The document provides an analysis of managerial policies at Pakistan International Airlines (PIA). It begins with an introduction thanking various parties for their support. It then includes an analysis of PIA's external factors like political, economic, social, and technological factors. It also discusses PIA's mission, vision, objectives, goals, and proposed revised mission statement. Various matrices are included to analyze PIA's competitive position and strategies.

1. MANAGERIAL POLICY
PRESENTED BY
GROUP “A”
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2. First of all WE thankful to almighty Allah who has granted us power, knowledge, and
expertise to be able to meet with any academic and social challenge. Then we highly
indebted to course instructor Mr. ZUBAIR AHMED who has always been there to assist
and support us to complete the assignment with much more ease than anticipated.
Moreover, our parents prayers are potential sources to boost up our confidence in
terms of achieving targets put forth to us by my teacher. last but not the least friends
have cooperated and made me understand the patchy aspects of the assignment. For
the above act of kindness on the part of everyone involved in the process we shall ever
remain grateful to them.
Regards,
Imran A. Ansari
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3. Table of Contents
1. Introduction………………………………………………………………… 3
2. EFE evaluation………………………………………………………………3
3. management…………………………………………………………………10
4. mission and vision ………………………………………………………… 11
5. evaluation of mission statement …………………………………………. ..12
6. proposed mission statement ……………………………………………….. 12
7. EFE ………………………………………………………………………. 13
8. IFE …………………………………………………………………………. 14
9. CPM ………………………………………………………………………... 15
10. Porter’s 5 forces role at PIA ………………………………………………… 16
11. SWOT analysis ……………………………………………………………. 17
12. BCG matrix …………………………………………………………………. 19
13. IE matrix …………………………………………………………………….. 20
14. SPACE matrix ………………………………………………………………. 21
15. QSPM matrix ……………………………………………………………….. 22
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4. INTRODUCTION
Pakistan International Airlines Corporation is a Pakistan-based company that is
principally engaged in the provision of air transport services. Other activities of the
Company include provision of engineering and other allied services. The Company
operates in two business segments: airlines operation and hotel operation. The airlines
operation segment provides air transport and other allied services. Hotel operation
segment provides accommodation and related services in Pakistan, United States and
Europe. Its wholly owned subsidiaries include Sky rooms (Private) Limited and Midway
House (Private) Limited. Pakistan International Airlines Corporation has a 99% interest in
PIA Investments Limited.
EFE evaluation
PIA MOTO IS:PIA MOTO IS:
(GREAT PEOPLE TO FLY WITH).
1. PIA HEAD OFFICE IN
(OLD JINNAH TERMINAL KARACH).
2. FOUNDED OR ESTBLISHED IN 1955.
3. It is our homeland airline.
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5. 4. PIA was the first Asian airline to operate a jetliner when it leased the Boeing
707 from Pan am in 1960.passengercan be seen boarding the plane at London’s
Heathrow airport.
5. PIA was the first Asian airline to touch down the Norway in 1999.
 Skytrax (world air line rating program).
POLITICAL FACTORS
Political factors always have a great influence on the way businesses operate in
the airline industry and the spending power of customers. In recent years it has
been observed that government played an active role in increasing competition in
the airline industry. A number of new airlines such as AirBlue and JS Air have
been awarded licenses to enter the domestic market. Pakistan has achieved
some political stability in recent years. If the management of PIA believes that the
present government will perform well (consistently), then there will be more
investment in the form of purchase of new airplanes and latest technology. The
over all industry will grow resulting in more luxurious and comfortable flights. With
the military takeover government policies have become more liberal.
ECONOMIC FACTORS
Currently, Airlines industry has three major players: Pakistan International
Airlines, an Air blue, Aero Asia and Shaheen Airlines. Their target market
includes domestic travelers as well as Pakistanis living abroad particularly in the
UK and USA. These countries have strong economies coupled with high
purchasing power. Customers’ purchase behavior depends very much on prices
of the competing airlines as well as services offered. As
inflation rate is unstable in Pakistan, spending power of consumers has effected
in the long term. In fact growth in Pakistani economy has resulted in an increase
in spending power and has positively impacted the airline industry. Economically,
the new millennium has been highly volatile; the September 11 attacks
revolutionized the whole world. Consequently, there was a global depression in
the North America, South America, Australia and Europe. However, in Asia
especially Pakistan the effect in the short term was otherwise. The economy
began to boom because of greater remittances from abroad and whole sum
immigration by expatriates. As a result, demand for air travel in South Asia rose.
