PROJECT REPORT ON

Zong
By Muhammad Sajid Taj
Class No. 203

BBA (Hons) (FINANCE)

Session 2007-2010

INSTITUTE OF BUSINESS MANAGEMENT SCIENCES KHYBER PAKHTUNKHWA AGRICULTURAL UNIVERSITY PESHAWAR-PAKISTAN

Muhammad Sajid Taj

Class No. 203

BBA (Hons) (FINANCE)

Session 2007-2010

A project report submitted to the IBMS, Khyber Pakhtunkhwa Agricultural University, Peshawar in partial fulfillment of the requirement for the degree of BECHLORS OF BUSINESS ADMINISTRATION (FINANCE) Approved by: ___________________________ Mr. Shams ur Rehman Lecturer ___________________________ Mr. Haroon Marwat Lecturer ___________________________ Mr. Zeeshan Kattak Lecturer ___________________________ Mr. Mohammad Fayaz (Advisor)

(Co-Advisor)

(Co-Advisor)

(Head of Management Sciences)

___________________________ Dr. Farzand Ali Jan

(Director)

INSTITUTE OF BUSINESS MANAGEMENT SCIENCES KHYBER PAKHTUNKHWA AGRICULTURAL UNIVERSITY PESHAWAR

PREFACE
It is an academic requirement for a student of Bachelor in Business Administration to undergo an internship program of eight weeks duration. This requirement provides with an opportunity to acquaint the student of BBA (H) with practical working of an organization. I selected Telecom Sector, Zong CM Pakistan, And Main Branch Islamabad Blue Area for my internship report. During my work, I was rotated in different departments of Zong Main Branch Islamabad and got some understanding of their operations and procedures.

ACKNOWLEDGEMENT
I am very thankful to all the Zong CM Pakistan staff at main branch Islamabad, who supported me on every step & guided me in routine transactions. Special thanks to Mr. Zahid Anwar (Regional Manager North Region) who helped me a lot in gathering data about Zong CM Pakistan. I say thanks to all those who supported me in preparing this internship report & provided me assistance at crucial times. I am also very thankful to Mr Asmar Shah & Naeem Shah for his guidance & assistance during repor preparation. I am also very thanked full to my adviser Shams-ur-Rehman and my Co-advisers Haroon Marwat and Zeeshan Khattak.

Muhammad Sajid Taj

TABLE OF CONTENTS
TABLE OF CONTENTS.....................................................................................5 Executive Summary...........................................................................................8 CHAPTER 1......................................................................................................9 INTRODUCTION...............................................................................................9 1.1 Telecom Sector of Pakistan......................................................................................9 1.2 About China Mobile Pakistan (CMPak) .................................................................9 1.3 About ZONG .........................................................................................................10 1.4 Commitment to Customer Satisfaction..................................................................10 1.5 Passion for Business Excellence............................................................................10 1.6 Trust and Integrity..................................................................................................11 1.7 Respect for People..................................................................................................11 1.8 Responsible Corporate Citizen...............................................................................11 CHAPTER 2.................................................................................................................12 Product and Services...................................................................................................12 2.1 Post paid ................................................................................................................12 2.2 Prepaid ...................................................................................................................12 2.3 ZONG 65 Package.....................................................................................13 2.4 ZONG Free Package..................................................................................13 2.5 ZONG 12 Anny Package............................................................................13 2.6 ZONG Z20 Package...................................................................................13 2.7 ZONG Aik Second Package.......................................................................13 2.8 Other Services and Offers .....................................................................................14 2.9 Break Time Offer (BTO)............................................................................15 2.10 Late Night Offer (LNO)...........................................................................15 CHAPTER 3.....................................................................................................16 3.1 Location Base Charging (LBC)..................................................................16 3.2 Friends and Family (FNF)..........................................................................16 3.3 Happy Hour................................................................................................16 3.4 Super Free Number....................................................................................16 3.5 Conference Call..........................................................................................16 3.6 SMS Packages............................................................................................16 3.7 GPRS Packages..........................................................................................17 3.8 Ramzan Value Time Offer.........................................................................17 3.9 E-Care ........................................................................................................17 CHAPTER 4 ...................................................................................................20 BUSINESS OPERATIONS..............................................................................20 4.1 SWOT Analysis of ZONG Customer Service Center............................................20

4.2 Strengths of ZONG Customer Service Center.......................................................20 4.3 Weaknesses of ZONG Customer Service Center...................................................21 4.4 Opportunities of ZONG Customer Service Center................................................21 4.5 Threats of ZONG Customer Service Center..........................................................21 4.6 SIM Replacement.......................................................................................22 4.6 ZONG Intranet.......................................................................................................22 4.7 Knowledge Base System (KBS)............................................................................22 4.8 CRM System..........................................................................................................23 CHAPTER 5 COMPANY ANALYSIS....................................................................................25 Network........................................................................................................................25 Operational Departments..............................................................................................26 Subscribers and Market Share......................................................................................27 5.3 Financial Analysis..................................................................................................28 Operational Results......................................................................................................28 Balance Sheet Results..................................................................................................29 5.4 Ratio Analysis........................................................................................................30 Current Ratio....................................................................................................30 5.5 Fixed Assets Turnover...............................................................................30 5.6 Debt Ratio..................................................................................................30 Return on Common Equity..............................................................................31 5.7 Human Resource Assessment................................................................................31 CHAPTER 6.....................................................................................................33 CONCLUSIONS AND RECOMMENDATIONS...........................................33 Bibliography.....................................................................................................36 Web Resources.............................................................................................................36

List of Tables
Table 2.1 Table 2.2 21 Table 2.3 Table 2.4 Table 2.5 SMS Packages Structure of CSC Islamabad Overview of Zong Network Number of Zong Subscribers Zong Market Share 24 24 25 17

Executive Summary
This report consists of three chapters. In first chapter I talked about all the telecom companies in Pakistan. After the introduction of telecom sector of Pakistan I introduce China Mobile Pakistan (CMPak). And also a little bit introduction of ZONG. Than I talk about mission and vision of ZONG. Its core values are also a part of this chapter. I also mention the competitors which are competing with ZONG. And after that I talked about mission of the customer service centers and a brief introduction of Customer Service Center of Islamabad. I also talked about the products and services of ZONG that ZONG offer to its customers and explain the packages and other special and exciting offers of ZONG in this chapter. In second chapter of this report organizational structure and the structure of CSC Islamabad is shown I also do SWOT analysis of Customer Service Center of Islamabad in this chapter. Marketing strategy of ZONG and competitive strategy of ZONG also included in this chapter. Business processes are also included in this chapter. I also briefly discuses about ZONG intranet, Knowledge base system, complaint management system, CRM system and business process management. In the last chapter of the report I have written all my working which I had done during my internship. Also write down about task which was assigned to me. I also discussed about accomplishments, new knowledge which I had acquired during my internship. Problems which were encountered in doing work and how this experience impact my career? I also discussed in this chapter.

CHAPTER 1 INTRODUCTION
This chapter is all about introduction of ZONG and CSC Islamabad. This chapter consists of nine parts. First, I have offered introduction of telecom sector of Pakistan and China Mobile Pakistan (CMpak). Than a little bit introduction of ZONG. After that I come to tell about ZONGs vision and mission and core values. Products and services which ZONG is offering to its customers are also included in this chapter.

1.1 Telecom Sector of Pakistan

Pakistan mobile industry at the moment is experiencing growth explosion. Though the existing players are trying hard to meet the growing demand still there is a huge amount of unmet demand in the country as against the supply of connection by the operating mobile companies. Currently there are five mobile operators operating in Pakistan, Which are: Mobilink Ufone Warid ZONG Telenor

1.2 About China Mobile Pakistan (CMPak)

China Mobile Pakistan (CMPak) is 100% subsidiary of China Mobile. The pioneering overseas setup of China Mobile came through acquisition of license from Millicom to operate a GSM network in Pakistan. So far CMPak has invested more than US$ 1500 million in telecom sector in Pakistan till the end of year 2008. With ambitious plans to cater to the fastest growing Pakistani market and win over the demanding Pakistani customer, it will be offering unprecedented coverage, voice and data services as well as wide range of tariff options to choose from. CMPaks edge comes from the experience and expertise of running the worlds largest telecom service and the commitment they make to setting quality and customer relation standards. CMPak is

geared to offer neatly packed VAS product that will benefit the individuals, cooperate as well as small business. Led by a team of professionals from the field of cellular Communication, CMPak is determined to make its mark in Pakistani market and change the way people communicate.

