Zong My Times New Roman With Table of Contents

TABLE OF CONTENTS1. HISTORY OF COMMUNICATION:..................................................................................6

1.1. Smoke Signal....................................................................................................................7

1.2. Lantern Means of Communication...................................................................................7

1.3. Communication by Drums................................................................................................8

1.4. Communication by Birds..................................................................................................9

2. HISTORY OF TELECOMMUNICATION......................................................................10

2.1. What is Telecommunication?..........................................................................................10

2.1.1. Telegraph and Telephone........................................................................................11

2.1.2. Radio and Television...............................................................................................12

3. HISTORY OF CELLULAR COMPANIES IN PAKISTAN...........................................14

3.1. Paktel...............................................................................................................................14

3.2. Instaphone.......................................................................................................................14

3.2.1. Market Share............................................................................................................15

3.2.2. Cancellation of License...........................................................................................15

3.3. Mobilink..........................................................................................................................15

3.3.1. Mobilink DSL..........................................................................................................16

3.3.2. Company Profile......................................................................................................16

3.4. Telenor............................................................................................................................17

3.4.1. Company Profile......................................................................................................17

3.5. Warid...............................................................................................................................18

3.5.1. Company Profile......................................................................................................18

3.6. Ufone...............................................................................................................................19

3.6.1. Company Profile......................................................................................................19

4. BACKGROUND OF THE ZONG......................................................................................21

4.1. China Mobile Communications Corporation (CMCC)...................................................21

4.2. China Mobile Pakistan (CM Pak)...................................................................................21

4.3. ZONG Pakistan...............................................................................................................22

BZU sub Capmus SAHIWAL 1 MBS-09-36

4.3.1. Vision Statement......................................................................................................23

4.3.2. Mission Statement...................................................................................................23

4.3.3. Core Value...............................................................................................................23

4.3.4. Goals and Objectives...............................................................................................24

4.3.5. Company Information..............................................................................................25

4.3.6. Management Line of ZONG....................................................................................26

4.3.7. Organizational Chart................................................................................................27

4.3.8. Customer Center Chart............................................................................................28

5. PRODUCTS AND SERVICES...........................................................................................29

5.1. ZONG Postpaid...............................................................................................................29

5.2. ZONG Prepaid................................................................................................................30

5.2.1. ZONG Default Package...........................................................................................30

5.2.2. ZONG 45 Package...................................................................................................30

5.2.3. ZONG 65 Package...................................................................................................31

5.2.4. ZONG 12 Aanay Package.......................................................................................31

5.2.5. ZONG Free Package................................................................................................32

5.2.6. ZONG Aik Second Package....................................................................................32

5.3. Other Offers and Services by Zong.................................................................................33

5.3.1. Break Time Offer (BTO).........................................................................................33

5.3.2. Late Night Offer (LNO)...........................................................................................33

5.3.3. Location Based Charging (LBC).............................................................................33

5.3.4. Friends and Family (FnF)........................................................................................33

5.3.5. Happy Hour.............................................................................................................34

5.3.6. Super Free Number..................................................................................................34

5.3.7. Conference Call.......................................................................................................34

5.3.8. SMS packages..........................................................................................................35

5.3.9. GPRS Packages.......................................................................................................35

5.3.10. ZONG E-Care.............................................................................................................36

5.3.11. Missed Call Alert.....................................................................................................36

5.3.12. ZONG Family Pack.................................................................................................36


5.3.13. Student Entrepreneur Program (SEP)......................................................................37

5.4. ZONG Mobile.................................................................................................................38

5.4.1. Android Handset......................................................................................................38

5.4.2. ZONG Handset N281..............................................................................................39

5.4.3. ZONG Handset R231..............................................................................................40

5.4.4. ZONG Handset R221..............................................................................................41

5.4.5. ZONG Handset G2201............................................................................................42

5.4.6. ZONG Handset Z100...............................................................................................43

5.5. ZONG usb.......................................................................................................................44

5.5.1. SMS charges............................................................................................................44

5.5.2. Available at CSCs of the following cities................................................................44

6. DEPARTMENTS.................................................................................................................45

6.1. Human Resource Department (HRD).............................................................................45

6.1.1. Job Analysis.............................................................................................................46

6.1.2. Job Description........................................................................................................46

6.1.3. Recruitment and Selection.......................................................................................46

6.1.4. Training Methods and Employee Development......................................................47

6.2. Administration Department.............................................................................................48


6.2.2. Functions of Administration Department................................................................48

6.3. Finance Department........................................................................................................49


6.3.2. Functions of Finance Department............................................................................49

6.4. IT (Information Technology) Department......................................................................49


6.4.2. Functions..................................................................................................................49

6.5. Marketing Department....................................................................................................50


6.6. Sales and Distribution Department.................................................................................50



6.6.2. Distribution..............................................................................................................50

6.7. Customer Services Department.......................................................................................50

6.7.1. Mission Statement......................................................................................................50

6.7.2. Customer Service Centers..........................................................................................50

6.8. Regulatory Corporate Affairs Department......................................................................51


7. ANALYSIS............................................................................................................................52

7.1. BCG Matrix.....................................................................................................................52

7.2. SWOT Analysis..............................................................................................................54

7.3. PEST Analysis................................................................................................................60

7.4. Porter’s Five Forces Model.............................................................................................63

7.5. Competitive Profile Matrix (CPM).................................................................................65

7.6. Number of Subscribers and Market Shares.....................................................................66

7.7. Market Mix (4 Ps)...........................................................................................................67

8. WHAT I DID IN MY INTERNSHIP.................................................................................69

8.1. Check Territory Sales Officer’s (TSO) activity in Market.............................................69

8.2. Check Stock availability in Market.................................................................................69

8.3. Brand Promotion.............................................................................................................69

8.4. Shopkeeper Claims.........................................................................................................69

8.5. Say Welcome to The Customers in The Office..............................................................69

8.6. Postpaid Billing Process and Term & Conditions about Postpaid Connection..............70

8.7. ZONG Number Booking Procedure and Number Activation Procedure.......................70

8.8. SIM Replacement Process..............................................................................................71

8.9. Prepaid Sale Process.......................................................................................................71

8.10. Handset Sale Process...................................................................................................72

8.11. Cash Management.......................................................................................................72

9. FINANCIAL ANALYSIS....................................................................................................74

9.1. Operational Results.........................................................................................................74

9.2. Balance Sheet..................................................................................................................75

9.3. Ration Analysis...............................................................................................................76


10. CONCLUSION.....................................................................................................................78

11. SUGGESTIONS AND RECOMMENDATIONS..............................................................79

12. GLOSSARY..........................................................................................................................80

13. REFERENCES.....................................................................................................................82


1. HISTORY OF COMMUNICATION:

Communication is the process of sharing ideas, information and messages with others. The most

basic communication methods that are known to man are speech (verbal) and non-verbal

expressions such as facial expressions and body language. Apart from these basic methods of

communication there are other methods of communication. These methods began to evolve and

become complex as the wants and needs of human beings became complex.

One of the major means of communication is writing. Most languages do have a written form. It

can be written down and someone else may read it and understand the meaning. Writing has

been used from the time of the Mayans and Egyptians. The oldest record of writing is some 5000

years old. Writing in the early days was used to mark down the major events of history. It was

also used inside temples and chambers of kings. Visual communication also goes hand in hand

with writing. The first paintings found were drawn more than 5000 years ago, well before words

were written down. Paintings were used in the past like writing.

Other than these methods of communication there were other methods used to signal and

communicate with in a distance. Our ancestors developed systems for sending simple messages

or signals over a distance through:

fire or smoke signals,

lanterns,

drumbeats,

Birds and arrows.

All these methods of communication have evolved and today it is impossible to imagine a world

without it. Households, businesses, organizations and entire countries depend upon the level of

communication. The simple act of exchanging ideas has become one of the most important parts

of human life.


1.1. Smoke Signal

In 150B.C. Native Americans (old American) used a type of communication called smoke

signals. In this form of communication, puffs or columns of smoke were sent into the air in many

different ways, signaling different things. The smoke signals were not exactly a full language,

but were mostly used as brief signals of communication. Some of the recognized signals are

remembered today.

One puff of smoke sent into the air was believed to signal attention.

Two puffs meant all's well or everything is okay.

Three puffs signal either danger, call for help, or simply just trouble.

The smoke is made by putting green branches or grass into the fire. Blankets are used to control

the smoke puffs. Important events were also marked by smoke signals like war, death, or

marriage. There were light and heavy signals, each meaning separate things. One meant good,

the other meant bad.

In Ancient China, soldiers stationed along the Great Wall would alert each other of impending

enemy attack by signaling from tower to tower. In this way, they were able to transmit a message

as far away as 750 kilometers in just a few hours.

1.2. Lantern Means of Communication


Another interesting element of the Chinese lanterns history is that, they also served as a means of

communication among neighbors, when placed on the doorway, and the colors of the lanterns

symbolized the events that the family was going through.

Red Lantern: Red is a symbol of exuberance and zeal at its peak. As such, when

placed outside a house, it symbolizes an event of marriage, or a birth in the family.

Blue Lantern: A blue lantern is an indicator of poor health in the house, and also

symbolizes the degenerating health of a family member.

White Lantern: As is the case with many cultures across the world, white represents

death in the Chinese culture too. When two white lanterns are placed on top of a

doorway, along with a white sash that is placed across them, it symbolizes that a

family is in mourning.

Not only were Chinese lanterns used to communicate the good and bad events in a

family, they also served as a means of communication among the military. The famous war hero,

Zhu Geliang has been credited with the invention of a special lantern, used to alert neighboring

cities of potential attack or danger. This he did by dousing a strip of cloth in kerosene, and

placing it within a lamp that was light enough to float into the sky at night.

1.3. Communication by Drums

Drums are used for communication in central Africa. Many languages of the Bantu family of

languages, spoken there, have drum

equivalents. It works just about like the Morse

code (a code of signaling and telegraphy),

except that the Morse code uses letters as units,

and the drum communication uses words.

Intonation (a particular tone ring with the drum) is very important in the Bantu languages. A

word can have completely different meanings, depending on the intonation. That intonation


relies on high/low tones. These tones can easily be duplicated by the drums. Of course, there are

words that have the same amount of syllables (a word that contain the vowel sound) and have the

same intonation. You can imagine that a message sent using drums could get quite long.

1.4. Communication by Birds

Ever since the beginning of time as we know it, our civilization has

developed and relied on various forms of communication in order to

confer amongst those of his own species. Whether it is to convey messages

of friendship, anger, sadness or even war, Birds carried messages through

a long distance. The message was attached to a foot of a Pigeon or a

Falcon who flew home with the message. This specific method of

communication was used to a great extent during World War I.


