Internship Report

BUSINESS POLICY & STRATEGY

Pakistan International Airline

Pakistan International Airline

Pakistan International Airline

PRESENT TO,
Mrs. Shahnaz Gul

PRESENT BY
Miss Reema Javed
Roll No. 66
B.S Economics
Session 2010- 2014

Women University Multan

Pakistan International Airline

INTRODUCTION

Birth of a Nation, Birth of an Airline

Orient Airways takes to the skies

A New National Flag Carrier for Pakistan

PIAs First International service

Pakistan International Airline

Vision
PIAs vision is to be a World class
airline, meeting customer
expectations through excellent
services, on-time performance,
innovative products and absolute
safety

Pakistan International Airline

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
Pakistan International Airline


EXTERNAL ASSESSMENT

STEPEL Analysis

Porters Five Forces Model

BCG Matrix For PIA

SWOT Analysis

EFE Matrix

Competitive Profile Matrix

Pakistan International Airline

STEPEL ANALYSIS

Social Factors

Technological Factors

Ethnic traffic is present on PIA

Language barriers are not present
Act of patriotism

Supply chain is not present

Logistics issues are there

Economics Factors

Increase fuel prices increase tickets prices

Inflations creates problems

Pakistan International Airline

STEPEL ANALYSIS

Political Factors

Political instability
Political pressure

Environmental Factors
Fuel emission
Green fuel

Legal Factors

Liquor cant be served

Firing of employee (court issues)

Pakistan International Airline

Porters Five Forces Model

Threat of new entrant
high
Bargaining power of buyer
high
Bargaining power of supplier low
Substitutes products
high
Rivalry among existing firms high

Pakistan International Airline

Busines
s
growth
rate

PIA

PIA is in cash cow because high market

share & low growth rate
Pakistan International Airline

SWOT ANALYSIS
Strength
Point to point frequency (Lahore to
London)
High quality services
People oriented Organization (No language
problem)
Govt. sponsored organization
Perfect timings
Abroad Pakistanis prefer PIA (patriotism)
Healthy internal environment

Opportunities
Traffic ethnic
Better recruitment policy
Big markets available that are un served
Speed ex, courier service domestically can
be internationally
Low cost carriers
Better training programs
Have an opportunity to grow and expand
throughout the country

Pakistan International Airline

Weakness
Less international traffic
Liquor is not served so less traffic
Weak rewards & appraisal
Less effort in the field of marketing
High Fares
Over staffing (over burdened
employees)
Lack of professionalism
Low salary of engineers

Threats
All domestic and international carrier
Fluctuating petrol prices
Government changing
Barriers to investment for abroad due
to country conditions
Time taken by embassy to accept visa
Terrorism
Busy flight schedule
Open sky policy
High amount of loan

EFE MATRIX
Key External Factors

Weights Rating

Weighted
Score

Opportunities
1. Traffic ethnic
1. Big markets available that are un served
1. Speed ex, courier service domestically can be
internationally
1. Low cost carriers
1. Have an opportunity to grow and expand throughout
the country
Threats
1. All domestic and international carrier
1. Fluctuating petrol prices
1. Government changing
1. Barriers to investment for abroad due to country
conditions
1. Time taken by embassy to accept visa
1. Restricted vise system
1. Visa rejection cases
1. Economic slump
Total
Pakistan International Airline

0.13
0.09

4
3

0.52
0.27

0.05

0.10

0.04

0.08

0.09

0.36

0.08
0.03
0.05

4
3
2

0.32
0.09
0.10

0.07

0.14

0.08
0.07
0.10
0.12
1.00

2
2
3
3

0.16
0.14
0.30
0.36
2.80

Competitive Profile Matrix

PIA
Critical Success
Factors

Aero Asia

Weights Rating Score Rating

Shaheen

Score

Rating

Score

Service Quality

0.13

0.39

0.13

0.26

Market Share

0.15

0.45

0.15

0.15

Advertisement

0.07

0.14

0.07

0.07

Customer
Expectation

0.20

0.40

0.40

0.20

Safety

0.15

0.45

0.45

0.30

Reliability

0.10

0.30

0.20

0.10

Social
Responsibility

0.09

0.27

0.18

0.18

Patriotism

0.10

0.40

0.30

0.30

Total

1.00

Pakistan International Airline

2.80

1.88

1.56

CORE COMPETENCIES & KSF

CUSTOMER EXPECTATION
CONVENIENCE, CARE, AFFORDABILITY
SERVICES

INNOVATION

Loyalty & Consistence

SAFETY

Business Ethics, Accountability & Transparency

RELIABILITY

Respect for Individuals, Team work & Effective Communication

INTEGRITY

New Ideas, Products, Value Added Services

COHESIVENESS

Personalized, Courteous, Passionate

Passengers, Employees, Environment

SOCIAL RESPONSIBILITY

Welfare, Health & Education

Pakistan International Airline

STRATEGIES UNDERTAKEN

Corporate level strategy

Business Unit Level Strategy
Functional Level Strategy

Pakistan International Airline

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
Pakistan International Airline

MARKET SEGMENTATION

Demographic Segmentation

Geographic Segmentation

Domestic & International

Behavioural Segmentation

Income segmentation
Occupation segmentation

occasional segmentation

Psychographic Segmentation

Social Class
Pakistan International Airline

Targeting

PIA is targeting

INCOME LEVEL
High class
Middle class

ALL AGE GROUP

Pakistan International Airline

MARKETING MIX (7 Ps)

Product
Price
Promotion
Placement
People
Process
Physical evidence
Pakistan International Airline

MARKET SHARE

PIA

Other

67%

33%

International 30%

70%

Domestic

Pakistan International Airline

80
60
40
20
0

PIA
Other

Unique Selling Preposition:

(USPs)

POINT TO POINT FRQUENCY

They offer direct flights like Lahore
to London etc.

Pakistan International Airline

Financial ratio

Pakistan International Airline

OTHER STRATEGIES

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

Pakistan International Airline

CONTROL PROCEDURES

Marketing control
Quality control
Hr control
Finance control

Pakistan International Airline

PROBLEM SECTIONS

Main Problems According To Management

Main Problems According To Our Analysis
Sub Problems

Pakistan International Airline

Main Problems According To

Management

Political inference
Union inference
Bureaucratic structure:
Government hurdles

Pakistan International Airline

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
Pakistan International Airline

Sub problems

Sometimes, agency sale agents dont 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.

Pakistan International Airline

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

Pakistan International Airline

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

Pakistan International Airline

IMPLEMENTATION 2012

Retrenchment
Downsizing
Product Development
Decentralization

Pakistan International Airline

IMPLEMENTATION 2013

Privatization

Strengthen HR

Bring Revenue

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

Marketing Development

Pakistan International Airline

IMPLEMENTATION 2014

Financially Balanced
Promotional Plans
Agency Relationship
Media Planning
Total quality management
Research & development

Pakistan International Airline

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

Pakistan International Airline

Pakistan International Airline