2. Internship Report – SWOT Analysis
Pakistan Telecommunication Ltd:
Background:
Pakistan Telecommunication Company Ltd (PTCL) is the largest
telecommunication company of Pakistan offering number of telephony and
Internet services to customers. This topic is covering the Strengths,
weaknesses, opportunities and threats of PTCL in detail.
There is no skimpy competitor of PTCL in landline but with the growth of
telecommunication business of Pakistan rivalry increasing specially in
mobile phone sector.
There are more than 800 million subscribers of cellular phone. In which
PTCL is also a party through its 100% owned Subsidiary UFONE, Despite
the Mobilink is still Number 1 Cellular Company in Pakistan, Ufone
Emerged as very strong against Mobilink in 2001.
Mobilink is currently having more than 31 Million users base which is the
36% of total cellular industry of Pakistan. Ufone is basically challenging
Mobilink
Other Mobile Operator are also very strong Customer Base, Like Zong
(China Mobile Subsidiary) enter into Pakistan Market in 2007 and in a very
short Time, they emerged as very strong Competitor’s to other mobile
networks.
Telenor ( 20% market share ) , Warid ( 17% market Share ) , Zong ( 20%
market Share ) , Mobilink ( 36% market share) are Comptetitors of PTCL
in Mobile Operator’s against its Susidiary Ufone.
NEW COMPETITORS:
Other than mobile & land line PTCL is facing competition in F.W.T (Fixed
Wireless Telephone) & product market.
1. World Call ( ISP , Telephony , TV )
2. Wateen ( ISP , TV )
3. Qubee ( Broadband in Major cities )
4. Wi-Tribe ( Broadband )
3. Internship Report – SWOT Analysis
Subsidiary:
Ufone:
Ufone (Pakistan Telecom Mobile Ltd) a wholly-owned subsidiary of PTCL
commenced its operations on 29th January 2001 as a GSM 900 service
provider. Since the outset, it has expanded its coverage and customer base
at a rapid pace and established itself as one of the leading cellular service
providers in Pakistan. Ufone is now considered to be one of the most
active, aggressive and innovative players in the mobile sector of Pakistan.
The growth of the cellular industry is a direct result of the successful
implementation of the telecom deregulation and cellular mobile policy by
the Ministry of IT and Telecommunications (MOIT&T) and the support,
guidance and timely enforcement of regulatory process by the Pakistan
Telecommunication Authority (PTA).
Key Accomplishments:
Ufone has always played a pivotal role in the development of the cellular market in
Pakistan. For the most part, it has been a step ahead in introducing innovative products to
the market. Ufone was a pioneer in launching the GPRS services and Multi-media
Messaging Service (MMS) in Pakistan, and lead the way in introducing GPRS
international roaming and prepaid international roaming for these services in the
Pakistani market.
VISION:
“ To bethe leading Informationand Communication Technology
Service Provider in the region by achieving customer satisfaction
and maximizing shareholders' value'.”
The future is unfolding around us. In times to come, we will be the link that allows global
communication. We are striving towards mobilizing the world for the future. By
becoming partners in innovation, we are ready to shape a future that offers telecom
services that bring us closer.
4. Internship Report – SWOT Analysis
Mission:
Toachieveourvisionbyhaving
An organizational environment that fosters professionalism,
motivation and quality
An environment that is cost effective and quality conscious
Services that are based on the most optimum technology
"Quality" and "Time" conscious customer service
Sustained growth in earnings and profitability
CORE VALUES:
Professional Integrity
Customer Satisfaction
Teamwork
Company Loyalty
Corporate Information
Payable Department Function:
Departmental Hierarchy:
Payable department of PTCL has the hierarchy where three Assistant
Managers are under the subordination of a Finance Manager that directly
reports to its senior manager. Following the practical diagram of hierarchy
Assistant Manager – (Finance) - (Income Tax, WHT, Cash Imprest , Voucher
Placement)
Asistant Manager (Acting Manager) – (Financial Analyst) Pre-Audit
Assistant Manager – (Accounts) (Parking & Posting and Cheque Printing)
Cashier (Allotement of VR & JV Number, Cheque Dispatching, Record Keeping)
Senior Manager (F) - DDO
5. Internship Report – SWOT Analysis
Payable Department Procedure:
Following is the entire procedure of PTCL payable department:
o Bills and vouchers are received by scrutiny departmental members in
CTR
o Required documents are verified then its send for Placement of
Payment voucher on it to Assistant Manager (F) , Income Invoice
Register .
o Scrutiny of Bills is done within a day
o Once the scrutiny is done, vouchers are placed on it
o Then it Send to Signature of Manager (F) and Senior Manager (F) for
Pre-audit Checks and Approval for Process
o Voucher are then parked in SAP
o Posting in SAP Followed by printing of cheques
o Signing of cheque by particular authority
o In the end dispatch of cheques through TCS.
