FINAL U -FONE PROJECT (submited) TO FAROOKI 29.07.2009

Marketing Project

TABLE OF CONTENTS

1. GENERAL FIRM DESCRIPTION ……………………………………4

1.1 Brief History of U-fone in Pakistan…………………………………….51.2 Activity of the Business. …………………………………………….…5 1.3 Starting date of operation ……………………………………………....61.4 General structure of the firm…………………………………………....6

1.5 Strategy at Business Life Cycle .......................................................…...9 1.6 Vision and mission Statement……………………….. ………………...10 1.7 Key products and service of The Firm …………………………………10

2. MARKETING PLAN…………………………………………………..14

2.1 Situation analysis……………………………………………………….152.2 Four P`s and C`s………………………………………………………..152.3 The market –customer end user for the product categories targeted.......182.4 External environment …………………………………………………..212.5 External environment near environment………………………………. 212.6 Critical success factors ………………………………………………....262.7 Situational analysis internal capabilities………………………………..272.8 Problems and opportunities statement………………………………….302.9 Marketing objectives and higher level marketing strategies …………..322.10 Marketing mix strategies……………………………………………...322.11 Proposed marketing mix strategies……………………………………352.12 Implementation plan……………………………………………….….362.13 Evaluation and control processes………………………………….......36

3. SERVICE PLAN………………………………………………...............37

3.1 Who should be involved in communications planning………………....383.2 Overview of classic communication plan………………………………383.3 Situation analysis: external or public environment……………………..393.4 Target audience(s)………………………………………………………403.5 key messages…………………………………………………………....413.6 Strategies……………………………………………………………..…413.7 Tactics…………………………………………………………………..433.8 Timing…………………………………………………………………..433.9 Spokes people…………………………………………………………...43

University of South Asia 1

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4. MANAGEMENT PLAN……………………………………………….....44

4.1 Planning……………………………………………………………........45 4.2 Organizing………………………………………………………………454.3 Staffing………………………………………………………………….454.4 Leading………………………………………………………………….454.5 Controlling…………………………………………...............................464.6 Hierarchy of the company………………………………………………46

5. HRM PLAN………………………………………………………………..47

5.1 Job analysis………………………………………………………….…..485.2 Dress code……………………………………………………………….515.3 Identification badge……………………………………………………...525.4 Job rotation…………………………………………………………...….545.5 Compensation management………………………………………….….555.6 Probation period……………………………………………………...….595.7 Performance criteria……………………………………………………..605.8 Increments………………………………………………………….........615.9 Promotions……………………………………………………………….625.10 Employee’s welfare policy……………………………………………..635.11 Transportation……………………………………………………….….655.12 Credit advance policy……………………………………………….….665.13 Rent and residence………………………………………………….......675.14 Vacation………………………………………………………………...685.15 Health and safety program…………………………………………...…695.16 Insurance policy ………………………………………………………..71

6. FINANCIAL PLAN……………………………………………………….81

6.1 Annual Average Sales, Income & Expense……………………..............826.2 Annual Average Sales & Income Statement… …....................................836.3 Balance Sheet…………………………………………………………....846.4 Balance Sheet - percentage-based……………………………………….856.5 Financial Ratios:………………………………………………………....866.6 Return on sales…………………………………………………………...886.7 Cash Turnover…………………………………………………………....886.8 Inventory turnover……………………………………………………......89


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7. ANALYSIS……………………………………………………………..91

7.1 Pest analysis………………………………………………………...........917.2 Internal factor evaluation matrix (Ife)…………………………………....957.3 External factor evaluation matrixes (efe)………………………………...967.4 Ethical problems the firm is facing…………………………………........977.5 External environments………………………………………...................977.6 key competitors of the company………………………………………....987.7 Distribution channels and buyers…………………………………….…..997.8 End user customers…………………………………………………...….1007.9 Supply…………………………………………………………………....1007.10 Critical success factors…………………………………………….........1007.11 Problems of company regarding customer……………………...............101

8. ADVERTISING AND SALE PROMOTION…………………………102


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GENERAL FIRM’S DESCRIPTION


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1 . G E N E R A L F I R M ’ S D E S C R I P T I O N

1.1 HISTORY OF U FONE IN PAKISTAN:

When U-fone started its operation in Pakistan, at that time three companies were already

running in the market. U-fone is a GSM provider company and at that time two companies

Paktel and Instaphone were operating with their analog technology, also called AIMS and the

one and only GSM Provider Company was MobilinkGSM, which was operating digital

technology. Although u-fone was going to introduce digital technology but the existing

companies were well established in Pakistan and it was a great challenge for the company.

Accepting the challenge of other three companies, u-fone launched to compete them and

survive in the market because it was the second digital technology company after

MobilinkGSM and also had the big shareholders in the market At this time in Pakistan there

are many different companies, which are providing the facility of the cell phones and one of

those companies is U-fone.

1.2 ACTIVITY OF THE BUSINESS:

U-fone is a GSM provider company and its main services or packages are as follows:

Prepay connections

Post pay connections

U fone ABN-Amro credit cards

U-Circle

U Mail

U TOP-UP


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1.3 STARTING DATE OF OPERATIONS:

U-fone launched in Pakistan and started its operation from the capital city “Islamabad” on

29th January 2001, a subsidiary of Pakistan Telecommunication Corporation limited (PTCL)

is the only Pakistani-owned cellular service operator in Pakistan.

1.4 GENERAL STRUCTURE OF THE FIRM:

There is a proper and formalized system of having departments in the Ufone due to which all

the activities are performed in a very good and efficient manner under the observation of the

CEO and the heads of all the departments that are working for Ufone. The ufone follows the

American school of thought. There is centralized approach in Ufone where all the big

strategies are made at the upper level and lower level management just implement those

strategies. According to our observations and findings the operations (including formal and

informal) of the firm are divided into the following categories:

Sales & Marketing Department

Finance Department

Customer Service department

IT Department

Human Resource Department

1.4.1 Sales and Marketing Department:

The Sales and marketing department performs the following functions:

Branding of the Product.

Media Communications.


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Promotions

Retail /Distribution of UFONE

International Roaming.

Franchise Management

Direct Sales

Indirect Sales

Connect Service

Provide quality service.

1.4.2 Finance Department:

They finance department performs the following operations:

Processing of all Connections.

Vetting & Processing of Sales

Facilitation of Sales through daily support.

Vetting & Verification of potential Customers.

Control Inventory.

Improve cash flow through prompt bill collection.

Blocking.

Enhance Credit Limits

Collections

Nationwide market search for available renowned vendors.

Comparison of product quality and standard being provided by different vendors.

Matching the available products with the required specifications & delivery time

Cross examining the quoted prices through the local market.

Negotiating the best deal.

1.4.3 Customer service department:

The customer service department is responsible for:


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1.4.3.1 Operation Performance:

Monitoring Process Performance.

Training.

Incentive Program.

Quality Management

1.4.3.2 Call Centre:

24 hrs self-serving Interactive Voice response.

24 hrs Product/ Account information.

Welcome Calls to New Customer

1.4.3.3 Support Centre:

Centralized back office for CS.

Responds to countrywide correspondence.

Report generation for statistical analysis.

1.4.3.4 Service Centre:

Customer query handling/ resolving walk in problem.

Personalized service to high profile & Corporate customers.

1.4.4 Information Technology Department:

Information technology department of ufone is although a small department of ufone but its

working is very important and it performs the following functions:

Networking.

Operating Systems.

Software Development.

Resource Applications.

Network Security.


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Billing

1.4.5 Human Resource Department:

These are the functions performed by the HR Department:

Job analysisRecruitment.

Policy & procedures development.

Employees Data Management

Employee Benefit & Compensation.

Training & Development

Career Planning

Employee Relations/ Communication.

Retention of Employees.

Employee motivation

1.5 STAGE AT BUSINESS LIFE CYCLE:


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Ufone is moving towards growth position after the recovery period in 200 when the Ufone

faced some problems. Now the Management is fully concentrating to increase its productivity

and to achieve the company’s objectives.

1.6 VISION AND MISSION STATEMENT:

Vision Statement:

To provide excellence to our stake holders so that there is no question about their loyalty to

the company.

MISSION:

To be a superior communications service company in Pakistan which provides the best value

to its customers, employees, business partners and share holders.

1.7 KEY PRODUCTS AND SERVICES OF THE FIRM:

1) Prepaid

2) Post-paid

3) Scratch Cards


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1.7.1 PREPAID:

Introduction:

Ufone Prepay is a Community where sharing is easier, more affordable than ever before; the

fastest growing prepaid community, where you benefit from the best calling and SMS rates.

Ufone prepay provides the following facilities to its users:

Voice Mail: Ufone Voice mail lets you receive and store messages when you are unable to

attend your calls; if your phone is switched off, not responding, busy or out of coverage.

SMS: With Ufone’s Short Messaging Service send unlimited messages to your friends, loved

ones and colleagues

GPRS: With Ufone GPRS you can check your e-mails, chat with friends or browse the

internet from your mobile phone

MMS: With Ufone MMS you can send photographs or video clips to an email or another

Ufone.

International SMS: Send unlimited messages to 449 operators in over 169 countries at

standard SMS rates.

Downloads: Ufone provides a wide range of downloads for your mobile in form of picture

messages, color wallpapers, ring tones, logos etc

For activation of GPRS and MMS service Rs.150 will be deducted only for first time as an

activation charges from the available balance of the prepaid connection.


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1.7.2 POST PAID:

Introduction:

Ufone, firmly believe that it’s all about u! Keeping in mind the customers needs. We are

pleased to introduce Ufone’s new economy based smart postpaid packages. With Ufone’s new

postpaid package, you can be assured of:

Lowest Line Rent options

More Free Outgoing Airtime Minutes

Free SMS

The most affordable recurring outgoing and SMS rates

The free of cost Value added services available for postpaid users are:

Voice Mail: Ufone Voice mail lets you receive and store messages when you are unable to

attend your calls; if your phone is switched off, not responding, busy or out of coverage.

Call Management: With Ufone Postpaid you can avail special services like call waiting, call

conferencing and call forwarding

SMS: With Ufone’s Short Messaging Service send unlimited messages to your friends, loved

ones and colleagues

GPRS: With Ufone GPRS you can check your e-mails, chat with friends or browse the

internet from your mobile phone

MMS: With Ufone MMS you can send photographs or video clips to an email or another

Ufone.


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International SMS: Send unlimited messages to 449 operators in over 169 countries at

standard SMS rates.

Downloads: Ufone provides a wide range of downloads for your mobile in form of picture

messages, color wallpapers, ring tones, logos etc.

Ufone MCN service: Ufone provides another exciting service for its postpaid customer that if

there is outage of service, as your mobile is out of range, switched off or not receiving the

signals, you will get the information of incoming call numbers through an SMS when your

mobile gets the signals.

Markets:

Ufone is performing its operations in the following two markets:

Local

Foreign (International Roaming)

Types of customers

Business class

Individuals

Office employees

From High To Poor Class People

Higher Class Includes

Businessmen

Money Market Dealers

Members & Broker Of All Stock Exchange


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Industrialist

Lower Class Includes

MARKETING PLAN


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2. MARKETING PLAN:

2.1 SITUATION ANALYSIS:

BUSINESS DEFINITION AND SCOPE:

Mission statement:


to its customers, employees, business partners and share holders?

2.2 Four P’s & C’s:

Ufone is also following the 4P’s and 4C’s for developing the best relationships with their

customers.

Product / Customer’s Need:

The Company provides its products according to customer’s needs and wants. Their products

are standardize and pr according to the international standards. They can manufacture their

products as their customer’s required specifications as per standards.

Price / Customer’s Affordability:

Company provides its products to customers at a reasonable price which is affordable for

them. Ufone provides superior quality products so the customers feel relax while paying


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because they know the products which they are purchasing shall provide maximum benefits

for them.

Placement / Customer’s Convenience:

Ufone has many outlets for their customers. But they provide their products to customers at

their doorstep required by them, using their own transport or any other transportation

company. Ufone feels proud to provide their products to their customers timely.

Promotion / Communication with Customers:

Ufone is well known company in telecommunication industry so they need heavy

advertisement through mass media. For promotion of their company and their products they

are going to launch their new website in future and they are using print media for advertising.

Product definition:

All of the products of UFONE are connections and scratch cards that are used by:

No.

Used by Purpose

1. Business Class For the purpose of meeting their high volume of daily calls.

2. Individuals For the purpose of meeting limited number of calls..

3. Stock brokers For the purpose of watching rates through internet by using GPRS.

4. All other segments For meeting their daily requirements.

Product categories:

Ufone basically deals with three types of products.

1) Post paid

2) Prepaid


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3) Scratch Cards

Product categories offered by Ufone and its products competing in those categories:

Postpaid:

Postpay ZLR Postpay Ease

Postpay Value

Postpay Extra

Monlthy Line Rent (Rs.) 0 199 399 999

Outgoing Call Charges (per 30 seconds)

Ufone to Ufone 0.90 0.60 0.50 0.40

Ufone to Other Mobile Operators 1.15 1.10 1.10 0.90

Ufone to PTCL & WLL Network (Rs.)

1.00 0.80 0.70 0.60

SMS Charges

Ufone to Ufone (Rs.) 0.5 0.5 0.5 0.5

Ufone to Other Mobile Operators (Rs.)

1 1 1 1

Free

Free Minutes 0 200 400 1000

Free SMS 0 25 50 100

Security Deposit

Local & Nationwide (Rs.) 750 1,000 1,500 2,500

International Dialing (Rs.) 2,500 2,500 3,000 5,000

International Roaming (Rs.) 15,000 15,000 15,000 15,000

Prepaid:

Ufone Prepay Tariff (Rs.)

Within Ufone Community To Other Networks*

To PTCL

Outgoing Call rates / Peak (7am -10pm) Per Minute

2.50 2.50 2.50

Outgoing Call rates / 1.50 2.50 2.50


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Off Peak (10pm -7am) Per Minute

SMS Per Outgoing Message

50 Paisas 1/- 1/-

International SMS Rs 1.5/-

Ring tones Rs 1.5/-

MMS Per Incoming / Outgoing Message Rs 5/-

GPRS Per Megabyte Rs 15/-

Nationwide Roaming Free

Voicemail Per Minute Rs 1/-

Scratch cards:

Denominations Validity

Rs. 100 6 months

Rs. 250 6 months

Rs. 500 1 year

Rs. 1000 1 year

2.3 THE MARKET – CUSTOMERS (END USERS) – FOR THE PRODUCT

CATEGORIES TARGETED BY UFONE:

There are local as well as global markets, which are targeted by the UFONE for our all product categories:

For All Products of Ufone:

Local Level:

Business class

Individuals

Office employees

Higher Class& Low Class Includes

Businessmen


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Industrialists

Global Market:

Zones Dest ina t ions

zone 1 CANADA/USA (Fixed Line)

CANADA/USA (Mobile)

CHINA (Fixed Line)

CHINA (Mobile)

FRANCE (Fixed Line)

GERMANY (Fixed Line)

HONG KONG (Mobile)

ITALY (Fixed Line)

NETHERLANDS (Fixed Line)

NORWAY (Fixed Line)

SPAIN (Fixed Line)

UK (Fixed Line)

zone 2 AUSTRALIA (Fixed Line)

BELGIUM (Fixed Line)

DENMARK (Fixed Line)

GREECE (Fixed Line)

HONG KONG (Fixed Line)

IRELAND (Fixed Line)

JAPAN (Fixed Line)

KOREA SOUTH (Fixed Line)

MALAYSIA (Fixed Line)

zone 3 BANGLADESH (Fixed Line)

INDIA (Fixed Line)

INDONESIA (Fixed Line)


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KUWAIT (Fixed Line)

QATAR (Fixed Line)

RUSSIA (Fixed Line)

SRILANKA (Fixed Line)

THAILAND (Fixed Line)

UAE (Fixed Line)

UAE (Mobile)

SAUDI ARABIA (Fixed Line)

TURKEY (Fixed Line)

Zone 4 AFGHANISTAN (Fixed Line)

BAHRAIN (Fixed Line)

BAHRAIN (Mobile)

BANGLADESH (Mobile)

INDIA (Mobile)

IRAN (Fixed Line)

KOREA SOUTH (Mobile)

KUWAIT (Mobile)

MALAYSIA (Mobile)

OMAN (Mobile)

SRILANKA (Mobile)

THAILAND (Mobile)

Zone 5 AUSTRALIA (Mobile)

EGYPT (Fixed Line)

FRANCE (Mobile)

IRAN (Mobile)


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2.4 EXTERNAL ENVIRONMENT:

Political factors:

When we talk about the UFONE we see that the political factors affect the organization but in

critical way. UFONE is caring their business both national and international level political

leaders. The policies formed by Government may effect the functions of the company.

Economical factors:

Due to the entry of new companies like Warid, Telenor etc into the market, it has become

possible for different customers to get connections at low prices.

Technological factors:

If new companies offer different and latest technology at lower prices then it will be difficult

for the company to maintain its position in the market.

2.5 EXTERNAL ENVIRONMENT – NEAR ENVIRONMENT:

Market Review:

Markets:UFONE has two targets markets at:

Local Level, and

Global Level.

The Local level markets include the markets in the major cities of the Pakistan, including:


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Local Level:

NORTHAbbotabad Akora Khattak Attock Azakhel

Bagh Bahtar Balakot Balkasar

Bannu Batgram Batkhela Battal

Bazi Khel Bhurban Bunair Chakri

Chakwal Charsadda Chattar Plane Dandot

Dargai Dina Dityalwala Dudhial (Chakwal)

Fathejang Garhi Habibullah German Kalay Gujar Khan

Hangu Haripur Hassanabdal Hattar

Havalian Islamabad Jehlum Jhagra

Jhangira Kahuta Kallar Kahar Karak

Kherimorat Kohat Kund Khairabad Mallangan

Mangla Mansehra Mardan Metra

Mingora & Saidu Sharif

Mirpur (AJK) Murree Muzafarabad

Nowshera Pabbi Peshawar Rawalakot

Sarai Alamgir Shabqadar Shinkiyari Sihala

Sohawa Swabi Tallagang Tarnol

Taxila Thandiani TOPA SAWAN(AJK)

Usterzai

SOUTHBadin Chamman Dadabhoy Dadu

Daharki Dewan City Dumbah Goth Ghotki

Gwadar Hub Hyderabad Jacobabad

Jamshoro Kamber Karachi Kashmore

Kathor Khairpur Khandh Kot Khanpur

Khuzdar Kotri Larkana Liaquatpur

Loralai Matiari Mirpur Khas Mirpur Mathelo

Mithi Moro Naushero Feroz Nawabshah

Nooriabad Pano Aqil Pishin Qasimabad

Qazi Ahmad Quetta Rahim Yar Khan Rohri

Sadiqabad Saeedabad Sajwal Sanghar


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CENTRAL -1Farooqabad Kot Momin Pindi Bhattian Salem

Sukheki Bado Malhi Bhai Pheru Bhera

Chawinda Chunian Daska Dinga

Faizabad Ferozewatwan Ferozwala Gakhar Mandi

Gujranwala Gujrat Hafizabad Jalalpur Jattan

Kamoki Kasur Kharian Kot Abdl malik

Kot Radha Kishan Lahore Lala Musa Laliani

Mandi Bahauddin Manga Mandi Maraka Mora Gandha

Muridkay Narang mandi Norowal Pattoki

Phalia Qila Deedar Singh Rahwali Raiwind

Roshan manika Sadhoki Sambrial Shahdra

Shakargarh Sharaqpur Sheikhupura Sialkot

Warburton Wazirabad Zafarwal

CENTRAL -2Abdul Hakim Adda Laar Ahmedpur East Ahmedpur Sial

Alipur Arifwala Bahawalnagar Bahawalpur

Baseera Bhakkar Bhalwal Bhalwal Sgd Road

Bhawana Burewala Chak Jhumra Chasma

Chayalees Adda Chichawatni Chiniot Chistian Mandi

Chowk Maitla Dajal Dera Nawab DG Khan

DI Khan Dipalpur Faisalabad Fazilpur

Ghazi Ghaat Gojra Gojra Pansera Road Harunabad

Hasilpur Haveli Hujra Shah Muqeem Hyderabad Mankera

Iqbalabad Jahanian Jampur Jaranwala

Jhang Joharabad Kabeerwala Kacha Khu

Kalabagh Kamalia Karor Pakka Kassowal

Khan Garh Khanewal Khanpur Khiddarwala

Khushab Kot Addu Kot Chutta Kotla Mughlan

Leiah Liaqatpur Lodhran Luddan

Machiwal Mailsi Mamun Kanjan Mian Chunnu

Mianwali Muhammadpur Multan Muzaffargarh

Nankana Sahib Okara Pakpattan Pir Mahal


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The Global level markets include the markets in the following Areas:

Only those areas where international roaming facility is available.

Our Customers:

Business class

Individuals

Office employees

From High To Poor Class People

Higher Class Includes

Businessmen



Industrialist

Lower Class Includes

All other segments of the market

Customers Want:

Connectivity

Quality of products

Low Price

Innovative features

Wide Coverage

User Benefits of Product:

Security

Ease of use

Ease of balance check


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Services available for Customers:

Customer Service department

24/7 Help line

User manual (selected product)

Online as well offline help lines (www.ufonegsm.com.pk)

Distribution channels and buyers (intermediary customers):

There are different channels which are used by the U- fone from the franchises to buyers,

including:

Distributors

Retailers

Commission agents

Bulk quantity customers

Franchises

Customers are the most valuable asset of the organization. Success or failure of any Ufone

depends upon the customers.

Three things that effect the organization:

Number of customers

Frequency of purchase

volume of purchase


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Ufone has a lot of customer that can be categorized into the following categories:

Regular customers

Brand loyal customers

Price conscious customers

Quality conscious customers

Availability conscious customers

Promotions conscious customers

Key Customer satisfaction Elements:

Customer satisfaction by the UFONE is ensured by the following views:

The Ufone fulfils the commitment with the customers.

The Ufone delivers the product on time.

Ufone doesn’t want to loss the customers.

The Ufone provides the defects free products to their customers.

The Ufone provides the product to their customer with the respective number that ensures a good recording system in the Ufone.

The Ufone cares for packaging, cartoons, and for item numbers.

The Ufone doesn’t accept the order that they cannot fulfill within time.

The Ufone seeks for qualified supplier

2.6 CRITICAL SUCCESS FACTORS:

There are different critical successes factors of the UFONE and also for its major competitors, which are also include in the CPM.

Product line

Consumer’s convenience

Customer’s satisfaction

User benefits

Competition


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Rebate rate

Internet sale

Technology used for operation

Market share

Global expansion

Local expansion

Piece attractiveness

2.7 SITUATION ANALYSIS – INTERNAL CAPABILITIES:

Non-marketing capabilities:

These are the internal capabilities of the UFONE other than the marketing capabilities, and

these internal capabilities include the capabilities regarding the following:

Financial position

Management & leadership

HRM

R&D

Operations—production

Inter functional coordination

Latest Technology

Availability of different places

Management capabilities:

In the planning phase the CEO of UFONE has well defined his vision, mission, and goals. The

vision and mission statement is given below:

Vision statement:

To provide excellence to our stake holders so that there is no question about their loyalty

to the company


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Mission Statement:


to its customers, employees, business partners and share holders.

As it is cleared by the mission statement that the primary goal of UFONE is to maximize its

sale. And some of the other goals are:

Customer satisfaction in the form of maximum quality.

Use capital intensive machinery.

To produce more employment opportunities for the workers.

To organize or implement his planning, the CEO has hired specialized personals for

managing HR, MIS, R&D, TQM, Sales and Marketing, and Finance. There for the

organization is no fully utilizing its potential.

Leadership capabilities:

In the Ufone there is formal quality council but the top management has set some certain

parameters that fully ensure the role of top manager as a leader who is leading all the

employees and the workers of the organization.

Let’s discuss some elements of leadership in UFONE:

The structure of the UFONE is decentralized.

There is participatory type of management in the UFONE.

The organization is following the concept of management by walking around.

There are well-defined quality policy statement in the form of mission and vision of

the organization.

Top manager as being the leader is well knowledgeable with all type of organizational

activities and with external environment of the industry of the cutlery.

There is effective communication system in the organization.


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Human Resource Management (HRM) capabilities:

The activities regarding the human resource management in the UFONE are performed

formally.

Research and Development (R&D) capabilities:

In the R&D department of UFONE there is a separate department that performs the functions

of research and development.

Marketing capabilities – Management:

Marketing Intelligence:

As the main market of the UFONE is the local market, where the CEO often conducts the

visits and finds information about:

Customer preferences

Customer response

Technological changes

Cultural changes

Distributors’ and retailers’ preferences

Competitor’s strategies

Changes in the market, and etc.

Marketing planning:

The executives of UFONE are doing very well marketing planning. Because they have

planned anything about the market. And their planning is not only limited to the expansion of

their market intermediaries, so that their sales revenue can be increased.


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2.8 PROBLEMS AND OPPORTUNITIES STATEMENT:

The business unit’s capabilities in relation to critical success factors :

CSF Our capabilities

Product line Offer three types of products

Consumer’s convenience Offer a number of user benefits

Customer’s satisfaction Offer a number of services available for customers

Competition Strong competitive position

Rebate rate Receive more than an average

Technology used for production Capital intensive technology

Market share Lower than all other rivals

Opportunities for the business unit to exploit with existing capabilities:

Following are the opportunities for the business unit to exploit with existing capabilities:

Relations with politicians can increase sale of cutlery by Army.

UFONE can give gifts to the politicians as a part of their promotion campaign.

Economy of scale, production in bulk quantity.

Focus on product that has high user benefits

Provide incentives to competitors’ commission agents and whole sellers to increase its

own sale.

Provide brand awareness to the customers through some promotional camp

Opportunities for the business unit to exploit with improved capabilities:

Following are the Opportunities for the business unit to exploit with improved capabilities:

Approach to the products, which other competitions have stopped to deliver due to the

less rebates.


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Keep them updated about the cultural values of other governments through their

distributors and whole sellers.

Promote the items through cultural contest.

Outsourcing from china.

Install latest technologies that are in use in providing services process like CAD

technology, and automation.

Establish a web based e-commerce portal in order to reduce the cost of whole sellers

and distributors.

Downsizing through automation.

Find markets, which are not in the reach of the competitors.

Work in cluster.

Create demand for their product by reaching into more global and local markets.

Offer customization of products through the Internet websites.

Threats, which must be addressed:

Govt. can bane any product.

End of the rebate on any product.

Any product bane due to the cultural limitation.

China in local as well as in global market.

Local distributors are not specialized in their tasks.

Customer preferences are continuously changing.


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2.9 MARKETING OBJECTIVES AND HIGHER LEVEL MARKETING

STRATEGIES:

MARKETING OBJECTIVES:

2007 (July 1 2006, to June 30, 2007)

Revenue Objectives Rs 127 Million

Net profit margin 40 %

PRODUCT-MARKET STRATEGIES:

Strategies for year 2007

Existing products in existing markets (Market penetration)

Expansion in market intermediaries.

Existing products in new markets (Market development)

Enter into the markets of those cities to which competitors have less access, through the links of existing market intermediaries.

2.10 MARKETING MIX STRATEGIES:

MARKETING MIX:

Product Features:

The products of UFONE have a number of features that a competitive company may have not

in their products. It gets competitive edge on quality, because now consumer is rational and he

has moved from price conscious products to quality-oriented products. So, some silent

features of the products of UFONE are:

High speed connectivity

Long life


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Low prices

Innovative features

Features of SMS and MMS

Easy to use

Brands:

Brands of UFONE

Postpaid

Prepaid

Scratch Cards

Prices:

POSTPAID

Postpay ZLR

Postpay Ease

Postpay Value

Postpay Extra

Monlthy Line Rent (Rs.) 199 399 999


Ufone to Ufone 0.90 0.60 0.50 0.40

Ufone to Other Mobile Operators

1.15 1.10 1.10 0.90


1.00 0.80 0.70 0.60

SMS Charges

Ufone to Ufone (Rs.) 0.5 0.5 0.5 0.5


1 1 1 1

Free


Free SMS 0 25 50 100

Security Deposit




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PREPAID

Postpay ZLR Postpay Ease

Postpay Value

Postpay Extra

Monthly Line Rent (Rs.) 0 199 399 999


Ufone to Ufone 0.90 0.60 0.50 0.40

Ufone to Other Mobile Operators 1.15 1.10 1.10 0.90


1.00 0.80 0.70 0.60

SMS Charges

Ufone to Ufone (Rs.) 0.5 0.5 0.5 0.5


1 1 1 1

Free


Free SMS 0 25 50 100

Security Deposit



International Roaming (Rs.) 15,000 15,000 15,000 15,000

U Circle

With Ufone Post pay you can stay in touch with your tight circle of friends and family

because at reduced rates Ufone makes it very affordable and economical..

Friends & Family - FnF

Postpaid ZLR

Postpaid Ease

Postpaid Value

Postpaid Extra

Members (number allowed)

Ufone Friends & Family members

4 4 8 10


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PTCL Friends & Family members

1 1 2 5

Total Friends & Family members

5 5 10 15


Ufone to Ufone

0.4 0.35 0.30 0.25

Ufone to PTCL

0.5 0.55 0.50 0.45

Activation Fee (One Time Charge in Rs.)

50 50 50 50

FnF List change Charges (Per Update in Rs.)

20 20 20 20

2.11 Proposed marketing mix strategies:

These strategies include the following strategies:

Product Strategy

Pricing Strategy

Distribution Strategy

Promotional Strategy

Product Strategy:

Products will be the result of continuous efforts of R&D and products will be coupled with

various benefits and services to the end users.

Pricing Strategy:


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The prices of the products will be the substitute of the quality of the products and this will

really generate superior values for the customers.

Distribution Strategy:

The whole focus in distribution strategy of the organization will be on maximizing the

relations with the intermediaries and will be on entering into the markets to which the other

competitors have less access.

Promotional Strategy:

The products of the UFONE will be promoted directly by giving incentives to the whole

sellers, distributor (Market Intermediaries), by billboards, and also by the print ads.

2.12 IMPLEMENTATION PLAN:

All the marketing strategies specially the marketing mix strategies will be coupled with the

organizational strategies and will be communicated to all the members of the organization in a

way that all the members get motivation and carry all the strategies very seriously because

they should have learned that the organizational performance is totally attached with the

achievement of these strategies.

2.13 EVALUATION AND CONTROL PROCESSESS:

The control process will continue from the start to the end stage of the implementation plan so

that there could not be any problem or error at the end of implementation. And during the

controlling stage the top management follows the concept of management by walking around

(MBWA). So that the interest of the employees can be created in different type of the

activities.

And ultimately getting the desired performance from whole organization, all the employees

will be given incentives due to their glorious efforts.


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SERVICE PLAN


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3. SERVICE PLAN:

3.1 WHO SHOULD BE INVOLVED IN COMMUNICATIONS:

PLANNING:

Several people! In fact, forming a communications planning committee is a critical first step

in developing your plan. A good plan requires broad participation from your organization or

coalition of groups working on the same issue. Try to engage staff, board and volunteers in

the process. If possible, bring an experienced communications strategist in to facilitate

meetings and keep your planning work moving.

