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Business Environment

Dialog Telecom PLC




11/21/2011

Dulaj Silva.
Nadeen Fernando.
Ruwinda Samarajeewa.
Suren Wijeratne.


CONTENTS..
Contents
Acknowledgements ..................................................................................................................................................3
1.1 .............................................................................................................................................................................4
1.1.1 ......................................................................................................................................................................4
1.1.2 ......................................................................................................................................................................4
1.1.3 ......................................................................................................................................................................4
1.1.4 ......................................................................................................................................................................4
1.1.5 ......................................................................................................................................................................5
1.2 .............................................................................................................................................................................5
1.3 .............................................................................................................................................................................6
o Power Interest matrix. ..................................................................................................................................6
o Power Dynamism matrix. .............................................................................................................................8
1.4 .............................................................................................................................................................................9
1.5 .......................................................................................................................................................................... 11
o PESTEL analysis. ......................................................................................................................................... 12
o Michael Porters 5 Force Model. ............................................................................................................... 13
1.6 .......................................................................................................................................................................... 14
1.7 .......................................................................................................................................................................... 17
1.8 .......................................................................................................................................................................... 17
1.9 .......................................................................................................................................................................... 18
1.10 ........................................................................................................................................................................ 19
o Business ..................................................................................................................................................... 22
o Product ...................................................................................................................................................... 22
o Process ....................................................................................................................................................... 22
o Business ..................................................................................................................................................... 22
o Product ...................................................................................................................................................... 22
o Process ....................................................................................................................................................... 22
1.11 ........................................................................................................................................................................ 23





Acknowledgements..

We would like to thank the HR Manager of Dialog Telecom PLC for his time and the
effort he put into giving us the information that we need to complete our assignment.
We would like to thanks our Lecture, Mr. C.A. Kankanamge.
We would also like to thank our parents for the time and advice they gave us to
complete the assignment.
And all the persons who were not mentioned but gave their effort to make this
assignment a success.








1.1 Business profile of Dialog Telecom PLC.
1.1.1 Vision of the company;
To be the undisputed leader in the provision of multi-sensory connectivity resulting
always in the empowerment and enrichment of Sri Lankan lives and enterprises.
1.1.2 Mission of the company;
To be the most admired Company in Multi-Sensory and related business by providing
our customers quality products and services all the time.
1.1.3 Goals and Objectives;
Our objective is to provide digital technology access to a larger population of people,
including traditionally marginalized segments. This goal flows from the Company
vision to be the undisputed leader in the provision of multi-sensory connectivity
resulting always, in the empowerment and enrichment of Sri Lankan Lives &
Enterprise. Our focus in CR is to enrich the nation through inclusion, through a multi-
faceted approach, ensuring we reach out to as many as possible.
1.1.4 Organization structure;
Board of Directors

Chairman Independent Non Independent Group chief
Non executive non executive Executive


CEO of Dialog Tele-Info Structure


Technology Customer Financial Marketing Commercial & Information
Manager Officer Officer Manager Programming Officer
Manager

Cooperating Financial
Officer Controller






1.1.5 Main Operations

Communication => Internet
Fixed Wi-Fi
Transmission Service
Home Satellites (Dialog TV)
TV Broadcasting

CSR => Environment Protection
Donations
Employee Benefits
External Audit


1.2 Composition of Stake Holders.

A stake holder within the company consists of local institution investors, foreign investors and
local retail investors. As indicated below diagram.



As of 31
st
of Des 2010, there were 22,931 stake holders. And some of the stake holders of the
company are;

Axiata Investors (83.32%)
Sri Lanka Insurance cooperation (0.92%)
HSBC / BBH genes is smaller companies (2.35%)
Taprobane Holdings LTD (0.20%)
Commercial Bank of Ceylon (0.20%)

Note Stake Holder Analysis methods that can be used identify Key people groups of people and
companies that can influence of companys success or failures.