Economic conditions of Pakistan are however improving. PIA has cost a
advantage over its competitors because of its newly acquired, improved, long
distance aircrafts from Boeing’ which give longer range and better fuel economy
than any other jet currently produced. This cost advantage is a barrier to entry for
new firms. However, this cost advantage will not be significant on domestic
routes.
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6. SOCIAL FACTORS
The social arid cultural influences on business vary from country to country. The
social structure of Pakistan is closely tied. The trend is now changing as the
general public is educated and is pursuing professional goals. Customers are
more aware of market conditions and available options and want to get best
value for their money. They spend considerable time and money on
entertainment hence increasing the need of in-flight entertainment systems. Also,
word of mouth has a significant impact in the use of airline services. Hajj attracts
a huge number of customers. The social environment of Pakistan is turning
liberal with the new regime. The initiative to automate check-in and ticket booking
process might not be very popular with the general public (even educated
population) is still technology averse. E-ticketing might also face significant
challenges as consumers are generally reluctant to provide their credit cards
information over the phone and the internet. The consumers, however, have a
warm reaction to the prospect of less costly but quality service flights.
TECHNOLOGICAL FACTORS
Technology is vital for competitive advantage and is a major driver of the airlines
industry. Major technological changes are taking place in the airlines industry
with innovations in the reservations and booking systems. In-flight entertainment
systems and auto check in counters are two examples of such innovations.
Internet plays a key role in e-ticketing as consumer can easily reserve tickets or
check the status of the flight. A key issue will be the extent, to which
technological advancements (such as Internet) impact distribution and cost
synergies from industry consolidation, can offset upward pressures on costs. PIA
has always led the path of technological innovations by introducing new
technologies ahead of its competitors such as its auto check-in counters which
has helped it gain market share. It was the first airline in Pakistan to install Sabre
system followed by the market leader.
SOCIAL RESPONSIBILITIES
As a business leader, PIA is committed to making the better place. Leader about
PIA’s contributions to the progress of Pakistan and its ongoing corporate social
responsibilities program.
Safety Management System at PIA
PIA is the first airline to get certified (initial certification) on Safety Management
System (SMS) by Civil Aviation Authority CAA - Pakistan. CAA Air Navigation
Order (ANO 91.0032 issued in September 2008) binds all airlines operating in
Pakistan to have SMS. Well before the issuance of this ANO, PIA initiated SMS
awareness and implementation in July 2008. PIA awarded initial certification on
SMS in 27th February 2009 by CAA.
Part 2.Part 2.
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7. 1. Competitors: of P.I.A. is Shaheez air ways, Air blue.
2. Suppliers: Fuel supplier of PIA is Pakistan State oil
(PSO), Shell oil Refinery Company and some time Dubai
supply the oil to PIA.
3. DISTRIBUTORS: local travel agencies.
4. Creditors: State Bank of Pakistan, Pakistan State Oil (PSO).
5. CUSTOMERS; Business men, General people and Politician.
6. EMPLOYESS; HR persons, Finance persons, Marketing persons,
Security persons and etc….
7. COMMUNICATIES: Telephone, E-mail, By post and etc…
8. MANGERS: Marketing, Finance, HR and others.
9. STOCKHOLDERS: Government Of Pakistan.
10. LABOR UNIONS: Are available in PIA like cabin crew, Public dealing
staff and others.
11. GOVERRMENT: Involve Pakistani.
12. TRADE ASSOCIATION: Courier service like PIA has its own
courier service available “SpeedX”.
13. SPECIAL INTERESTED GROUP; Business men.
14. PRODUCTS: SPEEDX, Member ship card.
Business class and economy calss and etc…
15. SERVICE: Pick and drop from airport to hotel.
16. MARKET: Domestic market is very strong and small international
market because, there are three times in a week flights is Pakistan to
England and Pakistan to U.S.A. and non stop.
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8. 17. NATURAL ENVIROMENT: Pure drinking water, Plants are
available in Pakistani Airports etc…
Self workSelf work..
Competitive force:
1. Close competitor of PIA Air blue and Shaheez airways.
PIA has one advantage is that it has more domestic flight and direct flight
Karachi to London and other is New York to Karachi 3 times in a week.
ENVIROMENT FORCE
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9. 1. So many people are travel in PIA because no any other
Alternative is available in Pakistan in domestic routes.
Domestic - 24 Destinations
International - 36 + 2 Destinations
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10. MANAGEMENT
Strategic management
Systematic analysis of the factors associated with customers and competitors (the
external environment) and the organization itself (the internal environment) to provide
the basis for rethinking the current management practices. Its objective is to achieve
better alignment of corporate policies and strategic priorities
Strategic management concepts are related mainly to the business sector. Although, a
proper strategy is necessary to get success in every field of life, but this particular term is
mainly coined for the corporate sector.
“PIA uses strategic management concept and techniques by not only targeting
potential markets but deputing best officers to do the job of marketing/ sales and
finance. PIA focuses on the strength of the competitors like “connect air”,
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11. “equipment” and “fares” and matches then for the best results. Also it keeps an
eye on the weaknesses of the competitors and avoids making mistakes
committed by competitors. Likewise, opportunities of new markets or increasing
market share in existing market are same of the examples. The potential threat in
the terrorism, visa policy for Pakistan nationals, rising oil prices and aging fleet
are being addressed at their best.”
Objectives: Mission, purpose, or standard that can be reasonably achieved within the
expected timeframe and with the available resources. In general, an objective is broader
in scope than a goal, and may comprise of several different goals. Objectives are the
most basic planning tools underlying all planning and strategic activities. They serve as
the basis for policy and performance appraisals, and act as glue that binds the entire
organization together.
Goals :Establishing specific, measurable, attainable, realistic and time-targeted
objectives. Work on the goal-setting theory suggests that it can serve as an effective tool
for making progress by ensuring that participants have a clear awareness of what they
must do to achieve or help achieve an objective. On a personal level, the process of
setting goals allows people to specify and then work towards their own objectives —
most commonly financial or career-based goals. Goal-setting comprises a major
component of Personal development.
“Every year there are tow marketing conferences in which the goals are
communicated and performance are evaluated. PIA tasks serious remedies
where the performance of a station or SBK is not up to desired level.”
VISSION:
PIA’s vision is to be a world class airline meeting customer expectations
through excellent services, on-time performance, innovative products and
absolute safety.
MISSION:
Employee teams will contribute towards making PIA a global airline of
choice through:
• Offering quality customer services and innovative products.
• Using state-of-the-art technologies.
• Ensuring cost-effective measures in procurement and operations.
• Developing Safety Culture
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12. EVALUATION OF MISSION STATEMENT
MISSION STATEMENT COMPONENTS
MISSION STATEMENT
COMPONENTS
YES NO
CUSTOMERS YES
PRODUCT OR SERVICE YES
MARKETS YES
TECHNOLOGY YES
CONCERNS FOR
SURVIVAL,GROWTH,AND
PROFITABILITY
NO
PHILOSOPHY NO
SELF CONCEPT NO
CONCERN FOR PUBLIC
IMAGE
YES
CONCERN FOR EMPLOYEES
YES
As we analyze the mission statement of PIA we found some missing components.
Like:Like:
Philosophy, self concept and concern for survival growth profitabilityPhilosophy, self concept and concern for survival growth profitability
And we effort to add it.And we effort to add it.
PROPOSED:PROPOSED:
MISSION:
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13. Employee teams will contribute towards making PIA a global airline of choice
through:
• Offering quality customer services and innovative products.
• Using state-of-the-art technologies.
• Ensuring cost-effective measures in procurement and operations.
• Developing Safety Culture
• Providing value added services
• Facilitate the Pakistani nation give them importance with care profitability.
• Economical pricing fair treatment.
