"The complete detailed study on Organizational Management and

organizational analysis"

Chosen organization

Etisalat Corp.; including Etisalat and Etisalat Misr

Introduction:

The United Arab Emirates sole present provider of mobile telephony and other telecommunications services. Etisalat is the monolith of Gulf telecommunications companies. Established initially in 1976Etisalat was one of the first companies to introduce mobile phones to the Middle East in 1982. Etisalat’s stature is that it is one of the largest joint stock companies in the region as it has also been named as one of the world’s top 500 companies in terms of market capitalization.

With a very relatively large organizational structure, Etisalat's networks has extended in the Middle East region to expand branches all over Egypt, Pakistan as Pakistan Telecommunications Company Limited and the kingdom of Saudi Arabia as Mobily. Etisalat operates the region’s most extensive international network, with direct links to over 118 destinations; an international mobile network that reaches over 450 destinations. Where it is the region’s largest internet hub and the regional hub for intercontinental cable systems.

Etisalat’s Carrier & Wholesale Services Division (C&WS) is dedicated to delivering a comprehensive portfolio of high quality wholesale services, extending the reach of mobile operators, carriers and ISP’s globally. These services range from offering fixed line services over the Next Generation Network, and enables mobile users with a range of services and applications such as GPRS, 3G, BlackBerry and others. Internet users too experience value-additions such as free anti-spam and anti-virus programmes, expanded mailboxes, upgrades of broadband connection speeds and other benefits.

Etisalat's Carrier & Wholesale Services Division also provides:

e-Voice e-Mobile Emix - IP Transit Services e-Capacity e-Connect e-Broadcast

Internal environment analysis:

An Introduction to Managerial Decisions Affected by Etisalat's Culture:

1. Planning:

The degree of risk Etisalat took when Etisalat opened in Egypt, was that there were already two other competitors (Vodafone, Mobinil). Etisalat's plan was developing new offers that make Etisalat distinguishable from other competitors. Etisalat was the first telecom operator in the region to introduce a mobile phone service, and was one of the early adopters of GSM technology and 3G and MMS in 2003, and most recently, the Blackberry service in 2006, which makes customers deal with Etisalat. Etisalat did an environmental scanning on people using Mobile phones before opening in Egypt which helps Etisalat to know that people can agree a third telecommunication corporation and deal with Etisalat.

2. Organizing:

The autonomy designed into employee's jobs is less, because Etisalat's employees work in group team more than in individuals. Etisalat has a very important thing that all Etisalat's departments interact with each other which makes Etisalat as the 6th largest company in The Middle East and 140th in the Financial Times Top 500 Corporations in the world. These are factors that perhaps categorize Etisalat among the well organizes corporations.

3. Leading:

In Etisalat, Managers are concerned with increasing employee job satisfaction, because when employee job satisfaction increases, company's success increases in turn. The leadership styles in Etisalat are very appropriate and therefore successful.

4. Controlling:

Sometimes Etisalat allows Etisalat's employees to control their own actions, which drives them to innovate, develop and be responsible for their own individual actions, although sometimes managers have to interfere to control work done at certain points of time. Using such techniques, Etisalat increases its employee performance as well as their evaluations.

Organizational Culture of Etisalat:

1. Vision:

There vision is of a world where people’s reach is not limited by matter or distance. People will effortlessly move around the world, staying in touch with family, making new friends as they go, as well as developing new interests. Businesses of all sizes, no longer limited by distance, will be able to reach new markets. Innovative technologies will open up fresh opportunities across the globe, allowing the supply of new goods and services to everyone who wants them.

2. Mission:

Etisalat's mission is to extend people’s reach as stated in their slogan. At Etisalat, we are activiely developing advanced networks that will enable people to develop, to learn and to grow.

Dimensions of Organizational Culture of Etisalat:

1. Attention to Detail:

Attention to Detail is too high, that's because Etisalat cares about every single detail like customer follow up, which means that the company keeps in touch with their customers by many ways not only by calling them, but by offering many offers that are suitable for their customers. Etisalat also provide a catalog attached with all its SIM Card for informing customers how to operate it in their mobile phones, and several catalogs containing information about Etisalat and important service numbers like credit inquiry and customer services…..etc. For Example, Etisalat's Website has on-line stores and service providers hosted within the web site, which are operated by third party merchants. If a Customer needs to use or order any service or product from any of them, note that any information Customer provides, once transferred to the relevant merchant, is beyond Etisalat’s control. Additionally Etisalat may also request information on several elements of Customer Service. User feedback is vital, appreciated and enables Etisalat to enhance the Quality of Customer Service Etisalat provides. All these services and other services make the customers delighted as well as attracts more customers and this is all due to Etisalat's attention to details and their knowledge of what customers want and what make them delighted.

