INTRODUCTION TO MANAGEMENT

PROJECT REPORT
ON

PAKISTAN TELECOMMUNICATION COMPANY LIMITED

(PTCL)

SUBMITED TO:-
MISS. LALA RUKH

SUBMITED BY:-
MUHAMMAD NOMAAN (SP09-BEL-033)
MUHAMMAD BILAL (SP09-BEL-061)
UMAIR AHMED (SP09-BEL-067)
BUSHRA IMTIAZ (SP09-BEL-014)
ANUM QAYYUM (SP09-BEL-006)
 INTRODUCTION TO MANAGEMENT

TABLE OF CONTENTS
1 PTCL – PAKISTAN TELECOMMUNICATION LIMITED . . . . . . . . . . . . . .
..
1.1 Introduction of
PTCL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.2
Vision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.3
Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.4 Core Values . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.
1.5 Organizational Structure
..............................................

2 STATEGIC
MANAGEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.1 Why It Is Important For An
Organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.2 Process Of Strategic
Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.2.1 SWOT
Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.2.2 External Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
....
Strength
Weakness
2.2.3 Internal
Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Opportunities
Threats
2.2.4 STRATEGIC MANAGEMENT CYCLE

3 TYPES OF ORGANIZATION OF PTCL . . . . . . . . . . . . . . . . . . . . .

3.1 CORPORATE
STATEGY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.1.1 GROWTH
3.2 BUSINESS STRATEGY
3.2.1 DIFFERENTIATION
3.2.2 COST LEADERSHIP
3.2.3 FOCUS STRATEGY
3.3 FUNCTIONAL STRATEGY
3.3.1 HUMAN RESOURCE
3.3.2 MARKETING
3.3.3 FINANCIAL RESOURCES
Profitability
Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Liquidity
Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Leverage Position . . . . .

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4 FUTURE OF PTCL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . ..
4.1 TODAY’S WORLD IMPORTANCE

5 QUESTIONNAIRE’S
6 suggestions
7 conclusion

8
Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . .. . . . . . . . . . . . . . . . . . . . . . . . .

1 PTCL – PAKISTAN TELECOMMUNICATION LIMITED

1.1 Introduction of PTCL

PTCL is the largest telecommunications provider in Pakistan. PTCL also continues to

be the largest CDMA operator in the country with 0.8 million V-fone customers. The
company maintains a leading position in Pakistan as an infrastructure provider to
other telecom operators and corporate customers of the country. It has the
potential to be an instrumental agent in Pakistan’s economic growth. PTCL has laid
an Optical Fiber Access Network in the major metropolitan centers of Pakistan and
local loop services
have started to be modernized and upgraded from copper to an optical network. On
the Long Distance and International infrastructure side, the capacity of two SEA-ME-
WE submarine cable is being expanded to meet the increasing demand of
International traffic. With the promulgation of Telecommunication (Re-Organization)
Act 1996, the Pakistan Telecommunication Authority was established as the
Telecom Regulatory body. Following the open licensing policy in BUY @ PKR 45.40
accordance with the instructions of Government of Pakistan and in exercise of
powers conferred by Pakistan Telecommunication (Re-Organization) Act 1996, the
basic telephony was put under exclusivity and PTCL was given a seven years
monopoly over basic telephony
which ended by December 31, 2002. The year 2006-07 in the telecom sector
witnessed a phenomenal growth in the mobile phone sector in Pakistan, which
doubled its subscriber base to 60 million. The Teledensity increased from 26% to
40%, helping to spread the benefits of communication technology across the
country. PTCL's mobile phone subsidiary Ufone's subscriber base grew by more than
87%, from 7.49 million to 14 million. The year also witnessed the entry of major
telecom companies, most notably China Telecom and Singtel, into the market.
Restructuring and re-engineering are in their final stages along with the
implementation of ERP system. From the end customer's perspective, a major

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initiative was put in place in the shape of 'Broadband Pakistan' service launch as a
first step towards providing its customer with more value added
service and convenience. With this offering, the PTCL not only bringing the benefit
of high speed Internet access to subscribers in major cities but will also generate
new revenue streams for future growth/

1.2 Vision
To be the leading Information and Communication Technology Service Provider in
the region by achieving customer satisfaction and maximizing shareholders' value'.

