Presentation contains the strategic report for PIA including the growth rate and SWOT. Best for Business Management and Strategic Management's Students.

1. PAKISTAN INTERNATIONAL
AIRLINES, PIA
STRATEGIC REPORT

2. VISION STATEMENT
‘’PIA aims to carve the utmost flying experiences consistently.’’

3. MISSION STATEMENT
‘’To set 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’’

4. COMPONENETS OF MISSION STATEMENT
.CUSTOMERS
• People who want their flying experience to be memorable each time.
.SERVICES
• Taking guests from one destination to another with safety, punctuality and entertainment.
.TECHNOLOGY
• State of the art airplanes.

5. …
.PHILOSOPHY
• organization believes in giving utmost flying experiences on consistent basis to the guests and by
reaching out an extra mile to meet their needs.
.SELF CONCEPT
• The determination to set excellence standards covers the self-concept aspect.
.CONCERN FOR GROWTH
• That part consistency shows that the organizations survival and profitability depends upon it, if we
lose we will lose it all.

6. …
.PUBLIC IMAGE
• That their needs will be met and for that the organization is willing to take an extra mile.
.MARKET
• Across the globe.

7. STRATEGY FORMULATION
• IFE
• EFE
• CPM
INPUT STAGE
• SWOT
• SPACE
• BCG
• IE
• GRAND STRATEGY
MATCHING STAGE
• QSPM MATRIXDECISION STAGE

8. INPUT STAGE
INTERNAL FACTOR EVALUATION MATRIX:
STRENGHTHS
Point to point frequency 0.07 3 0.21
Broader target market 0.08 3 0.24
First movers (experience advantage) 0.02 4 0.08
Brand Image 0.2 4 0.8
Huge destination coverage 0.04 4 0.16
State to the art fleet 0.07 4 0.28
Financial resources 0.08 4 0.32
Competitive staff 0.02 3 0.06
Monopoly 0.06 3 0.18
WEAKNESSES
Corruption 0.05 2 0.1
Dysfunctional structure 0.04 2 0.08
Strong domestic competition with airlines 0.04 1 0.04
Non professionalism 0.05 2 0.1
Strong union hold 0.04 2 0.08
Bad allocation of resources 0.05 1 0.05
Government influence 0.06 2 0.12
Over staffing 0.05 1 0.05
Low awards and appraisals 0.04 2 0.08
Debt 0.05 1 0.05

9. …
EXTERNAL FACTOR EVALUATION MATRIX:
OPPORTUNITIES WEIGHTS (W) SCORE (S) W*S
• Subsidy on oil prices 0.04 4 0.16
• Ability to have maximum fleet and route 0.03 3 0.09
• Increasing number of airports 0.05 4 0.04
• Air crashes of other airlines 0.2 4 0.08
• Changing customer trends 0.03 3 0.09
• Low cost barriers 0.07 3 0.21
• Industry recovery predicted 0.08 4 0.32
• Better recruitment policy 0.06 3 0.18
• Globalization of speed-ex 0.05 3 0.15
THREATS
• Increase in interest rates 0.05 2 0.1
• Increasing oil prices globally 0.04 3 0.12
• New entrants 0.04 2 0.08
• Inflation 0.05 2 0.1
• Privatization 0.06 3 0.18
• Terrorism threat 0.05 3 0.15
• Time consumed by embassy for the visa 0.04 2 0.08
• Devalue of currency 0.07 1 0.07
TOTAL 1 46 2.2

10. …
COMPETITIVE PROFILE MATRIX:
PIA Air Blue
FACTORS Weight
(W)
Score
(S)
W*S Weight
(W)
Score
(S)
W*S
Advertising 0.05 2 0.1 0.05 1 0.05
Market Share 0.30 3 0.9 0.30 2 0.60
Safety 0.10 3 0.3 0.10 2 0.20
Punctuality 0.15 4 0.6 0.15 2 0.30
Fare charges 0.05 1 0.05 0.05 3 0.15
Customer Expectations 0.10 3 0.3 0.10 2 0.20
Management 0.05 2 0.1 0.05 1 0.05
Reliability 0.05 3 0.15 0.05 1 0.05
Resources 0.10 4 0.4 0.10 2 0.20
Technology 0.05 4 0.2 0.05 2 0.10
TOTAL 1 30 3.1 1 17 1.9

