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9 Organization Structure:
The organogram indicates that the top-level management consists of the MD, the COO and
the CFO. The chief operating officer (COO) monitors the direct operations of the company,
whereas the chief financial officer (CFO) monitors the financial matters of the direct
operations. At the same time, they co-operate each other and report to the managing director
(MD).
The managing director is the direct supervisor of all the divisions and departments.
Currently, there are four divisions and four departments. The chief of the divisions are called
the general manager (GM). Conversely, the chief of the departments are called the head of
department. Every general manager has an assistant general manager (AGM) and the heads
of the departments are on the equivalent rank of the AGMs. Divisions deal with the core
activities of the company, whereas the departments deal with the supporting activities. Every
division has precise units and there is a head for every unit. Below, a concise description of
every unit is specified:
Product Development:
Product development unit is like the R&D unit of a company, which is responsible for
developing new products and services. This unit is closely related to the marketing research
unit and together the units come up with new service concepts and ideas. Product
development unit is also responsible for monitoring the core services (Pre-Paid and Post-
Paid). Like other units, this unit also has a head reporting to the AGM.
SME
SME unit right now is composed of five members who are responsible for analyzing the
current market situation and about the competitors’ progress. The SME Team generally
reports to the Head of Marketing. Although the SME product not yet launched but the
research is going on in full fledge. The SME team also responsible for the PCO (Public Call
office) products for the time being. In other way PCO is considered a on of the SME product.
International Roaming:
International roaming (IR) unit is basically responsible for ISD, international SMS etc
services. The core task of this unit is to negotiate with foreign telecommunication companies
and to expand the international coverage by making deals with them. There is a head of IR
who reports to the AGM.
Corporate Sales:
Corporate sales unit deals with the sales of products and services to other companies. The
unit makes agreements with different companies to be AKTEL’s corporate clients and only
handle the corporate level sales.
Direct Sales:
Direct sales unit is responsible for the sales of products and services to the mass customers
through the customer service centers. AKTEL has eleven customer service centers around the
country and these centers sell the services to the customers directly.
Dealer Management:
Dealer management unit oversees the dealers of the company around the country. AKTEL
has four dealers and one agent and they need to be monitored and supervised constantly. The
head of this unit reports to the AGM of Marketing.
Billing:
The billing unit is responsible for processing and monitoring the billing systems for the Post-
Paid users. The unit has a manager who reports to the AGM of IT.
Rating (Post-Paid):
This unit is responsible for charging the rates of Post-Paid service. The unit fixes per-minute
and pulse rates and also fix the pulse durations. It also changes the rates on demand basis.
Pre-Paid:
This unit only deals with the Pre-Paid service. It administers the e-fill and scratch card
systems. At the same time, it fixes per-minute and pulse rates and fix the pulse durations.
Product Configuration:
This unit is responsible for designing and developing products and services. It develops the
blueprint of the product-design.
Accounts Receivable:
This unit keeps track on the accounts receivables of the company while preparing the balance
sheet. As TMIB is a large company with thousands of financial transactions everyday, a unit
to keep track on the accounts is necessary.
Account Payable:
This unit keeps track on the accounts payable of the company.
Core Account:
Core account is an important unit of the finance division dealing with the budget and fixed
assets. The annual budget of various departments is prepared under the close observation of
this unit.
Revenue Assurance:
Revenue assurance unit consists of revenue assurance and fraud management. Revenue
assurance monitors the transactions and assures full protection of the finances. On the other
hand, fraud management protects the fraudulences take place in the daily transactions.
Corporate Finance:
Corporate finance unit consists of treasury management and L/C. Treasury management
deals with the inflow and outflow of the company, whereas L/C (Letter of credits) deals with
the L/C opening banks and other foreign banks.
Taxation:
Taxation unit takes care of the tax, VAT and tariffs of the company.
Costing:
This unit forecasts the costing of different departments and reports them regarding the
expected expenditure of any alteration.
