final mobilink case

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Restructuring in Mobilink

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RECONSTRUCTRING IN MOBILINKSadia the human resource manager of Mobilink is sitting in front of window and taking the third cup of tea, she is worried over the decreasing motivation due to downsizing since from 2010 of the employees. The employees are not as committed as they used to be. The company has affected their morals and has created the job insecurity for the workers. The turnout ratio of the employees has also increased after the layoff process. It has increased up to 26% as compared to 16% since 2010 which is of serious concern for the manager.HISTORY OF MOBILINKPakistan mobile communications limited Mobilink, a subsidiary of Orascom telecom, started its operations in 1994, and has become the market leader both in terms of growth as well as having the largest customers subscribers base in Pakistan a base of over 28 million and growing. Mobilink pride ourselves on being the first cellular service provider to operate on a100% digital GSM technology in Pakistan that also provides state-of-the-art communication solutions to its customers. Mobilink offers exclusively designed tariff plans that cater to the communication needs of a diverse group of people, from individuals to businessmen to corporate and multinationals. To achieve this objective, Mobilink offer both postpaid indigo and prepaid Jazz solutions to our customers. Compared to our competitors, both the postpaid indigo and prepaid Jazz brands are the largest brands of their kind in the Pakistan cellular industry. Mobilink rebranded itself in 2004 with a new logo and slogan, Reshaping communication, while JAZZ also rebranded itself with a new logo and tag line of Aur Sunao. Additionally, Mobilink Star was also re-launched as Mobilink Indigo. In the same year, Mobilink World a collection of the most cutting edge value added services was launched and Mobilink reached the 5 million subscribers mark. Mobilink offers Pakistans largest distribution and contact centre networks and an unparalleled 6,500 kilometers of fiber optic backbone. At the same time, Mobilink places high importance to its coverage which they cover 10,000+ cities and towns nationwide as well as over 120 countries on international roaming service.

STATUS OF TELECOM SECTORIn 2003-04, More than 50 % of market share is owned by Mobilink which is now decreasing after deregulation and Ufone was to follow with a 16% market share. 2004, when license was awarded to Telenor and Warid, the market dynamics changed in 2005 with both the operators starting their operations. The market share of the existing operators started shrinking. In 2007, when China Mobile took over Paktel, which is now known as Zong, the competition in the market got tougher as it was expected that Zong with its strong backing of the worlds largest mobile operator China Mobile will give a tough time to the competitors in Pakistan. In terms of total subscribers during 2007-08 and 2008-09. Mobilink lost its share by 5.51% this year whereas the rest of the operators increase in their market share. Telenor has the second highest share in the market (22.2%) in terms of subscribers followed by Ufone (21%) and Warid Analyzing the market share of each operator by revenue, Mobilink remained the leader, again followed by Telenor and Ufone. During the reported year, all the companies lost their share in total revenue of the industry except Ufone and Zong. In 2009-2010 the Mobilink has a maximum share of 32% followed by Telenor and Ufone with 24% and 19.7% respectively. Comparing this year's market share with 2008-09 it is obvious that the share of Warid and Ufone have dropped by 1.9% points and 1.3% points. This drop in the share of Ufone and Warid has been taken over by Mobilink and Telenor whereas Zong maintains it share at 7%.Mobilink maintained its position as the leader in subscriber market with 30.7% share in 2011though its share declined by 1.8 percentage points compared to previous year when it was 32.5%.Market share of Telenor increased slightly to 24.5% at the end of June, 2011. The highest growth in market share for 2011 was shown by CMPak which managed to increase its share from 6.8% last year to 10% during 2011. Market shares of Ufone and Warid dropped again this year which were 18.9% and 16%, respectively. In 2012 Mobilink has decline to 29.9% at the end of 2012.CMPak achieve a market share of 14.4 % through its aggressive marketing in less than in start its operations in Pakistan. Warid is continuously decreasing its market share since 2009; currently it has the lower market share 11.2%.Ufone increase its market share by .10 % and its share is 19.9%.telenor also slightly increase its share from 24.5% to 24.9%. In 2013 Mobilink has now declined to 28.9% at the end of June 2013, whereas, Telenor was viewed as second largest player in cellular segment with market share of 26.1% followed by Ufone with market share of 18.6% and CMPak, with market share of 16.4%. Warid gradually has been losing considerable number of subscribers since 2008-09 and is currently lagging behind with lowest market share of 9.9% among all the cellular mobile operators see exhibit (1).

