TCS - Final Project Report

2014
TCS
Ayesha Shoukat
Tayyaba Afreen
Mushood Hayat
Basit Ali Shah
[PRICIPLES OF MANAGEMENT]
Submitted to: Ma’am Nazia

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Table of Contents
1 EXECUTIVE SUMMARYError! Bookmark not defined.
2 HISTORY AND PROFILEError! Bookmark not defined.
3 INTRODUCTION OF COMPANY........................ 6
4 TRANZUM COMPANIES AND SERVICES ........... 7
5 BRIEF INTRODUCTION OF TOPICS.................. 9
6 ORGANISTAIONAL STRUCTURE AND DESIGN 11
7 TYPES OF ORGANIZATIONAL STRATIGIES......28
8 TYPES OF CORPORATE LEVEL STRATEGIES... 29
9 CONCLUSION.................................................. 29
10RECOMMEDNATION ...................................... 30
11 BIBLIOGRAPHY ............................................... 31

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Executive Summary
TCS Courier Company has been working since1983, serving customers across the globe. They
are very much concerned about their customers. They want to build leadership in the market, and
give best service to their customers across the boundaries in a short period of time. They want to
grow as a regional and global player, with emphasis on Europe, Middle East and North America.
By keeping in mind their responsibility as no 1 courier company they are also social responsible.
They do not only courier logistic but they have other services too to facilitate customers such as
MMS, OCTARA, SENTIMENTS EXPRESS, and VISA FACILITATOR. Thus, they keep one
thing in their mind.
To Continually Strive To Achieve Excellence both On & Off the Job
We all realize the importance of communication as well as the significance of its speed.
Identifying this niche in the market, TCS pioneered the concept of courier services TCS has been
the acknowledged leader in domestic courier services and has become a generic term for express
courier services in Pakistan. Ever since its inception TCS has continued to lead the courier &
logistics service industry in Pakistan through innovation, pioneering spirit, commitment &
passion. Besides providing tailor-made products & services and maintaining industry standards
considered as benchmarks .TCS has continually added products and services for its customers so
that it has become the complete delivery solution provider. Today they have the capacity to
handle all consumer requirements from the rapid delivery of a single envelope through General
Courier to cargo weighing hundreds of tones.
TCS is an organization with its vision and continuously working to achieve it. They are giving
their services across the globe. Due to their trust and reliability and effective service the word
courier has been replaced by TCS.
They are building the relations with customers

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History & Profile of The Company
Considering the performance of the company in the past two years approximately,
TCS has been transformed from traditional to institutionalized system heading towards
new dimensions of progress and technological advancement. In 2005, TCS formed its
aviation in order to become totally self reliant. In TCS Aviation ,they have recently
induced Boeing 737 in its air fleet with a capacity of 15 tons, which is considered as a
proof of quality through which TCS is coming up to all its commitments. Followed by this, in
2006, TCS horizontally expanded their operation by forming the Tranzum Group which offers
services in diversified industries including express, logistics, warehousing, distribution, gift
delivery services, mail order, travel & tours, visa drop box, management development, event
management & publications. With its corporate office in the Middle East (Dubai), the Enterprise
has established regional offices in across the globe including South Asia, North America, and
Europe.TCS opened the first of its kind TCS Mall in Karachi in March 2006. This mall was
inaugurated by Dr. Walter Kuemmerle, Associate Professor of Business Administration and
member of Faculty Group at Harvard Business School. This mall is providing all the services
offered by TCS and Tranzum group namely Sentiments, Visatronix, Octara, Sentiments etc.
under one roof, and also facilitating services like, ATM machine and Nadra machine for the
payment of utility bills for the sake of providing value and convenience to its customers.TCS
also established Mail Management Solutions division & Print shop in 2006, which only deals in
bulk quantity of mails for their business clients. TCS is also qualified for Printing & Logistics
project of Election Commission of Pakistan for the year 2006-07.It can be said that TCS has
grown and has seen turned around situations in its revenue growth during past couple of years
and TCS continues to enter into more ventures to maintain its market leadership status with its
strong mission of expanding globally.
Owner of The Company:
Khalid Nawaz Awan – Chairman
Mr. Awan is co-founder and Chairman of TCS. His businesses developed over the past 25 years
are collectively called the ‘Tranzum’ group, (www.tranzum.com). A mechanical engineer by
education, Mr. Awan and TCS, are subject of a Harvard Business School Case Study on
‘International Entrepreneurship’ - included in the MBA curriculum for the past six years. Besides
business he devotes his time to several welfare, and professional bodies. Awan is a lifetime
member of the ‘World Presidents Organization’ an alumni and past Chapter Chairman of the
Young Presidents Organization –YPO, and member of their Peace Action Network Forum that
works for global peace. He is Toronto Committee member of ‘Human Rights Watch’, is Director
of the Toronto based 'Canada-Pakistan Business Council, and member of the Dubai based
'Canada-Arab Business Council', and he represented the Paris based ‘International Chambers of
Commerce’(www.wbo.org) at the United Nations General Assembly session on ‘Millennium
Development Goals’ in 2003. Mr. Awan is a Fellow of the Royal Aeronautical Society, of UK.

