Business Plan For TeleTouch Ltd (2010-2011) CONTENT BOARD OF DIRECTOR`S........................................ 7 EXECUTIVE SUMMARY.......................................... 8 THE TELETOUCH WAY.......................................... 9 Sales Force Development..................................17 Teletouch Ltd Business Plan for the Financial Year 2010 to 2011.....................................................19 Fund requirement of individual department................20 Teletouch commitment to CSR..............................22 Occupational safety and the environment..................23 The company’s corporate governance philosophy............24 STRATEGIC PLANNING DEPARTMENT.............................25 Components of business Environment.......................26 Strategy planning........................................35 Competition with privatization:-.........................47 One year expantion plan..................................58 SWOT analysis............................................59 OPERATION DEPARTMENT...................................... 61 Service providers........................................65 1
Transcript
Business Plan For TeleTouch Ltd (2010-2011)
CONTENT
BOARD OF DIRECTOR`S..................................................................................................7
support, it would have been very difficult for us to
prepare the paper so meaningful and interesting.
We are also thankful to the librarian, computer lab
in-charge and Print out section of Institute of
productivity and management, Meerut who have
helped us during the course of this project paper
in different ways. We are also thankful to our
whole team for their coordination.
TAPAN RAY
Chairman
TeleTouch limited
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Business Plan For TeleTouch Ltd (2010-2011)
GROUP-9B
TeleTouch Limited
Board of director
Submitted by Tapan Ray
Vikash kumar
Vivek kumar vikrant
Varun sharma
Yamini mudgal
Institute of productivity & management
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Business Plan For TeleTouch Ltd (2010-2011)
EXECUTIVE SUMMARY
TeleTouch’s success is strengthening by strong business principles with respect to its partners and employees, as well as a desire to invest in improving the quality of life of local communities. We are pleased to report that our Company will make further progress during the year 2010-1011, with continuing execution of our strategy and delivery of our financial targets. After the end of two strife-torn years, teletouch is eager for large and large volume of market share of South African telecom industry. we see the that south African economy on recovery path and the positive signs are ,stock market quotes are climbing ,interest rates are low ,diamond industry back to good old days and other industry are back on track . Mr. T T Mboweni, Governor of the South African Reserve Bank, at the ordinary general meeting of shareholders deliver the same views .so all these factors approach towards the healthy and booming economy of South Africa. Therefore, there is ample opportunity for teletouch limited to cash in the situation, and profitably deliver the telecom service to the people of south Africa.
To grab the opportunity of changing economic scenario, and mobile sector growth, management of TeleTouch limited prepare a business plan for the financial year 2010-2011. This business plan will show you that how the different operational areas of teletouch limited have strategic plan to acquire the market share of 11% from present level of 5.5%. In near future board will continue to be alert to other developing market opportunities. Our goal is to be the communications leader in an increasingly connected world. We believe TeleTouch is well positioned to continue delivering value to both customers and shareholders. We would like to thank the Board for its support, insight and counsel in recent years we also like to thank our employees for their ongoing customer focuses and wish them every success in the future.
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Business Plan For TeleTouch Ltd (2010-2011)
THE TELETOUCH WAY
Driving the future of communication
TeleTouch will be one of Africa's most admired Companies and the
pride of South Africa.
TeleTouch a winning company Where everyone is imbued with a
spirit to win, to be passionate in whatever we do, to be the best,
to never give up, to work harder than anybody else, to know that
our best is better than anybody else’s best. Losing is just not an
option. We area team and competition is our sport.
TeleTouch is a respected company And professionalism are the
cornerstones of how we do business. Everyone we deal with is an
equal partner, and we deal straight.
TeleTouch is a caring company Which cares about what it does
and how it does it, which is always fair? And which respects every
single person. Sincerely caring about everything we do every
minute of every day, is our way of life.
TeleTouch believes that it can Enhance people’s lives and
empower them by making it possible for all people in Southern
Africa to have access to mobile telecommunications. We have the
will and the means to do so, and we will strive to do so
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Business Plan For TeleTouch Ltd (2010-2011)
In a sensible manner. We will democratize telecommunications.
TeleTouch will seek out the impossible to do Mobile
communication has been made possible by the most innovative
Technology in the world. This technology will continue to develop
and make possible things we cannot even dream of today. We will
remain the most Competent and innovative of all in this
technology, to not only make every dream Come true, but to
dream the dreams. We will use our passion and our common
Sense to do the impossible. Indeed, we will seek out the
impossible to do.
And in everything we do always also make sure that our
shareholder remains happy with and proud of their investment in
TeleTouch.
TeleTouch is a dynamic company with a pioneering spirit and is
dedicated to growth and increasing value for its shareholders.
Value is created through new investment opportunities with a
view to achieving sustainable returns, enhancement and
advancement of products, services and technologies such as
3G,wiMax as well as investment in the competence of our
employees and the leadership of our management. In order to
achieve continued growth, TeleTouch continues to focus on
expansion on the South African telecom circles and is consistently
evaluating new investment opportunities. However, this expansion
continues to be managed cautiously to comply with good
corporate governance. TeleTouch is well positioned to continue
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Business Plan For TeleTouch Ltd (2010-2011)
expansion into the South African telecom sector, which is
essential for the maintenance of satisfactory levels of growth
In South Africa, We are enjoying 5.5% market share in South
Africa. As marketing department considered the cell-c (TeleTouch
JV partner) which is at the third place enjoying nearly 12% of
market share. It has made a significant growth in short span of
time.
If we considered the present competition in telecommunication
industries, we have many opportunities to grow into the market
by 2010-2011. As cell-c has targeted the young generation we
should also target this young generation and backward population
to grow up at high level into the market because it is the
generation, which use mobile phone services more than the
others. So the segmentation of market should be according to the
population by keeping this in mind that we have to focus more on
the young generation. And we would continue with the same
segmentation of the market.
There are four major cities in South Africa: Johannesburg, Cape
Town, Eastern Cape and Northern Cape. In these four cities
teletouch is going to penetrate because in these cities there are
major populations and approximately 80% of population is literate
and the ratio of fixed line users is also very high. So it is easy to
penetrate over there.
For marketing of any product or service we should considered the
four P’s of marketing i.e. product, price, place and promotion. The
strategic department sets pricing policy of our product and in-
house advertising department is handling the promotion and
about place we have already mentioned. So we are considering all
four p’s in a significant manner.
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Business Plan For TeleTouch Ltd (2010-2011)
In pestle analysis, we have covered the political view, the
economy in South Africa, the social view and technological view,
legal view and environmental view. It is elaborated in the report of
marketing department in which the political summary of South
Africa is represented and in social view, we have covered the
population of South Africa according to the different origins,
cultures, languages and religion of people. There are so many
factors also but the factor which has been considered above our
significant for initial establishment and according to the
technological view as we know that South Africa technology is
advance and people are influenced by Americans.
If we talk about the strengths then for teletouch government is
supporting as which is making its best efforts to improve the
telecom industry. Vodacom and telecom are the threats for the
teletouch.
We have made the five-year plan also for the expansion of our
business in south Africa. We have made our business strategies by
keeping in our mind the FIFA world cup, which is going to be held
in 2010. In order to capture the population, which is not, using cell
phones the marketing department is giving attention more.
Because teletouch is going to make its market share double from
5.5% to 11%. So the strategy needs to be made very effectively
and efficiently and for making strategy of marketing different
aspects are considered like simplicity, brand positioning,
improved and enhanced services, flexible offers, distribution mix,
direct marketing and the most important better customer
services. As we have to keep an other eye to our customer, what
do our customer want, what they need, how they get satisfied etc.
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Business Plan For TeleTouch Ltd (2010-2011)
We are also considering value of money, choice of services,
individuality in product, subject to availability, exclusive SIM CARD
offers which are given in the report of the marketing department
and our different special teletouch services are also given in that
report.
So we are prepare an effective business plan for expansion of our
business from 5.5% to 11% in the fiscal year 2010-2011.
In south Africa For telecommunication business these days,
scaling the heights of success is not always an easy task. This is
because today's corporate world has become extremely complex
and intricate. For telecommunication, business to succeed
nowadays it is very important that the organization's employees
play a key role. This does not only refer to employees doing the
best job possible, but it also means that every employee must be
right for the job that they are doing. What this translates into is
that every employee who is working at his or her own position is
the best possible candidate for that job.
The telecommunications sector continues to be characterized by
intense competition and increasing demands by our customers for
cost effective and value added services. The continued war for
talent in an environment of skills scarcity has compounded this
challenge. At the very centre of successfully dealing with these
challenges is the depth and caliber of people we have in the
organization. Harnessing and mobilizing the skills of our
employees is a critical element of growing in a sustainable
fashion.
Key focus of activities
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Business Plan For TeleTouch Ltd (2010-2011)
The key thrust of our Human Resource strategic imperative is
driven by the need to attract, develop and retain high caliber
employees to meet the growth needs of the organization in an
environment where war for talent is fiercer than ever. The past
year the Teletouch focus was the entrenchment of core
leadership practices and skills, the alignment of training to deliver
best in class customer service, the training of our technical staff
with regards to the latest technology reviewing of the reward and
recognition practices to deliver customer centricity and entrench
our employee value proposition, expanding the pool of females in
core areas of the business thereby ensuring gender diversity,
strengthening our employee wellness programme, the rolling out
of learner ships and other skills development initiatives and
refining our recruitment and selection processes.
Our Human Resources strategy continues to be creating and re-
enforcing a compelling value proposition for our employees that
attracts the best talent and retains that talent within Teletouch.
Our focus this year was on honing management skills, succession
And enhancing individual competencies to improve business
performance. We will strive to create a pool of talented and
capable people to meet the future needs of the business including
expansion into the rest of the continent.
Building Teletouch’s Workforce
The department contributes to building Teletouch’s workforce through four key themes:-
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Business Plan For TeleTouch Ltd (2010-2011)
1. Informing people about Teletouch opportunities, employment standards and workplace.
2. Attracting new workforces to Teletouch and workplaces.
3. Developing the skills and knowledge of employee and supporting high performance workplaces.
4. Retaining workers in Teletouch.
With the dedicated and talented staff in Teletouch, I am confident that we will meet the goals and performance targets we’ve established for the department and company.
VALUES AND BELIEFS OF TELETOUCH
Recognition of Potential We see opportunity for everyone.
Respect we treat everyone as we would like to be treated.
Caring we want everyone to do well.
Learning we always strive to improve.
.
Commitment we believe our work makes a difference.
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Business Plan For TeleTouch Ltd (2010-2011)
Self-determination we believe people should make their own decisions.
STRATEGIC PRIORITIES 2010-2011
Through the Department’s review of external opportunities and challenges, the following strategic priorities have been identified For HR department in ensuring Teletouch economic prosperity and productivity:
Building and educating tomorrow’s Workforce Priority
“Building and Educating Tomorrow’s Workforce” is a key focus for 2010 11. The objective of this is to ensure the availability of a skilled and productive workforce to meet Teletouch economic growth, now and in the future.
Employment Standards Linkage
Efforts will be made to ensure that employment standards legislation and programs support the continued productivity of Teletouch workforce while maintaining an effective balance in employer and employee relationships.
Sales Force Development
The efforts associated with the sales Force Development strategic
priority are going to contribute to the Building and Educating
Tomorrow’s Workforce Priority. Partnering with industry,
employers to promote coordinate and support strategies that
foster the growth of the Teletouch sales force through the
development, attraction and retention of skilled and productive
workers are key actions for 20010-11. South Africa is a great place
of opportunities for telecommunication industry. After made joint
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Business Plan For TeleTouch Ltd (2010-2011)
venture with Cell C in South Africa teletouch has made a
significant growth. Cell C which is at the third place is enjoying a
great market share in the market. It has got its license in 2003. In
this short span of time it has made a significant growth.
Numerous studies have demonstrated that effective management
of talent contributes to a company’s bottom line and creates a
sustainable competitive advantage. We believe that the effective
management of talent is embedded in the practices, policies and
values that Teletouch employs in managing its employees.
Application of these principles has created a culture and
environment in which our employee’s thrive.TeleTouch prides
itself as being an employer of choice. We remain committed to
continually raising the bar on people practices, as we
acknowledge the fact that technology is only an enabler and that
wealth creation is driven increasingly by people. The success of
Teletouch depends on enthused, committed and highly talented
employees.
In our latest update on South Africa’s telecommunications market,
we have revised our forecasts for the development of South
Africa’s mobile telephony and broadband internet markets, and
extended our forecasts for these market segments through to the
end of 2011. Teletouch Limited continued the consistent growth
mobile market at the end of March 2010, with a 5.5% share of
market. Other mobile operators with significant market share
include Vodacom, Cell C, MTN and state-owned operator Telkom.
Based on the latest data, it appears that South Africa had 40 mn
mobile subscribers at the end of year 2010. South Africa’s
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Business Plan For TeleTouch Ltd (2010-2011)
telecommunications market contains revised and extended
forecasts for the development of the country’s fixed-line, internet
and mobile telephony services. Our new forecasts reflect Q308
data published by South Africa’s leading telecoms operators,
including fixed-line incumbent Telkom, and the country’s two
largest mobile operators, Vodacom and MTN. South Africa’s
mobile subscriber base grew by 7.3% in the first nine months of
2010. By the end of September 2010, mobile penetration had
reached 97.9%. Although the fourth quarter of the year has
traditionally provided a higher rate of growth, we believe that
subscriber growth in general is slowing significantly. Overall, we
estimate that the sector grew by 10.7% in 2010. By the mid of
2011; the mobile penetration rate had risen to almost 101%.
Meanwhile, in the first half of its financial year (which ended on September 30 2010), fixed-line incumbent Telkom reported that it had 5.5ml fixed access lines in service, down 2.5% year-on-year (y-oy). Despite Telkom’s continued fixed-line losses, our new customer forecast also reflects the fixed-line customers of South Africa’s ‘second national operator’ Neotel, which began offering fixed-wireless services in mid-2010. We believe that the proliferation of fixed wireless services has already started to mitigate the rapid decline of the sector. So we are in a condition to increase our mobile users.
In addition to revising our year-end estimate for the size of the South Africa’s various telecoms market segments at the end of 2010, our new forecasts have been adjusted and extended to the end of 2015.
In our newly updated mobile users for South Africa, we estimate that we have 2.38ml mobile users in operation at the end of 2009; this reflects growth of 5.5% for the last two years. Now we estimate that we are in a condition so that we can achieve 11% market share in the period 2010-2011. We believe that our prediction of 4.8 ml mobile users will be achieved by the end of the year 2011.
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Business Plan For TeleTouch Ltd (2010-2011)
Teletouch Ltd Business Plan for the Financial Year 2010 to 2011Financial Plan
The market and related entry strategy mentioned earlier in this Business Plan is reflected in the assumptions used to build the financial model and corresponding pro-forma financial statements. The management of Teletouch Ltd, believes these projections to be on the conservative side and, therefore, very attainable.
Income Statement
The income statement presented here demonstrates the projected results of operations for the period FY 2010 through FY 2011 on a consolidated basis for Teletouch Ltd.
Sources & Uses of Funds
We will be raising the funds from both external as well as internal
sources. Our company might raise new funds from the following
sources:
Equity Shares @ 2R R. 10 million
(Debenture @ 12%) R. 10 mill
Unsecured Loan (Bank) R. 110mill
Secured Loan (African Development Bank) R. 600 mill
Retained earnings profit (Desh ki Awaj from India)
R. 172.8mill
1,025,939,800 -total exp of department
We have profit in 2009-2010 = R 471,294,447
Out of which we are going to invest from last year profit – R132,139,800
Identification of the total fund requirement, broken up into needs of individual department
FUND REQUIREMENT OF INDIVIDUAL DEPARTMENT
IN HOUSE ADVERTISING 200000000
OPERATION DEPARTMENT 400000000
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Business Plan For TeleTouch Ltd (2010-2011)
H.R DEPARTMENT 355148000
STRATEGY DEPARTMENT 10000000
IT DEPARTMENT 26100000
MARKETING DEPARTMENT 10000000
SALES DEPARTMENT 18991800
FINANCE DEPARTMENT 1700000
RESERVE 4000000
TOTAL 1,025,939,800
Strategic Goals
• Switch focus from manufacturing to become a more customer-centric organization
• Build a single, centralized customer database populated with information that extends far beyond basic contact information
• Provide universal access to the system at any time and
from anywhere
• Provide customer segmentation and profiling, lead and opportunity management, sales forecasting, customer order and delivery management, and profitability analysis functionalities for sales and marketing
Results
129% internal rate of return 15% increase in revenue per sales employee 20% increase in remote resolution of service issues per
month 10% increase in revenue per service employee 1% improvement in inventory turns 2-day reduction in order to delivery time Improvement in service for channel partners Enhancement of customer service, which led to improved
customer satisfaction Sharper competitive edge
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Business Plan For TeleTouch Ltd (2010-2011)
The balance sheet related to the projection of Rand 5,757,448,872 for Fiscal Year (FY) 2010 to 2011. This represents Teletouch Ltd able to meet projections based upon its planned growth targets.
License revenues consist of license fees for the company's software. Service revenues consist of fees for customer-defined customization, installation, and product support services. In addition, other lesser service revenues are for maintenance fees and training fees. After establishing the necessary infrastructure in the year 2010to year 2011, Net Profit/Sales will grow in FY 2011Gross margin is projected to stay high from FY 2010 onward and grow in FY 2011 as the company attains economy of scale.
Other Income and Expense are associated with debt service, amortization of excess acquisition costs and interest income.
THE NET PROFIT IN RAND IS R 3,668,038,347
WE ARE REPATRIATED TO INDIA AT THE END OF THE FINANCIAL YEAR R 733607669.4 MILLION RS AND REST WE KEPT THERE FOR FURTHERE INVESTMENT.
We are going to give the dividend 30% of the profit 110, 0411,504.1
Rest of the profit that is 2,567,626,842.9 we will repatriate to India R 770,288,052.87. Rest of money R 1,797,338,790.03 we will utilize to pay interest and for further investment.
TELETOUCH COMMITMENT TO CSRTeleTouch as a South African company and one, which has expanded its footprint into South Africa, believes that it will continue to grow if it operates in functional communities. It firmly believes that social development is not a responsibility that can be handled solely by governments, but needs the cooperation of companies like ours. With this philosophy in mind, TeleTouch established in 2008 the TeleTouch Foundation to coordinate the company’s community upliftment programmes. Over the past few years, Vodacom has invested more than R180 million in various initiatives that are aimed at redressing the effects of social deprivation, particularly in disadvantaged communities of which R20 million was spent during the year under review (2010-11) (shown by other expenses in p&l account)
Strategy
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Business Plan For TeleTouch Ltd (2010-2011)
TELETOUCH Foundation makes an amount available each year for social upliftment for which non-governmental organizations, government departments and civic societies who have projects that meet Foundation criteria within the focus areas, compete. The Foundation augments the funding with in-kind support through the man-hours that some members of staff volunteer in the projects. Projects benefiting children and the youth enjoy priority in Foundation funding..
Focus areas
From the list of challenges facing developing countries, TeleTouch
Foundation chose education, health and welfare as well as safety and security as the main thrust of its activities. This was done to complement government efforts in these areas. The 2003 corporate and social research lists these three areas in the top ten areas that were identified by communities as critical priorities for redress. As a communications technology company, every endeavor is made to use technology to find solutions for the country’s social problems. Strategic partnerships with organizations that share similar objectives are continually sought in an effort to reach as many beneficiaries as possible. TeleTouch South Africa has recently
assumed responsibility for coordinating all CSR activities on a group-wide basis. TeleTouch role in these areas may be described as follows:
Education – to help develop a human resource base for the information communications technology industry;
Health and welfare – to help reduce the impact of HIV/Aids and other diseases in the communities where we do business.
Safety and security – to help counter the effect of criminal activity in the communities where our employees and customers live. The Foundation also considers, to a lesser extent, projects in the areas of arts and culture, community sports and the environment.
OCCUPATIONAL SAFETY AND THE ENVIRONMENTTeleTouch Limited achieved a high rating of 96% following an external audit by DEKRA Germany for fulfillment to South African Health and Safety legislation. The DEKRA environmental prize is oriented towards the environmental protection. All three ISO
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Business Plan For TeleTouch Ltd (2010-2011)
certifications namely ISO 9001 (Quality), ISO 14001 (Environmental) and OHSAS 18001 (Health and Safety), were retained by teletouch limited. A variety of direct engagement programmes have been under review during the course of the year 2009-2010. Their purpose is to be proactively responsive in building channels of communication with individuals and entities that both benefit from, and are impacted by, cellular communications. In this way teletouch limited aims to create a platform that will inform all stakeholders of the issues at large and allow them ,to contribute to the resolution of concern. Ultimately, the Group strives to build an environment that will recognise the drivers governing the demand for operational effi ciencies while also providing the means to allay any attendant public concern through a process of open and honest
dialogue. TeleTouch supports the view of the World Health Organisation (“WHO”) International EMF Project which has concluded that ‘current evidence does not confirm the existence of any health consequences from exposure to low level Electromagnetic Fields (“EMF”).
THE COMPANY’S CORPORATE GOVERNANCE PHILOSOPHY
Corporate governance refers to a blend of law, regulation and voluntary practices that are able to attract capital and talent enable the organization to perform efficiently and ethically, generate long-term wealth and value for all its stakeholders and respect the interests of society as a whole.
At TELETOUCH Limited, we believe in, and abide by, the following principles of effective corporate governance:
Transparency in exposé and communication of relevant financial and operational information.
Accountability, supported by robust internal processes of management oversight and control for monitoring of performance and risk.
Integrity and ethics in all our dealings. Balancing the enforcement and protection of the rights of all
stakeholders, thus creating wealth and value in the long term.
Independence of directors in reviewing and approving corporate strategy, major business plans and activities as well as senior management appointments;
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Business Plan For TeleTouch Ltd (2010-2011)
Well defined corporate structure that establishes checks and balances and delegates decision making to appropriate levels in the organization.
We believe that establishing trust with our customers, investors,
employees, business partners, Shareholders and the public at
large require that we go beyond regulatory compliance and adopt
a culture and process for credible self-regulation that transcends
mere form.
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Business Plan For TeleTouch Ltd (2010-2011)
GROUP-6B
TeleTouch Limited
Strategic Planning Department
Submitted by Ramesh Roy
Ravindra Rawani
Rinku Sahu
Ruchi Wadhwa
Sachin Chaturvedi
Institute of productivity & management
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Business Plan For TeleTouch Ltd (2010-2011)
Components of business Environment
Factors affecting Business Environment
Internal environment External Environment
Micro Environment Macro Environment
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Business Plan For TeleTouch Ltd (2010-2011)
1) Demographic Environment
Demographic environment differs from country to country and from place to place within the same country. It may also change over time .Important Demographic factors are:
Age-Composition
Sex- Composition
Economic satisfaction of population
Education level
Family size and structure
Size of population and population growth
Urban –rural population
Demographic environment prevailing in South Africa is given below-
South Africa has an uncommon demographic profile; marked by a heterogeneous population base, In South Africa 79.7% of population consist of black people and represent different ethnic, 9.1 % consist of white people, colored’s 8.8%and 2.4% are categorized as Indian/Asian.
Size of Population-
In 2001 – (44,819,778)
In 2007 – (47,850,700)
Age structure
0-14 years: 32.1% of total percent (Male 7, 17 million/female 7, 21 million) 15-64 years: 63% of total percent (Male 58 million/female 14, 74 million) 65 years and over: 4.9%of total percent (Male 0, 8 million/female 1, 39 million)
Birth rate20.63 births/1,000 population (2001) 17.94 births/1,000 population (2007 est.)
Death rate
12.6 deaths/1,000 population (2006 est.) 22.4 deaths/1,000 population (2007 est.)
Deaths
567,488 (2004) 599,000 (2006 est.)
Net migration rate
-1.56 migrant(s)/1,000 population (2002 est.) -0.08 migrant(s)/1,000 population (2007 est.) 4.98 migrant(s)/1,000 population (2008 est.)
There is an increasing flow of Zimbabweans into South Africa and Botswana in search of better opportunities since the almost complete collapse of Zimbabwe's economy.
Sex ratio
At birth: 1.02 male(s)/female Under 15 years: 1.01 male(s)/female 15-64 years: 0.95 male(s)/female 65 years and over: 0.63 male(s)/female Total population: 0.95 male(s)/female (2006 est.)
Ethnic groups Black 79.5%, White 9.2%, Colored8.9% Asian 2.5% (2006 est.)
Religions
Zion Christian 11.1%, Pentecostal/Charismatic 8.2%,
Catholic 7.1%, Methodist 6.8%, Dutch Reformed 6.7%, Anglican 3.8%, Other Christian 36%, Islam 1.5%, Hinduism 1.2%, Judaism 0.3%, other 2%, unspecified 1.4%, none 14.9% (2001 census)
Languages11 official languages, including Afrikaans, English, Southern Ndebele, Northern Sotho, Sesotho, Swati, Tsonga, Tswana, Venda, Xhosa, Zulu.
Other spoken languages include San dialects, Portuguese, German, Indian (Hindi, Punjabi, Gujarati, Bengali & Telugu) and Tamil (mostly Indian Tamils with a significant population of Sri Lankan Tamil and Far East Tamil).
Literacy
Age 15 and over, can read and write Total population: 86.4% Male: 87% Female: 85.7% (2003 est.) Total population: 85% Male: 86% Female: 85% (2000 est.)
The following is a list of the ten most populous cities/municipalities in the country, with their populations from the 2001
List of largest cities in South Africa by population
High population growth rate indicates cheap labour and more demand in the economy .cheaper labour and growing markets have encouraged many multinational companies to invest in developing countries. If labour is easily mobile between different occupation and religions .labour supply will relatively smooth and wage rates will be lower .If labour is heterogeneous in respect of language, caste and religion, than management of such labour force becomes a more complex task. Education level is also important Demographic factors affecting business. IF public is highly educated, supply of unskilled labour will decrease. On the other hand if education level is low then supply of unskilled labour will increase. If customer is highly educated then business unit must be very particular about the quality of product.
There is no single Culture of South Africa. As South Africa is so ethnically diverse, it is not surprising that there are vast cultural differences as well.
Economic Environment refers to those economic factors which have impact on the working of the business that are-Economic System, Economic policy, nature of economy, trade cycles, economic resources, level of income, distribution of income and wealth, statutory provision. Economic environment Of business is very complex in nature. It keeps on changing with the change in government policies, changes in political situations etc .It mainly has three elements-
Economic Conditions Economic policies Economic system
Economic environment condition of South Africa
South Africa has a two-tiered economy; one rivaling other developed countries and the other with only the most basic infrastructure. It is therefore a productive and industrialized economy that exhibits many characteristics associated with developing countries, including a division of labour between formal and informal sectors and an uneven distribution of wealth and income. The primary sector, based on manufacturing, services, mining, and agriculture, is well developed.
South Africa's transportation infrastructure is among the best in Africa, supporting both domestic and regional needs. OR Tambo International Airport serves as a hub for flights to other Southern African and International countries. South Africa also has several major ports that make it central point for most trade in the Southern African region.
South Africa held its first multi-racial elections in 1994, leaving the newly elected African National Congress (ANC) government with the daunting task of trying to restore order to an economy harmed by sanctions, while also integrating the previously disadvantaged segment of the population into it. As of 2005 agriculture, that once dominated the economy, contributes only 3.4% to the country's GDP, while services now account for 65.1%.
South Africa has rich mineral resources. It is the world's largest producer and exporter of gold and platinum and also exports a significant amount of coal. Another major export is diamonds.
During 2000, platinum overtook gold as South Africa's largest foreign exchange earner. The value-added processing of minerals to produce ferroalloys, stainless steels, and similar products is a major industry and an important growth area. The country's diverse manufacturing industry is a world leader in several specialised sectors, including railway rolling stock, synthetic fuels, and mining equipment and machinery.
South Africa is a member of the World Trade Organization (WTO). U.S. products qualify for South Africa's most-favored-nation tariff rates. South Africa also is an eligible country for the benefits under the African Growth and Opportunity Act (AGOA), and most of its products can enter the United States market duty free. South Africa has done away with most import permits except on used products and products regulated by international treaties. It also remains committed to the simplification and continued reduction of tariffs within the WTO framework and maintains active discussions with that body and its major trading partners.
South Africa has a sophisticated financial structure with the JSE Securities Exchange, a large and active stock exchange that ranks 18th in the world in terms of total market capitalization. The South African Reserve Bank (SARB) performs all central banking functions. The SARB is independent and operates in much the same way as Western central banks, influencing interest rates and controlling liquidity through its interest rates on funds provided to private sector banks. Quantitative credit controls and administrative control of deposit and lending rates have largely disappeared. South African banks adhere to the Bank of International Standards core standards
Telecommunication sector in South Africa
The domestic telecommunications infrastructure provides modern and efficient service to urban areas, including cellular and internet services. In 1997, Telkom, the South African telecommunications parasitical, was partly privatized and entered into a strategic equity partnership with a consortium of two companies, including SBC, a U.S. telecommunications company. In exchange for exclusivity (a monopoly) to provide certain services for 5 years, Telkom assumed an obligation to facilitate network modernization and expansion into unnerved areas. A Second Network Operator was to be licensed to compete with Telkom across its spectrum of services in 2002, although this license was only officially handed over in late 2005 and has recently begun operating under the name, Neotel. Four cellular companies provide service to over 20
million subscribers, with South Africa considered to have the 4th most advanced mobile telecommunications network worldwide. The four cellular providers are Vodacom, MTN, Cell C and Virgin Mobile SA.
South Africa's government is deeply concerned about managing the country's rich and varied natural resources in a responsible and sustainable manner. In addition, numerous South African non-governmental organizations have emerged as a potent force in the public policy debate on the environment. In international environmental organizations, South Africa is seen as a key leader among developing countries on issues such as climate change, conservation, and biodiversity
Socio-Culture Environment
Business is an integral part of society and both influence each other. Culture refers to cultivating behavior of individual with in a society. Following Socio-cultural Factor affect business Environment.
Urbanization
Joint and nuclear family system
Religion
Taste and preferences
Customs and Traditions in society
Health and Quality of life
Languages
Business ethics
The type to be manufactured and marketed, the way in which business should be organized and governed, the values and norms of business are all influenced by social structure and culture of a society. Cultural differences are one of the most difficult problems in international business. Differences in the language are another important problem area in international business.
South Africa has a wide mix of religions. Many religions are represented in the ethnic and regional diversity of South Africa's population.
Political environment
The influences of political Environment on business are enormous. Political environment includes
Political Ideology of Government
Political stability in the country
Foreign policy of government
Defense and military policies
Welfare activities by government
Strategy planningDescribing the nature of the current telecommunication landscape and Teletouch's responses to it is a complex task. Teletouch is a company with enormously intricate systems providing vital services to South Africa, investing billions of Rands to upgrade its network to allow South Africans to communicate with the world whilst it faces pricing pressure and aggressive competitors. I am proud that the Teletouch Group, in the face of increasing competition in the telecommunication sector, has once again delivered continued revenue growth in its mobile business segments.
Teletouch’s vision
To be a leading customer and employee centered91k Information Communication and Technology (ICT) solutions service provider.
Our values
• We are proud and passionate about who we are and what we do;
• We will act with honesty and integrity;
• We promote an entrepreneurial and innovative mindset;
Teletouch now enters a challenging period as its direct fixed-line competitor, mobile operators, VANS and ISPs entering our traditional market resulting in pressure on our product and services pricing. However, Teletouch believes that its commitment to invest in and build the Next Generation Network (NGN) will deliver the required benefits in terms of products and services volumes at a reduced cost.
Teletouch is proud to have on its joint venture strategy with the South Africa based emerging company Cell C during the year. We are excited about the developing opportunities created by the Pan African connectivity and convergence strategies through the joint venture.
Delivering value to our shareholders
The Group is continuing its drive to create value for its shareholders and is pleased to have declared an ordinary annual dividend of 35 percents per share on Dec 2, 2008, it is payable on march 9, 2009, to shareholders recorded in the register of the Company at close of business on 31 march, 2009.
The telecommunication landscape is changing rapidly and requiring Teletouch to invest in the future. Customer demands are increasing and the dynamics of product, price and service levels needs renewed approaches to create attractive value propositions. Competitive forces are also constantly changing as a result of emerging new business models due to the triple and quad-play convergence opportunities and the ability of ISPs and VANS to disinter mediate voice from the fixed-line operator. Reputation and image are increasingly becoming differentiators as the commoditization of voice continues. In addition, regulation is moving towards favoring new entrants and South Africans are demanding a reduction of input costs to stimulate economic growth.
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Teletouch is fully aware of the challenges and is responding innovatively to protect and grow its market while taking telecommunications into the future through investment into its NGN to other parts of Africa.
The tariff reductions were offset in part by volume growth in data services, increased revenue from mobile outgoing calls and rental and service fees.
Offering value to customers
Teletouch's strategy is to become an Information Communication Technology (ICT) solutions provider for global, corporate, business and residential customers, moving up the value chain, providing higher level products and services to our traditional voice and data products. This strategy has been validated by our success in winning large corporate customer accounts and delivering to their ICT requirements from voice products and services to network management.
Teletouch's aim is to enhance the customer experience by introducing innovative value enhancing bundled products and services. In line with this strategy, Teletouch Closer bundles rental, call answer, peak minutes and off-peak minutes into a package which allows the customer to pay a flat monthly charge.
Teletouch Closer now bundles PCs to improve the PC penetration rate in South Africa.
Teletouch's strategic intent to retain and grow revenues has led to the development of flat rate plans to combat the negative minutes of use trend in the consumer market and term and volume discount packages for the corporate market. The sales of the term and volume discount plans have performed exceptionally well. In
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addition, arbitrage opportunities between local and long distance and the gap between Standard time and Call more rates are being reduced while, this tariff rebalancing is taking place.
Through bundled products Teletouch intends to increase its annuity income, create a value comparison for customers and improve our competitive position
Competitive pricing and volume growth
TeleTouch announced an overall average tariff decrease on our regulated basket of products and services.
The reduction of telecommunication costs should allow Telkom to retain existing customers, attract new ones and will benefit all South Africans and contribute positively to the economy.
Multi-Bond
Multi-Bond, a Private Telecommunication Department in Johannesburg with a Unified Access License allowing fixed, mobile, fixed-wireless, international and data service, was created in April 2010 for R1,485 million.
