Telenor Final

  • View
    128

  • Download
    1

Embed Size (px)

Text of Telenor Final

Table of ContentsINTRODUCTION....................................................................................................... ....2 STRATEGY FORMULATION...........................................................................................4 VISION................................................................................................ .....................4 MISSION................................................................................................................. ..4 VALUES.................................................................................................... ................5 EXTERNAL ENVIRONMENT.......................................................................................5 INTERNAL ENVIRONMENT........................................................................................7 LONG TERM OBJECTIVES......................................................................................... .7 STRATEGIES.................................................................................................. ...........9 STRATEGY IMPLEMENTATION.................................................................................... .10 OBJECTIVES.................................................................................. .........................10 POLICIES...................................................................................................... ..........10 A STRATEGY SUPPORTIVE CULTURE.......................................................................11 HUMAN RESOURCE STRATEGIES............................................................................13 DIVERSITY.............................................................................................................. 15 STRATEGY EVALUATION............................................................................................ .16

1 | Page

INTRODUCTIONTelenor Pakistan, a wholly owned subsidiary of Telenor ASA, launched its operations in March 2005. One of the leading telecom operators providing prepaid, postpaid and value-added services to seven million customers, it is spread across the country with a network of 15 company-owned sales and service centers, more than 200 franchisees and some 100,000 retail outlets selling subscriptions and refills. Differentiated packages include TalkShawk, Telenor Persona and Djuice.

Telenor took a big step seven years ago when it decided to expand in international markets. The key take points include: right time, targeting of emerging markets, policy of full management control (avoided joint ventures) and deployment of a repeatable methodology (for example the djuice brand). The success of the strategic focus can be understood from the following1:

1

http://telecompk.net/2008/12/30/telenor-emerging-market-strategy-success-swot/

2 | Page

Telenor believes: What matters most is the right strategy, at the right time and precision in execution.

STRATEGY FORMULATION3 | Page

VISION2

MISSION3Telenor's primary goal is to create greater value for our shareholders, customers, employees and partners, and for society in general. We strive to be a driving force in creating, simplifying and introducing communication and content solutions to the marketplace.We exist to help our customers get the full benefit of communications services in their daily lives.

VALUES4 EXTERNAL ENVIRONMENT

SEGMENTATION Market Segment Youth/ Students2

Toda y 25%

Feature Year Estimate 27%

Existing Product Djuice, TalkShawk

Profitabi lity 29%

http://www.telenor.com.pk/about/visionValues.php

3

http://creativez.blogster.com/mission-statements-different http://www.telenor.com.pk/about/visionValues.php

4

4 | Page

Women Financially Constraint Corporate/ SME

10% 40% 25%

20% 23% 30%

TalkShawk TalkShawk, Telenor Azadi Postpaid Packages

21% 20% 30%

CPMCPMCritical Success Factor Advertisin g Product Quality Price Competiti on Managem ent Financial Position Customer Loyalty Global Expansion Market Share Total Weight Mobilink Rating Score Warid Rating Score Ufone Rating Score Zong Rating Score

0.1 0.15 0.1

2 2 3

0.2 0.3 0.3

2 2 2

0.2 0.3 0.2

3 3 3

0.3 0.45 0.3

3 3 3

0.3 0.45 0.3

0.1 0.1 0.15 0.1 0.2 1.0

3 4 2 3 4 2.90

0.3 0.4 0.3 0.3 0.8

2 2 2 2 2 2.00

0.2 0.2 0.3 0.2 0.4

4 3 3 1 3 2.90

0.4 0.3 0.45 0.1 0.6

3 2 2 3 2 2.55

0.3 0.2 0.3 0.3 0.4

The intense competition in the telecom industry has made it really difficult to survive the financial crunch has added to the difficulties of the telecom service providers. The most important factors in that need to be considered while making a strategic plan are customer loyalty which generally is based on the quality of the service provided and this determines the market share of the firm. Advertising is a double edge sword; good promotion attracts the customer while bad one distracts them. In telecom industry a common5 | Page

practice is to eat competitors market share by indulging into price wars but one must set a limit otherwise it could backfire and sunk the company. Company needs to plan all its operations depending on its financial health never ever pick up industry giants for one on one fight and avoid taking leverage position instead go for the cost cutting strategy. By looking at the matrix it is evident that Mobilink and Ufone are at the front while Warid is lagging behind in competition. On the other hand Zongs performance is average in industry.

