Final Report 15.11.2012 Inam Havalian Campus

7/30/2019 Final Report 15.11.2012 Inam Havalian Campus

1/58

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)

i


2/58

INTERNSHIP REPORT

ON


Submitted By:

Inam Ullah KhanRoll Number: 13148

BBA (Hons) Finance

Department of Management Sciences

Hazara University Havelian Campus

October, 2012

ii


3/58

INTERNSHIP REPORT

ON


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

iii


4/58

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

iv


5/58

v


6/58

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.

vi


7/58

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

vii


8/58

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.

viii


9/58

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

ix


10/58

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

x


11/58

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

xi


12/58

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.

xii


13/58

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.

Internship Report on Ufone Abbottabad Branch Page 1


14/58

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.



15/58

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.



16/58

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.



17/58

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



18/58

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.

http://en.wikipedia.org/wiki/Pakistan%E2%80%99s_Liberalization_in_Telecommunicationhttp://en.wikipedia.org/wiki/Pakistan%E2%80%99s_Liberalization_in_Telecommunication


19/58

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!



20/58

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.



21/58

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


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


22/58

Chief Financial Officer Mr. Mohammad Nadeem Khan

Chief Officer Government & Regulatory Affairs Mr. Naveed Khalid Butt

Chief Officer Customer Services Operations Mr. Ahmad Kamal



23/58

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



24/58

General Manager Corporate Strategic Planning & PMO Mr. Moqeem ul Haque

General Manager Administration Mr. Mohammad Zahid Qureshi



25/58

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



26/58

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



27/58

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.



28/58

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:-



29/58

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



30/58

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.



31/58

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.



32/58

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.



33/58

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.



34/58

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.



35/58

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.



36/58

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.



37/58

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.



38/58

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



39/58

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.



40/58

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.



41/58

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.



42/58

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.



43/58

The declining market rate and unpredictability of Pakistan is a big danger for all

businesses in Pakistan as well as Ufone.



44/58

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.



45/58

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



46/58

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



47/58

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



48/58

4 Government interference .12 3 .36

5Pressure groups & health issue dueto tower in .05 2 .10

residential areas

Total 1.00 2.97



49/58

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%



50/58

6.1.4 Profit And Loss Account for The Year Ended June 30, 2011



51/58

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---------------- ----------------



52/58

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



53/58

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.



54/58

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.



55/58

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.



56/58

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.



57/58

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)



58/58

BIBLIOGRAPHY

Kotler, Philip. Marketing Management, the Millennium Edition. Prop ofNorthwestern University.

Tull, Donald S and Hawkins, Del I, Marketing Research, Sixth Edition.

Department of Marketing University of Oregon.

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.

Final Report 15.11.2012 Inam Havalian Campus

Documents

Transcript of Final Report 15.11.2012 Inam Havalian Campus