INTRODUCTION TO MANAGEMENT

(MANAGERS) 1

A Management Project On
Virtual Telecommunication Corporation
(Virtualfone)

Virtualfone Teloecom
Leaders

Presented to:

MR.ABDUL BASIT SAHIB

Presented by:
 ALTAF HUSSAIN
 AASIA BIBI
 ANILA IRUM
 MUHAMMAD AYAZ
 SULTAN ROOM
 WASIM ARIF

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 INTRODUCTION TO MANAGEMENT
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TABLE OF CONTENTS

A MANAGEMENT PROJECT ON ................................................................................1

VIRTUAL TELECOMMUNICATION CORPORATION...........................................1
(VIRTUALFONE).............................................................................................................1
PRESENTED TO:..............................................................................................................1
PRESENTED BY:..............................................................................................................1
DISTRIBUTION OF WORK:......................................................................................................10
ORGANIZATIONAL CHART:....................................................................................................10
ORGANIZATIONAL CHART....................................................................................................11
TYPE OF STRUCTURE...........................................................................................................12
VIRTUALFONE LOGO AND SLOGAN:.......................................................................................13
STRATEGY SELECTION:........................................................................................................13
OUR FIRST TARGET TO SET OUR BUSINESS IN THE FOLLOWING CITIES OF PAKISTAN. ......................14
INFRASTRUCTURE....................................................................................................17
FINANCE......................................................................................................................17
TIME..............................................................................................................................17
INFORMATION............................................................................................................17
HUMAN RESOURCES................................................................................................17
SWOT ANALYSIS:............................................................................................................20
INTERNAL FACTORS:...........................................................................................................21
EXTERNAL FACTORS:..........................................................................................................23
THIS PROJECT IS ABOUT THE NEW ORGANIZATION, WHICH WE
LAUNCH IN THE MARKET. WE SELECT THE FIELD FOR OUR PROJECT IS
TELECOMMUNICATION. WE LAUNCH THE NEW CORPORATION NAMED
“VIRTUAL TELECOMMUNICATION CORPORATION” (VIRTUALFONE). IN
THIS PROJECT WE MENTION THE HIERARCHY, POLICES, SWOT
ANALYSIS, AND ORGANIZATIONAL STRUCTURE RELATED TO OUR
FINAL REPORT. WE ALSO MENTION THE MAP OF “PAKISTAN” TO SHOW
THE CITIES IN WHICH WE WANT TO START OUR BUSINESS. ...................26

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T
his project of Principles of Management Comprises of Planning,
Organizing, Organizational Culture and Environment and Leading
Strategies of any Organization. The Organization, which we
selected for launching, for this purpose, is Virtualfone.

The reason for choosing this organization for our project is to capture all
the telecommunication companies operating in the world. Today is the
modern era and the most common and important thing is phone, means
the way of telecommunication. We want to launch this to provide better and
cheaper way of communication.

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B
Y the grace of God and the utmost efforts of our group members, i.e.
MUHAMMAD RAZA WAHEED, M. KASHIF SAGHIR, TAYYAB IQBAL AWAN,
RANA INAM, & ADNAN DURRANI, we are able to accomplish our project
well in time. At this moment we must pay special thanks to our devoted
teacher MR ANSIR ALI RAJPUT for his cooperation and guidance that
made us, accomplish our project.

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 INTRODUCTION TO MANAGEMENT
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VISION OF THE ORGANIZATION

The vision of our organization is to

capture all the telecommunication
organization performing function in
the world.

MISSION OF OUR ORGANIZATION

Our mission is to set our network in

Pakistan in less then 10 years.

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PLANS OF THE ORGANIZATION

3 Years plan

In our three years plan we set the target to spread our net work almost in
20 cities.

5 Years plan

In our 5 years plan we cover the major areas of Pakistan, almost 50%
area.

10 Years plan

Our 10 Years plan is to set our net work in all Pakistan.

20 Years plan

In our 20 years plan we have to capture the telecommunication of Middle

East countries.

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Organization’s structure, in the simplest words, is an organization’s

framework as expressed by its degree of complexity, formalization and
centralization. Virtualfone like any other organization has formed its
structure compatible with the nature of work and its objectives.

