An analysis on performance dynamics of an individual’s expertise in
Bangladesh.
A study on Teletalk Bangladesh
Ltd.
SL No.
|
Topic
|
Page No.
|
1
|
Tittle Fly (Cover Page)
|
(Cover Page)
|
2
|
Tittle Page
|
Group list
|
3
|
Acknowledgement
|
1
|
4
|
Table of Contents
|
2
|
5
|
Introduction
|
3
|
5.1
|
Methodology
|
3-4
|
5.2
|
Sources of Data
|
4
|
5.3
|
Objective of the study
|
4-5
|
5.4
|
Significant of the study
|
5
|
5.5
|
Data collection method
|
6
|
5.6
|
Limitations of the study
|
6-7
|
6
|
Body of the assignment
|
8
|
6.1
|
Introduction
|
8
|
6.2
|
Company overview
|
9
|
6.3
|
Management hierarchy
|
9-10
|
6.4
|
Company product & services
|
11-16
|
6.5
|
Market share analysis
|
17
|
6.6
|
Corporate level strategy
|
17
|
6.7
|
Business level strategy
|
18
|
7
|
SOWT analysis
|
18-23
|
8
|
Findings
|
24-26
|
9
|
Conclusion
|
26
|
10
|
Recommendation
|
27-28
|
11
|
References
|
28
|
5.
Introduction
Tele density of
Bangladesh is still the lowest in South Asia, according to the statistics of
the International Telecommunication Union (ITU). About 1.56% among 100 people
has access to telecom facility. It shows the high potential in the
telecommunication sector in Bangladesh. The existing telecommunication
companies operating in Bangladesh have been enjoying competitive advantage
because of less global competition but this scenario is soon to be changes as
global giants are focusing on Bangladeshi markets with differentiated service
and competitive advantages.
Teletalk Bangladesh Ltd.
started its commercial operation on 31 March 2005 with skyscraping expectation.
One long year has passed since Teletalk started its commercial operation.
Considering the time of operation of other existing operators in this field,
this period might seem to be small, but considering the first year of operation
of an operator it’s pretty significant a time. Probably it’s the right times to
assess the achievements it has made – compare them with what it could have
achieved and also to scrutinize the opportunities and threats which are looming
over.
The most remarkable
success of Teletalk is the slump in Tariff Structure. As soon as Teletalk
announced its tariff the long-lasting oligopoly between other private mobile
operators were shattered. Healthy competition came into the mobile I market
causing almost 50%, if not more, reduction in price both in terms of SIM price
and usage rate.
5.1 METHODOLOGY OF THE STUDY
During the time of
preparing this report, we have carefully observed the financial department of
Teletalk and got some
information from the responsible officers at respective department. On the other
hand as a Government Company I got information easily from the website of
Teletalk.
Ratios I will be
working on as:
1. Current Ratio
2. Quick Ratio
3. Total Debt Equity
Ratio
4. Long term debt to
liabilities
5. Return on assets
6. Return on common
equity
7. Gross Profit Margin
8. Operating Profit
Margin Ratio
9. Pretax Profit Margin
Ratio
10. Net profit Margin
ratio
11. Total Asset
turnover
12. Fixed Asset turnover
ratio
5.2 SOURCES OF DATA
(a) Primary Sources
1. Conversation with
the respective officer
2. Relevant Documents
studies
(b) Secondary Sources
1. Internet
2. Annual Report
3. Related Books Study
5.3 Objectives of the Study
The broad objective was
defined at first. This broad objective was fragmented into two parts these are
following,
a) Broad Objective:
The broad objective of
this study is to know about the Tele history of Bangladesh and analyze the
determining the customer satisfaction of Teletalk Bangladesh Limited.
b) Specific objectives:
- To focus on the competitive
advantages enjoyed by the Teletalk Bangladesh Ltd. over its competitors.
- To understand the need gap of mobile
services in different regions of Bangladesh.
- To know the preferences and
expectations of the subscribers from a mobile service providers in
Bangladesh.
- To know subscribers perception of
the current mobile services offered by existing providers in Bangladesh
- To measure the sensitivity towards
tariff structure and acquisition cost of mobile connections.
- To understand the corporate culture
and environment.
- To implement my theoretical
experiences in my practical life.