2. HISTORY OF TELECOMMUNICATION

2.1. What is Telecommunication?

“Telecommunications is a general term for a vast array of

technologies that send information over distances.”

Mobile phones, land lines, satellite phones and voice over Internet protocol (VoIP) are all

telephony technologies just one field of telecommunications. Radio, television and networks are

a few more examples of telecommunication.

Telecommunication’ is a term coming from Greek and meaning ‘communication at distance’

through signals of varied nature coming from a transmitter to a receiver. In order to achieve

effective communication, the choice of a proper mean of transport for the signal has played (and

still plays) a fundamental role.

In ancient times, the most common way of

producing a signal would be through light (fires) and

sound (drums and horns). However, those kinds’

communications were insecure and certainly left

room to improvement as they did not permit

message encryption or a fast transmission of

information on a large scale.

The true ‘jump’ in terms of quality came with the

advent of electricity. Electromagnetic energy, in fact, is able to transport information in an

extremely fast way (ideally to the speed of light), in a way that previously had no equals in terms

of costs reliability. Therefore, we may say that the starting point of all modern

telecommunications was the invention of the electric cell by Alessandro Volta (1800).


It was shortly thereafter that the first experiments on more advanced communication system

begun from 1830s that electrical telecommunication system started to appear.

Telecommunication is started at that time through

Telegraph and telephone

Radio and television

2.1.1. Telegraph and Telephone

2.1.1.1. TelegraphA very early experiment in electrical telegraphy was an

'electrochemical' telegraph created by the German

physician and inventor Samuel Thomas in 1809. based on

an earlier, less robust design of 1804 by scientist

Francisco. Both their designs employed multiple wires

(up to 35) in order to visually represent almost all letters

and numerals. Thus, messages could be conveyed

electrically up to a few kilometers with each of the telegraph receiver's wires. An electrical

current was sequentially applied by the sender through the various wires representing each digit

of a message.

The first commercial electrical telegraph was constructed in England by Sir Charles Wheatstone

and Sir William Cooke. It used the deflection of needles to represent messages and started

operating over twenty-one kilometers (thirteen miles) of the Great Western Railway on 9 April

1839. Both Wheatstone and Cooke viewed their device as "an improvement to the [existing]

electromagnetic telegraph" not as a new device.

2.1.1.1. Telephone

The conventional telephone was invented by “Alexander

Graham Bell” in 1876, based on his earlier work with

harmonic (multi-signal) telegraphs. The first commercial


telephone services were set up in 1878 and 1879 on both sides of the Atlantic in the cities of

New Haven and London. Bell held the master patent for the telephone that was needed for such

services in both countries. The technology grew quickly from this point, with inter-city lines

being built and telephone exchanges in every major city of the United States by the mid-1880s.

In 1880, Bell and co-inventor Charles Sumner Tainter conducted the world's first wireless

telephone call via modulated light beams projected by photo phones. The scientific principles of

their invention would not be utilized for several decades, when they were first deployed in

military and fiber-optic communications.

2.1.2. Radio and Television

2.1.2.1. Radio

In 1832, James Lindsay gave a classroom demonstration of wireless

telegraphy to his students. By 1854, he was able to demonstrate a

transmission across the Firth of Tay from Dundee to Woodhaven, a

distance of two miles (3 km), using water as the transmission

medium.

Addressing the Franklin Institute in 1893, Nikola Tesla described and demonstrated in detail the

principles of wireless telegraphy. The apparatus that he used contained all the elements that were

incorporated into radio systems before the development of the vacuum tube. However it was not

until 1900 that Reginald Fessenden was able to wirelessly transmit a human voice.

2.1.2.2. Television

In December 1901, Guglielmo Marconi established wireless

communication between Britain and Newfoundland, earning him

the Nobel Prize in physics in 1909 (which he shared with Karl

Braun).


On March 25, 1925, Scottish inventor John Logie Baird publicly demonstrated the transmission

of moving pictures at the London department store Selfridges. In October 1925, Baird was

successful in obtaining moving pictures with halftone shades, which were by most accounts the

first true television pictures. Baird's first devices relied upon the Nipkow disk and thus became

known as the mechanical television. It formed the basis of semi-experimental broadcasts done by

the British Broadcasting Corporation beginning September 30, 1929.

However for most of the twentieth century televisions depended upon the cathode ray tube

invented by Karl Braun.


3. HISTORY OF CELLULAR COMPANIES IN PAKISTAN

3.1. Paktel

Paktel limited was the first mobile network provider company whom laid the

foundation of mobile industry in Pakistan. And after this new race of mobile

technology started in Pakistan.

During the past decade the company built a reputation for excellence with the widest coverage,

network quality, customer services and value-added facilities that have earned us the respect of

consumer’s experts. But the general perception was that company introduced the mobile as a

status symbol and charged exorbitant rates during it early years. Paktel’s progression towards

becoming a leading mobile service provider primarily comes from the early entry. The cellular

networks offer services in over 200 cities and towns across the country. Paktel offers the range of

cellular services with real utility; it has recently decided to shift from AMPS technology to the

GSM version. It advantages are wide coverage, value added facilities, and good customer

services.

3.2. Instaphone

Instaphone was a telecommunications company in Pakistan and the

pioneer of cellular industry in Pakistan. The company was initially

owned by Millicom International and was acquired later by the

Arfeen Group.

In January 2008, the Pakistan Telecommunication Authority (PTA) terminated the license of

Instaphone due to the company’s failure to pay outstanding dues.


http://en.wikipedia.org/wiki/Pakistan

3.2.1. Market Share

Before the company's license was canceled, it was ranked at the bottom in terms of market share.

Revenue, millions PKR

2003-04 3196

2004-05 2593

2005-06 1539

2006-07 472

3.2.2. Cancellation of License

On January 4, 2008, Pakistan Telecommunication Authority (PTA) terminated the license of

Instaphone due to the company’s failure to pay outstanding dues for the license renewal fee they

agreed to in April 2005 ($291MM). Pakcom, the company that runs Instaphone, failed to meet

the payment schedule of $291 million for getting the operating license renewed for next 15 years

from 2005.

3.3. Mobilink

The Mobilink GSM started operation in the year 1994. The

Mobilink GSM is a subsidiary of Orascam telecom and market

leader in Pakistan. This was the first company that introduced the

GSM technology and cut down the rates. The company offers tariff

plans that are exclusively designed to cater to the communication

needs of a diverse group of clientele, taking into account occasional users to businessmen. To

achieve this objective, Mobilink offers both postpaid and the pre-paid (brand name JAZZ)

solution to our customers. The company also offers advanced voice communication services, and

a number of value added services to Subscribers. Mobilink since its start shown enormous


growth. At the time when it entered the market it was a small player in the cellular market of

Pakistan it is now the market leader in terms of having the largest subscriber in Pakistan.

3.3.1. Mobilink DSL

Besides its cellular service recently Mobilink has also started its DSL/Wimax internet service in

26 major cities of Pakistan including

Lahore, Karachi, Rawalpindi, Islamabad, Faisalabad, Peshawar, Multan, Gujranwala, Gujrat, Jhe

lum, Sialkot, Hyderabad, Mardan, Rahim Yar Khan, Sahiwal, Wah, Sargodha, Sheikhupura,

Abbotabad, Quetta, Dera Ghazi Khan, Ghazi Kot, Bahawalpur, Sukkur, Nawabshah & Larkana.

3.3.2. Company Profile

Mobilink GSM

Pakistan Mobile Communications Ltd (PMCL)

Type Private Limited Company

Parent or Subsidiary

Subsidiary

Founded 1994

Headquarters42 Kulsum Plaza, Blue Area Islamabad, Pakistan

Key people President and CEO: Zouhair A Khaliq,

ProductsIndigo (postpaid) , JAZZ (prepaid), Mobilink PCO

Parent Orascom Telecom Egypt

Slogan Reshaping lives

Website www.mobilinkgsm.com

3.4. Telenor


http://en.wikipedia.org/wiki/Quetta

http://en.wikipedia.org/wiki/Abbotabad

http://en.wikipedia.org/wiki/Sargodha

http://en.wikipedia.org/wiki/Sahiwal

http://en.wikipedia.org/wiki/Rahim_Yar_Khan

http://en.wikipedia.org/wiki/Mardan

http://en.wikipedia.org/wiki/Sialkot

http://en.wikipedia.org/wiki/Jhelum

http://en.wikipedia.org/wiki/Jhelum

http://en.wikipedia.org/wiki/Gujrat

http://en.wikipedia.org/wiki/Gujranwala

http://en.wikipedia.org/wiki/Multan

http://en.wikipedia.org/wiki/Peshawar

http://en.wikipedia.org/wiki/Faisalabad

http://en.wikipedia.org/wiki/Islamabad

http://en.wikipedia.org/wiki/Rawalpindi

http://en.wikipedia.org/wiki/Karachi

http://en.wikipedia.org/wiki/Lahore

Telenor Pakistan is a Pakistani GSM cellular service provider, and is a

subsidiary of Telenor, Norway. Telenor acquired the license for providing

GSM services in Pakistan in April 2004, and has launched its services

commercially in Islamabad, Rawalpindi and Karachi on March 15, 2005.

Telenor has its corporate headquarters in Islamabad, with regional offices in

Karachi and Lahore. On January 28, 2006 Telenor established a call center in Lahore. The

official opening was held in Islamabad with the President of Pakistan General Pervez Musharraf

as the guest of honor and a Telenor delegation headed by CEO Telenor Jon Fredrik Baksaas. On

March 23, 2005 Telenor started its services in Lahore, Faisalabad and Hyderabad. Telenor will

be launching its services in other cities as per the roll out plan.


Telenor

Type Public Limited Company

Founded April 2004

Headquarters Islamabad

Key peopleCEO: Jon Fredrik Baksaas,

Chairman: Thorleif Enger

Industry Telecommunication

Productstalk shawk (Prepaid), Djuice (postpaid)

Slogan Here to help, bato bato mie

Website www.telenor.com

3.5. Warid


http://www.telenor.com/

http://en.wikipedia.org/wiki/Telenor




http://en.wikipedia.org/wiki/Call_centre

http://en.wikipedia.org/wiki/2006

http://en.wikipedia.org/wiki/January_28

http://en.wikipedia.org/wiki/Lahore

http://en.wikipedia.org/wiki/Karachi




http://en.wikipedia.org/wiki/Cellular

Warid Telecom Uganda Ltd is fully owned by WARID Telecom

International a subsidiary of the Abu Dhabi Group, a large investment

group active both in the UAE, Pakistan and now numerous other

markets on the African continent including Uganda, Congo and Cote

de Ivoire (African area where people lived). The group has sizeable

investments in various sectors including:

Telecommunications

Hospitality Property development

Oil exploration and supplies

Banking and financial services

Automobile industries.