The future is unfolding around us. In times to come, we will be the link that allows
global
communication. We are striving towards mobilizing the world for the future.

1.3 Mission
To achieve our vision by having
• An organizational environment that fosters professionalism, motivation and
quality
• An environment that is cost effective and quality conscious
• Services that are based on the most optimum technology
• "Quality" and "Time" conscious customer service

1.4 Core Values

• Professional Integrity
• Customer Satisfaction

ORGANIZATIONAL CHART

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PRESIDENT
(C.E.O)

C.T.O C.I.O C.F.O

GENERAL MANAGER GENERAL MANAGER

GENERAL MANAGER

SENIOR MANAGER SENIOR MANAGER

SENIOR MANAGER

MANAGER MANAGER
MANAGER

ENGENEER

SUPERVIOSER

TECHNICIAN

LINEMAN

INFORMATION FLOW CHART OF PTCL:

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Departmental Chart, H-9 Islamabad Branch

Clerical
General Manager Traffic Department Account Department
Department

Engineer Senior Accountant Admin

Supervisor
Operator Staff

Technician
Supervisor Cashier

Line Man

2 STATEGIC MANAGEMENT OF PTCL

2.1 How it works in ptcl

2.1.1Customer Care Initiative:

To achieve the pinnacle of Excellence in Customer Service envisioned by the President/CEO the Training
and Development department has assumed the responsibility for effectively imparting training under the
Customer Care Initiative to all PTCL employees.

2.1.2 Implementation of ERP system in T&D:

The focus of the project is to set up and maintain the qualifications catalogs, create and evaluate profiles
for a range of objects (for example, persons and positions), evaluate career and succession planning
scenarios, set up appraisal systems, as well as plan, hold, and evaluate appraisals, create development
plans, and work through individual development planning scenarios by customizing the functions of
personnel development to meet customer requirements.

2.1.5 Quality Awareness Programme:

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In order to create quality awareness and skills improvement of PTCL staff, a 3-year QA plan has been
made. The project is scheduled from March 2007 to December 2009. Following four types of programmes
are under the work plan:

• Installation Quality Standards

• Quality Auditor Course
• Companywide Quality Awareness
• ‘Train the Trainer Programme’ offered to the faculty of PTCL training centers

3 SWOT ANALYSIS

3.1 INTERNAL ANALYSIS

3.1.1 Strengths
• Largest operational network and infrastructure within ICT (Information &
Communication Technologies) segment.
• An integrated Monopoly
• Market leadership in Local loop, Wireless local loop (WLL) and Fixed telephony.
• PTCL (Ufone) is market challenger in GSM segment
• Ufone is performing well though Warid and Telenor are tough competitors. PTCL,
Ufone’s profitability increased by 49.2 percent to Rs 977 million in 1H/FY07 as
compared to Rs 655 million in the corresponding period last.
• Competitors still depend on PTCL network either directly or indirectly
• Experienced Telecom Resources

3.1.2 Weakness

• Not been able to nurture its growth around customer services oriented strategy
• Internal organizational and business processes issues
• Monopolistic culture has further added to its complexities
• Paknet, the internet service provider arm of ptcl continues to incur losses due to
poor management and lack of
network optimization
• Ptcl-v, the fixed wireless phone service is poor
• Over employment & low productivity.
• Slow decision making including external interferences.
• Corporate culture akin to government departments.

3.2 EXTERNAL ANALYSIS

3.2.1 Opportunities
• Low teledensity of pakistan.
• Have vast infrastructure and real estate assets which can be leveraged further.
• Global connectivity reliability has been improved. PTCL is expanding the long
distance and infrastructure side through spreading out two sea-me-we submarine
cables..
• Partnership with new entrants in a deregulated environment.
3..2.1 Threats

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• Increased competition in long distance continues to exert pressure.

• VOIP use is increasing despite ambiguous and discriminatory policies
• Exposure to market competition
• Migration to Cellular Networks
• Ability to Attract & Retain Quality Professionals
• Reduction in International Settlement Rate taxable revenue base.
• Accelerate expansion of telecom infrastructure to extend telecom services to
unserved and undeserved areas.
• Encourage fair competition among service providers, while maintaining leadership
in the telecom sector
• Maintain consistency with the Pakistan IT and internet promotion policy of low
prices for Bandwidth and Internet access.

3.2.2 ORGANIZATIONAL L MANAGEMENT CYCLE

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The cycle above describes the Organizational Management process at PTCL. Yellow
blocks describe the
core functions of the Company performed at all levels in the Organization. Blue
Blocks are the Strategic
functions which are performed at the Strategic level only.

3 TYPES OF ORGANIZATION STRATEGY

3.1 CORPORATE STRATEGY

3.1.1 GROWTH

PTCL Upcoming

IPTV Services

Ever wondered what it would be like to receive adverts on TV only for the products that you are
interested in buying? What if when you are watching the latest thriller on a movie channel or a
live cricket match and you have to suddenly leave to attend to guests, you are still able to come
back and see the action from exactly where you left? What if you can see the daily and monthly
program list and times for your favorite TV channels with the press of a button? What if you are
offered a multi channel TV service with state of the art digital DVD picture quality? Well you
won’t have to wonder for too long as all of these and many more features will soon be coming
your way in shape of PTCL’s multi channel IPTV service!

Broadcast and specialty TV channels

– Digital Broadcast TV

– Pay-per-view (PPV)

Directed advertising

– The ability to receive specific adverts for products that you are interested in buying

And many more mouth watering features

– Gaming
– Interactive services

– SMS/voice integrated applications

3.2 BUSSINESS STRATEGY

As the ptcl growing its position as the leading ICT service

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provider and a profit leader, a five year Strategic Master Plan for the Company, with
defined corporate KPI targets, timelines and ownerships was developed by the PTCL
management. Defining yearly targets on market shares for various voice and data
services, introduction of a corporate KPI based performance measurement system,
Restructuring of the organization, formulation of IPTV, Triple Play and converged
services, migration to an end to end IP based network, Investment strategies such
as Assets Management for risk diversification and improved Return on Investments,
were all part of the master plan.

3.2.1 DIFFERENTIATION

PTCL has by far the largest network coverage, competitive price, and a range of Value Added
services including Phone book, messaging, and call logs. PTCL wireless service gives voice
quality of a landline with country-wide coverage, employing the state of the art CDMA 2001x
technology and nationwide availability.

3.2.2 COST LEADERSHIP.

PAKISTAN PLUS LEADERSHIP

Pakistan Plus offers 2,500 minutes of nationwide calls for a fixed package charge of Rs. 199.
The package also includes free voicemail and call waiting. Moreover, for convenience to
customers, all subscribers who were on Pakistan Package as of 31st March 2008 have been
shifted to Pakistan Plus with effect from 1st April 2008

Line rent (excl. taxes) Rs. 174

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Package charge Rs. 199

Local – Peak (8 am to 9 pm) Rs. 2.00/2 mins
Local – Off Peak (9 pm to 8 am) Rs. 2.00/4 mins
NWD call Free (up to 2500 minutes)
additional minutes would be charged at Rs.
2.00 / min
Mobile Rs. 2.50/min
Free Services Voice mail, Call waiting

BASIC LERDERSHIP

Basic Plus is designed to meet the needs of the low usage segment and includes basic services
along with voicemail and call waiting. All customers who were not on Pakistan Package as of
31st March 2008 have been shifted to Basic Plus with effect from 1st April 2008.

