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Prepared by
Mohamed Saied Abdelmonem 19121629
Means Adib Aziz Abdel Sayed 18122961
Mohamed Roshdy Mohamed 18124332
Ahmed Adel Morsy 18225847
Supervised by:
Dr. Ola Elgeuoshy
March 2021
Contributors:
analysis
Mohamed Saied 19121629 Strategy 37 to 57
Abdelmonem formulation
Summary and
conclusion
Table of Figures:
Table 1: opportunities and threats ................................................................................. 15
Table 2 issuing priority Matrix ........................................................................................ 17
Table 3 key success factors .......................................................................................... 18
Table 4 EFAS ................................................................................................................ 23
Table 5 strengths and weakness ................................................................................... 30
Table 6 orange Egypt value chain ................................................................................. 31
Table 7 VRIO analysis................................................................................................... 34
Table 8 IFAS ................................................................................................................. 36
Table 9 SFAS ................................................................................................................ 40
Table 10 objectives illustration ...................................................................................... 43
Table 11 TOWS............................................................................................................. 44
Table 12 corporate strategies ........................................................................................ 51
Table 13 competitive strategies ..................................................................................... 53
Table 14 competitive tactics .......................................................................................... 53
Table 15 Market development strategy ......................................................................... 55
Table 16 action plan 1 ................................................................................................... 64
Table 17 action plan 2` .................................................................................................. 65
Table 18 action plan 3 ................................................................................................... 66
Table 19 list of controls and measures .......................................................................... 68
Table 20 balance score card ......................................................................................... 71
Table 21 evaluation and control .................................................................................... 72
Introduction:
Communications and information technology industry in Egypt consider as a leading
global outsourcing destination. Egypt takes the lead in MENA region and considered as
14th worldwide.
Egypt's government is working along with telecoms operators to develop Egypt's
telecommunications infrastructure moving forward to better telecommunications quality
service. the sector of information technology and communication has increased to 25%
in 2017 and 2018 because of the wider coverage and enhanced technology used.
Egypt 's Ministry of Communication and Information technology has created the
atmosphere and conditions that allows to this sector to flourish and promotes
competition in broad band, fixed line and mobile telecommunication.
National Telecom Regulatory Authority (NTRA) has granted the Fourth-generation
mobile service license to the four Egyptian telecoms named, Orange, Vodafone, Etisalat
and Telecom Egypt (TE).
Orange Egypt is joint stock corporation previously known as Mobinil. It established
under the Law No. 8 of 1997 "Investment Guarantees and Incentives Law. its executive
regulations” was established on the 4th of March 1998. Orange Egypt is operating
under Francis telecom as in May 2012 Orange acquired about 94% of mobinil shares. in
2016, orange is officially rebranded to orange. In October 14. 2016, orange acquired
4G license with cost 484 million. Orange customer is approximately about 33 million
active subscribers. (Orange Egypt- Shop for Mobile Phones, Lines, Internet Plans,
Apps, Music, 20). )the right to establish fixed land line worth with cost 11.262 million.
This research aims to conduct strategic audit to Orange Egypt for Telecommunications.
The main objectives of this research are to: (1) conduct a literature review for the
strategic audit process and best practices in general and in the organization industry in
specific. (2) Conduct a strategic audit to Orange environmental scanning, strategy
formulation and strategy implementation. (3) conclude the current situation of the
Orange company. (4) recommendation number of suggestions for improving the
strategic profile and performance of Orange company.
To explore the strategic audit of Orange Egypt in depth, number of interviews had been
conducted with some of its employees. This article demonstrates Orange Egypt current
position, external and internal environment scanning, strategy formulation, strategy
implementation and evaluating and control. This article is divided into five chapters.
Chapter one explains current situation. Chapter two explains external and internal
environmental analysis. Chapter three explains strategic formulation. Chapter four
explains strategic implementation. Chapter five explains the evaluation and control of
suggested strategies. Finally, summary and conclusion for this article.
Orange Egypt shows outstanding performance all over Egypt according to NTRA annual
reports. NTRA demonstrates that Orange is the best mobile operator on the internet and
download in the governorate of Delta, Alexandria, and Upper Egypt.
