Financial and Market Analysis of Omantel

Running head: FINANCIAL AND MARKET ANALYSIS OF OMANTEL
Financial and Market Analysis of Omantel:
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FINANCIAL AND MARKET ANALYSIS OF OMANTEL1
Table of Contents
Answer to Question 1:.........................................................................................................................2
Answer to Question 2..........................................................................................................................3
Answer to Question 3..........................................................................................................................4
Answer to Question 4..........................................................................................................................4
Answer to Question 5..........................................................................................................................5
Answer to Question 6..........................................................................................................................5
Answer to Question 7..........................................................................................................................6
Answer to Question 8..........................................................................................................................6
Answer to Question 9..........................................................................................................................6
Answer to Question 10........................................................................................................................7
Reference.............................................................................................................................................8

FINANCIAL AND MARKET ANALYSIS OF OMANTEL2
Answer to Question 1:
As stated in page 686 of “ERP System Implementation success factors in the Middle East
Region: Case Study of Oman Telecommunication Company (Omantel)”, Oman
Telecommunications Company (Omantel) is an Oman’s first telecommunication company, of
which the Government have owned 51% of shares. Being the oldest telecommunication company in
Oman, they have a huge amount of responsibility towards their stakeholders. Stake are the most
important element in a business, on which the growth and existence of the business relies. In the
annual report 2017 of Omantel Company, they have addressed some its key stakeholders. The two
types of key stakeholders of the company which are mainly addressed in the annual report are
Government, and its agencies and employees (Omantel.om. 2019).
As 51% of the share of the company is owned by the Government, the company therefore as
a public sector company have huge responsibility to consider Government policies and laws. The
Government have major control on the operations of the company and changes in leadership or
governance will have a major and the primary impact on the company’s operations and services. As
mentioned in the company’s annual report of the company, the company in cooperation with
various government agencies and civil society organizations, have launched some number of CSR
initiatives, which is also a part of the company’s CSR agenda, out of which Omantel Ramadhan
Campaign is an example of one of the most important social responsibility campaign. The relation
of the company with Government agency, is like contrasting as image of the company will affect
the policies and administration of the Government and vice-versa (Al Yahyaee 2016).
The other most important stakeholder of the company is their employees, because the
company’s whole operation is depended on the services provided by the company, which is
executed and monitored by the employees only. Thus, the 90% of the company’s revenue from
operation is due to the performance of the employee. As mentioned in the annual report, the
company, apart from CSR initiatives, have also executed various social activities, which are

FINANCIAL AND MARKET ANALYSIS OF OMANTEL3
volunteered by their employees and staff members. Thus the employees plays a very vital role in
the company’s overall operations including social responsibility.
Answer to Question 2
The following is the PEST analysis of Omantel Company, which will identify and describe
the framework of the macro-environmental factors that is used in strategic management:
Political:
The Political factors of the company includes the Government policies, laws, and the factors
of local governance, which has a major impact on the business. The followings are the political
factors:
 The company enjoys a strong government support, because it is the flagship telecom
company of Oman and also a public sector company with 51% of shares owned by the
Oman Government. The Government have a huge participation in company’s decision
making.
 Oman’s cordial and diplomatic relations with the world help the company in building
international client base. Thus, the Government’s diplomat relation helps in promoting the
company and expanding its services.
Economical:
 The major economical factor that affects the company is low oil price, because due to the
low oil price environment of the company will reduce the tax recovering of the company,
and the low price environment will also have an impact on the company’s pricing policy
and hence will affect the earnings (Abushova, Burova and Suloeva 2016).
Social: