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NCELL 2016

#Risk Management & sustainability of the business #Crisis Management #Crisis Communication


Abstract

Ncell, a Private telecom operator in Nepal established in 2004 and started commercial service in 2005. TeliaSonera, the parent company of Ncell, sold its 60.4% to Axiata Asia's leading Malaysian telecommunication group in 2016.The case's main issue began in 2016 when sales created controversy because of a dispute about paying capital gain tax to the Nepal government. The tax scandal became Widespread to the public. It became a factor in the backlash of the company's image and brand reputation, harming its profitability. Ncell's market share decreased over time and dropped to 39.5% by 2019, the worst situation in Ncell’s history. On top of this, the company's profitability dwindled year after year after 2016. In November 2019, new CEO Andy Chong took over Ncell and made a discernible improvement. His main objective was to rebuild the company’s brand image, corporate reputation, and customer relations, uplift the company’s financial position, and overall transformation (Strategic, operational, digital, cultural, change management, sustainability, customer-centric, innovation, and R&D). Andy focused more on sustainability business practices, creating shared value (CSV), and building good governance and corporate culture, promoting a culture of integrity & performance, applying different strategies for the general management of an organization to Establish good government and corporate culture at Ncell.Moreover, he applied the policy of Anti-Bribery & Anti-Corruption ( ABAC) procedures along with cultivating the Driving culture of integrity, One Company, One Family / CEO Zero-hour ideal lab. During his tenure, there were some improvements within the organization. The Ncell data consumption was satisfying as it rose by an exceptional 40.1% from 2020 to 21. The general management strategy he established was effectively implemented along with Promoting a culture of integrity & performance. Overall, Andy Chong did Good at the 4P of Sustainability Business Practices but Poor Performance at the 4P of Marketing & Profitability of Business. But he could not perform well regarding the company’s 4P of marketing and profitability.

Detailed information

Case ID 23-1065
Published 2023
Industry OTHERS
Analyzed Area General management
Pages 27
Language English
Teaching Note Attached