ASSOCIATION OF BUSINESS EXECUTIVE (UK)

FORTUNE SCHOOL OF TECHNOLOGY & MANAGEMENT

Assignment on
LEADERSHIP AND CHANGE MANAGEMENT

Submitted By: Prashant Singh

ABE No. : W09527

EXECUTIVE SUMMARY:

Sistama-Shayam telelink merged on January 23, 2009:–Shyam Telelink Limited, the latest
entrant in the Indian telecom space, today formally announced the change of its name from
Shyam Telelink Limited to Sistema Shyam Tele Services (SSTS). The name change was
announced by the company following an EGM meeting where the decision for the transition
from STL to SSTS was ratified. Sistema Shyam Tele Services (SSTS) is a joint venture
between Sistema (LSE: SSA) of Russia and Shyam Group of India Presently the company
has received the licenses for all 22 circles in India. Sistema Shyam Teleservices

Sistema is the majority share holder in this joint venture with a 73.71% equity stake, along
with the Shyam Group, holding a 23.79% stake and the rest 2.5% being public partake .SSTL
has spectrum to provide mobile telephony services in all the 22 circles across the
country..Presently SSTL offers mobile telephony services in the Rajasthan, Tamil Nadu,
Kerala as well as the Kolkata circles.

However, upon the new strategy of the Company of becoming a Pan India Operator, a need
was felt to bring Brand with Pan India appeal and global flavor. Accordingly your Directors
took a strategic decision and are delighted to inform you that your Company has launched the
globally acclaimed MTS brand in India and also concluded the rebranding of Rajasthan from
Rainbow to MTS without any noticeable disruption in sales and smooth handover of
Rainbow brand equity to MTS. The Directors are confident that this global brand will be
immensely successful in cutting a niche in the Indian telecom market with its core instinctive
value for customer focus. The strength of MTS brand has been consistent and has been
recognized internationally in both 2009 & 2008 in BRANDZ TM as one of the top 100 most
powerful brands, a ranking published by the Financial Times and Milliward Brown, a leading
global market research and consulting firm. It has been ranked at the 71st position by
BRANDZ. Global recognition of MTS brand strength is a testimony to both the success of
MTS and the growing interest in markets of operation of the Company.

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Table of Content

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COMPANY INTRODUCTION
Sistema Shyam Teleservices Limited (formally known as Shyam telelink limited)Limited
(STL) was awarded the license operate Basic Telephony Services in Rajasthan under the
fixed license fee regime in 1996. Sistema Shyam Teleservices Limited (formally known as
Shyam telelink limited) started its basic telephone services in Rajasthan under the brand
name RAINBOW´ in June 2000 at Jaipur. The company migrated to the Unified License
Regime in November 2003. In the Unified License Regime, the company can provide basic
as well as mobile telephony services in the Telecom Circle of Rajasthan. Shyam offers its
services in more than 100 cities, and has one of the best brand recalls in Rajasthan Shyam
offers to its customers, services based on multiple technologies, which has been possible
because of exhaustive optical fibre backbone of over 3,500 Kms. This has helped STLL to
grow as an integrated service provider.

Sistema, was founded in 1993, is the largest private sector consumer services company in
Russia. Later in December 2007, Sistema received an approval for the acquisition of the
blocking stake in Sistema Shyam Teleservices Limited (formally known as Shyam telelink
limited) from the Foreign Investment Promotion Board (FIPB) of India. As a result of the
acquisition of the additional 41% stake, the overall purchase price totalled US$ 58.1 million.
By June 2008 Sistema has upped its stake in Shyam Telelink, to73.1% from 51%. Sistema
plans to invest USD 5bn billion dollars in India in the next three years, targeting telecoms but
also real estate, high technology and banking. Sistema is one of several foreign players keen
to establish themselves in India’s booming telecoms market.
About sitema Shyam telelink

New Delhi, January 23, 2009:–Shyam Telelink Limited, the latest entrant in the Indian
telecom space, today formally announced the change of its name from Shyam Telelink
Limited to Sistema Shyam Tele Services (SSTS). The name change was announced by the
company following an EGM meeting where the decision for the transition from STL to
SSTS was ratified. Sistema Shyam Tele Services (SSTS) is a joint venture between Sistema
(LSE: SSA) of Russia and Shyam Group of India Presently the company has received the
licenses for all 22 circles in India. Sistema Shyam Teleservices.[ CITATION MTS10 \l 1033 ]

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Literature Review

Transformation leadership theory

This theory is all about leadership that make encouraging change in the followers or
employers. They take care of every one interests and task in the interests of the group as an
entire.
Leader’s task is consciousness-raising on a big planning. The leader's basic and primary act is
to persuade people to be aware or mindful of what they feel - to feel their right requirements
so strongly, to classify their values so significantly. This leadership style, the leader enhances
the inspiration, ethical and performance of his follower group. This leadership is all about
principles and importance, and a purpose that transcends short-term goals and focuses on top
order requirements.
Transformational leadership can be applied in this case change management situation and
context is ideally suitable to the holistic and broad view perspective of a programme based
approach to change management and it can be a key element of successful planning for
managing change. The companies had started making the combined engine and the whole
staffs were transformed. [ CITATION War \l 1033 ]

Change management

Change management is a structured approach to transitioning individuals, teams,

and organization from a current and a desired future state. Organizational process aimed at
empowering employees to accept and embrace changes in their current business environment.
In project, change management refers to a project management process where changes to a
project are formally introduced and approved.[ CITATION Koc07 \l 1033 ]

Benefits of change management

Change management takes the precious time of your organization most precarious
employees. Process of change management is worth the trouble.

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Change management helps to lower risks add with change, eliminate resource conflicts and
repetition, and learn from successes and mistakes of the past.
Change management can offer an inside means to achieve the near-universal goals of
advanced internal teamwork and external end-user satisfaction

Change model
Change management, a critical component of 21st century business, can be achieved
successfully using the ADKAR procedure. Change often brings high levels of stress and
agitation to people. This method of implementing change in the corporate world often
eliminates many of the negative effects associated with new procedures.

Awareness. Make all level of staff aware why the upcoming change is needed. Change for
the sake of change is seldom useful. Nevertheless, change implemented to improve business
operations, stay ahead of your competition, and/or increase the bottom line, is not only wise,
but also necessary for success.
Desire. It is imperative that management encourage the desire of their employees to support
and actively participate in the forthcoming change, regardless of the immediate appeal or
flash of the new procedures or processes.
Knowledge. Management must provide the training and education to its staff of the methods
of changing to the new procedures, software, or organization. High levels of awareness and
desire will often be useless without the necessary knowledge of how to change to accomplish
the goals desired.
Ability. Along with the knowledge of how to affect successful change, everyone involved
needs to be given the specific training and information to achieve success in implementing
the details of the changes to be made. Onsite or Internet schooling is a critical component of
delivering the education the staff needs to make the changes successfully.
Reinforcement. Just as a good youth sports coach understands that young people can only
learn to hit a pitch, shoot a basketball, or kick a soccer ball properly through repetition and
reinforcement, the same procedure is critical to successful change management. Studies have
proven that a person that repeats a task for 21 days religiously will create a habit – whether it
is a good or bad habit. Reinforcing the new “habits” of the staff typically improve the success
of the changes made.

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Change management is a necessary – if not critical – component of 21st century business and
effective management. This relatively simple, logical method ofimplementing change
management has proven to work well. It is not surprising or mysterious. This model, if
applied completely, should result in a successful transition from former procedures to new
procedures without fail or regardless of the complexity of the change.

Concentrating on awareness, desire, and knowledge, like a solid foundation in a new

building, provides the base for the acceptance of change and the ability to successfully
implement the new process. With this positive base, when you provide the ability and follow
up with strong reinforcement, not only will the natural human reluctance to accept change be
eliminated, you will often enjoy a strong team effort to make the coming developments
proceed smoothly and very successfully. Senior management knows it is critical to
competitive victory. Implementing ADKAR properly often translates into change
management devoid of trauma, stress, and regression.[ CITATION Jef06 \l 1033 ]

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Consequences of change

Experience in Russia: MTS is having a huge experience in this field of business as they have
been showing their presence since 1993 and a great customer experience in Russia and in
other countries. Experience of MTS will help them to plan their strategy for Indian market
accordingly.

Pan India footprint: MTS is going to offer the most expansive roaming network. Letting you
roam anywhere in India with its Pan-India presence, and trot across the globe with
International Roaming spread in over the networks. The mobile services group provides
CDMA mobile services across India in 11 telecom circles.

