Internal and External Audit of

Organization

Theories and Practices of

Management Assignment 1

Asma Aziz - MBA 1-W (01222162-005

For Business organization of your choice, undertake an External and Internal

Environment analysis audit? Discuss how the environment shaped the destiny of
the organization especially by highlighting its role in decisions made by the
organization?

The Business organization i have selected is Telenor, Pakistan. Telenor Pakistan started its
commercial operations in Pakistan in March 2005. The organization operations are affected
by its external and internal environment. Lets have a look at what are the different factors
in the environment Telenor Pakistan operates.
External Environment Audit:

Competition:
When Telenor Pakistan started out, Mobilink , Ufone, Paktel had already settled down. Heavy
investment and good marketing strategy was required to break the other companys
monopoly in the telecom industry.

Saturation:
Telecom Industry is quite saturated with a lot of strong players in the Market and initially
Telecom had quite low market share initially.

Tough Terrain and Political Situation:

In Pakistan, there are mountainous regions and tough terrains like Baluchistan and political
situation is also not stable in those areas, so it is difficult to establish and maintain good
coverage in those areas.

Data Services Penetration:

Not initially, but as the time went on, focus shifted from voice to data services
internationally and Social Media platforms like Facebook, Whatsapp penetrated and
threatened the business of voice and SMS and that affects the business of Telecom industry.

Demographic:
Another important external factor is the demographics. Most of Pakistani population
comprises of youth so that affects how the Telecom services are designed. Apart from youth,
there are other types of customers as well so a company has to make decisions keeping all
that in mind.

Low Literacy rate:

Telenor faces a lot of challenge for penetration of 3G and 4G services as in Pakistan, most
people are only able to use basic services like voice and that limits the propagation of new
3G and LTE data services.

Changing Technology:
The technology continuously changes with the launch of first 3G and now 4G services and
employees have to continuously equip themselves with new techniques which is sometimes
really difficult while working on the current systems and platforms.

Impact of PTA Directives:

Pakistan Telecommunication authority issues many directives for blockage of websites or
services on special occasions like Moharram etc. Further, it initiated the Biometric
verification which was to be implemented by all companies. Therefore, there directives do
effect how Telenor works as a company.

Power of Customer:
Switching cost of customer from one service provider to other is low. Fewer stakes are
involved with one company. Customer is getting less differentiation from all the service
providers. A service of one provider, if not perfect is a good substitute of the service of
others. Pricing is going down quality is improving and customers enjoying more power
Economic:
Overall economic conditions are not very good for any industry because rate of inflation is
increasing day by day and value of currency is going down which causes increase in the
value of loan payable that is another major threat for telecommunication industry. On every
prepaid balance load, a lot of tax is cut.

Public Groups:
Initial years were not good as the entry into the telecom industry was not at all easy. The
company also had to bear losses after the propaganda was made against the Norwegian
based telecommunication company after the publication of caricatures of the Prophet.

Opportunities in External Environment:

A number of opportunities exist in the data telecommunication space. With new
advancements in Technology and rise of social media and smart phones, customers
want to have seamless video streaming and gaming services. There are a lot of
opportunities for Telecom operators to move into the digital streams and satisfy
customers.
Market size is the biggest ever opportunity in Pakistani telecom sector. Almost 80%
of population is living in rural areas of Pakistan in which above 70% have no access
to cellular connections. That is market opportunity which any operator can avail by
applying expansion strategies.
Terrorism is the major problem that is facing Pakistan in now a day that is the most
crucial factor that is hurdle in the growing in the telecommunication sector because
no one knows about the terrorist activities. Further, Terrorism has led to a very low
coverage in Baluchistan areas as due to threats, employees cannot be sent there.
Threats:
Previously policies were in favor of telecom industry. But due to political instability
and government changes, new policies like Location based Taxation services have
been implemented which are not in favor of telecom industry.