3.2 OVERVIEW OF CLASSIC COMMUNICATION PLAN:

All communications work is more art than a science. However, a typical plan outline will

often look something like this:

1. Situation Analysis: Organizational Background

2. Situation Analysis: External or Public Environment

3. Campaign/Organizational Goal and Key Objectives

4. Communication Objectives

5. Target Audiences

6. Key Messages

7. Strategies

8. Tactics

9. Timing

10. Timelines

11. Spokespeople


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In the following paragraphs, we address these typical sections of a strategic communications

plan.

3.3 SITUATION ANALYSIS: EXTERNAL OR PUBLIC ENVIRONMENT

It is important to be aware of the external threats and opportunities to your

organization, to those who may be opposed to your messages, and to have a good

sense of the communications environment in which you will be delivering your

message. Consider these questions:

What is the current local/national perception of your organization, program and/or

issues?

Are you widely seen as a “grassroots” organization?

As a well-funded international advocacy group?

As a statesmanlike or “think-tank” organization?

As radical, or mainstream?

How do you want to be positioned?

Has there been a history of media stories on you or your work?

Letters to the editor?

Talk radio interviews?

Feature stories?

In other words, how exposed is your group?

How has it been positioned within the media to date?

Have any special studies or surveys been carried out affecting your issue area?

Is more research required to understand attitudes and public opinion towards your

issue?

In other words, is it on the public’s “radar screen” or would most

people consider it to be “new”?

Has there been any significant lobbying of your office, in person or through

correspondence?


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What do you want your target audience to do, exactly? What is your “call to

action”?

Do you want your audience to write a letter to a decision-maker?

Do you want them to change a personal behavior?

How will you measure success? What will your benchmarks be?

Is it that 100 people will call you by a certain date?

Is it that you will generate $5,000 in new donations?

Is it that your event will be sold-out?

Do you want to provide your audience with new information?

What do you want them to do with this information?

3.4 TARGET AUDIENCE(S):

Your ‘A’ List, Primary Audiences

Who do you ultimately want to influence?

Name “Business leaders” isn’t good enough.

How can you reach your target audiences?

Does the Minister have an Advisor?

Does the Advisor have Issue Researchers?

Who are they? Know their names. List them in order of priority to

Reaching your goal or key objectives.

Your ‘B’ List, Secondary Audiences

Who supports your work?

And, who is critical of your work?

They are saying and be prepared to respond.

How has each media represented your issue?.

Know who the oppositional reporters are by name. Know when their

Are recipients of your service an audience?

What message do they need?


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Are your organization’s staff, volunteers, donors and friends an audience?

What is the message you need to communicate to them?

3.5 KEY MESSAGES:

There are many ways of communicating about the same issue. It is important to know which

words will resonate with your audiences; which words or ideas the public will embrace. Some

research, such as informal focus group testing or direct mail questionnaires may be required to

fully understand your audiences’ motivations. The results of testing may be unexpected —

even counter-intuitive. Message testing is an important step to ensuring you develop a

successful communications campaign.

What is your “hook”?

What are the specific phrases and words that capture your message most clearly and simply?

Can you state your message in a bumper sticker? State your message in one single sentence.

Any longer, and the thought has not been adequately focused.

3.6 STRATEGIES:

Although it may be tempting, do not start developing your Communications Plan by

identifying strategies. Go through the planning process to first develop or identify goals,

objectives, clear messages and target audiences. You will ultimately develop much more

effective strategies in this way. Media relations are only one kind of strategy, and may not be

the most effective one for your particular issue. Your issue may be advanced more

Effectively, for example, through a single briefing with a key decision-maker, rather than

through a strategy which generates 1000 faxes to his or her office? The strategy you select

depends entirely on the situation, objectives, and a clear understanding of who constitutes

your target audience, and what will move them to act.

Consider the following questions when developing your strategies:

Is your strategy proactive or reactive?

Low profile or high profile?

Local jurisdiction or nation-wide?


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What are the major communications opportunities?

What communications strengths are available in your organization?

Clipping files, strong public speakers, and staff who are well connected in

the community, etc.?

What alliances does your organization have?

Does your approach warrant paid advertising through print, radio and/or TV

(Assuming you have the resources to do so!)?

Who are your opponents?

What do you anticipate their key messages will be in response to your

Release?

How will you respond?

What are the potential weak points in your argument or story?

How creative can you be?

Does your strategy warrant the development of a specific Media Strategy?

Which kind of media coverage will result in the greatest impact on

decision-makers?

Is the issue big enough, newsworthy enough to warrant a press

conference? An exclusive? With whom?

Should your story be delivered in a media briefing with specific reporters invited? An

editorial board meeting with one media outlet?

Can your story be made visual? Are there ways in which your story could be staged, presented

and/or supported by visual materials?

When should your release be timed? How does it fit with other current

events? What are current editorial priorities?

If a government official could be asked by the media to respond to your release, should you

inform that official? How much time will you give them? Remember that government has

communications staff and they may find it in their interest to undermine your message.


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3.7 TACTICS:

There are literally dozens of methods to reach an audience. In selecting and priorizing

your tactics, consider these questions:

How big is your budget?

What personnel resources are available to you?

How much time will they be required to spend on communications efforts?

Is this reasonable given their current work expectations?

In brief, how do you plan to deliver your key message(s) to your target audiences?

session, backed up by a briefing kit. Steps could include:

preparing a Question & Answer document;

· doing background research on the political environment around your issue;

knowing when major decisions about your issue or policies related to your issue will be

made.

3.8 TIMING:

Timing refers to the natural links onto which you can hook your communications. For

example, if the government will be making budget decisions that will impact your issue area,

be prepared to respond. Be proactive and contact media and assistants to the Minister before

the decision and announcements are made. Does your issue have natural links to stories

around specific holidays? Plan out your activities well in advance of the holiday you are

hooking your campaign on.

3.9 SPOKES PEOPLE:

Determine who within your group will project the most credible voice to your key audiences.

You may want to train one person to address the government and editorial boards, and another

to share your message with stakeholders.


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Management Plan


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4. MANAGEMENT PLAN:

In Ufone the management used managerial functions mostly according to the American

School of thought.

4.1 PLANNING:

Top management consists of Chairman, Managing Director and Executive Director is

involved in the decision making .The Managing Director have the authority to take decision.

Mostly operational and managing decisions are taken by Managing Director. Managers have

to follow and implement the decision immediately.

4.2 ORGANIZING:

Managers are individually responsible for their decision. The Management has a check on the

employees. The structure of the organization is mechanistic because decision flow from the

Top to Bottom. There is lack of common organizational culture.

4.3 STAFFING:

The organization wants to hire the experienced people from other companies either skilled or

technically educated. They want to hire high educated employees for their organization,

because promotion is based upon the experience and individual performance. Long term

performance appreciated. Job insecurity is always prevailing in the organization.

4.4 LEADING:


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Mr. Zia-ul-Islam (Managing Director) is leading the organization and acting as decision

maker. He has adopted the directive style for leading because face to face confrontation is

common. Communication takes place from top to bottom.

4.5 CONTROLLING:

Top management controls the organization. Workers are control by supervisors who are

responsible to report the progress. Company focuses to control the individual performance.

Company extensively uses the quality control circles to make high quality products.

4.6 HIERARCHY OF THE COMPANY:


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HRM PLAN


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5. HRM PLAN:

5.1 Job Analysis:

Recruitment Policy:

1-OBJECTIVES:

The policy is intended at identifying and choosing the right hand for the right job and

ensuring an effective and efficient method of recruitment and selection. It is also aimed at

seeking a diversified work force, devoid of any discrimination based on race, color, sex,

nationality, ancestry, religion or disability, in certain cases.

It is the Company’s policy to implement an appropriate; recruitment system based on

Careful determination of the required competency & selection methods with efficient

Means of communication with candidates.

It should be ensured that the policies and procedures regarding hiring comply with the

applicable rules and regulations established by the Government of Pakistan.

Candidates will be selected and the offers of employment will be extended on the basis

of recruitment tests, qualifications, experience, ability, interest, aptitude and

adaptability to the specific job requirements.

All employees involved in the recruitment process will follow and comply with the

necessary employment procedures related to applications, screening, interviews and

job offers.

The salary offered will be within the budget and policy guidelines approved by the

Director Human Resources & Administration, VP Finance/CFO and the President.


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2-POLICY GUIDELINES:

The Sources of recruitment for different job vacancies in “Human Resource Manual”

include:

2.1Current PMCL employees.

2.2 Internal Advertisement.

2.3 Databank.

2.4 Advertising

2.5 Employment Agencies and Consultants.

2.6 Walk in applications.

3-RECRUITMENT AND SELECTION PROCESS


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3.1 External Recruitment:

i. No candidate under the age of eighteen will be considered.

ii. To avoid conflict of interest, candidates will not be considered for a post if

their blood relations work in PTCL-UFONE.

iii. The Head of each department is responsible for understanding the hiring

process and its application. He / She are also responsible for complying with

the procedures established for hiring personnel.

iv. Human Resources jointly with the Department Heads will set the (salary

range) to be offered to the applicant. The HR department is responsible for

providing the Department Heads with the feedback on the status of all salary

offers.

v. Minimum qualifications must be a Bachelor degree or equivalent. A-Level

or equivalent may be considered for certain positions and will be subject to

the approval of the Director Human Resources & Administration.

vi. The Company reserves the right to test potential candidates. Candidates must

be able to successfully complete any job related selection tests given to them.

3.2 Internal Recruitment:

i. Internal candidates must be confirmed employees of UFONE who have

completed one year of service. However they must complete one year of

service in their existing designation / position before being considered as an

internal candidate.

ii. Selected candidates will join the new job/position after getting clearance

from their supervisor and will be on probation for a period of six months.

iii. Any change in designation will not necessarily mean a change in salary and

benefits package.


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.

5.2 DRESS CODE:

1- PURPOSE:

A) To provide all employees with the reasons for suitable attire, acceptability of

appearance and enforcement procedures.

B) For the benefit of the employee and all other employees in the working area. The

employees clothing, hairstyle and jewelry shall not be of the type, which may

interfere with the appropriate performance of his/her duties.

C) Employees whose duties involve Customer contact must maintain a suitable

appearance, as customers judge the Company not only by the quality of product

and services the Company provides, but also by the appearance of the people with

whom they deal.

D) Employees who deal with the general public must maintain a suitable appearance

as their dress and actions reflect upon Company image.

2- PROCEDURE:

1. All female employees shall observe the following dress code:

Shalwar Kameez

Dress Pants / Blouse or Shirt with Jacket or Waist Coat

Skirts / Blouse or Shirt with Jacket or Waist Coat (No minis / long slits)

Light makeup

Light jewelry

No Low Necks

2. All male employees shall follow the following dress code:

Dress shirt / pants / Tie with Jacket or Coat or Sweater

Dress shoes and socks

Well trimmed moustache, hair and beard / “shaved face”


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Hair length should not go below the shirt collar.

