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“In the name of ALLAHthe most beneficent &

the most merciful”



MBA HRMSemester autumn 2011

Managementinformation system

Assignment 2



Is a technique to gaincompetitive advantage



Contents;IntroductionCompetitive advantageCompetitive strategy

Practices of

Competitive advantageGaining a competitive advantagePractical studySwot analysis

Conclusion & recommendationsReferences



Introduction;

Competitive advantage is defined as the strategic advantage onebusiness entity has over its rival entities within its competitiveindustry. Achieving competitive advantage strengthens and positionsa business better within the business environment

Competitive advantage;

When a firm is implementing a value creating strategy notsimultaneously being implemented by any current or potentialcompetitors, then we can say the firm has Competitive advantage aAnd when a firm is implementing a value creating strategy notsimultaneously being implemented by any current or potentialcompetitors and when these other firms are unable to duplicate thebenefits of this strategy, then we can say the firm has a sustainedCompetitive advantage. There are two major models that have to beconsidered. The first one is the position or environmental model andthe second one is the resource-based view model.

The Position or Environmental Model:

In order to achieve a Competitive advantage the firm is required tomake a choice about the type of Competitive advantage it seeks toattain and the scope within which it will attain it. Choosing theCompetitive scope or the range of the firm’s activities can play a

powerful role in determining Competitive advantage because it aimsto establish a profitable and sustainable position against the forcesthat determines your industry competition.



Competitive strategy;The Competitive strategy as the

positioning of a company in its Competitive environment.

Begin with understanding your industry.

Focus attention on significant force.

Watch out for industry change.

Either the company can be lucky enough to come upwith something that its rivals cannot copy which is veryrare

The company is improving so fast that its rivals can notcatch up.

Porter shows that there are five Competitive forces which play amajor role in the company success or failure

The entry of new competitors,

The threat of substitutes,

The bargaining power of suppliers,

The bargaining power of buyers, and

The rivalry among the existing competitors.

The collective strength of these five Competitive forces determinesthe ability of firms in an industry to earn on average, a rate of returnon investment in excess of the cost of the capital.Porter also notes that a business can develop a sustainableCompetitive advantage by following two strategies; cost leadership

strategy or differentiations strategy. Following on from his workanalyzing the competitive forces in an industry, Michael Porter suggested four "generic" business strategies that could be adopted inorder to gain competitive advantage. The four strategies relate to theextent to which the scope of businesses' activities are narrow versusbroad and the extent to which a business seeks to differentiate itsproducts.

http://tutor2u.net/business/strategy/porter_five_forces.htm

http://tutor2u.net/business/strategy/porter_five_forces.htm



The four strategies are summarized in the figure below:

The differentiation and cost leadership strategies seek competitiveadvantage in a broad range of market or industry segments. Bycontrast, the differentiation focus and cost focus strategies areadopted in a narrow market or industry.

Strategy – Differentiation;

This strategy involves selecting one or more criteria used by buyersin a market - and then positioning the business uniquely to meetthose criteria. This strategy is usually associated with charging apremium price for the product - often to reflect the higher productioncosts and extra value-added features provided for the consumer.Differentiation is about charging a premium price that more thancovers the additional production costs, and about giving customersclear reasons to prefer the product over other, less differentiatedproducts.



Examples of Differentiation Strategy: Mercedes cars; Bang &Olufsen

Strategy - Cost Leadership;

With this strategy, the objective is to become the lowest-costproducer in the industry. Many (perhaps all) market segments in theindustry are supplied with the emphasis placed minimising costs. If the achieved selling price can at least equal (or near)the average for the market, then the lowest-cost producer will (in theory) enjoy thebest profits. This strategy is usually associated with large-scalebusinesses offering "standard" products with relatively little

differentiation that are perfectly acceptable to the majority of customers. Occasionally, a low-cost leader will also discount itsproduct to maximize sales, particularly if it has a significant costadvantage over the competition and, in doing so, it can further increase its market share.