Internal Environment:
Internal Environment Audit:

Continuous Innovation: Telenor is an organization which responds to external changes in

industry and catches up to it. So, it focuses on innovation and has launched many yearly
programs to encourage a culture of innovation. Further, it continues to innovate to keep
processes efficient.
Employee Motivation: At year end, employee evaluations are conducted and they are
accordingly rewarded with bonuses etc. to keep them motivated. Also, every quarter, value
champions and Employee of the Quarter are selected and given some monetary rewards
and certificates. That also encourages employees to work harder.
Changing Strategies: Every year new strategies are made and conveyed by top
management in Town-halls so that they are quickly conveyed to everyone in organization
and implemented.
Goodwill through Social responsibility: Telenor takes many initiatives and promotes a
culture where the employees are socially responsible. It organizes Tree Plantation drives

where employees participate actively. Further, under its Internet for All initiative, it
organized drives where school going students were educated on the safe usage of internet.
Keeping the Customer First: Customer First Day is celebrated every year to realize the
importance of customers. Employees visit different areas in designated vicinities and query
them on the issues they are facing and how happy they are with Telenor as a service
provider. It also aims at getting the value of customer across and serves as a reminder to
the employees to work harder to serve them.
Management Decisions based on Internal Environment:

Open Seating Plan: The Organization has gone for an open-seating plan so that people
can discuss ideas easily and the management gets to sit with the employees as well so that
no disparity is observed.
Naya Aghaz Trainee Program: The organization started Naya Aghaz program which is a
platform for women who took a break from their career. They are given an opportunity to
continue with their career.
Eureka Innovation Competiton: Eureka was a yearly competition that was initiated in
2015 where employees proposed innovative ideas and winners were selected after multiple
rounds.
Open Mind Trainee Program: An Open mind Trainee program was started to incorporate
talented people with disabilities.
Diversity Initiatives: Many diversity initiatives were taken. Previously not many women
used to be in Management position but that has changed over past 2/3 years.
Training Programs on Creativity: With the changing trends and focus on being the best
Digital partner of customer, Companys Training programs on Creativity and Innovation are
being held to integrate creative thinking as a way of work.
Management Decisions based on External Environment:
EasyPaisa Launch: Telenor identified an opportunity of micro banking in market and
launched EasyPaisa which was an industry first Mobile Banking solution. It created a USP
for Telenor in industry and the other competitors followed suit after quite some time.
LTE Launch: As two of the competitors had already launched 4G, Telenor also moved in to
keep up with the trends and launched 4G LTE.
Solar Power for Base-stations: There is focus on new technology and many new
initiatives have been taken in this regard. That includes harnessing Solar power to power up
Base stations.
Launch of Digital Applications: Keeping in view the digital trends, Telenor introduces new
offerings in the market like Mobile TV, free Facebook, and Telenor App store to cater to
changing customer needs and data trends.
Biometric Verification for Sims: Biometric verified system was integrated and a massive
rollout of verification of all sim owners was carried out in 2015 as per PTA directives to
prevent terrorism and security issues.
Different Priceplans for Youth: To keep services relevant to both younger generation and
normal users, Djuice and Talkshawk price-plans were launched. Djuice offers discounted SMS
and Data rates during different times of the day and are mostly popular among the youths.
With their post-paid package Persona they target more of the executive class.
NPS 360 launch: To cater to customer complaints and improve Net promoter score, Telenor
launched NPS 360 program to act on customer insights and improve on service provision.

The Technology employees call the customers and listen to their complaints. This gives the
technology employees a chance to have a first-hand conversation with the customers which
they usually do not have as only customer care representatives get to talk with them.
Expanding Coverage: Telenors signal quality is good and its signals are available even in
the most remote areas. It focused on the mountainous regions as well like Azad Kashmir
region and provided good coverage there. After 3G launches by many operators in Pakistan,
Telenor focused on expanding coverage at an exponential rate. As a result, it is the largest
3G service in Pakistan.
OutSourcing: Since some of the technology is too expensive and vendor equipment is
being used and its own resources do not have enough experience with them, so some of the
operations like Core, VAS and Charging systems have been outsourced to ZTE and Huawei.
Launch of Smart Watch and Telenor Automate: To cater to changing customer needs,
and being their preferred digital life partners, Telenor Pakistan has taken new industry first
initiatives. Smart Watch is targeted at kids where there location is sent to the Parents.
Telenor Automate is a car security system.