Marketing strategy:Mobilink is currently working on market oriented strategy. There are two main functions which Mobilink is currently enormously focusing.1. Cost management.2. Quality of services.Mobilink has been successfully built a superior relationship with their customers including consumers and corporate. Mobilink is focusing on quality products not the variety of product under a brand Mobilink is completely focusing on the need and wants of their consumers and providing them all their needs according to their desires. Especially Mobilink has a largest customer care centre than other service providers. Mobilink has 3 mainly customer service center. Mobilink has largest call centers in Pakistan. Promotion strategy:Where the all networks get jammed, the only Mobilink connects you.Mobilink is using different promotional mix like; Advertisement Personal selling Sales Promotion Direct Marketing In personal selling Mobilink is selling Mobilink indigo, Mobilink PCO, and Blackberry. Although the personal selling is two way communications so the Mobilink is communicating the features and the value added services of the Mobilink. These products Reshaping Lives Reshaping Lives actually need information by the customers so the Mobilink is using this personal selling campaign for its products

THE SWAP AND MODERNIZATION CONTRACTMobilink sign agreements the most advanced commercial with vendors like Huawei and Ericsson. The scope of these agreements includes installation of 3G compliant network. Mobilink planned to deploy the most advanced commercial WiMAX 16e network to meet the country`s increasing broadband needs. The network will cover central business districts and hot spots in the country`s six major cities, including Islamabad, Karachi, Sialkot, Faisalabad, Lahore and Rawalpindi. Under the terms of the contract, Huawei will provide Mobilink with a complete WiMAX network including base stations, an access service network-gateway and a network management system. WiMAX (Worldwide Interoperability for Microwave Access) is a telecommunications technology that enhances wireless data capabilities. The service will allow Mobilink to provide its subscribers with high-speed Internet access and services. It can also integrate Mobilink`s existing 2G networks with high-bandwidth capacity networks in the shortest possible time, the vendors were also be responsible to ensure maintaining network KPIs, power commitment, fuelling services, level 1 & Level 2 maintenance and managed services. Mobilink, as part of group strategy will outsource major technical activities. Including the design, purchase, deployment, and maintenance of next-generation mobile network equipment and supporting services, for the next 5 years.EMPLOYEES REACTIONA telephonic survey was conducted regarding employees reaction:Madiha lodhi (specialist) was working in Mobilink for 7 years and twice awarded as best employee of the year in my career and once best team award by the Zohair Khaliq. Promoted last year and this time around got more than 95 score in appraisal, terminated without any notice or ground preparation. Mobilinks appraisal system is rogue, vague and fake process. No feedback is given by the supervisors for improvement or warning for improvement until next appraisal. Companies are destined to fail when they do like this to their employees. Russians have not done well in Pakistan and outside their own country so how they can do well with Mobilink which was one of the profitable multinational businesses in the country with biggest human resource number. But those companies who dont value their employee dont get value in itself in the end.Usman Tahir had been working with Mobilink for more than 5 years and had always been devoted to my work. The work environment no doubt was good for working and I was going along well with my work. However the downsizing by Mobilink is really disappointing and unethical to be very honest. I have been laid off without any proper reason or without any fault on my side. To say that the company does not require me and my skills anymore is totally ridiculous. People had been here for more than 10 years working day and night and they do not deserve this behavior by any means. Exhibit (2) Afaq Ahmed (still working) The recent downsizing by the company in which they laid off many of their permanent employees is really a threatening policy by the company for the employees like me. Though I am still working with the company but I feel no security of my job anymore. I never know the coming day might turn out to be my termination day in the company. This is really de- motivating for the employees working and the company must provide assurance and security to their employees.In the first phase the companies laid off 150 employees from whom 120 were the contractual employees and remaining 30 were the permanent. So at that level motivation and commitment among remaining employees was not badly affected because the major portion of lay off was from the contractual employees. In second Phase Company laid off 90 employees in whom 8 were contractual based employees and remaining 82 were the permanent employees. Due to this phase the motivation level of employees was badly affected. They felt that there is no security of job in Mobilink. Some of the employees said that due to these kinds of lay off there is more chance to increase the unemployment level in the country. Company should manage the resources by making the contract of exchange resources.RESIGNATION PROCESSMobilink is freeing up its resources mainly from technical department by laying off over 100 employees in a single go. Administration is reasoning the lay-offs due to a restricting process of its technology division. As a result, the company said, certain operational areas had become redundant, whereas new functions have also emerged. Therefore, headcount is being reduced in areas that are redundant, whereas hiring of different skill set is underway. The company asked the employees to give resignations rather than terminating them. The reason they put up for resignation was that the company does not require their skills anymore. The employee who will give resignation will be provided benefits see exhibit (3) otherwise they would have to face the company in the court. Exhibits (4)PROBLEMS FACED BY MOBILINKMobilink is a multinational company having thousands of employees from different areas and having entirely different culture it faces a problem in its day to day business activities. Here are some connectivity issues; the temporary connectivity issue faced by Mobilink users was caused by software problem that occurs because of up gradation of systems in Lahore. Mobilink service was also affected after an exchange in Islamabad caught fire resulting in down time of services for almost a day. These problems caused serious effects on their customers. Mobilink in Lahore is a land office in Pakistan which deals to the whole Pakistan. There are millions of messages which come from customers and they have not enough time to read and reply, thus it may a major barrier of communication between customers and company. There is another problem regarding advertisement andmarketingwhich are the traditional and religious standards of Pakistan. Pakistan culture does not allow the marketers to make very bold commercial and signboards for their company because it is considered as very disgusting.Another problem which is faced byMobilinkin order to their advertising is the heavy rates of taxes in Pakistan. Due to these heavy taxes company can't assign much capital in the field of advertising andmarketing. All divisions of Mobilink specially northern and central divisions suffer damages of infrastructure due to flood in 2010.Mobilink infrastructure was hit with damages to over 400 sites out of a total of 8,070 sites. Quality of service is very important as far as mobile service providers, unfortunately there are complaints mobile users against the big market players especially. PTA is the only regulatory authority in the telecommunication industry, in the past PTA conducted a consumer survey to check the quality of service of mobile service providers. Mobilink has been fined for poor quality of service as compare to other market players. In this current situation Mobilink is now facing problems first of all in the customer satisfaction area because as Mobilink sold over capacity connections in the market and secondly with the entry of new market players that are Telenor and Warid a price war is going on and how target the new potential customers as well as satisfying existing one to retain its market position.CATEGORIES OF DAMAGE: Erosion of boundary walls and tower bases. Equipment damage due to water accumulation inside the site.(BSS, Trx, Power etc) Feeder cables damage due to settlement of cable bridge foundation support. Fiber cable Cuts on backbone and local fibers cables. Microwave Backhaul disruption Short circuits and power system damage including Generator damage In rare cases tower foundation settlement issues have occurred.

Exhibit (1)

Exhibit (2)

Mansoor Ali Shah

Past Operation Supervisor at MobilinkEducation Preston University Karachi University South City Institute of Management & Technology Mansoor Ali Shah, Manager at Mobilink GSM's Over 10 years experience of Customer Care (Contact Center & Operations) Overall 12 years of job experience in service industry Customer-focused and performance driven More than 4.5 years of experience as a call center Floor Manager position 6 Month experience as IRU (Investigation & Resolution Unit) Manager (Backend Support Department) Over 4 years of experience as a call center Operations Supervisor 1 year experience as a call center Administrator Excellent Analytical and Reporting skills Ability to examine problems effectively and suggest solutions Good Interpersonal skills Effective communication skills, both oral and written in Urdu and English Good team building and time management skills Computer literate (Proficient in MS office and Windows work environment)Kashif AliOperation Manager in MobilinkSpecialties: Good Analyst, People Manager, Good in Excel and PowerPoint PresentationsEducation Becon house school system Behria University Lead a team comprised of more than 200 employees Lumps University Overall 8 years of job experience. Lead a team comprised of more than 200 employees Over 6 years of experience as a call center Operations Supervisor 1 year experience as a call center Administrator Excellent Analytical and Reporting skills Ability to examine problems effectively and suggest solutions Good Interpersonal skills Effective communication skills, both oral and written in Urdu and English Good team building and time management skills Self-Motivated

Exhibit (3) Salary of 6 months

Mobile connection

Provident funds

Medical resistance along with parents

1300 cc cars for senior managers

TEACHING NOTESRESTURCHING IN MOBILINKSynopsis:Rashid khan the president and CEO of the company sign a contract with Ericsson and Huawei the agreements includes installation of 3G compliant network. The network will cover central business districts and hot spots in the country`s six major cities, including Islamabad, Karachi, Sialkot, Faisalabad, Lahore and Rawalpindi. The service will allow providing subscribers with high-speed Internet access and services. the vendors were also be responsible to ensure maintaining network KPIs, power commitment, fuelling services, level 1 & Level 2 maintenance and managed services for the next 5 years. Mr. Rashid khan makes a contract due to rapidly decreasing its market share. Company is outsourcing its major resources so the vender higher their own technical engineers so Mobilink downsize its technical staff because they dont need their skills anymore. Some of the employees quite the company due to the downsizing trend of the company. Some of the employees feel that they have no security of their jobs. They never know the coming day might turn out to be their termination day in the company. They will not go to court because in their contract paper one clause is mention that company can terminate any employee at any time.Suggested Asked QuestionsQ1: The collaboration of Mobilink with Ericson and Huawei help to increase the market share?Q2: Should employees join such jobs where their jobs will at employer choice?Q3: `How show Mobilink motivates its existing employees to words a better job performance?

REFERENCES:http://en.wikipedia.org/wiki/Mobilink, http://www.mobilinkgsm.com/about-us/http://www.pta.gov.pk/index.php?option=com_contentHYPERLINK "http://www.pta.gov.pk/index.php?option=com_content&view=article&id=361&Itemid=590"&HYPERLINK "http://www.pta.gov.pk/index.php?option=com_content&view=article&id=361&Itemid=590"view=articleHYPERLINK "http://www.pta.gov.pk/index.php?option=com_content&view=article&id=361&Itemid=590"&HYPERLINK "http://www.pta.gov.pk/index.php?option=com_content&view=article&id=361&Itemid=590"id=361HYPERLINK "http://www.pta.gov.pk/index.php?option=com_content&view=article&id=361&Itemid=590"&HYPERLINK "http://www.pta.gov.pk/index.php?option=com_content&view=article&id=361&Itemid=590"Itemid=590http://business-finance.blurtit.com/111157/what-are-the-marketing-problems-faced-by-mobilink-within-pakistanhttp://tribune.com.pk/story/129126/mobilink-experiences-network-problems/