Multi-Bond will focus on brand awareness and promotional campaigns to increase the revenue of fixed-wireless and mobile customers and will offer easy to understand high value bundles, differentiated on voice quality and service.
Broadband Internet with ISP services will target high value bundles and high quality IP NGN services is planned to be launched for Government, Corporate and Business customers. Metro Ethernet services are planned to be deployed in Lagos to attract high-end corporate users and Carrier Class wholesale
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products and services are planned to be introduced by establishing an earth station to provide international connectivity.
Our group strategy
Our vision is to be a leading customer and employee centered information and communications technology solutions service provider. We are focused on balancing the needs of all stakeholders while seeking long term sustainable and profitable growth. Our commitment to the socio-economic transformation of South Africa underpins this strategy.
Teletouch intends to continue to focus on the following primary imperatives to support growth:
Enhancing customer satisfaction through customer centricity;
Retaining revenue and generating long term growth, including expansion in Africa;
Create a Next Generation Network in order to support profitable growth through prudent cost management;
Engaging Teletouch's employees to maintain our competitive advantage;
Repositioning Teletouch stakeholder management to create healthy relationships with all stakeholders; and
Capitalizing on the growing mobile communications and ISP markets in South Africa and other African markets.
Enhancing customer satisfaction through customer centricity
Teletouch's customer service has been under pressure as a result of the reduction in our workforce and increased customer demands. Our continued key strategic focus is improving customer centricity by placing the customer at the centre of decision making in Teletouch. This includes improved service delivery and customer communication processes, end-to-end customer ownership and accountability, actionable customer
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insight, network capacity and reliability and market focused products and services.
Teletouch acknowledges that sustainable and profitable growth in the customer base requires creating and strengthening capabilities focused on managing customer relationships and learning from acquired customer information. Revenue is protected through managing the customer experience and grown through anticipating customer needs.
Retaining revenue and generating growth, including expansion in Africa Teletouch is pursuing growth opportunities beyond South African borders and is developing new offerings in its rapidly transforming markets in order to supplement diminishing voice revenue streams with new ones. Teletouch's aim is to minimize the impact of competition from existing or new entrants and penetrate new markets to supplement diminishing revenue streams.
Teletouch main focus will be to:
grow data and converged internet protocol services throughout South Africa and the African continent;
seek to increase DSL penetration to 15% – 20% of total fixed access lines by the 2011 financial year, by focusing on price, content, speed and channels to market and offering best in class prices for entry-level broadband packages to encourage new entrants into the market;
grow annuity income by increasing sales of bundled product and service packages;
develop new fixed-mobile products;
develop and increase penetration of internet protocol and voice over internet protocol solutions; and
Grow selected wholesale markets.
Teletouch is also seeking new value enhancing opportunities outside South Africa primarily on the African continent to achieve
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continued growth. Teletouch aims to expand its footprint on the African continent, and will want leverages from those investments and will continue to search for other opportunities to extend our presence in Africa.
Creating a Next Generation Network in order to support profitable growth through prudent cost management Teletouch is in the process of establishing the capability and capacity in its network, operating support systems, and information technology and employee skills to develop its NGN. This is expected to facilitate broadband and internet protocol based services in support of Teletouch's growth strategy, while at the same time enabling future cost savings. Teletouch is adopting an evolutionary approach through incremental roll out of a NGN capability and will gradually and selectively be evolving from its dynamic networks.
Teletouch believes that its NGN strategy will enable it to:
offer new products, services and features based on broadband delivered over a NGN, thereby creating new sources of revenue;
remain competitive in a rapidly growing market, where new NGN-based services are created and offer faster time to market;
selectively migrate high revenue and converged services and products towards a network with reduced network infrastructure, thereby minimizing long-term capital expenditure on legacy network infrastructure and opportunities for operating expenditure savings; and
Retain revenue for products, services and features delivered over its current network.
Engaging Teletouch's people to maintain our competitive advantage Teletouch is continuing to develop programmers designed to enhance employee satisfaction in order to sustain a culture of engagement with its people. Teletouch is focusing on:
improving its employee engagement in order to become an employer of choice;
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Business Plan For TeleTouch Ltd (2010-2011)
improving performance and productivity;
building its employee competencies and enhancing its leadership capabilities;
transforming towards a customer centric corporate culture;
detaining top talent.
Repositioning Teletouch stakeholder management to create healthy relationships with all stakeholders Teletouch is seeking to effectively manage stakeholder relationships, particularly with ICASA and Government, as they are critical to future pricing levels.
Capitalize on the growing mobile communications and ISP markets in South Africa Teletouch is urgently re-evaluating its mobile strategy and investigating opportunities with mobile partners to provide an integrated and consolidated service provider model across the fixed and mobile value chain, with integration capabilities into the managed hosting environment.
There can be no assurance that Teletouch's current mobile strategy will change or that Teletouch will be successful in pursuing any new mobile opportunities. Vodacom's strategic objectives are to achieve sustainable growth in profits and cash flow, while maintaining its leading market position in South Africa, growing its operations in other African countries and establishing new operations in select African countries.
Teletouch is also seeking to execute its Pan African hubbing strategy through its investments in Multi-Bond in Johannesburg.
Prospects for the year ahead
Our total revenues in the financial year ending March 31, 2009 are expected to be impacted by tariffs, increased competition and the migration from dial-up services to ADSL services and the introduction of cost-based interconnection.
Our strategic initiatives to improve service levels are expected to result in above inflationary increases in operating expenses, the result being an expected wireless EBITDA margin between 37%
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and 40%, excluding new subsidiaries acquired and any further acquisitions.
Employee expenses are expected to increase to cater for the strong demand for Teletouch's products and services which are expected to increase as prices are further reduced in competitive response actions. In addition, the necessity of retaining our vital skills will put upward pressure on employee expenses.
Total capital expenditure is expected to be between 18% and 22% of revenue.
The mobile business is focused on maintaining its market share and acquiring operations in Africa. Through improved efficiencies, no material changes to the EBITDA margin are expected.
The financial guidance provided above takes into account our drive to deliver cost efficiencies. We are in the process of renegotiating service and equipment contracts, sourcing equipment directly from original equipment manufacturers and improving maintenance support and licensing models.
Direction and time for the company growth:-
Introduction
The purpose of this company is to construct a vision of South Africa telecom sector till the year 2020, i.e., about two decades from now. Development being a continuous process, the choice of the year 2020 is just an arbitrary division of time, a pre-defined time horizon to take stock of what is likely to be achieved.
Pre-portrayal of a stage of development in future requires understanding of the process of change, the dynamics that set law of motion. In attempting to do so, the present paper deciphers the recent past.
Process of change is often volatile and responsive to intervention and global circumstances impacting it. In such an inherently dynamic situation it is convenient to assume that cross-country
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experiences incubate the most recent seeds of change. This is because countries at various stages of development encapsulate developmental experiences that occur with the passage of time.
The present paper isolates the agents of change based on international experiences and situates India in this development continuum. The agents of change, as observed from international perspective, have been broadly categorized into economic structure, competition policy and technology. Economic reforms and liberalization have driven telecom sector through several transmission channels of which these three categories are of major significance.
The paper, as it unfolds, is divided into six sections. Section 1 gives a brief account of the era of competition that was heralded in Indian telecom sector and the results achieved. Analysis of the results, particularly comparison with other major countries intrigued further discussions on economic structure, synergy between telecom and IT, competition policy and technology in sections 2.3.4 and 5 respectively. Logical extension of the arguments, as they developed, extended to a vision for 2020 in each of these sections.
The current policy configurations of India’s telecom sector have been listed in the Appendix.
Economic Structure:-
It has been observed that ‘growth in the number of new telephone subscribers has far exceeded the growth in the global economy’ in the last twenty years. This shows that aggregate growth alone does not determine telecom expansion and there may be need to look at composition of growth as well. However, influence of economic structure on telecom expansion (or for that matter on achievable level of tele-density) does not find explicit consideration in today’s literature on telecom economics as much as the other two factors, i.e., competition and technology. One plausible reason could be because of the importance that has been attached to income gap as a factor explaining digital divide. Moreover, income gap, by itself subsumes differences in certain structural characteristics and therefore diverts the focus of
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attention from structural gap to income gap1. Proponents of ‘income determinism’ may stop short of addressing structural factors because of their primary concern regarding income transfer between the developed to the developing countries as the only way to address the problems of digital divide. Structural issues, on the other hand, are more pertinent to the believers of ‘leapfrogging’ capabilities of the countries who are on the wrong side of the divide. It is for them that the present paper goes on to prove that the effectiveness of direct promotion of telecommunications as a complementary policy to overall macroeconomic reforms will be determined in an important way by how structural issues in the economy are addressed.
Competition Policy
Countries often differed in pattern of sequencing and the speed of liberalization. Competition has been controlled within limit by state policy through licensing of limited number of market players in certain segments granting thereby a period of exclusivity to the operators. Heterogeneity of routes to sect oral reforms, as seen from the examples of some of the Asian countries, classified into different combination of policies and approaches to telecom reform, are presented below:
1. Competition in the fixed line segment with state owned incumbents: China, India and Korea.
2. Privatization of state owned incumbents but deferred competition through exclusivity granted to private investors: Hong Kong, Indonesia, Malaysia, Pakistan and Singapore.
3. Simultaneous introduction of privatization and competition: Japan and Sri Lanka.
4. Opening up of local market to competition first: Hong Kong, India and Singapore.
5. Opening up of competition in the international services first: Korea, Malaysia and the Philippines.
6. Introduction of second domestic long distance carrier first: China
1
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7. The sector ministry exercises regulatory functions: China, Indonesia, Japan, Korea, Malaysia, Taiwan and Thailand.
8. Separate regulator with the responsibility for interconnection lying with the dominant operator while regulator is responsible for arbitration of disputes: Hong Kong, Pakistan and Philippines.
In most countries, restricting the number of licensees or imposing geographic limitations has limited competition. In India, for instance, competition in cellular telephony was allowed in a duopoly mode. This was gradually increased to licensing of four operators in each of the four metros and thirteen circles. Basic service in India is still limited to one private operator competing with state owned incumbents in the circles. Though private sector has been licensed and they are laying infrastructure, metros are still in the grip of public sector monopoly and it will take a while before private competition takes place. Differences in modes of privatization have been observed in other countries. In Thailand, private entry was allowed through Build Operate and Transfer (BOT) mode while the network was controlled by the state. In Vietnam, network was publicly managed with foreign operators participating in provision of training, equipment and supervision through Business Cooperation Contracts (BCCs). China did not allow private entry in the telecom sector and limited competition between state-owned entities of the ministries. Many countries in Asia restricted foreign equity participation. For example, China, India, Indonesia, Korea, Malaysia, the Philippines and Thailand limited foreign equity below fifty per cent.
It is interesting to note that competing technological standards have also limited competitions. Countries are divided in their technical options for mobile networks. While Europe predominantly opted for Global System for Mobile communications (GSM) technology and USA for Code Division Multiple Access (CDMA), within Asia, China, India, Indonesia and Malaysia have opted for GSM in cellular mobile network, whereas Hong Kong, Korea, the Philippines, Singapore and Thailand have opted for CDMA
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However, several countries are now opting for more than one standards. For example, in USA, ‘Companies like AT&T and Cingular are increasingly moving to GSM’2. ‘China is going with some CDMA as well.’3 India is using CDMA in Wireless in Local Loop (WLL). Multiple technological standards fragment market rendering base stations purchased from one company unworkable with switches bought from another company potentially limiting the scope of exploitation of economies of scale that could accrue in a multi-vendor environment.
The way multiple technological standards may confuse regulatory stance leading to market failures can be seen from the recent experiences of several vendors while trying to launch 3G in Europe. European Union has mandated a single technological standard called ‘Wideband CDMA’ (W-CDMA) for 3G coverage. Some of the companies that sought to launch 3G services in September 2002 (deadline stipulated in the licenses for the launch of services) faced the difficulties that networks and handsets of different vendors could not work with each other. ‘CDMA2000’, another standard for 3G, which is working successfully in Asia and USA could not be adopted in Europe because European operators did not have freedom to use ‘CDMA2000’ as per their licensing restrictions.
Which competition policies worked better than others? Literature cites certain developmental experiences to draw conclusions from ‘before and after’ and ‘with or without’ evaluations. The purpose here is to cite these references. In the absence of more detailed information, examination of the validity of such conclusions is not intended here.
Competition with privatization:-
World over, there is an observable trend of growing number of state owned telecom incumbents being privatized. In 2000, from among the member countries of the ITU, those with fully or partially privatized incumbents outnumbered countries with fully state-owned operators. It has been observed that ‘countries with a privately owned incumbent operator account for 85 per cent of
2
3
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the world market by revenue. Those with fully state-owned operators, in mobile as well as fixed lines, account for just two per cent.’
It has been suggested that privatization with competition works better than privatization without competition. For example, Chile started privatization in 1988 but did not limit competition through grant of exclusivity period or licensing obligations. Argentina, on the other hand, privatized in 1990, but granted seven-year exclusivity period, which was subsequently extended by three years. Moreover, Argentina imposed licensing obligation in terms of stipulated growth rate of 6.5 per cent. In the decade following privatization, Chile far exceeded Argentina in terms of network growth. Moreover, starting with half of the tele-density, Chile surpassed Argentina in ten years’ time.
The issue of granting a ‘period of shared exclusivity’ versus ‘allowing more extensive market entry’ has been discussed in the literature. Experience of
UK has been cited in this context. Telecom expansion was reportedly much more rapid in the United Kingdom (i) after the expiry of exclusivity period from 1982-90, that was granted to Mercury, the second operator and (ii) after cable TV operators were permitted to offer tele-services4. Therefore, it was concluded that open competition was better than duopoly. Both USA and Canada lost in terms of their mobile tele-density-rankings in the world in the 90s. Two reasons which have been cited for this are: (i) persistence with regional duopoly for too long, and (ii) slow transition from analog to digital systems.
Notwithstanding the merits of the above conclusions whatsoever, it can be argued that privatization of existing state-owned incumbent operator is not the only way to promote private investment. Opening up of new services not preoccupied by state monopoly can attract private investors, provided regulatory policies do not inhibit growth of private markets in such areas. Growth of private mobile operators in India is a case in point.
4
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However, it is necessary for the regulatory authority to ensure that state incumbent does not inhibit growth of competition. Operationalisation of these ideas is not without hazards. A conflict of common occurrence relates to interconnection issues. Interconnection between state-owned fixed line incumbent network and private mobile network has been a bone of contention in many countries. ‘…incumbent telecommunication operator, which often holds a monopoly…can set the price, typically at a high multiple of the actual cost’.
Technology trend:-
Broadly speaking, technologies of mobile telecommunications and Internet are going to set the contours of further technological progress in the current decade and the next. The most recent initiative aims at convergence of voice and data received from multiple sources, both web based and real time video streams, in mobile handheld devices. Global satellite systems, mobile handsets and calling cards have made virtual presence possible almost everywhere and anywhere overcoming the barriers of distance, topography and remoteness.
There has been phenomenal growth in mobile subscribers in the world in the nineties, increasing from 11 million in 1990 to 941 million by the end of 2001. In 1991, less than one per cent of the world population had a mobile phone. The proportion has grown to the vicinity of one phone per every six people by the end of 2001. Similarly, one-third of the total number of countries of the world had cellular network in 1991. The ratio rose to over 90 per cent by end-2001. Considering that the fixed telephone lines numbered just over a billion in this year, it is likely that mobile phones would surpass fixed line in 2002. It is interesting to observe that China has surpassed USA to become the largest mobile market of the world. In Africa, mobile subscribers outnumber fixed line subscribers in more than half the countries5. Mobile telephony has emerged as the major growth driver in this sector. But for expansion in mobile network, there would have been hardly any growth in telecommunications in many countries. In developed countries, mobile phones have complemented fixed lines whereas in many developing countries with low-level fixed line penetration, 5
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mobile has already surpassed fixed lines filling up supply gaps created due to inadequate growth in the latter. It has been observed that ‘the ability of a country to grow its mobile network to the point where it overtakes the fixed-line network is not a function of its wealth…the crossover point can come as low as a fixed teledensity of 0.4 (for instance, in Malwai) to as high as 75 (the case of Luxembourg) and at any point in between.
There are three important economic implications of mobile explosion for the developing countries. First, by offering a viable techno-economic alternative it is helping in improving telecom penetration bypassing shortages of fixed lines. Consequently, it is bringing along with it all concomitant economic benefits of enhanced telecom accessibility. Second, it is promoting a better entrepreneurial culture and supporting employment generation through proliferation of kiosks. Third, there has been a shift in investment burden from state to private sector and the consumers.
The pace at which 3G is going to proliferate in India will depend upon, inter alia, the market demand for higher bandwidth data. There is a view that perhaps the present demand for high speed data (greater than 64 kbps) can be met cost effectively with General Packet Radio Service (GPRS). While pent up demand for emerging data-needs can be met by using 2G systems like Short Message Service (SMS), GPRS etc., the drive for 3G in Indian market can come from ‘corporate roaming traffic via international visitors’
Substantial work needs to be done in developing 3G relevant contents so as to expand its market. Initiative has already been launched in these areas. For example, Sonera (formerly Telecom Finland) has already launched information portal for mobile phones including Internet localisation services.Future work in this area will be in the form of adding more value to the new services.
Advanced plans are necessary to develop vibrant industries for 3G applications. This may call for investments. A synchronized growth of user industry and 3G technologies would ensure that pay-off period in investment is minimized. Developing knowledge based industry to provide mobile applications would reduce uncertainties regarding return from private investment in 3G technologies.
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As a preparatory groundwork to usher in 3G, it is essential to demarcate areas where massive harmonization efforts would be needed. This would entail upgrading hardware and software for high bandwidth multimedia services. Harmonization would also be needed between the two emerging varieties of CDMA, i.e., wideband CDMA that also supports fixed network and CDMA – 2000. Since it is likely that both these solutions would ultimately support fixed and mobile applications, a marriage of the two would prevent technological fragmentation of the market.
There is need to develop deeper understanding of the evolution of new end-users in the market for the mobile multimedia services. Multimedia service providers will emerge as important shareholders in the network value chain. Countries should envision new partners, new entities, and new stakeholders in the business models. Multimedia portals will be important components of such business models.
There is need for further work to match regulatory perspectives emerging as a part of the convergence regime with the requirements of 3G. Another important area of work will involve further thought over efficient billing model ---- a transition from time dependent billing model to content dependent billing.
The revenue model in the telecommunications sector is going to change significantly in times to come. In many cases PTOs have started offering free Internet to augment revenue from telephone lines6. In the Philippines, a global leader in SMS use in mobile handsets, revenue from SMS contributed a growing share of mobile revenue. SMS proved to be much cheaper than voice call.
The following changes should be adopted in product and services for the teletouch:-
Internet Connectivity:-
South Africa is among the top 20 countries in the world whenranked by the number of Internet nodes. The Internet community in South Africa is about 30 times larger than the next largest African countries, Egypt. Full Internet facilities are available throughout the country with about 150 Internet Service Providers (ISPs) commercially available. The upstream bandwidth is available through the public telecommunication operator, Telkom South Africa, or by leasing part of the bandwidth from Telkom for private networks. The current international bandwidth
6
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stands at 90Mbps, of which 60Mbps are connected directly to the United Kingdom and United States.
The topology of South Africa’s Internet consists of about 10 “top-level” operators each with their own leased line Internet links, as well as a number of “second level” ISPs who share their international bandwidth of the top-level operators. Most of the links are carried through the SAT-2 fibre cable across the Atlantic to the US, but there are also satellite providers. One of the largest top-level operator is the South African Internet Exchange (SAIX).
SAIX is a product of Telkom and is South Africa’s largest, commercial Internet Access Providers. SAIX has the largest Internet network in South Africa, powered by an assortment of Cisco routers. There are 50 Points of Presence (POP) established by SAIX throughout the country, and they are expected to grow to about 80 by the end of 1999. The bandwidth belonging to SAIX is approximately 14.5Mbps with upstream link to the United Sates. Many commercial ISPs in South Africa are subscribers of SAIX, and they range from large companies, such as Global Internet Access, medium-size companies, such as Intekom, and a variety of small companies. SAIX also caters to corporate clients who want to establish their own private Internet network.
Apart from the commercial entities, two non-for profit ISPs are available in South Africa: SangoNet in Johannesburg, and HealthLink in Durban. SangoNet is the first non-academic Internet provider in South Africa and is a member of the Association for Progressive Communication (APC). The focus of SangoNet is to support Internet development within the NGO sector both in the country and in Southern Africa region.
Internet Service Providers:-
There are over 150 Internet Service Providers in South Africa. Here are some of the major ones:
UUNET Internet Africa Internet Solution
LIA
CompuServe
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Global-One IBM Intekom
M-Web CiTEC
Internet policy:-Telkom challenged ISPs on the grounds that Telkom’s monopoly over telecommunication services also extends to Internet access. SATRA consequently analyze the issue and ruled that Internet was under the competitive demand and would not fall under conventional voice network Internet Protocol is consequently provided under Value Added Network Services (VANS) license under section 40 of the Telecommunication Act. However, the legal battle is far from over. Telkom is presently seeking legal advice about lodging an appeal.
Training and Development:-
The Telecommunication Act of 1996 created the Human Resources Development Fund. Telecommunication licensees will contribute to the fund and these contributions will be paid into the National Revenue Fund. The Fund will be used to pay grants and subsidies to “promote the provision of adequately skilled human resources at all levels of the telecommunications sector in numbers sufficient for the telecommunication needs of the Republic.”
The Act enables the payment of the following 11 types of donations, contributions, subsidies and grants by the Director-General:
1. Donations and contributions to the funds of the South African Qualifications Authority
2. Telecommunication education, research and training Training and retraining of unskilled and under-skilled persons Training of artisans and technicians Undergraduate tertiary education.a.the extension or improvement of courses of study and instruction in telecommunication, technology and engineering at universities and technikons (5)
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b.the awarding to students of bursaries, scholarships, prizes and other financial assistance for the purposes of undertaking any such course (6)c.the facilitation of the mobility of teaching staff and students of universities or technikons, between those institutions and the telecommunication industry (7)d.the provision of assistance in the fields of telecommunication, technology or engineering by one university or technikon to another (8)
Broadcasting/Media:-Broadcasting policy:-South Africa’s broadcasting industry is scheduled to be open for competition in the year 2000. One of the areas in broadcasting that will be opened to competition is signal distribution. The Independent Broadcasting Authority (under the Ministry of Posts, Telecommunications and Broadcasting), is responsible for regulating broadcasting signal distribution. IBA interprets signal distribution competition as “the establishment of transmission infrastructure, maintenanceand operation of signal distribution facilities by or on behalf of the broadcasters.”
Broadcasting and media agency:
The Independent Broadcasting Authority (IBA) is the responsible body for licensing media broadcasters. It also formulates the broadcasting policy but this responsibility will be transferred to SATRA once the government approves the merger between SATRA and IBA.
Radio and television: Private TV operator
National radio: SABC Radio
Other radio stations
Private Radios: 5FM, KFM, Radio Pulpit, Radio Oranje, Cape Talk, Highveld Stereo, 702 Talk Radio.
University Radio: 104.5 University of Cape Town Radio, 89.7 Rhodes Music Radio
Amateur Radio: Zululand Amateur Radio Club
Radio Trunking Operators: Q-Trunk, One-2-One, and FleetCall
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Business Plan For TeleTouch Ltd (2010-2011)
Radios per 100 inhabitants: 31.6 (1995)Television per 100 inhabitants: 12.43 (1997)Home satellite dishes/antennas: approximately 78,000 (1996)
The NGN is expected to provide cost-saving opportunities through system efficiencies, automatic assurance and fulfillment, and human capital efficiencies as a result of the pursuit of turnkey capital programmers.
Our mobile review process is gaining momentum. On September 3, 2008, Teletouch issued a cautionary announcement advising shareholders that we are in discussions with Vodafone and MTN.
Teletouch is committed to pursuing a converged future – fixed, mobile and data – to retain and grow our revenue within South Africa. We are working hard to deliver the benefits of the future converged communications standards to our shareholders.
Recognition of the value of our employees
Teletouch's skilled and experienced workforce is our competitive advantage and is also highly attractive to our competition. Rapidly changing technology, increasing specialization and capacity requirements necessitate ongoing development and training of our employees.
Teletouch continues to invest significantly in our employees to ensure that the appropriate business skills are available to meet customer requirements.
For the year ended March 31, 2008, Teletouch spent R20 million on training and development and employees.
Tele touch continues to identify high potential individuals within the Company that can be developed for future senior management positions to ensure all future employee requirements are met. In addition, Teletouch's expansion into other parts of Africa and competitor poaching of our talent, demands that our succession plans are robust.
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Business Plan For TeleTouch Ltd (2010-2011)
The Company has demonstrated the strength of its succession plans by appointing 25 senior manager vacancies from within the Company, utilizing the existing skills and potential of the current employee base, while at the same time increasing the skills pool with outside appointments.
Key NGN and capacity achievements
Increased demand and bandwidth hungry applications have required Teletouch to upgrade its capacity. The following are the key investment areas:
• Teletouch has grown its national and international IP network capacity by 60% to 28.9 Gbps and 60% to 2.4 Gbps, respectively;
• The bandwidth of the local and national transport networks have increased 12% to 5.7 Tbps and 20% to 1.2 Tbps respectively;
• Data networks have seen Diginet and Diginet Plus Services increase bandwidth by 20% to 20.8 Gbps;
• The ISP network has grown 30% to 104 Gbps to cater for increased ADSL services; and
• The SAT-3 cable's capacity has trebled to 120 Gbps from 40 Gbps.
Teletouch company spent R 28,972,288 000 during the year ended financial year 09-10 in line with its 5 year R140 billion capital expenditure programme. Projects are prioritized according to internal rate of return for Teletouch. Existing infrastructure is optimized to decrease capital requirements for service provisioning.
Teletouch Media
On August 31, 2008 Teletouch announced the creation of Teletouch Media (Pty) Limited. Teletouch Media has applied to the Independent Communication Authority of South Africa (ICASA) for a commercial satellite and cable subscription broadcast license. This license will be granted on September 12, 2009. Teletouch Media's vision is to be Africa's "digital media provider of choice" and is developing a set of new digital media services to address the diverse needs of both the consumer and business markets.
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Business Plan For TeleTouch Ltd (2010-2011)
Teletouch Media will provide services through a wide range of digital platforms, positioning itself in new, high growth areas of the information, communication and entertainment market.
Teletouch Media is seeking to develop a digital service portfolio across three core service areas:
Content over the Internet (online content services and ISP services);
Content over satellite (Satellite TV and radio); and
Content over a "Quality of Service" network (IPTV including broadcast and on-demand TV and interactive services).
ONE YEAR EXPANTION PLAN
In South Africa Tele Touch achieved the good poison within two years. South Africa has the good business environment because
Sound economic policies Favorable legal and business environment
World-class infrastructure
Access to markets
Gateway to Africa
Trade reform, strategic alliances
Cost of doing business in SA
Ease of doing business in SA
Industrial capability, cutting-edge technology
Competitiveness
In one year expansion plan we have planed to expansion Tele touch in East Rand, Pretoria, Vereeniging and Limpopo because in these cities have large population and growth rate of population is very high. Our main aim is to capture a customer list of 5.5 million but also as we know that in present scenario, spectrum (the radio frequency on which mobile signals travel) is a scarce resource on which the new telecom wars are being fought.
Therefore, we must confine this limited resource as early as possible. Also according to SATRA, it is given that if the subscriber base of an organization reaches to half million then it gets 1.8MHZ radio frequency. Whose value is much more than the expenses that we spend to acquire these customers. Now for achieving this we have some plans
Offering an approx free (loss making prosperity)-for CDMA & GSM service for 2G to capture the available customer in this sector.
We should decrease the cost of connections, hand set & tariffs.
We will provide more value and benefit to retailers because they directly connected with customers.
These offers will be given only limited time period, when we achieved our target 1.4MHZ of spectrum from government we will neutralize these above expenses with that money which we are giving to CELL C. Also parallel with the co-operation of our finance department to cut unnecessary cost.
We will also more focusing on GSM compared with CDMA because:-
(a) Customers like the flexibility of choosing their handset.
(b) Intentional roaming, especially in Europe is difficult on CDMA and we could not afford to loose the customer those who travel as they would typically be high uses once.
We will make and managing healthy relationship with the politicians that is inviting them on product launching product promotion providing them special offers etc.
We will also make sound relationship with media by inviting them on many occasions, and attract them by do social works.
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Business Plan For TeleTouch Ltd (2010-2011)
SWOT ANALYSIS
STRENGTH
Strong Capital-: Teletouch has a big amount of capital and very less debt. So from this capital structure it can easily expand business, develop infrastructure, to provide more salary to its employees to take risky decision, complete the mission statement for serve the society.
Global exposure-: Teletouch is presently working in more then three country. And in the today world when customer became more clever so you can not cheat some one. And teletouch is not working in India only but it is working in three countries.
Sector coverage-: Telecom industry is fast growing industry and for have a good market share one company should have strong market share. For keeping this factor in mind Teletouch provided both form of mobile services like CDMA and GSM. And in future it is planning ti provide 3G also.
Large Employee-: Teletouch has more then 1300 employees and 95 costumer care which provide continue services. So the fulfillment of Gap number three of services of marketing it has 95 customer cares.
WEAKNESS
1. Lack of infrastructure-: Due to new company its infrastructure is not well maintained.
2. New company-: Teletouch is a new company so it has not so much famous and a negative image of buyer produced although Telecom sector is new.
OPPORTUNITY
1. 3G-: 3G technology is used in some country so by using 3G teletouch can expand their business. It is proved by the trend and research that the coming future in telecom sector is 3G.
2. Development of South Africa-: South Africa is developing so fast and buyer purchasing power increases so fast. Also for a developed economy mobile became a very much necessary.
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Business Plan For TeleTouch Ltd (2010-2011)
THREATS
1. Large number of competitors-: There are 7 telecommunication companies in South Africa. And all 7 are very settled so its competitors are its main threat.
2. Level of awareness among competitors-: All company has well diversified portfolio so make a faith in South Africa people is difficult. And they know the mentality of buyer and they make plan according to people choice.
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Business Plan For TeleTouch Ltd (2010-2011)
GROUP-1B
TeleTouch Limited
Operation Department
Submitted by
Abhishek Singh
Anand vikas
Anusha kesari
Amit kumar
Basant kr Yadav
Institute of productivity & management
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Business Plan For TeleTouch Ltd (2010-2011)
DISTRIBUTION OF WORK
Department Operation
Vice president Anand vikas
Executive supply chain Basant kr Yadav
Executive operation planning Abhishek Singh
Executive external liaison Amit Kumar
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Business Plan For TeleTouch Ltd (2010-2011)
Executive operation planning Anusha kesari
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Business Plan For TeleTouch Ltd (2010-2011)
TeleTouch
Operation department plays a vital role in the success of
concerned company because it Characterizes operations
management and its connections with the corporate strategy with
the purpose of gaining competitive advantages.
That’s why we need to do Operational planning (OP) which is a
subset of strategic work plan. It describes short-term ways of
achieving milestones and explains how, or what portion of a
strategic plan will be put into operation during a given operational
period. An operational plan is the basis for, and justification of an
annual operating budget request.
Operational plans should establish the activities and budgets for
each part of the organization for the next 1-3 years. They link the
strategic plan with the activities the organization will deliver and
the resources required to deliver them.
The OP is both the first and the last step in preparing an operating
budget request. As the first step, the OP provides a plan for
resource allocation, as the last step, the OP may be modified to
reflect policy decisions or financial changes made during the
budget development process.
Operational plans should be prepared by the people who will be
involved in implementation. There is often a need for significant
cross-departmental dialogue as plans created by one part of the
organization inevitably have implications for other parts.
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Business Plan For TeleTouch Ltd (2010-2011)
Service providers
TeleTouch Limited has Joint venture with Cell C for the distribution
of its services. Cell C is referred to as service providers. As in year
2010-2011 we are expanding our business by 5.5% to 11%. So
that in this year we had planned not establish our own network
and services that’s why in this year TeleTouch will Outsource it’s
services Such as Network sharing with Cell C and Customer care
service with the Accenture call centre.
TELE WORLD
It is selling point as well as customer service center of TeleTouch.
Customer service centreWe fully recognize the importance of providing a high level of
customer service support in acquiring and retaining customers in
South Africa's competitive mobile cellular environment. That is
why we will provide our costumer 24/7 service, all year round.
Customer care center is the primary point of contact for resolution
of enquiries and complaints of Cell C subscribers. Each Customer
Service Centre is charged with, and committed to, providing
timely and complete resolution of subscriber concerns in an
accessible and courteous environment. To achieve this, our
service provider has adopted the following principles:
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Business Plan For TeleTouch Ltd (2010-2011)
Official Languages: Each Customer Service Centre will use staff
best suited to communicate with TeleTouch's subscribers in their
preferred official language during normal business hours.
Customer Service Representatives (CSR's) of differing ethnic and
linguistic backgrounds are employed. All calls to a Service Centre
will be recorded.
Centre Staffing: Customer Service Centre staffing is optimized
so that at all times a sufficient number of CSR's are available to
provide timely resolution of each caller's complaint or query.
CSR Hiring: TeleTouch’s human resource department and its
Service providers are committed to hiring and training a top-
quality workforce of customer service representatives. The
representatives are mandated to provide a prompt, courteous and
knowledgeable service and to attend to the resolution of
subscriber enquiries and issues. We are committed to an
employee selection and hiring process that provides equal
opportunity and empowerment to qualified personnel, embraces
the Employment Equity Act No 55 of 1998, and supports active
recruitment of employees and contractors from historically
disadvantaged groups.
CSR Training: All the Customer Service Representative must be
trained and developed by TeleTouch’s employees. This training
and testing program is specifically designed to facilitate
acquisition and retention of the knowledge and skills required for
the position. Each CSR must fully understand and conform to the
operational and ethical standards set forth in this Customer
Service Code of Conduct.
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CUSTOMER CARE
TeleTouch is outsourcing the service of call centers from
Accenture call centre. Earlier we required 95 call centre staff to
facilitate 2.37 million subscribers, as our subscribers will be
doubled in the next year so we also have to increase the call
center staff that will be approximately 180. The primary focus for
customer care has been on expanding capacity in the call centers.
