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Internship Report
Wise communication systems (Pvt.) Ltd
Internship report Submitted in partial fulfillment of the requirements of degree for the degree of Master of Business Administration in Finance
AT
National university of Modern LanguagesLahore, Pakistan
August 2010
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National university of Modern LanguagesFaculty of Management sciences
It is here by certified that the report has been thoroughly and carefully read and recommend to the faculty of management of sciences for acceptance of final internship report by Mohammad Qasim Roll # 9133 Session (Aug-2008 to Aug-2010) night in partial fulfillment of the requirements of degree for the degree of Master of Business Administration in Finance of National university of modern languages Lahore.
Date: August 2010
Supervisor: ________________
Observer: __________________
Head of Department: ___________________
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Acknowledgement
By the grace of Almighty, the most beneficial, I’m today submitting my internship report, at the end of my pragmatic experience and I, m glad to have it with wisecomm. My parent’s prayers and their teachings were always with me and hereby I will like to take this opportunity to show my gratitude to all those who made my internship an adventurous outwit.
Here I am from more professional and rater corporate environment of wisecomm head office Lahore. I never knew what it all going to be. As I enter the office it took me a minute to realize that the person sitting in the half fortified walls is the manager. As a glance, I grasped the interesting personality of the officer today and at the end of my internship; he is one of the person to whom I shall always be remember. Sir I learn from you shall always going to be respected, no matter whatever business field I choose. Those tips are always on my memory tag.
Despite of hectic schedule my teachers help me so much I grateful you for clarifying my concepts and making me learn from your experience. Whatever I learnt from you will definitely help in my upcoming study and professional life ahead. Thank you so much for being so co-operative and so helpful every time.
Mohammad Qasim
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Dedication
I dedicate my work to my parents, teacher and friends. They help me a lot in the accomplishment of this work task. Without their help assistance and corporation I will not be able to complete my work. They encourage me at every step and boost up my moral. I thank them all to core of my heart
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Table of Contents
Serial No. Description Page No.
1. Preamble 4 2. History of Global 6 3. Vision 7 4. Mission 8 5. Group Profile 8 6. LDI Licence 12 7. Real Estate Development 13 8. Products & Services 14 9. Deregulation Opportunities 15 10. New Businesses 16 11. New Licenses 16 12. PTA Award LDI License 17 13. PTA Award License (WLL) 17 14. Management Team at Global 18 15. Branch Offices of Global 20 16. Organizational Structure of Global 24 17. Products Information 25 18. Products Samples 26 19. Flow Chart of Termination Segment 30 20. Competitive Strategy 31 21. Competitors 31 22. Organizational Life Cycle 32 23. Performance Appraisal System 33 24. Performance Appraisal Forms 35 25. Compensation System 36 26. Bonuses 37 27. Compensation 38 28. Techniques for Job Analysis 39
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29. Training Method 42 30. On Job Training (OJT) 46
Table of Contents
Serial No. Description Page No.
31. Classification of Revenue 47 32. Proportion of Revenue 48 33. SWOT Analysis 49 34. Financial Statements 52 35. Ratio Analysis 58 36. Recommendations 59 37. Conclusion 60 38. Bibliography 61
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Internship Report
On
GLOBAL GROUP OF COMPANIES
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PREAMBLE
Praise is to Allah Almighty, the One who is the creator of creatures and knows all that we show and hide testing us at all times and making decisions about what we don’t know and can’t know.
Today it is impossible for a man to run the business especially in this period of competition. This situation demands energetic, duly qualified experienced businessmen who could meet the challenges of this age of modernization. Department of Business Administration undertakes to produce management specialists fully aware of the pros and cons of the business management, and capable of meeting the challenges of modern business world.
Gratitude
Its been so long since I learned my first word, but I promise that I still remember the first day at school, when I was just four and very reluctantly entered my Nursery class, my teacher gave me a pat on my back and a packet of Chips. I wonder how time passes without letting anyone know how much it has actually passed.
When I was starting this preface portion of my project report, my eyes filled, with gratitude for every single person whom I owe my bits of knowledge, and now when I am at verge of leaving my academic career, I feel that those sixteen years are never existed in my life. This project report, one of the last monuments of study career, makes me sad.
I don’t want to take any of the credit for all this; instead I want to dedicate to all those people who have contributed to my learning at any stage.
I would not be going justice in presenting this project report without mentioning the people around me who have been inextricably related with the completion of this project.
I would like to extend my special thanks to the People at SUPERIOR, Especially
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Mr. Muhammad Farooq, Programme Incharge, Superior M.Com evening. Who has been a mile stone to our career and helped us a lot in every moment of problem relating to any issue relating to study or other wise.
Mr. Muhammad Riaz performing his responsibilities as Programme Incharge M. Com evening at present. I think I have been in the best place among all my class fellows.
Mr. Muhammad Ilyas, M. Phil, Economics and a student of PhD in the field of Economics, a person with practical skills as well theoretical knowledge. Who taught us the aspects of Economics and how to conduct research in business.
Ms. Rehan Aziz Khan Shervani, who equipped us with skills of law and legislation.
Mr. Sami Bajwa, International affairs analyst at UNIDO who taught us Strategic Management.
Mr. Syed Hassan Raza Gillani, a man with a very practical approach in the field of Banking.
Mr. Muhammad Latif, Engineer at Packages Pakistan Ltd. with a true spirit of building nation.
Mr. Syed Umair Gardezi, who has been an ideal teacher for us who inculcate a true spirit of learning in our selves.
Mr. Rana Asghar Ali, who taught us how to tackle the HR issues. Mr. Maj. Rt. Waqar Khadim, a personality with practical approach to
Organizational Behavior. Mr. Col. Rt. Sohail Akram, who been very kind to us in learning of
Management.. Mr. Muhammad Rashid, who been such a kind and nice person we
never interacted with. I would like to thank Mr. Muhammad Nasir Khan, a very nice friend
of mine and supported all of us a lot being the class representative (CR).
Well this list can go onto to three four pages, but these are the people who have made themselves very valuable to me. Two persons stand a step forward who are Mr. M. Farooq and Mr. M. Ilyas, who has not just acted as our teachers at Superior but also friends, elder brothers and best advisors for me in my life. Let me say special thanks to both of them.
Company Profile
Wise Communication Systems (Pvt) Limited Pakistan (Wisecomm) was incorporated on January 1, 2004. WiseComm is an international telecommunication service provider with the ability to route voice and data traffic across the world. Our cost and quality competitive services are offered to carriers, resellers, businesses, phone shops and residential customers.
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WiseComm also offers prepaid calling card and carrier selection code services. Our fully redundant PoPs in Europe and USA are interconnected with the top-tier carriers such as Teleglobe, Reach, Telstra, Kingston Telecom, Colt Telecom, Elitel, Tiscalinet, Teliasonera, Ibasis, Primus, GrupAlia, G3U OneTel, Versatel, Voice Net, Epsilon, SingTel, France Telecom and WaveCrest. WiseComm is a growing, dynamic, profitable and debt free operator.
Products and Services
Our products & services are:
available in 4 Major European countries supported by global customer services available in Major Cities of Major Conuntries competitvely priced
Wisecomm offers customized solutions to all your voice service needs. Whether it's setting up a Call shop,dealing with pre-paid calling cards,want to buy minutes from us or want to design your own pre-paid calling cards, our experienced sales team can help you decide what product is best for you.
Wisecomm Core Values
Wisecomm is one of the world´s leading telecommunication company covering modern telecommunication services and innovations. We are the poiners of VOIP technology in major european countries. It has its worldwide presence in all major cities of the major countries. It is not only one of Europe´s largest Pre-paid services company but also a truly global player. We are represented in 3 continents, in all major markets. Delivering a cost effictive and best calling services in all major european countries, wisecomm has earned customer satisfaction. The major offices are in Italy, UK, France, Spain , USA and Pakistan.