5.4
Significant of the study
“An analysis on performance dynamics of an individual’s expertise in
Bangladesh of Teletalk” is a partial requirement in the
fulfillment for completed our strategic Management courses in MBA program. During
the study of MBA program we earn lots of theoretical knowledge, now it’s the
time to use that theoretical knowledge in practical life. But it’s true that
there may have lots of differences in theoretical knowledge and practical life.
Although by using that theoretical knowledge we are able to realize the
pre-practical field, which help us to handle the situation.
Finally, due to the
enlarged competition of the increased number of telecommunication
Industries, the
expectations of the subscriber have also increased. And now Teletalk also
Introduce share for
public. So it is an important sector for investment.
5.5 Data
Collection Method
In most of the cases we
have mailed to the Teletalk Bangladesh Ltd. for collecting data. A week later
they were contacted to collect the responses but not all questionnaires were
found completed. This part of the research was too difficult and painstaking
because it required frequent information to the respondents to collect all the
responses. We have also visited their website where we got lot of information
which is more valuable for our completing assignment. It took about 1 week to
cover all the respondents.
5.6 Data
Analysis
No complex analysis was
performed in this study because this very new topic needs a primary research in
our country. May be this primary study will then show the ways to go for
in-depth study which may require more complex analysis of data. Method of rank
order was conducted to find out the most important factors affecting the choice
of Mobile Phone Company by subscriber.
5.7 Scope of the
Study
This study covers only
Dhaka City because of possible complexity and difficulty in covering whole
country and because of shortage of time and manpower required for the survey.
Corporate clients, Dealers and individual customers are the main population of
the study.
5.8 Limitations
of the study
Limitation, which we
have faced while doing our report are discussed below:
- Since the Teletalk at its early
stage in Bangladesh, not all even are well-known with the service of the
mobile company. One of the major limitations faced while conducting
the study was to communicate with the selected respondents because they
were very busy with their regular jobs.
- As, I had more dependence on the
primary sources, so there might be some level of inaccuracy with those
collected information. Though, adequate verification and cross checking
was used, to minimize the error level.
- Confidential information regarding
past marketing and sales information was not accurately obtained. Alike
all other business holders also very conservative and strict in providing
those information. Still we have tried our best in obtaining that
sensitive information, as much as possible.
- Lack of experiences for implement
theories to the practical life.
- Problem in selecting the topic.
- Limitation of time.
- Lack of information as for
assigning into non relevant department.
6. Body of the
assignment
6.1
Introduction
The report is based on
the only state run telecommunication company Teletalk Bangladesh Ltd. we have
discussed in the report Teletalk’s countrywide expansion, diversified business
activities, and the financial performance of the company. Teletalk has been
doing business for years. In this global competitive world all business
organizations need to create an effective value proposition for the company
that attracts the customers. To increase company’s profitability and make a
strong value added relationship with its customers, it tries to use Customer
Relationship Management concept in its business operation.
It is the only state
run mobile phone operator in Bangladesh whose parent company’s name is BTCL
(Bangladesh Telecommunications Company Ltd.). The main objective of Teletalk
Ltd. Is to build up an available data communication service network all over
the world through voice call, sms, internet, and other value added services,
which is an important part for the success of today's business. For this reason
Teletalk Ltd. utilizes some sort of modern business techniques. By providing
cell-phone service Teletalk earn lots of profit. Year to year changes their
financial performances we have shown. In our study we try to show their
financial performance analysis from 2008 to 2012.
In the report we have
come up with several ratio analyses which basically state company’s year to year
performance. Stake holders may come to know the focus areas of any financial
report from the analysis of mine. Our analysis demonstrates a clear view on
year to year growth of Teletalk along with its several segmental operations.
And at the last appendix part is given to take the quick look on the data
analyzed and to enhance the reliability of the report.
6.2
Company overview
Teletalk Bangladesh
Ltd. Is a public Ltd. Company, registered under the Register of the joint stock
companies of Bangladesh. All shares are owned by the Government of the People’s
Republic of Bangladesh. Teletalk continues to grow and engage their customer’s
through clear commitment of offering high quality products and services as well
as leading customer’s retention and loyalty programmers. Teletalk continues to
be a part of the revolution that’s connecting millions of Bangladeshi people
and around the world. Teletalk Bangladesh Ltd. was established keeping a
specific role in mind. Teletalk has forged ahead and strengthened its path over
the years and achieved some feats truly to be proud of, as the only Bangladeshi
Operator and the only operator with 100% state owned and engineering human
resource base, Teletalk thrives to become the true people’s phone- “Amader Phone”.
SUCCESS TIMELINE
Date of Incorporation
26 December, 2004. Commercial launching of operation 31 March, 2005.
Inter-connection agreements with other operators In July, 2005. Commencement of
SMS operation 12 October, 2005. International Roaming (Soft launching) 30
November, 2006. Best IT User Award 2005 In 2006.
6.3
Management Hierarchy
The company has a board
of Directors consisting of Chairman and Managing Director and Govt. High
officials. Then One Board Secretary performs task as a representative of the
Board of Directors. There are seven General Managers are responsible for
different Departments. All GMs directly report to MD. Every GM is supported by
Deputy General Manager, Manager, Deputy Manager and Assistant Managers.
6.4
Company Product & Services
The
Company has country-wide strong telecom network covering 61 district
headquarters, major upazillas and highways. It has 21 customer care centers
throughout the country. Teletalk offers a wide range of services to its
customers. Teletalk has different packages of like GPRS, Push-Pull services,
SMS, Tale-charge, Post-paid connection, Pre-paid connections etc. Like other
operators, Teletalk has different value added services like, Color Ring Back
Tone (CRBT), Pre-paid Bonus, and E-Pay System.
GPRS
Teletalk
offers unlimited internet browsing facility for TK.800 per month or only 2
paisa per minute on actual usage basis for both post-paid and subscribers. One
can use this facility by using data-cable in computer also. Handsets with GPRS
option enable this facility. Through GPRS, the subscribers can use the
facilities like browsing, email, internet chatting, data transfer etc.
Push-pull services
Like
ordinary SMS, one can receive answer to a question s/he asks. By using this
push-pull service, one can have the latest updates of important events like
cricket matches. Besides, other important information like weather forecast,
prayer time, quotes, horoscopes and especially sehri-iftar timing during
Ramadan are also available.
SMS
An SMS of 160 characters
each for TK.1.00 only available both in English and Bangla.
ISD and EISD
Every
subscriber of Teletalk gets the opportunity of Economy ISD / (EISD) to more
than 50 countries @ TK.7.50 per minute. Under this facility, the subscriber
should dial 012 (instead of Dialing access code 00), then country code, then
area code and finally the desired number. Tele-charge Teletalk, very
recently, has introduced ‘Electronic Recharge’ system termed as ‘Tele-charge’. This
system enables the subscribers to recharge their accounts by any denominations
within the range from TK.10 to TK.5, 000. The subscriber is not required to buy
any scratch cards for such recharge.
Variety of connections
Like
all other mobile operators, Teletalk’s connections are broadly divided into
post-paid, prepaid and PCO (public cal office) connections. Varieties in
post-paid and pre-paid SIMs are briefed under
Post-paid
Post-paid
package has been designed for high user group, the entire country being
considered as a single zone. The subscribers can select three numbers that
provide them reduced tariff round the clock.
Rajanigondha
At
a connection fee of TK.950 only, it enables the user to have the facility of 1
second pulse and 3 fnf connectivity with no monthly line rent. Minimum monthly
bill is TK.500 only but no security deposit.
Shapla
With
connection fee of TK.590 only, Shapla provides lowest call charge of TK.40 at
all time to any operator. This has additional advantage of migration from any
post-paid connection. This connection needs minimum monthly bill of TK.1,000
with security deposit of TK.1,500 only.
Pre-paid Standard
This
has no line rent. The whole country is a single zone. This package also offers
reduced tariff of two Teletalk numbers or one Teletalk and one T& T number
round the clock. The first pulse is
30
second and the subsequent pulses are of 15 seconds.
Padma
This
package had been designed for subscribers living outside the metropolitan areas
of Dhaka, Narayangonj and Gazipur. Subscribers however can use this SIM with
the metropolitan areas, but need to pay some additional charges. Connection fee
is cheaper than other packages. Scratch cards validity is life-time and other
facilities are same as of other pre-paid packages. All the connections of
Teletalk provide free incoming facility.
Color Ring Back Tone
The
subscribers will be able to define by themselves the ring back tone, if
desired, to be heard by a caller. Pre-paid Bonus: Pre paid subscribers will be
given automated bonus package in terms of their volume of calls made from
Teletalk.
