Vodafone report final

Report on Internship Project at Vodafone India
R.V. Institute of Management Page 1
1.1 Introduction
Organizational study involves careful study about how people inside the organization interact
with one another and how they can be made better to communicate their concerns. This study
process helps the management professional students to have a practical knowledge of how an
organization executes its various functions to achieve its objectives. It helps in giving a clear
picture of various departments along with their functions, goals and overall contribution in
accomplishment of organizational goals. No department can function properly without
cooperation of others. The success of every organization depends on the extent of
cooperativeness and understanding between the departments. The organizational study helps
in understanding the various functional departments of the organization.
Further, the organizational study helps the management student to get an overall practical
knowledge on the working of various departments. This study will also make a way to apply
theoretical knowledge in to practice.
Objectives of Study
1. To study the organizational structure.
2. To study and understand the structure and function of various departments of
organization.
3. To study the relevance of coordination between the departments.
4. To identify, analyse and suggest the solution to the identified problem.
Duration of Study
The time duration of study was 30 days.
Scope of Study
Organizational study report helps the management in understanding the efficiency, relevance
and importance of each department. It helps to achieve the overall goals of the company. The
SWOT analysis helps the company to understand its Strengths, Weakness, Opportunities and
Threats from internal and external sources. The problem identification makes the company to
know the problem in a specific field and helps in taking the corrective action for
improvement in operations. As a student, it helps to understand the functioning of
departments and organization as whole.

Limitations of study
1. It was very difficult to conduct the detailed study on each department since most of the
employees could not spend their time to share their experience.
2. It was also difficult to identify a particular problem faced by a department and to
suggest solutions for it.
1.2 About the Industry
Indian telecommunication Industry is one of the fastest growing telecom industries in the
world. It is the second largest telecom network on subscriber basis. The extensive growth and
hyper competition have resulted in lowest tariff rates. India is the third largest internet user-
base with over 137 million as of June 2012. Major sectors of Indian telecom industry include
telephony, internet and television broadcasting.
Telecommunication has been recognised all over the world as an important tool for socio-
economic tool for development. It has a greater part in economy of nation.
Telecommunication acts as a catalyst in the growth of various sectors of economy. Over the
last few years Indian telecom industry has shown overwhelming growth due to major changes
in Indian economic policy.
Indian telecom industry underwent a high pace of market liberalisation and growth since
1990s and now has become the world's most competitive and one of the fastest growing
telecom markets. The Industry has grown over twenty times in just ten years, from under 37
million subscribers in the year 2001 to over 846 million subscribers in the year 2011. India
has the world's second-largest mobile phone user base with over 929.37 million users as of
May 2012. It has the world's third-largest Internet user-base with over 137 million as of June
2012.
The telecom industry has witnessed significant growth in the subscriber base over the last
decade, with increasing network coverage and competition induced a decline in tariff and
rapid growth in the subscriber base. This growth has attracted many new and foreign
operators to the industry and kept competition increasing.
Post liberalisation in 1990’s the telecom sector made open to the private players. During this
time Indian telecom industry underwent high pace of market liberalisation and growth to

become most competitive and one of the fastest growing sector. Apart from rapid growth it
also helped a in a great deal towards maximization of consumer benefits, evident from huge
fall in tariffs.
With a subscriber base of more than 929 million, the mobile telecommunication system in
India is second largest in the world, with dominance of GSM technology with 80% of total
subscriber base. The remaining 20% of share is stabilised by CDMA technology for time
being. By May 2012 the country had 929 million mobile subscribers, up from 3350 million
just before 40 months. The mobile market was continuing to expand at the rate in excess of
40% coming into 2010.
According to the data provided by Ministry of state for communications and IT, as of
November 2012, India has 7,36,654 base transceiver stations. Among those, 92,212 stations
provide3Gmobile services. Out of India’s 640 districts, 610districts are covered by 3G
services as of November 2013.
The country is divided in to multiple zones roughly across state boundaries called as circles.
Currently there are total 23 telecom sectors which are categorised as, A-category, B-category,
C-category and Metros. India primarily follows the GSM mobile system, in 900 MHz band;
recent operators also operate in 1800 MHz band. The dominant players of Indian telecom
industry are Airtel, Vodafone, BSNL, Reliance, Aircel, Idea and Tata DOCOMO. Apart from
these major players there are many other small service in few states.
International roaming agreements exists between most of the operators and many foreign
carriers. The government allowed Mobile Number Portability (MNP) from 20-January- 2010,
which enables the user to switch from one operator to another operator without changing the
number.
Telecommunication has supported the socioeconomic development of India and has played a
significant role to narrow down the rural-urban digital divide to some extent. It also has
helped to increase the transparency of governance with the introduction of e-governance in
India. The government has pragmatically used modern telecommunication facilities to deliver
mass education programmes for the rural folk of India.

1.3 Players in the Market
1. Bharti Airtel: Popularly known as Airtel, it stands at 1st rank in India and 4th in the
world in terms of number of subscribers. It its operations is widely spread among
more than 20 countries spread across Asia and Africa. It control over controlled 27%
revenue market share of Indian Telecom market, followed by Vodafone and Idea
cellular. It offers 2G, 3G, mobile commerce, High speed DSL broadband, IPTV,
DTH, fixed line services and enterprise services including national and international
long distance services to carriers. It has over 269 million customers as of March 2013.
2. Vodafone India: Formerly known as Vodafone Essar and Hutchison Essar is the
second largest telecom operator in India with approximately 147.48 million customers
as of December 2012. . It has its Headquarter in Mumbai. On March 31,
2011, Vodafone Group Plc bought an additional 33% stake in its Indian joint venture
for $5 billion after partner Essar Group exercised an option to sell the holding in the
mobile-phone operator. The deal raised Vodafone’s stake to 75%. Essar left the
company in 2007. Vodafone offers GSM cellular phone in India with a major market
share in Metropolitan cities. It launched 3G in last quarter of 2011 and has the plan to
spend $500 million in next 2 years of 3G network. Marten Pieter is managing director
and CEO of Vodafone.
3. Reliance Communications: Reliance ADA Group's flagship company with
Headquarters in Mumbai. It stands at 8th position in the globe and 3rd in India. It is
India's largest private sector information and communications company, with over
100 million subscribers. It has established a pan-India, high-capacity, integrated
(wireless and wireline), convergent (voice, data and video) digital network, to offer
services spanning the entire infocom value chain. It is the only operator which
provides speed up to 28Mbits/Sec with its 3G MIMO technology.
Anil D Ambani is the chairman of the company.
4. BSNL: BSNL or Bharath Sanchar Nigan Limited is a public telecom service provider
in India. The telecom sector was under the complete monopoly of BSNL prior to
liberalisation except in Delhi and Mumbai. BSNL offers both fixed line and mobile
services with broadband connections. With over 71.68 million subscribers, BSNL
currently is the largest wireline service provider in India. BSNL has 24 telecom
circles, 2 metro districts, 6 project circles, 4 maintenance regions, 5 telecom factories,

3 training institutions and 4 specialized telecom units. It is the only one telecom
company which enjoys the advantage of 900MHz band all over India.
Gopal Das is the new chairman and managing director of BSNL.
5. Idea Cellular: Idea Cellular is subsidiary of the Aditya Birla Group. It is a leading
GSM mobile services operator in India with 67 million subscribers. Idea offers both
prepaid and post-paid services. It is a pan-India operator with services being made
available in all parts of the country. Idea was the first cellular service provider to
launch General Packet Radio Service (GPRS) and Enhanced Data rates for GSM
Evaluation (EDGE) in the country. Kumar Mangalam Birla is the chairman of the
group.
6. Tata Teleservices: Tata Teleservices spearheads the Tata Group's presence in the
telecom sector. Established in 1996, Tata Teleservices, one of the 96 companies of
Tata Group, has its network in 20 circles. It is the first company to launch CDMA
mobile services in India. It launched mobile operations in January 2005 under the
brand name Tata Indicom. It enjoys a pan-India presence through existing operations
in all of India's 22 telecom circles. Tata Teleservices operates under five different
brands -- Tata Indicom (CDMA services), Tata DOCOMO (GSM services), Virgin
Mobile, Tata Walky (which is the brand for fixed wireless phones), Tata Photon (the
company's brand that provides a variety of options for wireless mobile broadband
access) and T24. Tata Teleservices Ltd, along with Tata Teleservices (Maharashtra)
Ltd, serves nearly 70 million customers in more than 450,000 towns and villages
across the country. Anil Sardana is the managing director of Tata Teleservices.
7. Aircel: It is a joint venture between Maxis Communications Berhad of Malaysia and
Sindya Securities Investments Private Limited, whose current shareholders are the
Reddy family of Apollo Hospitals Group of India. Aircel commenced operations in
1999 and became the leading mobile operator in Tamil Nadu. It emerged a market
leader in Assam and in the North Eastern provinces within 18 months of operations.
Today, the company has a foothold in 21 circles with more than 43 million customers
in the country.