1.3 Power Interest matrix and Power Dynamism matrix of Dialog Telecom PLC.

Note

o Power Interest matrix.





Stakeholders are categorized on a graph rating their level of interest against the power they
possess to exercise those interests. The stakeholders in this way are broadly divided into four
groups; low interest/low power (A), high interest/low power (B), low interest/high power (C)
and high interest/high power (D).

Group A
The company may require little or no effort to be focused on this group. The stakeholders pose
no threat due to a lack of both interest and power.

Group B
This group, although having a high interest, has little power to exercise control so they can be
maintained through the management of information to keep them informed of company events.

Group C
This group may or may not realize the degree of effect they have over the company and
therefore must be kept satisfied. However, because of their low interest in events, they are
unlikely to cause significant disruption.

Group D
The company must try to satisfy this group first and foremost as they have the power to affect
the company and a high degree of likelihood that they will use their power.





















o Power Dynamism matrix.

Note
Classifies stakeholders in relation to the power they hold and their aptitude for action (dynamism). Can
be used to indicate where political effort should be made before instigating change


Stakeholders in groups A & B: are the easiest to deal with.
Stakeholders in group C: are important because they are powerful. But low dynamism means their
reaction is predictable and expectations can be managed.
Stakeholders in section D: Need most management attention because they are powerful and reaction is
difficult to predict. May need to trial new strategies with them.







1.4 Sustainability Report of Dialog Telecom PLC. (CSR)

Note The CSR is about how companies manage the Business processes to produce an overall positive
impact on society.
(By Mallen Burker; 1
st
published 8
th
June 2004)



Customer satisfaction of Dialog Telecom PLC

Dialogs customer satisfaction surveys provide a means for customers to articulate their
experiences about our services including areas which need improvement.

Maintaining Charity.

# Privacy protection.
# Insuring health and safety.
# Protection of Minors.

Preserving Planet.

# Material management.
# Controlling paper consumptions.
# E bills and Summery bills.
# Employ constructions to going green.
# Energy saving.
# Energy optimization.
# Green house gas (GHS) imitations.
# Water consumption.
# Protecting bio diversity.
# Climate change.





Community Relations.

# Empowering dialogs retail network.
# Dialog net.
# Public policy.
# Shaping sustainable policy.

Our (Dialogs) People.

# Employ diversity.
# Promoting equality in work place.
# Employ benefits.
# Employ turnover and retirement plans.
# Employ development.
# Insuring health and safety of employs.






1.5 External Scanning of Dialog Telecom PLC.

Note External environment Forces outside. An organization which cannot be controlled by the Top
management.

External Environmental variables.

Egs: Interest rates, Money supply.




Egs: New products. (3G Sim cards)




Egs: Tax laws.



Egs: Life style changes.





In Dialog Telecom PLC;

Opp. Threats.

# Merging with Axiata Investors. # Other telecommunication
companies. (Etisalat,Mobitel ...etc)

# New services. # Slanders from other companies.







Economic Forces that regulate
exchange.
Technological Problem solving
inventions
Political/ Legal Forcers that allocate
laws and regulations.
Socio culture Forcers that regulate
customers of society.
o PESTEL analysis.




















o Michael Porters 5 Force Model.




