E-Pay system
By
using this system, not only the subscribers of the Company, any person will be
able to pay bill for his/her utility services through nominated agents of the
Company without hassle of going to banks.
Missed call Alerts
The
subscribers, even if disconnected from network, will be informed (on
re-connection) of all the calls made to his phone during the period of
disconnection.
Value Added Services
This
is a newly introduced value added services by Teletalk. This is a automated
push pull service. A Teletalk subscriber needs some types of information like
Jokes, Weather, Taxi, Horoscope, Quotes, Emergency, International Weather
Forecasting, and Cricket. The Teletalk subscribers apply following process and
charge reduction 1 TK per message.
Jokes
|
joke<space><joke
number>
Example:
joke 020
|
Joke
Number: 001 – 038
|
Weather
|
wt<space><city
name>
Example:
wt dhaka
|
City
Name: Dhaka, Delhi, Tokyo, Bangkok, Beijing, Singapore,
London, New York, Paris, Moscow, Calcutta, Chittagong, Barisal, Bogra,
Sylhet, Sydney, Melbourne, Karachi
|
Taxi
|
taxi<space><division>
<space><taxi
type>
Example:
taxi dhk yellow
|
Division:
dhk, cht, khl, syl, jes, raj, brs
Taxi
Type: yellow, black
|
Horoscope
|
hor<space><sign>
Example:
hor ari
|
Signs:
ari, leo, sag, tau, vir, cap, gem, lib, aqu, can, sco, pis
|
Quotes
|
qot<space><quote
type><space><quote number>
Example:
qot love 023
|
Love
Quote Number: 001 – 095
Fun
Quote Number: 001 – 038
Birth
Quote Number: 001 – 076
Friend
Quote Number: 001 – 043
|
Emergency
|
emrg<space><division>
<space><ph
num type>
Example:
emrg dhk pol
|
Division:
dhk, cht, khl, syl, jes, raj, brs
Ph
Number Type: pol, fire, amb
|
International
Weather Forecasting
|
fc<space><city
name>
Example:
fc new york
|
City
Name: Dhaka, Delhi, Tokyo, Bangkok,
Beijing, Singapore, London, New York, Paris, Moscow, Calcutta,
Chittagong, Barisal, Bogra, Sylhet, Sydney, Melbourne, Karachi
|
Cricket
|
cric<space><first
3 alphabet of cricketing country>
Example
for Bangladesh :
cric ban |
DIGITALIZATION
Few
salient activities of Teletalk in line with the theme of “Digital Bangladesh” E-Education
services related to providing remote Education: Housing and maintaining of
the results of all boards; Publishing results of PSC, JSC,SSC, HSC and
equivalents through SMS and Website and furnishing paperless results to the
respective institutes; Application and fee collection for re-scrutiny of JSC,
SSC and HSC exam results; Electronic student information form which is online
registration for JSC, SSC, HSC and equivalent students of all educational
boards with signature and photo.
E-Admission:
Services
related to admission in universities and educational institutes: Online
application fees collection through SMS and internet for over 50universities
and educational institutes, 22 public and 49 private medical colleges, 49
polytechnic and 29 general colleges.
E-Health:
Medicare
services for obstetric/expecting women and health worker, information and
indices on public health through SMS.
E-Application
for job:
Receiving
application, fees and sending admit cards for jobs in Non-Governments Teachers’
Registration and Certification Authority (NTRCA), Bangladesh Army, Sonali Bank,
Directors of Secondary & Higher Education.
E-Payment:
Payment
of BTCL telephone bills through telecharge.
E-Ticket:
Teletalk
subscribers can purchase ticket of Bangladesh Novo Theater using their prepaid
accounts.
E-Purge:
In
order to purchase sugarcane through digital system and through all out
assistance of A2I project of Prime Minister’s office in 2010-11 “Digital Purje
Management” has been adopted and implemented successfully in Mobarakgonj and
Faridpur Sugar Mills through Teletalk.
District
e-services:
Services
regarding retrieving information on different arenas through sms from “ One
Stop Service” centers in 64 Districts have also have also been launched through
Teletalk.
E-Registration
with BMET:
An
online registration through internet and SMS submitted by a Bangladeshi
national who intends to register with BMET for overseas employment.
