Assignment Regulations:
· This assignment is an individual assignment.
· All students are encouraged to use their own word.
· File should be WORD
· Student must apply Harvard Referencing Style within their reports.
· A mark of zero will be given for any submission that includes copying from other resource without referencing it
The Answer should be 3- 4 pages in length including the cover and appendices, with 1" margins on all sides, double-spacing, and 12 point font. The cover of the answer should include title, course code and name, your full name, and your University id number.
The Answer must follow the outline points below:
· 3PL
· Their Main functions
· Any local example
· Reasons with suitable Examples
· Reference
Logistics ManagementASSIGNMENT -2
Critical Thinking
The purpose of this assignment is to identify and apply Logistics and Supply Chain Management concepts/tools to suggest logistics performance priorities. To this purpose, you should review about these companies through secondary available information. Think about how you can apply the concepts/tools that you learned in this course.
Logistics outsourcing has attracted the attention of lots of industrialist in recent years. As firms enlarge their global reach, they often find that they need to reconsider their internal capabilities in managing the global supply chain. (Trent & Roberts, 2009) commented that many cases firms decide to outsource this function in whole or in part to agents or 3PL (third party logistics) firms.
Using this concept of 3PL you should answer the following questions by taking any Saudi company or any Multinational company.
Question:
1. What are 3PL firms?
2. Assess the reasons for using third party logistics service in Saudi Arabia? Using examples, Explain 3. Reasons why third party logistics arrangement are not always successful?
May 2018
STC Profile
‹#›
Strictly Confidential
1
Part 1: The Company STC
Part 2: STC’s Financial Strength
AGENDA
‹#›
Strictly Confidential
2
STC at a glance
STC is the leading integrated telecommunications provider in KSA and the region as per market capitalization, with international presence in Middle East and Asia
Highlights
STC ownership
(%)
Majority shareholder is one of the world’s largest sovereign wealth funds
An integrated provider of fixed and mobile voice and data, wholesale and IT services
Home market leader for fixed, mobile and data in consumer and enterprise segments
STC has presence in 5 countries through controlling and minority stakes
Annual revenues of over SAR 50 billion (2017), directly serving over 25 million mobile subscribers across its operations
Biggest telecom group in MENA region by market cap with current market capitalization of 164 Bn SAR
Public Investment Fund
Public Pension
General Organization for Social Insurance
Public Float
Source: STC website Fact sheet
‹#›
Strictly Confidential
3
Sales
Slice 1Slice 2Slice 3Slice 40.77.0000000000000007E-26.7.
Assignment Regulations· This assignment is an individual assignme.docx
1. Assignment Regulations:
· This assignment is an individual assignment.
· All students are encouraged to use their own word.
· File should be WORD
· Student must apply Harvard Referencing Style within their
reports.
· A mark of zero will be given for any submission that includes
copying from other resource without referencing it
The Answer should be 3- 4 pages in length including the cover
and appendices, with 1" margins on all sides, double-spacing,
and 12 point font. The cover of the answer should include title,
course code and name, your full name, and your University id
number.
The Answer must follow the outline points below:
· 3PL
· Their Main functions
· Any local example
· Reasons with suitable Examples
· Reference
Logistics ManagementASSIGNMENT -2
Critical Thinking
The purpose of this assignment is to identify and apply
Logistics and Supply Chain Management concepts/tools to
suggest logistics performance priorities. To this purpose, you
should review about these companies through secondary
available information. Think about how you can apply the
concepts/tools that you learned in this course.
Logistics outsourcing has attracted the attention of lots of
industrialist in recent years. As firms enlarge their global reach,
they often find that they need to reconsider their internal
capabilities in managing the global supply chain. (Trent &
2. Roberts, 2009) commented that many cases firms decide to
outsource this function in whole or in part to agents or 3PL
(third party logistics) firms.
Using this concept of 3PL you should answer the following
questions by taking any Saudi company or any Multinational
company.
Question:
1. What are 3PL firms?
2. Assess the reasons for using third party logistics service in
Saudi Arabia? Using examples, Explain 3. Reasons why third
party logistics arrangement are not always successful?
