Telenor Pakistan

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TELENOR PAKISTAN: IMPACT OF ORGANIZATIONAL CULTURE ON BRAND PERFORMANCE By: Muhammad Mohiuddin Baig

Transcript of Telenor Pakistan

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TELENOR PAKISTAN: IMPACT OF ORGANIZATIONAL CULTURE ON BRAND

PERFORMANCE

By:Muhammad Mohiuddin Baig

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Brief Overview

Literature Review

Research Methodology

Findings & Analysis

Results & Conclusion

PRESENTATION OUTLINE

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Objective: To analyze the impact of organizational culture on brand performance

Using a grounded theory standpoint, a survey for a sample size of 100 has been conducted to gather data on brand perception and performance

Three research papers considered

Base Paper: The Impact of Organizational Culture on Brand Performance

BRIEF OVERVIEW

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DESIGN OF STUDY

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LITERATURE REVIEW

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Base article chosen: “Interactions between Organizational Cultures and Corporate Brands” by Leslie de Chernatony and Susan Cottam.

The other two articles include:

◦ A Step by Step Process to Build Valued Brands by Peter Boatwright and Jonathan Cagan

◦ The Impact of Culture on Brand Perceptions: A Six Nation Study by Thomas Foscht and Cesar Maloles

ARTICLES SELECTED

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Definitions of Culture:

“A company’s overall philosophy, a set of values and beliefs that shape the way people think

and behave”Hankinson and Hankinson (1999)

“The pattern of shared values and beliefs that help individuals understand organizational

functioning and thus provide them norms for behavior in the organization”

Deshpande´ and Webster (1989)

ORGANIZATIONAL CULTURE

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Develop an understanding of the interaction between organizational cultures and corporate branding which contributes to brand performance.

Corporate culture was a factor in organizational success; specifically, strong, strategically appropriate and adaptive cultures were positively associated with long-term economic performance. (Kotter and Heskett ,1992)

Link between relatively open, externally oriented organizational cultures and better performance (Deshpande´ and Farley, 2004)

CONT’D…

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Behavior of employees which give the brand substance and influences perceptions(Alloza et al., 2004; Bitner et al., 1990; McDonald et al., 2001; Gabbot and Hogg, 1994)

Without an appropriate and supportive organizational culture, there is little chance of employees living the brand (Schultz, 2003)

CONT’D…

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“There is little doubt that organizational culture affects performance; in the long run, it may be the one decisive influence for the survival or fall of the organization” (Hofstede, 1998 )

Culture has also been found to influence employee retention rates (Sheridan, 1992)

CONT’D…

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Cultural pitfalls to avoid while

seeking brand success

Inconsistency between organizational culture

and brand values

Internal value consistency between

organizational subcultures

Overly 'tough' organizational culture

Focus on quantified, financially centered performance targets

Unsuccessful or poor thought out cultural change intiatives

CULTURAL PITFALLS TO AVOID WHEN SEEKING BRAND SUCCESS

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Societal values change over

time

Organizational culture is no longer synchronized with

societal values

Culture stagnates and brand suffers

Cultural change efforts initiated

within organization

Factors impeding and

facilitating culture change

Culture change unsuccessful or

short-lived

Culture change successful

Organizational culture is

synchronized with societal values and

brand thrives

Organizational culture adapts

naturally to societal value

change

ORGANIZATIONAL CULTURE CHANGE IN RESPONSE TO CHANGE IN SOCIETAL VALUES TO ACHIEVE BRAND SUCCESS

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A company should stay focused on managing talent pool as closely as managing brands

The dimension 'Rewards based on merit vs. politics' was listed as the single most important issue that drove a company's success, as well as the biggest opportunity gap

EXCERPTS FROM THE OTHER ARTICLES

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RESEARCH METHODOLOGY

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Qualitative research which is inductive

From the data, emerging patterns are identified and a theoretical framework is developed, rather than testing hypotheses formed from existing theory

Once data is collected, incidents within the data are compared and categories/themes are formed

GROUNDED THEORY

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Target Population

◦ Current users of Telenor from NBS

Sample Element

◦ Age: 18-25 years

Sample Size

◦ 100 current users of Telenor from NUST Business School

Rationale

◦ Greater speed of data collection due to time constraint.

◦ The sample size is assumed to be representative of the greater population

and their opinions while rendering a perfect fit with the scope of the

project.

