INTERNSHIP REPORT ON

Ufone (Pak Telecom Mobile Limited)

M. Asad Riaz 9620

Internship Report submitted in partial fulfillment of the requirements For the degree of Master of Business Administration

At

National University of Modern Languages Islamabad, Pakistan February 2011

Copyright by Asad Riaz, 2011

NATIONAL UNIVERSITY OF MODERN LANGUAGES

Faculty of Information Technology & Management Sciences It is hereby certified that the report has been thoroughly and carefully read and recommended to the Faculty of Management Sciences for acceptance of Final Internship Report by Mr. Muhammad Asad Riaz, Roll No. 9620, Session Aug 2008 to June 2010(Morning), in partial fulfillment of the requirements for the degree of Masters of Business Administration of National University of Modern Languages Islamabad. Dated: March 02, 2011

Supervisor Name:

Supervisor Signature:

Panel Member Name:

Panel Member Signature:

Head of Department:

Dedication

Dedicated to my Parents, Teachers and Friends whose guidance

Enabled me

Achieving objectives in life, their Prays

Enlightened and paved the way to Success

Acknowledgement

Almighty Allah, the creator of universe and all creatures deserves praise and thanks WHO differentiated human beings from the rest of HIS creatures by imparting sense and knowledge to them by pen and taught him which he did not know. Countless Darood and Salaam on HIS chosen Prophet Muhammad (Peace Be Upon Him), the only source of light linking the humanity with his Creator. Book is the spring where from knowledge springs and Prophet Muhammad (Peace Be Upon Him) guided us to seek knowledge through it even if we have to go for it beyond the limits of visible universe. Knowledge is the source enabling us to differentiate between light and darkness. Light is the satisfaction of all kind and darkness is utter confusion and backwardness. Entire team of teachers of National University of Modern Languages and Sciences has made considerable contribution in imparting knowledge to the students of the said university. Besides curriculum special attention was given to build a student fruitful citizen replete with character and knowledge for which I offer them my whole hearted gratitudes.

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Executive Summary
Internship was my first step in practical life, through which I learnt a lot and it has aided me in being well equipped with valuable experience that would help me once I enter the professional life after the completion of my studies. This report gives a profile of Ufone and most importantly SWOT, PEST and HR analyses of Ufone. All of these critical analyses are performed with hard evidential data that, I had collected in my time as an intern at Ufone from the different department I had chance to work in, also I had help from internet, and previous researches on Ufone. I learned Ufone is working very hard to maximize its customers; it is providing new and exciting packages and customers services to attract and retain the customers. Ufone marketing and pricing strategies are very attractive and strong and it is very important in the market like Pakistan, where is the market very tough along with the uncertainty in the rules and regulations. And induction of new and new services by all the cellular companies in our market made the competition very tough. But Ufone is also launching new services day by day to attract customers and take the competitive advantage. Marketing strategies used by the Ufone have a very good impact on the users. Ufone is also trying for the best pricing strategies to attract more customers. This report also reflects my learning and experiences at Ufone along with my responsibilities and tasks that I performed. Last part of the report consists of some recommendations and suggestions that I have given. My proposal would great use to Ufone and if followed properly, it can increase the performance of employees and finally the performance of the organization itself.

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Table of Content Introduction ..............................................................................................................1

1.1 Company Profile ................................................................................................................................. 2 1.2. Products or Services Offered ............................................................................................................. 3 1.2.1. Ufone Prepay .............................................................................................................................. 3 1.2.2. Ufone Postpay ............................................................................................................................. 3 1.2.3. Ufone for Everyone..................................................................................................................... 3 1.2.4. U-Circle....................................................................................................................................... 4 1.2.5. U Share........................................................................................................................................ 4 1.2.6. Mobile Number Portability ......................................................................................................... 4 1.3. Organizational Structure .................................................................................................................... 4 1.3.1. Finance Department .................................................................................................................... 6 1.3.1.1. CNC ......................................................................................................................................... 6 1.3.1.2. Budgeting and Planning ........................................................................................................... 6 1.3.1.3. Accounts .................................................................................................................................. 6 1.3.1.4. Revenue Assurance .................................................................................................................. 6 1.3.2. Marketing Department ................................................................................................................ 7 1.3.2.1. Brands ...................................................................................................................................... 7 1.3.2.2. Marketing Strategy and Analysis ............................................................................................. 7 1.3.2.3. VAS Value Added Services .................................................................................................. 7 1.3.3. Information Technology Department .......................................................................................... 8 1.3.3.1. Billing ...................................................................................................................................... 8 1.3.3.2. IT Development ....................................................................................................................... 8 1.3.4. Customer Operations Department ............................................................................................... 8 1.3.5. Engineering Department ........................................................................................................... 10 1.3.6. Sales Department ...................................................................................................................... 11 1.3.7. Human Resource Department ................................................................................................... 12

Critical Analysis .....................................................................................................16

2.1. SWOT Analysis ............................................................................................................................... 16 2.1.1. Strengths ................................................................................................................................... 16 2.1.2. Weaknesses ............................................................................................................................... 18 iv

2.1.3. Opportunities............................................................................................................................. 19 2.1.4. Threats....................................................................................................................................... 20 2.2. Pest Analysis .................................................................................................................................... 21 2.2.1. Environmental analysis ............................................................................................................. 21 2.2.1.1. Consumer packages................................................................................................................ 22 2.2.2. Growth rate of entire industry ................................................................................................... 23 2.2.3. Social and political analysis ...................................................................................................... 23 2.2.4. Political Analysis ...................................................................................................................... 25 2.2.5. Technolgical Analysis ............................................................................................................... 26 2.2.6. Economic Analysis ................................................................................................................... 27 2.2.7. Social Environment ................................................................................................................... 28 2.3. Human resource analysis ................................................................................................................. 28 2.3.1. Recruitment & Selection ........................................................................................................... 28 2.3.2. Training & Development .......................................................................................................... 31 2.3.3. Performance Appraisal .............................................................................................................. 32 2.3.4. Compensation & Benefits ......................................................................................................... 34

