final report ufone
TRANSCRIPT
INTERNSHIP REPORT ON
Ufone (Pak Telecom Mobile Limited)
M. Asad Riaz
9620
Internship Report submitted in partial fulfillment of the requirements
For the degree of Master of Business
Administration
At
National University of Modern Languages
Islamabad, Pakistan
February 2011
© Copyright by Asad Riaz, 2011
NATIONAL UNIVERSITY OF MODERN LANGUAGES
Faculty of Information Technology & Management Sciences
It is hereby certified that the report has been thoroughly and carefully read and recommended to
the Faculty of Management Sciences for acceptance of Final Internship Report by Mr.
Muhammad Asad Riaz, Roll No. 9620, Session Aug 2008 to June 2010(Morning), in partial
fulfillment of the requirements for the degree of Masters of Business Administration of National
University of Modern Languages Islamabad. Dated: March 02, 2011
Supervisor Name:
Supervisor Signature:
Panel Member Name:
Panel Member Signature:
Head of Department:
i
Dedication
Dedicated to my Parents,
Teachers and Friends whose guidance
Enabled me
Achieving objectives in life, their
Prays
Enlightened and paved the way to
Success
ii
Acknowledgement
Almighty Allah, the creator of universe and all creatures deserves praise and thanks WHO
differentiated human beings from the rest of HIS creatures by imparting sense and knowledge to
them by pen and taught him which he did not know. Countless Darood and Salaam on HIS
chosen Prophet Muhammad (Peace Be Upon Him), the only source of light linking the
humanity with his Creator. Book is the spring where from knowledge springs and Prophet
Muhammad (Peace Be Upon Him) guided us to seek knowledge through it even if we have to
go for it beyond the limits of visible universe. Knowledge is the source enabling us to
differentiate between light and darkness. Light is the satisfaction of all kind and darkness is utter
confusion and backwardness.
Entire team of teachers of National University of Modern Languages and Sciences has made
considerable contribution in imparting knowledge to the students of the said university. Besides
curriculum special attention was given to build a student fruitful citizen replete with character
and knowledge for which I offer them my whole hearted gratitude‟s.
iii
Executive Summary
Internship was my first step in practical life, through which I learnt a lot and it has aided me in
being well equipped with valuable experience that would help me once I enter the professional
life after the completion of my studies.
This report gives a profile of Ufone and most importantly SWOT, PEST and HR analyses of
Ufone. All of these critical analyses are performed with hard evidential data that, I had collected
in my time as an intern at Ufone from the different department I had chance to work in, also I
had help from internet, and previous researches on Ufone. I learned Ufone is working very hard
to maximize its customers; it is providing new and exciting packages and customers services to
attract and retain the customers. Ufone marketing and pricing strategies are very attractive and
strong and it is very important in the market like Pakistan, where is the market very tough along
with the uncertainty in the rules and regulations. And induction of new and new services by all
the cellular companies in our market made the competition very tough. But Ufone is also
launching new services day by day to attract customers and take the competitive advantage.
Marketing strategies used by the Ufone have a very good impact on the users. Ufone is also
trying for the best pricing strategies to attract more customers.
This report also reflects my learning and experiences at Ufone along with my responsibilities and
tasks that I performed.
Last part of the report consists of some recommendations and suggestions that I have given. My
proposal would great use to Ufone and if followed properly, it can increase the performance of
employees and finally the performance of the organization itself.
iv
Table of Content
Introduction .............................................................................................................. 1
1.1 Company Profile ................................................................................................................................. 2
1.2. Products or Services Offered ............................................................................................................. 3
1.2.1. Ufone Prepay .............................................................................................................................. 3
1.2.2. Ufone Postpay ............................................................................................................................. 3
1.2.3. Ufone for Everyone ..................................................................................................................... 3
1.2.4. U-Circle ....................................................................................................................................... 4
1.2.5. U Share ........................................................................................................................................ 4
1.2.6. Mobile Number Portability ......................................................................................................... 4
1.3. Organizational Structure .................................................................................................................... 4
1.3.1. Finance Department .................................................................................................................... 6
1.3.1.1. CNC ......................................................................................................................................... 6
1.3.1.2. Budgeting and Planning ........................................................................................................... 6
1.3.1.3. Accounts .................................................................................................................................. 6
1.3.1.4. Revenue Assurance .................................................................................................................. 6
1.3.2. Marketing Department ................................................................................................................ 7
1.3.2.1. Brands ...................................................................................................................................... 7
1.3.2.2. Marketing Strategy and Analysis ............................................................................................. 7
1.3.2.3. VAS – Value Added Services .................................................................................................. 7
1.3.3. Information Technology Department .......................................................................................... 8
1.3.3.1. Billing ...................................................................................................................................... 8
1.3.3.2. IT Development ....................................................................................................................... 8
1.3.4. Customer Operations Department ............................................................................................... 8
1.3.5. Engineering Department ........................................................................................................... 10
1.3.6. Sales Department ...................................................................................................................... 11
1.3.7. Human Resource Department ................................................................................................... 12
Critical Analysis ..................................................................................................... 16
2.1. SWOT Analysis ............................................................................................................................... 16
2.1.1. Strengths ................................................................................................................................... 16
2.1.2. Weaknesses ............................................................................................................................... 18
v
2.1.3. Opportunities ............................................................................................................................. 19
2.1.4. Threats ....................................................................................................................................... 20
2.2. Pest Analysis .................................................................................................................................... 21
2.2.1. Environmental analysis ............................................................................................................. 21
2.2.1.1. Consumer packages................................................................................................................ 22
2.2.2. Growth rate of entire industry ................................................................................................... 23
2.2.3. Social and political analysis ...................................................................................................... 23
2.2.4. Political Analysis ...................................................................................................................... 25
2.2.5. Technolgical Analysis ............................................................................................................... 26
2.2.6. Economic Analysis ................................................................................................................... 27
2.2.7. Social Environment ................................................................................................................... 28
2.3. Human resource analysis ................................................................................................................. 28
2.3.1. Recruitment & Selection ........................................................................................................... 28
2.3.2. Training & Development .......................................................................................................... 31
2.3.3. Performance Appraisal .............................................................................................................. 32
2.3.4. Compensation & Benefits ......................................................................................................... 34
Internship Experience ........................................................................................... 36
3.1. Internship Experience ...................................................................................................................... 37
3.1.1. Week 1 ...................................................................................................................................... 38
3.1.2. Week 2 ...................................................................................................................................... 38
3.1.3. Week 3 & 4 ............................................................................................................................... 38
3.1.4. Week 5 ...................................................................................................................................... 39
3.1.5. Week 6 ...................................................................................................................................... 40
3.1.6. Week 7 & 8 ............................................................................................................................... 40
Recommendations and conclusion ....................................................................... 41
4.1. Recommendations ............................................................................................................................ 42
4.2. Conclusion ....................................................................................................................................... 43
References ............................................................................................................... 45
1
Chapter 1
Introduction
2
1.1 Company Profile
Pakistan Telecom Mobile Ltd, operating under the brand name of „Ufone‟ a wholly-owned
subsidiary of PTCL commenced its operations on 29th January 2001 as a GSM 900 service
provider. Since the outset it has expanded its coverage and customer base at a rapid pace and
established itself as one of the leading cellular service providers in Pakistan. Ufone is now
considered to be one of the most active, aggressive and innovative players in the mobile sector of
Pakistan. The growth of cellular sector in Pakistan can also be attributable to good governance
and conducive policies of the government of Pakistan In connection with that in April 2006
Emirates Telecommunication Corporation, which is commonly known as Etisalat, has assumed
management control of Pakistan Telecommunication Corporation Ltd – part of the $2.6bn deal to
buy a 26% stake. The successful privatization of PTCL, and consequently Ufone, is hailed as
ushering in a new era for telecommunications in Pakistan. As mobile users in the country have
reached 88 million at a very rapid pace, Ufone has a subscriber base of nearly 17.5 million and a
market share of nearly 21%. Ufone has seen a subscriber growth of over 10 million since July
2007 onto its network. Subsequently the growth in subscriber base caused a healthy trend in its
revenues and margins. Ufone has always played a pivotal role in the development of cellular
market in Pakistan. For most part it has been a step ahead in introducing innovative products to
the market. Ufone was pioneer in launching the GPRS services and Multi-media Messaging
Service (MMS) in Pakistan, including the lead in introducing GPRS international roaming and
prepaid international roaming for these services in the Pakistani market. Currently Ufone has
expanded its product portfolio to include Black Berry handsets and providing one of the largest
EDGE networks in the country today. Ufone understands the need to communicate effectively
and efficiently at all levels of society, which is why various products are catering for the needs of
3
the Pakistan corporate market. It offers services such as mobile office, Virtual Private Network
(VPN), and a lot more to revolutionized communication. Ufone provides International Roaming
facility with more than 215 international operators across 124 countries. Ufone has GPRS
roaming agreements with more than 100 international operators and also provides prepaid
roaming facility to more than 15 destinations across the country.