INTERNAL ENVIRONMENT

LONG TERM OBJECTIVES1. To deliver increased profitable growth Telenor seeks to increase core mobile revenues. Telenor is also investing in adjacent markets such as basic financial services and machine-to-machine (M2M) communication. 2. To strengthen our performance culture Telenor will continue the successful practice of combining a local approach with global expertise. This means that the local management teams will build a unique performance culture based on their own initiatives and in line with the Telenor governance model, Codes of Conduct, vision and values and people policy. In terms of Health, Safety and Environment (HSE), their objective is to improve working conditions and environmental management by having clearly defined standards across the operating company and supply chain. 3. To make responsible business a competitive advantage6 | Page

Corporate responsibility at Telenor will be part of managing risk and linked to the core business. Telenor has a strong track record when it comes to sustainable business: it was ranked top performer by the Dow Jones Sustainability Indexes (DJSI) in 2007 and 2008. 4. To provide a superior customer experience Faced with an increasingly competitive environment, Telenor needs to differentiate itself by providing a superior customer experience. In the vision and core values, they put customer experience at the top of the agenda. One of their ambitions is to reach a situation where end-users brand preference is higher than the Telenor market share. 5. To ensure best practice benchmarking A global objective is to achieve a higher reduction in the average operational cost per minute than the expected decline in average price per minute. Telenor aims to achieve considerable continued growth in operating cash flow from its operations. 6. To drive change and constant renewal To secure a strong industry position, innovation is paramount. Major areas identified are:

Their long-term ambition is to achieve the same position in broadband (mobile and fixed) as they have in mobile voice today.

Telenor aims to establish itself as a significant player in parts of the financial services industry in select under-serviced markets, establishing a platform for long-term growth.

Telenor controls many valuable assets that can be further developed together with partners. Partner-driven innovation is a cost-effective way to create many new revenue-generating services. Objectives 2006-07 2015

7 | Page

ARPU(Average Revenue Per User) Market Share in terms of Subscribers Market Penetration Market Share in terms of Revenue EBITA(Earning Interest, amortization) Unprompted Awareness Brand Tax before and

$4 10% 9% 7% 5% 6%

$6- $8 40% 30% 30% 10%

20%

90%

STRATEGIES

Market Penetration Diversification in new directions and regions Focus on mobile internet Acquiring a microfinance bank Global expansion (Telenor has also entered the Indian market by taking a stake in Unitech Wireless) Mix of differentiation and low cost Lower capital expense investment due to recession/ slow market growth Utilize 3G technology opportunity

STRATEGY IMPLEMENTATION8 | Page

OBJECTIVESPrepaid- djuice, talkshawk Postpaid- persona Achieve a SIM penetration over 70% Attain a market share above 25% Maintain EBITDA in mid thirties Obtain a ratio of Capex/sales below 25% Capital expenditure was related to network roll-out to accommodate subscription growth and increased traffic Increase Subscription growth

POLICIES

A STRATEGY SUPPORTIVE CULTURESOURCES OF CULTURE AT TELENOR PAKISTAN PEOPLE Telenor Pakistan consists of energetic, youthful and dedicated employees aged 27 to 28 on average. An appropriate match is required between the culture and employees at recruitment and hiring. If People Excellence (Human Resource Department) feels that a person will not be unable to adjust into the organizations environment, even if he/she is performing functionally well, the person is rejected.

9 | Page

Primarily the culture comes from the top management. CEO of Telenor Pakistan is humble and co