Internship Experience ...........................................................................................36

3.1. Internship Experience ...................................................................................................................... 37 3.1.1. Week 1 ...................................................................................................................................... 38 3.1.2. Week 2 ...................................................................................................................................... 38 3.1.3. Week 3 & 4 ............................................................................................................................... 38 3.1.4. Week 5 ...................................................................................................................................... 39 3.1.5. Week 6 ...................................................................................................................................... 40 3.1.6. Week 7 & 8 ............................................................................................................................... 40

Recommendations and conclusion .......................................................................41

4.1. Recommendations ............................................................................................................................ 42 4.2. Conclusion ....................................................................................................................................... 43

References ...............................................................................................................45

Chapter 1

Introduction

1.1 Company Profile

Pakistan Telecom Mobile Ltd, operating under the brand name of Ufone a wholly-owned subsidiary of PTCL commenced its operations on 29th January 2001 as a GSM 900 service provider. Since the outset it has expanded its coverage and customer base at a rapid pace and established itself as one of the leading cellular service providers in Pakistan. Ufone is now considered to be one of the most active, aggressive and innovative players in the mobile sector of Pakistan. The growth of cellular sector in Pakistan can also be attributable to good governance and conducive policies of the government of Pakistan In connection with that in April 2006 Emirates Telecommunication Corporation, which is commonly known as Etisalat, has assumed management control of Pakistan Telecommunication Corporation Ltd part of the $2.6bn deal to buy a 26% stake. The successful privatization of PTCL, and consequently Ufone, is hailed as ushering in a new era for telecommunications in Pakistan. As mobile users in the country have reached 88 million at a very rapid pace, Ufone has a subscriber base of nearly 17.5 million and a market share of nearly 21%. Ufone has seen a subscriber growth of over 10 million since July 2007 onto its network. Subsequently the growth in subscriber base caused a healthy trend in its revenues and margins. Ufone has always played a pivotal role in the development of cellular market in Pakistan. For most part it has been a step ahead in introducing innovative products to the market. Ufone was pioneer in launching the GPRS services and Multi-media Messaging Service (MMS) in Pakistan, including the lead in introducing GPRS international roaming and prepaid international roaming for these services in the Pakistani market. Currently Ufone has expanded its product portfolio to include Black Berry handsets and providing one of the largest EDGE networks in the country today. Ufone understands the need to communicate effectively and efficiently at all levels of society, which is why various products are catering for the needs of
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the Pakistan corporate market. It offers services such as mobile office, Virtual Private Network (VPN), and a lot more to revolutionized communication. Ufone provides International Roaming facility with more than 215 international operators across 124 countries. Ufone has GPRS roaming agreements with more than 100 international operators and also provides prepaid roaming facility to more than 15 destinations across the country.

1.2. Products or Services Offered

Ufone understands the value of words and the need to communicate effectively and efficiently at all levels of society, which is why companys primary focus is on U. Ufone offers, Prepay & Postpay services in the Telecom sector.

1.2.1. Ufone Prepay

Ufone prepay is the product segmented for the youngsters. They are segmented on the basis of their age and status. They recharge through the prepaid cards whenever they feel comfortable to load the cards.

1.2.2. Ufone Postpay

Ufone Postpay is created for the executives and business class people, who require making callswithin the country or internationally for the business purposes. Business executives enjoy the benefits and value added services connected with Postpay product of Ufone

1.2.3. Ufone for Everyone

The telecom markets growing rate in Pakistan is higher than any Asian country. Ufone offers lower rates and better network then other already established cellular companies. All living standards have been captured by Ufone, like Students, Labor and Businessmen, etc. Ufone aims

to provide with wider coverage, superior connectivity, clear signals & voice quality to their valued customers.

1.2.4. U-Circle
Prepay provides an easy way to call Friends & Family. Ufone is making it easy for its consumers to call friends & family with U Circle. Now the consumers can talk more for less with the most economical rates to call their Ufone Circle.

1.2.5. U Share
Ufone Prepay customers can now share their balance with each other through a simple SMS in 3 easy steps.

1.2.6. Mobile Number Portability

Ufone welcomes consumers to bring their mobile number to the best service. Through Mobile Number Portability (MNP), mobile phone subscribers can retain their mobile phone numbers when they change mobile operators. Therefore a 0300-xxxxxx or 0345-xxxxxxx can be a Ufone customer in the MNP regime.

1.3. Organizational Structure

The organizational Structure at Ufone is Lean or Horizontal structure. One of the organizational functions of Ufone in relation to its hierarchy is, the company is having Decentralized structure. The flow of communication becomes easy and simple in such structure. It is divided into different departments and every department has its head and all are interconnected.

The concept of Departmentalization is effectively in practice at Ufone. There are different departments which are working within their functional units to contribute towards the success of organization and to achieve the overall goal of the Organization. Ufone has 8 departments that are working efficiently and all are interacting with each other to make it a much better company by satisfying its customers demand. The structure of Ufone comprises of Board of directors who are being reported by CEO, Chief Executive Officer. CEO is a great supervision to the 8 Major operations of the company. These operations are divided into departments that are:

1.3.1. Finance Department

The head of finance department is designated as CFO Chief Financial Officer or Vice president of financial head. There are further 4 subheads in Finance Department:

1.3.1.1. CNC
The department is responsible for Credit exposure for Ufone postpaid connection. The department maintains the record of all postpaid subscribers in order to ensure the subscribers validity.
1.3.1.2. Budgeting and Planning

The department is working over the budgets, the planning of budget and its reports to the authorities. This head provides the annual budget to be spent. The function of this head is also to forecast any opportunities or threats towards the organization. The reporting of the budget is being done on the monthly basis to the head of financial officer to keep the record of the budgets. Relationship with banks are also being maintained in order to get help in the need time.
1.3.1.3. Accounts

