Strategic management analyses with Mobitel

1
Executive summary

The management report was exhibited the strategic management. In generally every organization
has the strategic plan for their business performances. Due to the strategic management concept,
the Sri Lanka Telecom Mobitel was selected to interrelate to in this topic. Mobitel is the fully
owned by Sri Lanka Telecom. In 1993 Mobitel was formed the second mobile telephone supplier
in the market of Sri Lankan. The slogan of the company is "We Care Always". Mobitel is
reflected to be the country’s greatest energetic mobile telephone operator and is identified the
National mobile service provider in Sri Lanka.
When assessing the technology which usually needs the innovation. According the new
technology arrive in Sri Lanka, the telecom industry is also changing. Further demand is also
changing due to the new technology arrival.
There is a critical change occurred due to the technological change. This concept was elaborated
in the report. There are many products introducing according the demand changes. There are
benefits and the cultural influences are happening to the demand changes. These were analyzed
in the report.

The change management effectiveness and the recommendation were evaluated in the report.
Finally, schools of strategic management evaluated in the report.

Table of Contents

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1.0 Introduction................................................................................................................................3

1.1 Mobitel...................................................................................................................................3

1.2 Critical drivers causing demand change in SLT....................................................................4

2. Early signs of demand change, and critical drivers of demand change.......................................7

2.1 Demand change......................................................................................................................7

3. Organization responds to benefit from the demand change........................................................9

3.1 Offering the innovative products...........................................................................................9

3.2 Distribution channels as unique.............................................................................................9

3.3 Perceiving our Brand...........................................................................................................10

3.4 Human Resource Management............................................................................................11

4. Organization’s culture influenced the change management process.........................................12

5. Change management exercise and provide recommendations for a better change management
plan................................................................................................................................................14

5.1 Changes in systems and procedures.....................................................................................14

5.2 Development in the field......................................................................................................15

5.3 Trend....................................................................................................................................15

6. Schools of thought on strategic management............................................................................16

6.1 Positioning school................................................................................................................16

6.2 Entrepreneurial school.........................................................................................................17

6.3 Cognitive School..................................................................................................................18

6.4 Learning school....................................................................................................................19

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Conclusion.....................................................................................................................................20

References......................................................................................................................................21

Web................................................................................................................................................22

Figure 1............................................................................................................................................6

Figure 2............................................................................................................................................7

Figure 3..........................................................................................................................................14

Figure 4..........................................................................................................................................18

Figure 5..........................................................................................................................................19

Figure 6..........................................................................................................................................20

1.0 Introduction

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The management report evaluates the strategic management features and these will related to the
Sri Lanka Telecom, Mobitel. Strategic aspects are applicable to the Mobitel telecom. Due to the
technological trend and the innovation the demand of the products are also changing and create
the new trend of their business.
Demand changes drivers will evaluate in the management report. Seeing the past performance of
Mobitel, when start the time they gave only the mobile and land line facilities to the customers.
After passing the few years they have introduced the net facilities, data downloading, roaming,
etc. The demand changes were occurred in the Mobitel and also there are many people using the
Mobitel connection.
Due to the demand changes there are many benefits get through that. In this concept will
evaluate in the report. Cultural influences and the process of the change create the strategic
aspects; it will exhibit in the report. At the end change management and the recommendation
will critically exhibit in the report and also schools strategic management will exhibit in the
management report.

1.1 Mobitel
Sri Lanka Telecom Mobitel Private Limited reached the Mobile Telecommunication market in
Sri Lanka as the third mobile operator in 1993 as a joint venture among Sri Lanka Telecom and
Telstra, Australia. The joint venture of Telecom Sri Lanka and Telstra was running till October
2002 when Sri Lanka Telecom learned Telstra’s stake in the company. The Mobitel has run the
Sri Lankan mobile market in proposing innovative mobile products and services since the launch
of technology in 2004. It was the first to launch 3G services positively in the market; it was
among the first operator to use HSDPA, a higher speed feature of 3G network in 2007.
So, Mobitel, which founded operations in 1993, has made it 20 years of being Sri Lanka’s
National Mobile Service Provider.
There are many product ranges which are promoted and currently as existing products:
• Prepaid plans
• Post-paid plans
• Broadband plans
• Blackberry plans

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• International Direct Dialling
• Roaming plans
• Value Added Services (VAS)
• Paid services (e.g. E-channelling, Movie/Railway ticketing)

Giving to the development there is a quick growth in practice of mobiles in varied kind of
features, internet, and data services. With that increasing typically to the internet enable services
in the mass market, SME and business segments can be achieved. And the customer base will
increase rapidly (Bisen, and Sachin, 2009).

