With the monthly additions average around 2.

5 million subscribers, 2007 has been a phenomenal year for the mobile market growth in Pakistan. Heres a look at the numbers (from PTA site) for the first 8 Months Of 2007. A quick analysis of this data reveals few trends about market leadership. Mobilink gained the most subscribers (5.45 million) in this period. Its market share has been decreasing gradually but thats expected with the increase in competition and teledensity. Telenor was the fastest growing company, 45% of their current subscribers (5.35 million) were gained this year. No doubt that Telenor has emerged as a strong contender. It took a small lead over Warid in March and has been able to maintain it. The rate of growth for Ufone has been impressive as well. It gained 5.32 million of the approx 20 million new subscribers in first 8 months of this year in Pakistan. Paktel has been barely able to reverse the negative trend of subscriber losses. Heres the month-to-month change analysis.

Some of the reasons for Mobilinks continued success include useful services such as Jazz Advance and smart marketing moves which has reinforced its brand. Mobile number portability for one reason or another did not do much to impact its subscriber count.

Analysis Document Transcript

1. ACKNOWLEDGEMENTS All praises and thanks are for Almighty ALLAH Who is the source of all knowledge and wisdomendowed to mankind and to the humanity as a whole.Then, we would like to thank my parents and family without whom we would not have reached at this level. I would particularly like to thank my Course Instructor Ms. Saira Ibrahim for many insights she provided us throughout the course of Strategic Management. 1|Page 2. Table of ContentsCASE .4ABSTRACT.............................................................................................. ................................................28EXECUTIVE SUMMARY.......................................................................................................................30EV ALUATION OF MISSION AND VISION STATEMENTS................................................................32 Mobilinks Vision....................................................................................................................................32

Mobilinks Mission ................................................................................................................................32 Evaluation of Mission Statement...........................................................................................................33 Re-vised VISION STATEMENT.................................................................................................................33 Mission Statement after Evaluation......................................................................................................34SWOT............... .........................................................................................................................................35 STRENGTHS............................................................................................................................... .............35 WEAKNESSES............................................................................................................................ .............36 OPPORTUNITIES....................................................................................................................... ..............37 THREATS.................................................................................................................................... ............37ANALYSIS.................................................................................................................. .............................38 Matrices on Microsoft Excel .................................................................................................................39RECOMMENDATI ONS & CONCLUSION............................................................................................55BIBLIOGRAPH Y.....................................................................................................................................57 2|Page 3. MOBILINK GSMCASESTRATEGIC MANAGEMENTPRESENTED TO MS. SAIRA IBRAHIM11/27/2010 3|Page 4. MOBILINK GSM - 2010MLwww.mobilinkgsm.comMOBILINKMobilink, a subsidiary of the Orascom Telecom Holding, is Pakistans leading cellular andBlackberry service provider. Mobilink currently has more than 31.6 million subscribers.Mobilink maintains market leadership in Pakistan through cutting-edge, integrated technology,the strongest brands, competent employee strength of 4,500 and the largest portfolio of valueadded services in the industry, a broadband carrier division providing next generation internettechnology as well as the countrys largest voice and data network with over 8,000 cell sites.Mobilink housing Pakistans largest distribution and contact centre networks and an unparalleled6,500 kilometres fibre optic backbone, Mobilink has already invested over US $3.3 billion inPakistan to date and provides countrywide connectivity, customer services and internationalroaming in over 140 countries.In Pakistan, the Pakistan Mobile communications Ltd (Mobilink) started its operations in 1994and, until early 2001, had a market share of 40%. In April 2001, OTH took over managementcontrol of Mobilink from Saifullah Group and Motorola. As the market leader even today,Mobilink serves more than 32.203 million subscribers, representing a market share of 32.47% (asof June 2010; PTA Statistics).The company is also the official cellular partner of the Pakistan Cricket Board. As a responsiblecorporate citizen, Mobilink also offers a range of socially inclusive products and servicesdedicated to enhance access to information. Through Mobilink Foundation founded in December 4|Page 5. 2007, the company supports education, health and environmental initiatives and promotessustainable business practices.Mobilink offers exclusively designed tariff plans that cater to the communication needs of adiverse group of people, from individuals to

