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Strategic

Management
Industry: Education
Local Organization: Bahria University Islamabad

BY. Sajeela Rabbani & Nida kamal


Bahria University

• Bahria University was established by the Pakistan Navy in 2000, and


since then it has slowly and steadily grown into one of the leading
higher education institutions in Pakistan.

• It all started in the late nineteen-eighties when the Pakistan Navy entered
the field of education and established two Institutes, one at Karachi and
the other at Islamabad, and called them Bahria Institutes 

• Over the years the two Institutes grew in size and facilities, leading to
the commencement of BBA and B.Sc (CS) classes in 1995.  In 1997
these programmes were further upgraded to BBA (Hons), BSC (Hons)
and MBA and MSC, as evening programmes.  The Institutes were
known as Bahria Institute of Management and Computer Science
(BIM&CS), with the location of Karachi and Islamabad.
• The Institute was finally upgraded to a university, the present
Bahria University, on 7 February 2000 through a Presidential
Ordnance. 
• Bahria is a multi-campus university, which has its
headquarters and a campus at Islamabad, while another
campus and constituent units are located in Karachi.
• The university’s total student population, including those of
its affiliated units, has been growing steadily and now hovers
around 9,500.
Bahria University
Vision Statement
• The vision is to Characteristics of Vision
consolidate all its efforts
to create an education
system that would be Broad in scope
capable of providing
state of the art facilities Less in words
for quality education to
the population of Show ethics
Pakistan with out any
prejudice of class,
creed, color or domicile. Catchy for Stake holders
Bahria University
Mission Statement
• Bahria University is a multi-campus institution of higher education, which will remain
committed to the attainment of highest standards in teaching, learning and research. The
scholars and professionals it produces will be encouraged to pursue truth, civility and
integrity. In pursuing this mission, the University has following objectives:
• Establish Campuses, Research Institutes, Schools and Colleges across the length and
breadth of Pakistan to turn the rapidly increasing population into knowledge based force.
• Prepare the younger generation to become future leaders and managers for a prosperous
and educated Pakistan, through development of their physical, mental, moral and
professional strengths.
• Ensure academic excellence through quality education in disciplined and peaceful
learning environments.
• To offer students the benefits of intellectual challenge, and to nurture skills and qualities
they need for their professional careers ahead and to enable them to achieve full potential
as individuals.
• Constantly monitor and upgrade facilities and update the curricula to keep pace with the
emerging trends and technologies.
• Coordinate and provide facilities for exchange of knowledge and applied research in the
newly emerging fields in collaboration with national and international Universities and
Research Institutions.
Components of the Mission Statement
Characteristics of Mission
Broad Scope
Less than 250 words
All 9 components present
Concern for environment
Inspiring
Identify utility of the product/Service
Enduring
Social Responsibility
1
STRATEGY
ANALYSIS
•IFE MATRIX
•EFE MATIX
•CP MATRIX
INTERNAL ANALYSIS
OF
BAHRIA UNIVERSITY
Strengths
• Top ranked University 
According to the HEC, Bahria is one of the top ranked Pakistani university among
institutions that offer degrees in Business Management and Computer Sciences.
• Forces Administration
As it is administered by Navy, and most of the administration comprises of the ex-
navy officials, the university is perceived to be adequately administered and to have
a disciplined environment.
• Quality of faculty
The quality of faculty at BU is also one of major strengths. Faculty members have
the knowledge and skill that they use to challenge their students in the classrooms
and in the exams.
Financial Aid
B.U provides financial aid to the deserving students in order to maximize its
outreach
The university claims that it gives over 50 students merit scholarship each
semester And 10 to 15 students need based financial assistance
Scholarships are typically awarded on merit or extremely high need. Some forms
of financial assistance available to students are as follows:
• Library

It also has received library of the year award 2011 from HEC
• Program Structure:
The way the BU structures its program is one of the basics strengths that help in enhancement of student learning and
individual development. Focus is not just on working hard but also to think analytically and to solve problems.
• Learning Environment : 
BU has created an environment of learning even outside the classroom by engaging students in lectures, seminars,
conferences, sports, theatre and many other forms of co-curricular activities. This learning outside the classroom is as
important as learning in the classroom
• Market Repute
BU has considerably good market repute in terms of acceptability of
degree and graduate performance in organizations.
• Variety of Departments
BU has management science, computer science, engineering, social
sciences, medical college (Karachi.) along with a recently inaugurated Law
department

• Location and proximity to the customers


BU is located at the centre of Islamabad making it easy to access.
Weaknesses of BU

• Lack of Teachers in Engineering and Computer Science Department


 There are not enough teachers available in engineering depts.

• Accommodation
The University cannot assure accommodation to applicants and students.

