Organizational and Sector Leadership: A Report on Omantel's Strategies

This comprehensive report delves into the leadership strategies and organizational structure of Omantel, a leading telecommunications company in Oman. The report begins by examining the seven structures and systems employed by Omantel, illustrating their impact on leadership effectiveness and organizational growth. It further analyzes the company's Leadership Value System and its influence on internal capabilities, customer relationships, and sustainable development. The report then explores Omantel's competitive landscape, identifying key differentiators and the evolution of the telecommunications sector in Oman. It discusses the growth of the company, its transformation efforts, and the challenges it faces, recommending actions for sustainable success. The analysis covers various aspects, from leadership approaches to market dynamics, providing a holistic view of Omantel's operations and strategies within the telecommunications sector. The report also includes figures and tables to support the analysis.

Organization and sector leadership

TABLE OF CONTENTS
Introduction................................................................................................................................1
1. Theory, research and sciences of organization identity.........................................................1
a. The seven structures and system present in the organization.............................................1
b. Impact of Leadership Value system and structure in Omantel..........................................4
c. Differences to competitors.................................................................................................5
d. Positive points of differentiation........................................................................................5
2. Organizational sector.............................................................................................................5
a. How the telecommunication sector evolved......................................................................5
b. Differ from the competitors...............................................................................................6
c. Impact of positive points of differences.............................................................................7
3. Growth of success and needs to undertake transformation....................................................8
a. Changes and approach to managing the changes to be successful.....................................8
b. Actions taken by organization for transformation...........................................................10
4. Challenges and problems.....................................................................................................11
a) Issues faced by company..................................................................................................11
b) Actions to gain sustainable success.................................................................................12
Conclusion................................................................................................................................13
Recommendations....................................................................................................................13
References................................................................................................................................14

List of figures
Figure 1: Seven structure and system.........................................................................................2
Figure 2: Industry growth...........................................................................................................6
Figure 3: Service comparison.....................................................................................................8

Introduction
The leadership has a significant impact on the planning and growth of the
organization as the manager takes the decisions that are beneficial for the company
considering the current conditions and future goals. The effective leadership approach and
tactics influence the internal capabilities and management of operations that are useful to gain
success in the business. The current report will analyze the seven structures and system of
Oman Mobile Company and describe the present Leadership Value System and Structures of
the company. The report will analyze different competitors of Oman Mobile and identify the
positive and negative points of organization. Oman Telecommunication Company (Omantel)
is the first company in Oman that providing the primary internet services in the country. The
organization was founded in 1980, headquartered in Muscat, Oman. The government of
Oman owns the 51% share of the company. In the Middle East and North Africa region, the
company acquired 21.9% of Zain Group stake. The management is working on the
encouragement of business by expanding the business within the international sector. In the
year of 2015, the organization has won the award for high standards in Human Resource
management (About Onamtel, 2019). The current organization is operating a business with
the support of 2690 employees. Moreover, the report will provide the information changes
that taking place in the business sector of Oman Mobile Company and underpin the specific
example of the leadership behaviour of the company. In the end, the report will identify the
three big issues that the organization is facing and recommended the actions that management
could take to develop a sustainable future.
1. Theory, research and sciences of organization identity
a. The seven structures and system present in the organization
The leadership is having a significant impact on growth and productivity of an
organization the leads to self-organizing and expanding the business by focusing on the
market opportunity with innovation. Omantel is one of the leading communication
organization of country that leading the marketing in internet services. Following are the
seven structures and systems that an organization is implementing for managing the
leadership and effectiveness in working (About Seven structure and system, 2019).
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Figure 1: Seven structure and system
(Source: Leadership value system, 2019)
Level 1: Beige
By considering this level system, management of organization is focusing on the
psychological needs of the staff members and maintaining the security and data protection
standards that are helping to increase the survival sense. Moreover, this system is supporting
organization to encourage the commitment level of the staff members which is necessary for
maintaining the quality in the products and services (Chuang, Jackson, and Jiang, 2016).
Level 2: Purple
This system and structure based on the theme of Kinsprits that allow the organization
to understand and maintain the cultural and social norms in the working process. By
considering this system structure, the management is applying traditional process and rituals
that help to encourage the group culture and enhance the bonding of the group members at
the workplace.
Level 3: Red
This structure level of transactional leadership focus on PowerGoals themes and
encourage the management staff to maintain the glory of the organization. According to this
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system, Omantel management is looking to expand the business beyond the boundaries
analyzing the opportunities in the international market. The top management of the company
is identifying the global trends and implementing the standards in existing services that
influencing the quality and demand of Omantel.