Orange Egypt pumped around 4billion pounds during 2020 in order develop and
upgrade infrastructures all over the country.
In 2017, Orange has increased its capital to 750 million EURO. The newly announced
investment during 2020 demonstrate that total company's investment in Egypt reaches
60 billion. Orange directed 90 % of its investment towards improving the network and
service quality during 2019 and 2020.
During 2020 Orange Egypt has achieved revenue about 3.8 billion in the third half of
2020 compared to 195 billion during 2018 in the same period.
Number of 4 subscribers has increased from 45% to 50 % of the number of users of
data transfer equivalent to 6 million of the fourth-generation mobile network, 70% of
towers is currently use 4G service.
During 2020 Orange Egypt has aligned with Egyptian ministry of telecommunication as
a part of company 's social corporate social responsibility to provide educational data
lines to for free to all Egyptian students to be used during the exams (Editorial, 2021),
(El-Din, 2021).
2. Strategic Posture
2.1: Mission of Orange Egypt:
Accelerate the digital development of the Egyptian society by providing outstanding and
unmatched customer experience and innovation solutions (Orange Egypt- Shop for
Mobile Phones, Lines, Internet Plans, Apps, Music, 2021).
(2) Increasing and developing the applications of using data and 4G services to become
easier to the subscribers.
(3) Increase data transfer services and Orange cash in the Middle East and Africa as it
represents only 10 % of total revenue of the group.
(4) Expanding in fixed line service and provide internet through DSL service with high
quality and strong infrastructures in order to provide best customer experience.
(5) Increase its market share through increase number of its active customers as in
2017 Vodafone takes the lead with 43% followed by Orange with 33.3 % (Orange
Egypt- Shop for Mobile Phones, Lines, Internet Plans, Apps, Music, 2021).
2.3. Strategies:
Orange Egypt’s strategy has remained a simple one:
(1) to be “always in touch to connect what’s essential in your life.”
(2) Created well – equipped streamlined connected services
(3) Virtualizing its network functions by introducing a Telco cloud infrastructure that will
support network functions virtualization across all Networks and service platforms.
(4) Enhancing its marketing strategies to be able to find more competitive offers and
products (Orange Egypt- Shop for Mobile Phones, Lines, Internet Plans, Apps, Music,
2021).
2.4. Policies:
Orange Egypt always seek to promote highest performance of governance's practices.
So, the company has put charters defining the principles, functions and organization of
different corporate bodies. also, policies to grantee healthy work environment along with
protecting the interest of shareholders (Orange Egypt- Shop for Mobile Phones, Lines,
Internet Plans, Apps, Music, 2021).
3: Strategic managers
3.1: Board of director
Orange Egypt board of directors consists of:
(1) Alioune Ndiaye, Chairman, Orange Egypt for Telecommunications S.A.E Atlas
Countries Support Representative Non-Executive Member.
(2) Yasser Shaker: CEO, Orange Egypt for Telecommunications S.A. E
Atlas Countries Support Representative- Executive Member.
(3) Bruno Mettling: Board Member, Orange Egypt for Telecommunications S.A. E
Atlas Countries Support Representative - Non-Executive Member.
(4) Michel Monzani: Board Member, Orange Egypt for Telecommunications S.A. E
Atlas Countries Support Representative - Non-Executive Member
(5) Jerome Henique: Board Member, Orange Egypt for Telecommunications S.A. E
Atlas Countries Support Representative - Non-Executive Member
(6) Ludovic Alain Pech: Board Member, Orange Egypt for Telecommunications S.A. E
Atlas Countries Support Representative- Non-Executive Member
(7) Maï de La Rochefordière: Board Member, Orange Egypt for Telecommunications
S.A.E - Atlas Countries Support Representative - Non-Executive Member
(8) Neveen El Tahri: Independent Board Member, Orange Egypt for
Telecommunications S.A.E- Non-Executive Member.
(9) Hesham Mekawi: Independent Board Member, Orange Egypt for -
Telecommunications S.A.E.
