Purpose - The newspaper aims to highlight a positive change toward the strategic management and decision making. It brings out a few lacking that are essential to know for the industry.
Design/strategy/approach - The paper chosen an exploratory study including interviews and group talk with employees representing middle and older management. Data is increased by applying the analytical tools, the information of internal procedures, and organizational set ups, publication articles and the net.
Findings - The newspaper provides sensible understandings about the proper management examination and organizational composition.
Practical implications - The newspaper includes detailed research of the many factors that need to be catered for. That includes SWOT evaluation of the business and deep research of structuring of company.
Originality/value - The newspaper fulfills the necessity of discovering the tactical management and organizational framework study.
Keywords: Strategic Management, Organizational Framework.
Introduction
Telecom industry is the assortment of all business and companies providing phone service, data or entertainment to consumers and businesses. It's the fastest growing industry in Pakistan and with highest per calendar year development rate in tele-density Worldwide (Atta 2008b, P. 1 of just one 1) it has turned into a backbone in Pakistan's overall economy. Telecom industry provides many job and investment opportunities due to high profits generated via large number of telephony members. Along with opportunities, this industry also provides vast facilities to converse and connect globally in an improved, reliable and modern manner.
Background:
Telecommunication services in Pakistan were were only available in 1947 when Content & Telegraph Team was created. As an extension, Pakistan Mobile phone & Telegraph Section was set up in 1962 to provide fixed phone services.
Pakistan Telecommunication Firm (PTC) started out under PTC Action 1991. This overlapped with the Government's competitive insurance plan and prompted the contribution of the private sector, leading to award of licenses for card-operated pay mobile phones, cellular companies, paging and, lately, data communication services. Chasing a progressive insurance policy, the Government announced its strategies to privatize PTCL in 1991.
In Pakistan, the Pakistan Mobile communications Ltd ("Mobilink") started its procedures in 1994. Mobilink (subsidiary of the Orascom Telecom Keeping) with an increase of than 31. 6 million customers is Pakistan's leading cellular and Blackberry company. Other major competition are Telenor 23. 4 million, and Warid (Abu Dhabi Group) 16. 38 million, Ufone 18. 93 million and Zong (China Mobile Company) 6. 76 million. By April 2010, there have been 97. 6 million cellular phone clients in Pakistan. PTCL launched its mobile and data services firms in 2001 i. e. Ufone and PakNet respectively. In 2006, Authorities of Pakistan made a decision to privatize 26 % of PTCL. Etisalat, with a sizable margin in the wager could get the stocks.
Purpose:
The reason for this survey is to understand the organizational structure and strategic management process through the use of analytical tools- SWOT analysis. Improvements in tactical management process and decision-making will be suggested.
Aims and Objectives:
Conduct interviews and conversations with midsection and senior level management personnel from the telecom industry
Conduct SWOT examination over feedback received from the interviews and discussions
Study the organizational composition of Telenor and Ufone
Reach out mobile members to get opinions also to help determine QoS goals and KPIs
Provide suggestions about improvement in tactical management process and decision making
Scope:
Survey: Design questionnaires and do interviews with midsection and mature level management
Data Analysis Tools: Durability Weaknesses Opportunities Threat (SWOT)
Organizational Composition: Vertical Differentiation (Hierarchical Levels, Course of Control, Integrating Mechanisms, Centralization and Decentralization, Standardization and Mutual Adjustment and Professionalism and reliability)
Research Methodology
Document/Books reviews:
The first method we used in the implementation in our research strategy was critiquing work already done in the field tightly resembling our examination. This was done on the basis of multiple documents especially of other telecommunication companies and analysis done on the basis of different circumstances factoring in the business's strategic management and decision making process.
Mixture of Quantitative and Qualitative Review:
The purpose of qualitative analysis is to get a complete detailed description whereas in quantitative evaluation we classify features, count number them, and even build more complex statistical models in an attempt to explain what is observed.
Qualitative analysis allows for fine distinctions to be drawn because it is not necessary to shoehorn the data into a finite variety of classifications. Additionally it is used to research the why and how of decision making, not just what, where, when. This also justifies the reasoning behind getting smaller but centered samples alternatively than getting greater samples.
Quantitative analysis quite simply causes the organized empirical investigation of public phenomena via statistical, numerical or computational techniques. Its main target is to build up and employ numerical models, theories and/or hypotheses regarding phenomena. In easier conditions it quite simply means that quantitative researcher asks a particular, thin question and collects numerical data from members to answer fully the question.
