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For over 150 years, telecommunications has played a vital part in the development of modern Norwegian society. As the incumbent provider, Telenor has been the driving force in the development of a highly sophisticated home market and is now one of the largest mobile operators worldwide.

The Telenor Group is dynamic and flexible in its business approach, always exploring new markets and new technologies to make long-term investments. This is part of the reason why Telenor has grown from a national telephone service company in Norway to become the world’s 7th largest mobile provider in less than two decades. At the time of its Initial Public Offering in 2000, Telenor had a mobile subscriber base of 15 million. By the end of 2008 this reached 164 million. The Telenor Group is now a driving force in the industry, engaging in pioneering research and technology development and other areas that are important to develop the core business of Telenor further.

1.1 Line of Business of Telenor Group

The core business of Telenor Group is telecommunications. We provide voice, data, content and other communication services in 13 countries across Europe and Asia.

These are the main services we provide to consumers and enterprises around the world:

Voice:

Talk on the phone. From fixed-line to mobile or IP telephony, Telenor enables people to talk to each other using fast and reliable networks throughout the world. We sell fixed voice communication services in three Nordic countries and mobile voice in 12 countries across Europe and Asia.

Data:

Internet and broadband. We offer fixed-line data services (e.g. ADSL and fibre-optic communications) in the Nordic countries, and mobile data services (e.g. mobile broadband, GPRS, UMTS) in 12 countries. As of 2008, 3G-based mobile broadband services have been launched in 7 of our operating countries.

Content:

TV services and mobile content. Telenor offers TV services via cable, digital terrestrial and satellite networks in four Nordic markets. In several markets we also offer mobile content services (e.g. ring tones, music, movies, sports, and mobile TV).

Other services:

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We offer a wide range of telecom-related services, and the service portfolio varies from country to country. In several markets we provide Net-centric services like IT security to consumers and enterprises and machine-to-machine (M2M) services for enterprises. We also provide IT consulting, maritime communications and aircraft communications services. Read more about other units of Telenor.

Other Units

In addition to its own telephony and broadcast services, the Telenor Group has substantial activities in subsidiaries and joint venture operations. While some are seen as a pure financial investment, others are important in order to support and develop the core business of Telenor.

Telenor Connexion

Telenor Connexion is a world-leading provider of machine-to-machine (M2M) communication solutions. M2M refers to machines communicating with each other via wire or mobile networks. This form of automatic data transfer opens a range of possibilities, i.e. locating or tracking containers, temperature monitoring and automatic meter reading. Drawing on more than 10 years of M2M experience, Telenor Connexion is constantly exploring new fields in this rapidly growing business. In Europe alone there are several billion devices that could potentially be networked by wireless or fixed technologies. The company was established in 2008 and originates from the successful M2M business within Telenor Sweden.

EDB Business Partner ASA

EDB Business Partner ASA is one of the leading IT groups in the Nordic region providing an extensive range of consulting and information technology services to a broad range of industries and the public sector.   The company has approximately 6000 employees working from locations in Norway,

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Sweden, Denmark, the Ukraine, Great Britain and India. It is headquartered in Oslo, Norway, and the operating revenue reached NOK 6.3 billion in 2007. Telenor holds an ownership share of 51.3 per cent.

Telenor Eiendom Holding

Telenor Eiendom Holding is wholly owned by Telenor. At the end of 2007, the company managed approximately 900,000 square metres of owned and leased floor space spread out over approximately 5,200 buildings. The company's main task is to ensure that the Telenor Group has at its disposal sufficient premises to allow its main activities to be performed in a cost effective manner.

Telenor Global Services AS

Telenor Global Services AS (TGS) is the international carrier of the Telenor Group. The company has years of experience in delivering high quality services to mobile and fixed operators around the globe. TGS understand the needs of today’s communications providers - which is why we have developed an industry leading focus on Quality of Service (QOS) and earned a reputation as a world class quality International Carrier. The extensive mobile operators of the Telenor Group, with more than 160 million subscribers use TGS to deliver high quality international services to their growing subscriber base. TGS suite of services combined with our networking and QOS expertise allows you to focus on your customers, with the peace of mind that your voice, video, data and IP services are being delivered by a world class partner. TGS has been a limited company since 1995, wholly owned by the Telenor Group.

Telenor Research and Innovation

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Telenor Research and Innovation (R&I) is an innovation hub for the Telenor Group with particular focus on strategically driven innovations with a long-term perspective. The R&I unit’s competence areas include users, markets, business models, technology and commercialization. Experimentation, testing and demonstration facilities are part of the work. Telenor R&I practises an open innovation model based on cooperation with leading users, businesses, universities and institutes.

R&I is a competence resource centre for the Telenor Group, providing expertise and advice, and challenges to management on existing strategies and business mindset. The unit also provides significant support to the business units through joint projects.

In addition to the R&I centres in Fornebu, Tromsø and Trondheim, a new centre was established in Malaysia in 2006. This Asian centre (TRICAP) focuses on social media and growth market opportunities.