EFE
Key External Factors
Opportunities Weight Rating Weighted
Score
Having the maximum route and
fleet
0.08 3 0.24
Customer data base 0.09 4 0.36
Removal of international trade
barriers
0.03 2 0.06
Shifting customer needs 0.12 3 0.36
Industry Recovery 0.04 1 0.04
Arrival of new technologies 0.16 2 0.32
Threats
Political involvement 0.08 3 0.24
Accidents 0.06 2 0.12
Strong Competition 0.07 1 0.07
Interest and foreign currency
exchange
0.06 3 0.18
Decline in airline industry 0.06 3 0.18
Increased trade barriers 0.08 2 0.16
Time fluctuation 0.07 4 0.28
TOTAL 1.00 2.61
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14. IFE
INTERNAL FACTOR EVALUATION
Strength WEIGHT RATING WEIGHTED SCORE
Economical 0.12 3 0.36
Large market share 0.10 2 0.20
Strong global presence 0.13 1 0.13
100% customer focus 0.12 2 0.24
Experienced Pilots 0.09 4 0.36
So many flights 0.08 1 0.08
Weaknesses
Old aero planes 0.09 3 0.27
Management Corruption 0.16 3 0.48
Week services 0.11 2 0.22
Total 1.00 2.34
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15. CPM
COMPETITIVE PROFILE METRIX
PIA AIR BLUE SHAHEEN
AIRWAYS
Critical Success factor Weight Rating Score Rating Score Rating Score
Advertising
Service Quality
Price Competitiveness
Management
Financial
Customer Loyalty
Global Expansion
Market Share
E-commerce
Organizational
Structure
0.05
0.17
0.15
0.05
0.11
0.10
0.20
0.05
0.09
0.03
1
2
4
2
1
1
4
3
3
3
0.05
0.34
0.60
0.10
0.11
0.10
0.80
0.15
0.27
0.09
2
4
3
3
3
4
1
2
4
2
0.10
0.68
0.45
0.15
0.33
0.40
0.20
0.10
0.36
0.06
2
3
2
3
2
3
1
1
3
2
0.10
0.51
0.30
0.15
0.22
0.30
0.20
0.05
0.27
0.06
TOTAL 1.00 2.61 2.83 2.16
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16. PORTERS FIVE FORCES MODELS
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17. SWOT Analysis-Internal Factor
StrengthsStrengths
 High commitmentHigh commitment
 Innovative ideasInnovative ideas
 Strong financial backgroundStrong financial background
 Service qualityService quality
 Well organized and strong networkWell organized and strong network
 ExperiencedExperienced
 entrepreneurial teamsentrepreneurial teams
 Empowered and dedicated employeesEmpowered and dedicated employees
WeaknessesWeaknesses
 Centralized powerCentralized power
 Personal biasnessPersonal biasness
 Lack of brand loyaltyLack of brand loyalty
 Potential influencePotential influence
 Communication gapCommunication gap
Opportunities
 Market growth
 Better economy
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18.  Consumer awareness
 Potential in selected target market
 Higher profit margin
Threats
 Uncertain economy
 High competition
 Unrest in the city
 Consumer unconsciousness
 Future competition
 Competitors promotional activities
SO Strategies:
 For maintaining leading market position with more than 800 daily flight
around 150,000 passengers monthly fly with 51.2% market share they
must provide maximum route and fleet.
 Create more superior operating system to create growing demand for low
cost and creating customer loyalty.
 Network present of PIA shifting need.
WO Strategies:
 Creating supplier relationship development to provide at low cost services
and creating customer loyalty
 Fill communication gap between supplier, customers, and employees
 Easy access to information and resolution.
 PIA should make its different dept into SBU’s for market growth.
ST Strategies:
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19.  Well organized service quality which helps in growth.
 Innovative idea and effective use of technology.
 PIA should provide high quality promotional activities
WT Strategies:
 Over loaded staff, make team and go for diversification and give them
projects.
 Top down approach for two way communication.
 Reduced overhead cost, it should managed its resources.
 Save resources use in others.
BCG MATRIX:
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20. • Boston consulting group has three type to evaluate company for instance
evaluation of company by products/services vise, geographic vise and on the basis
of competitors.
• On product wise PIA has major two services e.g. passenger, speedex –in
passenger services PIA is suffering and declared at DOG. While in speed-x ?
although have government support
• According to financial report of PIA on geographic basis (domestic), CPM states
that PIA is above average and have maximum flights domestically although it is
facing ?-situation because of not utilizing government support
• IF we evaluate on the basis of competitors, PIA facing a lot of competition
domestically and internationally and declared as dog.