Calls answered will be doubled. And consolidated service levels
also improved. Recruitment and focus management continued,
and new staffing models have been adopted to improve flexibility
as staff is scheduled more effectively to meet call volume
demand. Special station of call centers has been very successful.
We will establish our own data call centre to focus on the support
of GPRS and 3G/HSDPA products. For the first time staff has been
trained on both telecommunications and information technology
skills and customer feedback has been positive.
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Business Plan For TeleTouch Ltd (2010-2011)
NETWORK COVERAGE
In this year we will run our network in the fallowing nine areas:
The work of inventory management depart is to manage the right product at right time at right place for right people. And here in TeleTouch we will have to procure the Sims and cell phones from the manufacturer or suppliers and then we will then supply it to our outlets in such a way that it causes minimum cost. So first of all we will procure the forecasted amount of Sims and cell phones for one year. As per our estimation we will purchase the following material in limited amount as below.
CDMA cells - .62 million
Estimated sell for one year - .59 million
Stock - .03 million
In the similar way for Sims for one year:-
Sims - 2.78 million
Sale - 2.38 million
Inventory - .5 million
Out of 2.38 millions of Sims .59 million of Sims will be sold with CDMA PHONES. And 1.79 millions of Sims will be sold without cell i.e. will give GSM service. And we will keep .5 millions of sim in stock.
In order to sell our product in a very harmonic way we will have to consult the dealers, whole sellers, and retailers in South Africa.
A big trend is for organizations to blend their operational functions under the umbrella known as supply chain management. Often, the first two functions to merge are purchasing and inventory management. So, as a purchasing professional, we must understand inventory
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management principles to remain valuable. First, we must know how much inventory to have on hand to ensure continuity of supply in the event of an uncharacteristic increase in either demand and/or lead time. This quantity of inventory is called the safety stock. There is no universally used formula for determining safety stock quantity, but PurchTips Edition 86 suggested a risk adverse calculation.
Second, we must know when to reorder materials for inventory.
Generally, this point in time is determined when the quantity of
materials in stock decreases to a certain level, called the reorder
point. The reorder point is determined by the formula:
ROP = SSQ + (QUD x ALT)
Where,
ROP = Reorder Point
SSQ = Safety Stock Quantity
QUD = Quantity Used Daily
ALT = Average Lead Time (in days)
Third, we must know how much to order. A complex mathematical
equation determines the Economic Order Quantity, or EOQ. The
equation recognizes the tug of war between acquisition costs and
inventory carrying costs: when we order bigger quantities less
frequently, your aggregate acquisition costs are low but your
inventory costs are high due to higher inventory levels.
Conversely, when we order smaller quantities more often, our
inventory costs are low but our acquisition costs are higher
because you are expending more resources on ordering. The EOQ
is the order quantity that minimizes the sum of these two costs.
Fortunately, inventory management systems calculate the EOQ
for us.
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Business Plan For TeleTouch Ltd (2010-2011)
REORDER POINT FORMULA
In real life situations the assumption of independence in the probability distributions made in the example above may not be valid and the number of time periods may also be large. In such cases the approach adopted earlier can become much more complex. That is the reason why one can adopt a much simpler formula which gives reasonably reliable results in calculating at what point in the level of inventory a reorder has to be placed for replenishment of stock. The formula along with its application is given below, using the notation developed earlier.
Reorder point = S x L + F (S x Rx L)
WhereS = Usage in unitsL = Lead time in daysR = Average number of units per orderF = Stock out acceptance factor
The stock-out acceptance factor, `F', depends on the stock-out percentage rate specified and the probability distribution of usage (which is assumed to follow a Poisson distribution). For any specified acceptable stock out percentage the value of `F' can be obtained from the figure presented below.
So these two formulas will be used by each parties so that there will be less probability of arousal of any problems.
As per our estimation, there will be sell of .59 million of CDMA cells, so per month sale can be calculated easily.
So sale of CDMA sale per month will be .0491 million along with Sims.
And in case of Sims we have estimated to sale 2.38 million per year. And out of 2.38 million of Sims, .59 million will be sold with CDMA cells. So remaining 1.79 million of Sims will be sold per year. So for one month the no. of Sims to be sold will be .149 million.
The total area of South Africa is approx 1220471.69sq. Km and it is distributed as follows:
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WESTERN CAP
Area: 129 370 square km (10.6% of total area)Population : 3 633 080 (9% of total population)Population density : 28.1 per square km
EASTERN CAPE
Area: 169 600 square km (13.9% of total area)Population : 6 436 790 ( 16% of total population)Population density : 38.0 per square km
NORTHERN CAPE
Area: 361 800 square km (29.7% of total area)Population : 737 310 (1.8% of total population)Population density : 2.0 per square km
ORANGE FREE STAT
Area: 129 480 square km (10.6% of total area )Population : 2 726 840 (6.8% of total population)Population density : 21.1 per square km
KWAZULU/NATAL
Area: 180 square km (7.6% of total area)Population : 8 505 340 (21.1% of total population)Population density : 92.3 per square km
NORTH-WEST
Area: 116 190 square km (9.5% of total area)Population : 3 252 990 (8.1% of total population)Population density : 28.0 per square km
GAUTENG Area: 18 810 square km (1.6% of total area)Population : 6 869 100 (17% of total population)Population density : 365.2 per square km
EASTERN TRANSVAAL Area: 78 370 square km (6.4% of total area)Population : 2 921 560 (7.3% of total population)Population density : 37.3 per square km
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Business Plan For TeleTouch Ltd (2010-2011)
NORTHERN TRANSVAAL Area: 123 280 square km (10.1% of total area) Population: 5 201 630 (12.9% of total population)Population density : 42.2 per square km
we will have to cover all these areas. So will hire the local people who have good awareness of the areas and the number of distributor, wholesalers and retailers which will be confirmed by the territory management, they will be supplied by the goods as per the requirements by the people who are hired by we people. As the area is very large so it will be better for us to have our own vehicle. And after knowing the total number of distributors , we will distribute our products among them in such a way that the cost of inventory will be minimum for them, beside this there are also some factors which are to be considered like amount of product sold, potential customer , area of the territory, accessibility etc. and when our product will come in the market then after 4 or 5 consecutive months we will have clear cut idea about the selling of the products and then we will be fully able to calculate the amount of products to be distributed and where on the basis of above given formulas.
As we have decided to sale 2380000including of Sims card and CDMA phones per year. So per month sale will be approx 198333 Sims card+ CDMA phones. Suppose that if we will sale 30 products including both to the end user through retailers then the number of retailers will be 6611. Then on an average as we know that one wholesaler can handle approx 50 permanent retailers then the numbers of wholesalers will be 132. and as per our estimation we think that 1 distributor can handle approx 10 – 15 wholesalers so the numbers of distributors will be 11-12 .and as we know that there are only 8- 9 main regions so we will distribute our 12 distributor according to area of the regions. As we know that total area of South Africa is not very small so it will be better for us to have our own vehicle rather than hiring the vehicle for the distribution of our products. And we know that we are going to procure our products not regularly so it will be better for we people to implement market oriented distribution, so that we will
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be nearer to the market place and the cost of distribution, transportation, warehousing will be relatively low.
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Business Plan For TeleTouch Ltd (2010-2011)
How the government policies are helping to the telecom Industry in South Africa
The government policies in South Africa for telecom industry
are not only helping to telecom industry only but it also helps to
economy, Operator and consumers:
It Create dynamic competitive markets that deliver
economic benefits to consumers.
Maximize access to a diverse range of communications
and/or ICT services.
Deliver choices to consumers and value for money or high
quality ICT services.
Ensure consumer protection from abuse from service
providers in the form of high tariffs.
Improve regulatory independence for policy-makers and
operators
To The Economy
It will lead to a conflict free ICT ( information &
Communication Technology)
It would enhance quicker rollout and growth of both wireless
technologies,
Broadband and internet; and Faster roll-out would ultimately
lead to the achievement of the objectives of
Universal access and extension of services to rural areas.
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Business Plan For TeleTouch Ltd (2010-2011)
TO THE Regulator
It encourages free and easy deployment of new technologies
and associated Services in the ICT sector.
It simplifies the procedure of licensing in the telecom sector.
It ensures flexibility and efficient utilization of scarce
resources
It encourages efficient small operators to cover niche areas,
in particular, Rural, remote and underserved areas as far as
the provision of ICT services is Concerned
It enhances easy entry and level playing field for all
operators.
To the Operators
It would afford an operator the freedom to provide
multiple services under a Single authorization.
It would enable the operator take advantage of new
technologies faster.
It would enhance economies of scale and greater
efficiency as a result of Optimum sharing of infrastructure
and resources;
It would lead to cheaper cost of providing services and
cheaper cost of services would increase market and
profitability of Operators.
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Business Plan For TeleTouch Ltd (2010-2011)
To the Consumers
Consumer expectation of one-stop service availability would
be met Lower operating cost resulting from economies of
scale would transform into lower tariffs.
Reduction in set-up costs would significantly lessen access
cost, making ICT Services more affordable.
Increased access would create enabling environment for the
growth of other Businesses create employment opportunities
and raise the standards of Living of people.
Savings from reduction in the number of devices that the
consumer would require to own.
Government Policies that Hinder in Expansion Plan
Entry barriers
There are considerable barriers facing a new entrant into telecom
networks, some of which are absolute advantages and others that
have been strategically created. The size of the barriers is
reflected in the high market shares of incumbents in liberalized
markets years after they were opened to competition. Probably
the biggest barrier to entry is the natural monopoly conditions
that seem to be present in the residential local loop. In the US, the
incumbents still hold around 96% of the market. Of course,
liberalization in an expanding market will result in greater
Penetration by the entrant under the same scale economy
conditions, allowing them to also benefit from this barrier. Another
entry barrier that is usually cited is consumer inertia, which can
be ascribed to the following factors:
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Business Plan For TeleTouch Ltd (2010-2011)
Local carrier switching costs
The once-off costs of switching suppliers For telephony this usually
includes the administrative cost of switching, informing
friends/clients of the change in number, and changing official
stationary with the number on it. Number portability overcomes
this problem.
Long-distance carrier switching costs
Selection of the long-distance carrier would normally involve the
entry of a pre-dialing code to select an alternative carrier to the
default carrier. The default carrier is clearly at an advantage
because subscribers don’t need to enter a code before dialing – a
cost to the subscriber. Carrier pre-selection overcomes this
problem.
Quality risk
Consumers will be uncertain of the product quality of the entrant
but certain for the incumbent. The risk premium is built into the
ongoing costs of the service, not just a once-off cost. This may be
lowered if the entrant already has a reputation from another
market. Of course, if incumbent quality is poor, then this may turn
out to work in favor of the entrant.
Marketing
The incumbent has less need to advertise, as all current
consumers are already aware of them (which of course may work
against them if their reputation is poor). They also have a
database of all existing telephone users that they can use to both
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identify who has left them for the entrant (in whatever service)
and approach directly to persuade them to switch back.
RECOMMENDATIONS
Determine the size of the telecommunications market by
providing licenses for the purposes of delivering
telecommunications services.
To foster healthy relations between the different service
providers by overseeing interconnection agreements so that
service providers have equal access to the network provided
by the dominant operator.
To resolve disputes and maintain a level playing field or
regulate for fair competition so that the dominant operator
does not abuse his or her dominance in the market place.
To meet public policy goals so that consumers are protected
against high prices, poor quality of service, inadequate
infrastructure, limited services, unsafe equipment and
neglect by the service providers.
To address consumer complaints and solve them amicably.
To ensure efficient use of the frequency spectrum and space
for the provision of information technology services.
To encourage investment, innovation and optimum growth
of the sector and operators’ performance.
To administer the numbering plan so that there are sufficient
numbers available.
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To monitor compliance with national and international
telecommunications equipment suppliers and service
providers.
REGULATORY AFFAIRS
The regulatory environment was vibrant in the current financial
year; with inter alia the Electronic Communications Act (“ECA”)
and the Independent Communications Authority of South Africa
(“ICASA”) Amendment Act being promulgated on July 19, 2006;
the publication of the framework for converting existing licenses
and the Notice of Intention to Prescribe Regulations in terms of
the Licensing Framework applicable to Individual and Class
Licenses, are at the “in comment” phase. The Information and
Communication Technology (“ICT”) BEE Charter, after more than a
year of continued industry consultation and negotiation, is also
nearing finalization. The Charter will be subject to alignment with
minimum requirements of the Department of Trade and Industry’s
(“DTI”) Codes of Good Practice. On January 29, 2007 the Authority
also initiated an inquiry into the market for wholesale fixed and
mobile call termination rates. The process is still ongoing. Further,
MNP was implemented since September 10, 2006 without any
significant impact.
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Business Plan For TeleTouch Ltd (2010-2011)
PESTLE ANALYSISPolitical Analysis
Government type: republic
The language of political risk assessment reflects the master narrative of wealthy capitalist investors. At its core, this master narrative is reflected in the quote of Hasbrouck at the beginning of this essay: "money is cowardly, it looks for safety and safety means certainty, transparency and stability". Moreover, 'money', in other words wealthy investors, is--to paraphrase Adam Smith--under no obligation to invest in developing economies. They will only invest for selfish reasons, namely for profit, and the rewards
Have to reflect the risk involved.The macro political risk image of South Africa can best be portrayed as being of a medium risk category. The serious political risks, such as war, revolution, and coup detach, hostile neighbors, and military involvement in politics, violent racial, sectarian and ethnic conflict is low at present. Their resurgence in the medium term (10 years) can be judged as being unlikely. More pertinent and realistic political risk is posed by social and political-economic risk, as pointed out in the analysis above. The leadership succession dispute in the ruling alliance; the country-wide vehement and at times violent popular protests regarding inadequate municipal services; corruption; crime, especially the high rate of violent crime; inefficient government administration; poverty; the Aids pandemic; trade union activism; affirmative action and BEE; inflexible labor policy; a rigid business policy environment--including tax regimes; and uncertainty regarding private property, all pose noteworthy political risks. These risks are not of the cataclysmic type. Individually they may seem innocuous. Taken as a whole, collectively, these political risks add up to foreign 'money' being cautious, even 'cowardly' and holding back on investing in South Africa. Since political risk at its core constitutes an assessment of possible losses caused by government action, alleviation of the risks are also quite evidently in the domain of corrective action by government. The ANC government has done much to drive down the cataclysmic
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political risks in the last decade. If the Government applies its mind, the more mundane political risks can also be assuaged and the faint-hearted foreign investors invited to 'come to the party' of South Africa's economic reconstruction.
Economic policies
Since the advent of democracy in 1994, South Africa's economy has been undergoing structural transformation, with the implementation of macro-economic policies aimed at promoting domestic competitiveness, growth and employment and increasing the economy's outward orientation.
Key economic reforms have given rise to a high level of macro-economic stability. Taxes have been reduced, tariffs lowered, the fiscal deficit brought under control, and exchange controls relaxed.
Government expenditure has also been restructured towards social services that are contributing to a better quality of life for all South Africans.
South Africa's central bank, the SA Reserve Bank, maintains its independence from the government. The Bank's programs of inflation targeting have shown good results: the real interest rate has stabilized and the currency remains at competitive levels. Consumer inflation came in at under 5% from 2004 through 2006 before global prices pushed it up to 6.5% in 2007. In 1994 it stood at 9.8%.
The government has made it clear that foreign investment is welcome in South Africa, and investor-friendly policies support the public pronouncements. In 2005, the government began formulating a new strategy to boost the country's economic growth rate to 6% of GDP by 2014 and reduce unemployment.
Implementation of the strategy – involving large-scale state investment in infrastructure, small business and skills development, and interventions targeting specific areas of the economy – is well under way.
Legal
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Business Plan For TeleTouch Ltd (2010-2011)
South Africa has a world-class, progressive legal framework. Legislation pertaining to commerce, labour and maritime issues is particularly well developed, while laws relating to competition policy, copyright, patents, trademarks and disputes conform to international norms and conventions.
Sanctity of contract is protected under common law, and independent courts ensure respect for commercial rights and obligations. The independence of the judiciary is guaranteed by the Constitution.
South Africa's financial systems are sophisticated, robust and well regulated. South African banking regulations rank with the best in the world, while the sector has long been rated among the top 10 globally. Foreign banks are well represented and electronic banking facilities are extensive, with internet banking a growth feature of the sector.
The JSE Limited rates among the top 20 stock exchanges in the world by market capitalization. The JSE's rules and their enforcement are based on global best practice, while the JSE's automated trading, settlement, transfer and registration systems are the equal of any in the world.
Technology
South Africa's industrial production growth is well above the average for developing markets.
The country's manufacturing output is increasingly technology-intensive, with high-tech manufacturing sectors –such as machinery, scientific equipment and motor vehicles – enjoying a growing share of total manufacturing production since 1994.
South Africa's technological research and quality standards are world-renowned. The country has developed a number of leading technologies, particularly in the fields of energy and fuels, steel production, deep-level mining, telecommunications and information technology.
Socio-cultural
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For many different reasons, several individuals, including myself, have decided to move to South Africa and launch a new business venture as full and equal partners. We will be assembling many different types of seats and selling and distributing them to a wide variety of telecom services around the world. The socio-cultural characteristics of advertising and marketing play a very important role in having a successful business.
In order not to create a business or cultural blunder, which would have a negative effect on our success, extensive market research and analyses, must be performed. Market researchers have the ability to uncover adaptation needs, potential name problems, promotional requirements, and proper market strategies. Those issues as well as several others will play a major role in any company that will be doing business in a foreign market. One way to test a potential market is to perform a Market Opportunity Analysis.
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GROUP-1B
TeleTouch Limited
Finance Department
Submitted by Sakshi Sharma
Satish Tiwari
Sailendra Jha
Shivani Arora
Shruti Garg
Institute of productivity & management
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TeleTouch Ltd Finance Department
Clear inputs on whether the expansion will be from internal accruals or some external funding, and if so, how much and from what source?
Sources of funds
We will be raising the funds from both external as well as internal sources.
Our company might raise new funds from the following sources:
Equity Shares @ 2R R. 10 million
(Debenture @ 12%) R. 10 mill
Unsecured Loan (Bank) R. 110mill
Secured Loan (African Development Bank)
R. 600 mill
Retained earnings profit (Desh ki Awaj from India)
R. 172.8mill
R 1,025,939,800 -total exp of department
We have profit in 2009-2010 = R 471,294,447
Out of which we are going to invest from last year profit – 132,139,800 R
Ordinary (equity) shares
Ordinary shares are issued to the owners of a company. They have a nominal or 'face' value, typically of R 2. The market value
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of a quoted company's shares bears no relationship to their nominal value, except that when ordinary shares are issued for cash, the issue price must be equal to or be more than the nominal value of the shares.
We will be raising R.10 million through this source. The number of shares to be issued will be 100,000 at the market price of R.100
New shares issues
A company seeking to obtain additional equity funds may be:
a)An unquoted company wishing to obtain a Stock Exchange quotation
b) An unquoted company wishing to issue new shares, but without
Obtaining a Stock Exchange quotation
c) A company which is already listed on the Stock Exchange wishing to issue additional new shares.
The methods by which our company can obtain a quotation on the stock market are:
a) An offer for sale
b) A prospectus issue
c) A placing
d) An introduction.
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Loan stock
Loan stock is long-term debt capital raised by a company for which interest is paid, usually half yearly and at a fixed rate. Holders of loan stock are therefore long-term creditors of the company.
Loan stock has a nominal value, which is the debt owed by the company, and interest is paid at a stated "coupon yield" on this amount. The rate quoted is the gross rate, before tax.
Debentures are a form of loan stock, legally defined as the written acknowledgement of a debt incurred by a company, normally containing provisions about the payment of interest and the eventual repayment of capital.
Debentures with a floating rate of interest:
These are debentures for which the coupon rate of interest can be changed by the issuer, in accordance with changes in market rates of interest. They may be attractive to both lenders and borrowers when interest rates are volatile.
Retained earnings
For any company, the amount of earnings retained within the business has a direct impact on the amount of dividends. Profit re-invested as retained earnings is profit that could have been paid as a dividend. The major reasons for using retained earnings to
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finance new investments, rather than to pay higher dividends and then raise new equity for the new investments, are as follows:
a) The management of many companies believes that retained earnings are funds which do not cost anything, although this is not true. However, it is true that the use of retained earnings as a source of funds does not lead to a payment of cash.
b) The dividend policy of the company is in practice determined by the directors. From their standpoint, retained earnings are an attractive source of finance because investment projects can be undertaken without involving either the shareholders or any outsiders.
c) The use of retained earnings as opposed to new shares or debentures avoids issue costs.
d) The use of retained earnings avoids the possibility of a change in control resulting from an issue of new shares.
Another factor that may be of importance is the financial and taxation position of the company's shareholders. If, for example, because of taxation considerations, they would rather make a capital profit (which will only be taxed when shares are sold) than receive current income, then finance through retained earnings would be preferred to other methods.
A company must restrict its self-financing through retained profits because shareholders should be paid a reasonable dividend, in line with realistic expectations, even if the directors would rather keep the funds for re-investing. At the same time, a company that is looking for extra funds will not be expected by investors (such
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as banks) to pay generous dividends, nor over-generous salaries to owner-directors.
Bank lending
Borrowings from banks are an important source of finance to companies. Bank lending is still mainly short term, although medium-term lending is quite common these days.
Short term lending may be in the form of:
a) An overdraft which a company should keep within a limit set by the bank. Interest is charged (at a variable rate) on the amount by which the company is overdrawn from day to day;
b) A short-term loan, for up to three years.
Medium-term loans are loans for a period of from three to ten years. The rate of interest charged on medium-term bank lending to large companies will be a set margin, with the size of the margin depending on the credit standing and risky ness of the borrower. A loan may have a fixed rate of interest or a variable interest rate, so that the rate of interest charged will be adjusted every three, six, nine or twelve months in line with recent movements in the Base Lending Rate.
Knowledge and dynamism in tax planning. How will you manage tax planning?
South African tax for investors
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South Africa has a well-developed and regulated taxation regime based on international best practice. Here are the tax basics for foreigners investing or working in SA.
The tax regime is set by the National Treasury and managed by the South African Revenue Service (Sars). Some key points:
Business profits are taxable in South Africa if the business is conducted in SA.
Income from services is taxable in South Africa if the services are rendered in SA.
Businesses must file annual income tax returns with Sars. Businesses may select their own financial year-end. For individuals, the tax year runs from 1 March to 28
February. Two provisional tax payments based on an estimate of
annual income are made during each financial year, the first after six months, and the second at the end of the financial year.
Income tax
The principal source of direct taxation revenue in South Africa is income tax. Individuals are taxed on a progressive basis up to a maximum rate of 42% on taxable income exceeding R215 000 per annum. A uniform rate of tax is applied to all individuals, irrespective of gender or marital status, and without child rebates.
Tax on the income of non-South African residents is source-based, meaning that all income arising from a source within (or deemed to be within) South Africa is taxed, irrespective of the residence of the recipient of the income.
Domestic companies are taxed at a flat rate of 30%. However, branches and agencies of foreign companies which have their
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effective management outside South Africa are subject to taxation on South African-sourced profits at a rate of 35%.
Trusts (other than special trusts) are also taxed on a progressive basis up to a maximum rate of 42% on taxable income exceeding R100 000.
Value Added Tax (VAT)
The principal source of indirect taxation revenue in South Africa is Value Added Tax (VAT). If a subsidiary or branch of a foreign-owned company sells goods or provides services, it must register as a vendor with Sars and charge and pay over VAT.
The standard rate of VAT is 14%. Exports, certain foodstuffs and other supplies are zero-rated, and certain supplies are exempt (mainly certain financial services, residential accommodation and public transport).
Capital gains tax
Capital gains tax is levied on non-residents to the extent that they dispose of immovable property situated in South Africa, or have a permanent establishment in SA and dispose of an asset of that establishment.
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Double taxation agreements
South Africa has entered into double taxation agreements with most of its trading partners, including: Austria, Belgium, Canada, Cyprus, Denmark, France, Germany, India, Ireland, Israel, Italy, Japan, Korea, Malta, Mauritius, the Netherlands, Norway, Singapore, Sweden, Switzerland, Taiwan, Thailand, the United Kingdom and the United States.
Other taxes
Other taxes affecting subsidiaries or branches of foreign-owned companies:
If a firm employs personnel, it must register as an employer with Sars and deduct tax (PAYE) from its employees' salaries.
Regional service council levies on gross revenue and salaries. Rates vary between regions but approximate 0.14% and 0.35% respectively, to which VAT must be added.
A skills development levy at the rate of 0.5% of payroll is payable.
Transfer duty is payable on land and buildings (10% in the case of a corporate purchaser, but exempt if VAT is charged).
Stamp duty at 0.25% is payable on transfer and issue of shares. Stamp duty is also payable on certain other agreements, such as leases and mortgage bonds.
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Customs and excise taxes
Compulsory workmen's compensation, assurance and unemployment insurance fund premiums are payable, although these are relatively insignificant. There are no other social security payments.
5 golden rule of managing tax planning
Just as rules are important for good living so also there are some golden rules of tax planning. The five simple yet effective golden rules of tax planning are:
1. spread the taxable income among various members in your family; Take full advantage of tax exemptions available under the law;
3. Take full advantage of permissible tax deductions and rebates available on stipulated tax-saving investments;
4. Make optimum use of tax-exempted incomes; and
5. Simple tax planning is smart tax planning.
How We Can Help
KPMG Tax professionals can help you to manage your business’s tax situation effectively. Here are a few of the many tax-planning strategies that may be applicable:
Compensation Strategies. By adjusting the mix of salary and dividends they receive, entrepreneurs have a significant opportunity to manage their overall corporate and personal taxes.
Corporate Tax Management. The key to effectively managing the amount of taxes payable from year to year is identifying all allowable deductions and reserves. And major transactions undertaken by the corporation—such as financing, succession planning, asset protection, strategic
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planning or expansion into other markets—must be reviewed for tax implications.
Corporate Reorganization. In some circumstances, a reorganization of the corporate structure can help manage taxes more effectively. For example, restructuring the corporate group and its individual shareholders may help utilize business and capital losses, manage federal and provincial capital taxes, enhance the small business deduction, and access the $500,000 capital gains deduction of family members.
Tax Planning
Mergers, acquisitions and pooling of resources – sale of
assets vs sale of
Shares
Transfer of fixed assets, stocks, debtors etc – income tax and
stamp
Duty implications
Exemptions available for income tax and stamp duty
purposes
New vehicle vs existing vehicle – tax considerations
Sale and leaseback arrangements
Related party arrangements – transfer pricing issues
Comparison of “controlled companies” for transfer pricing
purposes as Opposed to “controlled transfer purposes”
Funding requirements in a corporate restructuring exercise
and the
Related income tax implications
Tax incentives – issues to consider in carrying out the
corporate
Restructuring exercise
Cross border issues
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Business Plan For TeleTouch Ltd (2010-2011)
IDENTIFICATION OF THE TOTAL FUND REQUIREMENT, BROKEN UP INTO NEEDS OF EACH INDIVIDUAL
DEPARTMENT
FUND REQUIREMENT OF EACH INDIVIDUAL DEPARTMENT IN RAND
IN HOUSE ADVERTISING 200000000
OPERATION DEPARTMENT 400,000,000
H.R DEPARTMENT 355148000
STRATEGY DEPARTMENT 10000000
IT DEPARTMENT 26100000
MARKETING DEPARTMENT , 10000000
SALES DEPARTMENT 18991800
FINANCE DEPARTMENT 1700000
RESERVE 4000000
R 1,025,939,800
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Business Plan For TeleTouch Ltd (2010-2011)
NET WORTH OF COMPNY SINCE 05-06 TO 07-08 in India
NET WORTH = TOTAL ASSETS-TOTAL LIABILITIES
05-06 RS 4,422,415,610
4B, 422M, 415 TH, 610H
-371076240
-371M, 76 TH 240H
06-07 RS 4,051,339,370 4B, 51M, 339 TH, 370H
+802,864,120
+802M,864 TH,120H
07-08 RS 4,854,203,490 4B,854M,203 TH 490 H
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Business Plan For TeleTouch Ltd (2010-2011)
Clear inputs on whether the expansion will be from internal accruals or some external funding, and if so, how much and from what source?
Sources of funds
We will be raising the funds from both external as well as internal sources.
Our company might raise new funds from the following sources:
Equity Shares @ 2R R. 10 million
(Debenture @ 12%) R. 10 mill
Unsecured Loan (Bank) R. 10mill
Secured Loan (African Development Bank) R. 300 mill
Retained earnings profit (Desh ki Awaj) R. 172.8mill
Ordinary (equity) shares
Ordinary shares are issued to the owners of a company. They have a nominal or 'face' value, typically of R 2. The market value of a quoted company's shares bears no relationship to their nominal value, except that when ordinary shares are issued for cash, the issue price must be equal to or be more than the nominal value of the shares.
We will be raising R.10 million through this source. The number of shares to be issued will be 100,000 at the market price of R.100
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Business Plan For TeleTouch Ltd (2010-2011)
New shares issues
A company seeking to obtain additional equity funds may be:
a) an unquoted company wishing to obtain a Stock Exchange quotation
b) an unquoted company wishing to issue new shares, but without obtaining a Stock Exchange quotation
c) a company which is already listed on the Stock Exchange wishing to issue additional new shares.
The methods by which our company can obtain a quotation on the stock market are:
a) An offer for sale
b) A prospectus issue
c) A placing
d) An introduction.
Loan stock
Loan stock is long-term debt capital raised by a company for which interest is paid, usually half yearly and at a fixed rate. Holders of loan stock are therefore long-term creditors of the company.
129
Business Plan For TeleTouch Ltd (2010-2011)
Loan stock has a nominal value, which is the debt owed by the company, and interest is paid at a stated "coupon yield" on this amount. The rate quoted is the gross rate, before tax.
Debentures are a form of loan stock, legally defined as the written acknowledgement of a debt incurred by a company, normally containing provisions about the payment of interest and the eventual repayment of capital.
Debentures with a floating rate of interest:
These are debentures for which the coupon rate of interest can be changed by the issuer, in accordance with changes in market rates of interest. They may be attractive to both lenders and borrowers when interest rates are volatile.
Retained earnings
For any company, the amount of earnings retained within the business has a direct impact on the amount of dividends. Profit re-invested as retained earnings is profit that could have been paid as a dividend. The major reasons for using retained earnings to finance new investments, rather than to pay higher dividends and then raise new equity for the new investments, are as follows:
a) The management of many companies believes that retained earnings are funds which do not cost anything, although this is not true. However, it is true that the use of retained earnings as a source of funds does not lead to a payment of cash.
b) The dividend policy of the company is in practice determined by the directors. From their standpoint, retained earnings are an
130
Business Plan For TeleTouch Ltd (2010-2011)
attractive source of finance because investment projects can be undertaken without involving either the shareholders or any outsiders.
c) The use of retained earnings as opposed to new shares or debentures avoids issue costs.
d) The use of retained earnings avoids the possibility of a change in control resulting from an issue of new shares.
Another factor that may be of importance is the financial and taxation position of the company's shareholders. If, for example, because of taxation considerations, they would rather make a capital profit (which will only be taxed when shares are sold) than receive current income, then finance through retained earnings would be preferred to other methods.
A company must restrict its self-financing through retained profits because shareholders should be paid a reasonable dividend, in line with realistic expectations, even if the directors would rather keep the funds for re-investing. At the same time, a company that is looking for extra funds will not be expected by investors (such as banks) to pay generous dividends, nor over-generous salaries to owner-directors.
Bank lending
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Business Plan For TeleTouch Ltd (2010-2011)
Borrowings from banks are an important source of finance to companies. Bank lending is still mainly short term, although medium-term lending is quite common these days.
Short term lending may be in the form of:
a) An overdraft which a company should keep within a limit set by the bank. Interest is charged (at a variable rate) on the amount by which the company is overdrawn from day to day;
b) A short-term loan, for up to three years.
Medium-term loans are loans for a period of from three to ten years. The rate of interest charged on medium-term bank lending to large companies will be a set margin, with the size of the margin depending on the credit standing and risky ness of the borrower. A loan may have a fixed rate of interest or a variable interest rate, so that the rate of interest charged will be adjusted every three, six, nine or twelve months in line with recent movements in the Base Lending Rate
IDENTIFICATION OF SPECIFIC STEPS EACH DEPARTMENT CAN TAKE FOR IMPROVING PRODUCTIVITY AND REDUCING COSTS.
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Business Plan For TeleTouch Ltd (2010-2011)
IMPROVE YOUR HR PROCESSES, REDUCE YOUR COSTS AND GET BETTER AND FASTER RESULTS
Web-based job boards, newspapers and recruiters have dramatically changed the hiring process. Despite what these recruitment services advertise, finding the dream employee hasn't become that much easier. Online resources have delivered massive amounts of resumes without a process for managing them. Candidates are responding to job listings at Internet speed, however hiring managers are responding much the same way they have for years. Keyword and other types of search and interpretation technologies fail to address the root problem in resume management and candidate identification. These technologies are inadequate for quickly identifying and ranking the best candidates.
The window of availability for the best-qualified candidates is very narrow. The key issues for improving the quality of new hires are speed and accuracy. However, the process for filtering resumes is still no more accurate than a keyword search. Even such automated systems as resume scanners, keyword and Boolean searches and artificial intelligence (AI) systems are little more than yellow highlighters on steroids. These systems can sort groups of candidates into different piles and incrementally speed the selection process, but they haven’t increased the accuracy of matching the best candidates to job descriptions and ranking them.
The problem of ensuring the hiring of high quality personnel cuts to the very heart of an organization’s success. For no matter how high the demand for a product or service, it’s the organization’s people – human assets – that must deliver. The C-level executive is counting on HR to align the function’s priorities with those of the organization. Ultimately, the human assets are the creators of value within an organization. This is why C-level executives must be concerned with ensuring that HR departments have adequate resources to fulfill their vital tasks of sourcing, evaluating, ranking and managing resumes. The dynamics to fill positions is time
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sensitive and crucial as the best candidates for any position are only available for a short period.