3. Head office employees may dress casually on Fridays only.

4. Employees who work on Saturdays, where they have customer contact will

wear Business casual. Business casual is defined as follows:

Dress shirt / pants

Dress shirt / pants /coat

Dress shirt / pants / sweater

Dress shoes and socks

No joggers

No jeans

Dress code for female employees will remain unchanged on Saturdays.

All Officers / Department Heads shall be responsible for the implementation of the

dress code for their employees.

Any employee not abiding by the Dress Code under this Policy will initially be

counseled by his /her immediate supervisor / office manager. Any repeated act will be

reported to the Human Resources Department in writing.

5.3 IDENTIFICATION BADGE:

1- PURPOSE:

In order to ensure that only authorized personnel enter, circulate and leave the work area,

an identification badge system will be utilized. Identification badges will be classified

into three categories:

(1) Permanent Employee,

(2) Visitors

(3) Non-permanent.


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2- PROCEDURE:

A. Permanent Employee’s Badge:

1. Upon appointment, the Human Resources Department will issue a permanent

employee badge.

2. Employees are required to wear the badge when entering or working within the

work premises.

3. When an employee badge is lost, damaged, or stolen, the employee must

immediately report this to the Human Resources Department so that

replacement or corrective measures may be taken.

4. When an employee leaves Ufone, the badge will be turned in before receiving

final check.

B. Temporary Badge:

1. A temporary badge will be issued to employees who have mislaid, lost or have

had their permanent badge stolen until a new badge is reissued. No employees

will be allowed to keep a temporary badge for more than one (1) week.

2. Temporary badges will also be issued to temporary workers, contractual,

contractors and vendors.

C. Visitor Badge:Applicants, interviewees, government officials or any other people visiting work facilities may be

issued a visitor badge upon verification by an authorized person, from the concerned department.

D. Re-issuance of Badge:

In case an employee has lost his / her permanent or temporary employee badge, or it

has been stolen, a nominal fee will be charged for a new badge.


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5.4 JOB ROTATION:

1. PURPOSE:

To give employees an opportunity to grow and gain experience in the organization,

allotting them with more / different responsibilities and transferring them to various

duties.

2. OBJECTIVE:

Job transfers of individuals may be allowed under certain circumstances depending

upon the needs. Such transfers will be handled in coordination with the Director

Human Resources & Administration & other respective Department Heads.

No employee is allowed a job transfer until completion of a minimum of twelve

months service within the same department; without prior approval of the President or

his designee is a must.

Job transfers should be considered when it is more appropriate to move an internal

candidate as opposed to hiring an individual from outside the Company.

When considering a job vacancy, attention should be given to all employees within the

departments of the organization, who may have the qualifications for the position.

Candidates must be evaluated based upon organization hiring plans, job descriptions,

documented performance skills, knowledge & prior experience & education.

A job transfer must be based on approvals of the Department Heads & the Director

Human Resources & Administration.


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5.5 COMPENSATION MANAGEMENT:

SALARY POLICY:

1. OBJECTIVES:

The purpose of this policy is to have salaries subject for review in January of each

calendar year in the light of merit and inflation.

An employee, who is employed on a job with title and specifications, will receive

compensation that is relevant to field experience matching with approved salary structure

of his / her position.

2. POLICY GUIDELINES:

The Company will pay salaries of the employees and all other amounts due to

them during office hours and on the job site as follows:

The Company will open an account for each permanent employee in a bank that will

be credited by his / her salary at the end of each month.

Upon termination of service (end of service), the employee will receive his / her salary

within 15 days up to the time of date of his / her last working day.

Upon resignation, the employee will be paid his / her dues during a maximum period

of 15 days from the date he / she left the job.

3. SALARY ADMINISTRATION PROGRAM:

3.1 SALARY OBJECTIVE:

The salary administration program is designed to meet the following objectives:

Attract & retain the services of competent qualified employees.


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Provide fair and equitable compensation to each employee and to ensure that the value

of each job relative to all other jobs within the Company is established and maintained

on a fair and equitable basis.

Provide annual performance appraisal for employees to improve their job performance

and to encourage them to aspire for promotions to jobs with greater responsibilities i.e.

fairly compensate employees based on individual accomplishments and annual

performance appraisals.

Ensure that salaries are competitive and in line with salary levels that prevail in the

industry.

Instill employee confidence in the Company’s compensation policies and practices.

3.2 SALARY OUTLINE:

The “Basics” of the salary administration program can be summarized in the

following manner;

The Director Human Resources & Administration and the concerned Department

Head will analyze each job classification.

The HR Department determines an appropriate salary range in relation to similar jobs

at other well respected companies (salary survey).

The HR Department will analyze each job and assign a job code, hire rate, minimum,

mid and maximum point rate. (Salary Structure)

3.3 SALARY SCALE:

Each job is assigned a minimum salary, established according to the salary survey

results, which specifies the minimum salary that may be paid to incumbents in each

job.

Minimum through maximum scales is built on a system of mathematical calculations

to allow for overlapping between levels as a result of salary, merit or promotional

increase.


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3.4 SETTING STARTING SALARIES:

Objective:

To ensure that each employee is given the starting salary of the title level in which

his / her position and experience fall. Also to ensure that consideration is given to past

experience and qualifications when setting starting salaries.

Factors to be put into consideration for setting salaries within the range determined by

the Department Head & the HR department.

The starting salary offered to new candidates by UFONE will be dependent on two

factors:

The particular job level for which the job offer is being made.

The candidate’s education, experience and qualifications as compared with the

minimum qualifications required by the job specification.

4. SALARY ADMINISTRATION PROCEDURES:

Human resource department Prepare all documentations affecting salaries that include:

Recruits, transferees and end of service.

Promotion and increments.

Allowances, bonuses and incentives.

Discipline

Prepare the payroll sheet including all details

Review the payroll sheet and documentation affecting salaries

Entry of all salaries based on promotions and Commission

Salary and allowances

Deduction

Review outputs

Prepare salaries sheets of all departments.

Prepare transfers to banks.

Prepare deductions sheets.


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Department-wise/Location-wise payroll summary for accounting treatment

Final approval by the CFO and the Director Human Resources & Administration.

HR will apply necessary procedures to pay salaries to employees.

HR will transfer salary of employees to concerned Bank.

Employee will receive salaries from his / her account.

5. WORKING HOURS:

1. PURPOSE

Hours of work are scheduled to meet the production and work requirements of the

Company, and are in conformance with all applicable local laws and practices.

2. OBJECTIVE:

A) Payroll Month:

The payroll month is on a calendar month basis.

B) Working Hours:

The Company shall determine the hours of work:

Office Hours Operations Center:

Monday through Friday

09:00 am. – 6:00 pm.

Saturday

10:30 am. – 2:30 pm.

Office Hours Head Office:

Monday through Friday

09:00 am – 6:00 pm.

Sixty (60) minutes meals break each day from Monday through Thursday.

Ninety (90) minutes meal / prayer break for Friday.

C) Exceptions:

Employees may be requested to work on any of the holidays or regularly scheduled

day of rest including Saturday/Sunday, if the Company’s business so requires.


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5.6 PROBATION PERIOD:

EMPLOYMENT CONTRACT:

Recruitment of an employee will be finalized in accordance with employment contract

signed (Two Copies with employees signatures) in English. A copy will be handed

over to the employee & a second copy will be kept in his / her service file.

The contract shall outline the employee’s position, salary & benefits he/she will enjoy

& any other necessary statements.

All terms of an employee’s contract will be in effect & enforced as of the date of

starting work by the employee.

The Company can extend the contract for another year if a need is felt.

PROBATION PERIOD OF EMPLOYMENT:

All permanent employees will be on probation for the initial 6 months of employment.

During this period the Company will evaluate the individual’s ability to perform

successfully as a member of the Company.

Ten days before the end of the 6 months probation period, the employee’s immediate

manager will conduct a written evaluation.

The Immediate supervisor of the new employee must complete the performance

evaluation document with a recommendation for continuing or terminating his/her

employment not less than ten days prior to the expiration of the probationary period.

The signature of a Department Head is required in case of termination.

The written evaluation will be sent to the Director Human Resources &

Administration for proper handling.


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5.7 Performance criteria:

PERFORMANCE APPRAISAL POLICY :

1. OBJECTIVES:

The purpose of this policy is to provide a formal review program to evaluate work

performance and to promote communication and discussion of job performance. The

intent of these discussions should be to review current job performance and

responsibilities, set goals and discuss future opportunities with reference to past

performance at ufone.

The Objectives of the Performance Review Program are:

To measure work performance.

To motivate and assist employees in improving their performance and achieving their

personal/professional career goals.

To identify employees with high potential for advancement.

To provide objective information for making decisions on salary increases,

promotions, bonus and transfers.

To identify employees training and development.

To provide a solid path for career planning for each individual.

3. POLICY GUIDELINES:

The performance appraisal is done on an annual basis (from January 1st to December

31st).

Every employee should know what is expected from him / her through direct

supervisors. He / She should participate in & agree with the goals & objectives

set by himself / herself in accordance with the company’s business plans & objective

goals.

Everyone should have the opportunity to perform & develop according to the set

objectives & agreed upon duties. He / she should also expect self-assessment and take


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actions to develop his / her competency level & increase his / her participation in the

achievement of the company’s objectives.

To ensure openness, consistency & objectivity, the agreed competency framework

covering all aspects of the job should be used as the basis for performance planning

appraisals. Accordingly, it should be well known & clear for both the Employee and

the Manager covered.

Department Heads & Managers involved in performance appraisals should be well

trained & familiar with the applied performance appraisal system & the appraisal

interviewing techniques.

The performance evaluation program requires that an annual meeting be held with

each employee; however, Coaching, Counseling and Guidance must be an on-going

process for the desired improvement and development to be achieved.

To give a chance to Subordinates to evaluate their seniors a 360 Degree Evaluation

will be conducted at the time of the Performance Evaluation.

5.8 INCREMENTS:

The Company shall decide at the end of each financial year, according to it’s financial

position, whether it will give increments or not. The increment shall be determined as

a percentage of salaries & distributed among employees in accordance with their

performance appraisal ratings.

For the employee to obtain a salary increase, he should complete one year in the

company service from the date of his / her appointment or the date he/she was given

previous increment & satisfy the condition that his / her performance appraisal rating

for this year is not less than “V.GOOD”.

Once the increment is decided, it shall be effective from January of each calendar year.

5.9 PROMOTIONS:

The Employee shall be eligible for a promotion if he fulfils the following conditions:

Existence of job vacancy.