This group currently providing GSM cellular services in Pakistan and Bangladesh (to launch in

October 2006) with headquarters located at Abu Dhabi UAE.

Warid Telecom purchased a license of Telecom Operator in 2004 from Government of Pakistan

and launched the service covering 28 cities of Pakistan and increasing its coverage 110 cities

town highways. On the 10th of October 2006, it was reported on the media that the launch of

Warid Bangladesh had been delayed by at least six months.


Warid Telecom


Founded 2004

Headquarters301-Dhabi Tower, Hamdan Street, Post Box 44222, Abu Dhabi, United Arab Emirates

Key people

Chairman: Sheikh Nahayan Mabarak Al Nahayan,CEO Abu Dhabi Group & Warid International: Mr. Bashir A. Tahir,


http://en.wikipedia.org/wiki/Bangladesh

http://en.wikipedia.org/wiki/2006

http://en.wikipedia.org/wiki/10th

http://en.wikipedia.org/wiki/UAE

http://en.wikipedia.org/wiki/Abu_Dhabi



http://en.wikipedia.org/wiki/GSM

Products Zem(prepaid), Zahi (postpaid)

Slogan We Care

Websitewww.waridtel.com (Pakistan) www.waridtel.com.bd (Bangladesh)

3.6. Ufone

Ufone is a 100% owned subsidiary of PTCL was established to

operate cellular GSM services. The company commenced its

operations, under the brand name of Ufone, from Islamabad on

January 29, 2001. After the privatization of PTCL, Ufone is now

owned by Etisalat.

During the year, as a consequence of PTCL’s privatization, 26% of its shares were acquired by

Emirates Telecommunication Corporation (Etisalat). Being part of PTCL, the management of

Ufone has also been handed over to Etisalat. During the year July 2005 to June 2006, Ufone

continued on the path to success. The Company further expanded its coverage and has added

new cities and highways. Ufone has network coverage in more than 750 cities, towns and across

all major highways of the country.


Pakistan Telecommunication Mobile Ltd. (PTML),Ufone


Parent or Subsidiary

Subsidiary

Founded January 29, 2001

HeadquartersIslamabad, Pakistan13-B, F-7 Markaz

Area served 2336 cities of Pakistan, GT Road,


http://www.waridtel.com.bd/

http://www.waridtel.com/

Super Highway & Motorway

Key people Abdul Aziz, CEO

Products Pre Pay, Post Pay

Parent PTCL Pakistan

Slogan It’s all about U! (Tum He Tou Ho)

Website www.ufone.com


http://www.ufone.com/

http://en.wikipedia.org/wiki/Image:Flag_of_Pakistan.svg

4. BACKGROUND OF THE ZONG

4.1. China Mobile Communications Corporation (CMCC)

China Mobile is the world's largest telecom operator. Having a customer base of over 300

million customers, its network routes 700 million text messages every day and handles 250

million calls every hour.

China Mobile is perhaps the only cellular network that provides uninterrupted, reliable coverage

through tunnels, on highways, inside sky scrapper elevators as well on top of Mount Everest.

China Mobile's first overseas subsidiary, China Mobile Pakistan has the license to offer and

operate voice, data and all value added services in the entire country. One of the fastest growing

cellular markets in the world, Pakistan is a key region that is likely to offer expansion

opportunities as well the chance to make a difference in the lives of a growing clientele that is

demanding, understands, and appreciates better quality and service standards.

4.2. China Mobile Pakistan (CM Pak)

China Mobile Pakistan (CM Pak) is a 100% subsidiary of China Mobile. The pioneering

overseas set up of China Mobile came through acquisition of a license from Millicom to operate

a GSM network in Pakistan. So far, CM Pak has invested more than US$ 700 million in the

telecom sector in Pakistan and an additional US$ 800 million will be invested till the end of year

2008. With ambitious plans to cater to the fastest growing Pakistani market and to win over the

ever-demanding Pakistani customer, it will be offering unprecedented coverage, voice and data

services, as well as a wide range of tariff options to choose from.

CM Pak's edge comes from the experience and expertise of running the world's largest telecom

service and the commitment they make to setting quality and customer relations standards. CM

Pak is geared to offer neatly packaged VAS products that will benefit the individuals, corporate

as well as small businesses. Led by a team of professionals from the field of cellular


communication, CM Pak is determined to make its mark in the Pakistani market and to change

the way people communicate.

4.3. ZONG Pakistan

On January 22, 2007 stated that it would sell its 88.86 percent stake in Paktel Ltd. to China

Mobile for $284 million, which includes the repayment of intercompany debt and China mobile

company has invested $721 million in telecom sector in Pakistan during 2007 and it would

further invest $7 million in Pakistan this year. The sale implies an enterprise value for Paktel of

$460 million, Millicom said in its press release. Merrill Lynch advised China Mobile on the

transaction. On 4 May 2007, Paktel was renamed to CM Pak. And then, on 16 May 2007, China

Mobile announced that it had upped its stake in CM Pak to 100%.

ZONG is the first International brand of China Mobile being launched in Pakistan. It is meant to

empower and liberate the people of Pakistan in every nook and corner of the country. It will

become a part of their hearts, their minds and bring about a change in their lives that everyone

desired but few thought would be possible.

ZONG would offer its customers with entertaining & innovative value added services and will

empower them by giving a wide variety of products, services, & content to choose from.

We are privileged to be the pioneering country introducing this brand with others to follow. And

God willing, together we will make ZONG a success story for others to try and replicate.


http://en.wikipedia.org/wiki/Enterprise_value

4.3.1. Vision Statement

“With perfect sincerity and integrity, we will strive to fulfill their

triple-sided responsibilities: their economic responsibility; their

social responsibility and their environmental responsibility

4.3.2. Mission Statement

“To be leasing mobile operator in Pakistan by continuously

innovating and offering exceptional quality and service , to be a

good corporate citizen and envy of friendship between China and

Pakistan.”

4.3.3. Core Value

Responsibility Makes Perfection Five Key Values.

4.3.3.1. Trust Worthiness

Trust worthiness to be promoted between employees and with customers. Building Trust and

Integrity must characterize in everything we do. We want everyone who comes in contact with

us to know that we do things the right way at CM Pak. We work with honesty, integrity and

loyalty. We don't take short cuts.

4.3.3.2. Respect

Respect to be core part of the work environment .We treat each other with respect giving

individuals autonomy, privacy, due courtesy in day to day interaction with our customers,

suppliers, contractors, and of course each other. We tolerate and accept diversity.


4.3.3.3. Responsibility

Responsibility sharing and being aware of the responsibility with in the work place and outside

of it. CM Pak is a much larger company today than we were. With this increased size comes the

challenge of operating in a timely fashion. We must avoid bureaucratic delays in the pursuit of

excellence. We must be agile enough to act faster than our competitors.

4.3.3.4. Communicate Openly

We want good news to travel fast and bad news to travel even faster up the line. We need to be

mindful of the importance of honestly communicating problems as well as breakthroughs. The

sooner we communicate a problem, the easier it is for us to marshal our company's resources to

solve it. We must communicate with each other at all levels fostering harmony and a culture of

openness.

4.3.3.5. Team Work

Team works culture within the organization. CM Pak’s power comes from the talented people

who make up our company. By cooperating and sharing our knowledge with each other

seamlessly across organizations, we can make our company even stronger

4.3.4. Goals and Objectives

Mobile communication is now a utility. You need your mobile phone. Zong team seeks to meet

consumers all communication needs by providing the best technology at an affordable price.

It would be their prime objective to be rated as the best cellular service provider in Pakistan by

expanding their service area to every corner of the country which is to be backed by excellent

after-sales service. Zong a fresh dynamic and customized brand befitting your lifestyle in order

that you feel it as part of your life. A brand that you can always count on, sincerely, that

understands your needs (Zong Z20 package in which 20 seconds billing), wishes and desires and

helps you get connected with your loved ones anywhere, anytime (Zong to Zong free city


package). So speak your heart out and be good to your expression as Zong is all set to mesmerize

you with the ever-entertaining

As a major step towards achieving their goal of expanding their services rapidly. They have

decided to award the expansion contract to different vendors in Pakistan. These high ambitions

would certainly lead us to become a major force in the development of telecom industry in

Pakistan.

We know that their partners Alcatel-Lucent Technologies, Ericsson Pakistan Limited, Huawei

Technologies Pakistan and ZTE Pakistan are very well-known globally for their technical

expertise and professionalism. The professionals representing their Partners will help CM Pak

achieve its goals in the shortest possible time. Zong have completed acquisition of 100% shares

of ZONG. US $ 723 million worth of FDI has already been made in the country and on top of

that They’ll be investing millions of dollars in the future Let me reiterate their resolve and

uncompromising commitment that China Mobile is here to stay which is why They are planning

to continuously invest to improve their network coverage and quality. China Mobile has the

resources and technical expertise to become one of the largest operators of the country.

4.3.5. Company Information

China Mobiles Pakistan (CM Pak)

ZongType Private Limited CompanyParent or Subsidiary

Subsidiary

Founded May 16, 2007

Founder China Mobiles Pakistan (CM Pak)

Headquarters 7 Mauve Area, Islamabad, Pakistan

Investment US $1500 million

Cell sites 6300

Industry Telecommunication, Wireless


Communication

ProductsCommunication (Mobiles and SIM and USB)

Telephone +92-51-111222111

Fax +92-51-111031031

Slogan Zong Sab Keh Do

Website www.zong.com.pk

4.3.6. Management Line of ZONG

MANAGEMENT LINE OF ZONG

Management Line Name Location From

CEO Qin Lee Islambad China

CTO Xu Haiyong Islambad China

CFO Xin Jee Islambad China

COO Zafar Usmani Islambad Pakistan

CHRO Wai Giang Fu Islambad China

Director Operations Syrus Sikander Islambad Pakistan

Director Finances Amir Mahmood Islambad Pakistan

Director Sales Mannan Shabbir Islambad Pakistan


http://www.zong.com.pk/

4.3.7. Organizational Chart


CEO

coo

MARKTING CALL CENTER

CSCSALES AND

DISTRIBUTION

CS

CFODIRECTOR FINANCE

PROCUREMENT

CITO

IT OPERATIONS

IT PROJECT

CHRO

4.3.8. Customer Center Chart


CSC Manager

BDO TSOs

CSR Zong Mobile

CSR Prepaid VAS

CSR Prepaid Connection

CSR Postpaid

Account Officer

5. PRODUCTS AND SERVICES

5.1. ZONG Postpaid

Exciting news for ZONG’s postpaid customers, ZONG has introduced some new postpaid

packages and may be the most feature rich in market. Now, ZONG’s postpaid packages comes

with the free minutes on-net and off-net, and also unlimited SMS, 15 MB of free GPRS quota

and many more. Packages are given below:

Line Rent (Rs) 100 300 600 1200 2000

On-Net Calls Airtime Rs./min 0.5 0.45 0.375 0.3 0.1

Off-Net Calls Airtime Rs./min 0.5 0.45 0.375 0.3 0.2

FNF Rs./min 0.4 0.3 0.2 N/A N/A

Free SMS (On & Off-Net) N/A N/A N/A Free Free

SMS Rate Rs./sms 1 1 1 1 1

GPRS (MB) 15 15 15 15 15

Free SMS 90 90 90 90 90

Free Minutes 100 300 600 1,200 6,800

On-Net 60 180 360 720 6,000

Off-Net-PTCL 20 60 120 240 400

Off-Net-Other Mobile Operator 20 60 120 240 400

Refundable Security Deposit 600 1,000 1,500 2,500 4,000

If customer comes to purchase postpaid SIM than he can avail packages which are given above.