Level 4: Blue
According to this system structure for leadership approach in the telecommunication
industry of Oman, the management of Omantel is working on the TruthForce and maintaining
the authority by following one-right-way of business which is a rapid modification in quality
and delivery of internet services. This kind of leadership approach and system is supporting
Omantel to maintain the effectiveness in the industry (Anderson, and Sun, 2017).
Level 5: Orange
The system structure that followed by Omantel to maintain quality and leadership in
the market involve theme StriveDrive. By focusing on this system approach, the organization
is maintaining success by developing a stand out the image by offering the customer-oriented
services. Moreover, the organization is following the status of telecommunication services to
achieve business goals.
Level 6: Green
To achieve success in business, the HumanBond is required as knowledge of interest
of stakeholders to develop a plan to satisfy their needs is useful for organization. By making
concern over this point, the management of organization requires offering authority to
stakeholders and maintaining the relationship with the local and global committees which
enhancing the level of caring.
Level 7: Yellow
This system structure approach of Omantel is based on the theme of FlexFlow that
supporting in integrating all aspects of the strategic and tactical level to develop
comprehensive products and services in the sector of telecommunication. For example, the
management is providing support to small organizations to offer ground support and offer
services to end-users (Veríssimo and Lacerda, 2015). To maintain this approach, the top
management of Omantel is maintaining a mutual contract with strategic partners.
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According to analysis, the Red, Blue and Orange and Yellow colours relevant to the
leadership approach of Omantel and telecommunication sector. These colours are helping
organization to expand the business beyond boundaries by focusing of the global trends and
managing the workforce in one direction using the authority. Moreover, the orange colour is
allowing organization to maintain the customer oriented services that enhance the leadership
within industry. In addition to this, the use of FlexFlow theme considering the Yellow colour,
the management of Omantel is leading the telecommunication sector by offering the proper
ground support for the services and offer quality services to the end-users.
b. Impact of Leadership Value system and structure in Omantel
The Omantel management is following the Leadership Value system and structure
that is helping the organization to maintain the growth in products and services as well as
maintaining the relationship with the customers. The seven structures and system is
increasing self-awareness related to the existing services standards and analysis of gap
against the proposed quality outcome. The top management is tracking lines of specific
operations the helping to effectively map the lifecycle of leadership stages within and outside
of the organization. The Leadership Value System is providing knowledge about basic
extension, pre-industrial era, information and knowledge related to the modification in the
telecommunication industry globally and technical changes that could be beneficial for
organization to encourage the creativity in the services to engage the customer and maintain
the leadership in industry (Macdonald, Burke, and Stewart, 2017).
Moreover, the Leadership Value System and structure is influencing the sustainable
development of the company as management of Omantel is making concern over every
aspect of operation such as the performance of employees, environmental betterment,
services quality, expansion of services areas and collaboration with the leading organizations
from the overseas locations. This kind of approach is having a positive impact on the overall
leadership approaches of the Omantel. In addition to this, this system is allowing
management to implement the effective leadership style that improves analytical approach
and support to overcome the risk in the development and offering of telecommunication
services (Nguyen et al., 2017). To manage the staff, the management of Omantel is focusing
on the global standards of HRM that allowing the company to share benefits to team
members which attracting the new talent and supporting to retain the existing staff members
for a longer period of time.
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c. Differences to competitors
There are majorly four competitors in Oman that having a direct impact on the sales
and profitability of the Omantel such as Nawaras Telecom, PCCW-Awaser Oman, Renna and
Samatel. These companies are following rules and regulations of the telecom sector and
offering quality services to the customer. However, services of these companies are
satisfactory and having a positive impact on the customer decision but Omantel is leading the
telecom market of the country by maintaining higher efficiency in processing the services,
constructive relationship with the stakeholders and adopting the changes in the standards of
services focusing on the international attributes (Lee, 2017). Moreover, the differences in
Omantel approach include the transactional leaders and implementation of cultural elements
which has a positive impact on the buying behaviour of the target customers groups. In
addition to this, the advancement in services and quick resolution of customer issues are
helping Omantel to gain competitive advantage.
d. Positive points of differentiation
The differences that Omantel is maintaining through Leadership Value system and
structure are havinga positive impact on the branding and sales approach of the organization.
These positive impacts are helping the organization to fulfil all communication needs of the
customer, attract and develop talent to establish customer oriented teams and deliver
profitable growth to the shareholders. Omantel is first and leading integrated
telecommunication services provider and implementation of the Leadership Value system and
structure is helping the organization to maintain the competitive advantage. For example, the
digital society and corporate businesses from Oman and Middle-East region are giving the
preference to services of the Omantel (Kerns, 2015). Additionally, the positive differences
are allowing the organization to explore the entertainment field by developing the strategic
alliance with leading mobile manufacturing companies like Apple, Samsung and Motorola.
