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FINAL PROJECT

PAKISTAN TELECOMMUNICATION COMPANY


LIMITED (PTCL)

SUBMITTED TO:
Dr. ANWAR UL HAQ

SUBMITTED BY:
Ayesha Tirmazi 17232720-012
Toqeer Zara 17232720-014
Ayesha Kalsoom 17232720-064
Hafsa Ghulam 17232720-094

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TABLE OF CONTENTS
1. Introduction
1.1. Background of the organization
1.2. Historical background
1.3. PTCL positioning statement
1.4. Vision and mission statement
1.5. Core values
1.6. Business volume
1.7. Privatization
2. Structure of the organization
3. Subsidiaries and competitors
4. Recruitment and Selection
4.1 Recruitment process
4.2 Recruitment methods
4.3 Modes of recruitment
4.5 Selection process
4.6 Selection criteria
4.7 Interview methods
5. Human Resource Planning
6. PEST Analysis
7. SWOT Analysis
8. Current Issues of PTCL
8.1 Weaknesses of PTCL HR
9. Recommendation and conclusion
9.1 Recommendations
9.2 Conclusion

PAKISTAN TELECOMMUNICATION COMPANY LIMITED


(PTCL)

1. INTRODUCTION
PTCL was incorporated on December 31st 1995 and commenced business on January 1st
1996. The idea behind this was to provide better services to its customers. This was
established to undertake the telecommunication business formally carried out by EX-PTC. It
was responsible for carrying out all kinds of telecommunications activities in the country. It

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was required to look after the existing telecom installations and their automation and
development. It was also to undertake development program in telecom field. All properties
assets obligations and liabilities of PTC were accordingly transferred to the PTCL on the 01-
01-1996. The P.T.C.L. is a prestigious organization and telecom services in the country are
getting better and better since its incorporation.
1.1 BACKGROUND OF THE ORGANIZATION
Pakistan Telecommunication Company limited (PTCL) is the largest telecommunication
service provider in Pakistan with employee strength of around 30000 and 5.7 million
customers. PTCL also continues to be the largest CDMA operator in the country with 0.8
million V-Fone customers. The company maintains a leading position in Pakistan as an
Infrastructure Provider to the other telecom operators and corporate customer of the country.
The company provides a verity of up-to-date home user, corporate and wholesale
communication services e.g. telephony, internet, television, video conferencing etc.

The company structure is spread over the entire country which facilitates the company in
providing services to the value added customers in every part of the Pakistan. Geographically
the company is divided into: Headquarters, north, South, Central, and west Zones and
functionally in Commercial, HR & Admin, Corporate Development, Finance, Operations and
Technical departments. The hierarchy of the company comprises of the following cadres:
President and CEO, Senior Executive Vice President, Executive Vice President, General
Manager, Senior Manager, Manager, Specialist, Management Trainee and Non-Management
Employee. In April 2006, Emirates Telecommunication Corporation which is commonly
known as Etisalat, assumed management control of PTCL –part of the $2.6bn deal to buy a
26% stake in PTCL. The successful privatization of PTCL and consequently Ufone, is hailed
in a new ear for telecommunication in Pakistan. Etisalat has been the telecommunication
service provider in the UAE since 1976and stands 140th among the financial times top 500
corporations in the world in terms of market capitalizations. Etisalat is currently operating in
16 countries of Middle East, Asia and Africa and is continuing to pursue new mobile and
fixed line opportunities in many growth markets.
PTCL has listed on Karachi Stock Exchange, Islamabad Stock Exchange, and Lahore Stock
Exchange with the name as follow:
 KSE: PTCLA

