Assignment no 1

Submitted by

Hassan Raza 1825145

Adnan-Ul-Hassan 1825132
Khawar Khan Hayat 1825142
Humayun Ali Khattak 1825141
Waqar Ahmad 1825139

Submitted to
Mr Saqib Mahmood

Management Science
SZABIST Islamabad
Mobilink
Mobilink (Jazz) is Pakistan’s leading telecom service provider in Pakistan. It wasfounded in
1994 and its head office is located in F-8 Markaz Islamabad.Its subscribers are above 50
million. The current President and CEO is Aamir Ibrahim, Jeffrey Hedberg and Rashid Khan.
Board of Directors are David Dobbie, Hassan Helmy is a board member, Vincenzo Nesci is
chairman and board member, Aamir Ibrahim is a Board member as well, Mikhail Gerchuk is
chairman and board member, Niaz Brohi is board member, Head Corporate Finance at Jazz is
Syed Irfan Shah.Mobilink Jazz maintains its leadership in the market through cutting-edge,
integrated technology, the strongest brands and the largest portfolio of value-added services
in the industry.Now a days Mobile technology has transformed almost all industries in the
country. Regarding the technological developments in the country many international
companies have started taking interest in Pakistani market.

Warid
In the telecom industry of Pakistan,Warid is a well-known telecommunication industry. It is
owned by the Abu Dhabi Consortium, and is led by His Highness Sheikh Nahayan Mabarak
Al Nahayan. Their mission and vision is cherished by shareholders and are very sincere with
customers to fulfill their demands. Warid is very proud to be backed by the Abu Dhabi group.
It is the only single largest foreign investor in Pakistan and one of the largest group in the
Middle East. They have different portfolios and are very diversified in business
interests.They have enjoyed success as a result of their management expertise and their
financial resources.
Vision

“To be the leading Telecommunication Services Provider in Pakistan by offering innovative

Communication solutions for its Customers while exceeding Shareholder value & Employee
Expectations”.

Mission

“Warid care about its employees, the environment, and communities,the way it conducts
business. Its ambition is to be the best employer in Pakistan”.

Business Type
Mobilink provides its customers affordable voice and data solutions. It also provides wireless
broadband services, mobile data with office 365 subscription, smartphone along with feasible
payment plans and international roaming. Similarly, Warid also used to run its business by
providing cellular services at over 7000 destinations in Pakistan, including different mobile
data plans for its customers.

Merger with Warid

Mobilink announced its merger with Warid Pakistan and merging into a single brand in
November 2015. This case was actually under the assessment of Pakistan Telecom Authority
and after the scrutiny PTA finally permitted the merger on 24th May 2016. And then January
2017, CEO of Mobilink Mr. Amir Ibrahim said that WARID would be staying in history, and
both companies will be relaunched under the umbrella of JAZZ. After the merger with
WARID now Mobilink/ Jazz is also providing the 4G internet services in Pakistan.

Mobilink announced that Warid customers would be able to use their 3G network and
Mobilink customers will be able to use Warid's LTE network.Mobilink has already invested
billions of dollars in the country for a nationwide network and an unparalleled fiber optic
backbone of more than 10,000 kilometers. Jazz also provides uninterrupted countrywide
connectivity, unmatched customer services and international roaming in over 150 countries.
Mobilink/ Jazz financial department did not manage and control Budgeting, Planning &
Treasury responsibilities.

Mobilink is owned by Cairo, Egypt-based Global Telecom Holding and Warid is owned by
Abu Dhabi Group, announced a consolidation of their capital and operating expenditures of
around $500 million with Mobilink Jazz, a leading customer base of 35.1 million and Warid’s
10.3 million, the telecom firms said they would together serve 45 million subscribers.
Affordability is one of the main bottlenecks, operators and customers struggle to offer and
enjoy innovative and modern telecom services, respectively. Mobile-specific taxes as a
percentage of total cost of ownership in Pakistan are 32 percent as compared to the global
average of 15 percent, which is affecting the affordability of consumers.The team
consolidated the data for budget presentation and provided an overview of the financial status
of all the operations and advised to the management of different operations to undertake
proper financial planning and decision-making.The top management decided tohire the
consultant and they hired McKinney consultant company.
McKinsey have a vast global experience to help the governments and many companies to
grab their key challenges and give them proper shape for developing their strategies. And
they come up with very new expertise in telecom sectors, public sectors and as well as in
financial services.In Pakistan, Consultant team facilitated a merger of two telecom
companies.The consultant team overlooked all the projects and finances of Mobilink/Jazz and
then made goals, they also fired a lot of employees who have not enough
responsibilities.Mckinsey team did working, delivered strategic projects and finalized Annual
Funding plans. The team worked for optimization of cost with funds, utilization of available
funds and optimized the working capital of the company. Its provided support and guidance
for the cash collection team and supervised their activities.

These two companies looked forward to merging to ensure their benefits. In this scenario the
situation will be winningfor both companies then it’s not a wrong situation. Warid has a
4G/LTE License and warid start losing their customers and the Mobilink has many customers
and they are very loyal with their customers because Mobilink have 29 % of market share in
Pakistan. And they have more than 35 Million customers before the Merging and after the
merging with Warid, they have around 45 Million customers. Mobilink took more Benefit
after the merger and now they are on driving seat and they have set a standard for
competitors. Mobilink got different benefits due to this merger which are listed down;

 They are providing the superior value to their customers.

 They are getting more benefits due to the merger and they are leading by providing
high speed network in the territory.
 Due to the Merger Mobilink customers are enjoying the 4G Network.
 Both network customers can recharge their sim cards using the Mobilink-Warid Card.

Different strategies are used by different organization while being two different
companies.Before mergers Mobilink-Warid had different strategies to survive and compete in
market. After fusion of Warid andMobilink numbers of challenges have to be faced by
Mobilink in future.

 Understanding about Warid:

Moblink wants to follow working environment of Warid as both have different
working environments.Difference byMobilink has to be solved that will bearised.
 Both organizations have different employees so understandingeach other employees
because of a merger is an issue, for Mobilink especially.
 Mutual Trust:
Moblink has to fulfill all aspects after merger to warid in order to maintain trust. So
that is also a big challenge.
 Customer Satisfaction
Customer satisfaction is important as customer is a king of business, almost 45
million customers are being served by Mobilink inall over Pakistan so their
satisfaction and management is also a big is challenge for Mobilink.
 Quality Services:
Quality services like clear voice calls etc are the reason behind moblink success but
after merger will Mobilink maintain its quality and services.
 Change In strategies
Due to change, Moblink has to take this change as challenge in a certain aspects like it
is favorable for customer or not.
 Brand Loyalty
Dealing with brand conscious or brand loyal people of both Mobilink-Warid, is also a
big challenge for Mobilink.
 Communication
To maintain competent employees, Mobilink has to communicate a message to
relevant persons to rid them from the fear of firing. Especially in Warid.
 Differences
Different companies have different strategies: Before merger Warid and Mobilink
also had different policies and strategies now its challenge for Mobilink that how it
deal with differences.

Conclusion
Mobile industry has been massively revolutionized in Pakistan through the tough competition
between different competitors. The companies wanted to get the maximum number of market
share and in this regard,they introduced different tactics to attract maximum number of
customers so that customers' swiftly get towards them. Mobilink enjoyed a leading role in the
Pakistan's mobile industry but with the time it was witnessing customer's switch over to other
local networks.Warid has been providing optimum mobile services to its customers; strong
post-paid base with superior 4G/LTE services, but their market share was not very
significant. Mobilink wanted to attain maximum number of market share, so that it can have
lowest customer cost for the network, and this has been very much possible for it by merging
with Warid.
Mobilink acquiring Warid provided its customers an unmatched platform of services;
unparalleled high speed 4G/LTE network, countrywide uninterrupted mobile connectivity,
international roaming in more than 150 countries. It is now giving an edge to its customers’
as they are able to get 4G internet services at lower prices as compared to other mobile
networks. In conclusion, Mobilink is successful to play more aggressively in the telecom
industry of Pakistan with its terrific services for 45 million subscribers' and thus maintaining
the leading status at the same time.