1.4 Industry Volume
Indian telecom industry has witnessed tremendous growth over the past decade. Today, the
Indian telecom network is the second largest in the world after China. The huge amount of
growth opportunity has increased the number of players in the market
The telecom industry has witnessed significant growth in the subscriber base over the last
decade, with increasing network coverage and a competition-induced decline in tariffs acting
as catalyst for the growth in the subscriber base. The growth story and the potential have also
served to attract newer players in the industry, with the result that the intensity of competition
has kept increasing. The sector expected to witness up to US$56.3 billion investments and the
market will cross the US$ 101 billion mark in five years.
As per the survey made by Telecom Regulatory Authority-India in 2012the total number of
telephone subscribers including both wireless and landline were 995.9 million. The number
of landlines was 31.53 million significantly less compared to the cell phone which was
929.37 million. The TRAI has recognised a significant fall in the growth rate of landlines
about 13% from 2009 on the other hand the monthly cell phone addition was 8.35 million.
The overall teledensity in the Indian market is was 79.28% in 2012. In addition to this the
TRAI has estimated that the teledensity will increase to 97% at the end of 2013.
1.5 Current Scenario:
Indian telecom industry has witnessed tremendous growth over the past decade. Today, the
Indian telecom network is the second largest in the world after China. A liberal policy regime
and involvement of private sector have played an important role in transforming this sector.
Liberalization of the sector not only led to rapid growth but also helped a great deal towards
maximization of consumer benefits, evident from huge fall in tariffs. The sector has
witnessed a rapid hike in ‘Teledensity’, from 8% in 2002 to 79.28% in March 2012.
The main loop hole in Indian telecom industry is a huge gap in Teledensity between rural and
urban India. In March 2012, urban density 169.55% and rural with 39.22%, Ministry of
Telecom and IT is has taken all measures to fill this gap. The lower Teledensity in rural area
is witnessing a greater opportunity to the players in the market.

Telecom Circles:

2.1 Company History
Vodafone India, formerly Vodafone Essar and Hutchison Essar, is the third largest mobile
network operator in India after Airtel and Reliance Communication by subscriber base. It is
based in Mumbai, Maharashtra. It has approximately 147.48 million customers as of
December 2012.
In July 2011, Vodafone Group agreed terms for the buy-out of its partner Essar from its
Indian mobile phone business. The UK firm paid $5.46 billion to its Indian counterpart to
take Essar out of its 33% stake in the Indian subsidiary. It will leave Vodafone owning 74%
of the Indian business, while the other 26% will be owned by Indian investors, in compliance
with Indian law. On 11 February 2007, Vodafone agreed to acquire the controlling interest of
67% held by Li Ka Shing Holdings in Hutch-Essar for US$11.1 billion, piping Reliance
Communications, Hinduja Group, and Essar Group, which is the owner of the remaining
33%. The whole company was valued at USD 18.8 billion. The transaction closed on 8 May
2007. It offers both prepaid and post-paid GSM cellular phone coverage throughout India
with good presence in the metros.
Vodafone India is a member of the Vodafone Group and commenced operations in 1994
when its predecessor Hutchison Telecom acquired the cellular license for Mumbai. The
company now has operations across the country with over 150 million customers. Vodafone
India has firmly established a strong position within the Vodafone Group too, making it the
largest subscriber base globally. This journey is a strong testimony of Vodafone’s success in
a highly competitive and price sensitive market.
Vodafone India has been awarded the Most Admired Telecom Operator and Best 3G
Operator at the recent Telecom Operator Awards 2012. The company has also received the
globally recognized prestigious ‘Product of the Year 2012’ consumer award for Vodafone
Apps Store in the Mobile Services Category. In another survey conducted by Nielsen,
Vodafone India was the only telecom player in the Top 10 ‘Most Exciting Youth Brands’ in
India. Vodafone India also features in the Top 10 ‘Most Trusted Brands in India’ for 2011, in
a survey conducted by a leading financial daily.
Serving the needs of an enterprise, Vodafone Business Solutions is a total communications
offering that caters to all their voice and data, wireless and Fixed-line requirements. With the
advantage of global expertise and experience and the knowledge of local markets, the

business is run through the following verticals – Vodafone Global Enterprise, SME division,
National corporate and key accounts. Since its inception, Vodafone Business Solutions has
garnered over 3 million corporate customers in India and currently provides services to over
6000 Global and national accounts equipped with a robust and superior network
infrastructure and a 24x7 NOC. Vodafone has been recently awarded the 'Enterprise Mobile
Service Provider of the Year' at the 2012 Frost & Sullivan India ICT Awards.
At Vodafone, sustainability is an integral part of the company’s mission and strategy, shaping
the conduct of business every day. Vodafone India, in line with its group philosophy has
released the Corporate Sustainability Report for India – Footprints 2010-11.
Vodafone Group is one of the world's largest mobile communications companies by revenue
with over 398 million customers as at December 31, 2011. Vodafone currently has equity
interests in over 30 countries across five continents and more than 40 partner networks
worldwide.
Important Years in Vodafone (India) History
Established in 1992
 Hutchison Whampoa and MAX group established Hutchison Max
 2001: Won auction for licences to operate GSM services in Karnataka, Andhra
Pradesh and Chennai.
 2005: Acquired BPL Mobile operations in 3circles. This left BPL with operations
only in Mumbai, where it still operates under the brand ‘Loop Mobiles’.
 2008: Vodafone acquires the licences in remaining 7 circles and starts its pending
operations in Madhya Pradesh, as well as in Orissa, Assam, North East and Bihar.
 2011: Vodafone Group buys out its partner Essar from its Indian mobile phone
business. It paid $5.46 billion to take Essar out of its 33% stake in Indian subsidiary.
It left Vodafone owning 74% of Indian business.

2.2 Vodafone India Vision:
The Vision statement of Vodafone India is as follows:
“Our vision is to be recognised as the leading Indian telecom company, for our responsible
and ethical behaviour, contributing positively to the world around us”.
Vodafone India Mission:
The Mission statement of Vodafone India is as follows:
“We will enhance value for our stakeholders and contribute to society by providing
customers with innovative, affordable and customer friendly communication services.
Through excellence in our services we aspire to be the most respected and successful
telecommunications company in India. We see our customers, employees, shareholders and
the community we operate in as our most important stakeholders”.
Customers
We enhance value through delivering affordable, reliable and customised communication
services which are simple to use, enjoyable, seamless and secure. We define success as
delighted customers who recommend us to others.
Our customers respect us because:
 We understand their needs.
 We create innovative services.
 We consistently deliver on what we promise.
 We are transparent and trustworthy in our interactions.
 We provide a secure and reliable network.
 We offer affordable products and services.
 We define success as delighted customers who recommend us to others.
Employees:
We enhance value through providing enriching careers and long term growth opportunities in
a fair and collaborative work environment. We define success as happy employees with great
careers.

Our employees respect us because:
 We provide a healthy and safe work place.
 We encourage mutual respect, trust and appreciation.
 We promote diversity and treat them inclusively.
 We conduct ourselves with transparency and integrity.
 We pursue speed and simplicity in all that we do.
 We recognise and admire accomplishments.
 We define Success as happy employees with great careers.
Shareholders:
We enhance value through growing the company’s revenue and profitability while creating
sustainable free cash flow through efficient resource utilisation and effective risk
management.
Our shareholders respect us because
 We follow ethical business practices.
 We communicate in a fair and transparent way.
 We enhance company’s reputation and brand value.
 We do everything to protect our shareholders interest.
We define success as creating sustainable value by delivering great shareholder return
Our Community:
(Business partners, Authorities, Influencers and Local Communities)
We contribute to the society by supporting authorities in mobilizing social change and
achieving their economic goals, creating value for our business partners and contributing to
the social & economic development of local Communities.
Our community respects us because
 We act responsible towards our environment.
 We create community connect.
 We stimulate business and economic growth.
 We have high standards of corporate governance.

 We conduct our business with transparency integrity and fairness.
 We define success as being the most respected telecom company in India.
2.3 Mile Stones:
Vodafone's Indian odyssey key milestones:
2007
 February: Vodafone buys 67% in Hutchison Essar for $11.5 billion Company
renamed Vodafone Essar.
 April: FIPB clears deal subject to condition that minority shareholders can sell only
to resident Indians.
 September: Income-tax (IT) department slaps Vodafone with a tax demand of Rs
11,000 crore. Says asset for which deal was done is in India.
 October: Vodafone goes to Bombay High Court, saying "it was a share transfer
carried outside India".
2008
 February: Government amends Section 201 of IT Act, makes withholding tax
mandatory with retrospective effect. Vodafone becomes a pan-India player by
acquiring licences in the 7 circles it was not present in.
 December: HC dismisses Vodafone's petition, says IT department has right to
investigate the case; Vodafone appeals to Supreme Court. Vodafone becomes a pan-
India player by acquiring licences in the 7 circles it was not present in.
2009
 January: SC dismisses Vodafone's appeal, leaves decision on jurisdiction of deal to
the IT department. Also refers case back to Bombay HC.
 October: I-T dept. issues a new show cause notice. Minority shareholders Analjit
Singh & Asim Ghosh want to sell stake back to Vodafone.
 December: FIPB approves stake sales by Singh and Ghosh.
2010

 January: Vodafone replies to I-T notice saying I-T department does not have
jurisdiction.
 April: Vodafone reaches 100 m customers in India.
 May: Price wars in India cause Vodafone Group Plc to write down value of Vodafone
Essar by £2.3 billion (Rs 15,157 cr), Vodafone pays Rs 11,618 cr for 3G spectrum in
9 circles.
 June: Vodafone fi les petition in Bombay HC challenging I-T department's order that
claims jurisdiction.
 September: High court says Vodafone must pay capital gains tax on the deal.
Vodafone appeals to Supreme Court asks I-T department to quantify tax liability.
 November: SC asks Vodafone to deposit Rs 2,500cr and provide bank guarantees of
Rs 8,500cr pending final verdict.
2011
 March: Vodafone receives tax notice from I-T dept asking it to explain why it should
not be liable for penalties of up to 100% of the tax found due.
 May: Vodafone makes first ever profit in India of 15 m Euros in 2010-11.
 April: SC stays I-T department from enforcing any liabilities until outcome of final
hearing.
 August: Supreme Court begins hearing the case. Vodafone sells 5.5% of India
business to Primal Healthcare for $640 million (around Rs 2,890 cr) to comply with
FDI rules
2012
 January: Vodafone appoints investment bank NM Rothschild to manage initial
public offering (IPO).
 January 20: Vodafone wins tax case in Supreme Court.