• Research Orientation
There is very less R&D process for introduction of new means and approaches to learning .
Also Rigor in lacking in research projects that students conduct.
• Less number of Campuses
Only Located in Islamabad and Karachi

• Minimum networking opportunities


Internal Factor Evaluation Matrix

• IFE matrix is the internal audit of an organization. This strategic


management tool evaluates and summarizes the major strength and
weaknesses of BU

• The weights are industry based and ratings represent the effectiveness of
firm’s strategy

• Interpretation of ratings: 4 = superior response (major strength); 3 = above


average response (minor strength); 2 = average response (minor weakness)
and 1 = poor response. (major weakness)
Internal Factor Evaluation Matrix
INTERNAL STRENGTHS WEIGHTS RATINGS WEIGHTED SCORE

Ranking .1 3 0.3

Quality of faculty .15 3 0.45

Library .1 3 0.3
Environment .02 4 .08

Programs .01 3 .03

Financial Aid .1 4 .4

Programmes’ Structure .1 3 .3

Building of high performance teams .05 3 0.15

Culture .02 4 .08

Student Societies .02 2 .04

Research work .03 2 .06

Learning Environment .07 3 .21

INTERNAL WEAKNESSES WEIGHTS RATINGS WEIGHTED SCORE

Lack of Teachers in Engineering Department .08 1 .08

No proper sitting places .05 2 .1

Less Courses 0.05 2 0.1

Accommodation .05 2 .1

TOTAL 1 2.78
EXTERNAL ANALYSIS
FOR
BAHRIA UNIVERSITY
OPPORTUNITIES

• Research and Development: 


In Pakistan there is no contribution in R&D from many Decades. As BU
offers different programs, so it can be an opportunity for BU to convey
knowledge about Innovations, new methods, and techniques.
• New programs:
As it is providing a quality education to their students. It can also offer
some new programs like Medical education in Islamabad or some
technical education etc to increase its market share.
• More campuses:
BU has only two campuses in Pakistan. It should build a new campus in
order to accommodate more students so that they can have easy access and
quality education
• Moving in other regions
As BU is the leading university it has an opportunity to move to other regions and
focus on different cities in Pakistan

• Introduce Incentive program:


It should offer incentive program or courses for their faculty member, so they can
enhance their knowledge and skills within the institute.

• Recreational activities:
For the betterment or refreshment of their students it should conduct some
recreational activities once in a semester. It also builds a good image of it among
its competitors.

• Transportation facilities
BU should provide transport facility to their students and staff for their ease. BU
competitors are providing transport facility
THREATS

• Competitors: 
Its major competitor like, NUST, Comsats, AIR and Islamic University
is trying to reach up to the standards and are involving themselves to
provide more highly tech- environment to their students.

• Government Policies:
Every organization face challenges due to change in Govt. Polices. It
brings new opportunities and threats for them. In educational
institutions this factors have greater value. As most of their strategies,
policies, decisions, rely on Government behavior.
 
• Reliance on Temporary Faculty:
For BU it seems to be a threat to more reliance on temporary faculty.
As it can reduce their efficiency, goodwill or quality of education
among students or other institutions.
• Internal environment
BU internal environment is quite modernized and advance may be due
to the reason that many foreigners are their too and there is no
restriction over there. Sometimes that is a threat for LUMS many
rumors also arise related to its environment that are not suitable as far
as our religion is concerned

• Marketing & recruitment by competitors: 


Comparing to its competitor, they are performing more marketing
efforts or publicity of their institutions. So for a success or survival in a
market BU should do some promotion activities.
EXTERNAL FACTOR EVALUATION
MATRIX (EFE)
• Internal Factor Evaluation (IFE) matrix is a strategic management tool
for auditing or evaluating major strengths and weaknesses in functional
areas of a business

• IFE matrix also provides a basis for identifying and evaluating


relationships among functional areas. The Internal Factor Evaluation
matrix or short IFE matrix is used in strategy formulation.

Rating is applied to each factor.

• The response is poor represented by 1.0


• The response is average is represented by 2.0
• The response is above average represented by 3.0
• The response is superior represented by 4.0
EFE
OF BAHRIA UNIVERSITY
WEIGHTED
NO`S OPPORTUNITIES WEIGHTS RATING
SCORE
1 Research and Development 0.08 3 0.24

2 Innovation in education 0.05 3 0.15

3 New programs 0.06 3 0.18

4 More campuses 0.04 1 0.04

5 Moving to other region 0.07 1 0.07

6 Introduce Incentive program 0.08 2 0.16

7 Recreational activities 0.05 2 0.1

8 Transportation facilities 0.07 1 0.07

WEIGHTED
NO`S THREATS WEIGHTS RATING
SCORE
1 highly tech- environment by competitors 0.04 2 0.08

2 Economic Consequences 0.05 2 0.1

3 Reliance on Temporary Faculty 0.04 3 0.12

4 Government Policies 0.03 4 0.12

5 Marketing & recruitment by competitors 0.06 3 0.18

6 Internal environment 0.05 3 0.1

TOTAL 1.00 1.71


COMPETITIVE
ANALYSIS
Competitive profile matrix (CPM)

• Competitive profile matrix is an essential strategic management tool to


compare the firm with the major players of the industry.

• Competitive profile matrix show the clear picture to the firm about their


strong points and weak points relative to their competitors. The CPM score
is measured on basis of critical success factors, each factor is measured in
same scale mean the weight remain same for every firm only rating varies.
Rating is applied to each factor like:
The response is poor represented by 1.0
The response is average is represented by 2.0
The response is above average represented by 3.0
The response is superior represented by 4.0
Competitive profile matrix (CPM)
  BAHRIA   NUST   COMSATS
Critical Success Factors Weight Rating score   Rating score Rating score

Faculty 0.17   3 0.51   3 0.51   3 0.51

Library 0.05 3 0.15 3 0.15 3 0.15

Transportation 0.07 2 0.14 2 0.14 3 0.21

Hostel accommodation 0.09 1 0.09 4 0.36 3 0.27

Campus Facility 0.07 2 0.14 4 0.14 4 0.28

Security 0.08 3 0.24 4 0.32 2 0.16

Scholarship 0.13 3 0.39 2 0.26 3 0.39

Degree programs 0.12 3 0.36 3 0.36 4 0.48

Administration/management 0.08 3 0.24 3 0.24 2 0.16

Enrolment 0.08 3 0.24 3 0.24 4 0.32

Emergency medical centre 0.06 3 0.18 3 0.18 2 0.12

1.00     2.68 2.85   3.01


Total
2
MATCHING

SWOT MATRIX
SPACE MATRIX
BCG MATRIX
GSM MATRIX
SWOT
• SWOT is as an acronym for Strengths, Weaknesses, Opportunities, and
Threats. These four factors make up the SWOT MATRIX.

• A SWOT analysis can be used to measure an


organization's competencies and identify opportunities to taken by
business management in the future.

• In SWOT we match internal strengths and weaknesses with external


opportunities and threats
STRENGTHS WEAKNESSES
1. Ranking
2. Quality of faculty 1. Lack of Teachers in Engineering

SWOT 3.
4.
5.
6.
Library
Environment
Programs
Financial Aid
2.
3.
4.
Department
No proper strictness on dresses
Accommodation
Less Courses
7. Programmes’ Structure
8. Building of high performance teams
9. Culture
10. Learning Environment
11. Research work Student Societies
OPPORTUNITIES WO Strategies
SO Strategies
1. Transportation facilities
2. Recreational activities 1. Provide faculty scholarships(S6,O3) 1. Make new campuses with existing
3. Introduce Incentive program 2. Introduce new programmes(S7,O6) programmes(W1,05)
4. Moving to other region
3. Develop new researchers (S11,O8) 2. Innovate programmes (W4,O7)
5. More campuses
6. New programs
7. Innovation in education

8. Research and Development

THREATS ST Strategies WT Strategies


1. highly tech- environment by
competitors 1. Start new hiring programmes(S2,T2) 1. Hire new teachers of Engineering(W1,T2)
2. Marketing & recruitment by
competitors 2. Improve learning environment 2. Offer new low cost
3. Government Policies (S10,T6) courses/Diplomas(W4,T5)
4. Reliance on Temporary Faculty
5. Economic Consequences
SPACE
• The SPACE matrix is a management tool used to analyze a company. It is
used to determine what type of a strategy a company should undertake.

• The Strategic Position & Action Evaluation matrix or short


a SPACE matrix is a strategic management tool that focuses on strategy
formulation especially as related to the competitive position of an
organization.

• The SPACE matrix can be used as a basis for other analyses, such as


the SWOT analysis, BCG Matrix, industry analysis, or assessing strategic
alternatives.
SPACE
Internal Factors : Financial Strength
Competitive Advantage FS & IS Values : +1 Worst to +6 Best
External Factors : Industry Strength CA & ES Values : -1 Best to -6 Worst
Environmental Stability

Financial Strengths Competitive Advantage


Financial aid 5 Naval Background -2

Revenues 4 Technology used -3


Faculty -2
Cash flows 3
Security -1
4
-2

Industrial Strengths Environmental Stability


Growth in Education 5 Demand of education -1
Technology advancement 5 Growth in Education sector -2
Trend of higher education 5 Less risk in profits -2
5 -2.5
FS
SPACE 8
7
Aggressive Strategies
X-Axis=IS + CA= 5+(-2)=3 •Integration
6
Y-Axis=FS+ES=4+(-2.5)=1.5 •Market Penetration
5
•Market Development
4
•Diversification

CA IS
-8 -7 -6 -5 -4 -3 -2 -1 1 2 3 4 5 6 7 8
-1
-2

-3

-4

-5

-6

-7

-8

ES
BCG
• The BCG matrix,  Boston Consulting group analysis is a chart that had
been created to help firms with analyzing their business units or product
lines. This helps the company allocate resources and is used as an
analytical tool in brand marketing, product management, Strategic
management, and portfolio analysis.

• Stars are units with a high market share in a fast-growing industry.


• Question marks are growing rapidly and thus consume large amounts of cash, but
because they have low market shares they do not generate much cash
• Cash cows are units with high market share in a slow-growing industry. These units
typically generate cash in excess of the amount of cash needed to maintain the
business. 
• Dogs are units with low market share in a mature, slow-growing industry. These
units typically "break even", generating barely enough cash to maintain the
business's market share.
BCG
Departments Revenues Percent Profits Percent Percent Percent
Revenues profits Market growth
share rate
Management
Science 4000000 2560000
Department
36% 38 % 26% +13
Electrical 2000000 18 % 905000 13.4 % 7%
Engineering
+8
C& s Engineering 1500000 14 % 1010000 15 % 6.5 %
+9
Graduate studies 1000000 9% 475000 7% 15 %
and applied
sciences -1
Earth and 1100000 10 % 675000 10 % 13 %
environmental
sciences +4
Humanities & 1000000 9% 705000 10.4 12 %
Social sciences
Humanities & +9
Social sciences
Department of Law 800000 7% 420000 6.2 % 14 %
Department of Law
-11
Total 11200000 6750000
Relative Market Share
BCG
1 0.5 0
20
Aggressive Retrenchment

Management
sciences C& s
Electrical Engineering Earth
Engineering and
Industry environm
ental
Growth Earth and sciences
environmental
rate 0 sciences

Developme Turn around


Graduate studies
nt and applied sciences

Market
/Product

Earth and
environmental
sciences

-20
GSM
Grand Strategy Matrix has emerged into a powerful tool in devising alternative
strategies. This matrix is basically based on four important elements:
• Rapid Market Growth
• Slow Market Growth
• Strong Competitive Position
• Weak Competitive Position

Quadrant I
The quadrant one of the Grand Strategy Matrix is meant for those firms which are in a strong
competitive position and flourishing with rapid market growth.
Quadrant II
Firms and divisions falling in quadrant two of the Grand Strategy Matrix are characterized with
a weak competitive position in fast growing market.
Quadrant III
The quadrant three firms are operating in a slow growth industry with a weak competitive
position. These firms are prone to further decline which may result possibly in liquidation.
Quadrant IV
The firms falling in quadrant IV are characterized as having a strong competitive position but
are operating in a slow growth industry. 
GSM

BU
3
Decision
QSPM
QSPM
QSPM that is a tool for objective evaluation of alternative strategies. A
quantitative method used to collect data and prepare a matrix for
strategic planning. It is based on identified internal and external success
factors. 
It is designed to determine the relative attractiveness of feasible
alternative action. This technique objectively indicates which alternative
strategies are best.
The QSPM uses input from 
Stage 1 analyses and matching results from Stage 2 analyses to decide objectively among
alternative  strategies. That is, the EFE Matrix, IFE Matrix, and Competitive Profile Matrix
that make up Stage 1, coupled with the TOWS Matrix, SPACE Analysis, BCG Matrix, IE
Matrix, and Grand Strategy Matrix  that make up Stage 2, provide the needed information
for setting up the QSPM
(Stage 3)
STRATEGIC ALTERNATIVES
Strategy Set 1 Strategy Set 2
Development Retrenchment
Key factors Weight AS TAS AS TAS

Opportunities

Research and Development 0.08 3 0.24 2 0.16


Innovation in education 0.05 3 0.15 3 0.15
New programs 0.06 3 0.18 2 0.12
More campuses 0.04 - - - -
Moving to other region 0.07 - - - -
Introduce Incentive program 0.08 3 0.24 4 0.32
Recreational activities 0.05 - - - -
Transportation facilities 0.07 - - - -

Threats

highly tech environment by competitors 0.04 4 0.16 2 0.08


Economic Consequences 0.05 - - - -
Reliance on Temporary Faculty 0.04 - - - -
Government Policies 0.03 - - - -
Marketing & recruitment by competitors 0.06 3 0.18 4 0.24
Internal environment 0.05 3 0.15 2 0.10
THANKS

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