final report 15.11.2012 inam havalian campus
TRANSCRIPT
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INTERNSHIP REPORT
ON
UFONE, (ABBOTTABAD BRANCH)
Submitted By:
Inam Ullah Khan
Department of Management SciencesHazara University Havelian Campus
October, 2012
(This page is only for hard cover)
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INTERNSHIP REPORT
ON
UFONE, (ABBOTTABAD BRANCH)
Submitted By:
Inam Ullah KhanRoll Number: 13148
BBA (Hons) Finance
Department of Management Sciences
Hazara University Havelian Campus
October, 2012
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INTERNSHIP REPORT
ON
UFONE, (ABBOTTABAD BRANCH)
Submitted By:
Inam Ullah KhanRoll Number: 13148
BBA (Hons) Finance
This internship report is submitted in partial fulfillment of the requirements for the degree
of Bachelor of Business Administration awarded by the Hazara University, Manshera.
Department of Management Sciences
Hazara University Havelian Campus
October, 2012
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APPROVAL SHEET
Internal Supervisor:
Signature __________________________________
Name: __________________________________
Designation Lecturer
Organization Hazara University, Havelian Campus
External Examiner:
Signature __________________________________
Name: __________________________________
Designation __________________________________
Head of Department:
Signature: __________________________________
Name: Sir Ajmal
Organization: Hazara University Havelian Campus
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DEDICATION
I would like to dedicate this accomplishmentoffline to my beloved and caring
parents, with the support of whom I am
standing at this step of my life stairs.
To my teachers because they educate the
leaders of tomorrow, the profession
that teaches all the other professions.
And all those who love me and whom I
love.
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ACKNOWLEDGEMENT
For the completion of our report, I am indebted to plenty of people for their very sincerecooperation that they extended to me at various stages.
First and for most problem that every student faces is the selection of a report. I am very
thankful to my supervisor
Sir Zulqarnain Safdar for helping me out in time of confusion. During our course and the
execution of my report, I had a real chance to learn from him vast experience and immense
knowledge.
I am very thankful to staff members of Ufone Abbottabad Main Branch that they guide and
Provide me valuable information regarding my report.
I am also thankful to Mr. Atta Ur Rehman for composing, printing this document and the
present shape.
Finally I am thankful to the most merciful and Almighty Allah who gave me the strength that
I fulfill my task efficiently.
INAM ULLAH KHAN
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PREFACE
It is an academic requirement for a student of BBA (Hons) in Finance to undergo an
internship program ofeight weekduration. This requirement provides with an opportunity to
acquaint the student of BBA (Hons) (Finance) with practical working of an organization.
I selected Ufone Franchise Main Branch Abbottabad for my internship. During my work, I
was rotated in different departments ofUfone Franchise Main Branch Abbottabad and got
some understanding of their operations and procedures.
The Bank staff was very much cooperative with me, they have provided me with guidance
and relevant material to write a report. I am very much thankful to them and to my advisor
Sir Mati Ullah for his supervision and guidance.
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Table of contents
ACKNOWLEDGEMENT ....................................................................................................... vii
EXECUTIVE SUMMERY ..................................................................................................... xii
CHAPTER-1 .............................................................................................................................. 1
1.1 INTRODUCTION OF STUDY .........................................................................................1
1.1.1 Background of the Study .......................................................................................................1
1.1.2 Purpose of Study ....................................................................................................................1
1.1.3 Scope of Work ........................................................................................................................2
1.1.4 Methodology of the Report ....................................................................................................2
1.1.5 SCHEME OF THE REPORT ................................................................................................3
CHAPTER-2 .............................................................................................................................. 5
OVERVIEW OF UFONE ......................................................................................................... 5
2.1 HISTORY OF PAKISTAN TELECOMMUNICATION AUTHORITY .......................... 5
2.2 PAKISTAN TELECOMMUNICATION COMPANY LTD .............................................5
2.3 HISTORY OF PTML UFONE ........................................................................................... 7
2.4 MISSION STATEMENT OF UFONE .............................................................................8
2.5 OVERVIEW OF UFONE .................................................................................................. 8
2.6 MANAGEMENT PROFILE OF UFONE ........................................................................ 9
Management Hierarchy ............................................................................................................9
CHAPTER-3 ............................................................................................................................13
DEPARTMENTS IN UFONE ................................................................................................13
3.1 DEPARTMENTS IN UFONE: ....................................................................................... 13
3.2 HUMAN RESOURCE MANAGEMENT ....................................................................... 13
3.3 TECHNOLOGY DEPARTMENT ...................................................................................14
3.4 FINANCE DEPARTMENT ............................................................................................ 14
3.5 AUDIT DEPARTMENT ..................................................................................................15
3.6 MARKETING DEPARTMENT ...................................................................................... 16
3.6.1 Marketing Department .........................................................................................................16
3.6.2. Competitors .........................................................................................................................16
3.6.3 Market Share .........................................................................................................................18
3.6.4 Ufone Brand .........................................................................................................................19
3.6.4.1 Prepaid .......................................................................................................................................... .....19
3.6.4.2 Post Pay .............................................................................................................................. ......... .....20
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3.5.6 BlackBerry ............................................................................................................................20
3.6.7 Recharge Option ..................................................................................................................20
3.6.8 Detail of Prepaid Calls .........................................................................................................21
3.6.9 International Calls ...............................................................................................................22
3.6.10 Conference Call ..................................................................................................................22
3.6.11 Collect Call Service ............................................................................................................23
3.6.12 Call Block Service ..............................................................................................................23
3.7 FAVORITE CELLULAR OPERATOR 2009 ................................................................. 24
3.8 BEST BRAND AWARD IN TELECOM IN 2009 FOR UFONE ..................................24
CHAPTER-4 ............................................................................................................................25
ACTIVITIES PERFORMED IN INTERNSHIP .................................................................. 25
4.1 ACTIVITIES PERFORMED IN INTERNSHIP: ..........................................................25
4.2 VISIT OF DIFFERENT OFFICES ................................................................................ 25
4.3 Visit of Mobile Shops ....................................................................................................... 26
