International Islamic University Islamabad

Project: MOBILINK

Submitted to: Sir Muhammed Ali Asghar

Submitted By:

Atif Jamil 2530-FMS/BBA/S09 Abdullah Ejaz Butt 2505-FMS/BBA/SO9 Muhammad Tahir 2532- FMS/BBA/SO9

Suleman Javaid 2526- FMS/BBA/SO9

MOBILINK

M ISSION

“To be a superior communication service company in Pakistan that provides the best value to its customers, employees, business partners and shareholders.”

VISION

“To be the leading Telecommunication Services Provider in Pakistan by offering innovative

communication solutions for our Customers while exceeding Shareholder value & Employee expectation".

HIERAREHY OF MOBILINK (OBS)

President and CEO

Rashid Khan

Chief Strategy Officer

Tariq Rashid

Vice President Marketing

Bilal Munir Sheikh

Vice President Customer Care

Irfan Akram

Vice President Corporate Affairs

Agha Qasim

Chief Technical Officer

Ramy Reyad Kamel

Vice President Sales

Jahanzeb Taj

Chief Information Officer

Irfan Farooq

Head of Human Resources & Administration

Sadia Ahmad

Chief Financial Officer

Andis Locmelis

Head of Business Analysis and Planning

Farid Ahmed

MANAGERIAL ROLES (WBS)

FINANCIAL GOALS

Mobilink Losing Ground to Zong and Ufone

Pakistan’s Cellular industry faced a tough fiscal year 2009-2010.

Hiked pricing, lower buying power, power crisis, currency devaluation and price war remained major problems for the cellular companies during this period.

1. Revenues

In comparison to 17% revenue growth in FYE 2009, overall industry revenue growth slowed down to 11% in FYE 2010.

During FYE 2010, 39% of increased industry revenue was picked by Ufone, followed by 32% by Telenor & 15% by Zong.

Warid & Mobilink’s share in the increased industry revenue remained less than average industry growth rate of 11%.

2 – Market Share (in terms of revenues)

In terms of revenue, Ufone, Telenor & Zong managed to increase their market share, while Warid & Mobilink continued to lose.

3. Network Utilization KPIs

Industry Revenue/avg. cell site dropped from PKR 8.6m in FYE 2009 to PKR 8.1m in FYE 2010. Mobilink topped network utilization in terms of revenue generation with PKR 10.7m per site, followed by Ufone & Telenor at PKR 9.3m per site.

In comparison to network size, revenue market share of Mobilink, Ufone & Telenor is higher than network share, while Warid & Zong remained on lower side in terms of revenue share

4. Conclusion:

Industry’s growth is slowing down over the period of time, which means that new subscribers’ addition is reducing and future competition will be focused more towards launch of innovative products/services to increase revenue streams.

Subscribers’ retention & acquisition of subscribers is already on the top of to-do lists, along-with, customer support is going to play pivotal role in coming days

According to the results published by OTH, Mobilink subscriber base increased by 10.5% as compared to same period last year closing at 32.2 million at the end of H1 2010. Mobilink closed the first half of 2010 with revenues of PKR 47.5 billion showing a YoY increase of 11.4% and there was a YoY increase of 24.8% in its EBITDA in rupee terms. Moreover, the company’s EBITDA margin has increased to 39.6% versus 35.5% over the same period last year.

MARKET SHARE

ADVRTISMENT STRATEGY

Promotion

Companies can do more than make good products—they must inform consumers about product benefits and carefully position products in consumers’ minds. To do this, they must skillfully use the promotion tools of advertising, sales

promotion, public relations, sales force, direct marketing, and personal selling.

Advertising Goal

The chief advertising goal of Mobilink is to increase its customer base and to stimulate more usage.

Mobilink is currently using:

Information Advertising: To create brand awareness and knowledge of its Mobilink World brand.

Reminder Advertising: To stimulate the repeat purchase of its Jazz and Indigo brands.

Advertising Budget

Since the competition is intense in the telecommunication market, Mobilink has a significant advertising budget. It is advertising heavily to be heard and to constantly remind its target market to go for Mobilink. However, Mobilink’s actual advertising budget was not disclosed by the management.

Advertising Media

Mobilink is using television, print, and radio advertising media to disseminate its message and to build a brand preference but the most preferred is television since this medium is the most powerful, reaches a broad spectrum of consumers and has the maximum customer impact.

Radio: It has a relatively large listeners’ base and so is an effective way to communicate the message.

Billboards and Print Media: The Company has come up with elaborate campaigns, billboards and posters to promote Indigo, their post-paid brand.

　

Advertising Campaigns

The advertising theme “Mobilink: It’s simply a way to communicate”, is designed to demonstrate the new service’s simplicity and convenience.

Along with its service debut, Mobilink launched a nationwide campaign composed of television commercials and print ads. The national campaign is supplemented by local and regional ad campaigns produced by the Mobilink licencees. The national print and

broadcast ads are designed to be localized.

The success of Mobilink has not only to do with its increased offerings, but also has a great deal to do with the campaigns that Mobilink comes up with. The TV ads exude energy and liveliness, and an expressive color and lightning palette, the high frequency and visibility makes these advertisements noticeable which results into increased brand awareness and brand loyalty boosting sales.

Strong Brand Ambassadors:

 Mobilink in its advertising went on a different route (now copied by competitors) by starring the most charismatic superstars in its advertisements. The tested method of having a pretty face holding a Jazz card makes its advertising campaigns booming. Strings, Vaneeza Ahmad, Shaan, Iman Ali, Zainab Qayyum, Wasim Akram, and Shahid Afridi are some of celebrities associated with Mobilink.

　

The Mobilink World Campaign: Mobilink World being the value added service

brand for Mobilink has been started with an elaborate campaign with TV advertisements and print ads.

Sales Promotion

Mobilink uses different types of sales promotion method such as:

Consumer promotions

In order to kindle greater and quicker purchases Mobilink is carrying out the following consumer promotion activities including special deals such as:

Indigo Freedom Plan: this deal offers certain benefits of which two are:-

Friends & Family: This feature is available to the customers on any three Mobilink numbers (Jazz and Indigo) which can be added into F&F list by calling the help line at 111.

Local Rates: According to this freedom plan across Pakistan, all call, across all networks are charged as local calls.

Bonuses & Free Airtimes: Mobilink has been offering a number of bonuses to its

consumers. An example of its current bonus offer is:

　

　

Event Sponsorship

To enhance its corporate image, Mobilink practices event sponsorship. It sponsors movie premieres, concerts, sports events and community welfare. A few events sponsored by Mobilink are given below.

　

Direct Marketing

Mobilink also uses direct channels to reach its customers without using marketing middlemen. These channels include direct mail, catalogues, tele marketing as well as e-marketing. Mobilink also uses a very unique technique to reach its customers directly.

Electronic Marketing

Mobilink finds it electronic marketing very important and highly accountable.　

Online Ads and Promotions

Online ads and promotions tools such as banners ads and search related ads are being used by Mobilink GSM. These ads are placed on targeted and frequently viewed websites. Banners are also placed on related websites such as those which support web to SMS. For example “smspk.net”

　

Training the sales Representatives

Since Mobilink realize that a professional sales force plays a key role in developing and growing customers, it trains its sales representatives to effectively convince the customers by using effective screening techniques.

Success Factors of Mobilink

Mobilink is still the Market Leader and its success factors include:

Innovative Products

Excellent Customer Services

Best Coverage among cellular operators

SWOT ANALYSIS

Following are the SWOT (Strengths, Weaknesses, Opportunities and Threats) of Mobilink Pakistan.

Strengths

Mobilink is the market leader with huge customer base in Pakistan market.

It offers mobile services in the majority of cities and also in remote areas which makes it largest coverage network.

It has been enjoying successful journey in term of revenues, profits and market share.

Strong marketing and advertising.

They have got the Quality human resources, the reason behind that is strong recruitment and selection process.

Offers competitive salaries and benefits to the employees.

Powerful brand equity.

The quality of service has been tremendous specially in the major cities of Pakistan.