The accounting head is responsible for the book keeping of the records. The internal audits are done to ensure the stream lined working of the processes as well as external audit by the Accountancy firms.
1.3.1.4. Revenue Assurance

There are Revenue Assurance policies & procedures being made by the personnel. This assurance head also Liaise with other departments, obtain, analyze and reconcile reports to ensure prevention of revenue leakage. The sub-head also ensure error free billing operations, deployment of key revenue assurance applications/solutions, fraud management.
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1.3.2. Marketing Department

The head of marketing department is designated as CMO- Chief Marketing Officer or Vice President of Marketing Head. The department has further 3 subheads working in specialized manner according to the skills and abilities of the employees.
1.3.2.1. Brands

There are basically two products of the Ufone which serves as the brands of the company. This sub-head is responsible for the execution of the Brand Activities. Ufone is performing the promotional activities in Brands sub-head, including advertising over Electronic media and print media. The promotional strategies are made by the sub-head to get the implementation.
1.3.2.2. Marketing Strategy and Analysis

The sub-head is working in order to formularize the marketing strategy according to the market requirement and consumer preferences. The analysis about the market trend is done and the strategies are made in relevance. Moreover, competitors are biggest source of reacting towards the marketing activities. Ufone is having a proactive marketing concept in context of competition.
1.3.2.3. VAS Value Added Services

VAS sub-head is responsible for proficient functioning of conveniences provided to the customers, these VAS are Virtual Private Network, Call Management, Missed Call Notification, Phonebook Saver and a host of Infotainment and Entertainment services.

1.3.3. Information Technology Department

While being a part of information technology and telecommunications, Ufone is having a major department of Information technology. The head of information technology is termed as CIOChief Information officers. IT department is working with the division of further 2 sub-heads.
1.3.3.1. Billing

The billing department is responsible for aggregating CDRs and preparation of the postpaid billing for customer from system.
1.3.3.2. IT Development

Any kind of IT development required by the company in billing or CRM (Customer Relationship Management) module is done by IT development team.

1.3.4. Customer Operations Department

Ufone provides customer care through Customer Care Center located in all key cities, across the country. Ufones customer care representatives are more helpful. They will not only resolve Consumers issues but also guide them into customizing Ufone, according to their needs. 1.3.4.1. Call Centre Cal centre representatives are providing services, 24 hours a day. The customers can contact the Ufone Call Center to get answers to all their queries. Some of them include: Bill enquiry (credit limit, expiry date etc.) Reporting of lost phone Number blocking in case of lost or stolen SIMs Connection status (active / inactive)
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Tariff Products information Ufone Sales & Service Center information Nearest dealer information Ufone coverage areas Emergency number information International roaming information Value added services information Missed call alerts Call forwarding Conference call FNF Activation / Changes Post Pay Reward Redemption

1.3.4.2. Business Centre The business centre of Ufone are offering various services to their customers, they are basically company owned centre, the business centre offers the SIM issuance and other customer related issues, retention of customers and handling requests for Mobile number portability. 1.3.4.3. Govt. Relations PTA Pakistan Telecom Authority is the regulatory authority in Pakistan concerning the network operators as well as telecommunication practices. Ufone is also abiding the rules that are being made by PTA. The relationship with PTA is also being maintained as PTA is Govt. regulation.
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1.3.5. Engineering Department

The engineering department is Backbone of the company. The head of the department is termed as CTO - Chief Technical Officers or Vice president. The Engineering department is divided into 4 sub-heads 1.3.5.1. BSS Business Support System The subhead is responsible for Radio Planning and network optimization. 1.3.5.2. NSS Network Switching Subsystem The Network Switching Subsystem, at Ufone refers to as the GSM core network, usually refers to the circuit-switched core network, which is being used by Ufone GSM services such as voice calls, SMS, and Circuit Switched Data calls. There is also an overlay architecture on the GSM core network to provide packet-switched data services and is known as the GPRS core network. This allows mobile phones to have access to services such as WAP, MMS, and Internet access. All mobile phones manufactured today have both circuit and packet based services, so Ufone as a network Operator that is having a GPRS network in addition to the standard GSM core network. 1.3.5.3. IN Intelligence Network The Intelligent networks main purpose is to take care of charging of prepaid customers and has the balance updates of each of the customer.

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1.3.6. Sales Department

The sales department at Ufone is headed by Vice president Sales. The department is being divided into 3 main sub-heads. 1.3.6.1. Corporate Sales The division of the sales department is handling the sales for executives or corporate clients. These clients are having postpaid products with billing system. 1.3.6.2. Franchises & Retail Outlets This division is handling franchises and retail outlets with a network of more than 365 franchises and 25 company-owned customer service centers along with a distribution network of 150,000 outlets nationwide. 1.3.6.3. Sales operations Sales operations at the company have been set up to provide the customers, quality services all under one roof so consumers can walk in to any Ufone Sales & Service Center for services like: Mobile Number Portability Connection purchase Bill payment SIM Activation Number blocking in case of lost or stolen SIMs Transfer of subscription Changing access levels Number change
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Address change SIM replacement Product / package change Activation of VAS Connection closure Handset & other mobile accessories PIN / PUK code number inquiry GPRS IR activation Missed Call Notification Call Forwarding Conference Call FNF Activation / Changes Post Pay Reward Redemption

1.3.7. Human Resource Department

Human Resource department is being headed by the HR executive designated as Chief of Human resource department. Ufone focuses a lot on its HR department and for that the HR manager ensures: Collaborative and mutually supportive work environment is created that encourages people to grow. Team of professionals is built which delivers expertise by participating in business decisions.
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Performance Management and Reward Systems are developed which underlies the Business strategy of Ufone.

