nook and corner of the country

In crux

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Hierarchy of Ufone
In Ufone the hierarchy is very lean, in general the whole setup is centralized, all the matters are to be reported to the main company and all the policies and targets are approved at the higher level. But at the department level the structure is decentralized. Technical Customer operations Finance Administration & Procurement Human Resource Co-ordination (Govt. relations) Marketing

Current CEO (Chief Executive Officer) & President of UFONE is Mr. Abdul Aziz

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MANAGEMENT PROFILES
Mr. Abdul Aziz President & CEO

Mr. Abdul Aziz has rejoined Ufone as President & CEO in December 2007. A fellow Chartered Accountant, he has over fourteen years of experience in the Telecom Industry both local and International including Europe, Asia and Africa.

Mr. Mohammad Zahid Qureshi General Manager Administration

Mr. Mohammad Zahid Qureshi has over 12 year experience in telecom industry. Mr. Qureshi has been associated with Paktel and later Ufone for quite sometimes. He participated actively in successful launch of Ufone services in Lahore & Faisalabad. His core competencies and the areas he holds expertise in include Sales, Services and Administration. He has played an instrumental role in launch of product and system development for Ufone. Mr. Qureshi has done MBA from Punjab University, Lahore.

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PRODUCTS:
The following are the services of Ufone:

PREPAID:
Ufone markets its prepaid services as Prepay . Ufone Prepay is more affordable. Its primary markets intended towards teen agers and students. Following are some of the prepaid packages of Ufone.

PACKAGES:
y y y y y y y Life plus Package Prepay Life Life Value Josh U Circle Life U Circle Life Plus U Rock

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y y y y y y

Public Demand Paanch Ka Pandrah Ghanta Package U Won Teen minutes Package One Number free Package

POST PAID:
Postpaid services are marketed by the name Post pay . These services are mainly targeted towards the business community of the country Ufone Post pay is a brand that keeps up with you, understanding your drive for victory in the business arena and your sense of belonging in your personal life. On the road to success, Ufone Post pay is a brand for those who expect more from life, from themselves and from their phones, so turn your mobile communication into the unique experience you always wanted

PACKAGES:
Ufone Post pay is designed to suit your life style & communication drive. As you always wanted more from your mobile phone service! So now you can enjoy:

     

Special discounts: on a range of talk plans you can choose from Virtual Private Network (VPN): Your own private network within
the Ufone network

GPRS: Internet Access on your GPRS enabled phone & mobile office so
you can be in touch with business while you are out and about

U-mail: To enjoy wireless email products International Roaming: in countless destinations, keeping you
connected worldwide

Exclusive Customer Care: with personal service to help set up your

phone to suit your needs.

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CULTURE OF UFONE
Organizational culture
IT IS SHARED VALUES, PRINCIPLES, TRADITIONS & WAY OF DOING THINGS THAT INFLUENCE THE ORGANIZATIONAL MEMBERS ACT

Organizational Behavior is the study and application of knowledge about how people, individuals, and group act in organization. It does this by taking a system approach. This is, it interprets people-organization relationships in term of the whole person, whole group, whole organization, and whole social system. In our project, from the definition above, organizational behavior encompasses a wide range of topics that are being practiced in ufone Telecom, such as

 Human behavior  Change  Leadership,  Teams etc.

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CHARACTERISTICS OF UFONE CULTURE

The factors that have influenced organizational Culture of Ufone:

Atention To Detail Innovative & Risk Taking

People Orientation

ORGANIZATIONAL CULTURE Stability

Team Orintation

Agressiven ess

outcome orientation

History and Owner ship:

The one-person business, the family business, the small-group entrepreneur will determine influence, power, style, due to its centralized ownership.

Size
As the enterprise grows and expands, tight ownership and control may dwindle and others will start influencing style and culture.

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Technology
High cost, fast changing technologies like in telecommunications might require a more flexible culture than those technologies that are expensive (machinery) where a more formal, well structured culture will be needed

Leadership and Mission

Individuals and their values will impact on the culture o f the Ufone.

FUNCTIONS OF UFONE CULTURE:

 Define the boundary between the other organization and Ufone.  Conveys a sense of identity for its members.

 Facilitates the generation of the commitment to something larger then self-interest.

 Serves as a sense-making and control mechanism for fitting employees in the organization

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Elements of Ufone Culture

The organization s base rests on management s philosophy, values, vision and goals. This in turn drives the organizational culture which is composed of the formal organization, informal organization, and the social environment. The culture of Ufone Telecom determines the type of leadership, communication, and group dynamics within the organization. The workers in Head Office of Ufone perceive this as the quality of work life which directs their degree of motivation & they learn their culture though

STORIES

PARADIGM

SYMBOLS

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Stories:
What people talk about, what is defined as success, Failure.

Routines:
What is normal way of dong things, procedures ad practices?

Rituals:
What does the organization highlight? Long service, quality, performance, and innovation.

Symbols:
Symbols lay office size, size and type of car.

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Environment of Ufone
The External Environment
All outside factors that may affect Ufone make up the external environment .
The external environment of Ufone is divided into two parts:

Directly interactive:
This environment has an immediate and firsthand impact on the Ufone. A new competitor for example ZONG entering the market is an example.

Indirectly interactive:
This environment has a secondary and more distant effect upon the organization. New legislation taking effect may have a great impact. For example, political instability in Pakistan

DIRECTLY INTERACTIVE FORCES

Directly interactive forces on Ufone include owners, customers, competitors, employees. Management has a responsibility to each of these groups. Here are some examples:

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Owners
Expect managers to watch over their interests and provide a return on investments.