1.2 Critical drivers causing demand change in SLT

Strategic management contains of the study, decisions, and activities an organization starts in
order to make and sustain competitive advantages. The strategic management of an organization
involves three continuing processes: analysis, decisions, and actions. Strategic management is
focused with the study of strategic goals (vision, mission, and strategic objectives) along with the
analysis of the internal and external environment of the organization (Dess, Gregory, Lumpkin
and Marilyn, 2005).
The below figure evaluate the strategic characteristics.
Uncertainty
Resources &
Competencies
Operational
decisions
Strategy
Competitor
advantage Change

Scope of
activities

Figure 1: Strategic characteristics

Figure 1 Long term
direction
Source: Lecture Note, (2014)
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These characters are making the scope and the strategy direction of the organization. In short, the
organizational change process starts, goes through a series of steps, achieves an outcome, and
then starts over again. It is a business process that produces the answers for which change
management activities are required that will result in an improvement to the business.

Figure 2: Organizational change process

Figure 2

Source: Organizational change process, (2014)

Considering the demand change of Mobitel, the operation was started in 1993. After passing the
years Mobitel has launched its complete 2.5G GSM network that is EDGE/GPRS facilitated and
intended to operate on twin band. Taking effectively phased out its AMPS/DAMPS network, in
December 2006, the Company launched its ‘super 3.5G’ network in December 2007.
Investments dedicated to date in its 3.5G/2.5G networks and service contribution total over USD
200 million and are set to rise its current 1000+ base stations to more than 1400 base stations by
the end of the first quarter 2008 (Operation review Mobitel, 2007).

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Due to the demand changes Mobitel sustained with its strategy which is situated around value
innovation and customer centricity decisively trusting that, it can serve well, delivery systems,
services, product portfolio and value added services, with sharp acumen regarding customer
needs and interests.

The strategic direction commanded the Company to follow an violent network rollout with the
dual objects of presenting the best ‘super-3.5G’ service ever practiced, not only in Sri Lanka but
also in the entire of South Asia and enhancing GSM coverage and volume. Further it supported
the Company to form a strong brand image, energetic and happening, with better visibility at
strategic locations, leveraging on the achievement of its memorable parent, SLT (Operation
review Mobitel, 2007).

Technology creates the innovation in every business. Changing technology create the benefits of
the organization. Changing technology is also applicable in the Mobitel. Because introducing the
new technology create the demand of the products. According the demand there are different
kind of services and products introducing the market.

The demand creates through the government influences. Sri Lankan government creates the
changes and modernizes in the country continuing g process. Sri Lankan government is directly
influence in demand. Government introduces the tax for new tariff, imported products and other
products which create the demand of the products

As mentioned the above demand which create the changes of Sri Lanka Telecom Mobitel.

2. Early signs of demand change, and critical drivers of demand change

Change management has been defined as ‘the process of constantly repeating an organization’s
structure, direction, and competences to help the ever-changing requirements of internal and
external customers’ (Moran and Brightman, 2001: 111).

According to Burnes (2004) change is an ever-present aspect of organizational life, both at an

operational and strategic level. So, there should be no doubt concerning the significance to every
organization of its capability to classify where it requirements to be in the future, and how to
achieve the changes obligatory getting there. Therefore, organizational change cannot be
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separated from organizational strategy, or vice versa (Burnes, 2004; Rieley and Clarkson,2001).
Due to the significance of organizational change, its management is flattering a highly obligatory
managerial skill (Senior, 2002). Graetz (2000: 550) goes as far as portentous ‘Against a backdrop
of increasing globalization.

The Mobitel telecom has established substantial attention in academia; actual operations of the
method in real world settings are still imperfect.

2.1 Demand change

Last two decade’s telecom delivered essential telecommunication services to customer.

According the technological development, the organization’s customer demand and needs are
also changing. Therefore Sri Lanka Telekom Mobitel want to change based on its demand. So
the company has to assess the market position and update to the division. This is the early
stage on demand changes of Mobitel.

The demand changes give the positive and the negative aspect of the organization. There are
several early sign designates that customer transfers to new trend or customers expect the new
thing from organization typically. There are following aspects are early signs of demand
changes such as

 Changes in political
 Social, environment and cultural changes
 Innovative technology introduce the market place
 Introduce the competitors product in the market

As mentioned the symptoms are demand changes of the early sign of the organization. Merely
organization cannot remain with same product and similar substantial. A change in the
technology and the new technology arrivals is also creating the demand changes. Technology
changes and update or enter new technology means that is the best early sign in the demand
change.
In the Mobitel, the change management creates the organization into new method, then the
organization will certainly include or mark from change management then the organization

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structure and cultures change from episodic to period. This is essential and anybody cannot
descent or change customer mind.