Product & Services Wisecomm is one of the world’s leading telecommunication company covering modern telecommunication services and innovations. We are the pioneers of VOIP technology in major European countries. It has its worldwide presence in all major cities of the
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major countries. It is not only one of Europe’s largest Pre-paid services company but also a truly global player. We are represented in 3 continents, in all major markets. Delivering a cost effective and best calling services in all major European countries, wisecomm has earned customer satisfaction. The major offices are in Italy, UK, France, Spain, USA and Pakistan.
Wisecomm offers customized solutions to all your voice service needs, whether it's setting up a call shop, dealing with pre-paid calling cards, want to buy minutes or design your own pre-paid calling cards. Our experienced technical sales team can help you decide what product is best for you.
Wise Communication Systems
Wise Pharmaceuticals
Wise Construction
Wise Estate Management
Contact
History of Global Telecomm
Global Telecommunications Group began its life in 1995 Global Payphones, now Global Communications Limited. The next few years were spent in expanding payphone network across Pakistan, creating new businesses and drawing investor attention to the value of Global businesses.
And now, the Global Group is one of the largest private telecom operators in the country with businesses like Wireless Local Loop (WLL) through CDMA 2000 1X technology, nationwide presence of long distance & international (LDI) network with 15 POPs, over 15,000 payphones, the pioneer prepaid calling card "GT" many others names and rights to dark fibers in a national long haul network being built across Pakistan.
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In 1996 payphone operation called Global Payphones Limited. The new venture stood at the front end of a communication revolution that was yet to grip the country. Our perception of a changing business environment placed Global at the lead of a demand-led explosion of payphones all over the country. We installed our first payphone in June 1996. Today Global has over 15,000 payphones all over the country. We are one of the largest fixed line payphone operator and the pioneers of “Supervised Payphones” business model in Pakistan. With the expansion in telecom we have continued to innovate. Over the years we have invested in new technologies and businesses. In 1998 prepaid calling cards were launched by Global Phone cards under the brand name "GT Calling Card" and afterward with many other brand names. In the following year the group established dial-up internet services.
In 1999 Global Telecom Lanka established the Groups' first overseas presence when payphone operations were established in Sri Lanka.
In 2000 Global Telecom established a Hybrid Fiber Coaxial (HFC) scalable network in Lahore thus becoming the first Multi-service operator in the country, providing cable television and Internet-over-cable. In cable TV in Lahore, Global was the last entrant and by far the largest. In 2003 we launched a state of the art HFC network operation in Karachi under Global Broadband Limited. These are the largest and only national networks capable of triple play (cable TV, high speed internet/data and telephony). These companies are also offering metro fiber lease to a number of other telecom / cellular operators as well as corporate.
Global Telecom Limited (WTL) acquired Wireless Local Loop (WLL) licenses/spectrum in the post deregulation auction to provide WLL telephony in all 14 telecom regions of Pakistan primarily in the 1900 MHz band. It has partnered with Samsung for a CDMA 2000 1x solution (with EVDO option). WTL started service from Lahore in June 2005 which is now available in 14 cities. WTL also acquired an LDI license and service commenced at the end of 2004. WTL enjoys significant edge over competition due to rights to dark fibers in a national long haul network which is being built across Pakistan.
In line with its vision, Global Telecom division has been integrated into a single corporate entity to realize maximum synergies from its diverse and extensive operations/infrastructure deployments in the telecom sector and offer a total telecom solution. Global Communications Limited, Global Multimedia Limited and Global Broadband have been merged with Global Telecom Limited.
Global is a conglomerate that operates a number of businesses in the TMT (Telecom, Media and Technology) Sector. Present businesses include the Pakistan’s largest national payphone network, the first HFC (hybrid fiber coax) broadband network, a pre-paid calling card service, and a payphone company in Sri Lanka. Global intends to launch Pakistan’s first international long distance network based on Next Generation Network Architecture during the summer of 2004, and Local Loop Services through Multi Service Access nodes and Wireless Local Loop technologies.
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Vision
To become the number one national alternative telecoms provider and a leading multi-services operator with regional and international footprint.
Mission
Core mission of Global Group of Companies (Telecom & IT Division) is to provide distinctive telecom services for nationwide as well as international calling at very economical price.
The core aim of Global Real Estate Development is to introduce world class standard of living in the country with affordability.
Contacts Head Office:5 D, Model Town,Lahore, Pakistan.Tel : +92 42 5838499, 5857398-9Fax : +92 42 5838399Email : [email protected]
Regional Office:# 3, 23 Sajid Sharif Plaza,G 11 Markaz, Islamabad, Pakistan.Tel : +92 51 2106103Fax : +92 51 2104822
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GLOBAL GROUP OF COMPANIES PROFILE
Global Group of Companies (GT Group) comprises of dynamic group of companies focused
on the following business areas:
Telecom & IT Services
Specialized Telecom Distribution
Real Estate Development
Foreign Ventures
The GT Group vision is to be a market leader in each business segment by adopting latest
technology and effective management procedures to deliver best products and services to its
valued customers in Pakistan and abroad.
A brief overview of the Group companies is stated below:
TELECOM & IT SERVICES
1. Global Telecom Limited
GT was incorporated on March 01, 1997. Headquartered in Lahore, the
principal activity of the company is to setup and maintain nationwide
Telecommunication operations to the highest standards. Its core business is
currently focused on Card Payphone and Prepaid Calling Card services.
i. GT Payphones
GT has the largest geographical coverage among its competitors and is ranked
among the leading companies in the Payphone Sector with more than 9,000
payphones nationwide. It has a network of 32 sales and customer support offices with
operations in over 220 cities and towns, spread all across Pakistan.
GT has a license to operate, establish and maintain Card Payphones
throughout the country, granted in 1997 by Pakistan Telecommunication Authority
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(PTA). The License has been issued for an initial period of 15 years and is extendable
for a further period of 15 years.
TECHNICAL COLLABORATION
Schlumberger is the supplier of payphones and payphone
smart cards. Global Telecom has a strong technical collaboration with Schlumberger
– France, the world leaders in payphone technology. Schlumberger has been a pioneer
in the design and manufacture of smart cards and payphone systems. Schlumberger
payphones used by GT are equipped with state of the art software and Euro-chip
technology.
GT has also installed Schlumberger’s latest integrated Network Management Systems
to remotely manage and monitor the operations of its payphone network. The NMS
has the capability to log all details related to the call traffic generated by the
payphones, such as, duration of calls, origination/destination numbers, faults alarms
and other call detail reports.
The Company is also working with MTL-MICRO TECH. LABS. GT has gradually
introduced the MTL payphones into its network. To protect the misuse of phone lines
of our valued clients, we have installed MTL (LPU’s) Line Protection Units in all
CO-Exchanges where our payphones are installed.
ii. GT Calling Card
Based on the excellent market performance and sound financial standing, PTCL
awarded the Prepaid Calling Card Services (PCCS) license to GT in 2002.
In Prepaid Calling Card market GT has achieved a considerable market share, since
its launch in December-2002. Global Telecom has capitalized on its existing telecom
infrastructure and strong distribution network to gain a major share from its
competitors. This venture was also supported by an aggressive nationwide marketing
campaign in electronic and print media. GT plans to achieve a Minimum of 15-20%
of the total market during the first year of its operations.
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GT has recently made a major expansion in its PCCS infrastructure to support and
offer better value added services to its ever-growing customer base.
TECHNICAL COLLABORATION
Global Telecom has signed a long-term agreement
with Unified Communications Singapore for the
PCCS project. The installed solution is based on state of the art telecom switches
from Excel Switching (Lucent) USA and Networking equipment from Cisco
Systems, USA. GT is also working closely with Unified Communications on several
other projects in the telecom field.