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 LSE: PTC
 ISE: PTC
1.2 HISTORICAL BACKGROUND
 1947- Establishment of Posts & Telegraph Dept.
 1961- Establishment of Pakistan Telegraph & Telephone Dept. (T&T)
 1990-91-Establishment of Pakistan Telecom Corporation (PTC)
 1995- About 5% of PTC assets transferred to PTA, FAB (Frequency Allocation
Board) & NTC (National Telecommunication Corporation)
 1996- PTCL Formulation and listing on all Stock Exchanges of Pakistan.
 1998- Establishment of Mobile (Ufone) & Internet (Pak Net) subsidiaries.
 2006- Etisalat Takes Over.
From the beginnings of Posts & Telegraph Department in 1947 and establishment of Pakistan
Telephone & Telegraph Department in 1962, PTCL has been a major player in
telecommunication in Pakistan. Despite having established a network of enormous size,
PTCL workings and policies have attracted regular criticism from other smaller operators and
the civil society of Pakistan. Pakistan Telecommunication Corporation (PTC) took over
operations and functions from Pakistan Telephone and Telegraph Department under Pakistan
Telecommunication Corporation Act 1991. This coincided with the Government's
competitive policy, encouraging private sector participation and resulting in award of licenses
for cellular, card-operated pay-phones, paging and, lately, data communication services.
Pursuing a progressive policy, the Government in 1991, announced its plans to privatize
PTCL, and in 1994 issued six million vouchers exchangeable into 600 million shares of the
would-be PTCL in two separate placements. Each had a par value of Rs. 10 per share. These
vouchers were converted into PTCL shares in mid-1996. In 1995, Pakistan
Telecommunication (Reorganization) Ordinance formed the basis for PTCL monopoly over
basic telephony in the country. The provisions of the Ordinance were lent permanence in
October 1996 through Pakistan Telecommunication (Reorganization) Act. The same year,
Pakistan Telecommunication Company Limited was formed and listed on all stock exchanges
of Pakistan PTCL launched its mobile and data services subsidiaries in 2001 by the name of
Ufone and Pak Net respectively. None of the brands made it to the top slots in the respective

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competitions. Lately, however, Ufone had increased its market share in the cellular sector.
The Pak Net brand has effectively dissolved over the period of time. A recent DSL service
launched by PTCL reflects this by the introduction of a new brand name and operation of the
service being directly supervised by PTCL. As telecommunication monopolies head towards
an imminent end, services and infrastructure providers are set to face even bigger challenges.
The post-monopoly era came with Pakistan's Liberalization in Telecommunication in January
2003. On the Government level, a comprehensive liberalization policy for telecom sector is in
the offering. Last Year, in middle of 2005 Government of Pakistan had decided to sell at least
26 percent of this company to some private agency. There were three participants in the bet
for privatization of PTCL. Etisalat, a Dubai based company was able to get the shares with a
large margin in the bet. Last year when Government was going to privatize the company
there was country wide protest and strike by PTCL workers. They even disrupted Phone lines
of some big Government institutions like Punjab University Lahore and many lines of public
sector were also blocked. Military had to take over the management of all the Exchanges in
the country. They arrested many workers and put them behind bars. The contention between
Government and employees ended with a 30% increase in the salaries of workers. There have
been various changes in the company due to privatization. Such examples include the VSS
(Voluntary Separation Scheme for its employees), ERP (SAP based), restructuring, B& CC
(Billing and Customer Care Software) etc. Another seemingly minor change was change of
brand identity (logo) that will present PTCL's new face after privatization, with greater focus
on customer satisfaction and bringing about new advancements in telecom for Pakistani
consumers.

1.3 PTCL POSITIONING STATEMENT

Hello to the Future “Hello to the Future” is an amalgam of our vision, brand philosophy,
brand values and strategy.
The essence is “futuristic approach”. The positioning statement “Hello to the Future” is
basically comprised of two words “Hello” and “Future” that provides the inward
communication through the word “Hello”, i.e. PTCL welcomes its customers and the future.
Also it offers the outward communication through the word “Future” by promising customers

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the futuristic ideas and products.

1.4 VISION AND MISSION STATEMENT

Vision:
To be the leading Information and Communication Technology Service Provider in the
region by achieving customer satisfaction and maximizing shareholders' value'. The future is
unfolding around us. In times to come, we will be the link that allows global communication.
We are striving towards mobilizing the world for the future. By becoming partners in
innovation, we are ready to shape a future that offers telecom services that bring us closer.
Mission:
To achieve the vision by having:
 An organizational environment that fosters professionalism, motivation and quality
 An environment that is cost effective and quality conscious
 Services that are based on the most optimum technology
 "Quality" and "Time" conscious customer service
 Sustained growth in earnings and profitability
1.5 CORE VALUES
PTCL has some core values to which they give a lot of significance and they consider them
as the most important part of their business. These core values do not change from time to
time or person to person rather they are foundation of the company’s culture. These core
values are:
 Professional Integrity
 Customer Satisfaction
 Teamwork
 Company Loyalty

1.6 BUSINESS VOLUME

Fixed line connections in the country are more than 5.4 million and the cellular connections
are 12.7 million currently there are 315 Payphone and over 51,000 Wireless Payphones
There are over 140 Data and Internet service providers (ISP's) to whom PTCL has provided

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network infrastructure. PTCL generated annual Revenue of over Rs. 11 billion from its
private sector operating partners.

