UNITED INTERNATIONAL UNIVERSITY

School of Business & Economics (SoBE)

ASSIGNMENT TOPIC

Analysis of external & internal environment of “GRAMEENPHONE”

SUBMITTED BY

AHSAN HASIN SIAM

SUBMITTED TO
Id: 111222030
YEASMIN ISLAM Serial: 26
Department of Business & Economics (SoBE) Section: B
Course Title & Course Code: Principles of
yeasmin@[Link] Management ( MGT -1307)
 An organization’s environment

E very organization, whether business or non- business, has its environment. The
organizational environment is always dynamic and ever-changing. Changes today are so
frequent, and every change brings so many challenges that managers and leader of the
organization need to be vigilant about environment changes. The environment of an organization
consist of its surroundings- anything that affects its operations favorably or unfavorably.
Environment embraces such abstract things as an organization’s image and such remote visible
issues as the country’s economic conditions and political situations. Business organizations and
their activities are always being affected by their environment. The environmental forces,
abstract and visible need careful analysis.

 Organizations have two types of environment:

1. External environment

2. Internal environment

 External environment have two part

1. General environment
2. Task environment
The external environment of an organization includes factors that are beyond the control of the
organization, such as technological advancements, political and legal changes, and economic
conditions and the internal environment of an organization includes factors that are within the
control of the organizational, such as its culture, leadership style, structure, and resources.
External factors can impact the organization’s ability to operate and achieve its goals and internal
factors can influence the organization’s ability to attract and retain talent, adept to changes in the
external environment, and achieve its strategic objective.

Short overview “GRAMEENPHONE”

GRAMEENPHONE is the largest telecommunications service provider in Bangladesh, with

over 80 million subscribers as of 2022. It was funded in1997 as a joint venture between Telenor
group of Norway and GRAMEEN Telecom, a non-profit organization established by novel peace
prize laureate MAHAMMAD YUNUS. Grameenphone provides a wide range of mobile
communication services, including voice call, text messaging, internet data services, music
streaming, and video on demand. In addition to its core business of mobile communication,
grameenphone is also committed to social responsibility and has undertaken various initiatives to
promote digital inclusion and support the development of rural communities in Bangladesh.
These initiatives include providing affordable internet access, promoting education and
healthcare through mobile technology, and small business development.

Analysis external & internal environment of “GRAMEENPHONE”

EXTERNAL ENVIRONMENT

The external environment of an organization and that may affect its operations, strategies, and
performance. These factors are beyond the control of the organization, but they can have a
significant impact on its success or failure. The external environment can be broadly categorized
into two types: the general environment and the task environment.

 General environment: the general environment includes factors that are external to the
industry factors that are external to the industry in which the organization operates, such as
political, economic, social, technological, legal, and environment factors. These factors can
affect the overall business climate and create opportunities or threats for the organization.

Grameenphone is a telecommunications company operating in Bangladesh. To conduct a general

environment analysis of grameenphone, we can consider the following factors:
1. political-legal environment: grameenphone operates in politically stable environment in
Bangladesh. The government has been supportive of the telecommunications industry and has
created policies to encourage investment in the sector.
Example1: Grameenphone operates ina politically stable environment in Bangladesh, which has
been favorable for the telecommunications industry. The government has introduced policies that
encourages investment in the sector, such as tax incentives for companies that invest in network
infrastructure.
Example2: the government also regulates the telecommunication industry through the
Bangladesh telecommunication regulatory commission (BTRC). Grameenphone has to comply
with regulations related to licensing , spectrum allocation, and consumer protection, among
others.