Step wise Procedures:
Now we will analyze each procedure of the cycle individually,
where first is Bill Receiving:
Entry of bill in an incoming invoice registers (MS ACCESS)
Assigning of serial number to the original, duplicate and triplicate
copes of each bill
Entry of serial number and date with initials of receiving person on all
copies
Checking of available documents with bill
Return of triplicate copy to the person submitting the bill
Filling of both copies cost centre wise
6. Internship Report – SWOT Analysis
Parking In SAP:
Login in the parking user ID in SAP
Use of Short code Fv60 for parking of payment voucher
Use of Short Code fv50 for parking of journal voucher
Printing of parked SAP voucher
Attachment of voucher with the original bill
Forwarding of file for scrutiny
Scrutiny of Bills:
Checking of availability of relevant documents
Checking rates of good acquired
Checking of availability of approval from concerned authority
Signing of person scrutinized the bill if found correct in all respects
Attachment of objection letter in case there is any objection
Checking and signing of voucher by the AM Finance Scrutiny
Checking and signing of voucher by the Manager Finance.
Demanding funds from AM finance budget if not available in the cost
centre
Sending of files for posting
Posting of Voucher:
Following steps are being followed by the staff while posting of
voucher
login in to SAP with posting user ID
Overview of voucher
Posting of voucher through T code fbv0 in SAP
Signing and stamping over the voucher
Forwarding of vouchers file to Manager Finance for payment process
7. Internship Report – SWOT Analysis
Payment Process in SAP:
Payment process has to follow the above steps through SAP:
Payment process in SAP through login ID of payment user
Calculation of income tax
T-code f53 used for creating payment document
The document number entered on voucher for cheque printing
reference
Voucher is forwarded for cheque printing.
Cheque Printing:
The last step for payment process is cheque printing process which has
further 3 more procedure to do it with automation:
Blank cheques are inserted in printer for printing with complete serial
Printing done through login ID of payment user
T code used for cheque printing
Stamping of cheque printing authorities done after its printing
Cheque numbers are entered over the voucher
Signing and Dispatching of Cheques:
Once the cheques are signed, the last two procedures are followed,
o Checking and verifying particulars cheques with the voucher
o Signing of cheques counter slip
o Cheque along with voucher send to SM Finance for signing
as a first authority
o Signing of cheque from second signatory
o Separation of cheque from voucher for dispatch
Once the separation is done, a final procedure of payment cycle where
the dispatch of all cheques is done follows these steps:
8. Internship Report – SWOT Analysis
o Printing of envelope
o Handing over the cheque envelope to the representative of
TCS within days of the receipt of the bill
o Updating of Incoming Invoice Register by entering cheque
number against each bill
o Voucher stamped as PAID
o Voucher sends for binding.
By following all the above procedure, the duties of payment
department are finished.
Taxation:
Income tax is one of the most important aspects of any department, so
taxation of service industry is divided into two categories
Salary Income Tax
Vendor Income Tax
Salary Income Tax:
Deducted under Income Tax Ordinance 2001, Section 149.
Paid to FBR on Monthly Basis.
Vendor Income Tax:
Vendor Income tax is deducted from Payment to Vendor’s
7% deduction on Services
4% deduction on Supplies*
1% deduction on Medical Purchases
( 3.5 % on Vendor registered Company for Supplies )
9. Internship Report – SWOT Analysis
Responsibilities of Payable Department:
Maintaining data of vehicles of RGMS and revenue
department.
Arrangements of payment of third party staff before 1st of
each month
Yearly physical stock verification of stores and coordination
with head quarter for further submission of compiled report
Cash imprest, temporary advance and adjustment report with
OB of PFY on monthly basis.
Maintaining record of attendance of Finance and Revenue
Department
Issuing of tax certification both to employees and vendors.
Financial Reporting:
The other responsibility of payable department also includes
generating financial reports, so according to the objective and
need following reports are being generated:
Cost centre wise monthly report
Cost centre wise quarterly report
Profit centre analysis
RGM wise monthly reports
RGM wise Drop wire
RGM wise Fault rectification
Data compilation of all exchanges in Punjab
10. Internship Report – SWOT Analysis
User Manual (T-codes):
Every authority in finance department has its own user id and user manual,
so it may vary as per objective of job, so following are the T codes normally
used in payable department:
In Payable Department we have also Two Person on SAP, from One ID –
We park the Payment Invoices and then from other Post and Print the
Cheques.
- Scrutiny of Voucher (Advances and Adjustments)
- Documents Citation and Verification
- Bank Reconciliation
- Having a good familiarity of the following T-codes of FI Module
in SAP Software:
FV-50 (JV Parking)
FV-60 (Payment Voucher Parking)
FMBBC (Budget Allocation in Cost Centers)
FBV0 (Post Parked Document)
F-43 (Advance to Suppliers Posting)
F-53 (Payment Process)
F110 (Payment Auto run)
FCHN (Cheque Register)
FB02 (Change Document)
FB03 (Display Document)
F-03 (Clear GL Account)
FCH9 (Void Cheque)
FCH8 (Reverse Cheque Payment)
MIR4 (Display Print)
MIR6 (Post Purchase Order document)
MIR7 (Park Purchase Order)
FAGLLO3 (GL Overview)
ZBUDDCON (Budget Consumption Report)
ZWTR (With Holding Tax Report)
KSB1 (Cost Center / GL / Vendor wise expenditure report)
11. Internship Report – SWOT Analysis
SWOT Analysis:
What is SWOT Analysis?