May 2018
STC Profile
‹#›
Strictly Confidential
1
3. Part 1: The Company STC
Part 2: STC’s Financial Strength
AGENDA
‹#›
Strictly Confidential
2
STC at a glance
STC is the leading integrated telecommunications provider in
KSA and the region as per market capitalization, with
international presence in Middle East and Asia
Highlights
STC ownership
(%)
Majority shareholder is one of the world’s largest sovereign
wealth funds
An integrated provider of fixed and mobile voice and data,
wholesale and IT services
Home market leader for fixed, mobile and data in consumer and
enterprise segments
STC has presence in 5 countries through controlling and
minority stakes
Annual revenues of over SAR 50 billion (2017), directly serving
over 25 million mobile subscribers across its operations
Biggest telecom group in MENA region by market cap with
4. current market capitalization of 164 Bn SAR
Public Investment Fund
Public Pension
General Organization for Social Insurance
Public Float
Source: STC website Fact sheet
‹#›
Strictly Confidential
3
Sales
Slice 1Slice 2Slice 3Slice 40.77.0000000000000007E-
26.7699999999999996E-20.1623
Stc Contribution to ksa
STC as a group is one of the major contributors to the country’s
economic and social development
4G 86%
3G 97%
Fast network provider
5. 3.8%
GDP contributor
ICT contribution in KSA GDP
+10
Digital KSA enabler
KSA
e-intensity rank improvement3
+170K
SME enabler
SME’s powered by STC2
Coverage1
SR 166bn
Market cap4
Value delivery
SR 8bn
Dividends paid 2017
Double the amount paid in 2013
1. % of the population with coverage 2. STC SME market
survey 3. Improvement by 10 positions over the period of 2010-
2015 (out of 73 countries, from 46 to 36); The e-Intensity Index
measures how strongly a country has embraced the Internet
through its broad based measure of its depth & reach relative to
other countries 4. Market cap 7/5/2018
Source: Middle East Digitization Index, e-Intensity Index
‹#›
6. Strictly Confidential
4
Acquire 25% stake in Malaysia's largest mobile operator, Maxis
Stc History
STC is celebrating the 20th anniversary in 2018 since its
corporatization
Telecom Bylaw
2002
Liberalization of ISP sector
1999
Award of Second Mobile License
Award of Two DSP Licenses
2004
Telecom Act
Establishment of Regulatory Authority
Corporatization of STC
1998
Liberalization of VSAT
Entry of Third Mobile Operator
2008
2007
2006
WTO Membership
2005
8. 2015
2018
Unified Licenses
Finger Print Regulation
VOIP ban lifted
2016
Saudi 2030 vision
Entry of MVNO Operators
Launched STC academy
2017
STC wins Kuwait third mobile license
STC acquires Bravo, niche push-to-talk (PTT) mobile operator
Acquiring 100% of Awal Net Co
STC establishes ME’s largest venture capital fund $500m STV
KSA telecom market Timeline and Milestones
Acuire 35% stake in Oger Telecom
STC wins Bahrain third mobile license
Bahrain
100%
9. Kuwait
51.8%
STC to invest $50m VC fund
STC launches accelerator and incubator InspirU
‹#›
Strictly Confidential
5
Stc investments
STC has multiple operations and investments across several
regions and along the value chain
10.
11.
12. 35%
51.8%
100%
25%
100%
STC
Solution
s – 100%
Cloud and ICT
STC Specialized – 100%
PTT Mobile Operator
STC Channels – 100%
Telco, Airtime and SIM Card distribution
Intigral – 100%
VAS and Content/Media
Aqalat – 100%
Real Estate
13. ArabSat – 36.66%
Satellite and Broadcasting
Arab Submarine Cable – 50%
Submarine Cables
CCC – 49%
Call Centre
Multiple investments through STV
CONTROLLED
NON-CONTROLLED
Kuwait
Bahrain
Indirect stake*
Direct stake
STC’s international presence
Other investments
* STC is a shareholder of OTL (for TT) and BGSM (for Maxis)
15. ‹#›
Strictly Confidential
7
STC ksa Culture
STC has been reshaping its culture over the past years with six
main values, core to enabling our vision of becoming a world-
class digital leader
“We are a world-class digital leader providing innovative
services and platforms to our customers and enabling the digital
transformation of the MENA region”
Our vision
Listens to customers, seeks data to understand and serve their
needs
Always links daily work priorities and decisions to how they
will impact the customer most
Gets it right first time, on time, exceeding customer
16. expectations
Has a can do attitude, values speed of action, never stops
learning
Makes clear decisions and takes ownership for results without
blame
Delegates to and empowers others
Delivers on promises and follows up
Encourages two way communication and speaks own mind
Evaluates, promotes and compensates transparently and merit
based only
Acts with integrity-never uses one’s job for unjustified gain for
self, family or friends
Responsive to
STC’s priorities
Not siloed – Works with others up/down and across STC to
deliver
Cares for, grows and gives structured feedback to others
Tracks competition, latest global trends and brings the best
ideas to market
Abides by procedures yet continually takes action to simplify
and improve them
Takes calculated risks and learns from mistakes
CUSTOMER FIRST
INNOVATION
17. LEAD WITH AGILITY
BUILD TRUST
ONE STC
We serve our customers passionately – External and internal
I capture the new
and deliver it
to our markets
I am an agile leader
who performs
in a changing world
I say what I think,
do what I say
and do it well
We collaborate
to deliver
STC’s vision
BEHAVIORS
18.
19. ‹#›
Strictly Confidential
8
Part 1: STC Strategic Positioning
The Company STC
STC’s Financial Strength
Opportunities & Challenges
Part 2: Introduction to ‘DARE’ Strategy
20. Part 3: Main Business Units
Part 4: STC Financials
AGENDA
‹#›
Strictly Confidential
9
STC Group 5 years Performance trend
STC was able to grow across all key metrices with very healthy
EBITDA & NI margins and a balance sheet able to fuel growth
…
Source: STC Financial statements
GROUP
x%
21. CAGR
+3%
+3%
+1%
Ability to fuel growth
STC currently has healthy balance sheet with more than SR14
billion cash
Similarly, STC’s Debt to EBITDA ratio is low, standing at 0.3
1
2
Group Revenues
(SR billion)
Group EBITDA
(SR billion)
Group Net income
(SR billion)
23. STC group financial health global ranking
Today, STC ranks 26th among the largest global telcos in terms
of revenues
1
5
10
15
20
25
30
35
40
26
Regional peers
Source: Operators’ annual reports
GROUP
Global ranking by 2017 revenues
(USD Bn)