Fulfillment of the qualifications & experience required for the higher level


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Being evaluated not less than “Very Good” in the last annual appraisal report.

Completing a minimum of one or two years in the current grade. (Exceptions could

take place if a position becomes vacant and an available candidate meets the

requirement for the vacant position)

Promotion should be directly shifted only to the next level from the grade the

employee is currently filling.

The employee shall be given the starting salary of the job he/she is promoted to

starting from the date he/she holds the position. If his / her current salary is equal to or

higher than the starting salary of this post, then he/she shall get an increment equal to

the last increment obtained previously.

In case where more than one employee meets the requirements for promotion to a

higher position, the one who succeeds in obtaining the highest evaluation rating shall

precede the others. If the performance evaluation ratings are equal, then the senior

employee shall be rewarded with the position.

Employees who received disciplinary penalties of five days or have been suspended

from work for five days shall not be entitled for promotion before the elapse of six

months from the date the penalty was inflicted/imposed. In all cases, the employee is

not entitled for promotion during the procedures of disciplinary enquiries until a

verdict has been reached in his / her particular case.

5.9 BONUS:

The employee may receive 1-3 month’s bonus subject to evaluation of accomplished

objectives.

For an employee to be eligible for a bonus, the employee must complete 6 months in

the Company service from the date of his / her appointment.

The bonus shall be effective from January of each calendar year.

An employee who has completed six months but not a full service year during the

period of assessment may receive a prorated bonus payment.


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5.10 EMPLOYEE’S WELFARE POLICY:

MEDICAL CARE

1. OBJECTIVES:

To provide assistance to employees of the Company and their immediate eligible family

members in maintaining acceptable physical fitness and health standards. It is also aimed

at lessening the financial burden of employees and assisting them by providing reasonable

compensation to treat themselves and any dependents for illness or any other ailments.

2.PROCEDURE:

UFONE provides 100% medical insurance to all its permanent employees, their children

and spouse for indoor treatment. The indoor treatment should be done at the specified and

approved hospitals on the panel of the Company at every station.

Medical allowances (cover) will not be given for the following:

Purchase of contact lenses.

Root canal / crowning treatment.

3. HOSPITALIZATION:

UFONE shall provide hospitalization benefits through Group Hospitalization

Insurance coverage for all employees and their dependents.

UFONE shall pay 100% of the premium for employees and dependents. Details of the

Hospitalization Insurance Program will be provided to all employees.

The definition of dependents under this policy is employee’s spouse in case of

marriage and children up to a limit of four till the age of 21 for boys and until marriage

for girls. The Policy covers only 4 Children.


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The maximum amount of benefits payable during the period of cover for one year for indoor

and out door are shown as below:

Plans

Benefits Description

Limits

Room Charges per day A

Rs

Hospital/Surgical Expenses 1500

Limit for Confinement:

Total room rent,

hospital/surgical

expenses per insured

family member.

Complementary

Additional cover for

hospitalization due to

accidental injuries per

insured

65000

25,000

Maternity Expenses per annum

(3 children)

Normal delivery

20,000

25,000

Fatal Disease Exp. Benefit 100000

Any employee benefits under this Insurance Coverage shall terminate when he / she

resigns or service is terminated. The Human Resources Department shall inform the

Insurance Company of the same.

In case of a change of employee’s marital status, the employee shall be required to

inform the Human Resources Department immediately. Same is the case of change in

family status (birth of a child or death of a child / spouse).


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Note: Same medicine if purchased within a month over a value of Rs.500/- or where the

total bill exceeds Rs.800/- for more than one medicine will require diagnosis detail which

should be noted on the prescription by the attending doctor. We may also ask for further

information like lab reports, clinical summary and completion of OP-2 form (if needed).

5.11 TRANSPORTATION:

CAR POLICY:

1. OBJECTIVES

To give higher Management the facility of availing conveyance for their official duties at

Company’s cost.

2. PROCEDURE:

Employees up to the level of Chief Officers and Directors will be provided with a Company-

maintained car with fuel.

For execution of official field duties, employees in any category will be authorized to draw

monthly transport allowance as a part of his/her salary at a predetermined rate.

Chief Officers, Directors and Respective departments will be authorized for

fuel as per the following:

Chairman: (1 Car) Cost of 400 liters of diesel

President: (1st Car) Cost of 400 liters of petrol

President (2nd Car) Cost of 300 liters of petrol

Chief Officers (1st Car) Cost of 350 liters of petrol

Chief Officers (2nd Car) Cost of 150 liters of petrol

Directors: Cost of 200 liters of petrol

Admin Pool Cars Cost of 300 liters of petrol


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Each of these cars will be entitled to Repair and Maintenance as Follows:

Rs. per Month

Chairman 10,000

President 20,000

Chief Officers (1st Car) 10,000

Chief Officers (2nd Car) 5,000

Directors 5,000

3. TRANSPORT FOR OUT-STATION DUTY:

Entitled employees proceeding to another city if using his/her own car can claim for the

allowance prescribed in the Travel Policy.

5.12 CREDIT ADVANCE POLICY:

1- PURPOSE:

To assist UFONE employees in applying for credit facility and define guidelines for

employees in need of salary / house rent advance from Company.

2- OBJECTIVE:

2.1 Loan:

The Company will not extend a loan to any employee.

2.2 Credit Facility:

All confirmed employees may request a comfort letter from the Company when applying

for any credit facility from a financial institution. However, the Company is not

liable for any outstanding dues by the employee. It is the responsibility of the

employee to maintain a good credit rating with the financial institution.

2.3 Salary Advance:

Employees can submit an application for advance amount equivalent to one (1) month’s

gross salary. The total advance amount will be adjusted in the next six months

salary.


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3- PROCEDURE:

3.1 Credit Facility:

A written request should be forwarded to Human Resources Department for issuance of a

comfort letter. The letter will indicate employee’s date of joining the Company,

current designation and monthly salary earned by the employee.

3.2 Salary Advance:

A written request for salary advance amount should be forwarded to the Human

Resources Department with the Department Head’s recommendation. Human

Resources Department will approve and forward the application to the Finance

Department for issuance of advance amount only after the approval from the

President.

The Credit advance will be approved only by the President.

5.13 RENT AND RESIDENCE:

1- PURPOSE:

To establish a uniform policy for providing adequate financial support to those employees

who are being posted / relocated to another city on Company’s request.

2- OBJECTIVE:

The Company shall provide appropriate resources to employees required to relocate on

Company’s request, in accordance with and to the extent of the limits laid down by this

policy. Movement of all Furniture and Appliances will be done on the Company’s

expenditure. The Company will move all Personal belongings of the employees (All Grades)

by rail. In addition the Company will also provide the employee with air tickets for the

Employee, Spouse and Children. These will be allotted as follows:

A. Chief Officer & Directors:

On permanent transfers from one city to another within Pakistan, only if specifically

approved and signed by the President, Directors and Chief’s are entitled to Business

Class Tickets for Self, Spouse and Children for relocation.


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B. Manager’s and below:

On permanent transfers from one city to another within Pakistan, only if specifically

approved and signed by the President and the Director Human Resources &

Administration, Managers and Below are entitled to Economy Class Tickets for Self,

Spouse and 3 Children for relocation.

C. House Rent Allowance:

45 % of 3 months Gross Salary will be given as a House Rent Allowance on the

permanent Transfer of an employee. The Company will deduct this amount in 6 equal

installments.

5.14 VACATION:

1- OBJECTIVE:

UFONE provides all its regular and contractual employees regular annual leave with pay

in order to maintain health, morale and efficiency. This policy outlines the conditions

under which employees become eligible for annual leave with pay.

2. PROCEDURE:

Employees may request for annual leave, by using prescribed forms addressed to their

supervisors and sent for record to Human Resources.

Approval will depend upon the work needs of the department, although the supervisor

must ensure that the employee will have time off within the calendar year following

the vacation eligibility date.

3. EXCEPTIONS:

Any exceptions to this policy must have the prior approval of the President and the

Director Human Resources & Administration.

Any Leave not availed will automatically lapse and will not be carried over to the next

year.


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Exceptions however will only apply to illness, major family problems, etc., which will

be subject to formal approval of Department Head and President.

4. CASUAL LEAVES:

PURPOSE:

While good attendance is essential to the Company to achieve its goals and objectives and

is the key factor used to evaluate performance in determining salary increase and

eligibility for promotion, the Company recognizes the necessity for employees to be

absent from work for reasons beyond the employee’s control. The purpose of this policy is

to set forth the procedures and conditions under which employees may be granted time off

with pay in the event of unusual and justified circumstances.

Casual leave shall be approved in advance

Casual leave cannot be availed concurrently with Annual leave

A total of 7 casual leaves per year are authorized to the employees.

5.15 HEALTH AND SAFETY PROGRAM:

1 .1.PURPOSE:

The safety of employees is everyone’s responsibility. Accidents, precaution and efficient

work go hand in hand. All levels of employees have a primary responsibility for the

safety and well being of all of us.

Therefore, interest in practicing safety prevention must be encouraged by:

Setting good examples

Acting upon safety records

Reviewing safety programs

Holding personal interviews or group conferences

Starting activities that will stimulate and maintain employee’s interests.


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2- MODE OF OPERATION :

A) Safety Committee :

To accomplish the above policy, a Safety Committee will be set-up as follows:

1. President

2. Secretary

3. Member

4. Member

B) Functions of Safety Committee:

The functions of the Safety Committee are:

1. Development of policy recommendations

2. Encouraging safety efforts

3. Proper enforcement of safety needs

4. Frank and constructive discussion on safety programs

5. Cooperation with other Companies

6. Education regarding safety

Objectives of the Safety Committee:

To evaluate and investigate the adequacy of existing safety measures and make

recommendations relating to safety of all employees and visitors and protection of

all Company assets.

C) POTENTIAL HAZARD AREAS:

No place is hazard free. Potential hazard sites include

1. Buildings

2. Electrical Installations

3. Wiring

4. Transformers and Switchboards

5. Roofs


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Catastrophe Hazards happen because of:

1. Structural deterioration

2. Foundation failure

3. Overloading

4. Alteration

5. Fire and Explosions

5.16 INSURANCE POLICY:

1. PURPOSE:

The policy states that UFONE shall provide all employees in the category of Workers as

described by Labour Law, with Group Life and Accidental Death non – contributory, 24

hours insurance coverage. Details of insurance coverage through out Pakistan will be

provided to these employees as under the Labour Laws of Pakistan.

2. OBJECTIVE:

The objective of providing Group Life Insurance and Accidental Death insurance

coverage is to lessen the financial burden of an employee’s dependents in the event of

death of the employee and to provide compensation to an employee.

