BUSINESS POLICY & STRATEGY

STRATEGY ANALYSIS

STRATEGY
A plan designed to achieve a particular long-term aim. Alternative chosen to make happen a desired future, such as achievement of a goal or solution to a problem.

STRATEGY ANALYSIS
Strategic Analysis is a process one can use to determine the best way to achieve the result or organization desire, by choosing the path of least resistance to bring about change. By doing a Strategic Analysis, the team will create alternatives to bring about the desired result by emphasizing the driving forces, and lessening the resistant ones.

The process of Strategic Analysis can be assisted by a number of tools, including: PEST ANALYSIS SCENARIO PLANNING BOSTON GROWTH SHARE MATRIX FIVE FORCES ANALYSIS DIRECTIONAL POLICY MATRIX SWOT ANALYSIS

PEST ANALYSIS
Political Analysis Political stability Risk of military invasion Legal framework for contract enforcement Intellectual property protection Trade regulations & tariffs Favored trading partners

Economic Analysis Type of economic system in countries of operation Government intervention in the free market Comparative advantages of host country Exchange rates & stability of host country currency Efficiency of financial markets Infrastructure quality

Social Analysis Demographics Class structure Education Culture (gender roles, etc.) Entrepreneurial spirit Attitudes (health, environmental consciousness, etc.) Leisure interests

Technological Analysis Recent technological developments Technology's impact on product offering Impact on cost structure Impact on value chain structure Rate of technological diffusion

BCG GROWTH-SHARE MATRIX

5 FORCES ANALYSIS

DIRECTIONAL POLICY MATRIX

SWOT ANALYSIS

CASE STUDY!!!

SWOT ANALYSIS FOR UFONE
STRENGTHS NETWORK COVERAGE INTERNATIONAL ROAMING GPRS ROAMING LICENSE FOR AZAD JAMMU KASHMIR AND NORTHERN AREAS QUALITY COVERAGE VALUE ADDED SERVICES LOWEST PRICES REPRESENTATIVE OF PTCL PIONEERS OF MMS AND GPRS SECOND LARGEST MARKET SHARE

WEAKNESS BEHIND ON EXCESSIVE DEMAND POOR ORGANIZATIONAL STRUCTURE STAGNANT PROFITABILITY OVERLY DEPENDENT ON PTCL LACK OF FRNACHISE LACK OF INNOVATIVE SERVICES NETWORK COVERAGE COMPETETION INTERNAL PROBLEMS

OPPURTUNITIES CONTINUING TO EXPAND GLOBALLY PUBLICITY AND MARKETING DEVELOP NEW VALUE ADDED SERVICE INTRODUCE KIOSK TECHNOLOGY DEVELOP FRANCHISE IN REMOTE AREAS

THREATS
GOVERNMENT

INTERFERENCE PTCL CELLULAR LICENSE PENSION PAYOUTS INCREASED HEALTH CARE COSTS TOUGH COMPETETION PRESSURE GROUP ECONOMIC PROBLEMS

Relative market share M ar ke t G ro wt H ra te

Prepay

PEST ANALYSIS OF UFONE
Political Factors Environment is investor friendly telecommunication sector is under de-regulation. Monopoly of PTA will be going to end at the end of 2005. Before WTO implementation government already took steps in de-regulation of telecommunication sector. Political trends also change the whole activity of business

Economic Factors Marketers should consider long term and short term state of a trading market. Inflation is controlling by state bank and under strict eyes but unemployment rate is going up and up with the increase of level of poverty. Recently Govt. imposes taxes on messages of each and every company of telecommunication which hurts a lot to all

Socio-Cultural Factors As Pakistan is an Islamic country and people are very strict in case of Islam any thing against the philosophy of Islam on either print or electronic media are treated as against Pakistan. Most of the people dislike anything extra-ordinary or something which sabotage their culture or subculture. Companies who are targeting upper-end of market mostly published and aired their advertisement in English language. In metropolitan cities women are doing work along with their other responsibilities but other than metropolitan cities it is difficult for women to convince their parents and spouses for work. Demographic changes have very important part in organization.

Technological Factors Companies have technology with which they can compete in the Pakistan and now companies are investing in their infrastructure to not only expand but also to upgrade their existing structure. Ufone is shifting its whole network from 900 MHz to 1800 MHz with the completion of this project within 2-3 months Mobilink will be able in offering ValueAdded Services like General Packet Radio Service (GPRS), Multi-media Messaging Services (MMS) and Virtual Private Network (VPN) etc. As new technologies related to telecommunication introduced in market, the team of Ufone of technological development get pressurized from upper management to deal with the need of new technology.

CONCLUSION Strategy analysis tells the current situation of a running business Different types of analysis are very helpful in finding the actual position of the business in the age of competition By doing periodically strategy analysis Ufone is improving his business by avoiding some weak business and support other strong units

RECOMMENDATION All the units must analyzed on regularly basis Ufone should always be attempting to keep improving new value added services Ufone should extend its network coverage area to Northern part of the country Ufone should develop some new franchises in remote areas Ufone can surprise its competitors by introducing ´Ufone kioskµ