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  • Yasir Ali Khan 03-298162-033

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    This document discusses the failure of Mobilink's DFOG project in Pakistan. The project aimed to boost sales through direct sales teams but lacked proper forecasting and goals. It offered fixed salaries without sales targets, resulting in high costs and low revenues. Free SIMs were distributed but failed to generate expected returns. Overstaffing further increased expenses and profits were insufficient to sustain the project in the long run. Biometric verification requirements also added unforeseen costs. The project was ultimately closed prematurely to minimize losses.

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    Yasir Ali Khan 03-298162-033

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    This document discusses the failure of Mobilink's DFOG project in Pakistan. The project aimed to boost sales through direct sales teams but lacked proper forecasting and goals. It offered fixed salaries without sales targets, resulting in high costs and low revenues. Free SIMs were distributed but failed to generate expected returns. Overstaffing further increased expenses and profits were insufficient to sustain the project in the long run. Biometric verification requirements also added unforeseen costs. The project was ultimately closed prematurely to minimize losses.

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    5 views4 pages

    Yasir Ali Khan 03-298162-033

    Uploaded by

    Yasir Ali Khan
    This document discusses the failure of Mobilink's DFOG project in Pakistan. The project aimed to boost sales through direct sales teams but lacked proper forecasting and goals. It offered fixed salaries without sales targets, resulting in high costs and low revenues. Free SIMs were distributed but failed to generate expected returns. Overstaffing further increased expenses and profits were insufficient to sustain the project in the long run. Biometric verification requirements also added unforeseen costs. The project was ultimately closed prematurely to minimize losses.

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    of 4

    YASIR ALI KHAN

    03-298162-033

    REASONS OF
    PROJECT FAILURE
    Mobilink (An Orascom Telecom company)

    Job Environment
    Mobilink is a mobile operator providing voice and data services across
    Pakistan.
    It has mainly two projects/divisions (Cellular Division, WiMAX Division).
    It has a franchise sales and customer care structure.
    DFOG (Direct Feet on Ground) means a work force that is on Mobilink
    payroll and responsible for direct sales apart from Distribution network.
    Project was introduced under the umbrella of Sales department to boost
    sales.
    Started of with six teams, Each team comprises of 10 members having
    one team lead.
    Each team was reported to team lead and all 6 team leads reports to 1
    ASM.
    They were offered with a fixed salary.

    Reasons of DFOG Project


    Failure
    Lack of Forecasting about sales generation with this project.
    Fixed salary but no fixed goals leads to replace the structure with commission
    structure.
    In Accurate Estimation about revenue v/s cost incurred on this project
    Un sustainable Commission Structure along with basic salary structure
    Scope and Area of Sales were conflicting with other stockholders (Like Franchisers)
    Free Sims given which eventually got dumped and fail to generate expected revenue.
    Over staffing lead to high cost of the project and low profit made it difficult to sustain
    Timeline of project was not defined so closed project immediately to minimize the
    loss.
    Lay offing the staff immediately and closing down of project badly hit the companys
    repute and market position.

    Reasons of Project Failure


    In terms of Cost
    Fixed salary resulted in high cost and low revenues
    No fixed target sale structure resulted in less target achievement
    Biometric Verification was enforced by the Govt. Authorities resulting in
    extra procurement of equipment, which added a cost to the overall
    project.
    Non verified sims got blocked resulting in decrease in revenues.
    Separate call center was established to reactivate blocked sims and
    recover the revenue lost due to blockage of non verified sims which added
    cost to the overall project.

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