2. Outcome Orientation:

Etisalat's outcome orientation is low. This is basically because Etisalat does not look for the outcome only (profit), but also for the customers' expectations that will pamper their expectations. And also because Etisalat is newly started in Egypt, therefore it has to exceed customers' expectations and to beat the strong competitors in the same region (Vodafone and Mobinil), which are competing themselves by more offers, discounts and new services to delight their customers. Etisalat also needs more attention from the people in the region to attract people to it, so it makes a lot of advertising and also attractive advertising; to attract customers to Etisalat from all around the areas where its services are able to reach.

3. People Orientation:

People orientation in Etisalat is high. People working in Etisalat, work under one condition which is to achieve the organizational goal (satisfy the customer needs with lowest cost and price possible). Also there are many other factors affecting the people working in Etisalat Company, such as a suitable working environment, which has a big role in making the employees work efficiently and friendly with each other. Also salaries earned by the operating staff is a factor of great importance that greatly affects people orientation in the company, because salaries are not suitable, chances of employee's efficiency to decrease is likely high. The third important factor is the Incentives that employees get provided with. Incentives must be high in order to encourage staff to work. These factors are all achieved by Etisalat in order to increase and attain the highest level of people orientation possible. Etisalat's provides special offers to its employees, to improve their working mood and provide a sense of satisfaction in their work. An example of these offers is like giving every new employee

a new and special number for their normal life, as well as decreasing the cost/min. for each employee to employee. These offers and more make people orientation in Etisalat relatively high.

4. Team Orientation:

High, because its employees prefer to work in groups rather in individuals. Therefore they achieve many goals in that field and reach the main and the important goal of any organization easily and which is to make people trust Etisalat and to deal with Etisalat, because of its good and strong offers which are near to people and available for everyone on this country either poor or rich, for businessmen or for youth and children. Etisalat succeeded also to make a well entertainment which had an important role in the success of any organization (funds, the mainly thing), and which also leads to make every home in Egypt and all over the Arabic world use Etisalat telecom without be troubled from anything.

5. Aggressiveness:

Low, because no organization can succeed while its employees are competing themselves. But Etisalat's employees are really helping each other and cooperate with each other to achieve the organizational goal and to build higher and higher brand name than it is now.

6. Stability:

High, due to the large size of Etisalat organization and the top managers of this organization that take the right and the well decisions and well actions in the right time without forgetting the rights of its customers or its employees, and also due to the huge funds Etisalat has from many sources and the important source of funds to any organization -and Etisalat specially- is the advertising, which attract more new customers, and it's not the only way to make the organization stable and strong, but there are many other successful reasons and facts help the organization to grow up, and that what Etisalat did. Etisalat didn't depend on only one way to grow, but other factors affect Etisalat like constant external cash flow and the support of local governmental establishments like the Egyptian post authority.

7. Innovation:

High, Etisalat offers a range of innovative services to help the individual and the enterprise! In 1982, Etisalat was the first telecom operator in the region to introduce a mobile phone service, and was one of the early adopters of GSM technology, introducing it to customers in 1994. Since then it has established itself as a regional pioneer by introducing both 3G and MMS in 2003, and most recently, the Blackberry service in 2006. Mobile users enjoy the benefits of excellent voice and data applications such as WAP, GPRS, 3G, MMS, Push to Talk, Blackberry services and others. And because Etisalat is Ranked by The Middle East magazine as the 6th largest company in the region in terms of capitalization and revenues, so Etisalat has to be more innovated and creative to make risks while developing new things and to facilitate things to people and to attract more and more customers, and to build a very strong relationships with their customers, and these things will be done by doing new things for its them and also available for everyone to pay for it.

External Environment analysis:

Competitors:

"ECMS Mobinil" the first GSM operator in the Egyptian market and "Click GSM Vodafone" (formally Click GSM), which was the second GSM operator to be granted a license to operate in the Egyptian market are the only two competitors for Etisalat in the Egyptian GSM market. Whereas Etisalat was free to roam in the deserts of the U.A.E until Integrated Telecommunications Company PJSC "du" the second GSM service provider in the U.A.E popped up to share Etisalat its emirate revenues. Etisalat entered the Egyptian market to face two large operators where in the U.A.E it became a competitor after monopolizing the market for years.