(10) Alaa Fahmy: Independent Board Member (Orange Egypt for Telecommunications
S.A.E - Non-Executive Member).
(Orange Egypt- Shop for Mobile Phones, Lines, Internet Plans, Apps, Music, 2021).
Chapter 2: Environment Scanning
Section one: External Environmental Scanning and Analysis
1. Environment description
Orange Egypt starts working in Egyptian market since 2012. Orange Egypt is
surrounding by many external factors for example the government policies, other
competitors such as Vodafone, Etisalat and WE, and many factors. this factors affected
company progress and create multiple opportunity to take and threats to face , and this
opportunities and threats will be presented as follow:
5-Competitors
Weakness of competitors network would make a good opportunity to take as orange
could easily attracts new potential customer and increase its market share.
Rumors about competitors would weaken the attraction to these companies and grant
orange opportunity to attract this customer and increase its customer base.
6-Skilled labor force
According to increasing the awareness of Egyptian labor force and government effort to
provide skilled labor to the market, orange has the opportunity to attract these labors in
order to enhance and strength its service provided. Also lacking skilled labor force in
other companies would grant orange the advantage.
Opportunities and threats for Orange Egypt are illustrated in the following table:
Table 1: opportunities and threats
First level
2-Technology
3-Economic
4-Ecological
5-Political
3. Issuing Priority Matrix:
Issuing priority matrix is very important tool to categorized and prioritize work informing
time management and decision making, its business analysis tool uses specific criteria
allows individuals and team projects to compare choice in objective way (Rivera, 2021).
(The Action Priority Matrix: Making the Most of Your Opportunities, 2021).
Issuing Priority Matrix for Orange Egypt is illustrated in the following table:
Table 2 issuing priority Matrix
Probability of impact
1-5G 1-reachability
regulation
High 3-Infrastructure
2-Unemployment rate
Low
Comments
Orange top management should focus on new 5G issuance, new cities built by the
government, network infrastructure, unemployment rate, NTRA regulations, GDP
Growth and Entering new players. while Marketing Team should focus on reachability to
all customers, facing the rumors about then company, competitors offer, new
technologies in the market and inflation rate, front line should focus on takes advantage
of high population, search for skilled labor force and help in improve of network.
4. Industry matrix:
Industry matrix is a tool is uses to summarize key success factors of the industry and
giving weight to each factor according to its importance and impact over the company.
also how the competitors would response to this factors where 4 is the average and 5 is
above then average and 3 is below the average (What Is an Industry Matrix, 2021).
Every single company tends to reach to its customers and attracts more potential
customers and gains more market share. (how critical are my critical success factors?
2021), (Fadl, 2021), (Study of Telecom Major Etisalat Egypt Marketing Essay, 2021).
Key success factors for Orange Egypt are illustrated in the following table:
Table 3 key success factors
2-Network
15% 4 .60 3 .45 2 .30 2 .30
quality
3-customer
15% 3 .45 2 .20 2 .30 2 .30
service
4-retail
15% 3 .45 3 .45 2 .30 1 .15
presence
6- Products
and services
10% 3 .30 3 .30 3 .30 3 .30
7- Internet
speed
15% 4 .60 3 .45 3 .30 2 .30
8-Market share
10% 3 .30 4 .40 2 .20 1 .10
Total 100%
3.3 2.75 2.2 2.1
Comments
Generally, telecommunication market in Egypt needs more development as the four
companies are below the average due to many factors related with government
regulation, infrastructure, and unexpected crises like 2 revolutions or Corona Virus.
According to this industry matrix for the four telecommunication companies, the most
four factors that have great impact on the telecommunication market are customer
service quality, retail presence, network quality and internet speed, then come the price
, offers , products and services and brand name in the second place .
According to industry matrix. orange takes the lead in network quality and internet
speed as per NTRA reports the comes Vodafone , Etic and We , orange has the best
network quality for the last year , as NTRA's QoS report for May 2020 set about 26000
kilometers of populated areas , this areas were divided into 81 cities and districts ,
Orange Egypt services approximately 51 cities and districts with quality of data service
speed reaches to 32 Mbps and the closest competitors Vodafone reached average 28
Mbps in 22 cities and district , Orange Egypt provides mobile and data network the
measured and evaluated in international standards , also NTRA has proved that Orange
Egypt shows and outstanding performance all over the Republic provides distinctive
data service in all areas (In-text: (Orange Egypt- Shop for Mobile Phones, Lines,
Internet Plans, Apps, Music, 2021).
"Being the top in data transmission is not easy, and maintaining this status is very
difficult as well. We developed a plan several years ago and this helped us achieve our
objectives in obtaining the 4G license and the new frequencies in addition to making
optimal use of these frequencies and distributing them within Orange's network in a
smart way" (Amiri said ,2020).
Also, according to industry matrix Orange and Vodafone takes the leads in retail
presence as their branches all over the Republic, on the other hand Orange has
advantage of depending on presence of its own branches more than depending on the
other partners while other competitors depend on the presence through other partners
Also, Orange takes the lead according to skilled labor force and quality of customer
service then came in the second place Vodafone, Etisalat, and We
On the other hand, Vodafone takes the lead as Vodafone provides its customer with
competitive offers for example Vodafone takes the lead in offers rate plan that made for
all operators like Flexat then came Etisalat and finally Orange and WE. so, Vodafone
always takes the lead in offers then other competitors follow.
WE telecom Egypt on the other hand has the ability to provide competitive prices as WE
basically follow the Egyptian government, so We has he advantages of government
facilities other than competitors specially in DSL fixed line service.
According to telecommunication market and NTRA Vodafone has the biggest market
share in telecommunication market. on the hand and according to ministry of
telecommunication and information technology Egypt telecom We loses about 100,000
subscribers in October as the number of subscribers decreased from 20 million in
September to 19.9 million in October (Egypt, 2021).
high
products
Vodafon
e
WE Orange
Etis
High low
Network
Quality
Comments
Orange and Vodafone consider as the biggest two companies according to their
network quality and diversity of products and services, the ETIS comes next and comes
the last WE. Orange outperforms over Vodafone in network quality also its expansion
as orange offers speed of internet reaches to 32Mpbs all over 51 cities.
6. External Factor Analysis Summary:
Table 4 EFAS
Opportunities
O14Ivestment 1%
T7: Taxes 1%
development 1%
Sell, distribute, and deal in all kind of computers and laptops, their attachments,
accessories, integral equipment, spare parts and conducting their necessary
maintenance
Establishing an audio, video and written information transfer network and offering value
added services after obtaining a license from the concerned authorities according to the
rules and regulations applied in Egypt
Customer care
Mohamed Eltouny
Technology
Ayman Amiri
Consumer
Ahmed Elabd
Financial
Marwa El ayouti
Information
Abdelfattah Mabrouk
communication
Maha Nagy
Comment:
Orange Egypt organization structure is a source of strength for the company, it
facilitates the decision-making process, and it makes the communication faster between
different departments.
3. Description & analysis of the organizational culture of
Orange Egypt:
Employees in orange Egypt are at the heart of daily operations, Orange think that they
are the ambassadors for the company. The main goal is to nurture their talents and
provide them with a friendly environment.
Orange promise to provide the best work environment for the employees through:
Attracting, developing, and retaining talent.
ies
ry
Procurement
Subcontractors
Outsourcing
Technology
Network maintenance
Quality assurance
Comment:
Orange Egypt is gaining value through its set of activities in order to achieve the
targeted profit margin. These activities are classified into:
(1) Primary activities that include advertising campaigns via TV and social media to
promote orange products and keep customers updated with the latest offers and
services, also the quality assurance department insures the high value and in all
orange shops and stores all over Egypt.
(2) Secondary activities that include best achievers program, orange talents and
employee’s benefits program, these support activities support the primary ones in
the human resources department to develop the talented employee and help
them to achieve value.
Since customers are always looking for values not products, every department in
orange is doing its best to be value oriented in order to achieve the best final
accumulated value to orange customers. Orange value chain is clear to show what are
the primary activities done in the organization and what are the support activities which
are supporting that primary ones in order to archive the corporate goals. The value
chain figure looks like one of Company’s
Comments
Orange HR department responsibility is not just hire and fire; it plays an important role
to redesign the workflow inside the company plus improving the quality of orange
employees, who are the key asset of the company, that’s why for the six year in a row
Orange Egypt is certified as top employer in Egypt and Africa.