1.2. Products or Services Offered
Ufone understands the value of words and the need to communicate effectively and efficiently at
all levels of society, which is why company‟s primary focus is on U. Ufone offers, Prepay &
Postpay services in the Telecom sector.
1.2.1. Ufone Prepay
Ufone prepay is the product segmented for the youngsters. They are segmented on the basis of
their age and status. They recharge through the prepaid cards whenever they feel comfortable to
load the cards.
1.2.2. Ufone Postpay
Ufone Postpay is created for the executives and business class people, who require making
callswithin the country or internationally for the business purposes. Business executives enjoy
the benefits and value added services connected with Postpay product of Ufone
1.2.3. Ufone for Everyone
The telecom market‟s growing rate in Pakistan is higher than any Asian country. Ufone offers
lower rates and better network then other already established cellular companies. All living
standards have been captured by Ufone, like Students, Labor and Businessmen, etc. Ufone aims
4
to provide with wider coverage, superior connectivity, clear signals & voice quality to their
valued customers.
1.2.4. U-Circle
Prepay provides an easy way to call Friends & Family. Ufone is making it easy for its consumers
to call friends & family with U Circle. Now the consumers can talk more for less with the most
economical rates to call their Ufone Circle.
1.2.5. U Share
Ufone Prepay customers can now share their balance with each other through a simple SMS in 3
easy steps.
1.2.6. Mobile Number Portability
Ufone welcomes consumers to bring their mobile number to the best service. Through Mobile
Number Portability (MNP), mobile phone subscribers can retain their mobile phone numbers
when they change mobile operators. Therefore a 0300-xxxxxx or 0345-xxxxxxx can be a Ufone
customer in the MNP regime.
1.3. Organizational Structure
The organizational Structure at Ufone is Lean or Horizontal structure. One of the organizational
functions of Ufone in relation to its hierarchy is, the company is having Decentralized structure.
The flow of communication becomes easy and simple in such structure. It is divided into
different departments and every department has its head and all are interconnected.
5
The concept of Departmentalization is effectively in practice at Ufone. There are different
departments which are working within their functional units to contribute towards the success of
organization and to achieve the overall goal of the Organization. Ufone has 8 departments that
are working efficiently and all are interacting with each other to make it a much better company
by satisfying its customers demand. The structure of Ufone comprises of Board of directors who
are being reported by CEO, Chief Executive Officer. CEO is a great supervision to the 8 Major
operations of the company. These operations are divided into departments that are:
6
1.3.1. Finance Department
The head of finance department is designated as CFO – Chief Financial Officer or Vice president
of financial head. There are further 4 subheads in Finance Department:
1.3.1.1. CNC
The department is responsible for Credit exposure for Ufone postpaid connection. The
department maintains the record of all postpaid subscribers in order to ensure the subscribers
validity.
1.3.1.2. Budgeting and Planning
The department is working over the budgets, the planning of budget and its reports to the
authorities. This head provides the annual budget to be spent. The function of this head is also to
forecast any opportunities or threats towards the organization. The reporting of the budget is
being done on the monthly basis to the head of financial officer to keep the record of the budgets.
Relationship with banks are also being maintained in order to get help in the need time.
1.3.1.3. Accounts
The accounting head is responsible for the book keeping of the records. The internal audits are
done to ensure the stream lined working of the processes as well as external audit by the
Accountancy firms.
1.3.1.4. Revenue Assurance
There are Revenue Assurance policies & procedures being made by the personnel. This
assurance head also Liaise with other departments, obtain, analyze and reconcile reports to
ensure prevention of revenue leakage. The sub-head also ensure error free billing operations,
deployment of key revenue assurance applications/solutions, fraud management.
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1.3.2. Marketing Department
The head of marketing department is designated as CMO- Chief Marketing Officer or Vice
President of Marketing Head. The department has further 3 subheads working in specialized
manner according to the skills and abilities of the employees.
1.3.2.1. Brands
There are basically two products of the Ufone which serves as the brands of the company. This
sub-head is responsible for the execution of the Brand Activities. Ufone is performing the
promotional activities in Brands sub-head, including advertising over Electronic media and print
media. The promotional strategies are made by the sub-head to get the implementation.
1.3.2.2. Marketing Strategy and Analysis
The sub-head is working in order to formularize the marketing strategy according to the market
requirement and consumer preferences. The analysis about the market trend is done and the
strategies are made in relevance. Moreover, competitors are biggest source of reacting towards
the marketing activities. Ufone is having a proactive marketing concept in context of
competition.
1.3.2.3. VAS – Value Added Services
VAS sub-head is responsible for proficient functioning of conveniences provided to the
customers, these VAS are Virtual Private Network, Call Management, Missed Call Notification,
Phonebook Saver and a host of Infotainment and Entertainment services.
8
1.3.3. Information Technology Department
While being a part of information technology and telecommunications, Ufone is having a major
department of Information technology. The head of information technology is termed as CIO-
Chief Information officers. IT department is working with the division of further 2 sub-heads.
1.3.3.1. Billing
The billing department is responsible for aggregating CDRs and preparation of the postpaid
billing for customer from system.
1.3.3.2. IT Development
Any kind of IT development required by the company in billing or CRM (Customer Relationship
Management) module is done by IT development team.
