MGT 212: Organizational Management: Grameenphone
MGT 212: Organizational Management: Grameenphone
Group Report
Grameenphone
Prepared for:
Tanya Ahmed
Department of Management
Prepared By:
Md Salauddin Imran, 1911371030
Mohammed Junaid Hasan, 1912064630
Nazmus Sakib, 1731571630
Rima Akter Sarnaly, 1632006030
Armanujjaman Abir, 1812614630
Acknowledgement
Working on this project had helped us gather a clear knowledge and experience of managerial
functions and how actually an organization is managed to become successful one.
We would like to give our outmost gratitude to Almighty Allah for giving us the blessings to
work and complete this report on Grameenphone despite of this pandemic situation. We were
also very much fortunate to receive good cooperation from all the group members throughout
this report.
We would also like to thank our course instructor TANYA AHMED, lecturer of management
department of North South University for giving us the opportunity to work on this report. We
are lucky enough to get her outmost support and suggestions throughout this report and entire the
course.
Letter of Submission
Tanya Ahmed
Department of Management
North South University (NSU)
Subject: Report on Grameenphone
Respected miss,
This is to inform you that with the full help and co-operation of our team members we have
completed the group project which has been assigned by you. We are delighted to work on such
project, it helped us to gather more practical knowledge on this course. The report consists of the
elements which has been taught by the faculty in class throughout the entire course MGT212
(Organizational Management)
We hope that the report meets all your requirements. It will be an honor if you accept the
submission of this report conducted by our group.
Yours obediently,
MD Salauddin Imran
Mohammed Junaid Hasan
Nazmus Sakib
Rima Akter Sarnaly
Armanujjaman Abir
Contents
Title Page
Introduction
Company Profile 1
Planning
Vision, Mission & Values 2
Objective of the Company 2
Focus of the Company 3
External Environmental Stakeholder 3
Environmental Uncertainty Matrix 4
SWOT Analysis 5
SWOT Matrix 6
Organizing
Organizational Structure 7
Organizational Design 8
Human Resource and Administration 8
Recruitment Philosophy 8
Recruitment Process 9
Training and Development 9
Leading
Motivating Employees 10
Payment Schemes 10
Management Issues 11
Controlling
Controls of Grameenphone, ISO Certification and Benchmarking 12
Conclusion
Performance Result 13
Market Share Analysis 14
Strategy to be Used 15
Competitive Strategy 15
Corporate Social Responsibility 16
References 18
Introduction
Company Profile
Grameenphone limited is one of the largest telecommunication service providers, the first one to
introduce GSM technology and built the first cellular network to cover 99% of the country
Bangladesh. The company was established on 10 October 1996 and started operations on 26
March 1997, Independence Day in Bangladesh. Grameenphones main motive was to put mobile
phones in hands of every people in Bangladesh because it believes that connecting societies will
empower societies. It has brought a lot of innovative mobile-based solution to Bangladesh.
Among these are Health line, a 24- hour medical call center manned by licensed physicians,
GPay, used for electronic purchases of train and lottery tickets, and Bill pay, used for paying
utility bills via mobile phones and also allows mobile-to-mobile fund transfers with certain
handsets. Grameenphone is a joint venture between Telenor and Grameen Telecom corporation.
Telenor held a share of 55.8% and Grameen Telecom corporation held a share 34.2% and the
remaining 10% is publicly held. Grameenphone has invested more than BDT 347.4 billion to
build the network infrastructure and build the largest cellular in the country with over 15,999
base stations (Wikipedia).
The founder of Grameenphone Dr. Mohammad Yunus and Iqbal Quadir was inspired by
Grameen Bank micro-credit model and visualize a social experiment and with help of Grameen
bank and Telenor, they set up the telecommunications company Grameenphone. It has completed
its 23 years of journey till date and had revenue of 143.7 billion. It net income is over BDT 34.5
billion. It is one of the largest tax payers in Bangladesh and as reported by BTRC in 2017, it had
paid more than BDT 585 billion taxes till the inception date. It has over 2,400 employees and
headquarter is located in Bashundhara Bangladesh (Telenor Group, 2017).
1
Planning
Vision
Empower Societies
We provide the power of digital. communication, enabling everyone to improve their lives, build
societies and secure a better future for all.
Mission
We are here to help our customers
We exist to help our customers get the full benefit of being connected. Our success is measured
by how passionately they promote us.