4.4 Dealing with Customers in Franchise ............................................................................27
CHAPTER-5 ............................................................................................................................28
SWOT ANALYSIS OF UFONE .............................................................................................28
5.1 Ufone SWOT Analysis ..................................................................................................... 285.1.1 Strengths ...............................................................................................................................28
5.1.2 Weaknesses ...........................................................................................................................29
5.1.3 Opportunities .......................................................................................................................30
5.1.4 Threats ..................................................................................................................................30
CHAPTER-6 ............................................................................................................................32
6.1 FINANCIAL ANALYSIS ................................................................................................. 32
6.1.1 CPM -COMPETITIVE PROFILE MATRIX .....................................................................32
6.1.2 Tough Competition ...............................................................................................................35
6.1.3 Financial Analysis of Income Statement and Balance Sheet ..............................................37
6.1.4 Profit And Loss Account for The Year Ended June 30, 2011 ............................................38
6.2 COMPETITIVE ADVANTAGES .................................................................................... 40
6.3 CHALLENGES .................................................................................................................40
6.4 PLANS FOR FUTURE ................................................................................................... 40
CHAPTER-7 ............................................................................................................................42RECOMMENDATIONS & CONCLUSIONS ....................................................................... 42
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7.1 Recommendations ........................................................................................................... 42
7.1.1 Work Coverage ....................................................................................................................42
7.1.2 High Post Pay Tariff ............................................................................................................42
7.1.3 High Rates of GPRS & Mms Facility .................................................................................43
7.1.4 Franchise & Head office GAP .............................................................................................43
7.1.4 Low Pre Paid Cards Percentage ..........................................................................................43
7.1.5 Training Of The Sales Officers ...........................................................................................43
7.1.6 Motivation .............................................................................................................................43
7.1.6 Have A More Professional Attitude .....................................................................................44
7.2 Conclusion ........................................................................................................................45
BIBLIOGRAPHY ....................................................................................................................46
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EXECUTIVE SUMMERY
Ufone is the second largest cellular network in Pakistan. The head office of the Ufone is
located in 13-B, F-7 Markaz Islamabad, Pakistan. Every Organizational whether its
multinational, private business or Govt. Offices depend on its people. A company paying
more attention to its customers delights rather then the customers satisfaction. Ufone is a
company starting from scratch and has shown utmost performance in the last four years.
Ufone owes its success to its employees believing that providing employees with job
satisfaction motivates them to work hard and provide better results.
Telecom industry is growing in Pakistan with new companies is getting license
the competition is though as a result is the consumer is getting benefits and enjoy low call
rates. With a population of 15 million countries Ufone is one of the best telecommunication
networks that generate revenue. Ufone Company commenced its operations under the brand
name of Ufone from Islamabad on January 29 2001. Ufone Provide two kinds of Services
that is Ufone Prepay and Post pay. In postpaid they provide a lot of packages such as Uwon,
Ushare. Public Demand etc. in post paid they provide a Black berry, payment choice, value
added service etc.
Ufone has always played a vital role in the development of cellular market in Pakistan. It has
been a step ahead in introducing a innovative product in the market. Ufone adopted the policy
of simplified tariffs with no hidden charges. Ufone targeted the middle class, by introducing
low rates. Ufone has network coverage in more than 5885 locations and across all major
highways of the country. Mobilink has 910,000 subscribers and Ufone has 565,000
subscribers. According to the latest marker survey there is 70.64% annual growth in
this sector. So when Ufone will change their technology the market is open for them because
their prices are low and they are catering to middle and lower middle class which has quite
big ratio in Pakistan.
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CHAPTER-1
1.1 INTRODUCTION OF STUDY
1.1.1 Background of the Study
It is a common practice at universities during the achievement of the masters and bachelors
program to achieve practical practice in different fields. Hazara University Mansehra requires
students to experience an eight weeks internship program. The firm selection is based on
student choice. The university requires an internship report based on the theoretical and
practical learning of the student. The concern of this report is to study and analyze the
performance of Ufone overall & specifically Abbott Abad.
There are many multinational telecommunication companies that are operating in Pakistan &
they are considered to be more competent and productive as they mobilize foreign investment
and provide better services. Ufone company is considered one of the most famous and
outstanding telecommunication Company as far its reputation and progress is been
concerned. Ufone was recognized to work cellular telephony. The Ufone Company starts its
process from Islamabad under the brand name Ufone on January 292001. Since Etisalat took
over PTCL in 2006, during the year as a consequence of PTCLs privatization, 26% of its
shares were acquired by Emirates Telecommunication Corporation (Etisalat). Being part of
PTCL, the management of Ufone has also been handed over to Etisalat.
1.1.2 Purpose of Study
The purpose of the report has been to review and analyze the functions performed by Ufone.
The report also explores the strengths and weaknesses of the Ufone and also gives
recommendation where any improvement can be possible.
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1.1.3 Scope of Work
This report is anxious with the performance of the Ufone. It enlightens the Financing
functions of Ufone.
1.1.4 Methodology of the Report
The methodology for the collection of information and data was based on the two primary
modes of data.
Sources of Primary data:
Personal Observation.
Interviews of Personnel.
Sources of Secondary data:
Previous internship Reports.
Brochures.
Books.
Web sites.
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1.1.5 SCHEME OF THE REPORT
The report is arranged in the following sequence.
Section-I
This section has one chapter.
Chapter 1
This is a preliminary chapter which describes the background, purpose, scope, methodology
and method of the report.
Section-II
This section is comprised of four chapters.
Chapter 2:
This is the brief history of telecommunication industry in Pakistan. It also tells about the
history of Ufone, its mission statement and role in Pakistan. This chapter goes in detail study
about the Overview of Ufone and Management Profile of Ufone.
Chapter 3:
This chapter is the lengthiest chapter of the report. It precisely tells about the several
departments working at Ufone and their functions. The departments are Human Resource
Department, Technology Department, Audit Department, Finance Department and Marketing
Department.
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Chapter 4:
This chapter is about the activities those which I perform darning my internship in Ufone
franchise.
Section-III
This section also has TWO chapters and it is about the SWOT Analysis & Financial Ratio
Analysis of Ufone .
Chapter 5:
This chapter makes the critical analysis of Ufone. The market analysis of Ufone is based on
national performance of Ufone, followed by a SWOT analysis of the Ufone.
Chapter6:
In this chapter we studies the Financial Ratio Analysis of Ufone.