E-lottery:
Developing
and launching of electronic lottery for few organization including Ahasania
Mission.
Interactive
Voice Response (IVR) Based Early Warning and Disaster Management
Information
dissemination service:
Early
warning and disaster management information dissemination as well as cautionary
signal broadcast have been implemented for the people living along the coastal
belt through Cell broadcast. Under the Bureau of Disaster Management piloting
is done in Cox’s Bazar and Sirajganj districts. After Dialing short code 10941
customers have to press 1 for “ Weather forest”, 2 for “ Inland port Signal”
and 3 for “ Flood Forecast” for getting information through IVR.
SMS
and Mobile Banking:
Teletalk
has been providing SMS banking services for more than 5 banks including Prime
bank Limited and Trust bank.
SMS-Voting:
Teletak
developed the SMS voting Gateway for Selecting & wonders of nature.
6.5 Market Share
Analysis
The
Number of Mobile subscriber crossed 100 Million land marks reaching the figure
101.205 Million in April-2013.The subscriber base was 90 million in last year
April-2012 where the mobile penetration was 61.83%. With present subscriber
base mobile penetration has been increased to 66.36% with a growth of 10% per
Anum.Total population has been considered basing on Population & Housing
census of BBS. Currently there are 6
mobile operators in Bangladesh. They are namely-
Grameen
phone: Joint
venture ownership 62%Telenor and 38% Grameen Telecom.
Banglalink: Joint venture with Orascom Telecom
Co. originated from Egypt.
Robi: Joint venture between Telecom
Malaysia Berhad TM and A. K. Khan& company limited
Airtel: An investment of Indian Bharati
Airtel.
TeleTalk: Public limited company but 100%
shares have been owned by the government of Bangladesh.
Citycell: Joint venture with SingTel Asia
pacific investment Pvt. limited.
Operators
|
Active
Subscribers
|
Grameen
Phone Ltd. (GP)
|
42.372
million
|
Banglalink
Digital Communications Ltd.
|
26.309
million
|
Robi
Axiata Ltd. (Robi)
|
21.697
million
|
Airtel
Bangladesh Ltd. (Airtel)
|
7.557
million
|
Pacific
Bangladesh telecom Ltd. (Citycell)
|
1.425
million
|
Teletalk
Bangladesh Ltd. (Teletalk)
|
1.844
million
|
Total
|
101.205
million
|
6.6
Corporate Level Strategy
Teletalk is one of the
most disciplined organizations in Bangladesh. It follows many rules and
regulation in the organization. They have Code of Conduct. But the employee of
this organization is very friendly. There in no sir or no madam inside of the
organization. Everyone calls each other bhaiya or apu. They think all are same
in the organization and give same respect to all.
6.7
Business Level Strategy
Basic objective for
which the company was formed are highlighted below:
• To provide mobile
telecom service to the people from the public sector
• To ensure fair
competition between public and private sectors and thereby to safeguard public interest.
• To meet a portion of
unmitigated high demand of mobile telephone.
• To create a new
source of revenue for the Government.
7.
SWOT Analysis
A SWOT analysis stands
for Strengths, Weaknesses, Opportunities, and Threats and is a simple and
powerful way to analyze company’s present marketing situation. SWOT Analysis is
a powerful technique for identifying Strengths and Weaknesses, and for
examining the
Opportunities and
Threats organization face.
What makes SWOT
particularly powerful is that with a little thought, it can help us uncover
opportunities that we are well placed to take advantage of. And by
understanding our weaknesses, we can manage and eliminate threats that would
otherwise catch our unawares.
More than this, by
looking at ourselves and our competitors using the SWOT framework, we can start
to craft a strategy that helps us distinguish ourselves from our competitors,
so that we can compete successfully in current market.
7.1 Tools of SWOT Analysis
Strengths
- Patents.
- Strong
brand name.
- Good
reputation among customers.
- Cost
advantages from proprietary know-how.
- Favorable
access to distribution networks.
Weaknesses
- Lack
of patent protection
- A
weak brand name
- Poor
reputation among customers
- High
cost structure
- Lack
of access to key distribution channels
Opportunities
- An
unfulfilled customer need
- Arrival
of new technologies
- Loosening
of regulations
- Removal
of international trade barriers
Threats
- Shifts
consumer tastes
- Emergence
of substitute service
- New
regulation
Strength
|
Weakness
|
|
|
Opportunities
|
Threats
|
1.