Values
Make it Easy: Everything we produce should be easy to understand and use. We should
always remember that we try to make customers’ lives easier.
Keep promises: Everything we do should work perfectly. If it doesn’t, we’re there to put
things right. We’re about delivery, not over-promising. We’re about actions, not words.
Be inspiring: We ‘re creative. We bring energy and imagination to our work. Everything
we produce should look fresh and modern.
The leading Objective of the company is to cover both urban and rural areas. They want the
islands of the isolated areas to give strong coverage by building cell after cell. The intensity of
coverage may vary from place to place depending on the area demand. To be proactive the
company needs innovative techniques in performance to assess their progress towards achieving
organizational objectives, leading to accomplish a company goal.
2
Focus of the company
Grameenphone focus is deliver unique and premium services to its providers. For example, it
introduced skitto sim which is especially for students with amazing offers and packages. It wants
to capture both the rural and urban market and ultimately achieving the highest market share in
Bangladesh. It is also planning to introduced 5g network in Bangladesh with in some time.
3
Environmental Uncertainty Matrix
The Figure shows four cells which has different components such as degree of change and
degree of complexity. According to the given situation in the table Grameenphone would fall
under cell 4 which is dynamic and complex environment. As we all Know the political stability
in the country is not that much stable so it hard to predict what is coming. Also, to be successful
there is a lot components which need to take care of. And due to political instability, there is
continual process of change in the environment. So, there is a high need of sophisticated
knowledge of these components.
4
SWOT Analysis
Strengths
Widest Area Coverage: Among all the other telecommunication service provider,
Grameenphone has the widest area coverage all over Bangladesh. It has the highest
number of BTS station tower for which it is capable of providing connection to every
corner of the country.
Brand Loyalty: As reported by BRTC Grameenphone has the largest number of
subscribers than any other providers in Bangladesh. Despite of other competitors
providing more packages at lower prices but due to its positive image the loyal customers
retain to Grameenphone
Strong customer relations: Over its 23 year of journey GP has maintained a very good
relationship with all of its customers through good public relation activities and proper
communication.
Highest quality customer service: GP has 24-hour call centre facilities and the largest
number of employees working all time to help customers whenever they need.
Corporate social responsibility: The brand image that Grameenphone has created is due
to the amount of good CSR done by them. Thera are a lot of examples of CSR among
them are empowerment, health care, education and etc.
Weakness
Tariff plan: The tariff plan is very high in Grameenphone than any other operators in
Bangladesh. Due to this the cost of product increases and which could divert customers to
other operators.
Cultural Gap: As Grameenphone has lot of employees from different countries and it’s
obvious that there would be culturally different between them. So due to this there will be
a lack of understandings between them which could harm the company’s environment.
Opportunities
5
technologies the mobile phones are much cheaper and so it captures these markets as well
by offering packages at lower prices.
Threats
Increasing Number of Multiple SIM Users: It is seen now a day that people uses
multiple handsets which allows them to use multiple sim cards. As it is a competitive
market there will be price wars and better offers provided by the others and so there is
possibility of customers changing brand.
Political instability: Political instability has become a major problem in Bangladesh,
although it’s more or less stable now, rise of political instability in future is not unlikely
which may hurt the sales of Grameenphone.
Strengths
Wide Area Coverage Weakness
Brand Loyalty
Tariff Plan
Strong Customer Relation
Cultural Gap
Higher Quality Customer Service
Corporate Social Responsibility
Opportunities Threats
Economic Growth of Bangladesh Increasing Number of Multiple SIM
Market for 5G Users
Declining Prices for Handset Political In stability
SWOT Matrix
6
Organizing
Organizational Structure
7
Organizational Design
Grameenphone has a very dedicated and sophisticated design considering its standard. They
adopt to different structures according to the necessity to achieve their goals. They carefully
handle to maintain all the six elements of an organizational design. Grameenphone has a proper
departmentalization and work specialization, then a strong chain of command is followed to
maintain a good control over the employees. While producing innovative elements the
suggestion of lower level workers is also given importance. This brings a dedication of work
among the employees which leads the company to be more competitive and strong work force.
Human Resource planning should start at the beginning of the year so that HR can co-ordinate
Human Resource planning process at the right time. Also, necessary budget provisions are
important factor to look into (Annual Report 2019).
