1. 1.

1 6/21/2010 Submitted by:  Salman Zafar  Ali Mohsin  Abdul Wahab Qadir LSE
FINAL REPORT
2. 2. 2 Executive summary First of all we formulate strategy for LSE with the help of
internal and external audit. After that extract the information from stage 1 The Input
Stage and stage 2 the matching stage. The input stage is based on EFE Matrix, IFE
Matrix and stage 2 made up of SWOT matrix, SPACE Matrix, IE Matrix, Grand Strategy
Matrix. The QSPM combine the intuitive thinking of managers with the analytical
process to decide the best strategy for the organization success. So, after matching stage
we have proposed here three alternative strategies Product development, Market
Penetration and Related diversification strategies. We focus on market penetration
strategy in which they need to increase their advertisement in order to cater to those who
are not exposing to LSE yet. And in this way more talented students will become the part
of LSE and create more market for LSE. After defining your line of attack you must use
the information you have gathered to decide whether this strategy will achieve the
objective of making your university competitive in the marketplace. Thus, market
penetration and product development are the right line of attack which able to make LSE
Giant in the market.
3. 3. 3 Table of Contents Introduction and
History.....................................................................................................................5 Actual
mission and vision
statement....................................................................................................5 Proposed
Mission Statement...............................................................................................................6
ProposedVision
Statement.................................................................................................................7
External
Audit.....................................................................................................................................
8
ECONOMIC..........................................................................................................................
...........9 Social, cultural, demographic,
andenvironmental...........................................................................10 TECHNOLOGICAL
FORCES..............................................................................................................11
Political, Governmental and
legal...................................................................................................11 Competitive
Forces.......................................................................................................................12
Rivalry among Competing
Firms.................................................................................................12 Potential Entry of
New competitors............................................................................................13 Potential
Development of Substitute Product .............................................................................13
Bargaining Power of
Suppliers....................................................................................................14 Bargaining
Power of customers..................................................................................................16
Internal
Audit...................................................................................................................................1
7 Management at Lahore School of
Economics..................................................................................18 Bachelors and Master
Programs ....................................................................................................19 Coordination
 of the Academic Programs ........................................................................................19
Marketing
Department .................................................................................................................20
Research and
Development...........................................................................................................21
Finance /
Accounting.....................................................................................................................23
Production and
Operation.............................................................................................................24 Quality
Assurance Department......................................................................................................24
Management information system
(MIS).........................................................................................25 Strategies in
action .......................................................................................................................26
Current strategies followed by the
institution.............................................................................26 Feed back on student
opinion........................................................................................................27 Questionnaire
Analysis ..............................................................................................................27
Graphs....................................................................................................................................
..28 EFE
MATRIX................................................................................................................................
......37
4. 4. 4 IFE
MATRIX................................................................................................................................
.......38 SWOT
Strategies...............................................................................................................................
39 IE
Matrix ....................................................................................................................................
......41 Grand Strategy
Matrix.......................................................................................................................42
Quantitative Strategic planning
Matrix...............................................................................................44
Conclusion ............................................................................................................................
...........46
Pictures...................................................................................................................................
.........47
5. 5. 5 Introductionand History The Lahore School is one of the most highly ranked
Pakistani universities for a business education along with LUMS and IBA, according to
the Higher Education Commission of Pakistan. The Lahore school of economics
(established 1993) is one Pakistan’s leading centers of learning for teaching and research
in economics, finance and business administration. The Lahore school was granted a
charter in January, 1997 by an act of the provincial assembly of the Punjab. The Lahore
school of economics act 1997 (Act 2 of1997). The charter vests the powers of an
independent degree granting institution to The Lahore School. The Lahore school has
both undergraduate and graduate programs in economics, business administration and
finance. Its postgraduate program leading to the MPhil and PhD degree is administered
through the Lahore schools centre for research in economics and business (CREB). The
 student body and faculty are body national and international. The Lahore School of
Economics has two campuses: the Main campus and the City campus. The Main campus,
spread over 35 acres, is located on the intersection of DHA Phase VI, Main Boulevard
and Burki Road. The City campus is located in Gulberg near the central Liberty Market
area. The Lahore School's Main campus hosts a variety of facilities to cater to the student
body. The campus is equipped with two libraries and three computer labs. The university
also houses a cricket, football, hockey grounds along with two volleyball courts. The
university's media centre houses an amazing cinema and studio. The schools have also
dramatics; adventure and debating society. The campuses have a girl’s hostel and mess.
Campuses have three cafeterias with a good variety of food and beverages. Actual
missionand visionstatement Unfortunately LSE have no vision statement confirmed by
Miss. Romana and the mission statement is as following: Missionstatement The training
of young Pakistanis as professional economists, finance managers, accountants, financial
analysts, bankers and business executives and Undertaking research in economics,
6. 6. 6 management, finance and banking to further deepen the understanding of major
economic facts, issues and policies. Grid This mission statement includes the following
mission statement components:  Customers  Products Analysis: As the mission
statement of Lahore School of Economics is not motivating at all. Just telling about the
customers and products so, we develop a mission statement with the help of mission
statement components which includes all the essential components like customers,
products and services, philosophy, self concept, concern for public image and concern for
employees. ProposedMissionStatement Lahore school of Economics transform lives,
nurture the inspiration and serves society, by enabling students to develop knowledge and
skills necessary to achieve to their professional goals, improve the efficiency of their
organizations and become the excellent business person. We as a non-profit organization
will achieve academic excellence through teaching, research, and creativity and student
engagement. We are establishing a working environment that will attract and hold highly
professional teachers who will establish and polish the business skills of students. Grid
Our mission statement includes the following mission statement components: 
Customers  Products and services  Philosophy  Self Concept  Concern for Growth 
Concern fore Public Image
7. 7. 7  And Concern for Employees Vision We made a vision statement of Lahore School
of Economics which represents what Lahore School of Economics aims to achieve.
ProposedVisionStatement LSE’s Vision is to be a leader among business universities by
providing world class education. Analysis: Vision Statement shows Lahore School of
Economics focus to become a leader among business universities and have a very broad
vision in terms of providing world class education.
8. 8. 8 External Audit No organization can exist in a vacuum; each is set in a particular
country and region to which it is inextricably linked. An analysis of the external
environment is an attempt to understand the forces outside organizational boundaries that
are helping to shape the organization. In this way an institution can identify opportunities
around it and the threats it has to avoid .The external forces can be divided in to. 1.
Economic 2. Social, cultural, demographic, and environmental 3. Political, Governmental
and legal 4. Technological 5. Competitive
9. 9. 9 So now let’s discuss the external environment in which LAHORE SCHOOL OF
ECONOMICS is operating and the impact of the above external forces on the it’s
 strategic management. ECONOMIC The economic environments have direct impact on
potential attractiveness of various strategies. Pakistan’s economic environment is effected
by intensification of war on terror, deepening of the global economic crisis in to the
domestic economy, lack of foreign investment, double digit inflation, widening fiscal
deficit, negative balance of payment, rising unemployment, rising poverty, rising interest
rates, depreciating local currency and therefore declining purchasing power. The key
strengths that LSE have in this worsening environment is the growing demand for
business education and the availability of funds for capital expansion and it does not need
loan from the banks and it has never got defaulted, according to the Chief Financial
Officer. This economic environment may be threatening to LSE with respect to the level
of disposable income, the changing consumption patterns and the double digit inflation as
it is making difficult for an individual to bear the expenses of education and the cost of
traveling to the Barki campus. It is difficult for the talented students from the other cities
to afford LSE therefore they are now opting for other growing business institutes in
Pakistan.
10. 10. 10 Social, cultural, demographic, and environmental Social, cultural, demographic,
and environmental forces have impact upon the operations of LSE. Over the past few
years we have seen a change in the attitude of students towards education, LSE offers
diverse degrees to students belonging from different cultural back grounds, growing
interest of business education in Pakistan is a plus for LSE .More over now days students
want a modern system of educations that meets the international standards with a social,
interactive and friendly study environment and this is also strength for LSE but there is
also an increasing trend of student immigration which can be a threat to LSE. Only the
SCE A or people with high income bracket can afford to study in LSE as a result most of
the talented but poor students shift to the other business schools in Pakistan therefore
leaving an impression that admission in LSE is not merit based therefore a threat to LSE.
The school is also facing some sort of cultural threat due to which LSE has made
compulsory a formal dress code and terminated the bus service. Generally talking about
the environmental conditions in Pakistan we witness an increasing air, water, sound
pollution within the city. There is traffic congestion on the roads, dust and pollen flying
everywhere but this threat is limited to the business institutions inside the city where LSE
has pollution free campus on the green outskirts of Lahore and is not directly subjected to
any kind of environmental threat.
11. 11. 11 TECHNOLOGICAL FORCES Educational technology, especially computers and
computer- related peripherals, have grown tremendously and have permeated all areas of
our lives. It is incomprehensible that anyone today would argue that educational institutes
use less technology. The Internet is becoming an increasingly vital tool in our
information society. Unfortunately LSE is not a WIFI campus as compared to LUMS and
FC College. The internet service in LSE is very slow and most of the time unavailable
therefore reflecting a technological threat to LSE. Generally talking about the law and
order situation in Pakistan all the institutions are under threat of a terror attack there fore
and LSE still lack the technology necessary to avoid terror attacks like the car scanners,
bomb detectors etc. Political, Governmental and legal Political, Governmental and legal
forces do effect the operations of an institution .LSE has to follow the changing rules of
HEC as per the legal and Governmental requirements ,like recently HEC has made the
thesis necessary for the M PHILL and MSC students in order to get the degree therefore
 adjusting to these changing rules of HEC can be threatening. More over as we are aware
of the fact that the country is suffering from terrorism and bomb blasts so LSE is has to
make strict changes in the security as per the Government requirement. With respect to
political forces many institutions have political student unions like Punjab more and these
unions really disturb the study environment where as LSE has the strength that it never
had any sort of student unions.
12. 12. 12 Competitive Forces We do competitive force analysis of Lahore school of
Economics with the help of Porter’s Five Force Model which are as following:
RivalryamongCompetingFirms The demand for business schools have risen all over the
world and so Pakistan has also has also followed the trend. This has resulted in heavy
competition among the market of business schools. Although there are many new
universities in this industry but LUMS the oldest institute still remains the market leader
and is challenged by SZABIST and IBA of Karachi. As you see the business universities
ranking in Pakistan are as following: Business Universities Ranking
13. 13. 13 1. Lahore Uni. of Management Sciences (LUMS), Lahore 2. Institute of Business
Administration (IBA), Karachi 3. Shaheed Zulfikar Ali Bhutto Institute of Sci. & Tech.
Karachi 4. Iqra University, Defence View, Karachi 5. Lahore School of Economics (LSE)
, Lahore 6. Institute of Business Management (IBM), Karachi The market followers are
IQRA University and our LSE. This market depends a lot on prestige, status and quality
of service provided thus the rivalry among competitors exists. Since LSE is basically
targeting the market of Lahore so direct competition with SZABIST and IBA doesn’t
exists rather the business department of FAST, GC, FC, UMT and UCL are our
immediate rivals. But it should also be kept in mind that we stand second in the industry
in Lahore so we provide competition to LUMS as well. Potential Entryof
Newcompetitors The high demand, growth and attractive profits will attract new
competitors in the market. Other than this the support of the government, in order to raise
educational standards in the country, will includes subsidies and setting up help, not only
the Government but NGO’S and financially sound responsible citizens are also aiding
new educational institutions. This further act as an incentive to enter the market. There is
also potential for foreign universities to open there branches in Pakistan, in the era of
Musharraf contract with some Foreign Universities were also signed, the entry of foreign
universities will provide intense competition to the existing market leaders and prominent
followers. Potential Developmentof Substitute Product As business university have
substitute products like MBBS, LLB, Engineering degrees but mostly people who don’t
get admission in these universities come to Lse. From other perspective the increase
demand for MBA’s and business professionals has led to the development of business
schools by prominent. Institutions such as FAST, GC, UMT, UCL, KC and many
universities in other cities as well all across Pakistan. Though they are relatively new in
this field
14. 14. 14 but with the passage of time and hard work they can enhance their merit and
loyalty. The already existing fame of these institutions will further help them to capture
an eminent position in the market. The probability of development of new universities in
the field is also very high as firstly there is high demand from the consumers i.e. the
students and secondly it doesn’t require a lot of work to set up educational institutions in
Pakistan the only critical is to get recognition from HEC. The government also promotes
and helps the setting up of educational institutions. Bargaining PowerofSuppliers
 Obviously the bargaining power of suppliers affects the intensity of competition in an
industry. Here if we talk about Universities, in which the major supply raw material is in
shape of Teachers. If we see the Hierarchy level of LSE in the next page from Professors
to graduate teaching associates bargaining power of supplier take place.
15. 15. 15
16. 16. 16 As we all know that there are very few professors in Pakistan so, higher number of
bargaining takes place and professors will negotiate for higher pay. Whereas graduate
teaching associates are large in number so bargaining power decreases. So, in this way
bargaining power decreases from top level of hierarchy to bottom level of hierarchy.
Bargaining Powerofcustomers Customers are the most vital component of any
organization and most importantly having a good loyal customer is good fortune.
Institutions like Lahore School of Economics have fix fees so students can not negotiate
for fees but for needy students LSE provides need base scholarships or financial aid.
17. 17. 17 Internal Audit Internal Environment of Lahore SchoolofEconomics The Internal
Environment of Lahore School of Economics consists of the elements shown in the flow
chart below and explained in details in the later sections:
18. 18. 18 Management at Lahore School of Economics The Lahore School of Economics
has an extremely strong academic faculty with over 100 permanent faculty members with
specialization in Economics, Business Administration, Social Sciences, and Mathematics
and Statistics. The Senior Faculty includes: Visiting Faculty The Lahore School of
Economics welcomes visiting faculty (PhDs and M.Phil Degree holders) from Pakistan
and abroad in the field of Accounting, Economics, English, Finance, Management,
Marketing, Social Sciences etc. Teaching Methodologyand Techniques The teaching at
Lahore School of Economics comprises of a blend of lectures and discussion sessions
including case studies, tutorials and essay writing. The academic year for the Bachelors
Dr. Shahid Amjad Chaudhary (Economics) Rector Dr. Sohail Zafar
(BusinessAdministration) Dr. Azam Chaudhary (Economics) Dr. Rana Abdul Wajid
(Statistics) Dr. Shahid Sidque (Humainities and Social Sciences) Dr. Munir Ahmed
(Research - Public Policy) Dr. Naveed Ahmed (Research - Economics and Business)
19. 19. 19 Programme consists of four terms, whereas the academic year for the Masters
Programme consists of two terms. There is an optional summer term from May to July
for the students of the Bachelors Programme. Bachelors and Master Programs The
Lahore School offers 4 credit hour courses for the Masters Programme and 3 credit hour
courses for the Bachelors Programme with each being divided between lectures, problem
sets and case studies. In addition there is a system of tutorials to discuss essays and
problem sets with the professors. While the program is rigorous, it offers an opportunity
to participants to be involved in a total learning experience. The Lahore School of
Economics is (by charter/law) its own examining authority. Examinations are held at the
middle of the term and at the end of every term. In addition to these exams, the final
grade is determined over the course of the term on the basis of class assignments, tests,
class presentations and term papers. Coordination of the Academic Programs The Deans
of the Faculties of Economics and Business Administration are responsible for the
coordination of the academic programmes of their respective departments. The faculty
members are responsible for executing their own teaching programmes within the
parameters of the syllabi approved by the Board of Governors.
20. 20. 20 Marketing Department The Lahore School of Economics has no defined and
proper marketing department and they are relying on the word of mouth. Lahore school
of Economics still succeeded in filling the gap and the meeting with the growing needs of
the business sector. They have developed their students (products) in such a manner that
are up to standards of most multi-nationals as well as local companies, that’s the reason
why all the big giants in the market such as Nestle, P&G, Uni-lever Pakistan and many
other visit Lahore School of Economics and take students for their training and recruiting
programs. When we asked Mr. Sohail Zafar that why LSE is not marketing as compared
to other institutions in Pakistan, he said: “Capacity of an institution is very important in
this regard, we already have an intake ratio of 3:1 so I don’t think so that there is any
need to attract more students which LSE cannot absorb and we are doing quite well as
compared to other institutions which are allocating big amount of their budgets on
marketing.”
21. 21. 21 Research and Development Lahore School of Economics has currently two
research and development department which are as follows: Both of these departments
are funded internally, and publish semi-annual research papers and Journals regarding the
major areas of concern in Pakistan. It’s a great achievement of Lahore School of
Economics as it is in the line of very few institutions in Pakistan that are constantly trying
to make the society up to date through their research papers. According to Mr. Sohail
Zafar: “The research done in LSE is a sort of Capital intensive research which is very
productive to educate the masses.” The major publication of the Lahore School of
Economics is a bi annual journal focusing on the areas of economics, finance, economic
history, and socio economic issues. It is still relatively young as far as histories of
journals go, having been around for ten years now. From small beginnings, when an
entire volume of the Journal was no more than say 50 pages, it has come a long way.
Today LSE are indexed in the Journal of Economic Literature and the Massachusetts
Research and Development Social sciences and policy research center Creb center for
research and development
22. 22. 22 Institute of Technology (MIT) and British Library in the UK is some of its
illustrious subscribers. The social sciences and policy research center is also publishing
bi-annual journals which contains articles by eminent writers on inter-disciplinary
subjects. It will also contain articles based on policy-oriented research conducted by the
Centre for Research. The Journal published is non-technical and is of common interest
for all social scientists including economists, political scientists, sociologists and
administrators.
23. 23. 23 Finance / Accounting The accounting and finance department of Lahore School of
Economics is performing their day to day activities effectively. Its decision making
process and the allocation of budgets for different projects is totally centralized. The
budgeting done at Lahore School of Economics is on a roll over basis and is based on
three factors:  Past Budget  New expansions and developments  Current Economic
Situations According to Mr. Mohsin in the accounts department: “We at accounts
department are directly involved in the allocation of budget for different programs, we
give our proposal to the Rector who discusses the allocation of budget through a cost
benefit analysis, then refining stage comes in which the idea is further brainstormed then
it is presented to the Board of Governance who approves or disapproves the proposal” So
it’s a four stage process which can be shown through the flow chart below: Proposalby
 the accounts department Discussion with the Rector Refing stage Presented to the Board
of Governance
24. 24. 24 Production and Operation The management of Lahore School of Economics is
constantly designing courses according to the set standards of Higher Education
Commission. They have also allowed flexibility in teaching hours so that the instructors
can give their best. Quality Assurance Department Lahore School of Economics has a
quality assurance department that is keeping checks to ensure quality education and is
constantly evaluating the performance of its staff through an evaluation process. Quality
Assurance department has a proper monitoring setup through cameras placed in each and
every auditorium. Further they are maintaining a daily 5 slot report of all instructors
which is rotated throughout the college. In addition Ms. Ambreen, the head at the Quality
Assurance Department visit every auditorium and evaluate instructors on an evaluation
form which consists of the following attributes:  Command over subject  Class
discipline  Delivery skills etc. Recently, Lahore School of Economics has conducted a
training workshop for junior lecturers, to evaluate their performance. The Evaluation
criteria have certain attributes such as:  Clearly stated objective  Voice level  Voice
pace (speed)  Interaction  Appropriate use of audio, video  Clarity of message etc. All
these activities are done to create evaluation folders of each instructor. At the end of the
year consolidated sheets are developed in which the report average is compared with the
college average to get a better picture of the instructor performance. In case of bad
performance warning
25. 25. 25 are given to the instructor, whereas a good performance ensures you an increase in
salary which is a kind of incentive to the instructor. Management information system
(MIS) In order to make effective managerial decisions information ties all businesses
together. Information represents a major source of competitive management advantage or
disadvantage. As “Imran Dawood” MIS Manager of Lahore school of Economics told us
that MIS system is imperative in order to create internal communication system. The
development and management of information technology tools assists Teachers, Teachers
assistant and students in performing any tasks related to the processing of information.
MIS and portal systems are especially useful in the collation of data and the production of
reports to be used as tools for decision making. For Example the teacher evaluation
forms, daily teacher reports are still happening on papers which need to be change, in
order to get more appropriate results. Portal is the only medium through which lot of
students connect with LSE and get to know about the quizzes, assignments , make up
class schedules, exams and much more. But it needs to be get better and lots of
improvements are needed in this Management information system in order to make it
more effective.
26. 26. 26 Strategies in action Currentstrategiesfollowedbytheinstitution As an institution
Lahore school of Economics have not any integration strategy and its some think
impossible because of the nature of the business. It’s not viable to do forward and
backward integration whereas horizontal integration is possible but Lse is not indulge in
any such strategy. Lahore School of Economics is following intensive strategy in which
they are focusing towards “product development”. As Product development is a strategy
that seeks increased sales by improving or modifying present products or services.
Product development usually entails large research and development expenditure. Same
implies for LSE, as they are improving and bringing more degrees e.g. they introduce
 BBA and BSC double Majors, with that they are introducing some more relevant subject
which able the students to gain more knowledge in their specialized field. For example,
they have introduced media studies, mathematics and statistics courses. More over in
Diversification strategies Lse is not adopting any related and unrelated diversification
strategies. Related Diversification is not suitable for LSE to follow because first of all
you have to focus on business institution and make it well known brand, and then just
like LUMS and other developed institutions you have to introduce engineering and other
degrees. Whereas as a non profit organization unrelated diversification is not important
due to its nature of business. There is no need to transfer risk in to another business or
maintain a portfolio as the purpose of LSE is to educate the society as a non profit
organization.
27. 27. 27 Feed back on student opinion QuestionnaireAnalysis For our strategic
management project we conducted a research through a questionnaire, in order to get the
main strengths and weaknesses of our assigned Institution that is Lahore School of
Economics. We conducted our research in libraries, cafes, and in computer labs. The
questionnaire consists of three sections. First one was the demographic section which was
very helpful to get the consumer profile, the second and the third section consists of the
perceptions and the expectations of our customers (students), which helped us to form
different strategies for our assigned Institution. Talking about the overall tangibility of
the Institution we get to know that students were satisfied with the overall layout of the
class rooms and the appearances of the lecturers. Students feel good about the
comfortable libraries, and the atmosphere of the campus. Students have got access to
internet mails in the computer labs with up-to-date computers and software’s in them.
The parking place in the campus is sufficient enough to absorb a capacity of more than
1000 cars. Now coming towards the negative aspects, In spite of complete access to
computer labs students are not happy about the coordination and communication of
lectures through web which is really poor keeping in view the fact that Lahore School of
Economics is allocating a significant portion of their budget on the MIS system, but still
the are not getting the required results. Further the curriculum is not up-to-dated, the
information that we are getting through the web site of Lahore School of Economics is
out dated and needs to get an upgrade. The management has diversified the number of
courses offered but due the lack of subjects they are teaching same courses in all
disciplines, just having the degree names different. Coming towards the Assurance factor,
students are satisfied with the academic credentials of lecturers, staff knowledge of rules
and regulations, and the overall security of the Institution. But the courses are not well
taught at the campus; lecturers have low research efficiency and productivity and are not
friendly to the students. The Reliability factor was up to the expectations of the students,
All lecturers are held according to the schedule, the account’s department and the
management is very efficient at accurate record keeping of the students enrolled,
registration is also timely and error free. There are a lot of negatives in the Empathy
factor and the students are not satisfied with the management in this regard.
Administration doesn’t have student’s best interest in their hearts. Lecturers are not
supportive and sympathetic to students and are not willing to give individual assistance.
Further the staff is biased and unfair in the treatment of individual students. Followings
are the Graphs resulted from the questioner:
28. 28. 28 Graphs 13 17 Gender Male Female 0 2 4 6 8 10 12 14 20 21 22 23 24 25 26 13 9 2
3 0 0 0 Age
29. 29. 29 0 5 10 15 20 25 30 Single Married Single,30 Married,0 Marital Status Marital
Status 0 1 2 3 4 5 6 7 8 9 10 3 10 10 7 Total Monthly Family Income
30. 30. 30 0 5 10 15 20 25 30 Yes No 27 3 Permanent Resident Of Lahore 0 5 10 15 20 25 30
Public Private Semi-Government 0 29 1 Status Of Institution
31. 31. 31 0 5 10 15 20 25 30 Bachelors Masters 28 2 Enrolled In 0 2 4 6 8 10 12 Finance
Marketing Others 12 9 9 Specializing In
32. 32. 32 0 2 4 6 8 10 12 1st Year 2nd Year 3rd Year 4th Year 12 10 7 1 Student Of 30 0 0 5
10 15 20 25 30 35 English Urdu Medium Of Education Before Joing This Institution
33. 33. 33 0 5 10 15 20 25 30 Your Decision Parents Decision 27 3 Applying In This
Institution Was Applying In This Institution Was 0 5 10 15 20 25 Yes No 9 21 Have Any
Job Experience
34. 34. 34 Consumer Profile The customers of Educational Institution are mostly male, 20-23
years of age, single and live in the income bracket of 50,000-100,000. He is a permanent
resident of Lahore, enrolled in a private institution as a bachelor. He is specializing in
diverse courses and is a student of 1st to 3rd year. His medium of Education is English.