Where there is a company in operation it has to work in two kinds of
environment
External environment ( Opportunity & Threats )
Internal Environment ( Strength & Weakness )
For a company to avail maximum and avoid maximum, it has to know what
it has to avail and what it has to avoid. The external environment has
scanned by the management for any arising opportunities or any critical
threats. The resources of a company constitute its strengths and weaknesses.
External factors are broadly categorized into;
Economic forces
Social
Cultural
Demographic
environmental forces
Political
governmental
legal forces
Technological forces
Competitive forces etc
Internal factors are;
Marketing strength of firm
Financial/Accounting resources
Management
Computer information system
Production/operations etc
12. Internship Report – SWOT Analysis
SWOT Stand for:
S – Strength
W – Weakness
O – Opportunity
T – Threat
Here I am giving my SWOT analysis of PTCL. I tried to use my keen
observation in order to find the strengths, weaknesses, opportunities and
threats. As it is very difficult for an internee to discuss with the employees of
any organization about its weaknesses, moreover they are also not so much
open in telling their strengths and opportunities.
Why SWOT Analysis:
A SWOT Analysis is conducted by the company so that it is able to position
itself to take advantage of particular opportunities in the environment and to
avoid or minimize environmental threats. In doing so, the organization
attempts to emphasize its strengths and moderate the impact of weaknesses.
The analysis is also useful for uncovering strengths that have not been fully
utilized and in identifying weaknesses that can be corrected. Matching
information about the environment with the organization's capabilities
enables management to formulate realistic strategies for attaining its goals.
13. Internship Report – SWOT Analysis
Strengths
Largest operational network and infrastructure within ICT
(Information & Communication Technologies) segment.
An integrated Monopoly.
Oldest Telecommunication Company of Pakistan founded in 1947.
PTCL is offering multiple services which include IPTV, Smart TV,
Internet and Telephone using local loop.
Market leadership in Local loop, Wireless local loop (WLL) and fixed
telephony.
PTCL (Ufone) is market challenger in GSM segment.
ofUne won the 3G License ( Which will not make huge impact on
PTCL revenue’s through its subsidiary Ufone )
Competitors still depend on PTCL network either directly or
indirectly.
Experienced Telecom Resources.
Strong Brand Loyalty of Customer’s, Still there is no match of Services of
PTCL with other Competitor’s.
14. Internship Report – SWOT Analysis
Weakness
Not been able to nurture its growth around customer services
oriented strategy.
Monopolistic culture has further added to its complexities.
PTCL-V, the fixed wireless phone service is poor.
Over employment & low productivity.
Slow decision making including external interferences.
Corporate culture akin to government departments.
Lack of technical staff in DSL technical support ( Mostly thirty
Party Employee )
Customer service is very poor specially in Internet services
Opportunities
Low Tele density of Pakistan.
Have vast infrastructure and real estate assets which can be
leveraged further.
Global connectivity reliability has been improved. PTCL is
expanding the long distance and infrastructure side through
spreading out two sea-me-we submarine cables.
Partnership with new entrants in a deregulated environment.
Scope for efficient/cost effective operations.
15. Internship Report – SWOT Analysis
Threats
Increased competition in long distance continues to exert
pressure.
VOIP use is increasing despite ambiguous and
discriminatory policies.
Exposure to market competition.
Migration to Cellular Networks.
Ability to Attract & Retain Quality Professionals.
Reduction in International Settlement Rates.
Deregulations not only provide new opportunities but also pose
some threats. Up till now PTCL is enjoying a monopoly in fix line
telephony but after deregulation of telecom market PTCL is facing
competition from other telecom companies. This may result in fall of
traffic and revenue.
New players in the industry.
Inconsistent and Adhoc decisions by Company management.
Cyber crimes percentage is increasing.
Inflation in the country may increase the cost of services which will
finally transfer to customers.
16. Internship Report – SWOT Analysis
Conclusion & Recommendations:
No doubt PTCL financial results show a fair picture of its excellent
performance over the year but it is not enough there are number of issues
that need to be address in order to raise its performance and also to
successfully face the challenges set by the globalization and rapidly
changing economic world.
On the basis of my experience I have put some recommendations and
findings as under:
During the internship I found out that there is poor staffing, some
of the departments are over populated and some even don’t have
the number necessary to run the department (Like the Payment
Department).
Customer services should be improved, that will help to improve
customer satisfaction and results in low churn rate.
PTCL should recheck its marketing strategies as currently very
few people know the services offered by PTCL. It should install
more billboards, use print and electronic Medias.
Employee’s attitude and behavior towards work and customers
must be improved as due to staff competition every individual
customer is vital.
Increase service offering at competitive and affordable rates.
Minimize exposure to Government’s (PTCL) revenue in the short
term.
Working environment should be improved by introducing good
corporate culture in the organization so the employee satisfaction
can be achieved, which results in low employee turnover.