Recruitment Philosophy
The candidates which will be recruited are first matched with the company’s requirement
according to the qualification of each candidates. They use various philosophy to recruit
employees for certain department, they prefer people who are committed to the work, someone
who is curious to learn and can come up with innovative ideas and solution whenever needed.
Grameenphone think that, they can remain competitive and increase growth only by hiring
intelligent candidates
8
Recruitment Process
Grameenphone uses different process to recruit new employees. They use internal source,
external source and also newspaper advertisement for intake. Some referred candidates from the
existing workers are applicable. The general recruitment policy refers to many stages of
screening where the candidates are judged accordingly. Basically, from age 18 years old a
candidate is considered eligible for the job. After the general selection there comes many steps of
filtering the candidates who successfully passed the initial phase. Short listing is done on the
basis of appraising information on the application form in the light of job specifications of a job
being advertised. Short listing depends on the nature of job. Before short listing of candidates for
tests, job criteria are set by HR and line manager. There are general and technical job criteria that
a candidate has to meet for consideration of next step of selection. HR determines general criteria
while line manager determines technical criteria. Although both the type of criteria is important,
however, it is the nature of job that determines which type of criteria should give more
weightage than other. Educational and relevant job experience will be on the priority while
filtering in this stage. The applied HR department plays a crucial part since he is the one who
mainly focuses on the skill. These candidates will be further appearing for tests such as written,
oral or any relevant tests. The minimum qualifying score is 50%, and after that the selected
candidates will be called for the last round interview. After passing the last interview where the
candidate will be judged by multiple ways the wait is for the confirmation call or mail.
9
Leading
Motivating Employees
In a workplace each and every thing are done by employees. So, to get things done manager
should be able to motivate employees. As a leading company Grameenphone plays a very
successful role in motivating employees. Grameenphone’s main and common motivation
theories and different approaches are made to motivate employees. The employees here work
independently. Grameenphone value their employee’s idea and they take effective decision with
the participation of employee. They show genuine interest in employees work life balance. For
example, it is found in research that Grameenphone is the one and only company in Bangladesh
those who provide to their employees up to 80% for the medical treatment for their employee’s
parent. Apart form giving percentages of their profit Grameenphone also pays 3000 BDT to their
employees.
Payment Schemes
Grameenphone offer all kinds of benefits that’s very rare for any company in Bangladesh. To
provide employees whole salary Grameenphone add up many other expenses and allowances
along with the basic salary. They prefer HSBC or Standard Chartered Bank account for
transferring salaries to their employees. On the other hand, no benefits are provided to the
Contractual Employees.
To motivate their employees Grameenphone uses different types of bonus and incentive
schemes. The different types of bonus and incentive schemes are described below:
From the bank branches that are situated in Grameenphone’s corporate main office their
employees can easily get car loans, house loans at lesser interest rate.
On basic salary and glossary Grameenphone gives two types of festive bonuses bonus to
their employees.
5% - 15% increment on the total salary form the following year is given to the employees
who pass the evaluation test.
Grameenphone gives 100 percent bonus on basic salary to all the employees during two
Eids.
10
From 2010 Grameenphone started to allocate 5 % of their total profit for the employees
and this bonus is provided in a yearly basis.
So, from the above circumstances we came to know about the bonus and incentive schemes of
Grameenphone which plays a great role while recruiting employees.
Management Issues
Many Man Many Minds: Here it refers that there are huge number of people
who are working under Grameenphone. As Grameenphone value their employee’s
idea and they take effective decision with the participation of employee this may
create problem for having different ideas. Grameenphone highly prefer new
strategies which sometimes may create problem as employees are used to with
previous strategy.
11
Controlling
Controls of Grameenphone
Grameenphone uses all the types of control for designing a effective control system. Scoping and
risk assessment use a feedback control used by the company. Interim testing and year end testing
use feedback control and concurrent control is used for risk coverage.
ISO Certification
In December 2015, GP has taken initiatives to certify its EMS as per ISO 14001:2004 standards.
After the two stages comprehensive audit, conducted by International Certification Body
"Bureau Veritas", a certification to ISO 14001 was issued; confirming that Grameenphone's
environmental management system (EMS) meets with international industry-specific
environmental standards (Annual Report 2019).