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Introduction Of Company
TCS stand for TRANZUM COMPANIES AND SERVICES. TCS ("A Tranzum Enterprise")
is a Pakistan based courier service. The company was started in 1983 and now it serves
five continents and has over 2,000 locations in Pakistan. The company also has an airline for
cargo purposes only which it uses at many of the airports in Pakistan.
Almost three decades into its existence, the TCS brand has evolved, into a symbol of trust &
reliability. TCS provides domestic & international express services to consumers, corporates,
SMEs and households alike, with pickups & deliveries crossing over 6 million a month. TCS
operates with over 6,000 professionals, 24/7 call center, 430 plus conveniently located Express
Centers, dedicated chartered aircraft, 2000 on-line & offline locations, 225 plus satellite tracked
delivery vehicles and a proficient team of couriers dedicated to providing you the best of service
and reliability in the industry. With a view to enlarging its presence in the global village, TCS
operates in international territories through its business partners in Dubai and London, providing
access to its customers to over 3,500 destinations worldwide. TCS has achieved many milestones
by investing into its business model that continues to grow stronger. Realizing the customer
needs and expectations have always been the driving principles in the milestones that TCS has
achieved over the years. This has resulted in setting benchmarks to improve the overall quality
and standards of the express courier industry. TCS achievements have led to a case study,
undertaken by Harvard Business School in 2003 for 'International Entrepreneurship' course of
MBA. It has been mentioned in the textbooks used by Harvard Business School as a model of
highly effective company from the developing world. A case study on TCS has also been
included in Philip Kotler’s latest South Asian edition of “Principles of Marketing” which is being
taught at the best & biggest Business Schools across South Asia.
Business Scope
“We are catering to the need of “delivery” of promises.
A promise to deliver your time define and sensitive documents safely”.
Vision & Mission
Our Purpose
To continually strive to achieve excellence - both on and off the job.
Vision Statement
"TCS will be recognized and respected as professional, innovative, profitable information, and
knowledge based logistics/services enterprise. TCS embeds internet based technologies into its
internal operating structures and as business solutions for customers; with customer, employee
and shareholder interests at the core of its operations; demonstrating a clear concern for ethical

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conduct and good corporate citizenship; with the objective of growing into a regional and global
player, with emphasis on the Middle East, Europe and North America".
Mission Statement
"To direct all our organizational efforts at building upon the existing organizational strengths and brand
recognition to achieve enhanced levels of profitable growth in the core business, and diversify into new
areas that complement and supplement the core business, with the diversification aimed at achieving
excellence and industry leader status in the new areas. The TCS People will however be encouraged to be
open to unconventional ideas and services and recognize new trends at very early stages".
Core Values
 Quality
TCS people should direct every effort to deliver maximum value and
satisfaction to our customers.
 Profitability through Efficiency
Efficiency will be the hallmark of TCS people to optimize profitability and
growth.
 Ethics
Nothing unethical shall be practiced by TCS people in relation to our
customers and the world at large.
 Justice
Justice to be the guiding principle of TCS people.
 Creative Growth
In its quest for expansion TCS shall encourage innovative thinking amongst its people.
Tranzum Companies & Services

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Express & Logistics
TCS is the leading courier industry of Pakistan. With its 30 years of experience in the express
courier industry, it is widely trusted for reliability, speed and convenience. TCS provides time
sensitive packages and business documents delivery services across Pakistan, UK and United
Arab Emirates. A wide range of document, parcel and cargo services both domestic and
international are offered.
Mail Management Solution
MMS - Mail Management Solution stands upon the single largest investment in
infrastructure, made by TCS for continuous delivery of value. MMS is equipped with
state of the art printing and sorting technology that has been sourced from the best suppliers
across Europe and Asia Pacific. This makes TCS the only end to end solution provider in the
category with the largest delivery network in Pakistan.
Gifts & Greetings
TCS Sentiments Express is a personalized, high valued gift delivery service offering a
wide array of gifts from gourmet cakes, floral bouquets, ethnic sweets, to various other
elegantly wrapped gifts, delivered with a personalized greeting card in Pakistan. Since 1989,
TCS Sentiments Express has been part of TCS, the leading air express courier in Pakistan. In the
time, it has become Pakistan’s premier gift delivery and greetings service.
Air Freight Solutions
TCS Aviation, a division of TCS Private Limited, specializes in delivering customized
air freight solutions for Freight Forwarders, Pharmaceutical Industry, Charities & Relief
Organizations, Government Departments, Airlines, General Sales Agents, Oil & Automotive
Industries and Brokers. TCS Aviation operates with a dedicated fleet of aircraft & worldwide
offices in Pakistan, Dubai and London. You can be assured that we would fulfill your air freight
& charter requirements to your satisfaction.
Supply Chain
TCS Logistics Private Limited was incorporated on June 2002. Started as a transport
provider however it soon grew into a total logistics solution company offering trucking,
distribution & warehousing facility in response to strong customer demand.
Visa Facilitators