Examples of Cost Leadership: Nissan; Tesco; Dell Computers

Strategy - Differentiation Focus;

In the differentiation focus strategy, a business aims to differentiatewithin just one or a small number of target market segments. Thespecial customer needs of the segment mean that there areopportunities to provide products that are clearly different fromcompetitors who may be targeting a broader group of customers. Theimportant issue for any business adopting this strategy is to ensurethat customers really do have different needs and wants - in other words that there is a valid basis for differentiation - and that existingcompetitor products are not meeting those needs and wants.

Examples of Differentiation Focus: any successful niche retailers;(e.g. The Perfume Shop); or specialist holiday operator (e.g. Carrier)

Strategy - Cost Focus;

http://www.mercedes.com/

http://tutor2u.net/business/strategy/www.bang-olufsen.com


http://www.nissandriven.com/

http://www.tesco.com/

http://www.dell.com/

http://www.theperfumeshop.com/

http://www.mercedes.com/



http://www.nissandriven.com/

http://www.tesco.com/

http://www.dell.com/

http://www.theperfumeshop.com/



Here a business seeks a lower-cost advantage in just on or a smallnumber of market segments. The product will be basic - perhaps asimilar product to the higher-priced and featured market leader, butacceptable to sufficient consumers. Such products are often called

"me-too's".

Practices of Competitive advantage;

Sixteen practices of Competitive advantage through people

Employment security

Incentive pay

Participation and empowerment Symbolic egalitarianism

Long-term perspective

Selectivity in recruiting

Employee ownership

Teams and job redesign

Wage compression

Measurement of practices

Cross-utilization & cross-training

High wage Information sharing

Training and skill development

Promotion from within

Overarching philosophy

Competitive advantage can best be achieved by seekingimprovement in the management of people in other words, through

better utilization of human resources. From the standpoint of researchers interested in competitive advantage the resource-basedview of the firm provides a framework for examining the rule of human resources in competitive success and forces us to think moreclearly about the quality of the workforce skills at various levels andthe quality of the motivation climate created by strategic human



resource management. The next section will focus on the strategichuman resource management and competitive advantage.

Competitive advantage through JobAnalysis, Job Description and JobEvaluation;

Job Analysis;The job analysis looks at the behavioral needs of a

particular competitive strategy (cost leadership or differentiation) rolepeculiar to the culture and organization of the company. It is likeperforming a Personal Profile Analysis on an imaginary person. Thegoal is to define the ideal individual for the job position from theperspective of the company and the employees that the successfulapplicant will work with. Job analysis is the process of collectinginformation and making judgments about a specific job. From the

stand point of researchers, that competitive advantage only occur when employee’s knowledge, skills and ability can add value to thefirm, are rare, cannot be imitated and are not sustainable. In order totarget employees with the requisite knowledge, skills and ability, the

job has to be carefully defined.

Job Description;The job description is generally used to identify

the responsibilities, the objectives associated with each specific taskand the reward that associated with good performance. In order toaccomplish the employment relationship effectively, work has to bedesigned, programmed, coasted, organized and co-coordinated. Inother words detailed job description, otherwise can be used by anemployee to define what s/he is not prepared to (“that’s not part of my

job” or I’m not paid to do that”).

Job Evaluation;



Once jobs have been analyzed and described, the job evaluationbegan by considering several job factors such as: working conditions,necessary technical KSA (Knowledge, Skills and Ability) andbehavior, salaries and required managerial skills. A rating of each

factor is made on a standard scale, and the total rating points can beused to rank jobs hierarchically. The recruiting and selection modelappendix A can be used in the rating process by using differentcriteria and weights such as the above- mentioned job factors.

Competitive advantage through theGeneric Function of HRM;

The aim of Human Resource Management is seen as theoptimization of human resources value. Researchers suggest three‘generic functions’ of HRM, namely, selection, appraisal and rewardsthat act as independent variables, in a cycle of human resourceinterventions on the dependent variable of performance.

