Professional Documents
Culture Documents
Final Project
Final Project
Final Project
Submitted by:
Group # 12
BBA-2K8 (A)
SUMMARY
Zong is one of the leading cellular organizations in Pakistan. Zong or officially known as
China Mobile Pakistan is a subsidiary of China Mobile. China Mobile is one of the world’s
biggest cellular organizations. Zong lies in the industry of telecommunication of Pakistan,
with the competitors like Mobilink U-fone and Telenor. China Mobile came through
acquisition of a license from Millicom to operate a GSM network in Pakistan. Zong has
invested around US$1.3 billion. Zong’s management is facing a lot of problems as they are
using the management methods of China mobile. CMPak is geared to offer neatly packaged
VAS products that will benefit the individuals, corporate as well as small businesses. Led by
a team of professionals from the field of cellular communication, CMPak is determined to
make its mark in the Pakistani market and to change the way people communicate. China
Mobile Pakistan has the license to offer and operate voice, data and all value added services
in the entire country. One of the fastest growing cellular markets in the world, Pakistan is a
key region that is likely to offer expansion opportunities as well the chance to make a
difference in the lives of a growing clientele that is demanding and understands and
appreciates better quality and service standards.
Contents
ACKNOWLEGEMENT...................................................................................................................3
SUMMARY........................................................................................................................................4
INTRODUCTION TO THE INDUSTRY:...........................................................................................................7
Cellular Mobile Industry:............................................................................7
INTRODUCTION TO THE COMPANY:.........................................................................................................9
ZONG..............................................................................................................9
CMPak:............................................................................................................9
CMCC:..........................................................................................................10
INTRODUCTION TO MANAGEMENT.....................................................................................11
GOALS AND OBJECTIVES...............................................................................12
HIERARCHY OF THE ORGANIZATION:......................................................................................................13
MANAGER............................................................................................................................................15
TYPES OF MANAGERS:............................................................................................15
WHAT DO MANAGERS DO:......................................................................................16
WHY ZONG IS AN ORGANIZATION:........................................................................................................17
Challenges Impacting the Manager’s Job:.....................................................18
ORGANIZATIONAL CULTURE AND ENVIRONMENT.......................................................19
ENVIRONMENTAL FACTORS...........................................................................20
ECONOMIC FACTORS.....................................................................................22
POLITICAL FACTORS......................................................................................22
TECHNOLOGICAL FACTORS...........................................................................23
STAKEHOLDER RELATIONSHIP MANAGEMENT.........................................................................................25
DECISION MAKING.....................................................................................................................26
DECISION MAKING PROCESS:....................................................................................26
DECISIONS MAKING CONDITIONS:...............................................................................26
DECISION MAKING STYLE:.......................................................................................26
HUMAN RESURCE DEPARTMENTAT ZONG........................................................................27
STRATEGIC HUMAN RESOURCE MANAGEMENT AT ZONG:............................28
HR Department Hierarchy Chart...................................................................29
RECRUITMENT AND SELECTION PROCESS:......................................................................29
1. RECRUITMENT POLICY:....................................................................................29
2. PROCEDURE:.................................................................................................30
3. RULES:.......................................................................................................30
TRAINING......................................................................................................................................31
REWARD SYSTEM:................................................................................................................................32
FOUNDATIONS OF PLANNING.................................................................................................34
Milestone of the organization........................................................................34
Types of different organizational plans followed by the organization...........34
Goal setting theory of the organization.........................................................35
PERFORMANCE APPRAISAL:.......................................................................................35
STRATEGIC MANAGEMENT..................................................................................................38
MISSION STATEMENT:.............................................................................................38
SWOT ANALYSIS:...............................................................................................39
CORPORATE PORTFOLIO ANALYSIS:..............................................................................43
COMPETITIVE STRATEGIES:.......................................................................................44
ORGANIZATIONAL COMMUNICATION...............................................................................46
FUNCTIONS OF COMMUNICATION:................................................................46
THE COMMUNICATION PROCESS:..................................................................47
FORMAL COMMUNICATION:.......................................................................................48
DIRECTION OF COMMUNICATION:................................................................................48
TYPES OF COMMUNICATION NETWORKS.........................................................................49
INTERPERSONAL COMMUNICATION:..............................................................50
OBJECTIVES OF COMMUNICATION.................................................................50
RECOMMENDATIONS................................................................................................................52
MANAGEMENT:.....................................................................................................52
CULTURE AND ENVIRONMENT:....................................................................................52
DECISION MAKING:...............................................................................................52
PLANNING:.........................................................................................................53
STRATEGIC MANAGEMENT:.......................................................................................53
ORGANIZATIONAL COMMUNICATION:.............................................................................54
REFERENCES:...............................................................................................................................55
References:
INTRODUCTION TO THE INDUSTRY:
Traditionally, telecommunications had been regarded as a relatively straightforward public
utility. Economics of scale, political and military sensitivities, and large externalities made
this typical public service believe itself to be a natural monopoly. In Pakistan, as in most
developing countries, telecommunications services were run by government agencies,
Pakistan Telephone Corporation (PTC). Unfortunately these state monopolies generally fell
short for of meeting needs, as evidence by a persistent large unmet demand for telephone
connections, call traffic congestion and the virtual absence of modern business services.
