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