2. Star Communications (Pvt.) Limited
Star Telecom is also involved in the business of card payphone
services and was incorporated in the year 2000. The purpose of this
company is to compete with the Low End payphone companies and
target their customers. Though it has targeted the low-end market but has maintained
the same quality of high-end technical equipment and has deployed its technology
from Schlumberger – France.
Currently operating in Lahore and Karachi, it has plans to expand its payphone base
to all the major cities and towns of Pakistan especially those areas, which are lacking
in basic payphone facilities by providing them an affordable solution. Star
Communication has an installed base of 500 phones mainly in Lahore and Karachi
3. Global Soft
Global Soft is a Software Solutions provider focused on providing Interactive
e-Commerce Solutions and Web Development to leading companies in Pakistan and
abroad. Global Soft is providing the following services to the local & global IT
companies (Export oriented).
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Remote IT Services
Interactive CDs
WEB Sites Development/Maintenance
3D Animation Services
It has brought together a dynamic team of highly experienced professional to cater for
the needs of global and local markets. Global Soft bridges the gulf between today’s
ever expanding multimedia technology, and the need for viable and efficient solutions
purposely designed for a myriad of business and home user applications. As the world
surges forward, software solutions become indispensable. The need to harness the
vast potential of these tools has become the need of the era.
4. AOS – Accountancy Outsourcing Services
AOS (formerly Known as Ascot Drummond www.Ascotdrummond.co.uk) was
established in 1998 to exploit the niche Business Process Outsourcing (BPO) and
Software Implementation markets. AOS has focused on conceiving, developing and
implementing innovative software solutions for clients.
AOS revolutionized the way the Land Records are maintained in Pakistan (Land
Records Management Information System LRMIS). AOS has brought
transformational change from a 600 year old system into modern digital age. The
delivery of the system was made possible because of AOS commitment and close
working with the client to understand the current and future requirements. The
concept and development of LRMIS software was fully undertaken by the company
in Pakistan.
Future Vision & Projects
The company makes its investment very prudently. It ensures its returns by conducting
extensive market surveys before making expansion or launching new projects, thus making
each project a high revenue earner, which proves beneficial to the customers as well as the
company.
LDI (Long Distance International) / LL (Local Loop) Licenses
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Keeping in view the new Telecom de-regulation policy, GT is working closely with
strong foreign and local business partners to bring new telecom technology and services
in the Pakistan market. Global Telecom is a strong contender for the LDI (Long Distance
& International) and LL (Local Loop) Licenses to be awarded in the near future.
Global Telecom has made technical collaboration and project feasibilities with the
following international vendors for the various future telecom projects:
Alcatel - France
Siemenz - Germany
Excel Switching / Lucent Technologies - USA
Cisco Systems – USA
Unified Communications – Singapore
Huawei Technologies – China
ZTE – China
SPECIALIZED TELECOM DISTRIBUTION
1. Global Mobility
Global Mobility is a specialized telecom distribution
company having a nationwide license to market Mobilink
GSM - Prepaid and Postpaid connections, GT Prepaid Calling Cards, GT PCO Smart
Cards, Nokia Handsets and other value added technology products all over the
country by capitalizing on the strong nationwide distribution network.
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REAL ESTATE DEVELOPMENT
1. Global Infrastructure (Pvt.) Limited
Global Infrastructure (Pvt.) Limited is a newly incorporated
company in the field of real estate development. Keeping in
view the real estate boom in the Pakistani market, the company has
embarked upon a plan to provide prime real estate projects
targeted towards vast potential customers.
As a start up project, the company has acquired 550
acres of land on Badiyan Road and Barqi Road near
Defense Phase V, to be developed into a Spring
Meadows Farms & Homes.
2. Global Consultants
Global Consultants (GC) has rich experience in providing Management Consultancy
to leading foreign and national companies in the Pakistan market. GC draws its
resources from the team of seasoned professionals and experts in their field.
FOREIGN VENTURES
Capitalization on the expertise and experience gained from the Pakistan Telecom
market, GT has a vision of expanding into potential foreign markets. The
company is currently evaluating projects and marking strategic alliances with
partners in China, CIS, UAE and South Africa.
In this collaboration regard GT Group has made a joint venture with a multi
national telecommunication group namely Wise Group of Companies which has
its tremendous network across the Europe and Italy, Milano and has a vast
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experience in the field of telecommunication. It enjoys the technical expertise of
the following players.
Products & Services
Wisecomm is one of the world’s leading telecommunication company covering modern telecommunication services and innovations. We are the pioneers of VOIP technology in major European countries. It has its worldwide presence in all major cities of the major countries. It is not only one of Europe’s largest Pre-paid services company but also a truly global player. We are represented in 3 continents, in all major markets. Delivering a cost effective and best calling services in all major European countries, Wisecomm has earned customer satisfaction. The major offices are in Italy, UK, France, Spain, USA and Pakistan.
Wisecomm offers customized solutions to all your voice service needs, whether it's setting up a call shop, dealing with pre-paid calling cards, want to buy minutes or design your own pre-paid calling cards. Our experienced technical sales team can help you decide what product is best for you.
Telecom industry:
Deregulation Opportunities
The Ministry of Science & Technology (MOST) has framed a comprehensive deregulation policy in consultation with McCarthy Tetrault of Canada & Analyses Consulting of UK
New Telecom policy was unveiled in July 2003 with an objective to attract investment, increase teledensity and sector development
The policy is technology neutral 2 new cellular licenses were auctioned in April 2004 through a transparent process Licenses awarded for local loops (LL / WLL), long distance & international (LDI)
telephony in July / August 2004 26% stake and management control of incumbent PTCL sold - June 2005 Deregulation of the telecom market offers great opportunities to players with existing
operations and significant experience of the local market
Global not only has the requisite experience but also a solid track record which will reduce the exposure of our partners who wish to invest with Global in these exciting new opportunities.
Our Unique Advantage
Extensive nationwide distribution network positioned to launch new products o 52 offices / 220 cities / 58,000 points-of-sale
LDI next generation network o 15 nationwide Points of Presence (POPs) - plans to grow to over 40
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o Interconnects with all major local operators & international carriers like BT, T-Systems and Saudi Telecom
o 2 high capacity carrier grade telco switches Extensive last mile connectivity / metro fiber: over 270 km of optic fiber in Karachi
& Lahore Captive subscriber base of 40,000 operational payphones Control of significant amount of traffic through existing services such as calling cards
& payphone Connectivity to over 90% of PTCL exchanges with live information Proven track record of large scale / infrastructure projects to successfully execute a
plan encompassing build, launch and operations Relationships with market players Strong brand recognition (GT, GT Mobile, Bangla Plus) In-depth market knowledge and understanding of telecom industry / products -
experience of more than 10 years Knowledge of market dynamics due to existing strong brands and marketing
initiatives Technology Focus Ready access to strong, highly skilled in-house resource pool of around 3,000
employees
An optimal operational set-up benefiting from local market and cultural knowledge importing international best practices and efficient cost structures.
New businesses
Future Expansion and Initiatives
Expansion
Global Group plans an aggressive expansion in all its existing businesses. Internationally Global Group is evaluating other opportunities in infant regional markets with similar profiles like Bangladesh, Sri Lanka etc. as well as international markets that have become telecom hubs for these regions like UK, US, Hong Kong, Australia & Singapore.
New Licenses / Businesses
Global's strategy is to position itself in advance to gain a first mover advantage in various communications businesses. Pakistan Telecommunications Authority (PTA) issued licenses for LDI and LL to Global on the 1st August, 2004.