Customers
Demand satisfaction with the products and services they purchase and use. Ufone provides customer care through Customer Care Center located in all key cities, across the country. Ufone s customer care representatives are more helpful. They will not only resolve Consumers issues but also guide them into customizing Ufone, according to their needs.

Competitors
Present challenges as they vie for customers in a marketplace with similar products or services -e mobilink

Employees
Provide both the people to do the jobs and the representation of work force concerns to management.

INDIRECTLY INTERACTIVE FORCES ON UFONE

The second type of external environment of Ufone is the indirectly interactive forces. These forces include      Sociocultural, Political And Legal, Technological, Economic, And Global Influences.

Sociocultural Dimension
Is especially important because it determines the goods, services of Ufone that they convey to the society. The sociocultural force includes the demographics and values of a particular customer base in ufone. 33

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y

Demographics
Are basically measures of the various characteristics of the people and social groups who make up a society of Pakistan .Age, gender, and income are examples of commonly used demographic characteristics considered by ufone.

Values
Refer to certain beliefs that people have about different forms of behavior or products. Changes in how a society values an item or a behavior can greatly affect on business of ufone.

Political and legal Dimensions

of the external environment of ufone include regulatory parameters within which an organization must operate. Political parties create or influence laws, and business owners must abide by these laws.  Tax policies,  trade regulations, and  minimum wage legislation PTA Pakistan Telecom Authority is the regulatory authority in Pakistan concerning the network operators as well as telecommunication practices. Ufone is also abiding the rules that are being made by PTA. The relationship with PTA is also being maintained as PTA is Govt. regulation.

Technological Dimension
of the external environment impacts the scientific processes used in changing inputs (resources, labor, money) to outputs (goods and services). The success of many ufone depends on how well they identify and respond to external technological changes.

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Economic Dimension
Reflects worldwide financial conditions. Certain economic conditions of special concern to ufone include  interest rates,  inflation,  unemployment rates,  gross national product, and  The value of the U.S. dollar against other currencies

Global Dimension
Of the environment of ufone refers to factors in other countries that affect U.S. organizations. Although the basic management functions of ufone is

    

planning, organizing, staffing, leading, and controlling

ufone s overall success as a global business depends, in part, upon their ability to succeed in different economic, social and political environments and to manage and to mitigate these risks.

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Brands of Ufone
While keeping its tradition of being the trend setter in the industry, Ufone changed the image of mobile phones from a luxury only affordable by the elite, to a necessity affordable by the common man. Since its inception, Ufone has positioned its brand for masses. 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, Ufone 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. Ufone 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.

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CORPORATE LEVEL STRATEGY

As their corporate level strategy, they have entered as a subsidiary of PTCL organization. On the basis of findings, it appears that for the past few years. Ufone had a focus on INTERNAL GROWTH. All this is evident from the fact that since the deregulation of the mobile service industry of Pakistan, has undertaken various efforts to ensure that it changes its stance from concentrating on its existing market to growing its market presence. The main reason for this change is mainly to keep up with the competition and to retain and increase its market share. With the threat of new entrants into the industry after the deregulation, UFONE strategy took a new turn. To keep abreast with the company ufone took the following steps during the last 2 years:

 Expanded its international roaming Service scope  Bilateral roaming agreements signed with 100 countries around the world to have true roaming service operational in 151 operators of the world.  Promotional Campaigns  Ufone BUNDLE OFFERS: These bundles include a handset, a Ufone connection and airtime worth  Ufone packages deliver nationwide cellular freedom at local Call rates  Exclusive deals to 6 northern area destination including Chitral, Gilgat, Hunza, Kaghan, Skardu and Swat. 37

As their

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BUSINESS LEVEL STRATEGY

It has focused on Differentiation strategy ever since it started. Ufone has always made successful attempts to distinguish their products or services from other in the industry. They make their product unique through.

       

Advertising Highly creative people in the marketing dept Billboards, TV commercials, bringing in famous personalities from media to endorse their packages Distinctive Product Features Value added services Online billing GPRS enabled

International roaming:

Bilateral roaming agreements signed with 100 countries around the world to have true roaming service operational in 151 operators of the world.

 Exceptional Service
There are certain areas of Pakistan where PTCL connections are not available; the PTCL cables have not reached yet, but Ufone has its service in those areas.  Providing services in 413 cities

 Best customer service in the cellular market:

Biggest Call Center in Pakistan, which is there to assist the customers 24 hours.

 New Technology

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Low Cost Strategy

Ufone does follow a low cost strategy. Ufone is a giant in Pakistani mobile industry Tel. it has been focusing its products on the upper strata of the society. That is why its rates are less than its competitors, mobilink , Warid, Telenor, etc Boston consulting group is used to help corporation with analyzing their business units or products lines.

BCG Matrix
This help the company allocate resources and used as an analytical tool to analyze the market in brand marketing, product management, strategic management & portfolio analysis. This bcg matrix is with respect to the competition that exist for ufone in telecom industry. This includes the following mobile operators:

Mobilink Telenor Zong Warid

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Functional Level Strategy

MARKET SEGMENTATION:
Cellular service market is a diverse set of people. Ufone as well as other cellular service companies segment their market on four bases: - economy, age, gender & occupation. I. ECONOMY: Upper class, Middle class, socio-economic class, lower class II. AGE: Teenagers, youngsters, middle age, aged people III. GENDER: Male & Female IV. OCCUPATION: corporate class, Business class, working class etc

TARGET MARKETS
Cellular phones are the technology of new era, the

21st century. These cellular

phones are the main focus of our youngsters. All the cellular companies are targeting The Youth one way or other. Ufone is no longer a follower in this race. Its main focus is THE YOUTH of Pakistan which is its Target Market.