3. PROCEDURE:

The Human Resources Department shall register new employees on the date of

employment.

All claims arising out of this insurance coverage shall be handled by Human

Resources Department who may require the employee’s dependents (in case of death)

to submit whatever evidence necessary to substantiate the claim.

Any employee benefits under this insurance coverage shall terminate when he/she

resigns or is terminated.

4. RESPONSIBILITY :

The Human Resources Department is responsible for maintaining and revising this

policy.


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FLAWS IN PRACTICE

EXIT INTERVIEW:

Exit Interview Questionnaire:

The purpose of this questionnaire is to help the Company determine the reasons for

staff turnover. The Company appreciates your efforts in answering these

questions openly. Your answers will not be used as part of any decision

regarding future re-employment. All information provided in this form will

remain confidential.

Name: --------------------------------------------------------------------------------------------------

Employee No: --------------------------------- Department: --------------------------------------

Please indicate the reasons of your leaving the job, on scale 1 to 5. Mark 5 as the most

important reasons in your opinion and 1 as the least.

Salary

Promotion/Advancement Opportunity

Job Challenge

Job Location

Work Load

Company Benefits

Working Hours

Relationship with the Supervisor


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Following questions will help us address the areas that need improvement. Please rate

your reactions according to the following point systems:

Excellent 5 Points

Good 4 Points

Satisfactory 3 Points

Fair 2 Points

Poor 1 Point

How would you rate the Company as a place to work?

What is your overall view of the Company’s policies and procedures?

How do you rate the working conditions and physical facilities?

Compared with other Company’s how do you rate our benefits?

How would you rate your the initial training you received?

How do you rate subsequent training opportunities to improve your skills and

opportunities?

How well do you understand the performance standards you were expected to meet?

How well were you informed about the changes that affected your work?

How much of a chance do you feel you had to develop your full potential?

How do you rate your supervisor’s willingness to answer questions and help solve

problems?

To what extent were you encouraged to offer suggestions and improvements?

What level of respect did you hold for your supervisors?

How would you rate the spirit of cooperation and teamwork among the employees in your

department?


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Signature of Employee---------------------- Date------------------

Interview Guide Supervisor

Listed below are some questions, which may be important to discuss with the supervisor

of a resigning employee.

Concentrate on areas of concern that came up in your exit interview meeting with the

employee.

Did you consider the employee’s performance satisfactory or unsatisfactory?

___________________________________________________________________

Were these observations:

Discussed at any time with the employee? Yes / No

Recorded as part of the employee formal annual evaluation? Yes / No

Do you think the employee was assigned to the right position in the Company?

If NO, Why______________________________________________________

Are you aware of the personal problems such as personality conflicts, with others, etc?

Which you feel may have the employee to decide to resign from the Company?

Yes/NO

1. Did this employee ever tell you about concerns regarding discipline process, correct progress, etc.?

Yes/NO

2. Did this employee accept the responsibility well? Yes/NO


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3. Do you think the employee should leave the Company?

If Yes___________________________________________________________

8. Is there any further information, which you can offer that might explain why the employee has resigned?

__________________________________________________________________________________________________________________________________________________

Supervisor___________ Department Head___________ Head of HR__________

Extra Ordinary Findings:

To be completed in by the Human Resources Department, after interviewing the employee and his supervisor.

1. Leaver’s overall impression of the Company.__________________________________________________________________________________________________________________________________________________________________________________________________________________

2. Reasons for leaving.__________________________________________________________________________________________________________________________________________________________________________________________________________________

3. Relationship with manger.__________________________________________________________________________________________________________________________________________________________________________________________________________________

4. Relationship with colleagues.________________________________________________________________________________________________________________________________________________________________________________________________________________


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360 Degree Evaluation Form

Place an "x" in the appropriate boxes for relevant performance topics. Include supporting comments as needed.

Adaptability/Flexibility: Excellent Good Average Bad Very Bad

Remarks

1. Has an inspiring personality.

2. Is open to new ideas.

3. Takes on new work when needed to help the team.

4. Maintains calm, easy to work with, when under pressure.

5. Controls emotions at all times.

6. Listens to minority opinions during discussions.

7. Demonstrates appropriate flexibility as projects and activities progress.

Additional Comments (If any):

Communication: Excellent Good Average Bad Very Bad

Remarks

1. Communicates clearly and directly.

2. Explains things in detail when required.

3. Writing is clear, thorough, and easy to understand.

4. Shares information, ideas with others.

5. Has good listening skills.


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6. Delivers good presentations,

7. Ability to communicate freely with subordinates.

8. Capable of bridging the gap between the authorities and subordinates.

9. Maintains Confidentiality when discretion is required.


Decision Making/Judgment: Excellent Good Average Bad Very Bad

Remarks

1. Makes logical, systematic decisions.

2. Builds consensus for decisions when possible.

3. Can make difficult/unpopular decisions.

4. Considers impact of decisions on others.


Dependability: Excellent Good Average Bad Very Bad

Remarks

1. Meets commitments made to co-workers.

2. Accepts accountability for success and failure.


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Initiative: Excellent Good Average Bad Very Bad

Remarks

1. Takes independent action.

2. Can take initiative at the appropriate time.

3. Seeks out new responsibilities and assignments, volunteers for team projects.

4. Takes initiative to improve own performance.


Creativity/Innovation: Excellent Good Average Bad Very Bad

Remarks

1. Works to identify innovative ideas and approaches for doing a job.

2. Challenges the status quo.

3. Supports change.


Interpersonal Skills: Excellent Good Average Bad Very Bad Remarks

1. Solicits performance feedbacks and handles constructive criticism.

2. Builds strong relationships.

3. Is flexible/open-minded.

4. Exhibits a strong personal discipline.

5. Works well in groups.


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6. Helps resolve conflicts.

7. Encourages collaboration.

8. Works well with other departments.

9. Listens to and respects others' ideas.

10. Shares leadership responsibilities / awards with subordinates when appropriate.

Job Knowledge: Excellent Good Average Bad Very Bad Remarks

1. Has necessary job knowledge.

2. Has necessary technical skills.

3. Keeps job knowledge up to date and looks for learning opportunities.

4. Ability to transform theory into practical form.


Leadership: Excellent Good Average Bad Very Bad

Remarks

1. Can be persuasive and convincing.

2. Has the ability to give instructions clearly.

3. Can motivate and inspire.

4. Can both lead and let others lead.

5. Can inculcate drive and motivation in subordinates.

6. Exhibits leadership qualities, and can carry along the team.

7. Can maintain order and


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discipline in others.

8. Can chart out a career plan and the requisite training for his / her juniors.

9. Provides regular feedback regarding a subordinate’s performance.

10. Show’s regard for under command’s welfare.

11. Is constructive in his / her approach while addressing differences.

12. When there is a disagreement he works to identify practical solutions.


Planning and Management: Excellent Good Average Bad Very Bad Remarks

1. Develops a meeting agenda.

2. Sets clear goals for meetings.

3. Encourages and balances input.

4. Keeps information organized and accessible.

5. Responds quickly to information requests.

6. Coordinates plan with others.

7. Considers co-workers schedules, commitments when planning.

8. Pays attention to minute details


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FINANCIAL PLAN

6.1 Annual Average Sales, Income & Expense:


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Annual Average Sales, Income & Expense (Pak Rs)

as of: 1/06 1/07 1/08

Sales 1,480,118 1,487,240 1,480,972

Cost of Sales 466,829 478,594 508,122

Gross Profit 1,013,289 1,008,646 972,851

Officers

Comp.

98,132 93,845 130,622

Salary-Wages 302,388 355,599 311,893

Rent 79,334 161,366 81,602

Taxes 54,764 59,787 57,610

Interest paid 15,985 7,882 13,773

Amort. &

Dep.

33,895 29,894 55,833

Advertising 15,393 22,903 14,662

Benefits-

Pension

27,974 30,488 30,804

Other SG&A

Exp.

303,276 172,817 203,337

Net Profit 82,147 74,065 72,716

6.2 Annual Average Sales & Income Statement %:


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Annual Average Sales & Income Statement %

Sales 100.0% 100.0% 100.0%

Cost of Sales 31.54% 32.18% 34.31%

Gross Profit 68.46% 67.82% 65.69%

Officers Comp. 6.63% 6.31% 8.82%

Salary-Wages 20.43% 23.91% 21.06%

Rent 5.36% 10.85% 5.51%

Taxes 3.70% 4.02% 3.89%

Interest paid 1.08% 0.53% 0.93%

Amort. & Dep. 2.29% 2.01% 3.77%

Advertising 1.04% 1.54% 0.99%

Benefits-Pension 1.89% 2.05% 2.08%

Other SG&A Exp. 20.49% 11.62% 13.73%

Net Profit 5.55% 4.98% 4.91%


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6.3 Balance Sheet:

Balance Sheet

Assets as of: 1/06 1/07 1/08

Cash 120,820 107,594 106,519

Receivables 89,460 90,512 81,422

Inventory 37,087 33,373 37,460

Other Current Assets 38,561 44,233 39,323

Total Current Assets 285,928 275,713 264,724

Fixed Assets 280,752 226,719 266,518

Other Non-Current Assets 99,373 80,025 108,470

Total Assets 666,053 582,456 639,712

Liabilities

Accounts Payable 63,626 44,724 38,009

Loans/Notes Payable 18,947 12,314 19,920

Other Current Liabilities 129,859 85,305 97,967

Total Current Liabilities 212,431 142,344 155,896

Total Long Term Liabilities 194,211 160,479 158,477

Total Liabilities 406,642 302,823 314,373

Net Worth 259,411 279,633 325,339

Total Liabilities & Net

Worth666,053 582,456 639,712


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6.4 Balance Sheet - percentage-based:

Balance Sheet - percentage-based

Assets as of: 1/06 1/07 1/08

Cash 18.14% 18.47% 16.65%

Receivables 13.43% 15.54% 12.73%

Inventory 5.57% 5.73% 5.86%

Other Current Assets 5.79% 7.59% 6.15%

Total Current Assets 42.93% 47.34% 41.38%

Fixed Assets 42.15% 38.92% 41.66%

Other Non-Current Assets 14.92% 13.74% 16.96%

Total Assets 100% 100% 100%

Liabilities

Accounts Payable 9.55% 7.68% 5.94%

Loans/Notes Payable 2.84% 2.11% 3.11%

Other Current Liabilities 19.50% 14.65% 15.31%

Total Current Liabilities 31.89% 24.44% 24.37%

Total Long Term Liabilities 29.16% 27.55% 24.77%

Total Liabilities 61.05% 51.99% 49.14%

Net Worth 38.95% 48.01% 50.86%


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Total Liabilities & Net

Worth100% 100% 100%

6.5 Financial Ratios:

quick ratio

Industry

current ratio

Industry


1/06 0.99

1/07 1.39

1/08 1.21

1/06 1.35

1/07 1.94

1/08 1.70

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current liabilities: net worth

Industry

total liabilities: net worthIndustry

current liabilities: inventory

Industry

fixed assets: net worth

Industry

More Financial Ratios:


1/06 0.82

1/07 0.51

1/08 0.48

1/06 1.57

1/07 1.08

1/08 0.97

1/06 5.73

1/07 4.27

1/08 4.16

1/06 1.08

1/07 0.81

1/08 0.82

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6.6 return on sales:

return on sales (%)Industry

University of South Asia

cash turnover (X)%Industry

88

1/06 5.55

1/07 4.98

1/08 4.91

1/06 12.25

1/07 13.82

1/08 13.90

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6.7 Cash Turnover:

6.8 Inventory turnover:

Inventory turnover (X)Industry

University of South Asia

receivables turnover (X)Industry

89

1/06 16.55

1/07 16.43

1/08 18.19

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1/06 39.91

1/07 44.56

1/08 39.54

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ANALYSIS

7.1 PEST ANALYSIS:

POLITICAL EFFECTS:

Generally Ufone did not face any political problem or public pressure as it was a semi

governmental company but at the time of ETI SALAAT takeover of PTCL Ufone also face

some kind of public pressures of becoming privatize but these problems do not effect directly

to the company.

