Strategic Management Of Gtl Limited

Strategic management The set of managerial decisions and actions that determines the long-run performance of an organization.

Strategic Management  Analysis – Strategic goals (vision, mission, strategic objectives) – Internal and external environment of the firm

 Strategic decisions – What industries should to compete in – How should to compete in those industries

 Actions – Allocate necessary resources – Design the organization to bring intended strategies to reality

Why is Strategic Management Important  It results in higher organizational performance.  It requires that managers examine and adapt to the changing situations.  It coordinates diverse organizational units ,helping them focus on organizational goals.  It is very much involved in many of the managerial decisions.

Strategic Management Process • Strategic management process is a planning process in which managers :  Set the organization’s general directions & objectives.  Formulate a specific strategy.  Plan and carry out strategy’s implementation.  Monitor results and make necessary adjustments.

Strategic Management Process Mission & Objectives Environmental Scanning Strategy Formulation Strategy Implementation Evaluation & Control

Group Structure

Global Holding Corporation [GHC]

GTL India’s Largest Network Services Player

GTL Infrastructure Largest third party tower Company in India

Global Towers

Global Projects

Global InnovSource

Tower manufacturing for Telecom and Transmission Sector

Procurement and Project services

Recruitment & Staffing Services

GTL at a Glance Business

Network Services

Global Headquarters

Mumbai, India

Founded

1987

Global Presence

44 countries spread across Africa, Asia- Pacific, Middle East, North America, South Asia and Western Europe.

Domain Expertise

Telecom

Associates

5,947 (As of Mar. 31, 2009)

Stock Listed on

BSE, NSE

GTL’s Value Chain Network Planning & Design Network Deployment

Professional Services

Network Services Network O&M

Energy Management Infrastructure Management

GTL Financial & Track Record 450

403

400

347

350 300 Total Income 250 US$ Mn 200

226

150 100 50 0 2006-07

2007-08

2008-09

Financial Year

4th Qtr

GTL an Overview 2008

2009

35

Countries

44

5,045

Employees

5,947

45

Cellular Networks

70

36,000

Cell Sites

51,000

Mission Statement “India’s Largest Network Service Provider To The World” to becoming “World’s Largest Network Service Provider” By the way of : Growing along with partners.  Globalization  Inorganic growth  Delivery capabilities  Preferred partner with all the OEMs & Telecom operators

Policy Structure  Improving operational efficiency by re-engineering the business process.  Rationalizing manpower requirements by identifying & eliminating duplication of work.  Increasing the use of IT systems & video conference for cost reduction for overseas clients.  Introduction of variable pay components depending upon macro-economic conditions.

Key Objective Areas  Market standing  Innovation  Resource levels  Profitability  Social responsibility

Key Strategies  Consolidation of Networks  New Technology Deployments  Formation of Tower Company  Outsourcing of Network Services to OEMs  Multi-location Partnerships  Consolidation of Towers in Matured Markets like US & Europe

Strategic Choice  International strategy − Create value by transferring skills and products abroad.

 Multi domestic strategy − Maximize local responsiveness by customizing products and marketing strategy for local markets.

 Global strategy – Pursue low-cost Margins, offer standardized global products.

Enterprise Risk Management Information & Communication

Monitoring

Control Activities

Internal Environment

Risk Response

Objective Setting

Risk Assessment

Event Identification

Business-Level Strategies at GTL  Cost leadership – Attaining, then using the lowest total cost basis as a competitive advantage.

 Differentiation – Using product features or services to distinguish the firm’s offerings from its competitors.

 Market focus – Concentrating competitively on a specific market segment

Functional-Level Strategies at GTL Focus is on improving the effectiveness of operations within a company.  Marketing  Materials management  Quality  Human resources

Corporate-Level Strategies at GTL  Vertical Integration  Diversification  Strategic Alliances  Acquisitions  New Ventures  Business Portfolio Restructuring

Strategic Effectiveness

Review & Adjust

Formulate

Implement

Strategic Position  The Organization’s Environment – Political Economic Social Technological Environmental Legal – Sources of Competition – Opportunities and Threats  Strategic Capability of the Organization – Resources and Competences – Strengths and Weaknesses

Strategic integration Integration along Customer-Supplier chain

Organic Growth Strategy

Controlling Industry Paradigm

Improvements in Current Operations

Keeping Track-record

Successful Policy Implementation  Revenue increased by 9.80% to Rs.1,954 Cr.

 Operating profit increased by 11.48% to Rs.296.64 Cr.

 Profit after taxes decreased by 5.56% to Rs.145.56 Cr.

Total Spend on Telecom-USD 57 Billion by 2012 Managed Operations – 24%

Network Planning and Design - 4%

Optimization - 7%

Network Integration - 9%

Installation - 27%

Business Planning -7%

Maintenance – 22%

Key Challenges  Increasing Recurring Revenue & Improving Profitability.  Changing Geographic Mix  Creating Global & Professional Organization.

Conclusion Any business has to be conducted not only in a profitable manner, but also with all operational, ethical, legal, financial, & other risks being accounted for. In long run this could well be the difference between the business that survive & excel & those that fizzle out despite providing quality service.