New Licenses - Local Loop (LL)
Global was awarded this license on 1st August, 2004 and was the first new entrant in this segment. It will offer voice services utilizing its HFC network to ensure access to the last mile. Global then plans to expand this business using alternate technologies as well.
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LL (telephony) service providers will offer telephone connections either by laying cable or through wireless technology. Global will provide customers with additional telephony choices, better quality of service, attractive pricing plans and a new set of features such as conference calling, call-waiting, call forwarding, free-phone (0800 service), and the like.
Global will launch telephony services using the following:
Global will be the first to launch telephony to its Cable customers in Lahore and Karachi in addition to Cable TV and Broadband Internet services as a true multi-service offering;
Telephony & Broadband Internet over copper (Multi Service Access Nodes - MSAN);
Wireless home telephony with limited mobility
New Licenses - Long Distance & International (LDI)
Under the deregulation process, the PTA has issued Long Distance and International (LDI) licenses. Global, already a leading player in the telecom market is a natural contender for this license and has become one of the first companies to acquire the said license. Global was awarded the license on 1st August, 2004 and services have started in November 2004. Global has selected state of the art-technology to offer next generation services and will be the first operator to deploy a full Next Generation Network (NGN).
Contracts for equipment supply and network deployment have been finalized with leading international telecom vendors including Siemens, Cisco and Nuera. Global LDI network will cater to the needs of different market segments by offering competitive voice and value added services tailored to their individual requirements. With the Global LDI network in place, the end customer will be able to get better quality of service and care.
Global is investing in scalable & flexible NGN solutions providing cost effective and future proof investments. This means lower fixed and capital expenditure and more efficient structures creating lower operating expenditure, better quality of service, more competitive products, quick-to-market and new revenue rich services.
New Licenses – Wireless Local Loop (WLL)
Global Group has completed all preliminary work for successfully launching the services across Pakistan at very attractive pricing and quality of service after grant of license by PTA. Global plans on deploying a Third Generation capable Network CDMA 2000 1X and will be offering Fixed Telephony, Limited Mobility Telephony and all the latest value added services like; SMS, MMS, GPRS, Push-to-talk, EMS, etc.
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PTA Awards LDI License to Global Telecom
Global Group has added another niche to its telecom profile and has secured the Long Distance International (“LDI”) services license from the regulatory authority PTA. The LDI license allows Global Group to offer innovative and straightforward nationwide & international calling plans the domestic, trade and corporate users either through 4-digit call by call option or through the customer pre-select in addition to termination of international minutes coming into Pakistan.
The award of this license took place yesterday - July 13, 2004 at PTA Head Office in Islamabad after the Global Group had fulfilled all legal requirements including submission of a performance bond worth US$ 9.8 million. As per an official spokesman of Global, “This would bring the true benefits of competition - choice and value - to Pakistani consumers, both corporate and domestic. It will also provide support to strong economic growth in Pakistan. With long-distance service commitment, the Global Group is passing a milestone in its history of operations”.
Global Telecommunications Group (Global Group) is one of the foremost and fastest emerging telecom groups in Pakistan in the private sector. The Group pioneers in providing the latest available technologies and range of services to its clientele duly backed by efficient post sales service support. Global Group is positioning itself to become a major multi-service telecommunications operator within and outside Pakistan.
Global Group boasts a nation-wide presence in Pakistan already by catering to a huge number of subscribers through its broadband interactive cable system, smart card based payphone networks, pre-paid calling card, internet, and infotainment services through a comprehensive portal, in addition to other related businesses. New opportunities through deregulation of Pakistan’s telecommunications sector and IT infrastructure have enabled Global Group to diversify its services all across the Pakistan. No other private sector company has such diversified interests within the telecom sector and an almost all encompassing network of services ensures that after deregulation scenario Global Group becomes a dominant force in the not so distant future. Global has developed a core project development team to tap the opportunities that exist in the telecom sector with national as well as international coverage.
It is worthwhile to mention that at times when foreign direct investment was being channeled elsewhere, Global Group was instrumental in helping the Government and economy of Pakistan by attracting investment into the country. Foreign investors have continued to support Global Group’s projects, which reflects the confidence that these players have in the Pakistani Telecom sector generally, and the management and business vision of the Global group in particular.
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Organizational Structure
Hierarchal Structure in Global
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Chairman/CEO
GM HR
GM Sales
GM Finance
GM Marketing
GM R & D
GM Technology
GM Customer &
Operation
GM Access & Network
GM Core
Network
ManagerWages &Salaries
Manager T & D
Manager Reward &
Compensation
Manager Comp &Ben
Manager Accounts
Manager Audit
Manager IT
Products Information
Global group of Companies is dealing in telecom sector of the country with the following distinctive products
Origination Segment Termination Segment
Origination:
The company origination segment is merely deal with the product namely Calling Cards which are as follows:
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Termination Segment
For international call termination into Pakistan. The company has entered into Unilateral or bilateral Call Traffic Exchange agreements with various International Call Traffic Carriers. This mainly includes our agreement with Rawal Telecom with an average termination of 20 Million minutes per month into Pakistan.
The company has its technical collaboration with the following companies nationwide & internationally:
Name of Company Country of Business
Wise Communication Systems Pakistan & EuropeRawal Telecom SRL ItalyBright Communication GermanySun Telecom GreeceFast Telecom EnglandGlobal Communication System SARL FranceITS Pak Pvt. Ltd. PakistanEpsilon Telecom EuropeColt Telecommunication France
Flow Chart of Termination:
A precise flow chart of termination segment is as under.
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Competitive Strategy:
Global user base is growing with lowest package rates of Global it is becoming hot favorite telecom company of Pakistan. Global focus on its cheap rates more rather than services. Global with cheap rates is becoming hot favorite, Global wireless and cards like Hello card packages are good enough to catch the marketing. Global is overall good Telecom company but they should improve their services in order to become giant in the industry.
The current strategy appears to be working well for Global, so we don't see a major change during 2005. Global’s challenge though will be to get all the new products it announced for early 2006 to market in time. We predict that Global will cement its position as market leader during 2006.
Low cost strategy is most appropriate for company like Global. As we know that mature companies strive to maintain or gain market share. Global is an example of mature company that successfully pursues a low cost strategy. We also know that when company passes from growth phase to the next phase maturity phase they have gained as they were expected in the early days, now they are trying to maintain their market share by giving their products at a low cost strategy.
Some key competitive strategies are:
Global Telecom that attracts its customers by offering free local call from Global to
Global.
The rates are the cheapest in the market.
Global Telecom still targeting student classes, which are like in hostels of colleges and also the peoples, which are settled on the rental houses.
COMPETITORS:
These are the main competitors of Global Pakistan.
TELECARD Worldcall
GSM “V”PTCL WIRELESS
PAKTEL SIM CALLPOINT
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Organizational Life Cycle
Global started it services in Pakistan June 2005. Since than Global Telecom successfully
launched the services covering 15 cities of Pakistan. Global Telecom with low rates to
capture the market with already giants operating the cellular world of Pakistan is the major
task for Global Telecom. Major competitors were Mobilink, Paktel and Warid Telecom and
it was not an easy task to break the market.
Growth:
As the company is newly lunched in the market where it has competitors with already
strengthen market share in the telecom industry so it shows that its organizational life cycle is
in growing stage.
PERFORMANCE APPRAISAL SYSTEM AT Global
KEY ELEMENTS OF PERFORMANCE APPRAISAL SYSTEM IN Global
Till today, the history of performance appraisal has developed over 70 years, and also many
experts and scholars put forward appraisal theories and standards, but no any enterprise will
say that their own appraisal institution is perfect, because both the subjective factor, e.g.:
employee themselves, organization, and society, etc., and external situation can influence
performance appraisal.