Comments
Technology department in Orange affects the performance of the whole company; it’s
like the backbone of the company and should be more integrated with all departments.
It has to give more support to all departments like quick response for network failures
and urgent support for front office employees to maintain the company image and
facilitate the daily work operation.
Comments
Orange has huge sales network which cover all cities inside Egypt, this network include
shops, stores, franchises, boutiques and vans. This network is considered one of
orange strengths in the telecommunication market.
Data solutions
Comments
The main goal of the customer care department is enhancing customer experience,
improve credibility and create customer loyalty plus offering service in a world class
standard which is one of orange strengths.
HR services 5 4 3 4 16/20
Trainings 5 3 4 4 16/20
Comments:
According to VRIO analysis results , Orange Egypt achieved the goal of sustained
competitive advantage and identified all four components of the VRIO framework.
As for consumer communications market, orange products and rate plans match
most of customer needs and categories, in addition to valuable business solutions
offered to small, medium and large corporations. Orange main target is to create
packages to fit all needs.
To maintain large customer base, orange uses of an effective research and market
intelligence system which analyze the market collected data to understand different
customers’ needs and opinions.
Orange Egypt has a vision to be the lead of information, telecommunication and lead
the overall network society and focusing on innovation.
Orange Egypt has a strength points for its communication with its employees and
concentrating on developing their performance by investing in continuous learning
courses, trainings and development sessions.
Orange customers are not only mobile users they also have a wide business with
the fixed line, enterprises connections and international services.
(1-5)
Strengths:
Weaknesses:
W5 Network failure 3% 3 6%
W6 Cell phone towers radiation 1% 4 4%
3% 3 3%
W7 High-cost ADS
Means 3.28
Comments:
1: introduction:
The strategic plan allows an organization to examine its resources and provides a
financial plan. It helps an organization to establish the most appropriate action plan for
increasing profits (Saim, 2019). The first step in forming strategy is to review the
information gathered from completing the external and internal analysis (Clayton, 2019).
After studying the current situation of an organization and analyzing the environment,
the stage of strategy formulation comes.
Strategy formulation is broad plan by which an organization chooses the most
appropriate courses of action to achieve its defined goals (Yodico, 2015). It changes
and grows as the conditions around it change. It is concerned with developing mission,
objectives, strategies, and policies (Wheelen, 2012, p. 913).Not all strategies are
feasible alternatives as, there are infinite number of ways and actions. The most
attractive strategies must be developed.
It is a necessary to modify classic way of strategy, especially in telecommunications
industry, to developed strategy suitable to status quo. The only way for Orange Egypt to
survive and expand in this competitive environment to have an efficient strategy.
Formulation strategies is integrated into three stage:
1) input stage summarizes the input information: external analysis and internal analysis.
2) matching stage focuses on generating alternative and feasible strategies that include
SWOT matrix, TOWS matrix, SFAS matrix, BCG matrix, Grand strategy, and SPACE
matrix.
3) decision stage involves planning matrix (QSPM) (David, 2016).
After doing an analysis of the external and internal environment of Orange company.
The next step is formulation strategies. it comes considering finding fit between
strengths, opportunities, weaknesses, and threats.
External Factors:
Internal Factors:
rate(W)
Comments:
SFAS matrix reduces all factors to manageable number. The observed notes are:
(1) EFAS factors plays more effective role in the impact of Orange Egypt than IFAS
factors.
(2) the highest weighted factors related to EFAS. This indictor means that, highly
changed environmental factors in Egypt are happened.
(3) The total weighted average is 3.45 and it seems good indicator. But it needs
development.
(4) High intense competition in Egyptian telecommunications industry
(5) Orange Egypt needs continuous support in NTRA relations to facilitates 5G
technology introducing.