A clearly defined Recruitment & Selection policy is defined. The need for Training & Development of employees is assessed. Compensation & Benefit plan is developed which ensures that employees are motivated. Right systems are placed to encourage people to develop to their full potential.

The department is working for the personnel in the organization. There are 3 main sub-heads in the department. 1.3.7.1. Recruitment and Compensation Benefits Ufone has this policy of not mentioning the name of the company in a job advertisement. Usually hiring takes place through outsourcing with a help of a third party. Final selection takes place after the candidate has been interviewed by the Manager of the department who requires the new employee and then the HR Manager. A very effective way to retain an employee is to give him compensation and benefits. At Ufone following benefits are given: Medical Facility to employee and his/her parents and Paid Vacations, Gratuity, Provident fund etc. 1.3.7.2. Training Training & Development involves improving the knowledge, skills and abilities of the individuals. A continuous training is conducted inside Ufone to improve the performance of the employee. There are two types of trainings conducted at Ufone: In-house Training and External Training.

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1.3.7.3. HR Operations HR operations at Ufone include the working over all Human resource Functions that are Orientation Human Resource Planning HR hiring / recruitment Selection Process Compensation and benefits Training and Development Human Resource Information system

1.3.7.4. Strategic Planning Department This department directly reports to Chief Executive officer. Ufone views strategy as an overall approach and plan. This department monitors the executions of strategic plans and goals across the business. So, Strategic Planning at company is the overall Planning that facilitates the good management of a process. Ufone strategic planning is providing the big picture of companys operations and long term goals. Forecasting the opportunities Building Synergies Long-term Planning

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Chapter 2 Critical Analysis

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Critical Analysis
A critical analysis is the results of a very careful, detailed evaluation. Companies often use a critical analysis to find out if someone is working to their full potential.

2.1. SWOT Analysis

The factors that are most important to the organizations future are referred to as strategic factors, and summarized with the acronym S.W.O.T., standing for strengths, weaknesses, opportunities, and threats. After identifying strategic factors, management evaluates their interaction and determines the appropriateness of the corporate mission. The first step in the formulation of strategy is statement of mission, which leads to determination of objectives, strategies, and policies. Organizations implement these strategies and policies through programs, budgets, and procedures. Finally performance evaluation and feedback ensure adequate control of organizational activities. SWOT Analysis of Ufone;

2.1.1. Strengths
Following are the vital strengths of Ufone: Strong Brand name Exponential growth Favorable policies Second largest cellular company in Pakistan Access to infrastructure-network and satellite links Ufone is an acknowledged as market leader of all the companies of its kin

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 Government backing a lot when come to a new entrance to the industry as it has done in Ufone case They have the latest technology as compared to any other mobile company As government is backing them they can get as many fund as required by them to introduce the new technology Marketing intelligence teams: Ufone has got marketing intelligence teams which continuously monitor the strategies adopted by the competitors and devise the strategies for Ufone accordingly so that Ufone can keep up with the ever changing market place. Unlocked Blackberries: Ufone has recently launched its blackberry and it is the second cellular service providers after Mobilink to offer blackberries however Ufone has the edge of offering unlocked Blackberry which enables the clients to use any network sim on their Blackberry. Also, the Ufone Blackberry is less expensive. Number Portability: Ufone has the highest number of intake in terms of the customers shifting from other services providing number portability facility. Corporate Clients: Corporate clients help Ufone earn huge revenue therefore they are a major strength for the company. Also, the mobile number portability has enables Ufone to add to new

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clients to its existing corporate clients such as Air Blue and Fauji Fertilizers which shows the credibility and trust of clients in Ufone services and packages. Associations with MCB and ABN-AMRO The association of Ufone with MCB and ABN-AMRO help Ufone to facilitate its customers and gain a competitive edge. The company has hired well qualified and able employees in all its departments. The services of Ufone are wide spread such that you can see many small outlets in every market area.

2.1.2. Weaknesses
Following weaknesses are identified in Ufone: Low revenue per user Ufone has less professionalism within the organizational members. Large organization structure Ufone has pathetic billing system for post paid connections Less concentration on post- paid connections. Less numbers of Customer care units and Franchises in the country. Signals problems Reactive Approach Ufone offers a number of packages however during its entire history the company has usually followed the policy of imitating other companies packages and adding a little bit of variation instead of coming up with entirely different packages.
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Internal politics At Ufone many cases of leg pulling and unsatisfactory working environment are reported.

2.1.3. Opportunities
Ufone has the following opportunities: Network all around Pakistan Adaptation of newest technology. This company has faster market growth. Ufone has opportunity that it is pioneer in southern Punjab where it can promote itself and become market leader Reduced Prices: Currently the rates offered by Ufone are higher than some of its competitors and the hidden charges make the packages expensive so Ufone can work on its prices. New Packages: Apart from the current packages offered by Ufone, a number of new packages with different features may be floated. Besides they can give new offers such as credit transfer between different services e.g. Ufone to Telenor or Ufone to Mobilink etc. Research and development: There is a possibility that Ufone may invest in research and come up with some new technology that is not being offered by the current cellular service providers of Pakistan. Diversification:
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With the advancements in technology, Ufone has the opportunity of diversifying its operations and entering into areas such as internet services etc.

2.1.4. Threats
Following are some of the threats High tax rates Competition Increase in imported equipment cost New Entrants: With the current market conditions and the dynamicity if the environment the opportunity for more and more companies to enter into the telecom industry has increased. The entry of these new companies can pose a threat to Ufone since they might lose their valuable customers to these companies. Counter Attacks: In all industries including telecom the rate at which people switch from one job to another is very high and this opens the room for counter attacks as people who switch from one company to another have an insight into their plans and they often leak these plans to the company to which they switch. Reduced Market Share: With the entry of new companies and the improvements of the current services, the choices available to customers are innumerable therefore it is very difficult to retain customers. This fact along with Telenor emerging in telecom scene poses a threat to the
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market share and position of Ufone. Currently at 39.2% and second in the market, Ufone might move to number three. Changing Trends in Industry: With the changing environment and the increased level of competition, the trend of mergers and acquisitions is rising. It might be possible that the weak players in the cellular service industry merge with the strong players which will again pose threat to the existence of Ufone until and unless an aggressive approach is undertaken.

