Principal of Management (MGT 201)

Spring - 2022
Section - 4
Course Instructor - Maria Muntahin
Term Paper on Airtel
Submitted by -
1. Ishmam Hasan Rahat (2131178)
2. Sabrina Bonna (2010029)
3. Hridoy Chanda (2131141)
4. Sadia Mobashshira Shoilee (2130025)
5. Rukaiya Rahman (2130512)
 Letter of Transmittal

6th of March 2022

Maria Muntahin
Department of Management,
School of Business, Independent University, Bangladesh
Dhaka, Bangladesh.

Dear ma'am,
This is to inform you that we have completed the marketing plan that you had assigned
us for the course MGT-201 for the semester of spring 2022. We selected “Airtel” for the
management plan. It is an immense pleasure for us to submit you the management
report ma’am.
We have tried our level best to fulfill all our requirements of this course and tried to
follow your instructions while preparing the report. This will give us the opportunity to
understand theoretical knowledge in the practical field, which will help us in our future
career.
It would be a great pleasure for us if the report serves its purpose. Lastly, we would be
thankful once again if you please give your valuable advice on our report.

Sincerely yours,
Ishmam Hasan Rahat (2131178), Sabrina Bonna (2010029), Hridoy Chanda (2131141),
Sadia Mobashshira Shoilee (2130025), Rukaiya Rahman (2130512)

Table of Contents
 Serial No. Content Page No.

1. Acknowledgment 1

2. Executive Summary 1

3. Company Overview 2

4. General External Environment Factors 3

5. PESTLE Analysis 3-5

6. SWOT Analysis 5-7

7. The Critical stakeholders 7-10

9. Organizational Structure 10-11

10. Leadership Style 11-12

11. Conclusion 12

12. Reference 13

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 Acknowledgement

We have taken efforts in this project. However, it would not have been possible without
the kind support and help of many individuals and organizations. I would like to extend
my sincere thanks to all of them.
We are highly indebted to Maria Muntahin ma’am for her guidance and constant
supervision as well as for providing necessary information regarding the project & also
for her support in completing the project.
We would like to express our gratitude towards the members of Airtel for their kind
cooperation and encouragement which help us in completion of this project.
We would like to express our special gratitude and thanks to industry persons for giving
us such attention and time.
Our thanks and appreciations also go to our mates in developing the project and people
who have willingly helped us out with their abilities.

Executive Summary

The largest investment in Bangladesh by an Indian company “ Airtel ” established in

July 07, 1995, as a Public Limited Company, it is Headquartered in India. Airtel is a
global communications solutions provider with appx. 480 Mn customers in 17 countries
across South Asia and Africa. The company ranks amongst the top three mobile
operators globally and its networks cover over two billion people.
However, Airtel in Bangladesh was managed by Bharti Airtel Bangladesh. In 2016, the
company of Bharti Airtel Bangladesh merged its operation into Robi Axiata Ltd.
Therefore, the defunct Bharti Airtel Bangladesh company no longer exists and
currently has been taken over and owned by Robi Axiata Ltd.
Following the merger of Robi and Airtel, the merged company known as Robi Axiata
Ltd. ‘Airtel’ will remain as a product brand of Robi Axiata. Since then, Robi Axiata Ltd is
the brand licensing holder for Airtel only in Bangladesh.

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 Company overview

Airtel is a global brand of Bharti Enterprise of India- world’s third largest mobile phone
operator in terms of subscriber base. However, Axiata Group of Malaysia and Bharti
Enterprise of India had agreed to merge their respective operations in Bangladesh on
January 28, 2016. Robi as the merged company began its commercial operation from
November 16, 2016. Following the merger of Robi and Airtel, Robi was granted license
to use Airtel brand in Bangladesh for the customers having 016 number series.
It is the largest network of friends in Bangladesh with approximately 13.4 million active
subscribers as of August 2018. The company provides widest network coverage to 90%
of the population covering more than 500 thana with 4G network.
The journey of Airtel initiated with a simple thought. What do we cherish in life the most?
The answer is very simple too. It is Friendship! Hence, Airtel, the network of friends, has
started its venture in 2010 with the very same motto of celebrating every little thing in
life staying around with friends be it online or offline. To engage the youth in meaningful
activities, progressive thoughts and expose them to a colorful horizon of entertainment,
Airtel has always been there to inspire the youth of Bangladesh to grow as an individual
and develop as a unit. The strong network and reasonably priced offers have made it
possible to connect the youth forming the largest network of friends.
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General External Environment Factors
The term of external environment refers to factors and forces outside the organization
that affect its tasks and performance. It includes several different components such as
political, economic, social, technological, environmental issues which is called PESTLE.
PESTLE Analysis is a researching tool for strategic business planning. It is a strategic
framework for well understanding external affecting or influencing a business. The
PESTEL framework is a research tool used to identify key drivers of change in the
strategic environment.
Political Factors : Bangladesh Telecommunication Authority has been striving hard
and trying its level best to create a level playing field in the Cellular Mobile industry.
Politically, Bangladesh is an unstable country where Government decisions and
regulatory initiatives matter a lot.
* Telecom deregulation Issuance of cellular mobile license * Reduction in Taxes and
Duties * Independent Regulation * One windows regular facility.
Regulatory Initiatives by the government : 1. One windows regular facility 2. Simple
liberalization Regime 3. CPP regime for cellular mobile subscriber 4. Level playing field
royalties 5. Level playing field for all operators 6. Out of court statement of case with
operators.
Economic : In Bangladesh, Airtel considers the long term and short term state of the
trading market. * Inflation is controlling by state
bank and under strict eyes * Unemployment rate is going up and up with the increase in
the level of poverty. Airtel contributes to lower the level of unemployment rate by
providing job opportunities for different levels of people. For example – beginning from
customer care service staff to the Managing Director etc.
Social : During the formation of marketing strategies, Airtel looks after a lot of factors.
Deep study of local culture and social Setups are also one of the major factors which
account much in successful strategy formation of Airtel. Varying types of consumer
behaviors are found in different societies.

The study of society helps to understand the consumer behavior and in turn assists
Airtel to improve their marketing strategies by understanding issues like :

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* The way how consumers think, feel and select a cellular connection * The psychology
of how consumers are influenced by culture, family and social setups. * As Bangladesh
is an Islamic country and people are very strict in case of Islam any thing against the
philosophy of Islam on either print or electronic media are treated as against
Bangladesh. * Most of the people dislike anything extra-ordinary or something which
sabotages their culture or subculture. * Companies who are targeting the upper-end of
market mostly published and aired their advertisement in English language. * In
metropolitan cities women are doing work along with their other responsibilities but
other than metropolitan cities it is difficult for women to convince their parents and
spouses to work.
Understanding of these issues helps to adopt better strategies by taking the consumer
into consideration. By understanding the
consumer, Airtel makes a more Informed decision as to which strategy to employ.
Technology : Technology Used By AIRTEL -
NGN (Next Generation Network)
The network that has been deployed in Bangladesh by Airtel is based on the NGN or
Next-Generation Technology- a future-proof architectural system which ensures
optimum utilization of frequency and enhances speed and quality of both voice and data
services.
Legal : The Company is committed to maintaining the highest standard of conduct and
professionalism and towards this end has formulated a policy that will provide clarity
about the method and process for stakeholders to voice genuine concerns about
unprofessional conduct in breach of this Code.
This policy aims to: * Provide an independent forum by means of the Office of the
Ombudsperson, for employees and external
stakeholders of the company to raise concerns and complaints about improper practices
which are in breach of the Code of Conduct. * Put in place a fair and equitable inquiry
process and redressed mechanism * Reassure employees and other stakeholders
raising the concerns, that each one will be fully protected against possible reprisals,
intimidation, coercive action, dismissal, demotion or victimization when a serious and
genuine concern of apparent unprofessional conduct has been made in good faith
Scope of policy * This policy is applicable to all employees of the Airtel, and to all other
stakeholders interacting with Airtel. It allows those individual employees and other
stakeholders to raise concerns, issues or information of acts or conduct that are in
breach of the company's Code of Conduct.

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Environmental Factors : Airtel is working hard to contribute towards the environment.

