Management In Celcom Axiata Berhad PDF

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Summary

This assignment is about management & business performance of Celcom Axiata Berhad ...

Description

ACKNOWLEDGMENT BRIEF CONTENTS Contents

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1. Introduction of the organisation

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2. Mission and Vision 3. Organisational product / services, customer and market

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4. Organisational Structure 5. Organisational Analysis (SWOT Analysis) SWOT analysis Area of study

Management Action

Strength Capital (Financial, shareholder) Human resources (Human capital) Information System and Technology (Structure Capital) Synergy / Networking Organisational Culture)

Planning Organising Leading Controlling

Weaknesses Capital (Financial, shareholder) Human resources (Human capital) Information System and Technology (Structure Capital) Synergy / Networking Organisational Culture)

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Planning Organising Leading Controlling

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Opportunities

Threats

Political Changes Economic Changes Social Changes Technology Changes Global Changes Political Changes Economic Changes Social Changes Technology Changes Global Changes

6. Comment and Recommendation 7. Conclusion

APPENDIX REFERENCES

Planning Organising Leading Controlling

Planning Organising Leading Controlling

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Acknowledgment

Alhamdulillah, first of all we would like to thank God as finally we were be able to finish our assignment that have been given by our lecturer. This task had been done with all afford by our group members eventhough we have a little bit of proble that happened among us while doing this assignment. Luckily, all problems have be settel down and we were able to adapt properly and wisely. Apart from that, a big thank we address to our lecture Madam Sharifah Fazirah Binti Syed Ahmad because without her guide, our assignment cannot be done properly. She always give use support and guide us on how to do our management assignment. Finally, thank to our beloved friend that always stick together and also work hard to produce a good report with the full afford and dedication. I hope all the afford will give a lot of benefits to us and also to our group project. They always give us ideas and comments so we can improve our assignment in many ways. We hope our assignment is complete and will be receive. We had used our effort and acknowledgement to search information and ideas. Hoped our effort was worth it.

Introduction

Established since 1988, Celcom, a member of the Axiata Group of Companies, is the first mobile operator in Malaysia. The company headquarters were located at Petaling Jaya, Selangor. Celcom offers the widest and most extensive 2G, 3G and 3.5G coverage, serving 98% of populated areas, while it’s 4G covers 76% of population. Serving 9.7 million customers, Celcom believes that talent, innovation, operational excellence and embracing digitization will be the key to create awesome customer experiences. Celcom is a proud partner to 6 Mobile Virtual Network Operators (MVNO) and also offering roaming services in 197 countries via more than 462 network partners worldwide. Being one of the very few companies in Malaysia to originally obtain a cellular phone license, it successfully introduced mobile telephony in Malaysia through its ART-900 (Automatic Radio Telephone) service, using first generation (analogue) ETACS (Extended Total Access Communication System) specifications of the United Kingdom, a derivative of the USAMPS (Advanced Mobile Phone System) technology. The ETACS ART-900 was started using the prefix "010". Celcom now uses the dialling prefix identifier of "013" and "019" and offer digital GSM (Groupe Speciale Mobile), an originally European standard, now largely a world standard for mobile communications. The original frequency band for GSM is 900 MHz, and was soon extended to 1800 MHz to cater for a much wider bandwidth requirements. The 2100 MHz band is used for their dual-channel HSPA+ network. Celcom is also licensed and has been operating FDD-LTE on 1800 MHz and 2600 MHz. By being apart of Axiata Group meaning Celcom is one of the largest Asian telecommunication companies, focused on high growth low penetration on emerging markets. For example, Celcom has controlling interests in mobile operators in Indonesia, Sri Lanka, Bangladesh and Cambodia with significant strategic stakes in India, Singapore, Pakistan and Thailand through its various subsidiaries and affiliates. Finally, Celcom boasts being the only mobile operator to sustain 31 consecutive quarters of growth, and in 2013, recorded RM8.0 billion in revenue, the highest in history. Celcom also obtained the highest Net Promoter Score with the highest satisfaction score 1

among the four telcos. The research was done by AC Nielsen, encompassing satisfaction scores for Network, Package, Service Quality, Billing & Top-Up, Brand & Loyalty, and Product Features. It was conducted with more than 7, 000 respondents from the four key Malaysian network operators across all regions in Q3 2018. Celcom also were recently recognised by Forbes as the “Top Ten Most Customer-Focused companies in Asia”. This serves as a testament to their commitment in recognising the importance and value we have for thei customers whilst delivering various touch points that cater to the needs of all. Last but not least, Celcom also wins 8 award during the recent Contact Centre Association of Malaysia (CCAM) award night.

