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ORGANIZATIONAL MANAGEMENT AND ORAGANIZATINAL ANALYSIS ON ETISALAT

Group Members:
Abubakar Barau Gafai Fatima Adamu Balanti Kafiya Mubarak Abubakar Sadiq

Presented to: Dr. Shura Course ID: MGT200

Internal Analysis:
Introduction to Managerial Decision Affected by Etisalat Culture
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Planning: The risk Etisalat took when it opened was very high because there
were already two other competitors like Vodafone and Mobinil so Etisalats plan was to develop new offers that make them distinguishable from other competitors. Etisalat was the first telecom operator in the region to introduce a mobile phone service and they were one of the early adopters of GSM technology and 3G in 2003 and recently blackberry. Etisalat did an environmental scanning on people using Mobile phone before opening in Egypt which helps them to know that people can agree to a third telecommunication corporation. Organizing: The autonomy designed into employees job is less, because Etisalats employees work mostly in a team(group) than individually. Etisalat is among the well organized corporation because in all the department of Etisalat they interact with each other very well. Etisalat is the 6th largest company in the Middle East and 140th in the Financial Times Top 500 corporations in the world. Leading: In Etisalat managers are concerned with increasing employee job satisfaction, because when employee job satisfaction increases, the companys success increases in turn. The leadership form in Etisalat are very appropriate and therefore successful. Controlling: Etisalat allow their own employees to control their own actions, which makes to innovate, develop, and be responsible for their own individual actions although sometimes mangers have to interfere to control some of the works done at certain point of time. Using such techniques, Etisalat increases its employees performance as well as their evaluations.

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Organizational Culture Of Etisalat


Vision: Their vision is of a world where peoples reach is not limited by matter
or distance. People will effortlessly move around the world, stay in touch with family, making new friends as they go as well as developing new interests. Business of all sizes no longer limited by distance will be able to reach new markets. Innovative technologies will open up new opportunities across the globe allowing the supply of new goods and services to everyone who wants them. Mission: Etisalats mission is to extend peoples reach as stated in the slogan. At Etisalat, they are actively developing advanced networks that will enable people to develop, learn and to grow.

Dimension of Organizational Culture of Etisalat


1. Attention to Detail: Attention to detail in Etisalat is high, because, Etisalat cares about every single detail like follow up which means the company keeps in touch with their customers in many ways like offering many offers that are suitable for their customers. Etisalat also provide a catalog attached with all its SIM card for informing customers how to operate it in their mobile phones and other informations like service numbers like credit enquiries and customer services etc..Etisalat also has a website which has online stores and service providers hosted within the website, which are operated by the third party merchants. They may also request information on several elements of Customer service. User feedback is vital, appreciated and enables Etisalat to enhance the Quality of customer service Etisalat provides. All these services and other services make the customers delighted as well as attracts more customers and this is due to Etisalat attention to details and their knowledge of what customers want what make them delighted. 2. Outcome Orientation: Etisalat outcome orientation is low, this is because Etisalat does not look for profit only but also for the customers expectations that will pamper their expectations. Also, Etisalat is new in Egypt therefore, it has to exceed customers expectation and to beat the its competitors Vodafone and Mobinil, which are competing too by more offers, discounts and new services to satisfy their customers. Etisalat also needs more attention from the people in the region to attract people to them, so they make a lot of advertising to attract customers to Etisalat from all around the areas where its services are able to reach. 3. People Orientation: The people orientation in Etisalat is high. People working in Etisalat work under one condition which is to achieve the organizational goal. Also, there are many factors affecting the people working in Etisalat Company such as, suitable working environment which has a great impact on the employees by making them work efficiently and friendly with each other. Also salaries earned b the operating staff is a factor great importance that greatly affects people orientation in the company because salaries are not suitable, chances of employees efficiency to decrease is likely high. The third important factor is the incentives that employees get provided with, incentives must be high in order to encourage staff to work. These factors are all achieved by Etisalat in order to increase and attain the highest level of people orientation. They provide special offers to their employees, to improve their working mood and provide a sense of satisfaction in their work. Example of these offers is like giving ever new employee a special number for their personal use, as well as

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increasing the cost per minute for each employee. These offers and more makes people orientation in Etisalat relatively high. Team Orientation: Team orientation in Etisalat is high because, its employees prefer to work in groups rather than individuals so, they achieve many goals in that field and reach the important goal of the organization easily and which makes people deal with Etisalat because of its good and strong offers which are available for everyone in the country either poor or rich, for businessmen or youth and children. Etisalat had succeeded through making a well entertainment which had an important role in the success of any organization(mainly funds), this leads to every home in Egypt and all over the Arabic world using Etisalat telecom. Aggressiveness: This is low, because no organization can succeed when its employees are competing between each other. In Etisalat the employees are really helping each other and cooperating with each other to achieve the organizational goal and to build a higher and higher brand name than it is now. Stability: Stability is high due to the large size of Etisalat organization and the top managers of this organization take the right decisions of its customers and its employees, and also due to huge funds Etisalat has the important source of funds to any organization and Etisalat specially is the advertising which attracts new customers, there are many successful reasons and facts that help the organization to grow, and that is what Etisalat did. Etisalat did not depend on only one way to grow but other factors that affect Etisalat are constant external cash flow and the support of local governmental establishment like the Egyptian post authority. Innovation: Its is high. Etisalat offers a range of innovative services to help the individual and the enterprise. In 1982 Etisalat was the first telecom operator in the region to introduce mobile phone service, and was one of the early adopters of GSM technology introducing it to its customers in 1994. It also introduced 3G and MMS IN 2003 and most recently Blackberry service in 2006. Mobile users enjoy the benefits of excellent voice and data applications such as WAP, GPRS, 3G, MMS, Blackberry services and others and because Etisalat is ranked by the Middle East magazine as the 6th largest company in the region in terms of capitalization and revenues, so they have to be more innovated and creative to make risks while developing new ideas and to facilitate things to people and to attract more customers and to build a very strong relationship with their customers and these will be done b doing new or having new things or offers for the customers.

EXTERNAL ANALYSIS:
Competitors
Mobinil the first GSM operator in Egypt and Vodafone which is the second GSM operator in Egypt are the only two competitors for Etisalat in the Egyptian GSM market. Whereas Etisalat was free to roam in the deserts of the U.A.E until Integrated Telecommunications Company du the second GSM provider in the U.A.E popped up to share Etisalat its emirates revenues. Etisalat entered the Egyptian market to face two large operators where in the U.A.E it became a competitor after monopolizing the market for years.

Competition in Egypt
MOBINIL: IN 1988 Egyptian Company for mobile services(ECMS) with its three shareholders France telecom, Orange telecom, and Orascom telecom established Mobinil as the first GSM operator in the Egyptian Market, providing 16milllion Egyptians with its services. Orascom telecom acquired 47.2% of the corporation. VODAFONE: Click GSM which is now called Vodafone started as a joint venture between Vodafone, Airtoch, and the local partners (Raya telecom and Telecom Egypt).Vodafone is an international brand name in the world mobile communications industry with operators in 25 countries and a consumer base of some 65 million subscribers worldwide of which more than 13.3 million are in Egypt. Vodafone currently hold a 60 percent stake in click. Competition between the three operators has put downward pressure on prices, particularly on interconnection fees. Vodafone was the first to introduce prepaid services despite of the presence of Mobinil and Etisalat. The tariff structure and connection of the three GSM service providers are very similar. However the telecommunications regulatory authority maintains strict control over the movement of tariffs charged by the three companies.

Competition in the U.A.E


Emirates Integrated Telecommunications Company in the U.A.E ended Etisalats GSM market monopoly in 2005, the company has an authorized, issued and paid up capital of 4billion AED. The company is owned 40% by the Federal Government ,40% divided equally between Mubadala Development Company and TECOM investment and the remaining 20% owned by public shareholders. The company trades on the Dubai Financial Market(DFM) under its trade name du.

Governmental Issues
The Government may impose some factors on telecom companies other than rules and regulations that can affect the organization directly in terms of profit and other financial issues. Taxes are one of these major factors. Taxes imposed affect the companys pricing of its services which increases costs for the company, forcing it to raise prices of its services, In Egypt, reducing telecom industry taxes allowed the telecom companies in Egypt to reduce prices in their services and draw more users to GSM services. Thus, making the Egyptian telecom market an attractive one, this was one of the cause that attracted telecom industries to Egypt to obtain the third operator license. Etisalat won Egypts third GSM operating service license for a license fee of 2.90billion USD. In addition to this enormous license fee Etisalat is to pay the Egyptian Government 6% of its revenues instead of the 3% minimum that the government had stipulated. There has been an introduction by the Government of a charge of development tax of 1% for the development of the telecom industry. Etisalat is not obliged to pay any taxes, for its taxes are inclusive of all its fee expenses, this is an advantage for Etisalat since it doesnt have any expense but at the same time it may be a disadvantage since the government partially shares Etisalats profit instead of collecting from them. Etisalats majority is owned by the U.A.E government as Etisalat monopolizes the telecom till 2005 so there was no tax liabilities till its monopoly ended. The government shares in Etisalat is reduced because of the introduction of the second telecom company. This enhanced a 40% tax on profits from both companies, this tax is not yet applied by the government since the authorities are still considering the current situation of the market to attract more investors to the market, no taxes may be applied at all on any mobile telephone company till 2020.

Shareholders
Etisalat majority is owned by the Government of U.A.E with a 60% holding of the shares. Individual U.A.E shareholders hold most of the remaining 40%although some foreign investment funds have managed to find ways of owning Etisalat shares, according to a recent report by the Economist Intelligence Unit .The major shareholders of the 40 percent owned by individuals are Humaid Al Tayer with a 15% share, and a 25% share for all remaining shareholders of which 12 percent goes for Sultan AlShamsy, one of the leader business men in the U.A.E. and the remaining 13% for Rashid Al Mazro'oey, owner of one of the U.A.E's major real estate companies Al Mazro'oey corporation.

In Egypt Etisalat Misr is actually owned by Etisalat with the majority of shares counted to be 66% as well. The rest is divided between Mawarid Finance of the U.A.E by a share of 4% Egyptian National Postal Organization 10%, National Bank of Egypt 12% and Al Naboodah investment of the UAE 8%. Mohamed Al Neaimi Mawarid Finance's CEO stated that Emirates Telecommunication Corporation (Etisalat) is playing a tremendous role in leading the development of the Egyptian Telecommunication market and has succeeded in attracting 1 million customers in the first 50 days of its operation. He added that such anticipation is not a dream but rather the conclusion of the policy which Etisalat carries and setting a target of reaching 10m subscribers in Egypt by 2010, a market share of 30%. These are the shareholders in Egypt who run the Etisalat Misr or the Etisalat in Egypt. Etisalat's ambitious strategy to be among the top 10 telecom operators in the world by 2010 has led the corporation to an array of acquisitions during the past two years. Etisalat also owns shares now of 35% in Etihad Etisalat - Mobily (the second GSM services provider in Saudia Arabia), 40% in Canar Telecommunications (the second fixed-line network in Sudan), 34% in fixed-line and mobile telecom services provider Zanzibar Telecom in Tanzania, 50% in pan-African mobile operator Atlantique Telecom (operates in six countries in Africa), 26% in Pakistan's largest telecom company Pakistan Telecommunication Co.

Technological Issues

Technology is a very important aspect in the basic structure of any telecommunication company. Technological advances are taking place on a daily basis, where all communication companies have to catch up and remain up to date. These advancements range from standing networks for data transfer up to satellites orbiting the entire network coverage region in order to enhance the data transmitting process.