Govt. can play an important role n the development of company but they are giving more

value to foreign investors and give them incentives as well.

The way Ufone launch was remarkable but it loose its progress with the passage of time even

though it is providing good packages and facilities.

Opportunities Rating Threats Rating


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Good investment opportunity

Govt. policies

4-5

4-5

Corrupt people

Sales Tax

Favorism

3-5

4-5

2-5

ECONOMICAL EFFECTS:

Economic factors affect the business to a great deal because inflation, GDP and factors like

foreign exchange affect a business to a great deal. As for as Ufone is concerned, Pakistan’s

economy is not much stable. Most of the mobile users have more than one Sims of different

mobile companies. So in this way it is very difficult to understand which one is loyal to the

company.

In Pakistan due to improper wealth distribution 32 % people are under the poverty line. Most

of the population is this country is middle class. So to be successful, companies have to

provide cheap rates. According to statement of CEO of Warid telecom on GEO T.V; Pakistan

has the cheapest rates in the region in cellular industry.



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Growing economy

Skilled worker

Growing Demand

4-5

3-5

5-5

Intensive competition

Privatization

Inflation

4-5

3-5

5-5

SOCIAL EFFECTS:

As Ufone is Pakistani company, it is socially acceptable. Se people believe that we avail

services of Ufone because it is Pakistani company other says we use it due to good rates. All

the advertisement of Ufone is created in a way that is local and represents the people of

Pakistan.

Now social trends are changing with the emergence of Telenor and Warid. People want to get

Services offered by these international companies.


Brand Loyalty 4-5 User Awareness 3-5


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Good will 3-5

TECHNOLOGICAL EFFECTS:

In Pakistan almost all companies are using the same technology in telecom sector. Due to

technology WAP, MMS, GPRS are introduced and still they are not very popular due to

unawareness of the most of cell phone subscribers.

The big change was occurred when aims technology is converted in GSM technology. But

fortunately Ufone was stared as a GSM technology service provider that’s way it does not

have to bear loses.


High network capacity

High network coverage

VAS

Mobile banking

GPRS

5-5

5-5

4-5

3-5

2-5

Easy information diffusion

Heavy cost on equipment

Power shortage

4-5

5-5

2-5

Natural effects


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Some time due to due to heavy rains or bad weather customer flow decreased. From 50-

60% prospects and customers do not visit franchises or customer care centers.


Increase customer flow 2-5 Decrease customer flow

7.2 INTERNAL FACTOR EVALUATION MATRIX (IFE):

Key internal factors Weight Rating

(U -

fone)

Weighted

Score

Strengths

1 Sufficient Availability of services 0.10 3 0.30

2 Customer Focused Product 0.10 3 0.30

3 Parameters to measure Quality. 0.07 3 0.21

4 Technological Advancement 0.08 3 0.24

5 Skilled and Competent Labor(Blue Collar & White 0.10 3 0.30


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Collar )

6 Marketing Intelligence Position 0.10 4 0.40

Weaknesses

1 Fragmented Industry 0.10 2 0.20

2 Govt. Restrictions 0.06 2 0.12

3 Lower Productivity 0.10 1 0.30

4 Cost Competitiveness 0.10 2 0.20

5 Technological Obstacles 0.09 2 0.18

Total 1.00 2.75

7.3 EXTERNAL FACTOR EVALUATION MATRIX (EFE):

Weight Rating

(U-

fone)

Weighted

Score

Opportunity

1 Expand the international market share 0.10 4 0.40

2 Make Advancement in technology locally 0.10 3 0.30

3 Create the competition in international market 0.07 2 0.14


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4 Research and product development 0.08 4 0.32

5 Installation of composite plant 0.10 3 0.30

Threat

1 Fragmented Industry 0.10 2 0.20

2 Govt. Restrictions 0.06 2 0.12

3 Lower Productivity 0.10 1 0.30

4 Cost Competitiveness 0.10 2 0.20

5 Technological Obstacles 0.09 2 0.18

Total 1.00 2.55

7.4 Ethical problems the Firm is facing:

After the emergence of the new telecom companies in Pakistan, Ufone is the one, which

suffered a lot because most of its employees were taken away by those firms which

offered them good salaries and incentives. Later on Ufone secret information was taken away

by those firms which affected the company a lot.

7.5 External Environment:

Market review:


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In Pakistan cell phone industry is still in progress stage according to CEO of Warid and

Ufone. They believe that for the next two years it will still progress and the subscribers

become doubled from present numbers. Then market becomes stable. But at this time

companies are trying to get more and more customers irrespective of their capacity and this is

bad for customers. It is a dilemma in Pakistan that no one hears the voice of customer.

Customers are frustrated and they are not loyal to any company. Some customers are bound to

use their connection because they believe their switching cost is very high. Companies are

attracting customer with new packages like Ufone has introduce Circle, Telenor has

introduced Talk Chalk, Warid give low rates at family & friends numbers and Paktel also

introduce an interesting package which attract customers a lot. Competition is increasing day

by day. Now the time has become to provide good services to the customers and fulfill all the

promises that have made by the companies other wise they have to face a lot of problems in

long run.


Growing industry

Unaware customer

Penetration is easy

No strict rules

4-5

2-5

3-5

4-5

Intensive competition

High sales tax

4-5

2-5

7.6 Key Competitors of The Company:

Key competitors are as follows

Mobilink


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Warid

Telenor

Paktel

Insta fone

Ufone is facing a lot of competition in Pakistan as well as in other countries in which Ufone

has just started its services. To keep along with competitors and to stay in the market in

Pakistan as well as globally, Ufone should internationalize itself by good advertising and

meeting requirements which are not only required by Pakistani market but also by the other

markets such as Europe and America. According to the report of PTA the market leader is

Mobilink which has 56.5% share. After that Ufone with share of 24 % then Telenor and

Paktel with 6.7% and Warid is second last number with market share of 6.4% and at the end

there is Insta with share of 2.6%.


Coverage

Distribution network

Easy recharge

4-5

4-5

3-5

less profitability

price war

heavy investment on

equipment

4-5

3-5

4-5

7.7 Distribution channels and buyers:


Marketing Project

The company currently has 19 sales and customer care centers across Pakistan. Ufone is

providing its services in 136 cities and the number of franchises in allover Pakistan is 150.

Ufone is considered to be one of the most active and aggressive competitor in mobile sector of

Pakistan. By the end of this year the company forecasts to have 1,000 cell sites in 170 cities

across Pakistan.

All franchises and customer service center have their own sales force team which has the aim

to distribute the Ufone Sims to different shopkeepers, departmental stores, PCOs. In this way

it is easy for the customer to get the sim from any where. Same is the case with card. It is

available in services centers, franchises, and on the places mentioned above. But the easy loud

service is just in franchises and service centers and management is thinking to launch it

locally.

7.8 End user customers:

Currently, with a market share of over 26%, and an aggressive commercial plan, the customer

base has more than tripled from the last fiscal year to over 5 million subscribers.

Today the company has more than 5 million subscribers with services in more than 136 main

cities. The last 3 year’s subscriber’s growth can be seen from above exhibit. The company has

been offering attractive prepaid packages to its customers thus having the highest prepaid

subscribers after Mobilink. The company is offering rates as low as Rs.

2.50 per minute for NWD and Local calls. Similarly, SMS charges are Rs. 0.99 paisa per SMS

to other networks and Rs. 0.49 paisa per SMS on its own network.

7.9 Supply:


Marketing Project

The supply of sim and card is possible through service centers, franchises and through local

distributors like shopkeepers, departmental stores, PCOs etc.

7.10 Critical success factors:

THREATS TO COMPANY:

1. Extensive competition

2. Brand loyalty

3. Entrant of new companies

4. Alternative products

Emerging technologies that are affecting the business are

GPRS

MMS

Mobile Banking

OPPOURTUNITIES:

Growing segment

Pakistani company

7.11 Problems of company regarding customer:

LATE OFFERING OF VAS:

Late offering of value added services which become reason of switching the customers

towards other service providing organization

HIGH RATES:

High rates of post paid connections which moved the customers towards other cellular

companies who offered affordable packages.

LACK OF HOARDINGS:


Marketing Project

Billboards or hoardings play a vital role in intimating the customers, as well as enhancing a

customer’s knowledge regarding a particular product or service.

Similarly, billboards erected at the main roads of the city create awareness in the customers

regarding a particular product or service and thus enhances customer’s knowledge.

But Ufone is little behind from its competitors to have made proper arrangements to create

awareness as well as intimation in the customer.

LACK OF ADVERTISEMENT FOR POST PAID PACKAGES:

Ufone considered its post paid package more important but they did not pay proper attention

upon the advertisement of post paid packages. The only focus upon it’s prepay connections in

there promotions.

STANDARD INTERIOR DECORATION:

All the service centers and franchisee of Ufone are beautifully decorated but they are not

similar which each other to show the standard .So, special attention must be paid to its décor

by keeping in mind the company standard.

Advertising and Sale promotion of u-fone:


Marketing Project


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FINAL U -FONE PROJECT (submited) TO FAROOKI 29.07.2009

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