2. Orange Egypt Mission Review:
Reexamination of orange Egypt current mission should be made. It facilitates decision
making (John, 2018). Orange Egypt mission is to “Accelerate the digital development of
the Egyptian society by providing outstanding and unmatched customer experience and
innovation solutions.”
Comment:
The mission and the vision statement of Orange Egypt are the same. It is better to set
the company’s mission apart from its vision. The mission seems good as, it is short,
concise, and specific. No need to adjust orange Egypt mission. The Mission statement
of Orange Egypt declares the reason for company existence, business target. it
articulates the long-term vision and the position that the company wants to be in the
future.
3. Orange Egypt objectives illustration & Review:
Reexamination of orange Egypt objectives must be made in SMART way. This keeps
people focused on exactly what top management needs from them.
Table 10 objectives illustration
(5) Expanding in fixed line service Number of December Fixed line service
and provide internet through DSL fixed line 2021 needs to be
service with high quality and service. competitive.
strong infrastructure to provide
best customer experience.
(6) making a market plan and Improvement October
changing marketing goals in public 2021
image of the
company
(7) Building strong relationship Facilities in March 2022
with NTRA and the government contracting
with the
government
Improve network coverage to Percentage Nov 2021
facilitate social platform entrance of
subscribers
that use
social
platform
Comment:
In comparison to SMART objectives, these comments explore: (1) Orange objectives
serve as guide to develop Orange Egypt plans. (2) Most of the objectives are
continuous all the time. (3) Some objectives (Orange cash, fixed line service) need to
move quickly due to the rapid changes in the Egyptian environment. (4) no stated
objective was set towards employees participation and human resources development.
Table 11 TOWS
T3. NTRA
O3. Governmental T4. Different tastes
relations
T5. Operating system
O4. Competitors
T6. Inflation rate
O5. Skilled labor force
T7. Taxes
O6. Different culture
T8. Energy cost
O7. 5G technology
T9. Rumors
O8. Growth GDP
T10. Entering of new
O11. Tourism players
S15 First
telecommunications
company in Egypt
Weaknesses: OW Strategies: TW Strategies:
W9 Salaries needed to be
improved
Comments:
TOWS matrix generated alternatives strategies. it develops nine strategies that can be
used for Orange Egypt as a whole. It can be used as corporate and business strategies.
Most of these strategies related to external analysis findings. It indicates the highly
changed environment in the last five years in Egypt.
BCG (Boston Consulting Group) matrix is decision making tool to see the opportunities
of each product in the portfolio (invest, discontinue, develop). It assesses two
dimensions growth rate and the market share (Martin, 2020). Based on this matrix,
Orange Egypt products can be classified as follow:
Figure 3 BCG Matrix
Mobil Orange Cash
network
Home 4G
fixed line
Calling SMS
services Message
-
Video
Business call
lines
Source: https://slide-finder.com/view/CHAPTER-7-Strategy-Formulation.277759.html
2. Business Strategies:
Business strategies improve the competitive position of the organization in certain
industry. it can be 1) competitive strategies 2) cooperative strategies
Comment:
It is better for Orange Egypt to focus on the differentiation focus strategy, especially for
business lines and governmental leaders. Differentiation strategy is difficult to be
achieved due to the intense competition. The first mover for 5G technology will be
differentiated.
Orange Egypt is mixed offensive and defensive tactics according to the market. As
whole, Orange Egypt in the Egyptian market considers offensive and first movers
organization.
New markets
3)Market development 4)Diversification strategy
strategy
(orange triple play internet
(Routers, Orange cash and and 5G)
fixed lines)
Promotion strategy: orange Egypt marketing strategy advertise for products through the
distribution channels to pull customers (pull strategy). The goal of pull strategy is to
make customer actively seek a product. Social media, email marketing and discounts
are methods used for pulling customers. Orange Egypt should use combination of pull
and push strategies.
Pricing strategy: Orange Egypt relies on using low prices to attract many customers due
to intense competition (penetration pricing). The four companies are competing
especially in the prices of the packages. Orange Egypt should pay attention to internet
package. Orange control system is great in its pricing.
3.3 Human resources management strategies:
Human resources management in Orange Egypt is working very well. It is hiring the
best employees. There are programs for training and development for employees.