Ideal Hire’s Power Match™ is a patented (U.S. 5,592,375) web-based solution providing an alternate approach for managing resumes from all sources, matching and ranking qualified candidates to jobs. It does this by requiring a common vocabulary 1 and terminology to describe skills, industry experience and education by both hiring managers that write the job descriptions and job candidates.
Additionally, Power Match taps into an organization’s internal talent resources before looking outside the organization. It does this by keeping track of employee skills and depth of experience. This provides a powerful tool for better managing human assets and boosting employee morale. Furthermore, Power Match provides a system for managing profiles,
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Contacting candidates and scheduling interviews. By delivering a huge improvement in the speed and quality of hires and hiring metrics, PowerMatch delivers quality talent and a rapid return on investment.
Resume Interpretation Technologies
The original technology for evaluating and ranking resumes was the yellow highlighter. In some organizations, it is still in use along with resume scanners, keyword search, Boolean search and AI systems. Resume scanners for digitizing resumes are time consuming because manual intervention is required for scanning, and character recognition software still makes errors that have to be manually identified and corrected. Once a resume is available in digital format and manually corrected, only then can it be subjected to a keyword search to determine how many times a particular word shows up in a resume. The number of times a word is used does not equate to the skills, depth of experience or education of a candidate. The result of keyword searching is usually a huge pile or database filled with irrelevant resumes.
A Boolean search expands the keyword search to include a string of words and/or phrases. This means either the HR or hiring manager has to interpret what those words or phrases mean. Creating an accurate command search string for a Boolean search can be complicated and time-consuming. More often than not, HR managers are not skilled in the nuances of writing Boolean search command strings. Even if a successful string is created, the results may be fewer but do not reflect the depth of experience level of candidates.
AI systems take evaluation and ranking a step further by attempting to interpret what different combinations of words and phrases might mean. The relationships between words and phrases and their definitions as defined in existing vocabulary or captured through previous experience are used to interpret the meaningfulness of the resume. However, systems using AI are still addressing the symptom by trying to interpret the meanings.
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The Resume Barrier
The barrier to streamlining the process for matching candidates to open job descriptions has been the resume. All these different types of candidate identification systems begin with the same basic document – the resume – written with the terminology and vocabulary its author is accustomed to using. The technology behind almost every automated system for qualifying job candidates is based on trying to understand or interpret it. Syntax and style inconsistencies lead to inaccuracy and interpretation difficulties. The problem is a lack of standards for creating both job description and resume. This makes the old curriculum vitae out of synch with today’s need for speed, accuracy and the digital environment. Improving the evaluation and ranking systems required re-engineering both job description and resume in a way that would still be usable for both the hiring manager and the candidate.
PowerMatch The hiring process consists of four phases, including:
1. Sourcing
2. Selection
3. Assessment and Interview
4. Offer and Hire
Most companies experience the greatest inefficiencies and largest process delays during the selection phase, where piles of resumes must be evaluated and ranked according to how well they match job description requirements.
Power Match was designed specifically to improve hiring metrics by making the selection phase easier and faster to identify higher quality candidates. Without changing sourcing processes, all applicants are directed to create a simple Candidate Profile. It immediately and automatically matches and ranks them to all open jobs now and in the future. The technology behind
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PowerMatch resides on the organization’s website Careers Page and is transparent to users. As each new job profile is created, all stored candidate profiles are continuously sorted and ranked by education, industry experience, skills and depth of experience as specified by the hiring manager.
Job Profile
The hiring process begins with a job opening. The hiring manager completes a job profile in Power Match in four steps. The first step allows the hiring manager to cut and paste an existing job description. Secondly, the hiring manager completes the education requirement for the job by selecting degree and field of study from pull-down menus. Third, the hiring manager decides whether experience in a particular industry is needed by selecting from pull-down menus. Lastly, the hiring manager selects skills 3 and certifications organized in pull-down menu templates. The hiring manager simply checks off the appropriate skills and certifications, and decides how many years of experience in each skill is needed for the job. The job profile is then immediately posted to the careers page of the company web site. Another feature allows jobs to be posted directly from PowerMatch onto paid Internet job posting boards, if the company has an account.
Candidate Profile
Candidates create their own profiles in about 10-12 minutes using the same four steps as the hiring manager used to create the job profile. With a resume in hand, filling out a profile is easy and consists of contact information, education, industry and skills. After completing the contact data, the candidate completes the education template which includes the education institution, type of degree and field of study, etc. As many institutions as necessary can be accommodated. Next the candidate selects their Industry experience from a pull-down menu. As in the education template, as many of the candidate’s industries as are appropriate can be accommodated. Lastly, the candidate selects skills and certifications organized in pull-down menus. The candidate simply
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checks off the appropriate skills and indicates the years of experience in each skill.
The Power Match application consists of over 10,000 skills categorized by relevant industry. Historically over 500,000 candidates who started the profiling process, more than 83% completed the process. This rate of completion is more than 2X better than what most career sites experience. The pull down menus with lists of education, industries and skills actually makes the profile much easier to complete than a traditional job application.
Matching and Ranking
Notice that the process for the hiring manager to create a job profile and the process for a candidate to create a candidate profile are nearly identical. This minimizes inaccuracies. This means that the hiring manager chooses education, industry and skills that will be exactly matched to the education, industry and skills of a candidate. Each time job profile is created and posted on the company website Careers Page, or a candidate completes their profile, Power Match immediately searches for qualified candidates in the database and automatically ranks the candidate profiles based on the hiring manager’s specific job requirements criteria. The hiring manager simply reviews the profiles from the top ranked candidates and decides who to screen, interview and hire.
Additional Features
Ideal Hire provides Power Match as an ASP service to companies on their web site. The application can be integrated with existing Applicant Tracking Systems that are HRXML based.
Power Match simplifies communication with candidates through its own email system, so the HR or hiring manager’s company email address is kept separate and uncluttered by hundreds or thousands of email resumes. Improving communication with
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candidates will make it worth their effort and provide a positive experience with the hiring organization.
Managing profiles is also made easy with PowerMatch’s database. For example, job profiles can be stored in the Jobs Library for use against future job openings. This feature saves managers considerable time opening new jobs and helps ensure that consistent information is maintained.
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Building Better Teams
Better management of human assets is a crucial responsibility, shared by managers and the HR department. The key to managing any team, department or organization is to understand the team’s experience and total skill set. By creating employee profiles, their education, industry experience and skills in various departments, groups and teams can lead to the identification of the combinations of factors that lead to higher performance.
Using this information to construct a model of high performing groups, allows subsequent groups to be created with the same characteristics. This leads to better management, higher performance and lower costs throughout the organization. Additionally, identifying missing experience, skills or depth of experience within the organization allows the hiring managers and/or the HR department to take corrective action. Power Match allows better management of human assets, which are often misunderstood and mismanaged.
Improving the Value of the HR Department
The hiring process should be considered a strategic process within any organization because the cost of bad hiring decisions can be staggering in the executive suite as well as on the production line. Lost productivity, legal issues, morale and benefits directly impact the bottom line of every organization. The business impact of the HR department and the value it delivers can be tremendous.
By giving the HR department the tools for identifying higher quality job candidates and maintaining higher quality employees that are aligned and in-synch with the business, employees will be much more productive. PowerMatch makes these high-quality hires possible by reducing the potential for error in selecting candidates, as well as speeding up the process.
Additionally, the Power Match system can reduce costs by relieving HR employees from manually evaluating, ranking and matching talent. This reduction in the HR staff to employee ratio
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and their overhead can provide a significant cost saving. Thus, the continuing value an HR department delivers – finding, hiring and retaining the best people – is enhanced with Power Match.
Speedy and Cost Efficient Identification and Recruitment of Talent
The problems associated with identifying job candidates, including speedy evaluation, ranking and sorting of resumes take a heavy toll on an organization’s bottom line. The time spent manually screening resumes is costly and inefficient. Job board keyword search utilities can sort candidates into smaller piles but do not provide an accurate qualification of a candidate. More
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Sophisticated Boolean search and AI systems attempt to interpret resumes, but fail to address the real problem – the use of common terminology and vocabulary as well as consideration for the depth of candidate experience.
Because both the job profile and the candidate profile are completed using the same education, industry and skill lists, Power Match delivers a tremendous improvement in the time to fill and in the quality of matched candidates. Because of the huge increase in efficiency, the Human Relations (HR) department can realize payback within months. Additionally, Power Match allows better management of the organization’s human assets and the ability to quickly fill all jobs with the best available talent.
Strategic Goals
• Switch focus from services to become a more customer-centric organization
• Build a single, centralized customer database populated with information that extends far beyond basic contact information
• Provide universal access to the system at any time and
from anywhere
• Provide customer segmentation and profiling, lead and opportunity management, sales forecasting, customer order and delivery management, and profitability analysis functionalities for sales and marketing
Results
• 129% internal rate of return
• 15% increase in revenue per sales employee
• 20% increase in remote resolution of service issues per month
• 10% increase in revenue per service employee
• 1% improvement in inventory turns
• 2-day reduction in order to delivery time
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• Improvement in service for channel partners
• Enhancement of customer service, which led to improved customer satisfaction
• Sharper competitive edge
Strategic Goals
• Improve customer-facing processes and efficiencies to get closer to customers
• Properly equip the customer service center to meet new volume of customer information, product, and services needs
• Streamline operations to increase efficiencies, integrate different customer service departments, and standardize business processes
•Integrate operations centers to give customer service representatives access to a common, centralized customer database that tracks all customer interactions and inquiries
Results
• 26% internal rate of return
• R45.312 million in increased customer service center
Productivity
• R17.792 million in increased help desk productivity
• R 313, 6000 in cost savings from reduced payment Cycles
• R1881600 in savings from more accurate billing
Strategic Goals
• Increase the strategic importance of procurement
• Further improve supplier relationships with e-procurement
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• Reduce indirect spend
Results
• Achieved a R323.84 million return in the first year
• Reduced retrospective purchase orders from 55% to 7%
• Improved clarity and depth of information that expose maverick spending immediately
• Decreased support costs
• Provided an easier way to measure performance of
Purchasing professionals
• Increased credibility and improved standing of the
Procurement department among senior executives
• Became an important milestone on the way to strategic sourcing
Strategic Goals
• Enhance performance-oriented and competency oriented
Personnel management
• Support decision making that maximizes people value
• Establish an enterprise-wide infrastructure that lays the foundation for responsible business management
Results
• 176% ROI expected
• 44% IRR anticipated
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• R7680 million in annual cost savings from more efficient
Human resource operations
• Better decision-making support through real-time access to
Human
Resource data and improved analysis functionality
• Enhanced system security
• Improved interface with internal information systems
• Better quality of service
• Improved performance-oriented and competency oriented
Human resource management, which supports decision making to
Maximize people value
• Faster system response to human resource policy changes and
More flexibility in applying policy changes
Strategic Goals
• Maximize business value through collaboration with the company’s largest technology suppliers
• Reduce inventory costs
• Ensure high-quality customer service
• Contribute to the reduction of acquisition prices
• Reduce lead time of network creation
Results
• 20% to 40% reduction in unused network inventory
• 1% to 5% reduction in component prices due to the supplier’s ability to reduce its average inventory levels by 25%
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Business Plan For TeleTouch Ltd (2010-2011)
• Improved customer service by achieving a 90% on-time installation rate and reducing the maximum installation lead time to 10 days
• 90% reduction in forecasting and planning cycle times
•Increased frequency of forecast planning, which improved the accuracy of both the demand plan and supply plan and reduced inventory costs for both the company and its suppliers
• 30% to 40% increase in employee productivity due to improved communications with suppliers
• Creation of a foundation for extending collaborative
processes to other product lines and international subsidiaries
Strategic Goals
• Automation of demand planning process across all business units
• Integration of agent stores into planning and distribution systems
• Introduction of standardized business processes
• Compilation and integration of all demand planning, Distribution, and logistics-related business data to create transparency and visibility of past, current, and future operations transactions
Results
• 133% ROI
• 21% internal rate of return
• 3.8-year payback period
• R 8032000 is 5-year net present value• R 6,400,000 increase in
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Business Plan For TeleTouch Ltd (2010-2011)
revenue per year due to accelerated store replenishment
• R 8,960,000 per year reduction in inventory carry costs
• R2688000 per year profit increase from improved product margins
• Improved transparency and accuracy of demand
Planning numbers
• Improved forecast frequency and granularity
• New level of reporting
• Improved negotiating power with suppliers resulting In better
Deals and rates.
Here we are giving type of strategy with the expected results (outcomes). So Tele touch can apply any of them for improving productivity as well as reducing cost.
We have Balance sheet of TeleTouch Ltd for the year ended 2009-2010TRADING & PROFIT AND LOSS A/C FOR THE YEAR ENDING 2009-
2010
Amount Amount Amount Amount
To opening stock 1,092,335 By Sales 3,669,034,482
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Business Plan For TeleTouch Ltd (2010-2011)
To Purchase account
260,360,000
Recharge coupon
911,275,862
CDMA Mobile phone
212,800,000 Talk time
749,482,758
Purchase of sim 5,560,000 VAS
443,793,103
Wireless hardware
42,000,000
Scheme of plan of sim
485,689,655
To Direct expenses
Hardware sets & technology
585,689,600
Operating expenses
77,640,000 Services
493,103,503
To Gross profit 3,329,942,447
Total 3,669,034,782 Total 3,669,034,482
To gross profit C/F
Balance
To salary 352,898,000
By gross profit B/F 3,329,942,447
To training and development
18,000,000
To recruitment exp
1,000,000
To Advertisement
200,000,000
Ad agency 100,000,000
Sponsorship 30,000,000
Out door event 30,000,000
Print media\Hording
20,000,000
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Business Plan For TeleTouch Ltd (2010-2011)
Other expenses 20,000,000
To outlet service 110,000,000
To Rent of office 100,000,000
To interior decoration exp
34,000,000
To market research
14,000,000
To Office expenses
To Miscellaneous exp
1,200,000
To I. T expenses 26,100,000
To other allowances
1,450,000
To social exp 2,000,000,000
To Net profit 471,294,447
Total 3,329,942,447 Total 3,329,942,447
BALANCE SHEET FOR THE YEAR ENDING 2009-2010
Liabilities Amount Amount Assets Amount Amount
Capital 1,203,827,980 Fixed Assets
707,107,032
Add new issue 10,00,000 Current Assets
17,381,876
@ R 10 10,000,000 Debtors
132,547,670
Deposit 10,000,000
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Business Plan For TeleTouch Ltd (2010-2011)
Add net profit 471,294,447
1,685,122,427 Bank
Debentures@12% 10,000,000
730,373,282
Unsecured Loans 10,000,000 Cash
4,092,756
Add loan from African
300,000,000 Prepaid interest
778,136
Development Bank
300,000,000
Loan and advances
406,024,218
Current Liabilities 3,182,543
Total 2,008,304,970 Total
2,008,304,970
R 28,972,288,000 TOTAL EXPENDITURE 2009-10 144,861,440,000 RS
We are raising this much of fund
We are having a program which are telecasted on star plus at prime time 8pmto 9pm
This is a talent hunt program in singing field and the name of the program is Desh ki Awaz and our Judge are A.R Rahman, Sunidhi Chauhan, Krishna kant.
There is Voting system through TeleTouch connection and We are expected to make profit that is 864 million Rs which we would invest in South Africa that is R172.8 million
IN THE ABOVE TABLE ITS SHOWS Construct a working spreadsheet so that the bottom-right cell shows the total sales or gross margin, or profit, whatever you need to measure Left cell shows the item and from which item we have got how much sale
South Africa is a great place of opportunities for telecommunication industry. After merging with Cell C in South Africa TeleTouch has made a significant growth. Cell C which is at the third place is enjoying a great market share in the market. It has got its license in 2003 .In this short span of time it has made a significant growth.
There are many competitors in the market and competition is really very dense among them. If we talk about the time period of 2008-2010 then in this time period we can say that we can expect a growth for teletouch.
In the present scenario if we talk about the present situation then after merging with Cell C it has shown a fine percentage of growth in the market. It has targeted the young generation when it merged with Cell C. Even in future also it would continue with the same segmentation of the market.
There are four major cities in South Africa. They are Johannesburg, cape Town, eastern Cape, Northern Cape. In these four cities Tele Touch is going to penetrate. These cities acquire major portion of the population. Approximately 80% of the total population is literate. So it is quite easy to enter such a market. If we look at the fixed line user then this ratio is also high. People are also using mobile phones in a great ratio. Internet utility has also increased to 35% only in the area of Cape town.
If we talk about the four P’s of marketing i.e. Product, Price, Place and Promotion then earlier also we have discussed about it that
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Business Plan For TeleTouch Ltd (2010-2011)
Our product is the telecom service to the customer. Pricing policy will be according to the price set by the strategy department. The place for our service is the four cites which have been mentioned above. Promotion schemes mainly will be through advertisement.
The African telecommunication sector has grown at the fastest pace in last three years as countries are increasingly concentrating on spreading the services.
StrengthsAccording to the United Nations International Telecommunications Union (ITU), the African continent has seen the fastest growth in the communication technology in last three years (2005-07) and will emerge as a vital market for the telecommunication industry, as reported by The Economic Times.
ITU revealed that last year, 65 Million new subscribers were added to the total subscriber base in Africa. Mobile phone subscription has also seen an unprecedented growth with one-third of the population using mobile whereas only one in every 50 people had mobile phone in 2000. In 2001, South Africa alone had over 50% of total subscribers in Arica, but by 2007, 85% of total subscribers were residing in other countries of the continent.
ITU also revealed that the African mobile phone industry proved all predictions wrong. The Information and Communication Technologies (ICT) industry of Africa is rapidly growing and Liberalization and transnational telecommunication services have given operators an opportunity to extend their business dimension and are providing various services.
Most of the African countries have set up their own independent regulatory bodies that are entrusted to maintain fair and competitive environment in the telecom industry. Consequently, people are getting benefits of low prices of quality telecom products.
Furthermore, the mobile communications have seen a huge
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infrastructure development and service extension. Heavy investments in the African telecommunication market because of vast growth opportunities for investors and extension of wireless and mobile communication technologies have tremendously contributed to the growth of African telecom industry.
However, though all the African countries have population that can purchase handset and have enough infrastructure equipment suppliers, yet they need to form pacts with each other so that the probable problems could be sough out. African telecom industry’s growth could be affected by the maintenance and approach towards extension of services in rural areas; therefore, countries should cooperate with each other.
Opportunities
South Africa has experienced significant growth in the number of mobile users since GSM mobile services were launched in the country in 1994. The penetration rate for mobile users increased from an estimated 2.4% at March 31, 1997 to an estimated 84% at March 31, 2007. As a result, Vodacom's South African revenue increased 24.1% and 19.1% in the 2006 and 2007 financial years, respectively. While we believe the mobile penetration rate will continue to increase, we do not expect that it will continue to grow at the same high rates that it has experienced in the recent past. Consequently, Vodacom is placing increased focus on customer retention and maintaining its market leadership by providing innovative value added services and data products and superior customer service as well as seeking new associate business opportunities in South Africa and gearing up to provide total converged solutions to corporates. Vodacom's previous focus of customer acquisition and selective growth in other African countries still remain focus areas. In furtherance of this strategy, in the 2005 financial year, Vodacom signed an alliance with its shareholder, Vodafone, which gives Vodacom access to Vodafone's branded products and services, global research and development and access to Vodafone's marketing and buying powers. In addition, Vodacom launched the first commercial 3G network in South Africa in December 2004. Vodacom also launched Vodafone Mobile Connect Cards, 3G/GPRS/HSDPA datacards providing fast, secure access to corporate networks
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Business Plan For TeleTouch Ltd (2010-2011)
from computers, Vodafone live!, with global and local content, picture and video messaging and downloads, Mobile TV and BlackBerry®. In addition, Vodacom recently launched 3G with HSDPA, giving its customers access to global high speed
broadband communications.
One important issue continues to be the relationship of provincial and local administrative structures to the national government.
163
A large part of the growth in mobile services was due to the success of prepaid services. Approximately 86.5% of Vodacom's South African mobile customers were prepaid customers at March 31, 2007 and 93.2% of all gross connections were prepaid customers in the 2007 financial year. During the 2007 financial year the growth in contract customers in South Africa exceeded the growth in prepaid customers as a result of the migration of the South African middle class from prepaid to contract services. The increasing number of prepaid users, who tend to have lower average usage, together with the lower overall usage as the lower end of the market continues to be penetrated have resulted in decreasing overall average revenue per customer.
Threats South Africa's post-apartheid governments have made remarkable progress in consolidating the nation's peaceful transition to democracy. Programs to improve the delivery of essential social services to the majority of the population are underway. Access to better opportunities in education and business is becoming more widespread. Nevertheless, transforming South Africa's society to remove the legacy of apartheid will be a long-term process requiring the sustained commitment of the leaders and people of the nation's disparate groups.
The Truth and Reconciliation Commission (TRC), chaired by 1984 Nobel Peace Prize winner Archbishop Desmond Tutu, helped to advance the reconciliation process. Constituted in 1996 and having completed its work by 2001, the TRC was empowered to investigate apartheid-era human rights abuses committed between 1960 and May 10, 1994; to grant amnesty to those who committed politically motivated crimes; and to recommend compensation to victims of abuses. In November 2003, the government began allocation of $4,600 (R30,000) reparations to individual apartheid victims. The TRC's mandate was part of the larger process of reconciling the often conflicting political, economic, and cultural interests held by the many peoples that make up South Africa's diverse population. The ability of the government and people to agree on many basic questions of how to order the country's society will remain a critical challenge.
Business Plan For TeleTouch Ltd (2010-2011)
Prior to April 27, 1994, South Africa was divided into four provinces and 10 black "homelands," four of which were considered independent by the South African Government. Both the interim constitution and the 1997 constitution abolished this system and substituted nine provinces. Each province has an elected legislature and chief executive--the provincial premier. Although in form a federal system, in practice the nature of the relationship between the central and provincial governments continues to be the subject of considerable debate, particularly among groups desiring a greater measure of autonomy from the central government. A key step in defining the relationship came in 1997 when provincial governments were given more than half of central government funding and permitted to develop and manage their own budgets. However, the national government exerts a measure of control over provinces by appointing provincial premiers.Although South Africa's economy is in many areas highly developed, the exclusionary nature of apartheid and distortions caused in part by the country's international isolation until the 1990s have left major weaknesses. The economy is in a process of transition as the government seeks to address the inequities of apartheid, stimulate growth, and create jobs. Business, meanwhile, is becoming more integrated into the international system, and foreign investment has increased. Still, the economic disparities between population groups are expected to persist for many years, remaining an area of priority attention for the g
Political analysis
The licensing and provision of telecommunications services in the Republic of South Africa has historically been subject to the Telecommunications Act and the extensive regulations made under the Telecommunications Act. The Telecommunication Act was repealed when the Electronic Communications Act came into effect on July 19, 2006.
The Electronic Communications Act aims to supplement or replace sector specific legislation and change the market structure from a vertically integrated, infrastructure based, market structure to a horizontal, service based, technology neutral, market structure with a number of separate licences being issued for different areas, and to clarify the different roles of ICASA and the Minister
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Business Plan For TeleTouch Ltd (2010-2011)
of Communications in policy development, licensing and regulation. The Act seeks to promote convergence and establish the legal framework for convergence in the broadcasting signal distribution and telecommunications sectors. While a new licensing regime has been created by the Electronic Communications Act, all existing licences are to remain valid until converted to new licences in accordance with the new licensing regime. Regulations made under the Telecommunications Act are also to remain in force until new regulations required are made to fully implement the provisions of the Electronic Communications Act. We expect that the new licensing framework will result in the market becoming more horizontally integrated and will substantially increase competition in our fixed-line business. In addition, the process of converting our licences to the new licensing framework may be lengthy and complex and could result in the imposition of additional obligations and limitations in connection with the converted licences, which could disrupt our business operations and decrease our net profit. As a result, the regulatory environment is evolving, lacks clarity in a number of areas and is subject to interpretation, review and amendment as the telecommunications industry is further developed and liberalised. In addition, the regulatory process entails a public comment process, which, in light of the politicised issue of privatisation of industries such as telecommunications in South Africa, makes the outcome of the regulations uncertain and may cause delays in the regulatory process. A number of significant matters have not been addressed or clarified.
Economic analysisSouth Africa has a two-tiered economy; one rivaling other developed countries and the other with only the most basic infrastructure. It therefore is a productive and industrialized economy that exhibits many characteristics associated with developing countries, including a division of labor between formal and informal sectors, and uneven distribution of wealth and income. The formal sector, based on mining, manufacturing, services, and agriculture, is well developed.
The transition to a democratic, nonracial government, begun in early 1990, stimulated a debate on the direction of economic policies to achieve sustained economic growth while at the same time redressing the socioeconomic disparities created by
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Business Plan For TeleTouch Ltd (2010-2011)
apartheid. The Government of National Unity's initial blueprint to address this problem was the Reconstruction and Development Program (RDP). The RDP was designed to create programs to improve the standard of living for the majority of the population by providing housing--a planned 1 million new homes in 5 years--basic services, education, and health care. While a specific "ministry" for the RDP no longer exists, a number of government ministries and offices are charged with supporting RDP programs and goals.
The Government of South Africa demonstrated its commitment to open markets, privatization, and a favorable investment climate with its release of the crucial Growth, Employment and Redistribution (GEAR) strategy--the neoliberal economic strategy to cover 1996-2000. The strategy had mixed success. It brought greater financial discipline and macroeconomic stability but failed to deliver in key areas. Formal employment continued to decline, and despite the ongoing efforts of black empowerment and signs of a fledgling black middle class and social mobility, the country's wealth remains very unequally distributed along racial lines. However, South Africa's budgetary reforms such as the Medium-Term Expenditure Framework and the Public Finance Management Act--which aims at better reporting, auditing, and increased accountability--and the structural changes to its monetary policy framework, including inflation targeting, have created transparency and predictability and are widely acclaimed. Trade liberalization also has progressed substantially since the early 1990s. South Africa reduced its import-weighted average tariff rate frommore than 20% in 1994 to 7% in 2002. These efforts, together with South Africa's implementation of its World Trade Organization (WTO) obligations and its constructive role in launching the Doha Development Round, show South Africa's acceptance of free market principles.
Financial PolicySouth Africa has a sophisticated financial structure with a large and active stock exchange that ranks 17th in the world in terms of total market capitalization. The South African Reserve Bank (SARB) performs all central banking functions. The SARB is independent and operates in much the same way as Western central banks, influencing interest rates and controlling liquidity through its interest rates on funds provided to private sector banks. Quantitative credit controls and administrative control of deposit and lending rates have largely disappeared. South African banks adhere to the Bank of International Standards core standards.
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Business Plan For TeleTouch Ltd (2010-2011)
The South African Government has taken steps to gradually reduce remaining foreign exchange controls, which apply only to South African residents. Private citizens are now allowed a one-time investment of up to 750,000 rand (R) in offshore accounts. Since 2001, South African companies may invest up to R750 million in Africa and R500 million elsewhere.
While South Africa features a highly developed financial and legal infrastructure at the core of its economy, it also suffers from high levels of unemployment and income disparity. With respect to the economically disadvantaged communities of the population, communications providers must compete with other basic necessities for customers' limited resources. In a number of areas of the country and for particular communities, mobile services are the preferred alternative to fixed-line services, primarily due to mobility. Although the fixed-line penetration rate in South Africa was only 9.8% and 10.0% as of March 31, 2007 and March 31, 2006, respectively, due to the diverse rural geography and demographic factors in South Africa, we do not expect South Africa's fixed-line penetration rates to increase in the near term. In the 2007 and 2006 financial years, our total fixed access lines decreased primarily due to a decrease in the number of residential PSTN lines, partially offset by an increase in ISDN channels and business postpaid PSTN lines. Residential postpaid PSTN lines were adversely impacted by customer migration to mobile and higher bandwidth products such as ADSL and lower connections, while the decrease in prepaid PSTN lines was primarily as a result of customer migration to mobile services and our residential postpaid PSTN services. Similarly, traffic declined in both the 2007 and 2006 financial years, being adversely affected by the increasing substitution of calls placed using mobile services rather than our fixed-line services and dial-up Internet traffic being substituted by our ADSL service, as well as the decrease in the number of residential PSTN lines and increased competition in our payphone business. During the same period, ISDN channels
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Business Plan For TeleTouch Ltd (2010-2011)
and ADSL services have increased, driven by increased demand for higher bandwidth and functionality. In light of these market conditions, we will seek to maintain existing customers in the face of increasing competition and increase sales of data products while utilizing existing capacity, largely through increased sales of our bundled products.
TECHNOLOGY WHICH IS BEING PROVIDED BY TELETOUCH
1G, 2G, 2.75G, 3G, TECHNOLOGY WHICH WILL BE PROVIDED
BY TELETOUCH IN 2010-2011.
We will introduce these latest technologies in this expansion year:
3.75G, 4G
WIRE LESS HARD WARES
Wireless Broadband Routers with Modems
Wireless Routers
Travel Routers
Dual-Band Routers
We are providing 16 type of CDMA sets
VoIP Routers
Many companies are turning to VoIP technology to cut phone bills
by using the internet to place calls. The only catch is that VoIP
requires high-performance, high-bandwidth throughput to avoid
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Business Plan For TeleTouch Ltd (2010-2011)
voice break-up and other undesirable telephony events. SMC
Networks' Barricade g VOICE ADSL Router combines an ADSL
wireless router with a Voice over IP gateway, giving you an
integrated voice and data office network in one box. You can
share your ADSL Internet connection with local PCs through a
built-in four-port Ethernet hub, or make wireless connections via a
54 Mbps access point. Plus you can plug in a telephone and save
money by using the fully featured VoIP gateway.
Cordless Internet Telephony Kits
If your office uses Skype, Linksys' Cordless Dual-Mode Internet
Telephony Kit (CIT300) is aimed at you. It comes with the handset,
charger and a USB Base Station that plugs directly into your
computer. Dual-mode capability lets you choose whether to make
calls over a standard telephone line or with the Skype application
running on your PC. Just select who you want to talk to from your
contact list on your handset, press a button, and get ready to talk.
Wireless Access Points
You can expect to get an effective 100-foot radius of indoor
service from a single wireless router, and 300 feet outdoors,
where there are fewer obstacles to interfere with the radio waves.
If you want to expand the service area of your wireless network
beyond that, you need to deploy additional wireless access points.
Usually these repeaters are connected with your main router by
standard Ethernet cables, but sometimes they use wireless
Access Point (3CRWE776075) is a cost-effective dual-band, Power
over Ethernet (PoE) solution. Providing ultra-fast speeds, this
access point supports a total of up to 128 wireless users.
Five Year marketing Plan
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Business Plan For TeleTouch Ltd (2010-2011)
As per the report given by strategic dept. we would like to state that we are going to expand our business in Verreniging having a population of all most 5,97,948 and which is also the 7th largest city of South Africa. From the survey it was found that only 60.2% of the people are using cellphones.
Another city is Pretoria and Ginpopo having a population of 1,985,984 and 584469. Thus we find that we have a lot of opportunities to expand in these areas as only 70% of the people use cellphones there.
BUSINESS STRATEGY
We would like to state that TeleTouch is paying its service in 18 different places. Among them our major concern would be on places like Eastern cape, Johannesburg, Northern Cape and Cape town since in 2010 FIFA world cup is going to be held. And the remaining 14 places would be our main attention to be focused, in order to capture the remaining 20 % of the population which is not using cell phones.
Following are the competitive strategy, TeleTouch must adopt for doubling its market share from 5.5% to 11%:-
It should utilize its well established brand to meet lifestyle aspirations in the South African market.
Its should cater its value proposition to the market, justifying a premium price by utilizing the strength of its brand.
Simplicity would be the second piece of strategy of TeleTouch.
As TeleTouch is providing both prepaid and postpaid offers, it will be central for TeleTouch to push a simple and flexible offer in the market to attract its target market and capture market share in an increasingly postpaid market.
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It should focus more on its Distribution mix. For this it should open its own shops and telesales outlets which will be complementary to the existing network.
It would be important if we use a comprehensive range of direct marketing strategies to reach our market, including SMS messaging, direct mail and e-mail.
We would also focus our attention on providing Conference calling which has become important in the organizations
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Business Plan For TeleTouch Ltd (2010-2011)
TeleTouch must also focus on better Customer Service
If we want to have a secure data network in place, we've to add the tools—such as Customer Relationship Management (CRM) software tied to your unified communications phone system—that will help us to serve customers better. Before upgrading our network, there are some things to consider. Such as:
What do our customers want? It's no use spending on technology that doesn't solve our company's particular customer service problems. Talk to customers and send out surveys to determine what improvements they'd like to see. Talk to others in your industry to see what's working and what's not.
Ask the employees what they need. Frontline sales people and customer service representatives (reps) have a good idea of what's working and what's not. It would be better to involve them from the beginning as we have to create solutions designed to meet everyone's needs.
Prepare the workers for a change. Create a transition plan that alerts employees to the changes to come. Focus on the benefits to them.
Work with the partner for an easy transition. The time required to upgrade the network and add customer service applications depends on factors such as company's number of employees, locations and customer needs. A proper help must be taken from the partner for a real-world estimate of how long it might take and how best to transition with minimum disruption.
A proper way must be designed to collect, organize, analyze, and disseminate information about customers, including purchases and returns, buying habits, past inquiries, and service contracts.
Adding wireless connectivity to the network can also help to serve customers better. With wireless connectivity, we can:
Stay in touch wherever you go. Wireless IP phones are as easy to use as traditional cordless phones but have a far greater signal range and can provide much more functionality. With wireless IP phones, our workforce can roam the sales floor, office, campus, or warehouse, answering customer inquiries and accessing company data, such as an inventory database.
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Business Plan For TeleTouch Ltd (2010-2011)
Speed delivery and reduce delivery errors. Enable delivery vehicle personnel to access the company database for updated delivery and customer information from their vehicles.
Because of the low density of fixed line phones in South Africa, cell phones are the only means through which the locals can communicate with each other. They are also a status symbol that cuts across the many color and cultural barriers of South Africa. For many of South Africa’s poorest, owning a cell phone means owning a symbol of modernity and luxury in a country which has had more than its share of hardship. A quarter of South Africa’s population of 40 million currently uses a mobile phone, with low-income people as the fastest growing group of cellphone owners. Our ambitious plans for expansion are driven by a belief that it can capture the younger, less-moneyed segment of the cellphone market with an innovative pricing structure as well as an attractively hip branding campaign. The company’s focus is on offering fresh, lifestyle-driven products as well as a range of reduced-rate options and per second billing, which can make a difference among price-conscious consumers (most cell phone providers charge by the minute). These features represent an appealing proposition to the average person on the street, and in Africa that person is black.