IE Matrix
20

21. SPACE matrix
 Financial Strength (FS)
Price earning ratio = 1
Return on investment = 2
Cash flow = 2
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22. =5
 Environmental Stability (ES)
Rate of inflation =- 4
Competitive pressure = -3
=-7
 Industry Strength (IS)
Financial stability = 1
Productivity, capacity utilization = 2
=3
 Competitive advantage (CA)
Customer loyalty = -3
Product quality = -4
=-7
 Financial Strength (FS) = 5
 Environmental Stability (ES) = -7
 Industry Strength (IS) = 3
 Competitive advantage (CA) = -7
X-axis = CA + IS = -7 +3 = -4
Y-axis = FS + ES = 5 + -7 = -2
QSPM Matrix:
• It lies on third stage in strategic analytical frame work.
• It takes input from first stage and match with second stage and evaluate in third
stage.
• It evaluates which alternative strategies are objectively best.
FS
+6
+1
+5
+4
+3
+2
-6
-5
-4
-3
-2
-1-6 -5 -4 -3 -2 -1 +1 +2 +3 +4 +5 +6
IS
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23. • It assigns weights between 0 to 1 in four areas
opportunity,threat,strength,weaknesses
QSPM MATRIX (Quantitative Strategic Planning Matrix)
STRATEGICALTERNATIVES
Further in Asia Renovate the Existing
strategy
Key Factors weight AS TAS AS TAS
Opportunities
PIA has potential market in middle east if PIA
Upgrades its fleet.
0.19 1 0.19 2 0.38
PIA has largest domestic network and proper
rout planning
0.12 2 0.24 1 0.12
PIA can generate huge amount of revenue
through web.
0.10 3 0.30 2 0.20
Arrival of new technologies 0.10 3 0.30 1 0.30
Threats
Negative rising perception about the country
regarding terrorism
0.20 1 0.20 3 0.60
Accidents 0.10 2 0.36 1 0.18
Fast growing domestic and international
competitors
0.12 3 0.36 2 0.24
Politically instability and law order situation 0.07 1 0.07 4 0..28
Total 1.00
Strength
PIA has status of being Flag carrier of
pakistan
0.12 3 0.36 2 0.24
well established Brand 0.10 2 0.20 2 0.20
Electrical ticketing by web 0.13 1 0.13 2 0.26
Network Presence 0.12 2 0.24 1 0.12
Experienced Pilots 0.09 2 0.18 2 0.18
Having Govt: Protection 0.08 3 0.24 1 0.08
Weaknesses
Old aging fleet causing high operating cost 0.09 1 0.09 2 0.18
Management Corruption 0.16 2 0.32 1 0.16
Lack of market activities as compare to
competitors
0.11 1 0.11 2 0.22
Total 1.00 3.89 3.94
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24. PIA-CORPORATION.
RATIO ANALYSIS
RS IN THOUSAND
Note % 2008 % 2007 CHANGE
REVENUE - net 27 100 99171686 100 78554483 26.57
COST OF SERVICES
Aircraft fuel 46.237 45854358 38.591 30315159 7.646096
Others 28 47.811 47414881 54.14 42529257 -6.32892
94.048 93269239 92.731 72844416 1.31718
GROSS PROFIT 5.9517 5902447 7.2689 5710067 -1.31718
Distribution costs 29 5.4346 5389632 5.6632 4448674 -0.22852
Administrative expenses 30 5.9115 5862577 6.7388 5293654 -0.82729
Other provisions & adjustment
- net 31 1.5339 1521179 0.5515 433223 0.982391
Exchange loss - net 24.32 24118823 0.9168 720151 23.40352
Other operating income 32 (0.76) (757,963) (0.78) (614,523) 0.017995
36.436 36134248 13.088 10281179 23.34809
LOSS FROM OPERATIONS 30.484 30231801 5.819 4571112 24.66527
Finance costs 33 9.1024 9027003 10.106 7938364 -1.00315
Share of loss/profit from
subsidiary co. 0.0004 397 (0.03) (20,211) 0.026129
LOSS BEFORE TAXATION 39.587 39259201 15.899 12489265 23.68825
Taxation 34 (3.31) (3,282,690) 0.9247 726390 -4.2348
NET LOSS FOR THE YEAR 36.277 35976511 16.824 13215655 19.45345
LOSS PER SHARE 35
A class Ordinary shares of
Rs.10 each 17.84 6.25
B class Ordinary shares of
Rs.5 each 8.92 3.12