Performance appraisal is the process by which organizations evaluate individual job
performance. When it is done correctly, employees, heir supervisors, the HR department, and
ultimately the organization benefit by ensuring that individual efforts contribute to the
strategic focus of the organization. However, performance appraisals are influenced by other
activities in the organization and in turn affect the organization’s success. Often they can be a
part of the way a company executes its strategy.
In Global, HR department usually designs and administers the company’s performance
appraisal system. Centralization ensures uniformity. Although the HR department at Global
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develops different approaches for managers, professionals, workers, and other groups,
uniformity within each group is needed to ensure comparability of results. However, multiple
raters –including peers and even subordinates, sometimes called “360-degrees” evaluations
because the person is being evaluated from all directions-offer additional perspective at
Global.
The GM HR told that the appraisal system they have created is an accurate picture of an
individual’s typical performance. Appraisal at Global is not done just to uncover poor
performances; acceptable and good results are identified so that they can be reinforced. To
achieve this goal appraisal system at Global is job-related and practical, include standards
and use dependable measures.
The purpose of performance appraisal is to provide a formal review program to evaluate
work performance and to promote communication and discussion of job performance. The
intent of these discussions should be to review current job performance and responsibilities,
set goals and discuss future opportunities with reference to past performance at Global.
The Objectives of the Performance Review Program are:
To measure work performance.
To motivate and assist employees in improving their performance and achieving their
personal/professional career goals.
To identify employees training and development.
To provide a solid path for career planning for each individual.
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PERFORMANCE APPRAISALManagement / Managerial Staff
Name Department
Title Emp. Code
Location Supervisor
Present Salary Rs: Last Prom / Inc Date
1) JOB RELATED 100 EXCELLENTABOVE
AVERAGEAVERAGE
BELOW AVERAGE
POORPOINTS SCORED
A - Job Knowledge 50 Points 50 40 30 20 0
B - Achievements of Targets 50 Points
B.1 Achievement of quantitative targets
25 Points 25 20 15 10 0
B.2 Achievement of targets within
time schedule25 Points 25 20 15 10 0
Subtotal Secton-1
2) EMPLOYEE RELATED 100 EXCELLENTABOVE
AVERAGEAVERAGE
BELOW AVERAGE
POORPOINTS SCORED
A - Judgment & Decision Making 15 Points 15 12 10 7 0
B - Problem Solving Skills 15 Points 15 12 10 7 0
C - Group / Team Player 15 Points 15 12 10 7 0
D - Responsibility/Dependability 15 Points 15 12 10 7 0
E – Integrity 10 Points 10 8 6 4 0
F – Attitude 10 Points 10 8 6 4 0
G – Communication (Written & Oral) 10 Points 10 8 6 4 0
H - Attendance & Punctuality 10 Points 10 8 6 4 0
Subtotal Secton-2
Total Points
Total Points Achieved
Percentage Achieved
3) Points Achieved 200
Overall Performance Rating
(Tick one)
Performance Rating EXCELLENTABOVE
AVERAGEAVERAGE
BELOW AVERAGE
POOR
Percentage Achieved 90-100% 71-89% 50-70% 31-49% 0-30%
INCREMENT
PERFORMANCE BONUS
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PERFORMANCE APPRAISAL Management / Managerial Staff
Name Emp. Code
Promotion:- Recommended: Not Recommend
If Recommended for Promotion:
Proposed Position ___________________________
Recommended Salary ___________________________
Remarks (If any) _________________________________________________________
Training Needs / Requirements
1. Professional ___________________________________2. Management __________________________________3. Attitude ______________________________________4. Others _______________________________________
Suggested Training Program(s) Suggested Dates / Remarks1)
2)
3)
Discussions held with Appraisee?
a) Appraiser’s Remarks: ___________________________________________________
______________________________________________________________________
______________________________________________________________________
b) Appraisee’s Remarks ____________________________________________
________________________________________________________________
Signature
APPRAISEE APPRAISER Group Head
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Compensation System
Competitive compensation and benefits are essential to attracting and retaining the most
talented people. Our philosophy is to be locally competitive on a national basis with family
oriented benefits, performance-based rewards, and incentives that help foster an increased
sense of ownership among our employees.
Global is known to be one of the best paymasters in the industry based upon the candidate's
experience profile. Global believes in pay for performance and is an ideal place for people
with can do attitude. Global is continually working towards making its processes
performance and cost effective and is working in line with Best Practices.
REWARD AND COMPENSATION POLICIES:
The core of any organization is its staff. How effectively an organization maintains a quality
team of employees is linked to its ability to manage its staff and recognize the contributions of
each player. Effective performance management systems enable an organization to objectively
and systematically rate employee performance, while providing the tools necessary to take that
performance level and equate it to compensation actions.
REWARDS AND BONUSES:
Rewards can be in the form of cash, merchandise, travel, recognition and/or status also called
Incentives. Most companies are finding that incentives are a great way to boost productivity
and quality while keeping their work force productive and happy in their jobs. When looking
at what kind of incentives should be used to motivate a work force, service managers need to
take a closer look at their employees and what their needs, wants and goals are. Then
compare them to the goals and needs of the company. This will help the company to come up
with an incentive plan that will motivate the employees as well as increase the company's
productivity and revenue.
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Like many other companies, Global also uses a proper incentive program for its employees in
order to make them strive for success. Its incentives programs include cash, bonuses,
promotion and recognition by holding prize distributions, keeping in view the needs and
wants of the employees as Global lays great emphasis on the needs of the employees. The
different types of rewards and compensation plans used at Global are as follows:
PERFORMANCE REWARDS:
This is based on the individual’s performance, efficiency and effectiveness in achieving the
targets of the company. It is given in the form of cash to those employees who made the
achievement of target possible through there contributions and outstanding efforts i.e. the
more the amount of output that is produced and sold the greater the pay is. The main
objective is to maxim. A meeting is held for this purpose, after each six months and the
selected employees are given their rewards.
BONUSES:
Bonuses are announced annually and are given to employees on the basis of their consistent
performance, efficiency and in achieving the targets. It is given after carefully evaluating the
performances of each employee through the different performance measures adopted by the
company. It has been very successful in motivating employees to achieve better output and
hence better profit. At Global it is really significant since the amount of profit determines the
amount of annual bonus for all the employees.
COMPENSATION:
Workers’ Compensation, or Workers’ Comp, refers to the benefits paid to employees who
are injured or disabled on the job. Compensation packages can be linked to business
structure, employee recruitment, retention, motivation, performance, feedback and
satisfaction. Compensation is typically among the first things potential employees consider
when looking for employment. It is important, therefore, to give a lot of consideration to
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business’s compensation structure. After all, for employees, compensation is the equivalent
not to how they are paid but, ultimately, to how they are valued.
The rights of the employees are very much ensured by a complete package of compensation,
chalked out by Global. Workers' Compensation laws are designed to ensure that employers
compensate their workers fairly, eliminating the need for litigation. These laws also provide
benefits for dependents of those workers who are killed because of work-related accidents or
illnesses. In this case the employee is entitled to the fund called Hospitalization fund.
Employers buy Workers’ Compensation insurance, so that the insurance companies are
responsible for delivering the monetary benefits to workers. Benefits included under the
Employees' Compensation program are mentioned below:
Medical Services Paid Sick Leave
Fuel of Vehicle Holidays
Telephone Facility Vacations
Internet Facility At Home Family Oriented Benefits
Free Residence Etc…
Global has an elaborate plan for the benefits of the retiring employees. They are given a reasonable amount of money on retirement and sometimes given other assignments to work for. The maximum age set for retiring an employee is 60 years.
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Criteria/Technique of Job Analysis:
In Global it is the responsibility of Human Resource Department to define criteria for
specific job analysis. They conduct job analysis manually as well as automatically through
following steps:
Identify the Job(s) to be analyzed.