Distribution of work:
Dividing the work through the functional departments does the work at
Virtualfone. There are marketing, finance, and technical and administration
departments as traditional departments. Apart from this the organization
has information systems and customer care departments, thus enabling it
to comply with the modern organizations’ survival requirements.
The idea of distribution of work is to group the individuals according to their
expertise and also on the basis of products and services offered by Virtual
Telecommunication Corporation.

Organizational chart:
An organizational chart shows the complete picture of the hierarchy of
authority in the organization. The Virtualfone has the organizational chart
based on its functional departments.
The organizational chart of Virtual Telecommunication Corporation is
drawn on the Next page. The organization has Chief Executive as the head
of the organization. Then there are six General Managers working as
functional heads. The organization has three Business Unit Managers, one
each for, northern region, central region and southern region. These
Business Unit Managers then handle the actual middle level management
and act as the communication bridge between the top management and
the people at the lower end.

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Organizational Chart

Chief Executive

G.M. G.M. G.M. G.M. G.M. G.M.

HR & Admn. Customer Care Finance Marketing Info. System
Technical

Business Unit Business Unit Business Unit

Manager Manager Manager

Section Section Section Head

Section Head Section Head Section Head
Sales
Head Head Customer Care Sales Customer Care

1. Corporate 1. Corporate 1. Corporate

Sales. Sales. Sales.

1. Front end 1. Front end 1. Front end

care. care. care.

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Type of Structure
The structure of an organization may be either centralized or decentralized. The
organization can be mechanistic or organic in nature or it can be a matrix one.
Also the organization can be a mix of all these.

Centralized or Decentralized:
In a centralized organization, the decision-making is concentrated at the
top level. Problems flow up to the senior executives, who decide what
should be done. In a decentralized organization, the decision-making is
delegated to lower levels of management.

Virtual Telecommunication Corporation, (Virtualfone) is a mix of centralized

and decentralized structure. Normally the decision at the finance and
technical departments, on which the organization’s operation heavily
depends, is done at the top level. But in the departments of marketing and
customer care where quick decision-making is must, the decision is taken
at the lower management level, thereby decentralization occurs.

Mechanistic or Organic:
An organization whose structure is high in complexity, formalization and
centralization is a mechanistic organization. In contrast, an organization
that is low in complexity, formalization and centralization is an organic
organization.

VTC being a company of high customer interface is more inclined towards

low formalization, informal communication and collaborative efforts. Thus it
will not be wrong if this organization is regarded as an Organic
organization. VTC is working with highly adaptive structure. It is flexible
and it is the need of the nature of the business for VTC to be so, otherwise
it would not be able to meet the wants and the requirements of the
customer. VTC’s business of providing wireless communication facility to
its customers involves unstructured problems in technical as well as in
operational activities. Only through few formal rules and little direct
supervision these problems can be solved immediately without any delays
in dealing with customer complaints.

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Virtualfone Logo and Slogan:

The logo of Virtualfone is given below:

Virtualfone Teloecom
Leaders

Strategy Selection:
This section basically concerns the strategy that Virtualfone has been
proposed to adopt in marketing plan. To have a better idea of which
strategy is selected we have shown all the major organizational strategies
available to Virtualfone and then expand on the ones that have been
selected. The four major strategies of Virtualfone.

Markets

Old New
P
R Old Market Market
O Penetration Development
D
U
C Product
New Diversification
T Development
S

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From the above diagram we can see that Virtualfone had the opportunity of
adopting any of the 4 strategies i.e. getting new or existing products to be
offered in the existing or new markets or offering new or existing products
to the new and existing markets.

Our first target to set our business in the following cities of

Pakistan.

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RULES OF THE ORGANIZATION

1. No employee will be allowed to have advance booking of the connection.

2. Timining will be from 8:oo to 4:00PM. With half an hour lunch break from 1:00
to1: 30PM.

3. Dress code mendory for the top management.

4. Complaints office will be setup for the employee of the company.

5. Property of the company will not be used for personal means; in case there is an
emergency then can be used.

6. Time should be strictly followed.

7. No body will allow releasing the secret of the business.

8. No smoking inside the company.

9. The entire department will have to submit the weekly report to the officer
concerned, and finally to the CEO at the end of the each month.