1.3.4. Customer Operations Department
Ufone provides customer care through Customer Care Center located in all key cities, across the
country. Ufone‟s customer care representatives are more helpful. They will not only resolve
Consumers issues but also guide them into customizing Ufone, according to their needs.
1.3.4.1. Call Centre
Cal centre representatives are providing services, 24 hours a day. The customers can contact the
Ufone Call Center to get answers to all their queries. Some of them include:
Bill enquiry (credit limit, expiry date etc.)
Reporting of lost phone
Number blocking in case of lost or stolen SIMs
Connection status (active / inactive)
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Tariff
Products information
Ufone Sales & Service Center information
Nearest dealer information
Ufone coverage areas
Emergency number information
International roaming information
Value added services information
Missed call alerts
Call forwarding
Conference call
FNF Activation / Changes
Post Pay Reward Redemption
1.3.4.2. Business Centre
The business centre of Ufone are offering various services to their customers, they are basically
company owned centre, the business centre offers the SIM issuance and other customer related
issues, retention of customers and handling requests for Mobile number portability.
1.3.4.3. Govt. Relations
PTA – Pakistan Telecom Authority is the regulatory authority in Pakistan concerning the
network operators as well as telecommunication practices. Ufone is also abiding the rules that
are being made by PTA. The relationship with PTA is also being maintained as PTA is Govt.
regulation.
10
1.3.5. Engineering Department
The engineering department is Backbone of the company. The head of the department is termed
as CTO - Chief Technical Officers or Vice president. The Engineering department is divided into
4 sub-heads
1.3.5.1. BSS – Business Support System
The subhead is responsible for Radio Planning and network optimization.
1.3.5.2. NSS – Network Switching Subsystem
The Network Switching Subsystem, at Ufone refers to as the GSM core network, usually refers
to the circuit-switched core network, which is being used by Ufone GSM services such as voice
calls, SMS, and Circuit Switched Data calls.
There is also an overlay architecture on the GSM core network to provide packet-switched data
services and is known as the GPRS core network. This allows mobile phones to have access to
services such as WAP, MMS, and Internet access. All mobile phones manufactured today have
both circuit and packet based services, so Ufone as a network Operator that is having a GPRS
network in addition to the standard GSM core network.
1.3.5.3. IN – Intelligence Network
The Intelligent network‟s main purpose is to take care of charging of prepaid customers and has
the balance updates of each of the customer.
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1.3.6. Sales Department
The sales department at Ufone is headed by Vice president Sales. The department is being
divided into 3 main sub-heads.
1.3.6.1. Corporate Sales
The division of the sales department is handling the sales for executives or corporate clients.
These clients are having postpaid products with billing system.
1.3.6.2. Franchises & Retail Outlets
This division is handling franchises and retail outlets with a network of more than 365 franchises
and 25 company-owned customer service centers along with a distribution network of 150,000
outlets nationwide.
1.3.6.3. Sales operations
Sales operations at the company have been set up to provide the customers, quality services all
under one roof so consumers can walk in to any Ufone Sales & Service Center for services like:
Mobile Number Portability
Connection purchase
Bill payment
SIM Activation
Number blocking in case of lost or stolen SIMs
Transfer of subscription
Changing access levels
Number change
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Address change
SIM replacement
Product / package change
Activation of VAS
Connection closure
Handset & other mobile accessories
PIN / PUK code number inquiry
GPRS
IR activation
Missed Call Notification
Call Forwarding
Conference Call
FNF Activation / Changes
Post Pay Reward Redemption
1.3.7. Human Resource Department
Human Resource department is being headed by the HR executive designated as Chief of Human
resource department.
Ufone focuses a lot on its HR department and for that the HR manager ensures:
Collaborative and mutually supportive work environment is created that encourages
people to grow.
Team of professionals is built which delivers expertise by participating in business
decisions.
13
Performance Management and Reward Systems are developed which underlies the
Business strategy of Ufone.
A clearly defined Recruitment & Selection policy is defined.
The need for Training & Development of employees is assessed.
Compensation & Benefit plan is developed which ensures that employees are motivated.
Right systems are placed to encourage people to develop to their full potential.
The department is working for the personnel in the organization. There are 3 main sub-heads in
the department.
1.3.7.1. Recruitment and Compensation Benefits
Ufone has this policy of not mentioning the name of the company in a job advertisement.
Usually hiring takes place through outsourcing with a help of a third party. Final selection takes
place after the candidate has been interviewed by the Manager of the department who requires
the new employee and then the HR Manager. A very effective way to retain an employee is to
give him compensation and benefits. At Ufone following benefits are given: Medical Facility to
employee and his/her parents and Paid Vacations, Gratuity, Provident fund etc.
1.3.7.2. Training
Training & Development involves improving the knowledge, skills and abilities of the
individuals. A continuous training is conducted inside Ufone to improve the performance of the
employee. There are two types of trainings conducted at Ufone: In-house Training and External
Training.
14
1.3.7.3. HR Operations
HR operations at Ufone include the working over all Human resource Functions that are
Orientation
Human Resource Planning
HR hiring / recruitment
Selection Process
Compensation and benefits
Training and Development
Human Resource Information system
1.3.7.4. Strategic Planning Department
This department directly reports to Chief Executive officer.
Ufone views strategy as an overall approach and plan. This department monitors the executions
of strategic plans and goals across the business. So, Strategic Planning at company is the overall
Planning that facilitates the good management of a process. Ufone strategic planning is providing
the big picture of company‟s operations and long term goals.
Forecasting the opportunities
Building Synergies
Long-term Planning
15
Chapter 2
Critical Analysis
16
Critical Analysis
A critical analysis is the results of a very careful, detailed evaluation. Companies often use a
critical analysis to find out if someone is working to their full potential.
2.1. SWOT Analysis
The factors that are most important to the organization‟s future are referred to as strategic
factors, and summarized with the acronym S.W.O.T., standing for strengths, weaknesses,
opportunities, and threats. After identifying strategic factors, management evaluates their
interaction and determines the appropriateness of the corporate mission. The first step in the
formulation of strategy is statement of mission, which leads to determination of objectives,
strategies, and policies. Organizations implement these strategies and policies through programs,
budgets, and procedures. Finally performance evaluation and feedback ensure adequate control
of organizational activities.
SSWWOOTT AAnnaallyyssiiss ooff UUffoonnee;;
2.1.1. Strengths
FFoolllloowwiinngg aarree tthhee vviittaall ssttrreennggtthhss ooff UUffoonnee::
SSttrroonngg BBrraanndd nnaammee
EExxppoonneennttiiaall ggrroowwtthh
FFaavvoorraabbllee ppoolliicciieess
SSeeccoonndd llaarrggeesstt cceelllluullaarr ccoommppaannyy iinn PPaakkiissttaann
AAcccceessss ttoo iinnffrraassttrruuccttuurree--nneettwwoorrkk aanndd ssaatteelllliittee lliinnkkss
Ufone is an acknowledged as market leader of all the companies of its kin
17
GGoovveerrnnmmeenntt bbaacckkiinngg aa lloott wwhheenn ccoommee ttoo aa nneeww eennttrraannccee ttoo tthhee iinndduussttrryy aass iitt hhaass ddoonnee iinn
UUffoonnee ccaassee
TThheeyy hhaavvee tthhee llaatteesstt tteecchhnnoollooggyy aass ccoommppaarreedd ttoo aannyy ootthheerr mmoobbiillee ccoommppaannyy
AAss ggoovveerrnnmmeenntt iiss bbaacckkiinngg tthheemm tthheeyy ccaann ggeett aass mmaannyy ffuunndd aass rreeqquuiirreedd bbyy tthheemm ttoo
iinnttrroodduuccee tthhee nneeww tteecchhnnoollooggyy
Marketing intelligence teams:
Ufone has got marketing intelligence teams which continuously monitor the strategies
adopted by the competitors and devise the strategies for Ufone accordingly so that Ufone
can keep up with the ever changing market place.