We would also focus on recognizing customers as “individuals with different communication needs.” The goal is to appeal to a population that includes stay-at-home moms to corporate climbers, or otherwise put, the youth and yuppie markets – two crucial, ever-expanding facets of the cell phone business in South Africa. One way TeleTouch would approach these markets during these period by offering subscribers greater flexibility in their contract options, per second billing, and one-rate plan fees to wave the connection fee.
We would also have to go for a teaser campaign so that consumer could also get to know this brand.
So far if we the product mix is concerned we would like to pay the attention of the department that we are providing services like GSM, CDMA, WiMAX, and 3G services in those 20 places. It includes mobile and fixed line wireless voice, data, and value added services.
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Some new offers will be launched in SMS and MMS, as we know that the demand in the fields of telecommunications is increasing rapidly.
Individuality:
1. We will launched the first cellular product developed specifically for the youth, called ‘tele youth’.
2. Our contract subscribers are afforded the luxury to choosing their own cellular number, subject to availability.
Choice:
1. Our prepaid subscribers are able to switch between different tariff options, when they feel like it – a first for S.A
2. Choosing your most frequently called numbers and saving money on these become a reality with the introduction of our friends and family discounts.
Value for money :
1. We will be the first to introduce ‘CALL ME BACK’ across network, allowing customers to ask someone to call you on your or TeleTouch – free of charge.
2. We will be offering per seconds billing across all prepaid and contract packages.
3. We would also take directory enquiries one step further by sending you a requested number via SMS at no charge.
4. When customers buy a chat card with value of R150 or more consumers will get extra airtime value, up to R75 free.
Since our target customers range from 17-60 years so our product must be designed on this basis. As different age people have different reasons to choose there way of communications.
The company is under the growing stage and thus its to work much on aggressive advertisement, should go for new market, go for niche marketing.
The dept. has to work on the areas of products and services, the availability of distribution points of recharge cards and vouchers which would yield higher levels of satisfaction.
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TeleTouch sim offer
1)6 month R300
You get R390
The 6 month steady chat card gives you R390 worth of airtime spread evenly over 6
months for only R300.
That means you get R65 airtime per month.
2) 12 month R900
You get R1200
The 12 month steady chat card gives you R1200 worth of airtime spread evenly over
12 months for only R900.
That means you get R100 airtime per month.
You get up to R300 off any cell phone of your choice.
3) 18 month R1350
You get R1800
The 18 month steady chat card gives you R1800 worth of airtime spread evenly over
18 months for only R1350.
That means you get R100 airtime per month.
You get up to R400 off any cell phone of your choice.
4) 24 month R1750
You get R2400
The 24 month steady chat card gives you R2400 worth of airtime spread evenly over
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Business Plan For TeleTouch Ltd (2010-2011)
24 months for only R1750.
That means you get up to R100 airtime per month.
You get up to R600 off any cell phone of your choice.
5) New friends & family
With TeleTouch new Friends and Family service you can now select not 4 but 7 of your most frequently dialed numbers to receive our discounted Friends and Family rates. So you will be saving money every time you call your mum, best friend, boyfriend…
Plus if you select another TeleTouch number to be on your Friends and Family list you will be paying the lowest mobile rate in South Africa when you call them - 75c per minute off peak and R1.50 per minute during peak times.
As a TeleTouch subscriber you can choose seven Friends & Family numbers on any of our prepaid packages:
* Steady chat
* Easy chat standard
* Easy chat all day
* Easy chat per second
As a TeleTouch subscriber, you can choose seven Friends & Family numbers on any of these contract packages:
* All control chat options
* All casual chat options
* All active chat options
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Business Plan For TeleTouch Ltd (2010-2011)
You can choose any mobile or fixed national number, except special numbers like premium, shared or international numbers to be your Friends & Family numbers.
6) Control chat 50
Contract length (months) 12 or 24
Connection fee R 114
Monthly fee R 50
Included monthly airtime R 50
Included SMS per month 25
7) Control chat 75
Contract length (months) 12 or 24
Connection fee R 114
Monthly fee R 75
Included monthly airtime R 85
Included SMS per month 25
8) Control chat 100
Contract length (months) 12 or 24
Connection fee R 114
Monthly fee R 100
Included monthly airtime R 115
Included SMS per month 100
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Business Plan For TeleTouch Ltd (2010-2011)
9) Control chat 125
Contract length (months) 12 or 24
Connection fee R 114
Monthly fee R 125
Included monthly airtime R 145
Included SMS per month 100
10) Control chat 150
Contract length (months) 12 or 24
Connection fee R 114
Monthly fee R 150
Included monthly airtime R 175
Included SMS per month 100
11) Control chat 175
Contract length (months) 12 or 24
Connection fee R 114
Monthly fee R 175
Included monthly airtime R 205
Included SMS per month 100
12) Control chat 200
Contract length (months) 12 or 24
Connection fee R 114
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Monthly fee R 200
Included monthly airtime R 235
Included SMS per month 100
13) Control chat 225
Contract length (months) 12 or 24
Connection fee R 114
Monthly fee R 225
Included monthly airtime R 265
Included SMS per month 100
14) Control chat 250
Contract length (months) 12 or 24
Connection fee R 114
Monthly fee R 250
Included monthly airtime R 295
Included SMS per month 100
15) Control chat 300
Contract length (months) 12 or 24
Connection fee R 114
Monthly fee R 300
Included monthly airtime R 350
Included SMS per month 100
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16) Control chat 350
Contract length (months) 12 or 24
Connection fee R 114
Monthly fee R 350
Included monthly airtime R 410
Included SMS per month 100
17) Control chat 400
Contract length (months) 12 or 24
Connection fee R 114
Monthly fee R 400
Included monthly airtime R 470
Included SMS per month 100
18) Control chat 450
Contract length (months) 12 or 24
Connection fee R 114
Monthly fee R 450
Included monthly airtime R 530
Included SMS per month 100
19) Control chat 500
Contract length (months) 12 or 24
Connection fee R 114
Monthly fee R 500
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Included monthly airtime R 600
Included SMS per month 100
20) Control chat 600
Contract length (months) 12 or 24
Connection fee R 114
Monthly fee R 600
Included monthly airtime R 725
Included SMS per month 100
21) Control chat 700
Contract length (months) 12 or 24
Connection fee R 114
Monthly fee R 700
Included monthly minutes R 850
Included SMS per month 100
21) Casuals SMS
Contract length (months) 1, 12 or 24
Connection fee R 114
Monthly fee R 115
Included monthly minutes
Included SMS per month 200 anytime SMS
22) Casual chat 100
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Contract length (months) 1, 12 or 24
Connection fee R 114
Monthly fee R 115
Included monthly minutes 100 off-peak
Included SMS per month
23) Casual chat anytime
Contract length (months) 1, 12 or 24
Connection fee R 114
Monthly fee R 130
Included monthly minutes 50 anytime
Included SMS per month
24) Active chat 100
Contract length (months) 1, 12 or 24
Connection fee R 114
Monthly fee R 250
Included monthly minutes 100 anytime
Included SMS per month
25) Active chat 220
Contract length (months) 1, 12 or 24
Connection fee R 114
Monthly fee R 399
Included monthly minutes 220 anytime
Included SMS per month
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26) Business chat standard
Contract length (months) 1, 12 or 24
Connection fee R 114
Monthly fee R 185
Included monthly minutes none
Included SMS per month
27) Business chat 400
Contract length (months) 1,12 or 24
Connection fee R 114
Monthly fee R 650
Included monthly minutes 400 anytime
Included SMS per month
28) Business chat 700
Contract length (months) 1, 12 or 24
Connection fee R 114
Monthly fee R 1100
Included monthly minutes 700 anytime
Included SMS per month
29) Business chat 1000
Contract length (months) 1, 12 or 24
Connection fee R 114
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Monthly fee R 1500
Included monthly minutes 1000 anytime
Included SMS per month
30) Telemetry
Contract length (months) 1, 12 or 24
Connection fee R 114
Monthly fee R 42
Included monthly minutes
Included SMS per month 80 anytime SMS
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RECHARGE COUPONS
1) Additional airtime top up
You can top up at any stage during the month if you require additional airtime or load
Multiple steady chat vouchers.
Either goes to the nearest ATM or purchase a chat card or steady chat card at any
Participating TeleTouch outlet country wide.
2) R5
Recharge your airtime with TeleTouch chat cards or at ATM or
Standard Bank Auto-Bank near you.
3) R25
Recharge your airtime with TeleTouch chat cards or at ATM or
Standard Bank Auto-Bank near you.
4) R35
Recharge your airtime with TeleTouch chat cards or at ATM or
Standard Bank Auto-Bank near you.
5) R39
Recharge your airtime with TeleTouch chat cards or at ATM or
Standard Bank Auto-Bank near you.
6) R50
Recharge your airtime with TeleTouch chat cards or at ATM or
Standard Bank Auto-Bank near you.
7) R70
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Recharge your airtime with TeleTouch chat cards or at ATM or Standard Bank Auto-
Bank near you.
8) R150
Recharge your airtime with TeleTouch chat cards or at ATM or Standard Bank Auto-
Bank near you.
9) R300
Recharge your airtime with TeleTouch chat cards or at ATM or
Standard Bank Auto-Bank near you.
10) R500
Recharge your airtime with TeleTouch chat cards or at ATM or
Standard Bank Auto-Bank near you.
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TELE TOUCH SERVICES
1) Our superb service doesn't stop at our borders.
With international roaming we give you great network coverage abroad.
Tele touch now has: 395 Roaming Partners in 166 countries around the world and is also offering its subscriber’s access to four Maritime Services and one satellite network. Better yet, our fantastic tariffs mean that you'll always know what you're paying, wherever you go - no "out of order" payphones that gulp down coins, no hotel phone rates and no lopsided bills when you get home. There's simply no easier way to stay Connected.
2) Cell phone is lost or stolen
You must contact the Contact Centre on 140, free from a Tele touch cell phone to obtain
an ITC number. Only once the ITC number is obtained can you report the matter to the
Police for a case number. The case number is only used for T-Cover incidents or to
Blacklist your cell phone.
3) Its easy and uncomplicated.
First of all, your phone needs to support GPRS in order for you to receive MMS on your phone.
If your phone doesn’t support GPRS you can still receive MMS by using the Web as your phone.
MMS can be sent and received:
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Tele touch phone to Tele touch phone, Tele touch phone to other networks, web to Tele touch phone, Tele touch phone to email
It is not complicated at all!
There are two means in which you can send MMS and that is with your phone or the web or both.
If you own a cell phone that possesses a camera and GPRS facilities it is most likely that it can send and receive MMS. Subscribers with MMS phone will be able to send and receive MMS on their phones. Once registered on the web and if MMS is activated, subscribers will be able to send MMS from the web to cell phone.
To activate your phone with MMS you can:
Request MMS settings at anytime by simply dialing *147#.
You will then receive MMS settings on your cell phone.
If prompted for a PIN, please enter 12345. All you have to do is to save the settings you receive.
Then switch off your cell phone and turn it on again after a few seconds.
With the activation process a confirmation will appear informing you as to whether or not your cell phone is MMS compatible. If it is not MMS compatible you will be able to use the web site as a MMS phone to receive MMS’s. In which case you will receive an SMS with a logon address, message id and password.
4) Standard services
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T-fax & T-data T-fax lets you send and receive faxes; while T-data lets you send and receive e-mail, all via your cell phone and laptop or PDA.
Dual sim - You don't have to have multiple personalities to qualify for dual SIM…it simply means that you can have two mobile phones with separate SIM cards that are linked, enabling you to be reached wherever you are.
32k SIM -card with WIB (Wireless Internet Gateway Browser) - provides additional web-based applications.
Voice mailbox answers your incoming calls when you are unavailable.
Fax mail allows you to receive fax messages in your voice mailbox.
Emergency services dial 112 to call police, fire or ambulance services.
Directory enquiries dial 146 to find white and yellow pages numbers.
Customer service dials 140 for information and assistance.
Call barring bar calls and prevent unauthorized use of your cell phone.
Call waiting lets you know someone else is trying to get through while you're on a call.
Call holding lets you put one call on hold while you make or take another.
Call forwarding forward calls to another number.
*CLIP (calling line identity presentation) so you know who's calling before you answer. (*monthly cost attached)
CLIR (calling line identity restriction) hide your number when calling another person.
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Call me back it’s free, it's convenient, it's simple…and you can use it 5 times a day across all mobile networks.
Per second billing why pay for more than you actually use?
SMS packs add a pack to your existing contract to receive a fixed number of sms messages a month.
Minute collection didn’t use all your free minutes this month? Don't panic, you can use them next month.
5) MISSED CALL
With missed call notification you will be notified of calls received when your phone was switched off.
You will get a sms with the number date and time of the call you missed as soon as You switch your phone back on.
All you need is for your voice mail to be activated.
No cost to activate.
6) How conference call works
Making or receiving a conference call is as easy as making a normal call. All you have to do to initiate a conference call is to call the first person and ask them to hold while you setup the Conference Call. Then press the "hold" button to place him/her on hold.
Then call the second person and invite them to join the Conference Call. And put them On hold.
Once all the calls are activated, press "options" and go to "conference: to start the Conference Call. Put the conference on hold by pressing "hold". Repeat the process until you have a maximum of six people, including yourself, on the Conference Call. To end the conference, simply end the call.
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Just remember that your phone has to be activated for Conference Call, and that the originator is charged for the calls made from his/her phone.
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Tele touch calling cost
For control that’s tighter than a Victorian corset, try control chat!
There's something reassuring about predictability, knowing what you can guarantee on and what to be prepared for. No matter what you are doing, you want a consistent contract so that you know what you are in for every month!
With control chat, managing your cell phone bill has never been easier.
In fact, it offers you the best of both worlds – it provides you with the stability and benefits of a contract but with the freedom to choose upfront how much you want to spend each month.
You get to choose a contract period of 12 or 24 months and for the duration of your contract a set amount will be debited from your bank account and credited to your cell phone account every month.
Plus, aside from helping you control your cellular expenditure, once you have reached your monthly contract limit – and really need to make that call – you can simply top up your airtime immediately with tele touch instant recharge.
You can accumulate a maximum airtime balance equal to three times your control chat monthly credit amount (i.e. control chat 50 where you get R50 of value you can carry over R150 and control chat 125 where you get R145 of value you can carry over a maximum of R435). Note: the maximum rollover amount excludes any recharges done by yourself
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Unused SMS's will not rollover to the next month
So what do you get with each control chat package?
# Control chat 50 gives you 25 free monthly SMS
# Control chat 125 gives you R145 airtime and 100 free monthly SMS
# Control chat 300 gives you R350 airtime and 100 free monthly SMS
What more could you ask for – It’s the choice of having control in the palm of your hand.
Friends & family peak
Tele touch to Tele touch R 1.25
Tele touch to other mobiles & landlines R 2.00
Friends & family off-peak
Tele touch to Tele touch R 0.60
Tele touch to other mobiles & landlines R 1.00
Peak call p/m
Tele touch to Tele touch R 2.00
Tele touch to other mobile R 2.50
Tele touch to telkom R 2.25
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International calls
Country Price
Australia R 9.00
Botswana R 4.00
Canada R 9.00
Cayman Island R 9.00
Greenland R 9.00
Lesotho R 4.00
Malawi R 4.00
Malaysia R 9.00
Mozambique R 4.00
Namibia R 4.00
New Zealand R 9.00
St Helena R 9.00
Swaziland R 4.00
UK R 9.00
USA R9.00
Zambia R 5.00
Zimbabwe R 5.00
Rest of the world R 13.00
SMS per message R 0.60
Off peak call p/m
Tele touch to Tele touch R 1.20
Tele touch to other mobile R 1.40
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Business Plan For TeleTouch Ltd (2010-2011)
Tele touch to telkom R 1.30
International callsCountry Price
Australia R9.00
Botswana R 4.00
Canada R 9.00
Cayman Island R 9.00
Greenland R 9.00
Lesotho R 4.00
Malawi R 4.00
Malaysia R 9.00
Mozambique R 4.00
Namibia R 4.00
New Zealand R 9.00
St Helena R 9.00
Swaziland R 4.00
UK R 9.00
USA R 9.00
Zambia R 4.00
Zimbabwe R 4.00
Rest of the world R 13.00
SMS per message R 0.25
Plan for In-house advertisement dept .
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Business Plan For TeleTouch Ltd (2010-2011)
South Africa is one country which is light years ahead of other
countries when it comes to mobile advertising. It is considered
the hottest market right now and the numbers speak for
themselves. The average response rate for mobile advertising
campaigns in South Africa is anywhere from 10% to 25%, which is
nothing short of amazing.
Mobile phone is considered the hottest advertising medium in
South Africa today and it is predicted that mobile advertising will
cover most of the country in next three years.
Teletouch witnessed rapid success during the initial years, but
gradually began to struggle with changing market dynamics and
stiff competitive pressures leading to: slowing subscriber growth
high customer churn escalating costs with little scale advantages
lack of clear focus.
The result, an inadequate growth trajectory, was against a
backdrop of substantially bigger competitors with deep pockets.
TeleTouch needed a fast turnaround to pull its business back to
stability, and then move towards profitability and growth in line
with Shareholder expectations. The Solution TeleTouch looked
diagnose the problem and formulate a solution, a joint team of
consultants and TeleTouch team members worked diligently to
assess the market prospects and strategic options for TeleTouch.
Working closely with the TeleTouch Management Team/Executive
Committee, the team devised an inspiring vision and a 3-year
corporate strategy to put the company back on the path to
profitability and growth. The key elements of the strategy were to
focus on operational efficiency for increased service levels and
margins exploit increased efficiency to offer best value for
money services aggressively increase market penetration via
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new pricing complement own customer base with targeted
Mobile Virtual Network Operators to penetrate hard to-reach
segments.
The Result The implementation of the strategy has resulted in
significant and cash flow improvement without workforce
reduction. Positive signs are evident throughout the business,
signaling success: strategy execution is being driven by the board
of director supported by a fully committed executive team
company-wide clarity on the strategic direction enabling focus
step-change improvement in customer experience improved IT
and network operations ensuring service quality. At the outset,
highly experienced cell c consultants with specific mobile sector
expertise conducted a thorough review of teletouch strategy and
future outlook through an intense exercise lasting 2.5 weeks. It
became clear that the existing strategy did not take into account
the changing market realities. This had led to a lack of clarity
and focus throughout Teletouch that was hampering growth and
profitability Teletouch management team agreed with the team’s
findings, and entrusted Cell C with the critical responsibility of
leading an effort to help develop Teletouch long-term strategy and
vision. A joint cell c and Teletouch team launched a
comprehensive 14-week project to redefine the company’s
corporate strategy and vision. The team started with developing
unconstrained views of market opportunities and likely evolution
scenarios based on rigorous data-driven analysis. Then having
modeled and tested various strategic options, the team was
able to develop Teletouch new vision and a promising 3-year
corporate strategy. The recommended strategy was embraced by
Teletouch management team and approved by its Board as it
offered practical steps towards value creation, supported by
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Business Plan For TeleTouch Ltd (2010-2011)
clearly defined plans to execute them. cell c then continued to
support TeleTouch through key deployment stages of the
corporate Strategy, working intimately with the company through
a phased approach: Implementation Planning identified and
quantified opportunities to improve operational efficiency
identified measures to fix the basics throughout the business
established implementation plans with benefits tracking, and a
clear governance structure.
Channel Strategy derived an integrated view of profitability
across the existing channel portfolio developed clear channel
strategy to grow penetration and profitability created a detailed
implementation program for existing and new channels IT
Assessment assessed IT capabilities to support current and future
business requirements evaluated sourcing options and
determined optimal solution supported by a clear business case.
Outlined recommendations to improve quality and operational
efficiency. Teletouch adopted key principles from its Collaborative
Business Experience methodology, by working alongside
TeleTouch throughout the corporate strategy development and
key deployment stages. TeleTouch continues to growth and
strategic strength.
Teletouch has launched an ambitious new direct marketing
program; the initiative is multi-faceted and will comprise a
number of on-going, fully automated direct marketing programs.
"We will be using a comprehensive range of direct marketing
strategies to reach our market, including sms messaging, direct
mail, and e-mail,"
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Business Plan For TeleTouch Ltd (2010-2011)
We will automate the marketing processes required to plan,
define, execute and optimize multi-dimensional campaigns.
"Key to a successful campaign is the establishment of a dialogue
between marketer and customer, facilitated by the tailoring of the
messages to suit specific niche markets - with a tone appropriate
to these niches,". "From a technical perspective, we will have
'closed-loop' data flows, meaning that interaction with our
customers will be facilitated through a number of avenues,
including our call center, and will often be triggered by events
pertinent to them."
The objectives of the program are a "better user experience" and
the support of the teletouch brand in South Africa through the use
of integrated data systems for the benefit of its customers.
The teletouch implementation effort was successfully completed
within three months, including the creation of a marketing data
mart. "Rapid deployment is typical of teletouch marketing projects
and key to achieving an early return on investment," "teletouch
joins an impressive group of major telecommunications brand that
have improve their marketing processes and gain business
advantage."
Our solutions integrate existing infrastructure to orchestrate the
assembly, enhancement and delivery of optimal role based
business processes to the appropriate channels. Business value is
realized through improved employee productivity, savings in
operational costs, and increased business adaptability.
This news release includes "forward-looking statements" that are
subject to risks, uncertainties and other factors that could cause
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Business Plan For TeleTouch Ltd (2010-2011)
actual results or outcomes to differ materially from those
contemplated by the forward-looking statements. Forward-looking
statements in this release are generally identified by words, such
as "believes," "anticipates," "plans," "expects," "will," "would,"
"guidance," "projects" and similar expressions which are intended
to identify forward-looking statements. There are a number of
important factors that could cause the results of teletouch to differ
materially from those indicated by these forward-looking
statements, including, among others, potential difficulties in the
assimilation of operations, strategies, technologies, personnel and
products of acquired companies and technologies, the impact of
perceived or actual weakening of economic conditions on
customers' and prospective customers' spending on teletouch;
quarterly fluctuations in teletouch revenues or other operating
results.
In case you’re wondering how it’s possible, let me explain.
1. Mobile advertising is cost effective. It’s way cheaper than
traditional advertising methods like TV, magazines, or radio. And it
delivers tremendous results.
2. You can create a mobile advertising campaign and launch it
within a week’s time. And you can see the results in a day or two.
This is simply unimaginable in the case of traditional advertising.
3. Most importantly, South African mobile users are prolific when it
comes to mobile web. A majority of mobile users use mobile
internet very regularly and this helps mobile advertisers create
interactive mobile advertising campaigns to reach out to them.
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Already, South African students have mobile advertising as part of
their syllabus, in case you don’t know. It can only mean one thing
and that is the next generation will be even more receptive to
mobile advertising.
The current economic crisis has taken its toll on a lot of companies
around the world. Traditional advertising campaigns are not as
successful as they used to be and this has made everyone think
really hard to come up with a new strategy. The new strategy,
apparently, is something that has been in the news for quite some
time now. It is called mobile advertising.
Teletouch decided to start their own mobile fan club for their ‘The
Block’ tour this year. While we were touring, we added at least a
1000 fans to our club each night. Over a span of just over 60 days,
we have over 30,000 loyal fans in our mobile fan club. All these
fans get regular updates on tour schedules, merchandise info,
ticket sales, and venue details.
It took around one and a half years for Echo Management to build
an email list of 17,000 members for country pop singer LeAnn
Rimes. Later, we decided to give mobile phone advertising a try.
The result – over 24,000 members added to the list with just 16
shows.
We promoted Lil Wayne’s album ‘Tha Carter III’ by organizing a
mobile advertising campaign. The result – 124,000 phone calls in
the first week and a mobile fan list consisting of 90,000 members
in a surprisingly short period of time. The label has now made this
mobile list into a premier mobile fan club.
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We sent both mobile alerts and email alerts to customers offering
discounts and promotional offers. The mobile alert campaign was
16% more effective than the email campaign. Also, people who
received mobile alerts spent, on an average, $13 more than
people who received email alerts.
A lot of experts believe that mobile marketing will be the key
format of marketing in 2009-10. A mobile marketing campaign is
very easy to create, even easier to manage, can easily reach the
target customer base, and most importantly, gives amazing
results. So, the future, like I’ve always said, is mobile.
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GROUP-5B
TeleTouch Limited
In House Department
Submitted by Puja Chauhan
Pramod Nath Mishra
Priyanka Jain
Rajiv Lodaria
Rakesh Bhardwaj
Institute of productivity & manageme
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Business Plan For TeleTouch Ltd (2010-2011)
Functional Area:- In-house Advertising Department
Name Designation
1. Pooja Chauhan Chief Executive-Promotion
2. Rajiv Kumar Lodaria Executive-Audio Visual
3. Priyanka Jain Executive-Print
4. Pramod Nath Mishra Executive-Sponsorship
5. Rakesh Bhardwaj Executive-Outdoor Event
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Business Plan For TeleTouch Ltd (2010-2011)
1. Preparation of a detailed Promotion plan with specific budgets and territory to be operated based on the guidelines of the Board, Marketing Departments and other Departments.
2. Identification of specific steps to achieve pre-defined Advertising Goals and laying down of measuring standards to assess the effectiveness of the money to spent.
3. Value chain analysis.
Ans: - The different mediums via which TeleTouch is going to promote itself are as follows.
1. Out Of Home Media: - OOH Media is India’s largest out-of-home television company. We leverage our robust Business, In-store and Leisure Network to display audio-visual advertisements and engage urban consumers while they work, shop and play.
Our medium combines the strengths of audio-visual communication with the visibility of outdoor. The ability of this new medium to ensure that advertisers get their message across their most difficult to reach consumers with regularity, across different day parts and in a seamless way, is what differentiates this medium of communication from any other medium.
We have already installed over 4900 screens in more than 22 cities across India and propose to set up as many as 30,000 screens in the next 18-24 months. This would make us India's largest digital out-of-home television company.
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Business Plan For TeleTouch Ltd (2010-2011)
2. RBT :- It means Ring Back Tone. What happens in it is that whenever a customer calls in our network, he/she will hear a jingle of our company.
The jingle will be in different languages :-
In English: - “TeleTouch….feel the Touch”.
We will give this service free of cost to our customers with new connections for the first six months.
3. Television :- We will also give advertisement in the television alsoAnd different types of programmes, news even cricket matches are coming on the televisions. Therefore we will give advertisements in between those programmes, news, matches etc. And this will help a lot in increasing our sales.
4. Radio/FM :- Since Radio and FM are the very good source of advertisement, and also in different cities FM Radios plays a very vital role among the youths. Therefore our plan is to advertise very heavily with this medium.
5. Newspapers :- We will also advertise ourselves via different newspapers also. These newspapers includes Daily Son, The Star, Cape Times, The Herald, Pretoria News etc.
6. Magazines :- Our advertisements will also be placed on different magazines like Black Business Quarterly, Entrepreneur Magazine, Gateway, Fairlady, Cosmopolitan, Marketing Mix etc.
7. Internet :- Since internet is the fastest medium of everything. And now most of the people are using Internet regularly for different-different types of work. Therefore, we will also give advertisement of TeleTouch in the internet also.
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Business Plan For TeleTouch Ltd (2010-2011)
8. Hoardings :- In different cities and towns, near traffics and public places we will advertise ourselves through hoardings.
9. Website :- We are also launching our website for advertisement. The address will be www.teletouch.com , so that the customer would get the whole the information about our services very easily.
TeleTouch is going to work in the following territories.
1. Eastern Cape2. Free State3. Gauteng4. KwazuluNatal5. Limpopo6. Mpumalanga7. Northern Cape8. North West9. Western Cape
The chart present under is representing the Province name, the total number of hoardings, total expenses of the hoardings and the total population of that particular area.
Since, TeleTouch is going to advertise with different mediums which are mentioned above.
Therefore, we are giving cost of some of the mediums.
The cost of web design in South Africa
Typically the two elements to a magazine or newspaper advertisement involve production (the cost of the design and producing the material for publication) and the media cost the cost of fighting (the exposure) of the advertisement in the publication.
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In this example we have selected a typical market related full page A4 full color magazine advertisement with a monthly circulation of 24,000 and a readership of 56,000.
Design and Production of ad
Media cost Total cost of one month
CPM
R9,600.00 R12,000.00 R21,600.00 R214.00
The CPM is the amount an advertiser pays for every 1000 times the ad (readership) is recorded. Cost per thousand, or CPM is a way of measuring the cost of displaying an advertisement. There is a set price range for hosting not for every time the web page (page impressions/readership) on your site is viewed a thousand times.
Now we can see the expenditure for web advertising.
Design and production
Media cost (hosting)
Total cost for 1 month
CPM
R12,000.00 R250.00 per month
R12,250.00 16%
Cost per thousand, or CPM is a way of measuring the cost of displaying a web page. There is a set price range for hosting not for every time the web page (page impressions/readership) on your site is viewed a thousand times.
When compared to the costs associated with traditional advertising methods in south africa such as direct mail, newspaper or magazine ads, or radio and television, the cost of a web site is nominal.
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Different Print Media of South Africa, via which we are going to advertise ourselves.
South Africa has 20 daily and 13 weekly newspapers, most in English. Some 14.5-million South Africans buy the urban dailies, while community newspapers have a circulation of 5.5-million. There is also a range of general and specialized news websites which, in terms of the speed and breadth of their coverage, are on a par with the best in the world.
In the below table we can see overview of different newspapers.
Name of the Newspaper
Average daily sales
Average
Daily readers
Daily Sun301800 301800
The Star 171542 616000
Sowetan118261 150000
Die Burger 109513 562000
The Citizen 90978 466000
Cape Argus 75549 407000
Isolezwe 58848 391000
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Business Plan For TeleTouch Ltd (2010-2011)
Daily News 56256 308000
Cape Times 51285 316000
Business Day 42322 113000
The Mercury 40526 213000
Daily Dispatch 33535 226000
The Herald 30230 193000
Volksblad 28707 126000
Pretoria News 28055 86000
The Witness 23804 167000
Diamond Fields 8954 55000
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Out door event in South Africa
There are some Public Holidays and Nationwide Events in South Africa that people of South Africa celebrate in a social manner so we have option to promote product by it as a outdoor event. South Africans love public holidays; they celebrate their constitution, landmarks in political history and even a few cultural pastimes (like National Braai Day ... yes, they take a whole day off work to celebrate their braai / BBQ culture). See the list below of the public holidays in South Africa as well as nationwide events, which could affect our outdoor plans.These are as follows :-
1. Classic Car Events in South Africa
All South Africa's provinces where we offer our service we arrange a range of activities from deep sea diving and shark cage diving to mountain climbing and abseiling, elephant-back safaris,
We are going to advertise from following advertisement companies.
1. CARAT International European Media Planning. 2. Kinetic Ad Agency of WPP Group.3. OMD
Profile and work distribution of the companies are as follows.
1. CARAT International European Media Planning.
Carat International is a division of Carat, the world's largest independent media agency with more than $16 billion in worldwide billings. Carat has 106 offices located in 94 cities and
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56 countries globally. Carat International is focused on delivering strategic communication services to global brands in addition to the management of all Carat's key international clients. These include Philips, Adidas, BMW, Vodafone, SCA, Opodo, Danone, Disney and Renault.
TeleTouch is going to appoint Carat International as its pan European media planning agency for brand advertising.
Existing in-house department will continue to the campaigns through out country while Carat International will handle the media planning of television, radio, web .
Commenting on the appointment, Tapan Kumar Ray, TeleTouch’s Chairman responsible for global branding, said: "The appointment of our first Pan European media planning agency is part of our strategy to establish a strong global brand and position ourselves as the world's leading mobile multimedia company.
"We chose Carat International, which will work alongside kinetic our global brand advertising agency, and the incumbent local media buying agencies, because of its imaginative media selection and plans for a branding campaign as well as its robust network and strong team."
Total amount given is Rs 400000000 i.e. about R80000000(approx).
2. Kinetic Ad Agency of WPP Group
Our second media agency is Kinetic Ad Agency of WPP Group which is a media agency that understands how to communicate with people on the move. They plan and buy all forms of media when target audience is Out of Home. They invest in understanding how they live their lifestyles and the best environment in which to involve them with your message.
If there’s an effective way to communicate with people on the
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move, they’ll find it. From roadside posters to digital screens; and everything in between. .
They have an ongoing commitment, across the world, to understanding and engaging with people on the go, whatever media they choose to consume. They will manage our investment, local or global, to ensure best advertiser value from Out of Home media and outdoor advertising. To achieve this, as an Out of Home media agency they operate distinct and specialist business areas, which should make it easier for you to identify which service is most relevant to our immediate communication goals.
Kinetic is a truly global network; offices in 23 markets and ever-expanding links to new territories through our historic partners. The Kinetic positioning is the same across the world, offering a dedicated expertise in out of home planning and buying solutions, forging strong working relationships with clients, agencies, suppliers and media owners across all aspects of communication on the move.
Total amount given is Rs 50000000 i.e. about R10000000(approx).
3. OMD
The third media agency is OMD by which we are going to advertise. OMD is the world's biggest media services brand with billings of $26.3bn in 2007 (according to RECMA). As the main media brand within marketing services giant Omnicom, it is closely associated with advertising networks BBDO, DDB and TBWA, although some business is handled by secondary shop PHD Network. Reflecting the creative abilities of its partners, OMD has a reputation for innovative and unusual media planning and buying.
Total amount given is Rs 40000000 i.e. about R8000000(approx).
The chart below shows the expenses of the ads per viewer on Television in South Africa :-
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The chart below shows the expenses of the ads per viewer on Weekly Newspapers in South Africa :-
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The chart below shows the expenses of the ads per viewer on Daily Newspapers in South Africa :-
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TeleTouch is going to advertise through the FIFA(Federation International de Football Association) World Cup Matches which is going to held on June-July 2011 South Africa.
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We have a talk with the FIFA organizing committee, South Africa. Total amount given to the FIFA is Rs 400000000 i.e. about R80000000.