Selection

Security in employment and reliance on the work force for competitivesuccess mean that one must be careful to choose the right people inthe right way. The question then is what does the firm want?

1. Employees with more competencies2. Employees who self-develop without the need for company

training3. Employees who have more ideas that are implemented4. Employees that have a lower error rate, number of discipline

incidents and Absenteeism rate5. Employees that have a higher customer satisfaction, higher

performance appraisal scores, bonus rates and promotion rates

6. Employees that require "low maintenance" from managers7. Employees that stays longer before quitting8. Employees who produce more return for every dollar of salary

paid to them

Selection can be regarded as the primary mechanism in enhancingthe organization capabilities. The individual behavior and learning



ability can optimize the organization’s situation in its environment.The goal of selecting program is to ensure that the firm is hiring onlythe highest ability individual. Then the firm must be able to identifyhigh ability individuals and also the firm must be able to attract and

retain those applicants deemed to be of the highest ability. But in anincreasingly competitive market, it can be almost as hard to attractthe right staff as to attract the right customers.

Performance Appraisal and Performance Management

Performance appraisal is defined as a process by which anorganization measures and evaluates an individual employee’s

behavior and accomplishments for a finite time period.Measuring/reviewing and evaluating the performance of employees isarguably one of the most important tasks for any manager, sincecritical decisions rely on the accurate assessment of an employee’sbehavior. Historically, organizations tended to develop a performanceappraisal instrument and forms administrated on an annual basis.Even though managers have been repeatedly told that performancereview should be more than just an annual event, they do not alwaysdo it. Employees are often not coached and counseled throughout the

year, so when review time arrives, they do not know what to expect.This leads only to confusion and resentment. The question then ishow performance appraisal can be done better and more effectively?The answer may be in the approach to managing known asperformance management. Performance Management has threebasic components: planning, managing and appraising performance

Rewards

Rewards, both financial and otherwise, send a powerful message toemployees of an organization as to what kind of organizationmanagement seeks to create and maintain, and what kind of behavior and attitudes management seeks from its employees. According to areport by the American Compensation Associations, August 1996.“When it comes to reinforcing team behavior, the reward system is



one of the most effective and influential tools available to theorganization”

What is the purpose of reward systems?

Reward system is intended to motivate certain performance. Butunder what conditions will rewards actually motivate employees? Tobe useful, rewards must be seen as timely and tied to effective

performance.1. Employees must believe effective performance will lead to certainrewards. For example attaining certain results will lead to a bonus or approval from others.2. Employees must feel that the rewards offered are attractive. Someemployees may desire promotions because they seek power, butothers want a fringe benefit, such as a pension, because they areolder and want retirement security.3. Employees must believe a certain level of individual effort will lead

to achieving the Corporation’s standards of performance.

As indicated, motivation to exert effort is triggered by the prospect of desired rewards: money or recognition which may take the form of annual award ceremonies and expensive accommodation andentertainment, promotion, and so forth.

Competitive advantage through people;

The core strength of any organization comes from its employees. Todevelop and strengthen they will lead to a solid foundation for theorganization’s future. Good HRM does not happen by accident. Ittakes strong executive leadership to bring about positive patterns of employment relationships. The manager must continue to develophimself and also have a commitment to help his employees develop



their full potential. The employees depend on the managers, and theorganization depends on them for its success. Many researchersbelieve that for organizations to maintain a competitive advantagethey must focus on enhancing performance through a process of

continual learning. Also they believe that by focusing on sound andeffective leadership skills at every level can provide the catalyst tomotivate individuals, teams and human networks to achieve peakperformance.

Top managers RequirementThe manager takes responsibility for planning, monitoring, andcontrolling the business performance. Usual first tasks are to set thegoals and objectives to prepare a preliminary budget, schedule and

select the group members, setting a training program if required,ensure required supplies are available and generally try to dowhatever is needed to maximize the group performance in order tokeep the business moving. To do this the manager has to havecertain skills and characteristics.

