STRATEGIC MANAGEMENT IFE, EFE & TOWS analysis of Mobilink

1. ASSIGNMENT
SUBJECT: STRATEGIC MANAGEMENT
TOPIC: IFE, EFE & TOWS ANALYSIS
OF MOBILINK
SUBMITTED TO: Dr. Mubashir Mehdi
SUBMITTED BY: Sher Ali Asim
2016-ag-4937
MBA (2.5) 3rd
Semester
INSTITUTE OF BUSINESS MANAGEMENT SCIENCES

2. UNIVERSITY OF AGRICULTURE FAISALABAD
INTRODUCTION
Jazz is part of the VEON Group, an international communications and technology
company driven by a vision to unlock new opportunities for customers as they navigate
the digital world. Present in some of the world’s most dynamic markets, Veon provides
more than 235 million customers with voice, fixed broadband, data and digital services.
VEON’s heritage as a pioneer in technology is the driving force behind a major
transformation focused on bringing the digital world to each and every customer.
VEON is headquartered in Amsterdam, the Netherlands, and is traded on the NASDAQ
Global Select Market under the symbol “VIP”.
JAZZ-PAKISTAN
Jazz is Pakistan’s leading telecom service provider, spearheading service excellence
and product innovation in the country. With a subscriber base above 50 million and a
legacy of more than 20 years, Jazz maintains market leadership through cutting-edge,
integrated technology, the strongest brands and the largest portfolio of value added
services in the industry.
Housing a nation-wide network of contact centers and an unparalleled fibre optic
backbone of more than 10,000 kilometers, Jazz has already invested billions of dollars
in the country to date. It also provides uninterrupted countrywide connectivity,
unmatched customer services and international roaming in over 150 countries.
As a responsible entity, the company passionately supports education, health and
environmental initiatives and promotes sustainable business practices.
Jazz offers exclusive & personalized tariff plans that empower customers and cater to
the communication needs of a diverse group of people, from individuals to businessmen
to corporate and multinationals.
Through its innovative services and products, Jazz is set to bring about a digital
revolution that will enable and transform societies towards a more progressive Pakistan.
POLICY STATEMENT
Jazz aims to be the safest place to work in Pakistan. We care about our employees, the
way we conduct business, the environment and our communities. We will leave no
stone unturned to prevent accidents and illnesses in our workplace, and provide our
employees and customers a healthy and safe working environment.
VISION & MISSION
Jazz aims to be the best employer in Pakistan. An integral part of this ambition is to
provide our employees and customers a safe and healthy work environment, and to

3. achieve this we will use our full resources to prevent accidents and illnesses in our
workplace.
Being a responsible corporate citizen of Pakistan, we believe we have an inherent duty
to propagate innovative work practices in the country and be an example for others.
Bringing Safety to the forefront of business shows our dedication to the people who
work with us and our duty of care to all those associated with the organization.
GOALS & OBJECTIVES
As an organization, we will inculcate a culture of safe work practices. We want to be the
benchmark company in Pakistan, with a reputation of providing a unique, exciting, safe
and healthy work environment.
We will be transparent in reporting, objective in investigating and constantly strive to
minimize the risk of harm to our employees and damage to the environment.
Jazz undertakes to develop and sustain a world class Occupational Health, Safety,
Security & Environment function.
THE MANTRA
Jazz – Dunya Ko Bataa Do!

4. EXTERNAL FACTOR EVALUATION MATRIX (EFE)
An External Factor Evaluation (EFE) Matrix allows strategists to summarize and
evaluate economic, social, cultural, demographic, environmental, political,
governmental, legal, technological, and competitive information. The EFE matrix
consists of five steps process.
Five-Step process:
• List key external factors (10-20)
Opportunities & threats. A list of key external factors has to be prepared which will affect
the EFE matrix. These factors should be two points to be kept in mind these are
opportunities and threats
• Assign weight to each (0 to 1.0)
Sum of all weights = 1.0
Now you have to arrange them according to their weight age that which factor is most
important. It should be weight age in % ages. The sum of the total of all the factors
should always be one.
• Assign 1-4 rating to each factor
1 – Poor 2 – Below Average
3 – Above Average 4 - Superior
• Multiply each factor’s weight by its rating
Produces a weighted score
• Sum the weighted scores for each
Determines the total weighted score for the organization.
Highest possible weighted score for the organization is 4.0; the lowest, 1.0. Average =
2.5