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Mission & Vision

Mission Statement Aspire to become the Most Inspiring Digital Organisation by consistently providing the best customer experience in all aspects, through innovative products and services, customer touchpoints, and optimisation of its network. Together with all their stakeholders, they will make Celcom Malaysia a premium brand: a brand that symbolizes the spirit of freedom, aspiration, confidence, dynamism, timelessness, universality and globalism. Celcom has been in the telecommunication business with the primary objective to keep people connected and helping companies to market their goods and services as well as keeping them close to their customers.

Vision Statement People are a priority in driving optimum performance, which is illustrated by our unceasing contribution to inclusive nation building, ensuring that no one is left behind. To accomplish these objectives, celcom has developed a benchmark for progress in three different categories. Firstly, through using a market penetration pricing, the service will be brought to the customers at affordable and reasonable prices. Secondly, by gaining a better understanding of the need and satisfaction of the current customers, they will improve the service to encourage re-orders. Finally, the service is to be able to utilize it’s current technology and knowledge base, and research as well would be conduct on similar products with an eye towards developing the services to a speciality advertising product.

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Organisational product / services, customer & market

As one of the leading telecommunications groups in Asia in pursuit of a vision to be the New Generation Digital Champion by 2022, Celcom has transformed itself from a holding entity with a portfolio of pure-play mobile assets into a Triple Core Strategy-driven business focusing on Digital Telco, Digital Businesses and Infrastructure. Celcom Axiata Berhad is committed to forwarding the national agenda of developing the capacities and capabilities of the Malaysian society. Celcom Axiata Berhad target market will focused to offers product and service for both regular customer & business purpose. For regular customer, one of the Celcom flagship internet plan is Celcom Mega, which allows users to select their plans based on their internet usage preferences. Flexibility is clearly one of the points of focus for Celcom with their new plan, and users are also able to trade in their unused internet quota for cashback at the end of each billing cycle via the Boost eWallet— RM5 for 10GB of data. Basically, users will have the option to go for the Unlimited Mobile Internet Quota or the Lightning Mobile Internet Speed packages, with Celcom saying that there are “two separate rising demands for internet access”—fast speeds and unlimited quotas. The base package has a subscription fee of RM80 per month, with unlimited calls to all networks, along with 30GB of data. There are two plans under the Unlimited Mobile Internet umbrella: Mega Unlimited M (RM18), and Mega Unlimited L (RM68). Under the M package, you get unlimited high definition streaming, social media, and music, while the L package gives you Full HD streaming, along with unlimited “high-quality” music. Under the Lightning Mobile Internet Speed plans, you have three options which is Mega M (RM18), Mega L (RM68), and Mega XL (RM108). You get the fastest speeds available, while the Mega M, L, and XL offer you 10GB, 30GB, and 70GB respectively—in addition to 30GB each. Additionally, subscribers of the highest plan under Lightning Mobile Internet Speed are entitled to free roaming in 12 countries. And as part of them offering more flexibility, Celcom also allows for users to add Family Lines to their subscription at RM40 per line, with an additional 15GB granted to each

