Organization Study at Bharti Airtel Limited, Bengaluru: Executive Summary
Organization Study at Bharti Airtel Limited, Bengaluru: Executive Summary
Organization Study at Bharti Airtel Limited, Bengaluru: Executive Summary
EXECUTIVE SUMMARY
The study was conducted at Bharti Airtel Limited, Bengaluru. Organizational study at Bharti
Airtel Limited, Bengaluru has contributed a lot for the efficient flow of work. It was found that
the organization study and its practice of a higher degree and highly sophisticated manner.
Efficient organization study will help not only the owner, but also customer, supplier,
government and society.
Airtel comes to you from Bharti Airtel Limited. It is one of the leading integrated telecom
service providers with operation in 18 countries across Asia and Africa. Sunil Bharti Mittal is a
founder, chairman and group CEO Bharti Airtel Enterprises, one of India’s leading business
groups with interests in telecom, financial services, retail, reality, manufacturing and agriculture.
Airtel has been rated among 10 best performing companies in the Business week IT 100 units.
Bharti Airtel is structured into 3 strategies business units- Mobile services, Broadband services
and Telecom services and Enterprise. Airtel is one of Asia’s leading providers in the entire 22
lice sensed jurisdiction in Sri Lanka and India. (Also known as Telecom services)
Airtel not only deals with Telecom but also it has many other products. The mobile business
offers services in India, Sri Lanka and Bangladesh. The telecom media business provider’s broad
band. The Company also offers Digital TV and IPTV Services. All these services are rendered
under a unified brand 'Airtel' either directly or through subsidiary companies. The Digital TV
business provides Direct-to-Home TV services across India. The Enterprise business provides
end-to-end telecom solutions to corporate customers and national and international long distance
services to telecoms.
CHAPTER 1
The internship experience is designed to provide students of MBA to go through a deep study of
organization. Through observing the work activities of the members of a company and by
working under supervision, students will be better prepared to assess their own interest and
potential for good a career. The student's practical learning experience will be most beneficial if
he/she has a general knowledge of the organization. This understanding will be forthcoming
from the completion of the required number of hours.
An internship is on the job training for many professional jobs, similar to an apprenticeship,
more often taken up by college and university students during his undergraduate or master
degree in their free time to supplement their formal education and expose them to the world of
work. Internships offer various occasion to interns during internship programs to expand
familiarity in their choose area of work, to find out the importance in a specific line of business,
develop professional network links, build interpersonal skill.
Employers too benefit from an internship arrangement as it gives access to interns with some
skills to execute relevant tasks for the employer. Many interns end up with permanent service
with the same organization in which they are interned. Their worth to the organization may be
greater than before by the fact that they require modest or less training.
Opportunities to network in the field, attend conferences and workshops, and are
affiliated with national organizations.
Professional communication including meetings, memos, client interaction, input of
ideas, and confidentiality.
Use of basic skills that include use of a computer (and software), reading, writing, math,
phones, fitness equipment, public speaking, research, etc.
Develop a general knowledge and understanding of fitness center/health club
management, including duties and responsibilities of clerical staff.
Telecom Industry
The telecom sector continues to be at the epicenter for growth, innovation, and disruption for
virtually any industry. Mobile devices and related broadband connectivity continue to be more
and more embedded in the fabric of society today and they are key in driving the momentum
around some key trends such as video streaming, Internet of Things (IoT), and mobile payments.
The telecommunication sector is made up of companies that make communication possible on a
global scale, whether it is through the phone or the Internet, through airwaves or cables, through
wires or wirelessly. These companies created the infrastructure that allows data in words, voice,
audio or video to be sent anywhere in the world. The largest companies in the sector are
telephone (both wired and wireless) operators, satellite companies, cable companies, and internet
service providers.
CHAPTER 2
Website: www.airtel.in
2.1 BACKGROUND
From the humble beginnings in the Indian telecom industry in 1986; Airtel has its roots in
Bharti Telecom Limited. Founded in 1986 by Sunil Bharti Mittal, the company was the first
in India to offer push button telephones, when the rest of the country was still using rotary
phones.
The first partnership they had was with Siemens AG of Germany, and they started making
push-button landlines in India rather than importing it from Taiwan, as it used to be before.
The company then went on to launch various telecom technologies to the Indian market and
had innovation at its heart. Going on to acquire license to build a cellular network in Delhi,
Bharti Telecom Limited laid the ground work for the mobile operations of the company in
the year 1992. It began operations in Delhi in the year 1995 as Bharti Tele-Ventures. The
service was extended to various other states by various acquisitions and partnerships.
Vision of Airtel
Our Vision is to enrich the life of our customer. Our obsession is to win customers for life
through an exceptional experience.
Mission of Airtel
Our Values
We aim to work towards our vision, driven by our values of AIR - Alive, Inclusive & Respectful.
