CELCOM

VISION

“Celcom brand vision is about pleasing our customers and

exceeding their expectation”

Evaluation:

It is a statement about what Celcom wants to become. It is the company’s goal to

empower the customers with choices and innovative solutions that will give them greater
control and freedom to live it to the fullest. Celcom has a good vision which is short in one
sentence, and as many managers as possible should have input in developing the statement.
But their vision should reveal the type of business that Celcom engages. Their vision was
stretched the organisation’s capabilities and image of itself. It guides them, shape them, gives
them direction and purpose, and can serve as a powerful motivator for those around
themselves.
MISSION

Celcom’s mission is:

 To delight the customers.

 To build a profitable enterprise that maximizes investors return.
 To empower, develop and reward our people, to become Malaysia’s preferred
employer.
 To build win-win relationship with all our business partners, based on mutual trust,
respect and support
 To work to bridge the digital divide, to build our nation and to enhance its standing
abroad.
 To maintain the highest levels of transparency, integrity and professionalism

From that mission, its is clearly shows the purposes of the business on what actually they
want to achieved in their business. The mission was easily understood and allows for the
generation and consideration of a range of feasible alternative objectives and strategies
without unduly stifling management creativity. Together with all their stakeholders, they will
make Celcom Malaysia a premium brand. A brand that symbolizes the spirit of freedom,
aspiration, confidence, dynamism, timelessness, universality and globalism. They not only
focusing on the profitability of the company but also concern toward customer’s satisfaction,
built good relationship with their partners and enhance business market.

No. Components Characteristic Include/Not in the

mission statement
1 Customers Yes
2 Products or services Yes
3 Markets Yes
4 Technology No
5 Concern for survival, growth Yes
and profitability
6 Philosophy Yes
7 Self-concept No
8 Concern for public image Yes
9 Concern for employees Yes

OBJECTIVE
  Uncompromising Integrity
 Exceptional Performance

Evaluation:

Celcom’s objective was desired or specific result on what actually they plan to achieved
at a specific time. The objective was specific, measurable, attainable, achievable, realistic and
time phased. For uncompromising integrity, they always doing the right thing and fulfilling
promises made to earn the trust of their stakeholders. It can be achievable through upholding
the highest standards of lawful and ethical conduct, and in demonstrating honesty, fairness
and accountability in all of our dealings. Their objective also motivates and act as a
commitment for them to achieve exceptional performance. They were always pushing
themselves to deliver benchmarked outstanding performance. They are determined to be the
winner, leader and best-in-class in what they do. Whilst they are tough with performance
standards, they are compassionate with people - they call it “Performance with a Heart”. That
is why their objective was acceptable in the society.

The objective also easily to measurable in order for the company to monitor its
progress and make corrections as needed. From the objective, they are not only focusing on
business performance but also must to compliance with code of conduct to avoid any
misstatement. Their objectives were good but they need to have good core values. Unlike
short-term, Celcom was more preferring in construct their mission based on long-term basis
and it can be attainable due to continuous of innovate their product and services.

STRATEGY
For Celcom strategies, they are concerned with integrating their activities and allocation their
resources so that their objective can be achieved. They were come out with strategic planning
in order for them to keep growth and sustain in the market.

Celcom is witnessing a structural shift in value from providing access and

connectivity infrastructure to offering applications, content, platforms and solutions. Access –
high quality connectivity services – is a hygiene factor for which economies of scale and cost
optimisation have become critical. Content and Applications are driving data consumption
and Platforms are enabling new solutions and business models. Even they have come out
with their own strategy but its still not enough to ensure the efficiency of implementing their
strategy. They need to be specified on what kind of strategy that they want to focus on. To be
specific, they need to differentiate their strategy level easier for them to identify the important
issue for every each of level.

There are 3 levels of strategies:

  Corporate Level Strategies
 Business Level Strategies
 Functional Level Strategies

1.Corporate Level Strategies

Coupled with this value shift, demographics in ASEAN and South Asia have moved
to the point that Millennials, or Digital Natives, are now the largest consumer group making
spending decisions on telecoms access, media services and utilising applications enabled by
new digital platforms. This segment of customers has vastly differing values, attitudes and
behaviours in the way they engage with their product and service providers, make purchase
decisions, and how they consume digital content and services.

Evaluation:

It is in this context that Axiata 3.0 has evolved to a clearer heading of the core
composition and priority growth pillars of the business moving forward. In line with our core
business pillars of Digital Communications and Connectivity; Enabling Infrastructure and
Platforms; and Digital Applications and Services, Axiata 3.0 has been further developed to
define the composition of Axiata as a New Generation Digital Champion by 2020.

The corporate level strategies of Celcom show that they are looking at overall
prospective of the movement of organisation. All the decision be made by top corporate level
with the inputs and participation from the various division. From the above strategy, they are
trying to maintain their stability of their growth so that they can sustain in future. In this
level, the top management should consider all the business and functional strategy before
they made the decisions. This is because their decision will give huge impact to the company
performance as the whole.

2.Business Level Strategies

 Similarly, Enterprises or the Business to Business (B2B) segment in ASEAN and
South Asia are embracing digitisation and automation at such a rate that Internet of Things
(IoT) applications and Cloud or platform-based Information and Communications
Technology (ICT) solutions are seeing rapid growth. Compared to the consumer segment
experiencing flat to single-digit growth, especially with regards to the access business, the
B2B segment for IoT and ICT is enjoying double-digit compound growth which is certain to
be sustained over the coming years.

Evaluation:

In this level, they are attend to focusing on the competition in the market. There are a
lot of company that do the same business nature like Celcom such as Digi, Maxis, TM, and so
on. For instance, Celcom is using innovation strategy to increase rivalry among competitors
through collaboration with Vodafone Group, Asia Mobility Initiative (AMI), and Axiata
Group Berhad who are the organization associations of Celcom. After that, because of
Celcom joined AMI in 2005, the regional existence across Asia be strengthened. Therefore,
to protected and enlarged in each country markets and simultaneously increase profitability of
the market share of Celcom. Other than that, Celcom are tried to increase the competitive
advantage via low call rate. In telecommunication industry there is high exit barriers because
of the high investment budget and to make companies struggle to subsist in this industry they
should responsible to their customers.

Celcom is the market leader in Malaysia when the competition in the specialty
advertising industry is very strong both on local, regional and national level. They also have
improved their competitive level, through developing many telecommunications feature,
providing quality services at considerable price. The effect of the latest introduction of a new
telecommunications service provider (U-mobile) make the competition in the
telecommunication industry very high. They are applying many future strategies to maintain
their position as the market leader in the Malaysian market and at the same time Celcom
enhanced their products technologically to keep the Malaysian telecommunications updated
with the technological advancement like niche marketing, business package development,
intercontinental and international service expansion. Celcom itself shows the strategy that
they used to gain the competitive advantage.
3.Functional Level Strategies

“Celcom’s current marketing strategy to maintain customer-company relationship with

potential customer”

Evaluation:
Celcom sends personal sales representatives to market their products on potential
customers and create service concepts for their business or choice of order. Specifications are
then sent to suppliers. This enhances more customer loyalty and relationship with the
company. Although some of the customers do go on credit, 20% of the annual sales are
obtained from this form of marketing sales and this is designed to reach their objectives of
being the market leader and providing quality services for the customer and profit to the
company in return. This is a potential advantage they have over their competitors as well.

Celcom has been in the telecommunication business with the primary objective to
keep people connected and helping companies to market their goods and services as well as
keeping them close to their customers. Besides formulating a market-orientated and
customer-focused mission statement, Celcom has established and objective to achieve
cumulative growth in the next five years with a 50 per cent net profit for the newly launched
U-verse. To accomplish these objectives, Celcom has developed a benchmark for progress in
three different categories. Firstly, through using a market penetration pricing, the service will
be brought to the customers at affordable and reasonable prices. Secondly, by gaining a better
understanding of the need and satisfaction of the current customers, they will improve the
service to encourage re-orders. Finally, the service is to be able to utilize its current
technology and knowledge base, and research as well would be conduct on similar products
with an eye towards developing the services to a speciality advertising product

Other than marketing strategy, Celcom should have proper planning on others area
such as management, financial, and others. They cannot only focus on marketing strategy
because other areas also will affect the company performance. In term of management, they
need to manage their resources properly such as staff’s welfare, quality of services, and so on.
Through the effective marketing strategy will lead to the good financial performance.

Financial Ratio
1)Return on shareholders’ equity

Net income
=
Total stockholder s' equity

RM 1,203,302
=
RM 20,609,155

= 0.06

Return on equity (ROE) is the amount of net income returned as a percentage of shareholders
equity. Return on equity measures a corporation's profitability by revealing how much profit
a company generates with the money shareholders have invested. The return on shareholders’
equity is 0.06. This means that every ringgit of shareholder’s equity earned about RM0.06
this year. In other words, shareholders saw a 6% percent return on their investment.

2)Return on Total Assets

Net income
=
Total assets

RM 1,203,302
= RM 25,769,568 x 100

=4.67%

Return on assets (ROA) is an indicator of how profitable a company is relative to its total
assets. ROA gives a manager, investor, or analyst an idea as to how efficient a company's
management is at using its assets to generate earnings. Return on assets is displayed as a
percentage. Thus, higher values of return on assets show that business is more profitable. For
Celcom, its return on assets is 4.67% this indicates that every RM1 of its assets can produce
RM0.05. This shows that Celcom was inefficient in using their resources to generate their
income.

3)Debt Equity Ratio

 Total debt
=
Total stockholde s ' equity

RM 2,968,244
=
RM 20,609,155

= 0.14

It is a debt ratio used to measure a company's financial leverage. The D/E ratio indicates how
much debt a company is using to finance its assets relative to the value of shareholders’
equity.
A lower debt to equity ratio usually implies a more financially stable business. Companies
with a higher debt to equity ratio are considered more risky to creditors and investors than
companies with a lower ratio. Based on the calculation the debt to equity ratio of Celcom is
0.14 thus it indicates Celcom has more financially stable business since its ratio are lower
than 1.

4)Current Ratio

Current assets
=
Current liabilities

RM 790,343
=
RM 5,155,256

= 0.15

The current ratio is a liquidity ratio that measures a company's ability to pay short-term and
long-term obligations. To gauge this ability, the current ratio considers the current total assets
of a company (both liquid and illiquid) relative to that company’s current total liabilities.
Based on the calculation the current ratio is 0.15 which is lower than 1. This indicates that
Celcom has more liabilities than assets. So, for every RM1 of it liabilities can only be paid by
RM0.15 of assets.
5)Net profit margin

Net income
=
Sales

RM 1,203,302
= x 100
RM 1,049,838

= 114.62%

Net profit margin is the ratio of net profits to revenues for a company or business segment.
Typically expressed as a percentage, net profit margins show how much of each dollar
collected by a company as revenue translates into profit. Celcom net profit margin is only
114.62% it shows that Celcom performance is good because each ringgit of sales can only
generate 114.62% of profit.