PROJECT

STRATEGIC MANAGEMENT

GROUP MEMBERS:
 ADEEL AHMAD
 SOHAIL AMIN
 GHULAM SARWAR
 HAMZA KHADIM
 NAVEED KHAN
INDUSTRY NAME;
AIRLINE INDUSTRY
FIRM NAME:
PAKISTAN INTERNATIONAL AIRLINE (PIA)

SUBMITTED TO:
SIR MUBASHIR MEHNDI
CONTENTS
 INTODUCTION
 MISSION AND VISION STATEMENT
 PEST ANALYSIS
 EXTERNAL FACTORS EVALUATION(EFE)
 PORTER’S FIVE MODEL OF PIA
 INTERNAL FACTORS EVALUATION (IFE)
 BCG MATRIX
 GRAND STRATEGY MATRIX
INTRODUCTION:
Pakistan International Airlines commonly referred by PIA  is the national flag
carrier of Pakistan. Its main hub is Karachi while Lahore and Islamabad serve as
secondary hubs.
The airline was founded on 29 October 1946 as Orient Airways, initially based
in Calcutta, India, before shifting operations to the newly independent state of Pakistan
in 1947. It was nationalized and merged with other airlines in 1955,[7] and Pakistan
International Airlines Corporation came into existence. The airline commenced
international services in 1955 to London, via Cairo and Rome.[8] PIA was one of the first
Asian airlines to fly the Lockheed Super Constellation, and was the first non-communist
airline to fly to China PIA was the second Asian airline ( after Air India ) to acquire jet
aircraft by inducting a Boeing 707. In 2004, PIA became the launch customer of
the Boeing 777-200LR. Since 2016, PIA has been slated for privatization to shift
management to the private sector.
PIA is Pakistan's largest airline, and operates a fleet of more than 30 aircraft. The airline
operates scheduled services to 25 domestic destinations and 28 international
destinations across Asia, Europe, Middle East and North America along with 19 interline
destinations. It operates nearly 100 flights daily. The airline employed nearly 14,000
people in 2015.

SLOGAN : GREAT PEOPLE TO FLY WITH

COLOUR: green national flag on aircraft tail
HUBS : JINNAH INTERNATIONAL AIRPORT ALLAMA IQBAL
INTERNATIONAL AIRPORT HEADQUATERS: KARACHI ,PAKISTAN
Company Name :Pakistan International Airline
Nature of Business :Airline Service
Target group :middle class/traders/businessmen
 positioning : Pakistan's largest airline
VISION STATEMENT
PIA’s vision is to be world class airline . Meeting customer
expectations through excellent services , on- time performance ,
innovative products and absolute safety .

MISSION STATEMENT
‘’Toset the standard of excellence for flying across the globe by
always striving hard to provide unmatched services to all our
prestige guests when it comes to safety, entertainment and
punctuality and the most state of the art airplanes gives us an
extra edge to meet our customer needs consistently and to grow
more’’

PEST ANALYSIS
Pest analysis is a business measurement tool .
These four factors greatly affect the operational activities of
PIAC.
POTLITICAL ANALYSIS
 Political Factor greatly affects PIAC reason is being held by government in
large share.
 Political distress in our neighboring countries affect our airline industry.

 Change of government results in change of business owners.

 Political stability provide more investment to the PIAC.
Political
instability reduces the number of visitors .
Increase in number of people immigrating to developed countries
ECONOMIC ANALYSIS
 PIAC is mostly dependent on customer revenue hence economic conditions of
market is very important .
 Decrease in income of people is decreasing the buying power which results in
reduction of number of customers.
 Increase in fuel prices , increases ticket prices .

SOCIAL ANALYSIS
 Explosive elevation in youth's education level.
 Increase in number of people for Hajj and Umrah.
 Instability in Pakistan.
 Prolong method of verification and checking in PIAC.
 Pakistani youth are more attracted towards entertainment in flight.
 Act of patriotism to select national airline for flight.

TECNOLOGICAL ANALYSIS
 Introduction of viper jet.
 Introduction of modern railway tracks.
 Air blue buying 6 new air buses.
 Boeing planes are fuel guzzlers.
 Rebate on internet purchases.
 America developing Air highways.

 Business plus lounges are equipped with the latest magazines ,

newspapers, internet access, cable television and snack
.  Introduction of holographic calling
 Use of fibre optic cable to stay connected with the rest of departments
of airline.
 HSE (health safety and environment) services provide help in the safety
of health of passengers.
PORTER’S FIVE MODEL OF PIA

EXTERNAL FACTORS ANALYSIS

THE EXTERNAL FACTORS EVALUATION
SHOWN BELOW:
INTERNAL FACTORS EVALUATION
CURRENT INFORMATION:

1.ACCORDING TO CEO OF PIA:

Air Marshal Arshad Malik has taken charge of Pakistan International
Airlines (PIA) as the president and Chief Executive Officer, said an
official statement on Friday.

After assuming his new responsibilities, Malik pledged there will be

no retrenchment in PIA, saying all employees to work in harmony to
bring back the past glory of the airline.

Malik said he is grateful to Allah Almighty for giving him the

opportunity to serve the nation in the new arena. He said he is also
grateful to the government for showing confidence in him for the
revival and turnaround of the airline.

He said that he was well aware of the problems, constraints and

challenges being faced by the airline, but he will do his best to
overcome them.

The CEO added that though the airline is facing financial and
administrative problems, there is no doubt it will once again attain
its past glory.

PIA debt hits Rs406b, running only on govt support: report

He noted that the way forward is difficult, but is certainly achievable.
All PIA employees will have to put in hard work with utmost sincerity
and dedication to bring back the past glory of the national flag carrier
within the shortest possible time.

Malik detailed the basic points for PIA’s betterment, as improving

the overall flight regularity, maintaining punctuality with improved
services for passengers, and increasing the revenue of the airline
aimed at profitability so that it is able to payout its liabilities.

The present system of the airline, he added, will be brought at par

with the best standards and practices in the aviation industry. He
said that PIA human resources is a national asset and there will be no
retrenchment in the airline. However, he vowed not to tolerate those
found trying to tarnish the image of the airline or the country.

He termed it the duty and responsibility of everyone in the airline to

work for its betterment, adding there is no doubt it will achieve great
success soon.

The CEO, the communique added, has served more than 40 years
with Pakistan Air Force and rose to the rank of Air Marshal. Prior to
joining PIA, he was serving as Vice Chief of the Air staff.

He has undertaken a number of management and leadership courses

both inland and abroad. He is a graduate of National Defence
University (NDU) and qualified in Air Command and Staff Course
from the US.

REFERENCE: THIS MATERIAL IS FROM THE BELOW SITE,

(https://tribune.com.pk/story/1834650/1-air-marshal-arshad-
malik-takes-charge-pia-ceo/ )

2.Pakistan International Airlines (PIA), the country’s cash-strapped

national carrier, says it plans to boost the number of flights it operates to Saudi
Arabia to more than 60 a week.
The airline, which is struggling servicing its debt, is looking to business growth in
the Kingdom, with routes to the Kingdom its largest source of revenues.
“PIA has an aggressive plan to boost its presence in Saudi Arabia. We will be
increasing our flights to more than 60 per week and opening new destinations,”
Musharraf Rasool Cyan, the president and CEO of PIA, told Arab News.

He said Saudi Arabia has always been very important to the airline, which
currently has 55 weekly flights to the Kingdom. It flies to four destinations, with
28 flights a week to Jeddah, 10 to Dammam, nine to Madinah and eight to Riyadh.
He said Saudi Arabia has always been very important to the airline, which
currently has 55 weekly flights to the Kingdom. It flies to four destinations, with
28 flights a week to Jeddah, 10 to Dammam, nine to Madinah and eight to Riyadh.

REFERENCE:

(http://www.arabnews.com/node/1241696/business-economy )

3. PIA is planning to introduce new destinations and increase its flights to

Saudi Arabia and China. The decision has been taken after comprehensive analysis
and detailed evaluation of existing network, said PIA spokesperson.

He said we have prepared a detailed business plan with focus on reduction in

operating losses by minimizing the cost structure and optimization of revenues as a
consequence of improvement in overall product and customer experience.

The spokesperson said that soon flights to Jeddah will be increased from 28 to 31
per week and Medina from 09 to 10 per week. Keeping in view the future potential of
CPEC, flights to Beijing are also being doubled from 02 to 04 per week with
operation from Islamabad and Karachi. Similarly capacity on Domestic routes is also
being increased to provide better connectivity. New destinations, Guangzhou in
China, Al-Qasim in Saudi Arabia and Mashad for Zaireen will also be opened.

In this regard the interiors of all existing Boeing 777 fleet are being upgraded along
with state of the art in-flight entertainment system. New uniform designed for cabin
crew has been widely appreciated and this will be followed by new uniform for
ground handling staff along with ongoing extensive training on Customer handling
skills.
The spokesperson said that in line with industry practice, the entire network structure
is being revamped with expansion on existing potential routes, opening up new
destinations and rationalization of capacity on loss making routes. Passengers of
flights for Kuwait and Salalah (Oman) which will be temporarily suspended will be re-
accommodated through convenient alternatives. However, the resumption of
operation will be considered based upon commercial merit and viability.

REFERENCE:

(https://nation.com.pk/27-Jan-2018/pia-to-introduce-new-destinations-
increase-flights)

GRAND STRATEGY MATRIX

Q-II R.M.G Q-I

PRODUCT DEVELOPMENT PRODUCT DEVELOPMENT

MARKET DEVELOPMENT MARKET PENETRATION

DIVESTITURE FORWARD INTEGRATION

W.C.P S.C.P

CONGLOMERATE DIVERSIFICATION

Q-III S.M.G Q-IV