Personal characteristics:The personal characteristics are necessary to manage the group.Such personal attributes include aggressiveness, confidence, poise,

decisiveness, resolution, toughness, integrity, versatility and quickthinking.Skills:

The most important skills for successful managers are:a. Communication skills i.e. being a good communicator is

an essential management skill.b. Organizational skills are vital to good management.

Characteristics included in this skill are planning and goal-setting abilities, along with the ability to be analytical.

c. Group or team building skills involve developing

empathetic relationships with other members of thegroup, being sensitive to the needs of others, motivatingpeople and building a strong sense of team spirit. Thebest team leaders use a lot of “we” statements indescribing the relevant subjects to the project.

2. Leadership skills- Several different attributes and behaviors canbe catalogued under leadership skills. These included setting a



good example, seeing the big picture, being enthusiastic,having a positive outlook, taking initiative, and trusting people

a. Coping Skills- Successful managers require coping or stress-management skills. Respondents indicated that

both flexibility and creativity were involved in effectivelycoping with change, as were patience and persistence.b. Technical skills- Successful managers require a good

background in their field.

Competitive advantage in practice

1. Goals/objectivesThis contains a detailed statement of the general goals andtheir relationship to the company’s objectives. When the projectgoals are not clear, it is difficult to initiate/formulate the planningefficiently. The lack of planning contributes directly to unrealisticresource allocations and schedules. Notably the key personnelshould be actively involved in defining the specific work to beperformed, the timing, the resources, the responsibilities, and

positive participation in the pursuit of the goal /objectives.

2. RecruitmentThe argument is how the management can recruit the rightemployees.Most of management uses a detailed job analysis and jobdescription and some of them use one of the selection modelsto insure they are employing the right employees.

3. Commitment

Commitment is defined by Kline & Peters as a process by whichpeople become psychologically bound to their action in such a waythat feel a personal obligation to follow through on the implicationsof those actions. Obtain commitment from all key personnelregarding the problem plan, its measures and results. Thiscommitment can be enhanced and maintained by highparticipation of employees in definition of results, measuring



criteria and schedules. It is through this involvement that theemployee gain a detailed understanding of the work to beperformed, a feeling of importance, develops professional interestsin the work and desires to succeed, and eventually makes a firm

commitment toward the specific task and the overall projectobjectives.

4. Tracking/coachingDefine and implement a proper tracking/coaching system whichcaptures and processes work performance data conveniently

summarized for reviews and management actions.

5. MeasurabilityAssure accurate measurements of performance data,especially technical progress against schedule and budget.

6. Signing - OnThe process of signing on employees during the initial phasesof the job or each task seems to be very important to a proper

understanding of the task objectives, the specific task andpersonal commitment.

7. Interesting WorkThe managers should try to accommodate the professionalinterests and desires of supporting employees when negotiatingtheir tasks. The effectiveness of the work depends on themanager’s ability to provide professionally stimulating andinteresting work. This leads to increase involvement, better communications, lower conflict, and stronger commitment.

8. CommunicationGood communication is essential for effective work. It is theresponsibility of the task leaders and ultimately the manager toprovide the appropriate communication tools, techniques, andsystems. These tools are not the status meeting, reviews,



schedules, and reporting systems, but also the objectivestatements, specifications.

9. Minimize Threats

Managers must foster a work environment that is low onpersonal conflict, power struggles, surprises, and unrealisticdemands. An atmosphere of mutual trust is necessary for thepersonnel to communicate problems and concerns candidlyand at an early point in time.

10. Design a Personal Appraisal and Reward SystemThis should be consistent with the responsibilities of theemployee and implies treating employees with respect,rewarding them fairly or even generously and, perhaps, seeking

to elicit responsibility and trust.