Low tariff plan: MTS is coming with one of most cheapest tariffs in telecom sector by
providing ½ paisa second call and in some region plan gets even cheaper ½ paisa 2
seconds.MTS is also launching a very different and attractive scheme i.e..100000 minute free
talk time with every new connection. Innovative schemes: Sistema Shyam Teleservices have
launched a special offer in Rajasthan, wherein a MTS mobile customer can make unlimited
out going calls to any MTS mobile within the state for 999 days just by paying 999 rupees,
[ CITATION Mon09 \l 1033 ]

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Change agent

Change agent human ability or company body of things to gating a higher degree of outcome.
Beginning with the end in mind, the goal of a change agent is really to make changes. Result
of change agent work is to enable people to do more, or search a new and good perspective
on life.
Mr. Vsevolod Rozanov, President & CEO, Sistema Shyam TeleServices  he was playing our
role very wall. This processes in which he acted as.
Sistema (LSE: SSA) is the majority shareholder in this venture with Shyam Group being the
other partner. As our name suggests, we envisage optimizing this synergy of two players
from different countries with a clear cut focus on becoming a strong telecom player
in India. SSTS is an integral and important part of the overall Sistema global expansion
footprint.”[ CITATION Mon09 \l 1033 ]

Change resistance

There should act more transparent and groups when last change attempted for their progress.
Key words here are perceived and threat. The threat require not be actual or big for resistance
to happen. In its common warning it refers to change within company, while it also is found
in another place in other forms. Resistance is the equal of objections in sales and divergence
in common negotiations. Resistance can receive many forms, include actively or passively,
open or hidden, individual or structured, aggressive.

Sistema, is the largest private sector consumer services company in Russi. Both of company
environment and culture is very different so employees had culture environment problems in
starting of analyse. Because employees were not adapting a proper way new environmental
culture they were also facing leadership change problems; they were not accepted in proper
way new leadership starting of alliances\[ CITATION Dal10 \l 1033 ]

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Change during merger
Structure of alliances and principle
Sistema Shyam TeleServices (SSTS) is a joint venture between Sistema (LSE: SSA)
of Russia and Shyam Group of India.
 Sistema Shyam Tele Services (SSTL) is a joint venture company between Sistema
{LSE: SSA} of Russia and Shyam Group of India.
 Sistema is the majority share holder in this joint venture with a 73.71% equity stake,
along with the Shyam Group, holding a 23.79% stake and the rest 2.5% being public
partake
 SSTL has spectrum to provide mobile telephony services in all the 22 circles across
the country.
 Presently SSTL offers mobile telephony services in the Rajasthan, Tamil Nadu,
Kerala as well as the Kolkata circles.

Mr. Vsevolod Rozanov, President & CEO, Sistema Shyam TeleServices said, “Sistema (LSE:
SSA) is the majority shareholder in this venture with Shyam Group being the other partner.
As our name suggests, we envisage optimizing this synergy of two players from different
countries with a clear cut focus on becoming a strong telecom player in India. SSTS is an
integral and important part of the overall Sistema global expansion footprint.”
As part of its fast-paced growth plans as also to meet business requirements, SSTS shifted to
a new principal office in Gurgaon, which is in the Delhi-NCR region in India [ CITATION
Mon09 \l 1033 ]

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Effect after change

MTS brand was recognised as one of 100 most powerful brands, a leading global market
research and consulting firm.  The firm recently tied up with Mobile TeleSystems OJSC of
Russia to bring the telecom brand MTS to India. Sistema is the majority shareholder in this
joint venture with a 74 per cent equity stake, along with the Shyam Group, holding of 23.5
per cent state and the rest 2.5 per cent being public partake.

CHANGE OF COMPANY’S NAME

During the period under review, the name of the Company was changed from Shyam
Telelink Limited to Sistema Shyam TeleServices Limited with effect from 22nd Jan. 2009.
The name was changed in order to reflect the Joint venture between Sistema JSFC & Shyam
Group. This is reiterated that SISTEMA is one of the largest public diversified corporation
in Russia and the CIS, which manages fast growing companies operating in the consumer
services sector and SHYAM Group is a premier telecommunications equipment design &
manufacturing organization in India with an eye on the global markets, and also in order to
make all concerned aware of this JV.[ CITATION Dal10 \l 1033 ]

BRAND TRANSITION
Your Company had nurtured and cherished the Rainbow Brand in Rajasthan Circle and the
same had wide appeal. However, upon the new strategy of the Company of becoming a Pan
India Operator, a need was felt to bring Brand with Pan India appeal and global flavor.
Accordingly your Directors took a strategic decision and are delighted to inform you that
your Company has launched the globally acclaimed MTS brand in India and also concluded
the rebranding of Rajasthan from Rainbow to MTS without any noticeable disruption in sales
and smooth handover of Rainbow brand equity to MTS. The Directors are confident that this
global brand will be immensely successful in cutting a niche in the Indian telecom market