On postpaid SIM there is no default package customer will select any of the above packages

according to his need and deposit line rent according to the package and package will be

changed.


5.2. ZONG Prepaid

Following packages can be applied of the prepaid SIM

5.2.1. ZONG Default Package

ZONG default package have some following features

Network Price

Call Rate (All networks) 80 paisa/30 second

SMS (All networks) 80 paisa

MMS (All networks) Rs. 3.00 upto 300KB

GPRS Rs. 15/MB

Unlimited GPRS Rs. 400/month

Unlimited SMS Rs. 3.99/day

Happy Hour Rs. 4.99 per hour

Friends and Family 5 Numbers

ZONG Friends and Family rate 50 Paisas

5.2.2. ZONG 45 Package

ZONG 45package have some following features

Charging Unit 20 Seconds

Voice: All networks in Pakistan 45 paisa/20 seconds

SMS: All networks in Pakistan Rs. 1/SMS

MMS: All networks in Pakistan Rs. 3/MMS upto 300KB

GPRS Rs. 15/MB


Friends and Family Not Applicable

Special offers (e.g. Happy Hour, 8 Aanay,

LNO, BTO, Super Free, Unlimited Free)

Not Applicable


Switching for package Send “sub” to 931 or by dialing 931

5.2.3. ZONG 65 Package

ZONG 65 package have some following features

Charging Unit 30 Seconds

Voice: All networks in Pakistan 65 paisa/30 seconds

SMS: All networks in Pakistan Rs. 1/SMS

MMS: All networks in Pakistan Rs. 3/MMS upto 300KB

GPRS Rs. 15/MB


Friends and Family Not Applicable

Special offers (e.g. Happy Hour, 8 Aanay,

LNO, BTO, Super Free, Unlimited Free)

Not Applicable

Switching for package Send “sub” to 910 or by dialing 910

5.2.4. ZONG 12 Aanay Package

ZONG 12 aanay package have some following features

Network Price

ZONG to ZONG 75 paisas/30 second

ZONG to any other number 75 paisas/30 second

SMS to any other network 75 Paisas / sms

Happy Hour Rs. 4.99 per hour

ZONG Friends and Family numbers 5 Numbers

ZONG Friends and Family rate 50 Paisas

8 Aanay Offer 50 Paisas

MMS Rs. 3/300KB

Mobile Internet Rs. 15/MB


Switching for package Dial 907

5.2.5. ZONG Free Package

Features of ZONG free Package are as follows

Network Price

ZONG to ZONG Rs. 2.00/minute

ZONG to any other network Rs. 2.00/minute

SMS to any network Rs. 0.20

ZONG Friends and Family numbers 10 numbers

Late Night Offer (Midnight to 7:00 am) Rs. 3.99 per hour

- Break Time Offer (Noon to 2:00 pm) Rs. 3.99 per hour

- Break time offer Fridays Only(Noon to 4:00 pm). Rs. 3.99 per hour

ZONG Friends and Family rate Re. 1.00/minute

MMS Rs. 3/300KB

Mobile Internet Rs. 10/MB

Super free number Free for 24 hour a day

Switching for package Dial 900

5.2.6. ZONG Aik Second Package

Features of ZONG Aik Second Package are given below

Make call for just 4 paisas per second!

All Networks. All Numbers. All Time!

Call 5 Friends and Family numbers for just 2 paisas per second.

For subscription dial 900.


5.3. Other Offers and Services by Zong

ZONG has always provided its customer with the best offers and services some of them are

given below

5.3.1. Break Time Offer (BTO)

ZONG offers Break time offer now call on any ZONG number at Rs.3.99 from noon to 2 pm,

and on Friday from noon to 4 pm. This offer is on ZONG free package. To subscribe dial 900.

5.3.2. Late Night Offer (LNO)

ZONG offers late night offer now add call from mid night to 7 am @ Rs. 3.99 per hour. This

offer is on ZONG free package. To subscribe dial 900.

5.3.3. Location Based Charging (LBC)

ZONG has always provided its customer with the best offers and services and in continuing of

efforts ZONG now brings LBC. LBC is in more than 40 cities through which the customer can

enjoy free ZONG to ZONG calls @ only Rs. 7+tax per day.

5.3.4. Friends and Family (FnF)

ZONG brings special rates for your friends and family members add FNF numbers in almost all

prepaid and postpaid packages.

In ZONG postpaid packages FnF rates applied of line rent 100, 300, and 600 call rates are

0.4, 0.3, and 0.2 rupees per minute only respectively.

And on prepaid FnF rates applied on ZONG Default Package and ZONG 12 Aanay

Package 5 FnF numbers 50 paisas per 30 seconds and and on ZONG Free Package 10

FnF @ 1 Rs per minute, and in ZONG Aik Second Package call on 5 Friends and Family

numbers for just 2 paisas per second.


5.3.5. Happy Hour

ZONG brigs happy hour talk for an entire hour of your liking-any hour, for only Rs. 4.99 and for

first time in Pakistan you can change the hour every day.

Happy hour needs to be activated by the subscriber; every action/modification will be

charged at Rs5.

Friends and family rate apply for 24 hours, for those customers who have subscribed for

happy hour,

Friends and Family rates will not be applicable during that hour

Happy hour can be modified once every day.

5.3.6. Super Free Number

ZONG offers the ZONG super free number for that special someone deserves something special.

Now call on your one special number 24 hours - for free!

You can change the one super free number at the end of your subscription

Already entered FnF numbers can be added as Super free number only after 30 days of

selection i.e. after 30 days of adding the FnF number

Dial 908 for package conversion & special number selection / modification

You can also subscribe through SMS by sending sub <space> free <space> <mobile

number> to 908

5.3.7. Conference Call

Now five members can talk to each other at one time ZONG brings to you conference call

service. Now activated on all prepaid and postpaid numbers.


5.3.8. SMS packages

ZONG’S SMS packages are as follows

Packages SMS Days Limit Price

Daily SMS bundle 500 SMS & 100 MMS per day 1 day 3.99+tax

Weekly SMS bundle 1000 SMS 7 days 10 + tax

Fortnightly SMS bundle 500 SMS per day 15 days 50 + tax

Monthly SMS bundle 500 SMS per day 30 days 80 + tax

Just SMS <sub> to 700. You would receive an SMS asking you to choose from the

following bundles

Send a reply with 1 for daily, 2 for weekly, 3 for fortnightly, 4 for monthly.

To unsubscribe, SMS <unsubscribe> to 700

5.3.9. GPRS Packages

GPRS (General Packet Radio Services) packages detail is given below

ZONG Monthly Package

Prepaid Offer

Monthly Unlimited Rs. 200*

4 GB Bundle Rs. 400

Truly Unlimited Rs. 999

Postpaid Offer

Truly Unlimited Rs. 400

ZONG Free @ Rs. 10/M

ZONG Time Based Packages

Hourly package Rs. 0.25 per minute

For Activation Dial 905


*Monthly unlimited package provide downloading up to 2 GB.

5.3.10. ZONG E-Care

No need to walk into a Customer Support Center or make a call to get such modifications done.

Our customers now have this facility in the comfort of their homes and offices. Through Prepaid

E-Care, customers can enjoy the following features online:

Web Portal Activation / Subscription for:

Call packages change facility

SMS bundle information

Block unwanted call and SMS

GPRS activation and packages change

FnF numbers check & change facility

BYN (Book Your Number)

5.3.11. Missed Call Alert

No is miss call now, ZONG brings miss cal alerts for its customer. A message will be sent to you

that this number called you if your phone is:

Busy

Not answered

Out of reached

Not responding


5.3.12. ZONG Family Pack

Now with ZONG Family Pack, subscribers can call to their three family numbers without being

worrying about the time limit or additional charges. Though, free calls are not for all ZONG

numbers but to a group of three, that could be your family or friends. Bill will be paid by only one

member who active this package.

For activation dial 930

Monthly charges PKR 799+tax

5.3.13. Student Entrepreneur Program (SEP)

For the first time in Pakistan ZONG has established a concrete earning opportunity for students.

If you are currently enrolled in a university program and you want to earn a decent pocket money

then ZONG has an amazing solution for you. Just get yourself registered as SEP in any CSC of

ZONG anywhere in Pakistan. And avail that chance to get sales experience and also enjoy profit

as well.


5.4. ZONG Mobile

5.4.1. Android Handset

ZONG brings to you the new Android handset based on the latest V 2.2 - Froyo Android

operating system and that too at an unbelievable price. The Android phone is packed with

numerous features that will revolutionize the handset market. You can know your exact

Location, find Places to eat or shop or find an ATM near you with a single Touch on the screen.

Handset along with the ZONG SIM for Rs. 10,999.

Discount of Rs. 150 can be got by the customer if he has ZONG SIM with him

Rs 450 of balance divided over 3 moths (Rs 150/month)

8MB free GPRS per month for 6 month

5.4.1.1. Features of Android Handset CPU – 528 MHz QUALCOMM processor

3.2 MP camera

Bluetooth & Wi-Fi

EDGE supported

USB

Accelerometer

Proximity sensor

email support

Micro SD card support (Micro SD card not included)


5.4.2. ZONG Handset N281

ZONG is all set to shake the telecom industry with its startling new Touch Screen phone being

offered at an unbelievable price. Along with this splendid Touchscreen handset and high-quality

camera you will also get an incredible bundle deal of free GPRS and balance to make calls and

SMS to any network in Pakistan.