2.4 Operations Area and Business:
It is the area or the field of operation in to which the business of a company diversified.
Following are the areas of operations of Vodafone:
1. Mobile data services: The goal of Vodafone is to become the provider of choice for
customers wanting to use data services. The opportunity is huge as company believe
that over time all customers will want to use data internet services on their mobile
devices.
According to industry analysts, data is expected to be the fastest growing segment of
the mobile industry. It is estimated that between the 2011 and 2016 calendar years
worldwide mobile data revenue is set to grow by US$142 billion, compared to a
US$27 billion decline in voice revenue over the same period.
In this context Vodafone aims to have the best mobile network in all of the markets in
which it operate, supported by leading IT systems. This means giving our customers
far-reaching coverage, a very reliable connection and increasing speeds and data
capacity.
2. Enterprise and total communications: Continued globalisation of marketplaces and
the growth of small businesses looking for more productive ways of communicating
has created growth opportunities for Vodafone in all enterprise segments from micro-
businesses to multinationals.
Vodafone’s enterprise customers range from small-office-home-office businesses and
small-to medium-sized enterprises, through to large domestic and multi-national
corporates. Across the Group we have over 30 million mobile enterprise customers
accounting for around 8% of all customers and around 23% of service revenue.
Vodafone want to confidently connect businesses using our expertise in converged
services, delivering unmatched customer experience and real value for money.
Company have aim to continue to gain market share and exploit opportunities across
our geographic footprint.
3. Vodafone Global Enterprise: Vodafone Global Enterprise serves the needs of
Vodafone’s largest multi-national corporate customers. MNCs demand a consistent
multi-country offer from Vodafone across our global footprint. Vodafone Global

Enterprise simplifies operations for these customers by providing them with a single
account and service team, a single contract, single pricing structures and a single
portfolio of products and services. Vodafone Global Enterprise has created a market
leading portfolio of Managed Mobility Services providing capabilities such as mobile
email or device security as a chargeable managed service in addition to providing the
underlying connectivity and devices. By providing a broader range of services
Vodafone Global Enterprise extends its core value proposition of integrating,
managing and simplifying global communications services for MNC customers.
4. Mobile commerce services, Machine to Machine services and operator billing:
People are using data more and more in their everyday lives driven by fast, reliable
mobile data networks and continual improvements in devices such as handsets and
tablets. We are also seeing increased interest from customers in new data-based
services like mobile payments via handsets and mobile data devices for homes and
cars.
Mobile financial services are today at the core of our mobile commerce services and
M-Pesa is our main service, a mobile payment service that enables millions of people
to transfer money electronically even when they have no access to a bank.
M2M connections allow machines to communicate with one another via built-in
mobile SIM cards. It is our vision to transform lives and businesses by providing the
most innovative M2M products and services for our customers.
Across the globe around 28 billion apps are downloaded every year; most are free but
an increasing number are paid for. To build on this opportunity we are partnering with
leading companies such as Google and Facebook to enhance their service with a
simple solution that allows our customers to pay for apps and games directly and
simply on their Vodafone monthly phone bill. We were the first operator to launch the
service in Europe for the Android market and the service today also works on
BlackBerry and Nokia.

2.5 Product and Service Profile:
 Products: Vodafone offer the customers products such as Sim cards, Mobile phones,
Smart phones, Vodafone branded handsets and USB sticks. These products can be put
under three main categories as below:
1. Sim cards: Vodafone offers both Pre-paid and Post-paid Sim cards based on the
demand of the customers. Both types of Sim cards contain a wide range of tailor-
made options based on the individual or organizational demand.
2. Mobile phones: Vodafone has a wide range of mobile phone from Basic phones to
Smart phones. The mobile phones are sold under its own brand name as well as other
companies like Blackberry, Sony, Samsung, Nokia and HTC. It also offers the mobile
phones with inbuilt Sim cards for business purpose.
3. USB sticks: Apart from the mobile phone and Sim cards Vodafone also offers USB
stick or Dongles of various data plans to the internet users.
 Service: Service is the main source of Vodafone’s revenue. As a telecom service
provider Vodafone offers a wide range of services to the different groups of society
from Farmer to Business man. These services can be put under four main categories:
1. Productivity Services: These are the services mainly useful in the business for the
day to day operations. They act as the catalyst in the smooth running of business by
creating easy work environment. It includes services like Mobilization of applications,
Digital gateway, Audio conference etc.
2. Mobile broadband and internet: These are the services which are built to serve each
category of the society. It includes services such as Mobile Wi-Fi, Sharing dock via
phone, Mobile TV, HD gaming, Video calling, Caller tunes and tones, M-Shop,
mHealth services etc.
3. Voice and messaging: These services are the services used for both business and
general purposes. It includes services such as Bulk SMS, Corporate caller tune,
Interactive SMS, MSN at Vodafone, Yahoo! Messenger etc.
4. Machine 2 Machine solutions: These are the services given by Vodafone exclusive
for business purpose. It includes Location tracker, Telemetry solutions, Security
solutions, Vodafone voyager etc.

2.6 Competitors Analysis:
Sl.
No
Company Product Service Offer Network Performance Market
share
(%)
1. Airtel
Excellent
quality.
Good
response
from
officials
Urban: G
Rural: G
Urban: E
Rural: G
Rs, 51,893
crore 21.79
2. Reliance
Good
quality
Good
response
from
officials
Urban: G
Rural: A
Urban: G
Rural: G
Rs 11,110
crore 14.35
3. Idea
Good
quality
Good
response
from
officials
Urban: A
Rural: G
Urban: G
Rural: G
Rs 15,389.00
crore 14.22
4. BSNL
Poor
quality
Poor
response
from
officials
Urban: A
Rural: A
Urban: E
Rural: E
Rs 27,933.50
crore 11.27
5.
TATA
DOCOMO
Good
quality
Good
response
from
officials
Urban: G
Rural: G
Urban: G
Rural: A
Rs 1,419.69
7.50
6. Aircel
Good
quality
Good
response
from
officials
Urban: G
Rural: A
Urban: G
Rural: A
Rs 8,439.23
crore 6.94
7. Others
Good
quality
Good
response
from
officials
Urban: G
Rural: P
Urban: G
Rural: P 6.15
Excellent: E Good: G Average: A Poor: P
From the above analysis it is clear that Airtel is the market leader by customer base and
revenue. It provides Good products, services, offers and even network coverage. Though the
Government owned BSNL has excellent network coverage lack of service facilities and good
offers resulting in fall in its revenue year by year
As the first private player in the market, Airtel enjoys “first entry opportunities” in most of
the telecom circles with 900 MHz frequency network contributing to its good network
coverage. In overall Indian context Airtel is the Market leader Followed by Vodafone,
Reliance and idea as challengers and other operators as followers.