businessmen to corporate and multinationals. Toachieve this objective, they offer both postpaid (Indigo) and prepaid (JAZZ) solutions to ourcustomers. Compared to their competitors, both the post-paid (Indigo) and prepaid (JAZZ)brands are the largest brands of their kind in the Pakistan cellular industry.In addition to providing advanced voice communication services that makes the lives of millionsthat much easy, they also offer a host of value-addedservices to their prized customers. At thesame time, Mobilink places high importance to its coverage, 10,000+ cities and townsnationwide as well as over 140 countries on international roaming service.ORASCOM TELECOM HOLDING S.A.EOrascom Telecom Holding S.A.E. (OTH) is part of the Orascom group of companies began itsjourney in 1976 and Orascom Telecom Holding S.A.E. (OTH) was established in 1998. Sincethen it has grown to become a key player in the telecommunication market. Orascom entered thedomain of Information Technology and Telecommunications by exchanging and distributing ITand telecom equipment in Egypt. OTH had exceeded 99.1 million subscribers as of August 2010.OTH is considered among the largest and most diversified network operators in the Middle East,Africa, and South Asia. Orascom Telecom is a leading mobile telecommunications companyoperating in six emerging markets having a population under license of 430 million with anaverage penetration of mobile telephony across all markets of approximately 40%.Weather Investments S.p.A. (Weather), a major share holder 51.7% of Orascom Telecom hasjoined hands with VimpelCom Ltd, a Russia based company. This partnership led to 20.0%economic interest and an 18.5% voting interest in the enlarged VimpelCom group. 5|Page 6. OTH through Mobilink has positioned itself as a leader in the region for its diverse GSMoperations with various GSM support and Internet operations. One of OTHs main strategies is tocreate its own non- GSM subsidiaries to act as a backbone of support for its regional GSMoperations. OTH has achieved this by dedicating financial, technical and management resourcesfor supporting its subsidiaries. This includes network support and installation of GSMoperations, equipment procurement, handset procurement and distribution companies, ValueAdded Services, and Internet Operations. OTH is dedicated to providing the best quality servicesto its customers, value to shareholders and a dynamic working environment for its more than15,000 employees. EXHIBIT 1WEATHER INVESTMENTS AND VIMPELCOM LTD PARTNERSHIPAfter this recent transaction on October 10, 2010, VimpelCom become the fifth largest mobileplatform in the world by subscribers, with: operations in a total of 20 countries in Europe, Asia, Africa and North America with approximately 850 million people living within the coverage area pro forma net operating revenues of US$21.5 billion for the year ended December 31, 2009 pro forma EBITDA of US$9.5 billion and an EBITDA margin of approx. 44% for 2009 6|Page 7. The combination of VimpelCom with Weather will lead to substantial value creation forshareholders, both in the short and long term.The Transaction will substantially increase the scale of operations and will create a new globaltelecom player with over 174 million mobile subscribers.About VimpelComVimpelCom Ltd. consists of telecommunications operators providing voice and data servicesthrough a range of wireless, fixed and broadband technologies. The VimpelCom Ltd. group isheadquartered in Amsterdam and has operations in Russia, Ukraine, Kazakhstan, Uzbekistan,Tajikistan, Georgia, Armenia, Kyrgyzstan, Vietnam and Cambodia, covering territory with atotal population of about 345 million. VimpelCom Ltd. operating companies provide servicesunder the "Beeline" and "Kyiv star" brands. VimpelCom Ltd. is listed on the New York StockExchange under the symbol

"VIP".About WeatherWeather Investments S.p.A. is a leading international telecommunications company offeringmobile, fixed, Internet and international communication services to 123 million subscribers inAlgeria, Bangladesh, Egypt, Greece, Italy, Pakistan, Tunisia and North Korea. Weatherssubsidiary Orascom Telecom Holding has an indirect equity ownership in Globalive Wirelesswhich operates mobile services in Canada. Weather Investments operates through its subsidiariesOrascom Telecom Holding S.A.E., Wind Telecomunicazioni S.p.A. and Wind HellasTelecommunications S.A. Weather is owned 72.65% by Weather Investments II S.a.r.l. (which isitself owned by the Sawiris family) and the balance by certain financial investors.MOBILINK MISSION, VISION AND VALUES Mobilinks Mission Statement To be the unmatchable mobile system of communications in Pakistan, providing the best value to its customers, employees, business partners and share holders. 7|Page 8. Mobilinks Vision To be the leading Telecommunication Services Provider in Pakistan by offering innovative Communication solutions for our Customers while exceeding Shareholder value & Employee Expectations. Mobilinks Values Total Customer Satisfaction Customers are at the heart of our success. They have placed their trust and confidence in us. In return, we strive to anticipate their needs and deliver service, quality and value beyond their expectations. Business Excellence We strive for excellence in all that we do. We aspire to the highest standards and raise the bar for ourselves every day. This commitment to delivering world-class quality translates into unmatched service and value for our customers and all stakeholders. Trust & Integrity At Mobilink, we take pride in practicing the highest ethical standards in an open and honest environment, and by honouring our commitments. We take personal responsibility for our actions, and treat everyone fairly, and with trust and respect. Respect for People Our relationships drive our business. We respect and esteem our employees and all stakeholders. We believe in teamwork, empowerment and honour. 8|Page 9. Corporate Social Responsibility As the market leader, we recognize and fulfil our responsibility towards our country and the environment we operate in. We contribute to worthy causes and are dedicated to the development and progress of the society.TELECOM INDUSTRY PAKISTANThe economic downfall has hit almost every industry globally and telecom industry is also a preyto it. However it is still not a total downfall in the South. Worldwide the industry is going thrurecession and the mergers and acquisitions. Revenues are down and companies globally arefocusing on market consolidation. Expansion is rare and telecom industry is into cost cuttingcycle.Telecom sector is vital to economy as it provides the prime services that an economy needs forrapid growth, development and modernization.As the economy grows demand for telecom services increases to conduct the increased numberof economic transactions in the expanded economy. But as of economic crises and high inflationin Pakistan the growth is negative. There is also an increasing concern for security in Pakistanand inconsistent and adhoc decisions from regulatory authorities. The concern is also the suddenchange in governmental trade policies.The telecommunication industry of Pakistan suffered broad and deep damages to infrastructuredue to the floods of 2010. The current damage assessment estimates a loss ofapproximately Rs.4.148 million, just from cellular operators, according to an estimate by thegovernment. This figure represents the sites which are totally damaged and are nonoperationaland the cost incurred to repair/recover the damaged sites have not been included. The actualdamage cost will be considerably higher than this number. 9|Page