In generally environmental, social and cultural changes are the easy method to appraise the
demand change of the organization. Due to these changes the company marketing division can
simply recognized market changes and informed to company. After that research and
development of the organization appraise the market to deliver current market sign to the
management (Stauffer, 2003).

Process management is another important factor of the demand changes in the organization.
The process management change is required to each organization. Mobitel is under the
communication classification and agrees the change in its activity. There are several process
wants to change. Fundamentally the change management under the diverse techniques one
based on apprise among current product and moderate product with customers and particularly
new product good also be want to include under the process management (Burnes, 2004).

There are several demand changes to fixed telecom infrastructure and that flexible in each
change management. The change management process of the organization requires the strategies
that are elaborate data center and technology migration. Mobitel management stage mechanize
the process for adds, moves, differences, and removes (MACDs), making change management
prepared and reliable. Mobitel has developed process that eliminates the normal change-induced
confusion such as service shut-offs, late fees incorrect inventory, and sustained expenses for
worthless services (Sri Lanka Telecom Annual Report, 2013).

3. Organization responds to benefit from the demand change

Effective change management helps a charming change from the old to the new though
keeping morale, productivity, and even company image. In order to establish in this concept,
there are benefits getting through the demand changes.

3.1 Offering the innovative products

Due to the demand change there is a value innovation occurred in the Mobitel. They shortened
the package to a level previously unidentified to the customer. The package obtainable calls at
Rs. 5/- per minute regardless of the time of day or whatsoever number they named; be it mobile
10
or fixed line. Customers could call all 5.8 million phones in the country for the same price. There
were no concealed duties by way of daily rentals or any other costs (Business review Mobitel,
2006).

3.2 Distribution channels as unique

Each citizen of this country is a prospective customer, irrespective of where they live or how
much they earn. The general feature that ties them together is the house be it a tiny cabin in the
remotest village or an extensive mansion in the heart of the city. And one person dependably
extents every one of these houses and appreciates a level of trust like no other. That is the
postman. Once again in the essence of value innovation, they came to a revolutionary agreement
with Sri Lanka Post. The much precious and reliable postman now distributes pre-paid cards to
every nook and corner of the country. They have already instigated co-branding with Sri Lanka
Post in the post offices. They propose bringing more value to customers over this alliance in the
future to the point of even accepting payments for post-paid services at their vast island-wide
network, which has in excess of 500 post offices and over 3,000 sub/agent post offices
(Operation review Mobitel, 2007).

Another benefit, innovation of distribution is their tie up with the vast network of Singer Mega
Stores. They plan to reinforce this affiliation as well and spread their customer care points to
cover all 250 Singer outlets in the country. They also plan to create handsets more reasonable
through Singer's popular hire purchase systems (Business review Mobitel, 2006).

3.3 Perceiving our Brand

Marketing research surveys revealed that Mobitel's brand image was covering the competition.
Further, they found that Mobitel's relationship with their parent company, Sri Lanka Telecom
Mobitel was not broadly known. The latter has been corrected through their visual branding as
well as joint marketing efforts. And the former issue has been virtually twisted on its head
succeeding the achievement of their `Smart 5' package in the market. Modern surveys attest to
the fact that the Mobitel brand now commends itself to a broader population counting the 6
million youth of the country (Business review Mobitel, 2006).

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The Mobitel is having an embedded position as the `National' mobile service provider. This
position has been additional strengthened by recent marketing tie ups with Sri Lanka Post and
Singer (Sri Lanka) Limited.

In 2006, they made significant inroads into the pre-paid market. In 2007, they will focus
violently both the pre-paid and post-paid services. Added services based on 3G technology will
play a key part in creating this happen. The price of 3G handsets keeps dropping and we
envisage it reaching a price point below Rs. 20,000/- per handset when we commercially launch
our 3G services. This will complement the mass appeal we intend creating with the deployment
of 3G technology, which will enable us to offer customers a whole new world of advanced and
sophisticated communications. As a result, our mobile services will be able to support video
telephony, high speed internet, video streaming, mobile TV, music streaming, on-line music and
other non-voice services (Operation review Mobitel, 2007).

Leveraging the strengths of our parent SLT and offering services together will give a great boost
to their quest to make greater in-roads into the corporate sector.

They already have well-coordinated account management teams which is further reinforced by
the setting up of customer solutions teams. In the spirit of value innovation, they will be able to
go into our customers' accounts and classify the problems they wished they had solutions for.

3.4 Human Resource Management

Mobitel envisages flattering the leader in the Sri Lankan mobile industry by making and bringing
value to the country's mobile subscribers. They have also set out to develop the favored mobile
brand thus inspiring people's lives whoever they are, wherever they are and whatever they do.
Their focus will revolve around customer centricity, which exceeds mere customer care.

The Company's HR strategies have been created to build an organization, which makes and
provides value to their customers through numerous innovative solutions.

HR shows a crucial role in certifying value delivery and securing competitive advantage for the
business by obtaining the right competencies and talent. Enticing new staff to meet the

12
challenges of the quicker expansion programme and introduction of new technology particularly
in regard to exclusive techno skills was never an effort. They were able to entice some of the best
within and outside the industry with excellent academic and professional qualifications at entry
levels (Senior, 2002).

These are the benefits gained from the demand changes.

4. Organization’s culture influenced the change management process

Organizational culture is the fundamental design of mutual assumptions, beliefs, and values
deliberated to be the right method of thinking about and performing on problems and chances
facing the organization. It describes what is significant and insignificant in the company.

13
Figure 3: Elements of organizational culture

Figure 3

Source: Luechauer and Shulman, (December 1998)

As mentioned the above figure illustrates the elements of the organizational culture. The cultural
elements are also helping to the change management in the organization. For example if the
company wishes to change their process, they require culture for the major changes of the
company. Corporate culture normally doesn’t acquire the devotion of decision-making propose it
justify.

When assessing the Mobitel culture, there are challenges consisting of their culture. When
starting the period of 1993, they have used the traditional method for their performances. But,
seeing the current performances it has changes according the new trend and the organization
culture. For example present performances of Mobitel focuses on the strategy for 'value
innovation', the Mobitel customer continually wins. Mobitel trusts that technology for its own
sake is pointless (Mobitel Overview, About Mobitel).

Organization culture and change management are interrelating with the organizational
performances. In the organization culture affect the organizational structure. Organization culture
can enable or prevent change in an organization. Firm is effort to change organizational culture.
Because the current culture hinders focuses to the attainment of corporate goals.

14
Internal control of the organization and responsibility to the staff, authority level are majorly
affected on change management. For example id employee transfer to the other department the
authority level is the more critical and creates the new hob team which will affect the
organization culture and also change management (Bush, 1998).

The organization’s external factors affect organization culture. For example Mobitel is getting
the external factors such as government policies and procedures, rules and regulations, social and
the environmental factors which are creating the influences of the organization culture and which
are influences with the change management process of the Mobitel telecom.

The organization culture is based on the vision, mission, objectives and goals. These aspects ate
affecting the change management process of the organization. In generally organization culture if
focusing the long term purpose of the organization, in this scenario create the change
management process of the organization too.

Understanding how to change an organizational culture needs some insight into what makes
culture in the first place and how changing those components may impact significant cultural
development.

5. Change management exercise and provide recommendations for a better change

management plan
Change Management helps to design to support change at all stages of the organization. The
change management supports to the managers to effort organizational change, authorize

15
managers to lead through change, and support employees to direct and respond to change
properly.

Mobitel is typically indicates that several factors which are significant in demand changes such
as innovative technology, competitor activities, customer wish, customer demand that are most
influential demand in change management. Specifically demand will change in specific period
on that state organization also includes to the demand actions.

5.1 Changes in systems and procedures

Changes in systems and the procedures are creating the impact of the changes management of
the organization. Procedures and the systems changes apprise that culture of the organization is
diverse from the others. For example if the organization changes their systems and procedures
will create entire management procedures of the organization. When considering the Mobitel,
there are recommended change management systems and procedures such as change the old
systems to new systems, changing the structure of the organization, recruit the new employees
which are creating the better change management plan of the Sri Lanka Telecom Mobitel
(Ettorre, 1995).

5.2 Development in the field

Change management is the significant factor and there are several functions are occurred
changes in the organization. They are human resources, financial, operational network, quality
and other customer view. Therefore the organization demand changes depend on the above
factors. For example Mobitel if recruit the employees with the IT knowledge person, the
management procedure will also change according the new arrival of the employees, and also it
will create the better change management plan of the organization. There are change
management touches with the two aspects such as innovation of the competitors’ products and
the product innovation both will change the change management with the effective way of the
organization (Operation review Mobitel, 2007).

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5.3 Trend
When seeing the telecommunication industry which is changing according the new trend of the
technology. According the trend of the technology, the organization performance is also
changing. There is online music, video conferencing, voice recorder, roaming which are the
improvements of the organization practice and these are helping to the better change
management plan of the Sri Lanka Telecom Mobitel.