Unlocked Blackberries:
Ufone has recently launched its blackberry and it is the second cellular service providers
after Mobilink to offer blackberries however Ufone has the edge of offering unlocked
Blackberry which enables the clients to use any network sim on their Blackberry. Also,
the Ufone Blackberry is less expensive.
Number Portability:
Ufone has the highest number of intake in terms of the customers shifting from other
services providing number portability facility.
Corporate Clients:
Corporate clients help Ufone earn huge revenue therefore they are a major strength for
the company. Also, the mobile number portability has enables Ufone to add to new
18
clients to its existing corporate clients such as Air Blue and Fauji Fertilizers which shows
the credibility and trust of clients in Ufone services and packages.
Associations with MCB and ABN-AMRO
The association of Ufone with MCB and ABN-AMRO help Ufone to facilitate its
customers and gain a competitive edge.
TThhee ccoommppaannyy hhaass hhiirreedd wweellll qquuaalliiffiieedd aanndd aabbllee eemmppllooyyeeeess iinn aallll iittss ddeeppaarrttmmeennttss.. TThhee
sseerrvviicceess ooff UUffoonnee aarree wwiiddee sspprreeaadd ssuucchh tthhaatt yyoouu ccaann sseeee mmaannyy ssmmaallll oouuttlleettss iinn eevveerryy
mmaarrkkeett aarreeaa..
2.1.2. Weaknesses
FFoolllloowwiinngg wweeaakknneesssseess aarree iiddeennttiiffiieedd iinn UUffoonnee::
LLooww rreevveennuuee ppeerr uusseerr
UUffoonnee hhaass lleessss pprrooffeessssiioonnaalliissmm wwiitthhiinn tthhee oorrggaanniizzaattiioonnaall mmeemmbbeerrss..
LLaarrggee oorrggaanniizzaattiioonn ssttrruuccttuurree
UUffoonnee hhaass ppaatthheettiicc bbiilllliinngg ssyysstteemm ffoorr ppoosstt ppaaiidd ccoonnnneeccttiioonnss
LLeessss ccoonncceennttrraattiioonn oonn ppoosstt-- ppaaiidd ccoonnnneeccttiioonnss..
LLeessss nnuummbbeerrss ooff CCuussttoommeerr ccaarree uunniittss aanndd FFrraanncchhiisseess iinn tthhee ccoouunnttrryy..
SSiiggnnaallss pprroobblleemmss
Reactive Approach
Ufone offers a number of packages however during its entire history the company has
usually followed the policy of imitating other companies packages and adding a little bit
of variation instead of coming up with entirely different packages.
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Internal politics
AAtt UUffoonnee mmaannyy ccaasseess ooff lleegg ppuulllliinngg aanndd uunnssaattiissffaaccttoorryy wwoorrkkiinngg eennvviirroonnmmeenntt aarree rreeppoorrtteedd..
2.1.3. Opportunities
UUffoonnee hhaass tthhee ffoolllloowwiinngg ooppppoorrttuunniittiieess::
NNeettwwoorrkk aallll aarroouunndd PPaakkiissttaann
AAddaappttaattiioonn ooff nneewweesstt tteecchhnnoollooggyy..
TThhiiss ccoommppaannyy hhaass ffaasstteerr mmaarrkkeett ggrroowwtthh..
UUffoonnee hhaass ooppppoorrttuunniittyy tthhaatt iitt iiss ppiioonneeeerr iinn ssoouutthheerrnn PPuunnjjaabb wwhheerree iitt ccaann pprroommoottee iittsseellff
aanndd bbeeccoommee mmaarrkkeett lleeaaddeerr
Reduced Prices:
Currently the rates offered by Ufone are higher than some of its competitors and the
hidden charges make the packages expensive so Ufone can work on its prices.
New Packages:
Apart from the current packages offered by Ufone, a number of new packages with
different features may be floated. Besides they can give new offers such as credit transfer
between different services e.g. Ufone to Telenor or Ufone to Mobilink etc.
Research and development:
There is a possibility that Ufone may invest in research and come up with some new
technology that is not being offered by the current cellular service providers of Pakistan.
Diversification:
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With the advancements in technology, Ufone has the opportunity of diversifying its
operations and entering into areas such as internet services etc.
2.1.4. Threats
FFoolllloowwiinngg aarree ssoommee ooff tthhee tthhrreeaattss
HHiigghh ttaaxx rraatteess
CCoommppeettiittiioonn
IInnccrreeaassee iinn iimmppoorrtteedd eeqquuiippmmeenntt ccoosstt
New Entrants:
With the current market conditions and the dynamicity if the environment the opportunity
for more and more companies to enter into the telecom industry has increased. The entry
of these new companies can pose a threat to Ufone since they might lose their valuable
customers to these companies.
Counter Attacks:
In all industries including telecom the rate at which people switch from one job to
another is very high and this opens the room for counter attacks as people who switch
from one company to another have an insight into their plans and they often leak these
plans to the company to which they switch.
Reduced Market Share:
With the entry of new companies and the improvements of the current services, the
choices available to customers are innumerable therefore it is very difficult to retain
customers. This fact along with Telenor emerging in telecom scene poses a threat to the
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market share and position of Ufone. Currently at 39.2% and second in the market, Ufone
might move to number three.
Changing Trends in Industry:
With the changing environment and the increased level of competition, the trend of
mergers and acquisitions is rising. It might be possible that the weak players in the
cellular service industry merge with the strong players which will again pose threat to the
existence of Ufone until and unless an aggressive approach is undertaken.
2.2. Pest Analysis
PEST analysis stands for "Political, Economic, Social, and Technological analysis" and describes
a framework of macro-environmental factors used in the environmental scanning component of
strategic management.
2.2.1. Environmental analysis
Major product lines market segment
Mobile industry has been introducing new and innovative products and service over the years.
The major project lines can be segmented into, three categories, which are as follows:
Consumer packages
Value added services
Corporate packages and services
These product lines have a range of different series, catering to different market segment.
22
2.2.1.1. Consumer packages
The consumer packages of the mobile industry include the prepaid and the post paid packages
being provided by the different cellular providers of Pakistan.
Prepaid packages, due to their nature is the most common type of package being used by
millions of Pakistani. Prepaid packages provide a sense of affordability, whereby consumers
have the option of only recharging their accounts, when needed. This affordability have led to a
massive increase in the prepaid subscriber base, with everyone from housewives to teenagers; to
electricians to small shop owners all using prepaid packages. The main user segments of prepaid
packages include the lower, middle and middle upper class of the country. Furthermore, a
number of people use prepaid packages as a second number, which also include people from the
upper class.