TARGET MARKETING STRATEGY

Ufone has always been targeting Youth Market by using young brand endorsers or ambassadors. It always brings such packages and offers that precisely meet the needs of our young people. No doubt it has also launched packages, brands and offers for working people, business class, ladies and aged ones. Ufone seeks to target masses in the long run.

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POSITIONING
Positioning is the process of creating an image of company s brand in the mind of market. Companies position themselves emotionally, functionally or on the basis of brand quality. Ufone is still a market challenger in comparison to market leader MOBILINK. It is still to reach to the top most position of cellular companies. So Ufone positions itself on the basis of its services.

UFONE S POSITIONING STRATEGY:

Ufone changed the image of mobile phones from a luxury only affordable by the elite, to a necessity affordable by the common man. Since its inception, Ufone has positioned its brand for MASSES on the basis of services it is providing and its lowest call rates. It makes them believe that it satisfies the needs of everyone (viz all classes, age & genders). It tells them that Ufone is there when anybody needs it. The brand name UFONE itself is a positioning statement.

DIFFERENTIATION
In these days of intense competition marketers find it hard to differentiate their services from those of competitors. Now customer care about only price. An unsatisfied customer will immediately go for brand switching. Thus leaving a customer unsatisfied and not meeting his/her demands is out of question for marketers.

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DIFFERENTIATION STRATEGY:
Ufone has always strategized in satisfying the demands of its customers. In doing so it has been successful in differentiating itself in terms of: Price  Quality service  Technology

CUSTOMER RELATIONSHIP
With 28 million mobile users in Pakistan, Ufone is having a subscriber base of around 7 million. Ufone is showing a remarkable growth rate. It is maintaining a healthy customer relationship through its customer service centers and call centers . Its department of Customer Operations is specially designed for maintaining Customer Relationships.

CUSTOMER RELATIONSHIP STRATEGY:

Ufone strategize to build and maintain strong customer relationships in order to build long-term customer loyalty and to capture customer lifetime value. In this context Ufone has been training its internees and permanent employees in the fine art of interacting with customers. It is also strategizing to offer gifts & rewards for its long-term customers in its Post pay to match the wonderful customer relationship strategy of INDIGO.

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TOTAL MARKET ORIENTATION

Total Market Orientation is about understanding and meeting customer s expressed and latent needs.

STRATEGY:
Ufone has always considered the ever growing needs of low call rates and quality service. It has provided its customers their needed packages and has introduced such brands & packages that meet customer s latent needs as well. For example 5 ka 15 is result of a latent need of women of our society. They plan to make a short call but it becomes a long one unintentionally due to gossips and chit chats

COMPETITORS
There is a hard core competition among the cellular service providers in Pakistan. Ufone is a market challenger in its competitive position, where MOBILINK is the market leader. Warid, Telenor and newly introduced ZONG are also strong contenders in market challenger category. Ufone has the following four direct competitors:y Mobilink y Telenor y Warid

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Ufone also considers the following as its competitors:y ZONG (former PAKTEL) y PTCL WIRELESS y Wateen y World Call

COMPETITIVE STRATEGY:
Ufone s competitive strategies are Customer intimacy and Differentiation. Ufone aims at fore passing Mobilink in its competitive race

Forces In The Industry Analysis

In telecom industry five competitive forces dictate the rule of competition

Threat of New Entry

As government of Pakistan is showing liberalism in case of telecommunication sector and opened its policies to award new licensees to new mobile service providers so threat of new entry is high. As set-up cost is in billions of dollars so in this case threat of new entry is low, but there are companies who are working to achieve licenses and approaching PTA to know terms and conditions for this. As for this business companies need a well established distributions and franchises network so threat of new entrant is high in this case

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Bargaining Power of Buyers

Power of buyer is high in telecommunication sector. There are six market players and players are offering different packages at different prices and a situation of price war is running. Buyers have a power to buy any package which is suited to them. Cost of switching from one company package to other company package is low. Hence, power of buyers is high.

Bargaining Power of Suppliers

The power of suppliers is low in case of telecommunication sector. But the fact is that numbers of suppliers are few in the market but they are competing in the market to make agreements with mobile service providers.

Threat of Substitute Products

Government also gave so many land lines and wireless local loop licenses to different companies like PTCL wireless local loop, GO CDMA etc. these services in future will be like mobile phone services like they are planning to offer services a lot but currently they are offering SMS and CLI services to their customers.

Competitive Rivalry
Currently there are six market players but in future they will be eight and nine or even more. Thruway satellite service is offering subscribers freedom of mobility and uninterrupted service. Thruway s satellite technology supplements of existing mobile service providers, overcoming the challenges of large geographical areas and insurmountable terrain

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Forces In The Industry Analysis

THREAT OF NEW ENTRANTS

PRODUCT SUBSITUTE

BARGAININ G POWER OF BUYER

COMPETITVE RIVALARY

BARGANING POWER OF SUPPLIER

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MARKETING MIX STRATEGY 1 - PRODUCT/SERVICES

Ufone is a service providing company. Service is any intangible product that consists of activities, benefits or satisfactions offered for sale.

STRATEGY:
Ufone makes strategies to provide a better cellular telephonic service which excels its competitors at all levels. When Ufone launches a new package in a market, it actually makes it a complete package of core benefit, design, features, brand name, quality, and after sale service.