2.7 Policies of Organization:
At Vodafone India, sustainability is a journey, not an objective. Vodafone constantly strive to
make sustainable practices in intrinsic part of business strategy, touching every project
process and person. Advocating a comprehensive approach, most of the initiatives are
designed to make our stakeholders an equal partner in the process; sensitizing them to our
socially responsible practices and encouraging them to make this world a better place.
Vodafone employees, across India, attempt to conduct business responsibly and to give back
to those who have supported us in all our endeavours.
1. Pursuits that are making a difference
Vodafone’s pursuits reflect the extent to which sustainable development practices have
been embedded in the way of doing things. Form waste management to green building;
from efficient data centres to green networks, Vodafone is taking sustainability to to the
next level through initiatives.
 Fast Forward
 Green Building Initiative
 The ReSolving campaigning
 Green networks
 Data centres, switching centres and Video conferencing.
2. People that are making a difference
People are at the centre of Vodafone’s sustainability strategy. Vodafone invest in their
training and development and strive to build a safe and conducive work environment
for them. We see our people as ambassadors of our values, and empower them to make
a difference.
 Streamlining Human Resources function
 Focusing on diversity and inclusion
 Talent management
 Towards a safer workplace
 Health, Safety and Wellbeing
 Employee recognition

3. Products that are making a difference
Vodafone constantly endeavour to utilise our technology and expertise to develop
products that can contribute to the businesses becoming more sustainable as well as to
the development of the society. Whether it is smart metering or asset tracking for the
enterprises or education, banking and rural entrepreneurship or digital inclusion of
individuals, we strive to make our products a means of empowerment.
 Enabling smart future
 M- education
 M- Health
4. Partnerships that are making a difference
Collaborating with our vendors and suppliers to design feasible, cost effective
solutions, to associating with the non-governmental associations, we always believe in
fostering sustainable partnerships. This stems from our belief that ‘what one can do
well, two can do better’.
 Partnering with the suppliers
 Partnering with the community
 World of Difference
 Partnering with the customers
5. Processes that are making a difference
Whether it is empowering our talent pool, collaborating to enhance our supply chain, or
protecting customers from breach of security, we firmly believe that institutionalising
effective processes and implementing them is essential to sustain any positive measure.
In this section, we talk about processes that ensure smooth running of our operations,
thereby making a difference to the value generated for our internal and external
stakeholders.
 Zero tolerance towards fraud
 Making information secure
 Risk management
 Legal and Regulatory Compliance
 Managing inventory

 Reducing e-Waste footprint
 EMF safety
 Shared services centre
 International Safety Rating System (ISRS)
 Network safety
 Building a future-fit organisation
2.8 Number of Employees in Different Levels:
Vodafone is one of the biggest employers in the telecom industry with 83,862 employees
worldwide. It has provided employment opportunity to the various categories of people in the
society on the basis of their talent. There are 1640 female and 8667 male employees resulting
in total number of 10,307 employees working at Vodafone in Pan-India level. Vodafone
encourages the female candidates to apply for the job and many actions have been taken
towards fulfilling this objective.
The employee designations can be divided in to three categories in which senior management
comprises of 10% of total employees middle level with 35% and remaining 65% in the
operational level. The average turnover rate of employees at Vodafone accounted to 15% of
total number of employees.
Vodafone India has been declared as one of the Top 10 companies with healthy work place.
Company’s HSW policy shows the high ethical practices followed by the company to avoid
the injuries at the work place.
2.9 Performance of the Organization:
 Vodafone India has reported a 10.6 per cent rise in revenue from Rs. 32,564 crore in
the previous fiscal to Rs. 35,886 crore for the financial year ended March 31, 2013.
 Operating profit increased by 24.5 per cent to Rs. 10,640 crore for the financial year
under review against an EBITDA of Rs. 8,549 crore last year.
 Service revenue increased from Rs. 32185 crore to Rs. 35610 crore of this year.
 Revenue Market Share at 21.3% in financial year 2013.

2.10 Organizational Chart of Vodafone India:
VODAFONE INDIA
Martin Pieters (CEO)
Chief
Commercial
Officer
Directors
Human
resource
s
Chief
Operating
Officer
Enterprise
Head
Technology
Head
External
Affairs
Head
Regulatory
Head
General
Council
Head
HR SERVICES
HR Business
Partners
Learning &
Development
Resourcing
O .D South
O.D North
O.D East
O.D West
Business Head

2.11 Management or Board of Directors
Vodafone GroupPlc
VittorioColao (CEO)
Michel
Combes
(Europe)
Nick Read
(Asia, Africa)
Warren
Finegold
(Strategy
&
Business)
Developm
ent
Morten
Lundal
(Group
Commercial)
Steve Pusey
(Group
Technology
)
Andy Halford
(Group
Finance)
Ronald S
(Group
HR)
Rosemary
Martin
(Group Legal)
Matthew Kirk
(Group
External
Affairs)

2.12 Best Practices and Special Achievements:
Vodafone India is well-known for its ethical behaviour, zero tolerance to fraud, employee and
social responsibility initiatives. The main practices and achievements are discussed below:
1. Health, Safety and Wellbeing (HSW) Policy: I t is the most important practices
followed in Vodafone. It is to ensure the Health and safety not only among the
employees but also in the society it operates. This policy is based on following safety
rules:
 Do not drink and drive
 Always wear helmet for two wheeler
 Always fasten seatbelts while driving
 Do not attend calls or use mobile phone while driving/riding.
 Always use safety equipment while working at heights.
 Do not handle electric equipment unless being a professional.
Apart from this rules Vodafone has conducted social awareness programmes in states
of Tamilnaadu, Haryana and Uttar Pradesh circles.
As a result of this programme the company become able to save 17 lives in accidents.
2. Vodafone Cares: It is the new practice adopted by the Vodafone in this month. This
is a Social Responsibility Programme conducted by the Vodafone employees for
creating the social awareness in the children regarding the safety and hygiene aspects.
Employees of Vodafone conduct the classes for 3rd to 7th standard students once in a
week in schools in this regard.
3. Angel Stores: Vodafone encourages the women employment and empowerment.
With this objective Vodafone have launched a unique kind of retail concept store, that
is completely managed and run by women employees, including security, pantry staff,
customer service resources and management level personnel. As of March 2013 there
are 16 Vodafone angel stores across 14 states of India.
4. Zero tolerance to fraud and anti-bribery policy: Fraud and Bribery are the two
important problems in every industry and country as whole. Vodafone consider giving

or taking of money or any form of gift from its stakeholders as a bribe. As a socially
responsible company Vodafone do not give any chance to these aspects in the
company. In this regard Fraud forum been formed in 2011 to watch the working of
employees and departments.
2.13 Awards
 One of the Best Companies to Work for in India - Study by The Economic Times &
Great Place to Work 2012
 Corporate Social Responsibility award - Golden Peacock Award 2012
 Value Services in rural innovation category for Low Balance Services – ET Telecom
Awards 2012
 Top Green IT Enterprise Award 2012 – CIO Leadership Summit supported by APC-
Schneider
 Bronze in the Direct Lions category for best low budget campaign for the iFold
initiative (Green initiative - to save paper) – Lions (2012)
 CEO of the Year – Marten Pieters – Telecom Operator Awards 2012 by tele.net
 Enterprise Mobile Service Provider of the Year - Frost & Sullivan India ICT award
(2012)
 Most Admired Telecom Operator – Telecom Operator Awards 2012 by tele.net
Vodafone App Store – ‘V Store’ recognised as the ‘Product of the Year 2012’ in the
‘Mobile Services’ category - Nielsen survey
 Best 3G Service Operator - Telecom Operator Awards 2012 by tele.net
 7th Most Exciting Youth brand - Survey by AC Neilson and Brand Equity (Feb2012)
 Ranked No 1 in overall customer satisfaction - Hindustan Times’ customer
satisfaction National Survey 2011
 Top 10 ‘Most Trusted Brands’ in India 2011 - ET Brand Equity annual survey 2011
 Best Marketing Company for 2011 - Survey done by ET – Brand Equity
 ‘Excellence in marketing’ and ‘Most innovative Retail’ - Global ET Telecom awards
2011
 CIO100 award for Enterprise IT - CIO Magazine.

2.14 Future Plans: “Steps taken today, should inspire tomorrow”
In Vodafone sustainability is a journey not an objective. Vodafone have a future oriented
framework to achieve its sustainable development. Some of the important future plans of
Vodafone India are as below:
 Vodafone has the future plan to launch 4G services and improving the services.
 Vodafone suggest future ANDROID mobile phones and initiatives are taken in this
way.
 Vodafone has a future aim to become Number 1 telecom operator in India by 2015.
 Vodafone has a plan to launch "Vodafone Application Stores”.

3.1 HR And Administration Department:
HR Departmental Structure
About the Department:
Organizations are made up of people and functions through people. Human resources are the
wealth of the organization. No organization can run without human being. This human being
helps the organization to achieve goals and targets of the organization. It is the total
knowledge, ability, talents and aptitude of an organization work force.
Human resource management (HRM) is the understanding and application of the policy and
procedures that directly affect the people working within the project team and working group.
These policies include recruitment, retention, reward, personal development, training and
career development.
According to Edwin B. Flippo HRM is “the planning, organizing, directing and controlling of
the procurement, development, compensation, integration, maintenance and production of
human resources to the end that individual, organizational and societal objectives are
accomplished”
HR Head
HR Operations Contract Labour
Management
Learning &
Development
Administration
Recruitment
Performance
Dialogue & Rewards
H.S.W & Security
Facility Management

