2017

STRATEGIC PLAN FOR A BUSINESS ORGANIZATION.

Table of Contents
INTRODUCTION....................................................................................................................................... 2
HISTORY, DEVELOPMENT, AND GROWTH OF THE COMPANY ............................................... 3
COMPANY’S CURRENT STRATEGIES ............................................................................................... 4

COMPANYS CONTROL SYSTEMS...................................................................................................... 4

PESTEL ANALYSIS .................................................................................................................................. 5
Political ..................................................................................................................................................... 5
Economical ............................................................................................................................................... 5
Social ........................................................................................................................................................ 5
Technological............................................................................................................................................ 5
Environmental ........................................................................................................................................... 6
Legal ......................................................................................................................................................... 6
SWOT ANALYSIS ..................................................................................................................................... 7
STRENGTHS ........................................................................................................................................... 7
WEAKNESSES ...................................................................................................................................... 10
OPPORTUNITIES .................................................................................................................................. 11
THREATS .............................................................................................................................................. 11
TOWS MATRIX ....................................................................................................................................... 12
RECOMMENDATIONS AND CONCLUSIONS .................................................................................. 14
APPENDIX ................................................................................................................................................ 15
VALUE CHAIN MAPPING .................................................................................................................. 15
ORGANIZATIONAL STRUTURE ....................................................................................................... 16
STUDENT EFFORT AGREEMENT ..................................................................................................... 17

1
INTRODUCTION
Dialog provides personal services and business services. Their major personal services are
mobile plans for dialog users, dialog broadband for houses, dialog television etc. they also
provide services for organizations, such as mobile point of sale, cumulus cloud service etc.

They are still developing their services for organizations inorder to gain a better image than what
they currently have.

STUDENT ID NO NAME ROLE

BM16400450 Perera H.M.C.N ANALYST
BM16411340 Madhuthilina H.D.V ANALYST
BM16401372 Mathipiriya. B ANALYST
BM16408920 B.Tharindu Pushpakumara ANALYST
BM16411686 Umesh Jeewantha ANALYST
BM16414174 L.D.C.P. Rodrigo ANALYST
Hashini Lochana ANALYST
BM16068360
Ramanayake
BM 16401440 T.L Bopitiya ANALYST

2
HISTORY, DEVELOPMENT, AND GROWTH OF THE COMPANY

Dialog was incorporated in 1993 as MTN Networks (Private) Limited with 90% of equity
through Telekom Malaysia Berhad (TM) and 10% by Capital Maharaja being the local
promoters to the investment. At the time of setup, MTN was the fourth entry to the Sri Lankan
Mobile market, which already had three established operators. In 1995 just after 2 years of
incorporation, MTN Networks began its commercial operations under the brand name Dialog
GSM. In 1996, the local promoters separated their stake providing complete ownership of MTN
Networks to Telekom Malaysia. In mid-1997, Hans Wijayasuriya was appointed as the CEO of
MTN Networks. In March 2005, MTN Networks Pvt Ltd unveiled its new corporate identity as
Dialog Telekom .In 2005 December Dialog Telekom Acquired 100% stake of MTT Network
Pvt Ltd. At the time of Acquisition MTT was the leading digital transmission and backbone
provider for other Cellular operators and television stations. In 2006 December Dialog Telekom
completed takeover of troubled DTH satellite television provider CBN SAT (Private) Ltd. CBN
sat was re branded as Dialog TV and operates as a fully owned subsidiary of Dialog Telekom.
In 2009 was the first mobile operator to extend its GSM network to the areas in the North and
East Province In April 2013 Dialog Axiata launched its mobile 4G LTE services. As of
February 2016 Dialog Axiata holds LKR 81.4 billion (US$566 million) in market capitalization
and the fifth largest listed company in Sri Lanka by Market Capitalization.

OUR VISION

To be the undisputed leader in the provision of multi-sensory connectivity resulting always, in

the empowerment and enrichment of Sri Lankan lives and enterprises.

OUR MISSION

To lead in the provision of technology enabled connectivity touching multiple human sensors
and faculties, through committed adherence to customer-driven, responsive and flexible business
processes, and through the delivery of quality service and leading edge technology unparalleled
by any other, spurred by an empowered set of dedicated individuals who are driven by an
irrepressible desire to work as one towards a common goal in the truest sense of the team spirit.

3
COMPANY’S CURRENT STRATEGIES

Dialog Axiata PLC, usually practice long-term business strategies that maximize value for long-
term stakeholders such as shareholders, customers and national economies. According to the
history of Dialog, they usually develop strategies with long-term view, even though it incurs cost
in short term it will pay off in long term.