The next FIFA world cup is due to be held in South Africa in June
and July 2010 Federation international de football association (FIFA) is the World governing body of association football. FIFA has appointed the South African foot ball association, one of its member associations, with the organization and staging of the 2010 FIFA World cup and for this purpose the South African foot boll association has created the local organization committee (LOC). The government of republic South Africa supports the organization and has provided certain guarantees to FIFA to support the organization of the 2010 FIFA world cup. FIFA is the owner of all rights in relation to the 2010 FIFA world cup, which include all media, marketing, licensing and ticketing rights.
FIFA World Cup Sponsors:-
FIFA world Cup Sponsors are a maximum of 8 companies to which FIFA has granted or will grant the second most comprehensive package of global advertising, promotional and marketing rights in relation to the FIFA 2010 World Cup.
Till now six companies have taken the sponsorship of the FIFA World Cup matches. TeleTouch is the seventh one.
There are a large number of aids which were given by TeleTouch in the Television, Hoardings, Print Media, Websites, Football grounds, Roads etc. Some of them are as under.
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Value Chain Analysis :-
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TeleTouch is going to give a lot of advantages. Some of the advantages are as under :-
1. Since, we are going to advertise through all the ten biggest FM Radio Channel of South Africa that covers almost 65% of the total area of South Africa. These local channel advertise in local language also, that helps in awareness of all the information such as schemes, tariffs etc to the customer. As a result, this gives an extra edge to the company TeleTouch.
2. Also, TeleTouch is doing the advertisement hugely. We are conducting a large number of Outdoor events like festivals, holidays. As a result, people of South Africa feels that TeleTouch is for them. And this is a value addition to us.
3. We are also giving training the dealers, distributors about the different features and functions of the tariffs and schemes of TeleTouch, so that the customer will get all the information in a right and easy way. This leads to the customer satisfaction.
4. Since TeleTouch is investing a very huge amount i.e. more than a billion in advertisement. And this is only for the convenience for the customer.
5. We are also advertising on the basis of segmentation that means each and every segment of the customer is targeted and advertisement are made keeping in mind of these particular segments. This leads to the customer awareness.
6. TeleTouch has also taken the co-sponsorship of the FIFA world cup-2010. Since it is a world cup and is forecasting in all over the world. Therefore, it will help us in the form of global advertisement.
7. TeleTouch has appointed the Carat European International Advertisement Agency for advertisement in all the provinces of South Africa. This will increase the reach of the TeleTouch.
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Legal rule and regulation for the advertising in South Africa
The Advertising Standards Authority of South Africa (ASA) is an independent body set up and paid for by the marketing communications industry to regulate advertising in the public interest through a system of self-regulation
Self-regulation is a system by which the marketing communication industry voluntarily regulates the content of advertising. The three parts of the industry — the advertisers who pay for the advertising, the advertising agencies responsible for its form and content, and the media that carry it — work together, to agree advertising standards and to set up a system to ensure that advertisements which fail to meet those standards are quickly corrected or removed.
The Code of Advertising Practice is the guiding document of the ASA. The code is based upon the International Code of Advertising Practice, prepared by the International Chamber of Commerce. The code requires all advertising to be legal, decent, honest and truthful, and be prepared with a sense of responsibility to the consumer.
If a person believes that the content of an advertisement is untruthful, misleading or harmful in any way, a complaint may be lodged with the ASA. Any person can lodge a complaint regarding the content of an advertisement. The ASA will deal with complaints about advertising content but not with complaints about contractual matters or service standards.
Consumer complaints are dealt with free of charge while competitor complaints are subject to a filing fee.
It has been amended to include provisions which place restrictions on the advertising these are
Section 1 – introduction
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1. Preamble
all advertisements should be legal, decent, honest and truthful.
All advertisements should be prepared with a sense of responsibility to the consumer.
All advertisements should conform to the principles of fair competition in business.
No advertisement should bring advertising into disrepute or reduce confidence in advertising as a service to industry and to the public
2. Scope
Commercial advertising
The primary object of this Code is the regulation of commercial advertising, it applies therefore (except as expressly provided further on) to all advertisements for the supply of goods or services or the provision of facilities by way of trade, and also to advertisements other than those for specific products which are placed in the course of trade by or on behalf of any trader.
Non-commercialadvertising In addition the Code applies, so far as is appropriate, to advertisements by government departments and agencies and to those by other non-commercial organizations and individuals.
Politicaladvertising the provisions of paragraphs 2.1 and 2.2 above shall no be interpreted to bring political advertisements into the sphere of the ASA's functions. As in the case of any advertisement the individual medium shall determine whether any political advertisement presented to it is acceptable.
Controversialsubjects/Advocacyadvertising
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To the extent that any advertisement:
· Expresses an opinion on a matter which is the subject of controversy; and · That controversy involves issues within the areas, broadly defined, of public policy and practice, then that opinion shall not be subject to the provisions of the Code relating to misleading claims except that-
All advertisements which contain such controversial statements should:
· be readily recognizable as advertisements; · cause no confusion as to the identity or status of advertiser; · whenever such information is not readily available state the advertiser's address and telephone number.
3. Interpretation
3.1 This Code is to be applied in the spirit, as well as in the letter.
3.2 In assessing an advertisement's conformity to the terms of this Code, the primary test applied will be that of the probable impact of the advertisement as a whole upon those who are likely to see or hear it. Due regard will be paid to each part of its contents, visual and aural, and to the nature of the medium through which it is conveyed.
3.3 In assessing the impact of an advertisement, the ASA may consider, inter alia -
3.3.1 the surrounding circumstances; and
3.3.2 that the language used in the advertisement as a whole may justify departure from the literal meaning thereof.
3.3.3 survey data, conforming to the requirements of Clause 4.1 of Section II, indicating the probable impact as a whole upon those who are likely to see or hear it.
3.4 The ASA will consider public sensitivity and social concern
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in interpreting advertising. 3.5 In advertising aimed at, featuring or likely to influence children, it should be realized that because of the credulity and lack of experience of a child, the interpretation of the Code as embodied in Section I, Clause 3 will be interpreted narrowly, as children would be likely to attach a more literal meaning to advertising.
In the interpretation of this Clause, the word "children" will also include "young people".
3.6 When objections in respect of advertisements that were amended resulting from an ASA ruling are received, both the original and amended version will be taken into consideration. 3.7 Where the overall impression of the advertisement as a whole is in doubt, the ASA may, at the cost of the advertiser concerned, call for a consumer reaction test by independent research, acceptable to the ASA.
3.8 The Code binds advertiser, advertising practitioner and media owner, but the principal responsibility for observing its terms lies with the advertising practitioner when the services of a practitioner are retained.
3.9 In determining whether an advertisement is in breach of the provisions of the Code, it is not the quantity of complaints that is determinative, but the validity of the complaints.
3.10 The Code gives effect and is subject to the Constitution of the Republic of South Africa 1996.
The ASA code at clause 14 of section II
Advertising addressed to or likely to influence children should not contain any statement or visual presentation which might result in harming them, mentally, morally, physically or emotionally.
Sponsorship Code
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1. Introduction
Commercial sponsorship is an essential source of funding for many activities at local, national and international levels.
Without sponsorship, many disciplines would face extreme difficulties and possibly, extinction.
Through sponsorship, the nation's sporting, cultural, environmental, artistic, media, humanitarian and educational heritage is nurtured, enhanced and spectator choice widened. All parties to sponsorship - the sponsor, the sponsored event or activity, the media, the participant(s), the viewers and spectators - benefit from involvement.
Although sponsorship is an integral part of the marketing strategy, it differs from advertising as well as from patronage with respect to objectives, messages and control.
As with all financial investments, a potential sponsorship investment has to offer a viable return to justify a corporate sponsor's involvement. Sponsorship decisions are increasingly being made at strategic level within marketing departments, with directors accountable for investment decisions and the resulting returns. A corporate sponsor is accountable for investment decisions to four major stakeholders: its staff, its clients, its shareholders and the community. It is essential that a sponsor is able to justify corporate sponsorship expenditure and ultimately can produce a return on investment.
Sponsorship offers a potentially valuable platform for marketing communication between a company and its target market. Successful involvement in sponsorship shows that a company and its brand are part of a wide beneficial involvement in society of which the consumer is a participating member.
Therefore the strategic marketing rewards of a successful sponsorship in terms of exposure, awareness and positive image building are immense. To ensure successful sponsorships the entire sponsorship industry should operate according to uniform rules to lay a strong foundation for continued positive growth and healthy rewards for the industry and the nation.
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It must be stressed that this Code of Practice is a "living" document and will be updated and amended when the need arises, by the industry as a whole.
2. The purpose of the Code
The ASA Sponsorship Code sets down basic principles and guidelines for good practice and fairness in sponsorship enabling sponsorship to play its proper role in the best interests of all concerned.
Sponsors have a right to fair return on their sponsorship investment as well as to protection of this right (providing such investment is managed effectively by the sponsor and the sponsorship activity is adequately and appropriately supported by the sponsor).
All categories of sponsors legally permitted to conduct business may sponsor any activity, event, team, individual or organisation and may define sponsorship objectives, provided their sponsorship is consistent with the principles of fairness and good faith outlined in this Code.
Broadcasting rights holders, acting responsibly and within the agreed terms of this Code, have the right to seek a fair return on their investment in selling the broadcasting rights to an event.
A rights owner, acting responsibly and within the agreed terms of this Code, has the right to seek a fair return on its investment in the staging of an event and to maximise the promotion and exposure of such an event.
Sponsors, acting responsibly and within the agreed terms of this Code, have a right to seek a fair return on their investment and to maximise the promotion and exposure of such an event or broadcast.
Sponsorship agents and consultants, acting professionally, ethically and responsibly within agreed terms of this Code have the right to earn income or commission when acting on behalf of sponsors and/or rights owners. Unethical behaviour such as double dealing and unscrupulously high commission is
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unacceptable in terms of this Code and ultimately this behaviour will be detrimental to the event or activity sponsored.
The Code is designed as an instrument for self-regulation within the framework of national and international laws. It is also designed to serve as an interpretative aid and reference guide to the parties in clarifying uncertainties or disputes arising under a sponsorship. It should be used in conjunction with ASOM's Sponsorship Guidelines. (Refer to the Appendix of this Code).
The major roles of this Code:
•Sponsorship. Provides a service to the public and as such sponsorship communications should be factual, honest, and decent and should not violate any laws of the country. No sponsor or party to the sponsorship shall in any way bring sponsorship (as a valuable marketing tool and means of generating funds) into disrepute and thereby reduce confidence in sponsorship as a service to the public.
•All those who subscribe to this Code shall not prepare nor accept any sponsorship or surrounding promotions which conflict with this Code and shall withdraw from any sponsorship or surrounding promotions deemed unacceptable in the light of the stipulations of this Code.
•This Code establishes the criteria for professional conduct for all parties involved in sponsorship to protect the consumer and ensure fair play among sponsors. Its articles form the basis for dispute resolution where there is a conflict of interest.
-To protect a sponsor by ensuring that the right to a fair return on commercial investment in sponsorship is understood by all and is not jeopardised by unethical practices such as ambush marketing.
-To protect and promote a sponsored event or activity by ensuring that all parties involved do not exploit the sponsorship to the detriment of the sponsored event or activity.
-To protect the rights of the broadcast rights holder to the benefit of its commercial interests and the promotion of the broadcast of the sponsored event to the fullest benefit of the event, the participants and the viewing audience.
-To ensure that professional, ethical conduct is maintained by all parties involved in a sponsorship programme, particularly agents
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and third parties. Agents and consultants should be transparent in all their dealings and should operate contractually through a sole mandate, not working for two or more clients that may compete in the same industry sector.
•To educate and inform all parties and potential parties to sponsorship of their rights and obligations in terms of this Code.
3. Definitions
Certain key terms are defined to ensure effective comprehension of and adherence to the terms of this Code.
3.1 Sponsorship
Sponsorship is a form of marketing communication whereby a sponsor contractually provides financial and/or other support to an organisation, individual, team, activity, event and/or broadcast in return for rights to use the sponsor's name and logo in connection with a sponsored event, activity, team, individual, organisation or broadcast.
The objective of investing in sponsorship is to create a positive association between a sponsor's image, product or brand and a sponsored event or activity, team, individual, organisation or broadcast, within the sponsor's target market in order to attain marketing and corporate objectives.
In the interests of correct adherence to the general principles of the Code, it is necessary to highlight the distinction between broadcast sponsorship and event, team, organisation, individual, activity sponsorship.
3.1.1 Event (Team, individual, organisation or activity) sponsorship: This incorporates all rights afforded to a sponsor under a sponsorship contract relating to an event itself Rights are sold to sponsors by concerns that own and/or represents the events (team, individual, organisations or activity). These concerns consists of right holders, advertising and event marketing agencies, and event promoters. The rights afforded to an event sponsor may include aspects such as advertising boards at a venue, visibility on clothing, press and public relations drives, merchandising and promotions. Broadcast rights are usually not offered as a part of an event sponsorship contract.
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An event sponsor may sell part of the rights to another party in accordance with the rights owner.
3.1.2 Broadcast sponsorship: This incorporates all the rights involved in the broadcast of events or scheduled programmes, television credits and trailers and others as stipulated in a broadcast sponsorship contract. These rights are afforded to broadcast sponsors by the rights holding broadcaster, who purchased these broadcast rights from the television rights owner. A broadcast sponsor mayor may not be a sponsor of an actual event being broadcast.
3.2 Sponsor
A sponsor, title sponsor, presenting sponsor, association sponsor, sub sponsor/co-sponsor, technical sponsor or official supplier is a corporation, organisation or other legal person that contractually provides financial and/or other sponsorship support to the sponsored party in return for contractual rights to a related event, activity, team, individual organisation or broadcast.
3.3 Sponsored party
A sponsored party is an organisation, body, individual, broadcaster, team or other legal person who contractually receives financial and/or other support from a sponsor and in return is contractually obliged to provide a sponsor with rights to the sponsored party's event, activity, team, individual, organisation or broadcast as agreed to in the sponsorship contract.
3.4 Audience
The public, individuals or organisations exposed to the sponsorship or at which the sponsorship is directed, including spectators and television audiences.
3.5 Product
The term "product" refers to any goods or services.
3.6 Brand
Refers to the name of the product or service promoted by the sponsorship.
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3.7 Ambush Marketing
The attempt of an organisation, product or brand to create the impression of being an official sponsor of an event or activity by affiliating itself with that event or activity without having paid the sponsorship rights-fee or being a party to the sponsorship contract.
3.8 Rights Owner
The sporting Code/federation organisation or broadcaster who owns the rights to an event, activity, team, individual, organisation or broadcast. A sponsor purchases these rights to associate their name with the event, team, individual, organisation, performance, artiste or activity for the duration of the sponsorship contract.
3.9 Sponsorship Agent/Consultant
Sports/event marketing agencies market the rights to an event, team, individual, organisation or activity to potential sponsors on behalf of the sporting Code, federation, organisation or broadcaster in return for a commission which is usually a percentage of the rights-fee or a mutually agreeable set fee.
3.10 The Media
The media refers to any print or electronic exposure regarding the . Sponsorship programme.
4. Scope of this Code
The Code applies to all sponsorship related to corporate images, brands, products, services or events, teams, activities, individuals or organisations of any kind. It applies to all promotions surrounding the sponsorship (advertising, sales promotions, direct marketing, public relations and publicity).
This Code does not apply to any sort of funding which lacks a commercial or communication purpose, such as donations.
5. Interpretation
This Sponsorship Code of Practice is to be applied in the spirit as well as to the letter of the terms and principles stipulated herein. Provided that the contents of this Code and its principles shall be
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subject to the provisions of any applicable and/or relevant to existing legislation which may, whether directly or indirectly have a bearing on the contents of this Code.
Where discrepancies in interpretation do arise, existing legislation, previous case histories and ASOM's Sponsorship Guidelines should be used for guidance and clarification (a copy of ASOM's Sponsorship Guidelines is included in the appendix).
It should also be noted that the Advertising Code of Practice is applicable to sponsorship as well as advertising, especially advertising and promotions surrounding the sponsorship.
6. The Sponsorship Industry Control System
The Advertising Standards Authority of South Africa (ASA) is an independent body established and funded by the industry to ensure that its system of self¬regulati0':1 works in the public's interest. It has an independent chairman.
The Sponsorship Dispute Resolution Committee and Sponsorship Appeal Committee consists of members nominated by signatories to the Sponsorship Code of Practice and is representative of:
•Marketers (ASOM)
•Media (NAB & PMA)
•Sponsorship Consultancies
•Codes and Federations of all sponsor able events, activities or individual . Advertising Agencies (AAA)
The Code is administered by these Committee and the ASA Rulings are made by peers.
Responsibility for observing the Code rests with the sponsor, the sponsorship intermediary (sports marketers/event managers or advertising agencies), the rights holders (sporting Codes) and the medium involved in communicating the sponsor's message to the public.
7. Sanctions
There are two aspects of sanction - legal and ethical.
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Legal Sanctions: Legal Complaints should be dealt with in terms of the law, i.e. the Trade Marks Act or breach of contract.
The ASA's function is not to enforce the law, although it may advise people of their rights and obligations and the possible consequences of their actions.
Ethical Sanctions: The ASA in the case of precedent and/or the Committees may require the withholding of advertising space or time from advertisers. The ASA reserves the right to impose any other form of sanction warranted by particular circumstances.
8. Complaints
Complaints regarding a breach of the Code should be addressed to:
The Advertising Standards Authority PO Box 41555
CRAIGHALL
2024
Fax: (011) 781-1616
All that is required is a letter indicating the basis of the complaint and, in the case of a printed advertisement promoting a sponsorship association, a copy of the advertisement concerned.
Where the complaint relates to broadcast sponsorship or advertising associated with a sponsorship on television, radio or on cinema screens, information should be furnished on where and when the broadcast or advertisement was transmitted or screened.
Where signs or posters are involved, the exact wording of the advertisement associated with a sponsorship should be provided.
Anonymous complaints cannot be accepted but the confidentiality of complainants will be maintained at the discretion of the Committees, if this is specifically requested
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Advice is willingly given by telephone to prospective complainants but investigations will not be undertaken without written confirmation from the complainant.
9. General Principles
The following general principles form the basis of the Code:
9.1 All sponsorship should be legal, decent, honest and truthful conforming to accepted principles of fair competition in business.
9.2 All sponsorship packages should be prepared with a sense of responsibility to all parties to the sponsorship and the public.
9.3 The terms, conditions and conduct should be based on fairness and good faith between all parties to the sponsorship.
9.4 No sponsorship should bring the sponsorship industry into disrepute or reduce confidence in sponsorship as a service to the marketing industry, the media and the public.
9.5 Sponsorship and related communications should not be misleading, untruthful or indecent.
10. Sponsorship rules and provisions
These rules and provisions serve as guidelines and apply to all categories of sponsorship, parties to sponsorship and sponsorship practices, without exception.
Article 1 - Clarity and accuracy
Sponsorship and all related communications should be clear and accurate to all persons and organisations involved in a sponsorship covering any rights or privileges granted to a sponsor.
Article 2 - Autonomy
2.1 Sponsorship should respect the autonomy of the sponsored party in managing its own activities and properties, provided the sponsored party fulfills the objectives set out in the sponsorship contract.
2.2 Where a sponsored party's intellectual or creative properties are part of a sponsorship agreement, its creative freedom should be respected.
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Article 3 - Imitation and confusion
Imitation of the representation of other sponsorships should be avoided if this misleads or generates confusion, even when applied to non-competitive products, companies or events.
Article 4 - Parties to a Sponsorship
4.1 A sponsor should take particular care to safeguard the inherent artistic, cultural, sporting, environmental, media, humanitarian and educational or other content of a sponsored event, activity or organisation and avoid any abuse of its position that may damage the identity, dignity or reputation of the sponsored party.
4.2 A sponsored party should never abuse, defame, demean or impinge the image of trade marks of a sponsor or jeopardise the goodwill or public appreciation earned by these.
4.3 A sponsored party must do whatever they can to protect the sponsor's rights, goodwill and image and must not damage this.
4.4 Advertising on the pitch by an organisation other than the event sponsor is only permitted if the event sponsor is in full agreement and has provided written consent.
Article 5 - The Sponsorship audience
The audience should be clearly informed of the existence of the sponsorship with respect to a particular event, activity, programme or person and the sponsor's own message should not deliberately offend the audience's religious, political or social convictions or professional ethics.
This does not restrict a sponsor from supporting avant-garde or potentially controversial artistic or cultural activities, nor is a sponsor required to censor a sponsored party's message.
Article 6 - Children and Young People
Sponsorship which is addressed to or likely to be influential on children and young people should avoid taking advantage of their natural credulity and lack of experience or of harming children and young people mentally, morally or physically or of straining their sense of loyalty toward parents or guardians.
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Article 7 - Artistic and historical objects
7.1 Sponsorship may never be used in a manner that may endanger artistic or historic objects.
7.2 Sponsorship aiming to protect, restore or maintain cultural, artistic or historical properties or their diffusion should respect the interest of the public.
Article 8 - Sponsorship and the environment
8.1 Sponsors and sponsored parties should consider the potential environmental impact of sponsorship in planning, organising and carrying out sponsorship activities.
8.2 Any sponsorship message fully or partially based on a positive or reduced negative environmental impact should be substantiated in terms of actual benefits to be obtained.
Article 9 - Ethics
9.1 Organisations, bodies, facility owners and promoters and other rights holders are ethically bound to be transparent in all their dealings with sponsors. If there is no mention of multiple sponsors in an agreed contract, organisations, bodies, promoters and other right holders are prohibited from dealing with any other potential sponsor for the same rights.
9.2 Sponsors should be included in and kept informed of all the decision making processes of the sponsored party(ies) in respect of the sponsored activity as stipulated in the contract and as this relates directly to the success of the sponsorship.
9.3 Sponsors subscribing to this Code have the right to protect the image of their products or services and brands involved in a sponsorship. A sponsored party is ethically bound to respect this right and should fully adhere to a sponsor's wishes regarding the use of products or services, brands, logos, theme pieces and related material and should fully adhere to a sponsor's wishes regarding the use of products or services, brands, logos, theme pieces and related material consistent with the terms contained in item 1.4 of these rules and provisions.
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9.4 Broadcast rights owners should, where possible, offer the event sponsor first right of refusal of the broadcast rights.
9.5 A product or logo that is not directly associated with the sponsor of the event, activity, team, individual or organisation may not be visibly used or displayed during the event.
9.6 Sponsorship agents and consultants are obligated to full disclosure to their client and should be transparent in their dealings. They should not work on behalf of clients (sponsors) that may be competing in the same industry sector. The contractual relationship should be based on a sole mandate.
Unethical behaviour such as double dealings and unscrupulously high commission is unacceptable in terms of this Code, as such practices are detrimental to the sponsorable events and activities.
Article 10 - Honesty
10.1 All parties to a sponsorship should be honest and transparent in all their dealing with other sponsorship parties in accordance with accepted business practices.
10.2 Sponsorships should not be framed in a way that may abuse the trust of consumers or exploit an audience's lack of experience, knowledge or credulity.
Article 11 - Unacceptable sponsorship practices
11.1 Ambush marketing:
The following ambush strategies are unacceptable and strictly prohibited under the terms of this Code and shall be subject to the provisions of Clause 5 of this Code:
11.1.1 Media Strategies
No organisation, other than an official sponsor, may directly or by implication create an impression that its communications relate to a specific event or create an impression that they are an official sponsor of such an event.
11.1.2 Usage of athletes/sportspersons/performers/artistes:
No organisation, except the sponsor with contractual rights to do so, may use endorsements of athletes, sportspersons, performers
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or artistes in its advertising to create the perception in consumers' minds that its company is connected with the event sponsorship.
Athletes, performers or artistes with individual sponsorship contracts may not, without specific permission from the primary event sponsor, promote their individual sponsor's logo in any way while associated to the primary event sponsor and subject to the obligations of the primary sponsor's contract as part of the team.
Sponsors with rights to associate with a team (team sponsors) do not have the right to associate themselves with an individual member of that team, unless this is specifically provided for in the agreement between the team, the individual and the sponsor. The onus is on the sponsor to ensure that their rights are protected under the sponsorship contract thereby preventing competing brands or products from legally associating themselves with the event.
11.1.3 Supporting sports federations and bodies:
No organisation supporting national federations and sporting bodies and promoting its products with logos and names of such federations or sporting bodies may create the impression of being associated with events in which such federations or sporting bodies are participating, unless it has a contractual right to do so.
11.1.4 Sales promotions before and during an event:
No organisation, other than an official sponsor with contractual rights to do so, may launch event-related sales promotions to give the impression of sponsoring such an event. Only an official sponsor may use statements relating to being an official sponsor on its packaging or other promotions.
11.1.5 Corporate hospitality
At major events no organisation, other than those with contractual rights to do so, may offer meeting points for press conferences and VIP's or invite top athletes, performers or artistes for clients and the press, creating the impression that it is sponsoring an event with which it is not legally connected.
11.1.6 Sponsors ambushing sponsors
Where there is more than one official sponsor of an event, there may be specific agreements between sponsors and organisers on
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the promotional access granted to sponsors under a sponsorship contract. Here one sponsor may not ambush another sponsor by using any aspect of any event not specified in the contract to promote its name.
11.1.7 Event "Airspace":
Airspace should be respected and use must not conflict in any way with the sponsorship.
The event sponsor's rights should be respected by companies and/or brands not associated with the event as far as utilising airspace above the event as a platform for communicating messages to an audience watching the event.
The sponsor should also ensure that the airspace is protected as a condition of the sponsorship of the contracty.
Article 12 - Rights under the South African Constitution
12.1 All rights afforded to individuals and juristic persons under the Constitution of South Africa are to be observed and adhered to in all sponsorship contracts and practices and among all parties to a sponsorship.
11. Adjudication
Should the parties prefer the ASA and/or the Committees to rule on a matter covered under Clause 9, the ASA and/or the Committees will adjudicate provided that:
11.1 both parties agree in writing that the matter be considered by the ASA and/or the Committees;
11.2 both parties agree in writing to abide by the ruling made by the ASA and/or the Committees.
12. Appeal Mechanism
12.1 Any party who feels aggrieved by a ruling of the Sponsorship Dispute Resolution Committee may appeal against such a ruling to the Appeal Committee.
12.2 The ASA Directorate together with the Chairman and two Appeal Committee members will however retain the discretion to reject an appeal if, after due consideration of all circumstances
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and factors, it is found by unanimous decision that the appeal is either:
i. a frivolous appeal in the event of a clear and direct contravention of the Code;
ii. a malicious or wilful appeal.
12.3 Pending adjudication of the appeal, the decision of the Sponsorship Dispute Resolution Committee must be adhered to.
12.4 The decision made by the Sponsorship Dispute Resolution Committee is appealable only within the boundaries and scope of the complaint and corresponding ruling. A call for further information by the Committee or a commission to do research, constitutes an interim ruling and is not appealable as a return day (the next sitting of the Committee) provides opportunity for the final hearing decision.
13. Procedural Guide
These procedures are designed to assist any person wishing to complain about a breach of the Sponsorship Code. Adherence to these procedures will ensure effective and timeous resolution of complaints. The procedures are designed to grant all concerned a fair and equal opportunity to be heard without fear of bias. '
It should however, be noted that the ASA is not a court of law, and these procedures, which serve as a guide, are not wholly inflexible. Should circumstances arise where good and valid reasons justify a departure from usual procedure, these will be taken into account, but always at the discretion of the ASA and/or the Committees.
Lodging a formal complaint
13.1 The formal complaint
All formal complaint should meet the following criteria:
13.1.1 The complaint should be in writing.
13.1.2 The grounds on which the complaint is based must be clearly stated.
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13.1.3 In the case of advertising, the relevant advertising should be attached, or the time, date and nature (TV, radio, outdoor or cinema) should be specified.
13.1.4 Preferably, the address, contact name and number of the offending party should be included.
13.1.5 The details of the complainant should be clear. The anonymity of complainants will be maintained at the discretion of the ASA and/or the Committees, if specifically requested
13.1.6 If possible, and if known, the relevant clauses of the Code .should be cited. Should the complainant not be able to do so, the ASA and/or the Committees will consider the complaint in terms of the clauses it regards as relevant and deal with the complaint as if it was lodged in terms of those clauses.
13.2 Documentation and Representation
13.2.1 All documentation submitted must conform to the following specifications:
•Relevant to the complaint considered
•Only essential background information
•Clear and concise
•Systematic approach
•As factual as possible
13.2.2 Representation, personal or otherwise should be brief and to the point:
•It is not necessary to reiterate issues already covered in correspondence or documentation previously submitted as the Committee members will be au fait therewith.
•Representation serves the purpose of summarising. Clarifying or adding new information only and should be limited to such purpose.
•Presentations will normally be limited to 10 (ten) minutes per party. Should additional time be required a written request must be submitted to the ASA Directorate within a reasonable period prior to the hearing.
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13.3 The Directorate
13.3.1 The ASA Directorate shall have the primary responsibility of applying the Code.
13.3.2 The ASA Directorate shall give attention to possible breaches of the Code, brought to its attention by a formal complaint or in any other way acceptable to the ASA Directorate, by investigating and ruling on the matter or referring it to the Sponsorship Dispute Resolution Committee for a ruling.
13.3.3 Any party who feels aggrieved by the ruling of the ASA Directorate may request that the matter be referred to the Sponsorship Dispute Resolution Committee.
13.3.4 Once a ruling has been given by the ASA Directorate or by the Sponsorship Dispute Resolution Committee, it shall be the responsibility of the ASA Directorate to ensure that the ruling is adhered to and carried into effect.
13.3.5 Frivolous or invalid complaints will not be considered.
13.3.6 If the complaint appears, prima facie, founded, it is sent to the respondent for written comment. The respondent will usually be allowed 5 working days to respond to a complaint or enquiry.
Circumstances may however warrant an immediate or longer period of response, as determined by the ASA Directorate.
13.3.7 Should the respondent ignore a reasonable request for co-operation, the ASA will issue and AD ALERT to its media members (including newspapers, magazines, radio, television and Printing Industries Federation).
13.4 Sponsorship Dispute Resolution Committee
13.4.1 The Sponsorship Dispute Resolution Committee will consider all complaints either through referral to it or through a request by any party who feels aggrieved by a ruling made.
13.4.2 The relevant information and documentation as submitted by the respective parties will be remitted to the Committee members and it is therefore vital that such information and documentation is clear, comprehensive and concise. It is not necessary to state the full text of the clauses applicable - reference to the number and section will suffice.
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13.4.3 Personal representation is permitted at the hearing.
13.4.4 A maximum of three persons per side is normally permitted and the names and designations of such persons should be submitted to the ASA within a reasonable period as determined by the ASA.
13.4.5 A short time for questions and any further clarification required by the Committee is provided for.
13.4.6 Written submissions should reach the ASA 7 days prior to the hearing.
13.4.7 Rulings of the Sponsorship Dispute Resolution Committee shall be conveyed to the parties concerned as soon as possible after the meeting. This is usually done in writing on the day following the hearing.
13.4.8 Any party who feels aggrieved by the ruling of the Sponsorship Dispute Resolution Committee shall have the right to appeal to the Sponsorship Appeal Committee against such ruling, in accordance with the appeal procedure.
13.4.9 Should an appeal be lodged, the decision must be adhered to until reversed by the Sponsorship Appeal Committee.
13.4.10 The Chairperson of the Sponsorship Dispute Resolution Committee may co-opt any person or persons to serve on the Committee to assist in determining any specific complaint.
13.5 Appeal Committee
13.5.1 Any party who feels aggrieved by a ruling of the Sponsorship Dispute Resolution Committee may appeal against such ruling to the Appeal Committee.
13.5.2 The Directorate, the Chairperson and two Sponsorship Appeal Committee members will however retain the discretion to reject an appeal if, after due consideration of all circumstances and factors, it is found by unanimous decision that the appeal is either:
•An unfounded appeal in the event of a clear and direct contravention of the Code.
•A malicious or wilful appeal.
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13.5.3 Any request for an accelerated appeal will be at the sole discretion of the Chairperson of the Sponsorship Appeal Committee, who will, if granted, determine the procedure.
13.5.4 Pending adjudication of the appeal, the decision of the Sponsorship Dispute Resolution Committee must be adhered to.
13.5.5 The decision made by the Sponsorship Dispute Resolution Committee is appeal able only within the boundaries and scope of the complaint and corresponding ruling. A call for further information by the Committee or a commission to do research, constitutes an interim ruling and is not appeal able as a return date (the next sitting of the Committee) provides opportunity for the final hearing and decision.
13.5.6 Notice of appeal must be given in writing and lodged at the offices of the ASA by close of business within 4 weeks of the date of notification of the decision appealed against.
13.5.7 The notice of the appeal should be supported by full documentation on the matters forming the subject thereof and as many copies as may be required by the Executive Director (usually 12) must be submitted to the ASA. The documentation must be clearly paginated.
13.5.8 To cover the cost of the appeal, both the complainant and the respondent will be required to lodge a sum of money, the amount to be advised by the ASA., lodged with the Directorate to serve as an guarantee. The Chairperson of the Appeal Committee may either at the conclusion of the appeal hearing or within a reasonable period thereafter, award the cost of the appeal against any on or other of the parties, normally the loser, or in such proportion as the Committee may determine.
13.5.9 A copy of the appeal documents will be submitted to the respondent within 3 working days of receipt by the ASA.
13.5.10 The respondent will be entitled to reply thereto within 7 working days of the date on which it was submitted.
13.5.11 A copy of a document which may be submitted by the respondent in reply to the appeal will be submitted to the appellant within 3 working days from the date of receipt by the ASA before the appeal is considered.
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13.5.12 The parties and/or their representatives will be entitled to appear before the Sponsorship Appeal Committee.
13.5.13 The Sponsorship Appeal Committee will consider an appeal within 4 weeks of the date on which the appeal was lodged, subject to the availability of the Chairperson.
13.5.14 The Sponsorship Appeal Committee may refer any matter back to the Sponsorship Dispute Resolution Committee for reconsideration or for such action as the Appeal Committee may determine.
13.5.15 The Sponsorship Appeal Committee may co-opt any person or persons to serve on the Committee.
13.5.16 Expert evidence and research may be considered and solicited by the Appeal Committee, the costs of which are to be allocated at the discretion of the Appeal Committee.