Customers services employees are very responsive. Orange Egypt salaries needed to
be adjusted to be equal with the competing organizations salaries. Large numbers of
employee need new trends in HRM as diverse work force. Improved employee
engagement, wider range of skills, increased profits and increased productivity are
benefits of diverse work force (Hamdy, 2019).
3.4. Financial strategy:
Orange Egypt is moving towards profitability because it achieved revenues of 3.8 billion
during 3Rd 2019. par value of the stock is 10 Egyptian pounds. The authorized capital
increased from 1.6 billion to 2 billion. Earnings per share is 0.04 Egyptian pounds.
Dividends receives his share regularly. Corona and the rapid change caused an
increase in profits. Online payment is a trend in the Egyptian market needs investment
in it. Online shopping and social platforms need more investment to improve revenues.
3.5. Research and development strategy:
Orange Egypt is one of the leading telecommunications organizations in alignment with
Vodafone. Research and development department should seek for the following
objectives:
1. Need to make deals with NTRA to implement many new services to adapt 5G
technologies.
2. Intense competition especially with Egypt telecom company (WE).
3. Most of governmental new project 1st implementation with Telcom Egypt.
4. Vast area that needs to be covered to improve network are coverage.
5. Social culture that needs more adaptive solution to promote new social
platform services.
Moreover, the possibility of having a new entrant in the mobile market will increase the
level of competition as well as spurring further changes in the sector.
Competition between players, backed by international telecom firms and the
government, is unlikely to abate. With changes in firm’s ownership and strategies,
Since its inception, Mobinil has strived to maintain a leading position in the
telecommunications market in Egypt, honoring the trust of more than 34 million
subscribers. Over the past years, Orange has delivered on its promise to millions of
customers, whose confidence in the reliability of our services has reinforced our solid
position.
Orange Egypt is committed to provide the best working environment for over 8000
employees. As it offers an open, challenging, and dynamic environment with
opportunities of growth. Our well-trained and highly skilled employees experience the
challenge of working in the most dynamic global industry - mobile communications. The
strength of Orange brand and the quality of our network coupled with the dedication of
our employees are the key assets of our Company. We face the future with real
confidence. Reinforcing and supporting our leadership team is a top priority and I can
assure you that we will continue to take full advantage of every opportunity to delight
our customers, serve our community, and drive profitability to our shareholders.
Therefor the Board is Responsible to:
Provide entrepreneurial leadership within a framework of prudent and effective
controls, enabling risks to be assessed and managed.
Ensure that the obligations towards the stakeholders are understood and met.
Ensure the integrity of the accounting and financial reporting systems.
Oversee and assesses the company performance.
Uphold responsibilities towards the environment, community, employees,
customers, government authorities, media bodies and suppliers.
The current flat organization structure is good for implementing this strategy with
focusing on ability of handling large expansions using current calibers and develop
them. The current major priority is digital transformation that relates to our domestic as
well as our international business. We aim to support the government’s initiative for
digital transformation, which entails connecting governmental institutions across Egypt
to enable economic reform. Our success in the wholesale segment relies on our
relationships with domestic and international carriers and customers. The business
model is characterized by signing long-term agreements. Some are bilateral in nature
like the transmission, infrastructure and international voice agreements with the
domestic mobile operators.
Orange Egypt for Mobile Services is an Egyptian Joint Stock Company established
under the Investment Incentives and Guarantees Law No. 8 of 1997 and was registered
in the commercial registry under No. 312032 on 4/3/1998 which was later modified to
No.2231 on 14/1/1999. The purpose of the company is to execute, manage, operate,
develop, maintain a digital cellular mobile telecommunication system (G.S.M), selling
and distributing mobile lines, scratch cards, mobile equipment and mobile maintenance
and accessories. The company provides its services to subscribers inside and outside
the Arab Republic of Egypt.
Revenue from the sale of goods or services rendered is recorded at the fair value of the
consideration received or receivable, net of returns, trade discounts and volume
rebates.