Only Mobile service in Pakistan offering coverage on M2 motorway.

Mobilink has signed the agreement with 50 operators to provide the roaming services in 50 countries of the world.

Mobilink is the first company to introduce blackberry services in Pakistan for that reason it has been the first choice for the business people.

Joint venture with MCB to offer mobile banking services to customers.

Weaknesses

It offers high calls rate to the customers as compared to the other competitors.

Quality of service is not good in remote areas.

The promises made in the advertisement are not fulfilled by company.

Not offering attractive SMS packages.

Opportunities

Low the call and messaging rates. It can offer the prepaid Internet

packages to its customers.

Focus on marketing of Internet, TV, Blackberry services and radio services to its customers.

Improve the quality of services in remote areas.

Educating people about usage of services.

It should go for Joint venture with banks to offer mobile banking services.

Threats

Facing tough competition from Telenor, Ufone and Warid.

Telenor entered into new arena of Mobile commerce, it may attract more customers and fetch market share from Mobilink.

Rapid rise in Taxes on telecommunication services.

Inflation devalues the Pakistan currency.

Security condition is the biggest threat.

Power outage increases the cost of services due to heavy usage of generators.

H R GOALS

RECRUITMENT AND SELECTION PROCESS

Policies for Recruitment and Selection as experienced at Mobilink are:

Recruitment policy

Objectives:　

The policy is meant to ensure an effective and efficient method of recruitment and selection. It is aimed at hiring without any discrimination based on race, colour, sex, nationality, ancestry, religion or disability

Policy guidelines:

The recruitment policy must comply with regulations set out by the Government of Pakistan.

The Sources of recruitment for different job vacancies in PMCL shall include:

Internal Advertisement. Databank.

Advertising.

Head hunters/executive search organizations.

Walk in candidates.

Colleges and Universities

a) External Recruitment:

i. No candidate under the age of eighteen will be considered.

ii. To avoid conflict of interest, hiring of close relations (brothers, sisters, spouses, first cousins, brothers/sisters in law) will not be encouraged. However candidates falling in this category who have exceptionally good credentials may

be considered. Hiring supervisors will need to explain in their assessment of the candidate their qualities that justify hiring. A final decision will rest with the concerned Divisional Head who will need to ensure that there is no conflict of interest.

iii. Human Resources will advise Department Heads on salary ranges to be offered to the applicant keeping internal and external equity in perspective.

iv. Minimum qualifications must be a Bachelor degree or equivalent. A-Level or equivalent may be considered for call centre/support staff however will require approval of the VP Human Resources & Administration.

This criteria does not apply to technicians/riggers and ancillary staff.

b) Internal Recruitment

i. Internal candidates must be confirmed employees of Mobilink who have completed one year of service. However exceptionally good candidates may be considered.

ii. Selected candidates will join the new job/position after getting clearance from existing line manager.

iii. Spouse of an existing employee will not work for direct competition and either one will have to resign from service. Prospective candidates whose spouses work for competition will not be considered for hiring.

iv. Hiring from vendors, franchises, and clients is not encouraged. Exceptionally where offers are made to employees of these entities their prior consent must be obtained.

General conditions for recruitment:

All recruitment will be done through the Human Resources Department in consultation with the Officers and Heads of the concerned Department.

An applicant’s knowledge, skill and aptitude related to the position shall be judged according to a range of factors including:

a) Education (Academic / Professional).

b) Experience.

c) Profile and Psychometric Tests

d) Interviews.

e) References.

Application:

Applicants may apply online by registering with the web based recruitment portal. However, when considered for a specific position, they will be required to fill the standard application form of the Company.

All applications will be kept on HR database for a period of 6 months only.

Practices at Mobilink regarding Recruitment and Selection:

Practices regarding the recruitment and selection are in accordance with the policies formulated by the HR department. According to employees following were the recruitment practices. Two types of Recruitments: Internal and External.

Sources of Internal Recruitment Sources of External Recruitment

Employee referrals

Internal advertising

Job fairs

University Hunts

Advertising

Emplacement Agencies

Walk in candidates

All recruitment and selection process is handled by the Human resource department. Applications for jobs are mostly made via internet.