Rs 300 of balance divided over 3 months (Rs 100/month)

6MB free GPRS per month for 3 months

5.4.2.1. Features of Handset N281

Touch Screen

2 MP Camera

EDGE Support

FM Radio

20MB Internal Memory

Micro SD card Supported

8 Pre-Loaded Bookmarks (which include Facebook, Gmail, Google, CricInfo, ZONG,

Wikipedia, Yahoo)

ZONG Music Hot Key for one touch access to ZONG Music website


5.4.3. ZONG Handset R231

The R-231's sleek and stylish design along with its music related functions. The handset is

packed with numerous features and a remarkable bundle offer of free calls and SMS to any

network in Pakistan.


Discount of Rs. 150 can be got by the customer, if he has ZONG SIM with him

Rs 225 of balance divided over 3 months (Rs 75/month) balance is valid for on-net call.

Off-net calls and SMS


5.4.3.1. Features of Handset R231

2 MP Camera

EDGE Support

FM Radio

34MB Internal Memory

Micro SD card Supported


5.4.4. ZONG Handset R221

The stylish R-221 is an amazing handset packed with a camera, FM Radio, Torch and GPRS. Its

classy look and features will definitely attract you.


Discount of Rs. 150 can be got by the customer, if he has ZONG SIM with him

Rs 150 of balance divided over 3 months (Rs 50/month) balance is valid for on-net call.

Off-net calls and SMS


5.4.4.1. Features of Handset R221

0.3 MP Camera

GPRS

FM Radio

Torch


5.4.5. ZONG Handset G2201

Following the immense success of our previous affordable handset offers, ZONG is back with

another handset deal with the latest affordable handset offer that is bound to catch your interest

and attention. The stylish and affordable G 2201 handset coupled with an amazing bundle offer

from ZONG.



1000 minutes (on-net)

1000 SMS (on-net)

2MB free GPRS

Validity of free resources: 15 days

5.4.5.1. Features of Handset G2201

FM Radio

GPRS Supported

Torch


5.4.6. ZONG Handset Z100

The new stylish handset comes with 1000 free minutes and 1000 free SMS but that's not all,

among a number of features ZONG is now offering the handset in two different colors to provide

the valued customers with the choice as per their preference.


1000 minutes (on-net)

1000 SMS (any network)

Validity of free resources: 15 days

5.4.6.1. Features of Handset Z100

Slim and smart

Torch

FM Radio with loudspeaker

Color Display

300 Phonebook entries

100 SMS storage


5.5. ZONG usb

ZONG has finally launched its high-speed wireless Broadband services in major cities of

Pakistan. This service will be available with a USB Stick which is supported by a built in SIM

with EDGE/GPRS activated. After you have bought the SIM simply you have to plugin in the

USB in USB port, and you will be asked to set up some basic instructions and voila you can

access the internet on the go.

Price Rs. 8,000/-

Unlimited GPRS package Rs. 400/month + tax

5.5.1. SMS Charges

Domestic - Rs. 0.5/SMS +tax

International - Rs. 5/SMS +tax

Each month the users will have to recharge the SIM account to continue

using uninterrupted services @ Rs. 400+tax

5.5.2. Available at CSCs of the following cities

Faisalabad

Lahore

Hyderabad

Multan

Gujranwala

Peshawar

Karachi

Islamabad

Rawalpindi


6. DEPARTMENTS

6.1. Human Resource Department (HRD)

Zong Pakistan has a skilled human resource planning department. As we know that each human

resource department in any organization play key role and operate like an eye of an organization,

like wise in Zong Pakistan they are performing their functions and fulfilling their requirement of

the organization by matching the organizational needs with the employee’s skill, knowledge and

ability whether these needs are identified or being demanded by any department of the Zong

Pakistan. Human resource planning in the Zong is basically performing different kind of

functions which are as follows,

1. Whether there is need for recruitment in the organization.

2. If there is demand from any department, they (HR department) identify the need of the

department.

3. Placement of their employees.

4. Work for employee’s motivation.

5. Check on employee’s performance etc.

Zong is newly born baby in Pakistan market, they have had strong competitors in their fields, and

they entered in the market of telecom where already the price war (price competition) had been

initiated among three pioneer companies of Pakistan, including UFONE, MOBILINK,

TELENOR and WARID. Human resource department performs different kind of

functions/practices in this regard to make its effort more and more effective, are as follow:

Job analysis

Job description

Recruitment & Selection process

Training & Development


6.1.1. Job Analysis

When HR department is asked or demand for more employees in any other department, the

activity HR department performs that first they compile the whole job duties, responsibility

grade, work unit and placement and afterwards they prepare the job description.

6.1.2. Job Description

A single job description is prepared for two purpose, first they use it to publish it in the local

newspaper which have a nationwide network and secondly they use the same job description for

the website where the online application facility for the new employment. Job description they

prepare for the newspaper has a slight difference from the job description they have on their

website. Job description they prepare for the newspaper is very simple.

6.1.3. Recruitment and Selection

Group/organization always formed with two or more than two people. For this reason hiring of

the people from different sources is very necessary and important on its side. Because its

(recruitment/selection procedure) performance further leads the organization to success or failure

that how they are recruiting people whether it from within the organization or outside the

organization. Every organization uses different kind of methods and techniques for hiring the

people. In human resource language we can say that, People are most valuable assets for any

organization. Zong Pakistan as it is said that they are new here in Pakistan market and they are

facing too many challenges, in which the hiring of the people is very important still the activity

of hiring the people is going on, the most acceptable reason for this, it is on the growth stage of

its product development, we know that with the establishment of the its network they have to

hire more and more workers/ executives and managers on their side.

Different methods they are using for hiring their employees are as follows:


6.1.3.1. Internal Recruitments

Internal recruitment stands for the recruitment within the organization, as they are newly

established business they do not have any kind of internal recruitment still they are focusing on

hiring the people from outside.

6.1.3.2. External Recruitment

External recruitment stands for the recruitment of the employees from other source/externally.

They perform different kind of steps in this category, For the external recruitment first the need

for the new employment is created or if it is being demanded by any department. Human

resource department first identifies the need of that job, particular its expenses in hiring that

employee(s), time required for its training and orientation in Zong Pakistan. After the approval of

the manager of human resource department, different methods they adopt for the external

recruitment are as follows.

• advertisement through news paper

• advertisement through net (official web site)

6.1.4. Training Methods and Employee Development

The principles relating to the development of the working environment are made available on the

learning portal Learn at Zong in the form of separate e-learning programs for both employees

and managers. Zong believes that each individual is attributed with potentials, which can be

maximized by enabling conditions favorable to their growth.

It is recommended that staff gets an opportunity to engage and learn through active involvement

in HRD interventions, which could include trainings, workshops, learning exposures,

conferences, exchange visits etc. The staff training needs will be identified through performance

development program plans in consultation with respective line managers and individual staff.

Line managers will be fully responsible for ensuring their staff receives access to training and

development events in areas that have been identified for them. The national HRD budget will be


located. The employee upon return form local HRD event will submit detail report outlining key

learning’s and use of training received in the organizational work set.

Zong Pakistan is providing the training to its employees at level where the organization feels

about the performance gaps especially in engineering department and IT division and level of

technology does matter too. Zong at present providing the training to its employees when they

introduce any kind of new technology and further more they also provide training to their

employees in the call center division.

Most important thing to note that Zong Pakistan is still employing the experienced people for

jobs and at start they don’t have any kind of formal training.

6.2. Administration Department


“To anticipate the needs of all departments and their employees, to address their

demands for creating better safe and secure friendly working environment, to

accept challenges, achieving goals thud outstanding mage of the company and

ultimately to be the No. 1 admin operation within CMCC(china mobile

communication corporation) by any measure.”

6.2.2. Functions of Administration Department

Provision of offices for all staff.

Provision of all office equipment for use by staff e.g. Computers.

Ensuring a clean and secure office environment.

Ensuring availability of adequate lighting, water, telecommunication, email, fax, etc.

Providing, where possible, designated parking for vehicles.

Ensuring availability of stationery.

Ensuring availability of adequate photocopying services/facilities.

Setting of internal operating rules.


6.3. Finance Department


“Zong has strong financial position since its inception. China has

been invested $1500 million in Pakistan for Zong and wants to

invest more. The improvement in net earnings resulting from

strong internal sales growth both postpaid, prepaid segments.”

6.3.2. Functions of Finance Department

Payable

Pay Commission.

Audit and Accounts.

Cash Management

Financial Accounting

Taxation

Fixed Assets

Sun System (Accounting Software) Administration

6.4. IT (Information Technology) Department


“To provide the lowest cost and highest speed systems through

Automation, Centralization and Out-sourcing.”

6.4.2. Functions

IT Project and Planning

IT Infrastructure

IT System and Database Management

IT Operations

6.5. Marketing Department



“Zong marketing department will become the best marketing

department of the industry in terms of adding values to their brand

name, improving the image of the organization, increase in sales,

with quality of people and team spirit to lead the organization

towards the achievement of short term and long term goals.”

6.6. Sales and Distribution Department


“To maximize the number of revenue generating subscribers by

efficiently planning and executing policies and operations related

to product visibility and availability.”

6.6.2. Distribution

Zong purchases equipment from four companies ZTE, Ericsson, Alcatel and Hawaii, these are

the venders and operator of Zong distributors and franchises, CCSC (customer care service

centers) and different outlets, Zong has CCSC and 100,000 different outlets in Pakistan.

6.7. Customer Services Department


“To realize the perceived value of the customers and build higher

expectations through excellence in service.”

6.7.2. Customer Service Centers

The beacon of Zong’s impression and torch bearers of a new era in customer interaction, taking

customer service into a portal of customer excitement. These are the doors to Zong’s first and

foremost realization of its promise to excite customers with a new trend in service, setting the


tone and ambiance which is second only to your home, these are Zong’s arm across the country

to welcome everyone to experience the comfort when a true promise is fulfilled.

6.8. Regulatory Corporate Affairs Department


“Maintain the most affable relations with the government to ensure

support and facilitation in the technical installations and the

commercial activities of the organization.”


7. ANALYSIS

7.1. BCG Matrix

Companies those are large enough to be organized into Strategic Business Units (SBUs) face the

challenge of allocating resources among those units. In the early 1970's the Boston Consulting

Group developed a model for managing a portfolio of different business units. The BCG growth-

share matrix displays the various business units on a graph of the market growth rate vs. market

share. Companies check which unit is more profitable for the business and which needs to

improve.