It is designing energy efficiency in its networks, facilities and data centers. It is
increasing the use of renewable energy to satisfy its energy needs rather than
conventional energy. It is also planning to share tower infrastructure with competitor’s
mobile network which reduces the need for separate towers and helps in saving energy.
Specific factors---
Specific environment means the part of the environment that is directly relevant to the
achievement of an organization’s goals.
Customer : Airtel monitors customers’ needs by identifying customer problems after
they occur and anticipating problems before
they occur.
Supplier : Suppliers can influence Airtel by raising or lowering prices of goods ,
changing credit terms and changing delivery terms.
Competitors : There are several competitors of Airtel in Bangladesh like
Grameenphone, Banglalink, Tele Talk etc. This competition will assist Airtel to provide
better service to the customers than the competitors.
Pressure group : Pressure groups , also called interest groups , are groups of people
who share a common interest and try to influence the decisions made by businesses,
organizations or governments. Many pressure groups try to influence Airtel to behave
more ethically or to act in a more environmentally friendly way which will be beneficial
for the customers.

SWOT Analysis

SWOT analysis helps us to know and build ourselves on what we are good at, what are
our lackings, how we can minimize our risks and it helps us to guide which strategies
we need to follow. The (S)strengths and (W)weaknesses are the internal factors and
(O)opportunities and (T)threats are the externals.

SWOT analysis is performed on “ Airtel ” -

Airtel’s Strengths :

1. It is already a renowned telecom company, world’s 3rd largest Telecom operator

in the world with 200+ million subscribers operations in nearly 20 countries.
2. Airtel has a high brand visibility and a high brand equity with a whopping
subscriber base.

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3. Strong advertising with renowned celebrity brand ambassadors has boosted the
brand more.
 4. Airtel has interconnected the life of people in a highly efficient way by providing
extra features and services and great value added services like Airtel money,
online recharges, bill payments, F & F services, backup services etc.
5. It provides good packages according to the target market that is at a low price as
compared to quality provided.
6. The company has great strategic alliances - It has top stakeholders, namely
Sony Ericsson, Nokia and the recent one being Apple. Such strategic alliances
boost the brand equity and the bottom line of the company.

Airtel’s Weaknesses :

1. Airtel group is under a high debt with bad investments and credit being high and
margins being low.
2. They are running the risk of being dependent on some other companies which
may affect its operations.
3. Compared with other major telecom companies, Airtel got less time in market.
4. It has not enough network coverage as other telecom companies.

Airtel’s Opportunities :

1. With introduction of unique services, Airtel can avail higher margins successfully.
Value added services (VAS) can be an example of it.
2. Venturing into new markets/developing economies (Market developing) can
prove to be a success for the company.
3. Due to its strong presence, latest and low cost technologies can be used by
Airtel.
4. Airtel can develop its rural market services and tap the fast expanding cellular
market.

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5. Upcoming 5G Technology adoption can also make Airtel a more selected

telecom company.
Airtel’s Threats :

1. Low priced service offerings can reduce profit and reduce market share as well.
2. Government regulatory framework or unstable political conditions can be
potential threats to the stability & existence of this company.
3. Other emerging or more developed telecom companies (Competitors) can be
options for the customers to switch on for better services.
4. Customer’s high expectations.

Stakeholders

Airtel is one of the top communication service providers in Bangladesh and therefore
their array of stakeholders is vast. Starting from investors, managers, employees who
are few of the internal stakeholders, BTRC, competitors, suppliers, pressure groups, the
third party partners. These are the few of the stakeholders we will be discussing:

Internal Stakeholders:
Investors: The stakeholder engagement process in Airtel follows the guidelines set in
the AccountAbility 1000 relevant standards: AA1000. In particular, wherever feasible,
Airtel integrates stakeholder engagement within its Governance, Strategies and
Operational plans. The Engagement Process includes identification of Purpose, Scope,
Ownership and Mandate Profiling and prioritization of stakeholders. Airtel is making a
fresh investment of USD 300 million to rapidly expand the operations of Warid Telecom
and have management and board control of the company. This is the largest investment
in Bangladesh by an Indian company. Dhabi Group continues as a strategic partner
retaining 30% shareholding and has its nominees on the Board of the Company. The
new funding is being utilized for expansion of the network, both for coverage, capacity,
and introduction of innovative products and services. As a result of this additional
investment, the overall investment in the company will be in the region of USD 1 billion.
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Airtel Bangladesh Ltd. is jointly owned by Bharti Group and Dhabi group. In January
2010, Bharti Airtel Limited, Asia’s leading integrated telecom services provider, acquired
a 70% stake in Warid Telecom, Bangladesh, a subsidiary of the UAE-based Abu Dhabi
Group. Dhabi Group continues as a strategic partner retaining 30% shareholding and
has its nominees on the Board of the Company.