The telecom infrastructure is improving dramatically with foreign and domestic investments
into fixed-line and mobile networks; fiber systems are being constructed throughout the
country to aid in network growth. Major businesses have established their own private
systems; since 1988, the government has promoted investment in the national
telecommunications system on a priority basis, significantly increasing network capacity.
There are currently 7 million landline subscribers in the country.
MOBILIINK
U-FONE
Ufone is a Cellular Service Provider founded in 2001 It is also a subsidiary firm of PTCL As
of 2008; Ufone is the second largest telecommunication company in Pakistan. In recent years
the company has endured significant improvement in services to almost 4,745 locations
throughout the country.
TELENOR
Telenor (OSE: TEL, NASDAQ: TELN) is the incumbent telecommunications company in
Norway, with headquarters located at Fornebu, close to Oslo. Today, Telenor is mostly an
international wireless carrier with operations in Scandinavia, Eastern Europe and Asia. In
addition, it has extensive broadband and TV distribution operations in four Nordic Countries.
WARID
ZONG
ZONG is the first International brand of China Mobile being launched in Pakistan. The
company is often cited as China Mobile (Pakistan). It is meant to empower and liberate the
people of Pakistan in every nook and corner of the country. It will become a part of their
hearts, their minds and bring about a change in their lives that every one desired but few
thought would be possible. The core essence of ZONG is to allow people to communicate at
will, without worrying about tariffs, network coverage, capacity issues or congestion. ZONG
will be supported by ground breaking communications, trend setting customer service and an
unmatched product offering which will redefine rules of the game and establish ZONG as a
serious contender for the number one spot. ZONG would offer its customers with
entertaining & innovative value added services and will empower them by giving a wide
variety of products, services & content to choose from. We are privileged to be the
pioneering country introducing this brand with others to follow. And God willing, together
we will also make ZONG a success story for others to try and replicate.
CMPak:
ZONG was first named as China Mobile Pakistan. CMPak is a 100% subsidiary of China
Mobile. The pioneering overseas set up of China Mobile came through acquisition of a
license from Millicom to operate a GSM network in Pakistan. So far CMPak has invested
more than US$ 700 million in the telecom sector in Pakistan and an additional US$ 800
million will be invested till the end of year 2008.
With ambitious plans to cater to the fastest growing Pakistani market and to win over the ever
demanding Pakistani customer, it will be offering unprecedented coverage, voice and data
services as well as a wide range of tariff options to choose from. CMPak’s edge comes from
the experience and expertise of running the world's largest telecom service and the
commitment they make to setting quality and customer relations standards.
CMPak is geared to offer neatly packaged VAS products that will benefit the individuals,
corporate as well as small businesses. Led by a team of professionals from the field of
cellular communication, CMPak is determined to make its mark in the Pakistani market and
to change the way people communicate
CMCC:
China Mobile is the world's largest telecom operator. Having a customer base of over 300
million customers, its network routes 700 million text messages every day and handles 250
million calls every hour.
China Mobile is perhaps the only cellular network that provides uninterrupted, reliable
coverage through tunnels, on highways, inside sky scrapper elevators as well on top of Mount
Everest.
One of the unique features of China Mobile servicing excellence is to customize its products,
services and tariffs to suit the individual needs of its huge subscriber base. There are
hundreds of payment/tariff options to choose from according to one's usage pattern,
budgetary limitations and nature of use.
China Mobile's first overseas subsidiary, China Mobile Pakistan has the license to offer and
operate voice, data and all value added services in the entire country. One of the fastest
growing cellular markets in the world, Pakistan is a key region that is likely to offer
expansion opportunities as well the chance to make a difference in the lives of a growing
clientele that is demanding and understands and appreciates better quality and service
standards.