R&I is wholly owned by Telenor.

Telenor Venture

Telenor has since 1993 been actively investing in emerging companies within the information and communication technology sectors through the investment firm Telenor Venture.    The company currently manages two funds; Telenor Venture IV AS where Telenor has a 51 per cent stake (the rest is owned by an investment firm), and Telenor Venture VII AS which is wholly owned by Telenor. Telenor Venture seeks to capitalise on the competencies, technology and network of the Telenor Group, and has during the recent years had success with spin-offs from the Telenor Group.

Maritime Communications Partner AS

Maritime Communications Partner AS (MCP) is a global maritime cellular operator focused on providing cost effective GSM and CDMA communications solutions specially created to fulfil the requirements of the shipping industry.

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  MCP provides seamless connectivity via personal mobile phones to both passengers and crew on board cruise-ships, ferries and other vessels worldwide. MCP is wholly owned by Telenor.

Aeromobile Ltd

AeroMobile Ltd enables aircraft passengers and crew to safely use their own mobile phones and PDAs whilst in-flight to keep in touch with colleagues, customers, friends and family.   AeroMobile supports voice telephone, text messaging and data services using current and future aircraft communications technologies. Telenor owns 75 per cent of Aeromobile, the remaining 25 per cent is held by Arinc.

More Mobile Relations

More Mobile Relations is a mobile marketing agency majority owned by Telenor. The company is a merger between the Norwegian company Active Loop Marketing, the Swedish company 12-snap Lokomobil and the Danish company N’volve.   More Mobile Relations offers a broad range of digital and interactive concepts that utilise the mobile phone as the key platform. These concepts range from mobile campaigns, mobile CRM, mobile learning, mobile-in-store and mobile web sites.

1.2 Global presence

The major part of our business is organised in three regional entities:

Asia:

Bangladesh, Malaysia, Pakistan, Thailand and India.

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Nordic countries:

Denmark, Norway, Sweden and Finland.

Central and Eastern Europe:

Hungary, Montenegro, Russia, Serbia and Ukraine.

1.3 Employees and Subscribers

Telenor Group is among the largest mobile operators in the world with

39,250 employees

166 million subscribers

13 countries

154 years of history

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2.1 Introduction

Telenor Pakistan is 100% owned by Telenor ASA and adds on to its operations in Asia together with Thailand, Malaysia and Bangladesh.

Telenor Pakistan launched its operations in March 2005 as the single largest direct European investment in Pakistan, setting precedence for further foreign investments in the telecom sector. The company has crossed many milestones and grown in a number of directions, making Telenor Pakistan a leading telecom operator of the country.

Telenor is the fastest growing mobile network in the country, with coverage reaching deep into many of the remotest areas of Pakistan. In the most difficult terrains of the country, from the hilly northern areas to the sprawling deserts in the south, at times we are the only operator connecting the previously unconnected.

Telenor is keeping ahead by investing heavily in infrastructure expansion. With USD2 billion already invested, we have extended agreements with their vendors for network expansion and services until 2009. The agreements, with a potential to result in USD750 million worth of orders from Telenor Pakistan, are some of the biggest of their kind in the industry.

Telenor is spread across Pakistan, creating 2,500 direct and 25,000-plus indirect employment opportunities. Telenor has a network of 23 company-owned sales and service centers, more than 200 franchisees and some 100,000 retail outlets.

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2.2 Strategic Intent

Telenor’s vision crystallizes on customer focus as the cornerstone of everything they do. Their values describe what behaviors are necessary to realize that vision. Their corporate responsibility mindset ensures that their vision and values nurture social concern and help them create shared value.

2.2.1 Vision

Their vision is simple: We're here to help

They exist to help their customers get the full benefit of communications services in their daily lives.

The key to achieving this vision is a mindset where every one of them works together: Making it easy to buy and use their services. Delivering on their promises. Being respectful of differences. Inspiring people to find new ways.

2.2.2 Mission

Telenor Pakistan is a customer focused business mobile service operator/telecommunications Company that seeks competitive advantage in quality and valued added service in both prepaid and postpaid categories through state of the art technology. Telenor relies on building trusting relationships with customers, owners, employees and society in general.

2.2.3 Objectives

The three primary objectives for Telenor Pakistan's emphasis on Corporate Responsibility are:

Telenor Pakistan's customers shall be confident that the company runs its operations in an ethically responsible manner.

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Telenor Pakistan's employees shall be proud of the way in which the company handles its social responsibility.

Telenor Pakistan’s other stakeholders, expecting high standards of social commitment, shall have high regard for the company.

2.2.4 Core values

They believe in four core values:

Make it Easy

We're practical. We don't complicate things. Everything we produce should be easy to understand and use. Because we never forget we're trying to make customers' lives easier.

Keep Promises

Everything we set out to do should work, or if it doesn't, we're here to help. We're about delivery, not over promising, actions not words.

Be Inspiring

We are creative. We strive to bring energy to the things we do. Everything we produce should look good, modern and fresh. We are passionate about our business and customers.