Examples: the launch of GSM as the basic network technology; which provides better network
than its competitors; the first company to collaborate with device manufacturers, repeated today
with lower-cost smart phones driving the affordable smart device revolution; and the “Lesi Pay”
devices – which is a financing scheme to reduce the barriers for customers to first unlock the
value of Dialog’s latest technologies.

COMPANYS CONTROL SYSTEMS

Control system is a system to monitor and support employees of an organization. The following
are the benefits, which support the employees:

• Share based compensation

The company provide the employees with their shares or the right to buy the shares from
the company

• Defined contribution plans

This is based on the basic or consolidated wage or salary of each eligible employee.

4
PESTEL ANALYSIS
Political
After the parliamentary election 2015, the government has increased the taxes by 49.67 %( VAT)
for prepaid. It is directly affect to the dialog. After that, dialog has to increase the charges. This
is a threat to the company.

Economical
Due to the increasing population, people build more houses. Therefore, the requirement for
telecommunication also increases. Therefore, the companies should provide more coverage in
order to fulfill the increasing communication demand. For this, new towers should be built in
areas with less coverage.

The technological advancement has resulted in development of internet and other technological
services. So increasing of this most of the companies have built their own web stores so more
customers care should be established and customer service personals should be put on jobs to
solve the problems which they face.

Social
In current world the communication technology is very important to the society. As the teenagers
uses mobile phone nowadays, the demand will increase and as the birth rate also increases, the
demand for mobile phones will increase in the future. This will cause an increase in sim, as they
are complementary goods.
In 2015 dialog introduce ‘dialog suraksha’ child protection device for the children. In country
like Sri Lanka, children get more attention from their parents. Dialog use this factor successfully.

Technological
Technological factors affects the companies like dialog directly. Now we are digital era. There is
a positive relationship between communication and technology. Now dialog provide 2G 3G 4G
and Dialog has the largest 4G network in srilanka. Dialog television, Internet services are the
other products produced by dialog. In order to achieve higher number of customers, dialog is
expected to put up another 900 towers in next 2 years.

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On the other hand, Sri Lanka is still a developing country. Our technology is lower than other
countries like India, Japan etc. As an example in other countries, they are using smart home
technology. In Sri Lanka dialog, provide dialog home broadband service. It is still not very
popular among the people.

When it comes to the CDMA (Code Division Multiple Access) technology. It is growing rapidly.
It is big opportunity to dialog.

Environmental
When it comes to the environment, the government has more restriction about this. Electronic
devices are very harmful to the environment. Therefore, they have to export or do recycling.
However, in Sri Lanka we have less amount of machines or process that suit to recycling. It is
very expensive to recycle.

In the 2015 period, Dialog recycled:

• 97.40 tonnes of office paper waste

• 0.70 tonnes of newspapers
• 1.38 tonnes of cardboard
• 107 tires (re-sold to be recycled)
• 352.35 tonnes of e-waste, inclusive of batteries,
Cables, CDMA phones, metal components, etc.
Legal
Information should not be disclosed.

According to government regulations the information of the customers like name address ID
numbers should not be disclosed to any external party at ant situation unless there is a legal
requirement.

The standard rates should be applied

The government has imposed standard rates for telecommunication companies so the companies
should adhere to the rates they cannot go beyond or else charge less in order to grab the
customers.

6
SWOT ANALYSIS
STRENGTHS
The large customer base is strength for a company. Some quantitative analyze is presented below
about dialog customer base & workforce.

 Mobile subscribers base – about 11 million

 Dialog TV subscribers base - 650,000
 EZ cash customer base – 2.2 million
 Mobile insurance base – 1.8 million

Work force

 Total employees – 4374

 Men : woman = 80 : 20

Network infrastructure – 3500 base stations & 140 service outlets.

Dialog operates all the mobile, fixed line, broadband, television services under one company
dialog Axiata plc .The main competitor of dialog is MOBITEL .but they do not provide these
services because mobitel is a subsidiary of Sri Lanka telecom and they mainly provides fixed
line services.

Value chain mapping provides guidance to identify the activities where the organization
has particular strengths & weaknesses (Refer to Appendix)

(1) Privacy of the customer (data integrity)

Privacy of the customers, employees, Distributors is very important as communication service

provider. Ensuring the reliability of the data leads to increase the trust of the customers on the
organization. It will help to attract more customers. This is the way that how the data integrity
becomes a strength to the organization. Dialog Company ensures customer information leaking
is Zero within their scope. They have enforced strict policies for employees by binding all staff
members to ensure the privacy of all sensitive data of the customers. Implementing an
INFORMATION SECURITY MANAGEMENT SYSTEM can be regarded as another measure

7
taken by them to ensure the data integrity.ISO/IEC 27001:2005 standard is being maintained by
them to ensure integrity internationally.

(2) Quality and affordability of the product and services.

Dialog provides an opportunity to Sri Lankans to enjoy high quality & most modern technologies
at an affordable price level when compared to the rivalry. They always try to ensure the quality
of the customer experience & perceived value of the services. Dialog has achieved so many
international and national awards for their operation excellence. Their quality standards became
strength for their company rather than competitors.

(3) Energy consumption and waste management practices.

Dialog has minimized energy consumption of network towers, Regional offices & head office
buildings .Significant reduction can be seen in energy consumption in last few successive years.
Energy saving strategies & practices become strength for an organization to minimize costs. This
can be considered as a step taken to increase eco friendliness. They are implementing new
techonologies, methodologies & processes to ensure the effective and efficient energy
consumption. As an example, they have developed LEED Gold green building & solar power
systems on their buildings to comprise with energy saving requirements.

(4) Innovations

Due to the rapid changing nature of the business and all other aspects, new technological
concepts are introducing and it helps to open up new possibilities. Organizations invest more on
research and development to discover new technologies.

Now days dialog provides 2G, 3G, 3.5G, 4G services. Partnership services can also be accounted
as strengths for a company. The following are some partnership services:

LESI PAY

Method of purchasing devices by paying the value of the good as installments with initial down
payment.

IDEA MART

8
This allows small &medium size entrepreneurs to create mobile app for their business to make
easier online purchasing, payments, and promotion purposes. Facilities for creating bulk
messages (SMS), USSD, LBS are provided under this service.

EZ CASH

Ez cash is an internationally recognized & awarded mobile money flat form. About 2 million
users gaining benefits by using this service including none dialog subscribers. Providing this type
of services increases the wide range of product & service portfolio of dialog, which is strength
for the company.

By joining with the companies like MIHIN LANKA airlines, wow.lk, thepapare.com, all
apps.com, ideamart, and money gram many services are provided by dialog. The relationship
built with these companies is a great strength for both parties especially for dialog.

(5) Work force

Dialog staff consists with over 3500 employees. Higher diversity can be seen in their work force.
Skilled and powerful staff is strength for the company and they are trying optimizing efficiency
of the work force by providing training programs such as MASSIVE OPEN ONLINE
COURSES (MOOCs) and the Dialog master trainer program. The content of the staff also
unique. They have 15 top managers and 344 middle managers.

(7) Procurement Practices

They have diversified & widely spread supply and distribution system. Their procurement
practices are also very excellent because they maintaining good relationships the suppliers. This
strong supply chain system is strength for dialog.

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WEAKNESSES
 High pricing

High pricing on IDD calls compared to other competitors

 Low credit margins

Low credit margins for business packages than other competitors.

 Employees

Focusing on the executive level than the below level.

 Waste

Electronic and paper waste

 97.4 tons of office paper waste

 0.70 tons of newspapers
 1.38 tons of cardboard
 107 tires
 352.35 tons of e-waste, inclusive of batteries, cables, CDMA phones, metal components,
etc.

 High roaming costs

Even though dialog provides a good roaming service, the cost charged to it is high compared to
other companies roaming services. The roaming charges in India for Dialog and Mobitel is
below:

Calls within India (mobitel) Rs.5.00 per minute

Calls within India (dialog) Rs.10.00 per minute

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PESTEL analysis provides guidance to identify the activities where the organization has
particular opportunities and threats

OPPORTUNITIES
 Demand for smartphone is increasing rapidly
 Can go for business diversification
 Usage of internet is increasing rapidly
 Growth of telecommunication industry in Sri Lanka:
Landlines in use – 3,449,000 (TRC Sri Lanka)
Mobile Phones in use – 20,324,000 (TRC Sri Lanka)
 Organization is using telecommunication support for developing their business.

THREATS
 Changes in rules and regulation
 Changes in technology
 Competitors trying to merge and create a better company
 Competitors better promotional activities.
 Change in inflation rate
 Increase in tax rate

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 TOWS MATRIX

Internal Strengths (S) Internal Weaknesses (W)

 Strong infrastructure  Weak packages for

 Strong network coverage corporate sectors
spread throughout the entire compared to others
island
 LESI PAY
Method of purchasing devices
by paying the value of the
good as installments with
initial down payment.
.

External Opportunities (O) SO WO

 Growth of telecommunication “Maxi-Maxi” Strategy “Mini-Maxi” Strategy
industry in Sri Lanka:
 Growing the Suntel Fixed
Landlines in use – 3,449,000  With the growth in
CDMA Market but the
(TRC Sri Lanka) telecommunication industry
charges are relatively
Mobile Phones in use – dialog can provide better
high
20,324,000 (TRC Sri Lanka) service with its strong
network.

External Threats (T) ST WT

“Maxi-Mini” Strategy “Mini-Mini” Strategy
 Rapid changes in Laws &
 The tax policy of 49.67%
Regulations  Adopted the “Lesi Pay” new
on prepaid connections
 Sri Lanka Telecom’s new hassle free method to
has affected the overall
Internet Packages with more purchase products with
First customer resolution
GBs at less price than dialog installment basis for prepaid
and the charges affect the
with a reasonable speed and postpaid customers
overall profit of the
organization

12
 The 4A’s philosophy has consistently driven Dialog’s Digital Inclusion efforts over the
years. More Sri Lankans’ consumption of Digital products and services is expanding as
lifestyles change. As more Sri Lankans increase their points of interaction with Dialog’s
universe of voice, data, television and digital services, the first pillar, Affordability,
received Dialog’s renewed focus in the year 2014 as we pushed the transition from
Exclusive luxuries to Inclusive digital tools. In terms of Availability of service close to
customer reach. And affordability of the products for any group of society and
applicability of the service to any person of the society and Affinity of the customers
towards the service.

Strategies of Dialog Axiata

● Launching of the new Self Care app with all-inclusive features for the customer service
experience enhancement.
● Discount offers and events to reward long-stay and high-value customers. Improving the
Club vision customer base and engaging them with the Dialog family.
● Introducing the One CRM platform to cater customers with the new facility of checking
the USSD using voice recognition rather than typing the code in the phone.
● Dialog experience centers to be opened in the urban and sub urban areas to improve the
service excellence to customers.
● E waste management policy of recycling old Sims
● Dialog TV to be engaged to the new satellite to transmit channels with new HD features.

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RECOMMENDATIONS AND CONCLUSIONS

Dialog Axiata PLC or Dialog Network is Sri Lanka’s best Telecommunication provider. Dialog
has continued to innovate with respect to the minimum cost of ownership associated with the
adoption of a digital lifestyle. Solutions architected by Dialog over the past year. As a service
company striving to empower Sri Lankans by employing the technologies and human resources
at its disposal, we at Dialog regularly ask ourselves what defines true Value – to the people we
serve, to our stakeholders, and even to ourselves. While some aspects may be nearly universal
and unchanging, other aspects of what comprises true value may differ based on time, place,
situation, and the individual, group or the organization. When concerning about Dialog they
should consider always from the customer point of view and provide the best resolution to the
problem. Strategies need to be more in line with the threats that government is pressurizing on
the taxes from the telecommunication related services. Make adjustments to the First Contact
resolution for customer delight excellence and Dissatisfaction inquires.

14
APPENDIX

VALUE CHAIN MAPPING

15
 ORGANIZATIONAL STRUTURE

CEO

Head HR Head Marketing Head Sales Head Head

Head IT Administration Accounts

GM – Post GM – Pre
paid paid

Senior Manager (Western province) Senior Manager (Uva province)

Manager Manager

Unit Manager

Assistant
Manager

Specialist

Senior
Executive

Coordinator

Executive
Officer

Office
Assistant

16
STUDENT EFFORT AGREEMENT
Strategic Plan for a Business Organization.

Section B: To be filled by the Student Group Members Note: All students need to discuss and
come to an agreement on the percentage of participation before signing. Incomplete sheets
cannot be accepted and marks may be delayed.

Group Name:

Weekday/Weekend Class Day the class is usually held …………………..

Time of usual class: ……………………

Today’s Date: ……………………….

University ID Name Percentage of Signature

participation as agreed
by all group members.
Note: 100% means full
participation and will
receive the marks
offered by the
examination panel. If
<100%,
Then marks will be
deducted.
1. BM16400450 Perera H.M.C.N 100%
2. BM16411340 Madhuthilina H.D.V 100%
3. BM16401372 Mathipiriya. B 100%
4. BM16408920 B.Tharindu Pushpakumara 100%
5. BM16411686 Umesh Jeewantha 100%
6. BM16414174 L.D.C.P. Rodrigo 100%
7. Hashini Lochana 100%
BM16068360
Ramanayake
8. BM 16401440 T.L Bopitiya 100%

17