Competition in Egypt:

1998 ECMS (Egyptian company for mobile services) with its three shareholders France telecom, Orange telecom and Orascom Telecom established Mobinil as the first GSM operator in the Egyptian market, providing 16 million Egyptians with its services. Mobinil is the first Egyptian GSM provider with its Egyptian shareholder Orascom telecom acquiring 47.2 per cent of the corporation.

Anticipating firstly in 1998 in Egypt Click GSM Vodafone started as a joint venture between Vodafone, Airtoch and the two local partners (Raya Telecom & Telecom Egypt), Alkan and EFG-Hermes.

Vodafone is an international brand name in the world mobile communications industry, with operations in 25 countries and a –Consumer base of some 65 million subscribers worldwide of which more than 13.3 million are in Egypt. Vodafone currently holds a 60 per cent stake in Click.

While Vodafone and Mobinil acquired their GSM operating licenses at roughly the same time, the former was a typical Greenfield project, having to build the network infrastructure before commencing operations in November 1998.

Competition between the three operators has put downward pressure on prices, particularly on interconnection fees. Vodafone was the first to introduce prepaid services, with the presence of the two competitors driving prices. The tariff structure and connection charge for the three GSM service providers are very similar, and these may seem to imply subtle collusion. However, the Telecommunications Regulatory Authority maintains strict control over the movement of tariffs charged by the three companies.

Competition in the U.A.E:

In the U.A.E Emirates Integrated Telecommunications Company PJSC ended Etisalat's GSM market monopoly in 2005. The company has an authorized, issued and paid up capital of AED 4 billion. Following a public sale of shares by the founding shareholders, the company is owned 40% by the Federal Government, 40% divided equally between Mubadala Development Company and TECOM Investment and the remaining 20% owned by public shareholders. The company trades on the Dubai Financial Market (DFM), under its trade name " du ".

Governmental issues:

There are factors that governments may impose on telecom companies other than rules and regulations that can affect directly the organization in turns of profit and other financial issues. Taxes are of one of these major factors. Taxes imposed affect the company's pricing of its services, which therefore increases costs for the company, forcing it to raise prices of its services.

In Egypt an act of reducing telecom industry taxes allowed the telecom companies in Egypt to reduce prices of their services and draw more users to GSM services. Thus making the Egyptian telecom market an attractive one, this was one of the causes that attracted telecom industries to Egypt to obtain the third operator license.

In an auction with nine consortiums, Etisalat won Egypt's third GSM operating service license for a license fee of USD2. 90billion. In addition to this enormous license fee Etisalat is to pay the Egyptian government 6% of its revenues instead of the 3% minimum that the government had stipulated. An additional expense of USD 1 billion must be invested to set up its mobile network, creating total additional direct investment of USD 4 billion.

There has been an introduction by the Government of a charge of the development tax of 1% for the development of the telecom industry, but no date has yet been set for the introduction of this tax. Etisalat is not obliged to pay any taxes, for its taxes are inclusive of all its fee expenses. This is an advantage for Etisalat since it doesn’t have any tax expense later. But at the same time it may be disadvantage since the government partially shares Etisalat's profit instead of collecting taxes from them.

In the U.A.E the situation with the Emirati government differs than the one in Egypt. Etisalat's majority is owned by the U.A.E government, as Etisalat monopolized the telecom market till 2005, so there were no tax liabilities till its monopoly ended. With the introduction of the second telecom company the government shares in etisalat reduced. This enhanced a 40 percent tax on profits, from both companies. This tax is not yet applied by the government, since the authorities are still considering the current situation of the market in trials to attract more investors to the market; no taxes may be applied at all on any mobile telephony company till 2020.

Shareholders:

Etisalat is majority-owned by the government of UAE with a 60% holding of the shares. Individual UAE shareholders hold most of the remaining 40%, although some foreign investment funds have managed to find ways of owning Etisalat shares, according to a recent report by the Economist Intelligence Unit. The major shareholders of the 40 percent owned by individuals are Humaid Al Tayer with a 15 percent share, and a 25 percent share for all remaining shareholders of which 12 percent goes for Sultan Al Shamsy, one of the leader business men in the U.A.E. and the remaining 13 percent for Rashid Al Mazro'oey, owner of one of the U.A.E's major real estate companies Al Mazro'oey corp.

Etisalat's ownership shares

60%

15%

12%

13%

25%

Federal Govmt.

Humaid Al Tayer

sultan Al Shamsy

Rashid Al Mazro'oey

Etisalat also has a certain number of local subsidiaries including E-marine (100%) which is involved in submarine cable installation, maintenance and repair, E-vision (100%) which is a cable TV provider and Thuraya (35%), the Abu Dhabi based mobile satellite Telecoms Company.

Whereas in Egypt Etisalat Misr is actually owned by Etisalat with the majority of shares counted to be 66 percent as well. The rest is divided between Mawarid Finance of the U.A.E by a share of 4 percent, Egyptian National Postal Organization 10 percent, National Bank of Egypt 12 percent, and Al Naboodah Investment L.L.C of the United Arab Emirates 8 percent.

Mohamed Al Neaimi Mawarid Finance's CEO stated that Emirates Telecommunication Corporation (Etisalat) is playing a tremendous role in leading the development of the Egyptian Telecommunication market and has succeeded in attracting 1 million customers in the first 50 days of its operation. He added that such anticipation is not a dream but rather the conclusion of the policy which Etisalat carries and setting a target of reaching 10m subscribers in Egypt by 2010, a market share of 30%.

These are the shareholders in Egypt who run the Etisalat Misr or the Etisalat in Egypt. Etisalat's ambitious strategy to be among the top 10 telecom operators in the world by 2010 has led the corporation to an array of acquisitions during the past two years.

Etisalat also owns shares now of 35% in Etihad Etisalat - Mobily (the second GSM services provider in Saudia Arabia), 40% in Canar Telecommunications (the second fixed-line network in Sudan), 34% in fixed-line and mobile telecom services provider Zanzibar Telecom in Tanzania, 50% in pan-African mobile operator Atlantique Telecom (operates in six countries in Africa), 26% in Pakistan's largest telecom company Pakistan Telecommunication Co.

Technological Issues:

Technology is a very important aspect and an essential in the basic structure of any telecommunications company. Technological advances are taking place on a daily basis, where all communication companies have to catch up and remain up to date. These advancements range from on ground standing networks for data transfer up to satellites orbiting the entire network coverage region in order to enhance the data transmitting process.

Here in Etisalat, the latest technological advances are updated on to the current networks and all their transmitting devices. Here is a list of the network technology Etisalat uses to provide its services:

GSM (Global System for Mobile Communications)* Provides basic data services* Provides voice service through digital network* SIM card (Subscriber Identity Module card) stores phone number, connection information, and may store an address book.* This allows a user to switch devices without needing to contact the service provider.

GPRS (General Packet Radio Service)* Extends the GSM network* Allows for advanced data serviceso Use device as Modemo Use device as web-browsero etc* Data transmission is significantly faster than GSM (up to 54 kbps)

CDMA (Code Division Multiple Access)* Technology is patented by Qualcommo As such all CDMA's use Qualcomm processors and network technology.o More expensive to build then GSM / GPRS deviceso Processor is slower than on the GSM / GPRS deviceso Provides maximum data rates up to 300 kbpso Only a small fraction (50 – 60 kbps) of this is available today

Mobitex (Two-way packet-switch network)* Originally designed for text pagers

* Used by the BlackBerry 95x, 85x* Network coverage is limited to metropolitan areas* Radio uses very little power, allowing batteries to remain charged for several weeks* Mobitex devices are being phased out by Research in Motion

EDGE (Enhanced Data for Global Evolution)* An extension to the GSM / GPRS networkso More than three times faster than GPRSo Average download speed of 100 – 130 kbpso Burst speeds up to 200 kbps

Using the above technology, Etisalat was able to provide the following services in a very advanced manner: Location-based Services:This service allows Etisalat mobile phone users to find nearby places of interest by sending an SMS to a defined number. MMS and eWAP users can receive a map image of the area, with the places of interest marked.

DVB-H:Etisalat is displaying the DVB-H technology (Digital Video Broadcasting- Handheld), which brings television to mobiles in a much more advanced manner.

Voice & Messaging: Here is a variety of voice and messaging services Etisalat provides.

Voice Mail

Voice SMS:The Voice SMS service enables Etisalat mobile customers to send and receive voice clips in the same way that they send and receive text SMS.