2 - PRICE
Cellular service providers are facing intense price competition in contemporary market. Customers perceive pricing as the heart of brand selection. Price has always been the core differentiation of Ufone. Ufone is the one who is offering least call rates off-network.

STRATEGY:
Ufone strategize to capture the existing pricing needs of its customers and use it well on occasional or timely basis. For example Ufone offered very good call rates on international calls in Eid days. It offered hourly call rates

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in Ramadan when people were least likely to avail the offer that much that it might prove unprofitable for Ufone. It was a fantastic strategy to beautify the brand image in term of pricing in customer s minds as well as remain profitable in doing so. Ufone follows market penetration pricing strategy and dynamic pricing strategy to meet the customer needs and ever changing price competition.

3 PLACE
Place plays a very important part in the distribution and promotion of services. Competitors of Ufone are seeking to penetrate into places where others haven t reached. Cellular service providers are drastically widening their network & coverage in every area of Pakistan. Mobilink has this edge in place excellence because it is the pioneer in cellular telephonic field.

STRATEGY:
Ufone strategize to widen its coverage to all places in Pakistan in order to meet the requirements of its increasing customer base. Now Ufone is heading from cities to remote northern areas in expanding its network. Ufone has intensive promotion in cities, but it is also considering improving its promotion in rural areas as well.

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4 - PROMOTION
Ufone believes in Integrated Marketing Communication which is a carefully blended mix of promotion tools. Ufone employ different marketing activities and channels to communicate and deliver value to customer. These activities are coordinated to provide maximum communication output. These communication channels includes:y Advertising, y Sales Promotion y Public Relations y Direct Marketing & Personal Selling. Ufone strategize to carry out promotion in order to increase its market share.

STRATEGY:
y Advertising (discussed later) y Sales Promotion (discussed later) y Public Relations: Ufone is less conscious of developing its general public relations. But recently it has launched its Hajj Guide service on Ufone. It avoids getting in news stories and controversies but sometimes it proves inevitable.

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y Direct Marketing: Ufone employ on-road umbrella franchises where the directly market and sell their connections and Sims. y Personal Selling : Ufone administer personal selling facility to sell their Post Pay connections targeting well to do people and businessmen

COMPETITIVE ADVANTAGE OF U-FONE:

It s an advantage over competitors gained by offering consumers greater value than competitor s offer. Ufone strategizes to gain more and more competitive advantages. It also uses these competitive advantages well enough for its promotion. Currently Ufone is enjoying the following competitive advantages:-

y Lowest overall call rates y Value added Services (VAS) y Call block service y Corporate color

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CHALLENGES TO UFONE:
Ufone face many challenges with the ever growing needs of telecommunication. It must remain profitable with the decreasing economical situation of Pakistan. It must grow as well in these dark times if it has to remain IN the market. Ufone face very strong competition from its competitors. It must offer lowest rates with better quality service. New features and services should be introduced to make its customers loyal, happy and satisfied.

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FUTURE PLANS OF U-FONE:

 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 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.

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SWOT ANALYSIS OF UFONE

What is a SWOT Analysis?
A SWOT (STRENGTHS, WEAKNESSES, OPPORTUNITIES, AND THREATS) IS A TOOL USED TO PROVIDE A GENERAL OR DETAILED SNAPSHOT OF A COMPANY'S HEALTH.
SWOT analysis is a tool for auditing an organization and its environment. It is the first stage of planning and helps marketers to focus on key issues. SWOT stands for

S W O T

STRENGTHS

WEAKNESSES

OPPORTUNITIES

THREATS

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By identifying the organization's strengths, weaknesses, opportunities and threats, managers can formulate strategies in such a way so that the strengths and opportunities can be utilized and internal weaknesses and environmental threats can be minimized. To fulfill its mission, Ufone should capitalize on its key strengths, overcome or alleviate its major weaknesses, avoid significant threats, and take advantage of the most promising opportunities.

Why use a SWOT Analysis?

In any business, it is imperative that the business be its own worst critic. A SWOT analysis forces an objective analysis of a company's position and the marketplace.

INTERNAL ENVIROMENT STRENTHS WEAKNESSES

EXTERNAL ANALYSIS OPPORTUNITIES THREATS SWOT ANALYSIS

Simultaneously, an effective SWOT analysis will help determine in which areas a company is succeeding, allowing it to allocate resources in such a way as to maintain any dominant positions it may have. The SWOT analysis of Ufone s conducted as under: -

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STRENGTHS
Second Large Market Share
Although Ufone s market share has dropped due to current economic and political circumstances it but is still very much competitive at 20 percent. Ufone is enjoying the second largest cellular network in Pakistan

Worldwide Cheap call Experience

As explained above even with Ufone s recent decline they still have the market share and the experience to bounce back. They have been a nationwide company for nearly ten years now and have established themselves as the national leader for most of them. Fewer rates than competitors

Representing PTCL name

As it is the subsidiary of PTCL

Coverage on GT Road 60%

Now covering Pakistan business highway up to 73%

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Variety of Value Added Service

Provide varieties of value added services as compared to other cellular networks. Ufone is offering more and better Value Added Services (VAS) than its competitor s i.e.

y Mobile Office y Mobile Internet y Mms y Ufone s Walkie Talkie

Others
 Ufone has great management within the organization (internally & externally)  Established customer base including lower middle class  Company present in all four provinces  Highly motivated and trained work force  Ufone has the most promising and attractive ATL (Above the Line) activities

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WEAKNESSES

Behind on Excessive Demand:

This is Ufone's biggest weakness is not attempting to meet the demands. No proper planning to cater the excessive demand

Poor Organizational Structure:

Centralized structure failed to provide proper guidance over instruction and policies

Stagnant Profitability:
As compared to financial assets, Ufone is not close to expected profitability

Overly Dependent on PTCL:

As Ufone is a subsidiary of PTCL, it is dependent on PTCL which was formerly under government management; Ufone still has a shadow of a government organization

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Others
 Ufone has less professionalism within the organizational members  Ufone still has room for the betterment of its network coverage in comparison to The Market Giant MOBILINK  Ufone has pathetic billing system for postpaid connections. This faulty system creates a negative vibe among its customers  Less coverage in remote areas  Not targeting the rural areas at the moment  No proper planning to cater the excessive demand

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OPPORTUNITIES
Can target Corporate:
It is obvious that GM was behind its competition with regards to the research and development of hybrid vehicles. However hybrid technology is still very much new giving GM the opportunity to once again become the automotive industry's leader in innovation and technology.

Continuing to Expand Globally:

Ufone have the ability to expand globally. But due to current economic condition all its operation are on halt

Publicity and Marketing:

With the right marketing strategy they can acquire much more.

Develop New Value Added Service:

This is an opportunity that will never be satisfied, meaning that Ufone should always be attempting to keep improvising new valued added services, and as we know, what is in today will be out tomorrow.

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Others
 Company has faster market growth.  They can start their services in other cities of Pakistan  As they are the subsidiary of Pakistan telecommunication limited, they can acquire as much fund needed to improve their technology  They can also target corporate sector  New Technology  Ufone s biggest opportunity lying ahead in near future is the phase of conversion of their GSM technology into 3G (satellite based) technology  Ufone has the opportunity of growing its customer base due to increasing trend of using mobile phones  Ufone has the opportunity to win the customers of its competitors by providing them superior services on lower price  Ufone has the opportunity that it is pioneer in southern Punjab where it can promote itself and become market leader on the basis of this very fact

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THREATS
The threat that ufone may faces are the strengths of its current competitor. Although ufone has competitor in the market but ufone is the market leader so it has no fear from competition but still there are some factors which affect the sales of ufone:

 Ufone has three major competitor i.e.  MOBILINK

 TELENOR

 WARID  Under certain circumstances these companies may act as a major threat for the organization.  Change in Government policies act as a threat.  Rising sales of substitute as MOBILINK also act as a threat

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DECISION MAKING STYLES OF UFONE

In the modern era of communication every cellular company is trying to survive and to lead the market by adopting different effective decision making approaches. Due to high competition and rapidly changing environment all most all the cellular companies in Pakistan prefer analytical decision making style. In ufone both ANALYTICAL and CONCEPTUAL styles of decision making are adopted. Ufone has taken the lead by ensuring they are the first to launch the most innovative pricing offers, products & packeges.so. While taking any decision ufone management consider all the available alternatives and then select the best one.

Causes of Adopting Analytical and Conceptual Decision Making Styles

Following are the causes to adopt analytical and conceptual decision making styles:

 Tense Work Environment  Huge Investments  Dense Hierarchy  Departmental Isolations  Randomly Changing Policies

 Aggressive Marketing Campaigns

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Decision making matrix of ufone

HIGH

Tolerance for ambiguity

analytic

conceptual

directive

behavioral

LOW

Way of thinking
RATIONAL INTUITIVE

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Work Specialization
U fone is one of the leading cellular companies of Pakistan and have million of loyal customers. It is working in Pakistan. During the year Ufone successfully completed the network expansion of phase IV in existing as well as new cities and towns which amounted to more than US $ 170 million. As a result asset base of company has increased from Rs. 20 billion to Rs. 27 billion. During the year Ufone adopted the policy of simplified tariffs with no hidden charges , which resulted in positive impacts on the usage trends of subscriber base , which has increased from 2,579 k to 7, 487 k in June 2006 . Ufone currently caters for international roaming to more than 195 operators across 119 countries and introduced international roaming facility for prepaid subscribers in following countries , with lowest rates featuring no security deposit and activation charges.

y y y y y y

Saudi Arabia United Kingdom United Arab Emirates Singapore Portugal Kuwait

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 Northern Areas. Operating performance, Ufone operational performance has been very encouraging.

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Departments in Ufone
The organizational Structure at Ufone is Lean or Horizontal structure. One of the organizational functions of Ufone in relation to its hierarchy is, the company is having Decentralized structure. The flow of communication becomes easy and simple in such structure. It is divided into different departments and every department has its head and all are interconnected. The concept of Departmentalization is effectively in practice at Ufone. There are different departments which are working within their functional units to contribute towards the success of organization and to achieve the over all goal of the Organization.

UFONE HAS 8 DEPARTMENTS THAT ARE WORKING

EFFICIENTLY AND ALL ARE INTERACTING WITH EACH OTHER TO MAKE IT A MUCH BETTER COMPANY BY SATISFYING ITS CUSTOMERS DEMAND.

The structure of Ufone comprises of Board of directors who are being reported by CEO, Chief Executive Officer.CEO is a great supervision to the 8 Major operations of the company. These operations are divided into departments that are

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Finance Department
Mr.MohammadNadeemKhan Chief Financial Officer

There are further 4 sub-heads in Finance Department

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FUNCTIONS OF FINANCE DEPARTEMENT

CNC
The department is responsible for Credit exposure for Ufone postpaid connection. The department maintains the record of all postpaid subscribers in order to ensure the subscribers validity.

Budgeting and Planning

The department is working over the budgets, the planning of budget and its reports to the authorities. This head provides the annual budget to be spent. The function of this head is also to forecast any opportunities or threats towards the organization. The reporting of the budget is being done on the monthly basis to the head of financial officer to keep the record of the budgets. Relationship with banks are also being maintained in order to get help in the need time.

Accounts
The accounting head is responsible for the book keeping of the records. The internal audits are done to ensure the stream lined working of the processes as well as external audit by the Accountancy firms.

Revenue Assurance
There are Revenue Assurance policies & procedures being made by the personnel. This assurance head also Liaise with other departments, obtain, analyze and reconcile reports to ensure prevention of revenue leakage. The sub-head also ensure error free billing operations, deployment of key revenue assurance applications/solutions, fraud management.

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Marketing Department
Mr. Akbar Khan General Marketing Officer

The department has further 3 subheads working in specialized manner according to the skills and abilities of the employees.

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FUNCTIONS OF MARKETING DEPARTEMENT

Brands
There are basically two products of the Ufone which serves as the brands of the company. This sub-head is responsible for the execution of the Brand Activities. Ufone is performing the promotional activities in Brands sub-head, including advertising over Electronic media and print media. The promotional strategies are made by the sub-head to get the implementation.

Marketing Strategy and Analysis

The sub-head is working in order to formularize the marketing strategy according to the market requirement and consumer preferences. The analysis about the market trend is done and the strategies are made in relevance. Moreover, competitors are biggest source of reacting towards the marketing activities. Ufone is having a proactive marketing concept in context of competition.

VAS Value Added Services

VAS sub-head is responsible for proficient functioning of Conveniences provided to the customers, these VAS are

y y y y y

Virtual Private Network Call Management Missed Call Notification Phonebook Saver Host of Infotainment and Entertainment services.

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INFORMATION TECHNOLOGY DEPARTEMENT

Mr. Faisal Khaliq Chief Information Officer

CIO (cief information officer)

BILLING

IT DEVELOPMENT

While being a part of information technology and telecommunications, Ufone is having a major department of Information technology. IT department is working with the division of further 2 sub-heads.

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FUNCTIONS OF INFORMATION TECHNOLOGY DEPARTEMENT

Billing
The billing department is responsible for aggregating CDRs and preparation of the postpaid billing for customer from system.

IT Development
Any kind of IT development required by the company in billing or CRM (Customer Relationship Management) module is done by IT development team.

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CUSTOMER SERVICE OPERATION DEPATEMENT

Mr. Ahmad Kamal Chief Officer Customer Services Operations

VP COPs (Vice president of customer operations)

CUSTOMER

GOVT. RELATIONS

CALL CENTER

BUSSINESS CENTER

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FUNCTIONS OF CUSTOMER SERVICE OPERATION DEPATEMENT

Customer Care:
Ufone provides customer care through Customer Care Center located in all key cities, across the country. Ufone customer care representatives are more helpful. They will not only resolve Consumers issues but also guide them into customizing Ufone, according to their needs. Customers care is offered to through

1. Call Centre:
Call centre representatives are providing services, 24 hours a day. The customers can contact the Ufone Call Center to get answers to all their queries. Some of them include:

 Bill enquiry (credit limit, expiry date etc.)  Reporting of lost phone  Number blocking in case of lost or stolen SIMs  Post Pay Reward Redemption  Call forwarding  Conference call

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MANAGEMENT  Connection status (active / inactive Tariff)  Products information  Ufone Sales & Service Center information  Nearest dealer information  Ufone coverage areas  Emergency number information  International roaming information  Value added services information  Missed call alerts

2. Business Centre
The business centre of Ufone are offering various services to their customers, they are basically company owned centre, the business centre offers the SIM issuance and other customer related issues, retention of customers and handling requests for Mobile number portability.

Govt. Relations
PTA Pakistan Telecom Authority is the regulatory authority in Pakistan concerning the network operators as well as telecommunication practices. Ufone is also abiding the rules that are being made by PTA. The relationship with PTA is also being maintained as PTA is Govt. regulation.

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Engineering Department

Mr. Jafar Khalid Chief Engineering Officer

CTO (chief technical officer)

BSS (Bussiness support system)

NSS (Networking switching sub system)

IN (Intelligence network)

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FUNCTIONS OF Engineering Department

The engineering department is Backbone of the company.

BSS Business Support System:

The subhead is responsible for Radio Planning and network optimization.

NSS Network Switching Subsystem:

The Network Switching Subsystem, at Ufone refers to as the GSM core network, usually refers to the circuit-switched core network, which is being used by Ufone GSM services such as voice calls, SMS, and Circuit Switched Data calls. There is also an overlay architecture on the GSM core network to provide packet-switched data services and is known as the GPRS core network. This allows mobile phones to have access to services such as WAP, MMS, and Internet access. All mobile phones manufactured today have both circuit and packet based services, so Ufone as a network Operator that is having a GPRS network in addition to the standard GSM core network.

IN Intelligence Network
The Intelligent network s main purpose is to take care of charging of prepaid customers and has the balance updates of each of the customer.

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Sales Department
Mr.Younas Iqbal Sheikh Chief Officer (Sales & Distribution)

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Functions of Sales Department

Corporate Sales
The division of the sales department is handling the sales for executives or corporate clients. These clients are having postpaid products with billing system.

Franchises & Retail Outlets

This division is handling franchises and retail outlets with a network of more than 365 franchises and 25 company-owned customer service centers along with a distribution network of 150,000 outlets nationwide.

Sales operations
Sales operations at the company have been set up to provide the customers, quality services all under one roof so consumers can walk in to any Ufone Sales & Service Center for services like

 Connection closure  Handset & other mobile accessories  PIN / PUK code number inquiry  GPRS  IR activation

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CHAIN OF COMMAND:
The chain of command, sometimes called the scalar chain, is the formal line of authority, communication, and responsibility within an organization. The chain of command is usually depicted on an organizational chart, which identifies the superior and subordinate relationships in the organizational structure. According to classical organization theory the organizational chart allows one to visualize the lines of authority and communication within an organizational structure and ensures clear assignment of duties and responsibilities. By utilizing the chain of command, and its visible authority relationships, the principle of unity of command is maintained. Unity of command means that each subordinate reports to one and only one superior.

CHAIN OF COMMANDIN U-FONE:

Keeping into account the efficiency and effectiveness factors, u-fone has adopted the chain of command as unity of command which means that each employee is responsible to only one manager or only one superior. All the employees and managers are accountable by only one superior due to which assigned tasks are accomplished efficiently and effectively.

Accountable by

One employee

accountable to

only one superior

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FORMALIZATION
The degree to which jobs within the organization are Standardized and the extent to which employee Behavior is guided by rules and regulations

HIGHLY FORMALIZED: Jobs offer little discretion over what is to be done. LOW FORMALIZATION: Means fewer constraints on how employees do their work.

IN U-FONE:
AS U-fone is a mechanistic nature company so, it has adopted HIGH FORMALIZATION technique. It allows its managers to work according to rules and regulations formulated by the top management. Due to rapidly changing and dynamic environment, u-fone has to take significant steps to guide its managers about its current objectives and trends of the market. Organization,s goals are clearly forwarded to employees at all level of organization.

ADVANTAGES OF HIGH FORMALIZATION:

y y y y y Managers are clear about organization,s goals. Organization,s policies are clearly mentioned. Rules and regulations are strictly followed at all levels of management. Proper controlling is easy as well as possible. Clear guidelines are provided to the lower level employees.

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SPAN OF CONTROL
u-fone has got well established management control system Which is working under the supervision of human resource department .The responsibility of this department is to make and review the conduct rules of u fone . Through this department they have been able to keep proper check and balance on their employees. In Ufone the span of control is narrow .it means

1 4 16 64 256
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CENTERALIZATION
The degree to which decision making is centralized At a single point in an organization.
In centralized organizations, top managers make all the decisions and Lower level employees simply carry out those instructions.

DECENTERALIZATION
The degree to which lower level employees Provide input or actually make decisions
The organizations in which decision making is pushed down to the managers, Who are closest to the action, are called Decentralized organizations.

IN U-FONE:
U fone has adopted centralized policy of decision making u fone enables its mangers to make decisions with responsibility which increases loyalty and fosters owner ship. U fone is increasing the decision making discretion of employees up to a certain limit. The significant decision is taken by the top level management while for minor decision participation is from all the level.

MAJOR CAUSES FOR ADOPTING CENTRALIZED POLICY:

y y y y Organization is geographically dispersed. Due to tough completion in cellular market. Top level managers have better knowledge and experience about current trends. As organization adopt mechanistic structure

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Nature of ufone structure

In ufone the nature of organization structure is MECHANISTIC. It means it is

Highly Formalized

Rigid Departmentalization
Clear Chain of Command Narrow span of Control

Centeralized

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RESOURCE ALLOCATION
The manner in which scarce resources are distributed. From a business standpoint, this relates to how management distributes capital among its various operations. From a consumer's viewpoint, resource allocation relates to how goods and services are distributed among consumers. Efficient resource allocation results in a more productive economy. Also called allocation of resources.

RESOURCE ALLOCATION OF U-FONE

There are two major resources of u-fone:

y Finance y Human resource

ALLOCATION OF FINANCE:
U-fone has allocated its finance resources according to following schedules:

2005 -2006
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.

Ufone placed at 2nd number with The total revenue of 16098 million rupees.

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During the year Ufone successfully completed the network expansion of PHASE IV 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. 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 2,579 k in June 2005 to 7,487 k in June 2006. Ufone catered for International Roaming to more than 200 live operators across 121 countries and introduced International roaming facility for Prepaid subscribers in Saudi Arabia, United Kingdom, United Arab Emirates, Singapore, Portugal, Thailand, Cyprus, Bangladesh, Uzbekistan, Tunisia and Kuwait with lowest rates, featuring no security deposit and activation charges.

GPRS Roaming facility had been made available with more than 90 Live Operators across 66 countries.

The company had also been awarded a new License for providing cellular services in Azad Jammu & Kashmir and Northern Areas.

In September 2006, Ufone selected HUAWEI to deploy the nationwide GSM network at a contract value of above USD550 million. Ufone adopted Huawei's new-generation GSM solution, including All-IP core network and BTS, to construct a GSM network covering 1,500 cities and towns of Pakistan.

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2007-2008
y y y Ufone earned 2nd highest revenuers i.e. 27455 million rupees during the year. Ufone made investment of US $174 million. During the year Ufone successfully completed the launching of sites under PHASE V in existing as well as new cities and towns by investing more than US$ 525 million.

To further enhance the subscriber base and strategically position the company in the growing telecom market, Ufone has finalized a network expansion for Phase VI contract amounting to about US$ 170 Million.