Teletalk can use the image of local and government owned organization.
2. Introduction of new technology
and services.
3. Expand the market in the rural
area.
4. Teletalk can use the
experience of BTTB.
5.Teletalk can use soft switch
network,
|
1. An upcoming mobile service
provider named WARID TELECOM a concern of Dhabi group and present market
rivals.
2. The invention of technology
which is new modern and consumer oriented.
3. Another invisible threat is
land phone operator.
|
7.2 SWOT Analysis of Teletalk Bangladesh
Ltd
Analysis of Strengths
- Subscriber inclination to Teletalk
as a government owned organization: People have
a deep inclination towards Teletalk . Because subscribers have more
confidence in the government institution. They think that they might get
some extra benefit from Teletalk like lower call rate, optical fiber
facilities etc. rather than other providers.
- Teletalk’s all
connections are ISD & EISD: It’s a big
strength of Teletalk. It’s the only SIM which has such a versatility of
connections having ISD, Economy ISD service along with both incoming and
outgoing connectivity with any of the land phones. This is not seen to
other providers. It gives a tremendous competitive advantage to the
Teletalk Bangladesh ltd over its respective competitors.
- Teletalk is the only
indigenous company using GSM service: Teletalk is
the only local organization which is providing GSM technology in this
country. The other local organization named pacific telecom is providing
CDMA technology which is more expensive. So Teletalk can take this
advantage over its competitors.
- It has also provided incoming
facility up to 2015: Teletalk have a strong
strength over its competitors in case of incoming facility. Teletalks
present incoming duration is up to 20015. Which is 20 times more than
other competitors?
- From the very beginning it is
providing free TNT incoming: Teletalk is the
only provider which is providing T&T incoming free from the very
beginning. Whether other operators providers providing such kind of
facility just now.
- Moreover its
contribution to our economy can be notable: As
a Govt. owned company Teletalk has a strong contribution in our national
economy. It’s one of the high profits generating Govt. organization in
Bangladesh.
- Low cost provider: The most remarkable
success of Teletalk is the slump in tariff structure. It is the lowest
cost provider in Bangladesh telecommunication market.
Analysis of Weaknesses
- Premature entrance in
mature market: The biggest weakness was a premature entrance in a
mature market. As soon as anyone could catch hold of a Teletalk mobile, he
started comparing it with the services of Grameen, Banglalink or Robi.
- Lower number of human resource: The
number of employee of Teletalk is too much lower regarding its
requirement. As a result the service quality and customer satisfaction go
down.
- Failed to identify difference
between developed market and developing market: Teletalk
failed to identify the difference between developed market and developing
market. Their strategy making is not match with the current situation.
- Lower promotional activities: The
promotional campaign of Teletalk is not too much strong like other
providers of Bangladesh as result consumers are less aware about Teletalk
and its package.
- Weak management system: poor
coordination among different functional department of Teletalk as result
service efficiency goes down.
- Poor
marketing: The overall marketing activities of
Teletalk is not much rich like other competitors.
- Lower number of value added
service: Teletalk Bangladesh Ltd. is
providing a less number of value added service to its subscriber regarding
its competitors. As a result subscribers are becoming dissatisfied on the
Teletalk service. The comparison of value added services of different
operators are mention below. Whereas Teletalk providing less number of
value added service.
Analysis
of Opportunities
- Teletalk can use the image of local
and government owned organization: General people have a deep inclination to the govt. owned
organization especially to the local organization. People want to keep the
money into own country. So Teletalk can use such kind of soft corner of
consumers and promote the service to them.
- Introduction of new technology and
services:
Teletalk can implement new and consumer oriented technology in this sector.
Because people have inclination to new and modern technology. Now a day’s
people are ready to accept the new thing.
- Expand the market in the rural
area: Till now there is
huge area is remain out of coverage where a huge number of target
consumers are available. So Teletalk can bring that respective area under
coverage and catch those potential consumers.
- Teletalk can use the experience of
BTTB: BTTB one of the old
and experience organization in Bangladesh telecommunication sector. They
have special experience about the consumer behavior of Bangladesh. They
know about the consumer’s need and want. So Teletalk can take help from
the BTTB about this matter and implement those criteria in the competitive
market. Which things, give Teletalk competitive advantage over its
respective competitors.
