Professional Documents
Culture Documents
ACT fibernet
ACT fibernet
Industry
ACT Fibernet says ACT SmartFiber to provide better internet experience in streaming, gaming,
WFH and online education ACT Fibernet has introduced ACT SmartFiber technology for all
users across the country, at no additional cost.In a statement, ACT Fibernet said the technology
was a combination of the company’s technical expertise, mapping of traffic patterns and
consumer usage knowledge to provide a better internet experience in streaming, gaming, WFH
and online education among others.
It says the ACT SmartFiber would be applicable to all existing broadband plans and provided to
all customers with no additional cost.
According to Bala Malladi, CEO, Atria Convergence Technologies, “With exponential increase
in consumption of data at home and number of devices simultaneously connected, customers
demand from their home internet has increased manifold."
ACT offers high speed internet connection for home & businesses in 19 cities across India.
ACT (Atria Convergence Technologies Ltd.) was born out of a vision to become the most
admired in-the-home entertainment, education, and interactive services company that creates
radical social transformation, and delights and empowers customers.
Today, we are closer than ever to realizing it. Based in Bangalore, we serve a number of cities
and towns in Karnataka, Andhra Pradesh, Telangana, Tamil Nadu, and Delhi. We are one of the
country’s most renowned cable and broadband companies, bringing state-of-the-art services to
nearly 2 million happy homes:
Fibernet (Internet over Fiber Optics)
Digital TV
HDTV
1
ACT Fibernet( Atria Convergence Technologies Limited) is one of the largest broadband
operators in India that offers high speed, affordable internet services. With more than 2 million
customers across 19 cities. ACT Fibernet offers to provide high quality service at a competitive
price so that its customers can make the most of your internet experience.
● DSL Based Technologies:DSL based technology over the years has evolved from DSL, HDSL,
ADSL, VDSL and VDSL2. ADSL is the most prominently used technology by most of the
telecom providers who have legacy phone installations with copper connectivity. ASDL can
provide a peak speed of 8Mbps at distances less than 1km from the DSLAM and the peak speed
drops to less than 2Mbps for distance more than 4km.
ADSL2/2+ gives about 20-24Mbps at distances less than 500 meters from the DSLAM. At 4km
distance, the peak speed of ADSL2+ is same as ADSL (about 2Mbps peak). VDSL2+ can
provide up to 80 Mbps for < 300 meters, but drops to < 10Mbps for > 2kms distance. Also,
VDSL2+ is susceptible to a lot of cross-talk interference if there are more than four connections
within the same DSLAM. The peak speed drops down to < 20Mbps if there are
more than four subscribers due to interference. Newer technology called Vectored VDSL, which
presumably reduces cross-talk interference, is being worked upon. It is however estimated that
this technology will take about 3-5 years to be deployed.The entry barrier for DSL based
technologies is less for legacy telecom providers, since they already have an installed base of
copper in the last mile. The severe limitations of throughput on copper over normal distances
will limit the longer-term usefulness of these assets.
2
● Cable Based Technologies:DOCSIS 2.0 was being deployed in India till recently. It had severe
limitations on peak download speeds and hence is being replaced by DOCSIS 3.0 by most of the
cable providers. The cable modem in the house has to be replaced for this purpose. DOCSIS 3.0
works on channel bonding technology. It can bond up to four channels in the downstream and
hence is capable of providing up to 152 Mbps in the downlink, provided there is only one
customer connected to the node. Typically in India, there are about 50-100 customers connected
to every node, and hence the active subscribers share the bandwidth at any given time. The
upload speed is much lesser than the download speed. DOCSIS 3.1 is being developed as a new
standard and promises to provide even higher bandwidths. This is still in the development stage
and may take 3-5 years to hit the market.
● LTE Based Broadband Service: 4G-LTE Wireless broadband service is in the process of
getting launched in most of the cities in India. It is being projected as an effective broadband
alternative. However, each sector of LTE eNodeB can provide a maximum of 100Mbps
download, which gets shared by the number of subscribers who are covered in the coverage area,
typically a 1-2 km radius. Operators have a choice of deploying 3-6 sectors in a tower. Each
operator has limited spectrum. Hence it is a challenge to deploy multiple sectors within a tower.
Small Cells is a possible solution to this problem, with multiple small towers/buildings, but the
spectrum availability for every operator will be a big hindrance to aggressive small cell
deployment.
● FTTH: Lately, few Internet service providers are deploying "Fiber to the Home" technology.
● GPON (Gigabit Passive Optical Network):GPON is one of the commonly used mechanisms to
deliver bandwidth. However, in GPON systems, there is dedicated terminal equipment required
in each customer house. The fiber is passively split for multiple customers, which can go up to
1:128. About 2.5Gbps gets shared by the number of subscribers connected to it (either by 64 or
128 as per the capability). The uplink bandwidth is typically about 50 percent of the downlink
bandwidth.
● Metro-Ethernet: ACT Fibernet uses Metro-Ethernet based FTTH to deliver bandwidth upto the
home on Fiber. This provides dedicated fiber connectivity upto every individual home, and is
capable of delivering up to 1Gbps for every subscriber. This is a symmetric mechanism of
delivering bandwidth, where the upload speed will be equal to download speed. The bandwidth
is not shared by multiple customers and hence the customer is guaranteed the subscribed
bandwidth at any time of the day. This technology also has the advantage of not requiring a
modem.