2.2.1.2. Value added services
Value added service have become an essential tool for generating revenue for mobile company
today. Starting in the early years, from wallpapers and ringtones downloads, today mobile
company provide a range of service to their customers.
Some of the popular services include, religion services, music services, which include songs
dedication, voice and timed messages, sports services, food and recipes services,
WAP/GPRS/EDGE, themes, wallpapers, games, and ringtones downloads, credit share, mms,
voice mail, e-mail, missed call alert , conference call, mobile T.V., web 2 sms and many more.
Value added services have been designed by companies, so that there are services for every
segment of their users and that these services completely satify them, as and when needed.
23
2.2.1.3. Corporate packages and services
Cellular providers in Pakistan are also providing corporate clients with services catered to them.
Corporate clients due to their huge operation have special requirements. Mobile packages and
tariffs, secure e-mail and instant web connectivity, being some of the most important issues.
Today mobile companies provide blackberry solutions, Mobilink and Warid being forefront in
this technology, furthermore to add to this innovative service, companies today are providing
sms marketing features, sms management facility, fax mail, wireless connectivity through
EDGE, private numbering plans, closed user groups and mobile e-mail to their corporate clients.
All above features and many more have helped corporate clients to manage their operations
effectively and efficiently.
2.2.2. Growth rate of entire industry
The mobile industry has seen phenomenal growth over the years. Today there are five major
competitors competing for their subscribers as, increasing the services provided, reducing their
call rates and having aggressive marketing campaigns. Simply put, competition is heating up in
the mobile industry.
2.2.3. Social and political analysis
CCuurrrreennttllyy,, tteelleeccoomm sseeccttoorr iiss rreeggaarrddeedd aass aa sseeccttoorr wwhheerree llooccaall aanndd ffoorreeiiggnn iinnvveessttmmeenntt rraattee hhaass
bbeeeenn hhiigghheesstt.. DDuurriinngg llaasstt ttwwoo yyeeaarrss hhiigghheerr ggrroowwtthh ooff tthhiiss sseeccttoorr hhaass sseett tthhee ccoouurrssee ffoorr aa pprrooffiittaabbllee
bbuussiinneessss ffoorr iinnvveessttoorrss aanndd ppeerrppeettuuaall ccoonnvveenniieennccee ffoorr ccoonnssuummeerrss.. WWiitthh tthhee ccoommiinngg ooff nneeww
ccoommppaanniieess iinn tthhiiss sseeccttoorr ccoonnssuummeerrss aarree eennjjooyyiinngg mmoorree ffaacciilliittiieess aanndd aacccceessssiibbiilliittyy.. TThhee cceelllluullaarr
mmoobbiillee ssuubbssccrriibbeerrss aarree ccoonnttiinnuuaallllyy ssooaarriinngg aanndd iitt hhaass rreeaacchheedd 9955 mmiilllliioonn wwiitthh 4488..77 ppeerrcceenntt
24
ppeenneettrraattiioonn.. OOvveerraallll tteennddeennccyy ooff tthhee ccoouunnttrryy hhaass jjuummppeedd ttoo 3355..88 ppeerrcceenntt iinn 22000077 ffrroomm tthhee mmeerree
22..88 ppeerrcceenntt iinn 22000011..
TThheerree aarree ffiivvee ccoommppaanniieess ooppeerraattiinngg iinn PPaakkiissttaann nnooww
Mobilink
At the top is Mobilink, the Pakistani unit of Egypt-based telecom company Orascom. It
has been in Pakistan since 1994. With 19.2 million subscribers it has the largest market
share. Its shares are listed on the Egyptian and London stock markets as GDRs. My next
post will focus entirely on Orascom and its performance.
Ufone
UUffoonnee,, aa wwhhoollllyy oowwnneedd ssuubbssiiddiiaarryy ooff PPaakkiissttaann TTeelleeccoommmmuunniiccaattiioonn CCoo.. LLttdd ((PPTTCCLL)),, iiss
nnooww uunnddeerr tthhee ccoonnttrrooll ooff EEttiissaallaatt ggrroouupp ooff UUAAEE.. WWiitthh 88..44 mmiilllliioonn ssuubbssccrriibbeerrss iitt iiss tthhee
rruunnnneerr uupp.. FFoorr tthhoossee iinn PPaakkiissttaann iitt iiss tthhee oonnee ccoommppaannyy wwhheerree tthheeyy ccaann eeaassiillyy iinnvveesstt
llooccaallllyy.. UUffoonnee iiss ssttrruugggglliinngg vveerryy mmuucchh ttoo rreeaacchh tthhee mmaarrkk..
WWaarriidd
WWaarriidd,, oowwnneedd bbyy tthhee AAbbuu DDhhaabbii ggrroouupp ooff tthhee UUnniitteedd AArraabb EEmmiirraatteess aanndd ssiisstteerr ooff WWaatteeeenn
ggrroouupp iiss nnuummbbeerr 33 wwiitthh 55..66 mmiilllliioonn ssuubbssccrriibbeerrss tthhaatt iiss 1144%% mmaarrkkeett ooff ssuubbssccrriibbeerrss..
TTeelleennoorr
NNoorrwwaayy‟‟ss TTeelleennoorr,, aa rreecceenntt eennttrraanntt wwiitthh aabboouutt aa bbiilllliioonn UUSS ddoollllaarr iinnvveessttmmeenntt iinn PPaakkiissttaann
hhaass bbeeeenn ddooiinngg wweellll,, bbaasseedd oonn iittss rreecceenntt eeaarrnniinngg rreeppoorrtt.. IItt hhaass aabboouutt 44..2266 mmiilllliioonn
ssuubbssccrriibbeerrss oorr 1111%% ooff tthhee mmaarrkkeett.. TTeelleennoorr ssttoocckk iiss lliisstteedd iinn tthhee OOsslloo ssttoocckk mmaarrkkeett ((TTEELL))
aanndd NNAASSDDAAQQ NNYY ((TTEELLNN))..
25
ZZoonngg
PPaakktteell wwaass oowwnneedd bbyy MMiilllliiccoomm IInntteerrnnaattiioonnaall CCeelllluullaarr ((lliisstteedd iinn NNAASSDDAAQQ aass MMIICC)) aatt tthhee ttiimmee ooff
wwrriittiinngg ooff tthhiiss ppoosstt.. ((LLaatteerr iitt wwaass aaccqquuiirreedd bbyy CChhiinnaa MMoobbiillee))IItt hhaass 33%% ooff tthhee ssuubbssccrriibbeerr sshhaarree iinn
PPaakkiissttaann.. AAfftteerr aaccqquuiirreedd bbyy CChhiinnaa MMoobbiillee iittss nnaammee wwaass cchhaannggeedd.. NNooww iitt‟‟ss ccaalllleedd aass ZZOONNGG..