- Teletalk can use soft switch
network: The soft
switch network separates the bearer and control layers and a soft switch centric
network can be built on different types of bearer networks such as TDM, IP
and ATM unlike, legacy network that depend on a single specific switching
technology. Based on strategic planning and the developmental phase, an
operator can select suitable bearer mode technologies for different
phases, from the perspective of long term sustainable development, the IP
centered soft switch network defines the future. So Teletalk can use this
technology and practice competitive advantage over rivals.
Analysis of
Threats
- An upcoming mobile service provider
named Airtel: At
present Bangladeshi mobile sector is almost saturated , after that a new
company named Airtel is going to starts its operation in Bangladesh which
going to become a big threats to Teletalk and other operators.
- The invention of technology which
is new modern and consumer oriented: Technology is changing with day run. It changes the consumer’s
demand pattern by offering different attractive features. As a result
consumer shifts from one technology to other technology, which might
create a big problem to Teletalk and others.
- Another invisible threat is land
phone operator: In
Bangladesh land phone operator is expanding the market with day run.
People are switch from mobile to land phone operators. As a result
ultimately the number of mobile user is decreasing and create problem to
the mobile operators as well as Teletalk.
8.
Findings
Current Ratio: Is
a liquidity ratio that measures a company's ability to pay short-term
obligations. We know the higher the current ratio, the more capable the
company is of paying its obligations. A ratio under 1 suggests that
the company would be unable to pay off its obligations if they came due at that
point. While this shows the company is not in good financial health, it does
not necessarily mean that it will go bankrupt - as there are many ways to
access financing - but it is definitely not a good sign. For current ratio we see that in 2008 it was
0.56, in 2009 it was
0.49, in 2010 it was 0.51, in 2011 it was 0.42 and in 2012 it was 0.49. All of
the findings are under
1.
Quick Ratio: We
know it’s an indicator of a company's short-term liquidity. The quick ratio measures
a company's ability to meet its short-term obligations with its most liquid
assets. The higher the quick ratio, the better the position of the
company. We see from 2008-12 it is
0.54, 0.48, 0.49, 0.48, 0.48
consecutively. In 2008 and 2010 it did well.
Debt-Equity ratio: Provides another
vantage point on a company's leverage position, in this case, comparing total
liabilities to shareholders' equity, as opposed to total assets in the debt
ratio.
Similar to the debt
ratio, a lower the percentage means that a company is using less leverage and has
a stronger equity position. For
Teletalk the findings from 2008-12 is 0.86, 1.38, 1.57, 1.89, 6.26 consecutively. The worst case is in
2012 as the Company took huge loan from Government.
Return on Assets Ratio:
Gives
investors an idea of how effectively the company is converting the money it has
to invest into net income. The higher the ROA number, the better,
because the company is earning more money on less investment. From 2008-12 the ROA ratios are -
0.07, -1.92, -0.06, 0.02, 0.024
consecutively. The Company only did well at 2011.
Gross Profit Margin
Ratio: It is not an exact estimate of the company's pricing
strategy but it does give a good indication of financial health. Without an adequate
gross margin, a company will be unable to pay its operating and other expenses
and build for the future. In general, a company's gross profit margin
should be stable. It should not fluctuate much from one period to
another, unless the industry it is in has been undergoing drastic changes
which will affect the costs of goods sold or pricing policies. From 2008-12 the ratios are 1.03, 1.19,
0.92, 0.47, 0.48
consecutively. Here it’s quite fluctuating. So the performance is poor.
Operating Margin Ratio:
Gives
analysts an idea of how much a company makes (before interest and taxes) on
each dollar of sales. When looking at operating margin to determine the quality
of a company, it is best to look at the change in operating margin over time
and to compare the company's yearly or quarterly figures to those of its
competitors. If a company's margin is increasing, it is earning more per dollar
of sales. The higher the margin, the better. From 2008- 12
the ratios are -0.82, -0.72, -0.08, 0.16, 0.09 consecutively. Last two years
they did pretty good.
Though it’s negligible.
Net Profit Margin Ratio:
Is
a ratio of profitability calculated as net income divided by revenues, or net
profits divided by sales. It measures how much out of every dollar of sales a
company actually keeps in earnings. Profit margin is very useful when comparing
companies in similar industries. A higher profit margin indicates a more
profitable company that has better control over its costs compared to
its competitors. Here we see
Teletalk only made profit at 2011, for 1 taka they made a profit of 0.04 taka.