“To have a competitive advantage, you mustcreate an edge over your competitors. In theaggressive business world, especially in today’s

economy, every advantage counts to establishyour business in the top of your industry. Gaininga competitive advantage takes strategic planningand extensive research”

1. Analyze your target market and identify your competition

Your target market is “a specific group of consumers at which acompany aims its products and services” (Entrepreneur ). A targetmarket is distinguished by socioeconomic, demographic, andcommon characteristics or needs that make them the best audienceto focus on selling to. To uncover your target market, answer thefollowing simple questions: What am I selling? Who will most likelybuy or consume my product or service?

http://www.entrepreneur.com/encyclopedia/term/82498.html

http://www.entrepreneur.com/encyclopedia/term/82498.html



Before you can crush your competition, you need to know who theyare. Find out which businesses are going after your same targetmarket. How do they differentiate themselves from other companies

in the industry? Where are they located? To find this information,business directories can be used to search free company profiles.Information included in the company profiles are company overview,contact information, location, key facts, employees, and companypayment rating.

2. Learn from your competition and your customers;

Don’t be afraid of your competition, but rather use them as a learningtool and assess their business model. Learn your competitors’strengths and weaknesses – imitate their strengths, and use their weaknesses to your advantage. Use companies that specialize inbusiness information, such as Coretta, to construct and analyze acompetitive landscape of the target market. The business informationyou learn from your rivals will help you develop the competitive edgeyou need to surpass them in your industry.

3. Create an “Economic Moat”

Take advantage of barriers to entry into the market, using them todissuade competitors from challenging your marketing share. Insome cases, an established company’s ability to manipulate hurdlesto enter and compete in its market becomes an effective tool againstnew competition, further entrenching the business and preserving itsprofit potential for the foreseeable future.

4. Stay on the cutting edge

Once you’ve gained a competitive advantage, your work is far fromcomplete. To be successful, you will need to continuously maintainyour competitive advantage. After all, your competitors are not goingto sit back and allow you to steal their market share. You canmaintain your competitive advantage by predicting future trends in

http://start.cortera.com/






your industry, constantly researching and monitoring your competitors, and adapting to your customer’s wants and needs.

5. Use Business Information ResourcesThe information revolution is here – take advantage of it! It creates a

competitive advantage by providing companies with new ways tooutperform their rivals. Knowledge is power, and businessinformation companies provide just that. Reliable businessinformation companies include:

Practical study

Telenor



Telenor Mobile

CommunicationCommunication

Telenor

TelecomTelecom

Telenor BroadbandService

Telenor

InternetInternet

Telenor MediaBravida EDB

Introduction;

Telenor at a GlanceTelenor Group is one of the world’s major mobile operators with 120million mobile subscriptions. Telenor is a world-class provider of mobile communications services. Telenor mobile operations covering12 countries and broadcast services covering the Nordic region.

The Telenor brand expresses its ambition and our logo is a symbol of movement and change – our continuous evolution to enable people tocommunicate better .



History;For over 150 years, telecommunications has played a vital part in thedevelopment of modern Norwegian society. As the current provider,Telenor has been the driving force in the development of a highlysophisticated home market and is now one of the largest mobileoperators worldwide.

Telenor Pakistan is a Pakistani GSM cellular service provider, and isa subsidiary of Telenor, Norway. Telenor Pakistan is owned byTelenor AS and adds on to its operations in Asia together withThailand, Malaysia and Bangladesh. Telenor ASA is an internationalprovider of high quality telecommunications, data and media



communication services. It ranks as world’s 7th largest mobileoperator with a total of 164 million subscribers in its mobileoperations. Telenor Pakistan launched its operations in March 2005as the single largest direct European investment in Pakistan, setting

precedence for further foreign investments in the telecom sector. Thecompany has crossed many milestones and grown in a number of directions, making Telenor Pakistan a leading telecom operator of thecountry.Now Telenor is spreading across Pakistan, creating 2,500 direct and25,000-plus indirect employment opportunities. Telenor is a networkof 23 company-owned sales and service centers, more than 200franchisees and some 100,000 retail outlets.

VISION

Telenor exists to help

customers get the full

benefit of communications

services in their daily

lives. We're here to help.