1.7 PRIVATIZATION
The growth of the cellular sector in Pakistan can also be attributable to good governance
policies of the government of Pakistan and the Privatization Commission. In April 2006,
Etisalat International Pakistan, which is commonly known as Etisalat, has assumed
management control of Pakistan Telecommunication Company Ltd (PTCL) – part of the
$2.6bn deal to buy a 26% stake in PTCL. The successful privatization of PTCL is hailed as
ushering in a new era for telecommunications in Pakistan.

Now, under the management of Etisalat, Ufone will concentrate on customer needs and
benefits and is more determined than ever to be the leading cellular player in the market.
Ufone has been known for providing superb propositions and quality service to its customers.
With the new expected investment, Ufone can now aggressively expand its network
coverage.

2. STRUCTURE OF THE ORGANIZATION

An Organizational Structure clarify the roles of personnel of an Organization and to


determine who has to do what task, which is responsible for what, objectives to be achieved,
who is to report to whom and to remove the obstacles for performance caused by confusion
and uncertainty of job assignment as well as to make easy decision- making and
communication networks reflecting and supporting organization objectives. The head of
Pakistan Telecommunication Company Limited is called “President”. Then come the SEVPs
(Senior Executive Vice Presidents), i.e. SEVP (Finance), SEVP (Operations), SEVP
(Technical), and SEVP (Human Resource Management), SEVP (Marketing & Business
Development). Then there is a chain of Executive Vice Presidents (EVPs) like EVP (Finance
Central), EVP (Marketing), EVP (HR Central), EVP (Accounts), EVP (Operation), EVP
(Information Technology, Training & Research), and EVP (Revenue). All these are
appointed at Pakistan Telecommunication Company, Headquarters at G-8/4, Islamabad.
Apart from these EVP, there are also EVP (Operation), EVP (HR) etc. who are heading the
other regions of PTCL in major cities country wide. Then there are Chief Engineers and

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General Managers at H/Qs who report to their relevant EVP. Then there are Senior
Managers, Deputy Directors, Assistant Directors, Account Officers, Assistant Account
Officers, Financial Analysts, Marketing Managers, Computer Programmers, and IT
Specialists etc. There are also Regional Heads (General Managers) to head PTCL Regions
then come the Senior Managers (Operations), Senior Engineers (Operations), Engineers to
look after the telecom system of Regions. There are also Senior Managers Finance, Account
Officers and Accountants to Handle Regional account and billing matters. Manager HR & his
staff are responsible to take care of Personnel affairs at Regional Level. In non-gazette staff
there are Engineering Supervisors Operations /Switching /Power plant /Optical Fiber system
Media, Account Assistants, Stenographers, Assistants, Key Punch Operators, Telecom
Technicians, Upper Division Clerks, Lower Division Clerks, Line Men, Wire Men, Drivers,
Exchange Cleaners, Naib Qasida and Peons etc. All the staff is recruited by the HR
Department headed by SEVP HR. The HR experts are responsible for hiring & to further
streamline its recruitment process.

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3. SUBSIDIARIES AND COMPETITORS
As already mentioned, presently PTCL has to face war with major competitors in mobile
phone; however, there are also competitors of its following subsidiaries/products:

SUBSIDIRAY/PRODUCT COMPETITOR
There is about 100 competitor of product

Multimedia & Broad Band (ISP Product) throughout the country to provide Internet
service to the customers. However, some of the
major competitor of product are Cyber net,
World online, Apollo, World Call.

UFONE (Cellular service provider) There are five competitors of Ufone in cellular
phone industry i.e. Mobilink, and C.M Pak,
Telenor etc.