3
1.3.Objectives of the study
● To assess the competitive landscape and analyze the positioning of ACT Fibernet within the
market.
● To explore the impact of pricing strategies on customer perception and buying behavior.
The scope of the study on ACT Fibernet's marketing includes analyzing various aspects of their
marketing strategies, campaigns, and initiatives. This may include examining their target market
segments, competitive landscape pricing strategies, promotion and advertising activities,
distribution channels, customer relationship management practices, and market trends.
The study will involve gathering information through primary and secondary research methods,
such as conducting surveys, interviews, and analyzing industry reports and market data. Data
analysis will be conducted to evaluate the effectiveness of ACT Fibernet's marketing efforts and
identify areas for improvement.
The study will focus on understanding the impact of ACT Fibernet's marketing on customer
acquisition, retention, and brand equity. It will also explore how market trends and customer
preferences influence their marketing strategies. The finding of the study will be used to provide
recommendations for enhancing ACT Fibernet's marketing effectiveness and achieving their
goals.
It is important to note that the study will primarily focus on ACT Fibernet's marketing strategies
an may not delve into other aspects of their business operations, such as technical aspects of their
fiber optic network or financial performance.
4
1.5.Limitations of the study
5.1. Geographic Coverage: ACT Fibernet's services may not be available in all regions or cities.
Their network coverage may be limited to certain geographic areas, which could result in
potential customers being unable to access their services.
5.2. Service Availability: While ACT Fibernet aims to provide reliable and high-speed internet
services, there may be instances where service interruptions or outages occur. This can impact
customer satisfaction and perception of their service quality.
5.3. Infrastructure Constraints: The quality and speed of internet services can be influenced by
the underlying infrastructure. In some cases, there may be infrastructure limitations or challenges
that affect the overall service quality provided by ACT Fibernet.
5.4. Pricing: The pricing of ACT Fibernet's broadband plans may be perceived as relatively
higher compared to some competitors i the market. This pricing structure and affordability may
influence customer acquisition and retenti
5.5. Competition: The broadband market is highly competitive, with other providers offering
similar services and solutions. ACT Fibernet operates in a competitiv environment with other
establish players, and this can impact market share and customer loyal.
5.6. Customer Support: The quality and efficiency of customer supp services provided by ACT
Fiberne may vary. Some customers may have encountered challenges or delays in resolving
technical or service-related issues, which can affect their overall customer experience.
6. Research methodology
• Primary data
• Secondary data
5
6.1.Primary data:
Data was collected through the administration of a questionnaire prepared for the purpose of the
study. The questionnaire involved 50 number of questions enquiring about, brand preferences for
their purchase, conditions considered to make particular purchase, which media created
awareness etc..
6.2.Secondary data:
The data collected by researcher which is available through records, reports, websites, news
papers, magazines
● Internet
● Magazines
● Broachers
● Other references
2.1 History
ACT Fibernet, commonly known as ACT, is a leading fiber optic broadband service provider in
India. The company is a subsidiary of Atria Convergence Technologies Limited (ACT Group).
Established in 2000, ACT Fibernet has emerge as one of the largest broadband operators in the
country.
ACT (Atria Convergence Technologies Ltd.) was born out of a vision to become the most
admired in-the-home entertainment, education and interactive services company that creates
radical social transformation, and delights and empowers customers.
Today, we are closer than ever to realising it. Based in Bangalore, we serve a number of cities
and towns in Karnataka, Andhra Pradesh, Telangana, Tamil Nadu and Delhi. We are one of the
country’s most renowned cable and broadband company, bringing state-of the art services to
nearly 2 million happy homes:
6
We offer broadband on optic fiber and our Fiber-To-The-Home technology can carry vast
amount of information at speeds up to 1 Gbps. We are currently the largest fiber broadband
services provider in the wired broadband category, and the largest non-telco ISP in the country.
Consumer behavior is also changing to online on demand viewing of content vs. appointment
based viewing over mass media. Media, gaming coupled with learning platforms & video calls
have become the driving forces for the broadband industry globally.
Our founder, Mr. Sunder Raju, is well respected in the Indian business fraternity and our senior
management consists of 30+ professionals from diverse industries like FMCG, Entertainment,
Information & Technology, Telecom, and Retail.
We are backed by True North ( formerly known as India Value Fund Advisors – IVFA), a
premier private equity investment fund and TA associates, a Global Growth private equity firm
with over $17 billion of invested capital. In the past, IVFA True North has supported many
successful ventures like Biocon, Radio City, HDFC Bank, Meru, Mahindra Hinoday, and TTK
Healthcare, among others. TA's investments in India include several successful companies like
Billdesk, Dr Lal's Pathlabs, Fractal Analytics, Micromax, Rategain and Tega Ind.
7
ACT Fibernet, commonly known as ACT, is a leading fiber optic broadband service provider in
India. The company is a subsidiary of Atria Convergence Technologies Limited (ACT Group).
Established in 2000, ACT Fibernet has emerge as one of the largest broadband operators in the
country.