WWiitthh ssuubbssccrriibbeerr nnuummbbeerrss iinnccrreeaassiinngg eevveerryy ddaayy aanndd mmoobbiillee ppeenneettrraattiioonn iinnccrreeaassiinngg eevveerryy mmoonntthh,,
mmoobbiillee cceelllluullaarr sseeccttoorr ooff PPaakkiissttaann iiss lliikkeellyy ttoo ccrroossss aallll eessttiimmaatteess.. TThhee ttiimmeellyy llaauunncchh ooff TTeelleennoorr
aanndd WWaarriidd,, eexxppaannssiioonn ooff MMoobbiilliinnkk‟‟ss nneettwwoorrkk oonn mmoonntthhllyy bbaassiiss,, rreenneewwaall ooff IInnssttaapphhoonnee lliicceennssee,,
PPrriivvaattiizzaattiioonn ooff UUffoonnee''ss ppaarreenntt ccoommppaannyy PPTTCCLL,, llaauunncchh ooff PPaakktteell GGSSMM aanndd iittss pprriivvaattiizzaattiioonn aanndd
rreedduuccttiioonn iinn ggoovveerrnnmmeenntt ttaaxxeess aanndd hhaannddsseett pprriicceess aarree aallll rriigghhtt iinnggrreeddiieennttss ffoorr bbeesstt ppoossssiibbllee
ggrroowwtthh ppaatttteerrnnss aannyy mmoobbiillee sseeccttoorr ccaann hhaavvee.. AAccccoorrddiinngg ttoo eessttiimmaatteess mmaaddee bbyy BBMMII rreesseeaarrcchh ffoorr
PPaakkiissttaann mmoobbiillee mmaarrkkeett,, tthheerree wwoouulldd bbee mmoorree tthhaann 6622 mmiilllliioonn mmoobbiillee ssuubbssccrriibbeerrss bbyy DDeecceemmbbeerr,,
22000099.. PPaakkiissttaann TTeelleeccoommmmuunniiccaattiioonn AAuutthhoorriittyy iiss mmaakkiinngg aallll eeffffoorrttss ffoorr tthhee hheeaalltthhyy ggrroowwtthh ooff
tteelleeccoomm iinndduussttrryy.. SSppeecciiaall iinntteerreesstt iiss,, hhoowweevveerr,, ggiivveenn ttoo mmoobbiillee sseeggmmeenntt wwhheerree aatttteemmppttss aarree mmaaddee
ttoo ccrreeaattee wwiinn--wwiinn sscceennaarriioo,, iinn wwhhiicchh ccoonnssuummeerrss ggeett cchheeaappeerr aacccceessss,, ooppeerraattoorrss ggrrooww tthheeiirr bbuussiinneessss
aanndd ggoovveerrnnmmeenntt bbeenneeffiittss ffrroomm iinnccrreeaasseedd ttaaxx rreevveennuueess.. AAllll tthhiiss wwoouulldd hheellpp aacchhiieevvee oonnee ooff tthhee
mmaaiinn oobbjjeeccttiivveess ooff rreegguullaattoorr..
2.2.4. Political Analysis
The sector exhibited slow growth than year before. Cellular Mobile teledensity jumped from
39% in 2006-07 to 54.7% in 2007-08. Collective Revenues of the sector have grown by 35% in
the year 2007- 08 against a record growth of 48% in the year 2006-07. Cellular subscribers grew
by about 40% in the year 200708, as against 82% in 2006 -07 and more than 100% during 2005-
06. Main reason for its slow growth could be the rising inflation which affects the affordability,
26
higher taxes, saturation of the urban markets and low tariffs. Regulator remained vigilant in
resolving all sector related issues.
In collaboration with NADRA and mobile operators, PTA has devised a comprehensive
mechanism to verify the SIMS. It was observed that approximately 7 million SIMS have not
been registered properly who were warned by PTA and operators were directed to register
immediately otherwise face disconnection. PTA launched a media campaign in this regard along
with strong warning has been issued to unregistered user if they failed to register their
connections, it will be blocked. Besides, PTA ordered closure of various Franchises who were
not implementing the proper procedure for issuance of cellular mobile SIMs. PTA continued its
IMEI system where it blocked number of mobile handsets stolen or reported theft by users.
2.2.5. Technological Analysis
Pakistan may be categorized among those Asian economies which have partially privatized the
state owned telecom sector while deferring the introduction of full scale competition to a future
time.
Now that the competition has been introduced in the telecom sector some very positive impact
have been observed on the growth of the sector in a short span of time which is expected to
continue to grow for at least next five years if the daring investors influx continue as in the last 3
years. The growth of Pakistan telecom sector with the usage of technology can be seen in the
sectors of
Mobile Sector
Fixed Line Sector
Wireless Local Loop Sector
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Payphone Services
Internet Services
The recent focus of the industry is the proliferation of broadband services at affordable rates
throughout the nation. The latest technology of 3G mobile communications (mobile broadband)
has been earmarked and PTA will soon be inviting applications for 3G spectrum auction. This
technology will increase operating capacity and revenues by using HSPA technology; at the
same time it will also provide superior and high speed broadband services, video telephony,
internet, video streaming, high quality mobile TV and a number of value added services.
2.2.6. Economic Analysis
With annual growth around 100% for some years now, the mobile telephone market in Pakistan
has been experiencing a period of strong and sustained development. However, Pakistan is
suffering important economic turbulences which will have a direct impact on foreign operators in
the country.
Some of the reasons are:
The decline in Rupee value against the US Dollar, the decrease in the interconnect
charges and lower priced tariffs have resulted in an overall decrease of ARPU in US
Dollar terms.
The ongoing economic and political turmoil along with the worsening of security
conditions in Pakistan have caused an increased outflow of capital from the country,
causing the Rupee value to decline a further 13% against US Dollar in the third quarter.
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2.2.7. Social Environment
Cellular industry growth rate in Pakistan is very high and this can raise people communication
level, their standards, life style and causes an overall positive impact on them. The official
literacy rate in Pakistan is 40%. People get latest and quick information about different fields of
life which enhances the person‟s knowledge and make people updated with latest issues.
2.3. Human resource analysis
2.3.1. Recruitment & Selection
Recruitment is the process of gathering a pool of candidates for an organizational vacancy.
Selection is the process of short listing only the qualified candidates who are fit for the job. In
terms of recruitment and selection it is important to consider carrying out a thorough job analysis
to determine the level of skills/technical abilities, competencies, flexibility of the employee
required etc. And HR at Ufone follows these criteria. Ufone policy of recruitment is very simple,
if at any time there is a vacancy, due to retirement, resignation, if employees opted for the golden
handshake or the death of an employee, the management of the branch will inform the head
office about the vacancy. The head office will place an advertisement in all major newspaper
with the all necessary information required to be furnished by the applicant.
Ufone has this policy of not mentioning the name of the company in a job advertisement.
Usually hiring takes place through outsourcing with a help of a third party. Ufone mostly hires
employees through Pioneer Services and Sydiat Haider Associates. Final selection takes place
after the candidate has been interviewed by the Manager of the department who requires the new
employee and then the HR Manager.