Be Respectful

We acknowledge and respect local cultures. We do not impose one formula worldwide. We want to be a part of local communities wherever we operate. We believe loyalty has to be earned.

2.3 The Telenor Brand

Here to Help

For 150 years, Telenor has pioneered communication technology. Our innovation was necessary to enable movement and development across Scandinavia’s long distance and harsh natural conditions. Today we are a major worldwide player, but have the same single focus: helping people to communicate.

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The new Telenor brand articulates this ambition and our new logo is a symbol of movement and change – our continuous evolution to enable people to communicate better.

The whole Telenor group is committed to our brand promise. We want to make it easy for customers to get what they want, when they want it. We will keep promises and deliver what we say. We will innovate to deliver fresh ideas, and as a global player we respect our customers and their local cultures wherever we operate. Across all the markets where Telenor has a presence, the Telenor group is united to help our customers get the full benefit of communication services in their daily lives. In simple words, we’re here to help.

The Brand

At the heart of our new brand, is a new logo. It’s a symbol of balance, movement and change. It represents our philosophy of innovation and democratic process and takes its inspiration from Scandinavia’s long history of design inspired by nature.

Of course a brand is much more than just a logo – it’s a set of ideas, a way of doing things and measure of behavior.

Of course, in many ways, Telenor already stands out. We have shown impressive growth and an increasingly international focus, particularly in new growing markets but we can go – and need to go – much, much further.

“Our aim is to be the trusted mobile service provider for the Pakistani customer”

Telenor Pakistan today is the fastest growing network in the country with a rich portfolio of products and services. We have edge of introducing products which are industry first and provided consumers with more and more convenient options of communication. Our brand is truly customer centric. We believe in understanding our customer’s needs which have changed and are changing constantly therefore continuously driving us to innovate in terms of our products and services.

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2.4 TELENOR PAKISTAN PRODUCTS

PRODUCT LEVEL

CORE PRODUCT BASIC PRODUCT EXPECTED PRODUCT

AUGMENTED PRODUCT

POTENTIAL PRODUCT

PRODUCTS COMMUNICATION TELECOMMUNICATION SERVICES

GOOD NETWORK AND FASTER

CONNECTIVITY

VAS BILL PAYMENT & EASYLOAD

FACILITY OF WEBSITE

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2.5 Corporate Structure

Jon Eddy Abdullah, Chief Executive Officer

Jon Eddy Abdullah has more than 15 years of experience in the telecommunications industry. He has been working with both infrastructure vendors as well as several mobile operators, most recently as Chief Operating Officer in Maxis Telecommunications, Malaysia, and Chief Technology Officer DiGi Malaysia. Jon holds a Bachelor of Science (Electrical Engineering) from Montana State University, USA.

Irfan Wahab Khan, Executive Vice President Corporate Affairs & CEO LDI

Irfan heads the Corporate Affairs & CEO LDI Division and supervises the Regulatory & Interconnect, Legal Affairs, Public & Government Affairs, and Corporate Communications departments. He has extensive international experience of working in the mobile cellular industry having worked with Orange UK, T-Mobile USA, Telecordia Technologies USA, Nortel Networks, Ericsson Philippines, and the Ministry of IT & Telecommunications Pakistan. Irfan has served as a Director on PTCL's Board and was Vice Chairman of GSM Alliance, North America. Irfan Wahab Khan has an MSc in Mobile Communications from the University of Westminster, UK.

Lars Christian, Chief Marketing Officer

Lars-Christian Iuel rejoins the Telenor Group following a two-year stint with Cell One, Namibia's well-known mobile operator. He was appointed Cell One's CEO in 2007 from his previous position as the company's CMO. Lars was Senior Executive Vice President, Private Products, Telenor Nordic when he left in 2006. He joined Telenor ASA in 1996. With 12 years management experience Lars has a wide range of knowledge of the industry. He has a Cand. Merc (MBA) from University of Aalborg, Denmark, an MBA

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from University of Sheffield, UK, and can speak English, Norwegian, Danish and German.

Peter Dindial, Chief Technical Officer / Vice President Technical Division

Peter heads the Technical Division which comprises the Network Planning & Design, Implementation, Operations & Maintenance, Real Estate & Site Acquisition, Technology and Strategy, and E2E QA departments. He was previously responsible for the development of the Real Estate & Site Acquisition department. He has been Operational Advisor to CEO Telenor Pakistan, and has worked on a broad range of commercial and technical operational issues. He has also been responsible for managing the CEO's Office. Prior to joining Telenor Pakistan, Peter was the Chief Operational Advisor for Promonte, Telenor’s operations in Serbia and Montenegro. Peter began his career with British Telecom (BT) in the UK where he worked for nine years. He spent the next 10 years on various international assignments including working with StarHub in Singapore and Ericsson in Malaysia. Peter Dindial has an MBA, and a BA in Business and Finance from the University of South Bank, London.

Khalid Shehzad, Chief Information Officer / Vice President IT Division

Khalid heads the Information Technology Division and manages the Business Support System, IT Operations, and IT Security departments. Before joining Telenor Pakistan as CIO in June 2004, Khalid worked in Tanzania as a CIO for Celtel International which caters to both mobile and fixed line customer needs. Khalid has the distinction of being noted as IT Director of the Year for Western Wireless International in 2000, and Employee of the Year at Millicom International in 1996. He began his career 14 years ago, and has worked extensively in the international telecom sector with companies such as Motorola, Millicom, AT&T Wireless, Western Wireless, Celtel Intl, and with Ufone. Khalid Shehzad has a BSc in Computer Sciences from UCLA USA and an MBA from IBA Karachi.

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Peter Kuncewicz, Chief Finance Officer / Vice President Finance Division

Peter heads the Finance Division and supervises the Business Planning & Finance, Accounts, Procurement, Treasury, Financial Operations, Revenue Assurance & Fraud Management, Credit Control, and SOA departments. Peter comes from a CFO / CIO's position from Star Foods S.A. Poland, an FMCG company, where he worked from 1996 to 2006. He held the position of Controller Procurement and IT Project Manager at Bahrain Telecommunications from 1987 to 1996. Peter also has experience in the building materials, electronics and pharmaceutical industries. He is a member of the United Kingdom Chartered Institute of Management Accountants. Peter Kuncewicz has an MSc in Business Planning and Finance from the University of Salford, England, and a first degree in Biology from the University of Sussex, England.

Nayab Baig, Vice President Human Capital Division

Nayab heads HC Division and oversees the People Excellence & Business Process Improvement, Safety and Security , and Organizational Support Services departments. He has extensive human resource management experience having developed performance planning, management and evaluation systems in addition to introducing developmental activities at Packages and Unilever Bestfoods in the past. He has headed the HR departments of Packages Ltd., Unilever Bestfoods, SHV, and Avari Renaissance Hotel. Nayab Baig has an MA in Human Resource Management from the University of Westminster, UK.

Ronny B. Naevdal, Vice President Strategy

Ronny joined Telenor Pakistan in 2007 coming from the position of Director Strategy and Business Planning in Telenor Nordic.He has held various positions within Operations, IT, Product Development, Strategy and Business Development. He has been a Director on a number of Boards, and is currently on the Board of Directors of Golden

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Telekom (GLDN), Russia. From 2002 to 2005, he was working for Telenor Networks as Director of International Operations. Ronny has been working with the Telenor Group since 1997, and has five years of experience of international assignments in the Internet and WLL business.Ronny Naevdal has an MSc in Telecommunications from the Norwegian Institute of Technology.

2.6 Organizational Chart

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2.7 Corporate Governance

Corporate governance defines a framework of rules and procedures by which the Telenor

governs and controls its business. Good corporate governance is about establishing a

sound platform for such a framework and applying our values in order to create value

for Telenor stakeholders. They consider good corporate governance to be a prerequisite

for value creation and trustworthiness and for access to capital.

Governance principles

In order to secure strong and sustainable corporate governance, it is important to ensure

good and healthy business practices, reliable financial reporting and an environment of

compliance with legislation and regulations

Trust and transparency

Telenor believe good corporate governance involves openness and trustful cooperation

between all parties: the owners, the Corporate Assembly, the Board and Group

Executive Management, employees, customers, suppliers, creditors, public authorities

and society in general. When submitting reports, Telenor provides both financial and

non-financial information, emphasizing transparency so that interested parties may be

able to make informed decisions.

Applying values to create value

Good corporate governance principles are reflected in our values – Make it easy. Keep

promises. Be respectful. Be inspiring. By applying our values in what we do as an

organization, we create value and maintain a healthy corporate culture.

Compliance with rules and regulations

Telenor has developed a set of principal documents, for example the Codes of conduct, as well

as policies and complimentary procedures, to ensure good and efficient controls. Telenor

works continuously to ensure that policies, procedures, training and control mechanisms

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are current and adequate. They should meet Telenor’s own requirements as well as the

justified expectations of other interested parties. Telenor works systematically to ensure

compliance with rules and regulations.

Socially responsible business conduct

Telenor efforts to ensure socially responsible business conduct involve more than just

good business ethics at all levels. They concern the manner in which Telenor treat their

employees, their relationship to nature and our surrounding environment, their efforts to

ensure safe products, as well as a number of other factors.

Telenor Pakistan considers good corporate governance to be an essential tool for

achieving our vision, value creation and strategic goals, and for maintaining a healthy

corporate culture. Furthermore, good corporate governance is imperative for credibility

and for access to capital.. Rules and procedures provide Telenor Pakistan with a sound

platform for good corporate governance and for the further development of a positive,

responsible and robust corporate culture. The Management is responsible for ensuring

the existence of internal rules, procedures and structures that can efficiently secure value

creation for all stakeholders and where authority and responsibilities are clearly set out

and mutually understood

2.8 Social Responsibility

Telenor Pakistan acts responsibly and respectfully towards the people and authorities in

different societies and aims to contribute to social and economic development in the

local market. This is the essence of our commitment to Social Responsibility.