Connectivity is the bedrock of all progress and dare I say innovation. When the American train
system connected the east coast and west coast, the average shipping time was brought down
from 2 weeks to 3 days -the Amazon Prime equivalent of 19th century, leading to rapid
movement of people, goods and ideas and followed of course by progress and prosperity. Today,
that connectivity is in the digital space with Speed and reliability still being the fundamental
requirements.
With rapid proliferation of digital technologies and usage from individuals records, government
benefits, everyday transactions such as banking and traffic mapping - digital connectivity today
is assumed to be always available and all pervasive.
Global Outlook:
There are two types of connectivity that an end customer experiences - Fixed broadband, also
called Wired broadband and Wireless broadband also called Mobile broadband.
Wireless connectivity provides internet on the go, making it convenient and accessible. It helps
include billions of people into the digital ecosystem. However it does have its downsides due to
limited spectrum, expensive spectrum pricing that leads to compromise in consumer experience -
slower speeds, drop in connectivity. While newer technologies like 5G will mitigate these to
some extent, but with multiple devices coming online (due to loT) the challenge will still remain.
Wired connectivity provides reliable, stable and seamless experience to the end customer and can
support higher amounts of data, multi device usage and higher speeds. However, it is physical
infrastructure that needs to be built and hence the expansion is slow and expensive.
Fixed broadband industry is on the raise with prediction that a subscriber base to reach 1.2
billion by 2025
with a growth of 24% from 2018 to 2025(*). The growth trend is not limited to Western world
but is in-fact
8
Today in countries like USA & UK, approximately 40% of total media consumption is through
digital and the share of digital in media a decade back was at ground zero. At the same time,
gaming industry is witnessing significant growth with as many as 150 million devices sold over
the years. The lifeline for these multiuser gaming platforms is high speed connectivity and the
growth of gaming industry is having a rub-off effect on the broadband industry.
Consumer behavior is also changing to online on demand viewing of content vs. appointment
based viewing over mass media. Media, gaming coupled with learning platforms & video calls
have become the driving forces for the broadband industry globally.
Indian Perspective:
With 604.21 million internet subscribers, as of December 2018, India ranks as the world's second
largest market in terms of total internet users, Further, India is also the world's second largest
telecommunications market, with total subscriber base of 1,183.51 million at the end of March
2019. The usage of internet also has grown rapidly in the past few years. With Jio's launch the
usage of data has increased exponentially. This has also given fame to the video content which
wasn't popular due to inaccessibility earlier. A proof of that is the amount of data people use on a
monthly basis. The general usage is around 10 GB per person per month on mobile phones and
100 GB per person per month on broadband.
The fixed broadband penetration is only 7% and penetration in top 25 cities/towns is only 20-
25%. In sync with the global trend the media consumption through digital platforms is increasing
and is at 16% today and growing at ~35% y-o-y. Growing penetration of Smart TVs, Smart
devices, online streaming, gaming, work from home, video calling are positive indicators from
consumer behavior standpoint that augurs well for the
9
CHAPTER 2
Organization profile
2. 1 BACK GROUND
We are backed by True North ( formerly known as India Value Fund Advisors – IVFA), a
premier private equity investment fund and TA associates, a Global Growth private equity firm
with over $17 billion of invested capital.
Our founder, Mr. Sunder Raju, is well respected in the Indian business fraternity and our senior
management consists of 30+ professionals from diverse industries like FMCG, Entertainment,
Information & Technology, Telecom, and Retail.
We are backed by True North ( formerly known as India Value Fund Advisors – IVFA), a
premier private equity investment fund and TA associates, a Global Growth private equity firm
with over $17 billion of invested capital. In the past, IVFA True North has supported many
successful ventures like Biocon, Radio City, HDFC Bank, Meru, Mahindra Hinoday, and TTK
Healthcare, among others. TA's investments in India include several successful companies like
Billdesk, Dr Lal's Pathlabs, Fractal Analytics, Micromax, Rategain and Tega Ind.
● Over the last 13+ years, Bala has been spearheading ACT as its Chief Executive Officer.
● As on 31 March 2022, ACT was the fourth largest wired broadband service provider in India
with over 20 lakh (2 million) subscribers.
● ACT Fibernet employs 5,001 to 10,000 employees in India.
● ACT Fibernet has an overall rating of 4.0 out of 5, based on over 524 reviews left anonymously
by employees. 69% of employees would recommend working at ACT Fibernet to a friend and
69% have a positive outlook for the business. This rating has decreased by -1% over the last 12
months.
● ACT takes full responsibility to ensure a refund of the initial amount paid by the customer.
● ACT Broadband offers affordable and customizable plans, making it an excellent choice for
businesses seeking cost-effective solutions tailored to their specific needs. With a range of
flexible plans, businesses can select the most suitable package based on their budget and
requirements.
● Ookla just recently revealed that JioFiber offered the top broadband speed to customers in Q4,
2020. ACT gained the second spot, Airtel Xstream Fiber the third position and Hathway got the
fourth spot in India's fixed broadband speed rankings.
● Select the rental tenure (3/6/12M) of your choice and you will see the plans that come with a free
router on the subscription.
10
2.2 NATURE OF BUSINESS
Experience the internet at ultra-fast speeds with ACT corporate broadband connection. Our WiFi
plans come with speeds up to 1 Gbps making them the perfect choice for your office internet
connection.
Being one of the nation’s largest Class A Internet Service Providers, ACT serves more than 1.5
million internet customers in 19 cities across India with world-class internet services. Our
enterprise solution is designed exclusively to boost business agility and enhance the productivity
of our clients with an internet connection that is much more efficient, reliable and scalable than
home internet. With a decade of experience in delivering fiber optic technology, we power close
to 15000+ enterprise customers in Bangalore, Hyderabad and Chennai.
● We, Atria Convergence Technologies Private Limited (ACT), is in the business of providing
Broadband internet services along with Cable TV services through its Subsidiaries (ACT Group
Companies – herein after referred as “ACT Group”).
● Atria Convergence Technologies Limited, branded as ACT, is an Indian telecommunications
company headquartered in Bengaluru, Karnataka, India. ACT offers fibre to the home (FTTH)
services under the brand name "ACT Fibernet" and digital television services under the "ACT
Digital" brand.
● We are currently the largest fiber broadband services provider in the wired broadband category,
and the largest non-telco ISP in the country.
● The ACT contains four multiple-choice tests—English, mathematics, reading, and science—and
an optional writing test.
● Sunder Raju and Mr. K. Nagaraju, ACT is engaged in providing wired broadband services and
cable television services (through its subsidiaries) in 20 residential cities in India. It is the largest
non-TSP ISP in India with a market share of 7.60% as on December 31, 2021.
11
2.3 VISION, MISSION AND VALUES
OUR VISION
To become the most admired in-the-home entertainment, education, and interactive services
company that creates radical social transformation, and delights and empowers customers.
OUR MISSION
OUR VALUES
12
2.4 WORKFLOW MODEL
13
14
2.5 PRODUCTS & SERVICES PROFILE
PRODUCTS
15
SERVICES
1.Internet Plans: ACT Fibernet provides various broadband plans with different speeds and data
limits to cater to the diverse needs of users.
● Netflix + SonyLiv Included ACT Storm Bonanza. ₹1350 / month. 300 Mbps speed.
2.Fiber Optic Technology: The service is based on fiber optic technology, ensuring faster and
more reliable internet connectivity compared to traditional broadband.
3.Streaming Services: Some plans may include partnerships with streaming platforms, offering
bundled subscriptions for popular streaming services.
4.Business Solutions: ACT Fibernet also extends its services to businesses, providing dedicated
internet solutions, leased lines, and other enterprise-grade services.
5.Customer Support: The company typically offers customer support services to address
queries, technical issues, and provide assistance to subscribers.
Key Highlights:
1.Services and Offerings: - High-Speed Internet: ACT Fibernet offers internet services with
speeds ranging from 10 Mbps to 1 Gbps, providing customers with a seamless online experience
- Fiber to the Home (FTTH) Technology: The company operate on a fiber optic backbone,
ensuring reliable and high-speed internet connectivity.
16
- Digital TV: ACT Fibernet also offers digital TV services with a variety of channels and
interactive features.
2.Geographic Coverage: - ACT Fibernet has a strong presence in multiple cities across India,
including Bangalore, Chennai, Hyderabad, Delhi, Jaipur, Visakhapatnam, and more.
- The company aims to expand its service footprint to reach a larger customer base and provide
internet connectivity to more areas.
3.Infrastructure and Technology: - ACT Fibernet boasts a robust and extensive fiber optic
network infrastructure, enabling the delivery of high-quality internet services.
- The company continuously invests in technology and infrastructure upgrades to stay ahead in
the broadband market.
- ACT Fibernet utilizes advanced networking equipment, routers, and other technologies to
ensure seamless connectivity and high-speed internet access.
Blazing speed
ACT Fibernet provides ultra-fast internet speeds for smooth browsing, streaming, gaming, and
downloading with data limits you choose.
Unlimited Data
Enjoy unlimited data usage without any caps or restrictions, allowing you to stream, download,
and browse without worrying about data limits.
Reliable Network
ACT Fibernet ensures a reliable and stable network connection, minimizing interruptions and
providing a seamless online experience.
Changing consumer habits present both a challenge and opportunity. An average urban
consumer's home has over 4.5 devices connected to the internet at any point in time. Unless the
speeds delivered are high and robust on Wi-Fi, customer will not get a seamless experience. 75%
+ customers stream content of YouTube and other streaming apps and to enjoy HD and 4k
quality content, it is important to have a high speed broadband. Not just that around 10% of
17
urban HH have some form of smart device-TV, speaker, assistant, light and this number is only
increasing.
With rising data consumption due to changing consumer habits streaming, gaming, IOT, video
content downloads, cloud storage and usage of multiple devices in homes and offices, the
broadband industry in general and ACT Fibernet today is positioned in a sweet spot of growth.
A growing industry with favourable consumer dynamics always attracts newer players and the
broadband industry is no different. The industry has seen entrants at local level and at national
level with Reliance Jio ready for launch.
The mobile rates falling over last 2 years and remaining at lower level, the price differential
between mobile and home broadband is significantly high, thus reducing the number of new
category entrants. The category growth rate has slowed down due to the price dynamics in the
mobile market.
IN this scenario, ACT is looking at identifying and nurturing multiple growth opportunities.
Expansion into newer markets has picked up with 3 new cities launched in 2019. Acquisition
opportunities are being explored for inorganic growth across markets. Newer and allied markets
such as wifi hotspots, enterprise business segments (such as co working spaces) and entering
streaming devices business
Streaming Devices
There has been an explosion in Online video content viewing especially in urban areas. Online
content has given users the choice of viewing the content they like, at the time that suits them
and at the pace they want. Appointment-based-viewing is gradually getting converted to
viewing-on-demand. Mobile network and broadband providers are upgrading their networks so
that even in times of heavy consumption, the consumers continue to get a great experience.
Video streaming is the 2nd most important activity after social engagements (chatting, posts etc.)
and providing a great streaming experience is a differentiator in the minds of the consumer.
In parallel the producers of online content which include Netflix, AltBalaji, Hotstar, Prime Video
and many regional content producers are putting in constant efforts to create intriguing content
online only or online first which is further accelerating the shift to online streaming as default
choice entertainment.
18
While consumers considered TV to the best viewing experience but spend most of their time
watching streaming content on laptops and mobiles even while at home. Today's set top box
plays only TV channels and don't have ability to play their favorite shows, web series or
YouTube for that matter.
Consumer perceives content first and not channels. He wants to toggle between streaming
content and Live News channels seamlessly and not have to switch devices, remotes or screens.
He wants easy interface and access. Currently no such solution exists in the market today that
combines live TV and streaming platforms. Also as the customer subscribes to multiple
streaming subscriptions, he finds it inconvenient to pay individually to multiple streaming
providers and cable channels. Consumer also does not want two wires (cable + broadband)
coming into his home and would like everything available together. He is willing to pay a
premium if all of this can be consolidated into one billing.
Amazon Firetv Stick - currently available in HD and 4k versions (priced at Rs 3999 and 5999
respectively). Firety Stick enables the customer to stream online content directly onto TV using a
simple interface. The apps come pre-loaded and selected apps can be downloaded from Store and
content can be streamed. It does not allow for subscription on the device and customer has to
subscribe individually with the streaming providers on website/ app and log in. It also does not
provide live TV / cable TV features.
Airtel TV - this is a hybrid set top box l.e. the customer can plug in existing airtel Dish TV
connection and also connect to wifi to view streaming content. With this while consumers can
switch with some effort between cable channels and Streaming content, it provides the consumer
benefit of getting his content in one place. This is currently limited to customers who already
have airtel Dish connections. It also does not allow for subscriptions to streaming content on the
device but has to individually sign up.
19
2.6 ACHIEVEMENTS AND AWARDS
SWAB AWARDS
20
VOICE & DATA EXCELLENCE AWARD
21
ICONIC AWARD
22
2.7 future growth and prospects
23
5.Virtual and augmented reality
Currently, we get access to the internet using our mobile phones. But in the future, next-gen
devices will gain popularity that will be able to create a world making everything possible using
augmented reality. We already have the applications that showcase virtual reality using
Playstation VR, HTC Vibe, and Oculus Rift. Soon the world will be ready for augmented reality.
6.Full integration of the internet
The internet will not be a place anymore where one can only log in and check social media
platforms. Terms such as looking on the internet and going online will no longer exist, but an
environment will be available where everyone will always be online.
CHAPTER - 3
McKINSEY’S 7S FRAMEWORK AND PORTERS FIVE FORCE MODEL
McKINSEY’S 7S FRAMEWORK
The McKinsey 7-S model can be applied to elements of a team or a project as well. The
alignment issues apply, regardless of how you decide to define the scope of the areas you study.
The McKinsey 7S Model refers to a tool that analyzes a company’s “organizational design.” The
goal of the model is to depict how effectiveness can be achieved in an organization through the
interactions of seven key elements – Structure, Strategy, Skill, System, Shared Values, Style, and
Staff.
25
The focus of the McKinsey 7s Model lies in the interconnectedness of the elements that are
categorized by “Soft Ss” and “Hard Ss” – implying that a domino effect exists when changing
26
one element in order to maintain an effective balance. Placing “Shared Values” as the “center”
reflects the crucial nature of the impact of changes in founder values on all other elements.
Structure of the McKinsey 7S Model
Structure, Strategy, and Systems collectively account for the “Hard Ss” elements, whereas the
remaining are considered “Soft Ss.”
1. Structure
Structure is the way in which a company is organized – the chain of command and accountability
relationships that form its organizational chart.
2. Strategy
Strategy refers to a well-curated business plan that allows the company to formulate a plan of
action to achieve a sustainable competitive advantage, reinforced by the company’s mission and
values.
3. Systems
Systems entail the business and technical infrastructure of the company that establishes
workflows and the chain of decision-making.
4. Skills
Skills form the capabilities and competencies of a company that enables its employees to achieve
its objectives.
5. Style
The attitude of senior employees in a company establishes a code of conduct through their ways
of interactions and symbolic decision-making, which forms the management style of its leaders.
6. Staff
Staff involves talent management and all human resources related to company decisions, such as
training, recruiting, and rewards systems
7. Shared Values
The mission, objectives, and values form the foundation of every organization and play an
important role in aligning all key elements to maintain an effective organizational design.
Application of the McKinsey 7S Model
The subjectivity surrounding the concept of alignment concerning the seven key elements
contributes to why this model seems to have a complicated application. However, it is suggested
to follow a top-down approach – ranging from broad strategy and shared values to style and
staff.