Planning:
The planning unit makes plans regarding the technical matters such as the RF, SWITCH etc.
They assure the proper placement of technical devices and equipments.
Infrastructure:
The infrastructure unit selects the locations and builds the base transceiver station (BTS)
towers. They are also responsible for the maintenance of the towers.
Property Management:
The property management unit manages the technical equipments and assets.
INTERNAL
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EXTERNAL
TM International (Bangladesh) Ltd. commenced its journey with the brand “AKTEL” in
1997 as the 2nd GSM operator in Bangladesh. Since its inception, AKTEL has established
itself into a popular name among the community. Being one of the pioneers, AKTEL has a
strong brand image in Bangladesh and people recognize the name instantaneously. This
recognition has given the company an added advantage, as TMIB is operating in a very
competitive market.
Because of its attractive incentive packages and strong brand image in the job-market,
skilled workforces have grown an interest towards TMIB. This has given the company an
extra benefit, as the company can recruit the finest from the pool of employees.
Furthermore, TMIB frequently recruits young, enthusiastic, and resourceful employees
from reputed academic institutions. It also provide motivation among its employees by
offering extra inducements such as: awarding gold medals to best employees of the year,
organizing entertainment programs, providing transportation facility etc. These extra
services have enhanced employees’ motivation-level and loyalty.
Societal Marketing:
TMIB regularly takes part in charity functions and is renowned for donating money in
different deprived institutions around the country. The company has already donated
money, free-books, free-medicines, and free-SIM cards in various schools, madrasas, and
hospitals. It is also involved in societal marketing advertising. Recently the slogan campaign
of TMIB supporting the autistic children has attracted huge attention.
2.10.2. Weaknesses:
Poor Work Division Structure:
The departmental structure of TMIB is not precise and well thought-out. Each department
contains several units. However, the units are not separated by well-defined boundaries and
it is very difficult to distinguish among them. The employees do not have any specific ID to
track them separately department-wise.
Dealer Insufficiency:
TMIB has only 4 authorized dealers and 1 distributor, which is very insufficient for a
company covering network in 61 districts. As a result of inadequate number of dealers and
distributors, there is high possibility of Gray Marketing. If the SIMs or cards of TMIB pass
on the hands of unauthorized dealers, it would be very difficult for the company to maintain
a consistency in price and quality.
2.10.3. Opportunities:
Incapable Public Sector:
The public sector in Bangladesh is not capable of meeting the market demand of
prospective phone users. In addition, the lengthy and bureaucratic process of public offices
has discouraged people to use T&T and public mobile phone (TeleTalk). For these
inconvenience systems, people in our country have adopted private mobile phone services
as an alternative. This is a great opportunity for TMIB to grab this huge market of
prospective phone users.
2.10.4. Threats:
Widest Coverage of Grameen Phone:
2.11.3. VAT:
All mobile companies need to pay 15% VAT. This is a sector where the government does not
have any investment while enjoying the revenue. This is unique to Bangladesh. Users are
paying the 15% VAT which they do not want to pay.
2.11.4. TAX:
Every year companies pay large amount of taxes. The companies need to pay taxes even for
the equipments they purchase. Recently, the government has imposed a sales tax of Tk. 900
on the purchase of each SIM card. A survey has been conducted to assess the impact of the
introduction of the new tax, which shows that the growth of new subscribers dropped by two
to seven per cent in June 2005. During June, only 76000 new clients were added.
As long as there were equal amount of traffic there were no problem. But there was a time
when, more tariff congestion came from AKTEL. GP asked AKTEL to share the profit. As
AKTEL denied, GP started to block the calls coming from AKTEL. It created unnecessary
2.12 Recommendations:
Nonetheless, even after confronting such risks and having internal weaknesses, TMIB has
maintained its dominance in the industry. The company has achieved many competencies
through its operation since 1997 and is trying to recover from its weak points. Though other
operators are trying their best to beat “AKTEL”, TMIB is still ruling the industry with the
promise of being “Clearly Ahead”.