Managers:
Airtel has one of the best management teams in the country and are accountable for
most of their success according to them. Like any other organization, Airtel makes sure
that their managers are properly taken care of, for which Airtel offers them various sorts
of benefits that keep the managers as invested and focused as one can be in an
organization. People in any organization are those assets which are an integral part for
the growth and development of any organization. Therefore, a constant training and
development program along with some attractive compensation and benefits is no doubt
a great facilitation for them.

Employees :
For a company, their employees are the backbone of the organization and are vitally
important for an organization to reach their organizational goals. The work environment
of Airtel is one of the best with various activities for their workers to blow off steam
whenever required which keeps the workers always motivated. They also motivate their
workers by sharing profit among employees.

External Stakeholders:
Customer: For any organization their customers are one of the most vital stakeholders.
Regular engagement with the external stakeholders allows the Company to stay
relevant. This practice helps the company to prioritize key sustainability issues in terms
of relevance to its business and stakeholders, including society and environment. It
rigorously conducts a detailed materiality-assessment, which enables it to map
stakeholders expectations with its business priorities, risks and opportunities. In 2017-
18 Airtel revisited the Materiality Analysis process and performed detailed stakeholder
surveys to identify materiality sustainability concerns with the highest relevance and
impact, an exercise carried out once in two years. In order to streamline the process,
identification and categorization of its key stakeholders, (both internal and external) was
performed. The key stakeholders identified include: Customers,

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Employees, Business Partners (Suppliers and Vendors), Community, Industry

Associations and Academic Institutions.
 BTRC:Bangladesh Telecom Regulatory Commision is a government body
responsible for controlling Airtel’s actions and providing them frequency. So, for
every operational activity and every new service Airtel comes up with, BTRC
monitors and guides the organization. Airtel Telecom was awarded the 6th mobile
phone operator license by Bangladesh Telecom Regulatory Commission (BTRC) in
December 2005. Approximately a year later, in January 2007, they switched their
network on. The BTRC license for telecom service provision was issued to Airtel
Telecom, followed by the signing of interconnectivity agreement with all the existing
telecom companies of Bangladesh. On May 10th, 2007, Airtel Telecom launched its
commercial operations in Bangladesh with a network encompassing 26 districts. By
November 2007, the network had been expanded to cover 61 districts and was
used by 2 million customers.
Competitor: The Bangladesh Telecommunication market is somewhat of an
oligopoly market where very few organizations tend to provide the whole market.
Third Party Partner: Our mandate for doing businesses by keeping customers at
the forefront is reflected in our 'one stop' concept for all your telecom
requirements. We have the maximum number of Sales and customer needs and
demands are catered for in the shortest possible time. Our highly trained and
well-groomed team of Customer Service Executive is on hand 24 hours to provide
you support in any area- all to make sure that your communication experience
with use is facilitated in the smoothest way possible.

Critical Stakeholders:
Even though Airtel considers each and every one of their stakeholders very
important for their company but there are some who are given the organizational
vision of airtel is to be the most loved brand by enriching the lives of millions. The
core of it is the customers. These are the stakeholders that have the most impact
on the company and the company would never want to put them in a difficult
situation for airtel. Their customers have always been their top most priority, and
have always tried to keep a hold on their customers with their creative marketing
strategy and attractive new offers. We are promised to provide quality service