1.6
To conduct an internal environment audit we have to analyze a few models such as Michel Porters
Value Chain, BCG Growth Share Matrix, Product life Cycle Approach, Benchmarking and
McKinseys 7s Framework, but we will be focusing on Michel Porters Value Chain and BCG Growth
Share Matrix. Michel Porters Value Chain describes a model that is used to identify the Core
Competencies of the company. When saying Core Competencies it means identifying the comparative
advantage the company has over the other competing firms. In this case it would be what advantage
dialog has over its competitors such as Mobitel, Airtel and Etisalat which are its main competitors. In
the value chain there are 2 categories such as supportive activities and primary activities, in primary
activities there are sub categories such as inbound logistics, operations, outbound logistics, marketing
and sales and services but because Dialog is a service oriented company there are no tangible activities
so inbound logistics, operations and outbound logistics dont apply, as Dialog is a service oriented
company they fulfill 2 categories which are marketing and sales and services.
Marketing and sales: in dialog they have two main packages, post paid and pre paid, under those they
have several packages that can be ordered by any customer based on their necessity, they also have
promotions on and off for prizes to encourage customers to either switch to dialog or to take part in
promotions, it keeps the customers and the company in good relations.
Services: dialog has a good customer service center that is dedicated to serving the customers needs,
they also have different options that the customer can choose from, such as weather forecasts and news
updates.
Also in the Value Chain there is a category called supportive activities, they are firm infrastructure,
Human Resource Management, Technological Development and procurement. Infrastructure meaning
the general management, basically to develop the organization what are the things needed.
Procurement which is the purchasing of inputs, Technological Development which is developing the
processes and products wither newer and better technology. Human Resource Management means the
training, development, hiring of new staff in dialog. There is many staff that is needed for the
organization to work properly such as administrative staff, customer relations staff members, sales
representatives etc.






The BCG Growth Share Matrix basically analyses the products of the company, to see whether they
help the company gain profits or whether they need to stop that product as it creates losses. In the
matrix there are four categories they are cash cow, dogs, question mark and stars. The symbolism of
these images will be explained. The matrix helps organizations understand how their products stand in
the market and what they can do to develop them and make them better, to see how much cash they
should invest in a product or to discard the product altogether. By developing these products it can
lead to a competitive advantage over the rival organizations.
Cash cows they are the products that have the highest market share, they make abnormal profits for an
organization in a slow growing market. Because of the abnormal profits organizations love to keep
these products going for as long as possible. The cash cow products are at the pinnacle. All products
aim to become a cash cow.
Dogs are products with a low market share in a slow growing market. These products generate just
enough money to sustain the business. These products are good if the organization intends to stay in a
particular position in the market, where they are not at the top and not at the bottom.
Question mark products are not favored by any organization as they only bring in problems. They
develop fast and consume a lot of money to sustain them; because of this they have a low market share
and thus dont bring enough profits into the organization.
Star products have high market share and they are in fast growing markets, these products are the
closest to becoming cash cows, they cost a bit more to produce but will be good for the organization in
the future.
When considering dialog in the BCG Growth Share Matrix there is a problem as they are a service
oriented organization, but if we are to consider the services then they have many services that will fit
into the above categories. They have 4 products, Mobile connections, Fixed Line connections,
Broadband connections and Satellite TV connections. Under each of these connections there are
packages that the customers can choose from based on their needs and wants. By selecting the main 4
products and comparing them to the BCG Growth Share Matrix mobile connections would be the Cash
Cow, The Star would be Broadband connections, Dogs would be the TV connections and the Question
Mark would be the fixed line connections.





















By looking at the information provided above we can say that the strength of dialog is its marketing
and services. They provide many services and drive to be the best in the market. Their marketing
strategies to expand to the rural areas are good strategies because then they will get more business and
there will be more coverage in the island. The weakness of dialog would be their diversification. They
need to keep improving and creating products that will satisfy the customers constantly. As there are
many competitors in the market they need to keep the leadership by developing and expanding into
new markets and also focusing on market segments. They are doing this but not enough, they are the
market leader in the market and so they dont do much to develop and diversify their products, we find
that this is their let down.
1.7

SO strategies - move to untapped areas
ST strategies - introduce new technology and services
WO strategies - increase efficiency in business processes and supply chain of the company
WT strategies - benchmark with strong competitors