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25. WORKING CAPITAL
WORKING CAPITAL = CURRENT ASSETS – CURRENT LIABILITIES
2007 = 16419640 - 53849037 = - 37429397
2008 = 19126990 – 73779907 = - 54652917
CURRENT RATIO
CURRENT RATIO = CURRENT ASSETS/CURRENT LIABILITIES
2007 = 16419640/ 53849037 = 0.30:1
2008 = 19126990/ 73779907 = 0.26:1
QUICK RATIO
QUICK RATIO = QUICK ASSETS/CURRENT LIABILITIES
2007 = 14833043/ 53849037 = 0.27:1
2008 = 13674475/ 73779907 = 0.18:1
DEBT RATIO
DEBT RATIO = TOTAL LIABILITIES/TOTAL ASSETS
2007 = 155083177/ 157144043 = 0.93:1
2008 = 202300314/ 185600955 = 1.09:1
EQUITY RATIO
EQUITY RATIO = TOTAL SHARE HOLDER EQUITY/TOTAL ASSETS
2007 = 2060866/157144043 = 0.013:1
2008 = -16699359/185600955 = -0.09:1
DEBT-TO-EQUITY RATIO
DEBT TO EQUITY = TOTAL LIABILITES/TOTAL EQUITY
2007 = 155083177/ 2060866 = 75.25%
2008 = 202300314/ -16699359 = -12.11%
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26. ASSETS TURNOVER
ASSETS TURNOVER = TOTAL NET SALES/TOTAL ASSETS *100
2007 = 78554483/157144043*100 = 49.98%
2008 = 99171686/185600955*100 = 53.4%
RATE OF RETURN ON TOTAL ASSETS
RATE OF RETURN ON TOTAL ASSETS = NET INCOME/TOTAL ASSETS*100
2007 = 13215655/ 157144043*100 = 8.40% (loss)
2008 = 35976511/ 185600955*100 = 19.38% (loss)
RATE OF COST OF GOODS SOLD
RATE OF COST OF GOODS SOLD = COST OF GOODS SOLD/TOTAL NET
SALES*100
2007 = 72844416/ 78554483 *100 = 92.73%
2008 = 93269239/ 99171686*100 = 94.04%
RATE OF GROSS PROFIT
RATE OF GROSS PROFIT = GROSS PROFIT/TOTAL NET SALES*100
2007 = 5710067/ 78554483*100 = 7.27%
2008 = 5902447/ 99171686*100 = 5.95%
LOSS PER SHARE
EARNING PER SHARE = NET INCOME/NUMBER OF SHARES
2007 = 6.25 per share
26

27. 2008 = 17.83 per share
DEBT TO ASSETS RATIO
DEBT TO ASSETS= TOTAL DEBT / TOTAL ASSETS
2007 = 155083177/ 157144043 = 0.98:1
2008 = 202300314/ 185600955 = 1.9:1
CASH RATIO
CASH RATIO = CASH AND BANK BALANCE/CURRENT LIABILITIES
2007 = 4233180/ 53849037 = 0.078:1
2008 = 4059865/ 73779907 = 0.05:1
RATE ON OPERATING EXPENSES
RATE ON OPERATING EXPENSES = OPERATING EXPENSES/NET
SALES*100
2007 = 10281179/ 78554483*100 = 13.08%
2008 = 36134248/ 99171686*100 = 36.43%
The overall condition of company is so week
• It acquire 36% loss in 2008 which is almost 20% higher than 2007
• The equity portion of company is negative because company has negative
reserve
• The company accumulated loss is higher then their reserve because company
sustained consistently loss in previous 4-years
• The liability side of company is higher than 2007 which means that if
company sold her all assets than she will not able to pay-off their debts
27

28. • The tax advantage of company is nullify because off loss
• Company C.O.G.S of company is 94% as compare to their sales
• The Finance cost of company is 9.1% in 2008 which is higher than Gross
profit
REASONS:
1. The major reason for increase of C.O.G.S is of increase in oil prices during
2008 which is up-to 148$ per barrel
2. The second major reason for losses is increase in dollar prices which is in the
form of Exchange loss-net(24%) higher than 2007
STEPS TO REDUCE LOSSES:
1. The company hedge the oil price by prevent from losses
2. The company in money market make future and forward contract
to beware of increase in dollar prices
3. The company additional tax in previous year which is adjusted in
2008 as deferred tax liability which reduced company net losses
4. The company will require heavy investment to run their operation
because company has negative working capital ratio.
28

29. 29