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BRITS Education Excellence

BTEC Higher National Diploma

Business

Assignment Brief

Program Title & Number: BTEC HND /01 Unit Title & Number: Business StrategyLearner Name: Assessor name: Muhammad Zubair

Submission date: 12/01/2012 Assignment Title & Number: Craft strategies to achieve definedstrategic objectives of a company.

Assignment Scenario:

Studying current strategic directions of a company.

Doing environmental analysis to understand current and future environment.

Setting future directions in projected environment and purpose strategies to reach at future destination of the company.

Prepare a final report of your work.

Assignment Task:

Choose a firm.

Conduct PESTLE analysis of the firm and make its future environmental projections.

Craft its revised vision and mission statement congruent to projected environment.

Set strategic objectives consistent with crafted vision.

Purpose the strategies to achieve defined objectives.

Learning

outcomes

LO1 LO2

Assessment

Criteria

(1.1)(1.2)(1.3) (2.1)(2.2)(2.3)

Learners Name:___________________________ Receiving Date: 30/12/2011

Signature:_________________________________


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Grading CriteriaYou Could achieve the Passing Grade by meeting all requirements defined in above learning outcome portions appropriately.

M1:identify and apply strategies to find appropriate solutionsIdentification of strategic opportunities available in environment of the company.M2: select/design and apply appropriate methods/techniquesSelect method to conduct environmental analysis, crafting vision, mission statement and setting strategic objectives.D1: use critical reflection to evaluate own work and justify valid conclusionsPurpose strategies to achieve strategic objectives.

Note:

Make sure that your assignment is your own work and not copied from any other source.

You should approach the given deadlines to achieve objects.

Manage own rules and responsibilities.

Use the range of techniques and ideas appropriately.

Work and interact effectively with individuals and in a group. Show all references and source from which the information is obtained.

Assessor Name: Muhammad Zubair

Signature:______________________________________


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Task 1:

WARID TELECOMWarid Telecom is backed by theAbu Dhabi Group and is owned by Sheikh Nahayan Al-Mubarak Al-Nahayan. It is

one of the largest groups in the Middle East and the single largest foreign investor group in Pakistan.Abu DhabiGroup has diversified business interest in the institutions that have enjoyed commercial success as a result of itsstrong financial resources and extensive management expertise. The major investments ofAbu Dhabi Group inFinancial and Telecom sectors are shown in the following chart:In 2004, Warid Telecom International LLC, purchased a license for operating a nationwide mobile telephonynetwork, (WLL) and long distance international (LDI) for $291 million US dollars and was the first venture ofWarid Telecom International LLC.Waridstarted it services in Pakistan May 2005. Within 80 days of launch WaridPakistan claims to have attracted

more than 1 million users. It is ranked as the fourth largest operator in Pakistan.

Task 2:Political And Legal Factors:

The government plays an important role in the operation and manufacturing products and services in terms ofregulations. Following are some of the factors that could cause Warid brands to differ materially from the expectedresults. These are: Due to the unpredictable political and governmental changes rules and regulation are changed quite frequently.Currently government has increased the taxes in the telecommunication sector that will also a harder in the smoothoperation of Warid telecom operation. Before WTO implementation for deregulation of different sectors of the economy. Pakistan government took thestep to regulate the telecom sector by the authority of PTA. There are two types of Regulators held by PTA; thefirst is called the Economy Wide Competition Regulator as the Monopoly Control Authority. Also the politicalgovernmental rules can not be completely applicable in this sector due to the regulation authority of PTA. Now a days Pakistani environment is instable due to political clashes among political parties. Inside country warand drown attacks in north frontier areas. This political instability has led to uncertain environment in the country,

which is a threat for any business including Warid telecom.


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Environment of telecom is investor friendly and has great potential to gain profit. The mobile phone teledensitywhich had reached to 55.80 by the end of December. Still, it means that about half of the population may possessthe phone.In Pakistan, the total number of subscribers which had touched an all-time high figure of 90.52 million in October2008.

Due to huge budget deficit and low growth of economy government has increased the taxes in telecom sector.Pre-paid customers were charged 10 per cent withholding tax on every new load, which was deducted in advance.The customers were also paying 15 per cent sales tax on every call. However, the present government increased thesales tax from 15 per cent to 21 per cent for mobile users by declaring the mobile phone a luxury item. These kindsof threats are hindrance in the way of Warid brand.Economical Factors:

Economic conditions are influenced by political and government policy, being a major influence affecting thesecan affect the Warid telecom strategies. These can affect how easy or how difficult Warid telecom is to besuccessful and profitable in the economy.

Over all economic conditions are not very sound .The country risk of Pakistan goes to 3 which is alarmingsituation for Pakistan. Due to mistrust in the Pakistan environment the foreign direct investment has been declined.This is the thread for Warid telecom because not new investments in being carried out in this environment. Due to inflation the cost of doing business is also gone higher. Inflation remains the biggest threat to theeconomy, jumping to 7.9% in 2006 to 23.3% in first quartile of 2009. This increasing ratio will hurt the buyingpower of the consumers that will overall reduce the demand for the products. Pakistan has a growing upper class with relatively high per capita incomes. In late 2006, the Central Board ofRevenue estimated that there were almost 2.8 million income-tax payers in the country with 45 % people are livingon 2 $ per day.

The unemployment rate is going up and up with the increase of level of poverty that is reducing the buyingpower of the people that is threat for Warid brand.Social Factors:

The socio cultural environment summarizes demand and tastes, which vary with fashion and disposable income,provide opportunities and threats for Warid brand. As Pakistan is an Islamic country and people are very strict in case of Islam any thing against the philosophy ofIslam on either print or electronic media are treated as against Pakistan. Most of the people dislike anything extra-ordinary or something which sabotage their culture or subculture. Pakistani society is largely multilingual and

multicultural


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The Pakistani people are more social and want to remain in contact with other people. They celebrate lot offestivals like Jashn-e-Baharan, Eid Celebrations and other cultural festivals. On these festivals they make calls torelative and one of the key issues is sending SMS regarding the event. This will influence the demand for theWarid product Increasing globalization has amplified the influence of "Western culture" in Pakistan. The life style of Pakistani

people is changing rapidly. People are more conscious about status pat most all people purchase multimedia mobilephones.And also there is trend for Black berry sets by youth which will help in enhancing their product and services. The total population of Pakistan is approximately 16 billion. The population is increasing rapidly which increasethe number of cellular usage and help in projecting high profits.Technological Factors:

Advances in technology can have a major impact on business success. Technological change impacts socio culturalattitudes as well as on economy. Companies have technology with which they can compete in the Pakistan and now companies are investing in

their infrastructure to not only expand coverage but also to upgrade their existing systems. The current focus in cellular industry is coverage and establishing franchises which has a positive effect on theWarid brand Introduction of CDMA technology in the Mobile SIMS which is also an opportunity for the Warid brand. The latest technology of 3G mobile communications has been earmarked and PTA will soon be invitingapplications for 3G spectrum auction. This technology will increase operating capacity and revenues by usingHSPA technology.

Make its future environmental projections


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Craft its revised vision and mission statement congruent to projected environment.

Mission StatementWARID Telecoms mission isOur Mission Statement is to provide optimum level of support and care through our highly skilled and motivatedteam of professionals and through maximum network coverage and clear connectivity that we have committed to

provide.Vision Statement:WARID Telecoms vision isTo be the leading national communications provider with a strong international presence.

Future:

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