2. Organizational sector
a. How the telecommunication sector evolved
The telecommunication industry of Oman is having potential and utilizes the
opportunities in a professional manner to enhance the growth rate in the past five years. The
major reason for the improvement in the telecom sector of the country is the high demand for
internet and improvement in the level of competition. The telecommunication organizations
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are looking to encourage the operation quality and services areas that helping to increase the
demand of the data which is beneficial for the whole industry. The growth rate of the telecom
industry in 2017 was 5.5% and expected to be 6.7% in 2019. The leading organization like
Omantel is offering prepaid and postpaid services for users that have helped to improve the
sales of telecom companies in recent years. 91% of customers are using the prepaid services
and the fixed line customer rate is low compared to data of 2017. The key operators of Oman
telecommunication sector are Omantel and Ooredoo Oman that have 79% share of the whole
industry (Telecom sector update Oman, 2018).
Figure 2: Industry growth
(Source: Telecom sector update Oman, 2018)
The major changes noticed in the telecom sector of Oman after the offering of high-
speed internet services in the country after 2012. As the demand for internet services has
increased in the country, there are many other organizations have emerged such as Friendi,
Rennea and Teco. These organizations are offering high-quality services at low prices that
also helping to increase the demand for telecom services. In addition to this, modifications in
technology like cloud computing, wireless communication and broadband service are helping
to encourage the revenue of the telecommunication sector of Oman (Jyoti, and Dev, 2015).
However, the level of completions has increased in recent years that have hindered the
opportunities for Omantel to maintain high percentage in growth and profitability but the
changes in perception of the customer are good for the industry to grow.
b. Differ from the competitors
According to an analysis of telecom sector of Oman, it has carried out that there are many
changes have taken place to modify the structure and approaches of organizations. Omantel is
a leading organization and maintaining success by implementing the following elements.
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Sustainability in operations:
The leading telecommunication organization Omantel is forecasting the needs of
customers and demand of data services to manage the resources and deliver the high quality
at each time. In the domestic market, the growth of Omantel was 33.5% in 2018 and
management is expecting thesame growth in 2019 by focusing on the mixed factors like cost
control, innovative and trustable services and betterment of the environment. These
sustainable operations of the organization are having a positive impact on the business
approach and leading the market (Niemeyer, and Cavazotte, 2016).
Lower debt to equity in the long run:
The Omantel is generating OMR 469.98 mn from Oman telecommunication market
and another market contribution involves25.7% from Kuwait and 22.1% from Iraq. The high
growth and less debt from the local and international market are helping this leading
organization to gain a competitive advantage and retain the customers (Jose, Al-Badi, and
Ali, 2016). The domestic revenue and high-profit margin are supporting organization to
improve the sales and maintain royalty in the market.
Risk management:
There are various risks that having a critical impact on the services and growth of
Omantel that involve delayed in synergy benefits, improvement in the geopolitical tensions in
the key market segment like Iraq, considered as the proxy organization of national
government and implementation of IFRS 9 standards. These are some major issues that have
a negative impact on management and branding functions of Omantel, but the organization is
mitigating these issues by supplying more funds to offer timely benefits to the stakeholders to
overcome the impact of delayed in synergy benefits (Veríssimo, and Lacerda, 2015).
Moreover, to manage the geopolitical tensions in Iraq the management is diversifying the
telecommunication services in leading data services provider to the country. The low-cost
data services are having a positive impact to maintain the demand for services in Iraq.
c. Impact of positive points of differences
To maintain the business and minimize the impact of competition within the industry,
Omantel management is making various efforts which have a positive impact on the services
and branding of the company. As per the analysis, the sustainable operations, debt and equity
as well as proper risk management is helping the organization to standas a leading
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organization that has implemented the Leadership Value System and Structure. In addition to
this, the Omantel TV, cloud portal and ICT solutions that offered by the company are having
a positive impact on the business as customers are giving preference to the services of
Omantel over other companies like Zain, Teco and Rennea (Al Jabri, Al-Badi, and Ali,
2017). Apart from that, the connectivity solutions and high-speed internet services of the
organization increase the gap in quality services structure compare to other organizations.
3. Growth of success and needs to undertake transformation
a. Changes and approach to managing the changes to be successful
The major changes that have influenced the telecom industry of Oman include the
decline in voice services and improvement in the data services (Internet). In the current
scenario, fixed broadband penetration is expected to outpace the fixed voice services in the
country.
