The document provides an overview of the Avari Group, a hospitality company based in Pakistan. It discusses the company's history starting in 1947, operations including hotels in Pakistan and Dubai. It profiles the Avari family members including Dinshaw Byramji Avari, who founded the company, and his successors Byram Avari, Dinshaw, and Xerus. In 2010, the Chairman Byram D. Avari was considering challenges facing the company related to Pakistan's economic problems and the company's lifelong employment policy. He was thinking about how to groom the next generation and manage business challenges going forward.

1. Presented by :
M . Mudassir Altaf L1F16MBAM0052
Kiran Sabir L1F16MBAM0051

2. Dinshaw Byramji Avari
Byram D. Avari
Dinshaw Xerxes

3. Introduction to Avari Group

4. • Start its journey after Pakistan came into existence
in 1947.
• Operated one 3-Star and two 5-Stars hotels in
Pakistan
▫ Avari Karachi
▫ Avari Lahore
▫ Beach Luxury hotel
• International level:
▫ Managed two 4-Stars hotels in Dubai
▫ 5-Stars hotel Avari Suites Al-Barsha
• Real estate ventures :
Avari Plaza
ATA (Avari Travel Agencies)
Spencer Pakistan operating since 1948

5. Hotel industry overview:
• Hotel industry catered to Basic needs of any client
• On average, Share of Foreign guests increased to
35%
• Hotel business is an integral part of tourism
industry
• Tourism industry a major source of foreign
exchange
• Significant excess demand during peak seasons
• Hotel is the core business of Avari group

6. Geographical Distribution
• Table 1. Total Number of Rooms Available in All
the Five-star Hotels in Pakistan
City Avari Pearl Marriott Sheraton Serena Beach
Karachi 218 290 219 407 - 80
Lahore 186 559 – – – –
Islamabad 417∗ 193 150 – 392 –
Bhurban – 190 – – – –
Peshawar – 52 – – – –

7. Average Occupancy:
• Revenues in the hotel sector were almost 70 per cent
dependent on occupancy levels, which generated
• income not only from guestrooms but also other sources
such as food, beverages, laundry and other service-
• related Table 2. Occupancy Level
2008-09 2009-10
Average (Avari) 57.66% 5 7.86%
Average (PC) 49.55% 53.93%
Source :hotel departments. Hotel

8. Comparison with different hotel
• Table 4. Comparison of Occupancy Levels of Different
Hotels City-wise
2008–09 2009–10
Avari Lahore 54.53% 55.33%
Avari Towers Karachi 60. 80% 60.40%
Average (Avari) 57.66% 57.86%
PC Lahore 53.00% 47.34%
PC Karachi 49.76% 42.89%
PC Rawalpindi 52.00% 61.20%
PC Peshawar 36.00% –
PC Bhurban 5 7.00% 64.28%
Average (PC) 49.55% 53.93%

9. History of Avari Group:

10. Dinshaw Byramji Avari
• Born in 1902
• Brought up and schooled in Orphanage
• Get a degree in commerce
• joined Sunlife insurance Company in Canada As
a Clerk to chief executive
• After achieving highest sale in Mumbai he sent
to Karachi in 1929 to launch company’s branch
• He was first to get Charted Life Underwriter
(CLU) certificate in Asia

11. Cont…
• He bought Bristol Hotel in 1948 from an English
couple
• He would do all chores from room maintenance
to purchasing food
• After the success of Bristol he buy a cheap piece
of land in Karachi to build Beach Luxury Hotel
• Initially 35 room space insufficient for guest
soon hotel grown into 150 room
• was first in Pakistan who serve Buffet style
Dinner

12. Cont..
• By 1962 Avari group purchased Nedous Hotel in
lahore
• 1978 first collaboration with international hotel
management company
• Started Avari Travel Agencies in same year
• 1985 costructed Avari Tower in Karachi
• Faced many challenges in declining the demand
of Five stars hotels in pakistan
• Then he constructed Avari plaza that attracts
offices of many multinational corporations

13. Byram Avari
• Son of Dinshaw Byramji Avari
• Did MBA from IBA Karachi
• Started by working at lowest level as a potato peeler
• Moved on as Personal assistant at Beach Luxury
• Than appointed as managing director
• Became chairman and chief executive after his father’s
death
• They developed an environment where there was no
concept of retirement
• Aggressive in venturing into new business
• Took full control of Spencer Pharma Spencer Powergen
company

14. Dinshaw :
• Mba from IBA Karachi
• Summer internship in hotel
• Director at:
▫ Spencer pharma
▫ Avari Travel Agencies
▫ Avari international Hotels
▫ Spencer Powergen
• Joined the business in 1990
• Looked after marketing, operations, information
technology Human Resource

15. Xerus:
• MBA form Karachi
• Joined business in 1991
• Dealing with financials, budgeting, tax,
renovations their hotels
• Executive Director at:
▫ Avari Group
▫ Avari Hotels
▫ Beach Luxury Hotels
▫ Spencer & co
▫ ATA

16. Overview of case:
• In 2010, Avari Group was approaching the end of six
decades of successful operations. While reflecting
• on Avari Group’s past successes, Byram D. Avari, the
Chairman, was also thinking about the
organization’s future.
• he was thinking about the dilemma he was facing
regarding the lifelong employment policy of Avari
Group
• due to low business opportunities and low growth in
Pakistan, most of the other five-star hotels were
reducing headcounts in their organizations

17. Discussions Questions:

18. 1: Facing Business and organizational
Challenges in 2009
• Hotel industry facing challenges
• Economic problems, poor law , ongoing war on
terrorism
• Low occupancy decline in business activities in
major cities Karachi, Lahore, Islamabad
• Facing real test of their core values employee
compensation, welfare, motivation, growth
• Lifelong employment policy
• Due to low growth in Pakistan reducing
headcounts in their organizations

19. 2: Strengths and weaknesses of Avari
Group
Strengths:
• Commitment of work
• Employee collaboration
• WTA(World Travel Awards)
• The Avari Chain
• International management
contracts
• big hotel chains entered the
market such as Avari (formerly
Hilton and Ramada)
Weaknesses:
• Chairman is not risk taker
• Low growth in Pakistan
• Lack of mass marketing

20. 2:Dinshaw's personality And Leadreship
style
• Risk taker
• Energetic and passionate
• provide equal opportunities for people from all
religions and backgrounds to grow
• Critical decision making
• Visionary personality
• Opportunity seeker
• Young thought
• Flexible approach

21. 3: Challenges face in grooming next
generation
• planned to send their children to universities abroad for
professional education.
• According to them, they had come to a stage where strategic
issues were more pressing than operational issues. They had
highly skilled operational managers reporting to them.
• to develop competencies that would help them better manage
the corporate office
• before joining the family business, they would like their
successors to work in a large international chain of hotels,
preferably as assistants to the CEO
• importance of the value system
• take all business decisions in consultation with each other and
their father.
• same sense of belonging to their next generation.

23. 4:Alternatives for avari Group to
manage business related challanges
• Different options are available for the Avari to
resolve the problem:
• 1. Whether they provide retirement to the old
employees and revise their core values.
• how it was holding and keeping the sprit and
core values intact during a crisis.
• 2. Whether they cut off the salaries of the
employees for the time being to cope up this
situation.

24. 5: Sugesstion of specefic actions
• For me 2nd option is better for them because core values are strengths of Avari
group
• They should grow their business in another cities of Pakistan
• Regular training of sale staff of competitor
• Discriminations between contract and Avari employees
• This is responsibility of the government to remove the concept of Contract
employees
• If Avari ads more facilities and services it can catch more market share