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MGT201 Report Grameenphone

Introduction to Management (Independent University, Bangladesh)

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MGT201 Report on Grameenphone 1

MGT 201 Report on “Grameenphone”

Section: 07

Faculty: Ms. Afnan Ashfaque

Done by
1. Arvin Akther Porna - 1820273
2. Wafa Erin Khan - 1820316
3. Solaiman Shuborno - 1711102
4. Shahnaz Taiyaba - 1821614
5. Rahat Uddin - 1710250

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Table of Content

Content Page
number
Letter of Transmittal 3
Executive summary (Arvin) 4
Research methodology 4
Company overview (Wafa) 5
Journey of GP (Arvin) 6
Mission & Vission (Arvin + Wafa) 7
Organizational structure (Arvin) 8
Stakeholders (Solaiman) 11
Leadership (Rahat) 13
External Factors (Shahnaz) 15
Conclusion (Whole group) 17
Appendix 19
References 19

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Letter of transmittal

March 31, 2020

Ms. Afnan Ashfaque

Faculty

School of Business

Independent University Bangladesh

Subject: Submission report on “Grameenphone” management analysis

Dear Faculty,

We are submitting herewith our report named “MGT201 Report on Grameenphone” as partial fulfillment of
the course “Principles of Management” requirement.

The purpose of this report is to know the basic concepts of management. This report shows the different
functions of management of the leading telecommunication service provider of Bangladesh
“Grameenphone”.

Yours Sincerely
Arvin Akther Porna
Wafa Erin Khan
Solaiman Shuborno
Shahnaz Taiyaba
Rahat Uddin

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Executive summary

After a successful interview with Ms. Warda Siddika, Key Account Manager in Commercial Division of
Grameenphone we had a great understanding of the organizational structure, external factors, stakeholders
and leadership of Grameenphone. Grameenphone widely known as “GP” is the leading telecommunication
service provider of Bangladesh which is a subsidy of TELENOR, a company owned by the Norway
Government. GP has an organic organizational structure where it follows a special type of leadership to
ensure satisfaction and motivation for not only employees and customers but also for the managers itself.
Grameenphone has a key way to deal with work and utilize their internal and external factors to accomplish
their organizational goals. Ensuring the accomplishment of their organizational goals are not the only thing
GP is good at but also the way they keep and maintaining good relationship with each of their stakeholders
is unique and satisfying.

Research Methodology

This report is prepared on the basis of both primary and secondary data. Primary data was collected by
questioning the concerned people of the company during the period of the working hour. There were open-
ended and specific questions. The questionnaires are given in the appendix section; while secondary data was
collected from various printed documents like annual report etc. of the company from websites that are
mentioned in our Reference section.

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Company Overview

Grameenphone, widely abbreviated as GP, is the leading telecommunications service provider

in Bangladesh. Grameenphone is a telecommunication service provider in Bangladesh and currently
dominates 46.3% of the market share with a subscriber count of over 74 million. It was founded by Iqbal
Quadir and Dr. Muhammad Yunus. 55.8% of its share is owned by its parent company Telenor, which is
originated in Norway, 34.2% by Grameen Telecom Corporation and the rest 10 % by the public, since it is a
public limited company.

Grameenphone is the subsidy of the company Telenor. Hence Telenor is the mother company of
Grameenphone which is situated in Norway. Telenor is a government owned telecommunication company of
Norway (just like TELETALK in Bangladesh)
Grameenphone was introduced in Bangladesh between the time periods 1993 to 1997. They received a
license of cellular phone operation in Bangladesh on 28th November 1996 and started its operation on 26th
March 1997.

Grameenphone has been revolutionizing for Bangladesh and is recognized as one of the highest grossing
companies for many consecutive years. It was the first company to introduce GSM Technology, built a
cellular network that covers 99% of the country and one of the first to introduce 3G & 4G internet services in
the country later on. Moreover it was also the first among many operators to reach one million subscribers
milestone, followed by ten million subscribers and later followed by fifty million subscribers. According to
Grameenphone, they have invested near about BDT 347.4 billion to build a network infrastructure in
Bangladesh since 1997.