Selection criteria are totally based on merit. A series of interviews are conducted followed by a panel interview and a group discussion. Only deserving from a lot of applicants are considered

Critical Review on Recruitment and selection process :

It goes without saying that reference for job works. So it’s surely a flaw in the recruitment and selection process of Mobilink. We know a number of people who get job in Mobilink on reference basis. However, saying all 17 that,

getting a job at Mobilink and retaining that job at Mobilink for a time are two different things. One thing was interesting studying the Mobilink Recruitment and Selection process. Company entertains online applications more than Mailed ones. To us, reason is twofold. First, it reduces burden during the Recruitment process. Secondly, by using online system, company can keep Its image as innovative and latest the eyes of its consumers.

PERFORMANCE MEASUREMENT

Policies at Mobilink for Performance Appraisal:

Objectives:

The purpose of this policy is to provide a formal review program to evaluate work performance and to promote communication and discussion of job performance. The intent of these discussions should be to review current

job performance and responsibilities, set goals, and discuss future opportunities with reference to past performance at Mobilink.

The Objectives of the Performance Review Program are:

o To measure work performance

o To motivate and assist employees in improving their performance and achieving their personal/professional career goals

o To identify employees with high potential for advancement

o To provide objective information for making decisions on salary increases, promotions, bonus and transfers.o To identify employees training and development24

o To provide a solid path for career planning for each individual

Frequency of the Performance Review:

Informal performance discussions should be conducted frequently as and when the need arises. These discussions will provide the basis for an objective

summarization of performance during formal Performance Reviews and allow more time for discussing future plans and organizational as well as personal objectives. The supervisor is encouraged to make notes on pertinent points discussed and to place those notes in the employee’s personnel file.

Formal written performance reviews will be conducted with all employees annually. Notification along with Performance Evaluation Forms will be sent from the Human Resources Department in advance with the scheduled performance evaluation date.

All employees will be reviewed at least once at confirmation. Therefore, Performance Reviews will be held on an annual basis from the date of hiring or more often if desirable to do so. The supervisor will receive notification of the scheduled review period from the Human Resources Department.

Performance Appraisal Forms:

The performance appraisal forms will be filled once in a year to get a clear picture of the employee performance.

　Practices at Mobilink for Performance Appraisal System:

Mobilink conducts performance appraisal in order to evaluate their employee’s current performance or past performance relative to company’s performance standards. Mobilink try to adapt the performance appraisal in which their employees understood what his or her performance standards were and that the supervisor also provides the employee with feedback, development, and incentives required to help the person eliminate performance deficiencies or to continue to perform above par. There are many performance appraisal methods. Mobilink uses the computerized performance appraisal method.

In Mobilink the performance appraisal of employees is conducted in December. The Mobilink HR department has developed a performance appraisal sheet and has downloaded it on the intranet of Mobilink so that the supervisor performs the evaluation of the employees. When the supervisor completes the evaluation, he will send the performance appraisal sheet to the employee for the affirmation with the ideas of the supervisor if the

employee does not agree with the supervisor he will not sign the PA sheet. When the last date of submission of PA sheet is passed then the HR department asks the supervisor and the employee about the problem and resolves the problem.

Critical Review on Performance Appraisal:

Online 360 degree approach of performance appraisal is adopted at Mobilink for evaluating employee performance. In the past only 180 Degree approach for performance appraisal was adopted but now 360 Degree is also in action. This is a very supportive strategy by the organization because if an employee is not happy with the evaluation by his supervisor then he has the authority to challenge. There are a number of rewards that are tied to performance appraisals. So, tool applied for performance appraisal justifies itself.

REWARD DISTRIBUATION

Policies on Reward system at Mobilink:

There is a list of policies regarding the reward system at Mobilink. It offers both kinds of rewards: Intrinsic and Extrinsic. Following are the main reward related policies:

SALARY

Objectives:

The purpose of this policy is to have salaries subject for review in January of each calendar year in the light of merit and inflation. An employee, who is employed on a job with title and specifications, will receive compensation that is relevant to field experience matching with approved salary structure of his / her position.