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throughout all airtel touch points to delight our customers. On October 1, 2007,
Warid Telecom expanded its network to five more districts raising the total number
of districts under Warid coverage to 56, said a press release. Mymensingh,
Jamalpur, Sherpur, Rajbari and Narail towns were covered by the Warid network.
On December 20, 2010, Warid Telecom was rebranded to airtel. The mobile
industry grew 50 percent in Bangladesh with mobile users increasing from 53.83
million in January 2010 to 80.91 million in September 2011. After splashing $300
million to buy Warid Telecom in Bangladesh in early 2010, Airtel Bangladesh's
subscriber base grew by 2.29 million in almost two years. Airtel's subscriber base
grew from 3.01 million in January 2010 to 5.29 million in September 2011,
registering a growth of 75 percent. Airtel Bangladesh signed an agreement with
Dutch Bangla Bank to launch m-commerce services to a larger segment of
population. Airtel subscribers can conduct their financial transactions by using their
mobile device through an affordable process. This partnership is aimed at making
the concept of inclusive banking a reality for customers in Bangladesh.

Organizational Structure

A Mechanistic organization is characterized by a relatively high degree of work

specialization, rigid departmentalization, many layers of management, narrow spans of
control, centralized decision making and a long chain of command.
The organic organizational structure is a flat structure where every activity is horizontal
by nature. It is a complex system because there are no formal rules, regulations, and
guidance in place. Every employee is treated equally hence interactions;
communications dealings are placed at the same levels.
The organic organization structure is most suitable for external environments that are
unpredictable by nature as the structure can adapt itself to any given situation.
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Airtel company is an organic structured company. Because it allows employees to take

part in decision making.
● Organic organizational structure is shaped like a flat surface with the power and
authority distributed evenly amongst the members.
● The organic organization does not follow the bureaucratic or hierarchal format of
organizational structure.
● Organic organizational structure is best suited for companies that operate in an
unstable and dynamic environment as it can make changes accordingly to suit
any situation. It has the option to gather, understand and process information
quickly to make changes.
 ● In an organic organizational structure, a network of multi-talented individuals
performs several tasks when needed. The organic organization is all about
teamwork as the organization encourages group leadership. It means that now
several people are entrusted with leadership qualities. It is now the responsibility
of the group and not a single individual to handle and manage the rest of the
employees.
● Very little instruction is offered to the team, which is entrusted with a project. The
team members have full authority and control over the project.
● There is no such concept of intense division of labor; the work is separated into
general tasks with minimum or little specialization.

Leadership style

The art of encouraging a group of individuals to work together toward a single goal is
known as leadership. This entails directing employees in accordance with a plan in
order to fulfill the company's objectives. Ideas are the foundation of effective leadership.
The level of motivation is influenced by the leadership style. There are three major types
of leadership: Democratic, Autocratic and Laissez-faire style. Democratic leadership,
also known as participative leadership, means involving a large number of individuals in
the decision-making process. People with this style are seen as self-motivated,
trustworthy, and open to new challenges and responsibilities. Autocratic leadership,
often known as authoritarian leadership, is defined by individual authority over all
decisions and little involvement from members of the group. Autocratic leaders rarely
accept input from followers and make decisions based on their own views and opinions.
Leaders who practice laissez-faire management have a trusting and reliant attitude
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toward their personnel. They don't supervise or become overly involved, and they don't
provide excessive instruction or direction.

Airtel adopts a simplified form of democratic leadership. Their leadership style is defined
as a mix of charismatic, participative, and supportive leadership. Every employee has
the right to speak up in the workplace and present their ideas to the management. Airtel
leaders and managers recognize the importance of communicating to employees about
how their responsibilities, objectives, and actions contribute to the achievement of the
organization's vision and objectives. They also use reward and recognition systems to
inspire their workforce.
 Conclusion

As a socially responsible brand, Airtel has launched a number of landmark Corporate

Responsibility programs in the areas of ICT-Education, Health, and the Environment, all
with the goal of assisting the country's long-term growth. Airtel has always prioritized
young empowerment and allowing them to share their thoughts. With an extended arm,
Airtel encourages everyone to join the world's largest social network. Airtel company is
an organic structured company. Because it allows employees to take part in decision
making and the leadership style used by Airtel is perfect for a company. Findings from
the project are given below:

1) General & External environment of a company 2) Major stakeholders identifying

process 3) Companies Internal and external Factors 4) Competitive environment
5) Organizational structure and Leadership style.

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