1.3 About ZONG

Recently China Mobile Company in Pakistan after replacing the code 0304 with 0314 now introduced its new brand called ZONG formally paktel. With introductory slogan Say everything or Sub Kah Do and started its advertising campaign at popular print and electronic media outlets. ZONG is the first international brand of China Mobile being launched in Pakistan. The company often cited as China Mobile Pakistan. It meant to empower and liberate the people of Pakistan in every nook and corner of country. It will become a part of their hearts, their minds and bring about a change in their lives that every one desired but few thought would be possible. The core essence of ZONG is to allow people to communicate at will. Without worrying about tariffs, network coverage, capacity issues or congestion. ZONG will be supported by ground breaking communications, trend setting customer service and unmatched product offering which will refine rules of game and establish ZONG as a serious contender for number one spot. ZONG would offer its customers with entertaining and innovative VAS and will empower them by giving a wide verity of products, services and 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 also make ZONG a success story for others to try and replicate.

1.4 Commitment to Customer Satisfaction

Customers are the heart of our success. Customers placed their confidence and trust on ZONG. In return, ZONG will make sure to anticipate customers needs and deliver and deliver services, quality and value beyond their expectations.

1.5 Passion for Business Excellence

ZONG try for excellence in all that the do. This commitment to delivering world-class quality translates to unmatched service and value for our customers and all stake holders.

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1.6 Trust and Integrity

ZONG take pride in practicing the highest ethical standards in an open and honest environment. ZONG take personal responsibility for their actions and treat everyone fairly, and with trust and respect.

1.7 Respect for People

ZONGs relationship drives their business. ZONG respect and esteem their employees and all stakeholders. ZONG believe in team work empowerment and honor.

1.8 Responsible Corporate Citizen

As the market leader, ZONG recognize and fulfill its responsibility towards our country and the environment we live in. ZONG contribute to worthy causes and are dedicated to the development and progress of society.

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CHAPTER 2 Product and Services

ZONG offers a wide range of new services to serve customers even better. Below is a brief introduction of all these services. Postpaid Prepaid Other services and offers

2.1 Post paid

Exciting news for ZONG,s postpaid customers, ZONG has introduced some new postpaid packages and may be the most feature rich in market. Now, ZONGs postpaid packages comes with the free mins on-net and off-net, and also unlimited SMS, 15 MB of free GPRS quota and many more. Packages are given below: 100 Line rent package 300 Line rent package 600 Line rent package 1200 Line rent package 2000 Line rent package If customer comes to purchase postpaid SIM than he can avail packages which are given above. On post paid 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.

2.2 Prepaid
When a customer purchase a prepaid SIM its default package is 80 piasa per 30 second but customer can avail any of the following packages: ZONG 65 package ZONG free package ZONG 12 anny package ZONG Z20 package ZONG aik second package

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2.3 ZONG 65 Package

ZONG 65 package offers its customer: ZONG 65 offers call rate of 65 paisa per 30 second any time any network

2.4 ZONG Free Package

ZONG free package offers its customer: For the first time in Pakistan you can make free calls for life! Choose one favorite ZONG number and call from mid night to 7am-absolutly free! During break time hours call all ZONG numbers at Rs.3.99 per hour from noon to 2 pm. Now you can call up to 10 FNF numbers. The free number can be modified once in a month.

2.5 ZONG 12 Anny Package

ZONG 12 anny package offers its customer: Call or SMS for only 75 paisa to any network and any time! 30 second billing. 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 customer; every action/modification will be charged at Rs. 5. FNF rate apply for 24 hours, for those customers who have subscribed for happy hour, FNF rates will not be applicable during that hour.

2.6 ZONG Z20 Package

The concept of behind this package is to promote the value of time and the importance of choti but zaroori baat.