2. Economic environment: Bangladesh has a growing economy, with a large and increasingly
affluent population. This provides an opportunity for grameenphone to expend its customer base
and increase revenue.
Example1: Bangladesh has a growing economy, which has led to an increase in the disposable
income of its citizens. This has created an opportunity for grameenphone to expand its customer
base and offer more high- end product and services.
Example2: The COVID-19 pandemic has affected the economy of Bangladesh, leading to a
reduction in consumer spending. this has impacted the revenue of grameenphone , as people have
cut back on their telecommunications expense.
3. social-culture environment: Bangladesh has a diverse populationwith varying cultural and
linguistic background. Grameenphone has been successful in catering to the needs of different
customer segments by offering products and services that are relevant to their cultural and social
values.
Example 1: Bangladesh has a diverse population with different cultural and linguistic
backgrounds. Grameenphone has been successful in catering to the needs of different customer
segments by offering products and services that are relevant to their cultural and social values.
Example 2: Bangladesh is a Muslim-majority country, and Grameenphone has been sensitive to
this fact in its marketing campaigns and product offerings. For example, it has offered Ramadan
packages that include discounted call and SMS rates during the holy month of Ramadan.
4. Technological Environment: Technology is a key driver of the telecommunications industry,
and Grameenphone has been investing in advanced technologies to improve its network and
provide better services to its customers.
Example 1: Grameenphone has been investing heavily in advanced technologies to improve its
network and provide better services to its customers. For example, it has been rolling out 4G
services across the country to offer faster data speeds.
Example 2: The use of smartphones and mobile apps is on the rise in Bangladesh, and
Grameenphone has been quick to adapt to this trend. It has launched its own mobile app that
allows customers to manage their accounts, pay bills, and purchase packages.
5. Legal Environment: The telecommunications industry in Bangladesh is regulated by the
Bangladesh Telecommunication Regulatory Commission (BTRC). Grameenphone has to comply
with the regulations set by the BTRC and other relevant laws and regulations.
Example 1: Grameenphone has to comply with regulations related to licensing, spectrum
allocation, and consumer protection set by the Bangladesh Telecommunication Regulatory
Commission (BTRC).
Example 2: In 2019, Grameenphone was fined by the BTRC for not disconnecting unregistered
SIM cards, which are a security risk. The company had to pay a penalty of around $32 million.
6. Environmental Factors: The environmental factors refer to the impact of a business on the
environment.
Example 1: While Grameenphone does not have a direct impact on the environment, it has been
taking steps to reduce its carbon footprint. For example, it has been using renewable energy
sources such as solar power to run its network infrastructure.
Example 2: Grameenphone has also been promoting environmental sustainability through its
corporate social responsibility (CSR) programs. For example, it has launched a "Green Initiative"
to promote environmental awareness and encourage its customers to adopt eco-friendly practices.

 Task environment: Task environment refers to the specific external factors that directly
affect an organization's daily operations and performance. These factors are often seen as
"tasks" that the organization must manage to succeed, and they are usually more immediate
and tangible than the broader factors that make up the general environment. The task
environment typically includes the organization's customers, competitors, suppliers,
 distributors, regulators, and partners. These factors are all critical to the success of the
organization and require ongoing management and attention. By understanding and
managing the task environment effectively, organizations can adapt to changing
circumstances, build better relationships with customers and partners, and ultimately achieve
their goals and objectives.
1. Customers: The customers of Grameenphone are the individuals and businesses who use its
telecommunications services.
Example: One of Grameenphone customers is a small business that uses the company's mobile
data services to run its e-commerce website and communicate with customers.
2. Competitors: The competitors of Grameenphone are other telecommunications companies
that offer similar products and services in Bangladesh.
Example: Robi Axiata is one of the main competitors of Grameenphone in Bangladesh. It offers
a range of telecommunications services, including voice calls, data services, and mobile financial
services.
3. Suppliers: The suppliers of Grameenphone are the companies that provide it with the
equipment and services needed to operate its network infrastructure.
Example: Ericsson is one of the key suppliers of Grameenphone. It provides the company with
the network equipment and software needed to operate its telecommunications services.
4. Distributors: The distributors of Grameenphone are the companies that help it distribute its
products and services to customers.
Example: Grameenphone works with a network of distributors across Bangladesh to sell its
products and services. These distributors include small businesses and independent retailers.
5. Regulators: The regulators of Grameenphone are the government agencies that oversee the
telecommunications industry in Bangladesh.
Example: The Bangladesh Telecommunication Regulatory Commission (BTRC) is the main
regulator of the telecommunications industry in Bangladesh. It sets policies and regulations
related to licensing, spectrum allocation, and consumer protection, among others.
6. Partners: The partners of Grameenphone are the companies and organizations that it
collaborates with to offer additional products and services to its customers.
Example: Grameenphone has partnered with the International Finance Corporation (IFC) to
launch a mobile financial service called "Nagad." This service allows customers to transfer
money, pay bills, and, and purchase goods and services using their mobile phone.
 INTERNAL ENVIRONMENT

