Privatization of Mobile Telecommunications company in Kuwait: The case of, Zain Company - Assignment Example

Privatization of Mobile Telecommunications company in Kuwait: The case of Zain Company Privatization of Mobile Telecommunications company in Kuwait: The case of Zain Company The purpose of the interview was to obtain views and perceptions of employees of Zain Company related to the privation of the company. Three individuals were interviewed who had been working with the company before and after the privatization of the company. The findings of the interview are presented in the following. The methodology used to interpret findings of interviews is based on the study by Clune et al. (2014). The interview script was structured with 17 questions. The first five questions are aimed at asking interviewees about their year of joining, position, experience, career growth, and working with the company before or after privatization of Zain Company. The next of questions four questions get their views on pre-privatization strategy, products and services, efficiency and productivity level and ability to stay abreast to the technological development. The next eight questions inquire interviewees about the position of the company after post-privatization period. The findings are provided in the following questions based on the type of questions put before interviewees in the process. Interviewees’ Experiences All three interviewees have been working for the company since late or early 2000. They have worked in pre- and post- privatization periods. They held different positions prior to the privatization of the company and later were promoted to higher positions in the company. Pre-Privatization Period for Zain Company The common characteristics of the government’s strategy, products and services, and the role of the government in increasing the level of efficiency, employee productivity, and profits, and technological development are summarized in the table below. Government Pre-Privatization Strategy The strategy was simple but not clear. The company enjoyed monopoly in the Kuwaiti market as there were no competitors. The focus was on managing networks and maintaining service. Pre-Privatization Products and Services There were limited products and services offered by the company. The company offered services for individuals and corporate clients. There were high costs of obtaining connections. There were major delays in connections and reconnections. The company did offer fixed line telecommunications, Internet services, and mobile communication services. Government’s Role The company maintained high profitability. The company had strong presence in the international markets. There was a low level of employee productivity as strategies were governed by the government. The company did attempt to improve its service standards but comparatively it remained below par. It lacked in customer segmentation, marketing, and managing cost functions. Government’s Involvement The company invested heavily in improving its network coverage and expansion in international markets. The company took major steps to bring the new technology and ensure that its services remain uninterrupted. The company major success was the installation of GSM. There were conflicting responses regarding the company’s ability to increase employee productivity and managing human resource. Furthermore, interviewee#1 had much more positive stance towards the company and it achievements. On the other hand, interviewee#2 and interviewee#3 were quite negative about the steps by the company the pre-privatization period. The company had unclear business strategy and plan to delivery service quality to its customers. It just followed trends in the telecommunication industry. Post-Privatization Period for Zain Company This section provides common characteristics of the responses provided by interviewees regarding privatization, changes that the company went through, and the effects of privatization on the company. Support of Privatization There was a clear support for privatization of the company. The government’s involvement in the strategy creation reduced. The privatization resulted in better management and operating efficiency. The company improved its customer service. The company’s internationalization process speeded up. Post-Privatization Strategy There is no comparison between pre- and post- privatization strategy. The company in pre-privatization period had a monopoly and focused on the local market only. Product and Service Development The company’s product development involved major partnerships with other companies. The company invested significantly in improvement its Internet service in the local market. The expansion in network was rapid. Reasons for Privatization The interviewees agreed to the fact that privatization was a major step towards achieving international growth. The primary reason for privatization was to consolidate the company’s operations locally and internationally. The company went ahead with major investments in Bahrain and 7 other countries in the Middle East. The company appointed Scott Gegenheimer as the CEO who had substantial experience in the industry. Development in the Telecommunication Sector The company achieved great success and growth in the period after privatization. The company implemented up-to-date and advanced technology to improve its telecommunication services. The company was able to serve larger customer base with the same workforce. The focus of the company shifted to improving service quality and increasing the company’s profitability in the local and international markets. The network expansion was significant as the company launched new services in its international markets. Involvement of the Government The government continued to be the silent partner. The government approved strategic decisions undertaken by the company. The strategy led by the company’s CEO allowed the company to focus on its core competencies in the local, regional, and international markets with the government’s support. Vision for the Future The communication sector is expected to grow in the coming years. Companies will have to focus on value added services to achieve higher growth. There are great opportunities available for the telecom sector in banking, education, fashion, equity trading, etc. There are common acceptance and appreciation of Zain Company’s privatization. It not only allowed the company to redevise its strategy and focus on its core strengths to expand and improve its network locally, regionally, and internationally. Reference Clune, R., Hermanson, D.R., Tompkins, J.G. & Ye, Z., 2014. The Nominating Committee Process: A Qualitative Examination of Board Independence and Formalization. Contemporary Accounting Research, 31(3), pp.748–786. Read More