Benchmarking
Grameenphone achieved highest call set up success 99.04% compared to Robi, Banglalink,
Teletalk although the limit was 97% set by BTCL. Grameenphone took the most seconds as set
up time which is 10.14 seconds, however, 7 seconds were set by BTCL. A total of 222 crore
minute of call drop was registered for the year 2018 where Grameenphone it self had the
majority part 103.43 crore minute (BSS, 2019).
12
Conclusion
Performance results
By the end of 2019, Grameenphone had completed its more than 23 years of its journey and had
made a huge impact on the telecommunication industry of Bangladesh. At the end of quarter 3 of
2019 it has ended up with 162.6 million subscribers nationally as reported by the regulatory
system. At the same time, mobile data users grew 7.4% to 98.1 million subscribers. Due to
particularly challenging times the network roll-out slowed down and had reduced the offering of
new products and campaign. Despite of this situation they continued to add pre-approved sites
resulting in 9300 4G sites in Bangladesh. It was recognized as the fastest network in Bangladesh
and received the ‘Ookla Speedtest Award’ for the second consecutive year. They reached 11
million subscribers on 4G network alongside offered competitive product offers and 4G SIM
replacement offers. They also had improved network downtime during bad weathers by
replacing old batteries with new iron batteries over more than 2500 sites. It had also experienced
increase competitiveness due to change in supplementary duty and sim tax moving to 200 takas
and due to this they had to revise their entire product portfolio. 99.5% of the total population is
covered by Grameenphone’s network, while 69% of the total population is under 4G network.
(Michael Patrick Foley, 2019).
Grameenphone ltd had a total revenue of 107.5 billion for the first 9 month of 2019 which is
9.5% of growth from the same period last year and by the end of 2019 it stands on 143.7 billion.
Net Profit After Taxes (NPAT) of BDT 34.5 billion with 24.0% (NPAT) margin and BDT 25.56
earnings per share(EPS). BDT 85.1 billion payment to the national exchequer; equalling 59.2%
of total revenue, in the form of taxes, VAT, duties, fees, 4G license and spectrum assignment.
(Michael Patrick Foley, 2019). The Board of Directors of Grameenphone Ltd. have
recommended 13.00 BDT dividend per share for the full year 2019 based on the decision taken
at the Board Meeting held on 27 January 2020.
13
Market Share Analysis
The mobile phone subscriber market is dominated by Grameenphone since 2009 to 2019 as
shown in the chart above. It had around 44.36% in 2009 and 42.80% in 2014 which is slightly
lesser than the previous years due to higher competition. However, with the growing years it had
again increased its market share with the help of new offers and being the first to provide 4G
network in Bangladesh. Now it stands on 46.18% by destroying all its past records of market
share. The rest of the 53.82% of the market share is distributed among the other four
telecommunication operator which is Banglalink (21.28%), Robi (29.60) the second most
dominated telecommunication service provider and Teletalk stands at 2.94% with the lowest
market share.
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Strategy to be Used
Grameenphone has a very good revenue and market share and a large number of subscribers till
date. The current market share of Grameenphone is more than 46.18% which was reported in
2019 as per BTCL. It is a lot more than any other telecommunication service provider in
Bangladesh. However, it can capture more subscribers by implementing new and better strategic
plans.
Grameenphone always focuses on capturing bigger market share, wants to achieve lower
operating cost, wants to offer boarder and more attractive research for its products and wants to
enhance the satisfaction of its consumers. (Business Strategies of gp ltd, n.d). So, the best
corporate level strategy for them is ‘Concentration Strategy’. Concentration strategy is
focusing on the primary line of business and increasing the number of products offered or market
served. If it continues to focus in providing and offering new packages it will definitely bring
more people under their network. Grameenphone needs to focus on the data coverage in all the
areas both rural and city. However, if it manages to give good data coverage in all areas it will
gain a higher market share which will become impossible for other telecommunication service
provider to come nearer to them.