INTRODUCTION TO MANAGEMENT
MISSION:
“To be a superior communication service company in Pakistan who provides the best value to
its customers, employees, business partners and shareholders.”
VISION:
VALUES:
Zong had a focus on internal growth. All this is evident from the fact that since the
deregulation of the mobile service industry of Pakistan, Zong has undertaken various efforts
to ensure that it changes its stance from concentrating on its existing market to growing its
market presence.
To expand its international roaming Service scope in more countries including Vietnam,
Germany, Bangladesh, Ukraine, Iran, Venezuela, Nigeria, South Africa, Ethiopia, Uganda,
Sudan, Bahrain, and Caribbean Islands. Roaming agreements signed with 100 countries
around the world to have true roaming service operational in 151 operators of the world.
To keep improving their existing products by adding new attractive features to their products
such as VAS’s, GPRS, WAP (Generation 3).
“To keep up with the competition and to retain and increase its market share”. This
transition is obvious in zong’s repositioning itself and hitting the market with a new face
with the catchphrase “say it all”.
All over the world china mobile have more than 100,000 employees. In Pakistan china
mobile is having more than 5000 employees serving in Zong.
ORGANIZATION CHART
SUB DEPARTMENT:
MANAGER
Someone who works with and through other people by coordinating their
work activities in order to accomplish organizational goals.
TYPES OF MANAGERS:
Managers are distinguished into three broad Categories.
1. First-line Managers
Are at the lowest level of management and manage the work of non-managerial
employees
2. Middle Managers
3. Top Managers
Are responsible for making organization-wide decisions and establishing plans and goals that
affect the entire organization
Top
M a n a g e rs
M id d le M a n a g e r s
F ir s t - L in e M a n a g e r s
N o n m a n a g e r ia l E m p lo y e e s
➢ Planning
➢ Organizing
➢ Leading
At Zong Mangers perform all the above task as to perform fully for the organization.below
given table is an example of how each function is performed.
MANAGEMENT SKILLS:
A managers job is varied and complex. Mangers need different skill at different level to
perform a certain job and task associated with mangers. Mangers need three different types of
skills.
Zong is an Organization as it fulfills all the basic conditions and criteria of an organization.
Distinct Deliberate
Purpose Structure
People
While going across the globe, different languages, religions, races and geography.
Multinational companies have to face cultural realities.
POPULATION:
RELIGION:
As Pakistan is an Islamic
country and people are very
strict in case of Islam anything
against the philosophy of
Islam on either print or
electronic media are treated as
against Pakistan.
LANGUAGE:
Official language of Pakistan is English, other languages are
Punjabi 48%
Urdu 20%
Pashto 08%
Sairaki 10%
Sindhi 12%
Balochi 03%
LITERACY RATE:
LOCALIZATION PRACTICES:
OMNIPOTENT VIEW:
The view that manger’s are directly responsible for an organization’s success or failure. The
omnipotent is consistent with the stereotypical picture of take-charge business executive who
can overcome any obstacle in carrying out the organization’s goals.
ENVIRONMENTAL FACTORS
DIRECT COMPETITORS:
Telenor
Warid
U Fone
Mobilink
INDIRECT OR SUBSTITUTE COMPETITORS:
SUPPLIERS
ECONOMIC FACTORS
CONTRIBUTION TO GDP:
Direct contribution of Telecom Sector to GDP increased from almost negligible to more than
2% in last year. 5% if indirect contribution is also added it becomes 7%.
INFLUX OF FDI:
From negligible Foreign Direct Investment (FDI) a few years back, the telecom sector has
attracted foreign investment on license and infrastructure of over US$ 8 billion and another
US$ 4 billion is expected on roll-out by 2010. As a percentage of total FDI, Telecom Sector
contributed more than 54% in 2005-06 and more than 35% in 2006-07. Till 2008 it is
decreased up to 32.5%
SECTOR REVENUES:
Revenues of Telecom Industry increased from Rs.115 billion to Rs.235 billion in last three
years and expected to increase @20-25%.
GST/ CED:
contribution of Telecom sector to GST/ CED Rs. 36,282 million per annum (2007-08)– Total
GDP receipts from telecom sector through tax, deposits & other sources is more than Rs. 100
billion (2007-08)
POLITICAL FACTORS
DE-REGULATION OF TELECOMMUNICATION SECTOR:
For last few years Environment has been investor friendly due to the de-regulation of the
telecommunication sector. But it depends upon the stability of the political environment.