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6. Schools of thought on strategic management

6.1 Positioning school

The Positioning School mainly got from Michael Porter’s two milestone books “Competitive
Strategy” (1980), and “Competitive Advantage” (1985). Once strategy consultant has tacit both
industry and company’s profile, the strategy that essential is but a quick check-box tick away.
The Positioning School revolutionized strategic management by maintaining that creativity was
not compulsory, actually: and that it can be observed “as essentially deductive and deliberate.

Figure 4: The Positioning School’s knowledge

Figure 4

Source: Porter, (1980)

Looking at its interaction network of knowledge’s, the Positioning School is obviously both
consultancy-driven and programmatic: and much like the Design School, it repackages
arbitration as judgment, and bombast as science. In fact, it is hard not to attraction the conclusion
that, for this school, “strategic knowledge” is oxymoronic - all in this diagram is either assumed
or implicit.

18
This is an opinion of knowledge that has no flow, flow, or inside development; has no long-term
value attached to knowledge; and needs being retained alive by experts and consultants. It trusts
on long-term situations of obviousness, has nothing to say about implementation, and needs that
a company and its competitors share a largely similar worldview. This is fundamentally an
ideology produced by consultants, for the benefit of consultants (Mintzberg’s ten schools, 2014).

6.2 Entrepreneurial school

To flesh out his picture of the Entrepreneurial School, Mintzberg appeals on Peter Brook’s
clarification for how the magical of the theatre is shaped through a continuous driving of
practice, performance, and attending. Yet from the visualization of this school’s ideology, it
appears that can better characterize entrepreneurial ideologies as (a) being based on a conflict
worldview, but (crucially) (b) being based on investments into precise indecisions (Mintzberg’s
ten schools, 2014).

Figure 5: The Entrepreneurial School’s knowledge network

Figure 5

Source: Porter, (1985)

19
As tension knowledge networks evolve more by familiarizing their doubts than by assigning new
inevitabilities, it should now be strong why entrepreneurs thrive in inexact times: imaginative by
weighty capital investment in outmoded certainties, they are able to reconfigure their network of
knowledge’s around what they hold most greatly – their uncertainties (Mintzberg’s ten schools,
2014).

6.3 Cognitive School

The Cognitive School is arguably the least-developed of all Mintzberg’s Schools: in several
places it delivers like an arbitrary meeting of fragmentary texts on cognition (though perhaps this
mélange is deliberate). Reading a slight among the lines, the strategic management procedure
implicit in this school is really sensibly clear: the strategist’s social construction of reality
(somehow) yields inputs from the situation, but which are always implicitly one-sided.
“Strategies thus arise as viewpoints - in the method of concepts, schemas, maps, and frames -
that form how people contract with inputs from the environment” (Mintzberg’s ten schools,
2014).

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Figure 6: The Cognitive School’s knowledge network

Figure 6

Source: Porter, (1985)

Though this is conscious both of the social construction of reality (‘active sensing’) and of the
intrinsic ‘distortion’ implicit in knowledge procedures, its strategic “viewpoints” are (despite the
terminology used) less Models than Clarifications - this is because the task of the strategist here
is to reviewer between them as to what action to take.

6.4 Learning school

In the Learning School, find an incremental method - strategy is that thing which r people endure
to grow in reaction to anomalies. Strategy appears to be the whole network of knowledge’s - or,
ideology is strategy. Further, the company is also realized as having no (present-tense) control
over ideology: rather, this is observed as being in the hands of the workers (even if they don’t
actually realize it).

In the network of knowledge’s for this, the (more formalistic) formulation-implementation loop
is changed with a (more interactive and continuous) acting-learning loop. Yet the entire school
remainders silent on how this loop should be skillful - its philosophy is Laurendeau, Paul (1990)
“Theory of Emergence: towards a historical-materialistic method of the history of linguistics
(Joseph and Taylor, 1990).

Conclusion
The report was exhibited the strategic management. Usually every organization has the strategic
plan for their business performances. The Sri Lanka Telecom Mobitel was selected to interrelate
to in this topic. Technology is usually needs the innovation. According the new technology arrive
in Sri Lanka, the telecom industry is also changing. Further demand is also changing due to the
new technology arrival.
There is a critical change occurred due to the technological change. This concept was elaborated
in the report. There are many products introducing according the demand changes. There are

21
benefits and the cultural influences are happening to the demand changes. These were analyzed
in the report. The change management effectiveness and the recommendation were evaluated in
the report. Finally, schools of strategic management evaluated in the report.

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