29
On the joining day, the employee has to submit the following documents to the HR Department:
Joining Report
Copies of educational and professional degrees/certificates
Reference Letter
Three copies of recent passport size photographs
Before recruiting a new employee, management checks whether there is a need to hire a new employee
for that particular job or whether it can be incorporated into an existing employees job. Recruitment in
Ufone may be of internal or external nature.
2.3.1.1 Internal Recruitment
In the case of internal recruitment people from within the organization are promoted to fill the vacant
vacancy. The HR department and the relevant department in which the vacancy exists, analyze whether
there an employee within the organization exists, who most appropriately meets the requirements of the
particular vacancy. If more than one employee is eligible for the vacancy; then that employee is chosen
who has the most outstanding record. After the promotion the employee may be sent for further training.
The effect of internal vacancy is that it motivates the employee to perform their best and produce
maximum output. It also creates a healthy competition amongst the employees. The hiring from within
may have a trickledown effect i.e. the opportunities spring not just from the first vacancy but from the
vacancy created when a person in the company fills that vacancy.
2.3.1.2. External Recruitment
If the organization feels that none of their current employees can fill out the new vacancy then
they hire from external sources. In this case the human resource management considers other
departments in the organization that might be interested in the appointment in order to make it a
30
joint effort. They talk to relevant supervisors and especially to the people the new person will
work with. A set of expert panelists is then selected from each relevant department to interview
applicants.
2.3.1.3. Direct Applicants
Ufone maintains a data base system i.e. HRMS (Human resource management system) for its
internal employees as well as the employees which they will recruit in near future. In some case
certain some people just drop their CV‟s at the head office. And whenever there is an opening or
a vacancy occurs, the organization may call them for an interview.
2.3.1.4. Referrals
By advertising a post internally Ufone gains an added benefit, which is; the current employees
may pass the information on to any interested friends and relations. Word of mouth is also a
valuable recruitment method for them and they draw on all appropriate contacts they have.
2.3.1.5. Advertisements
Since most of the posts are of a specialist nature, they intend on advertising in the journals of
professional bodies and the trade press. Their next step is to find out how much adverts cost for
varying amount of space and decide what they can afford. The HR management has hired the
services of Interflow, an advertising agency, to propagate their service and company for them.
They are also using the services of a web designer, Eveready media, to post the advertisement of
the company on the Internet.
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2.3.1.6 .Private Employment Agency
The private Recruiting agencies collect information from unemployed as well as employed
people about their skills and experiences. These agencies attempt to find someone suitable using
its computerized inventory database of suitable individuals. These agencies charge Ufone for the
referrals.
2.3.1.7. Through Vendors (Outsourcing)
Ufone also do outsourcing for the purpose of recruitment they hire firm, which will provide
employee Ufone to work in the organization, but the employee will remain employee of that firm
not Ufone, and this is the most common method followed by most of organization these days.
Lower management at Ufone is comes through outsourcing.
2.3.2. Training & Development
Training is the organized procedure by which people learn knowledge and/or skills for a definite
purpose. Almost every employee hired by an organization will require some training in his or her
job. Some training programs may be more extensive than others, but all require the trainer to
have identified content and subject matter needed in the training and tasks to be performed on the
job to ensure that the training will prepare individuals to perform the job effectively.
Training policy at Ufone is very good as they buy the need of it and provides training to all the
employees irrespective of their status. Training is provided at all stages to the employees so that
they came to know about their future goals settings. The HR manager suggests training policy
after doing the performance evaluation. The training policy is done according to the employee
needs; these can be on the job training and off the job training.
32
HR team of training and development make a performance evaluation of all the employees and
the see where the gap occurs between the actual performance and the desired performance. Then
training is designed for area which needs to be improved. On the job and off the job both the
trainings are given according to the need of the employee.
Training & Development involves improving the knowledge, skills and abilities of the
individuals. A continuous training is conducted inside Ufone to improve the performance of the
employee. There are two types of trainings conducted at Ufone:
In-house Training: In-house training is customized training which is only for Ufone
employees.
External Training: External training is carried out through trainers in training institutes.
2.3.2.1. Training Evaluation Method
There are different methods of training evaluation that are practiced at Ufone. Following are the
methods of evaluation
Post-training test
Post training survey
Post training performance evaluation
This evaluation identifies the effectiveness of the training; it also leads to explore future training
needs. On the basis of post training evaluation the design off training is made in future.
2.3.3. Performance Appraisal
Performance evaluation is a process in which the performance of an employee is observed, that if
it is up to the standards or below the standards set by the organization. At Ufone performance is
evaluated on the basis of following
33
Goals
Objectives
Benchmark
Ufone is at very high scale in evaluating the performance of their employees because of
integrated system. They are using tailored made software to achieve this purpose. Every
employee organization wide is allotted a user name and password (objectives and goals are
defined for each employee) and their productivity is monitored with the help of intranet. HR
department is also responsible for conducting performance evaluation process. Immediate
supervisor evaluates the performance of subordinates at Ufone.
UFONE having 6-month objectives then evaluation would be done by mutual understanding of
both employees and line manager.
2.3.3.1. Process of performance appraisal in UFONE
The Performance appraisal system used by UFONE for reviewing the performance status of its
employee starts with identifying specific appraisal goals set by each Group for each cadre. After
this a detail job analysis is done with looking in account the job expectation and then matching
the actual performance with the desired performance. Afterward the performance is appraised
according to the set standards and this appraisal is not done by the supervisor alone, their major
focus is on taking into the account the employee‟s perspective as well. Therefore whenever the
appraisal is done employee is fully participative in the process.
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2.3.3.2. Performance Appraisal Method Use by UFONE
UFONE is using 180-Degree Performance Appraisal Method. Within this method, managers,
peers, customers or colleagues are asked to complete questionnaire on the employee being
assessed. In UFONE, performance of an employee is appraises twice a year. Once in June while
other in December. In the questionnaire there are five sections and in each section there are five
questions related to the performance of employee. There are total 100 points from which an
employee gets.
2.3.4. Compensation & Benefits
Compensation strategies are usually market based and is linked with the performance with a
greater emphasis on variable pay. Salary adjustment is based on the performance, market
movement and internal/ external equity adjustment. Revision of compensation is based on total
pay and monetization of benefits.
A very effective way to retain an employee is to give him compensation and benefits. At Ufone
following benefits are given:
Medical
Gratuity fund
Incentives
Bonuses
Recognition
Appreciation
Compensation and benefits are very important for any employee. If they are given properly and
according to the market rate then the employee will be motivated and he‟ll try to give his best. At
35
Ufone compensation system is designed with the help of job evaluation. For making the
compensation they are using both point and rank methods according to the wage survey for
benchmark jobs. And for unique positions they have crafted their own formula.
They are offering
Minimum wage
Overtime
Equal employment opportunities (in terms of equal pay without discriminating
against sex or race)
Merit pay (payment based on performance)
Individual incentives (reward for individual performance that can be earned and
re-earned)
Profit sharing (focuses on individual employee)
They gave these plans on the task basis other than the organizational incentive plans.