He has no job experience and hasn’t visited any foreign country. Now we have
mentioned strengths and weaknesses from that we come to know from the result
generated from questioner. Strengths and Weaknesses of Tangibility Strengths: 
Appearance of Lectures, Layout of class rooms, Lightening in class rooms are really
good and students are happy about them. Yes, 15 No, 15 Visited Any Foreign Country
35. 35. 35  Overall cleanliness  Comfortable libraries and class rooms  Decoration and
atmosphere  Availability of Parking space  Up-dated computers and software’s in them
 Access to internet mails Weaknesses:  Coordination and communication of lectures
through web is really poor with a difference of more than 40.  Curriculum not up-to-date
 Number of courses offered  Not following organizational cultures and beliefs Strength
and Weaknesses of Assurance Strengths:  Academic credentials of lecturers  University
staff knowledge of rules and regulations  University security Weaknesses:  Courses not
well taught at university  Lecturers research efficiency and productivity  University
staff not friendly to students
36. 36. 36 Strength and Weaknesses of Reliability Strength:  All lectures held according to
the schedule  Accurate record keeping  Registration is timely and error free
Weaknesses:  Don’t provide services on scheduled time  Lecturers don’t show sincere
interest in solving student’s problems Strength and Weaknesses of Empathy Strength: 
Access to computer lab, libraries and photo copier in coordination of students
Weaknesses:  Administration don’t have student’s best interest  Staff not willing to
give students individual assistance  Lecturers are not sympathetic and supportive to
students  Staff is biased and unfair in treatment of individual students
37. 37. 37 EFE MATRIX KEY EXTERNAL FACTORS Weight Rating weightScore
Opportunity Top BusinessUniversity 0.11 2 0.22 Hire PHD's as a faculty 0.04 1 0.04
Buildan auditorium 0.08 1 0.08 Market Penetration 0.1 2 0.2 Attract talentedstudentsall
over Pakistan 0.12 3 0.36 RelatedDiversification 0.02 2 0.04 Horizontal Integration 0.03
3 0.09 More Product Development 0.1 4 0.4 Threats IncreasingBusinessSchools 0.1 4 0.4
Terrorism Threat to LSE 0.07 3 0.21 Inflation,People leftwithlessdisposable income 0.09
 3 0.27 Location (far away from Lahore city) 0.03 3 0.09 Studentsimmigration to
foreignuniversities 0.05 4 0.2 Very near to India Pakistan border 0.06 3 0.18 Total 1 2.78
38. 38. 38 IFE MATRIX KEY INTERNAL FACTORS Weight Rating weightScore
Strengths One ofthe leadingbusinessschool in Punjab 0.06 4 0.24 Comfortable
librariesand class rooms 0.04 3 Scholarships,Financial Aid T.A ship 0.03 3 0.09
Universitysecurity 0.05 4 0.2 All lecturesheldaccording to the schedule 0.04 4 0.16
Accurate record keeping 0.08 4 0.32 Academic credentialsoflecturers 0.09 2 0.18
Registrationis timelyand error free 0.05 3 0.15 Access to computer lab,librariesand photo
copier 0.08 4 0.32 AvailabilityofParking space/total Area 35 Acres 0.06 3 0.18
Weaknesses Coursesnot well taught at university 0.1 3 0.3 Lecturers are not
sympatheticand supportive to students 0.02 2 0.04
Centralizedauthority/inefficientdecisions 0.02 2 0.04 Numberof courses offered 0.05 4
0.2 Curriculumnot up-to-date 0.02 2 0.04 Communicationof lecturesthrough webis
reallypoor 0.04 1 0.04 Not followingorganizational culturesand beliefs 0.03 2 0.06
Admissionon the basis of Nepotism/Nomerit 0.05 2 0.1 Universitystaffnot friendlyto
students 0.04 3 0.12 Campus far away from Lahore City 0.05 1 0.05 Total 1 2.83
39. 39. 39 SWOT Strategies SWOT Strategies Strengths(S) Weaknesses (W) Opportunities
(O) SO Strategies WO Strategies  One of the best business institutionsinPunjab has an
opportunity to become a leading business institutionin Pakistan. (S1,O1)  All lecture
heldaccording to the schedule, thus they will hire more PHD’s with an objective
toprovide more excellent education. (S5,O2)  Despite of the fact that Lse is situatedfar
away from main city but it is spreadover 35 acres of land and LSE has pollutionfree
campus on the greenoutskirts of Lahore. (O6, W10)  portal Communication of lectures
throughweb is really poor but if they improve there MIS system thenthey will able to
attract more students and bring more efficiency betweenthere communicationsystem.
