PIA Project

Pakistan International Airline

BUSINESS POLICY & STRATEGY




PRESENTERSFAHAD IQBAL L1F07MBAM2175ZOHAIB BASHIR L1F07MBAM0085YASMEEN SADDIQ L1F07MBAM2226FATIMA AWAN L1F07MBAM0071AFZIA FAROOQ L1F07MBAM2256EHSAN AKHTAR L1F07MBAM0115AYESHA RAFIQUE L1F07MBAM0062

PRESENTERS TO,

MR. G. AHMED RANA Section “A”


Persons who assisted us in our

project MARKETING DEPARTMENT

MR. AmirManager Marketing &

Promotion

FINANCE DEPARTMENT MR. AtifAccounts Officer

HUMAN RESOURCE DEPARTMENTMR. Adnan

Officer HR

Special ThanksHR DEPARTMENT (Islamabad)

Mr. Shiraz AslamTermination Manager And Consultant PIA


INTRODUCTION

Birth of a Nation, Birth of an Airline

Orient Airways takes to the skies

A New National Flag Carrier for Pakistan

PIA’s First International service


Vision

“PIA’s vision is to be a World class airline, meeting customer

expectations through excellent services, on-time performance,

innovative products and absolute safety”


Mission

Employee team will contribute towards making PIA a global airline of choice

through:

Offering quality customer service & innovative product.

Using state-of-the-Art Technologies Ensuring cost effective measures in procurement

and operations Developing safety culture


EXTERNAL ASSESSMENT

STEPEL Analysis

Porter’s Five Forces Model

BCG Matrix For PIA

SWOT Analysis

EFE Matrix

Competitive Profile Matrix


STEPEL ANALYSIS Social Factors

Ethnic traffic is present on PIA Language barriers are not present Act of patriotism

Technological Factors Supply chain is not present Logistics issues are there

Economics Factors Increase fuel prices increase tickets prices Inflations creates problems


STEPEL ANALYSIS Political Factors

Political instabilityPolitical pressure

Environmental FactorsFuel emissionGreen fuel

Legal FactorsLiquor can’t be servedFiring of employee (court issues)


Porter’s Five Forces Model

Threat of new entrant highBargaining power of buyer highBargaining power of supplier lowSubstitutes products highRivalry among existing firmshigh


PIA is in cash cow because high market share & low growth rate

Business growth rate PIA


SWOT ANALYSIS

Strength WeaknessPoint to point frequency (Lahore to London)High quality services People oriented Organization (No language problem)Govt. sponsored organizationPerfect timingsAbroad Pakistanis prefer PIA (patriotism)Healthy internal environment

Less international trafficLiquor is not served so less trafficWeak rewards & appraisalLess effort in the field of marketingHigh FaresOver staffing (over burdened employees)Lack of professionalismLow salary of engineers

Opportunities ThreatsTraffic ethnicBetter recruitment policyBig markets available that are un servedSpeed ex, courier service domestically can be internationallyLow cost carriersBetter training programsHave an opportunity to grow and expand throughout the country

All domestic and international carrierFluctuating petrol pricesGovernment changingBarriers to investment for abroad due to country conditionsTime taken by embassy to accept visaTerrorism Busy flight scheduleOpen sky policyHigh amount of loan


EFE MATRIX

Key External Factors Weights RatingWeighted

Score

Opportunities

1. Traffic ethnic 0.13 4 0.521. Big markets available that are un served 0.09 3 0.271. Speed ex, courier service domestically can be internationally 0.05 2 0.101. Low cost carriers 0.04 2 0.081. Have an opportunity to grow and expand throughout the country 0.09 4 0.36

Threats

1. All domestic and international carrier 0.08 4 0.32

1. Fluctuating petrol prices 0.03 3 0.09

1. Government changing 0.05 2 0.101. Barriers to investment for abroad due to country conditions 0.07 2 0.141. Time taken by embassy to accept visa 0.08 2 0.16