Figure 3: Service comparison
(Source: Oman broadband strategy, 2019)
To deal with these changes, the management of Omantel is working on data services
policies and identifying the geographical areas that are not connected with the server. The
changes in data plan and cost of operation are allowing Omantel to overcome the impact of
changes that could influence the profit and customers bases. For example, the Omantel
management is offering specific business solutions for the corporate companies for internet
services that involve email broadcasting, bill analyzer and anti-spam (Oman broadband
service strategy, 2019). These services are having a positive impact on the approach of
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Omentel to manage the changes and provide the services as per the needs of the customer.
The convenient web-based solution and low-cost monthly tariff of OMR 75 for email
broadcasting are supporting organization to maintain the positive relationship with the
existing customers as well as influencing the buying behavior of potential customers (Ameen,
and Willis, 2016). In addition to this, the introduction of MVaaS services is also supporting
Omantel to maintain the growth in the business in a highly competitive environment. The
MVaaS service is offering point to point and multipoint video conferencing calls. The
advancement in services is allowing the organization to manage the changes and improve the
quality of services which influence the demand (Glória Júnior, and Silveira Chaves, 2015).
Apart from that, the issues like maintain the competitive advantage, global and
regional perspectives, it is essential for the management to have concern over trends and
services that has high demand. In addition to this, the management of Omantel is looking
forward for developing the new products and services to attract the customers as well as
working for crafting improvement in the performance of the staff members. In order to
implement the changes, the organization has used the change management eight step model.
Alpha fit: According to this model, the management has analyzed the system needs and
procedure to make the changes this step is known as alpha fit. Moreover, to implement the
changes the management of the Omantel will try to reform and re shuffle the desk by
focusing on the needs of the customers and global trends that influencing the buying
decisions of the customers. Moreover, the alpha fit approach will also support the
organization to upgrade the services and products considering the technical advancement and
approaches to cope up with the changes that could help to encourage the business.
Beta conditions: To maintain the systematic approach and progress to deal, the management
of Omantel will focus on the objectives and try to attempt the behaviroal and industrial
changes that are having direct impact on the business functions of the company. According to
the beta condition, the company will develop the base by considering the structure and
specific needs of the customers.
Gama trap: It is essential for the organization to identify the barriers and control and
international operations for change management. The improvement in services as well as
planning of the new internet based services for customer will be useful for the organization to
break-out the issues and manage the operating systems more professional manner.
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Delta surge: The consideration of next level service standards the changes variation order
will allow Omantel to make focus on the old process and compare with the changes in the
telecommunication services globally. This will help to identify areas of changes as well as
approaches to overcome the issues in the services related to the performance and
development of new products.
b. Actions taken by organization for transformation
As mentioned earlier, Omantel has passed from various transformations which have
been executed to make company’s position better and service customers efficiently. In these
changes, the major role is played by the leaders and management staff of the company. As
per the seven structures and system, the PowerGoal theme has been used by organization
according to which the entire team put their efforts for business entity’s fame. The various
types of corporate strategies have been formulated to pursue innovation and excellence in
diverse operations (Metcalf and Benn, 2013). To make improvements ion data speed, voice
etc. company has set Omantel 3.0 strategy to bring affordable services and make investments
in the best projects.
As per the entire seven structure leadership, mentioned venture strives to serve
customers qualitatively. Further, they perceive it as their responsibility to connect entire
population of Oman by the end of 2020. Focusing on HumanBond aspect, the company is
also taking its stakeholders in transformation. The firm attempts to make efforts for
identifying issues related to its stakeholders so as to create values for them. Besides this, the
sustainability issues are taken seriously by Omantel (Analoui, Hannah Doloriert and
Sambrook, 2012). Therefore, it has taken assistance of GRI sector guidance that helps in
identifying and anticipating issues relevant to firm or stakeholders. This resulted in creating
an entire list of issues that can be occurred in long term future. Thus, the workshops are
organized to discuss these issues in detail and take necessary measures that can aid in
resolving it. Moreover, it also offers considerable assistance in setting priorities and finding
potential areas where business can flourish. Along with this, collecting feedback from
concerned parties is also one of the major steps which company is considering taking into
action soon (Huhtala and et.al., 2013).
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4. Challenges and problems
a) Issues faced by company
The challenges and issues are common for any industry that is working in a
competitive environment. Omantel firm is also not an exception which continuously faces
different types of challenges in the dynamic environment that affects its operations and
profitability. Some of the major issues that are noticed till date for said business entity are as
follows:
 One of the major issues that have been identified in context of Omantel Company is
related to revenues. Apparently, there has been huge growth in consumption of data
and internet facility which supposedly must increase the revenues of firms
(Liljenberg, 2015). However, the operator does not possess sizeable revenues from
this growing consumption. It indicates to apply some strategy related to pricing of the
service at competitive rates which does not affect the global position of the firm.