Determine the procedures to be used (methods) in collecting job data.
Implement the job analysis methods.
Review the data collected through Job Analysis.
Summarize and document the data collected.
While asking about their technique of job analysis in Global we got that they use following
techniques:
Interviews
Questionnaires
Observation
Job Evaluation Technique / Method:
There are three basic methods of job evaluation currently in use and in those techniques
Global is using one at a time:
1) ORDERING METHOD:
Ranking job worth from highest to lowest. This method requires a committee composed of
management and employee representatives ---to arrange jobs in a simple rank order, from
highest to lowest. The committee members compare two jobs and judge, which one is more
important, or more difficult to perform. They compare another job with the first two and so
on until all the jobs have been evaluated and ranked.
Global has not adopted this method of evaluating jobs as the employees are in huge number
and the jobs are varied and are in hundreds or thousands of numbers. So it is virtually
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impossible to do the rankings correctly. Other drawbacks to be considered are the
subjectivity of the method - there are no definite or consistent standards by which to justify
the rankings and the fact that because jobs are only ranked in terms of order, they have no
such knowledge of the distance between the ranks.
2) CLASSIFICATION METHOD:
Identifying some common creates these classifications denominator-skills, knowledge,
responsibilities, with the desired goal being the creation of a number of distinct classes or
grades of jobs. The classification method shares most of the disadvantages of the ordering
approach, plus the difficulty of writing classification description, judging which jobs go
where and dealing with jobs that appear to fall into more than one classification. This method
has also not been adopted by Global because of the above mentioned drawbacks and due to
the fact that there are various jobs that must fall into more than one category or the
classification, so that will be way too complex for the personnel management to evaluate job
descriptions under such conditions.
3) POINT METHOD:
This means breaking down jobs based on identifiable criteria (such as skill, effort and
responsibility) and the degree to which these criteria exist on the job. Depending on the
importance of each criterion to performing the job, appropriate weights are given, points are
summed, and jobs with similar point totals are placed in similar pay grades. Global is using
this method for evaluating different jobs, as this method offers the greatest stability as
compared to the rest of them and because of the fact that jobs may change overtime, but the
rating scales established under the point method stay intact. The HR executive said the
methodology underlying the approach contributes to a minimum of rating error but on the
other hand this point method is time consuming to develop and is complex, making it costly.
He told us that, the key criteria has to be clearly and carefully identified, degrees of factors
have to be agreed upon in terms that mean the same to all raters, he further explained that the
weight of each criterion has to be established, and point values must be assigned to degrees.
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While it is expensive and time consuming to both implement and maintain, the point method
is still the most effective and widely used method for addressing the comparable worth issue.
In Global, once the job evaluation is completed, the data generated become the nucleus for
the development of the organization’s pay structure. So, the firm established pay rates or
ranges that are compatible with the points arrived at through job evaluation. The Point job
evaluation method provided Global, the necessary input for developing the organization 's
overall pay structure. However, this method, too, has its strengths and weaknesses.
There is a logical hierarchy of wages given to employees at different levels. The more
important jobs are paid more; and as individuals assume jobs of greater importance, they rise
within the wage hierarchy. The salaries and wages offered by Global to its new employees is
comparatively less but as the employees climb up the organization ladder, their salaries
increase with an even pace. The employee turnover is relatively less, indicative of the fact
that employees at Global are satisfied.
By job evaluation we mean that using the information in the job analysis to systematically
determine the value of each job in relation to all jobs within the organization. In short, job
evaluation seeks to rank all the jobs in the organization and place them in a hierarchy that
will reflect the relative worth of each. It’s important to note that this is a ranking of jobs, not
people. Job evaluation assumes normal performance of the job by a typical worker. So in
fact, the process includes individual abilities or the performance of the jobholder.
The ranking that results from job evaluation is the means to an end, not an end in itself. It
should be used to determine the organization’s pay structure. Note that although we say; in
practice, we'll find that this is not always the case. External labor market conditions,
collective bargaining and individual skill differences may require a compromise between the
job evaluation ranking and the actual pay structure. Yet even when such compromises are
necessary, job evaluation can provide an objective standard from which modifications can be
made.
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In Global Technologies job evaluation techniques defined by the Human Resource
Department is most recent one that is Point method. This is the most commonly used Job
Evaluation technique in Global. The key elements of each job (which are known as
Compensable factors) are identified and then broken down into components to find the worth
of the job. Each factor is then assessed separately, and divided into levels that are assigned
points.
Training:
‘’Typical objective is to improve employee performance in a specific job is called training.’’Teaching the organizational members how to perform current jobs and helping them to acquire the knowledge and skills they need to be effective performers. Learning is also provided in order to improve performance on the present job.
Training refers to a planned effort by a company to facilitate employees' learning of job-related competencies. These competencies include knowledge, skills, or behaviors that are critical for successful job performance. The goal of training is for employees to master the knowledge, skill, and behaviors emphasized in training programs and to apply them to their day-to-day activities. Recently it has been acknowledged that to gain a competitive advantage, training has to involve more than just basic skill development. i That is, to use training to gain a competitive advantage, training should be viewed broadly as a way to create intellectual capital. Intellectual capital includes basic skills (skills needed to perform one's job), advanced skills (such as how to use technology to share information with other employees), an understanding of the customer or manufacturing system, and self-motivate (, creativity. Intellectual capital is discussed further in Chapter 2. Keep in mind that traditionally most of the emphasis on training has been at the basic and advanced skill levels. But some estimate that soon up to 85 percent of jobs in the United States and Europe will require extensive use of knowledge. This requires employees to share knowledge and creatively use it to modify a product or serve the customer, as well as to understand the service or product development system.
Page 43
Many companies have adopted this broader perspective, which is known as high-leverage training. High-leverage training is linked to strategic business goals and objectives, uses an instructional design process to ensure that training is effective, and compares or bench-marks the company 's training programs against training programs in other companies.
High-leverage training practices also help to create working conditions that encourage continuous learning. Continuous learning requires employees to understand the entire work system including the relationships among their jobs, their work units, and the company.' Employees are expected to acquire new skills and knowledge. apply them on the job, and share this information with other employees. Managers take an active role in identifying training needs and help to ensure that employees use raining in their work. 'Jo familiarity~ the sharing of knowledge, managers Orly use informational maps that show where knowledge lies within the company (for example, directories that list what individuals do as well as the specialized knowledge’s they possess) and use technology such as groupware or the Internet that allows employees in various business units to work simultaneously on problems and share information.' Chapter 8 discusses how new technology such as the Internet is being used for training.The emphasis on High-leverage training has been accompanied by a movement to link training to performance improvement.' Companies have lost mone y on training because it is poorly designed, because it is not Linked to a performance problem or business strategy. Or because its outcomes are not properly evaluated.` , That is, companies have been investing money into training simply because of beliefs that it is a good thing to do. The perspective that the training function exists to deliver programs to employees without a coupling business reason for doing so is being abandoned. Today, training is being evaluated not on the basis of the number of programs offered and training activity in the company but on how training addresses business needs related to learning. Behavior change. And performance improvement. In fact, training is becoming more performance-focused. That is. Training is used to improve employee performance, which leads to improved business results. Training is seen as one of several possible solutions to improve performance. Other solutions can include such actions as changing the job or increasing employee motivation through pay and incentives. Today there is a greater emphasis on-
Providing educational opportunities for ail employees. These educational opportunities may include training programs. but they also include support for taking courses offered outside the company, self-study, and learning through job rotation.
An ongoing process of performance improvement that is directly measurable rather that organizing one-time training events.
The need to demonstrate to executives, managers, and trainees the benefits of training.
Learning as a lifelong event in which senior management, trainer managers, and employ. Cues have ownership.
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Training being used to help attain strategic business objectives, which help companies, gains a competitive advantage.