5. External Factor Evaluation Matrix (EFE)
OPPORTUNITIES Weight Ratings
Weighted
Score
1 Rapid growth in Internet usage at Cell phones 0.15 4 0.6
2
Growing population of Pakistan (2.4% annually)
207.8 Millions currently
0.1 2 0.2
3 Highest teledensity in the region 0.08 2 0.16
4
Expansion Potential to outreach the far-flung areas
of the country
0.1 3 0.3
5 Business friendly government policies 0.07 2 0.1
THREATS
1
Change in Taste
Consumers can change their tastes very quickly
and switch to other networks retaining the same
SIM number via MNP (Mobile Number Portability).
0.12 3 0.36
2 Intensive competition (Price war) 0.15 4 0.6
3
Allegations of health risks related to the use of
mobile telecommunication devices
0.05 2 0.1
4 Highly taxed sector in Pakistan 0.1 3 0.3
5
Social unrest or military conflicts resulting in the
shutdown of mobile phone services
0.08 3 0.24
Total Weighted Score 1 2.96
The total weighted score for Mobilink External Factor Analysis is 2.96 which is above
average.

6. INTERNAL FACTORS EVALUATION MATRIX (IFE)
A summary step in conducting an internal strategic-management audit is to construct an
Internal Factor Evaluation (IFE) Matrix. This strategy-formulation tool summarizes and
evaluates the major strengths and weaknesses in the functional areas of a business,
and it also provides a basis for identifying and evaluating relationships among those
areas. Intuitive judgments are required in developing an IFE Matrix. A thorough
understanding of the factors included is more important than the actual numbers.
Similar to the EFE Matrix an IFE Matrix can be developed in five steps:
 List key internal factors (10-20)
Strengths & weaknesses: A list of key internal factors has to be prepared which will
affect the IFE matrix. These factors should be two points to be kept in mind these are
strengths and weaknesses
 Assign weight to each (0 to 1.0)
Sum of all weights = 1.0
Now you have to arrange them according to their weight age that which factor is most
important. It should be weight age in % ages. The sum of the total of all the factors
should always be one.
 Assign 1-4 rating to each factor
1 – Poor 2 – Below Average
3 – Above Average 4 - Superior
 Multiply each factor’s weight by its rating
Produces a weighted score
.
 Sum the weighted scores for each
Determines the total weighted score for the organization.
Highest possible weighted score for the organization is 4.0; the lowest, 1.0. Average =
2.5

7. Internal Factor Evaluation Matrix (IFE)
STRENGTHS Weight Ratings
Weighted
Score
1 Strong Brand Name 0.2 4 0.8
2
Economies of Scale
Largest market share after WARID merger
(38% market share)
0.1 3 0.3
3
Achieving 4G/LTE status through the
acquisition of WARID
0.12 4 0.48
4
Among top 10 mobile phone operators in the
world
0.08 2 0.16
5
Technology
Recent network modernization and system
upgrades
0.14 4 0.56
WEAKNESSES
1
Dependency on third parties for certain
services and products
0.1 3 0.3
2
Dwindling workforce motivation because of
recent lay-off.
0.05 1 0.05
3
Difficulties in integrating the operations of
Warid and Mobilink
0.08 2 0.16
4 Weak marketing and online presence 0.05 3 0.15
5
Less attentions/focus towards internet
services
0.08 2 0.16
Total Weighted Score 1 3.12
The total weighted score for Mobilink Internal Factor Analysis is 3.12 which is above
average.

8. TOWS MATRIX:
Strengths–S
S1. Strong Brand Name
S2. Largest market share
S3. 4G/LTE status through
the acquisition of WARID
S4. Among top 10 mobile
phone operators in the world
S5. Technology
Weaknesses – W
W1. Dependency on third
parties
W2. Dwindling workforce
motivation
W3. Difficulties in integrating
the operations of Warid and
Mobilink
W4. Weak marketing and
online presence
W5. Less attentions/focus
towards internet services
Opportunities – O
O1. Rapid growth in Internet
usage at Cell phones
O2. Growing population of
Pakistan (2.4% annually)
O3. Highest teledensity in the
region
O4. Expansion Potential to
outreach the far-flung areas of
the country
O5. Business friendly
government policies
SO-Strategies
S1, O4 Market Development
S3,O1 Product Development
S5,O2 Market Penetration
WO-Strategies
W4, O2 Market Development
W5, O1 Product Development
W3, O3 Achieve Merger
Synergies to gain more market
share
Threats – T
T1. Change in Taste
T2. Intensive competition
(Price war)
T3. Allegations of health risks
related to the use of mobile
telecommunication devices
T4. Highly taxed sector in
Pakistan
T5. Social unrest or military
conflicts
ST-Strategies
S1,T1 Product Development
S2,T2 Cost leadership
WT-Strategies
W5,T1 Product Development