SAMPLING DESIGN

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Judgemental sampling was used since a criterion has been defined according to which only current users of Telenor are considered in the study

SAMPLING TECHNIQUE

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Primary Method: Surveys◦ Self-administered Surveys◦ 8 Questions

Secondary Data Analysis: Previous work done on this area of research (World Wide Web)

RESEARCH METHOD USED

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FINDINGS & ANALYSIS

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CULTURE AT TELENOR PAKISTAN

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Sources of Culture

Vision

Values

Organizational Structure

People (and HR

practices)

Organizational Ethics

SOURCES OF CULTURE AT TELENOR PAKISTAN

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MAKE IT EASY

•We're practical. We don't complicate things. Everything we produce should be easy to understand and use. Because we never forget we're trying to make customers' lives easier.

KEEP PROMISE

S

•Everything we set out to do should work, or if it doesn't, we're here to help. We're about delivery, not over promising, actions not words.

BE INSPIRIN

G

•We are creative. We strive to bring energy to the things we do. Everything we produce should look good, modern and fresh. We are passionate about our business and customers.

BE RESPECTF

UL

•We acknowledge and respect local cultures. We do not impose one formula worldwide. We want to be a part of local communities wherever we operate. We believe loyalty has to be earned.

VALUES

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Organic Structure

Open Culture

7 layers in the hierarchy

Open communication at all levels

ORGANIZATIONAL STRUCTURE

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71%

29%

Do you think Telenor has designed packages and promotional campaigns aligned with the culture?

YesNo

ORGANIZATIONAL ETHICS

In most of advertisements they project themselves as the care taker of the values of Pakistani people, so they claim to cherish the core cultural norms and values of the Pakistani people.

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Service Quality and Performance

through a superior network design

Convenience through the

distribution setup

Simplicity and trust through pricing structure and transparency

Efficiency through alignment of structure

and strategy

GAINING COMPETITIVE ADVANTAGE

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Survey Response

COMPANY RATING (AVERAGE OF OBSERVATIONS)

Company Rating

Mobilink 3.27

Ufone 2.41

Warid 3.2

Zong 4.3

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Highest ARPU (Average Revenue per Consumer)

In the year 2006 to 2007, Telenor Pakistan was able to increase its subscriber base by 200%

It has created the second largest mobile network and the largest and most advanced data network in the local market

BRAND PERFORMANCE

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18%

24%

22%

28%

8%

Reasons for using Telenor

Quality of ServiceLow PriceValued Added ServicesVariety of PackagesOther

SURVEY RESPONSE

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67%

33%

Customer Satisfaction with the quality of service

YesNo

SURVEY RESPONSE

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12%

54%

34%

Rate the customer service of Telenor

PoorAverageExcellent

SURVEY RESPONSE

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18%

52%

30%

Rate the promotional activities of Telenor

PoorAverageExcellent

SURVEY RESPONSE

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52%

48%

Will you switch if Telenor was involved in an unethical practice?

YesNo

SURVEY RESPONSE

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36%

64%

Will you switch if Telenor was involved in a controversy?

Yes No

SURVEY RESPONSE

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58%

42%

Will you still prefer Telenor if another telecom company in-troduces an attractive package/service?

YesNo

SURVEY RESPONSE

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The Pakistan Society of Human Resource Management’s Preferred Graduate Employer

  Award for Most Preferred Telecommunications

Company 2007 among MBA students

SAARC Communication Industry Conference 2007’s Most Innovative Mobile Operator Award and Mobile Operator with the Most Consumer Pull Award

  Telenor Global Brand Award for the year 2007

AWARDS

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All Pakistan Dawn Aurora Advertising Awards in three of five nominated categories in March 2007

The National Forum for Environment & Health’s Annual Environment Excellence Awards 2008

The Helpline Trust’s 2nd Corporate Social Responsibility Award 2008

CONT’D…

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RESULTS & CONCLUSION

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Telenor entered the market when it was very competitive

Through its culture and HR practices it was able to gain a competitive advantage over the others

Telenor has quickly assumed the number two position behind the largest organization Mobilink, who has been operating for 13 years

CONCLUSION

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The market is primarily dominated by the prepaid services

The market is characterized by price sensitivity and there is a need to provide coverage to remote and northern areas

CONT’D…

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“The performance of the brand needs to be backed by a strong culture to achieve its objectives.”

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Q & A