presentation on shareholders descriptions presented by the students of hailey college of commerce. this was presented to prof halima tariq................................................

2. SANA AHMAD MC16-001
JAVERIA BARKAAT MC16-002
MINAHIL SLEEM MC16-006
ANAM SHEZADI MC16-016
USWA IMRAN MC16-017

3. OPRESSION AND MISMANAGEMENT

4. OPRESSION
According to the dictionary meaning of word is any act exercised in
a manner burdensome , harsh and wrongful.
The term oppression has been explained by lord cooper:
”the essence of the matter seems to be that the conduct complained of
conduct complained of should at the lowest involve a visible departure from
visible departure from the standards of fair dealing , and violation of the

6. MISMANAGEMENT
When prejudicial to the public interest or the company’s interest.
n the affairs of the company are being conducted in a manner
Or
When by a reason of material change in the management or control of the
management or control of the company the affairs of the company are likely
the company are likely to be conducted in a manner prejudicial to the public

7. ACTSTO BE HELDUNDER MISMANGEMENT & OPRESSION
 Not calling a general meeting and keeping the shareholders in dark.
 Non maintenance of statutory records in accordance with companies act.
 Depriving a member of the right to dividend.
 If sale of asset is made by a company to some of its directors an
simultaneously giving them loan to purchase the same.
 Illegal constitution of the board of directors.
 Diversion of the fund to benefit the majority.
 Operation of bank account by an unauthorized person.
 Sale of assets at low price and without compliance with the act.
 Violation of statutory provisions , memorandum and articles.

9.  In 1946,Mr.Ali Jinnah realized the need of airlines with the help of
industrialist Mirza Ahmad Ispahani.
 On 23rd Oct. 1946, orient airways was established
and Mr.M.A.Ispahani was its chairman.
 In 1947,Govt of the country granted a license to Orient Airways.
 Orient airways started operations in June 1947.
 After two months of services of orient airways, Pakistan was formed.
 Orient airways had less capacity to fulfill the growing needs of large
population of Pakistan.
 Govt. decided to form a state owned airline and orient airlines was
merged into it.
 The outcome of the merger was the birth of a new airline named
Pakistan International Airlines on 11 March 1955.

10. DOMESTIC&INTERNATIONALNETWORKOFPIA

11. VISIONSTATEMENT‘
’PIA aims to carve the utmost flying experiences consistently.’’
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’’

12. “TRUTH SUFFERS FROM TOO MUCH
ANALYSIS”

13. Strength
 Point to point frequency ( Lahore to London)
 High quality services
 People oriented organization(no language
problem)
 Govt. sponsered organization
 Perfect Timing
 Abroad Pakistanis prefer PIA (Patriotism)
 Healthy International Environment

14. Weaknesses
 Less international traffic
 Liquor is not served so less traffic
 Weak reward and appraisal
 Less effort in the field of marketing
 High fairs
 Overstaffing (overburdened employees)
 Lack of professionalism
 Low salary of engineers

15. Opportunity
 Traffic ethnic
 Better recruitment Policy
 Big markets are available that are unserved
 Speed ex, courier service domestically can be
internationally
 Low cost carriers
 Better training programs
 Have an opportunity to grow and expand through out
the country

16. Threats
All domestic and international
 carrier
Fluctuating petrol services
Govt. changing
Barriers to
investment and
broad due to country
conditions
Time taken by embassy to accept Visa
Terrorism
Busy flight schedule
Open sky policy
High amount of loan

17. PORTER 5 FORCES MODEL

19. PIA Financial Analysis over years
year Revenue PKR(Million) Loss PKR(Million) Employees (Ave.)
2014 99.519 (32.222) 18.119
2013 95.771 (44.3220) 18.109
2010 107.532 (20.785) 18.019
2009 94.564 (5.822) 17.944
2008 88.863 (36.139) 18.036
2007 70.481 (13.399) 18.149
2006 70.587 (12.763) 18.282

21. Social Factors:
• Ethnic traffic is
present on PIA
• Language barriers
are not present
• Act of patriotism
Technological Factors:
 Supply chain is not
present
 Logistics issues are there
Economics Factors:
• Increase fuel prices increase tickets
prices
• Inflations creates problems Pakistan
International Airline
Political Factors:
• Political instability
• Political pressure
Environmental Factors:
• Fuel emission
• Green fuel
• Legal Factors
Legal factors:
• Liquor can’t be
served
• Firing of employee
STEPEL ANALYSIS

23.  MISMANAGEMENT AFFAIRS
OF PIA:
Poor strategic decisions.
Non profitable routes.
Weak human resource
department.
Lack of check and balance.
Lack of coordination.
Lack of expertise.
• OTHER MISMANAGING
AFFAIRS:
Overbooking and mishandling also creates
trouble.
Misappropriation of work is one of the
main issue like engineer work as
accountant.
Political interference.
No motivational campaigns.
Jobs are not clearly defined which effect
efficiency and working relation of
employees.
For refund customers have to come to
office which create problem to them .
Complication in realization in revenue.

24. Demotivation
Pay Scale :
• Govt. announcement of annual pay increases of govt. employees is not
allowed.
• No time bound policy on holding promotion boards on regular basis.
• Difference in pay scale of regular and contractual employees.
Appointments: regular and contractual out soured services
• Political influence – external appointments.
• Delay wages employees ( 4000) are hired through sub contractor and
later get regularized through president order ( daily wages category
ranges from PG-1 to PG-9 or equivalent.
• Contractual employees are offered regularization at the cost of 50-60%
net pay reduction.

25. Delay in Flights
Pakistan international airlines is badly effected by mismanagement due to which there is no order to the
schedule of national and international flights.
CaseLaw
Mr. Rabbani said that he had come to know through media reports that the director flight operations
had resigned because of an ongoing tug of war between the management and pilots association
.moreover he said the recent decision of privatization commission to appoint a financial adviser for the
PIA had also created a controversy as according to media reports other firms taking part in the process
had raised serious objections on the appointment and termed it “nontransparent and nepotism at its
peak” (published at DAWN)
In 2007 European commission had banned PIA and as a result Saeed Karmani resigned.

28. FURTHER OBSERVATIONS:
-Work environment and organization culture
-Due to unions /association the work environment is not professional(banners ,
pressure groups , other activities)
-Bias
-Uneven provisioning of resources-some departments have all facilities and
some have none.
“ onlythroughacquiringoutsourcedservicesoflimited
services/functionsitcanbringbetermanagementpracticesvia
privatization.”
-For this it needs arrangement from the board of directors .

29. EMPLOYEMENT:
According to director human resource PIA has employed almost 20 thousand persons and according to
this ratio for one plane 590 employees are working. According to international standard 150-225 people
are for only one plane
“ NEEDSTO CUTITS COAT ACCORDING TO ITSCLOTH”
Justice Sheikh Azmat has called it a world record and said that it
should be added to geniesbookof worldrecord.
NO. OF EMLOYEES: approved position 19159
Employed 1289
On daily wages 3058
Total 23605

30. (Theyareperfectandexperiencedpilotsbutlackmanagement
skillsandarenotavailable,speciallywhenPALPAannouncesa
strike)-disturbsmanagerialcontinuity.

31. Maintenance and security:
Planes are not properly maintained and there is risk to its
security PIA’s management
ABOUT 10 FLEETS WENT
TO DIFRENT COUNTRIES
WITHOUT PAKISTANI FLAG

32. ACCIDENTS:
LOSS OF CRAFTS
December 7,
2016
•Incident: Plane
crash
•Plane
Model: ATR 42-
500
•Year Built: 2007
•Location: Near
Havelian,
Abbottabad
(Pakistan)
August 8, 2016
• Incident: Technical
difficulty
• Year Built: 2007
• Flight Number: PK-
451
• Location: Benazir
Bhutto
International Air
Port (BBIAP) –
Islamabad
(Pakistan)

34. ACCIDENTS
Total number of killed passengers and crew is 661
From May 20,1965-ToDecember 7,2016

36. Reasons of Accidents

37. Secret Politics behind privatization of PIA
THE HOTEL ROSEVELT
(established in 1924 Manhattan ,newyork consists of 1015 rooms,
52 sweets having
prize of 1.2 Million but Govt.
Have sold it to Mian Mansha in just 9 Million
(not in even the 1% of the real market prize) )

38. IMPLEMENTATION OF PLANS
PIA is no doubt in crises. There is a need for a plan that help
them out to overcome problems that PIA is facing in financial ,
marketing, human resource, quality control, research and
development etc.
It must be financially balanced
Promotional plans like Agency relationship, media planning,
Total quality management, research and development

39. CONCLUSION
No doubt PIA is still a strong brand name in Pakistan but due to
mismanagement , economic and other variable issues PIA is facing
crises which is making PIA down. But we all hope that in next few
years PIA will show up with a positive change.

40. THANK YOU