Official Perception studies:
These studies will be qualitative research conducted on the basis of information compiled by senior officials from managerial level employees in the telecommunication industry. These studies will maintain the form of descriptive questions and will be used to investigate different factors mixed up in company's decision making process.
This examination will be achieved by means of Key Informant Interviews and you will be held considering a senior officers own evaluation of the company's strong and weak points.
Customer Satisfaction Studies:
These surveys will be quantitative studies distributed amongst people in the form of questionnaires. This will likely be done in the form of Random Selection Surveys hence to repay major portion of our required research.
Literature Review
Strategic Management Process:
Strategic management process identifies the strategies of the organizations. It's the process where managers choose a couple of strategies for the business that will assist it to attain better performance and QoS targets. Strategic management is an ongoing process that has three main levels namely: tactical formulation, strategic implementation and evaluation. Organizations use strategic research tools for the proper management process
Organizational Composition:
Organizational structure determines hierarchy and the reporting composition in an business. These may be classified into different kinds based on a variety of things mainly level of the organization and the scope of its functions. Traditional structure organizations derive from functional department and departments, various types of buildings under these set ups are Line Framework (Used in Small Organizations), Collection and Staff Composition (Used in Large Organizations), and Useful Structure (Division predicated on the functions a person perform). Divisional organized organizations derive from functional division and departments they have got. These may be grouped as Product Framework, Market Composition and Geographic Framework. Some other varieties of organizational set ups are Matrix Composition, Network Structure and Team Structure. .
Literature review has been conducted for this research article to understand the concepts root proper management process and the organizational composition. This will help to carry out the mandatory work of survey, SWOT examination, and to make the suggestions predicated on the conducted research.
Results
Strategic Management Process
Strategic management entails managers from all degrees of the organization to formulate and implement strategies to provide superior fit between corporation and its environment to achieve established goals of the business. This calls for action and decision-making. Three stages of tactical management process are tactical planning, implementation and analysis. The nine steps encompassing these three stages are Analysis, Strategy, Aims, Strategic Maps, Performance Actions, Initiatives, Automation, Cascade and Evaluation. The procedure can be described by the movement chart offered in physique 1 below:
Figure : Strategic Management Process
Strategic Management Process is followed with SWOT examination, which gives data to formulate and put into practice strategies and changes to achieve the goal goals and QoS. SWOT evaluation helps to verify internal (strength and weaknesses) and external (opportunities and threats) elements of a business. SWOT evaluation can help the management team in a small business to discover:
What the business does much better than the rivals do?
What rivals do superior than the organization?
Whether the business enterprise is making most of the available opportunities?
How a company should react to changes in its exterior environment?
SWOT evaluation for Telenor Pakistan and Ufone Pakistan has been conducted as case study.
SWOT Research of Telenor Pakistan
Telenor Pakistan is a ownership of the Telenor group, an international company in conditions of speech, data strategies and communication services across Europe and Asia. It really is amongst the most significant mobile service operators in the world over 179 million mobile members (2010). Telenor Pakistan has recently come to the landmark of 30 million users in Pakistan. It is now second in conditions of market show in Pakistan after Mobilink. Case study of SWOT evaluation for Telenor Pakistan has been talked about the following:
Strengths:
Telenor introduced the concept of "Mobile Tv set" for the first time in Pakistan
Telenor provides desirable packages for each market sector like djuice for youth and price conscious school and persona for upper and elite class
State of art technology like the latest underground fibers optical network
Telenor Pakistan stands at number 2 2 in terms of market talk about and coverage after Mobilink
Telenor Pakistan presented the idea of free international roaming during Hajj program
Telenor operate with an increase of than 30 million customers all around the Pakistan
Weaknesses:
There is not a institute in Pakistan that provides formal education in the domains of networking and other central technical features so Telenor needs to have a major chunk of these workers trained from institutions outside of Pakistan
The customer service centers are not coming up to nationwide and international expectations as the majority of the customers' calls go unattended due to poor call centre performance
The postpaid connection provided by Telenor Pakistan is comparatively expensive in comparison to other competitors like Warid Telecom and Ufone Pakistan
Due to the buffering problem, Telenor mobile Tv set has poor visible quality
Franchise circulation system is not up-to standards- This stands as the normal problem for everyone mobile services providers. Record keeping is also an associated problem
Opportunities:
Participation within the growing Telecom industry and expansion of coverage area
Attract more users and increase market share
Product brand and packages extension concentrating at various age groups and sociable classes
Cost discount strategies
Product technology and attraction
To become customer size specialist
Threats:
Monopoly of PTA and inclination towards status had telecom service providers
At any time PTA can enhance the services of telecom sector
Cutthroat competition operating in kinked demand oligopoly
Implementation of WTO insurance policies will bring about wide open & competitive costs in services sector exclusively in telecom
There can be an imbalance between prices of inputs & outputs
SWOT Research of Ufone Pakistan
Ufone is a Pakistani GSM mobile company, a subsidiary of Pakistan Telecommunications Company Limited. Its operations began from Islamabad on January 29 2001. Ufone has progressed and captivated customers and widened its coverage area with the addition of new places and highways/motorways. After the privatization of PTCL, 26% stocks of Ufone were sold to Etisalat. Around $65 million rupees have been invested by Ufone to setup its up-to-date technological infrastructure to provide fast data services and high quality tone of voice. On its establishment, Ufone cater most of all for the center class, by announcing low rates and different plans with Urdu titles like Jazba etc. Ufone has expanded its customer support in a very planned and appropriate manner with a strategic network of retailers and outlets for people.