Competitive Strategy
Competitive strategy are those strategies that distinguish or puts the organization over other
organization by competitive advantage. According to porter’s five laws there are five
competitive forces and they are threat of new entrants, threat of substitutes, bargaining power of
buyers, bargaining power of consumers, and current rivalry. The concern Grameenphone has is
the threat of substitute and the bargaining power of buyers and current rivalry. Due to high
competition, there is always a fear that competitors give better offers to gain competitive
advantage which gives the consumers the right to switch brands. The same also goes for the
bargaining power of buyers, due to high competition or current rivalry there can be price wars
which gives the buyers more bargaining power. Therefore, there is continuous pressure of
providing the best to the customers. So, the best competitive strategy for Grameenphone would
be Cost Leadership Strategy and Differentiation Strategy. If they use cost leadership strategy
which means seeking to gain the lowest total overall cost relatively to other industry competitors,
this is not possible for every firm to achieve so it will give a competitive advantage to
Grameenphone. As a result, no other telecommunication service provider will be able to compete
with them. The same thing also goes for differentiation strategy which means attempting to
create a unique and distinctive product or service for which customers will pay a premium. If
they offer more unique or premium offers which might be difficult for others to provide will give
them a higher subscriber or capture more market share. Therefore, if they can pull out this
strategy successfully no other competitors will be able to catch them.
15
Corporate Social Responsibility
Grameenphone being the number one telecommunication service provider not only focuses on
providing best quality network all around the country but also focuses on building strong
customer relationships and build trust with business partners, shareholders, employees and
subscribers. At Grameenphone they believed that “Development is a journey, not a destination”.
(Assignment Point 2020). They also believed that good development is good business. Their top
priority is keep taking the nation forward alongside maintaining business. Their four core areas
of social investment initiatives are related to Millennium Development Goals which are poverty
alleviation, healthcare, empowerment, and education. Every step they take inspires them to move
forward and do something bigger and more impactful. They believe every step count and matters
in the journey of hope we are taking together as a nation. Grameenphone received the
“Innovation in Corporate Social Responsibility” award at the Bangladesh CSR leadership award
2018. There are lot of the Corporate Social Responsibility (CSR) done by Grameenphone. Some
of them are discussed as follows.
The first ever Corporate Social Responsibility (CSR) done by Grameenphone was on the first
day of their business 26th March 1997. The village phone initiative has made a huge impact on
the social and economic status in the rural areas of Bangladesh. It has created substantial
consumer surplus and also an income earning opportunity for the village people operators mostly
poor women. How it works is by cooperation of the Grameen bank. A Grameen Bank member
takes out a loan to purchase a phone and a GP subscription, and Grameen Telecom instructs her
on how to manage it. Village people operators then sell the mobile phone service to their
villagers, thereby earning an income. The outcome is tremendous “270,000 village phone
operators in 50,000 villages.
16
Safe Motherhood and Infant Care Project (Health Care)
Motherhood is one of the most precious time in a women’s life but however in Bangladesh 13%
of women get skilled attendants during delivery. Bangladesh has the highest maternal mortality
rate (32 per 10,000) and infant mortality rates of (52 per 1000). Grameenphone Safe Motherhood
& Infant Care Project is thus designed to ensure free, yet quality, safe motherhood and infant
care services to poor mothers and their infants throughout the country. Grameenphone has come
into terms with Pathfinder International and through USAID’S network of Smiling Sun clinics in
61 districts. A total of 940,251 economically disadvantaged mothers and infants received free
healthcare service so far.
Education is the backbone of a country’s future. Jawaharlal Nehru once said that “Children are
like buds in a garden and should be carefully and lovingly nurtured, as they are the future of
nation and citizens of tomorrow.” In our country 65% of people lives in darkness of illiteracy
due to poverty. Grameenphone in collaboration with Grameen Shikkha. Grameen Shikkha
Scholarship Management Program has made it possible for the bright but underprivileged
students to realize their educational endeavor.
17
References
Annual Report 2019, Grameenphone, Retrieved from https://www.grameenphone.com/about/investor-
relations/ir-annual-report/annual-report-2019
BSS, (2019, Feb 18th), GP fails to comply BTCL’s call drop benchmark, Dhaka Tribune, Retrieved from
https://www.dhakatribune.com/business/2019/02/18/gp-fails-to-comply-btrc-s-call-drop-
benchmark?__cf_chl_jschl_tk__=98cdb03af0bd3fdd97e29681f6936e8551cc0fc7-1587787961-0-
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Hossain, T., (2013, May 27th), Environment Analysis of Grameenphone, Shareslide, Retrieved from
https://www.slideshare.net/oishe/environment-analysis-of-grameenphone-organijetion
The Daily Star. (2019). Decade of Grameenphone’s rise and Banglalink’s decline. Retrieved from
https://www.thedailystar.net/business/news/decade-grameenphones-rise-and-banglalinks-decline-
1856905
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