1.8
Michael Porters Generic Strategies are diversification/differentiation, cost leadership and market
segmentation. Diversification and cost leadership are both very broad in scope where as market
segmentation is very narrow in scope, diversification is differentiating the product so that it gives the
organization a unique product and also adds to the core competencies. Cost leadership is adapting the
pricing based on the customers willingness to spend. The organization becomes very price sensitive.
Market segmentation is identifying which market segment the organization will be focusing on. All
these strategies all help to create core competencies, to be better than their competitors. Dialog uses 2
strategies diversification and cost leadership, diversification because they have adapted to the market in
Sri Lanka and understood what they needed, so they not only specialize in mobile connections but now
they specialize in broadband, TV connections and fixed lines, because of this they are not targeting any
market segment, they are looking in the broad scope where they can penetrate further if needed to.
They also use cost leadership mainly with the mobile connections and broadband connections, they
attempt to reduce the price slightly but not by a lot, they depend on the brand name that they have
created to show reliability and coverage, because of this they have penetrated all markets. They are
mainly focusing on the diversification strategy, now they are expanding to the more rural areas of Sri
Lanka to get more customers and more coverage island wide. The mobile connection market has
already been taken by dialog so all they do now is expand the coverage and better signals so basically
customer satisfaction. By expanding to the rural areas and implementing cost leadership they are saying
that any person can own some product of dialog, Rich or poor everyone can have dialog products.

























1.9
The strategy that we have decided to focus on is market penetration. As there are losses in the company
they are trying to market their existing products in the same market.











1.10

Finance
Choosing and securing the right type of finance for your business is essential.

There are many different types of finance available - each of them designed to meet different needs.
This tool can help you by providing a personalized list of the most suitable finance options for your
business.

Businesses are most likely to gain funding through a combination of finance options, rather than a
single source.

Also, it is important to be aware that to attract most forms of funding, a comprehensive business plan.
Cash flow is an area that will be closely watched as is your payment record with other creditors so it is
important the business is prepared before seeking finance.

Example of a business plan




















Human resource methods of dialog

Dialog Telecom is running and continuously updating with enhancements of Micro-image HCM
platform (HRIS) since 2001.
HRIS is used by the entire DTL group which consist of 4000+ staff
Customized Training and Development Module to manage high volume of training and development
activities
Customized performance management system with SMART integration
Utilize the Micro image HCM Employee Self Service Platform to deliver many HR services to its
dynamic workforce.
High utilization of Micro image HCM Mobile Employee Self Service.




















Resource Requirements
For the long term plan it is sufficient to use the forecasts used in your business plan.
The Mini Plan - the One Year Operational Plan
Your mini plan is all about implementation - what actions you need to take in the short term to
move towards your long-term objectives. It is more budget-focused, with costs being set against
marketing objectives.
It is suggested that you follow the layout of the long term plan, however you do not need to
reproduce the background work you have carried out in the audit and used for market
background etc.
Start the plan with your objectives for the year, and follow with the strategies you will be
Dialog Telecom PLC | Business Environment 22

adopting to meet those objectives. You can then support the strategies with detailed action plans,
showing timing and costs. You should also consider adding a contingency plan - what
assumptions have you made, and how would you deal with the situation if the assumptions prove
incorrect.
It may then be appropriate to include a section on financials, demonstrating the effect your
marketing activities will have on revenues and profitability.
Finally, you should include a master spreadsheet, detailing when key activities start and finish,
and how they dovetail into one another

Operational
A statement of operational requirements is a document that contains information on what a
business needs to complete tasks. The term closely relates to the engineering definition of a
requirement, which is a documented need for the performance of products or services.
Businesses use this concept in the product management phase. Product management is the
function that coordinates all the activities in a product's life cycle, from start to finish.
Business
Business requirements are often one inclusion in a company's statement of operational
requirements. This requirement dictates what a product accomplishes for the company. Most
products add value to a business through sales to consumers and other businesses. Many
companies review their product lines and minimize products that have smaller market shares or
do not generate enough value for the business. Business owners and managers may set business
or operational requirements that outline a minimum value for each product to bring to the
company.
Product
Product requirements are the individual characteristics or traits of items sold to consumers. These
requirements are often distinct to each good or service a company produces. Business owners
create a statement of operating requirements for products based on consumer preference or
demand for a particular good, such as a computer or automobile. Product requirements
commonly come from business requirements. Owners and managers typically desire products
that meet the goals of business requirements so they can economic add value to the company.
Process
Process requirements represent the tasks and activities needed to complete the production,
accounting and sales processes related to products. Companies develop processes to produce
consistent products, both in quality and in quantity. These requirements ensure the company can
maintain its competitive advantage against other companies in the economic marketplace. A
company may closely hold these statements of operational requirement if they represent a unique
set of activities that other companies cannot duplicate during the production process.
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Dialog Telecom PLC | Business Environment 23

1.11
Executive summery
Market penetration is the strategy that we will be focusing on, an existing product in the existing
market. Dialog has been facing losses in the mobile connection industry so we are focusing on
advertising the present product in an attractive way.
Vision of the company;
To be the undisputed leader in the provision of multi-sensory connectivity resulting always in the
empowerment and enrichment of Sri Lankan lives and enterprises.
Mission of the company;
To be the most admired Company in Multi-Sensory and related business by providing our
customers quality products and services all the time.
Because of the losses faced by the economic crisis people are not purchasing dialog mobile
connections so its time to use market penetration to re enter the existing market and promote our
services. The financial backing will come from our partnership with axiata and the profit gained
from the previous years.
The key points that help our company prosper is
Our locations of our outlets
Our reputation as a reliable company
Our skilled staff to provide excellent service
The business plan will include a Company Summery, Operations Strategy, Marketing Strategy,
Finance Strategy, Management Summery and a Forecasted Financial Statement.

Company summery
Dialog is a diverse company with several services to benefit the consumers, such as
telecommunications, fixed lines, broadband connections and TV connections. The company
consists of 4000+ staff with several outlets island wide in the major cities to provide the
customer service and sales for the customer. We have the largest coverage network in the island.
We are the market leader.
Some of the operational strategies are to introduce new packages into the present market to
attract more customers based on their needs and wants. Presenting the current products
differently to attract more customers. To create packages for specific categories [couple
packages, business packages, seasonal packages etc.] expanding into the rural areas.
Dialog Telecom PLC | Business Environment 24

At the moment we have a competitive edge over our competitors as they havent diversified their
products; we have low cost packages that cater to all sectors of the market. We have very good
customer service such as on call customer service and walk in customer service; our locations are
easily accessed for quick service.


Services
3G connections
4G connections
Per second billing
Per minute billing
IDD packages
Post paid
Pre paid

Management summery
The company will create an environment that will stimulate personal development and career
development. It will conduct training and development programs that will create a specific skill
set that the employees will need to excel in the company. The company will also take into
consideration the health and benefits that the employees will get such as health plans, vacation
plans, bonus plans etc.

Marketing strategy
Our marketing strategy is very basic to provide the customers with the best service. When the
customer enters our doors they should have the confidence that we will provide the best that we
can, and once they leave they should be satisfied with the service that we have provided. We will
have advertising campaigns all island wide, focusing on the major cities and then advertising by
word of mouth by our customers. We will get our customers to give us feedback once they are
about to leave the outlet, this will help us understand what the customers need. By giving us
feedback we will reward them with information about specific packages and also dive them
discounts on other Dialog products. We will do a lot of promotional offers in the rural areas
which are low cost so that every individual can afford some sort of Dialog mobile connections.




Dialog Telecom PLC | Business Environment 25

Financial Forecast
We expect our sales to increase as our advertising and promotions spread to the rural areas, we
expect the profit in the mobile connections sector to increase by 15% in the coming year. Once
the packages that we have released into the general public become known we expect our sales to
increase and customers from our competitors to switch to dialog, as they would realize that
dialog is better.