They take seriously the social, ethical and environmental impact of our products and

services. They place emphasis on making sure that the communities in which we operate

see Telenor Pakistan's as a good citizen with genuine ambitions to contribute to social

and economic development. They give their employees reasons to be proud of the way

Telenor Pakistan's demonstrates Social Responsibility.

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2.9 Corporate Volunteerism

At Telenor Pakistan, it is believed that corporate volunteering has arrived as a major

focus in the way business and community form and view their relationships. It is an

initiative in which the corporation supports and encourages employees, partners, and/or

franchise members to volunteer their time to support local community organizations and

causes. Volunteering in the community along with corporate support is viewed by many

as one of the most satisfying of all forms of corporate social involvement.

Keeping in mind corporate volunteerism, Telenor Pakistan developed the idea of Go

Teams which comprised of Telenor employees and play a vital role in all our emergency

response projects. To honor these Go Teams, Telenor Pakistan recently organized

Volunteer Extraordinaire 2008 conference to recognize, reward and further enhance

employee contribution towards corporate volunteerism. An extensive training on ‘how

to responds in emergencies’ was given to all volunteers representing six telecom

regions of Telenor Pakistan. Currently, Telenor is also operating a Zakat Fund through

which employees can donate part of their monthly salaries for the earthquake affected

children in SOS Shelters. Whether Dua, Telecom Futures, apnaPCO, Naya Qadam,

emergencies and others, the support and hard work of Telenor employees has helped

position Telenor Pakistan as a leader in corporate responsibility

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2.10 Core Competencies

Coverage

In just one year of operations in Pakistan, Telenor has expanded its coverage to over 250 cities in Pakistan. This has been possible due to heavy investment in infrastructure development and forgoing short term profits.

Product Quality

Through the superior network design Telenor is able to provide its customers with the highest quality cellular service in terms of reception, coverage and value added services.

Large resource base

Telenor Pakistan is a subsidiary of the Telenor Group of Norway. This gives the company a huge resource base in terms of financial and technological assets compared to the competitors.

Distribution Network

Telenor has a competitive advantage over its competitors in terms of its distribution network. The company has a very high level of retail penetration, aimed at maximizing profits.

Innovation

Most of the innovation in telecommunications today doesn’t happen in laboratories. It happens and evolves in a highly dynamic interplay between user demands and technological advances. At Telenor, Telenor seek to understand these dynamics on a multitude of levels and turn them into new solutions that respond to true customer needs. This ambition underpins the way Telenor organize its innovation efforts.

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3.1 External Environment

3.1.1 Societal Environment

Economic Forces

Economy of Pakistan is not productive and going downwards. There is high inflation rate. Also the currency is devaluating. The interest rates are very high.

Technological Forces

In Pakistan telecommunication industry new technologies have introducing. Development in technology is going on swiftly.

Political Legal Forces

There is no stability in government of Pakistan, which affects the working of the international subsidiaries. PTA has also imposed restrictions. Taxes are also very high.

Sociocultural Forces

Religious factors affect a lot. The recent example is Cartoon Controversy. Due to cartoon controversy, Telenor suffered masses.

3.1.2 Task Environment

Market

Telenor is operating in ultra competitive market where there immense competition in capturing the market share.

Competitors

The major competitor of Telenor is Mobilink. Ufone,Warid are not big competitors of Telenor. Zong has just started its operations.

Customers

There is big deal in creating customer value in this ultra competitive market. Customer preferences cannot be overlooked.

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Suppliers

Telenor uses the optic fiber technology of PTCL. And the technology solutions are provided by TERADATA.

Government and Interest Groups

Government is imposing restrictions on telecommunication companies. Interest and community groups like NGOs affect the performance.

3.2 SWOT ANALYSIS

Strengths

Financial Strength of Telenor Group and their telecom expertise

Network quality & design

Superior customer care

Excellent Coverage & Distribution.

Commercial Launch of LDI & mobile services

Contract with Siemens & Nokia

Brand image of Quality

E-commerce usage.

Weaknesses

Relatively low market share

Low profit margins

Ineffective target marketing

Mostly targeting the people living in cities, rather the huge pool of people in the

villages which is still uncovered

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Opportunities

Favorable Macroeconomic indicators

low cellular market penetration

Inefficiency & poor performance of other mobile networks

Co branding e.g. Ufone with ABN AMRO(in past)

Strategic Alliances & Infrastructure Sharing Facilities

International Mobile Equipment Identity System

About 60% of people lives in villages are un-served

Mobile Number Portability

Threats

Rolling Customers

Privatizations & deregulations- increased competitions.

