Market of Cellular Operators: Analysis

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«Unitel» Limited Liability Company
Content Page
Section A – External business environment2
Political environment2
Privatization Policy2
Legal control and protection2
Economical environment3
Gross Domestic Production3
Unemployment rate4
Inflation rate4
Currency Exchange rate5
Market share6
Socio-cultural environment7
Population break-down7
Technological environment8
Section B – Internal organization of the company9
Internal organization9
Organizational structure9
The Headquarters in Tashkent9
Beeline in Uzbekistan10
Ownership Structure11
The theory of the firm:12
In the short run12
In the long run12
Coordination mechanisms12
Principal-agent problem13
Decision making process13

The objective of this report is to analyze the market of cellular operators. External business environment is first examined in order to find out general overview of an Uzbek economy as a whole. The second part of the report is devoted to internal organization of the company. The scope of the research conducted is limited by the headquarters of «Unitel» LLC (under “Beeline” brand-name). Examining the company under certain internal organizational factors such as coordination mechanisms or principal-agent problem, the subject of interest was specifically the main office of «Unitel» LLC. Finally, all determined features of the market and the company are summarized at the end of each section and most applicable suggestions are provided to improve the performance of the company. Section A – External business environment

Political environment
From the early times of independency, one of the main directions of Uzbek government was to improve and develop fair and competition based business environment. The main emphasis was given to build a clear legal framework, attract foreign investors, and encourage local business to participate international trade. To achieve these goals the government implemented several political approaches: Privatization Policy

Uzbek government demonstrated its investment and business-friendly political approach by launching privatization and denationalization policy. The denationalization process of state-owned companies is stimulated and controlled by the Law on Denationalization and Privatization, dated 19 November 1991. Firstly, the progress of the process was not as effective as it is expected. Only physical facilities (e.g. apartments) and small firms (e.g. shops) were privatized. The active role of government in privatization is felt in 1999, and the government played an active role in this direction by passing several Government Resolutions from 2005 till 2007 (e.g. Resolution by the President of the Republic of Uzbekistan dated July 20, 2007 No PP-672) Legal control and protection

The basis legal framework for businesses in Uzbekistan is protected by several law systems. Firstly, following legal entities could be observed in Uzbekistan: * Joint stock companies;
* Limited liability companies and additional liability companies; * General business partnership and limited business partnerships; * Production cooperatives;
* Private enterprises and unitary (state) enterprises
Above mentioned legal entities is protected and controlled by the following Laws: * ‘On Joint Stock Companies and Protection of Shareholders’ dated 26 April 1996 (amended); * ‘On Limited Liability and Additional Liability Companies’ dated 6 December 2001 (amended); * ‘On Private Enterprise’ dated 11 December 2003 (amended); * and others

By providing precise legal system and transparent privatization policy, Uzbek government facilitates the development of this sector. Economical environment
Gross Domestic Production
Considering GDP as the main indicator of economy, we can see below that in recent years the growth of the...
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