On the vertical axis, market growth rate provides a measure of market attractiveness. On the

horizontal axis, relative market share serves as a measure of company strength in the market.

The Growth-Share Matrix Defines Four Types Of SBUs:

7.1.1. Cash Cow - (Low Growth, High Market Share)

A business unit that has a large market shares in a mature, slow growing industry. Cash cows

require little investment and generate cash that can be used to invest in other business units.

7.1.2. Star - (High Growth, High Market Share)


A business unit that has a large market shares in a fast growing industry. Stars may generate

Cash, but because the market is growing rapidly they require investment to maintain their lead. If

successful, a star will become a cash cow when its industry matures.

7.1.3. Question Mark - (High Growth, Low Market Share)

A business unit that has a small market shares in a high growth market. These business units

require resources to grow market share, but whether they will succeed and become stars is

unknown.

7.1.4. Dog - (Low Growth, Low Market Share)

A business unit that has a small market shares in a mature industry. A dog may not require

Substantial cash, but it ties up capital that could better be deployed elsewhere. Unless a dog has

some other strategic purpose, it should be liquidated if there is little prospect for it to gain market

share.

7.1.5. Zong SBUs

Post paid

Prepaid

Zong mobile

Zong USB

Zong postpaid has low market share of 15% and high growth rate of16% so in BCG matrix it

lies in quadrant of question marks.

Zong prepaid has high market share of 60% and high growth rate of15% so in BCG matrix it

lies in quadrant of stars.

Zong mobile has low market share of 20% and high growth rate of11% so in BCG matrix it lies

in quadrant of question marks.


Zong USB has low market share of 05% and no growth rate. So in BCG matrix it lies in

quadrant of dog.


7.2. SWOT Analysis

SWOT Analysis is to evaluate the business in the market and a strategic planning tool used to

evaluate the Threats, Opportunities and Strengths, Weaknesses, involved in a project or in a

business venture or in any other situation requiring a decision. This is an important tool which is

helpful to formulate strategy. This Matrix is an important matching tool that helps managers

develops four types of strategies:

SO Strategies (Strength-Opportunities)

WO Strategies (Weakness-Opportunities)

ST Strategies (Strength-Threats) and

WT Strategies (Weakness-Threats)

SWOT is defined precisely as follows:

Strengths are attributes of the organization that are helpful to the achievement of the

objective.


Weaknesses are attributes of the organization that are harmful to the achievement of the

objective.

Opportunities are external conditions that are helpful to the achievement of the

objective.

Threats are external conditions that are harmful to the achievement of the objective.

7.2.1. Steps for developing strategies:

There are eight steps involved in constructing a TOWS Matrix:

1. Analyze the external opportunities

2. Identify the external threats

3. Identify the internal strength

4. Identify the internal weaknesses.

5. Match internal strengths with external opportunities and mention the result in the SO

Strategies.

6. Match internal weaknesses with external opportunities and mention the result in the WO

Strategies.

7. Match internal strengths with external threats and mention the result in the ST Strategies.

8. Match internal weaknesses with external threats and mention the result in the WT

strategies.

7.2.2. Strength -- S

S.1. Resources

Being multinational company Zong huge resources in terms of capital. It has billions

of capital to invest in various projects. Its offices are luxuriously equipped with every

facility.

Zong while choosing people for jobs follow the strategy of choosing the best among

all therefore majority of its staff people are highly qualified from renowned

universities of Pakistan. Certain people are foreign qualified.

So far CM Pak has invested more than US$ 700 million in the telecom sector in

Pakistan and an additional US$ 800 million invested at the end of 2008.


S.2. Network Portability

Over 500,000 people have been switched to Zong from other networks

S.3. High Growth Rate

Above table shows clearly about the growth rate of Zong from December 2009 to January

2011. Almost in one year the market share is grew up by 2%. That is why it is also counted in

strength of zong.

S.4. Zong Mobile

Zong also offer mobile phones with very low prices and the SIM having balance of one year

(given every month). This is also very effective promotion for zong.

S.5. Strong Image of Parent Company (CM Pak)

Zong have a strong image of their parent company china mobile Pakistan CM Pak. That is

plus point for Zong.


Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Jan-110%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

6.9 6.9 6.7 7.5 8.5 8.9

18.8 16.3 16.9 17.2 17.5 17.6

22.5 23.3 23.8 23.8 24.7 25.1

18.5 18.8 19.5 20.2 20.3 20.4

30.8 31.5 32.2 31.4 31.8 32.1

MobilinkUfoneTelenorWarid Zong

S.6. Lowest rate nation wide

Zong provide lowest rates as compare to other telecom industry it’s a great thing which is

only provided by Zong.

S.7. Location And Geographical Coverage

Zong is also covering the all cities of Pakistan and in 2008 Zong completed its record

sites 1000 in Pakistan its great achievement.

Zong is covering the northern areas of Pakistan rapidly.

7.2.3. Weaknesses -- W

W.1. Bad Image of Paktel

Bad image of associate with Paktel. And still now having old staff of paktel.

W.2. Low Market Share

Till now zong have low market share 8.9% in January 2011. But the market share of zong

increasing rapidly from December 2009 to January 2011. Almost in one year the market

share is grew up by 2%.

W.3. Weak MIS

Zong does not have the proper lists of its customers. It has the list but this list is not authentic

which is increasing the unauthorized use of its SIM specially pre pay. Owner of SEP issued

sometimes unlisted numbers due to personal interest. So that is the weakness of ZONG.

W.4. Old Staff

ZONG has till now old staff of Paktek which is not very much efficient in this era to

technology. But now ZONG try to overcome this weakness by retiring the old employees

with golden hand shake to those employees.


7.2.4. Opportunities -- O

O.1. Globalization

ZONG can expand the globally and can develop it strategy in other countries.

O.2. Acquiring / Merger

As Warid is going in loss and in the condition of liquidations its big opportunity for Zong to

acquire Warid telecom.

O.3. Covering Pak China Border

Zong can cover the border of China, with the Karakoram highway (old Silk Route) and can

play a vital role in freight transportation.

O.4. Covering Northern Areas

China mobiles have huge experience of network operation in similar high mountainous areas

in china itself. So it is opportunity for Zong (CM Pak) to cover the northern areas of Pakistan

and get good image in the eyes of current users and potential users.

O.5. New Product

As above mentioned China mobiles have large experience of network so Zong can introduce

new products such as dish TV. Because Zong have good wireless technology e.g. ZTE,

Ericsson, Alcatel and Hawaii etc. So it is easy for Zong to introduce dish TV.

7.2.5. Threats – T

T.1. Old Stable Companies

1st threat for zong is old stable companies in Pakistan these have good brand image in the

eyes of customers.


The Mobilink GSM started operation in the year 1994

Ufone starts its GSM operation in Pakistan on January 29, 2001

Telenor acquired the license for providing GSM services in Pakistan in April 2004

Warid starts GSM cellular services in Pakistan and Bangladesh in October 2006

But Zong started telecommunication business in Pakistan On January 22, 2007

T.2. Attractive Packages By Competitors

Another threat for Zong is the attractive packages offered by the competitors but the best

example is Ufone there are so many packages offered by Ufone.

T.3. Price War

In Pakistan there is 5 cellular companies so that is why bargaining power of buyers is very

much high, so there is price war is also threat for new entrant Zong.

T.4. Economic and Political Condition of Pakistan

Economic and political condition of Pakistan is very bad so this is also threat for the

companies. Increase in taxes is also threat for the companies.

7.2.6. Strategies That ZONG Can Follow By SWOT Analysis

7.2.6.1. SO-Strategies

Matching the S.1. and O.4. Zong can expand their business.

From S.1. and O.3. they can use the strategy of acquisition.

7.2.6.2. ST-Strategies

Matching the S.1. and T.3. Zong can use the strategy of cost leadership.

Matching the S.1. and T.2. Zong can use the strategy of penetration.

7.2.6.3. WO-Strategies

Matching the W.3. and O.2. Zong can use the strategy of acquisition.

7.2.6.4. WT-Strategies




http://en.wikipedia.org/wiki/GSM


Matching the W.3. and T.2. Zong can use the strategy of downsizing.

7.3. PEST Analysis

In order to survive and remain profitable in today’s competitive marketplace, Zong need to be

able to react and adapt to changes in the external environment and ideally be proactive in

impacting these forces. External environment factors can be classified into five general

categories: competitive, social/cultural, legal, economic, political, and technological.

7.3.1. Political Factors

7.3.1.1. Political Instability

Pakistan is facing political instability causing danger for the telecom industry. But the political

factor does not effect on Zong so high because Zong related from china and relationship of china

and Pakistan is very strong.

7.3.1.2. Deregulation


The telecom sector of Pakistan has successfully liberalized in an efficient, transparent and fastest

deregulation of telecom in the region. The Government of Pakistan gave the status of Industry to

Pakistan Telecommunication Sector.

7.3.1.3. Changes in Tax Laws

Tax rates have been increased day by day government tax rate of call is 15% and recently

government increased it by 6 % more.

7.3.2. Economic Factors:

7.3.2.1. Gross Domestic Product

Telecom sector of Pakistan has a share of almost 2 percent in National GDP.

7.3.2.2. Average Revenue per User (ARPU)

The average revenue per user is falling. It does not affect value able on Zong. Because Zong

started in same condition.

7.3.2.3. Decline in Money Value:

The decline in Rupee value against the US Dollar, the decrease in the interconnect charges and

lower priced tariffs have resulted in an overall decrease of ARPU in US Dollar terms.

7.3.2.4. Outflow of Capital:

The ongoing economic turmoil along with the worsening of security conditions in Pakistan has

caused an increased outflow of capital from the country.

7.3.3. Technological Factors:

7.3.3.1. Technological Development:


Companies are investing in their infrastructure to not only expand but also to upgrade their

existing structure. As the competition is strong ZONG is focusing on its value added services

7.3.3.2. Technological Advancement:

Currently all companies are providing Multi-media Messaging Services (MMS), General Packet

Radio Service (GPRS), Virtual Private Network (VPN), Pocket Stocks, Conference Calling,

Wallpapers Animated pictures Polyphonic ring tones (WAP), and Voice Mail at low price.

7.3.3.3. Technological Trends

The well-recognized technology trends that are influencing the evolution of the network indicate

that:

The cost of a call is becoming even more insensitive to the distance;

The modularity of the network is increasing;

The switching off from one network to another is very easy;

The geographic boundaries are irrelevant for emerging technology;

The intelligence and function are moving away from the central office.