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line. Other add-ons include Celcom Passport, INTERNETshare, the Ultra Hour Pass, and Unlimited Social. For prepaid customers, Celcom have offered Xpax monthly unlimited passes have appeared on the self-care app. It costs RM35 for monthly and RM12 for the weekly pass. For the RM35 monthly pass, the plan even comes with unlimited calls to all network as a bonus plus 3GB of hotspot data which is also speed capped at 3Mbps. Besides, Celcom also offered Celcom Home Fibre and Celcom Home Wireless, Celcom Home Fibre which currently offer two broadband options. The base Home Fibre Gold plan at RM80/month provides 30Mbps for both downloads and uploads with unlimited quota. If you require faster speeds, the Home Fibre Gold Supreme is priced at RM129/month and it comes with 100Mbps for download and 50Mbps for uploads. As a promotion, the 100Mbps plan is now going for RM120/month. You can make voice calls with both plans and Celcom charges 10 sen per minute which is applicable to all networks. The plan is tied with a 24-month contract and Celcom is also bundling a free WiFi router. For Celcom Home Wireless, Celcom Home Wireless is a home broadband service that uses its 4G mobile network, which is good for homes without access to Fibre. The provided wireless router creates a WiFi hotspot for your home which allows you to connect your computers, smart TVs, phones and other WiFi devices. Celcom Business combines Malaysia’s best 4G LTE network with best-in-class solutions for everything from communications to daily operations. Whether you’re a young start-up or a growing corporation, Celcom offers future-ready plans and services that are here to propel your business forward. For valuable business customer Celcom has introduced its Business Suite offering for retail and it aims to be a one-stop digital solution provider for SMEs. Apart from offering mobile postpaid and broadband solutions, you can also get additional business tools including Celcom SafePay mPOS, OMNI Communication and VirtuExt in one package. According to Celcom, these all-in-one solutions can help companies save up to RM5,160 over 24 months. There are also additional options for Microsoft Office 365 subscription, locationbased advertising, extra extension (RM10/extension) for the VirtuExt service and Cloud secure (RM4.99/month per license). For Office 365, you can get one month free with an annual subscription. With Celcom’s SafePay mPOS, you can enable your business to accept electronic card payments. According to the FAQ, it is a mobile card terminal that connects to your 5

smartphone or tablet via Bluetooth. It supports both “Chip n Pin” as well as contactless based cards that have a VISA, MasterCard or MyDebit logo. Meanwhile, Celcom VirtuExt works like a virtual PABX system that manages your customer calls from one main number. It features extension calls, call transfer, IVR recording and call queueing without requiring any expensive upfront investment. The VirtuExt system can direct customer calls to multiple mobile numbers which enables your employees to be reachable in any location. According to Celcom, the setup can be done instantly and it is managed from a web browser. Being the largest telecomunication company in Malaysia also means being one of the Internet Service Provider that offers roaming services to up to 197 countries. Celcom has introduced a Roam Like Home feature which allows you to utilise your home data quota while you’re roaming overseas. Do note that it isn’t offered at all roaming destinations as it is currently limited to 12 countries namely Singapore, Thailand, Indonesia, Vietnam, Brunei, Cambodia, Laos, Myanmar, Philippines, Sri Lanka, Bangladesh and Nepal. At the moment, Celcom has three roaming plan options. There’s a 1-day pass with 500MB quota at RM38/day and a 3-day pass with 1.5GB of quota plus 100 minutes of calls and 100 SMS for RM88. For long-term usage, the 7-day pass costs RM138 and it comes with 3GB of data along with unlimited calls and SMS. Apart from that, Celcom is the only telco in Malaysia who offers unlimited call & SMS in their roaming plan that have being attraction to a lot of corporate entity. Currently, Celcom is adopting various new technology such as robotics, artificial intelligence and IoT systems internally and externally in various industrial segments including utilities, logistics, industrial improvements and natural environment monitoring. Celcom now capitalising on these new technologies to improve and serve their customers better, as their customers are the reason for them to innovate and optimistically deliver new digital solutions every day, further supporting the development of the nation’s digital transformation and economic agenda. Celcom Axiata Berhad will continue to strive for excellence in digital innovation and customer service.