2.2. Pest Analysis

PEST analysis stands for "Political, Economic, Social, and Technological analysis" and describes a framework of macro-environmental factors used in the environmental scanning component of strategic management.

2.2.1. Environmental analysis

Major product lines market segment Mobile industry has been introducing new and innovative products and service over the years. The major project lines can be segmented into, three categories, which are as follows: Consumer packages Value added services Corporate packages and services

These product lines have a range of different series, catering to different market segment.

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2.2.1.1. Consumer packages

The consumer packages of the mobile industry include the prepaid and the post paid packages being provided by the different cellular providers of Pakistan. Prepaid packages, due to their nature is the most common type of package being used by millions of Pakistani. Prepaid packages provide a sense of affordability, whereby consumers have the option of only recharging their accounts, when needed. This affordability have led to a massive increase in the prepaid subscriber base, with everyone from housewives to teenagers; to electricians to small shop owners all using prepaid packages. The main user segments of prepaid packages include the lower, middle and middle upper class of the country. Furthermore, a number of people use prepaid packages as a second number, which also include people from the upper class. 2.2.1.2. Value added services Value added service have become an essential tool for generating revenue for mobile company today. Starting in the early years, from wallpapers and ringtones downloads, today mobile company provide a range of service to their customers. Some of the popular services include, religion services, music services, which include songs dedication, voice and timed messages, sports services, food and recipes services, WAP/GPRS/EDGE, themes, wallpapers, games, and ringtones downloads, credit share, mms, voice mail, e-mail, missed call alert , conference call, mobile T.V., web 2 sms and many more. Value added services have been designed by companies, so that there are services for every segment of their users and that these services completely satify them, as and when needed.

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2.2.1.3. Corporate packages and services Cellular providers in Pakistan are also providing corporate clients with services catered to them. Corporate clients due to their huge operation have special requirements. Mobile packages and tariffs, secure e-mail and instant web connectivity, being some of the most important issues. Today mobile companies provide blackberry solutions, Mobilink and Warid being forefront in this technology, furthermore to add to this innovative service, companies today are providing sms marketing features, sms management facility, fax mail, wireless connectivity through EDGE, private numbering plans, closed user groups and mobile e-mail to their corporate clients. All above features and many more have helped corporate clients to manage their operations effectively and efficiently.

2.2.2. Growth rate of entire industry

The mobile industry has seen phenomenal growth over the years. Today there are five major competitors competing for their subscribers as, increasing the services provided, reducing their call rates and having aggressive marketing campaigns. Simply put, competition is heating up in the mobile industry.

2.2.3. Social and political analysis

Currently, telecom sector is regarded as a sector where local and foreign investment rate has been highest. During last two years higher growth of this sector has set the course for a profitable business for investors and perpetual convenience for consumers. With the coming of new companies in this sector consumers are enjoying more facilities and accessibility. The cellular mobile subscribers are continually soaring and it has reached 95 million with 48.7 percent

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penetration. Overall tendency of the country has jumped to 35.8 percent in 2007 from the mere 2.8 percent in 2001. There are five companies operating in Pakistan now Mobilink At the top is Mobilink, the Pakistani unit of Egypt-based telecom company Orascom. It has been in Pakistan since 1994. With 19.2 million subscribers it has the largest market share. Its shares are listed on the Egyptian and London stock markets as GDRs. My next post will focus entirely on Orascom and its performance. Ufone Ufone, a wholly owned subsidiary of Pakistan Telecommunication Co. Ltd (PTCL), is now under the control of Etisalat group of UAE. With 8.4 million subscribers it is the runner up. For those in Pakistan it is the one company where they can easily invest locally. Ufone is struggling very much to reach the mark. Warid Warid, owned by the Abu Dhabi group of the United Arab Emirates and sister of Wateen group is number 3 with 5.6 million subscribers that is 14% market of subscribers. Telenor Norways Telenor, a recent entrant with about a billion US dollar investment in Pakistan has been doing well, based on its recent earning report. It has about 4.26 million subscribers or 11% of the market. Telenor stock is listed in the Oslo stock market (TEL) and NASDAQ NY (TELN).

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 Zong Paktel was owned by Millicom International Cellular (listed in NASDAQ as MIC) at the time of writing of this post. (Later it was acquired by China Mobile)It has 3% of the subscriber share in Pakistan. After acquired by China Mobile its name was changed. Now its called as ZONG.

With subscriber numbers increasing every day and mobile penetration increasing every month, mobile cellular sector of Pakistan is likely to cross all estimates. The timely launch of Telenor and Warid, expansion of Mobilinks network on monthly basis, renewal of Instaphone license, Privatization of Ufone's parent company PTCL, launch of Paktel GSM and its privatization and reduction in government taxes and handset prices are all right ingredients for best possible growth patterns any mobile sector can have. According to estimates made by BMI research for Pakistan mobile market, there would be more than 62 million mobile subscribers by December, 2009. Pakistan Telecommunication Authority is making all efforts for the healthy growth of telecom industry. Special interest is, however, given to mobile segment where attempts are made to create win-win scenario, in which consumers get cheaper access, operators grow their business and government benefits from increased tax revenues. All this would help achieve one of the main objectives of regulator.