Political environment of Pakistan is unstable in the current situation and country is suffering
a lot at the economic front. Former government provided great opportunities for foreign
investors to bring their FDI.But due to the internal crises and security issues FDI in telecom
sector is getting dented some major issues are
Judiciary crises
Pakistan’s role in War on terror•
Suicide attacks
Energy crises
Food crises
Money laundering case
Bilateral issues (India) Government has to deal with these crises so it is hard for them to
concentrate on a specific department or industry. Up front situation is that Pakistan is
looking for its survival.
TECHNOLOGICAL FACTORS
GENERATION 2 AND 2.5:
WAP
GPRS
EDGE
CDMA1x
GENERATION 3:
WLL
Wi-Fi / Wireless LAN
(UMTS)
International Business involvement PHASE: China Mobile (parent company) is in the stage
of “international marketing” in which companies are fully committed and involved in
international marketing activities but as far as its subsidiary ZONG is concerned it is in the
stage of “no direct foreign marketing” in which companies does not cultivate customers
outside the national boundaries.
CULTURAL BORROWING:
The concept of Friend and Family no greater than 10 was first introduced by Zong in
Pakistan.
The present culture of Pakistan welcomed the new concept of telecommunication and instead
of resistance Zong was welcome by the Pakistani government and public. But Zong has to
customize its products according to culture just like the introduction of different packages.
Free package is in one of the major examples.
IMPERATIVES:
There are certain cultural imperatives that must be kept in focus by Zong just like the
adoption of local languages. Even in the Zong multi language call center is working there are
separate sections for Pashto and Urdu speaking persons.
ADIAPHOROUS:
RAMZAN packages
EID offerings
Introduction of certain value added services such as valentine tunes and cards and
caller tunes.
Coverage of different cultural events such as EID, RAMAZAN, BASANT etc.
Any constituencies that are affected by the organization’s decisions and actions include
internal and external groups can influence the organization
Zong has also stakeholders that have a great influence on the management. Relationship with
stakeholder’s management is important as more secure the relationship, the more influence
managers will have over organizational outcomes and it’s the “right” thing to do.
Also by approach to a stakeholder group based on the importance of the group and the
degree of environmental uncertainty
DECISION MAKING
Decision is a choice between two or more alternatives.
i. Identification of problem
ii. Identification of Decision Criteria
iii. Allocation of Weights to Criteria
iv. Development of Alternatives
v. Analysis of Alternative
vi. Selection of Alternative
vii. Implementation of the Alternative
viii.Evaluation of Decision Effectiveness
a) certainty
b) risk
c) uncertainty
Zong Managers faced almost of these conditions but the most dominated one in their
decisions regarding any product launch or service introduced is risk along side with
uncertainty.
DECISION MAKING STYLE:
Managers’ decision-making styles differ along two dimensions. First is an individual’s way
of thinking. As some of as has more rational thought than others, while tends to be creative.
The other dimension is an Individual’s tolerance for ambiguity. Some of mangers have high
tolerance level and are able to process many thoughts at the same time. When we diagram
two dimensions four decision making styles are evident.
Hig
h
Analytic Conceptual
Ambiguity
Tolerance
for
Directive
Lo
Behavioral
w
Way of thinking
Ration Intuitiv
al e
Way of thinking
1. Directive
2. Analytical
3. Conceptual
4. Behavioral
Zong managers used Directive and conceptual Styles for decision making in their work.
A complete example of decision making in zong is given in the form of human resource
department (HRM).
Employees in the company are largely committed to their organization and have shown
progress in the company. Employees are satisfied with the HR department of Zong GSM
Company.
There are several functions performed by HR department which are given below:
Planning
Recruitment
Selection
✔ Formal Interview
✔ Intelligence tests
Research and Development
Training
Compensation
Occupational Health and Safety measures
Career Planning and Development
Performance Appraisal System
In order to make its human resource productive and efficient, Zong aggressively work in
developing its human resource capital through international and local trainings as well as
structured employee ‘well-being’ programs, making it one of the most sought after
companies to work for in Pakistan. Zong conducts several training program in order to
improve the competencies and skills of employees.
STRATEGIC HUMAN RESOURCE MANAGEMENT AT ZONG:
Humans are the basic tool for having competitive edge in the market for most of the
organizations and ZONG is one of these. Zong has one of the best HR systems in Pakistan
that gives it an edge over its competitors. HR strategy refers to the specific human resource
management course of actions that a company pursues to achieve its objectives.