Revenue recognition for major revenue streams are as follows:
1- Airtime, SMS, and other value-added services are recognized when services are
rendered. For postpaid subscribers revenue is recorded based on billed services,
and an accrual is recorded for services rendered and unbilled at year end.
2- For prepaid subscribers initial sale of scratch cards is recorded as deferred
revenue, revenue is recorded based on usage of Airtime and other services.
3- Interconnect and roaming revenue is recognized based on the terms and
conditions agreed with other operators and when services are rendered and
billed. Accruals are recorded for unbilled revenue resulting from services
rendered until the year end.
4- Handsets and accessories revenue is recognized upon delivery and when
persuasive evidence exists, in the form of an executed sales agreement, that the
significant risks and rewards of ownership have been transferred to the buyer,
there is no continuing management involvement with the goods, recovery of the
consideration is probable, the associated costs and possible return of goods can
be estimated reliably, and the amount of revenue can be measured reliably.
5- Connection fees are recognized based on activation.
Action plan
Objectives: conduct 5G deal with
government
Targeted
Actions KPIs Date Responsible
Value
# of signed protocols
Sign new deals with NTRA for 5G & Marketing &
& agreement with the 8 Q4
social platform Sales DEP
government
# of signed protocols
Sign new Deal with MOSS for & agreement with the Marketing &
3 Q3
learning social platform government Sales DEP
1. introduction:
Building on our new strategic priorities, vision and mission, Orange Egypt has sensed
the need for a culture change within the organization that would enable us to embrace
our challenges and attain our corporate aspirations. Accordingly, we embarked on a
company-wide culture-shift program & new evaluation technics to ensure all strategies
with action plan are in the right direction.
The Human Resources announced the launch of the HR evaluation & enhancement
module for the first time in Orange Egypt. This new reorganization of the HR function is
designed specifically to better serve our people by working closely and deliver a
consistent yet personalized internal customer experience. In alignment with our
company strategy to enable us to have a new grading and compensation structure,
Mobinil launched a Job Grading and Salary Structuring Project across the firm. Job
Evaluation is a systematic process for defining the relative worth/size of jobs within an
organization in order to establish career growth and development opportunities for our
people.
Orange have also launched the Leadership Academy designed to leverage our leaders’
capabilities (all people managers, at each layer, from Team Leader up to Head of
Department), skills and know-how to better equip them to lead and inspire their teams to
deliver top notch performance.
To improve our HR productivity, we have established a new HR corporate reporting
channel to monitor vital Key Performance Indicators designed to supply human
resources personnel with important data - not just human capital management metrics
in support of workforce optimization, but also information concerning the effectiveness,
functionality, and morale of our organization.
Orange also continued to implement its corporate social responsibility (CSR) project in
collaboration with Awtad organization by training students from technical and industrial
schools as well women workers and artists working on handcrafts while providing them
with the essential raw material they need to start producing high quality handcrafts that
can generate for them a decent income, through this initiative thousands of jobs were
offered to those working on handcrafts in El Nuba, Aswan, Sinai, Siwa, Marsa-Matrouh,
Alexandria and Cairo.
Communicating the right knowledge about cellular networks and Electro Magnetic Field
[EMF] is an integral part of mobile operations. We believe that public dialogue and open
discussions are essential for sustainable network expansion.
Our awareness program continues to evolve and diversify covering topics of renewable
energies and electronic waste management as well.
2. Orange Egypt List of Measures & Controls:
Table 19 list of controls and measures
Financial
Lower cost Increase Increase revenue
profitability Perspective
Lower waiting time Increase customer
retention Customer
Payment process
improvement Improve monthly CSI Perspective
Key account retention
Reduce # of 95% S1
complaints & reduce
Customer closer date
improving Increase the 100% Q3
Market share by units number of customers of
Q4
market from 35m
subscriber to 36 m by
the end of the year
Developing Key Retain 100% of at 100% QLY
account retention named accounts
throughout the faecal
year.
Improving Payment Customer 35 Q2
processing cycle time collections will be
received within 35 days
Internal
offering new increase new 5 Q3
products differs than products - offering new
competitors Orange cash
enhancement programs
Developing develop more 100% Q2
Service quality research for time saving
process
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