2.2.4. Political Analysis

The sector exhibited slow growth than year before. Cellular Mobile teledensity jumped from 39% in 2006-07 to 54.7% in 2007-08. Collective Revenues of the sector have grown by 35% in the year 2007- 08 against a record growth of 48% in the year 2006-07. Cellular subscribers grew by about 40% in the year 200708, as against 82% in 2006 -07 and more than 100% during 200506. Main reason for its slow growth could be the rising inflation which affects the affordability,

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higher taxes, saturation of the urban markets and low tariffs. Regulator remained vigilant in resolving all sector related issues. In collaboration with NADRA and mobile operators, PTA has devised a comprehensive mechanism to verify the SIMS. It was observed that approximately 7 million SIMS have not been registered properly who were warned by PTA and operators were directed to register immediately otherwise face disconnection. PTA launched a media campaign in this regard along with strong warning has been issued to unregistered user if they failed to register their connections, it will be blocked. Besides, PTA ordered closure of various Franchises who were not implementing the proper procedure for issuance of cellular mobile SIMs. PTA continued its IMEI system where it blocked number of mobile handsets stolen or reported theft by users.

2.2.5. Technological Analysis

Pakistan may be categorized among those Asian economies which have partially privatized the state owned telecom sector while deferring the introduction of full scale competition to a future time. Now that the competition has been introduced in the telecom sector some very positive impact have been observed on the growth of the sector in a short span of time which is expected to continue to grow for at least next five years if the daring investors influx continue as in the last 3 years. The growth of Pakistan telecom sector with the usage of technology can be seen in the sectors of Mobile Sector Fixed Line Sector Wireless Local Loop Sector
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Payphone Services Internet Services

The recent focus of the industry is the proliferation of broadband services at affordable rates throughout the nation. The latest technology of 3G mobile communications (mobile broadband) has been earmarked and PTA will soon be inviting applications for 3G spectrum auction. This technology will increase operating capacity and revenues by using HSPA technology; at the same time it will also provide superior and high speed broadband services, video telephony, internet, video streaming, high quality mobile TV and a number of value added services.

2.2.6. Economic Analysis

With annual growth around 100% for some years now, the mobile telephone market in Pakistan has been experiencing a period of strong and sustained development. However, Pakistan is suffering important economic turbulences which will have a direct impact on foreign operators in the country. Some of the reasons are: The decline in Rupee value against the US Dollar, the decrease in the interconnect charges and lower priced tariffs have resulted in an overall decrease of ARPU in US Dollar terms. The ongoing economic and political turmoil along with the worsening of security conditions in Pakistan have caused an increased outflow of capital from the country, causing the Rupee value to decline a further 13% against US Dollar in the third quarter.

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2.2.7. Social Environment

Cellular industry growth rate in Pakistan is very high and this can raise people communication level, their standards, life style and causes an overall positive impact on them. The official literacy rate in Pakistan is 40%. People get latest and quick information about different fields of life which enhances the persons knowledge and make people updated with latest issues.

2.3. Human resource analysis

2.3.1. Recruitment & Selection
Recruitment is the process of gathering a pool of candidates for an organizational vacancy. Selection is the process of short listing only the qualified candidates who are fit for the job. In terms of recruitment and selection it is important to consider carrying out a thorough job analysis to determine the level of skills/technical abilities, competencies, flexibility of the employee required etc. And HR at Ufone follows these criteria. Ufone policy of recruitment is very simple, if at any time there is a vacancy, due to retirement, resignation, if employees opted for the golden handshake or the death of an employee, the management of the branch will inform the head office about the vacancy. The head office will place an advertisement in all major newspaper with the all necessary information required to be furnished by the applicant. Ufone has this policy of not mentioning the name of the company in a job advertisement. Usually hiring takes place through outsourcing with a help of a third party. Ufone mostly hires employees through Pioneer Services and Sydiat Haider Associates. Final selection takes place after the candidate has been interviewed by the Manager of the department who requires the new employee and then the HR Manager.

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On the joining day, the employee has to submit the following documents to the HR Department: Joining Report Copies of educational and professional degrees/certificates Reference Letter Three copies of recent passport size photographs

Before recruiting a new employee, management checks whether there is a need to hire a new employee for that particular job or whether it can be incorporated into an existing employees job. Recruitment in Ufone may be of internal or external nature.

2.3.1.1 Internal Recruitment

In the case of internal recruitment people from within the organization are promoted to fill the vacant vacancy. The HR department and the relevant department in which the vacancy exists, analyze whether there an employee within the organization exists, who most appropriately meets the requirements of the particular vacancy. If more than one employee is eligible for the vacancy; then that employee is chosen who has the most outstanding record. After the promotion the employee may be sent for further training. The effect of internal vacancy is that it motivates the employee to perform their best and produce maximum output. It also creates a healthy competition amongst the employees. The hiring from within may have a trickledown effect i.e. the opportunities spring not just from the first vacancy but from the vacancy created when a person in the company fills that vacancy.

2.3.1.2. External Recruitment If the organization feels that none of their current employees can fill out the new vacancy then they hire from external sources. In this case the human resource management considers other departments in the organization that might be interested in the appointment in order to make it a

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joint effort. They talk to relevant supervisors and especially to the people the new person will work with. A set of expert panelists is then selected from each relevant department to interview applicants. 2.3.1.3. Direct Applicants Ufone maintains a data base system i.e. HRMS (Human resource management system) for its internal employees as well as the employees which they will recruit in near future. In some case certain some people just drop their CVs at the head office. And whenever there is an opening or a vacancy occurs, the organization may call them for an interview. 2.3.1.4. Referrals By advertising a post internally Ufone gains an added benefit, which is; the current employees may pass the information on to any interested friends and relations. Word of mouth is also a valuable recruitment method for them and they draw on all appropriate contacts they have. 2.3.1.5. Advertisements Since most of the posts are of a specialist nature, they intend on advertising in the journals of professional bodies and the trade press. Their next step is to find out how much adverts cost for varying amount of space and decide what they can afford. The HR management has hired the services of Interflow, an advertising agency, to propagate their service and company for them. They are also using the services of a web designer, Eveready media, to post the advertisement of the company on the Internet.