Section-IV
This section contains one chapter.
Chapter 7:
This is the recommendations and conclusion based on critical analysis of the organization.
And this chapter is about the implementation plan that has been devised for Ufone on the
basis of the room of improvements.
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CHAPTER-2
OVERVIEW OF UFONE
2.1 HISTORY OF PAKISTAN TELECOMMUNICATION AUTHORITY
The Pakistan Telecommunication Ordinance 1994 recognized the primary regulatory
structure for the telecommunication industry including the establishment of an authority.
Thereafter, Telecommunication (Re-Organization) Act no XVII was promulgated in 1996
that aimed to reorganize the telecom sector of Pakistan. Under Telecom Reorganization Act
1996, Pakistan Telecommunication Authority (PTA) was established to regulate the
establishment, operation and maintenance of telecommunication systems, and the provision
of telecom services.
The PTA has its headquarters at Islamabad and zonal offices located at Karachi, Lahore,
Peshawar, Quetta, Rawalpindi and Muzaffarabad.
2.2 PAKISTAN TELECOMMUNICATION COMPANY LTD
From the beginnings of Posts & Telegraph Department in 1947 and establishment of Pakistan
Telephone & Telegraph Department in 1962, PTCL has been a major player in
telecommunication in Pakistan. Despite having established a network of enormous size,
PTCL workings and policies have attracted regular criticism from other smaller operators and
the civil society of Pakistan. Pakistan Telecommunication Corporation (PTC) took over
operations and functions from Pakistan Telephone & Telegraph Department under Pakistan
Telecommunication Corporation Act 1991.
This coincide with the Government's competitive policy, encourage private sector
participation and resulting in award of licenses for cellular, card-operated pay-phones, pagingand, lately, data communication service. Pursuing a progressive policy, the Government in
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1991, announced its plans to privatize PTC, and in 1994 issued six million vouchers
exchangeable into 600 million shares of the would-be PTCL in two separate placements. The
shares value of each share was Rs 10 per share. And in mid 1996 these vouchers were
converted into PTCL shares.
In 1995, Pakistan Telecommunication (Reorganization) Ordinance formed the basis for
PTCL monopoly over basic telephony in the country. It also paved the way for the
establishment of an independent regulatory regime. The provisions of the Ordinance were
lent permanence in October 1996 through Pakistan Telecommunication (Reorganization) Act.
The same year, Pakistan Telecommunication Company Limited was formed and listed on all
stock exchanges of Pakistan. PTCL started its mobile and data service in 2001 by the name of
Paknet & Ufone respectively but none of them bring it to the top list in market competition.
But lately the Ufone increase the market share in cellular sector. The Paknet brand effectively
dissolved over the period of time. Recent DSL service started by PTCL reflects this by the
introduction of new brand name and operation of the service being directly supervised by
PTCL instead of Paknet.
As the monopolies of telecommunication in market comes to end very soon , services and
infrastructure providers are set to face even bigger challenges. The post-monopoly era came
with Pakistans Liberalization in Telecommunication in January 2003. On the Government
level, a comprehensive liberalization policy for telecom sector is in the offing. Pakistan
Telecommunication Company Limited (PTCL) is the largest telecommunication company of
Pakistan. PTCL provide telephone service to whole nation and working as a backbone in
telecommunication infrastructure despite arrival of a dozen other telcos including telecom
giants like Telenor and China Mobile. The PTCL has round about 2000 telephone exchangeswhich provide a large fixed line network across the country. PTCL also provide GSM,
CDMA & internet which make it a gigantic organization. The 26% of PTCL shares were sold
by the Government of Pakistan to Etisalat in 2006.
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2.3 HISTORY OF PTML UFONE
PTML of PTCL (Pakistan Telecom Company Limited), the largest operator in Pakistan.PTML was establishing to operate cellular telephony. The company starts working in January
29 2001.Since Etisalat took over PTCL in 2006, during the year as a consequence of PTCLs
privatization, 26% of its shares were acquired by Emirates Telecommunication Corporation
(Etisalat). As Ufone is a part of PTCL therefore the management of Ufone was also handed
over to Etisalat.
Since its inception, The focus of Ufone is the people of Pakistan , empowering them with the
most relevant communication modes and services that allow them to do a lot more than just
talk, at a price that suits them the most. Along with the claim of lowest call rates, clear sound
and best network, Ufone offers its customers simplified tariffs with no hidden charges. With a
strong and exclusively amusing communication direction that has now become Ufones
signature across all advertising media, Ufone gives its customers many reasons to smile.
This customer focus and best offering has allowed Ufone to build a subscriber base of over
20 million in less than a decade. Ufone has network coverage in 10,000 locations and across
all major highways of Pakistan. Ufone currently caters for International Roaming to more
than 260 live operators in more than 150 countries. Ufone also offers Pakistans largest
GPRS & BlackBerry Roaming coverage available with more than 150 Live Operators across
105 countries. More recently, Ufone has become a focused and intensive leader in VAS,
constantly introducing innovative services, which have been the first of their kind in the
Pakistani cellular industry.
As the world of telecommunications advances, Ufone promises its customers to stay ahead,
developing and evolving, to go beyond their expectations, because at Ufone, its all about U.
Ufone collected millions of smiles from all over Pakistan. This proves that Pakistan is
smiling and will continue to smile, and this is our mission. Just as we have done in the past 9
years, we will continue to spread smiles among our customers and employees with our
brilliant services, network, packages, offers and policies because today, tomorrow and
forever, its all about U!
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2.4 MISSION STATEMENT OF UFONE
To be thebest Cellular option for U
2.5 OVERVIEW OF UFONE
Ufone one of the foremost telecommunication company in Pakistan. As mobile users in the
country have reached over 28 million at very rapid pace, Ufone has maintain itself as the 2nd
largest cellular operator in Pakistan with a subscriber base of around 6.5 million and market
share of nearly 25%.Ufone has seen a subscriber growth rate of over 200% in the last year,
and the start of 2005 Ufone added nearly 5 million subscriber onto its network .A remarkable
achievement indeed, especially considering the fact those two new international players also
entered to market in 2005.Subsequently the growth in subscriber based caused a healthy trend
in revenue which have doubled.
Ufones operational performance has been very hopeful. Despite the stiff competition in
Pakistan telecom market which has led to decrease of prices to bare minimum level, due to its
violent policies and exercise strict control over expenses the company manage to improve its
revenue and after-tax profit by 37% & 54% respectively, as compare to last year. After
Mobilink, Ufone is the second cellular provider company that is based on GSM technology.Basically they are using GSM 900 technology with version 2001. Apart from this they are
very strong in technological developments especially they have a well-establish research and
development departments that is working on new technology. Likely they are the first
company in Pakistan that is offering GPRS facility to their customers.
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2.6 MANAGEMENT PROFILE OF UFONE
In this part of the report I will talk about the flow of command that exists in Ufone. In Ufonethe chain of command is very bend, in general the whole setup is centralized, all the matters
are to be reported to the main company and all the policies and targets are accepted at the
higher level. But at the department level the arrangement is decentralized.
Management Hierarchy
Error: Reference source not found
President and CEO Mr. Abdul Aziz
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CEO
GM
Customer
care
GM
HR & Admin
GM
Finance
GM
Information
Systems
GM
Marketing
GM
Engineering
GM
Quality
AssuranceBusiness Unit
Manager
(BUM) North
BUM South
BUM Central NOTE:
Similar
Lines for
the other
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Chief Financial Officer Mr. Mohammad Nadeem Khan
Chief Officer Government & Regulatory Affairs Mr. Naveed Khalid Butt
Chief Officer Customer Services Operations Mr. Ahmad Kamal
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Chief Technical Officer Mr. Jafar Khalid
Chief Information Officer Mr. Faisal Khaliq
Chief Officer (Sales & Distribution) Mr.Younas Iqbal Sheikh
General Manager Marketing Mr. Akbar Khan
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General Manager Corporate Strategic Planning & PMO Mr. Moqeem ul Haque
General Manager Administration Mr. Mohammad Zahid Qureshi
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CHAPTER-3
DEPARTMENTS IN UFONE
3.1 DEPARTMENTS IN UFONE:
Every organization can be divided into certain departments and every departments acts
various types of jobs and required specialization skill to perform the important job. It boost
the power of workers and make job easier departmentalization in an organization could be
judged through various aspects. Ufone is comprised of several departments. The division is
made on the based of functions and job they perform. Hence it can be conclude that Ufone
has adapted to the policy of practical departmentalization.
In this chapter I will discuss the different departments and their functions how ever my main
focus will be on the marketing department because my specialization is in marketing.
Human Resource Department
Technology Department
Finance Department
Audit Department
Marketing Department
3.2 HUMAN RESOURCE MANAGEMENT
Human Resource Management has always been the key factor in an organizations
achievements. The employees of an organization forever decide the way of success for thebusiness. The primary anxiety of HRM has been on the subject to mould the personality of
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employees in a method which formulates the individual goal of the staff into the
organizational objective.
Human Resource Department at Ufone
The Ufone have the following three sub units of HR Department:
Training and Development
HR Operations
Outsource Operations
3.3 TECHNOLOGY DEPARTMENT
After Mobilink Ufone place the second leading service company based on modern
technology Ufone is very strong on technology it is the first company of Pakistan which is
offering GPRS facility to its customers. The option of modern technology is important in thisindustry because it can provide the operators with product differentiation in a crowded
market.
For any operator, in selecting GSM technology, there are two routes to follow. Either start as
a technology leader with large investments in GSM / GPRS / EDGE technology or start a
phased roll out and adopt a build as they come approach, using infrastructure sharing and
roaming arrangements to provide coverage to its users. The first approach allows the operator
to charge a price premium and rollout services on top of its higher speed network. The second
approach is accompanied with a price discount strategy capturing the low-end market
segment in the initial phase and moving on later to the higher border customer.
3.4 FINANCE DEPARTMENT
The cellular phone sector that it has witnessed tremendously harsh competition among its
market players particularly in the race of subscribers addition, calls and SMS tariffs and
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value added services for last two years. Besides competition, global credit chomp, reduction
of rupee against dollar, countrys economic slow down and high taxation on telephony
services have altogether shrunk revenues and dragged down almost all cellular phone in
couple of years.
However, Ufone has shown positive growth in this period with the support of its parents
company. Telecom analysts provided reasons behind Ufones steadiness in hostility the
terrible situations, saying that Ufones packages that include PTCL landline and wireless
calling services coupled with the high traffic of daily SMS bundles have increased its income
through its customers. Free minute offers and introduction of Ramadan packages jacked up
the revenues of the company in Jul-Sep 2009. Ufone continued high earning growth in 2010-
11 with net profit of Rs 506 million.
Ufone, the wholly owned subsidiary of PTCL, has witnessed an overall revenue increase to
9.214 billion in the closing quarter of 2010-11 as compared to Rs 8.708 billion revenue
earned in the same period of the last year. Despite the powerful competition among the
cellular phone operators of the country, the PTCL subsidiary has continued to earn profit as
against other foreign cellular phone companies facing harsh financial constraints in the last
couple of years.
3.5 AUDIT DEPARTMENT
In business auditor is essential tool especially when reporting financial report. In Ufone the
audit is carried out for different departments separately, in the marketing department the audit
team of Ufone identify the market gap and the reported deficiencies are regularly sent ondaily basis to the head office. The audit team investigates the franchises activities. The
following activities are monitored by the audit team, market availability of Scratch Cards, u
load, Sims.
Merchandising of Ufone e.g. Poster, Banners etc. It also includes booth activity at different
market places for the customer consciousness. And also check the universal data for the
purpose of getting the true and correct in formation of retailers. Surprise visit of market check
the inventory of Retailers. We establish strong relationship with the dealers and Retailers.
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Managing the sales team and motivating them and hire them know direct Marketing and
sales. Meeting with the Ufone franchises for setting of targets for PPC and U Load sale for
Business development; Capturing Market share by tale marketing team.
3.6 MARKETING DEPARTMENT
The main concept of marketing is to identify the need of market in the desire line of business
and according to the need identified in the market satisfying it in the best possible manner.
The major activities that are carried out in marketing are generally known as the 4Ps of
marketing that are planning of Product according to the market need, planning of Price so that
the company should meet its costs & survive itself in the market, Place i.e. identifying
appropriate market place for the sales of the product offered, Promotion giving awareness to
the market about the product offered by the company. There are four marketing departments
of Ufone they are:
Brand Marketing
Value Added Service(VAS)
International Roaming
Marketing Operations
3.6.1 Marketing Department
3.6.2.Competitors
This is hard core competition in Pakistan among cellular companies. Mobilink is market
leader and Ufone is market challenger in the market. Newly introduce ZONGE, Telenor, and
Warid are also considered as strong competitors. The following are Ufone direct
competitors:-
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Mobilink
The Mobilink Pakistan cellular company has 10 million subscribers. The Mobilink Company
is the largest cellular company of Pakistan.
Telenor
One of the stronger competitors of Ufone after Mobilink is Telenor. The sound quality of
Telenor is outstanding and also the GPRS of Telenor is faster than Ufone.
Warid
Warid start working in Pakistan in 2005. The Warid Company is operated by Abu Dhabi
group by Sheik Nahayan Mubarak Al Nahayan. It is also contestant of Ufone.
Zong
ZONG is the first International brand of China Mobile being launched in Pakistan. It is meant
to authorize and release the people of Pakistan in every corner and nook of the country. It will
become a part of their hearts, their minds and bring about a change in their lives that every
one desired but few thought would be possible.
Ufone also considers the following as its competitors:
PTCL WIRELESS
Wateen Telecom
World Call
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Competitive Strategy
The competitive strategies of Ufone are customer differentiation and intimacy. Ufone aims
are passing Mobilink in its competitive race.
Comparison of Telecom Companies using BCG Matrix Approach:
Star
High
Low
Question Mark
Cash Cows
Dogs
Relative Market Share
High Low
3.6.3 Market Share
In this highly competitive market the market share of a company is considered as a strong
parameter. Mobilink was the market leader for a long time both in term of revenue and
subscriber for first time. But when new competitors come to market like Zong start work in
the market it change the market structure but still Mobilink holds maximum shares in market.Now customers have enhanced and more choice to select a brand. The following figure
shows the companies share in market in term of subscribers during 2008-009 & 2009-010.
Mobilink lost its 15% shares during this year. While others companies show that they
increase their shares. Telenor is the second highest share holder in market with 22.2% shares.
Ufone has 21% & Warid 19% shares. Others companies except Zong & Ufone lose their
shares and these two increases there shares from 1% to 4% and 15% to 19% respectively.
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Shares 2009_2010
Mobilink 30.88%
Insta phone 22.15%
Zong 6.77%
Ufone 21.20%
Telenor 22.2%
3.6.4 Ufone Brand
In order to develop gradually Ufone customers they improve and make livelier. The image of
Ufone is due to changing in their visual uniqueness. The value of Ufone is to connect and
provide service to the people of all ages. It does not matter for Ufone that who are you, where
you are, what you want and say, how you feel because Ufone is all about you and you are themain focus of Ufone.
3.6.4.1 Prepaid
Ufone welcome you in Ufone prepaid community because with Ufone you can call and send
SMS with low rates. The Ufone know that people want to touch with their friends and family
that is why Ufone provide low call rates. The Ufone provide scratch cards for prepaid
customers which ensemble to their budget and can recharge easily.
Prepaid IR
The world most reasonably priced and economical tariff offering now in various important
destinations.
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3.6.4.2 Post Pay
Ufone welcome you in endless possibilities post pay connection which connects you to attain
the unexpected. Ufone post pay connection is for those people who want and expect more
from life. The aim of Ufone is to provide most superior mobile phone service, quality
network, and best customer service for their customers. One can enjoy special discounts,
GPRS, Umail and internet roaming from Ufone.
3.5.6 BlackBerry
BlackBerry is solution for connecting mobile professional to customers with colleges while
they are on move. The BlackBerry can be coordinated with ones laptop, office computer and
can also be linked with web mailbox. Blackberry is advance technology device which is
simple and easy to use like:
You can make and receive calls with BlackBerry and you can also send mail or text messages
from BlackBerry.
3.6.7 Recharge Option
You can easily recharge your prepaid easily. You can recharge your prepaid with scratch
cards, U Top up, MTM or SMS and electronic vouchers.
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U Load
Through U load you can easily recharge prepaid. U load is alternative for those customers
where scratch cards are not available.
Scratch Card
Through scratch cards you can also recharge youre prepaid easily. It is the easier and simply
way to recharge. The denominations of scratch cards are;
Rs.100 6 months
Rs.250 6 months
Rs.500 1 year
Rs.1000 1 year
3.6.8 Detail of Prepaid Calls
For the first time Ufone initiate print option of prepaid call details. The detail of prepaid calls
creates customer trust on Ufone. In calls detail you can ensure your outgoing calls. For
availing this service Rs.50 is charged from balance. You can receive detail of calls from
service center or to contact with call center of Ufone.
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3.6.9 International Calls
Ufone offer more eagerly payable rates of international calls as compared to local calls.
Ufone brings the most willing payable call rates now call to your friends in UK, USA and
Canada from 12am to 8pm at lowest call rates i-e 45 paisas per 30 second.
Prepaid Roaming
Ufone Prepaid offers international roaming at very low price in market as compare to others.
International roaming not lavishness for prepaid and there is no need to deposit security forinternational roaming. Ufone now offer it on very low cost. You can get this service by
calling Ufone call center. Ufone also offer for international MMS. Now both prepaid and
postpaid customers can send international MMS.
3.6.10 Conference Call
Now with Ufone conference call you can talk with up to six different peoples at a time. To
activate this service simply send sms to SUB to6789. Conference call is used to discus
business issues.
Pricing
The activation charges of this service for one time are Rs.300. Both postpaid and prepaid can
use this service.
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3.6.11 Collect Call Service
In Pakistan Ufone for the first time initiate collect call service. You can remain connected
even if have no balance. Collect call provide you expediency calling if your balance does not
allow you to call. You can make a collect call by dialing 11 before Ufone number.
3.6.12 Call Block Service
Now you can block all unwanted calls with Ufone call block service. Ufone was the first in
Pakistan which introduce call block service.
Call Block Service for Post pay:
For first time in Pakistan the post pay users can also use the call block service. The post pay
users can also block unwanted SMS. You can activate this service by sending SMS SUB to
420 once you save the sitting of this service on your mobile then you can block SMS &
unwanted calls. You can deactivate this service by sending SMS UNSUB.
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3.7 FAVORITE CELLULAR OPERATOR 2009
In Pakistan 2009 was very competitive for cellular companies. New products, ads, packages,
offers, social media etc were use in competition by the companies. But among them Ufone
was the preferred cellular company.
3.8 BEST BRAND AWARD IN TELECOM IN 2009 FOR UFONE
Ufone is strongly focusing on services of high qualities, and this is the Ufone standard. Ufone
is considering one of the best network in Pakistan, as compare to other network its pricing
strategies are such which are affordable for any class of users. Recently Ufone lunch Tension
Free Package. In this package Ufone offer Rs 1.2 per mint Ufone to Ufone and Ufone to other
network. From time to time new strategies are revised keeping in view the market conditions.
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CHAPTER-4
ACTIVITIES PERFORMED IN INTERNSHIP
4.1 ACTIVITIES PERFORMED IN INTERNSHIP:
During my internship in Ufone FranchiseAbbott Abad, I perform different types of
activities. While performing my internship in Ufone franchise I worked inside the Ufone
franchise and also visit many different places with my senior colleges.
We visit different private and government offices and there we introduce and market our
products.
I also work inside the franchise and there our work was to guide the customers and tell
them about our products and new packages. The main duties which I performed darning
my internship in Ufone franchise are discus below in detail.
Visit of different offices
Visit of Mobile shops
Dealing in franchise with customers
4.2 VISIT OF DIFFERENT OFFICES
During visit of these different Government and private offices we meet the people and tell
them about Ufone different packages and convince them to use Ufone. And we claim that
the aim of Ufone is to provide most superior mobile phone service quality. The main
purpose of targeting professionals is to market Ufone Post pay. Because Ufone post pay is
very convenient for such kind of people. Through Ufone the businessmen can also use
collect call service by which they can easily discuss business matters with many people at
a time. They can also recharge it very easily by scratch cards and also through ATM.
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The main points of Ufone Post pay that we tell to the customers or businessmen and
convince them to buy Ufone are the following. Special discounts: on a range of talk plans
you can choose from:
Virtual Private Network (VPN): Your own private network within the Ufone
network.
GPRS: Internet Access on your GPRS enabled phone & mobile office so you can
be in touch with business while you are out and about.
Umail: To enjoy wireless email products.
International Roaming: in countless destinations, keeping you connected
worldwide.
Exclusive Customer Care: with personal service to help set up your phone to suit
your needs.
Ufone Post pay with its technological edge, great value for money and unmatched
quality is your perfect companion on the road to success.
4.3 Visit of Mobile Shops
Darning the mobile shops visit we visit different shops in the market. There we introduce
our products i-e Ufone post paid pre paid and others packages which Ufone provide to
their customers. We give full detail of Ufone package that it offer to Ufone user like Ufone
prepaid offer the following packages to pre paid user Ufone welcome you in Ufone
prepaid community because with Ufone you can call and send SMS with low rates. The
Ufone know that people want to touch with their friends and family that is why Ufone
provide low call rates. The Ufone provide scratch cards for prepaid customers which
ensemble to their budget and can recharge easily. And Ufone post paid offer these
packages to their users Ufone welcome you in endless possibilities post pay connection
which connects you to attain the unexpected. Ufone post pay connection is for those
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people who want and expect more from life. The aim of Ufone is to provide most superior
mobile phone service, quality network, and best customer service for their customers. One
can enjoy special discounts, GPRS, Umail and internet roaming from Ufone.
4.4 Dealing with Customers in Franchise
I also deal with customers in franchise and guide them and also tell them about different
packages of Ufone. And give them the reasons that why one must switch to Ufone. We tell
them that Ufone provide vide range network give you clear sound during call and also
provide you quick connection while you are calling.
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CHAPTER-5
SWOT ANALYSIS OF UFONE
5.1 UFONE SWOT ANALYSIS
The SWOT analysis is the company overall evaluation a companys strengths, weaknesses,
opportunities, and threats.
5.1.1 Strengths
Strengths are the internal resources, capability, and positive factors which is necessary for
company to achieve its goals. The following are the strengths of Ufone:
The biggest strengths of Ufone is its separation from others companies. The things
that separate Ufone from others companies and competitors is it low calls rates.
The value added services that is offered by Ufone is better than others companies i-e
Smart code, Call Block Service, Collect call etc.
The ATL (Above the Line) activities of Ufone are more good-looking and promising.
The internal and external management of Ufone is great.
The Biggest strength of Ufone is its status through out the country, the people of
Pakistan believe Ufone as it national company & mostly people wish to use Ufone.
Ufone is measured to be the second largest telecom co in Pakistan therefore it is
enjoying economy of scale.
Ufone is a government company and therefore it enjoys a lot of concessions, which
the private cellular companies cannot enjoy.
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GSM technology: It has well-built brand exceptionality. It has successfully projected
itself as a company meant to serve up its people.
Ufone has Wide network. Ufone has a wide-ranging promotional strategy.
Ufone has a joined network of franchises.
The grate substitute for prepaid customers is Electronic Voucher Distribution.
This service is great because it make sure that the credit want for Ufone connection
will always be easily reached on-demand.
5.1.2 Weaknesses
Weaknesses contain internal limitations and negative situational factors that may obstruct
with the companys performance. Ufone has the following weakness:
Ufone has less professionalism within the managerial members.
Ufone still has chance for the betterment of its network exposure in assessment to The
Market Giant MOBILINK.
The billing system of Ufone for prepaid customers is not good which generate
negative image in customers mind.
Ufone being a government organization has comparatively less human and monetary
capital accessible as compared to its leading competitors that are subsidiaries of large
multinationals such as Mobilink and Telenor.
Customer services provided by Ufone are not according to the necessities of their
customers.
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5.1.3 Opportunities
Opportunities are positive factors or trends in the external environment that the company may
be able to develop to its benefit. The followings are the opportunities for Ufone:
Ufones major opportunity two-faced in front near future is the phase of adaptation of
their GSM technology & 3G (satellite based) technology.
Ufone has the opportunity of raising its customer hold up due to growing propensity
of using mobile phones.