13.6 Enforcement of Rulings
Where a ruling made by the ASA and/or the Committee pertaining to advertising, the advertising should be withdrawn as soon as possible but within the following deadlines:
•Newspapers: Immediately as deadlines permit
•Radio: Immediately as deadlines permit
•Television: Immediately as deadlines permit
•Magazine: Immediately as deadlines permit
•Outdoor:3 months or as determined otherwise by the ASA and/or the Committees
•Pamphlets & Leaflets: As determined by the ASA and/or the Committee
•Packaging :3 months or as determined by the ASA and/or the Committees
The ASA and/or the Committees may reserve the right to impose any other form of sanction warranted by particular circumstances such as:
13.6.1 Withholding of advertising space;
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13.6.2 Pre-clearance requirement;
13.6.3 Adverse publicity; and
13.6.4 Referral to a disciplinary hearing
GROUP-8B
TeleTouch Limited
HR Department
Submitted by Sweta Adhana
Sonam Dawar
Sumant K. Singh
Sushant Ambuj
Swati Goel
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Institute of productivity & management
HUMAN RESOURCE DEP[ARTMENT
HR has to create proactive business information otherwise there wont be a shift from operational to strategic business partnership.
Number of employees working in different departments for the 5.5% market share.
SALES DEPARTMENT
1 General Manager = 20000 rand
4 Regional Managers = 17000*4 = 68000 rand
9 Assistant Managers = 13000*9 = 117000 rand
108 Employees = 7000*108 = 756000 rand
IN-HOUSE MARKETING
1 Chief Executive = 25000 rand
4 Executive = 14000*4 = 56000 rand
36 Assistant Executives = 11000*36 = 396000 rand
FINANCE
1 Vice President = 25000 rand
1 Personal Assistant = 5000 rand
9 finance Executive = 10000*9 = 90000 rand
9 Head clerk = 4500*9 = 40500 rand
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27 Clerks = 3500*27 = 94500 rand
18 Peons = 1500*18 = 27000 rand
STRATEGIC DEPARTMENT
1 Vice President = 25000 rand
4 Executives = 10000*4 = 40000 rand
9 Provincial Incharges = 8500*9 = 76500 rand
12 Area Mangers =8000*12 = 96000 rand
IT DEPARTMENT
5 Senior Managers = 20000*5 = 100000 rand
5 Team managers = 16000*5 = 80000 rand
10 Supervisors = 14000*10 = 140000 rand
15 Help Desk Team Leaders = 11000*15 = 165000 rand
25 Service Help Desk Executives = 9000*25 = 225000 rand
Outsourcing of 185 Employees = 4000*185 = 740000 rand
OPERATION DEPARTMENT
1 Vice President = 25000 rand
4 Executives = 10000*4 = 40000 rand
9 Regional Managers = 17000*9 = 153000 rand
20 Territory Managers = 14000*20 = 280000 rand
52 Working Staff = 6000*52 = 312000 rand
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HUMAN RESOURCE DEPARTMENT
25 Managers = 14000*25= 350000 rand
5 BOARDS OF DIRECTORS = 30000*5 = 150000 rand
1 CHAIRMAN = 35000 rand
But in order to increase the market share from 5.5% to 11% some additional number of employees will be required.
Presently we are working in 4 provinces and within 2 years we are planning to expand our business
20 Service Help Desk Executives = 8000*20 = 160000 rand
In Operation Department
24 Territory Manager =13000*24 = 31200 rand
66 Working Staff = 5000*66 = 330000 rand
In between some employees will leave the organization and some move to the higher posts while some will get transferred. So a proper check should be done to ensure that the demand and supply of employees is similar.
Once the job requirements and selection criteria for the position have been determined, employers are immediately faced with a decision— how to generate the applications needed to fill its labor needs. Whether or not a particular vacancy should be filled internally or externally typically depends on the nature of the job, availability of qualified candidates, company policies, and recruiting costs.
Although similar in many respects, internal and external recruiting sources differ in terms of planning, effort and time required to implement, and cost. Therefore, every employer should weigh the pros and cons of recruiting employees through each source based on company’s own needs. Irrespective of the source(s) selected, employers must use fair and consistent practices that comply with applicable regulatory requirements.
While many companies find this option to be a valuable resource, it assumes the availability of qualified internal candidates. However, specialized skills or experience may not always be readily available within the company. This is particularly common
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in smaller companies. Applicants hired from outside of the company may also be a source of new ideas and knowledge, which could help to expand the company’s internal capabilities and prevent the inbreeding of ideas and attitudes.
So we have to decide to use the recruiting method which needs to develop a system for locating and enabling qualified job candidates to apply for the position. This involves establishing formal procedures for using and communicating system requirements. Posting internal jobs is effective only when done before external job postings are made available. Employees should be made aware of vacancies by placing notices in areas where employees regularly frequent such as lounges, elevators, and near time clocks.
Recruitment can be done externally also through newspaper and trade publication advertisements, educational institutions, labor and community organizations, job fairs, employee referral programs, state agencies, professional search firms, on-line recruiting sites, employee leasing, temporary agencies, billboards, and past employees. The amount of time, effort, and cost involved varies by source. The first five sources stated require the company to take a more active role in the process, while the remaining sources inherently limit the company’s role.
The recruitment of employees will be done both from India and from South Africa. The top level employees and bottom level employees will be recruited from South Africa only as it will be easy for them to run the organization because they are much aware about their culture than that from the ones recruited from outside. But the managers can be recruited both India as well as South Africa. Training should be provided to the Indians about the culture of South Africa so that it will be easy for them for going and working out there.
After deciding the recruiting process, and when new employees join the organization it is very important to keep good communication with the employees, technology can assist but can never replace the impact of face to face communication.
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Other key focus areas include Talent Management and Performance Management which highlights the need for the attraction and retention of skills. Also, we will interact with employees through South African Human Resource Internet Platform. Through this workplace related information, policies and procedures, employment equity, training and development plans should be informed to the employees so that they will feel more attached to the organization, as they would be get informed that what new is going on in the organization.
Compensation policies are also such that to attract and retain more and more employees.
As far as the organization is concerned, employee compensation is designed to do three things:-
(1) To attract capable employees to the organization,
(2) To motivate them toward superior performance,
(3) To retain their service over an extended period of time.
The intent of this policy is to provide an available, concise source of information concerning the compensation policies and procedures.
Employees are appointed to an employee class based upon established parameters of each employee class. Specifically, all employees assigned to an employee class have the following in common: salaried (exempt) or hourly (non-exempt) status; vacation leave accrual schedule; holiday schedule; benefit eligibility; and full- or part-time status.
Factors affecting compensation policies are:-
(1) Supply and demand for employee skills,
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(2) Labor organizations,
(3) The firm’s ability to pay,
(4) Productivity of the firm and the economy,
(5) Cost of living, and
(6) Government
Integrate compensation with the other areas of human resource management. And Emphasize transparency, monitoring, reporting and accountability.
The vision for compensation will assist the pubic service in attracting and retaining key employees of telecommunication sector.
Training and development of employees is also important because the technology is advancing day to day and in order to keep the employees abreast of new technologies it is very much important. And in telecommunication sector more and more advancement is done so training of employees is important.
Some of the expenses occurred in teletouch Ltd. are:-
Traveling expenses cost 1000000 rand per annum
Trip expenses cost 250000 rand per annum.
Extra expenses cost 200000 rand per annum.
Recruitment expense cost 800000 rand per annum.
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PERFORMANCE APPRAISAL PRACTICE
Performance appraisals are essential for the effective
management and evaluation of staff. Appraisals help develop
individuals, improve organizational performance, and feed into
business planning. Formal performance appraisals are generally
conducted annually for all staff in the organization. Each staff
member is appraised by their line manager. Directors are
appraised by the CEO, who is appraised by the chairman or
company owners, depending on the size and structure of the
organization.
Annual performance appraisals enable management and
monitoring of standards, agreeing expectations and objectives,
and delegation of responsibilities and tasks. Staff performance
appraisals also establish individual training needs and enable
organizational training needs analysis and planning.
Performance appraisals also typically feed into organizational
annual pay and grading reviews, which commonly also coincide
with the business
planning for the next trading year. It generally reviews each
individual's performance against objectives and standards for the
trading year, agreed at the previous appraisal meeting. It is also
essential for career and succession planning - for individuals,
crucial jobs, and for the organization as a whole.
Performance appraisals are important for staff motivation, attitude
and behavior development, communicating and aligning individual
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and organizational aims, and fostering positive relationships
between management and staff.
Performance appraisals, a powerful tool, provide documented
feedback on an employee's level of performance. They help
determine continued employment, promotion, transfer, bonuses,
and pay raises, and allow for improved communications between
managers and employees. The actual performance appraisal
documents become part of an employee's permanent record and
can greatly influence lives and careers. It provides a formal,
recorded, regular review of an individual's performance, and a
plan for future development.
Job performance appraisals - in whatever form they take - are
therefore vital for managing the performance of people and
organizations.
While designing the performance appraisal firstly we have to do
the performance planning. Designing the appraisal form as per as
the vision of organization. Than managing the performance of the
employees by observing them, finding solutions to their problems
and providing them the feedback.
Performance of the employees is generally appraised through
ratings, reviews and through documentation. After appraisal the
performance of the employees can be upgraded by providing
employees with adequate coaching and counseling. And the
performance of the employees should be rewarded by giving them
rewards or through appreciating their work performance through
which they got more motivated.
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Appraisals must not discriminate against anyone on the grounds
of age, gender, sexual orientation, race, religion, disability, etc.
Performance appraisals should be positive experiences. The
appraisals process provides the platform for development and
motivation, so organizations should foster a feeling that
performance appraisals are positive opportunities, in order to get
the best out of the people and the process.
Various forms of performance appraisal are confidential report,
rating scale, 360 degree feedback, checklist method, field review
method and much more.
Q) Laying down standards and procedures for recruitment, training, development, promotion, transfers, and termination for all levels of employees, including the board of directors operating in the joint venture at South Africa. This will form part of the business plan.
Ans) since it is very much clear that HR department of any organization is the most important department of that organization. Because for any department people are the main resource and so their maintenance is very important. And this important task is done only through HR department. The goal of human resource management is to help an organization to meet strategic goals by attracting, and maintaining employees and also to manage them effectively
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After our joint venture with CELL C our HR department is functioning very well. We are facing some difficulty to adapt with new culture but in few days we will certainly achieve the maximum output.
Now the standards and procedures for recruitment that we have adopted are as follows:-
Recruitment is the process of searching the candidates for employment and stimulating them to apply for jobs in the organization. Recruitment is the activity that links the employers and the job seekers.
Recruitment is a continuous process whereby the firm attempts to develop a pool of qualified applicants for the future human resources needs even though specific vacancies do not exist.
Now the steps that we are following for recruitment of executive in Teletouch South Africa are as follows:-
1) We are finding the number of vacancy that are needed in each of the departments of Teletouch.
2) Then we are preparing job description and people specification required for the job.
3) Then we are advertising the vacancy through the In-house advertising department.
4) There after we arranges the GDs interviews by giving the specifications to our In-house advertisement department.
5) Then we short list the candidates.
6) Thereafter we hold the responsibility of managing the response.
7) Thereafter interview is conducted after the permission of chairman and the decision is made for the suitable and selected candidate.
we put a great amount of emphasis on people relations. While recruiting people, our emphasis is not just on qualifications, but more on the mindset. We prefer people who have functional experience, and who have worked in various line functions.
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For freshers ours is a four-pronged selection process encompassing a written test, psychometric test, group discussions and interviews. Freshers are inducted into the company within one day,
While for senior professionals, interviews and group discussions are held and candidates are finalized within 2-3 days.
For new employees, our company has a two-month induction program. Further training imparted to fresh recruits is need based, and on-the-job training is provided to recruits who are inducted in specialized areas. Technical and soft skills training are also imparted from time to time to our employees. The training module is conducted by Mr. Sumant kumar Singh our HR training head. And further training details are stated as follows:-
Training and development is most important part of success in any company and we are working right now with South African telecom industry we have joint venture with Cell C, South Africa third largest cellular provider. So we have to gives the appropriate training to our employees. So I Sumant kumar Singh HR training head talk with my senior and conduct to each and every department senior member for the purpose of employees training.
So first I will aware what is training. Training is defined as
“It is a learning process that involves the acquisition of knowledge, sharpening of skills, concepts, rules, or changing of attitudes and behaviors to enhance the performance of employees”
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Training Need arises at three levels
Organizational Level – Training need analysis at organizational level focuses on strategic planning, business need, and goals. It starts with the assessment of internal environment of the organization such as, procedures, structures, policies, strengths, and weaknesses and external environment such as opportunities and threats
Individual Level – Training need analysis at individual level focuses on each and every individual in the organization. At this level, the organization checks whether an employee is performing at desired level or the performance is below expectation. If the difference between the expected performance and actual performance comes out to be positive, then certainly there is a need of training.
However, individual competence can also be linked to individual need. The methods that are used to analyze the individual need are:
Operational Level – Training Need analysis at operational level focuses on the work that is being assigned to the employees. The job analyst gathers the information on whether the job is clearly understood by an employee or not. He gathers this information through technical interview, observation, psychological test; questionnaires asking the closed ended as well as open ended questions, etc
There are various methods of training, which can be divided in to cognitive and behavioral methods
The various methods that come under Cognitive approach are:
LECTURES
DEMONSTRATIONS
DISCUSSIONS
COMPUTER BASED TRAINING (CBT)
INTELLEGENT TUTORIAL SYSTEM(ITS)
PROGRAMMED INSTRUCTION (PI)
VIRTUAL REALITY
Behavioral methods are more of giving practical training to the trainees. The various methods under Behavioral approach allow the trainee to behavior in a real fashion. These methods are best used for skill development.
The various methods that come under Behavioral approach are:
Both the methods can be used effectively to change attitudes, but through different means Another Method is MANAGEMENT DEVELOPMENT
MANAGEMENT DEVELOPMENT
The more future oriented method and more concerned with education of the employees. To become a better performer by education implies that management development activities attempt to instill sound reasoning processes Management development method is further divided in two parts
ON THE JOB TRAINIG
The development of a manager’s abilities can take place on the job. The four techniques for on-the job development are:
There are many management development techniques that an employee can take in off the job. The few popular methods are:
SENSITIVITY TRAINING
TRANSACTIONAL ANALYSIS
STRAIGHT LECTURES/ LECTURES
SIMULATION EXERCISES
CASE STUDY
These are the basic training process which used by the companies We have joint venture with Cell C south African telecommunication since we new in south Africa so we have to provide many types training and development program to our employees. There are some major barriers in the transfer of training when it comes to giving training in other countries
We are providing the following training and development program to our employees for better performance right now. We have decided different training for different employees.
If you work in another country so you have to make aware your employees about the country’s culture, language, and social structure to those employees who are not aware about the country’s culture, language, and social structure. And we are providing following trading
This is the most important for our company because without the knowledge of the above written company can be face problem.
Rapid technological changes, network security threat, mobile application development, growing IP deployment in the sector have brought back the training and development in the priority catalog.
Preferred Training methods in telecom sector are
On-the-job training
Brainstorming sessions
Distant learning
Workshop
Short-term interactive sessions
Seminar
Online e-Learning
CBT training program
Computer Lab Work
Group study
Training Courses and Programs Basic Course in Mobile Communication
Assembling OS, the Mobile Operating System
Binary Runtime Environment for Wireless
Diploma in Mobile Communication
Diploma in Wireless Technologies
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Foundation Course in Mobile Communication
Advanced Diploma in Mobile Communication and Software Technology
Internet Protocol Multimedia Subsystem ,IMS
Certificate Course in Mobile Communication
Voice Over IP
We are going to provide training by the following step
Start with employee orientation
The first days of work are crucial to a new employee’s success. We’ll want to orient the employee, and teach the company’s goals, and how they can be a part of achieving them. Involve key leaders, even the CEO. Review what’s required of them in the job description.
Go to in-house training
Training is not just for new employees. Continue to upgrade the skills of current employees, which will help them adjust to changes in their job requirements. Such training is best offered by a supervisor. Research shows employees respond better to in-house trainers because they’re familiar with the person and the workplace. Periodic in-house training, done in a group setting, can teach communication, customer service, team building, and technical and safety skills. Doing this while employees are on the job reinforces learning, which they can be applied right away to their work.
Move into mentoring
A specific kind of in-house training involves mentoring, where a high-rated employee teaches skills to another employee. Your mentor should be a keen and successful worker who will pass on the best skills — not bad attitudes or sloppy work. This one-on-one arrangement (which research shows as the most effective form of
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training) pays dividends for both parties. It enhances trust with the mentors because you’ve given responsibility to them, and it improves team building among trainees who work closely with a mentor. this type of training we provide some of the important employees or high level employees
Step next to external training
We are also offer out-of-house training, by sending employees to one-day seminars, college courses or workshops. Though they seem costly, these training opportunities can see as an employee perk, something to reward or inspire superb workers.
This kind of training provides new skills, stimulates creative ideas and instills employee commitment, which is brought back to the workplace. Our staff members will more likely show initiative, and be motivated.
Reap your competitive reward
An ongoing training can set our company ahead of the pack. Employees, particularly in younger generations, are eager to work for places that offer more than just a pay cheque. They want to learn new skills.
Investing in people shows your commitment to employees, which in turn fosters commitment in them? Not training employees creates the opposite of what you want — indifferent, unmotivated workers.
Online training We have online training courses on a wide range of subjects related to specific aspects of the business or key skill sets. These include:
Communicating for impact – business writing, giving presentations, managing meetings, negotiation skills
Making a personal difference – self-development, mentoring and time management
Managing a changing environment – decision making and problem solving
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Performing through our people – delegation, team building, leadership, facilitation
IT – how to use specific computer programmers.
We are integrating corporate responsibility into our training programs and induction courses. Online courses include related subjects such as anti-corruption and privacy training.
Promoting leadership We use our Leadership Framework to help us recruit and promote leaders within the company. We are evaluating our most senior managers against the framework. Our senior leaders participated in our workshops on Leading High Performing Teams. These are designed to build their awareness of leadership style and working culture. Our development initiatives emphasize the role of local operating companies in tailoring development support to individual needs.
For example, TeleTouch Spain "One Way" professional development program for managers includes training on team management and engagement, creating a culture of co-operation and effectively executing strategic goals. In 2007/08, a performance reporting tool was launched to keep individuals up to date on their progress. One Way has contributed to improving employee perceptions of the coaching and feedback they receive from managers.
Inspire program Inspire is a global program designed to identify and develop high potential employees and accelerate their progression into leadership roles. Participants take part in a three-month international rotation and receive commercial training and personalized leadership development through Imperial College, XLRI and FMS. They also gain from exposure to and learning from members of our Executive Committee.
The program promotes cross-cultural understanding within TeleTouch and encourages employees to take advantage of the breadth of experience across the Group.
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Provided five days training per employee
Organization In five days training we are given behavioral, attitude, organizational cultural etc basic training that’s must have to know employee for point of view
Technical Training Courses and Programs
1> Basic Course in Mobile Communication
2> Assembling OS, the Mobile Operating System
3> Binary Runtime Environment for Wireless
4> make expert in Mobile Communication
5> Diploma in Wireless Technologies
6> Foundation Course in Mobile Communication
7> Advanced Diploma in Mobile Communication and Software Technology
8> Internet Protocol Multimedia Subsystem, IMS
9>Certificate Course in Mobile Communication
10> Voice Over IP
Provide all types of coerces and trained people in that area.
Mainly employee we are divide in two group first soft skill employee and hard skill employee
We are provide both type of training hard training and soft training hard training mainly for technical person and soft training provided for soft skill person
Ex=hard skill is required for engineer , computer professional, guard etc
Soft skill training for customer care, sales person etc
But some times employees require both type of training. So we ha have provide training on the basis of requirement but orientation
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program we are must provided to employee for understand the organization culture
In fact, trained employees need less supervision. That frees you up to focus on building your business, growing your customer base and improving your sales. All of which boosts your competitive edge. Not a bad deal.
Work Shop
And we are providing work shop for top management label employee and director about the cultural, norms and values Of the South Africa for the better performance of the company. That training for two days training of board of director and top management they are join work shop and take benefit to that
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Some date wise training witch we give to our employees:
04-03-2010 Work shop for board of director
2 Days
07-05-2010 employee orientation 2 Days
09-05-2010 Provided five days training per employee
5 Days
18-05-2010 Inspire program 2 Days
21-05-2010 Promoting leadership 1 Day
23-05-2010 Intermediate Excel 2 Days26-05-2010 Advanced Microsoft Excel 2 Days01-06-2010 Technical Report Writing 1 Day03-06-2010 Team Working: Belbin
Team Role Accreditation2 Days
06-06-2010 Basic Presentation Skills 1 Day08-06-2010 People Management
Training Program5 Days
15-06-2010 Negotiations Skills 1 Day
TRAINING REQUIRED IN DIFFERENT DEPARTMRNT WISE EMPLOYEES
After consulting each and every department head I Sumant Kumar Singh decided deferent types of training required in different department. The following departments are required trainings:-
OPERATION DEPARTMENT
Operation department will be recruited 90 employees so out of 90 employees 66 employees required technical training and 24 employees who are recruited on the post of territory manager who are already experienced employees recruitment department give me report of those employees they have 2 years experience so
those employees will have to only orientation program and 5 days training will be provided to each and every employees because changes happen regularly in the market so that training beneficial for new as well as working employees for updating them. I also mention on the above.
SALES DEPARTMENT:
Recruitment department have given me data of sales department:
New recruitment=82 sales executives
Number of working employees=108
So we have to given the Negotiations Skills, People Management Training Program, employee orientation, Inspire program, external training, soft skill training is most important for the sales executive, Advanced Microsoft Excel these training will provide to new employees And for our working employees we also provide inspire program. We have to given the training of 3G technology for 190 sales executive. We provide them the technical training as well as coaching training.
IN HOUSE ADVERTISEMENT :
Recruitment department have given me data of in house advertisement department:
New recruitment=36
Number of working employees=36
The total new Recruitment 36 and those divided in four post 9 employees required for each post. These four are following
They require orientation program and they have to know about the organization culture norms and value. We will also provide, Advanced Microsoft Excel, Technical Report Writing etc.
MARKETING DEPARTMENT
Recruitment department have given me data of marketing department:
Managers=9
Sales executive=190
V.P=2
Director=1
We will provide different types of training for different level employees. We provide Promoting leadership, Inspire program, Team Working training, work shop, and sales executive training I written on the above sales executives are sales department employees and for the V.P and director we provide special work shop.
IT DEPARTMENT
We are providing special training to the employee of IT department. This includes our Enterprise Resource Planning training. We are also providing technical training as mentioned above. We will provide online training to them. We will also organize workshop for them. And the new recruitment done by the recruitment head Mr Sushant Ambuj as mentioned in the report we will organize new orientation program for those new employees.
And for the prevailing employees we will conduct Refresher training and in addition we will also provide MDPs. In these programs we will give emphasis on the 3G spectrum technology training.
Since no new employee is needed in this department. So we will give only Refresher training, MDPs and inspirational programme. We will also give them training on report writing to improve their report writing skill.
BOARD OF DIRECTORS
We have also requested the board of directors for the orientation program for the awareness about the cultural norms and values prevalent over there. And they have accepted our request. We will organize two days orientation program in which we will call cultural expert from South Africa who will make aware us about the culture prevalent in South Africa.
STRATEGIC DEPARTMENT
There is also no need for employees in strategic department. So we will provide workshop for vice president of strategic department as we are providing to board of directors. And for other employees of that particular department we will provide inspirational and leadership program.
HR APPRAISAL
Our organization has a quarterly HR appraisal, which includes a 360 degrees evaluation for senior management. Besides, there are regular appraisals for all employees, including executives and those on the shop-floor.
We have a generous incentive program, which has helped us increase our productivity as we have a plan to increase our market share from 5.5% to 11% by 2011. And we are also giving
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emphasis on reducing wastage as this will ultimately increase the profit of our company.
Incentives are offered to all genres of employees, and we have seen that they have greatly helped in raising morale as well as performance. We are giving a great concern on paying of incentives and bonuses to the employee who are working well and we also give warning to the underperformers. Because we follow the policy that if our employees will be happy then their level of production will be higher and this will ultimately be fruitful for our organization.
Professionalism in our work environment and direct involvement of management in ensuring employee welfare, are among the key aspects that make us different from our competitors. Besides, the investments that our organization has made for the future as well as the technology that our employees work with make our organization distinct from others.
Our objective is to help maintain our organization as a quality organization, which not only recognizes and nurtures talent, but also helps retain it. We also aim to endeavor to follow world class HR practices, for our organization.
We are following certain methods of recruitment written as follows:-
1. OUTSOURCINGthe outsourcing helps the organization in the initial screening of the candidates according to the needs of the organization and creating a suitable pool of talent for the final selection by the organization. In our Teletouch organization we are adopting this practice
2. E- Recruitment. Our In-house department wants to adopt this method as now this type of recruitment process is now very popular among the telecom companies. E- recruitment is the use of technology to assist the recruitment process. We advertise job vacancies through worldwide web. The job seekers send their applications or curriculum vitae i.e. CV through e mail using the Internet. Alternatively job seekers place their CV’s in worldwide web, which can be drawn by prospective employees depending upon their requirements.
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WE ARE ADOPTING CERTAIN TRENDS TO ATTRACT CAPABLE APPLICANTS THESE ARE AS FOLLOWS:-
1) Bigger paychecks: we are adopting to offer bigger salaries to the highest qualified personals who have the capability to raise the companies profit.
2) Flexible work arrangements are on the rise:- we are giving breaks and lunch hours on regular interval to the employees so that to maintain their working efficiency and their interest in the work.
3) Video & audio Resume:- we have adopted a new way of submission of resume of the applicants for the selection and this will be preferred as is a way for job seekers to showcase their abilities beyond the capabilities of a traditional paper resume. The video resume allows us to see, hear and get a feel for how the applicant presents themselves.
4) Recruiting diversity workers:- while recruitment in South Africa we are giving same concern on bilingual recruitment so as maintain a harmony in the work culture.
5) Freelance or contract hiring:- we are also adopting contract hiring for the recruitment of employees in our organization as for the 4th class work we are adopting this method as well we are also employing 90 customer care executive for the operation department by contract hiring.
6) Perks and benefits :- we are giving more attention to remain competitive in attracting and keeping workers. In light of rising healthcare costs we have planned to offer more comprehensive or better health benefits to our employees. we have also planned to enhance or add perks such as bonuses, discounts, company cars, stock options, free childcare, educational reimbursement, transit passes and wellness programs.
7) In addition we have also planned to give more promotions and career advancement opportunities to our employees so as to give them a better career and to reduce the chance of poaching and attrition.
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HR CHALLENGES IN RECRUITMENT
In the last few years, the job market has undergone some fundamental changes in terms of technologies, sources of recruitment, competition in the market etc. In an already saturated job market, where the practices like poaching and raiding are gaining momentum. As HR professionals we are constantly facing new challenges in recruitment.
The major challenges faced by us in recruitment are:
1. Adaptability to globalization – we are constantly facing the changing times, i.e. the changes taking place across the globe. So we are trying to maintain the timeliness of the process.
2. Process analysis – The immediacy and speed of the recruitment process are the main concerns for us. The process should be flexible, adaptive and responsive to the immediate requirements. The recruitment process should also be cost effective. So we are doing every thing to make it cost effective and efficient.
3. Strategic prioritization – The emerging new systems are both an opportunity as well as a challenge for us. Therefore, reviewing staffing needs and prioritizing the tasks to meet the changes in the market has become a challenge for us. And we are taking major steps to cope with that.
4. Attracting highly talented ones - The number of highly talented professionals is less. All the big MNC's are trying to attract these people with high salaries, perks, incentives etc. There is a tough competition among us and our competitors to get these candidates on their roles.
These days, it’s not just salaries which will pull the candidate in but various factors like brand, culture, location ,job security, reputation of the company etc play a major role in recruiting a talented professional.
Since our mission is to achieve a massive market share from 5.5% to 11% in South Africa. So as directed by our chairman the different departments working in South Africa demanded list of employees for recruitment in TeleTouch.
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SALES DEPARTMENT
Since we are operating in nine provinces so 82 new sales executives are wanted in sales department.
Post: - sales executive.
Vacancies: - 82.
Eligibility: - working experience of at least two years in sales department in telecom industry.
Remuneration: - 6000 rand/month.
Interview date: - 11 April 2010
Interview timing: - 10:00 am to 04:00 pm.
NO TA DA WILL BE PAYED TO THE CANDIDATES.
ALL THE CANDIDATES ARE REQUIRED TO BE PRESENT WITH ALL THE NECESSARY DOCUMENTS ON TIME.
INHOUSE ADVERTISING
In operation department one chief executive and four executives are working such as Executive audio video, Executive print, Executive sponsorship, and Executive outdoor event. And in all the 9 provinces 4 assistant executives of the respective departments are contributing that is total 36 assistant executives are currently working. But for increasing the market share they need 36 more assistant executives that they want to double the strength of employees.
Posts: - 1) Assistant executive audio video.
2) Assistant executive print.
3) Assistant executive sponsorship.
4) Assistant executive outdoor event.
Vacancies: - 36 (9 for each post).
Eligibility: - 1) For the post of assistant executive the applying candidate should have a degree in mass communication as well as they should have at least two year work experience in audio video advertisement.
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2) For the post of assistant executive print the applying candidate should have a degree in mass communication with experience in print media for at least two years.
3) For the post of assistant executive sponsorship the applying candidate should have a degree from a recognized university. And also the candidate should have at least two years work experience in the sponsorship field.
4) For the post of assistant executive outdoor event the candidate should be graduate in mass communication from a recognized university with at least two years work experience in outdoor advertising.
Remuneration: - 10000 rand/month.
Interview date: - 12 April 2010
Interview timing: - 10:00 am to 04:00 pm.
NO TA DA WILL BE PAYED TO THE CANDIDATES.
ALL THE CANDIDATES ARE REQUIRED TO BE PRESENT WITH ALL THE NECESSARY DOCUMENTS ON TIME.
FINANCE
Finance department does not need any more employees for its operation.
MARKETING
Marketing department does not need any more employees for its operation.
INFORMATION TECHNOLOGY
For information technology department there is a heavy demand for the employees.
1) Post: - Senior Manager.
Vacancies: - 15
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Eligibility: - Having degree of M.B.A from recognized university with one year executive degree from recognized university and Atleast 10 years of work experience in telecom field.
Remuneration: - 18000 rand/month.
Interview date: - 13 April 2010
Interview timing: - 10:00 am to 04:00 pm.
NO TA DA WILL BE PAYED TO THE CANDIDATES.
ALL THE CANDIDATES ARE REQUIRED TO BE PRESENT WITH ALL THE NECESSARY DOCUMENTS ON TIME.
2) Post: - Team manager.
Vacancies: - 10.
Eligibility: - Having M.B.A degree from recognized university along with at least work experience for 5 years as a team leader.
Remuneration: - 14000 rand/month.
Interview date: - 13 April 2010
Interview timing: - 10:00 am to 04:00 pm.
NO TA DA WILL BE PAYED TO THE CANDIDATES.
ALL THE CANDIDATES ARE REQUIRED TO BE PRESENT WITH ALL THE NECESSARY DOCUMENTS ON TIME.
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3) Post: - Supervisor.
Vacancies: - 10
Eligibility: - Having M.B.A degree from any recognized university with B.TECH degree in information technology. The candidate should have at least 5 year experience in the respective field.
Remuneration: - 13000 rand/month.
Interview date: - 13 April 2010
Interview timing: - 10:00 am to 04:00 pm.
NO TA DA WILL BE PAYED TO THE CANDIDATES.
ALL THE CANDIDATES ARE REQUIRED TO BE PRESENT WITH ALL THE NECESSARY DOCUMENTS ON TIME.
4) Post: - Help desk team leader.
Vacancies: - 10.
Eligibility: - Having M.B.A degree from recognized university. With at least 5 year work experience in sales field.
Remuneration: - 10000 rand/month.
Interview date: - 13 April 2010
Interview timing: - 10:00 am to 04:00 pm.
NO TA DA WILL BE PAYED TO THE CANDIDATES.
ALL THE CANDIDATES ARE REQUIRED TO BE PRESENT WITH ALL THE NECESSARY DOCUMENTS ON TIME.
5) Post: - Service help desk executive.
Vacancies: - 20
Eligibility: - Having M.B.A degree from any recognized university. Fresher can apply for this post.
Remuneration: - 8000 rand/month.
Interview date: - 13 April 2010
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Interview timing: - 10:00 am to 04:00 pm.
NO TA DA WILL BE PAYED TO THE CANDIDATES.
ALL THE CANDIDATES ARE REQUIRED TO BE PRESENT WITH ALL THE NECESSARY DOCUMENTS ON TIME.
In addition IT department needs 185 call centers executives.
We will outsource them and they will be provided new orientation program from training department.
STRATEGIC PLANNING
In strategic planning department there is no demand for new recruitment.
OPERATION
In operation department following number of employees are needed.
1) Post: - Territory manager.
Vacancies:-24.
Eligibility: - Having M.B.A degree with at least two year work experience as territory manager.
Remuneration: - 13000 rand/month.
Interview date: - 14 April 2010
Interview timing: - 10:00 am to 04:00 pm.
NO TA DA WILL BE PAYED TO THE CANDIDATES.
ALL THE CANDIDATES ARE REQUIRED TO BE PRESENT WITH ALL THE NECESSARY DOCUMENTS ON TIME.
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2) Post: - Working staff.
Vacancies: - 66
Eligibility: - Having a technical degree of telecom or having a degree from polytechnic institute.
Remuneration: - 7000 rand/month.
Interview date: - 13 April 2010
Interview timing: - 10:00 am to 04:00 pm.
NO TA DA WILL BE PAYED TO THE CANDIDATES.
ALL THE CANDIDATES ARE REQUIRED TO BE PRESENT WITH ALL THE NECESSARY DOCUMENTS ON TIME.
For the overall recruitment we have estimated a total budget of 0.4 million rand and we have demanded from the Finance department about the same.
PROMOTION PROCEDURE
As we are new in South Africa and our mission is to achieve 11% growth rate in 2011. So we are working hard to achieve that.