Voice calls Conference call SMS alert SMS Online

3.75G:

A 3.75G system will be able to provide a comprehensive IP solution where voice, data and streamed multimedia can be given to users on an "Anytime, Anywhere" basis, and at higher data rates than previous generations. 4G will be a fully IP-based integrated system. This will be achieved after wired and wireless technologies converge and will be capable of providing between 100 Mbit/s and 1 Gbit/s speeds both indoors and outdoors, with premium quality and high security. This advanced system allows its holder to have the following services from Etisalat:

Mobile TV Multiplayer Gaming Video calling High speed Internet 3.5G Push Mail :

Etisalat is launching a service for mobile customers similar to the Blackberry solution, but which does not require any special handset or hardware. Using eWAP access, Etisalat mobile customers can download an application that can then enable them to link any email account to their mobile account. New email arriving at that account will then be directed to the mobile phone instantly.

Opportunities:

Etisalat in Egypt has a very great opportunity of having a large customer base exceeding that of its current competitors and that is due to certain factors;

Firstly, because of the relatively large market, with a constantly increasing number of consumers of GSM and telecommunication services. Etisalat here offers low prices to attract customers from current competitors, in addition to expanding its networks to areas that receive no coverage from current competitors. Thus, increasing its customer base, which was actually achieved, by gaining one million customers and going up in a period of eight months.

Secondly, unlike the other two competitors etisalat misr has an opportunity to retain a very large portion of its revenues for further investments and enhancements. That’s basically due to the tax exemptions etisalat gained after incorporating its taxes along with the purchase of their operating license. Apart from that etisalat also has lots of support from local authorities that provide etisalat with a very firm base enabling it to engage in the fierce competition.

The third most important opportunity is that Etisalat is the only telecom operator in Egypt that offers a bunch of unique services that are gaining more attention from the market and are getting in need as with the development of the current telecom technology. Those services are considered a very deadly weapon against other competitors as etisalat is the only operator that acquires the right to own such technology in Egypt.

Threats:

Threats pointed toward Etisalat in the Egyptian market are relatively low and do not provide any dangers on its current performance nor can they affect Etisalat's performance, as they can be resolved if given a considerable portion of the managements time and planning.

The first threat that Etisalat may be facing is a combined alliance between the other competitors in order to prevent any further loss of customers to Etisalat. This is in terms of sharing services amongst each others customers to encourage new customers to chose either one of the and lose no additional customers from their current base.

Any increase in taxes will form a possible threat on Etisalat as by decreasing current revenues that are in desperate need by Etisalat for developing and expanding its current network system and coverage, which if altered by any newly imposed tax will delay all the current plans settled by Etisalat.

The third threat is a threat that may have an effect on Etisalat only after a period of six years, is a technological threat. This is because Etisalat's license for the current technology it acquires will end after six years, this is considered as a golden opportunity for the other two competitors to get hold of Etisalat's technology and hence Etisalat will no more have the competitive advantage it had, and the competition would be put down.

Strengths:

Team work is very much respected in Etisalat and employees as well as managers are trained to have such a relationship with each others as the pay is good and there are incentives within the workplace that do not need individual competition.

The empowerment that the organization gives to their employees is very important and plays a huge role in increasing the loyalty of employees and helps a smooth environment to exist. Etisalat has been around for a while now and they know how to do work due to their existence in the UAE before coming to Egypt. This existence helps having a tradition and having a sense of how to fix things when needed. Moreover having an experience in the market gives the organization an advantage in dealing with the employees and how to work efficiently within the rules of the organization.

In Etisalat as well as many other organizations there is a training course to employees and managers to develop and advance the skills they have so that they can build a good employee-employee relationship as well as the employee-customer relationship which we can call customer service. Such training as well as the emphasis on team work and general respect in the organization makes it possible for a strong internal culture.

Weaknesses:

Every company when joining a new region must have its weaknesses. Etisalat has joined the Egyptian region very recently and still has not built the needed internal culture as other rivals such as Vodafone. The administration and management still needs to be worked on and trained until it reaches the desired level of profession to be able to deal with everything that could happen in day to day dealing with employees.

Over all the pay in Egypt is not as good as in other countries so many employees could think of going to other places which will mean more turnover rate. Although Etisalat provides transportation for employees but still the traffic in Egypt gets too jammed that people might prefer finding a job else where that is closer or more convenient.

The service and the instruments needed to have a good coverage are still low and needs to grow. This is one of the most important weaknesses that Etisalat must work on or it will lose a lot of the customers it has. Moreover the customer service is still not trained enough to deal with anything that could come up if any complaint was recieved

All information and data gathered exclusively belong to the following team members:

Editors and chief in charge:

Islam El Hamouly

Ahmed Hamdy

Feras Issa

Information and data collectors:

Zeinab aziz

Alfred Rizk

Tamer Nassar