Step 1: Identify the areas that are not effectively aligned
Is there consistency in the values, strategy, structure, and systems? Look for gaps and
inconsistencies in the relationship of elements. What needs to change?
Step 2: Determine the optimal organization design
It is important to consolidate the opinions of top management and create a generic optimal
organizational design that will allow the company to set realistic goals and achievable objectives.
The step requires a tremendous amount of research and analysis since there are no
“organizational industry templates” to follow.
Step 3: Decide where and what changes should be made
Once the outliers are identified, the plan of action can be created, which will involve making
concrete changes to the chain of hierarchy, the flow of communication, and reporting
relationships. It will allow the company to achieve an efficient organizational design.
27
Step 4: Make the necessary changes
Implementation of the decision strategy is a make-or-break situation for the company in
realistically achieving what it set out to do. Several hurdles in the process of implementation
arise, which are best dealt with in a well-thought-out implementation plan.
Advantages of the Model
• It enables different parts of a company to act in a coherent and “synced” manner.
• It allows for the effective tracking of the impact of the changes in key elements.
• It is considered a longstanding theory, with numerous organizations adopting the model over
time.
Disadvantages of the Model
• It is considered a long-term model.
• With the changing nature of businesses, it remains to be seen how the model will adapt.
• It seems to rely on internal factors and processes and may be disadvantageous in situations where
external circumstances influence an organization.
Practical Example
The McKinsey 7S model can be applied in circumstances where changes are being brought into
the organization that may affect one or more of the shared values. Suppose a company is
planning to undertake a merger. It will affect how the company is organized since new staff will
be coming in. It will also affect the structure of the company, along with strategic decision-
making, as new ideas flow in through synergy.
In such a case, the McKinsey 7s model can be used to first identify the inconsistent areas – here,
it would primarily be the structure, staff, and strategy. After identifying the relevant areas, the
company can make effective decisions to optimally re-organize and incorporate the changes in a
way that streamlines the merger process – after conducting extensive research and analysis of the
consequences that the changes bring to the company.
Additional Resources
Thank you for reading CFI’s guide to McKinsey 7S Model. To keep learning and advancing your
career, the following resources will be helpful:
• Corporate Structure
• Mission and Values
• Organizational Analysis
• M&A Considerations and Implications
• See all management & strategy resources
28
PORTER’S FIVE FORCE MODEL
Porter's Five Forces is a simple but powerful tool that you can use to identify the main sources of
competition in your industry or sector. When you understand the forces affecting your industry,
you'll be able to adjust your strategy, boost your profitability, and stay ahead of the competition.
For example, you could take fair advantage of a strong position or improve a weak one, and
avoid taking wrong steps in the future. The tool was created by Harvard Business School
professor Michael Porter, to analyze an industry's attractiveness and its potential profitability.
Since its publication in 1979, it has become one of the most popular and highly regarded
business strategy tools.
Porter recognized that organizations like to keep a close watch on their rivals, but he encouraged
them to look beyond the actions of their competitors and examine the forces at work in their
wider business environment.
What Is Porter's Five Forces?
According to Porter, there are five forces that represent the key sources of competitive pressure
within an industry. He stressed that it's important not to confuse these with more fleeting factors,
such as industry growth rates, government interventions, and technological innovations.
According to Porter, these are temporary factors, while the Five Forces are permanent parts of an
industry's structure.
Let's take a look at Porter's Five Forces in more detail:
Competitive Rivalry
The first of Porter's Five Forces looks at the number and strength of your competitors. How
many rivals do you have? Who are they, and how does the quality of their products and services
compare with yours?
In an industry where rivalry is intense, companies attract customers by aggressively cutting
prices and launching high-impact marketing campaigns. However, this can make it easy for
suppliers and buyers to go elsewhere if they feel that they're not getting a good deal from you.
On the other hand, where competitive rivalry is minimal, and no one else is doing what you do,
then you'll likely have tremendous competitor power, as well as healthy profits.
Supplier Power
Supplier power is determined by how easy it is for your suppliers to increase their prices. How
many potential suppliers do you have? How unique is the product or service that they provide?
And how expensive would it be to switch from one supplier to another? The more suppliers you
have to choose from, the easier it will be to switch to a cheaper alternative. Conversely, the fewer
suppliers there are and the more you rely on them for help, the stronger their position and their
ability to charge you more is. This can impact your profitability, for example, if you're forced
into expensive contracts.
Buyer Power
If the number of buyers is low compared to the number of suppliers in an industry, then they
have what's known as "buyer power." This means they likely find it easy to switch to new,
cheaper competitors, which can ultimately drive down prices. Think about how many buyers you
29
have. How big are their orders? How much would it cost them to switch from your products and
services to those of a rival? Are your buyers strong enough to dictate terms to you? When you
deal with only a few savvy customers, they have more power. However, your power increases if
you have many customers and little competition.
Threat of Substitution
This refers to the likelihood of your customers finding a different way of doing what you do. For
example, if you supply a unique software product that automates an important process, people
may substitute it by doing the process manually or by outsourcing it. A substitution that's easy
and cheap to make can weaken your position and threaten your profitability.