Salary Administration Program:

Salary Objective:

The salary administration program is designed to meet the following objectives:

1. Attract & retain the services of competent qualified employees.

2. Provide fair and equitable compensation to each employee and to ensure that the value of each job relative

to all other jobs within the Company is established and maintained on a fair and equitable basis.

3. Provide annual performance appraisal for employees to improve their job performance and to encourage them to aspire for promotions to jobs with greater responsibilities i.e. fairly compensate employees based on individual accomplishments and annual performance appraisals.

4. Ensure that salaries are competitive and in line with salary levels that prevail in the industry.

5. Instill employee confidence in the Company’s compensation policies and practices.

Salary Outline:

The “Basics” of the salary administration program can be summarized in the following manner;

o The VP Human Resources & Administration and the concerned Department Head will analyze each job classification.

o The HR Department determines an appropriate salary range in relation to similar jobs at other well respected companies (salary survey).

o The HR Department will analyze each job and assign a job code, hire rate, minimum, mid and maximum point rate. (Salary Structure)

o The HR Department will prepare the salary structure to be reviewed and approved by the Director & VP HR.

Salary Scale:

Each job is assigned a minimum salary, established according to the salary survey results, which specifies the minimum salary that may be paid to incumbents in each job.

Minimum through maximum scales is built on a system of mathematical calculations to allow for overlapping between levels as a result of salary, merit or promotional increase.

Setting Starting Salaries:

Objective:

To ensure that each employee is given the starting salary of the title level in which his / her position and experience fall. Also to ensure that consideration is given to past experience and qualifications when setting starting salaries

Factors to be put into consideration for setting salaries within the range determined by the departmental Head & the HR department The starting salary offered to new candidates by Mobilink will be dependent on two factors:

· The particular job level for which the job offer is being made.

· The candidate’s education, experience, qualifications as compared to the minimum qualifications required by the job specification and prevailing industry rates.

Salary Administration Procedures:

· Human Resource Department:

Prepare all documentations and their summary affecting salaries, and forward

payroll section for processing that includes:

o Recruits, transferees

o Promotion and increments

o Allowances, bonuses and incentives

o Discipline

o Review the all documents affecting salaries.

o Entry of all salaries based on Salary, allowances, deductions and commissions. Besides there are other intrinsic and extrinsic awards that leads towards one objective only and that is: To compensate employee sufficiently so that he may be motivated and constitutes an integral part of organization.

Other intrinsic and extrinsic rewards include:

Medical care Life insurance

Vacations

Relocation

Credit advance policyprovident policy/advance against provident fund and acapping of gratuity

Recreation

Club Policy Travel

Education assistance policy

Mobile phone

Business mobile phone policy

Official Balckberry Poicy

Practices on Reward systems at Mobilink:

Policies regarding the reward systems are practiced quite strictly at mobilink. Employees are paid when they are supposed to pay. Other rewards are also fast but they are mostly tenure based rather than performance based. In policies it is mentioned that the rewards are totally performance based.

However, this policy is not that much followed strictly. Rewards are mostly determined by the organizational membership and seniority rather then by performance. Promotion is given on the basis of performance, as well as tenure.

Critical Review:

Reward system at Mobilink is quite complicate. The reason for this is that there are many intrinsic and extrinsic, direct and indirect, compensating and non-compensating rewards. There is even a department that looks after the motivational aspect of the employees. How motivation level of employees can be kept to a level so that they can be more productive. PMO (Project management office) introduces many club memberships, game shows, lunch arrangement and many more for employee to be motivated. Similarly, there

are special achievement awards at each individual level. Then there are even team awards, department awards and division awards.

One thing to mention is criteria for rewards. As mentioned earlier in policies, rewards are performance based. But this is true only in case of achievement awards, group awards etc. If we observe basic pays and increments then those are not performance based. Those are more of tenure based. Mobilink does say that

all rewards are performance based. However, it is not the case in practice.