MNP mobile number portability

Wireless technology at boom

Public pay phones & calling cards usage where network is not available

Propagandas attacking brand image

Brand presence and acceptability of Competitors brand

Higher rate of activation taxes and balance recharge taxes is causing concern that

it could slow down consumer growth specially in rural areas

Unstable political environment

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3.3 SWOT Matrix

The Strengths-Weaknesses-Opportunities-Threats (SWOT) is the also named as the TOWS matrix. SWOT analysis is a strategic planning tool used to evaluate the strengths, weaknesses, opportunities and threats, involved in a project or in a business venture or in any other situation requiring a decision. This is an important tool in order to formulate strategy. This Matrix is an important matching tool that helps managers develops the four types of strategies: SO strategies (strengths opportunities), WO strategies (weaknesses opportunities), ST strategies (strengths threats) and WT strategies (weaknesses threats). The most difficult part of the SWOT matrix is to match internal and external factors. Once the objective has been identified, SWOT are discovered and listed. SWOTs are defined precisely as follows:

Strengths are the attributes of the organization that are helpful to the achievement of the objective.Weaknesses are the attributes of the organization that are harmful tp the achievement of the objective.Opportunities are the external conditions that are helpful to the achievement of the objective.Threats are the external conditions that are harmful to the achievement of the objective.

Steps for Developing Strategies:

There are eight steps involved on constructing the SWOT matrix:

1. Rank external opportunities2. Rank external threats3. Rank internal strengths4. Rank internal weaknesses5. Match strengths with opportunities and mention the result in SO cell6. Match weaknesses with opportunities and mention the result in WO cell7. Match strengths with threats and mention the result in ST cell8. Match weaknesses with threats and mention the result in WT cell

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StrengthsNetwork quality and designSuperior customer careFinancial strengthExcellent coverage and distributionCommercial launch of LDI and mobile servicesContract with Siemens and NokiaBrand image of qualityPTA initiativesE-commerce usage

WeaknessesRelatively low market shareLow profit marginsNegative cash flows in initial years

OpportunitiesFavorable Macroeconomic indicatorsLow cellular market penetrationInefficiency & poor performance of other mobile networksCo branding with banksStrategic alliances & infrastructure sharing facilitiesInternational mobile equipment identity system

SO Strategies

Introducing 3G technology

Making the postpaid packages more attractive

WO Strategies

Diversify into similar industries e.g. DSL services

More attractive prepaid packages

ThreatsRolling customersPrivatizations & deregulations- increased competitionsGrey trafficMNPWireless technology at boomPublic pay phones & calling cards usage where network is not availablePropagandas attacking brand image

ST Strategies

Co branding with companies in other industries e.g. Banks

Use other mediums of promotion, other than the conventional advertising

WT Strategies

Protect image through constant CSR efforts

Capitalize and promote EDGE technology

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3.4 The Strategic Position and Action Evaluation (SPACE) Matrix

The Strategic Position and Action Evaluation (SPACE) Matrix is another important matching tool of formulation framework. It explains that what is our strategic position and what possible action can be taken. It is not a closed matrix. It is prepared on a graph. This follow counter clockwise direction. It contains four quadrants named; aggressive, conservative, defensive and competitive strategies. The axes of the SPACE matrix represent two internal dimension, financial strength (FS) and competitive advantage (CA); and two external dimensions, environmental stability (ES) and industry strength (IS), each rated on the scale of 1.0 to 6.0.

These four factors are the most important determinants of an organization’s overall strategic position.

Financial Strength (FS)1. Revenues 5.02. Return on investment 4.03. Working capital 4.0

14.0

Competitive Advantage (CA)1. Resources assets -2.02. High growth rate -1.03. Advertising -2.04. Competition capacity utilization -3.0

-8.0

Environmental Stability (ES)1. Technological changes -3.02. Rate of inflation -4.03. Demand variability -2.04. Barriers to entry into market -1.0

-10.0

Industry Strength (IS)1. Deregulation increase competition is telecom industry 3.02. Financial stability 5.03. Resource utilization 4.04. Profit potential 4.0

16.0

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Conclusion

FS average is 14/3 = 4.67

CA average is -8/4 = -2.0

ES average is -10/4 = -2.5

IS average is 16/4 = 4.0

Co-ordinates

X-axis: 4.67 – 2.5 = 2.17

Y-axis: 4.0 – 2.0 = 2.0

Telenor should pursue aggressive strategy

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6__

5__

4__

3__

2__

1__

0

-1__

-2__

-3__

-4__

-5__

-6__

-6 -5 -4 -3 -2 -1 0 1 2 3 4 5 6

AGGRESSIVE

CONSERVATIVE

DEFENSIVE

x

3.5 Grand Strategy Matrix

This is also an important matrix of strategy formulation framework. Grand strategy matrix is a popular tool for formulating alternative strategies. In this matrix, all organizational strategies divide into four quadrants.

Any organization should be placed in one of the four quadrants. It is based on two major dimensions.