10. Every six months the G.M and CEO along with the department heads will conduct
a meeting to find out the performance of the company.

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The polices for virtual telecommunication are as follows

INFRASTRUCTURE
FINANCE
TIME
INFORMATION
HUMAN RESOURCES

INFRASTURUCTURE:

 It is the policy to provide delivery, public administration, and

communication to the worker.
 It is the policy to defining the management duties and
responsibilities.
 It is the policy to minimizing liabilities to customer and shareholders.
 It is the policy to development of new system.
 It is the policy to retaining confidential and proprietary information.
 There will be Card readers installed on the of each department, so
that only the authorized person gets into its department.

Finance:

 To maintain a record of trust.

 To provide certified financial statement as required.
 Maintain the audit of financial statement as required.
 Cash must issue with proper authorization.
 Financial record will be proper.

TIME:

 Performance report must be given at the end of the 15 days.

 Make a daily timetable as well as monthly timetable.
 Goals are of the long-term duration.
 Office time will be 8:00 A.M. to 4 P.M.
 If time change then it the on the basis of labors force.

INFORMATION:

 Information will be secret.

 Information will be provider by the board of director.

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 Information will be given to all the employees.

 Information will be send to the shareholders.
 Information will be supply to the supplier.

HUMAN RESOURSES:

 Guideline and goal is set for every employee.

 Positive working atmosphere is provided.
 Held the annual discussion between the managers and employee.
 Training education for employees.
 Give the opportunity for career development.

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SWOT Analysis:
SWOT analysis is a tool for auditing an organization and its environment.
Simply “Analyzing one’s strengths, weaknesses, opportunities and threats
and trying to use them to the best of their advantage is SWOT analysis”. It
is the first stage of planning and helps marketers to focus on key issues.
SWOT stands for strengths, weaknesses, opportunities, and threats.
Strengths and weaknesses are internal factors. Opportunities and threats
are external factors.
To view the accurate picture of the company in accordance with this
marketing plan we must first conduct a situational analysis. So that we can
know the areas of performance in which Virtualfone can excel and the
areas in which Virtualfone may face difficulty from its competitors, as they
are more advanced and developed in those areas. Also we must analyze
the threats and weaknesses that Virtualfone may face from the dynamic
environment of the cellular telecommunication sector. Along with this we
have also performed an analysis of the threats and opportunities
Virtualfone will be facing from the general environment.
Once Virtualfone had done the situational analysis they were able to focus
on the Following Issues.

 Negative Perception of customers.

 Expensive packages offered by existing enterprises.
 Potential target market of masses
 Extensive advertising required capturing the target market.
 Breaking mental barriers to change trends.

Gathering information is perhaps one of the most important steps in a

marketing research plan. While gathering information a number of points
need to be considered.
a) Data should be precise
b) It should be relevant
c) It should be authentic.

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The SWOT analysis of Virtualfone is given below.

Internal Factors:

Strengths:
Virtualfone has the following strengths:

1. Virtual Telecommunication Corporation is a 100% public

owned Corporation. In which 50% is held by board of
directors and 50% by public, which it Finances its research in
finding new innovative breakthrough technology. It was one
of the pioneers to introduce
2. The Organizations main strength is that they have prestige to
its customers. It’s a totally customer focused organization.
3. Virtualfone is always a niche ahead of its rivals /competitors
4. The quality of service is improving day by day. It has a well-
trained Workforce. Virtualfone has a very qualified base of
employees who are skilled in their areas of work and have
proved their competence by achieving the targeted base of
350,00 customers within 4 months.
5. The research department is well equipped and has highly
skilled researchers.