By improving their network Ufone can augment its customers.
The Ufone has also the opportunity that it is lead the way in southern Punjab where it
can encourage itself and become market leader on the basis of this very information.
The Ufone can also improve its network encourage in order to make additional
trustworthy customers.
They should give jobs to students by calling different universities and other
organizations. They can position their job advertisements on university bulletin
boards and also ask the fresh graduates for walk in interviews.
5.1.4 Threats
Threats are critical external factors or trends that may present challenges to performance.
Ufone is parallel/about to face the following intimidation:
Ufones biggest opportunity is its biggest danger as well. The phase of its adaptation
of GSM technology to 3G technology can be a risk for it if not accepted correctly.
The boosting customer base of Warid and Zong is also a big warning for Ufone.
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The declining market rate and unpredictability of Pakistan is a big danger for all
businesses in Pakistan as well as Ufone.
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CHAPTER-6
6.1 FINANCIAL ANALYSIS
6.1.1 CPM -COMPETITIVE PROFILE MATRIX
EFE is used to collect competitive intelligence information from external from external
environment .It not focuses on internal issues .where as CPM is little different from EFE it is
also consider the internal issues and the best feature of CPM that it allow to compare the
competitor critical success factor with your organization.
Find out critical success factor.
Assign weight to each factor depend up how important the specific factor for the
organization success.
The weight range from 0.0 to 1.0 lower number shows no or minimum importance
and high weight show more importance of factor to the company.
Assign rating to each factor depends upon how well organization respond to that
factor.
Assign a 1 - 4 rating to each critical success factor to indicate how effectively the firm's
current strategies respond to the factor.(1= response is poor ,4=response is extremelygood )
Multiply each factors wait by its rating to determine a waited score.
*Average total weighted score is 2.5.
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Competitive Profile Matrix (CPM)
Critical Weigh
Rat
in
Weig
ht Rat in Weigh
Rate
in Weight Rate in Weight
Success t g d g d g d Score ti d
Factors (CSF) Score Score ng Score
Market .15 4 .60 3 0.45 1 0.15 3 0.45
Share
Growth Rate .10 1 .10 3 0.30 4 0.40 3 0.30
Financial .08 3 .24 3 0.24 4 0.32 3 0.24
Strength
Management .12 4 .48 3 0.36 3 0.36 3 0.36
Coverage .1 4 .40 3 0.30 2 0.20 2 0.20
CCS .13 4 .52 3 0.39 3 0.39 2 0.26
Advertising& .06 2 .12 3 0.18 3 0.18 4 .024
Marketing
Brand Name .10 4 .40 2 0.20 3 0.30 3 0.30
Packages& .09 2 .18 3 0.27 3 0.27 4 0.36
Offers
Price .07 2 .14 3 0.21 3 0.21 4 0.28
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Competitiveness
TOTAL 1.00 3.18 2.90 2.78 3.00
The ratings
values are as
follows: 1 =
major weakness,
2 = minor weakness,
3 = minor strength,
4 = major strength.
As indicated by the total weighted scores of 2.78, zong is weakest. Because it is initial
position as compare to competitors. With the point of 3.18 Mobilink is leading.only eight
critical success factors are included for simplicity; this is too few in actuality
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6.1.2 Tough Competition
As Ufone is cellular company and there is cut throat competition among cellular
companies in Pakistan. There are six other companies also working in Pakistan so Ufone
would have to face some growing competitive pressures.
External Factors Evaluation (EFE ) Matrix of Ufone
Key External Factors Weight Rating
Weighted
Score
Opportunities
1 Globalization .12 4 .48
2 Publicity & Marketing .06 3 .18
3 Can target Corporate .10 4 .40
4 Develop New Value added Services .10 4 .40
5 Extend Coverage to Northern area .05 3 .15
6
Introduced international SMS
packages like .06 3 .18
local SMS & call Package
7
Develop some new franchises in
remote areas .08 4 .32
8Introducing Ufone Kiosk just likeATM .05 2 .10
Threats
1
Old Stable Companies & arrival of
China .10 2 .2
mobile Company
2 PTCL cellular license .08 2 .16
3 Price War .05 2 .10
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4 Government interference .12 3 .36
5Pressure groups & health issue dueto tower in .05 2 .10
residential areas
Total 1.00 2.97
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6.1.3 Financial Analysis of Income Statement and Balance Sheet
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED JUNE 30, 2011Horizontal Analysis
2010 2011 %Age %Age(Rupees in thousand)
Revenue 62,040,708 58,642,907 100% 100%Operating costs 31,457,893 33,301,622 50.71 56.79
------------------ ------------------Operating profit 30,582,815 25,341,285Other income 1,548,905 1,304,433 2.50 2.22
------------------ ------------------Profit before financial charges and
taxation 32,131,720 26,645,718Financial charges 3,161,100 3,919,550 5.10 6.68
------------------ ------------------Profit before taxation 28,970,620 22,726,168 46.70 38.75Provision for taxation 10,815,960 9,395,121 17.43 16.02
------------------ ------------------Profit after taxation 18,154,660 13,331,047 29.26 22.73
Inappropriate profit brought forward as
previously stated 279,863 574,909 0.45 0.98
Effect of change in accounting policy -- -7,609,093 0.00
-
12.98------------------ ------------------
Profit / (Loss) brought forward -
restated 279,863 -7,034,184 0.45
-
11.99------------------ ------------------
Available for appropriation 18,434,523 6,296,863 29.71 10.74
AppropriationsTransfer to insurance reserve -107,000 -42,000 -0.17 -0.07Transfer(to)/from general reserve -6,000,000 5,500,000 -9.67 9.38Final dividend @ Rs. 2..4 per share
(2000 Rs. 2.25 per share) -12,240,000 -11,475,000 -19.73
-
19.57------------------ ------------------
-18,347,000 -6,017,000 -29.57
-
10.26------------------ ------------------
Unappropriated profit carried forward 87,523 279,863 0.14 0.48
========== ==========Earnings per share 3.56 2.61 18% 13%
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6.1.4 Profit And Loss Account for The Year Ended June 30, 2011
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Vertical Analysis
2010 2011 %Age %Age
(Rupees in thousand)
Revenue 62,040,708 58,642,907 100% 94.52
Operating costs 31,457,893 33,301,622 100% 105.86----------------
--
----------------
--
Operating profit 30,582,815 25,341,285 100% 82.86
Other income 1,548,905 1,304,433 100% 84.22----------------
--
----------------
--
Profit before financial charges and
taxation 32,131,720 26,645,718 100% 82.93
Financial charges 3,161,100 3,919,550 100% 123.99----------------
--
----------------
--
Profit before taxation 28,970,620 22,726,168 100% 78.45
Provision for taxation 10,815,960 9,395,121 100% 86.86----------------
