Pakistan International Airline
Internship Report BUSINESS POLICY & STRATEGY
Pakistan International Airline
Pakistan International Airline
Pakistan International Airline
PRESENT BY Miss Reema Javed Roll No. 66B.S Economics Session 2010- 2014
PRESENT TO,
Mrs. Shahnaz Gul
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
PIA’s First International service
Pakistan International Airline
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”
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
Porter’s Five Forces Model
BCG Matrix For PIA
SWOT Analysis
EFE Matrix
Competitive Profile Matrix
Pakistan International Airline
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
Pakistan International Airline
STEPEL ANALYSIS Political Factors
Political instabilityPolitical pressure
Environmental FactorsFuel emissionGreen fuel
Legal FactorsLiquor can’t be servedFiring of employee (court issues)
Pakistan International Airline
Porter’s Five Forces Model
Threat of new entrant highBargaining power of buyer highBargaining power of supplier lowSubstitutes products highRivalry among existing firmshigh
Pakistan International Airline
PIA is in cash cow because high market share & low growth rate
Business growth rate PIA
Pakistan International Airline
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
Pakistan International Airline
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
Pakistan International Airline
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
Pakistan International Airline
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
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 Income segmentation Occupation segmentation
Geographic Segmentation Domestic & International
Behavioural 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 P’s)
Product Price Promotion Placement People Process Physical evidence
Pakistan International Airline
MARKET SHARE
Domesti
c
Inte
rnatio
nal0
20406080
PIAOther
PIA Other
Domestic 67% 33%
International 30% 70%
Pakistan International Airline
Unique Selling Preposition: (USP’s)
POINT TO POINT FRQUENCYThey 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 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.
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
Bring Revenue Strengthen HR
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
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