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6. It has an excellent promotion department with an alliance with
best ad company in the country.
7. The company has targeted the class of customers that was
previously being neglected by other cellular operators within
the country. Therefore it has been able to develop a niche of
low-income mobile phone users, which in actuality is a very
large part of the market and a niche bigger than the present
customer base of the mobile industry of Pakistan.
8. Virtualfone is offering its products and services at a price that
is making it difficult for other existing cellular operators to
offer. Thus it has the strength of having the lowest prices
being offered in the market.
9. Virtualfone has the availability of large financial resources,
the only telecommunications operator within the country.
Therefore it can easily spend large amounts of money on
advertising and promotion, sponsoring events etc. it also has
sufficient finances to be able to continue operations even
though it has still not broken even and may not be able to do
so for another year.
10. Another strength of Virtualfone is that it has adopted product
innovation by providing features such as WAP technology
and Web SMS. Having innovation in turn leads to Virtualfone
leading its competitors through innovation and becoming a
leader in those areas, which are new to the market and
industry.
11. Virtualfone is also well insulated from the competitive
pressures that it faces.
12. When Virtualfone entered the market the market leader at
that time was facing network problems, which were in turn
resulting in customer dissatisfaction. Therefore, from the start
Virtualfone was looked upon as the alternate mobile service
with no network problems. This resulted in a good image of
Virtualfone from the start.

Weaknesses:
1. Well-established competitors already exist in the industry.
These companies have the advantage of operating for at least
the past 5 years, therefore having greater experience, a
certain number of loyal customers and a well-set image.
2. Virtualfone has only 16% of the customers from the whole
market of mobile phone users. Therefore when customers
look at the other services that Virtualfone mobiles offer (such
as SMS) they can use these services with fewer people. “
People don’t have Virtualfone. All my friends have Mobilink
and I cant SMS them from Virtualfone” are the remarks of a
mobile phone services customer.

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 INTRODUCTION TO MANAGEMENT
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3. Being a new entrant in the industry, Virtualfone has not
launched itself in many cities and therefore lacks coverage in
areas where its competitors are present. Therefore
competitors have already captured the customers of these
areas.
4. As it is new company there is a weakness of the change of the
government if it is changes there is a loss of the new company
because they have to increase the tax rates and this is not
favor of this as compare to other companies.
5. in remote areas there is another weakness that they have no
better ways to communicate to the urban areas this is a big
hurdle government have to make a plan to gives the services
to these people which they have not.

External Factors:
Opportunities:

1. Improvement in technology has enabled Virtualfone to provide

quality services.
2. Consumers attitude towards the mobile services have a positive
impact on the company, as they demand quality services from
Virtualfone.
3. There are very few competitors, in reality only one i.e. Mobilink, Insta
and Paktel and none of them is offering such services as Virtualfone
is providing to its customers.
4. Virtualfone can become a market leader in a very short time period.
5. Virtualfone can enter areas in which there is little or no development
and become a leader through providing innovation and entering
these areas before its competitors.
6. Another opportunity is that the customer base of the entire industry
is low compared to the total population? Virtualfone therefore has
the opportunity of being able to capture these potential customers
who have not been targeted as yet by its competitors.
7. Virtualfone has already started the integration of cellular technology
with Information technology by providing WAP. However none of its
competitors at present are targeting this area and giving Virtualfone
the opportunity of becoming a leader in this area.

Threats:
1. The biggest threat that Virtualfone faces is that new competitors
entering the telecommunication industry accompanied by new
competitors in the cellular industry of Pakistan.

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2. There are several Govt. regulations and laws that the company has
to consider and abide by, which sometimes may lead to delays and
inconvenience.
3. There are competitors that are already established and their
coverage area is also greater than Virtualfone.
4. The unstable economic conditions create problems as well as the
company’s investment decisions are affected.
5. The political instability and changing Governments make it difficult to
comply with the changing Govt. Policies.
6. Virtualfone faces consistent and intense competition from its
competitors through innovation and price along with the variety of
packages and services being offered. This results in a continuous
threat of the competitors grasping market share from Virtualfone.
7. Increased customer awareness has made it imperative for the
company to maintain quality of service otherwise the company can
lose its customers.

From the above analysis we can clearly see the present situation that
Virtualfone faces. We will be using this as our guideline in developing the
marketing plan for the selection of business and operational strategies.
The Virtualfone can be even more effective if it increases its coverage
area. Virtualfone must try to adopt as many opportunities available as it
can. It also has to strengthen its strengths and overcome its weaknesses.

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This project is about the new organization, which we launch in the

market. We select the field for our project is telecommunication.
We launch the new corporation named “Virtual
telecommunication corporation” (Virtualfone). In this project we
mention the hierarchy, polices, SWOT analysis, and
organizational structure related to our final report. We also
mention the map of “Pakistan” to show the cities in which we
want to start our business.

____________________________________________________

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