MISSION

“Telenor 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”



PRODUCTS & SERVICES

Products:

Telenor provide products of two types

• Prepaid

• Postpaid

Prepaid packages are

• Dejuice

• Talkshawk

Postpaid offers are

• Persona individual

• Persona karobar

Services:

The Telenor Group provides a wide range of innovative services that

are available throughout the world. Here is a selection.

Mobile Fun



Following are the mobile fun service of Telenor.

Mobile Sports

And he scores!!! You just got a text messagealerting you about a sportive highlight. Luckily you

don’t have to wait until you get home to watch that

winning moment – you can watch it directly on your

mobile.

Mobile Music

Right now there are 1 million songs ready to

download to your mobile. You can share these digital

rights management-free songs with your friends and

family or transfer them to your mobile phone, mp3 player and PC.

Share that funky music!

Mobile TV

Keep your favorite TV shows available in your pocket andwatch them anytime, anywhere. You can easily access

live TV channels on the move so you don’t have to miss

out on any of the action. Keep yourself updated on news,

sports, entertainment and more, directly on your own mobile phone.

Mobile Communities

Get out and about, and stay connected and in

touch with your friends. With Telenor you canaccess communities such as Windows Live MSN

and Facebook on your mobile and keep your friends close anytime,

anywhere.

Mobile Interaction



Following are mobile interaction services providing by Telenor.

Community Information Centers

500 Community Information Centers (CICs) offer

high speed Internet access to rural areas in

Bangladesh, where the nearest Internet facilities

would otherwise be at least 20-30 miles away. The

service was set up by Telenor's Bangladeshi mobile operator

Grameenphone.

ORGANIZATIONAL STRUCTURE



COMPETITIVE ADVANTAGEIn order to gain a competitive advantage one has to aligncompetences and strategies. Highly motivated employees andflexible culture enables them to achieve an edge over competitors.

Core CompetenciesThe Human Resource at Telenor Pakistan is their core competency.The reason is that the employees create a culture and all theachievements of Telenor are attributed to its flexible culture. It isnecessary to motivate and retain this asset of the organization. For this purpose, training and compensation is provided to employeesalong with other motivational techniques.

Human Resource Strategies:TrainingThe methods of training differ from function to function. On-the-jobtraining is required in the Customer Relationship Department (CRD)and similar system training in the IT Department. ManagementTraining Programs combine experiential learning with theory. Leadersare chosen according to the following role expectations:

Compensation

The core compensation includes:

Base salary

Bonus/commission

Long-term incentive plans



Employee MotivationUnderperforming managers are encouraged through coaching andcounseling by their respective directors or the director of PeopleExcellence. The turnover is not high as compared to that of the

industry. There is no defined employee exchange program.Employees performing exceptionally well are taken up to work in theTelenor Group.Relocations are common in the organization: employees aretransferred from People Excellence to Finance or from Procurementto Customer Relations. Investment per employee is placed at thehigher end of the industry.

PERFORMANCE APPRAISAL SYSTEM:Policies at Telenor for Performance AppraisalObjectives:

The purpose of this policy is to provide a formal reviewprogram to evaluate work performance and to promotecommunication and discussion of job performance. The intent of these discussions should be to review current job performance andresponsibilities, set goals, and discuss future opportunities withreference to past performance at Telenor.

The Objectives of the Performance Review Program are:

To measure work performance

To motivate and assist employees in improving their

performance and achieving their personal/professional career

goals

To identify employees with high potential for advancement

To provide objective information for making decisions on salaryincreases, promotions, bonus and transfers.

To identify employees training and development

To provide a solid path for career planning for each individual



COMPETITIONAs at 30 June 2008, Telenor Pakistan had a market share of approximately 20%. In addition to Telenor Pakistan, there are fiveother mobile operators in Pakistan: Mobilink, Ufone, Warid, Zong

(formerly Paktel) and Instaphone. According to data provided by thePakistan Telecommunication Authority (the PTA), as at 30 June 2008Mobilink was the largest cellular mobile operator in Pakistan with amarket share of approximately 37%, Ufone had a market share of approximately 20%, Warid had a market share of approximately 17%,Zong had a market share of approximately 4%, and Instaphone had amarket share of approximately 0.4%.