10. This disaster has left a mark on the already struggling telecom industry of Pakistan. Goingforward, the industry cannot afford to ignore catastrophic events like these. They need to takenatural disasters into account and plan for them.ORGANIZATIONAL STRUCTUREEXHIBIT 2 10 | P a g e 11. 11 | P a g e 12. DIVISIONSAll the divisions especially the north and central severely suffered due to flood 2010. On thewhole, the telecommunication industry of Pakistan suffered broad and deep damages toinfrastructure due to the floods of 2010. The current damage assessment estimates a loss ofapproximately Rs.4.148 Million, just from land line and cellular operators, according to anestimate by the government. This figure represents the sites which are totally damaged and arenon-operational. However, the costs incurred to repair/recover the damaged sites have not beenincluded. The actual damage cost will be considerably higher than this number.The categories of damage to Mobilink includes (mainly in Central and Northern Division): Erosion of boundary walls and tower bases. Equipment damage due to water accumulation inside the site.(BSS, Trx, Power etc) Feeder cables damage due to settlement of cable bridge foundation support. Fibre cable Cuts on backbone and local fibre cables. Microwave Backhaul disruption Short circuits and power system damage including Generator damage In rare cases tower foundation settlement issues have occurred.Mobilink has further divided all it departments on geographic bases northern, southern andcentral. 12 | Page 13. EXHIBIT 3 Geographic Sales $ Sales Profits $ % Region (M) % (M) Profit Northern 3.353 (7.10) 0.753 (9.74) Division Southern 4.229 (5.34) 1.129 (3.37) Division Central 2.476 (5.16) 0.377 (13.12) Division Total 10.06 -17.60 2 (26.23) Regional Sales and Profits NorthernThe northern region includes Islamabad, Khaibar Paktunistan and Azaad Kashmir area.Islamabad is a very profitable region of Mobilink. After Karachi and Lahore, Islamabad is thenext maximum profit generating city for Mobilink. Khaibar Paktunistan is the region with lots ofscope and resources for Mobilink yet not generating a lot of profit, mainly because of culturebackwardness of Khaibar Paktunistan. SouthernThe south region includes the whole of Sindh and Balochistan. Karachi is the highest profitgenerating city of Mobilink. Balochistans low revenue generation is mainly due to securityreason. Security is also a concern for Karachi and other cities yet citizens of Karachi havebuffered themselves to this issue. Central 13 | P a g e 14. The central region includes parts of Punjab and Lahore city is the most profitable region ofCentral. The battle between Lahore and Karachi is lifelong for Mobilink. The security is also aconcern for central region like southern people here are also buffered to it.EXHIBIT 4 TELECOM COMPANIES MARKET SHARE % Mobilink 32.47% Ufone 19.50% Telenor 23.00% Warid 16.03% Zong 9.00% Market Share ComparisonPRODUCTS & SERVICESJAZZJazz is Mobilinks prepaid service which provides a bouquet of benefits in the form of funservices, attractive services call rates and network reliability. The packages that Jazz offers are: Jazz Budget: Offering remarkable rates and package features, it is the best way to stay in touch with millions of Mobilink family members in Pakistan. The major target market are the teens and younger age group people who wants to stay connected. Happy Hour only charging 0.4/30seconds. Jazz One: One network, one nation, one rate one brand, Jazz! Introducing Jazz One, this proves that it pays to be part of the biggest network in Pakistan. Based on the premise of simplicity, Jazz One truly brings our promise of freedom to life. The freedom to call anyone, anytime, anywhere at the lowest rates ever.

Jazz Ladies - First: It is a package designed especially for ladies. From sizzling recipes to tips on looking best are all an SMS away. Remarkably low calls rates. 14 | P a g e 15. Women around the globe love to talk for hours on end, and Jazz understands this need to the fullest, thus introducing its brand new revolutionary offer, where all women can talk for as low as Rs. 5 / hour! This enticing new offer is surely every womans dream come true, bringing forth a product that will now satiate their desire to talk more and more for hours. There also offering recipes, tips for forever young, shopping discounts and etc. Jazz Easy: It is the most affordable package that provides access to the best rates to call across Pakistan. Jazz Easy customers can not only enjoy calling at amazingly low call rates for Mobilink numbers, they also benefit tremendously from the fabulous rates to call on any other network. Jazz Octane: It offers call and message rates to all networks at a very lowest rate. They also have an option of late night calls on all Mobilink numbers. In this tariff plan subscribers can also avail the international facilities as well but all services for only 3 favorite numbers. Jazz International Roaming: Jazz subscribers now have the convenience to carry their Jazz connections while traveling to some of the most popular countries worldwide. Jazz connects their customers across the globe giving a one stop solution to international communication needs. Offering via promotions of Jazz Share, Advance and Load.MOBILINK INDIGO:Mobilink Indigo is the ultimate post-paid service which helps you explore the next level ofpersonalised and value driven services that come together as the indigo experience.It offers a range of highly competitive post-paid packages offering great value for theircustomers money. These include packages for more SMS-savvy individuals, while also offeringmore high-end packages which provide a combination of bulk free minutes, free data offeringand the best call rates in the industry. The offer voice and SMS bundles italk and isms forweekend and late night communication and SMS bundles to any network any time.Indigo is now offering Bill payment viz cell phone and Business on the Go and Citi MobileCredit Card. 15 | P a g e 16. MOBILINK BLACKBERRYMobilink introduced BlackBerry Services in Pakistan in 2005. BlackBerry from Mobilinkprovides users with a secure, wireless access to a full suite of business and social networkingapplications including Push Email, Phone, SMS, Internet Access Organizer Features, SocialNetworking Face book, G Talk, MSN Messenger Etc. Today Blackberry usage soars inPakistan especially Karachi, Lahore and Islamabad.MOBILINK WORLDMobilink World is the latest offering of Mobilink with International SMS chat service, Ring tuneclub, CricVideo, Mind Reader, EDGE Technology, Corporate SMS, Holy Sayings, SMS GameTime, SMS Scheduler, Mobi Greetings, Mobi Safe and Bolo SMS. This offer is basically totarget corporate sector International Chat Service, Scheduler, Mobi Safe retrieving cellnumbers from a different cell or lost cell. Web Portal is also offered with Mobilink world forcorporate sector.MOBILINK INFINITYMobilink Infinity WiMAX is the broadband service which helps you connect with the outerworld wherever the subscriber is. Through this service the customers can easily enjoy beingonline and stay connected at all times. It provides total internet and communication solutions.INTERNAL FACTORSMANAGEMENTIn this highly competitive era, more of bureaucratic style of management is followed inMobilink. Through as shown by upper management is the decentralized style of decision makingmuch of the decisions are made at the top level and managers plus line managers are just told toimplement. The hiring firing is highly based on upper management decisions as well as 16 | P a g e

17. appraisals and promotions. Much of performance measurement is done only for procedurepurpose.The CEO and President of Mobilink GSM was Mr. Zohair Khalique who is replaced by Mr.Rashid Khan. Change of leadership brought change of strategy. He started cost-cutting in manyof the Mobilinks departments. Budget allocation to department are now strictly monitored andno resource wastage at all. Employees were previously served quite lavishly but a change instrategy has been seen by reducing their non-financial benefits. Cut on bonuses and incrementsuntil 2009 and tight aboard training budget for employees. Many of training programs are nowconducted within Pakistan instead of sending valuable employees aboard.STRATEGIC BUSINESS DEPARTMENTThis is where all Mobilinks business plans are set to meet the goals and objectives of thecompany. This department sets the planned activities and aims of Mobilink so that all efforts areconverted into results. It deals directly with Mobilinks alliances in the most professional way toensure excellent long term business relations.PROJECT MANAGEMENT DEPARTMENTAll Mobilinks projects are managed here by a highly knowledgeable business - oriented team.The Project Management Department is responsible for allocating the projects tasks to therespective department and then delivering the project to the third parties once done. The mergerof Mobilink and LinkDot.net was recent major project for PM department. The issue of identicalIDs for employee is current faced in the company many of Mobilink employees and LinkDot.netemployees have similar name hence same IDs, this is creating a confusion for the ID recognitionsoftware. Hence, employee attendance, time of arrivals and other within companycommunication is difficult. 17 | P a g e 18. OPERATIONS & CUSTOMER CARE DEPARTMENTThe departments where all day to day issues are dealt with high professionalism in order toensure all the services are operating smoothly. The operations department deals with all theregions operators to make sure that all our third parties are being served with high efficiency.The customer care department recently faced the issue that the customer care service at nighttime from Karachi was shifted to Lahore and Islamabad. Due to Sindhi callers, the call centrebased in Islamabad and Lahore couldnt handle the calls due to the communication barriers.Thus, call centre was again shifted to Karachi which handled all the Sindhi callers. Rests of thecallers were handled by the call centre in Lahore and Islamabad.ENGINEERING & INFORMATION TECHNOLOGY DEPARTMENTThe company cannot provide cutting edge technology without the best IT personnel. Therefore,Mobilink recruits only the best IT experts from all over the world. The IT infrastructure is 100%reliable for the fact that we use high tech solutions with clustering and load balancing facilities tomaintain applications and data solutions.The IT department faces the issue of mismanagement due to extensive network within thecountry which is resulting in poorer coverage in the country. Budgeting is another concern,previous major portion of budget was for engineering and IT department but now more budgetsare being allocated to sales and marketing department.FINANCE & ACCOUNTING DEPARTMENT:This department ensures that Mobilink meets its fiscal and fiduciary responsibilities. TheAccounting Division handles payrolls, accounts receivable and payable, and responds to anyrelated issue from the mobile operators and third party companies. The Finance Division workswith the Business Department to manage Mobilinks budget, implement sound financial policiesand handle all treasury functions. 18 | P a g e 19. The Finance and Accounting Department faced issue of capital acquisition, being private limitedcompany Mobilink has to go for debt financing and current high interest rates due to

economicdownturn. They have to do serious pondering when they decide about costing.FINANCIAL DATAEXHIBIT 5 19 | P a g e 20. 20 | P a g e 21. 21 | P a g e 22. ADMINISTRATION & HR DEPARTMENT:Mobilinks HR department ensures that only and only the highly skilled are recruited. It alsoestablishes and maintains healthy internal communications and provides sufficient training toeveryone with respect to Mobilinks ethical and professional standards. Mobilink believes ineducating people to use technology and sense the responsibility to keep their departmentsinformed and competent to the latest trends. That is why they heavily invest in training theiremployees. Though with the recent cost cutting strategy there is severe cut on the employeetraining budget.MARKETING & SALESMobilink along with its competitors are having a price war. They are competing with one anotheron lowest call and message rates. Fighting a price war is the current competitive advantage withdecline in disposal income in Pakistan that all the telecom companies are trying to win on thiscompetitive advantage.Since the entry of Zong, Mobilink has started concentrating on marketing their brand andservices. Previously they concentrated on employee benefits. More concentration is now beingpaid to do the effective marketing of Mobilink and more budget is allotted to the sales andmarketing department.FRANCHISE OPERATIONSMobilink launched software called SIEBAL couple of months back in all its franchises and atcustomer care centres. Initially the software worked well yet the software had issues whenconnecting with dial-up connection so forth the franchises in small towns and villages could notconnect to the software. The software was to facilitate the franchises in the issues related to SIMand Mobilink service connections. The company reverted back to the old software.CSR AT MOBILINK 22 | P a g e 23. Mobilink plays an active role in supporting the community and social development of Pakistan.Their Corporate Social Responsibility goes with charity and donations whereby they take intofull account the impact on the society as whole and the natural environment.They recognize that an educated, healthy society is Pakistans key to ensuring sustainabledevelopment and they do their best to give back to the community they operate in and for thispurpose they have created Mobilink Foundation. The Mobilink Foundation is a grant-givingorganization, which provides support for the local community not only financially but alsothrough dedicated volunteer hours.The establishment of the Mobilink Foundation in December 2007 is a reflection of thecommitment of Mobilink and its employees to benefit the community in which they operate.INDUSTRY FACTORSFuelled by recent rapid adoption in developing countries, mobile communications have proppedup the industrys top line. But now with these markets saturating, communications revenuegrowth as a whole is beginning to stall, and content connectivity revenues have not risen quicklyenough to compensate. Although increase in mobile internet usage offers a glimmer of hope, thetelecom industry faces some serious questions: where will future growth come from? How willthe industry evolve?With Call blockage service offered by all telecom companies except Mobilink. According toPTA 3 Million people in Pakistan are still using Illegal SIMs. This is a serious issue within theindustry as prevailing competitors have found solution to it yet Mobilink has done nothing to it.COMPETITORS 23 | P a g e 24. Considering developments and increased competition in the telecommunications market ofPakistan, a more liberalized economy, the Mobilink management has to think of how to direct acompany into more customer oriented operation, how to operate the company on

soundeconomic principles and how to streamline the companys image by issuing a communicationstrategy to support the business strategy of One Company One Profile. Mobilink is looking forways to organize and manage the company to comply with the high quality of services demandedby the customer. Mobilink is working on how to compete with an increasingly competitivetelecommunications environment.EXHIBIT 6 TELECOM COMPANIES NUMBER OF CELLULAR SUBSCRIBERS SUBSCRIBERS % Mobilink 32,203,000 32.56% Ufone 18,368,074 19.47% Telenor 18,329,428 23.72% Warid 15,774,299 16.97% Zong 4,446,024 7.27% Subscribers Comparison TELENORTelenor Pakistan is 100% owned by the Telenor Group, an international provider of high qualityvoice, data, content and communication services in 14 markets across Europe and Asia. TelenorGroup is among the largest mobile operators in the world with over 179 million mobilesubscriptions and a workforce of approximately 40,000.At the end of October 2010 it had a reported subscriber base of 23.84 million, and a market shareof 23% making it the countrys second largest mobile operator within 5yrs of launching itsservices in 2005. 24 | P a g e 25. .Telenor Pakistan acquired 51% of Tameer Micro finance Bank in November 2008. In 2009 itlaunched Easy paisa to become Pakistans first telecom operator to partner with a bank to offermobile financial services across Pakistan.A nationwide network encompassing 8,000 plus cities and 2,500 employees and the subscribergrowth is 9.9%. UFONEUfone subsidiary of PTCL was established to provide cellular services across Pakistan. Ufone iscurrently providing quality services across Pakistan. Ufone currently lowered their calling ratesacross other networks as low as 2.50/min which is currently the cheapest prepaid rates availablein the market. Ufone with the backend support of PTCL always provides quality services to itssubscribers.Ufone claims to have 3 million subscribers and still growing. Ufone is one of the best cellularcompanies in Pakistan with reliable network and coverage to over 100 key cities and prominenthighways. WARIDAbu Dhabi Group led by Sheikh Nahayan Mabarak Al Nahayan operates Warid. Warid started itservices in Pakistan May 2005. Since then Warid Telecom successfully launched the servicescovering 28 cities with a total population of around 32 million people. Ufone with the backendsupport of PTCL always provides quality services to its subscribers. ZONGChina Mobile is the worlds largest telecom operator having a customer base of over 300 millioncustomers, its network routes 700 million text messages every day and handles 250 million callsevery hour. China Mobiles first overseas subsidiary, China Mobile Pakistan (CMPak) is a 100% 25 | P a g e 26. subsidiary which has the license to offer and operate voice, data and all value added services inthe entire country. The pioneering overseas set up of China Mobile came through acquisition of alicense from Millicom to operate a GSM network in Pakistan. The first international brand ofChina Mobile is Zong being launched in PakistanSo far CMPak has invested more than US$ 700 million in the telecom sector in Pakistan and anadditional US$ 800 million will be invested till the end of year 2008. PTCLPakistan Telecommunication Company Limited (PTCL) is the largest telecommunicationcompany in Pakistan. This company provides telephony services to the nation and still holds thestatus of backbone for countrys telecommunication infrastructure despite arrival of a dozen othertelecoms including telecom giants like Telenor and China Mobile and Mobilink locally. Thecompany consists of around 2000 telephone exchanges across country providing largest fixedline network. GSM, CDMA and Internet are other resources of PTCL, making it a giganticorganization. The Government of Pakistan sold 26% shares and control of the companyto Etisalat in 2006. The Government of Pakistan retained 62% of the shares while the remaining12% are held by the

general public.PTCL also provides fixed line service through its countrywide CDMA based WLL (WirelessLocal Loop) network, under the Vfone brand name. In the cellular segment, the second largestcellular provider in Pakistan, Ufone, is also a wholly owned subsidiary of PTCL.FUTURE OUTLOOKMobilink is attempting effectively managing its labour costs, as well as continue to introducenew and contemporary product lines to complement its existing product lines. The economicdownfall and high inflation has been of major concern. 26 | P a g e 27. The company is continuing to introduce new product lines to follow trend of market whilemaintaining quality and tradition.The possibility of dilution of the brand is always present, with the in the current scenario of thedeal between VimpelCom and Orascom. The company is trying to maintain an iconic status of itsbrands but it is either going to be Mobilink-Telenor merger or something better for the telecomindustry. The merger leads to better relationship with neighbouring country Russia and narrowerdomination by Arabs in the telecom sector. Mobilink is also planning to takeover Warid inDecember 2010. So Mobilink is going through several changes, lets see how it shapes the futureof telecom industry. It is early to predict but a better and brighter future of Pakistan can beforecasted.REFERENCES 1. www.mobilinkgsm.com.pk 2. www.orascomtelecom.com 3. www.ufone.com 4. www.telenor.com.pk 5. www.zong.com.pk 6. www.pta.gov.pk 7. www.telecompk.com 8. www.ntcpk.com 27 | P a g e 28. MOBILINK GSMANALYSISSTRATEGIC MANAGEMENT ABSTRACTPRESENTED TO MS. SAIRA IBRAHIM11/27/2010 28 | P a g e 29. Mobilink GSM is a premier cellular company which has 10 million subscribers nationwide.Mobilink has the advantage of being the pioneers of introducing cellular networks in Pakistan.Orascom took the hold of Mobilink in 2001, it managed to make Mobilink grow five-fold in just18 months in terms of subscribers.Mobilinks greatest competition came in the form of two new operators; Telenor & Warid thatlaunched their services in 2005. Nevertheless, Mobilink maintained its leadership in market witha share of approximately 56.2% of the total mobile subscribers in Pakistan. As of December2005, Mobilink served approx 11 million subscribers. The major milestone for 2005 isconsidered to be the launch of BlackBerry services in Pakistan.Following the launch of Zong in 2008, the telecom industry became even more competitive. Inmarket with huge operators like Telenor, Warid, Ufone & now Zong, Mobilinks recognitionremained the same having the highest top of the mind brand awareness.Besides generating revenues & services, Mobilink has also played a role as a socially responsiblecorporate entity. Mobilink has made number of contributions in charities like Shaukat KhanamMemorial Trust, Umeed-e-Noor ,blind cricket for special people, donated cash to the PresidentsFlood Relief Fund, worked for the welfare and education of special children, sponsored eventslike Quaid-e-Azam National Gold Polo Championship. Mobilink has also promoted Pakistansart & culture in an international forum. 29 | P a g e 30. EXECUTIVE SUMMARYMobilink, a subsidiary of the Orascom Telecom Holding, is Pakistans leading cellular andBlackberry service provider. Mobilink currently has more than 31.6 million subscribers.Mobilink maintains market leadership in Pakistan through cuttingedge, integrated technology,the strongest brands, competent employee strength of 4,500 and the largest portfolio of valueadded services in the industry, a broadband carrier division providing next generation internettechnology as well as the countrys largest voice and data network with over 8,000 cell sites.Orascom Telecom Holding S.A.E. (OTH) is part of the

Orascom group of companies began itsjourney in 1976 and Orascom Telecom Holding S.A.E. (OTH) was established in 1998. OTHthrough Mobilink has positioned itself as a leader in the region for its diverse GSM operationswith various GSM support and Internet operations.In order to do the analysis of Mobilink GSM, we have gone through three stages which are theInput Stage, the Matching Stage and the Decision Stage.The first tool of Input Stage is EFE Matrix which tells us that Mobilink GSM is a flourishingcompany with having a total weighted score of 3.25. It indicates that Mobilink is responding in avery positive way to the existing threats and opportunities in the telecom industry. In our CPMwe can see that most weights are assigned to Technology and Innovation and PriceCompetitiveness which are 0.150 respectively. The competitors we used to do the CPM analysisare Telenor and Ufone. Overall Mobilink GSM is strongest, indicated by the total weighted scoreof 3.440, closely followed by Telenor with the total weighted score of 3.360 and Ufone at 2.810.Overall, Mobilink GSM has received a 3.13 total weighted score, which on 1 - to - 4 scale isquite good but still has room for improvement in factors such as low motivation and lowemployee morale due to cost cutting programs and employee termination and call blockageservice is still not being offered though all the competitors have taken this step. 30 | Page 31. In the Matching Stage, SWOT is an important tool which helped us develop four types ofstrategies: SO, ST, WO, and WT strategies. We matched the key external and internal factorsand produced feasible alternative strategies that would take Mobilink GSM a higher step.Mobilink GSMs vector is drawn in the Competitive quadrant of the SPACE Matrix.With the help of BCG, the differences among divisions in terms of relative market share positionand industry growth rate have become clear. The South Division, North Division and CentralDivision lie in the second quadrant Stars which represents the organizations best long runopportunities for growth and profitability. The IE Matrix tells us that South Division is in thequadrant I which is described as grow and build which means it is in strong position. Central andNorth Division fall between quadrant I and II which indicates that these divisions are aboveaverage. The last tool of Matching Stage, GSM indicates that Mobilink is in the quadrant I whichmeans that it is in an excellent strategic position.The final tool we have used in Decision Stage is QSPM in which we considered two mainstrategies which are Improve service and gain market share via adopting MVNO, MVNE &UTMS technology having a total attractiveness score of 7.75 and Backward integration overtheir infrastructure ventures and suppliers to reduce cost and expenses (TAS = 6.39). By totalattractiveness scores of 7.75 VERSUS 6.39 that the analysis indicates the first strategy is the bestoption to opt for.Based on the results, the economic down turn in Pakistan and Intense competition in the industryhas really taken its toll on Mobilink. Though Mobilink is at a strong financial position, it has notbeen performing up to the mark since last three to four years. Thus Mobilink must adoptinnovative information technology. It is important to deliver good quality and reliable serviceand it is highly essential to retain its customers in the competitive environment. 31 | P a g e 32. EVALUATION OF MISSION AND VISION STATEMENTSMOBILINKS VISIONTo be the leading Telecommunication Services Provider in Pakistan by offering innovative Communication solutions for our Customers while exceeding Shareholder value & Employee Expectations.MOBILINKS MISSION To be the unmatchable mobile system of communications in Pakistan,providing the best value to its customers, employees, business partners and share holders. 32 | P a g e

33. EVALUATION OF MISSION STATEMENT Customers Yes providing best value to its customer Products or Services Yes mobile system of communications Markets Yes in Pakistan Technology No - Concern for Survival, No - Growth and Profitability Philosophy Yes providing best value Self Concept Yes unmatchable Concern for Public No - Image Concern for Employees Yes providing bets value to its employeesRE-VISED VISION STATEMENT 33 | P a g e 34. The Mobilinks original vision statement is quite good. It clearly states that what are the aims ofMobilink and what is their target to achieve. Therefore, we have left the Mobilinks visionstatement untouched. It doesnt need any changes.MISSION STATEMENT AFTER EVALUATION We anticipate consumer need and deliver outstanding products and services that improve peoples lives. Delighting customers with a wide range of products and services in the communication industry with the best people and improved quality via virtual and innovative technology through providing growth opportunity. We are dedicated to provide the highest possible level of value to our customers, employees, community and investors. Mobilink being friend of nature is working toward creating a prosperous society and tidy world. Contribute to meet global standards at competitive price and committed to act in highest ethical manner with the rights and dignity of others. 34 | P a g e 35. SWOT STRENGTHS Largest Market Share & Highest number of Subscriber in Pakistan Blackberry usage soars Strong Brand Image, Indigo leading Postpaid brand and Mobilink Jazz singular pioneer pre-paid brand; & sweep two super brands award 2009 & Pioneers with GSM Technology Wide Network Coverage of 10,000 cities in Pakistan and over 100 countries with International Roaming Engineering and Technological stability at Mobilink along with competent employees Current ratio of company to meet its obligations improved in 2009 to 1.18 from 0.93 Concern for society and adapt to work environment needs; active CSR and only cellular operator to be awarded 6th Environmental Excellence Award by NFEH ISO 9002 Quality Management System Certification for Billing, Engineering Departments and CS Contact Center First mobile operator in Pakistan to offer extensive GPRS Roaming and BlackBerry Roaming services & Best extensive Network Infrastructure; optical network and Satellite links Declining Sales and EBIT by 13.5% but exponential growth in Revenue in first 3 quarter of 2010 Only cellular service in Pakistan to provide coverage on the M2 motorway and implementation of full intelligence network (IN) platform from Siemens 35 | P a g e 36. for the prepaid platform Mobilinks Short Message Service Center allows Vehicle Tracking and Fleet Management services Largest Call Center in Pakistan, which is there to assist the customers 24 hours Total Assets Turnover and Fixed Assets Turnover had been low for 3yrs, in 2009 TAT & FAT is 0.09 and 0.22 respectively In 2009, Mobilink ranked in top 100 telecom companies worldwide - 3rd among the Brands punching above their weights ahead of Airtel, Tata Indicom and Reliance Continuous and latest employee training approaches Effective and Rapid Communication within Management Partnership with MCB to offer all banking services to Mobilink customers via their handsets WEAKNESSES Service issues with customers - average to below average service Mismanagement due to large network Huge Expenses incurred, high cost of material and other expenses High Tariffs as compared to competitors & expensive service quality both call rates and SMS Call Blockage service still not offered Sort of bureaucratic style of Management; biasness by intermediate bosses ARPU for pre-paid declined from 1.8 to 1.6

but for post-paid inclined to 1.3 from 1.2 Customer Retention No clear strategic direction of Orascom Low employee Morale; due to recent cost cutting program and employee job termination Extensive Organizational Structure 36 | P a g e 37. OPPORTUNITIES Promotional Packages Sponsorships for local and International events Changing Marketing Mix Investment and Development Opportunities Improved Customer Service and Value Added Services Economic Influx both globally and locally Global Telecom Industry on Growth, both supply push and demand pull, pursuit of expansion Adoption New Technology; Mobile Wallet and Gift Cards Merger with VimpelCom; Opportunity to be Global 5th Largest Telecom Company Local handset manufacturing Adaptation to UTMS- 3G technology up coming in Pak Adopting to MVNO and MVNE services Exchange Rate Fluctuation THREATS Intense Competition Telenor, Ufone, Warid & Zong Inconsistent and Adhoc Regulatory Environment and Adverse Trade Policies of Pakistan Market Saturation of Subscribers Increasing maintenance cost Skilled labor attracted to competitors via better benefits High Tax Rates Price war between brands in telecom industry Natural Disaster; like the recent flood caused huge losses and the previous earthquake 37 | P a g e 38. Political Instability and Security Concern ANALYSIS 38 | P a g e 39. Matrices on Microsoft Excel 39 | P a g e 40. 40 | P a g e 41. 41 | P a g e 42. 42 | P a g e 43. 43 | P a g e 44. 44 | P a g e 45. 45 | P a g e 46. 46 | P a g e 47. 47 | P a g e 48. 48 | P a g e 49. 49 | P a g e 50. 50 | P a g e 51. 51 | P a g e 52. 52 | P a g e 53. 53 | P a g e 54. 54 | P a g e 55. RECOMMENDATIONS & CONCLUSIONBased on the results, the economic down turn in Pakistan and Intense competition in the industryhas really taken its toll on Mobilink. The continuous decline in market share and subscriber base 55 | P a g e 56. suggests that the company has not been performing well in last 3-4years. In actual fact, thecompanys financial conditions are good even in economic down turn yet have been incurringhuge expenses, which they are considering via cost cutting on their major nonessential costs.However it shows a slight improvement which can also be a result of the recent re-structuring,re-engineering and cost cutting approaches by the company.We would recommend the company the following recommendations: Maintaining leadership in the market requires innovative organizations willing to reengineer to succeed. IT fusion with the business means restructuring and remodeling to understand the role IT would play to meet the business objectives and a clear strategic direction including revision of firms vision and

mission statements. Constructing websites is not about content; it is about understanding what adds value and how humans interact with information. Their website Mobilink Infinity has nothing useful for customers or for any other stakeholder. Knowledge management is a plan that companies need to develop as part of their initial business process modeling It is not wrong for large firms to try to adapt to successful processes implemented by other firms and merger of Orascom-VimpelCom is go for future of Mobilink Telenor both as well for Pakistan.From analysis, the merger of Orascom VimpelCom is good for the two giants of telecom inPakistan as well as for Pakistan Economy. Lets see how the deal proceeds as for now the disputeis over the merger of Orascom Algeria Venture where the Algerian Government wants tonationalize it.Previous in April 2010, Orascom had talks with merger to MTN South African Telecom yetdeal did not proceed. 56 | P a g e 57. Mobilink is also planning for acquisition of Warid Telecom by 2011, which means gainingmarket share and subscribers as well have to compete at a larger extent with other competitors.The Strategies Mobilink should focus on are: Adopting Innovative Technology; mobile wallet and gift cards Product Development Global Expansion in Emerging Markets Market Development Concentrate on providing better and reliable service Market Penetration Concentrate on consumer retention and gaining market share Market and Product Development & Penetration Backward Integration over venders for reduction in infrastructure maintenance cost and other expenses. BIBLIOGRAPHY www.mobilinkgsm.com http://www.zumbeel.net/beta/news/details.php?rev_param=6874 http://www.zumbeel.net/beta/news/details.php?rev_param=6993 57 | P a g e 58. http://www.zumbeel.net/beta/news/details.php?rev_param=7039 http://www.zumbeel.net/beta/news/details.php?rev_param=7136 http://www.zumbeel.net/beta/news/details.php?rev_param=7160 www.orascomtelecom.com www.ufone.com www.telenor.com.pk www.zong.com.pk www.pta.gov.pk www.telecompk.com www.ntcpk.com 58 | P a g C h a p t e r 4 : R E C R U I T M E N T A N D S E L E C T I O N PROCESS: Mobilink Policies for Recruitment and Selection: Policies for Recruitment and Selection as experienced at Mobilinkare: Recruitment policy

Objectives: T h e p o l i c y i s m e a n t t o e n s u r e a n e f f e c t i v e a n d efficient method of recruitment and selection. It is aimed at hiringwithout any discrimination based on race, colour, sex, nationality,ancestry, religion or disability. Policy guidelines: The recruitment policy must comply with regulations set out bythe Government of Pakistan. 14

The Sources of recruitment for different job vacancies in PMCLshall include:Internal Advertisement.Databank.Advertising.Head hunters/executive search organizations.Walk in candidates.Colleges and Universities

a)External Recruitment: i . N o c a n d i d a t e u n d e r t h e a g e o f e i g h t e e n w i l l b e considered.i i . T o a v o i d c o n f l i c t o f i n t e r e s t , h i r i n g o f c l o s e r e l a t i o n s (brothers, sisters, spouses, first cousins, brothers/sisters inlaw) will not be encouraged. However candidates falling int hi s c at e go r y wh o h a ve ex c ept i o na l l y go od c re d ent i al s may be considered. Hiring supervisors will need to explainin their assessment of the candidate their qualities that justify hiring. A final decision will rest with the concernedDivisional Head who will need to ensure that there is noconflict of interest.i i i . H u m a n R e s o u r c e s w i l l a d v i s e D e p a r t m e n t H e a d s o n salary ranges to be o f f e r e d t o t h e a p p l i c a n t k e e p i n g internal and external equity in perspective.i v . M i n i m u m q u a l i f i c a t i o n s m u s t b e a B a c h e l o r d e g r e e o r equivalent. A-Level or equivalent may be considered forcall centre/support staff however will require approval of the VP Human Resources & Administration. Thi s cr i t e ri a do es n ot ap pl y t o t e ch ni c i ans / ri g ge rs an d ancillary staff. b) Int e rn al R e cr ui t m ent i.Internal candidates must be confirmed e m p l o y e e s o f Mobilink who have completed one year of service.However exceptionally good candidates m a y b e considered.i i . S e l e c t e d c a n d i d a t e s w i l l j o i n t h e n e w j o b / p o s i t i o n a f t e r getting clearance from existing line manager. 15

i i i . S p o u s e o f a n e x i s t i n g e m p l o y e e w i l l n o t w o r k f o r direct competition and either one will have to resign fromservice. Prospective candidates whose spouses work forcompetition will not be considered for hiring.i v . H i r i n g f r o m v e n d o r s , f r a n c h i s e s , a n d c l i e n t s i s n o t encouraged. E x c e p t i o n a l l y w h e r e o f f e r s a r e m a d e t o employees of these entities their prior consent must beobtained. General conditions for recruitment: Al l r e c rui t m e nt wi l l b e done through the Human Resources Department in consultationwith the Officers and Heads of the concerned Department.A n applicants knowledge, skill and aptitude related to thep o s i t i o n s h a l l b e j u d g e d a c c o r d i n g t o a r a n g e o f f a c t o r s including: a) Education (Academic / Professional). b) Experience. c) Profile and Psychometric Tests d) Interviews.

e) References. Application: Applicants may apply online by registering with the web based re c rui t m ent po rt al . H ow e ve r, wh en c on si d e r ed f or a sp ec i fi c pos i t i on, t h e y wi l l b e r equ i r e d t o fi l l t h e s t an d ar d ap pl i c at i on form of the Company.Al l ap pl i c at i o ns w i l l b e k ept o n HR da t a b as e fo r a p e ri o d of 6 months only. Conditions for selection: Departments must submit HiringR e q u e s t a n d / o r T r a n s f e r R e q u e s t F o r m t o t h e H R Department and duly signed.Information regarding qualifications and job description should be forwarded for identification of suitable candidates.L e a d - t i m e o f a t l e a s t t e n w o r k i n g d a y s s h o u l d b e g i v e n f o r selection of candidates.
How do we recruit?
The recruitment philosophy at Mobilink aims at recruiting the right talent for each role. Our hiring focus is a skilled and diverse workforce providing equal opportunities at all levels of the hierarchy. The recruitment sequence begins with an online application process. To apply now, click here. Every complete application becomes part of our online talent pool which is our primary source to meet our employment needs. Whenever a position becomes available that matches your profile, you will get an opportunity become a part of our recruitment process. Once short listed you are required to go through multi tiered interviews with line management and the human resources teams. You are kept in the loop on the outcome of the selection process in writing. If you are identified as the best fit for the role and upon satisfactory reference checks, an appointment letter follows. We encourage you to keep your online profile updated and visit the jobs portal frequently to stay abreast on the latest job openings at Mobilink.