Total Asset Turnover: Measures a firm's
efficiency at using its assets in generating sales or revenue - the higher
the number the better. It also indicates pricing strategy: companies with low
profit margins tend to have high asset turnover, while those with high profit
margins have low asset turnover. From
2008-12 the ratios are 0.25, 0.89, 0.53, 0.56, 0.49. Here the trend is
comparatively steady.
Fixed Asset Turnover: Ratio
is a financial ratio of net sales to fixed assets. The fixed-asset turnover
ratio measures a company's ability to generate net sales from fixed-asset
investments -specifically property, plant and equipment (PP&E) - net of
depreciation. A higher fixed-asset turnover ratio shows that the
company has been more effective in using the investment in fixed assets
to generate revenues. From
2008-12 the ratios are 0.33, 0.52, 0.88, 0.82, 0.69.
Here we see from 2009-12 the ratios were higher.
9.
Conclusion
TELETALK
Bangladesh Limited is the first government owned private cellular operator
in Bangladesh. TELETALK Bangladesh Limited has a goal to receive an
economic return on its investments and to contribute to the economic
development of Bangladesh where telecommunications can play a critical role.
TELETALK Bangladesh Limited believes in service, a service that leads to
good business and good development. Telephony helps people work together,
raising their productivity. This gain in productivity is development, which in
turn enables them to afford a telephone service, generating a good business.
Thus development and business go together.
The
main goal of TELETALK Bangladesh limited is to deliver SIM kits to the
subscriber at a cheap rate and make a competitive market. All the categories of
subscribers had collected their SIM kits through banks. This is very
satisfactory of SIM collection rate. When the Subscriber received their SIM
kits, the innocent smile of them shows recessive support to TELETALK. This is
the great achievement of TELETALK Bangladesh Limited.
In
services sector FDI inflow in Bangladesh is enormous. Telecom sector is become
the core of interest in FDI in Bangladesh. So it is expected in the long run
TELETALK has to face an immense competition. As well as we are also
forecasting the current PCO culture might change if the profit margin reduces
at current ratio. By this offer interest of TELETALK and PCO’s owners
reciprocally proportionately will sustain. In the long run they can able
to face the market competition successfully.
10. Recommendation
After seeing the
findings part we will recommend Teletalk to increase their Current Assets.
Otherwise they will not
be able to pay short term obligations. They should try to keep their Gross Profit
Margin Stable. Unless the Company will face drastic changes which will affect
the costs of goods sold or pricing policies. They should look to the Net Profit
Margin. They are in continuous loss. They only made profit in 2011. We think
the main problem of Teletalk is there fund problem. This problem can be
overcome by short term loan fund which they can collect from IPO. They can
collect short term loan from the commercial Banks. They need to improve their
information system and by employing experts to take a good and quick decision
making. They need to ensure the Network Quality for the satisfaction of the
Customer. They should improve interaction between employees and make them
helpful to each other. They should improve their logistic system. We found
their main revenue comes from the Dealers Sales so that Teletalk must need to
improve their Dealer Management System. They can improve their accounting
information system by implementing a central software system.
Specific
Recommendation:
Marketing:
- Number
of new subscribers should be added
- Number
of new package should be aired
- Increase
the promotional campaign
Operations:
- Downtime
per BTS in minutes per month
- Downtime
per unit in core networks in minutes
- Reduction
of fault recovery time
Planning:
- Number
of new subscribers should be added
- Extension
of coverage area in square kilometers
- Expansion
of transmission backbone in kilometers
- Introduction
of new technology
IT:
- Number of systems should be
automated in a year
Finance:
- Increasing revenue
- Decreasing Expense
- Increased utilization of allocated
budget
Human resource:
- Hire potential employee
- Provide proper training to employee
- Evaluation system
11.
References
Annual
Report
Teletalk’s Annual Report 2008-2014.
Web
Sites
www.telenor.com
www.teletalk.com.
www.google.com
www.dscbd.org
www.wikipedia.org
http://www.reportlinker.com
http://www.investopedia.com
Books
Corporate Finance (Ross/ Westerfield/
Jaffe)
Intermediate Financial Management (F.
Brigham/C.Gapenski)