Market GrowthCompetitive Growth

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RAPID MARKET GROWTHRAPID MARKET GROWTH

SLOW MARKET GROWTHSLOW MARKET GROWTH

WEAK COMPETITIVE

POSITION

WEAK COMPETITIVE

POSITION

STRONG COMPETITIVE

POSITION

STRONG COMPETITIVE

POSITION

Quadrant II

1. Market development2. Market penetration3. Product development4. Horizontal integration5. Divestiture6. Liquidation

Quadrant I

1. Market development2. Market penetration3. Product development4. Forward integration5. Backward integration6. Horizontal integration7. Related diversification

Quadrant III

1. Retrenchment2. Related diversification3. Unrelated diversification4. Divestiture5. Liquidation

Quadrant IV

1. Related diversification2. Unrelated diversification3. Joint ventures

3.6 Porter’s Model

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3.7 Value Chain

Value chain for prepaid

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REGIONAL SALESREGIONAL SALESPRINTINGPRINTING

DATABASE ENTRYDATABASE ENTRY

SIM DECODINGSIM DECODING

TELENOR PAKISTAN HEAD OFFICE

N

TELENOR PAKISTAN HEAD OFFICE

N

MARKETING DEPARTMENTMARKETING DEPARTMENT

AFTER SALESAFTER SALES

CUSTOMERSCUSTOMERS

RETAILERSRETAILERS

DISTRIBUTORSDISTRIBUTORS

Value Chain for Postpaid

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Customer’s activation charges

Customer’s activation charges

BillsBills

CallsCalls

SiemensSiemens

Finance & Accounts

Department

Finance & Accounts

Department

T

E

L

E

N

O

R

Online PaymentOnline Payment

Authorized dealers

(Security Code)

Authorized dealers

(Security Code)

Customer Service Center (Customer payment)

Customer Service Center (Customer payment)

Payment thru SMSPayment thru SMS

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4.1 Corporate Strategy

Telenor corporate strategy is based on growth strategy (intensive). They are aiming to increase their sales and profits Telenor Pakistan is committed to Corporate Responsibility in all its activities by making it an integral part of the corporate culture. The Telenor Group has a strong track record of delivering on ambitious goals. By 2011, they want to capture the market share through successfully developing new services and adopting new and responsible business models.

Telenor has defined six strategic ambitions which it aims to achieve by 2011. These are:

To deliver increased profitable growth

Telenor aims to achieve a substantial revenue increase in the years to come. This growth will mainly come from existing businesses. Telenor will seek to increase their core mobile revenues and explore broadband opportunities.

To strengthen performance culture

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, people policy. In terms of Health, Safety and Environment (HSE), objective is to improve working conditions and environmental management by having clearly defined standards.

To make responsible business a competitive advantage

Corporate responsibility at Telenor will be part of managing risk and linked to core business. For example, the measures have taken to fight climate change are motivated both by our commitment to corporate responsibility and by an enlightened view of associated business benefits and opportunities: what is good for the environment is also good for business.

To provide a superior customer experience

Faced with an increasingly competitive environment, Telenor needs to differentiate itself by providing a superior customer experience. In our vision – we’re here to help – and core values (make it easy, keep promises, be inspiring, be respectful), put customer experience at the top of the agenda. One of the ambitions is to reach a situation where end-users’ brand preference is higher than the Telenor market share for all operating companies.

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To ensure best practice benchmarking

Telenor will undertake benchmarking and best practice sharing. An 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 all of its operations.

To drive change and constant renewal

To secure a strong industry position, they need to innovate in everything they do. To get the most out of the efforts, their long-term ambition is to achieve the same position in broadband as they have in mobile voice today.

Improving performance management

Telenor aims to create a stronger link between the strategy process and performance monitoring. Telenor will implement a new and improved management model where strategic objectives and ambitions are monitored closely at both the company level and the lower department level.

4.2 Functional Strategies

4.2.1 Financial Strategy

“To be a pro-active value-adding business partner in delivery of the strategic imperatives

and the management of shareholder value expectations.”

Treasury: Evaluating cash levels and maintaining relations with banks are some

of the activities that are performed by the employees of this department.

Company Planning: This department focuses on developing a 3 years plan,

which includes the current year and plan for the upcoming years.

Marketing Finance: The employees of this department are concerned with the

expenditures of the marketing department.

Operations Finance: As the name implies, the employees of this department are

associated with the financial activities of the operations department.

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4.2.2 Human Resource Strategy

“To be the benchmark organization in Pakistan within the next two years; an organization

that provides outstanding value proposition to the best talent in the country be it careers,

learning, association, and opportunities to contribute.”

Telenor’s Human Resource Department is known by the name of “HUMAN CAPITAL

DIVISION”.

The strategic challenge of building organizational capabilities is a common responsibility

of both managers and HR professionals. Whereas, People Excellence Department

performs the operations of HCD and look after the HR function in locations other than

Islamabad.

HR professionals are organized on a corporate and a local level.