But how these strategies/policies/practices are formulated and implemented at Zong. There
is a whole process behind this.
Like most big organizations, this process is also done in accordance with company’s
mission. First, Strategic planners analyze what actually is he prevalent culture of the
organization, what are the strengths, weaknesses, opportunities, threats (SWOT analysis) of
business and its market, and on the basis of all the above analysis, company’s strategic plan
is established. In the end HR strategies are formulated in accordance with this overall
business’/companies’ strategic plans.
1. RECRUITMENT POLICY:
Zong Policies for Recruitment and Selection:
Policies for Recruitment and Selection as experienced at Zong are:
Objectives: The policy is meant to ensure an effective and efficient method of recruitment
and selection. It is aimed at hiring without any discrimination based on race, color, sex,
nationality, ancestry, religion or disability.
Policy guidelines:
➢ The recruitment policy m us t comply w i th regulations s et out by t h e
Government of Pakistan.
➢ The Source of recruitment for different job vacancies in China Mobile Pakistan
shall include:
○ Internal Advertisement.
○ Databank.
○ Advertising.
○ Head hunters/executive search organizations.
○ Walk in candidates. Colleges and Universities
Types:
a) External Recruitment
b) Internal Recruitment
1. PROCEDURE:
2. RULES:
Conditions for selection:
➢ Departments must submit Hiring Request andOr Transfer Request Form to the HR
Department and duly signed.
➢ Information regarding qualifications and job description should be forwarded for
identification of suitable candidates.
➢ Lead-time of at least ten working days should be given for selection of candidates.
➢ The Human Resources Department would place internal advertisements and / or
shortlist suitable candidates from the databank. If no suitable candidate is found,
advertisements will be placed in media.
The Human Resources Department shall, upon the department’s request, provide screened
CVs. Short Listed Candidates will be invited for a final interview with the HR department.
The Human Resources Department may conduct Profile and Psychometric Tests for the
selected candidate in order to evaluate the suitability of the candidate.
In the Case of Consultants the Company will sign a contract with the Consultant
for a duration ranging from 3 months to 1 year.The Human Resources Department shall
prepare and deliver the Employment Letter to the Employee and obtain signatures on a copy.
Practices at Zong regarding Recruitment and Selection
Sources of Internal Recruitment Sources of External Recruitment
TRAINING
Training the hired professional/employees is the bounded rational decision and includes a
little role of intuition as the managers during the training might assume and have a thought
on an interne/employee that how good he/she will be in future and how good will be to
handle the management.
The HR Department shall coordinate all the tasks until a total Company- training plan is
finalized, then follow-up with Department Heads on its implementation.
• Leadership
• Influencing
• Creative Problem Solving
REWARD SYSTEM:
Zong considers its employees not just as a cost but also as a resource in which the company
has invested from which it expects valuable returns. Pay policies and programs are one of the
most important human resource tools for encouraging desired employee behaviors. The
advantage of paying above the market average is the ability to attract and retain the top talent
available, which can translate into highly effective and productive work force.
The incentive schemes and incentive objective have been clearly communicated to all
individuals and weekly progress report is also communicated to all concerned.
Smart/Quality work
Exceptional performance in a project
Targets achievements
Special assignments
Medical care
Life insurance
Vacations
Relocation
Credit advance policy provident policy/advance against provident fund and a capping
of gratuity
Recreation
Club Policy Travel
Education assistance policy
Mobile phone
Business mobile phone policy
Official Blackberry Policy
Life insurance
Medical entitlement
FOUNDATIONS OF PLANNING
The slogan of Zong say it all, for everyone to realize the aspirations and the necessity to
fulfill all their desires, Zong believes in “Sab Kheh Do”
A strategic plan:
Usually a mainstream internal plan, but it focuses more on high-level options and setting
main priorities than on the detailed dates and specific responsibilities. Like most internal
plans, it wouldn’t include descriptions of the company or the management team. Zong
technological plan talks about developing and maintaining distinct business advantages
through continuous induction of improved hard and soft technologies. Perks to the share
holders ensure the health and viability of business and thus safeguarding shareholders interest
by maximizing profit.
A feasibility plan:
A very simple start-up plan includes a summary, mission statement, keys to success, basic
market analysis, and preliminary analysis of costs, pricing, and probable expenses. This kind
of plan is good for deciding whether or not to proceed with a plan, to tell if there is a business
worth pursuing. Employee benefits of Zong are key to enhance and continuously up-date
each member’s capabilities and education and to provide an environment which encourages
practical expression of the individual potential in goal directed team efforts and compensate
them attractively according to their abilities and performance. Compliance with all
government laws and regulations, as well as maintaining a high standard of ethics in all
operations and to also act as a responsible member of the community.