Medtronic is a good example of a company that uses high-leverage training. Medtronic is the world leader in medical technology, providing lifelong solutions for people with chronic heart and neurological diseases. Medtronic has 30,000 employees in more than 12C countries. Medtronic has set a goal of 15 percent annual growth, a goal of doubling the size of the company in five years To reach this goal, Medtronic believes that people development is important. Medtronic engages employees in learning and development, which links them to the company mission to restore many people to full and productive lives and tc make sure that products arc available to patients who need them."Training and development occurs only after business strategies for achieving growth arc identified by the company. For example, strong leadership is needed for a growing com -pany. Strategies that the company uses to develop leadership skills include cross-functional, global job rotations as well as mentoring. To keep up with Medtronic's growth, training and development initiatives must be flexible. The training and development staff is continually scanning the company and the broader medical device industry to understand the issues and prepare training solutions to meet them. Because Medtronic is a global company, certain skills arc needed by all managers wherever they arc in the world. But the various offices have the ability to adapt programs to their locations. In the Medtronic Asia/Pacific location, for example, a developing managers' program placed more emphasis on cultural awareness because the managers were from many different locations and backgrounds, Training also supports new product launches to ensure that customers get a consistent message about the product. For example, Medtronic introduced a new heart therapy with a training even' broadcast via satellite to salespeople located throughout the United States.Measuring the return on investment in research and development, marketing, sales, ant, human resources is key for demonstrating the value to the business. Each of Medtronic'; businesses uses a scorecard to measure success and return on investment. Medtronic is cur. Recently developing metrics to measure how training contributes to the company's success.This discussion is not meant to underestimate the importance of "traditional training" (focus on acquisition of knowledge, skills, and abilities), but it should alert you that for man. Companies training are evolving from a focus on skills to an emphasis on learning and creating and sharing knowledge.
Employee Training
Present oriented training focusing on individual’s current jobs.Training is a learning experience in that it seeks relatively permanent changes in individuals that will improve the ability to perform on the job. We typically say that training can involve the changing of skills, knowledge and attitude or behavior. Fr our purpose we will differentiate between employee training and employee.
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Benefit of Training:
Many of us assume that we already have good training for ourselves and our employees After all, we answer our employees' questions as they have them. We send our employees to a course once in a while. Sure, our approach to training isn't intentional, that is, planned and focused. But our employees seem to be doing their jobs without have any real problems.
Unfortunately, we don't know what we don't know. It may be that our employees could be performing much better than we realize if they had better skills. It might be that we supervisors could get back a lot of time that otherwise is spent answering our employees' questions. We might retain our employees much longer, as well. Addressing this possibility isn't a "what if" question, it's a primary responsibility of a supervisor.Training helps ensure that supervisors are getting the most out of themselves and their employees. Training includes taking the time to analyze what results the organization needs from its employees, if employees are accomplishing those results, and what training and development approaches are needed by employees to better accomplish those results.
Effective training and development includes using sound principles of performance management and good, basic training techniques.There are numerous sources and reasons for supervisors to conduct training among employees. These reasons include:
Increased job satisfaction and morale among employees Increased employee motivation Increased efficiencies in processes, resulting in financial gain Increased capacity to adopt new technologies and methods Increased innovation in strategies and products Reduced employee turnover Enhanced company image, e.g., conducting ethics training (not a good reason for
ethics training!)
On-the-Job Training
The mere mention of on-the-job training (OJT) sometimes scares new sales re the thought of "learning by doing" is psychologically discomforting to many. Often, is due to their incorrect perceptions of what is involved in OJT. On-the-job training is a "sink-or-swim"
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approach in which the trainee is handed an order book and maybe a manual, and told to "go out and sell." OJT should be a carefully planned process in whichthe new recruit learns by doing and, at the same time, is productively employed. Further- l' more, a good off program contains established procedures for evaluating and reviewing a sales trainee's progress. Critiques should be held after each OJT sales call and sumtnarized daily. The critiques cover effectiveness, selling skills, communication of information in a persuasive manner, and other criteria.Research over the last three years suggests that informal on-the-job training is a very effective way of learning for salespeople. Indeed it is suggested that three-fourths of all learning at work takes place informally. The Education Development Center identifies five keys for effective on-the-job informal training that include:
Role Playing
A popular technique used in most companies has the trainee act out the part of sales in a simulated buying session. The buyer may be either a sales instructor or another train Role playing is widely used to develop selling skills, but it can also be used to deuterium whether the trainee can apply knowledge taught via other methods of instruction trainee, the trainer, and other trainees critique the trainee's performance immediately lowing the role playing session.Role-playing where a sales trainee performs in front of others and where that mince is subsequently critiqued can be harsh. Some of these problems disappear if the toque is conducted only in the presence of the sales trainee and then only by the to instructor. When role-playing is handled well, most trainees can still identify their strengths and weaknesses.
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Classification of Revenue
Page 48
Revenue Proportion
In our study we find out that 50% of the Revenues are expected from Origination segment
and 50% from Termination segment.
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SWOT ANALYSIS
These days in business world SWOT analysis is considered as a digital tool for
auditing an organization and its environment. It is also considered as the first stage of
planning and helps entrepreneurs to focus on key issues. The word SWOT stands for
Strengths, weaknesses, opportunities, and threats. Strengths and weaknesses are
internal factors. Whereas Opportunities and threats are external factors. The SWOT
analysis of Global Group of Companies is as follows:
SWOT ANALYSIS:
STRENGTHS
Unique Edge
Competitive Rats
Low price as compare to other
Competitors
Friendly environment
24/7 call centers
15 Points of Presence across the
Country
OPPORTUNITIES
Sound financial position
Market growth rate increased
Strong Marketing Campaign
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WEAKNESSES
Distance with top management
Lack of skilled workers
High turnover
No strong HR Policies
Loose Internal Controls
Seniority problem
Low involvement of middle
management in decision making
THREATS
Threat of new entrants
Competitors Marketing Strategy
Playing on timely basis
STRENGTHS:
Company has a network of more than ten thousand land line PCO’s nationwide and fully LDI base calling card system. It has also nationwide distribution set up and a professional team consists of more than 500 staff members. We have a sound sale team of 140 personnel’s which is major part of our team. The group has sound financial back ground to look after its technical problems and enhance the capability of the systems time to time as per the requirements of the demanding market of increasing telecommunication requirements of the country. In this connection group has strong relations with nationally as well as international players of the market.
WEAKNESSES:
Company is not using its resources at full capacity although we have nationwide a very strong distribution network but currently we have no products (other than GT’s and some other products) to distribute which can be raised from the market , while we were the largest distributor of PTCL Calling Cards and Mobilink Prepaid Cards as well. Secondly our tariff is very high for calling card and payphone as well. Lake of advertising campaign is another problem for decrease in sales day by day. Our level of expenses is comparative high.
OPPORTUNITIES:
As company has a nationwide distribution set up it required to utilize it up to maximum extent for distribution of other telecom companies’ products that have not sufficient resources to distribute its products. Market is still open for WPS and GSM payphones and still has potential to engage new players in it. White label calling card operators are also another source to increase the revenue in LDI sector.
THREATS:
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Other competitors transfer their land line PCO’s to wireless payphones which have less cost and high margin of profits. They also offer cheaper rates to clients and capture the market rapidly. If the company do not launch WPS and GSM payphone service in near future it will become very difficult to meet the expenses as well as the future requirements of the competing market of telecommunication.