Corporate HR

Corporate HR is responsible for global HR support and processes, and is organized as

follows:

1. Organization and Leadership Capabilities: Strategic responsibility for IVC

(Internal Value Creation - Employee survey) and TLDP (Telenor Leadership

Development Process

2. Global HR Development

3. Compensation and benefits

4. Employee Role

Local HR

Local HR departments serve managers and other employees with Human Resources and

organizational development related topics. They are also in charge of the implementation

and follow up of processes like IVC (Internal Value Creation - Employee survey) and

TLDP (Telenor Leadership Development Process)

HR Services

HR Services is a resource center for personnel administrative services in Telenor for the

Nordic region.

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Managing Career Development

The department activities include assessing competencies, managing career development

system, coaching and training and development.

Managing Employee Relations

The responsibility of this department is to manage workplace relations and manage

human resource and customer service.

Resourcing

The department activities include recruiting, selecting and human resource planning.

4.2.3 Marketing Strategy

“We aim to satisfy consumers’ demands better and more profitably than our competitors.

We strive to be a driving force in creating, simplifying and introducing communication

and content solutions to the marketplace”.

Trade Marketing: All activities related to building consumer relationships are

handled by trade marketing. This department is also responsible for activities

related to merchandizing (banner placement, billboards and hoarding). This

department also deals with offering trade incentives to the suppliers, retailers and

wholesalers.

Brand Marketing: This department deals with the advertisement and promotion

of different packages of Telenor. The brand managers and executives are

accountable for their respective packages.

Marketing Research: Instigated by the Brand or Trade department to explore a

new idea, this department deals with evaluating the new idea in order to establish

the feasibility of this new idea.

4.2.4 Information Technology Strategy

Support services

This department handles all complaints regarding the network structure within the

organization.

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Business application Support

This department deals with providing additional business support related to the

computer and programming applications.

4.3 Compatibility between Structure and Strategy

Telenor plans certain organizational changes with the aim of strengthening its profile as a customer-orientated, innovative company, fully adapted to the telecommunications and IT markets of the future. The focus of the company’s business activities is intensified, giving better defined core areas.

The structure of Telenor fits with its strategy. They have hired the professionals and the right people in their corporate structure. Strategy is based on structure and that’s why they are achieving their goals because of the compatibility between strategy and structure.

They make changes in their strategy time to time according to the changes in the environment and organization needs. But at this time the structure is compatible with the structure.

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5.1 Developing Action Plans

For implementation of strategy, Telenor develops an action plan. A Performa is as follows:

PRODUCT

WHAT HOW WHO WHEN

Implementing Mobile Number Portability

By increasing investment.By increasing budgetary allocation

Joint ventures

Telenor’s CEO

Also chairman of MNP supervisory board

By the end of 2010

Superior network Quality and Coverage

Investing heavily in cell sites

Sharing infrastructure and space with other mobile operators

Telenor By 2009.

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DISTRIBUTION

WHAT HOW WHO WHEN

To make distribution a competitive advantage to reach as many people and to cater to as many cities as possible

High channel loyalty

Increase the distribution channels

Offer fair profitability for channels

Telenor marketing and distribution heads.

As soon as possible by the end of 2011

REPOSITIONING

WHAT HOW WHO WHEN

Telenor design specific packages to appeal to different growing segments

WomenCorporate/ SME’s

Offer discounts cards, entertainment, cooking tips, health tips through SMS.

Remarkably low call rates

Marketing and creative heads of Telenor Pakistan

mid 2010

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PRICING

WHAT HOW WHO WHEN

Low cost leadership

Revamping the value chain and outsourcing high cost producing activities

Marketing heads of Telenor

By the end of 2010

MANAGEMENT

WHAT HOW WHO WHEN

Human resources

Employees at management position

Hiring the competent staff and firing the incompetent staffTough screening criteria Multinational standard salary to be paid.

Telenor Pakistan

As soon as it can be done.

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OPERATIONS

WHAT HOW WHO WHEN

Infrastructure

Sharing

Sharing infrastructure and space with other mobile operators

TelenorMobilinkWaridUfoneZong

Between 2009- 2011

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For evaluation and control, Telenor has set the Key Process Indicators (KPIs). A brief description is given as follows:

KPIs Industry Benchmark

Where are we

Improvement Plan 1

Improvement Plan 2

Network Quality

40 % 55% Increase Cell sites Sharing infrastructure

Relative Cost/ low price

50 % 55% Cut down on unnecessary costs in the value chain

Collaborating with your forward channel allies to reduce their costs

Customer Care

10% 15% Increase the number of Customer Sales Centers.

Enable Complaint registry through sms

Highly efficient Helpline responses. Feedback given within one hour guarantee.

New Product Activity

15% 17% Design packages to cater the needs of different segments e.g. women

 

Brand Loyalty

40% 45% Improve quality standards and provide superior Network Quality

Increase marketing campaigns and get your product on the shelf

Distribution 40% 50% Increase the number of franchises and increase coverage to towns and cities where no cellular services are available

 

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References

www.telenor.com

www.telenor.com.pk

www.google.com

www.wikipedia.com

Interim report January–March 2010

Annual Report 2007, 08, 09

Personal Visit and Interview & discussion at Telenor Office, Islamabad

Internees at telenor

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