Sometimes focus on a specific area of business, or a subset of the business. These plans could
be internal plans or not, depending on whether or not they are being linked to loan
applications or new investment. Our customers are the reason and the source of the business.
It is the joint aim with our dealers to ensure that our customers enjoy the highest level of
satisfaction from use of Zong network.
PERFORMANCE APPRAISAL:
Now the problem arises of reviewing the performance of the employees that how efficiently and
effectively. They may be performing up to the level of managers or vice versa. These problems are
unstructured and solution exists in non-programmed decisions of the managers. But some time due to
time spent in training and managers own intuition decision can be programmed.
Unstructur Top
ed
Non-
Programmed
Types Level in
of Organizati
proble on
m
Programm
ed
Decisions
Well Lower
Structured
Reviewing performance and taking positive steps to develop employees further is a key function of
management and is a major component in ensuring the success of the company through effective
employee performance.
A review is about ensuring people know what levels of performance are expected of them and then
taking action to ensure they are trained and developed to perform effectively.
% Of total numbers of
Appraisal Category Definition of Category employees which can be
rated in this category
1.expert Indicates exceptional 15%
performance
MISSION STATEMENT:
“To be a superior communication service company in Pakistan who provides the best value to
its customers, employees, business partners and shareholders.”
The ZONG’s mission statement tends to indicate to all its stakeholders following aspects of
its organization:
• Then it tells us that it is broad enough to allow for creative growth and will
distinguish the firm from all others.
• It tends to generate range of feasible strategic alternatives although that are not
excessively specific but it allows reconciling interests among diverse stakeholders.
• It can be also stated that it is finely balanced between specificity & generality it
creatively arouses positive feelings and emotions so that to motivate readers to action.
• It also generate the impression that Zong is successful, has direction, and is worthy of
time, support, and investment.
• Similarly it reflects judgments regarding the future growth of the company and tends
to provide criteria for selecting strategies that would eventually form the basis for
generating & screening strategic options for the company itself.
SWOT ANALYSIS:
STRENGTHS
➢ Zong has network coverage in more than 750 cities, towns and across all major
highways of the country.
➢ Zong provides International Roaming facility with more than 150 international
operators across 79 countries.
➢ Zong is proud to have an efficient and friendly customer service through 21 company-
owned Sales & Customer Service Centers and nearly 250 franchisees across the
country.
➢ Zong has always believed in a solid commitment to growth, security and reliability.
Therefore, Zong has always balanced its expansion efforts and quality of service.
With a total current investment of $700 Million.
➢ Zong introduced he concept of own mobile number which attracted many people
towards zong.
➢ Zong is offering the service of Multi-media Messaging Service (MMS).
➢ As mobile users in the country have reached over 78 million at a very rapid pace,
Zong has maintained itself as the fastest growing cellular operator in Pakistan with a
subscriber base of around 5.29 million and a market share of nearly 25%. Zong has
seen a subscriber growth rate of over 200% in the last year, and since the start of 2008
Zong added nearly 5 million subscribers onto its network. A remarkable achievement
indeed, especially considering the fact those two new international (Telenor and
Warid) players also entered into the market in 2005.
➢ While keeping its tradition of being the trend setter in the industry, Zong changed the
image of mobile phones from a luxury only affordable by the elite, to a necessity
affordable by the common man.
➢ Zong increased its focus on the youth segment (which comprises 50% of the
population), with the Prepay brand.
➢ Zong has the ability to retain its existing customer base with a high level of customer
satisfaction via optimum network service and a 24 hour call center facility.
➢ It has the post paid service that is normally to attract the Business class people.
Nowadays most of the business and elite class people use post paid and other services
offered by the Zong.
➢ Zong has a subscriber base of 5.29 million as of October 2008.
➢ Zong was the first cellular Company in Pakistan that introduced the service of Hourly
Internet package and hence took the competitive advantage.
➢ Zong has some exciting and energetic SMS packages that made SMS almost free.
They are also post-paid packages which is giving an advantage competitors, which its
subscribers really love it.
➢ Zong has some very exciting and low call packages like “Free Package”, “Super Zong
Number”, and “break time offer” etc which attracted lots of customers towards it and
many other cellular company users are also switching to it.
➢ Zong post paid is also offering black berry set that is useful and tempting for the
Business class.