(W6,O5) Threats (T) ST Strategies WT Strategies  Lse have highterrorist threats but it is
minimize by increasing security.(S4,T2)  Due to hyper inflation and less disposable
income studies are becoming unaffordable for lot of students but they give aid to some
limitedstudents. (S3,T3)  Courses not well taught at university andLecturers are not
sympathetic andsupportive to students. Sothat why lot of students gotoforeign
universities. (W1,W2,T5)  Lahore school gave admissionon the basis of nepotismand
there is no fix criteria e.g. like LUMS. This make the potential customers to go in
foreignuniversities.(W8,T1) Analysis: SWOT matrix is an important matching tool that
helps us develop four types of strategies. Matching key external and internal factors is the
most difficult part of developing a SWOT
40. 40. 40 matrix and requires good judgment and there is no one best set of matches. SO
strategies here for LSE use its internal strengths to take advantage of External
opportunities. So, our SO strategies are: Lse is one of the best business institutions in
Punjab has an opportunity to become a leading business institution in Pakistan and this
strategy is created by matching opportunity one and threat one as mentioned in above
matrix. More over all lecture held according to the schedule, thus they will hire more
PHD’s with an objective to provide more excellent education. And in WO strategy LSE
aims at improving internal weaknesses bt taking advantage of external trends and events.
Now WO strategy of LSE are as following: Despite of the fact that Lse is situated far
away from main city but it is spread over 35 acres of land and LSE has pollution free
campus on the green outskirts of Lahore. Portal Communication of lectures through web
 is really poor but if they improve there MIS system then they will able to attract more
students and bring more efficiency between there communication system. Whereas ST
strategies use firms strengths to avoid or reduce the impact of external threats and LSE
ST Strategy includes Lse have high terrorist threats but it is minimize by increasing
security. So this shows that with high security they are reducing the impact of external
threats. More over by matching strategy and opportunity number three we concluded that
due to hyper inflation and less disposable income studies are becoming unaffordable for
lot of students but they give aid to some limited number of students. And lastly WT
strategy are defensive tactics directed at reducing internal weaknesses and avoiding
external threats. So by matching weakness number one and two with threat number five
we conclude that in LSE courses are not well taught and Lecturers are not sympathetic
and supportive to students. So that why lot of students go to foreign universities. Further
more Lahore school gave admission on the basis of nepotism and there are no fix criteria
for admission. If we talk about the best universities there are fix admission criteria and
there will be no nepotism e.g. like LUMS. These things make the potential customers to
go in foreign universities.
41. 41. 41 IE Matrix Analysis: The Internal-External (IE) matrix is another tactical
organization instrument used to examine working environment and tactical situation of a
business. The Internal External Matrix or short IE matrix is based on an investigation of
internal and external business factors which are combined into one evocative model. The
IE matrix works in a way that you plot the total weighted score from the EFE matrix on
the y axis and draw a horizontal line across the plane. Then you take the score calculated
in the IFE matrix, plot it on the x axis, and draw a vertical line across the plane. The point
where your horizontal line meets your vertical line is the determinant of your strategy.
This point shows the strategy that your company should follow. On the x axis of the IE
Matrix, an IFE total weighted score of 1.0 to 1.99 represents a weak internal position. A
score of 2.0 to 2.99 is considered average. A score of 3.0 to 4.0 is strong. On the y axis,
an EFE total weighted score of 1.0 to 1.99 is considered low. A score of 2.0 to 2.99 is
medium. A score of 3.0 to 4.0 is high. By placing IFE and EFE score you see that LSE
lies in a fifth quadrant with IFE and EFE score of 2.78 and 2.83 respectively. And this
suggest that the hold and maintain strategy. In this case, LSE tactical strategies should
focus on market penetration and product development
42. 42. 42 Grand Strategy Matrix Grand Strategy Matrix is based on two evaluate
dimensions: competitive position and market growth. As there is high growth of business
universities in Pakistan, So Lahore school of Economics basically lies on 1st quadrant
where there is a high market growth. The demand for business schools have risen all over
the world and so Pakistan has also has also followed the trend. This has resulted in heavy
competition among the market of business schools. Although there are many new
universities in this industry but LUMS the oldest institute still remains the market leader
and is challenged by SZABIST and IBA of Karachi. As you see the business universities
ranking in Pakistan are as following: Business Universities Ranking 1. Lahore Uni. of
Management Sciences (LUMS), Lahore 2. Institute of Business Administration (IBA),
Karachi
43. 43. 43 3. Shaheed Zulfikar Ali Bhutto Institute of Sci. & Tech. Karachi 4. Iqra
University, Defence View, Karachi 5. Lahore School of Economics (LSE) , Lahore 6.
Institute of Business Management (IBM), Karachi The market followers are IQRA
 University and our LSE. This market depends a lot on prestige, status and quality of
service provided thus the rivalry among competitors exists. Since LSE is basically
targeting the market of Lahore so direct competition with SZABIST and IBA doesn’t
exists rather the business department of FAST, GC, FC, UMT and UCL are our
immediate rivals. But it should also be kept in mind that we stand second in the industry
in Lahore so we provide competition to LUMS as well. So that’s why due to little bit
weak competitive position the line is on the vertical side.