Line rent (excl. taxes) Rs. 174

Package charge NIL
Local – Peak (8 am to 9 pm) Rs. 2.00/2 mins
Local – Off Peak (9 pm to 8 am) Rs. 2.00/4 mins
NWD call Rs. 2.00/min
Mobile Rs. 2.50/min
Free Services Voice mail, Call waiting

VALUE LEADERSHIP

Value Plus is designed for the internet savvy and offers 1,200 internet minutes in addition to 25
nationwide calling minutes per month for a fixed package charge of Rs. 75. The package also
includes free voicemail and call waiting

Line rent (excl. taxes) Rs. 174

Package charge Rs. 75

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Local – Peak (8 am to 9 pm) Rs. 2.00/2 mins

Local – Off Peak (9 pm to 8 am) Rs. 2.00/4 mins
NWD call Rs. 2.00/min
Mobile Rs. 2.50/min
Free Minutes / Services 1200 Phone n Net minutes,
25 nationwide minutes,
Voice mail, Call waiting

3.2.3 FOCUS STRATEGY

Broadband and Value Added Services

PTCL through diversification and assorted products and services could retain its
fundamental presence in the Telecom Sector. Introduction of DSL Broadband
services across major cities with plans to include more cities in times to come will
enhance the revenue base of PTCL. Stiff competition from other cable based
broadband service providers and local cable operators still persists. PTCL’s
broadband services100,000 subscribers by providing services in the five largest
cities and had a decent start by adding over 10,000 subscribers within the first few
months of its operations depicting PTCL’s brand recognition.

3.3 FUNCTIONAL STRATEGY

3.3.1 HUMAN RESOURCE DEVELOPMENT

HR ASPECTS

The transformation from a legacy public sector organization into a responsive and
competitive enterprise in the deregulated era could not have been possible without
implementing a forward looking Human Capital development and management
strategy. One of the most important objectives of this new strategy was to optimize
the workforce which was implemented by offering the voluntary option of
separating From PTCL in exchange for financial compensation. Around 29,920
employees opted to pursue other
career opportunities after accepting terms of voluntary separation from PTCL.

3.3.2 MARKETING

Market Structure

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PTCL is leading in terms of traffic on WLL in Pakistan, which has about 54 percent
market share of total traffic of WLL segment. Two major players, PTCL and Telecard
have lost market share in WLL traffic in quarter ending December 2007 when
compared with the same quarter of the last year. PTCL share came down to 54
percent from 57 percent while Telecard share in total traffic has come down to 22
percent from 30 percent. WorldCall has gained 100 percent and its share reached to
22 percent at the end of 2007 compared to the same quarter last year. PTCL, the
incumbent operator in fixed line in Pakistan has also emerged as market leader with
57 percent market share followed by Telecard and Worldcall with 19.6 percent and
20.2 percent market share at the end of December 2007.Great Bear International
share is reported to be 3 percent, while Wateen Telecom share is 0.2 percent,which
started their services during the quarter. PTCL has gained over 1 percent
marketshare compared to the same quarter of last year while Telecard added over
5 percent market share during this period. Great
Bear International though a smaller shareholder in WLL market but its share is
increasing due to its quality of service as it reached to 3 percent as compared to 2
percent in December 2006.
policies by the PTA.

3.3.3 FUNCTIONAL STRATEGY

Financial Aspects

The structural adjustments undertaken by the company in response to the

increased competition and substitution impact of mobile expansion has adversely
hit the profitability of PTCL in the short run.

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Fig Below: 5 years Financial Analysis of PTCL

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Liquidity Position

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The liquidity position of the company suffered a setback in FY06. This trend has
been witnessed despite increasing current assets, as current liabilities grew more
sharply. The short term borrowings of the company have been mounting for the last
few years and this has contributed to the current trend of the current ratio. It may
be noted that the company holds large amounts of cash and bank balances
compared to the other companies in the business. This may provide an edge to the
company over its competitors. Although the liquidity stance of the company is fairly
satisfactory at the moment, but a continuation of the current negative trend may
spell trouble for the company.

Leverage Position

The debt ratios showed a decreasing trend in the FY07. The debt to asset ratio of
the company had declined considerably in FY05 but the trend reversed in FY06,
declining again in FY07. It IS important to note that the company maintains a largely
unleveraged capital structure, with the current trend in debt ratios bought about
largely by changes in current liabilities of the company.

4 STRATEGIC MANAGEMENT IN TODAY’S ENVIORMENT OF PTCL

4.1 FUTURE OF PTCL

PTCL Launches New Packages

PTCL recently launched three brand new packages for its consumers. But where every other
telecom in the country is slashing its call rates and finding other ways to make money, PTCL has
actually increased its rates! While almost brilliant in their design, the new packages can and will
inflate your telephone bill quite a bit so be prepared for a hefty setback at the end of this month if
you use your PTCL line at all.

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5 QUESTIONS TO NADEEM KHATAK( Engineer/S.M)?

Q. What facilities PTCL provide to its employees?

Ans. According to National Payment Scheme, a supervisor rank officer gets 15000 salary and
online salaries to other employees and medical facilities as well.

Q. Which Procedure is followed for hiring employees?

Ans. Old method of hiring by TNT is not used now a day. According to new method of Etisalat 3
year diploma in engineering is required.

Q. Are your customers are increasing or decreasing?

Ans. Customers are decreasing because of Etisalat not good policies towards their customers
such as Pakistan Package.

Q. Are you satisfied with the privatization of PTCL?

Ans. No, because employees are not permanent they’re on contract basis because of poor policies
of Etisalat.

INDIVIDUAL QUESTIONAIRE
NADEEM KHATAK (Engineer/S.M)
H-9 ISLAMABAD Branch

Q. What is your qualification?

Ans. BS and MS in Telecom Engineering

Q. What is your job experience?

Ans. 30 years job experience in PTCL

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INDIVIDUAL QUESTIONAIRE
Atta ur Rehman (MANAGER)
H-9 ISLAMABAD Branch

Q. What is your qualification?

Ans. Engineering

Q. What is your job experience?

Ans. 22 years job experience

Q. What is your attitude towards junior employees?

Ans. Cooperative

FACTORS OF ORGANIZATION
Customer
o Organizations
o General public
o
Supplier

Input TIP from Haripur, internal inputs also from Siemens, Erricson, and Huawei out door
optical fiber system from Z-T china including DSL facility.

Competitor
o Wateen

Substitute
o Zong
o Ufone
o Mobilink

• Pressure Group
o News media
o

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ENVIRONMENTAL UNCERTAINITY MATRIX

Degree of Change
Stable Dynamic
DEGREE OF COMPETITOR

• Supplier • Customer
Simple

• Pressure group • Competitor

• Substitute
Complex

6 CONCLUSION

Over the past 2 years, TelecomPk.Net has offered many reviews and commentary about
PTCL. A quick look shows that the telecom consumers of Pakistan have been engaged in various
forms of struggle with the privatized face of PTCL. The way PTCL handled the most recent rate
increase of local calls (from 0.4 Rs per minute to 1 Rs per min) is indicative of its attitude
towards consumers.

7 SUGGESTION
I will give following suggestions to the organization by which they can be able to overcome there
drawbacks:
• They have to implement the user intensive technology.
• Immediate Response to the Customer
• Increase Network Capacity
• Improve Complaint Department
• Proper Billing to the Customer

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8 Bibliography

For successful completion of this project we have utilize different available

resources, from which we have obtain required data. These resources lie in both
digital and analog form. Most of the information is obtain from Internet, while a visit
to company is also made to get further information. We are thankful to company
management who had welcome and cooperate with us. Resources which are
consulted discussed below:

Resources

o Company’s website - www.ptcl.com.pk

o Company Annual Reports
o Magazine Business Economist
o Google.com
o Economic survey of Pakistan
o Businessrecorder.com
o Security and Exchange Commission of Pakistan
o Yahoofinance.com
o PTA Reports

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PROOF

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