They have built the largest cellular network with over 15900 base stations in the country. Grameenphone’s
current chief executive officer is Michael Foley and they currently have 2412 employees working under
them. Moreover not only they are one of the highest grossing companies in Bangladesh, Grameenphone has
proven to be the most successful and profitable company for Telenor among its other subsidiary.
In Bangladesh majority of their customers are from Sylhet and Rajshahi. They have always tried to provide
their best for the Bengali population and even though in the recent times they haven’t been able to perform
their best due to some governmental issues but they are trying their best to come back from that. The
following are the mission and vision statement the core values of the company.

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Journey of Grameenphone:

1997 200 • A family of 1 million subscribers

• Launched Prepaid Product with PSTN Connectivity
3
March 26
The Journey began on the
Independence Day of
Bangladesh 2004
199 Family of 2 million
8 subscribers under the
Grameenphone umbrella

1998 Launched Mobile to Mobile

service (without PSTN Access)
2001
Launched WAP service
on small screen

• Launched djuice brand

• Sharing our smiles with 5 million
200
subscribers 5
• Revolution in electronic recharge
• Launched EDGE
1999 st
• Voice SMS for the 1 time in
Introduced first ever Bangladesh
Pre-Paid products

Catering to a massive • Introduced Pay For Me service

family of 20 million • Converted to a public limited company
2008 subscribers 200 2006
7 • Expanding horizons with 10 million subscribers
• Introduced new Grameenphone logo
• New era with classified sites
• Journey of Cellbazaar begins
• Bill Pay service added

2009 2015
• Launched Grameenphone Soaring like an eagle with 50 million subscribers
branded handset & internet modem 201
•Successfully listed on the Stock 4 •Launched EasyNet
Exchanges in Bangladesh •Launched Grameenphone KrishiSheba (27676)

2010 2013
Launched ‘MobiCash’ financial service
brand, Ekota for SME Launched 3G services in Bangladesh

•More customer centricity

2016
• Launched GP Online Shop
•Launched customer experience lab and • Introduced MyGP App
e-care solution • WowBox reached more than 6 million users
•Swapped the entire network • Revamped Healthline (789) service under the
name “Tonic”

2011 •Advancing towards the future with network swap

201 • Rebranded financial services under the
name
Providing communication solutions 2 “GPAY”
to 40 million subscribers
2017

•Celebrated 20 years of operation

•Introduced Digital Product Delivery

•Launched 4G Services in Bangladesh Platform (DPDP)

•Introduced New Number Series “013” in addition 201 •Launched operator agnostic marketplace
`Shoparu’
to existing “017” Series
•Reached the 70 million subscribers milestones
8 •Launched `MyPlan’, a complete Postpaid
solution

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MISSION
We are here to help our customers we exist to help our customers get the full benefit
of being connected. Our success is measured by how passionately they promotes.

VISION
Empower societies! GP provides the power of digital communication, enabling
everyone to improve their lives, build societies and secure a better future for all.

Core Competencies
The core competency of Grameenphone is integrity, innovation, inclusiveness and
effectiveness. As a most successful enterprise model in Bangladesh GP creates
competitive advantage among the telecommunication & cellular industry in
Bangladesh.

Values:
Make it Easy:

Everything Grameenphone (GP) produces are made easy to understand and use. They
always remember that GP try to make customers’ lives easier.

Keep Promises:

Everything Grameenphone does should work perfectly. If it doesn’t, they’re there to

put things right. They’re about delivery, not over-promising. They’re about actions,
not words.

Be Inspiring:

Grameenphone is creative bringing energy and imagination to our work. Everything

they produce should look fresh and modern.

Be Respectful:

Grameenphone acknowledge and respect local cultures. They want to be a part of

local communities wherever they operate. GP wants to help customers with their
specific needs in a way that suits way of their best.

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Organizational structure
Every organization has its management and employees, they are important for
achieving the organizational objectives. In every organization there is an
Organizational Structure which is a chart, shows the way of the nature of its authority
and responsibility configuration.

An organizational structure is a system that outlines how certain activities are directed
in order to achieve the goals of an organization (Klenton 2020). The formal
framework by which job and tasks are divided, grouped, and coordinated. Designing
the organizational structure involves decisions about six key elements:

1. Work Specialization 2. Departmentalization 3. chain of command 4. span

of control 5. centralization/ decentralization 6. Formalization

Work Specialization:

Work specialization is dividing work activities into separate job tasks. Individual
employees “specialize” in doing part of an activity rather than the entire activity in
order to increase work output. It’s also known as division of labor. Work
specialization makes efficient use of the diversity of skills that workers have.

Grameenphone (GP) does not encourage employees to stick to one specific job the
whole time in the organization. As they believe that doing one specific job all the time
might bore the employees of this generation. Once there was work specialization in
GP but nowadays managers gives different task to different employees. Hence it helps
increase the productivity and quality of the organization as employees are learning for
the betterment of their future in career and can also cover the shift for someone who
did not show up to the office.

Departmentalization:

Departmentalization is dividing an organization into different department, which

perform tasks according to the departments specialization in the organization.
Grameenphone has 2 types of departmentalization. One is functional and another is
geographical.

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The functional departmentalization:

The Geographical Departmentalization:

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Chain of Command:

It is the line of authority extending from upper organizational levels to the lowest
levels, which clarifies who reports to whom.

Grameenphone has a small chain of command as we can see from the functional
departmentalization.

Span of control:

It is the number of employees a manager can efficiently and effectively manage. If the
number of people reporting to each manager is too small the organization will be top
heavy, expensive to operate, stifling to initiative and a barrier to communication
throughout the organization (Fisch 1963). The span of control in GP depends on
different departments and each managers are responsible for controlling 3-10
employees according to the size of the departments.

Centralization or Decentralization:

Centralization and decentralization are two types of systems based on which the
decision-making takes place within a business or an organization. Under
centralization, the important and key decisions are taken by the top management and
the other levels are into implementations as per the directions of top level. On the

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other hand, Decentralization is a systematic delegation of authority at all levels of

management and in all of the organization. In a decentralization concern, authority in
retained by the top management for taking major decisions and framing policies
concerning the whole concern. Rest of the authority may be delegated to the middle
level and lower level of management.

Grameenphone always encourages their employees to take part in the decision making
process in the organization. The corporate culture of GP is open to allowing managers
to have a say in what happens. The company is geographically dispersed. The lower
level managers are capable and experienced at decision making. GP follows that
effective implementation of companies depends on managers having involvement and
flexibility in making decisions.

Formalization:

Formalization is the degree to which rules and procedures are followed in an

organization. "The formalized organizational structure consists of a hierarchical, top
down reporting and decision-making structure. It is recognized by the existence of
explicit, codified standards and regulations" (Schatz, 1999). A formalized structure
includes multiple layers of supervision, operational supervisors, top level directors or
department heads and middle managers. GP believes that a high degree of
formalization may actually lead to reduced creativeness because employees are used
to behaving in a certain manner. In fact, strategic decision making in such
organizations often occurs only when there is a crisis. A formalized structure is
associated with reduced motivation and job satisfaction as well as a slower pace of
decision making. The service industry like GP is particularly susceptible to problems
associated with high levels of formalization. Sometimes employees who are listening
to a customer’s problems may need to take action, but the answer may not be
specified in any procedural guidelines or rule book.

Stakeholders

GP is one of the top telecommunication service providers in Bangladesh and

therefore their array of stakeholders is vast. Starting from investors, managers,
employees who are few of the internal stakeholders, there are external stakeholders,

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like the customers, the government, BTRC, competitors, suppliers, pressure groups,
the third party partners. These are the few of the stakeholders we will be discussing:
Internal Stakeholders:
Investors: For every company their investors are the most important stakeholder
for them. There could be various types of investors in a company and since GP is
listed under the stock exchange, their shareholders are the one of the most
prioritized stakeholder for them. Shareholders are the part owners of the company,
who have invested in the company and expect dividends in return of their
investments. GP is the subsidiary company of Telenor who owns 55.8% of GP’s
share, 34.2% is owned by Grameen Telecom, and the rest 10% is held by public.
Telenor has decided to invest a further 400 million BDT because of its excellent
performance in Bangladesh. Gp has been the no.1 telecommunication service
provider with high returns for their investors, as their profit margins are higher than
any of their competitors.
Managers: GP has one of the best management team in the country and are
accountable for most of their success according to them. Like any other
organization, GP makes sure that their managers are properly taken care of, for
which GP offers them various sort of benefits that keep the managers as invested
and focused as one can be in an organization. They have bonus schemes for the
managers, provides them various non-financial incentives such as health care, year-
end holidays, along with financial incentives such as profit sharing. GP leaves no
opportunity to make their management team feel valued at their company.
Employees: For a company, their employees are the backbone of the organization
and are vitally important for an organization to reach their organizational goals. The
work environment of gp is one of the best with various activities for their workers
to blow off steam whenever required which keeps the workers always motivated.
They also motivate their workers by sharing profit among employees.
External Stakeholders
Customers: For any organization their customers are one of the most vital
stakeholders. GP holds their customers as their no 1 priority and has captured 46.3%
of the subscriber market share (as of January 2019). They have over 74 million
subscribers. The consumers also have high expectation from gp and ever since their
first day gp has tried their level best to live up to their consumers expectation.

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BTRC: Bangladesh Telecom Regulatory commission is a government body

responsible for controlling gp’s actions and providing them frequency. So, for every
operational activity and every new service gp comes up with, BTRC monitors and
guides the organization.
Competitors: The Bangladesh telecommunication market is somewhat of an
oligopoly market where very few organizations tends to provide the whole market.
Gp in the market has always worked as the trend setter and all the other companies
tend to follow gp and usually wait for gp to make the first move in the market.
Third party partner: for various task of the company, gp hires other companies to
do the tasks. For example, gp doesn’t own a call center and hires other call centers
to look after the task for them. On the other hand, not only call centers, gp has other
firms to help them with content, and device supplier.

Critical stakeholders

Even though gp considers each and every one of their stakeholders very important
for their company but there are some who are given more priority than others.
These are the stakeholders that has the most impact on the company and the
company would never want put them in a difficult situation
For gp their customers have always been their top most priority, and have always
tried to keep a hold on their customers with their creative marketing strategy and
attractive new offers. Since GP operates in a oligopoly market, a slight set back can
cause them a lot of customers, and thus a lot of business. But with their excellent
performance they have kept their consumers satisfied and have faced a market
growth ever since. They were the first company to bring 3g network into the
Bangladeshi telecommunication market. However in the past years, after 4g was
brought into the market, they were not able to provide their customers with their top
quality service but with their excellent marketing skills they have managed to keep
their customers with them.
On the other hand, gp’s employees are right next to their customers in their priority
list. According to gp, an healthy organization is one that has employees always
focused and dedicated towards the company. GP has various schemes and benefits
to always keep their employees satisfied. They provide health benefits not only to

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the employees but also their families which has proven to be very effective for gp.
Moreover, GP has a profit sharing policy towards their employees which has also
proven to be very successful and keep the employees more motivated. In the
previous financial year they paid each worker with 5 lakh TK as a share of profit.

Leadership

Leadership is the art of motivating a group of people to act toward achieving a

common goal. This is actually directing the workers according to a strategy to achieve
the company goals. Effective leadership is based upon ideas.
Leadership style influences the level of motivation. There are three major types of
leadership:
Autocratic leadership is when the leaders set boundaries for their workers. They tell
them what has to be done and how it has to be done, without getting any advises from
anyone.
Democratic leadership is when a few employees have a say in how they plan to get
things done but the final decision making right remains to the top authority.
Free Reign leadership allows the employees to make most of the decisions, however
the leader is still responsible for the decisions that are made but not as much as the
other two leadership styles. This style is mainly used when the employees are able to
analyse the situation and determine what needs to be done and how to do it.
Grameenphone however uses a modified version of democratic leadership. They
described their leadership style as a mixture of charismatic, participative and
supportive leadership style. They make groups of employees and assign them with
work, which they then decide how to achieve. However which group is assigned with
what work is decided by the higher authority and each group has a leader who is in
power of decision making on how to achieve the goal. This dividing into groups also
help the employees of Grameenphone to engage in creative thinking. When each
group completes a task, lets say sell 100 sims to a client their names get announced in
the GP office and also get financial rewards, this works as a motivational factor for
the employees to work harder.
Grameenphone believes that leadership and management are two different things.
They have leaders of every group but also have managers who look over the groups
because it isn’t necessary for a leader to be good at management. A leader has to

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inspire, motivate, support, and empower the group members where as a manager has
to manage, organize, plan, follow the vision and budget at the same time.
When asked about which is more important to them between cultural value, mission
and vision, they said they prioritized cultural value the most. The reason they do this
is because it helps them improve work efficiency. This is because culture stresses
common values and common goals. A strong culture produces employees with a well
tuned sense of direction and helps create common definitions of success, so the
company grows as a team.
Lastly they help new employees learn new things in a number of ways. They decorate
the whole Grameenphone headquarters with posters and banners which help the
employees to learn more about their organizational culture. They also provide online
classes to train the new and existing employees every four month. This helps them
learn new skills or learn ways to improve their existing ones.

External Factors of Grameenphone

Economy: In Bangladeshi market Grameenphone is holding the leading place of

telecommunication brand in the Bangladeshi economy, they are contributing mass
amount to the economy of Bangladesh. Also, They have the large percentage of
market share comparing to the other existing telecommunication companies in the
market.

Global: Grameenphone is the largest telecommunication of Bangladesh. It is

basically a joint venture company. The shareholders are Norwegian Telenor,
Bangladeshi Grameen Bank and Grameen Telecom Corporation of [Link]
company operates a digital mobile telecommunications network based on the GSM
standard in the 900 MHz, 1800 MHz and 2100 Mhz frequency bands, under license
granted by the Bangladesh Telecommunication Regulatory Commission (BTRC). The
table below gives an overview of the mobile spectrum licenses held by
Grameenphone Ltd.

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Global presence of Telenor:

Political/Legal: As a Leading telecommunication company of Bangladesh,

Grameenphone has a good relationship with the Government as a result, they get
less/no political/legal obstacles for operating their business. Another major reason is
Grameenphone is maintaining a strong bond with the UNICEF which gives
Grameenphone a competitive edge for existing in the Bangladeshi market.

Sociocultural: Grameenphone pays major importance to the sociocultural factors of

Bangladesh. They mostly design promotions according to the culture and also, they
always try to spread awareness regarding the existing problem through their television
advertisements. Another vital part is
Grameenphone promotes The official cricket
team of Bangladesh.
Also, Grameenphone takes measurable steps
about health and security of their employees as
well as their customers, Considering the
current pandemic health issue which is COVID-19 (Corona Virus) Grameenphone
first started remote office for their employees, they can work from their home to stay
safe, also, Grameenphone cancelled all the routine external meetings ,engagements
,events for the COVID-19. Moreover, for their customers Grameenphone first started
the caller tune awareness which is about the corona virus, whenever a customer calls
somewhere an automated recorded awareness message tells the customers what steps
can be taken for staying safe from the Corona virus.

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Technological: According to Grameenphone, it has invested more than BDT 347.4

billion (US$4.12 billion) to build the network infrastructure since 1997.
Grameenphone has built the largest cellular network in the country with
over 15,900 base stations. At present, over 99 percent of the country's population is
within the coverage area of the Grameenphone network.

The entire Grameenphone network is also GPRS/EDGE/3G-enabled, with

the 4G footprint growing rapidly, allowing access to dial-up quality speed Internet and
data services from anywhere within the coverage area. There are over 74 million
customers, with more than 37 million mobile data users on the Grameenphone
network. Grameenphone covers 99.5% of the Bangladeshi population, with 95.5%
under 3G coverage.

Demographic: Grameenphone started their operations in Bangladesh on March 26,

1997, the Independence Day of Bangladesh, Grameenphone has the largest network
with the widest coverage in the country. Recently it has become the first operator to
bring all the 64 districts of the country under its 3G and 4G network on the way of
fulfilling its ambition of “Internet for all”. The Grameenphone network currently has
more than 8,600 base stations in operation, bringing 99% of the population under its
coverage. Currently Grameenphone is serving 50 million customers

Conclusion

The managers of GP encourages cross-functional teams and less specialization. This

helps them to increase productivity and encourages employees for a better future and
to have a better understanding of every sector of the organization. Grameenphone has
7 departments in the organization that works to establish and fulfill their objectives
and goals. The chain of command depends on departments. The Sales, Administrative
and Customer Care division has the smallest chain of command. This means they can
take small decisions for solving any problems on their own. The Marketing, Human
Resource, IT & Billing and Finance division has a longer chain of command as these
are the crucial and most important sectors of the organization. The span of control of
managers are smaller which is easier for managers to maintain consistency in
efficiency and productivity. They also encourages employees to be involved in

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decision making process and give advises for any deals and campaigns which means
that GP is a decentralized organization. However no company can be completely
centralized or decentralized so in some situations the organization have to lean more
towards centralization. Every business is formal but in some cases the formalization
is not mandatory. GP does not have a dress code, they follow a friendly manager-
employee-client relationship, lower level manager and employees can themselves deal
with the problems in many cases giving a clear view of less formalization. Hence we
can say from the above observations that Grameenphone follows an Organic
Organizational Structure.
From the above information it tends to be inferred that grameenphone pays equivalent
significance to their external factors as internal factors, the way how they oversee
both are overpowering. Additionally, its adequacy in coordination helps in a huge
method to accomplish its ideal hierarchical objective. Also, the overseeing
correspondence procedures of Grameenphone encourages the association to broaden
its business. So there is no uncertainty that, Grameenphone has key way to deal with
work and utilize their internal and external factors to accomplish their organizational
goals.
Grameenphone is a very big company and has a huge number of clients. This is
obvious that not every client has the same demand or can be treated the same way.
According to us the leadership style used by Grameenphone is perfect for a company.
This way, they divide the employees into groups according to the strength and
weakness of every individual and then assign them clients accordingly. This increases
the possibility to get more business, which shows effectiveness of the company and at
the same time every time a team cracks a deal it works as a motivational factor for the
whole team. Thus making the company goals easier to achieve.
Overall, GP prioritizes all the stakeholder and always makes sure that they have left
no scope for the stakeholders to complain. Yes, recently they haven’t had the
smoothest relationship with the government but they are trying their best to come up
with a solution and get back to the dominating position that they are known for.

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Appendix
Questionnaires:

Leadership
1. What is leadership according to GP management?
2. Do you think management and leadership are 2 different things?
3. How do you encourage creative thinking within your organization?
4. Which is most important to your organization- mission, core, cultural value or
vision?
5. How do you help a new employee understand the culture of your organization?

External factors
6. How much is GP’s market share?
7. How are you currently dealing with the COVID-19 issues?
8. Are you taking any measures for your employees to prevent the spread of corona
virus?
9. Do you get disrupted by political issues?

Stakeholders
10. Who is the critical stakeholder in your company? ( justify your answer for each of
the stakeholder you claimed critical)
11. For every company their shareholders are one of the key stakeholders. Who are
your major shareholder?
12. What are your policies to keep your shareholders invested in your business?
13. What are the activities that you undertake to create a better relationship with your
stakeholder?

Organizational structure
14. How long have you been with the company?
15. How many departments are there in the organization?
16. What are the dress code in here?
17. How long is your chain of command?
18. Are there any work specialization?

References

Michael Hyatt (2019). “Leadership Questions”. [Link]

questions-to-ask-other-leaders/

Emily Moore (2018). “organizational Structure Questions”

[Link]

Will Klenton (2020). “organizational Structure”

[Link]

Fisch (1963). “Span of Control” [Link]

id=jTeIoK6YraMC&pg=PA115&lpg=PA115&dq=fisch+1963&source=bl&ots=c

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MGT201 Report on Grameenphone 20

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Terms [Link] (2019) “Definition of Centralization & Decentralization.

[Link]
decentralization/

Schatz Traci. (1999). Basic Types of Organizational Structure: Formal & Informal.
[Link]
[Link]

Global: Global Coverage of Telenor

[Link]

Local Coverage of Grameenphone[Link]

center/press-release/grameenphone-serving-50-million-customers-bangladesh

Political/legal: Social sustainability [Link]

gp/sustainability/social-sustainability/u-report

Technological: Network coverage of Grameenphone (nperf)

[Link]
ll=23.644833727724837&lg=90.35&zoom=7

Tarrif coverage of Grameenphone

[Link]

Susan Ward (2020). definition of leadership

[Link]

James Chen (2020), “Stakeholder”

[Link]

Wikipedia , “shares owned”

[Link]

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