--
----------------
--
Profit after taxation 18,154,660 13,331,047 100% 73.43
Inappropriate profit brought forward as
previously stated 279,863 574,909 100% 205.43
Effect of change in accounting policy -- -7,609,093 100%----------------
--
----------------
--
Profit / (Loss) brought forward - restated 279,863 -7,034,184 100%
-
2513.4
4----------------
--
----------------
--
Available for appropriation 18,434,523 6,296,863 100% 34.16
Appropriations
Transfer to insurance reserve -107,000 -42,000 100% 39.25
Transfer(to)/from general reserve -6,000,000 5,500,000 100% -91.67Final dividend @ Rs. 2..4 per share
(2000 Rs. 2.25 per share) -12,240,000 -11,475,000 100% 93.75---------------- ----------------
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6.2 COMPETITIVE ADVANTAGES
Its a benefit over competitors gained by present consumers superior value than competitorsoffer. Ufone strategizes to expand more and more competitive advantages. It also uses this
competitive compensation well enough for its promotion. Presently Ufone is enjoying the
following competitive advantages:-
Lowest call rates
Value added Services (VAS)
Call block service
Corporate color
6.3 CHALLENGES
The Ufone face many challenges with the ever rising needs of telecommunication. It has to
stay profitable with the declining economical circumstances of Pakistan. Ufone face very
muscular rivalry from its competitors. It must offer lowest rates with superior quality service.
New features and services should be introduced to make its customers faithful, joyful and
fulfilled.
6.4 PLANS FOR FUTURE
Keeping in view the growth possible of the cellular industry there is no alternative but to be
violent in order to remain a powerful force in the cellular business. In order to expand cellular
network Ufone has finalize a massive network development agreement amounting to about
US$ 550 million, which will improve the subscribers capability by 10 million. This is the
major ever extension plan of Ufone.
A muscular center will be on maintaining high excellence of service, which is always a
standard of Ufone, growing tradition and exploring new income streams on value added
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services, market visibility through a variety of market initiatives to accomplish subscribers
pleasure and insist and above all to increase the value of investment for the shareholders. The
company management is also thinking about direct satellite service in future so that the signal
problems can be cortile and every city and remote areas of the country will be covered
automatically.
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CHAPTER-7
RECOMMENDATIONS & CONCLUSIONS
7.1 RECOMMENDATIONS
Recommendation is rarely welcome; and those who want it the most always like it the
least. Recommendations put forward improvements in areas which have scope for
polishing and development. Criticizing quite a lot of factors at Ufone does not mean thatthese aspects are everlasting flaws of the business. In its place, it is future that these
mistakes be removed. For the elimination of these errors, sure recommendations are
forwarded.
7.1.1 Work Coverage
As compare to other cellular companies and especially the market giant Mobilink the network
coverage of Ufone is very low. If Ufone concentrate on the expansion of the network
coverage the result will be increase of market share & sales. In the remote areas of Pakistan
& especially in Malakand division there are such areas which have no network coverage. Still
in these areas there is large capacity of market share waiting for Ufone to capture.
7.1.2 High Post Pay Tariff
As compared to other networks Ufone post pay tariff is very high. Mostly in the post pay
segment the cellular companies has the cream customers and most of the earnings come from
this segment, therefore it is recommended for the decrease of the post pay tariff to increase
the market share and sales.
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7.1.3 High Rates of GPRS & Mms Facility
Mostly in the cellular market the customers switch to other networks which have low cost of
GPRS & MMS, therefore it is recommended that Ufone should decrease their charges list in
this category.
7.1.4 Franchise & Head office GAP
Most of the times when the franchise lodge a solution for their customers problem the
response is so much delayed from the head office that result in the frustration of the
customers.
7.1.4 Low Pre Paid Cards Percentage
Compared to the other cellular companies the sales commission of the Ufone is not too much
good for the whole sellers & retailers. The whole sellers & retailers spend a lot of money to
purchase the inventory and mostly prefer the inventory which has high sales percentage.
7.1.5 Training Of The Sales Officers
The sales department is the most important department for the cellular companies. The sales
channel of Ufone is too much unsatisfactory. The sales are made through the franchises. The
franchises appoint their own sales staff and salaries are settled from the franchise level. The
sales staff does not enjoy any kind of benefits & training from the Ufone Company. Ufone
needs improvement in this category & needs to train their franchisee sales officers.
7.1.6 Motivation
According to employees of Ufone there is no aspect present for employees inspiration but
the management says that they inspire their employees.
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7.1.6 Have A More Professional Attitude
The Ufone does not follow professional attitude a lot of business personal employees are
assess on the bases of personal relations with upper management.
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7.2 CONCLUSION
By intensely analyzing the Ufone marketing, I agree that Ufone is not a privileged actor inthe marketplace. It is piercing its market by taking risks and forcefully promoting &
advertising itself. It holds second major market share and is looking for to become the market
leader at any rate possible. We came from side to side very option strategies and ad
campaigns while working on this report. We believe that mobile services are the toughest
market to come in and stay alive. And in this hard market Ufone isnt only existing but
growing at an outstanding rate.
Ufone is using humorous theme in its ads which has become its standard. People take delight
in watching, discussing and following Ufone ads the most. And it is the biggest success of
Ufone in current era.
We wish a very best of luck to Ufone. May it development in this field and accomplish its
much loved goals. (AMEEN)
Internship Report on Ufone Abbottabad Branch Page 45
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Iqbal, Fahad, Internship Report on PTML Ufone, University of Central Punjab.
Pakistan Telecommunication Authority, (2009). Annual Report of Mobile Cellular
Services.
PTML Ufone, (2009) Brochures, Tariffs.