Major Competitor

Parameters Mobilink TelenorProduct Life Cycle Maturity Growth

Market share % 37% 20%

Coverage 900 cities 1100 cities

Product Portfolio Jazz Octane,MobilinkIndigo,Ladies First,

TalkShawk, TelenorAzadi, Djuice

Customer Base 17.2 million 3.6 million

Marketing Operations Excellent Good

BCG MATRIXBoston Consulting Group is used to help corporations with analyzingtheir business units or product lines. This helps the company allocateresources and is used as an analytical tool in brand marketing, productmanagement, strategic management, and portfolio analysis. This BCG matrix is with respect to the competition that exists for Telenor in the telecom industry. This includes the following mobileoperators:

• Mobilink

• Ufone

• Warid

• Zong



Swot

analysis



Strengths First one to bring the concept of "Mobile TV" in Pakistan.

Customized packages available for every market segment e.g.

Djuice for price conscious class, smart calls for routine users,

Telenor persona for upper middle and elite class.

State of art technology e.g. they are up with the latest

networking underground fiber optical network.

Widest network coverage after Mobilink.

The first ones to provide free roaming facility during hajj

program.

Telenor is operating in more than 200 destinations with more

than 1.7 subscribers all over the Pakistan.

Weaknesses Pakistan has no institute that provides formal education in

this field regarding networking and other core technical

competencies so they are required to have a major chunk of

their employees trained from foreign institutions.

Poor call center performance. Customer service center is not

up to the commitment and most of the customers' calls are

not served.

Comparatively high prices in Telenor persona (postpaid) as

compared to Warid and Ufone.



Poor visual quality of Telenor mobile TV, as there is a

buffering problem and stills are received instead of the proper

videos Franchise distribution system is not up to the mark.

This is the problem with almost every telecom company in

Pakistan. Lack quality in record keeping at franchises and

other distribution networks.

Opportunities Participation within the growing industry.

Ample opportunities are available in the telecom sector

and still many of the areas are not being covered.

Increasing market share

Product line expansion.

Cost discount strategies.

Product innovation.

To become customer size specialist.

Constant repositioning.

Threats Monopoly of PTA, at any time PTA can alter the facilities of

telecom sector.

Immense cut-throat competition operating in kinked demand

oligopoly.

Implementation of WTO will result in open & competitive

pricing even in the service sector exclusively in telecom.



There is an imbalance between prices of inputs & outputs.

Conclusion;

Structure of Telenor is Organic and functional structure.

Decision-making is highly centralized and empowerment is not

appreciated as much but to some extent.

Telenor has adopted formal rules and procedures whereas some of

work is done informal between departments.

The important success factor for Telenor is differentiation.

Because the environment is becoming tougher with each Passingday so to enhance their competitiveness & profitability it isproviding excellent service, giving top priority to meeting customer requirements and charge low operating cost from their customer

Recommendations;Dealing with

challenges requires a coordinated effort so that the company is able tosustain itself in the ever-changing competitive environment andcontinues to provide superior value to the customers. The grouprecommends the following:



Telenor as described in the report has a functional structure

with well-defined department. The coordination and

communication is enhanced by the cross functional teams. After

viewing the functioning of the organization it is recommended

that the organization could have a Hybrid Structure, between

the characteristics of functional and horizontal structures.

Horizontal model offered the best chance to gain a faster, more

efficient approach to a customer service.

As the organization's structure is highly Functional, and the

Environment is currently stable, organization is suited well to

the environment. But organization should also focus on the

changing trends in the Environment, and make the structure

flexible enough for any sudden changes.

The organic structure is being used in the Telenor Pakistan but

organization is needed to move to Mechanistic structure for the

better control of the employees for the better use of rules,

policies and procedures.

mis assignment

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