2008-2009
As of 2008, Ufone is the second largest telecommunication company in Pakistan. In recent years the company has endured significant improvement in services to almost 4,745 locations throughout the country. y y As of 2008, Ufone employs more than 1,730 people. It manufactures it s the GSM company providing services to all four continents

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ALLOCATION OF HUMAN RESOURCES

U-fone has allocated its human resources into following schedules:

upper level managers

lower level managers

middle managers

UPPER LEVEL MANAGERS:

These managers are responsible to handle the overall decisions and actions of ufone. These managers are responsible to handle all the significant matters of ufone. They formulate all the suitable strategies to accomplish their required targets.

MIDDLE LEVEL MANAGERS:

These managers are responsible to supervise all the activities of lower level managers. These are the usually branch managers who monitor the activities of all managers accountable to them.

LOWER LEVEL MANAGERS:

These managers are responsible to carry out the assigned tasks to them by their superiors. These managers usually include sales managers, marketing managers, and agents etc. they are directly working on the assigned tasks of u-fone. 87

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Forecasting about Ufone

Planning tool which help mangement in its attempt to cope with the Uncertainity of the future . It starts with certain assumptions based on management experience , knowledge and judgment.

Keeping in view the growth cellular potential of the company there is no option but to b aggressive in order to remain in the cellular company . in order to extend the cellular network to new cities , towns & highways and to enhance its current installed capacities in existing cities u fone has finalized a huge a network expansion contract amounting to about $ 550 million , which will enhance the subscriber capacity by 10 million , this the largest ever expansion project of u- fone . A strong focus will be on maintain high quality of service which is always a benchmark of u-fone , increasing usage and exploring new revenue streams on value added services , market visibility through various market initiatives to fulfill subscriber satisfaction and demand and above all to increase the value of investment for the share holders . Hence U-fone has high quantitative as well as qualitative forecasting techniques.

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In this study we are making a forecast of 6 months budget of ufone on the basis of last 6 months. Average of last 6 months sales is used as the amount of cash receipts in the forecast. While average of last 6 months payments are used as amount of cash payments in the forecast. Average of last 6 months fixed expenses is used as the minimum amount to be maintained in the forecast.

Analysis of the Forecasted Cash Budget

Months GROWTH RATE Oct-09 11% Nov-09 10% Dec-09 9% Jan-10 8% Feb-10 8%

Forecasted Average Growth Rate of Six Months is 9 % The Results of the forecasted Budget shows that the Ufone s

Sales Dept. can make its sale targets to maintain 9% Monthly Growth. The Budgeted forecast will help to set sale Targets. Monitor Monthly expenses. Define Actual Targets without effecting Growth. Market Growth Rate of Competitors (As per PTA) is 12.8%.

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Analysis of Previous Months

10.00% 8.96% 8.00%

6.00%

4.00%

Growth 2.00% 0.87% 0.00% May-09 -2.00% -2.36% -2.93% -4.00% Jun-09 Jul-09 -0.47%Aug-09 Sep-09

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Conclusion & Recommendations against forecasting

The Results of the forecasted Budget shows that the Ufone s Sales Dept. can make its sale targets to maintain 9% Monthly Growth. The Budgeted forecast will help to set sale Targets. To Monitor Monthly expenses. To Define Actual Targets without effecting Growth. Market Growth Rate of Telecom Industry is 12.8%. To be a Market Leader Ufone has to Cross at least 12.8%, this means Ufone needs to increase its growth more than 3.8% than what currently is.

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FINDINGS AND RECOMMENDATIONS

For Finance Department
By the careful analysis of ufone strategies, we find that finance department at ufone is aiming to reduce its cost to the minimum possible level to gain competitive edge over its competitors. Following are some recommendations in this regard; To minimize the cost ufone management should Control on Advertising and Budget. To introduce new technology ufone should Seek FOREIGN INVESTORS. To cut down the non-productive expenditure some Departments must be eliminated. Monthly expenses should be monitored strictly. To survive in changing and dynamic environment ufone must revised its budget policies from time to time.

For Human Resource Department

Hierarchical structure must be flatter to make internal control and internal check system more effective. Work Environment must be professional Ufone should make strategies and plans for Installation of equipment with professional engineers.

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For marketing and selling department

After careful analysis of marketing and sale department we find that Restructuring is required in sales and franchise support department. Following are some recommendations in this regard; y New Sales policies must be defined from time to time. To increase the demand level Trainings in sales department should be started. The Results of the forecasted Budget shows that the Ufone s Sales Dept. can make its sale targets to maintain 9% Monthly Growth.

OTHER FINDINGS AND RECOMMENDATIONS

Market Growth Rate of Telecom Industry is 12.8%. To be a Market Leader Ufone has to Cross at least 12.8%, this means Ufone needs to increase its growth more than 3.8% than what currently is. To compete with other cellular companies ufone must intoduce new Call Rates & SMS Bundle offer. To provide maximium satisfaction to its customers company should remove Network Connectivity Problems. Department isolation must be minimized.

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CONCLUSION

By keenly analyzing the various aspects of Ufone, we group member agree that mobile services are the toughest market to enter and survive. And in this tough market Ufone isn t only surviving but growing at an exceptional rate. Ufone is penetrating its market by taking risks and aggressively promoting & advertising itself. It holds second largest market share and is seeking to become the market leader anyway possible. We came through very unconventional strategies and ad campaigns while working on this report. Ufone is using humorous theme in its ads which has become its benchmark. A strong focus will be on maintaining high quality of service, 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 bring amazing packages to attract the customers. The choice of people is Ufone because Ufone price level is low and affordable that every one can say It s all about U We wish a very best of luck to Ufone. May it progress in this field and achieve its desired goals. (AMEEN)

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