➢ The arrival of China Mobile Company (Zong) in cellular industry of Pakistan the
Zong and other companies now have to face the severe competition. As Zong is
introducing some various attractive packages of both SMS and calls to attract
customers.
WEAKNESSES
➢ Zong does not have the proper lists of its customers. It has the list but this list is not
authentic which is increasing the unauthorized use of its sim specially pre pay. Zong
have to take serious steps to properly list its customers to ensure that there is no
misuse.
➢ It has many franchises in the whole country but as its customers are increasing day by
day so its present franchises are not enough to fulfill the needs of its customers.
➢ Zong also face problems and its network get jammed on special occasions like Eid,
Christmas, New year etc
➢ Zong has the problem of voice quality. Though its coverage area is vast and it covers
more than 500 towns and cities in Pakistan but the voice quality is not as good as it
should be.
➢ Zong though has some unique and distinct services but it has not yet given many
innovative services as compared to other cellular companies.
➢ Call rates from Zong to Zong is very cheap but to other networks its rates are
expensive.
➢ Its coverage on Southern part of Pakistan is quite good but in northern areas its
coverage is a bit poor.
➢ In Zong web support is not available.
➢ Its customer’s service staff needs training because at many franchises their employees
are having been complained about behaving rudely.
➢ If Zong Company has to progress and grow in market it has to improve its advertising
campaign. Its advertisements are not good and eye catching.
➢ When Zong came into the seen in Pakistan cellular market Mobilink was already
prevailing in the market and it was a though completion going on between Mobilink,
U-Fone and Telenor. Though with the passage of time Zong took many customers of
Mobilink but still Mobilink has large number of users because it was first to
Pakistan’s cellular market and this is the competitive disadvantage to Zong.
OPPORTUNITIES
➢ Zong could develop some new and innovative services to attract customers and some
of the suggestions are as under which will help them to increase their revenues:
➢ It should introduced International SMS packages like local SMS. Already Zong is
offering lowest International SMS rates but if they introduce some package like this it
will get lots and lots of success.
➢ They should also introduce some International call packages to Middle Eastern
countries because there are lots of Pakistanis who are living in those countries so
people will definitely be tempted towards such package.
➢ In “ Break time offer” package time of the package should be extend two more hours
so that more & more people will use this service and causing Zong to generate more
revenues.
➢ Zong should develop some new franchises in remote areas so that people will get
more and more benefit from it and it will help to increase their customers.
➢ As in Pakistan Youth is almost the 50% of the population so Zong can take advantage
of this demographic situation and should introduce more and more services and
packages that attracts youth towards it.
➢ Zong should extend its network coverage area to Northern part of the country as well
because in that part not too many companies are giving services and if Zong give its
service there then it will definitely attract people and its number of customers will
shoot like a rocket.
➢ It should also introduce some packages for internet users on mobile if it do so then
many people will switch from other networks towards it.
➢ If Zong enhance its reception quality then definitely it would be prefer more by
customers.
➢ Zong can surprise its competitors by introducing “Zong Easy ATM”. These will be
ATM like machines and that will give 24-hour service to Zong subscribers to load the
balance just like they take money from ATM.
THREATS
➢ As Zong is cellular company and there is cut throat competition among cellular
companies in Pakistan. There are six other companies also working in Pakistan so
Zong would have to face some growing competitive pressures.
➢ Pakistan is facing some serious economic problems now days so that would also
affect Zong. The current recession in market is not good for any kind of business
including telecommunication.
➢ In Baluchistan and FATA where Zong already has network coverage is in danger
because of critical situation and operation being held there. Investment of Zong is in
danger.
➢ Zong penetrated in the market from late 2007 to 2008 quite rapidly but since then it is
experiencing a bit slower growth.
➢ The key threat to Zong is also some adverse Government policies of implementing
Tax on telecommunication industry that will ultimately affect the revenues.
➢ Telenor is giving higher rumination to its employees as compared to Zong so many of
its skillful and competent employees are going there. That will affect the company’s
profitability in the long run.
➢ Some Pressure groups are protesting on the Towers that are installed in residential
areas. Their opinion is that it is not good for health of people to have such towers near
their homes that cause radiations.
➢ Zong have to revise the list of subscribers who are legal and authorized. Because now
the Government has warn to take strict action if any company would not keep such
record.
• Boston Matrix.
• Product portfolio1 & Product life cycle2
The products of Zong have been analyzed with the help of these tools as shown below.