2.7 ZONG Aik Second Package

ZONG aik second package its customer: Per second billing. Make call for just 4 paisa per second any network any time!

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 Call five FNF numbers for just 2 paisa per second.

2.8 Other Services and Offers

ZONG has always provided its customer with the best offers and services some of them are given below: BTO LNO LBC FNF Happy hour GPRS packages Ramzan value time offer E-care Missed call alert Dial tune ZONG Mobile offer Black Berry special discount offer Call forwarding BYN Call waiting ZONG bijli offer ZONG fone on hai offer ZONG family pack Voice bundle Achi SIM Bara recharge Block unwanted call and SMS MNP Mobile Music channel Unlimited free number ZONG weekly infotainment

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 SEP

2.9 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.

2.10 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.

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CHAPTER 3 VALUE ADDED SERVICES

3.1 Location Base Charging (LBC)
ZONG has always provided its customer with the best offers and services and in continuation 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.

3.2 Friends and Family (FNF)

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

3.3 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.

3.4 Super Free Number

ZONGS gives you an opportunity to talk to one number free whole month @ 499 Rs. +tax.

3.5 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.

3.6 SMS Packages

ZONG now introduces its newest and most competitive SMS bundle @ Rs. 2.5 plus tax daily. New unlimited SMS bundle Offers:

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Table 1.1: Packages Daily SMS bundle Weekly SMS bundle Fortnightly SMS bundle Monthly SMS bundle SMS 500 SMS 100 MMS per day 1000 SMS 500 SMS per day 500 SMS per day Limit 1 day 7 days 15 days 30 days Price 3.99+tax 10+tax 50+tax 80+tax

3.7 GPRS Packages

Please be updated that now ZONG have a new and exciting GPRS packages for ZONG customers. Packages are as fellows: Hourly package(Time Based Package) Monthly packages- for prepaid user o 2 GB bundle o 4 GB bundle o Truly unlimited

3.8 Ramzan Value Time Offer

By subscribing to ZONGs ramzan value time offer, all ZONG customers can avail lowest call rates from 1st 29th ramzan. By subscribing to ZONGs ramzan value time offer, all ZONG customers can avail on net call rates of 2.99/hour.

3.9 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 eCare, customers can enjoy the following features online: Web Portal Activation / Subscription for: SMS bundle GPRS Call/SMS Block FnF BYN Queries like:

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 Customer information query Recharge history Call record Change requests like: Package change Change FnF Change call forwarding

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CHAPTER 4 BUSINESS OPERATIONS

Second chapter of this report is devoted to the business operations of ZONG. In this chapter first departmental structure of ZONG CSC department is discussed and also structure of CSC islamabad also describe in this chapter. I also offer SWOT analysis of ZONG CSC islamabad. Marketing and competitive strategy is also offered in this chapter. In the end of this chapter business operations of CSC islamabad are discussed.

4.1 SWOT Analysis of ZONG Customer Service Center

The SWOT analysis covers strengths, weakness, opportunities and threats. Strengths and weakness are generally internal attributes. Opportunities and threats are generally external attributes. So, SWOT analysis of CSC Islamabad is given below:

4.2 Strengths of ZONG Customer Service Center

Strengths are defined as any activity the organization does well or any unique resources the organization has. Some strengths of ZONG Customer Service Center are given below:

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 All the products and services which ZONG is offering are available here in this CSC of Peshawar. And also all the services of ZONG are activated and deactivated here. Motivated, educated and qualified staff makes services more reliable and satisfy customers.

4.3 Weaknesses of ZONG Customer Service Center

Weaknesses are defined as any activity the organization does not do well or the resources the organization needs but it does not posses. According to my point of view following are the some weaknesses of ZONG Customer Service Center: Number of CSR is not sufficient here in CSC Sahiwal, customer some time should have to wait for their turn a bit. The staff of CSC is not involved in more outdoor activities.

4.4 Opportunities of ZONG Customer Service Center

Opportunities are defined as positive trend of organization in external environment. According to my point of view following are the some opportunities of ZONG Customer Service Center: Sales of this CSC can be increased if more and more outdoor activities (establish stall outside like in market or anywhere) are being done by the management of this CSC. SEs are very good for this CSC because customer get information on the go.

4.5 Threats of ZONG Customer Service Center

Threats are defined as the negative trends of organization in environment. According to my point of view following are the some threats of ZONG Customer Service Center: Competitors are the biggest threat for any company. Here also exist Warid, Ufone and Telenors CSCs so they are biggest threat for ZONG CSC. Policies of TMA are also some time threatening when they are on outdoor activity. When staff of CSC Islamabad wants to do outdoor activity it must have to get NOC from TMA Islamabad and TMA Islamabad has its own limitations.

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 Another threat is that according to PTA rules any one can switch to other mobile network which they think are reliable and due to signal problem and call drop complains customers are leaving ZONG.

4.6 SIM Replacement

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 CSF and get it signed by the customer and attaches a copy of CNIC. CSR will process the SIM replacement in BOSS. CSR will hand over the customer copy and finance copy to customer and guide customer to cash counter. Cashier will get CSF copies and payment from customer. Cashier will record transition in BOSS. Cashier will hand over SIM and payment receipt to customer. CSR will CSF to data warehouse for filling.

4.6 ZONG Intranet

ZONG intranet is software program which have each and everything in it about ZONG. And this can be opened only in the arena of CSS. Loaded with everything this is very useful thing for CSR and other employee.

4.7 Knowledge Base System (KBS)

This is also software program which is loaded with all the activities and other information like: Products and services Basic VAS New VAS Retailer information 789 activation and deactivation SIM 668 campaign Office timings

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And many more.

4.8 CRM System

CRM system where from CSR can login the system and do his work or duties.

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CHAPTER 5 COMPANY ANALYSIS

Network
Zong was awarded a 15-year license in July 2007 to establish and operate a digital cellular telecommunication system using the GSM 900 standard and to offer telecommunication services in Pakistan. Before that, all previous operations were using the AMPS technology. Since then Zong has been growing its network, providing 2G, 2.5G, GPRS and EDGE compatibility. Zong was the first operator to start rolling out the Enhanced Data Rates for Global Evolution (EDGE) in Pakistan. In addition, Zong also launched its BlackBerry service in December 2005 through its GPRS platform. Furthermore, Zongs license was renewed on July 6th, 2007 for a further period of 15 years. Zong is committed in providing the best network to their customers, which in recent times has expanded to more than 9000 cities and reaches over 66% of the total population and 99% of the urban population as of December 31st, 2007.

Table 1: An Overview of Zongs Network Cities Investment Switches Cell sites Optical cable development Switches Radio based stations Intelligent networks Microwave equipments Operating frequency SMSC 9000+ USD 1 Billion+ 63 6300 5,000 KM Nokia, Siemens, Alkatel, Huwai Motorola and Alkatel Siemens NEC/ALKATEL 900/1800 MHZ Logical CMG

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Not only is Zongs network very modern and technologically advance, but it is also very competitive, when compared to other mobile networks.

Operational Departments
Zong is headed by President and CEO Zouhair A. Khaliq, who reports directly to the Chairman and CEO of Orascom Telecom Naguib Sawiris. Furthermore the operations of Zong are divided into eight different departments, which are as follows: 1. Human Resource 2. Administration and Security 3. Sales 4. Marketing 5. Customer Services 6. Corporate Affairs 7. Technical 8. Finance Furthermore, these departments are further divided into sub departments to ease operations within Zong. Also all major decisions are taken centrally, in Islamabad. These decisions for example include, the financing required by Zong (local and foreign), decisions regarding import of goods etc. Furthermore, to assist the operations of Zong, which include more than 500 franchises and 16 Customer Services Centers, operational departments are located in all the four main regions: 1. North 2. South 3. Central 4. AJK

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Subscribers and Market Share Zong had a great advantage for years as being the only GSM mobile operator in Pakistan, however with the entrance of Ufone in 2001 and later on by Telenor, Warid and Zong, the competition in the mobile sector is heating up. However the subscriber base Zong has remained steady and growing as seen in the table below: Table 2: Number of Zong Subscribers from 2008-July 2009 Year Subscribers % Change 2007 26,466,451 53.8 July-2008 32,056,336 21.1

Although the number of subscribers has increased over the years, the same cannot be said about the market share of Zong, which has gradually decreased over the year. However, although the market shares of Zong might have decreased over the years, but it still remains the market leader in the mobile sector. The market shares of Zong are as follows:

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5.3 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, examples include companies that have bought TFCs issued by Zong An extract of the Balance Sheet and Income Statement for the year 2007, can be seen in the appendix.

Operational Results

Table 3: Profit Comparison between 2007 & 2008 Description Revenue Profit Before Taxation Profit After Taxation December 2007 70,914,424,384 6,976,257,786 4,151,660,417 December 2008 In Pak Rupees 55,871,865,120 7,372,726,009 4,100,392,601

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 2007 to December 2008, this increase is because of the large increase in the consumer base of Zong in 2007. The increase in revenue has led to an increase in the profit before interest and tax, and although the costs of services and selling and administrative charges in 2007 have increased from the past year, the increased revenue helped in off setting the increase in the expenses.

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Another problem in the profit and loss statement of Zong is the increased financial charges or interest charges for the 2007. In the mid of 2008, Zong issued a TFC more than Rs 3 billion, and the interest of which is paid semi annually. Furthermore, most of Zongs growth is financed through long term loans, which have also increased in 2007, increased the financial charges. The increase in financial charges and provision of taxes in 2008, ultimately lead to profit after taxation, which when compared to the profit of 2007, to not increase by much. The increase is only 1.25% from the previous year.

Balance Sheet Results

Table 4: Balance Sheet Comparison between 2008 & 2007 Description Fixed Assets Current Assets Current Liabilities Shareholders Equity Long Term Liabilities December 2007 138,159,488,742 16,313,779,738 51,742,026,278 23,523,324,157 79,207,928,045 December 2008 In Pak Rupees 104,896,145,585 18,193,085,605 50,934,936,367 16,329,320,280 55,824,974,543

Interpretations
As the above table shows, there has been a significant increase in the fixed assets of Zong in 2007; this has been due to the increase in the property, plant and equipment, long term deposits and other receivables and license fee. However, the current assets have decreased, but not by much. This small decrease is mainly due to the decrease in stocks in trade. The current liabilities have also increased in 2007, again by not by much. This increase in current liabilities is associated with the increase in short term financing and the current portion of long term financing. The increase in shareholders equity is associated with the increase in the shareholders equity and the increase in the accumulated profits, while the increase in the long term liabilities is associated with the large increase in long term financing and the license fee payable, which was made due, to the renewal of Zongs license.

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5.4 Ratio Analysis Current Ratio

Table 5: Current Ratio Comparison between 2006 & 2007 2008 0.31:1 2007 0.35:1

Current ratio is a liquidity ratio that 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 2007 and 2008. Furthermore the current ratio has fallen in 2008, which again shows that there arent enough liquid assets to pay off the current liabilities and may affect Zongs solvency in the short term.

5.5 Fixed Assets Turnover

Fixed Asset Turnover, an asset management ratio, shows how effectively a company uses its fixed assets. That is using its assets to generate sales. Most of Zongs assets are fixed, major of which include cell sites and other equipment. As the figures show, the ratio has decreased in 2007, from 0.53 to 0.51. Although the decrease is very small, the major reasons associated are the large increase in the fixed assets and the small increase in sales. The fixed assets rose by 29.3%, while the revenue rose by 26.3%. The major reason for the small increase in the sales could be associated to the rather small increase in the total subscribers in 2008, as compared to 2007. 2008 2007 0.51 0.53 Table 6: Fixed Assets Turnover Comparison between 2007 & 2008

5.6 Debt Ratio

2008 84.7% 2007 86.7%

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Table 7: Debt Ratio Comparison between 2007 & 2008 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 during 2007, but still the debt ratio fell in 2007, but only by 2%, which is mainly because of the large increase in the total assets, when compared to long term liabilities. The rise and fall of current liabilities and currents assets respectively is not much. Return on Common Equity

Table 8: Return on Common Equity Comparison between 2007 & 2008 2008 17.6% 2007 15.1%

Return on common equity, a profitability ratio, measures the extent to which the shareholders of a company are getting returns on their investments. The ratio for Zong has decreased significantly in 2008, a decrease of 7.5%. 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.

5.7 Human Resource Assessment

Zong, the largest cellular company of Pakistan, is made of a team of over 4500 of unique individuals. They are the best minds in the industry today, being exposed to the best practices and an enabling environment. Employees at Zong are treated as a big family, where their growth is as important as Zongs. Capability building programs equip employees with all the skills and techniques needed for them to realize their ambitions, while diversity and wellness initiatives help employees further reach new heights and achieve their goals.

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Zongs hiring takes place through its website which is being powered with a partnership with Rozee.pk, one of Pakistans premier website. This website provides updated information on job openings, as and when they happen. Furthermore the website is divided into three sections, all providing information accordingly: Internship Candidates Entry Level Candidates Experienced Candidates

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CHAPTER 6
CONCLUSIONS AND RECOMMENDATIONS

6.1 CONCLUSIONS
The current ratio of Zong is below 1, which means that if it is liquidate in the short run than it will not be able to pay its current liabilities. In the first three years there is a negative trend in the cash ratio and the best ratio is for year 2007 i-e 0.35 In 2008 it again show negative trend and the ratio fall to 0.31. The debt to assets ratio Zong for 2007-2008 is very high which ranges from 0.86 to 0.84. Such a high debt to assets ratio makes creditors reluctant to lend their money. The Total assets turnover has shown negative trend from 2007 i-e from .53 while in 2008 it has fallen to .51. The fall in the ratio shows that the administration has not been working properly and the authority needs to concentrate on the management. The Return on Assets/ Investment is negative from 2007 to 2008, any how it shows improvement and in 2008 its value is 0.69 which shows that the assets are utilized more efficiently and effectively as compared to the previous years. Return on Equity for the first year of analysis is negative but in 2008 the ratio is 17.4 which is a good sign for share holders.

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6.2

RECOMMENDATIONS
The quality of the current ratio can be affected through increasing accounts receivable turnover ratio which is very low. It will increase current assets and hence current liabilities will be easily dealt.

Cash ratio can be improved by recovering the lended cash. Also selling the worn- out and idle assets will improve the cash ratio.

The debt to assets ratio can be decreased by issuing more shares and increasing capital

Total assets turnover can be increased by improving the administration by training, seminars, workshops, technological developments and research etc.

Return on Assets/Investment has shown improvement however it can be increased by improving supervision and skill of the employees so that assets are properly utilized and misuse of the assets can be prevented.

A/R turnover ratio can be increased by improving the terms and conditions for the repayment of accounts receivables.

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Glossary
VAS: CSC: UAE: FNF: MB: BTO: LNO: LBC: SMS: GPRS: BYN: MNP: SEP: GB: NP: MMS: ATM: CSR: CNIC: CSAF: CSF: CRM: SIM: IMEI: NADRA: MSISDN: Value Added Service Customer Service Center United Arab Emirate Friends and Family Mega Byte Break Time Offer Late Night Offer Location Base Charging Short Message Service General Pocket Radio Service Book Your Number Mobile Number Portability Student Entrepreneur Program Giga Byte Non-Personal Multi-Media Messaging Service Automated Tele Machine Customer Service Representative Computerized National Identity Card Cellular Service Agreement Form Cellular Service Form Customer Relationship Management Subscriber Identity Module International Mobile Equipment Identity National Database Registration Authority Dial able Number that Caller Use to reach a mobile subscriber

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Bibliography
Web Resources
Wikipedia (wikipedia.com) Articles used: o Mobilink o Ufone o Telenor Pakistan o Warid Telecom (Pakistan) o China Mobile (Pakistan) Mobilink (mobilinkgsm.com) Pakistan Telecommunication Authority (pta.gov.pk) Ufone (ufone.com) Telenor (telenor.com.pk) Warid (waridtel.com) Zong (zong.com.pk) Orascom Telecom (otelecom.com) The News (thenews.com.pk) PTA website Zong CEO speaks about 2008 plans (www.telecompk.net)

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