Name: Muhammad Daniyal

Student ID: 16993

Course: Strategic Management
Timing: 6:30:9:30

INTRODUCTION

From its initial long stretches of consistent growth and Growing armada, PIA is currently a
misfortune making substance. This is regularly on the grounds that throughout the long term the
carrier had been settling on wrong choices on the securing and Retrials of airplanes. The carrier
has not been prepared to effectively actualize a posting of the board program. This prompted
helpless adjusting of air areas as new carriers with further developed airplane expanded the
opposition. Airplane security turned into a basic issue with the increasing number of mishaps.
Today, PIA is wracked by various managerial and human asset-related issues strikingly
debasement, failure, preference, nepotism, and overstaffing. Security has additionally become a
genuine worry after various embarrassments concerning the capabilities of the PIA workforce,
the EU boycott, and accordingly new accident in Karachi in May 2020 that killed 97 individuals.

POLITICAL FACTORS

Pakistan has accomplished some political security lately the administration of PIA expects that
this administration will perform reliably.

ECONOMIC FACTORS

Due to covid-19 the demand for travelling is also reduced to avoid social interaction. The
decreased demand is the economic factor that has a direct influence on PIA’s revenue.

SOCIAL FACTORS

Pakistan has a majority youngster population and PIA should introduce offers and packages for
the youngsters on regular basis.

TECHNOLOGICAL FACTORS

Major mechanical changes are going on inside the carrier's business with advancements inside
the reservations and booking frameworks. In-flight theater setups and auto sign up counters are
two examples of such advancements.
LEGAL FACTORS

Aircrafts enactments and approaches immediately affect the presentation of PIA. PIA has
assaulted new enactment which can compel them to pay more noteworthy remuneration to
clients inside the occasion of overbooking, retractions, and deferrals.

ENVIRONMENTAL FACTORS

The government is trying its best to create a business environment in the country. These efforts
will help PIA to get back in shape and earn revenues

STRATGEY

PIA should excessively follow the strategy to downsize its over-needed staff. PIA should fire all
the unnecessary pilots and working staff. This staff cutting will help the organization to cut the
unnecessary expenses and expenditures it has been a huge burden on PIA after the management
started getting affected by the political influences. It gave rise to the nepotism culture in PIA and
exceeded the expenses of PIA. This overstaffing is the sole reason for PIA’s downfall and by
downsizing the unnecessary workforce PIA will be able to compensate its lost image. It will
enable PIA to rise and shine again.

SUGGESTED STRATEGIES

 Negotiate with Middle eastern airlines for a reasonable and reciprocal sector servicing
arrangement.
 Conduct an assessment of the fleet and its safety status.
 Negotiate with aircraft manufacturers for leasing/acquisition on staggered terms.
 Restructure the management of the airline.
 Improve transparent communication and lay down standards of performance to increase
efficiency.
 Rationalize the staff strength, both in-flight and ground handling.
 Re-establish credibility through a tough screening process for hiring pilots.
 Privatization should be initiated after proper discussion with the unions.
 Regular evaluation session to enhance employee engagement.
 Middle management should be involved in decision making processes.
 Promotion of creativity and collaboration and weekly discussion with colleagues and
companions to improve employee engagement
 Technological advancements to be implemented.