 Internal environment: The internal environment refers to the factors within an organization
that influence its operations, culture, and overall performance. These factors can include
organizational structure, resources, technology, policies and procedures, and the attitudes and
behaviors of employees. The internal environment is typically easier for an organization to
control and manage than the external environment, which is why many organizations focus
on optimizing their internal environment to improve their overall performance.
Understanding and managing the internal environment effectively is critical to the success of
any organization. By aligning the different aspects of the internal environment, organizations
can improve their operations, increase efficiency, enhance employee morale, and ultimately
achieve their goals and objectives.

1. Organizational culture: The organizational culture of Grameenphone refers to the shared

values, beliefs, and behaviors that shape how employees work together and interact with
customers.
Example: Grameenphone has a strong culture of innovation and collaboration, which is evident
in the company's emphasis on developing new products and services that meet the evolving
needs of its customers. The company also encourages employees to work together in cross-
functional teams to solve complex problems and drive innovation.
2. Organizational structure: The organizational structure of Grameenphone refers to the way
the company is organized and how authority and responsibility are distributed.
Example: Grameenphone has a hierarchical organizational structure, with clear lines of authority
and well-defined roles and responsibilities. The company is divided into several departments,
including marketing, finance, human resources, and operations, each with its own set of
responsibilities and reporting lines.
3. Resources: The resources of Grameenphone refer to the physical, financial, and human
resources that the company has at its disposal.
Example: Grameenphone has a significant amount of financial resources, which it uses to invest
in new network infrastructure, develop new products and services, and expand its reach across
Bangladesh. The company also has a large and highly skilled workforce, which is critical to its
success.
4. Technology: The technology of Grameenphone refers to the systems, tools, and processes that
the company uses to operate its business.
Example: Grameenphone uses a range of advanced technologies to support its
telecommunications services, including 4G and 5G networks, fiber-optic cables, and
sophisticated data analytics tools. The company also uses a variety of software applications to
manage its operations, such as customer relationship management (CRM) systems and enterprise
resource planning (ERP) software.
5. Policies and procedures: The policies and procedures of Grameenphone refer to the formal
rules and guidelines that govern how employees should behave and how the company should
operate.
Example: Grameenphone has a range of policies and procedures in place to ensure that it
operates ethically and complies with all relevant laws and regulations. For example, the company
has a code of conduct that outlines its commitment to integrity, transparency, and social
responsibility, and it has established policies related to data privacy and security.

Both the external and internal environments can directly impact Grameenphone, but the external
environment has a more direct impact. The external environment includes factors outside of
Grameenphone's control, such as economic conditions, technological advancements, legal and
regulatory frameworks, and competitive forces. These factors can directly affect Grameenphone's
performance, revenue, and market position. For example, changes in regulations or new
competitors entering the market can impact Grameenphone's revenue and market share. The
internal environment includes factors within Grameenphone's control, such as the company's
structure, culture, and resources. While these factors can also impact Grameenphone's
performance, they are not as directly impactful as external factors. Grameenphone can control its
internal environment to some extent, but external factors can disrupt its operations and strategy.
In summary, while both external and internal environments can impact Grameenphone, the
external environment has a more direct and immediate impact due to factors outside of
Grameenphone's control. Therefore, it is crucial for Grameenphone to regularly monitor and
analyze the external environment to stay competitive and adapt to changes.