Introduction to Business Project

Submitted To

Dr. Jasim Khan Tariq

Submitted By

Muhammad Saqib Khan

Mehreen Sabir

Rubab Tabassum

Khadija

Mehtab Hussain

Submission Date

28th/12/2017

Feedback:

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Table of contents:

ACKNOWLEDGEMENT……………………………..……………………………....3

Abstract………………………………………………….………………………….…4

Introduction……………………………………………….………………………..….5

Technology for check-in and check-out…………………..………………………..….5

Technology for monitor the occupied and vacant spaces….…………………….……5

Technology for security of parked vehicles……………….…………………….…….7

Estimated revenues that can be generated………………….………………….………7

Report on Daily, weekly, and monthly bases……………….…………………………7

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 ACKNOELEDGEMENT

This project is the result of dedicated efforts of our group members. We were pleased to
prepare the report on “Zong”

We would like to thank our teacher our mentor Dr. Jasim Khan Tariq on providing
suggestions and helped us in completing the project successfully. We also thank Mr. Umair
Anwar to give his precious time for the interview.

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 Abstract

Business is the process through which we can earn some money. In this report we conducted
interview of Marketing Manger of Zong. We ask him about the six key elements, PEST
analysis, strategic management process, SWOT analysis, and marketing aspect of Zong. Zong
is the 2nd largest telecom company in Pakistan.

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Introduction:

Zong or China Mobile Pakistan is a pan Pakistan mobile network operator

headquartered in Islamabad, which offers voice and data services ranging from postpaid and
prepaid plans, 2G, 3G and 4G services, mobile banking to fixed telephony. It is the first
oversea setup of China Mobile through acquisition of a license from Millicom to operate a
GSM network in Pakistan in 2008. Zong is a 100% subsidiary of China Mobile

It is Pakistan’s second largest GSM mobile service provider and third largest mobile
service in terms of subscriber base of over 29 million. It has a market share of 20% among
cellular operators in the country.

Six Key Elements:

Six key elements of an organization are following;

 Departmentalization
 Chain of command
 Work specialization
 Span of control
 Formalization
 Centralization/decentralization

Departmentalization:

Departmentalization is an aspect of organizational design that includes the subdivision

of a business into units based on their function or other criteria Some of the standard methods
of departmentalization include grouping jobs by functional activities, product types, customer
groups, geography or location, processes, and chain of command.

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 HUMAN RESOURCES DEPARTMENT

Mission:

To facilitate Organizational growth through innovative & effective HR and people practices.

Functions:

Organizational Development
Recruitment
Compensation and Benefits
Operations

ENGINEERING DEPARTMENT

Mission

To operate and maintain the GSM network, in minimum cost, maximum availability and up to the
defined quality levels. Building quality network nationwide insight with existing & future capacity
prospectus nationwide with minimum cost and accomplished in the targeted time.

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Functions:

O&M
Rollout
NP&S

FINANCE DEPARTMENT

ZONG has strong financial position since its inception. China has been invested $1500 million in
Pakistan for Zong and wants to invest more. The improvement in net earnings resulting from strong
internal sales growth from both postpaid, prepaid segments.

Functions:

Payable
Treasury
Financial Accounting
Taxation
Fixed Assets
Project Accounting
Sun System (Accounting Software) Administration

ADMINISTRATION DEPARTMENT

Mission

To anticipate the needs of all departments and their employees, to address their demands for creating
better safe and secure friendly working environment, to accept challenges, achieving goals thus
portraying an outstanding  image of the company and ultimately to be the No. 1 Admin. operation
within CMCC by any measure.

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 REGULATORY & CORPORATE AFFAIRS DEPARTMENT

Mission

Maintain the most affable relations with the government to ensure support and facilitation in the
technical installations and the commercial activities of the organization

LEGAL DEPARTMENT

Mission

To pre-empt, identify and assess potential legal matters, to ensure smooth sailing of the company, thus
provide legal service to safeguard the interest(s) of the organization, and welfare of its stakeholders.

INFORMATION TECHNOLOGY DEPARTMENT

Mission

To provide lowest cost and highest speed systems through Automation, centralization and out-
sourcing.

Functions

IT Projects & Planning

IT Infrastructure
IT Systems & Database Management
IT Operations

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 MARKETING DEPARTMENT

Mission

ZONG Marketing Department will become the best Marketing Department of the industry in terms
of adding value to their brand name, improving the image of the organization, increase in sales, with
quality of people and team spirit to lead the organizations towards the achievement of short term
and long term goals.

SALES & DISTRIBUTION DEPARTMENT

Mission

To maximize the number of revenue-generating subscribers by efficiently planning & executing the
policies & operations related to product visibility & availability.

DISTRIBUTION

Zong purchases equipment from four companies ZTE, Ericson, Alcetle, and Hawaii. These are the
venders and operator of Zong. Zong distributors are franchises, customer care service centers and
different outlets. Zong has 22 CCSC and 100000 different outlets in Pakistan.