11. MATCHING STAGE
MATCHING STAGE
SPACE
MATRIX
BCG
MATRIX
SWOT
MATRIX
IE
MATRIX
GRAND
STRATEGY
MATRIX

12. SPACE MATRIX
INTERNAL STRATEGIC
POSITION
EXTERNAL STRATEGIC POSITION
Y- AXIS
FP+SP = -1.8
FINANCIAL POSITION (FP)
ROI = +2
ROE = +2
Liquidity ratio = +3
Leverage ratio = +1
Working Capital = +1
Average = +1.8
STABILITY POSITION (SP)
Barriers to entry = -1
Inflation = -4
Technology Advancement = -3
Competitive pressure = -6
Poor law and order situation = -4
Average = -3.6
X-AXIS
CP+IP = +1
COMPETITIVE POSITION (CP)
Market share = -3
Huge fleet = -1
Service quality = -4
Direct flight = -2
Management Experience = -1
Average = -2.2
INDUSTRY POSITION (IP)
Growth potential = +3
Fuel price stability = +1
Government support = +5
Entry-exit barriers = +5
Financial stability = +2
Average = 3.2

13. …

14. BCG MATRIX
DESTINATION INDUSTRY
GROWTH
MARKET
SHARE
PROFIT % PROFIT
LHR-KHI 19% 1.00 50 50/100 =50%
LHR-ISB 10% 0.65 10 10/100 = 10%
KHI-DUBAI -9% 0.44 5 5/100 = 5%
ISB-USA 16% 0.75 35 35/100 = 35%
TOTAL 100

15. …

16. INTERNAL EXTERNAL (IE) MATRIX
The IE matrix is based on the following two criteria:
• Score from the EFE matrix is plotted on the y-axis i.e. 2.2
• Score from the IFE matrix is plotted on the x-axis i.e. 3.08
IE RESULT:
Having a look at the graph of IE MATRIX on the next page, PIA falls in the 4th cell which
suggests grow and build strategy for PIA so the strategies available for them are,
intensive integrative strategies and intensive market penetration, market development
and product development.

17. …

18. SWOT MATRIX
STRENGTHS-S
1. STRONG BRAND
2. MONOPLY AT HAJ FLIGHTS
3. GREATER ACCESS TO DESTINATIONS WORLD WIDE
4. FINANCE W.H.O GOVERNMENT
5. HUGE JET FLEET
WEAKNESSES-W
1. HIGH MAINTENANCE COSTS
2. OVER STAFFING
3. CORRUPTION
4. UNION HOLD
5. LOW MOTIVATION OF EMPLOYEES
OPPORTUNITIES-O
1. USE OF ALTERNATIVE FUEL
2. INCREASED TRAVELLING IN ASIA
3. MERGER AND ACQUSITIONS
4. NEW DESTINATIONS
5. GLOBALIZATION OF FED-X
SO
(S4, O3), Acquire Shaheen airways to get its share.
(S3, O5), Focus on the Asian market more to benefit from
increasing demand and wider access to worldwide
destinations.
(S4, S2, O1), Make the haj flights more profitable by saving
on fuel costs.
WO
(W1, W4, W5, O3), Merger could be a way to get rid of
aging crafts resulting in high maintenance costs, new
employees coming over would help the existing
employees in getting motivation and to weaken the
union hold.
THREATS-T
1. FOREIGN EXCHANGE RISK
2. WORLD WIDE WEAK ECONOMIC
CONDITIONS
3. TERRRORISM
4. INNTENSE COMPETITION
5. POLITICAL INTERFERENCE
ST
(S4, T3), the threat of poor security situation in our
country can be overcome by adding advance
security systems and equipment.
(S1, T4), Marketing the strong brand name properly
can reduce the competition.
WT
(W2, T5, T2), Introduce culture of merit in HR
practices.

19. GRAND STRATEGY MATRIX
• With reference to BCG matrix the growth rate of the four destination routes are as
follows:
• DESTINATION GROWTH RATE
• LHR-KHI 19%
• LHR-ISB 10%
• ISB-USA 16%
• KHI-DUBAI -9%
•
• And the competitive position with reference to space matrix is -2.2

20. Quadrant 2 Quadrant 1
LHR-KHI 19%
LHR-ISB 10%
ISB-USA 16%
Quadrant 3 Quadrant 4
KHI-DUBAI -9%
Strong
Competitive
position
Weak
Competitive
position
Slow Market Growth
Rapid Market Growth
-2.2
…

21. THE END
QUESTIONS AND QUERIES