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SWOT Analysis

STRENGTH Celcom maintains a product differentiation strategy resulting from a strong market orientation, commitment to high quality, and customization of products and services. There is little turnover among well-compensated employees who are liked by customers. The relatively big size of the staff fosters communication and quick response to the client’s needs. A long-term relationship with the primary suppliers results in the shared knowledge of the product’s requirements, adherence to quality standards, and a common vision throughout the development and production process. The high percentage of sales suggest a satisfied customer base as well as positive word of mouth, which generates new business per year. Being the oldest telecommunications service provider in Malaysia has given Celcom a competitive edge and increased customer’s trust and loyalty to the brand. For management action, Celcom plans to give the cheapest postpaid plan which is most suitable for users who are only allocated with the minimum budget for the monthly phone bill. Celcom offers you the lowest postpaid plan in Malaysia with a commitment fee as low as RM20 per month. Next, Celcom has a strong organization from lower managers to top managers. Top managers delegate their tasks to middle managers and lower managers. If there are any problems in the company, they will hold a general meeting that includes all the employees in top management for decision making. Then, Celcom Axiata Berhad for Perlis branches, they used behavioral theory. Two basic forms of leader behavior are job-centered leader behavior and employee-centered leader behavior. Job-centered leader behavior focuses on the job only where the leader only pays close attention to subordinates’ work. For example, according to Muhammad Ilias Bin Mad Zain, he always pays close attention to his subordinates’ work through CCTV. He is also very interested in the performance of every branch that he manages and performance his subordinates. Employee-centered leader behavior focuses on employees only where the leaders develop cohesive or organized workgroups and ensure employee satisfaction. For instance, Muhammad Ilias Bin Mad Zain said that he always ensures his employee satisfaction. For him, if managers take care of their subordinates well, then it will be the subordinates’ motivation to keep working as they were appreciated by their leader. Celcom Axiata has a controlling interest in mobile operators in Malaysia, Indonesia, Sri Lanka, Bangladesh, and Cambodia with significant strategic stakes in India, Singapore, and Iran. In addition, the 8

Malaysian grown holding company has states in non-mobile telecommunication operations in Thailand and Pakistan. WEAKNESS Celcom’s current facilities are crowded which is there little room for new employers or types of equipment to fit into the company. Celcom is reactive rather than assertive in its marketing efforts because of its heavy reliance on customer’s reactions to product satisfaction. While the staff size improves growth and communication, it also impedes commitment on the side of the staff and lack of specialization. Both the product line and the client base lack diversification. Dependence on current recorder rates could bleed complacency, invite competition, or create a false sense of customer satisfaction. The development of a product that would provide better quality service by the competitors would probably put Celcom out of business. The non-seasonality of the products and services creates a bottleneck in productivity and cash flows, places excessive stress on the personnel and strains on the facility. The poor niche market could be a competitive advantage for their competitors to gain an advantage over them, and this could lead to a dramatic decrease in customer loyalty. Celcom also lost market share with other Telco company in Malaysia. The subscriber share for Celcom only at 31% between other company. The high cost of products and services could alter the buying power of the consumers, especially in this time of global recession. For management action, Celcom formulating a market-orientated and customer-focused mission statement, Celcom has established an objective to achieve cumulative growth in the next five years with a 50 per cent net profit for the newly launched U-verse. To accomplish these objectives, Celcom has developed a benchmark for progress in three different categories. Firstly, through using market penetration pricing, the service will be brought to the customers at affordable and reasonable prices. Secondly, by gaining a better understanding of the need and satisfaction of the current customers, they will improve the service to encourage re-orders. Finally, the service is to be able to utilize it’s current technology and knowledge base, and research as well would be conduct on similar products to develop the services to a specialty advertising product. OPPORTUNITIES Advertisement in Malaysia alone exceeds 200 million Malaysian ringgit annually. More than 20 million ringgit is spent on specialty advertisements which is the potential for Celcom's growth. Celcom is currently doing nationwide promotion using power icons like including international footballers Steven Garrard, Michael Owen, Ryan Gigs, Robert Pires, and Chinese entertainers JJ Lin and Wang Lee Hom as well as local actress Maya Karin. Celcom currently has the widest 3G and HSDPA coverage in Malaysia since its launch on 17th May 2005 and 9

release the 4G coverage in Malaysia on April 2016. Celcom provides many products and services that suites different customer needs, ranging from economic, business, and family and leisure satisfaction. The director and manager of the company, Mohamad Idham Nawawi is currently working with the company for the seventh year, this is different when compared with other telecommunication service providing companies and with his full experience, he has helped guide Celcom to a resting edge with quality management. As more and more Malaysians look for ways to keep in...