Now regarding promotion we adopt following process:-
1) We have the system of regular assessment of the performance of the employees. That is we have a very well system of performance appraisal. We generally adopt 360 degree appraisal system. In which the employee is judged by his peers, his subordinates and his supervisors.
2) This system is very helpful in assessing the performance of the employees without any biasness. And it also helps in assessing how much the person is popular in the organization.
3) After the assessment we compare it with our standards. If the employee is working properly and he is coming up to our expectations then we give him the incentives and bonuses. And if he is continuously showing improvement in his work then we use to promote him.
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4) We promote the capable employee to higher posts which ultimately becomes a moral boost for that particular employee as well as among his peer groups as well as subordinates. That is work hard and gets promoted.
5) This promotional strategy is very popular in our organization and it is heavily applauded by our Board of Directors.
In TeleTouch department we do 360 degree appraisal system in every six months. And we are also demanding the number of employees who the respective department thinks that he is working outstandingly. But till now we have not get any demand from any of the departments about the promotion of the employees. And the recent performance appraisal I would like to say that the employees have not reached to the level that we are expecting. However we are giving bonuses and incentives to the employees to encourage the employees to perform better. And our move is also becoming successful.
TRANSFER PROCEDURE
For the transfer of the employees to different department we have certain policies as described.
1) We adopt job enlargement and job rotation policies to equip the employees with different specialization.
2) We do job enlargement by giving them training to more aspects of work.
3) We do job rotation by giving employees chance to work in different designation.
By adopting these method we not only equip the employee with
different specialization but at the same time we also maintain
their interest from their daily work.
And since they are specialized in different work they can be
transferred to different departments wherever there is shortage of
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any sort of employees. And by this we can transfer the employees
to any part of the province where our operation is going on. We
also use to transfer those employees who are multiple specialized.
This supports our organization as we usually don’t need to
outsource people for special work. Since we are operating in 9
provinces only so our mode of operation is in these provinces. We
transfer employee according to the needs of different department
in different region.
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TERMINATION
Termination of employment is the end of an employee's duration with an employer. Depending on the case, the decision may be made by the employee, the employer, or mutually agreed upon by both.
There are following process of termination of the employees:
1 Voluntary termination
2 Involuntary terminations
o Dismissal o Layoff
3 Termination by mutual agreement
o Changes of conditions
Voluntary termination
Voluntary termination is a decision made by the employee to leave the job. Such a decision is commonly known as "resignation", "quitting", "leaving", or "giving notice". Some common reasons for voluntary termination include:
Personal dissatisfaction with job, employer, hours, or working conditions, or in more severe cases, burnout.
Factors in employee's personal life not related to the job that makes holding or performing the job impossible or more difficult. These may include family obligations, education, health, or moving to a new location.
Hire at a new job. Reasons for wanting a different job may be better working conditions, better hours, a shorter distance to work, better pay, graduation, career progression or preparation for entry into a new career, or a career change.
Feared or anticipated involuntary termination. The employee may wish to take matters into his/her own hands in order to leave more honorably. This is also known as mutual consent in some parts.
Retirement . This may be as a result of the employee's age (which may vary, depending on job type and benefits
available following retirement) or else an injury, disability, or other medical condition forcing early retirement.
Depending on the employee's reason, comfort with the employer, and dedication to the job, voluntary termination may be sudden and abrupt without warning to the employer, or with a certain amount of notice given. Generally, employers prefer that a departing employee provide at least some notice to the employer, often at least two weeks. Those in compliance with this requirement are more likely to be rehired by the same employer in the future, to receive their full benefits from the employer, and to get a better reference for future employers.
Involuntary termination
Involuntary termination is the employee's departure at the hands of the employer. There are two basic types of involuntary termination, known often as being "fired" and "laid off." To be fired, as opposed to being laid off, is generally thought of to be the employee's fault, and therefore is considered in most cases to be dishonorable and a sign of failure. Often, it may hinder the now job-seeker's chances of finding new employment, particularly if he/she has been fired from earlier jobs. Job seekers will often not mention jobs that they were fired from on their resumes; accordingly, unexplained gaps in employment are often regarded as a red flag.
Dismissal
Dismissal is the employer's choice to let go of the employee generally for a reason that is the fault of the employee.
Layoff
A less severe form of involuntary termination is often referred to as a layoff. A layoff is usually not strictly related to personal performance but due to economic cycles or the company's need to restructure itself, or a change in function of the employer. One type of layoff is the aggressive layoff. Under such a situation the employee is laid off for a just cause but is never replaced and the job is eliminated.
However, employment termination can also result from a probation period, in which the employee and the employer reaches an agreement that he or she is allowed to lay off the employee if the probation period is not satisfied.
Often, layoffs occur as a result of "downsizing", "reduction in force", or "redundancy". These are not technically classified as firings. A laid-off employee's job is terminated and not re-filled, because the company wishes to reduce its size or operations, or otherwise lacks the economic stability to retain the position. In some cases, a laid-off employee may be offered re-hire by his/her respective company, though by this time, s/he has often found a new job.
Termination by mutual agreement
Some terminations occur as a result of mutual agreement between the employer and employee. When this happens, it is sometimes debatable if the termination was truly mutual. In many of these cases, it was originally the employer's wish for the employee to depart, but the employer offered the mutual termination agreement in order to soften the firing. But there are also times when a termination date is agreed upon before the employment starts.
Some types of termination by mutual agreement include:
The end of an employment contract for a specified period of time.
Mandatory retirement. Some occupations, such as commercial airline pilots, face mandatory retirement at a certain age.
Forced resignation
Changes of conditions
Firms that wish for an employee to exit of his or her own accord, but do not wish to pursue firing or forced resignation, may degrade the employee's working conditions, hoping that he or she will leave "voluntarily". The employee may be moved to a different geographical location, assigned to an undesirable shift, given too few hours if part time, demoted (or relegated to a menial task), or assigned to work in uncomfortable conditions. Other forms of manipulation may be used, such as being unfairly hostile to the employee, and punishing him or her for things that are deliberately overlooked with other employees.
Often, these tactics are done so that the employer won't have to fill out termination papers in jurisdictions without at-will
Market share of Tele Touch was 5.5% in South Africa’s telecom industry. Tele Touch’s chairman and board has decided to take it to 11% in the next year. In order to do so, sales department has decided to introduce new sales technique, new telecom plans, recruit some more sales executive; explore new territory and a heavy advertisement and promotional practices this year.
Total geographic area is divided into nine provinces,
We have divided total south African territory into nine provinces, they are
1. Eastern Cape
2. Free State
3. Gauteng
4. KwaZulu-Natal
5. Limpopo
6.Mpumalanga
7.Northern Cape
8.North West
9. Western Cape
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POPULATION ESTIMATES FOR ALL NINE PROVINCES ARE :
6. Eastern Cape - 6.9-million (14.4%)
7. Free State - 2.9-million (6.2%)
8. Gauteng - 9.6-million (20.2%)
9. KwaZulu-Natal - 10-million (20.9%)
10. Limpopo - 5.4-million (11.3%)
11. Mpumalanga - 3.5-million (7.4%)
12. Northern Cape - 1.1-million (2.3%)
13. North West - 3.4-million (7.1%)
14. Western Cape - 4.8-million (10.1%)
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LAND AREA BY PROVINCE
This is the hierarchy of the sales department; here one general manager is the hade of the department. There are four regional manager come under the one general manager. Nine area managers are working in nine provinces each for one province.
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We divided nine provinces into four regions:-
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1. East region.2. West region.3. North region.4. South region.
Each region consists with province; this diversification is held on the basis of population, area, and market. Eastern Cape is come under south region. Northern Cape, Western Cape are come under west region. Free State, KwaZulu-Natal and Mpumalanga are come under east region. Limpopo, Gauteng and North West are come under north region. Each region is managed by the one regional manager, and every province is managed by the one area manager.
South region: -
(Eastern Cape)
Total population of Eastern Cape is 6.9 million, which is 14.4% of the total population. That is the big part of the total. And the total area is 13.9% of the total. That’s why we choose only one area manager for this region.
West region:-
(Northern Cape)
Total population of Northern Cape is 1.1 million, which is 2.3% of the total population. That is the lowest one in whole province. And the total area of Northern Cape is 29.7%; this is the biggest part of
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whole province because of desert. That’s why we added one another region.
(Western Cape)
Total population of Western Cape is 4.8 million, which is 10.1% of the total population. And the total area of Western Cape is 10.6%, both are the neighbor province that’s why we choose as a region.
In this region we capture the total 5.9 million populations but if u sees the total area that is 40.3% of the total area, that is bigger one but due to desert and low population they make this region.
East region:-
(Free State)
Total population of Free State is 2.9 million, which is 6.2% of the total population. And the total area of Free State is 10.6%.
(KwaZulu-Natal)
Total population of this region is 10 million, which is 20.9% of the total population. And the total area of this region is 7.6%.
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(Mpumalanga)
Total population of this region is 3.4 million, which is 7.4% of the total population. And the total area of this region is 6.5%.
In this region we capture 16.3 million populations, and total area captured by this region is 24.7% of the total area. This region captured approx one fourth of population and approx one fourth of the area that is the reason behind make this region.
North region:-
(Limpopo)
Total population of Limpopo is 5.4 million, which is 11.3% of the total population. And the total area of Limpopo is 10.2%.
(Gauteng)
Total population of Gauteng is 9.6 million, which is 20.2% of the total population. And the total area of Gauteng is 1.4%.
(North west)
Total population of North West is 3.4 million, which is 7.1% of the total population. And the total area of North West is 1.4%.
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In this region we capture 18.4 million populations, and total area captured by this region is 21.1% of the total area.
Our employees are:-
Provinces employees 09-10 employees 10-11
Eastern Cape 15 25
Free State 12 18
Gauteng 12 29
KwaZulu-Natal 11 21
Limpopo 12 25
Mpumalanga 13 22
Northern Cape 08 08
North West 13 20
Western Cape 12 22
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Here this chart shows in 09-10 employees on the basis of province, when our target was 5.5% and in year 10-11 when our target is 11%.
Tele touch world
Tele touch world is our company’s service centre and retail store. We have open 40 outlets all over South Africa, in order to make our services available to end customer, on the basis of population of the regions.
DIVISION OF 40 OUTLETS OF TELE TOUCH IN THEIR PROVINCES:-
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Eastern Cape – 6 outlets
Free State – 2 outlets
Gauteng -8 outlets
KwaZulu-Natal - 8 outlets
Limpopo – 5 outlets
Mpumalanga – 3 outlets
Northern Cape – 1 outlets
North West – 3 outlets
Western Cape – 4 outlets
With conjunction marketing department, we have decided to launch these offers and sim’s plans
Tele Touch’s sim plan
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SIM RATE(R)
VALIDITY AIRTIME SPREAD (R )
AIR TIME (PER MONTH)
OFF ON ANY CELL PHONE
300 6MONTH 390 65 -----
900 12 MONTH 1200 100 300
1350 18MONTH 1800 100 400
1750 24 MONTH 2400 100 600
Total sales from sim plan = 665689655.07 R
SIM RATE ® SALES IN % SALES IN (R)
300 32 213020689.6
900 28 186393103.4
1350 25 166422413.75
1750 15 99853448.25
Tele Touch recharge coupons
Control chat
Contract length (months)
Connection fee
( R )
Monthly fee ( R )
Included monthly airtime
(R )
50 12 OR 24 114 50 50
75 12 OR 24 114 75 85
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Business Plan For TeleTouch Ltd (2010-2011)
100 12 OR 24 114 100 115
125 12 OR 24 114 125 145
150 12 OR 24 114 150 175
175 12 OR 24 114 175 205
200 12 OR 24 114 200 235
225 12 OR 24 114 225 265
250 12 OR 24 114 250 295
300 12 OR 24 114 300 350
350 12 OR 24 114 350 410
400 12 OR 24 114 400 470
450 12 OR 24 114 450 530
500 12 OR 24 114 500 600
600 12 OR 24 114 600 725
700 12 OR 24 114 700 850
Casual Contract length (months)
Connection fee
Monthly fee
Included monthly minutes
Included SMS per month
SMS 1 , 12 OR 114 115 ----------- 200 ANY
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Business Plan For TeleTouch Ltd (2010-2011)
24 TIME
100 1 , 12 OR 24
114 115 100 OFF - PEAK
-------------
ANY TIME
1 , 12 OR 24
114 130 50 ANY TIME
-------------
Active chat
Contract length (months)
Connection fee
Monthly fee
Included monthly minutes
Included SMS per month
100 1 , 12 OR 24
114 250 100 ANY TIME
-----------
220 1 , 12 OR 24
114 399 220 ANY TIME
Business chat
Contract length (months)
Connection fee
Monthly fee
Included monthly minutes
Included SMS per month
STANDARD 1 , 12 OR 24
114 185 NONE -
400 1 , 12 OR 24
114 650 400 ANY TIME
-
700 1 , 12 OR 24
114 1100 700 ANY TIME
-
1000 1 , 12 OR 24
114 1500 1000 ANY
-
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Business Plan For TeleTouch Ltd (2010-2011)
TIME
318
Business Plan For TeleTouch Ltd (2010-2011)
REACHARGE COUPONS
COST ( R )TELE TOUCH RECHARGE CARD
ATM STANDARD BANK, AUTO BANK
5 YES YES YES
25 YES YES YES
35 YES YES YES
39 YES YES YES
50 YES YES YES
70 YES YES YES
150 YES YES YES
300 YES YES YES
500 YES YES YES
SALES OF TELE TOUCH ACCORDING TO THEIR PROVINCES:-
Provinces SALES IN ( R ) %SALES IN PROVINCES
Eastern Cape 798827586.08 16.2
Free State 384620689.6 7.8
Gauteng 936896551.58 19
KwaZulu-Natal 971413792.95 19.7
Limpopo 463517241.31 9.4
Mpumalanga 448724137.86 9.1
Northern Cape 138068965.5 2.8
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Business Plan For TeleTouch Ltd (2010-2011)
North West 315586206.86 6.4
Western Cape 473379310.26 9.6
TOTAL 4931034482 100
SALES OF TELE TOUCH ACCORDING TO THEIR REGIONS
REGION Provinces SALES IN PROVINCES(R)
%SALES IN PROVINCES
SALES IN REGION ( R )
%SALE
IN REGION
SOUTH Eastern Cape
798827586.08 16.2 798827586.08 16.2
WEST Northern Cape
138068965.5 2.8 611448275.76 12.4
Western Cape
473379310.26 9.6
EAST Free State 384620689.6 7.8 1804758620.16 36.6
IN THE ABOVE TABLE ITS SHOWS Construct a working spreadsheet so that the bottom-right cell shows the total sales or gross margin, or profit, whatever you need to measure Left cell shows the item and from which item we have got how much sales.
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Business Plan For TeleTouch Ltd (2010-2011)
MONTHLY SALES OF TELE TOUCH
MONTHS TOTAL SALES SALES IN %
APRIL 310655172.366 6.30%
MAY 343693103.395 6.97%
JUNE 366375862.012 7.43%
JULY 380182758.562 7.71%
AUGUST 309668965.469 6.28%
SEPTEMBER 340241379.258 6.90%
OCTOBER 282548275.818 5.73%
NOVEMBER 297341379.264 6.03%
DECEMBER 616379310.25 12.50%
JANUARY 592710344.736 12.02%
FEBURARY 553755172.328 11.23%
MARCH 537482758.59 10.90%
TOTAL 4931034482 100%S
IN THE ABOVE TABLE ITS SHOWS Construct a working spreadsheet so that the bottom-right cell shows the total sales, whatever you need to measure Left cell shows the month and from which month we have got how much sales
As our financial year starts from 1 April, sales department have been trying to achieve companies short term target right from the initial months itself. Slowly and steadily we have generated growth in sales with the help of our In house advertisement department. In the festive month of December, where X-MAS and NEW YEAR is at the corner we have achieved a sale of R616379310.25. And in the last quarter near about 35% of sales
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Business Plan For TeleTouch Ltd (2010-2011)
Motivational practices
Sales budget
Total salaries R 1,74,36,000
Allowances R 8,71,800
Stastionary R 21,000
Discounts R 15,000
Transport Expenses R 6,48,000
TOTAL EXPENSES R 1,89,91,800
323
Designation
Sales Target (in rends)
Benefits (other than salary)
General manager
R 5,000,000,000 Bentley GT
Regional manager
R 1,417,672,000 BMW Convertable
Area manager
R 657,471,000 Mercedes -Benz
Sales executive
R 35,036,000 Yamaha ZW
Business Plan For TeleTouch Ltd (2010-2011)
Products (features, versions and variants)
NOK-616 Sales price:-R1700
Network: CDMA 1x, 800 and 1,900MHz
Main screen: 65K colors Resolution: 128 x 160 pixels
Mini display: 4,096 colors
Resolution: 96 x 65 pixels
Camera: VGA, 1.0MP, flash, 2.5 or 5x digital zoom
MMC card slot, up to 512MB
SMS, E-mail and MMS functions
Music player for MP3/ACC
Bluetooth and infrared port
Supports WAP 2.0 browser
Supports Java
Dimensions: 87.3 x 47.4 x 27mm
Can refurbish the covers, the main board is not changed and the same as the original
Sales promotion practices1. Out Of Home Media: - OOH Media is India’s largest out-of-home television company. We leverage our robust Business, In-store and Leisure Network to display audio-visual advertisements and engage urban consumers while they work, shop and play.
Our medium combines the strengths of audio-visual communication with the visibility of outdoor. The ability of this new medium to ensure that advertisers get their message across their most difficult to reach consumers with regularity, across different day parts and in a seamless way, is what differentiates this medium of communication from any other medium.
We have already installed over 4900 screens in more than 22 cities across India and propose to set up as many as 30,000 screens in the next 18-24 months. This would make us India's largest digital out-of-home television company
10. RBT :- It means Ring Back Tone. What happens in it is that whenever a customer calls in our network, he/she will hear a jingle of our company.
The jingle will be in different languages :-
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Business Plan For TeleTouch Ltd (2010-2011)
In English :- “TeleTouch….feel the Touch”.
We will give this service free of cost to our customers with new connections for the first six months.
11. Television :- We will also give advertisement in the television also. Though television is a very good medium of advertisement. And different types of programmes, news even cricket matches are coming on the televisions. Therefore we will give advertisements in between those programmes, news, matches etc. And this will help a lot in increasing our sales.
12. Radio/FM :- Since Radio and FM are the very good source of advertisement, and also in different cities FM Radios plays a very vital role among the youths. Therefore our plan is to advertise very heavily with this medium.
13. Newspapers :- We will also advertise ourselves via different newspapers also. These newspapers includes Daily Son, The Star, Cape Times, The Herald, Pretoria News etc.
14. Magazines :- Our advertisements will also be placed on different magazines like Black Business Quarterly, Entrepreneur Magazine, Gateway, Fairlady, Cosmopolitan, Marketing Mix etc.
15. Internet :- Since internet is the fastest medium of everything. And now most of the people are using Internet regularly for different-different types of work. Therefore, we will also give advertisement of TeleTouch in the internet also.
16. Hoardings :- In different cities and towns, near traffics and public places we will advertise ourselves through hoardings.
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Business Plan For TeleTouch Ltd (2010-2011)
17. Website :- We are also launching our website for advertisement. The address will be www.teletouch.com , so that the customer would get the whole the information about our services very easily.
Q-Why do we need a Call Centre? There are many reasons to consider establishing a Call Centre. As they help the org. to keep their customer satisfied if they get any problem in their product or service.
Some examples include:
An increasing number of customer complaints, perhaps increasing to ministerial complaints, are received.
Poor publicity regarding the level of customer service.
A departmental focus on reducing costs while increasing service levels.
Increasing customer contact and call volumes throughoutthe agency, with a growing number of agency staff required to take telephone calls.
The development of agency initiatives, such as specific hotlines and community campaigns, leading to expected and unexpected increases in call volumes.
Unpredictable crisis or emergency situations, such as contamination of drinking water, oil spills and hailstorms.
Agency business with a large number of customer interactions.
Recognition that the role of the agency’s switchboard is more than simply connecting customers to various sections in the department and that existing facilities are not up to standard.
A call center will enhance the company services. A call center can provide a no. of important benefits. Just like-
348
Business Plan For TeleTouch Ltd (2010-2011)
Increase the focus on customer services is likely to lead to more efficient methods in handling significant levels of customer interactions. This, in turn, leads to a reduction in transaction costs where the majority of simple customer interactions are handled by dedicated, well-trained, frontline staff. The more senior and experienced staff can then be assigned to more complex tasks.Achieving further internal efficiencies may also allow the agency to initiate contacts with clients and can make simpler the handling of incoming calls to a central area, rather than being spread across various sections throughout the agency
A variety of customer contact channels may also be utilized technology-based services, such as Interactive Voice Response (IVR) units and Web-based services via the Internet.
Checklist for Call Centre Establishment or outsourcing Costs
1. Capital expenditure:
building - purchase or lease, fit out; telecommunications – telephone system, fax, ACD, IVR,
handsets, headsets; Information systems – hardware, software, systems
development, backup systems.
2. Other site expenditure:
Architect or facility planner; agents’ commission.
3. Recruitment and training
4. Other expenditure:
Project management and consultancy. Legal fees. Redundancy (idleness) costs (if agency staff is displaced).
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Business Plan For TeleTouch Ltd (2010-2011)
Job search and retraining (if agency staff is displaced).
(a prestigious call center of South Africa) providing their services since ……………..
We do our work on lease i.e. taking their services to serve our customer in a best way by which they will satisfy. According to our contract with Accenture, call centre will employ 185 telecallers for our project. A basic telephone system for a Call Centre begins with a key telephone System, where the telephones have multiple buttons and allow the user to select lines for outgoing or incoming calls directly. So we consider all the requirements what we need to outsource the services of Accenture with all the hardware and software requirements.
A PABX (Private Automatic Branch exchange) is specialized equipment that acts as an extension of the public network. It allows different telephones within an organization to have their own number (or extension) where calls can be made or transferred internally. Outside callers can dial a specific extension to reach a person or section. PABXs are normally purchased or leased from associated vendors.
Automatic Call Distribution (ACD) systems provide flexibility in distributing and managing inbound calls by automatically keeping callers on hold until the next Customer Service Officer is available. An ACD can also make all them in a queue while another one is online.
Automatic Call Distribution-Management Information Systems (ACD-MIS) give comprehensive management information in real-time, as well as historical information, for effective call management analysis and reporting. It provides reports on 15-minute and 30-minute call traffic patterns and individual groups or CSOs. Overall Call Centre performance can be
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Business Plan For TeleTouch Ltd (2010-2011)
reported and aggregated on a daily, weekly, monthly and year-to-date basis.
Centrex is a sophisticated network service with advanced call-handling capabilities that replaces the need for a PABX, as the infrastructure is provided within the exchange. ACD capabilities and MIS reporting are available, direct from the exchanges. However, Centrex does not offer the functionality and full range of reporting that a standard PABX / ACD system offers.
IVRs are increasingly being used by inbound Call Centers to manage call volumes more efficiently. Calls are screened by offering callers a choice of options that can be selected by pressing a button on their telephone handset. The IVR then directs the call to the CSO responsible for that area. This is commonly known as skill-based routing.
VALUE ADDITION
Receiving call in one go:
We have gone through all the aspects related to call centre. We have done our deal with accenture (call centre in South Africa) and we have planned to give better services to our customers. Most of the time customers complain that they don’t connected with call centre executive for this we have negotiated with Accenture and we paying extra money to Acceture for implementing this and we have purposed Accenture to employ 185 tele- callers for Teletouch project
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Business Plan For TeleTouch Ltd (2010-2011)
Providing important information to customers through our website
We have planned to update our customers time to time through our website. We will send our customers to their bill and details and information about some new exciting offers. We will provide the facility of opening an email account with Teletouch.
Reminding and congratulating to customers about their birthdays and festivals
Our main aim is to serve customers with delight. We need to take care all the aspects related to our customers so we have planned to congratulate and remind our customers about their birthdays and festivals through our website.
Making customer aware about our product and its use
It is often seen that more the product is complex the more it will be complex in use so we will make our customers aware through our website, how can customer use our product effectively and can take best from our product. We will update our customers time to time.
Cost analysis of the IT department
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Business Plan For TeleTouch Ltd (2010-2011)
We need 300 systems RS 12,00,000
Software for MIS that is ERP
RS 2,00,00,000
Server 15 +1 RS 45,00,000
LAN & WAN equipment RS 1,00,00,000
Maintenance equipments & spare parts
RS 85,00,000
Call center( outsourcing for 2 years)
RS 6,50,00,000
Web site development & maintenance
RS 10,00,000
Total RS 110200000
We need RAND = 44080000
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Business Plan For TeleTouch Ltd (2010-2011)
SOFTWARE OF IT DEPARTMENT AND ITS FUNCTIONALITY
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Business Plan For TeleTouch Ltd (2010-2011)
Accordingly, an entire ERP for IT approach and adequate solutions touch various IT disciplines such as:
Application Lifecycle Management (ALM)
IT Governance
IT Service Management (ITSM)
Application Performance Management (APM)
Business Activity Monitoring (BAM)
Service-Oriented Architecture (SOA)
IT Asset Management (ITAM)
Information Security
Knowledge Management
Enterprise Content Management (ECM)
Business Service Management (BSM)
355
Business Plan For TeleTouch Ltd (2010-2011)
Enterprise resource planning (ERP) is an enterprise-
wide information system designed to coordinate all the resources,
information, and activities needed to complete business processes
such as order fulfillment or billing. As we have taken our software
from SIEMENS SOFTWARE PVT. LTD .An ERP system supports most
of the business system that maintains - in a single database - the
data needed for a variety of business functions such as
human resources and customer relationship management.
An ERP system is based on a common database and a modular
software design. The common database can allow every
department of a business to store and retrieve information in real-
time. The information should be reliable, accessible, and easily
shared. The modular software design should mean a business can
select the modules they need, mix and match modules from
different vendors, and add new modules of their own to improve
business performance.
Ideally, the data for the various business functions are integrated.
In practice the ERP system may comprise a set of discrete
applications, each maintaining a discrete data store within one
physical database.
Enterprise Resource Planning is the latest high end solution,
information technology has lent to business application. The ERP
solutions seek to streamline and integrate operation processes
and information flows in the company to synergies the resources
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Business Plan For TeleTouch Ltd (2010-2011)
of an organization namely men, material, money and machine
through information. Initially implementation of an ERP package
was possible only for very large Multi National Companies and
Infrastructure Companies due to high cost involved.
HIERARCHY OF IT DEPARTMENT IN TELETOUCH
357
Executive
MIS external
(1)
Executive
Maintenance
(1)
Executive
Up gradation
(1)
Vice president (1)
Executive
MIS internal
(1)
Supervisors
(8)
Employees
Under
Supervisors
For all sub
Business Plan For TeleTouch Ltd (2010-2011)
RECOMMENDATION
Board of directors recommend that for achieving marker share of 11%in south Africa it is important that we focus on the different opportunities and Increasing affordable access of mobile services in the interest of social and economic development.TeleTouch Always strive for excellence but for excellence we have to focus on problems faces by people of south Africa. We have to convert our weakness into strength and threats into opportunity. Infrastructure development to become a leader in telecom industry We have to focus on the development of infrastructure like adoption of new technology, spreading of network services, provide mobile and other related service in cheaper cost.
1. High cost of mobile access charge
An official of the Bureau of Public Enterprises said the GSM system “was not really aimed at the common man” so TeleTouch have to make available mobile service in reasonable charges to rural and socially deprived mass.So GSM would be the most cost-effective technology for providing low-cost telephony to low-income areas and would require operating solely on a prepaid basis. TeleTouch would have to enthusiastic about providing low-cost telephony in rural areas and have to find ways to cope with the high prices of mobile telephony.
2. Evidently lack of handsets
Evidently lack of handsets in Africa has not hindered people from purchasing SIM cards, sharing phones and using communal phones. Sharing sim cards is not uncommon in
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Business Plan For TeleTouch Ltd (2010-2011)
Many parts of the south Africa. On the other hand, in the rural areas sharing is mostly with those who havesim cards but are too poor to afford a phone. One of them told me it is better to have their own number rather than go all the way to town In addition, it gives him a sense of identity despite his social status. so avail the mobile to poor people is a important strategy to increase the market share in low penetrated mobile area. It would seem access to or use of mobile phones would possible in south Africa to those at all income levels.
3. In South Africa, there was evidence that mobile phones were the only source of communication for a large number of small businesses especially in the rural areas. Hypothetically, this would be the finding in most parts of south Africa, if businesses in the rural areas have one phone, it will be a mobile phone. TeleTouch have to understand how rural communities and small businesses use mobile telephones, and what impacts they are having. it is common to find a lot of information on the potential ofmobile phones for small businesses.
4.Mobile banking
A program from South Africa is the Fundamo a system to make payments from mobile phones. And is the favorite way among upper and middle class to pay. the bills so this is the opportunity for teletouch to give service and increase market share The potential customer want to purchase the item and confirms the sale with a PIN number. In South Africa, 31% of unbanked people have a mobile phone, and a further 17% have access to a mobile phone.
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Business Plan For TeleTouch Ltd (2010-2011)
5.Mobiles phones have been used generally to search for jobs and specifically in health and agriculture which are both critical areas of concern in Africa’s development efforts
provide Health service
The use of SMS is also being popularized in the health sector with some positive results.The Open Knowledge Network (OKN) The main objective of this is to use SMS to send messages on HIV/AIDS prevention and control; provide tips to pregnant women; offer health management and nutritional advice.Another example of innovative use of wireless technologies for health is ,uses of mobile phones to improve the treatment of Tuberculosis (TB) in its clinics. South Africa has one of the most
alarming TB epidemics in the world. The most recommended method for treating TB is the Directly Observed Therapy System (DOTS), where health workers watch patients take their medication each day; but this is difficult in a country where TB is prevalent and where the health workers are already overstretched. In this context, if patients miss an intake, they have to start the whole process again. Fortunately, the technology solution was provided by On Cue, a small company offering a Compliance Service that sends SMS to patients to remind them to take their medication at pre-determined times. The criteria for selecting the patients in the pilot study included ownership of mobile phones and the identification of those likely to take medication without supervision.from this way teletouch can generate money and also fulfill the corporate social responsibility.
In agriculture sector
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Business Plan For TeleTouch Ltd (2010-2011)
The agricultural sector is also significant in south African states.
This is an excellent initiative in an economy that relies on agriculture as farmers can make more money even without increasing output
In education sector
In the education sector, there is an interesting pilot project using Wi-Fi for education in the rural areas. This is the ‘Rural Connectivity Project for the Global Education
6.2010 Fifa World Cup
The government has invested in the 2010 Fifa World Cup because doing so will build a better life for all. In the 2007/08 Budget, the government allocated $1.3-billion for transport and supporting infrastructure for the World Cup. A further $1.25-billion will be used for stadiums.
Wider access to broadband, ADSL and 3G access has boosted internet connectivity, with the number of South African internet browsers increasing by 121%.soteletouch have a opportunity to serve in the different aspects of technology.like mobile TV.internet tv
7.Network quality
Teletouch should be commited to providing our subscribers with a high quality grade of service and to availability of the
network 24 hours per day, 7 days per week.
8. spread mobile service in other parts of Africa like neighbouring areas of south Africa LESOTHO,NAMBIA
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Business Plan For TeleTouch Ltd (2010-2011)
BOTSWANA ANGOLA and others. because south Africa is the gateway to enter in Africa.
According to finance department our debt –equity ratio is 0.603:1 so we can raise money from the market or from bank to expand our business in other parts of Africa.
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Business Plan For TeleTouch Ltd (2010-2011)
CONCLUSION
In the coming financial year TeleTouch will seek to continue
to make its strengths and remain the lowest cost operator in
the South African cellular industry. We will continue to
democratise telecommunications as we enable South Africans
to use mobile telephony to improve their lives economically
and socially. We believe the new strategic emphasis we have
outlined for increasing our market share to 11% will ensure
that the TeleTouch continues to deliver
growth and continued profits to our shareholders. In
particular, our strong strategy of providing electronic
communications infrastructure and services will differentiate
us in a market.
As the industry defines its future and grows its footprint in
the new era of cellular telecommunications, we are confident
TeleTouch is well positioned for continued success in the
years ahead.
Our success, however, is linked to the success of
individuals, entrepreneurs, businesses and countries who
have come to expect us to perform beyond their
expectations. We believe that TeleTouch creates an
environment and provides opportunities for staff to reach
their full potential, while ensuring depth of management and
expertise as well as visionary leadership in our core areas of
business.
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Business Plan For TeleTouch Ltd (2010-2011)
BIBLIOGRAPHY
1.Britannica encyclopedia
2.www.google.com
3.south Africa telecommunication regulatory authority website-www.satra.gov.za
6. ‘Mobile Communication Technologies’, from http://www.mobileafrica.net/technologies.php ]
7. ‘Mobile phone handset market in Africa’. http://www.mobileafrica.net/technologies-mobile-phone-marketin-africa.php]
8.Business in Africa (2004) ‘Telecom operators strike gold in Africa’ http://www.businessinafrica.net/features/telecoms/349759.htm]
9.Chitamu P. and M. Naicker (2005) ‘Peer-to-Peer Wireless Networking for Rural Telecommunications’ http://engineering.udw.ac.za/coe/Research/Zahira/rurcom.pdf]
10.Engelbrecht, D. (2005) ‘Mobile, Wireless offer Innovative Approach to Healthcare Delivery’ fromhttp://www.meridianhc.co.za/guestm&wde.html]
13.Geser, H. (2004) ‘Towards a Sociological Theory of the Mobile Phone’. from http://socio.ch/mobile/t_geser1.pdf]
Green D. (2003) ‘South Africa: A Novel Approach to Improving Adherence to TB Treatment’. Essential Drugs Monitor, Iss. 33, pp. 8-9
14.Jensen, M. and D. Richardson (1999) ‘Wireless weaves to lessen the gaps in rural telecommunication coverage in Africa’ http://www.fao.org/WAICENT/FAOINFO/SUSTDEV/CDdirect/CDre0025.htm]
15. ‘Visual Search on a Mobile Phone Display.’ Proceedings of the
South African Institute of Computer Scientists
and Information Technologists Conferencehttp://portal.acm.org/citation.cfm?id=581548&dl=ACM&coll=portal]