1. Restricted vise system 0.07 2 0.14

1. Visa rejection cases 0.10 3 0.30

1. Economic slump 0.12 3 0.36

Total 1.00 2.80


Competitive Profile Matrix

PIA Aero Asia Shaheen

Critical Success Factors Weights Rating Score Rating Score Rating Score

Service Quality 0.13 3 0.39 1 0.13 2 0.26

Market Share 0.15 3 0.45 1 0.15 1 0.15

Advertisement 0.07 2 0.14 1 0.07 1 0.07

Customer Expectation 0.20 2 0.40 2 0.40 1 0.20

Safety 0.15 3 0.45 3 0.45 2 0.30

Reliability 0.10 3 0.30 2 0.20 1 0.10

Social Responsibility 0.09 3 0.27 2 0.18 2 0.18

Patriotism 0.10 4 0.40 3 0.30 3 0.30

Total 1.00 2.80 1.88 1.56


YASMEEN SADDIQUE


CORE COMPETENCIES & KSF CUSTOMER EXPECTATION CONVENIENCE, CARE, AFFORDABILITY SERVICES

Personalized, Courteous, Passionate INNOVATION

New Ideas, Products, Value Added Services COHESIVENESS

Respect for Individuals, Team work & Effective Communication INTEGRITY

Business Ethics, Accountability & Transparency RELIABILITY

Loyalty & Consistence SAFETY

Passengers, Employees, Environment SOCIAL RESPONSIBILITY

Welfare, Health & Education


STRATEGIES UNDERTAKEN

Corporate level strategy Business Unit Level Strategy Functional Level Strategy


MANAGEMENT STRATEGIES

Human Resource Management Proper recruitment process Training & development Specialized people are hired Head office in Karachi Proper organization structure

Administration Decision making Motivation and incentives


AFZIA FAROOQ


MARKET SEGMENTATION

Demographic Segmentation Income segmentation Occupation segmentation

Geographic Segmentation Domestic & International

Behavioural Segmentation occasional segmentation

Psychographic Segmentation Social Class


Targeting

PIA is targeting

INCOME LEVEL High class Middle class

ALL AGE GROUP


AHSAN AKHTAR


MARKETING MIX (7 P’s)

Product Price Promotion Placement People Process Physical evidence


MARKET SHARE

Domesti

c

Inte

rnatio

nal0

20406080

PIAOther

PIA Other

Domestic 67% 33%

International 30% 70%


Unique Selling Preposition: (USP’s)

POINT TO POINT FRQUENCYThey offer direct flights like

Lahore to London etc.


AYESHA RAFIQUE


Financial ratio


OTHER STRATEGIES

Procurement Commercial Supplies IT Products & Services Engineering Supplies R&D


CONTROL PROCEDURES

Marketing control Quality control Hr control Finance control


FATIMA AWAN


PROBLEM SECTIONS

Main Problems According To Management Main Problems According To Our Analysis Sub Problems


Main Problems According To Management

Political inference Union inference Bureaucratic structure: Government hurdles


Main Problems According To Our Analysis

Lack of coordination Lack of expertise Poor Management Centralized culture Out dated technology Weak HR department Lack of Check & Balance No delegation of authority Poor Strategic decisions Non profitable routes


Sub problems

Sometimes, agency sale agents don’t realize airport taxes which make complication in realization of revenue

At some areas, jobs are not clearly defined which effect efficiency and working relation of employees

Rate of motivational campaigns for employees very low For refund, customers have to come to the office which

create problem for them Over booking and mishandling also creates trouble Misappropriation of work is one of the main problems like

engineer work as accountant. This is because of political inference

Delay in computer up gradation also effect output.


ZOHAIB BASHIR


STRATEGIC ALTERNATIVES

Coordination of department and employees Strong Management De-Centralized Culture Up to Dated Technology strong HR Department proper of Check & Balance Delegation Of Authority Effective Strategic Decisions Minimize Government Interference Merit jobs Profitable Routes strong Marketing Strategy Up to date Aged Fleets Satisfactory Refund Process Required Employee Ratio Per Airplane Complaints Of Employees should Properly Facilitated


IMPLEMENTATION PLAN

PIA is no doubt in crises. There is need for a plan that help them out to overcome problems that PIA is facing in financial, marketing , human resource, quality control, research and development etc


IMPLEMENTATION 2010

Retrenchment Downsizing Product Development Decentralization


IMPLEMENTATION 2011 Privatization

Bring Revenue Strengthen HR

Performance appraisal Job description Job specification Job designs Job analysis New job opportunities Online job offering

Marketing Development


IMPLEMENTATION 2012 Financially Balanced Promotional Plans

Agency Relationship Media Planning Total quality management Research & development

CONCLUSION

No doubt PIA is still a strong Brand name in

Pakistan but due to some economic and other

variable issues PIA is facing crisis which is making

PIA down. But we all hope that in the next few

years, PIA will show up with a positive change



ANY QUESTION ????


Documents

PIA Project