36
Chapter 3
Internship Experience
37
3.1. Internship Experience
I am the student of MBA and I have worked with Ufone as an internee that located in F-7
markaz, Islamabad. Through this internship I have learn so many new methods that can only be
learned in practical situations. Before that I have only theoretical knowledge about the
organization‟s environment and know how organizations work and achieve their objectives and
goals as well. This internship has to give me the understanding of business and also about the
elements of strategic thinking; planning and implementation are applied in a real world
environment. Following were the objectives that I have in my mind before working as an
internee;
To improve communication skills
To analyze the business situation
To learn about the customer behavior
To make quick decisions in real situations
To establish high standard of professionalism
To learn more than the theoretical knowledge
To apply theoretical knowledge in actual organization
To improve my interpersonal skills
To compare the practical aspects with theoretical aspects
To learn how to manage and to conduct research in business area
To learn about the organizational structure in Pakistani companies
To promote my personal knowledge and professional preparation for future
To get knowledge of opportunities and threats while entering into an organization
38
To get exposure to do a work in an organization and also know about organizational
behaviors, ethics and regulations.
3.1.1. Week 1
My first day at Ufone, I was told to meet Mr. Ishaq, CSR officer. He gave me an orientation
about what will I be doing in time of internship. In the first week I was assigned to customer care
section, I was asked to perform the same tasks that the regular employees were doing. It was
very knowledgeable for me, I made notes on the ways through which they treat and help their
customers. First week was more of a training period; I was made familiar to the systems and
queries that are used by the Ufone.
3.1.2. Week 2
The next week, I was assigned to the sales department, there Mr. Ali, Sales Officer helped me,
and gave me an assignment, to sell connections especially postpaid connections. Before doing
this, I did research on the postpaid connection and look at the competitors tariff and compare
with Ufone postpaid tariff. Then I set the target market and visit the market and sold the postpaid
connections. This was very beneficial activity for me and gave me some experience like how to
present yourself in front of the customers, how to talk to them and how to sell the connections.
3.1.3. Week 3 & 4
The next two weeks, the task I performed was work on front desk. There are so many tasks that I
performed on the front desk. But first time I didn‟t entertain the customers, I only do some
documentation like to fill the customer‟s forms through entering the customer‟s personal data
and connection information with two references.
39
Than I was given the authority of Owner transfer, means that to transfer the ownership of the
connection. Many customers came to Ufone to change their ownership because it‟s a restriction
from PTA that SIM should be the ownership of user name only, for doing this first I was given
proper training. The process of Ownership Transfer requires the distinctive information from the
user like information about last calls, last load, what is your most dialed number etc... After
collecting that information I transferred the ownership with help of computerized system.
3.1.4. Week 5
In that week, I was given another interesting task, Easy Load system; I was given the opportunity
to use their Easy load system to better understanding of the system of billing. Parallel task was to
deal with the customer complaints. I handled the customer complaints in very efficient and
effective manners. I carefully listen to the customer complaints and quickly respond so that the
customer is satisfied and leave happily.
Following are the most common customer‟s complaints;
Coverage
Wrong calls
Voice quality
Change ownership
Call disconnection
GPRS & MMS settings
Billing problem in postpaid connections
This was the most difficult task and interesting too but I really enjoyed. Most complaints were
easy to handle on the spot and many requires more than one day.
40
3.1.5. Week 6
In this week I was given the opportunity to work in the HR department. I learned that their HR
depart is being headed the HR executive designated as Chief of Human Resource Department.
There I found the key policies of Ufone HR department like Recruitment, selection, training,
compensation, benefits, and performance appraisal system. I worked in the department as a
helper, the key point in that was that I can go to any staff member and ask them to give me some
part of their work, and they appreciated it. By doing so I got an extensive knowledge about the
work is being done by the whole department. I was given the opportunity to make SWOT
analysis of Ufone; the staff members helped me in doing so.
3.1.6. Week 7 & 8
In these weeks I was called back to front desk due shortage of staff member, who has to leave for
his marriage. There I performed the same tasks that I was doing before. In these weeks I focused
on preparing my internship report, I had helped from the staff members, in collecting raw data
and their professional advices were very helpful to me.
41
Chapter 4
Recommendations and conclusion
42
4.1. Recommendations
Ufone should improve its customer services to avoid complaints of the subscribers.
Ufone should further reduce its prices to capture more market share.
They should further improve its network in order to provide more efficient services.
Due to the extensive competition in the industry Ufone has to enhance its training programs in
order to make their employees more proficient and competent.
They should call in at different universities and offer jobs there for students to give them
employment in the organization. They can post their job advertisements on university bulletin
boards and also ask the fresh graduates for walk in interviews.
They should give more incentive to their employees to make them motivated, as some
employee‟s turnover rate is high.
The Human Resource department needs to be improved as they have a major problem that is low
job performance. As I have been interacting with them few times and they were very slow in
responding.
The biggest need is that they start work on their network expansion as soon as possible.
They should try to attain a balance between their post paid and pre paid customers. This also
holds true for their normal users and corporate users.
New features and services must be well communicated to the end consumer. For instance as they
have started a Web2Sms service but have not notified their customers through any means. They
could have alerted their customer of their new website through their info services.
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They should also focus on their differentiation policy and try to keep a balance between their
cost leadership and differentiation strategies.
These recommendations could be very helpful for the company to gain more market share and
increase its customers list. As first of all I have pointed on the customer services that they should
be more polite and gentle while talking to the customers. While working at the retail sales
department and customer services department I myself have attended customers that were upset
from the customer service provided by the representatives, this unusual behavior could make
Ufone lose its loyal customers too.
Coming to the rates charged by Ufone, I have my self performed competitors analysis while
working there and have come to a result that Warid telecom one of its Competitors are giving
much better call rates and are attracting many of the customers to switch their service.
4.2. Conclusion
Telecom industry is most growing industry of Pakistan still huge investment required for
coverage. The market also has strong competition after the entrance of China Mobile Company
as player. Competitors are hiring professionals to entertain the consumer which is resulting
technological implementation and value added services. Ufone is a place where one can live his
dreams and pursue a career that reflects his skills and passions. People in Ufone give flexibility
for change, the opportunity to learn, and providing career options with endless possibilities. The
managers at Ufone believes that all employees have a right to offer input and be involved in
helping their organization grow.
All departments are working together and they wants to create a work environment in which
employees can improve their minds, continuously learn, gain professional growth and feel
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inspired by similarly motivated individuals. The Ufone takes pride in providing the best possible
working environment. They take a constant interest in ones progress by conducting evaluations
and offering the support and resources one needs. I reveal some complications in “Findings”. It
has been analyzed that people are concerned about call rates they do not prefer any particular
company. Consumer searches good service with lowest call rates, although companies are
minimizing call rates this will result more growth in the market and to meet the customer needs
by satisfying them.
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REFERENCES
The information has been gathered through the various sources including
Ufone – Finance Warehouse
Pakistan Telecommunication Authority – Annual Reports 2007-2008
www.ufone.com
PTCL Financial Statements 2008-09
www.businessrecorder.com (Pakistan's First Financial Daily)
www.telecompk.net
http://www.ufone.com/feedback.aspx
www.topix.com/forum/pk/karachi/TVLIQV2UIMD07N3FD
www.pta.gov.pk
www.financialdaily.com
http://telecompk.net/category/ufone/page/2/