11
with its core instinctive value for customer focus. The strength of MTS brand has been
consistent and has been recognized internationally in both 2009 & 2008 in BRANDZ TM
as one of the top 100 most powerful brands, a ranking published by the Financial Times and
Milliward Brown, a leading global market research and consulting firm. It has been ranked at
the 71st position by BRANDZ. Global recognition of MTS brand strength is a testimony to
both the success of MTS and the growing interest in markets of operation of the Company.
Your Directors are confident that in the coming times our mobile telephony brand MTS will
continue to strengthen and become the one of the most loved Telecom Brands of India.
[ CITATION Dal10 \l 1033 ]

LAUNCH OF NEW CIRCLES

Your Directors take pride in reporting that during the period under review with active
support, hard work and dedication of employees at all spheres, the Company accomplished
fast track growth expanding its presence by launching its CDMA services in five new circles
viz. Tamil Nadu, Kerala, Kolkata, West Bengal and Bihar apart from Rajasthan. It is a matter
of immense pleasure that these launches have been achieved on schedule and this all
success could be possible due to the untiring efforts that our employees, vendors, business
partners, associates have all put in.

Rajsthan
Tamil Nadu & Kerala
Kolkata & West Bengal
Bihar
Delhi
Maharashtra
Karnataka
Kerala
Haryana
Jharkhand
Andhrapradesh

MARKET SCENARIO

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India is one of the most dynamic and fastest growing telecom markets in the world. Indian
mobile market has registered stupendous growth in the current fiscal year due to easy
availability of low cost devices, better network coverage, affordable services etc. As
demand boosters, progressive regulatory regime, network expansion by operators, reduction
in tariffs and cost of handsets, which essentially make the service affordable for the common
users, have supplemented the growth of the Indian telecom sector. In the past decade, the
growth in domestic telecom industry has largely been concentrated in the Metros and Class A
circles; still the coverage in the Class B and Class C cities is low at 15-25%. It’s worth noting
that 70% of the Indian population lives in rural areas, and, equally importantly, 64% of the
nation’s expenditure and 56% of its income comes from these villages– yet India’s rural tele-
density currently stands at less than 15%.
As far as year 2009 is concerned, there is not going to be any major slowdown in the telecom
business, as telecommunications tool s will help reduce expenditures for enterprises and
individuals. The industry is having 415.25 million subscribers as of May 2009 and likely to
add between 90-100 million new subscribers in residual part of 2009. The overall tele density
has reached 38.88% at the end of May 2009.
As per report of E&Y the total revenue of India’s telecommunications services industry is
projected to reach $54 billion in 2012. Total telecom subscriber base of India is estimated to
reach about 700 million by 2012, including about 650 million mobile phone users. This has
been due to the impact of economic reforms and pro-active policies of the Government.
The Indian Telecom sector has witnessed dramatic transformation on almost all the fronts.
[ CITATION MTS101 \l 1033 ]

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Conclusion

Both of company people with different functional specialties or multidisciplinary skills,

responsible for carrying out all phrases of a program or project from start to finish. Sistama
have very good technology and good experience in global market.

They work in different areas (place) and they are doing a fan ominous job in an organization.
Therefore the result is much better and accurate and as a Sistama-Shayam has a very good
reputation and opportunity in the Indian market company can be transformed without
destroying its identities; you should respect the dignities of the employees in the company

It has been ranked at the 71st position by BRANDZ. Global recognition of MTS brand
strength is a testimony to both the success of MTS and the growing interest in markets of
operation of the Company.

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Bibliography
Ajit, D., 2010. Rainbow is now MTS. Business Outlook.
Geoff, K., 2007. Change Management Definition and Solutions. [Online] Available at:
http://www.cio.com/article/102902/Change_Management_Definition_and_Solutions.
Ghosn Carlos, 2002. Saving Busniss Without Losing Company.
Hiatt, J.M., 2006. In Adkar: A Model for Change in Business, Government and Our Community.
illustrated ed. Prosci.
Moneycontrol.com, 2009. Shyam Telelink becomes Sistema Shyam TeleServices. [Online] Available
at: http://www.moneycontrol.com/news/business/shyam-telelink-becomes-sistema-shyam-
teleservices_381763.html.
MTS, 2010. About SSTL. [Online] Available at: http://www.mtsindia.in.
MTS, 2010. Annual Report 2010. [Online] Available at:
http://www.mtsindia.in/corporate/downloads/15th%20Annual%20Reports%20for%202009-10.pdf.
Stephen, W., 2008. Transformational Leadership Theory. [Online] Available at:
http://www.cio.com/article/102902/Change_Management_Definition_and_Solutions.

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