Strengths
Ufone is variety to value added services and data connectivity
Ufone offers the most reasonable prices for its users
Ufone signifies as the subsidiary of PTCL
Prepaid roaming in Pakistan was first launched by Ufone combined with the Multimedia system Messaging Service (MMS) and GPRS services
Ufone's Prepaid deals are now regarded as one of the most favorite deals by the young ones market
GPRS Roaming center is obtainable across 85 countries with an increase of than 115 Live Operators
Ufone contains the best e-marketing team in competition to the other mobile operators
Weaknesses
Ufone's biggest weakness is the fact it cannot meet the requirements of its customers
Centralized composition of the organization has didn't provide proper way over training and policies
Ufone is not near expected profitability
It is a subsidiary of PTCL so that it is dependent on PTCL and authorities for policies
The franchise network of Ufone struggles to meet the demand of increasing number of mobile subscribers
Ufone has not provided innovative services to its users compared to other operators
Its coverage in South region is quite good but in north its coverage is poor
Ufone received some inner problems following its privatization to Etisalat when some employees became unhappy with the pay scale
Opportunities
Ufone has extensive ability to extend globally, but since this is a government owned business, the financial situation in Pakistan will not permit this
With the precise online marketing strategy and planning they can gain a lot more subscriber's market
The demand for value added services in increasing with development in the IT & Telecom sector, Ufone should produce advancements in its value added services in order to gain leading edge in the market
"Ufone kiosk" can be launched to permit services like ATM machines for Ufone customers
Ufone should increase their Franchise network in remote control areas to provide competition to Mobilink and Telenor that are constantly increasing their franchise network
Ufone should extend its network coverage to the North areas of the country as well with the reason why that in those parts of the country not too many companies are offering services of course, if Ufone gets success in providing its services there then it'll definitely attract an enormous chunk of individuals and its volume of members can increase
Threats
Government interference in conditions of taxes
PTCL should provide more financial support to Ufone to improve profitability of its subsidiary company
Being a responsibility, Ufone is supposed to provide good pension benefits to its employees, which sometimes appears like a great idea, but they are now facing problems as great deal of men and women are beginning to collect
Ufone, like many large companies with quality employees' medical welfares, is suffering from a large financial hit
Some pressure organizations are objecting on the towers that are installed in domestic areas. According with their perspective it is not good for health for the folks who are directly exposed to the radiations induced by the towers
Pakistan is experiencing serious problems about the economy now days which will eventually also impact Ufone. The existing downturn in market is not beneficial for any sort of business may that be telecommunication
Organizational Structure
Organizational structure defines the reporting and hierarchical structure in an company. Literature review presents an explanation about the business structure and the different types of it. Circumstance studies of Company framework for Telenor and Ufone Pakistan will be offered here.
Organization Framework of Telenor Pakistan:
The organizational structure of Telenor Pakistan is useful structure. The key features are stated as follows:
There are eight departments, Financing, Customer Services, Commercial, Technical, Information Technology, Human Resources, Administration and Legal Affairs, each supervised with a Senior Professional Vice Chief executive or Executive Vice President. Each one of these departments follow a flat structure to boost mutual techniques and co-operations between lower personnel and managers
Each section has several portions and a supervisor is in-charge of each section. He control buttons the overall functions of that section
Responsibility of each executive in charge includes all the services that are related to him
Wide span of control in whole organization makes it convenient for the low staff to reach top managers and boost coordination between them
The categorized stages of organizational graph of Telenor Pakistan is shown in amount 2 below, the entire organizational structure has been attached as appendix A:
Figure : Categorized Phases of Organizational Framework of Telenor Pakistan
There are seven grouped levels. Tasks and duties of each person is evidently identified during joining the business. Obligations can be changed later, but staff has good understanding of their job obligations from the time they join the organization. There is no communication or motivational issues as a result of layered composition and the open up culture prevailing at each level. You will discover no types of de-motivation however in certain areas like Customer Romantic relationship Department or CUSTOMER SUPPORT Centre different customer inquiries and objections can raise stress levels when attributes of service targets are not being met. Professionals in these areas interfere to resolve problems.
On every occasion a worker has an idea, he/she is stimulated to tackle the management or people at higher level of hierarchy and talk about it with them. Containers are also situated at various places where personnel leave their ideas, suggestions and concerns. To remain anonymous is their legal right.
The Communications Department tries to reach to certain decisions if the ideas can be performed and then debates them with the employees concerned. There is also a formal system at the group level known as SEED where invention is encouraged and new ideas about earnings ideas and cost success can be talked about. Employees are welcome to add and submit their innovating ideas. If the ideas that are shared are feasible then they are performed in the organization. Employees are then compensated accordingly because of their helpful contributions.
Organization Structure of Ufone Pakistan
The departmental and organizational structure for Ufone Pakistan has been shown in physique 3 below:
Board of Directors
CEO
Project Director
Sales
Finance
Information System
Customer Care
Engineering
Quality
Assurance
Information technology
HR
Admin
Figure : Organizational Graph of Ufone Pakistan
The organizational structure of Ufone Pakistan is cross in mother nature where there is a formal control on every employee in the business. The chain of command is decentralized and each personnel in the organization have his/her own responsibilities and tasks, which he/she must fulfill.
The key characteristics of the Organizational Structure are as follows:
Ufone has a slim or horizontal structure
The company has a decentralized framework making the flow of information easy and simple
Ufone has different departments where every division has its brain and all mind are interconnected
Concept of departmentalization remains constantly in practice at Ufone
Different departments work within their practical divisions to add for the success of the business enterprise and attain the place targets
Ufone has 83 sub-departments that are working efficiently. All connect to each other to the smooth operating of the organization
The organizational framework of Ufone consist of of Panel of Directors who are reported by the principle Executive Officer
CEO is a great supervision to the eight major departments of the business. These are Financing, Marketing, IT, Executive, Strategic Planning, Man Learning resource, and Sales Departments
Discussion and Reflective Comments
Case studies for tactical management process and organizational composition has been reviewed for Ufone and Telenor. An evaluation between both of these organizations has been made because both of these organizations had remained in close competition to one another in conditions of subscriber's market. Recent studies have shown that Telenor Pakistan has transferred the landmark of 30 million customer base having a market show of 26%. It has shown consistent growth due to the technological development and reliable tactical management process. On the contrary, Ufone's market talk about in conditions of subscribers shows decline, which is currently 19%. The major factor because of this is the insurance plan making at exec and older managerial levels. Plan making for Ufone is normally done by officers representing the federal government as Ufone is a subsidiary of government owned Pakistan Telecommunications Company Limited. Besides this, at the time of privatization of PTCL, it was predicted that PTCL and Ufone would be converted into large income and useful organizations, but Etisalat group could not lead to many changes on the operational and strategic management process.
Telenor's customers' base, technological progress, marketing and network coverage has surpassed those of Ufone with a significant margin and today Telenor is showing close competition to Mobilink, which is considered as a mature corporation in Pakistan's Telecom Industry. An important differentiation between Mobilink and Telenor is the post-paid interconnection base, which is generally identified by business and corporate and business users. Telenor lags behind Mobilink in terms of post-paid readers by a huge margin reason being that Telenor's postpaid interconnection is expensive and provides much less value added services in comparison to Mobilink.
In the talk about organizational structure, a point well worth noting is that Telenor has an operating framework where each team has a couple of functions well described. However, a Hybrid structure combining both useful and horizontal framework is recommended as it can offer enhancement in coordination and communication between cross-functional clubs and can also provide improved customer service. Besides this, the composition should be described so that it is able to support any changes that might seem appropriate. These changes can be easily accommodated in horizontal composition.
Since Telenor is an integral part of Global Telenor Group, employee exchange program should be released at midsection and mature level management to be able to share the level of managerial and complex skills and expertise. Besides this, stock option may be provided as a desire to the employees.