In these conditions competition is very strong among competitors. Zong is improving itself in

technology.


7.4. Porter’s Five Forces Model

Five forces looks at five key areas namely threat of new entry, power of buyers, power of

suppliers, threat of substitutes, and competitive rivalry.

7.4.1. Threat of Potential Entrant

As government of Pakistan is showing liberalism in case of telecommunication sector and

opened its policies to award new licensees to new mobile service providers so threat of

new entry is high.

7.4.2. Bargaining Power of Buyers

Power of buyer is high in telecommunication sector. There are five market players and

players are offering different packages at different prices and a situation of price war is

running. Buyers have a power to buy any package which is suited to them.

Cost of switching from one company package to other company package is low. Hence,

power of buyers is high.

7.4.3. Bargaining power of Suppliers

The power of suppliers is low in case of telecommunication sector.


7.4.4. Threat of Substitute

Government also gave so many land lines and wireless local loop licenses to different

companies like PTCL wireless local loop, GO CDMA, WORLD CALL etc. these

services in future will be like mobile phone services like they are planning to offer

services a lot but currently they are offering SMS and CLI services to their customers.

7.4.5. Rivalry Among Competing Firms in Industry

Currently there are five market players but in future they will the increased in number

because there is less barriers to entry the future expected satellite service.

Thuraya satellite service is offering subscribers freedom of mobility and uninterrupted

service. Thuraya's satellite technology supplements of existing mobile service providers,

overcoming the challenges of large geographical areas.


7.5. Competitive Profile Matrix (CPM)

Competitive Profile Matrix (CPM)

Critical Success Factors (CSF)

Weight Rating Weighted Score

Rating Weighted Score




Market Share 0.15 4.00 0.60 3.00 0.45 1.00 0.15 3.00 0.45 2.00 0.30

Growth Rate 0.10 1.00 0.10 3.00 0.30 4.00 0.40 3.00 0.30 2.00 0.20

Management 0.13 4.00 0.52 3.00 0.39 3.00 0.39 3.00 0.39 1.00 0.13

Coverage 0.10 4.00 0.40 3.00 0.30 2.00 0.20 2.00 0.20 2.00 0.20

CCS 0.15 4.00 0.60 3.00 0.45 3.00 0.45 3.00 0.45 1.00 0.15

Advertising 0.10 2.00 0.20 3.00 0.30 3.00 0.30 4.00 0.40 2.00 0.20

Brand Name 0.10 4.00 0.40 2.00 0.20 3.00 0.30 3.00 0.30 2.00 0.20

Packages 0.10 2.00 0.20 3.00 0.30 3.00 0.30 4.00 0.40 2.00 0.20

Price Competitiveness

0.07 2.00 0.14 3.00 0.21 3.00 0.21 3.00 0.21 3.00 0.21

TOTAL 1.00 3.16 2.90 2.70 3.10 1.79

The ratings values are as follows:

1 = Major Weakness,

2 = Minor Weakness,

3 = Minor Strength,

4 = Major Strength

As indicated by the total weighted score of 2.70, Zong is weakest. Because it is at its initial

position as compare to competitors. With the point of 3.16 Mobilink is leading. But Warid have

1.79 score so that is why there is a opportunity for Warid and Zong as well to merge their

business because Zong have great growth rate in the market and Warid is older in current market

so it is beneficial for the both Zong and Warid.


7.6. Number of Subscribers and Market Shares

7.6.1. Number of Subscribrs

Mobilink Ufone Zong Telenor Warid total

Dec-09 32,202,548 19,549,100 6,704,288 23,798,221 16,931,687 99,185,844

Jul-10 32,264,625 20,087,449 7,018,055 23,786,402 17,039,238 100,195,769

Aug-10 31,777,445 20,182,449 7,249,813 23,743,680 17,085,379 100,038,766

Sep-10 31,444,099 20,236,451 7,453,034 23,836,209 17,164,955 100,134,748

Oct-10 31,453,954 20,187,309 7,785,713 24,121,009 17,167,065 100,715,049

Nov-10 31,544,480 20,192,949 8,028,087 24,401,083 17,474,523 101,641,122

Dec-10 31,794,292 20,275,002 8,497,799 24,692,818 17,517,476 102,777,387

Jan-11 32,106,671 20,374,352 8,881,402 25,056,416 17,587,927 104,006,768

7.6.2. Market Share

Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Jan-110%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

6.9 6.9 6.7 7.5 8.5 8.9

18.8 16.3 16.9 17.2 17.5 17.6

22.5 23.3 23.8 23.8 24.7 25.1

18.5 18.8 19.5 20.2 20.3 20.4

30.8 31.5 32.2 31.4 31.8 32.1

MobilinkUfoneTelenorWarid Zong


7.7. Market Mix (4 Ps)

"Marketing Mix" is set of correlated tools that work together to achieve company’s objectives,

they are:

Product

Price

Promotion

Place

7.7.1. Product

Product means offerings of a company, and ZONG is offering its customers Services as well as

products. In services ZONG is offering followings:

Postpaid packages

Prepaid packages

Value added services

Postpaid packages are generally for business class and in postpaid ZONG are offering many

other packages like 100 line rent, 300 line rent, 600 line rent, 1200 line rent and 2000 line rent.

Prepaid packages are for low and middle class in prepaid ZONG also offer many packages like

12 Anny, 65 paisa, free package and Aik second package. And also many exciting value added

services like missed call alert, Ramzan value time offer, dial tune, happy hour and many more

exciting offers. And products like mobile phone.

7.7.2. Price

ZONG is offering its products and services at a low price so ZONG is using price penetration

because all the packages (postpaid and prepaid) are very low priced and also other value added

services are also very low in cost. Some of them are absolutely free of cost like:

Missed Call Alert

MNP


Conference Call

As Ufone is giving its customers Uth package and it charge its customer’s hourly rate but

ZONG gives its customers a package called location base charging it charge you only one

time charges and then whole day free and many more other.

7.7.3. Promotions

ZONG is promoting its products and services in many ways like:

Print media

Billboards

TV ads

Mobile Promotions

Internet

In print media print ads and newspapers are include if ZONG is offering something in a specific

place than ZONG use print media like print ads and newspapers. Billboards are use in all over

the country. On many TV channels Ads are promoting ZONG. Mobile promotions like in Multan

and Lahore when trucks and buses decorated with ZONG logos and advertising about LBC

(Location Base Charges) and Lahore unlimited offers. On many websites ZONG is promoting its

packages and offers and also ZONG has its own commercial web site www.zong.com.pk.

7.7.4. Place

Place means that how a company reach to its customers or how a customer can get product of a

company. ZONG is reaching to its customers in the following manners:

Franchises

Customer service centers

Retailers

Through Student Entrepreneurs

Franchises and customer service centers are there for customers and also customers can get

ZONGs products and services from retailers and student entrepreneurs.


8. WHAT I DID IN MY INTERNSHIP

8.1. Check Territory Sales Officer’s (TSO) activity in Market

This is also including in my working that I check the activity of the Territory Sales Officer’s

(TSO) in the market. My focus is on the salesman that either they come in the market on the

regularly basis or not. I also consider that how the salesman behaves with the shopkeeper and

compare the our TSO’s behavior with our competitors in the words of shopkeeper.

8.2. Check Stock Availability in Market

When I visit the market, then it is must for me that I ensure the Zong’s stock available in the

market or not. Stock related to:

Sim cards

Easy load

And the Zong cards

8.3. Brand Promotion

During my working in the market I also focus and consider the product display and brand

display. During this activity I also focus on the display of the brands that all brands are available

as well as properly display on the proper place.

8.4. Shopkeeper Claims

I go in every shop and asked from the shopkeeper that they have any complaint about the TSO,

about

Behavior of TSO is good or not

Is TSO visit market regularly or not

Either TSO provide the stock (SIM cards, Zong Cards, Easy Load) on time or not.

8.5. Say Welcome to The Customers in The Office


In this process there is a machine that provides receipt about customer’s arrival purpose there are

four different options on the machine that provide printed receipt to the customer

Postpaid information

Prepaid SIM activation/ change SIM packages/ SMS packages etc.

SIM blocking and SIM duplication

Others.

And provided receipt has a serial number on it, there is the screen that displayed the serial

number of receipt and that particular customer go that counter and ask about his/her problem.

And there is LCD TV available that entertained the customers.

8.6. Postpaid Billing Process and Term & Conditions about Postpaid Connection

There are some terms and conditions about billing procedure and collecting the bill, I have learnt

there how to collect bill and warning procedure and SIM blocking threats also to the customers

etc.

Terms and condition are as follows & Outgoing activity block

On reaching 90% of their credit limit, ZONG (CM Pak) will always notify its postpaid

users via SMS about their billing status.

On reaching 100% of the defined credit limit, the outgoing activity of our postpaid

customer gets blocked but incoming remains active for another 90 days. Line rent will

not be charged during this period.

On completion of another 90 days after outgoing is blocked, incoming will also get

blocked and thus the account will be completely blocked.

8.7. ZONG Number Booking Procedure and Number Activation Procedure

First book that number again go to telesales and choose NUMBER BOOKING menu than:

Enter the number which is checked


Now message will come

Number <31xxxxxxxx> booking OK. Please use HLR <x> SIM for activation.

Once the desired numbers is booked then go back to telesales menu and choose NUMBER

ACTIVATION and enter:

MSISDN (that number which was booked earlier)

ICCID (serial number of the SIM)

Name (customer name)

Address (customer address)

On successful procedure the successful message will come.

8.8. SIM Replacement Process

Customer walks in to replace his/her SIM following are the required steps to follow:

CSR will verify the customer as per verification parameters.

CSR will inform the customer about SIM replacement charges (if any).

CSR will fill CSAF and get it signed by the customer and attaches a copy of CNIC.

CSR will process the SIM replacement in their system.

CSR will hand over the customer copy and finance copy to customer and guide customer

to cash counter.

Cashier will get CSAF copies and payment from customer.

Cashier will record transition in system.

Cashier will hand over SIM and payment receipt to customer.

CSR will CSAF to data warehouse for filling.

8.9. Prepaid Sale Process

For the sale of prepaid connection following are the required steps:


CSR receive the customer request and required documents for prepaid connection and

verify customer as per the verification parameter.

CSR will ask the customer to provide CNIC.

CSR will fill CSAF and get signed by the customer.

CSR will hand over Customer & finance copy to customer and guide him/her to cash

counter.

Cashier will mark the cash paid stamp and sign the customer copy and hand over SIM

card and customer copy to customer.

8.10. Handset Sale Process

Customer walks in for the purchase of handset following are the required steps to follow:

CSR will guide customer about bundle deal of handset.