Company policies:
Online policy
Human rights policy
Principles of the policy
Partner policy
Healthy and Safety policy
We at Bharti Airtel limited (hereinafter mentioned as "Airtel") are committed to protect our
customers’ personal information and/or sensitive personal data and strive to maintain the privacy
of your personal information.
For your information, “Personal information” is any information that can be used by itself to
uniquely identify, contact, or locate a person, or can be used with information available from
other sources to uniquely identify an individual. For the purpose of this policy, sensitive personal
data or information has been considered as a part of personal information.
Airtel does collect your personal information for a variety of regulatory and business purposes.
These include, but are not limited to:
Anticipate and resolve issues and concerns with our products and services
Promote and market our products and services which we consider may be of interest to
you and may benefit you; and
Ensure adherence to legal and regulatory requirements for prevention and detection of
frauds and crimes.
Bharti Airtel Limited is committed to demonstrating global citizenship by respecting the basic
rights of all stakeholders that it encounters through products, services, contracts, purchases, and
other business operations. It respects the human rights of its customers, employees, suppliers,
partner companies and the community, in accordance with the Indian Constitution and the
applicable Indian Labor Laws. It is also guided by fundamental principles of human rights, such
as those enumerated in the United Nations Universal Declaration of Human Rights and the
International Labor Organization’s Declaration on Fundamental Principles and Rights at Work.
This policy is intended to express Airtel’s commitment to do business with ethical values and
embrace practices that support human rights, in every geography that we operate in. This Policy
applies to our direct and indirect business operations including subsidiaries and suppliers, who
shall be committed to uphold the integrity of this policy, in every geography that we operate in.
Principles of the Policy:
Harassment-free workplace:
Airtel is committed to providing a work environment free from all forms of harassment,
whether physical, verbal or psychological. Employees have the right to freedom of
opinion and expression.
Freedom of association:
Airtel respects the right of employees to exercise their lawful right of freedom of
association.
Airtel is committed to prevent child labor and forced labor including bonded labor,
slavery and human trafficking.
Data privacy:
Airtel is committed to protect the data privacy of its employees, customers and suppliers.
We do not disclose information to third parties without explicit consent of our
stakeholders, unless required by law to do so. We have an optimal security system for
preventing leaks and our Ombuds process and security incident management process
allows reporting of data breaches and policy violations.
Access to Information:
Airtel strives to ensure that our technologies, electronic devices and data are not put to
any misuse such as wiretapping, signal interference or hacking.
Partner Policy:
Airtel would strive to conduct its business in a manner that reflects its vision and brand essence.
As the sourcing base expands, airtel will only do business with partners who are committed to a
long term relationship focusing on mutual growth and trust. All Partners are responsible for
making sure that airtel's vision and brand essence is adhered to when subcontracting any portion
of their obligations. Partners are individually responsible for ensuring that their employees
understand airtel's vision and brand essence.
Regulatory Compliance
All Partners of airtel must operate within the bounds of all applicable laws. They must also
adhere to the governing standards of the country and international countries in which they
conduct business. If at any time a Partner ceases to meet any statutory and/or other requirement
of the country in which they are doing business, airtel reserves the right to immediately cancel all
its outstanding orders with that Partner as well as terminate its agreement with the Partner
Corporate Citizenship
Corporate Citizenship
All potential partners are required to undergo the registration process to be considered for
business with airtel. On successful completion, the partner would be added to airtel's Supplier
Base and a registration code would be provided. Only registered partners would be considered
for new business opportunities. The registration code would be rendered inactive for partners not
meeting the requirements of the registration process. Once deactivated, partners would be
required to go through the registration process again.
All partners working with airtel would have a unique partner code and would be applicable for
all their business units globally. Airtel would have a maximum of 6 to 8 partners registered for
any product or service. RFP would be released to registered partners only.
Airtel at any point of time would release a contract to a maximum of 3 partners for a product or
service with a business share split of 60%, 30% and 10%. Incase 2 partners are contracted; the
business share split would be 67% and 33%. Business share would be primarily based on partner
performance score card. Airtel would provide higher business share for partners who help it to
improve its technology, competitiveness and customer delight. In case where all criteria are
similar the decision would be based on the partner's dependence on airtel. Any deviation would
be approved at a level higher as per DOA. Single partner for a product or service would be
approved through a specific DOA.
Reciprocity
Airtel's goal is to buy products and services which have the best prices, quality, delivery, and
technology. Airtel encourages partners to use its products for their telecom requirements and
would prefer partners endorsing bharti airtel products where all criteria requirements are being
met.
Code of Ethics
Airtel expects the highest standards of integrity and conduct from its partners.
No gifts (other than advertising matter of modest values such as calendars and diaries), or favors
should be offered to an employee of airtel or to friends or family of employees. Partners are
expected to familiarize themselves with the airtel Code of Conduct which is available in the
Partner Manual or on request, in order to avoid any ambiguity in this regard.
Contracting
Supply Chain is solely responsible for selecting partners, obtaining quotations and awarding
purchase orders/contracts for products, equipment, software and/or services. Direct discussions
between the requesting organization and partner shall be coordinated by the Supply Chain
Department. Airtel will issue a purchase order / contract for all products and/or services to all
partners. Work should not begin until a formal purchase order/contract is received. Partner
performing a service or supplying products without the proper authorization would do so at its
own cost and risk.
Confidentiality
Airtel will treat information received from Partners in a responsible fashion, and expects Partners
to treat information received from Airtel in the same manner. Partners should not disclose Bharti
Airtel as a customer, documentation received from Bharti Airtel or release information about
relationships with Bharti Airtel without written consent (should such disclosures be legally
required, Bharti Airtel will not unreasonably withhold that permission, which must be obtained
in advance and in writing).
Partner Satisfaction
Airtel would conduct an annual partner satisfaction survey and use it as an important tool to
continuously improve and further develop its internal and external processes with partners. In
order to obtain an unbiased feedback, the survey would be conducted by an independent external
agency.
Partner Awards
Partner Disengagement
Airtel reserves the right to cancel all orders and/or contracts with a partner in cases where there
is an unethical practice used, code of conduct violation, partner bankruptcy or insolvency,
ownership transfer and/or any other reason deemed fit for disengagement. Airtel would follow a
structured approach for disengagement to ensure the smooth transitioning where separation
becomes inevitable.
Partner Grievance
Airtel's Partner grievance process ensures a Partner's ability to access Airtel's corporate
assurance group and leadership to address concerns, grievances, or complaints relating to the
contracting award process for products or services, or in general.
A Partner who believes that a contract award decision was not determined appropriately
must file a written grievance using the Partner Grievance form stating facts and concerns.
A Partner who has a general concern, grievance, or complaint must file a written
grievance using the Partner Grievance form stating facts and concerns.
Bharti Airtel Limited (“Bharti Airtel”) is committed to operate and provide products and services
in an environmentally responsible and sustainable manner. We recognize that by integrating
robust environmental, health, and safety management practices into all aspects of our business,
we can offer technologically innovative products and services while efficiently utilizing
resources. We are also committed to achieving highest standards in health and safety within all
the premises of Bharti Airtel for its employees, partners, associates and visitors.
Through this policy, we reinforce our commitment towards the following:
Comply with all applicable environmental, health and safety laws and legislations and
codes of practice. Meet, and exceed where feasible, all the laid down standards.
Reducing the environmental footprint of our telecom infrastructure and facilities through
focused efforts to enhance energy efficiency & green energy in the energy mix and
reduce Green House Gas (GHG) emissions.
Working towards reducing the negative environmental impact of our operations by
focusing on managing waste responsibly and optimizing resources.
Working in collaboration with our suppliers, contractors, distributors, logistics partners
and service providers to reduce our environmental footprint and negative environmental
impact.
Continue to create awareness among customers about the product lifecycle thus
promoting safe usage of the product/service.
Continue to take efforts towards raising consumer awareness around Electromagnetic
Field (EMF) radiation compliance to Electromagnetic Field (EMF) exposure norms and
demystifying concerns regarding exposure to EMF.
Target a zero fatality work place by preventing environment, health and safety incidents
at our operations and responding swiftly and effectively should they occur, to protect our
employees, partners and the environment.
Educate, train and motivate our employees to work in a safe and environmentally
responsible manner.
Continued focus on employee wellbeing, fitness and continued support for initiatives that
promote healthy lifestyle.
Comply with legal requirements regarding waste (hazardous & non-hazardous)
generation, management and disposal regulations.
Engage internally and externally with stakeholders and wider communities to promote
responsible waste management, and understand and collaborate on efficient waste
management practices.
Monitor, measure and report on waste management practices following recognized
national or internationally guidelines.
Foster dialog and discussions on EHS matters with our stakeholders, both internal and
external for communicating risk, performance and progress.
Select and promote our suppliers and business partners to undertake safe and
environmentally responsible operations.
Promote regulatory, statutory, environment, health and safety standards on all joint
ventures and subsidiaries, and mergers & acquisitions, including conducting of due
diligence.
Periodically review and improve our products and service offerings to improve the
quality of life of our customers through technological developments, increasing coverage,
creating adaptability and promoting safe usage.
Remain committed to protect the environment wherever Bharti Airtel does business as a
responsible corporate citizen.
Products:
Fixed Line
Phone Broadband
Hotspot
Airtel SIM
Fixed line :
Broadband:
A high-capacity transmission technique using a wide range of frequencies, which enables a large
number of messages to be communicated simultaneously.
Hotspot:
Airtel SIM:
Services of Airtel:
In India, the company's offers products and services both for the end consumer as well as for
businesses. The consumer business offers 2G, 3G and 4G wireless services, mobile commerce,
fixed line services, high speed DSL broadband, IPTV and Digital TV. The enterprise services
include national & international long distance services to large enterprises and carriers and tower
infrastructure services. In the rest of the geographies (i.e. Africa), it offers 2G, 3G wireless
services and mobile commerce.
B2B – Services
Voice Service.
Network Services
Mobile service
Tele media service
Digital service
Bharti Airtel is a privately owned company is maintained by the following Board of Directors.
The Board of Director of the company has an optimum mix of executive and non- executive
directors, which consists of two executive and nine non-executive directors. Mr. Sunil Bharti
Mittal, Chairman and Mr. Gopal Vittal, MD and CEO (India and South Asia) are two executive
directors on the board is 50% of the total board strength.
The interdependence of a directors is determined on the basis that such directors does not have
any material pecuniary relationship with the company, its promoters of its management, which
may affect the independence of the judgement of a directors. The board members possess
requisites skills, experience and expertise required to take decisions, which are in the best
interest of the company.
2.6 Awards
Bharti Tele-Ventures was incorporated on July 7, 1995 as a company with limited liability under
the Companies Act, for promoting telecommunications services. Bharti Tele-Ventures received
certificate for commencement of business on January 18, 1996. The Company was initially
formed as a wholly-owned subsidiary of Bharti Telecom Limited. The chronology of events
since Bharti Tele-Ventures was incorporated in 1995 is as follows: Calendar year & Events
1995
1996
STET International Netherlands NV, or STET, a company promoted by Telecom Italia, Italy
acquired a 20% equity interest in Bharti Tele-Ventures. Bharti Telnets launched cellular services
in Himachal Pradesh.
1997
1998
Bharti Telecom and British Telecom formed a 51%: 49% joint venture, Bharti BT Internet for
providing Internet services. First Indian private fixed-line services launched in Indore in the
Madhya Pradesh circle on June 4, 1998 by Bharti Telnet thereby ending fixed-line services
monopoly of DoT.
1999
Warburg Pincus (through its investment company Brentwood Investment Holdings Limited)
acquired a 19.05% equity interest in Bharti Tele-Ventures.Bharti Tele-Ventures (by acquiring a
63.45% equity interest in SC Cellular Holdings) acquired an effective 32.36% equity interest
inBharti Mobile (formerly JT Mobiles), the cellular services provider in Karnataka and Andhra
Pradesh circles.
2001
Bharti Telesonic entered into a joint venture, Bharti Aquanet, with SingTel for establishing a
submarine cable landing station at Chennai.
2002
Airtel launched an international long distance service- A first by any private telecom company.
2004
2005
2007
Fastest 50 million customers in the World and first Indian telecom in global top 5.
2008
2009
Airtel launched Airtel in Sri Lanka. Bharti Airtel has signed a five-year managed services deal
valued at $500 million with Alcatel Lucent for its fixed-line and broadband operations.
2010
2011
Airtel launch of Airtel money and 3G. After introducing 3G services in six cities, Airtel launched
this platform in Delhi on Thursday that enables customer to enjoy services such as high-speed
internet and mobile TV.
2012
Bharti Airtel on Tuesday announced that it has launched fourth generation mobile services in
Kolkata and claimed that this initiative had also resulted in India becoming one of the first
countries in the world to commercially deploy this cutting-edge technology.
2013
Bharti Airtel today said it has launched 'Re 1 entertainment store' which will allow users to
download services such as music, games, videos and photos for one rupee.
"Virtual Re 1 Entertainment Store offers a wide range of exciting mobile content (including
music, videos, games and photos) and Internet browsing offers all at Re 1 only," the company
said in a statement. The store is compatible with over 5,500 mobile devices including feature
phones.
2014
Airtel launched 3G Wi-Fi Dongle. They owned own retail store launch.
2015
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Organization Study at Bharti Airtel limited, Bengaluru
2016
Accounts department :
Making bill payment, income of the company are seen. Reporting is done, they make sure
that everyone gets paid also Financial control to avoid theft, fraud and errors
Technical department :
If there is any problem/ error in engineering works this department is responsible or
called to solve the issue
Marketing department :
This department has to get clients, attract customers and also responsible for
advertisement.
Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet
analysis with six simple checks on key factors like leverage and risk.
Valuation: What is Bharti Airtel worth today? Is the stock undervalued, even when its growth
outlook is factored into its intrinsic value? The intrinsic value infographic in our free research
report helps visualize whether Bharti Airtel is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding
instead of Bharti Airtel? Explore our interactive list of stocks with large growth potential to get
an idea of what else is out there you may be missing!
COMPETITORS :
Reliance Jio.
Idea.
Vodafone.
Tata Docomo.
Reliance Communications.
MTNL.
BSNL.
A workflow model is the sequential series of tasks and decisions that make up a business
process. Designing a workflow model lets business users see how a process works and helps
them streamline and optimize it for best results and high efficiency.
CHAPTER 3
MCKENSEY’S FRAMEWORK
This was a strategic vision for groups, to include businesses, business units and teams. The 7s
are, Structure Strategy, System, Skills, Style, Staff and Shared Values.
The model is based on the theory that, for an organization to perform well, these
McKinsey 7s model is a tool that analyzes firm‟s organizational design by looking at 7 key
internal elements: strategy, structure, systems, shared values, style, staff and skills, in order to
identify if they are effectively aligned and allow organization to achieve its objectives
Structure Skills
Systems Style
Staff
STRATEGY:
Strategies are the actions a company plans in response to or anticipation of changes in its
external environment. It also includes purpose, mission, objectives, goals and major action plans
and policies.
Customer satisfaction
Produce high quality of products
Profit maximization
To be a customer obsessed company
To enhance value to shareholders and services to all stakeholders
To attain global standard through continuous improvement in the products and services
in order to maintain market leadership
To improve best to the customer
SHARED VALUES:
It means that employees share their same guiding values and mission, that is an excellently
managed company has a driving propose and philosophy that is known and practiced by
everyone.
STRUCTURE:
Structure is the one of the framework in which the activities of the organizations members co-
ordinate. The president and whole time director look after the company’s overall management
Material department
Human resources department
Accounts department
Marketing department
Result oriented with professional work culture.
SYSTEM:
A system is defined as a process or set of processes that links and orders activities to enable
work to be done and goals to be achieved. System in simple words is the formal and informal
procedures. System refers about all the rules, regulations and procedures both formal and
informal that compliment. In each branch, company has maintained the proper system so as to
facilitate the proper functioning of organization.
STYLE:
The style of an organization, according to Mckinsey from work refers to the “reporting
relationship” between the superiors and his subordinates. It also coveys the flow of
communication between them.
It involves managers of Airtel reaching decisions with the input of the employees and is
responsible for making final decisions.
STAFF:
Staffing is the process of acquiring human resources for the organization and assuring that they
have the potential to contribute the achievement of organization goals.
The company has presently 810 employees.
Reward are based on employees performance, and there is transparencyint he organization
SKILLS:
The term skill include those characteristics which are developed over a period of time and a
results of the interaction of a number of factors, performing certain tasks successfully over a
period of time, the kind of people in organization,, the top management style, organization
structure etc..
Reasons for skill gaps shortages includes sevice transformation
A model was put forward by Michael. E. Porter in an article in the Harvard Business Review in
1979. This model, known as Porter's Five Forces Model is a strategic management tool that helps
determine the competitive landscape of an industry. Each of the five forces mentioned in the
model and their strengths help strategic planners understand the inherent profit potential within
an industry. The strengths of these forces vary across the industry to industry, which means that
every industry is different regarding the profitability and attractiveness. The structure of an
industry, even though it is stable, can change over time. These Porter’s five forces are as follows:
The Porter’s Five Forces model can be used to analyze the industry in which Airtel operates, in
terms of attractiveness through inherent profit potential. The information analyzed using the
model can be used by strategic planners for Airtel to make strategic decisions.
Threats of
substitutes
(LOW)
Bargaining Competitive
Bargaining
power of Rivalry
power of Buyers
Suppliers
(LOW)
(MODERATE) (HIGH)
Threats of New
entrants
Figure: (LOW)
Porters five force mode
The economies of scale is fairly difficult to achieve in the industry in which Airtel
operates. This makes it easier for those producing large capacitates to have a cost
advantage. It also makes production costlier for new entrants. This makes the threats of
new entrants a weaker force.
The product differentiation is strong within the industry, where firms in the industry sell
differentiated products rather a standardized product. Customers also look for
The capital requirements within the industry are high, therefore, making it difficult for
new entrants to set up businesses as high expenditures need to be incurred. Capital
expenditure is also high because of high Research and Development costs. All of these
factors make the threat of new entrants a weaker force within this industry.
The access to distribution networks is easy for new entrants, which can easily set up their
distribution channels and come into the business. With only a few retail outlets selling the
product type, it is easy for any new entrant to get its product on the shelves. All of these
factors make the threat of new entrants a strong force within this industry.
The government policies within the industry require strict licensing and legal
requirements to be fulfilled before a company can start selling. This makes it difficult for
new entrants to join the industry, therefore, making the threat of new entrants a weak
force.
Airtel can take advantage of the economies of scale it has within the industry, fighting off
new entrants through its cost advantage.
Airtel can focus on innovation to differentiate its products from that of new entrants. It
can spend on marketing to build strong brand identification. This will help it retain its
customers rather than losing them to new entrants.
The number of suppliers in the industry in which Airtel operates is a lot compared to the
buyers. This means that the suppliers have less control over prices and this makes the
bargaining power of suppliers a weak force.
The product that these suppliers provide are fairly standardized, less differentiated and
have low switching costs. This makes it easier for buyers like Airtel to switch suppliers.
This makes the bargaining power of suppliers a weaker force.
The suppliers do not contend with other products within this industry. This means that
there are no other substitutes for the product other than the ones that the suppliers
provide. This makes the bargaining power of suppliers a stronger force within the
industry.
The suppliers do not provide a credible threat for forward integration into the industry in
which Airtel operates. This makes the bargaining power of suppliers a weaker force
within the industry.
The industry in which Airtel operates is an important customer for its suppliers. This
means that the industry’s profits are closely tied to that of the suppliers. These suppliers,
therefore, have to provide reasonable pricing. This makes the bargaining power of
suppliers a weaker force within the industry.
Airtel can purchase raw materials from its suppliers at a low cost. If the costs or products
are not suitable for Airtel, it can then switch its suppliers because switching costs are low.
It can have multiple suppliers within its supply chain. For example, Airtel can have
different suppliers for its different geographic locations. This way it can ensure efficiency
within its supply chain.
As the industry is an important customer for its suppliers, Airtel can benefit from
developing close relationships with its suppliers where both of them benefit.
The number of suppliers in the industry in which Airtel operates is a lot more than the
number of firms producing the products. This means that the buyers have a few firms to
choose from, and therefore, do not have much control over prices. This makes the
bargaining power of buyers a weaker force within the industry.
The product differentiation within the industry is high, which means that the buyers are
not able to find alternative firms producing a particular product. This difficulty in
switching makes the bargaining power of buyers a weaker force within the industry.
The income of the buyers within the industry is low. This means that there is pressure to
purchase at low prices, making the buyers more price sensitive. This makes the buying
power of buyers a weaker force within the industry.
The quality of the products is important to the buyers, and these buyers make frequent
purchases. This means that the buyers in the industry are less price sensitive. This makes
the bargaining power of buyers a weaker force within the industry.
There is no significant threat to the buyers to integrate backwards. This makes the
bargaining threat of buyers a weaker force within the industry.
Airtel can focus on innovation and differentiation to attract more buyers. Product
differentiation and quality of products are important to buyers within the industry, and
Airtel can attract a large number of customers by focusing on these.
Airtel needs to build a large customer base, as the bargaining power of buyers is weak. It
can do this through marketing efforts aimed at building brand loyalty.
Airtel can take advantage of its economies of scale to develop a cost advantage and sell at
low prices to the low-income buyers of the industry. This way it will be able to attract a
large number of buyers.
There are very few substitutes available for the products that are produced in the industry
in which Airtel operates. The very few substitutes that are available are also produced by
low profit earning industries. This means that there is no ceiling on the maximum profit
that firms can earn in the industry in which Airtel operates. All of these factors make the
threat of substitute products a weaker force within the industry.
The very few substitutes available are of high quality but are way more expensive.
Comparatively, firms producing within the industry in which Airtel operates sell at a
lower price than substitutes, with adequate quality. This means that buyers are less likely
to switch to substitute products. This means that the threat of substitute products is weak
within the industry.
Airtel can focus on providing greater quality in its products. As a result, buyers would
choose its products, which provide greater quality at a lower price as compared to
substitute products that provide greater quality but at a higher price.
Airtel can focus on differentiating its products. This will ensure that buyers see its
products as unique and do not shift easily to substitute products that do not provide these
unique benefits. It can provide such unique benefits to its customers by better
understanding their needs through market research, and providing what the customer
wants.
The number of competitors in the industry in which Airtel operates are very few. Most of
these are also large in size. This means that firms in the industry will not make moves
without being unnoticed. This makes the rivalry among existing firms a weaker force
within the industry.
The very few competitors have a large market share. This means that these will engage in
competitive actions to gain position and become market leaders. This makes the rivalry
among existing firms a stronger force within the industry.
The industry in which Airtel is growing every year and is expected to continue to do this
for a few years ahead. A positive Industry growth means that competitors are less likely
to engage in completive actions because they do not need to capture market share from
each other. This makes the rivalry among existing firms a weaker force within the
industry.
The fixed costs are high within the industry in which Airtel operates. This makes the
companies within the industry to push to full capacity. This also means these companies
to reduce their prices when demand slackens. This makes the rivalry among existing
firms a stronger force within the industry.
The products produced within the industry in which Airtel operates are highly
differentiated. As a result, it is difficult for competing firms to win the customers of each
other because of each of their products in unique. This makes the rivalry among existing
firms a weaker force within the industry.
The production of products within the industry requires an increase in capacity by large
increments. This makes the industry prone to disruptions in the supply-demand balance,
often leading to overproduction. Overproduction means that companies have to cut down
prices to ensure that its products sell. This makes the rivalry among existing firms a
stronger force within the industry.
The exit barriers within the industry are particularly high due to high investment required
in capital and assets to operate. The exit barriers are also high due to government
regulations and restrictions. This makes firms within the industry reluctant to leave the
business, and these continue to produce even at low profits. This makes the rivalry among
existing firms a stronger force within the industry.
The strategies of the firms within the industry are diverse, which means they are unique
to each other in terms of strategy. This results in them running head-on into each other
regarding strategy. This makes the rivalry among existing firms a strong force within the
industry.
Airtel needs to focus on differentiating its products so that the actions of competitors will
have less effect on its customers that seek its unique products.
As the industry is growing, Airtel can focus on new customers rather than winning the
ones from existing companies.
Airtel can conduct market research to understand the supply-demand situation within the
industry and prevent overproduction.
By using the information in Airtel five forces analysis, strategic planners will be able to
understand how different factors under each of the five forces affect the profitability of the
industry. A stronger force means lower profitability, and a weaker force means greater
profitability. Based on this a judgment of the industry's profitability can be made and used in
strategic planning.
CHAPTER 4
SWOT ANALYSIS
of SWOT, and the origins remain obscure. The degree to which the internal environment of the
firm matches with the external environment is expressed by the concept of strategic fit.
Strengths: characteristics of the business or project that give it an advantage over
other
Weaknesses: characteristics of the business that place the business or project at a
disadvantage relative to other
Opportunities: elements in the environment that the business or project could exploit
to its advantage
Threats: Elements in the environment that could cause trouble for the business or
project Identification of SWOTs is important because they can inform later steps in
planning to achieve the objective. First, decision-makers should consider whether the
objective is attainable, given the SWOTs. If the objective is not attainable, they must
select a different objective and repeat the process.
Users of SWOT analysis must ask and answer questions that generate meaningful information
for each category (strengths, weaknesses, opportunities, and threats) to make the analysis useful
and find their competitive advantage.
STRENGTH :
1. Largest Telecom operator in the world with 200+ million subscribers across 19 countries
makes Airtel a strong brand.
2. Airtel is the only Indian operator, with VSNL, that has an international submarine cable.
3. High brand visibility of Airtel.
4. Strong advertising with celebrity brand ambassadors has boosted the brand.
5. Airtel has great value added services like Airtel money, online recharges, bill payments.
6. Airtel stores, kiosks, sponsorships etc have boosted the brand presence worldwide.
7. Countries like Srilanka, Bangladesh, Africa have a strong subscriber base.
8. Renowned Telecom company: With its 19+ years of rich experience in telecom industry
this MNC had travelled far to become world’s 3rd largest telecom operator overseas
with operations in nearly 20 countries.
9. High Brand Equity: It is one of the pioneer brands in telecommunication having a
high brand recall and with a whopping subscriber base.
10. Extensive infrastructure: With the formation of Indus tower & due to its partnership with
Idea & Vodafone, the infrastructure of Airtel has extended in all parts of the country
resulting into nationwide penetration.
11. Strategic Alliances: The Company has top notch stakeholders,
namely Sony Ericsson, Nokia and SingTel and the recent one being Apple. Such strategic
alliances boost the brand equity and the bottom line of the company.
12. Torchbearer of the telecom Industry: With its number 1 spot due to its excellent services in
developing economies, Airtel has interconnected the life of people in an highly efficient
way. Thus, where Vodafone is an external entrant, Airtel is a leading nationwide player in
India and the torchbearer of the telecom industry in India.
WEAKNESS:
OPPORTUNITIES:
THREATS:
3. MNP (Mobile number portability): MNP gives the customer independence to change the
service provider while retaining the number and as Airtel charges are premium over other
service providers, it can see slump in subscriber base in the next fiscal year with PAN
India MNP applicable from May 3rd 2015.
CHAPTER-5
FINANCIAL STATEMENT
Assets
RATIO ANALYSIS
The financial statement provides rich information about the operation and results of units
and much can be learn careful communication. The main function or ratio analysis of financial
statement is to find out the strength and weakness.
Objectives:
To know the progress of firm.
To judge solvency of the firm.
To determine debt capacity.
To measure operate efficiency.
To estimate earning capacity of the firm.
Ratio analysis is a technique of interpretation of financial statement of the company. These ratios
provide necessary for inter firm as well as companies.
1. CURRENT RATIO
The current ratio is a liquidity ratio that measures a company's ability to pay short-term
obligations or those due within one year. It tells investors and analysts how a company can
maximize the current assets on its balance sheet to satisfy its current debt and other payables.
When we compare the current assets to current liability, we can understand the company has
good position in current asset to its current liability.
The quick ratio is an indicator of a company’s short-term liquidity position and measures a
company’s ability to meet its short-term obligations with its most liquid assets.
Quick ratio = Quick assets ÷ Current liabilities
Year Quick assets/ Current
Liabilities
2018-19 447.87 / 2176.99 0.21:1
2017-18 408.74 / 1,968.02 0.21:1
2016-17 424.45 / 1,933.99 0.22:1
When we compare the liquid asset and liquid liability of the company we can find out that it has
a good liquid asset proportion (0.22:1) in 2017 to its liability that is short term asset which can
easily convert into cash. The company would maintain constant quick ratio in 2018 and 2019.
deducted from sales, and income taxes recognized. As such, it is one of the best measures
of the overall results of a firm, especially when combined with an evaluation of how well it
is using its working capital. The measure is commonly reported on a trend line, to judge
performance over time. It is also used to compare the results of a business with its
competitors.
Net profit ratio= Net profit ÷ net sales *10
Year Net profit ÷ net sales *100
2018-19 220.56 / 3151.56 6.99%
2017-18 109.74 / 3394.79 3.23%
2016-17 233.56 / 2854.92 8.18%
Net profit margin is the percentage of revenue left after all expenses have been deducted from
the sales. The measurement reveals the amount of profit that a business can extract from its total
sales.
Net profit has increased in the year 2017 at 8.18%, compared to the year 2016, 2018 and 2019.
4. RETURN ON EQUITY
Return on equity (ROE) is a measure of financial performance calculated by dividing net
income by shareholders' equity. Because shareholders' equity is equal to a company’s assets
minus its debt, ROE could be thought of as the return on net assets.
Return on equity=profit ÷ equity*100
Year Profit Equity
2018-19 220.56 1078.28 20.45%
2017-18 109.74 880.87 12.46%
2016-17 233.56 777.67 30.03%
Return on equity ratio measures is a measure of the profitability of a business in relation to the
equity, Return on equity is a measure of how well a accompany uses investments to generate
earnings growth. The Return on Equity have been increased in the year 2017.
The asset turnover ratio is an efficiency ratio that measures a company’s ability to generate sales
from its assets by comparing net sales with average total assets. In other words, this ratio shows
how efficiently a company can use its assets to generate sales.
The asset turnover ratio measures the value of a company’s sales or revenues relative to the value
of its assets. The Asset turnover ratio can be used as an indicator of the efficiency with which a
company is using its assets to generate revenue. The Asset turnover ratio has been slightly
reduced in the year 2019.
6. SOLVENCY RATIO
The solvency ratio is a key metric used to measure an enterprise’s ability to meet its debt
obligations and is used often by prospective business lenders. The solvency ratio indicates
whether a company’s cash flow is sufficient to meet its short-and long-term liabilities. The
lower a company's solvency ratio, the greater the probability that it will default on its debt
obligations.
Solvency ratio= Total assets ÷ total liabilities
Year Total Assets Total Liabilities
2018-19 3733.86 3733.86 1:1
2017-18 2966.74 2966.74 1:1
2016-17 3051.89 3051.89 1:1
Solvency ratio is one of the various ratios used to measure the ability of a company to
Meet its long term debts. Moreover, the solvency ratio quantifies the size of a
Company’s after tax income, not counting non-cash depreciation expenses, as contrasted to the
total debt obligations of the firm.
Operating profit ratio indicates how much profit a company makes after paying for variable costs
of production such as wages, raw materials. It shows the efficiency of a company controlling the
costs and expenses associated with business operations. The operating profit ratio has been
reduced in the year 2018.
Chapter-6
LEARNING EXPERIENCE
As this was my first experience working in an organization it gave to a good exposure of how a
organization works practically rather than just knowing it in theory based I did my internship in
Bharti Airtel Ltd . It gave me lot of good information and knowledge .Firstly I would like to
place on record my sincere thanks to the management of Bharti Airtel Bangalore for their kind
permission to undertake for 4 weeks for doing internship in their company.
The opportunity of undergoing in plant training for one month duration is being capitalized
thereby increasing my knowledge base by working at Bharti Airtel Bangalore. I am privileged to
highlight some of the learning experience got from this training. Thus internship provided me a
platform to study various dimensions in which the organizational functions and I could relate
most of the theoretical concepts which I have studied in class. I got an opportunity to understand
the work flow of the employees and professionalism on should adopt so as to perform better in
any given condition.
The internship mainly focuses on learning about organization in detail that is functions of the
organization, strategies of the organization, history of the organization and so on. Here we got an
opportunity to analyze financial statements and SWOT of the company which helps us to
describe where the company stands in this competitive business environment. It helps us to
understand the future plans of the company and even we can suggest the company about the
strategies they can frame for the future development.
The internship helps to understand how communication flows from one department to other and
external communication as well and also I learnt that how financial statements can be analyzed
using various modern techniques and thereby draw the conclusions about the financial soundness
of the organization.
BIBLIOGRAPHY
Website:
www.airtel.com
www.airtelwebsite.com