Hello Cards, Call Point Cards, Call Mate Cards,


PTCL Calling Cards (Product) Global Telecom Cards.

Go CDMA, Wateen Telecom & World Call are


Wireless Local Loop (V-Phone)
the Fixed Wireless Telephone competitors of
V-PTCL.

COMPETITOR OF PTCL
There is no meager competitor of PTCL in landline but with the growth of
telecommunication industry of Pakistan competition increasing specially in mobile phone
sector. In total there are more than 800 million subscribers of mobile phone. There are 03 big
players in mobile phone industry but 3 of them are the competitor of PTCL:

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 Mobilink

 Telenor

 Warid Tel

 Zong

Other players in Land Line industry:

Operator NTC Brain World Call Union Naya Tel

Limited Communicatio
n
Customer 103,059 7,376 11,347 3,500 13,500

4. RECRUITMENT AND SELECTION

4.1 RECRUITMENT
The recruitment procedure of PTCL is as follows: First position or vacancy is announced in
the electronic media and print media via Internet and newspapers respectively. Then
applications are scrutinized as per specification in the job description and job specification.
Candidates are being short-listed. The next step is Test of short-listed candidates. The next
step of the PTCL recruitment process is the interview. They usually Use a structured and
semi-structured interview for the candidates. Last but not the least is the verification of the
documents.
4.2 RECRUITMENT METHODS

There are basically 2 types at PTCL frequently carried out when desired,

 Internal Recruitment

 External Recruitment

Internal Recruitment

In this method the candidates are recruited within the PTCL. It is a search mode in which the

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PTCL check out the potential and right and desired person within the PTCL. In order to get
desired candidates, they advertise within the organization. Job specification and job
description by using Notice Boards.
External Recruitment

In this method PTCL recruit externally from the outside environment. For this method they
use different modes to recruit the people. Few of the methods are as: follows carried out in
past as well as currently, Online Recruitment, Use of Print Media, (Newspapers).

Quota System

There is a percentage reserved by each quota differentiated on the basis of Gender and
Province.

 Punjab 50%

 Sindh 20%

 Khyber Pakhtunkhwa 17%

 Baluchistan 10%

 Women 5%

 Handicapped 2%

 Child Labor Nil

4.3 MODES OF RECRUITMENT

PTCL Advertise its vacant positions through different sources of media these are as Follows:

 Official Web Site

 PTV

 The NEWS

 The JUNG

 NAWA-A- WAQT

 Google (Online application forms)

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4.4 SELECTION PROCESS

Selection is the process of choosing from a pool of applicants the individual or individuals
who best fit the selection criteria for a given position. PTCL has got very effective and
efficient selection.

4.5 SELECTION CRITERIA

These are the following steps carried out by PTCL in order to meet selection

 Recruitment (Advertising Job specification &Description)

 Application (Online & Forms)

 Screening of applications

 Test

 Interview

 Final Decision Making

 Joining Letter

4.6 INTERVIEW METHODS


The interview method depends on the situation and conditions but there are three types‟
interviews but two of them are and were in focus of PTCL while carrying out Selection.
These three methods are:

 Structured Interviews

 Unstructured Interviews

 Semi Structured Interview

But at PTCL there are only 2 types used which are:

Structured Interviews are those which are preplanned and predefined in order to check the
skills, abilities, knowledge, behavior, and required potential of the candidates.

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Unstructured Interviews are those which are not predefined and preplanned but they are
based on conditions and possibilities

5. HUMAN RESOURCE PLANNING

Another new function that has emerged in recent years in human resource planning (also
called manpower planning). Sometimes a specific person or office has this as its primary
responsibility; more commonly the responsibilities are shared by several people within the
corporate personnel unit. Human resource planning is the process by which a firm ensures
that it has the right number of qualified persons available at the proper times, programming
jobs that are useful to the organization, and which provide satisfaction for the individuals
involved. The principal elements involved in human resources planning are as follows:
1) Goals and plans of organization.

2) Current human resource situation including skills inventory.

3) Human resource forecast including comparison of projected future demand for


employees with projected supply.
4) Designing programs to implement the plans.

5) Audit and adjustment.