Threat of New Entry
Your position can be affected by people's ability to enter your market. If it takes little money and
effort to enter your market and compete effectively, or if you have little protection for your key
technologies, then rivals can quickly enter your market and weaken your position. However, if
you have strong and durable barriers to entry, then you can preserve a favorable position and
take fair advantage of it. Is it relatively easy for a new competitor to gain a foothold in your
industry or market? How much would it cost, and how tightly is your sector regulated?
Do new entrants come and go regularly? Or is the industry dominated by a few, big players?
Criticism of Porter's Five Forces Model
Despite its enduring popularity, Porter's Five Forces Model has come in for considerable
criticism in recent years. The model was devised during the 1980s which was largely a period of:
• Strong competition.
• Relative market stability.
• Steady technological change
30
Analysis of porters five force model of ACT FIBERNET LTD
Rivalry among existing competitors- The competition is increasing in every industry, and due
to which the hiring process is done quickly and we forget the most vital area to verify the
“Background check” of our Human Capital. It is important and forecasts about the future of the
team or talent.
Every company expects that every individual of the company shall adjust in the working
environment and work with complete compassion. This process helps companies to identify the
past records of the hired talent or where that person will be the right fit. A company can enhance
the skills of the hired talent accordingly.
Threat of new entrants- Every time a business hires a new employee, it is an investment in
time, resources, and money. In an ideal situation, we want to have all the information we need to
assure us that we have made the right decision.
31
Most companies have their own unique set of requirements for conducting background checks
but the primary goal is to have the most accurate overview of a candidate before the contract is
signed and submitted. While the perfect candidate might not exist, a thorough background check
will probably get a business as close as possible to one.
Bargaining power of suppliers- Many businessmen find themselves losing momentum and
hitting a brick wall when it comes to choosing a supplier or distributor for their establishment.
Whether it be manufacturing your product or finding suppliers to purchase your goods, it isn’t
easy to find the genuine ones.
Though many companies earn increased profit margins and reputation by exchanging goods and
services, there exist some companies whose sole purpose is to gain your interest in order to enter
into a transaction with you and disappear with your money. It is necessary to take appropriate
steps to defend your company against such risks. Since such measures can reflect the volume of
your turnover and reputation in the market. It is essential to hire the services of background
verification companies can help you identify those companies with a fake transaction record
before you move ahead and sign bond with them.
Bargaining power of buyers- Buyers need special customization at ACT FIBERNET LTD as
those clients who need special customization turns their face towards the producers very often as
there exist a difficulty among the customer and producers in answering the customer needs,
demands and expectations, so such sort of customization among customers leaves a positive
impact on ACT FIBERNET LTD. When the clients have less information about their own needs,
it leads to fewer negotiation among them and the producers and also the low distributors
dependency factor leads to the less negotiating power of distributors.
Threat of substitute products or services- Substitute products are alternatives to products that
are obviously different but fulfill the same customer needs. The more substitute products, the
easier it is for the customers to switch, thereby leading to a more competitive environment.
Background verification won’t be substituted – it will evolve with the trends of our time: Parts of
background screening have now been “internalized” by clients, and the types of projects are
changing rapidly. Of course, this will mean that some players will win, and some will lose – the
background screening landscape could be drastically different from what it is today.
32
CHAPTER 4
SWOT ANALYSIS
33
SWOT analysis is similar to PEST analysis, which stands for political, economic, social and
technological. PEST analysis lets organizations analyze external factors that affect its operations
and competitiveness.
Strengths
Cutting-edge fiber-optics technology, high-performing cable equipment, a respected brand name,
excellent customer service and a strong sales team are just a few strengths that boost the resource
capabilities of a telecommunication company. These strengths are attributes that enhance the
company's competitive advantage
Weaknesses
Corroded cable lines, slow service and lackluster sales are three weaknesses that can hurt a
telecommunications company. Company weaknesses are competitive deficiencies that place the
company at a disadvantage in the marketplace. If corroded cable lines aren't replaced and slow
service continues, for example, angry customers will switch to a rival telecommunications
company that offers better services.
Opportunities
New technologies, increasing consumer interest and a decrease in competition are just a few
external opportunities that can really help a telecommunications company in the long run.
Opportunities are beneficial, outside events that a company can use to boost its existing
strengths. A telecommunication company keen on rapidly adopting new technologies, for
example, would highly benefit from immediately investing in new fiber optics the moment
they're introduced in the marketplace, especially if they speed up service.
Threats
A sluggish economy, increasing competition and increased government regulations against the
telecommunications industry are just a few external threats that can limit a telecommunications
company's future success. Threats are outside events or influences that create future hurdles for a
company. New rivals that offer customers fast service and cutting-edge technology, for example,
may lure an older telecommunications company's existing customers away, especially if the
older company can't offer the same new features.
34
CHAPTER 5
ANALYSIS OF FINANCIAL STATEMENTS
The financial statements are used by investors, market analysts, and creditors to evaluate a
company's financial health and earnings potential. The three major financial statement reports are
the balance sheet, income statement, and statement of cash flows.
This process of reviewing the statement and allows for better economy decision making.
Financial information about a company’s activities and current status of business.
Area elaborated on the financial statement analysis
1.Management
2.Investors
3.Creditors
4.Customers
5.Employees
• Management
• Corporate social responsibility
• Trade creditors
35
BALANCE SHEET:
A balance sheet portrays the value of assets owned by an organization, liquidity and solvency of
the organization. the balance is utilized to study the ability of the organization in meeting its
financial goals.
TABLE 1: TABLE BALANCE SHEET
ASSETS
TOTAL NON-CURRENT ASSETS 1,299.15 1,142.63 1,115.52 1,019.82 1015.82
TOTAL CURRENT ASSETS 713.28 587.17 579.39 560.11 333.95
TOTAL ASSETS 2,012.43 1,729.80 1,694.91 1,579.92 1349.77
2000 1721
1474.95 1411.1
1500
INTERPRETATION:
The standalone revenue from operations increased by 29% to 1411.1 Cr for FY 2022-23 as
compared to 1721Cr in FY 2021-22.Internet for FY 2022-23 stood at 319.00 Cr compared to
262.05 Cr achieved in FY 2021-22 reflecting an increase of 22% from previous year. The profit
after tax stood at 128.15 for FY 2022-23 as compared to 22.88 Cr in FY 2021-22 reflecting an
increase of 31% from the previous year.
37
TABLE 2: TABLE SHOWING INCOME STATEMENT
INTERPRETATION:
The standalone revenue from operations increased by 29% to 1,745 Cr for FY 2022-23 as
compared to 1,351.34 Cr in FY 2021-22. EBIT for FY 2022-23 stood at 319.00 Cr compared to
38
262.05 Cr achieved in FY 2021-22 reflecting an increase of 22% from previous year. The profit
after tax stood at 128.15 for FY 2022-23 as compared to 97.88 Cr in FY 2021-22 reflecting an
increase of 31% from the previous year.
167.06
96.12
45.42
36.56
31.02
18.01
15.66
0
-173.51
-217.17
-257.64
-237.92
INTERPRETATION:
From the following cash flow statement, we can understand that the operating profit is come
down in FY 2022 when compare to the FY 2022, 2021, 2020 but more than FY 2019. In
investing activities, we can see that FY 2023 is go down t0 -217.17 when compared to the PY
39
Investing activities. In financing activities, we can see that the FY 2023 is doing well when
compared to the other PY and Net cash flow is doing good in FY 2023 when compared to PY.
C H A RT 4 : S H O W I N G P E R S H A R E R AT I O S
BASIC EPS DIVIDENT SHARE
250
198.26
200
154.35
150
122.22
105.31
100
50
24.21 20.53 18.32 15.44
0
2020 2021 2022 2023
INTERPRETATION:
From the following chart we can observer that Basic EPS of the company is growing every year
and it is doing good in the market. Dividend per share is also growing but we can see that there is
down fall in the share in FY 2021 but has recovered in the following years.
40
TABLE 5: TABLE SHOWING MARGIN RATIOS
16.43
18.67
15.05
17.3
11.37
10.56
9.98
11.6
8.16
6.51
7.24
7.34
7.35
2023 2022 2021 2020 2019
INTERPRETATION:
From the following chart we can observer that in FY 2020 the margin ratio was doing
good but there was a down fall in the next year FY 2021 but started to recover in the
next year.
41
Chapter 6
Learning Experience
• Overall, I found the internship experience to be positive, and I'm sure I will be able to
use the skills I learned in my career later.
• Employees are helpful to clear the doubts.
• Workplace environment is good.
• The best place to work. though I have done only my intern there I have learnt many
things about both subject and professional manner.
• I have learnt many processes about how different departments in the organization
follows and what their role is in the organization.
• In conclusion, I believe I learned a lot from my supervisors and about how the
organization works as a whole.
1.Procurement Department:
• Sourcing and purchasing of products from suppliers.
• Negotiating contracts and ensuring favorable terms.
• Managing relationships with vendors.
3.Marketing Department:
• Creating marketing campaigns to promote products.
• Social media management and digital marketing.
• Customer engagement and loyalty programs.
4.Sales Department:
• Managing online sales platforms.
• Customer service and order processing.
• Monitoring sales performance and setting targets.
42
• Ensuring cybersecurity and data integrity.
7.Customer Service:
• Handling customer inquiries and resolving issues.
• Managing returns and refunds.
• Gathering customer feedback for improvement.
8.Human Resources:
• Recruitment and training of staff.
• Employee engagement and welfare programs.
• Ensuring compliance with labor laws.
9.Quality Control:
• Ensuring the quality of products received from suppliers.
• Implementing quality checks in the warehouse.
• Monitoring and improving overall product quality.
43
FINDINGS OF THE STUDY
AT ACT FIBERNET LTD each individual's employees plays a vital role for the success
and continued existence of a company-
• Majority of the employees are having of years’ experience and half of the employees
are engaged.
• Most of the employees are satisfied with the performance appraisal, incentives.
remuneration and allowance.
• Majority of the employees are satisfied with the working hours, health and safety, and
uniform and work place.
• Majority of the employees are satisfied with the work culture towards subordinates,
salary and perks, and training and safety measures.
• Majority of the employees are satisfied with the carrier support towards growth.
• Majority of the employees are satisfied with the amenities and work environment in the
organization.
• Majority of the employees are satisfied with the co-operation and co-ordination with
company.
• The company is starting to recover from the Covid-19 effects its profits are coming up
and the company is doing well the market.
44
BIBLIOGRAPHY
45
46
1