44. 44. 44 Quantitative Strategic planning Matrix QSPM Product Development Market
Penetration Related Diversification KEY EXTERNAL FACTORS Weight AS TAS AS
TAS AS TAS Top BusinessUniversity 0.11 4 0.44 4 0.44 2 0.22 Hire PHD's as a faculty
0.04 0 0 0 Buildan auditorium 0.08 0 0 0 Market Penetration 0.1 4 0.4 4 0.4 3 0.3 Attract
talentedstudentsall over Pakistan 0.12 4 0.48 4 0.48 2 0.24 RelatedDiversification 0.02 0
0 0 Horizontal Integration 0.03 3 0.09 4 0.12 2 0.06 More Product Development 0.1 4 0.4
4 0.4 3 0.3 IncreasingBusinessSchools 0.1 0 0 0 Terrorism Threat to LSE 0.07 0 0 0
Inflation,leftwith lessdisposable income 0.09 0 0 0 Location (far away from Lahore city)
0.03 3 0.09 3 0.09 2 0.06 Studentsimmigration to foreignuniversities 0.05 4 0.2 4 0.2 3
0.15 Very near to India Pakistan border 0.06 0 0 0 Total 1 2.1 2.13 1.33 QSPM Product
Development Market Penetration Related Diversification KEY INTERNAL FACTORS
Weight AS TAS AS TAS AS TAS leadingbusinessschool in Punjab 0.06 0 0 0
Comfortable librariesand class rooms 0.04 0 0 0 Scholarships,Financial Aid T.A ship
0.03 4 0.12 4 0.12 2 0.06 Universitysecurity 0.05 3 0.15 3 0.15 3 0.15 All
lecturesheldaccording to the schedule 0.04 3 0.12 4 0.16 2 0.08 Accurate record keeping
0.08 0 0 0 Academic credentialsoflecturers 0.09 4 0.36 4 0.36 2 0.18 Registrationis
timelyand error free 0.05 0 0 0 Access to comp lab, libraries& photo copier 0.08 0 0 0
Parking space/total Area 35 Acres 0.06 0 0 0 Coursesnot well taught at university 0.1 0 0
0 Lecturers are not supportive to students 0.02 3 0.06 4 0.08 1 0.02
45. 45. 45 Centralizedauthority/inefficientdecisions 0.02 0 0 0 Numberof courses offered
0.05 4 0.2 4 0.2 2 0.1 Curriculumnot up-to-date 0.02 3 0.06 3 0.06 1 0.02 Comm. of
lecturesthrough webis reallypoor 0.04 0 0 0 Not followingorganizational cultures&
beliefs 0.03 0 0 0 Adm. on the basisof Nepotism/Nomerit 0.05 0 0 0 Universitystaffnot
friendlyto students 0.04 0 0 0 Campus far away from Lahore City 0.05 0 0 0 Total 1 1.07
1.13 0.61 Grand Total 3.17 3.26 1.94 Quantitative Strategic Planning Matrix is a tactical
device which is used to estimate different set of strategies. The QSPM include prior stage
details in an organize way to calculate the score of multiple strategies in order to find the
best match strategy for the organization. The QSPM comes under the third stage of
strategy formulation which is called “The Decision Stage” and also the final stage of this
process. The best thing about QSPM is that it never insist the strategist to enter the
information on assumptions, it extract the information from stage 1 The Input Stage and
stage 2 the matching stage. The input stage is based on EFE Matrix, IFE Matrix and CPM
and stage 2 made up of TOWS matrix, SPACE Matrix, BCG Matrix, IE Matrix, Grand
Strategy Matrix. The QSPM combine the intuitive thinking of managers with the
analytical process to decide the best strategy for the organization success. So, after
matching stage we have proposed here three alternative strategies Product development,
Market Penetration and Related diversification strategies. As you see the matrix, in which
market penetration gets the highest score of 3.26 showing that LSE needs to opt market
penetration strategy in which they have to promote their self because we only see LSE
 advertisement once in a blue moon. As Lahore School of Economics only gets promoted
through word of mouth therefore, marketing department needs to promote in order to
grab the markets which are Unknown about LSE. Further more as they are focusing
towards Product Development in shape of introducing more Degrees and try to strengthen
their brand more effectively. Where as we don’t recommend LSE to go for related
diversification in terms of doing horizontal diversification, in which LSE will
46. 46. 46 introduce Engineering, LLB, BCS Degree or more, because LSE need to continue
with their focus strategy and try to improve their Business studies. Conclusion So we are
concluding by recommending that Lahore School of Economics have to continue with
there product development strategy. As they are frequently bringing new courses and new
degrees, so that’s perfectly all right but some students mentioned in the questioner that
some subjects are completely irrelevant with the degree for that reason management have
to make appropriate measures to solve this issue. More over many students are also hurt
by the bias treatment of the management and many believe the courses are not properly
taught at the campus; lecturers have low research efficiency and productivity and are not
friendly to the students. There are a lot of negatives in the Empathy factor and the
students are not satisfied with the management in this regard. Administration doesn’t
have student’s best interest in their hearts. Lecturers are not supportive and sympathetic
to students and are not willing to give individual assistance. Further the staff is biased and
unfair in the treatment of individual students. So the leadership needs to take strong
corrective action in order to overcome this problem. More over we also recommend them
for market penetration strategy in which they need to increase their advertisement in
order to cater to those who are not expose to LSE yet. And in this way more talented
students will become the part of LSE and create more market for LSE. After defining
your line of attack you must use the information you have gathered to decide whether this
strategy will achieve the objective of making your university competitive in the
marketplace. Thus, market penetration and product development are the right line of
attack which able to make LSE Giant in the market.