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 CUSTOMER SERVICES DEPARTMENT

Mission

To realize the perceived value of the customers and build higher expectations through excellence in
service.

Customer service centers

“The beacon of ZONG’s impression and torch bearers of a new era in customer interaction, taking
customer service into a portal of customer excitement. These are the doors to ZONG’s first and
foremost realization of its promise to excite customers with a new trend in service. Setting the tone
and ambiance which is second only to your home, these are ZONG’s arms across the country to
welcome everyone to experience the comfort when a true promise is fulfilled.”

REGIONAL BUSINESS UNITS:

North
South
Central I
Central II

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Chain of command:

The order in which authority and power in an organization is wielded. Delegated from
top management to every employee. Instructions flow downward along the chain of
command and accountability flows upward.

Work specialization:

The process of focusing one's occupational concentration on a specific area of

expertise. An increase in job specialization among employees can make them less flexible
since it tends to reduce their ability to perform other types of work within the business that
fall outside their particular specialty.

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Span of Control:

The number of subordinates that a manager or supervisor can directly control. This
number varies with the type of work: complex, variable work reduces it to six, whereas
routine, fixed work increases it to twenty or more.

Formalization:
The extent to which work roles are structured in an organization, and the activities of
the employees are governed by rules and procedures.

|Centralization/Decentralization:
The concentration of management and decision-making power at the top of an
organization's hierarchy.
Transfer of decision making power and assignment of accountability and
responsibility for results. It is accompanied by delegation of commensurate authority to
individuals or units at all levels of an organization even those far removed from headquarters
or other centers of power.

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 SWOT ANALYSIS OF ZONG:

Internal analysis:

Strengths

Lowest rates Nation Wide

Zong provide lowest rates as compare to other telecom industry it’s a great thing which is only
provided by zong.

Strong image of Parent Company

Zong have a strong image of their parent company china mobile. That is a plus point for zong.

Network portability

Over 500,000 people have been switched to Zong from other networks.

Zong mobile

Zong has come up with another interesting promotion…. you get a phone, almost free but with a
year’s payment in advance.

Resources, Assets and People

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 Being a multinational company Zong has huge resources in terms of capital. It has
billions of capital to invest in various projects. Its offices are luxuriously equipped with
every facility.
Zong while choosing people for jobs follow the strategy of “choosing the best among all”
therefore majority of its staff people are highly qualified from renowned universities of
Pakistan. A certain persons are foreign qualified.
So far CMPak has invested more than US$ 700 million in the telecom sector in Pakistan
and an additional US$ 800 million will be invested till the end of year 2008.

Location and Geographical Coverage

Zong is also covering the all cities of Pakistan and in 2008 Zong completed its record sites
1000 in Pakistan its great achievement.
Zong is covering the northern areas of Pakistan rapidly.

Weaknesses

Bad image

Bad image of associate with Paktel. And still now having old staff of Paktel.

Brand standing

Zong have Week brand standing as compared to other telecom companies because they are new in
the market.

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 Bad MIS

Zong does not have the proper lists of its customers. It has the list but this list is not authentic
which is increasing the unauthorized use of its sim specially pre pay. Zong have to take serious
steps to properly list its customers to ensure that there is no misuse.

External analysis:

Opportunities

Expand Globally

ZONG can expand the globally and can develop it strategy in other countries.

Acquire / merger

As warid is going in loss and in the condition of liquidation its big opportunity for Zong to
acquire warid telecom.

New product development:

Zong can introduce new products such as dish TV.

Opportunity in northern areas

Zong can have a clear edge over the competition in the Northern Areas especially, as China
Mobile has huge experience of network operation in similar high mountainous areas in China
itself.

Pak China Border

Zong can cover the border of China, with the Karakoram highway (old Silk Route) and can play a
vital role in freight transportation.

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 Threats:
Threat of new entrance.
Bargaining power of buyers.
Bargaining power of suppliers.
Threat of substitute product

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 for this business companies need a well established distributions and franchises
network so threat of new entrant is high in this case.

Bargaining Power of Buyers

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 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, WORLD CALL 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.

PEST ANALYSIS:
In order to survive and remain profitable in today’s competitive marketplace, Zong need to be able to
react and adapt to changes in the external environment and ideally be proactive in impacting these
forces. External environment factors can be classified into five
general categories: competitive, social/cultural, economic, political,
and technological.

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 POLITICAL FACTORS

Political Instability:

Pakistan is facing political instability causing danger for the telecom industry. But the political factor
does not effect on Zong so high because Zong related from china and relationship of china and
Pakistan is very strong.

Deregulation:

The telecom sector of Pakistan has successfully liberalized in an efficient, transparent and fastest
deregulation of telecom in the region. The Government of Pakistan gave the status of Industry to
Pakistan Telecommunication Sector.

Changes in Tax Laws:

Tax rates have been increased day by day government tax rate of call is 15% and recently
government increased it by 6 % more.

ECONOMIC FACTORS:

Gross Domestic Product:

Telecom sector of Pakistan has a share of almost 2 percent in National GDP.

Average Revenue per User (ARPU):

The average revenue per user is falling. It does not affect value able on Zong. Because Zong started in
same condition.

Decline in Money Value:

The decline in Rupee value against the US Dollar, the decrease in the interconnect charges and lower
priced tariffs have resulted in an overall decrease of ARPU in US Dollar terms.

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Outflow of Capital:

The ongoing economic turmoil along with the worsening of security conditions in Pakistan has caused
an increased outflow of capital from the country.

TECHNOLOGICAL FACTORS:

Technological Development:

Companies are investing in their infrastructure to not only expand but also to upgrade their existing
structure. As the competition is strong Zong is focusing on its value added services.

Technological Advancement:

Currently all companies are providing Multi-media Messaging Services (MMS), General Packet
Radio Service (GPRS), Virtual Private Network (VPN), Pocket Stocks, Conference Calling,
Wallpapers Animated pictures Polyphonic ring tones (WAP), and Voice Mail at low price.

Technological Trends:

The well-recognized technology trends that are influencing the evolution of the network indicate that:

The cost of a call is becoming even more insensitive to the distance;

The modularity of the network is increasing;
The networking is shifting from circuit-switched to packet-routing;
The voice communication is now independent of the network;
The geographic boundaries are irrelevant for emerging technology;
The intelligence and function are moving away from the central office.

In these conditions competition is very strong among competitors. Zong is improving itself in
technology.

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 COMPETITIVE FACTORS

Major competitors of ZONG include

Mobilink
Ufone
Telenor
Warid

MARKETING ANALYSIS

Marketing Mix
"Marketing Mix" is set of correlated tools that work together to achieve company’s objectives, they
are:

 Product
 Price
 Promotion
 Place

Product
Product means offerings of a company, and ZONG is offering its customers Services as well as
products. In services ZONG is offering followings:

 Postpaid packages
 Prepaid packages
 Value added services
Postpaid packages are generally for business class and in postpaid ZONG are offering many other
packages like 100 line rent, 300 line rent, 600 line rent, 1200 line rent and 2000 line rent. Prepaid
packages are for low and middle class in prepaid ZONG also offer many packages like 12 anny, 65
paisa, free package and aik second package. And also many exciting value added services like missed
call alert, ramzan value time offer, dial tune, E-care, happy hour and many more exciting offers. And
products like mobile phone and for postpaid ZONG offers blackberry.

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 Price
ZONG is offering its products and services at a low price so ZONG is using price penetration because
all the packages (postpaid and prepaid) are very low priced and also other value added services are
also very low in cost. Some of them are absolutely free of cost like,

 Missed call alert

 E-care
 MNP1
 Conference call
 Subscription of SMS packages
As Ufone is giving its customers uth package and it charge its customer’s hourly rate but ZONG gives
its customers a package called location base charging it charge you only one time charges and then
whole day free and many more other.

ZONG also using bundle pricing like SMS packages, voice bundle and mobile phone offers.

Promotion
ZONG is promoting its products and services in many ways like:

 Print media
 Billboards
 TV ads
 Mobile promotions
 Through Local cable
 Internet
In print media print ads and newspapers are include if ZONG is offering something in a specific place
than ZONG use print media like print ads and newspapers. Billboards are use in all over the country.
On many TV channels Ads are promoting ZONG. Mobile promotions like in Multan and Lahore
when trucks and buses decorated with ZONG logos and advertising about LBC 2 and Lahore unlimited
offers. On many websites ZONG is promoting its packages and offers and also ZONG has its own
commercial web site www.zong.com.pk.

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Mobile number portability
2
Location base charging

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 CONCLUSION:

Since CMCC takeover i.e. within one year only, Zong has achieved great milestones. Some of the
achievements are as follows:

Growth in the subscriber base from 2 million to 6 million.

Many products like BYN Franchise, Super Free Number, BYN Home Delivery, BTO Media
Campaign, Yaari Load, Unlimited Free Numbers, 12 Aana package, 8 Aana Package, SMS
bundle, Handset offer etc were launched.

The industry record was broken by setting up over 3000 BTS Towers in a year as Phase one
regime.

Many mini exchanges were installed for capacity building; network has a capacity to now
support 2 crore users

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 Recommendations
Zong Telecom should be increasing their network coverage and foot prints in every corner of
the country to capture the market.
Zong should adopt the strategies of market penetration market development and related
diversification, but the most effective strategy would be market penetration.

In the SBU of Zong mobile Zong should use the strategy of hold and maintain.

Zong should hire the skilled management.

Zong should not waste their opportunities and get more help as possible.

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