Therefore, in such scenario, strategy of powergod themes (Red) and StriveDrive
(Orange) can be applied. According to this system, the top management will be able
to spot global trends that influence demands so as to affix price of the service
competitively and expand its customer oriented services respectively.
 Another major turndown in this scenario is related to unstable economy of the
country. Accordingly, the performance of management was going down which
impacted the revenues and profitability of business. To enhance the employees
performance, TruthForce (Blue) strategy can be adopted which emphasise over the
leadership style that follows a single and right way of doing business. This helps in
making employees readily available to accept modifications and deliver quality
services. Moreover, adding the StriveDrive (orange) strategy will assist in maintaining
the demand and quality (Burnes and By, 2012).
 Another challenge is related to the innovation where company intends to come up
with new product. For this purpose, HumanBond (Green) and FlexFlow (Yellow)
strategy will be of great help. Accordingly, the HumanBond helps in using the
knowledge of stakeholders’ interests so as to make products as per their demand and
choice. Similarly, the FlexFlow will aid in using strategic and tactical ways for
development of products and services in innovative way.
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Apart from this, the Omantel group emphasizes more on retaining its customers so that
they can put check on overheads and retrieve more profits. Moreover, the challenges that
have been faced by organization in past years and recently have compelled the business
institute to make concrete solutions in this direction (Dartey-Baah, 2015).
b) Actions to gain sustainable success
The Omantel Company constantly keeps track of its performance and market so as to
remain competitive. Various types of actions are executed which are necessary for get
sustainable success.
 Company believes that to develop and maintain success in industry, it is
recommendable to focus on economic, social as well as environmental contribution.
For the said purpose, firm has formulated Omatel 3.0 strategy which is based on four
pillars. These pillars can be understood as major goals that are set to achieve in long
term future. As per these pillars company will strive to exceed expectations of the
consumers by giving them highest priority (Analoui, Hannah Doloriert and Sambrook,
2012). Further, it can apply the leadership theories as per the seven structures and
system which provide the strategies for various individual objectives like expansion,
product development, performance enhancement etc.
 The firm also works to take care of all the local and global communities as they
believe that company is using the assets and resources of the society. Hence, it builds
strategies that can help in providing the services that are of best quality. Here the
strategy of Survival Sense (Beige) can help which is based on giving support to
encourage the commitment of company towards society. So, it will aid in retaining the
customer base of firm as well (Liljenberg, 2015).
 In addition to above, the company has adopted the strategy of ‘Carrier of Carriers’
which is aimed at attaining sustainable growth of business at global level. As a result,
the entity is running 9 international submarine cables at present which has extended
the access of services for customers.
 The Omantel Awael is a program conducted by mentioned venture so as to impart
knowledge about digital technologies to people who do not have access of latest
technologies (Dartey-Baah, 2015). The organization was successful in its objective
due to which it has increased its customer base and also continues this program to
generate more potential customers.
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Conclusion
From the study, it has been carried out that implementation of Leadership Value
System and Structure is helping organizations to improve the standards of working by
considering the principles of leadership. The report has defined and analyzed the impact of
following the Leadership Value system on the Omantel Company that is the first and most
effective telecommunication company of Oman. The report has identified key factors that
encouraging the competition and fostering the changes in the industry. Moreover, the report
has evaluated the approaches of Omantel to mitigate the changes to maintain growth. The
changes in technology and trends demand additional efforts so as to remain competitive and
successful in the industry. The later part of the report discuss about the transformations that
have taken place in past years and the ability of company in dealing with these. Along with
these, the challenges encountered by the firm have also given a detailed discussion along with
the some major steps to sustain success in these challenging conditions.
Recommendations
By considering the analysis of sector leadership and approach of Omantel in
industry, it is recommended to the management to develop customer centric services and
products that will help to maintain the growth. The management of company is working on
innovation and improvement in the data services, but lack of trend analysis and understanding
of actual needs of the customer affecting the performance of Omantel and encouraging
opportunities for the competitors. Now, to overcome impact of this aspect Omantel needs to
collect the feedback from the local and international customers and suppliers to identify the
issues and make quick actions that will influence the brand image of company. The
Leadership Value System and Structure that followed by the organization has a significant
impact on the business approach of company. The modifications in technology like cloud
computing, wireless communication and broadband service will be helpful to encourage the
revenue of the telecommunication company Omantel.
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