Financial Statements
Balance Sheet Profit & Loss Account Cash Flow Statement Ratio Analysis
Page 52
GLOBAL GROUP OF COMPANIESBalance Sheet
As on June 30, 2008
(Un-Audited)
2008 2007
Note Amount (Rs)
Amount (Rs)
ASSETS
FIXED CAPITAL EXPENDITURE
Operating fixed assets
- Tangible 5.1 128,671,684
137,099,065
- Intangible 5.2 29,989,411
27,366,848
Assets subject to finance lease 6 29,718,790
38,526,636
Capital work-in-progress 7 6,231,467
6,003,515
194,611,352
208,996,064
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Long term security deposits 8 12,187,875
22,463,357
CURRENT ASSETS
Short term loans to associated undertakings - unsecured9
18,547,022
53,228,604
Trade debts 198,608,169
139,276,687
Advances, deposits, prepayments and other
receivables 10
38,233,452
65,177,140
Cash and bank balances11
40,357,883
8,575,519
95,746,526
266,257,950
502,545,753
497,717,371
2008 2007 Not
e Amount (Rs) Amount (Rs)
EQUITY & LIABILITIES
SHARE CAPITAL
Authorized capital
20,000,000(June 2004: 20,000,000) ordinary shares of Rs 10 each
250,000,000 250,000,000
17,077,043(June 2004: 17,077,043) ordinary shares of Rs 10 each
180,770,450 180,770,450
Accumulated Profit /Loss
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17,144,702 12,632,296 187,915,131
183,402,726
LONG-TERM LIABILITIES
Long term loans - 15,271,139
Long term loans - secured 1 9,375,000
21,875,000
Liabilities against assets subject to finance lease 2 - -
CURRENT LIABILITIES
Current portion of long term loan - secured 12,500,000
12,500,000
Liabilities against assets subject to finance lease 2 - 17,781,423
Short term loans - Running Finance 3.1 35,000,000
-
Creditors, accrued and other liabilities 4 254,439,093
239,438,350
Provision for Taxation 3,316,529
7,448,733
305,255,622
277,168,506
502,545,754
497,717,371
GLOBAL GROUP OF COMPANIESProfit & Loss Account
As on June 30, 2008 (Un-Audited))
2008 2007
Amount Amount
Note (Rupees) (Rupees)
Sales12
998,139,095
1,053,074,419
Cost of sales13
932,826,701
962,254,031
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Gross Profit/(Loss)14
65,312,394
90,820,388
Administration and General Expenses15
22,814,763
14,046,616
Selling & Distribution Expenses16
23,827,468
47,668,781
Other Income (43,222)
4,839,566
Profit/(Loss) from operations 17
18,626,941
33,944,557
Finance cost 9,352,969
14,261,408
Profit/(Loss) before taxation 9,273,972
19,683,149
Taxation 4,761,575
7,889,005
Profit/(Loss) after taxation 4,512,397
11,794,144
Accumulated Loss - Brought Forward 12,632,305
838,152
Accumulated Profit - Carried Forward 22,144,702
15,632,296
GLOBAL GROUP OF COMPANIES
CASH FLOW STATEMENT
FOR THE YEAR ENDED JUNE 30, 2008(Unaudited)
2008 2007
NOTE ( R U P E E S )
CASH FLOW FROM OPERATING ACTIVITIES
Profit for the year 9,273,972 19,683,149
Adjustments for items not involving movement of funds:
Depreciation 35,211,204 39,841,016
Amortization of intangible 2,209,021 1,905,094
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Loss on disposal of operating fixed assets - 13,616 Amortization of deferred income (271,086) (150,544)Reversal of provision for the international termination - (4,458,093)
Exchange loss on translation of assets / liabilities - 4,146,602 Provision for gratuity 1,303,300 1,997,550
Provision for doubtful debts 5,500,000 13,000,000
Financial Charges 15,611,269 13,357,203
59,563,708 69,652,444
Operating (loss) before working capital changes 59,263,074 79,762,593 CHANGES IN WORKING CAPITALIncrease / (decrease) in current liabilities
Trade and other payables 33,513,860 (25,037,507)
(Increase) / decrease in current assets
Trade debts (59,263,446) (23,101,501)Loans and advances 45,787,297 (7,509,668)
Trade deposits & short term prepayments 99,163 (7,051,207)
Other receivables (2,179,507) (5,929,268)Tax refunds due form Government - (2,818,265)
17,957,367 (71,447,416)
Income tax paid (9,201,852) (617,270)
Gratuity paid (405,000) (569,300)
3,845,515 (65,373,986)
Net cash inflow / (outflow) from operating activities 63,108,589 14,388,607
CASH FLOW FROM INVESTING ACTIVITIES
Fixed capital expenditures (25,453,251) (27,056,213)
Intangible assets (4,950,165) - Proceeds from disposal of operating fixed assets 473,300 30,800
Long term security deposits-net 22,306,118 7,226,496
Long term loan - (1,196,164)
Capital work in progress (4,147) -
Short term loan-net - 40,064,308
Net cash (outflow) from investing activities (7,628,145) 19,069,227
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CASH FLOW FROM FINANCING ACTIVITIES
Long term financing obtained (20,271,139) 18,271,132
Repayment of long term finances (17,500,000) (15,500,000)
Short term borrowings 40,000,000
(5,528,350)
Repayment of liabilities against assets subject to fiancé lease (22,781,423) (23,616,803)
Financial charges paid (9,598,828) (15,531,574)
Net cash inflow from financing activities (30,151,390) (41,905,595)
Net increase / (decrease) in cash & cash equivalents 31,279,554 (7,050,761)
Cash & cash equivalents at the beginning of the year. 8,575,344 15,626,105
Cash & cash equivalents at the end of the year. 11 40,357,883 8,575,519
Ratio Analysis
Un-Audited
2008 2007
Cost of Sales to Sales 93% 91%
Gross Profit Ratio 7% 9%
Administrative Expenses to Sales 2% 1%
Selling Expenses to Sales 2% 5%
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Operating Profit / (Loss) to Sales 2% 3%
Net Profit / (Loss) to Sales 1% 1%
Recommendations:
It is highly recommended that company should keep more focus on the telecommunication products and services as this industry has more potential as compare to other business of the group.
There must be a proper management team to handle with the management issues. The company should hire the competent personnel who have adequate knowledge skills and potential.
The Group marketing department should be a strong one so that can make a better advertisement plan for the company. Today is the age of marketing and advertisement so, Global Group must consider the need of time and hire people having good marketing team.
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It is also recommended that the middle management of the company should also be involved in the decision making of the company. Because the middle management of the company is consisted on the people who are with the group since many years and they got good knowledge that how Group can overcome the difficulties and pass through the tough time.
There must be proper attention on the employees compensations and benefits which creates the feeling in the employees minds that organization is loyal with them so, the also must pay full attention to the organizational duties.
Employees must be promoted on the basis of their target achievements and extra ordinary work performed for the organization.
Top management of the company is not paying full attention to the business of the company. Employee is after employee and can’t think for the benefit of the business as an entrepreneur can do this job. It has been observed in this case that top management is having careless attitude in this regard.
Employees training programme must be designed to train the employees regarding their job so, the job can be performed in a better manner.
SOPs should be defined with proper care and consultation with all the concerned departments heads to let every employee know about his job responsibilities in order to achieve the desired results and not put unnecessary burden on the employees.
Internal audit department must ensure the complete adherence of the policies and procedures made by the top management.
Conclusion:
It was really a wonderful experience that I have gone through all the process of an organization and came to know how the official work is done in a tough and dynamic office environment. I would like to thank all my resource persons once again who have provided me the opportunity to work on this Project and given me their moral support at all the times during preparations of my Project.
I would also like to extend my special thanks to the personnel of Global Group of Companies who have provided me extensive support during my preparations especially:-
Head of the department Accounts
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Head of the department Finance Manager Financial Operations Manager Human Resource Department Manager Administration Department Manager Internal Audit Department
Bibliography:
www.gt.com.pk www.wikipedia.com www.mindtools.com
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