Studiu de Caz Romtelecom - Management Strategic

1. About Romtelecom

1.1 History

Romtelecom has evolved from a former state monopoly to a private company. They have used state-of-the-art technology to transform the business from providing traditional fixed line telephony to also offering high quality Internet (ADSL) and digital TV services. With an established presence in the market of over 75 years, Romtelecom had many hurdles to overcome in the Romanian people’s eyes; namely the perception of being a social services provider.

In 1930, Societatea Anonimă Română de Telefoane (SART, "Romanian Telephone Company, Ltd.") was founded, more than 90% of its value being a foreign investment from ITT.

In 1949, SART was nationalized and turned into a division of the Ministry of Posts and Telecommunications.

In December 1989, ROM-POST-TELECOM was created as a post and telecommunications operator, independent of the Ministry. The current name of Romtelecom was given after reorganization in July 1991, when the state-owned company was also given the monopoly for basic telecommunications services.

In 1998, a share of 35% was sold the Greek company OTE.

OTE has since acquired an additional 18% of the shares and has thus become the majority share holder of the company. The Ministry of Communications and Information Society (MCSI), Romania detains the other 45.99%. The Ministry of Communications and Information Technology is the specialized, juridical body of the central public administration in the IT&C sector, established with the objective of implementing the Romanian Government’s policy in the field of e-communications, postal services, information technology and informational services.

Romtelecom owns 30% of the Cosmote România mobile phone operator as well as 100% of the internet provider Click Net, the television digital satellite platform Dolce and Cyber Host data center facilities.

In 2008, in OTE's shareholder structure, Deutsche Telekom becomes implied by taking over 25% of the shares belonging to the group in Greece, and in 2009 Deutsche Telekom takes over other 5% of the shares belonging to OTE, thus DT's involvement in the Greek group reaching 30%.

Romtelecom’s aim is to become the leading technology services provider—including that of the broadband Internet Market—over the next few years. In order to achieve this goal, the company has to be able to offer innovative dual and triple play service bundles quickly and efficiently. This is critical to success in a market that will increasingly demand a stable, fast service with excellent customer care.

The stockholders of Romtelecom are: the shareholders (OTE and the Ministry of Communications and Information Society), the clients, the competition (RCS&RDS, UPS, Astral, CCC Blue Telecom, and Universal Cable Systems), the suppliers, the State.

1.2 Mission, vision, values

The Corporate mission is to deliver promptly ever-growing reliable telecommunication and entertainment services

The Corporate vision is that Romtelecom is the service company setting the standards within Romania, by exceeding the expectations of customers, employees and shareholders in the provision of high quality communication, entertainment and IT solutions.

The Corporate values are:

Customer focus

• Our mission is Customer 1st.

• I treat the client as I would like to be treated and as he would like to be treated.

• I positively surprise my customer in everything I do.

• I make things simple.

Commitment

• I say what I do and I do what I say.

• I take ownership for what I do.

• I act in the interest of the company.

• I challenge the status quo.

• I am Romtelecom – count on me.

Respect guides our behavior

• I respect and value the diversity of opinions and other people’s individuality.

• I respect my customers, respect my colleagues and also respect my work.

• I show respect to others and it is likely they will respond in the same way.

Integrity

• I act ethically and fair in my daily job and in all my decisions.

• I do not tolerate unethical and irresponsible behavior.

• My decisions are guided by principles.

Resources and cost consciousness

• I treasure the time, resources and effort of my colleagues and my company.

• I spend and use as if I was using the money from my own pocket.

• I keep costs under control as the easiest way to have a healthy business and a good job.

Teamwork

• I share my opinion openly and make my views known.

• I address issues not individuals.

• I fully stand behind the team decision.

• I put my full energy into executing the decision.