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2.3.1.6 .Private Employment Agency The private Recruiting agencies collect information from unemployed as well as employed people about their skills and experiences. These agencies attempt to find someone suitable using its computerized inventory database of suitable individuals. These agencies charge Ufone for the referrals. 2.3.1.7. Through Vendors (Outsourcing) Ufone also do outsourcing for the purpose of recruitment they hire firm, which will provide employee Ufone to work in the organization, but the employee will remain employee of that firm not Ufone, and this is the most common method followed by most of organization these days. Lower management at Ufone is comes through outsourcing.

2.3.2. Training & Development

Training is the organized procedure by which people learn knowledge and/or skills for a definite purpose. Almost every employee hired by an organization will require some training in his or her job. Some training programs may be more extensive than others, but all require the trainer to have identified content and subject matter needed in the training and tasks to be performed on the job to ensure that the training will prepare individuals to perform the job effectively. Training policy at Ufone is very good as they buy the need of it and provides training to all the employees irrespective of their status. Training is provided at all stages to the employees so that they came to know about their future goals settings. The HR manager suggests training policy after doing the performance evaluation. The training policy is done according to the employee needs; these can be on the job training and off the job training.

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HR team of training and development make a performance evaluation of all the employees and the see where the gap occurs between the actual performance and the desired performance. Then training is designed for area which needs to be improved. On the job and off the job both the trainings are given according to the need of the employee. Training & Development involves improving the knowledge, skills and abilities of the individuals. A continuous training is conducted inside Ufone to improve the performance of the employee. There are two types of trainings conducted at Ufone: In-house Training: In-house training is customized training which is only for Ufone employees. External Training: External training is carried out through trainers in training institutes.

2.3.2.1. Training Evaluation Method There are different methods of training evaluation that are practiced at Ufone. Following are the methods of evaluation Post-training test Post training survey Post training performance evaluation

This evaluation identifies the effectiveness of the training; it also leads to explore future training needs. On the basis of post training evaluation the design off training is made in future.

2.3.3. Performance Appraisal

Performance evaluation is a process in which the performance of an employee is observed, that if it is up to the standards or below the standards set by the organization. At Ufone performance is evaluated on the basis of following
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Goals Objectives Benchmark

Ufone is at very high scale in evaluating the performance of their employees because of integrated system. They are using tailored made software to achieve this purpose. Every employee organization wide is allotted a user name and password (objectives and goals are defined for each employee) and their productivity is monitored with the help of intranet. HR department is also responsible for conducting performance evaluation process. supervisor evaluates the performance of subordinates at Ufone. UFONE having 6-month objectives then evaluation would be done by mutual understanding of both employees and line manager. 2.3.3.1. Process of performance appraisal in UFONE The Performance appraisal system used by UFONE for reviewing the performance status of its employee starts with identifying specific appraisal goals set by each Group for each cadre. After this a detail job analysis is done with looking in account the job expectation and then matching the actual performance with the desired performance. Afterward the performance is appraised according to the set standards and this appraisal is not done by the supervisor alone, their major focus is on taking into the account the employees perspective as well. Therefore whenever the appraisal is done employee is fully participative in the process. Immediate

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2.3.3.2. Performance Appraisal Method Use by UFONE UFONE is using 180-Degree Performance Appraisal Method. Within this method, managers, peers, customers or colleagues are asked to complete questionnaire on the employee being assessed. In UFONE, performance of an employee is appraises twice a year. Once in June while other in December. In the questionnaire there are five sections and in each section there are five questions related to the performance of employee. There are total 100 points from which an employee gets.

2.3.4. Compensation & Benefits

Compensation strategies are usually market based and is linked with the performance with a greater emphasis on variable pay. Salary adjustment is based on the performance, market movement and internal/ external equity adjustment. Revision of compensation is based on total pay and monetization of benefits. A very effective way to retain an employee is to give him compensation and benefits. At Ufone following benefits are given: Medical Gratuity fund Incentives Bonuses Recognition Appreciation

Compensation and benefits are very important for any employee. If they are given properly and according to the market rate then the employee will be motivated and hell try to give his best. At
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Ufone compensation system is designed with the help of job evaluation. For making the compensation they are using both point and rank methods according to the wage survey for benchmark jobs. And for unique positions they have crafted their own formula. They are offering Minimum wage Overtime Equal employment opportunities (in terms of equal pay without discriminating against sex or race) Merit pay (payment based on performance) Individual incentives (reward for individual performance that can be earned and re-earned) Profit sharing (focuses on individual employee) They gave these plans on the task basis other than the organizational incentive plans.

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Chapter 3

Internship Experience

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3.1. Internship Experience

I am the student of MBA and I have worked with Ufone as an internee that located in F-7 markaz, Islamabad. Through this internship I have learn so many new methods that can only be learned in practical situations. Before that I have only theoretical knowledge about the organizations environment and know how organizations work and achieve their objectives and goals as well. This internship has to give me the understanding of business and also about the elements of strategic thinking; planning and implementation are applied in a real world environment. Following were the objectives that I have in my mind before working as an internee; To improve communication skills To analyze the business situation To learn about the customer behavior To make quick decisions in real situations To establish high standard of professionalism To learn more than the theoretical knowledge To apply theoretical knowledge in actual organization To improve my interpersonal skills To compare the practical aspects with theoretical aspects To learn how to manage and to conduct research in business area To learn about the organizational structure in Pakistani companies To promote my personal knowledge and professional preparation for future To get knowledge of opportunities and threats while entering into an organization

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To get exposure to do a work in an organization and also know about organizational behaviors, ethics and regulations.

3.1.1. Week 1
My first day at Ufone, I was told to meet Mr. Ishaq, CSR officer. He gave me an orientation about what will I be doing in time of internship. In the first week I was assigned to customer care section, I was asked to perform the same tasks that the regular employees were doing. It was very knowledgeable for me, I made notes on the ways through which they treat and help their customers. First week was more of a training period; I was made familiar to the systems and queries that are used by the Ufone.

3.1.2. Week 2
The next week, I was assigned to the sales department, there Mr. Ali, Sales Officer helped me, and gave me an assignment, to sell connections especially postpaid connections. Before doing this, I did research on the postpaid connection and look at the competitors tariff and compare with Ufone postpaid tariff. Then I set the target market and visit the market and sold the postpaid connections. This was very beneficial activity for me and gave me some experience like how to present yourself in front of the customers, how to talk to them and how to sell the connections.

3.1.3. Week 3 & 4

The next two weeks, the task I performed was work on front desk. There are so many tasks that I performed on the front desk. But first time I didnt entertain the customers, I only do some documentation like to fill the customers forms through entering the customers personal data and connection information with two references.

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Than I was given the authority of Owner transfer, means that to transfer the ownership of the connection. Many customers came to Ufone to change their ownership because its a restriction from PTA that SIM should be the ownership of user name only, for doing this first I was given proper training. The process of Ownership Transfer requires the distinctive information from the user like information about last calls, last load, what is your most dialed number etc... After collecting that information I transferred the ownership with help of computerized system.

3.1.4. Week 5
In that week, I was given another interesting task, Easy Load system; I was given the opportunity to use their Easy load system to better understanding of the system of billing. Parallel task was to deal with the customer complaints. I handled the customer complaints in very efficient and effective manners. I carefully listen to the customer complaints and quickly respond so that the customer is satisfied and leave happily. Following are the most common customers complaints; Coverage Wrong calls Voice quality Change ownership Call disconnection GPRS & MMS settings Billing problem in postpaid connections

This was the most difficult task and interesting too but I really enjoyed. Most complaints were easy to handle on the spot and many requires more than one day.
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3.1.5. Week 6
In this week I was given the opportunity to work in the HR department. I learned that their HR depart is being headed the HR executive designated as Chief of Human Resource Department. There I found the key policies of Ufone HR department like Recruitment, selection, training, compensation, benefits, and performance appraisal system. I worked in the department as a helper, the key point in that was that I can go to any staff member and ask them to give me some part of their work, and they appreciated it. By doing so I got an extensive knowledge about the work is being done by the whole department. I was given the opportunity to make SWOT analysis of Ufone; the staff members helped me in doing so.

3.1.6. Week 7 & 8

In these weeks I was called back to front desk due shortage of staff member, who has to leave for his marriage. There I performed the same tasks that I was doing before. In these weeks I focused on preparing my internship report, I had helped from the staff members, in collecting raw data and their professional advices were very helpful to me.

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Chapter 4

Recommendations and conclusion

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4.1. Recommendations
Ufone should improve its customer services to avoid complaints of the subscribers. Ufone should further reduce its prices to capture more market share. They should further improve its network in order to provide more efficient services. Due to the extensive competition in the industry Ufone has to enhance its training programs in order to make their employees more proficient and competent. They should call in at different universities and offer jobs there for students to give them employment in the organization. They can post their job advertisements on university bulletin boards and also ask the fresh graduates for walk in interviews. They should give more incentive to their employees to make them motivated, as some employees turnover rate is high. The Human Resource department needs to be improved as they have a major problem that is low job performance. As I have been interacting with them few times and they were very slow in responding. The biggest need is that they start work on their network expansion as soon as possible. They should try to attain a balance between their post paid and pre paid customers. This also holds true for their normal users and corporate users. New features and services must be well communicated to the end consumer. For instance as they have started a Web2Sms service but have not notified their customers through any means. They could have alerted their customer of their new website through their info services.
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They should also focus on their differentiation policy and try to keep a balance between their cost leadership and differentiation strategies. These recommendations could be very helpful for the company to gain more market share and increase its customers list. As first of all I have pointed on the customer services that they should be more polite and gentle while talking to the customers. While working at the retail sales department and customer services department I myself have attended customers that were upset from the customer service provided by the representatives, this unusual behavior could make Ufone lose its loyal customers too. Coming to the rates charged by Ufone, I have my self performed competitors analysis while working there and have come to a result that Warid telecom one of its Competitors are giving much better call rates and are attracting many of the customers to switch their service.

4.2. Conclusion
Telecom industry is most growing industry of Pakistan still huge investment required for coverage. The market also has strong competition after the entrance of China Mobile Company as player. Competitors are hiring professionals to entertain the consumer which is resulting technological implementation and value added services. Ufone is a place where one can live his dreams and pursue a career that reflects his skills and passions. People in Ufone give flexibility for change, the opportunity to learn, and providing career options with endless possibilities. The managers at Ufone believes that all employees have a right to offer input and be involved in helping their organization grow. All departments are working together and they wants to create a work environment in which employees can improve their minds, continuously learn, gain professional growth and feel
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inspired by similarly motivated individuals. The Ufone takes pride in providing the best possible working environment. They take a constant interest in ones progress by conducting evaluations and offering the support and resources one needs. I reveal some complications in Findings. It has been analyzed that people are concerned about call rates they do not prefer any particular company. Consumer searches good service with lowest call rates, although companies are minimizing call rates this will result more growth in the market and to meet the customer needs by satisfying them.

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REFERENCES
The information has been gathered through the various sources including Ufone Finance Warehouse Pakistan Telecommunication Authority Annual Reports 2007-2008 www.ufone.com PTCL Financial Statements 2008-09 www.businessrecorder.com (Pakistan's First Financial Daily) www.telecompk.net http://www.ufone.com/feedback.aspx www.topix.com/forum/pk/karachi/TVLIQV2UIMD07N3FD www.pta.gov.pk www.financialdaily.com http://telecompk.net/category/ufone/page/2/

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