Ufone

MANAGEMENT PRINCIPLES

PROJECT:UFONE GSM

By

Moses Oniel David

BBA 2-B

HISTORY OF UFONE

Ufone PTML is a wholly owned subsidiary of PTCL established to operate cellular telephony. The company commenced its operations, under the brand name of Ufone, from Islamabad on January 29, 2001.

MISSION STATEMENT

To become the best cellular communication option available in the country for “u”.

VISION STATEMENT

  In order to evolve with our customers

and to keep pace with your needs, we rejuvenated and revamped our image by changing our visual identity.At Ufone we understand the value of words and the need to communicate effectively and efficiently at all levels of society, which is why our primary focus is on U, our valued customers bring strength to our company.

COMPANY ANALYSIS

1.OPERATIONAL ANALYSIS

When a company wants to compete in innovation, it needs to maximize flexibility. Flexibility is maximized by aggregating work into larger, holistic pieces that are executed by teams of higher wages, high skilled workers. Giving the units their own support systems and decision-making authority to take advantage of local opportunities in regional or specialized product markets also enhances flexibility.

OPERATIONAL ANALYSIS

1. OPERATING PERFORMANCE

Ufone’s operational performance has been very encouraging. Despite the stiff competition in Pakistan telecom market which has led to reduction of prices to bare minimum level, due to its aggressive policies and exercising strict control over expenses the Company managed to improve its revenue and after-tax profit by 87% and 54% respectively, as compared to last year.

COMPANY ANALYSIS

2.FINANCIAL ANALYSIS

Ufone has over the last six and a half years made huge investments in the national economy. PTML has successfully been able to build upon its excellent financial results from the previous year.

FINANCIAL ANALYSIS

1.RATIO ANALYSIS Ufone current ratio in 2006 was 0.30 Asset test ratio in 2006 was 0.31  Ufone debt to equity ration inn 2006 was 0.35 Ufone debt to total assets ration in 2006 was

0.64 Ufone interest covering ratio in 2006 was 16.3 Their receivable turnover ration in 2006 was

07.07 times. Inventory turnover ratio in year 2006 was 18.6

times.  Total assets turnover ratio in year 2006 was

0.32  Net profit margin in 2006 was 28.4% Ufone return on investment in 2006 was 10%

FINANCIAL ANALYSIS

2.FUTURE FINANCIAL PLANS

Ufone has finalized a huge network expansion contract amounting to about USD 550 million, which will enhance the subscribers’ capacity by 10 million. This is the largest ever expansion project of Ufone.

MARKETING ANALYSIS

Today, Ufone is the affordable mobile service option available in the local market with all facilities available at affordable prices.

Right now Ufone commercials are beings aired in 15 different TV dramas.

MARKETING ANALYSIS

MARKETING DEPARTMENT

Their Marketing department consists of following four

units.1. Brand Marketing.2. Value Added Services (VAS).3. International Roaming.4. Marketing Operations.

ENVIRONMENTAL ANALYSIS

The environment of any organization plays a very vital role in bringing out the inner qualities and talents of people.

INDUSTRY & MARKET ANALYSIS

All mobile phone operators in Pakistan have two basic types of connections i.e.

1. Prepaid2. Post paid

ITS COMPETITORS

Following are the competitors of Ufone.

1. Mobilink 

2. Telenor 

3. Waird Telcom 

4. Zong

MARKET SHARES  According the the results of research on market

share of Pakistan’s mobile companies we have following data.

1.Ufone 21%.

2.Mobilink 49%.

3.Telenor 11%.

4.Waird Telecom 14%.

5.Paktel/Zong 5%.

TECHNOLOGY ANALYSIS

Mobile users tend to associate service access and availability with their handset devices rather than their locations or service providers. So as long as they have their device with them customers feel they should be able to use the same services they use at home wherever they are in the world.

TECHNICAL METHODS THAT AFFECT THE INDUSTRY

The choice of technology is important in this

industry because it can provide the operator with product differentiation in a crowded market. Ufone is the technology leader with GSM and GPRS infrastructure.

1. CDMA Technology

2. Innovations

HUMAN RESOURCE DEPARTMENT AT UFONE

There are three Sub units of Human Resource Department at Ufone which are given as following.

1.Training & Development.

2.HR Operations. 

3.Outsource Operation.

GOALS OF UFONE HR DEPARTMENT 

Motives are given as under.

A. Policy initiation and formulation.

B. Advice.

C. Service.

D. Control.

RESPONSIBILITIES OF UFONE HR DEPARTMENT

 1.Employment & recruiting

2.Transfer, Promotion, Layoff

3.Training and Development

4.Compensation Administration

5.Health and Safety

6.Employee relations

7.Benefits and Services

8.Organization Planning

9.Organization Development

10.Human Resource Planning

11.Equal Employment Opportunity

12.Personnel and Behavioral Research

13.Personnel Information Systems

DIRECTIONAL STRATEGY OF UFONE

Ufone is currently following “Internal growth strategy”, as it is the second largest cellular company operating in Pakistan.

FINDINGS (SWOT ANALYSIS)

Strengths

Ufone is a government company and therefore it enjoys a lot of concessions, which the private cellular companies cannot enjoy.

GSM technology. It has a strong brand identity. It has

successfully projected itself as a company meant to serve its people.

Ufone has Wide network. Ufone has a comprehensive promotional

strategy. Ufone has a unified network of franchises.

FINDINGS (SWOT ANALYSIS)

Weakness

1.Ufone being a government organization has relatively less human and financial capital available as compared to its major competitors that are subsidiaries of large multinationals such as Mobilink and Telenor.

2.Customer services provided by Ufone are not according to the requirements of their customers.

3.High Turnover rate.

OPPORTUNITIES

1. They should call in at different universities and offer jobs there for students to give them employment in the organization. They can post their job advertisements on university bulletin boards and also ask the fresh graduates for walk in interviews.

2. The introduction of new technologies in the cellular industry has increased the demand for it along with reducing the operation costs for these companies. 

3. Ufone can develop direct relationship with retailers on large scale through Electronic Voucher Charge.

4.Ufone can further improve its network in order to make more loyal customers.

THREATS

1. Just as Telenor, Ufone’s greatest threat is its competitors especially Telenor and Al-Warid. These companies have introduced new technologies with consumer friendly packages. Ufone will have to devise its defensive strategies tactfully in order to retain its share in the market.

2. Changing technology is also a threat for Ufone because things are changing so frequently in the market with the change in technology. 

CONCLUSION & RECOMMENDATIONS

Improvise The HR Process Shift To Be An Employee Oriented

Company As Well Motivation Have A More Professional Attitude Training Free Of Condition Redesign Of Payroll Process

REFERENCES

1.www.ufone.com.pk

2.www.google.com

3.Ufone Franchies.