Human Resource Management is the process of binding people and organization together so
that the objectives are achieved. Organizations are not mere bricks, motor, machines or
inventories. They are people. It is the people who staff and manage organization.
The importance of human resources within the organization is becoming increasingly
understood in today’s rapidly changing and uncertain business environment. In order to assist
employees in helping an organization to reach its strategic business goals, effective human
resource managers often gather job related information in a job analysis and job description,
which is vital in creating or designing jobs which provide employees with a high level of job
satisfaction.
Functions of HR Department:
 Attract bright and relevant talent
 Develop continuously by providing opportunities
 Excite by creating a culture that is invigorating and creatively innovating
 Retain the best talent by creating an environment of trust and bonding
 Recruit right resources at the right cost and time
 Develop overall organization human resources capabilities through relevant
interventions
 Facilitate HR and Administration process and systems so as to enhance staff retention
 Facilitate and sustain employee engagement through purposeful organization
communication process.
Function of Administration Department:
 Maintaining Cleanliness, Comfort, Aesthetics, Hygiene, Safety environment at work
place.
 Regular checking of Building/ Facilities, Housekeeping and maintaining records.
 Ensuring Staff welfare, Travel/ Transportation, Power/ Infrastructure facilities
 Hotel bookings/ Conferences, Printing, Courier and Concierge
Recruitment
This is one of the most fundamental roles of HR department. This function ensures that the
company under consideration selects the most skilful and competent person from a sea of

applicants at that time. This function involves evaluation of ability and competency of
potential employees in relation to what the company needs. This role falls under the staffing
role of management. If this function is performed well then the organization will increase the
value consequently being on the right pathway to achieve its organizational and departmental
goals.
Recruitment is done through:
 Job portals
 Consultants
 Employee referrals
 Campus recruitments
Selection Process:
 Sourcing CV
 Shortlisting
 Interview schedule
 Interviews
 Offer
 Medical examination
 Joining formalities
 Appointment
Performance Dialogue:
 Mid-year and Annual performance dialogue
 Goal setting and approval
 Self-assessment and Manager assessment
 Communication of rating
 Employee feedback and Survey
Initiatives by HR Department:
1. Talent Management
Vodafone recognise that it is necessary to create a sustainable environment for their
people so that they continue to be relevant to the business, as they grow. As a part of

Vodafone talent management initiatives, they primarily work on building sustainable
environment to manage succession plans for critical roles and groom the people for these
roles. They provide customised training programmes and plan career paths for their
employees, based on their potential, talent and performance. An employee with high
potential is groomed via development journeys that enable them to fast-track his/her
career within the function. Some of the flagship talent management programmes are:
 Senior Leadership Acceleration Series
 Building Leaders of Tomorrow
 Young Leaders Program
In acquiring, nurturing, integrating and retaining talent, Vodafone focus is not only
around 'what' of performance but also around 'how' of performance, bringing a more
mature performance management system with a visible linkage to the Vodafone Way of
Speed, Simplicity and Trust. It is not just appraising their employees, but also about
letting them set SMART goals, coaching them for superior performances and ensuring
continuous development, through regular feedback and review - empowering them at
every step.
2. Towards a Safer work place
Safety of their employees is at the core for them. Vodafone believe that senior
management commitment is essential to make their work environment injury free and
safe for every individual associated with them. Senior Management Tours are conducted
on a regular basis to encourage safe working conditions and practices. Moreover, they
are in the process of establishing various standards and work practices for sustained safe
working. Also Vodafone believe in an open culture in incident reporting across all levels.
3. Employee Recognition
Vodafone value their employees and value their contributions. Vodafone workforce is
their strength and they want their employees to feel valued and realise that their work
does make a difference. At Vodafone, one of the best companies to work for in India as
per a study by The Economic Times, they acknowledge the priceless contributions made
by their employees under the following categories:
 Target or performance driven recognition programme

 Culture driven recognition programme
Some of the culture driven recognition programmes are:
 Vodafone Global Heroes
The Vodafone Way is about a consistent way of working, with Speed, Simplicity and
Trust. Vodafone Global Heroes is a quarterly initiative that identifies and recognises
employees (in band G and below) who contribute to and embody "The Vodafone Way".
 Vodafone Stars
A Star is someone who operates with Speed, Simplicity and Trust. This programme
recognises the employees' contribution at three different levels:
 Level 1: Stars
An on-going exercise, it celebrates the demonstration of Speed, Simplicity and
Trust at work with a special Stars e-card. Any employee can recognise a colleague or
team member across functions and circles through an instant Stars e-card, any number of
times.
 Level 2: Superstars
A monthly exercise which celebrates the exemplary demonstration of Speed, Simplicity
and Trust at work. The chosen employee is awarded points from the functional kitty that
can be redeemed against gifts. Any functional or cross-functional colleague or Line
Manager across circles can nominate an employee with a proper justification, any
number of times during the month.
 Level 3: Megastars
A quarterly exercise which celebrates the consistent and outstanding demonstration of
Speed, Simplicity and Trust at work. The Megastar finalist is shortlisted by the
Recognition Board comprising Business Head, HR Head and Functional Heads, every
quarter in every circle. The winner is awarded a lapel pin, a certificate and points that can
be redeemed against a pre-decided gift voucher.
Relationship with Other Departments:
 HR department can makes the performance evaluation of employees, and refer the
results to the other departments. For example if the HR discovers that employees in a
particular department have a low morale, this is referred to the underlying department.
 HR department also help accounting department to budget labour costs.

 HR department is often responsible to train and integrate workers within the firm.
 HR department helps personnel of other departments in human resource planning
process.
 It is also responsible to give suggestions to legal department in solving employee
disputes.
3.2 Marketing and Sales Department:
Marketing and Sales Department Structure
Marketing & Sales Head
Marketing Sales Retail Zonal Manager
Data
Roaming
Campaigning
Management
Value Added
Services
Post-paid
& Pre-paid
Distribution
Sales Planning
Management
Modern Trade
Management
Information
System
Projects
Services
Sales
Management
Information
System

About the Department
Marketing department act as the backbone for business. It helps the organisation to build a
strong customer base, good customer relationship and create value for their customers and for
themselves.
Marketing and sales is one of the most important departments in the Vodafone India.
Marketing department is that business department which focuses on the practical application
of different marketing techniques and the management of a firm’s marketing resources and
activities. It helps in the generation of different marketing strategies, techniques, evaluating
and executing them.
Marketing department is marketing and sales in the Karnataka circle which is further divided
in to 8 zones. The 8 Zones are Bangalore east, Bangalore west, Mysore, Hubli, Gulbarga,
Davangre, Turnkur, Mangalore.
The main responsibilities of marketing department are:
 To define and manage the customer needs and expectations.
 Deliver innovative products and services.
 Promoting the products through effective advertisement campaigning.
 To implement business models for new products and services.
 To develop and implement the tariff plans.
 To support product penetration of accounts through target acquisitions.

Sales and Distribution Workflow Model:
Business Head
Sales & Marketing
Head
Sales Head
Distribution Lead
Zones Zones ZonesZonesZones Zones Zones Zones
Distribution Lead
Area Sales Manager Area Sales Manager Area Sales Manager
Channel Manager Channel Manager Channel Manager Channel Manager
Distributer Distributer Distributer
Merchandise Runner BoyRetailer
Customer

The main responsibilities of sales and distribution department are:
 Promoting the product and services by visiting the market and communicating with
retailers.
 Fulfilling the demand for the product and avoiding the shortages.
 Constant visiting to market to see the advertisement campaigning.
 Preparing the monthly target sheets.
 Preparing the CAF records.
 Collecting the records from distributers and hearing the problems of customers.
Marketing is a core function of any organization. In business to consumer companies the
marketing department is where consumer care is centralized. By consumer care all
information, knowledge and strategies used to ensure that the company remains in business,
by ensuring that its products remain relevant to a consumer’s needs and preferences. Other
departments/activities in a business therefore have two broad relationship objectives with the
marketing department
1. To further the aims of the marketing department (by ensuring continued relevance to
consumers). Thus for instance the finance department will ensure that business
profitability is of such a degree that the business is able to continually invest in
delighting consumers. The HR department would ensure that the business has the
requisite talent and organizational culture in place.
2. In modern business literature, it is posited that all departments/activities are
essentially those of marketing no matter the title. This is because all of them have as
their main objective, the continuation of a business as a going concern. And a
business cannot be a going concern unless its products are relevant to needs and
preferences of consumers

3.3 Finance and Accounts Department:
Finance and Accounts Department Structure:
Finance is the backbone of every business activity. Finance department places a vital role in
success of the organization. High transparency and ability to take the rapid decisions will
result in the sustainable growth of the organization. The finance has a professional which
regularly review the company’s practices and converts the personal skills in to efforts to
continually improve the financial statements of the company. Through effective management
practices and creative ideas, financial department team strives to build a working
environment that enables to use financial resources and capabilities to serve customer better.
The finance department staffs shares the company’s dedication to customer satisfaction.
Major functions of finance department include:
 Preparation of financial statements
Finance & Accounts
Head
Revenue
Assessment
Financial Planning
& Analysis
Zonal Accounting
Financial
Accounting
Taxation
Credit &
Collection
Supply Chain
Management

 Internal audit
 Supervision of collection, billing, banking and statutory compliances.
 Finalization of accounts.
 Cash flow projections
 Budgeting
 Tax returns filing.
 Debt management.
 Agreements and dispute resolution.
 Supervision of costing
Credit and Collection
Objectives
 Act as a catalyst for growth in revenue and subscriber base.
 Balance risk v/s revenue.
 Strive to reduce bad debts
 Equip credit and collection teams to be in line with business growth.
 Credit Team
 The respiratory system of the Vodafone body. They do this by;
 Reviewing subscriber's credit worthiness before letting them into our system
 Monitoring subscribers dues
 Retaining good subscribers and optimizing their usage
Processes in Credit
 Duplicate tracking
 Fraud control
 Credit monitoring
 Return bill management
2. Collections Team
 The blood circulatory system of the Vodafone body. They do this by;
 Ensuring customers, get their bills
 Giving reminders and collecting payments

 Posting payments on time
 Informing customers who have overdue payments
Processes in Collection
 Billing operations
 Bill payment processing
 Tele calling agency
 Field collections
Supply Chain Management:
Vodafone India has always taken adequate measures to ensure that the supply chain is
efficient, and has developed systems to optimize every step of supply chain including
procurement, inventory management and effective waste disposal. Moreover they have also
established process that enables them to observe safety rules and conduct business
responsibly.
There is a close relationship between the finance function on the one hand and production,
procurement, marketing, personnel function on the other. Almost all business activities in an
organization directly or indirectly involve the acquisition and use of funds. The determination
of production, procurement and marketing strategies are the prerogative of the chief of
production, purchase and marketing divisions respectively, but for implementing their
decisions funds are required.
1. Helps Personnel department in fixing and revising the pay scale, incentive schemes,
etc.
2. Helps Marketing department in advertisement budgeting, brand promotion and target
fixing.
3. Helps Technical department in the aspects related to procurement of goods, selecting
best project, replacing tools etc.

3.4 Technology Department:
Technology Department Structure:
The 1.T department has been contracted to IBM. The main functions include:
 Providing IT support to all departments in order to meet business requirement
 Understand business requirement, changing time to time, and provide automated
solutions to meet and compete in the market
 Understand technology trends and apply to enhance efficiency and advantage to
business.
 Ensure 1.T applications and systems availability and scalability to meet growth
and market challenges.
 Participate in management to understand business goals and challenges and
explore and deploy technology.
 Define service levels (SLA) for centralized applications to meet business
objectives, monitor, review and enhance time to time.
 Define, monitor, review and enhance scope of work (SOW) SLA with service
partners/providers.
 Ensure alignment to national processes, with least compromise to circle business
needs.
 Data security and IT process compliance to IT/Company policies and legal &
regulatory requirement.
Technology Head
Information
Technology
Operations&
Management
Career
Business
Transmission SWITCH Projects

 Understand end customer experience and influence central IT team to provide IT
solutions to enhance end customer experience.
 Prepare IT capacity, service and consumable plan for the year based on inputs
from functional heads.
 Influence service partner/ Central IT team verticals with circle business trends
requirement to provide solutions.
 Plan and deploy equipment capacities to meet requirement
 Review existing and new IT infrastructure needs with service partner and enhance
systems availability and capacity
Network Operations
The network operation department performs the functions of designing and getting the IP
MPLS network implemented as per the specifications provided by corporate. Their
functions are:
 Maintaining the MPLS network once it is commissioned for the carrying the
circle enterprise business (data & voice) traffic
 Timely site readiness, physical installation of POP, acceptance test &
commissioning of Vodafone MPLS/Voice network.
 Perform the operation & maintenance of MPLS POP.
 Execution of work order for network & customer circuit provisioning in
coordination with all stakeholders.
 Performance, capacity & network change management of MPLS network
 Maintenance of network & customer SLA as per the target
 Prepare and organize the strategy for Zonal - 0 & M setup
 Planning resources requirement for various sub functions like Manpower
(employee + outsource staff), cell sites logistics/ spare materials, test equipment
24*7 Handling Network failures
To ensure fault free operation of network cell sites and network subsystem through
preventive maintenance. Managing 24 x 7 Zonal and centralized level maintenance shift
operation for speedy network fault resolution. Their functions are:
 To ensure high network reliability/availability.

 Constant interactions with system vendors and sub-contractors for day to day
operational issues.
 Managing faulty spares repair and return process for various network sub systems
through various vendors.
 To handle and manage the catastrophic network failures due to various calamities
condition.
 To ensure fast recovery of network during unexpected/ uncertain scenario.
 Optimum utilization/ mutilation of Zonal O&M resources for efficiently handling
the crisis.
 Planning day to day 0 & M cost saving1 reducing technique.
 Handling O&M related contractual/ outsourcing in lowest possible cost to produce
productive results in terms of cost /time and quality.
 Monitoring & tracking O&M process cost.
 Optimal and efficient utilization of available centralized /Zonal O&M staff or
contractual staff.
 Cell sites logistic / Spares materials and test equipment usages and control
 To create better understanding and interpersonal relationship among the remotely
located Zonal team members and sub functional centralized team members by way
of regular interaction / discussion with each individual team member.
 To provide technical direction to subordinate for fast network problem resolution
and root cause problem analysis.
The importance of Technical department is increasing in recent years in every industry. In
Telecom industry Technical department places a very important role in relation to other
departments. The relations are discussed below:
1. Helps the Marketing department in promoting the products by constantly maintaining
the towers and dealing with network issues.
2. Helps the Customer service department by giving the 24*7 support in call allocation
and control.
3. Supports business service department by giving technical assistance.
4. Supports HR department in maintaining documents and gives technical support.

3.5 Customer Service Department:
Customer Service Department Structure:
The Customer service department fulfils an important role for an organization.
Customer service is often the main point of contact for a customer, so representatives can
paint the company in a positive light by providing friendly and prompt service. In some
cases, the customer service department can even generate additional sales for the company.
Customer service requires a great deal of patience since customers may be rude or demanding
at times. The main focus of a customer service department should be to attempt to satisfy the
customer's needs.
The customer service department also includes the Retention and Relation. They are
responsible for:
 Reducing voluntary subscriber churn.
 To ensure recruitment, training , performance of all retention executives
 To ensure communication of empowerment and approval matrixes at all touch points
for customer retention
 Process management of store retentions
 To increase first level retention at stores
 Ensuring all retention executives are trained
 To record all correct information and closure of retained1 not retained customers
 Ensuring all support from the stores team to the retention executives
Customer Service Head
Retention &
Relation
Quality Assurance
Call Centre
outbound
Service Partner
Management
Call Centre Inbound
Customer
Support Group

 R & R are responsible for e-mail retention process - allocation, closure,
performance, as per set targets
 Ensuring all cancellation requests are closed within the agreed SLA's by the
retention agents.
 Driving customer win back post cancellation through tele-calling and field and
ensures the targets are met
 Driving the base management of the selected high ARPU base through the team of
relationship managers and ensuring the targets on customer visits, retention,
complaints, collection, churn etc are met
 Drive the team's performance in productivity, training retention skills, performance,
quality, validation and settlement of invoice
Call Centre
A call centre job is customer service work that is done on a remote basis using telephone
and/or computer equipment. The two types of call centre jobs are inbound, in which calls are
received, and outbound, in which calls are made. A call centre job may be home-based, but
many call centres have an on-site location with hundreds of employees.
Call centre out bound
An outbound call centre job requires workers to place calls using a list of contacts and a
written sales script. This work is known as telemarketing. Outbound call centre workers may
be doing direct sales work such as asking for a donation or they may give the recipients of
their calls information and try to book appointments for outside sales representatives to
follow up on. Outbound call centre workers may be asked to up-sell, or promote additional
products and services.
Call centre in bound
An inbound call centre job requires workers to answer incoming calls from customers. This
work can be more unpredictable than outbound call centre work as the worker does not know
who will be calling with what problem, complaint or request for information. The inbound
call centre worker must have a thorough knowledge of the products, services and policies of
the company he or she is representing. Some call centre jobs require extensive technical

knowledge of the product or service and technical service representatives communicate with
customers to troubleshoot problems with the product or service.
Customer service is the provision of service to customers before, during and after a purchase.
According to Turban "Customer service is a series of activities designed to enhance the level
of customer satisfaction – that is, the feeling that a product or service has met the customer
expectation."
The relationships of customer service department with other departments are discussed
below:
1. It places an important role in Marketing and Sales department by the way of customer
retention.
2. Good customer relationship helps in fulfilling financial targets.
3. It helps VBS department through continuous support in business activities.
4. It helps HR department in relationship maintenance in and outside the company.
3.6 Vodafone Business Services Department:
Vodafone Business Services Department Structure:
VBS Head
Customer
Operations
VBS SalesVBS
Marketing
VBS
Solutions
Small & Medium
Enterprises

The Vodafone Business Services department's main function is to manage and implement the
service strategy among corporate and Vodafone global enterprises customers in Karnataka
and attain high level of customer satisfaction through the cross functional teams, service
managers & channel partners whilst complying with agreed budget, timescales and agreed
policy guideline as also with all regulatory norms. Innovate and drive appropriate changes in
service delivery depending on market realities and demands. They must also align with cross
functional teams across circle and central. Back office matrix in terms of complaint
management resolutions and achieve customer satisfaction. Manage complaints from
customers within an agreed SLA.
They are responsible for:
 Service management in the accounts through team of service manager and channel
partner for servicing.
 Drive customer retention and comply to customers with customer credit policies.
 Engage in formal service reviews with corporates and VGE accounts and customer
forums.
 Provides feedbacks on evolving service needs.
 Set goals and targets for the service team in consultation with the head
 Monitor the performance of the teams periodically.
 Responsible for service communication for the corporates and VGE customers
handled in the allocated territory.
Business clients are one of the important sources of Vodafone’s revenue. Since the revenue
is huge compared to individual customers it is important to give a special attention to them.
In the following way it relates to other departments:
1. Brings in huge amount of revenue and helps finance department in filling the
budgetary deficits.
2. Helps HR department in creating new contacts and expand its relationship outside the
business.
3.7 Legal Department:

Legal Department Structure:
The Legal department is responsible for maintaining and protecting the interest of the
company to the fullest extent. Take disciplined actions & focus on business needs and
requirements. They must adopt best practices and easy ways and means while resolving
issues. They must access and manage all types of results and handle crisis effectively and
efficiently.
The functions performed by the legal department are;
 Provide high quality legal services
 To ensure situations are handled and controlled to meet end users requirements.
 Monitoring and focusing on driving the process as to collection against defaulters of
cheque bounces.
 Handling uncertain, complex situations and speedily resolve the issues.
 Defending the coercive actions taken by the government authorities for collecting
revenue is set aside.
 Defending the litigations filed against the company and ensuring the customer is not
paid any compensation as claimed for.
 Manage the risks and deliver results timely always, do not look for short term benefits
but long term solutions always.
 Manage to move with the entire industry always.
 All end users requirements have to be met timely so that business remains
unhampered.
Legal Head
Assistant Manager

Legal department is one of the important departments that ensure smooth working of the
organization. It maintains a constant relation with every department and solves the problems
in its initial stages. It relates to other department as follows:
1. Helps the various departments in solving their internal problems.
2. It helps HR department by giving guidelines regarding the selection process and
fixing the emoluments within the legal ground.
3. Helps Finance department in solving tax related issues.
4. Controls the aggressive and negative strategies of competitors and helps in promotion
strategies.
5. Protects technical copy rights.

SWOT Analysis:
SWOT analysis is a strategic planning method used to evaluate the Strengths, Weakness,
Opportunities and Threats involved in a project or a business venture. It involves specifying
the objectives of the business venture or project and identifying the internal and external
factors that are favourable and unfavourable to achieve that objective.
4.1 Strengths:
 Strong international presence and Brand recognition
 Well defined cost reduction initiatives, managed Purchasing, outsourcing
 The brand name it has in the Indian market
 The kind of subscriber base it has in the Indian market
 It has the 2nd highest market share in India(source : Wikipedia)
 It has a 2nd highest subscriber base in India 1st being Airtel
 Its strong advertising strategies and impact on people
 Its India’s 3rd biggest mobile carrier(source: Business standard)
 Excellent Network Coverage
4.2 Weakness:
 Uncertainty in revenue growth in the HSDPA network based on historically slow
consumer market take-up of 3G data services.
 Low Research and Development.
 Ambiguity in products, services.
 High customers churn (25%)
 Rural India unable to relate to the brand.
4.3 Opportunities:
 Emerging markets and expansion abroad
 Innovation and Tower sharing business with Indus Towers
 Product and services expansion
 Growing data business and 3G auctioning
 VAS as a means to increase ARPU (big boss, Zoo Z00)
 Growing Enterprise solution market (10.2% in 2009 anticipated)
 Large capital can be raised by listing Vodafone on Indian Stock Exchange(IPO)

4.4 Threats:
 Highly competitive market
 Still lags behind major competitors in India
 Extremely high penetration rates in key markets.
 European Union regulation on cross-border cell phone usage by customer.
SWOT Matrix:
STRENGTHS
 Brand recognition
 Strong international presence
 2nd highest market share in India
 2nd highest subscriber base in India
 Strong advertising strategies
 Excellent Network Coverage
 Excellent marketing communication
WEAKNESS
 Uncertainty in revenue growth
 Low Research and Development.
 Ambiguity in products, services.
 High customers churn
 Rural India unable to relate to the
brand.
 No network in rural areas.
 No 3G license in many circles.
OPPORTUNITIES
 Emerging markets and expansion
 Tower sharing business
 Product and services expansion
 Growing Enterprise solution market
 Capital through IPO in India.
THREATS
 Highly competitive market
 Still lags behind major competitors in
India
 Extremely high penetration rates in
key markets.

McKinsey 7s Model:
The 7-s framework of McKinsey is a Value Based Management (VBM) model that describes
how one can holistic and effectively organise a company. Together these determine the way
in which a corporation operates. Vodafone has become a leading company as it has a very
strong product and service marketing focus it has certainly adopted the basic 4p’s of
marketing i.e. price, product, place, and promotion mix are the strong weapons with the help
of which Vodafone has overcome all the consequences it has faced during its inception.
McKinsey 7s Structure:

The Hard S’s:
4.1 Strategy
It is the plans for the allocation of a firm’s scarce resource, over time, to reach identified
goals. As Vodafone has already adopted the brand name it has reached its saturation stage
now in order to sustain for a longer term they need to renovate or launch new products under
the same brand name which they are doing.
4.2 Structure
It is the way the organisation’s units relate to each other. Centralised, function divisions (top-
down), decentralised (the trend in larger organisation), matrix, network, holding, etc. The
essentials departments help in acquiring efficiency and effectiveness. This assists the
organization to achieve the desirable goals. The company have acquired expertise knowledge
to develop faith and trust of the consumers.
The present matrix structure of the organization does not enable quick decision making due to
large number of job hierarchy. The company need to refine it to the flat empowered
organization structure in order to fulfil the flexibility and quick decision making to meet
changing market needs.
4.3 System:
It is the procedures, processes and routine that characterise how important work is to be done,
such as financial systems; hiring, promoting and performance appraisal systems; information
system. The Vodafone has followed formal procedure that governs the day to day activity.
The Marketing communication and MIS departments of Vodafone analyse consumer
response by an easy going system. The marketing and sales personnel of the organization
conduct various market surveys with the help of the retail system, call centre system, etc.
such system avails the organization to have crystal clear information in the progress.
Presently, Vodafone is more control focused and employees at the bottom level are strictly
supervised this supress the trust and helping nature. The new system should be adopted to
bring in the empowerment and trust instead of control.

The Soft S’s:
4.4 Shared Value:
The interconnecting centre of McKinsey’s model is: Shared Values. What does the
organisation stands for and what it believes in i.e. Central beliefs and attitudes. As the hand
works in the human body the shared values are the core values of the organization as it
connects soft skills of the Vodafone. They are communicated in the organization which is
very clear from the behaviour and adherence of employees to the organizational policies.
4.5 Staff:
It is the numbers and types of personnel within the organisation. Vodafone has also appointed
people from various groups of the society based on their skills and abilities so that they can
bring best leverage for the company as well as themselves. In order to motivate their staff
they provide various financial as well as non-financial incentives. This will make their
employees to work in more enthusiasm and interest.
4.6 Style:
It is the cultural style of the organisation and how key managers behave in achieving the
organisation’s goals.ie; Management Styles. The top level management of Vodafone has
maintained a discipline atmosphere. They make sure that they achieve result within a defined
time. The style of the management control is partially non decisive and risk avoiding, this
hindrances decision making, risk taking and entrepreneurial ability of the employees. They
need to supervise their subordinated in such way that they work in deliberate manner to
overcome this problem.
4.7 Skill:
It is the distinctive capabilities of personnel or of the organisation as a whole. The capability
of the organization has bound that the consumers with their standardized quality product. The
competency of the organization is to provide its product at an affordable price and in addition
to it; its products are convention able, available in urban as well as remote areas.
At Vodafone the employees are highly skilled and trained but they suffer from the lack of
executing skills. The programmes should be launched to train the employees in order to bring
balance between the knowledge and executing skills.

5.1 Statement of the Problem and Objectives
Problem Identification:
The problem identification is made in the field of Marketing.
Statement of the Problem:
Analysis on awareness of internet and 3G mobile services among the rural flock in the areas
of Tumkur, Chikkamagalur, Chikkaballapur and Hassan and feasibility of launching 3G
services in rural areas.
Objectives of Study:
 Analyse the rural lifestyle and standard of living in rural areas.
 Understand the educational qualification, occupation, income of people and its effect
on the telecom services.
 Understand the rural awareness of internet and 3G in rural areas.
 To check the extent of feasibility in launching the 3G services in rural areas.
5.2 Methodology and Limitations:
 Interview method is followed to collect the data.
 Interview was conducted with 10 questions.
 Respondents were rural users of telephony service.
 Sample size was 100 respondents.
 Survey was conducted in rural Tumkur, Chikkaballapur, Chikkamagalur and Kolar.
Limitations of the Study:
1. While collecting the data, all the relevant information was not available from people.
2. Some of the respondents were reluctant to share the information during survey.
3. All the results and conclusions have been drawn on the basis of information provided
by the respondents, so it may lack authenticity.
4. As only four districts were surveyed, it does not represent the overall view of the
Karnataka market.

5.3 Analysis and Interpretation of the Problem:
5.3.1 Table showing the family income levels of the respondents
Income Level Respondents
Below 50000 10
50000 - 100000 43
100000 - 500000 44
above 500000 3
Total respondents 100
5.3.1 Chart showing the family income levels of the respondents
Interpretation: From the above chart and table it can be observed that most of the
respondents have family income between 50000 to 500000
10
43 44
3
0
5
10
15
20
25
30
35
40
45
50
Below 50000 50000 - 100000 100000 - 500000 above 500000
Respondents

5.3.2 Table showing the educational qualification of the respondents:
Educational
Qualification
Respondents
Up to 5th 32
5th to 10th 30
10th to College 23
Degree 15
Total respondents 100
5.3.2 Chart showing the educational qualification of the respondents:
respondents have educational qualification between 1st to 10th standard.
32
30
23
15
0
5
10
15
20
25
30
35
Up to 5th 5th to 10th 10th to College Degree
Respondents

5.3.3 Table showing the type of mobile phone used by the respondents:
Model of Mobile phone Respondents
Basic phones 72
Smart phones 28
5.3.3 Chart showing the type of mobile phone used by the respondents:
respondents use the Basic cell phone models.
Basic
Smart phones
72%
28%

5.3.4 Table showing Sim card among respondents:
5.3.4 Chart showing Sim card among respondents:
respondents use Airtel and Vodafone Sim cards.
38
24
19
12
7
0
5
10
15
20
25
30
35
40
Airtel Vodafone BSNL Idea Others
Respondent
Mobile operator Respondent
Airtel 38
Vodafone 24
BSNL 19
Idea 12
Others 7
Total Respondents 100

5.3.5 Table showing users of internet among respondents:
5.3.5 Chart showing users of internet among respondents:
Interpretation: From the above chart and table it can be observed that more than 50% of the
respondents are non-users of internet.
40%
60%
0
10
20
30
40
50
60
70
users non users
User percentage
Particulars User percentage
Users of internet 40%
Non-users of internet 60%

5.3.6 Table showing mode of access of internet among respondents:
5.3.6 Chart showing mode of access of internet among respondents:
respondents get internet access through Mobile phones.
Mobile phones
Computer at home
Cybrer café
70%
25%
5%
Mode of access Number of respondents
Mobile phones 28
Computer at home 2
Cyber café 10
Total 40

5.3.7 Table showing the purpose of internet use among respondents:
5.3.7 Table showing the purpose of internet use among respondents:
respondents use internet for purpose like surfing, social media etc.
7
3
10
20
0
5
10
15
20
25
Education Agriculture Movies others
number of respondents
Purpose of internet number of respondents
Education 7
Agriculture 3
Movies 10
others 20
Total 40

5.3.8 Table showing the awareness of benefits 3Gamong the respondents:
5.3.8 Chart showing the awareness of benefits 3Gamong the respondents:
respondents are unaware benefits from Mobile internet with 3G.
Yes No
63%
37%
Particulars Number of Respondents
Yes 37
No 63
Total 100

5.3.9 Table showing the reason behind selecting the current tariff plan:
Reason Number of respondents
Cost effectiveness 63
Suggested by others 12
No other good option 19
Other 6
Total 100
5.3.9 Chart showing the reason behind selecting the current tariff plan:
Interpretation: From the above chart and table it is clear that the selection of Sim cards are
cost dependent.
63
12
19
6
0
10
20
30
40
50
60
70
Cost effectiveness Suggested by
others
No other good
option
Other
Number of respondents

5.3.10 Table showing the amount of currency used by the respondents per month:
5.3.10 Chart showing the amount of currency used by the respondents per month:
Interpretation: From the above chart and table it is clear that most of the respondents use
the currency denomination between Rs.30 to Rs.500
Lessthan 30
30 to 100
100 to 500
More than 500
2%
23%
65%
10%
Amount Number of respondents
Less than 30 2
30 to 100 23
100 to 500 65
More than 500 10
Total 100

6.1 Summary of Analysis of Problem:
The problem analysis has been made in the field of rural marketing. The problem was about
“awareness of internet and 3G in rural people”. The problem been analysed by conducting an
interview in the villages of Tumkur, Chikkaballapur, Chikkamagalur and Hassan districts. A
sample of 100 respondents belonging to different age group, sex, income and educational
qualification have been selected randomly from the area in order to get more accurate results.
The study was conducted for a period of 10 days in which distributers, sales heads, runner
boys and retailers are been interviewed along with the rural people in order to get a clear idea
of the rural market. Behaviour of rural people and their lifestyle have been analysed by clear
examination of rural areas.
Along with the Principal objective of study buying behaviour, price sensitivity and changing
behaviour of people in recent times also studied in brief. This study helped to understand the
effectiveness of ‘word of mouth’ and means its effect on the products of various orders.
6.2 Summary of Findings:
The concept of rural market is not same as it was in 1990’s. Many small large and schemes
by government have brought the revolutionary changes in the field of agriculture and helped
to overcome the rural people from poverty. During the study it was observed that
respondents below the age group of 35 year are well educated and awareness about the
present market and communication facility was nearly equal to their counterpart in urban
areas.
Today most of the rural population have income more than 50000 per annum (table-5.3.1)
and they even get good educational facilities. Most of the people below the age group of 35
years have high school education. According to Table- 5.3.3, it is clear that nearly 30% of
the people use mobile with internet facility and it is increasing constantly due to their interest
in new technologies.
In Karnataka circle Airtel is the market leader in both urban and rural areas (Table5.3.4). The
main reason for this is poor network coverage for Vodafone in rural areas. Though the
Vodafone has excellent products and services, low network coverage made many customers
ported their Sim card to other service providers.

According to Table- 5.3.5, 40% of the rural people use internet for various reasons, out of
which 28 people get access through their mobile phones. This shows the opportunity for
mobile phone operators in to increase their subscriber base through better internet packages.
Among the internet users most of the people use it to get access to social networks, gaming,
mail, movies and to browse some useful information. Faster internet facilities will make them
to switch in to the new option available at competitive price.
In rural areas the awareness of 3G is very less compared to urban people (Table- 5.3.8). Even
the internet users do not have complete knowledge on 3G and its benefits. Creating
awareness in the rural people about the 3G and its benefits as a part of CSR programme will
help the company to get new customer and also increase the reputation in rural areas.
Rural customers are highly cost sensitive. Table- 5.3.9 shows that more than 60% of the
respondents selected the operator due to low cost tariff plans. It is also clear from Table-
5.3.10 that more than 70% of the respondents use currency denomination above Rs. 100.
Study of the various departments at Vodafone depicts the good relationship within the
department and with other departments. This relation in the organisation has made it a major
player in the Indian market. A good customer in post-sales helped in achieving the good
customer retention rate.
6.3 Conclusion
The study conducted in the rural areas reveals that most of the population belongs to
middleclass income families with low literacy. But mere making them educated and creating
awareness is not enough to get in to rural markets. The rural people are most cost sensitive
and they compare the usefulness with cost of service. So the companies also need to
understand the price behaviour of customers which changes along with regions.
The awareness of the people about internet in the rural areas is growing rapidly today. The
rapid expanding market and high growth rate provides a good platform to the company to
penetrate in to the market. Vodafone need to frame its internet and 3G plans according to the
rural requirement to tap the rural market keeping all the factors influencing consumer
behaviour in mind.

6.4 Suggestions and Recommendations
The urban telecom market is almost saturated with more than 125% of teledensity. But the
teledensity in rural area is less than 60%, which provides a very good platform to the telecom
operators to grow further. But the rural market is not similar to urban markets. The customers
in rural market differ in behaviour, knowledge, consumption pattern and life style. Apart
from this they also suffer from problems like lack of infrastructural facilities, low literacy,
power supply problems etc. The telecom companies need to adopt following suggestions to
overcome these problems to operate effectively and to launch new plans in the market.
1. Adopt the tower sharing scheme to reduce the high operating cost.
2. Educate the distributers, outlet owners and customers regarding the 3G and its
advantages.
3. Conduct the classes for members of rural self-help groups to create awareness.
4. Creating the need in minds of people to convert the awareness in to interest.
5. Launch “made for rural” internet and 3G offers to convert the interest in to need
which consequently make them customers.
6. Offer affordable internet services to penetrate in to the market.
7. Conduct surveys in rural areas to understand the changing behaviour and need of rural
flock.
6.5 Learnings
Learning is an ever going process. Primarily this project helped to learn about the
overall structure, work flow and relationship between the departments in a practical way. It
was a first and very good experience to learn about the work by observation.
Employees of the entire visited department are friendly and shared useful information with
open mind. Many of the employees even shared incidents happened in the company regarding
HSW policy, ethics and values. These inputs helped to get a clear picture of corporate world.
Since many of the employees had experience in other industries, this study also imparted
knowledge of those industries. Through continuous relation with all departments for a month
also helped to understand the recent policies and changes in the organisation.

SWOT and 7 S models helped to get a good amount of knowledge about the industry and
level of competition. Through these, the comparative analysis been made among the
competitors to know the position and growth pattern of other players in the market.
Problem identification part was a new exposure, helped to know about the rural customer
behaviour, consumption pattern, rural culture and many more aspects. Working with rural
guides also helped to get many useful inputs gained from their experience in the market.

Vodafone report final

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