6. PEST ANALYSIS

The macro-environment includes all factors influencing a company that are not within its
control. These include political, social, economic and technological factors. These are known
as PEST factors. A technique of analysis of the macro environment is PEST analysis. Since
the Telecom industry is very much influenced by changes taking place in the environment
and has undergone rapid and dramatic changes during the last decade, this analysis is
especially important for PTCL.

POLITICAL FACTORS:

Political factors always have a great influence on PTCL due to its monopoly in the market. In
recent years it has been observed that government played an active role in increasing

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competition in the Telecom industry. Pakistan has achieved some political stability in recent
years. If the management of PTCL believes that the present government Will perform well
(consistently), then there will be more cooperation by the government and PTCL can excel in
latest technology in this competitive environment. The company would become better and
will grow resulting in more suitable products for customers and would capture more market
share then the mobile company. PTCL should take the advantage of suitable policies of
government because it would help them to gain larger market shares.

ECONOMIC FACTORS:

Currently, PTCL has major competitors like MOBLINK, WARID, ZONG, UFONE etc. these
are its indirect customers but they are gaining more market share and are economically well
going, so PTCL would have to think to target its customers to its best extent. Customers
‟purchase behavior depends very much on quality and innovative latest technology. As
inflation rate is unstable in Pakistan, spending power of consumers has effected in the long
term. In fact, growth in Pakistani economy has resulted in an increase in spending power and
has positively impacted PTCL. The new services and products has got fame in the minds of
young generation, e.g. EVO, DSL Student packages etc. so right now PTCL economically is
far better than the other cellular companies.

SOCIAL FACTORS:

The social structure of Pakistan is closely tied. The trend is now changing as the general
public is educated and is pursuing professional goals. Customers are more aware of market
conditions and available options and want to get best value for their money. They spend
considerable time and money on entertainment hence increasing the need for entertainment
systems. Also, word of mouth has a significant impact in the use of PTCL services. EVO
attracts a huge number of customers. The social environment of Pakistanis turning liberal. So
PTCL has to take advantage of the situation that customers are now getting more informative
and it should focus more on its advertising policies.

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TECHNOLOGICAL FACTORS:

Technology is vital for competitive advantage and is a major driver. Major technological
changes are taking place in PTCL with innovations in products and services. EVO and
SMART CARD are such examples of these innovations. Internet plays a key role as it’s vital
need for all customers and PTCL internet packages are better than its competitors like
WATEEN, WI-TRIBE, etc. which has helped it gain market share.

7. SWOT ANALYSIS

“SWOT analysis is a situational which includes strengths, weaknesses, opportunities and


threats that affect organizational performance”.

SWOT analysis is one of the most important steps in formulating strategy using the
organization mission as a context, managers assess internal strengths distinctive
competencies and weakness and external opportunities and threats. The goal is to then
develop good strategies and exploit opportunities and strengths neutralize threats and avoid
weaknesses.

STRENGTHS

 PTCL enjoy monopoly

 State of the Art International Gateway Exchanges & Satellite Earth Stations

 Good quality international connectivity

 Customer Base of over 4 million

 Government support

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WEAKNESS

 Government organization

 Lack of customer focus

 Outdated people and technology (perception)

 Lack of aggressive marketing

 Lack of customer services

 Ambiguous management style

 Lack of corporate culture

OPPORTUNITY

 Growth in telecommunication industry

 More aware and technology understanding consumer _ a base that is growing at a


fast rate

 Market open for more number of products – less dependence on single category or
product

 Opportunity to introduce High Value Added Products / High margin products for the
new, more aware consumer

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 Time to establish brand loyalty, Pre-empt competitors, co-opt partners, invest
InTechnology and networks

THREATS

 Exposure to market competition Migration to Cellular Networks

 Ability to Attract & Retain Quality Professionals

 Reduction in International Settlement Rates

8. CURRENT ISSUES OF PTCL

PTCL offered VSS (Voluntary Separation Scheme) to its regular staff . Under this
program, all regular status employees under the age of 58 as of 15 November, 2007 are
eligible to participate in this PTCL VSS. Employees interested in opting for VSS will have
60 days from the announcement date of 15 Nov, 2007 to complete and submit the enclosed
Option/Wavier Form to the VSS Support center using the enclosed pre- addressed & pre-paid
envelop. If an employee chooses not to opt for the VSS & remain at PTCL under the current
terms of employment. The VSS is completely voluntary. Employee decision either to
participate or not to participate is voluntary at his will. Additionally, PTCL established a VSS
support center to assist employees in the decision making process. The support center staffed
with Support Officers that can help employees understand his individual VSS package &
answer any questions he may have.
WEAKNESSES OF PTCL HR
Human Resource Management is part of the organization concerned with the people
dimension. Human resource management has four major functions i.e. Staffing, Training &
Development, Motivation, and Maintenance. As we discussed earlier that PTCL has a well-
established Human Resource Department but still there is a need to overcome on some
weaknesses which PTCL HR department exist, as following:

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 The Human Resource Department is not up to the mark for the proper appraisal
system of the staff.
 The policies of the company are determined by the board of directors in accordance
with the H.R. Department. However, there are certain policies in which the Human
Resource Department is dependent on the Ministry of IT & T Govt. of Pakistan
 Employees have developed a psychology that promotion criteria & procedures of the
Human Resource Department of the company are not justified.
 The quality of service in areas is much poor hence creating the problems for
customer.

 Human Resource Department is lacking employee training centers. There are only
two Staff colleges. On the other hand, the training opportunity is not provided to all
the staff equally.
 If an employee wants to study during the job, he has to take approval from the Human
Resource Department of the company; there are certain bottle necks for taking such
approval. The management also never encourages employees for enhancing their
qualifications/technical skills.
 The staff did not get any benefit for their higher qualifications in the shape of
promotions or pay increments.
 Proper evaluation of the employees is not in the normal functioning of the company.

 Refreshing courses are on & off, not timely and frequently

9. RECOMMENDATIONS AND CONCLUSION

9.1 RECOMMENDATIONS

Implications of the “Expectancy Theory”

 The managers can correlate the preferred outcomes to the aimed performance
levels.
 The managers must ensure that the employees can achieve the aimed performance
levels.
 The deserving employees must be rewarded for their exceptional performance.

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 The reward system must be fair and just in an organization.
 Organizations must design interesting, dynamic and challenging jobs.
 The employee’s motivation level should be continually assessed through various
techniques such as questionnaire, personal interviews, etc.
On the other hand, this theory is also applied to identify the variables that motivate
individual employees in the organization. Specifically, in case of recruitment and selection
of employees, this theory helps in determining the motivators that influence people to join
an organization based on needs, goals and past experiences. Other recommendations are as
following;

 The Human Resources should take less time in recruitment and training the staff.

 Highly qualified & trained staff may be deputed in HR department.

 Refreshing courses should be adequate and more frequent during the year.

 The promotional criteria by the Human Resource Department should be defined and
be as per rules.
 More training centers should be established. If there is lack of resources, it is difficult,
the training centers of the other organizations in the same capacity can be utilized by
determining the terms and conditions.
 During the training by Human Resource Department the ethical values should be
more emphasized.
 The proper and competitive evaluation of the methods and procedures adopted by
other competitors will enhance the performance of Human Resource Department.
 This is the era of Information Technology. The functions and procedures of the
company should be converted from manual to the automatic. It will enhance the
performance & accuracy of the Human Resource Department and ultimately of the
company. Human Resource Department should allocate resources for this purpose.
 Human Resource Department may advice and train employees for one window
operation in order to reduce the time and conserve the resources.
 Agents for the promotion of the company policies and to facilitate the customers by
the Human Resource Department may be appointed with proper check and balance
system.

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 Pay packages may be revised in the light of profit earned by the organization.

9.2 CONCLUSION
No doubt PTCL is enjoying monopoly but the time is come when competition will force
company to change its policies to become favorite telecom service provider in the market &
keep its current place & customer base. The actual working substances are the human beings.
It goes without saying that Human resources are the most important in the organization and
so does the Human Resource Department. It integrates all the activities and functions of the
company like job analysis, recruitment, staffing, training, designing compensation package,
employee’s appraisal system. Human Resource Department plays the key role in the hiring,
retention, motivation and promotion of the employees. Actually it assigns the specified duties
to the specified persons in this age of specialization. Human Resource manager should be
well versed and confident in his field. He should be humane, well natured and have go face
reading capabilities. All this ensures his success. He should be of the notion “victory is not
everything, but the way of fighting is”.

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