If customer agrees, CSR will ask customer to select the zong number form stock.

CSR will ask customer to fill CSAF.

CSR will guide the customer to finance counter for payment and handset collection.

Finance officer will perform the functions of system.

Finance officer will associate zong number with IMEI of hand set in system.

Finance officer will record transaction in system.

Finance officer will ask the customer to open the packing of handset to check if

accessories (handset + charger + warranty card) are complete.

Finance officer will take warranty card from customer and after signing and stamp, he

will hand over the warranty card and handset and customer copy to customer.

8.11. Cash Management

Cash in hand: Contains the closing balances of all the major Franchises and Sales

Centers of Zong. It is added to identify the amount of money that would come into the

bank accounts of Zong.

Details: The details contain the major bank accounts of Zong. These include the major

current and saving accounts in which major collection comes. There are more than 40


such different accounts. Furthermore some accounts are for specific purposes, for

example MCB account is used to pay commissions for the franchises and for vendor’s

payment and NBP-Mirpur is used to pay the taxes in AJK.

Liabilities: In this section, major liabilities for the month are recorded in the following

categories: commissions, payroll, and repayment of loans. The liabilities are updated as

needed, with amounts; bank used for paying off and date of payment.

Cheque Float: In cheque float, the major liabilities of different vendors are recorded.

They are divided into three different regions, which include Islamabad, Karachi and

Lahore. The intimidation of the cheque’s released comes from the accounts payable

department, while the clearance coming from daily bank statements. All payments of

vendors are made from MCB.

LC and IC’s: This section includes the Import Contract (IC) and Letter of Credit (LC)

payments that have to be paid out for the foreign transactions that take place with Zong.

The intimation comes from the Trade department of Zong Treasury.


9. FINANCIAL ANALYSIS

No company can remain in business if it cannot sustain and grow its profits and telecom

companies are no exemption. If Zong wants to remain the market leader in the mobile industry

and wants to satisfy its customers, it itself needs to remain a profitable company.

Zong is a Private Limited Company and due to this reason, its financial statements are not made

public. However it does provide its financial information to different financial institutions and

companies that have invested in Zong.

Financial information regarding the zong is given below

9.1. Operational Results

Description 2010 2009

Amount in PKR

Revenue/Sales 53,185,818,288 41,903,898,840

Profit Before Tax 5,232,193,340 5,529,544,507

Profit After Tax 3,113,745,313 3,075,294,451

Interpretations

As major portion of Zong is on prepaid basis, including SIM sales, securities and balance

recharges the revenues for Zong have increased from December 2009 to December 2010, this

increase is because of the large increase in the consumer base of Zong in 2010. The increase in

revenue has led to an increase in the profit before tax, and although the costs of services and

selling and administrative charges in 2010 have increased from the past year, the increased

revenue helped in offsetting the increase in the expenses.


9.2. Balance Sheet

Description 2010 2009

Amount in PKR

Fixed Assets 103,619,616,557 78,672,109,189

Current Assets 12,235,342,304 13,644,814,204

Total Assets 115,854,958,860 92,316,923,393

Current Liabilities 38,806,519,709 38,201,202,275

Long term Liabilities 59,405,946,034 41,898,730,907

Total liabilities 98,212,465,742 80,069,933,183

Shareholders’ Equity 17,642,493,118 12,246,990,210

Total Equities 115,854,958,860 92,316,923,393

Interpretations

Fixed assets are increased because cell sites are expanded and very large investment done on the

towers in different areas with low distance for the better signal and networks for the customer.

Due to above project a big capital is used so the shareholders equity is decreased and long term

liabilities are also increased from 41.8 Billion to 59.4 Billion.


9.3. Ration Analysis

9.3.1. Current Ratio

2010 20090.315 : 1 0.357 : 1

Interpretation

Current ratio measures how easily a company can pay off its current liabilities using its current

assets. For Zong although most of its revenues are on a prepaid basis but still the current assets

fall short to pay off the current liabilities in both 2009 and 2010. Furthermore the current ratio

has fallen in 2010, which again shows that there aren’t enough liquid assets to pay off the current

liabilities and may affect Zong’s solvency in the short term.

9.3.2. Total Assets Turnover Ratio

2010 200945.907% 45.391%

Interpretation

Total Asset Turnover shows how effectively a company uses its assets. That is using its assets to

generate sales. Most of ZONG’S assets are include cell sites and other equipment. As the above

table shows, the ratio has increased in 2010, from 45.391% to 45.907%.

Although the increase is very small, the major reasons associated are the sales increased more

than the assets. Total assets rose by 25%, while the revenue rose by 27%. The major reason for

the increase in the sales associated with the increase in the total subscribers in 2010, as compared

to 2009 e.g. total subscriber in 2009 is 6.7 million and in 2010 is 8.4 million.

9.3.3. Debt Ratio

2010 200985% 87%


Interpretation

The Debt Ratio measures the percentage of funds provided by sources other than equity. For

zong, most of its growth is funded through long and short term financing, and even though zong

has expanded its operations, but still the debt ratio fell in 2010, but only by 2%, which is mainly

because of the large increase in the total assets as compared to liabilities. Assets are increased by

25% and liabilities are increased by 23%.

9.3.4. Net Profit Margin

2010 20095.85% 7.33%

Interpretation

Net profit margin denotes the percentage of net profit from sales/revenue. Net profit margin in

decreased as compare to the previous year 2009 by 1.48%, but sales is increased in 2010 as

compare to 2009 the reason behind it the increase in operating expenses (selling expenses and

administration expenses). Because hired more new staff for ZONG.

9.3.5. Return on Equity Ratio

2010 200917.64% 25.11%

Interpretation

Return on equity measures the extent to which the shareholders of a company are getting returns

on their investments. The ratio for ZONG has decreased significantly in 2010, a decrease of

7.47%. This decrease can be associated to the small income available to the shareholder. Most of

the net income has to be paid out in financial charges, which leaves less or the shareholders,

which in 2008, expanded their investment in the company.



10. CONCLUSION

ZONG has strong financial position and growing very fast in the current position of the market

of Pakistan in which other companies growing very slowly or decreasing their market shares. As

we check in the market growth analysis ZONG increased its market share by 2% from December

2009 to January 2011. It is very big achievement for the ZONG because it is new brand in the

market. As ZONG become the favorite brand of the youngsters just because of its best prepaid

packages and the SMS packages we can say that ZONG can be a market leader after few years as

early it is growing. As all of we know that the other communication companies especially

UFONE providing the more and more packages for its customers ZONG also have to focus on it

and also provide more offerings to its customers. The best suggestion for ZONG to become more

favorite brand it should provide cheaper GPRS packages like ZONG GPRS daily free package

with some daily charges etc. ZONG have kept in mind that these points are for the better

progress in ZONG. And ZONG also have to use more promotion campaigns to increase the sale.


11. SUGGESTIONS AND RECOMMENDATIONS

After doing internship in the ZONG I have find out some deficiencies in the ZONG so if I

appointed as a manger I will suggest some following points to the ZONG

Voice clarity and call disconnection is the major issue of ZONG; this issue can be resolve by

installing new boosters in the different areas.

ZONG put emphasis on hiring young, fresh and energetic persons and firing the older ones

which is a good step for ZONG but beside this they should train their old and experienced

workers because human resources are the assets of the company, because after training that

old workers preform very as compare to the fresh workers.

In the ZONG’S SBUs, ZONG mobile should use strategy to provide the spare parts for the

ZONG mobile in the mobile markets, so customer can repair the mobile after the warranty,

due to this step customer will get more faith on China Mobiles.

ZONG have strong financial position, and buyer is more powerful in the current market

because he/she has more options so by using this option ZONG should follow the cost

leadership strategy e.g. it should provide cheaper GPRS packages like ZONG GPRS daily

free package with some daily charges etc.

China Mobiles have huge experience of network operation in similar high mountainous areas

in china itself. So it is opportunity for ZONG (CM Pak) to cover the northern areas of

Pakistan and get good image in the eyes of current users and potential users and ZONG can

cover the border of China, with the Karakoram highway and can play a vital role during the

journey from this border.


12. GLOSSARY

AMPS Advances Mobile Phone System

ARPU Average Revenue Per User

ATM Automated Teller Machine

B.C. Before Christ

BCG Boston Consulting Group

BTO Break Time Offer

CCSC Customer Care Service Center

CM Pak China Mobiles Pakistan

CMCC China Mobile Communication Corporation

CPU Central Processing Unit

CSAF Customer Service Agreement Form

CSC Customer Service Center

EDGE Enhanced Data rates for GSM Evolution

FDI Foreign Direct Investment

FM Frequency Modulation

FnF Friends and Family

GB Giga Byte

GPRS General Pocket Radio Services

GSM Global System For Mobile communications

HRD Human Resource Department

IT Information Technology

LBC Location Based Charges

LNO Late Night Offer

MB Mega Byte

MHz Mega Hertz

MMS Multi-media Messaging Services

MP Mega Pixels

OS Operating System


PKR Pakistani Rupees

PMCL Pakistan Mobile Communication Ltd

PTA Pakistan Telecommunication Authority

PTCL Pakistan Telecommunication Company Limited

SBU Strategic Business Unit

SEP Student Entrepreneur Program

SIM Subscriber Identification Module

SMS Short Message Service

UAE United Arab Emirates

USB Universal Serial Bus

VAS Value Added Services

VoIP Voice over Internet Protocol

WAP Wireless Application Protocol

Wi-Fi Wireless Fidelity


13. REFERENCES

http://www.zong.com.pk/aboutus_ccmc.html

http://www.zong.com.pk/about_us.html

http://www.zong.com.pk/index_value_added_page.html

http://www.zong.com.pk/vas_new_offers.html

http://www.zong.com.pk/packages.html

http://www.zong.com.pk/vas_gprs_edge.html

http://www.zong.com.pk/packages_sms_bundle.html

http://ecare.zong.com.pk:8080/aiecare/index.jsp

http://www.zong.com.pk/vas_zong_handsets.html


http://www.zong.com.pk/vas_zong_handsets.html

http://ecare.zong.com.pk:8080/aiecare/index.jsp

http://www.zong.com.pk/packages_sms_bundle.html

http://www.zong.com.pk/vas_gprs_edge.html

http://www.zong.com.pk/packages.html

http://www.zong.com.pk/vas_new_offers.html

http://www.zong.com.pk/index_value_added_page.html

http://www.zong.com.pk/about_us.html

http://www.zong.com.pk/aboutus_ccmc.html

Documents

Zong My Times New Roman With Table of Contents