1 Product portfolio sometimes referred to as product mix is the particular mix of products that the firm is
marketing.
2 Product life cycle shows the various stages in the life of a product and level of sales that can be expected on
each level.
Based on the survey of people and also the survey of PTA to which reference has been given
in the annexure; we can confirm which products fall to which category.
Zong 65
Break Time Offer
50 Paisa/Call (8
Aanay)
COMPETITIVE STRATEGIES:
EFFECTIVENESS CRITERIA:
Zong follows the chain Communication network as its speed is moderate and accuracy of the
information communicated is high.
INTERPERSONAL COMMUNICATION:
Oral Communication
Written Communication
Employees’ Handbook
House Magazines and Newspapers
Financial Reports
Bulletin Boards
Audio-Visual Aids
Notice Boards
Communication with Public and Government
OBJECTIVES OF COMMUNICATION
The purposes of communication are:
1. To develop information and understanding which are necessary for group effort?
2. To provide an attitude which is necessary for motivation, co-operation and job
satisfaction?
3. To discourage the spread of misinformation, rumors’, gossip,’ and to release the
emotional tensions of workers
4. To prepare workers for a change by giving them the necessary information in advance.
5. To encourage ideas, suggestions from subordinates for an improvement in the product
and work conditions, for a reduction in time or cost involved and for the avoidance of
the waste of raw material.
6. To improve labor-management relations by keeping both in contact with each other.
7. To satisfy the basic human needs like recognition, self-importance and sense of
participation.
8. To serve auxiliary functions such as entertainment and the maintenance of social
relations among human beings.
RECOMMENDATIONS
MANAGEMENT:
• Zong HR lacks in terms of career planning and development. This important function
of HR does not have recognition in Policies’ statement. Zong should have a look at
this.
• Should change adopt the policy of management from the original china mobile
management policy to the management policy of Pakistani People
• Digitizing is making mangers work more difficult as per day.
DECISION MAKING:
• Zong has a strong HR system. That is the reason we didn’t found much discrepancies
in what management says, what policies state and what employees say. 90 % of the
times they were same. However, there were some discrepancies that need attention
and their adjustment can make this HR system best in Pakistan.
• Human resource department is not fully authorized to take all the decisions. Though
HR department claims to have the overall management of the company but that
actually is not the case. There are many HR decisions that are taken by the other
department. So, there should be a clear delegation of authority regarding decision
making for HR department.
• Benefits and rewards are too complicated for anyone to understand. Though there are
many of these but most of employees even have not information as to for what
benefit they can go for. So, Zong should simplify its reward system for its employees
to understand well.
• The decision making is delegated to managers with goals set for each term
promotion, hiring and firing is virtually in the immediate boss’s hand. This practice
can cause disharmony among employees for power. Team based structure (like the
one at PMO) should be preferred in all departments
• Zong uses only policy specified sources for recruitment which are only 5. In this way
it can lose some potential applicants that can be asset to organizations, just because
they were not well communicated. So, Zong should increase its recruitment sources.
During an HR specialist interview, we posed the same question and the answer was
“that’s what policy says; on ground level we do use as many sources as possible”. If
this is the case then our recommendation is that Zong should adjust its policy
accordingly.
PLANNING:
• Whatever they do, in the end, should eventually lead to increased profit. Spending big
money on new technology seem foolish so until they realize that the expense will be
recouped after a while from better productivity and reduced costs or better quality
products, should not be occurred.
• Should lead to providing a better service to their clients. Any profits are re-invested
in the organization.
• Based on appraisals, training and development programs should be planned and
implemented
• To support its growing production facilities, the company has established an R&D
wing and tool making facilities through CDA and CAM, which are growing rapidly
in size and function as the company expanding
STRATEGIC MANAGEMENT:
• Zong need to improve the coverage ratio through out Pakistan as it its coverage lack
behind its competitors.
• Pay more attention on the “problem child” packages mentioned and bring them into
cash cow and star sections.
• Bring the consumers low international roaming charges as a subsidiary of China
Mobile for International countries.
• Lower rate packages should be introduced to eliminate tough competitions of other
cellular companies especially Mobilink and Telenor.
ORGANIZATIONAL COMMUNICATION:
• Barriers to effective Interpersonal Communication (filtering, emotions…) should be
removed.
• Language used in communication should be simple, that each employee understands
but other (outsiders, competitors) can’t understand.
• Used to jargons should be more frequent.
• “Politically correct” communication should be more in practices as it creates a
friendlier atmosphere for everyone.
REFERENCES: