Project Report

on
Organization Structure Analysis
of
Bharat Sanchar Nigam Ltd

Group 5
• Chandresh Baid
• Deepak Kapoor
• Gautam Singh
• Nishant Gupta
• Puneet Jain
• Vipin Agarwal
Objective of the study
To analyze the organization structure and its alignment with the Strategic Intent

Methodology of the Study

• Data Mining
• Primary Data - discussions with the different stake-holders of BSNL.
• Secondary Data - annual report, BSNL website and other websites.
• Empirical Analysis
• Organization Evaluation Framework
• PEST
• Miles & Snow
Limitations of the Study
• Difficulty in meeting with the major stake-holders.
• Certain information (Confidential data, reports) are restricted, so a detailed study is not possible.
• Time allotted for the study
2
Telecom Industry profile

Telecom Operator's Revenue

over 5 years
45,000.00
40,000.00

Revenue (in Crore)

35,000.00
30,000.00
Bharti
25,000.00
Idea Cellular
20,000.00
Reliance
15,000.00
BSNL
10,000.00
Vodafone
5,000.00
0.00
2008 2009 2010 2011 2012
Financial Year

3
BSNL’s Introduction
Organization Details
Type Telecom Service Provider Product portfolio
Geographic 1
Throughout India (except Delhi & Mumbai) Basic & Limited Mobile Telephone Services
Spread
Shareholder 2
Govt. of India - Holding 100% shares Cellular Mobile Telephone Services
Pattern
3 Internet Services
CMD Shri R.K. Upadhyay
4 Intelligent Network
Incorporated on 15-Sept-2000 5 Broadband Services
Founded
(took operations from DOT, Govt. of India)
6
Development of Rural telecom network
Website www.bsnl.co.in 7 Network Management
8
Setting up KU BAND VSAT network
9 Business Development
10 BSNL Cloud

4
Aspiration & Strategic intent
Growth Aspiration

• Be the leading Telecom Service Provider in India with global presence.

• Create a customer focused organization with excellence in sales,
marketing and customer care.
• Leverage technology to provide affordable and innovative products across
customer segments
• Provide a conducive work environment with strong focus on performance
• Establish efficient business processes enabled by IT

5
Vision, Mission & Objective
Vision
• Be the leading telecom service
provider in India with global
presence.
• Create a customer focused
organization with excellence in
customer care, sales and
marketing.
• Leverage technology to provide
affordable and innovative
telecom. Services/products
across customer segments.
6
Mission
• Be the leading telecom service provider in
India with global presence
• Create a customer focused organization
with excellence in sales, marketing and
customer care
• Leverage technology to provide affordable
and innovative products / services across
customer segments
• Provide a conducive work environment with
strong focus on performance
• Establish efficient business processes
enabled by IT
Vision, Mission & Objective ..
Objective
• To be the Leading Telecom Services provider by achieving higher rate of growth so as to become a
profitable enterprise.
• To provide quality and reliable fixed telecom service to our customer and thereby increase customers
confidence.
• To provide customer friendly mobile telephone service of high quality and play a leading role as GSM
operator in its area of operation.
• Strategy for:
– Rightsizing the manpower
– Providing greater customer satisfaction
• Contribute towards:
– Broadband customers base of 25 Million in India by the end of 2020 as per broadband policy 2004.
– Providing telephone connections in villages as per Government policy.
– To leverage the existing infrastructure of BSNL for facilitating implementation of other government
programs and initiatives particularly in the rural areas.
7
 Operating Goals

Focusing
on
financial
assurance

• Accelerating growth
of mobile business
• Leading and
shaping the fixed
access business
• Growing the
enterprise business
• Improving customer service and becoming
• Focusing on levels across different provider of choice
implementing interface points • Expanding into new
critical HR businesses
priorities
• Implementing operations
• Implementing new improvement initiatives
org. structure

8
Organization Structure
Zonal division

West Zone
North Zone
East Zone
South Zone

26 circles

9
Organization Structure..
CMD

Director Director Company

Director Director Chief Vigilance
Consumer Consumer Director HR Secretary &
Enterprise Finance Officer
Fixed Access Mobility GM Legal

CGMs of East Executive

CGMs of South CGMs of North CGMs of West
Zone Director -
Zone Zone Zone
Finance

PGM / Sr.GM / PGM / Sr.GM / Executive

PGM / Sr.GM / PGM / Sr.GM / PGM / Sr.GM /
GM (New GM (Enterprise Director New
GM (CFA) GM (CM) GM (Finance)
Business) Business) Business

Additional GM /
DGM

AGM

Sub Divisional
Engineer

10 Junior Telecom
Officer
Environment Impact
PEST ANALYSIS EXTERNAL ENVIORNMENT
Political
 Uncertainty and mismanagement in telecom policy and
regulations has taken BSNL on back foot in taking bold
decisions.
 Recent scams have made policy makers more cautious
 Work for Pan India and can’t choose specific circles
 TRAI Regulations
Technology
 State of the art technology
 Rapidly changing technology
 Strong Fibre Optic Network
 B2B & B2C E-Commerce facilities
 Improved and efficient Customer care services

Economic Socio-Culture
 Highly competitive telecom market, driving cost  Mobile connectivity has become the necessity
down  High End phones becoming status symbols
 Not able to capitalize and sustain first mover's  Landlines converting into Mobiles
advantage.  Tech Savvy generation
 Accelerated economic growth, lower & middle class  Indian culture driving need for more connectivity
consumer base growing
 Emerging Sectors – New opportunities
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Environmental Uncertainty Assessment
BSNL’s environment is highly complex.
• Heterogeneous
• Working under dissimilar external elements
• Most common external elements of real importance are
– Stiff competition
– Suppliers
– Customers

BSNL works under unstable condition

• These environmental elements shifts abruptly

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Miles & Snow Structure Typology
Strategic Main Focus Traits
Orientation
Although BSNL gets first hand to try any service
Entrepreneurial, Innovative and New Opportunities Oriented, provided by DoT; even then not taking advantage
PROSPECTOR searches for New Markets and Encourages Risk Taking is big negative. Whereas Bharti, Vodafone
telecoms have developed innovative technologies
as new opportunities (even 1st Movers).
BSNL has been in this section; trying to defend
Protects current markets, maintains stable growth, serves its position as erstwhile market leader. Not taking
DEFENDER current customers, targets narrow market segment (niche risk. Not focusing on Innovation and R&D. Using
market) legacy Technology and outdated employee’s skill
sets.
Reliance telecoms falls in this sector, as initial
Hybrid of Prospector and defender types, Not disturbing core R&D is done for at least 2 – 3 years and then
ANALYSER business but does side by side R&D and experimentation, update their technology and introduce newer
moderate emphasis on innovation. products based on consumer environment after
. initial market study.

Idea, Uninor, Videocon, Aircel Telecoms have

No clear strategy and reacts to changes in the environment, first studied the other players, taking advantage of
REACTOR drifts with events. their knowledge and learning pattern then
implemented their short term strategies.
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Organization Culture & Behavior
• Driven by hierarchical mindset
• Lack of aggression in driving innovation
• Lack of shared vision amongst employees
• Inability to see the big picture
• Obsolete/outdated employee Skills.
• Lack of ownership in employees – on deputation from
DoT, GoI

14
Findings
• Poor customer services
• Lack of focus in marketing and sales
• Not agile to adapt to market changes
• Exorbitantly high man power cost
• Legacy operations systems

15
Suggestions
• Strengthening of Sales & Marketing – Enhanced channel management team
headed by CMO.

• Employee workshops – for mindset change & customer centric behavior

• Employee enablement – trainings for upgrading skills to handle technological

advancements

• Hire best talent with focus on younger generation.

• Non core operations should be outsourced (reducing unionization, finance

cost).

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Suggestions..
• Defining SOPs and using IT to enhance efficiency and effectiveness - Integrated ERP-
system (top-bottom) headed by CIO.

• Need for KM - Performing Districts to be study and analyzed, best practices should be
shared across other districts.

• Latest Technology adoption - Migration to Next Generation Infrastructure.

• Salary cost reduction – Dis-investment, IPO, Implementation of VRS.

• Employee Motivation – Awards, recognition based on performance and innovation.

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Q&A
Thank you