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Visatronix, a division of Intiana Private Limited, extends booking facilities for visa applicants in
the non-immigrant (work, visit, study) categories for applicants all over Pakistan for Canada,
India, Spain, Italy, Malta and South Africa. Applications are booked on a "Return Service Basis"
at selected TCS Express Centres in all major cities.
Travel Services
Intiana, a Tranzum enterprise, offers services for Umrah & Travel. Intiana is
dedicated to facilitating our customers in meeting all their travel related needs with
personalized services and well-trained staff for customer support.
Event Management
Octara is an independent business unit of TCS Private Limited. With a team of
dedicated professionals in the fields of event management, publications, marketing and corporate
services, Octara is geared to provide the best possible solutions in these areas to the corporate,
government and NGO sectors in Pakistan and the UAE.
Brief Introduction Of The Topics
Decision Making
Decision making is the mental processes resulting in the selection of a course of action among
several alternative scenarios.
Steps of Decision Making Process:
Following are the important steps of the decision making process. Each step
may be supported by different tools and techniques.
 Step 1: Identification of the purpose of the decision
In this step, the problem is thoroughly analyzed.There are a couple of
questions one should ask when it comes to identifying the purpose of the
decision.
 What exactly is the problem?

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 Why the problem should be solved?
 Who are the affected parties of the problem?
 Does the problem have a deadline or a specific time-line?
 Step 2: Information gathering
A problem of an organization will have many stakeholders. In addition, there can be
dozens of factors involved and affected by the problem.
 Step 3: Principles for judging the alternatives
In this step, the baseline criteria for judging the alternatives should be set up. When it
comes to defining the criteria, organizational goals as well as the corporate culture should
be taken into consideration.
 Step 4: Brainstorm and analyze the different choices
For this step, brainstorming to list down all the ideas is the best option. Before the idea
generation step, it is vital to understand the causes of the problem and prioritization of
causes.
 Step 5: Evaluation of alternatives
Using our judgment principles and decision-making criteria to evaluate each alternative.
In this step, experience and effectiveness of the judgment principles come into play. We
need to compare each alternative for their positives and negatives.
 Step 6: Select the best alternative
Once we go through from Step 1 to Step 5, this step is easy. In addition, the selection of
the best alternative is an informed decision since we have already followed a
methodology to derive and select the best alternative.
 Step 7: Execute the decision
Convert your decision into a plan or a sequence of activities. Execute your plan by
yourself or with the help of subordinates.
 Step 8: Evaluate the results
Evaluate the outcome of decision. See whether there is anything we should learn and then
correct in future decision making. This is one of the best practices that will improve our
decision-making skills.

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ORGANIZATIONAL STRUCTURE AND DESIGN
Organization:
Organizations are basically formed when different group of people works together towards a
specified goal, these are like open systems which transform inputs from the environment into
outputs. The people within organizations have specific roles which they carry out as part of this
transformation process. These roles are coordinated in a certain way in an attempt to make the
process function as efficiently as possible.
Organizational Structure:
The formal frame work by which jobs, tasks are divided, grouped and coordinated or it may be
defined as the network of relationships that exists among various positions and position holders.
Formal structure is a pattern of relationships that has been consciously planned and implemented.
It includes formal hierarchy of authority as well as rules and procedures and other planned
attempts to regulate behavior.
The structure of an organization reflects the division of work and the coordination of the
organization's sub-units. In most organizations these roles and their coordination are formalized
into an organizational chart which represents the various positions in an organization. They are
in fact a map of the structure of the organization.
Structure defines three key components of the organization;
 The formal reporting relationships within an organization, including the number of
levels in the hierarchy and the span of control of managers and supervisors.
 The grouping of individuals into departments and the fit of departments into the
organization as a whole.
 The systems of communication, coordination, and integration.
Work Specialization:
Work Specialization is the degree to which tasks in an organization are divided into separate
jobs. In some companies or organizations this is also referred to as division of labor. Work
specialization is something that helps companies become more efficient, and productive. It is
always important for a company’s productivity to go up and or stay stable.

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Formalization:
The extent to which work roles are structured in an organization and the activities of
the employees are governed by rules and procedures or it may be the degree to which jobs within
the organization are standardized and the extent to which employee behavior is guided by rules
and procedures.
Departmentalization:
Departmentalization refers to the process of grouping activities into departments.
Departmentalization is a process through which items are compartmentalized into smaller
departments. This is usually done in the management of an institution to take advantage of the
benefits that come with division of labour.
Types of Departmentalization:-
Functional Departmentalization:
Grouping activities by functions performed. Activities can be grouped according to function
(work being done) to pursue economies of scale by placing employees with shared skills and
knowledge into departments for example human resources, IT, accounting, manufacturing,
logistics, and engineering. Functional departmentalization can be used in all types of
organizations.
Product Departmentalization:
Grouping activities by product line. Tasks can also be grouped according to a specific product or
service, thus placing all activities related to the product or the service under one manager. Each
major product area in the corporation is under the authority of a senior manager who is specialist
in, and is responsible for, everything related to the product line. LA Gear is an example of
company that uses product departmentalization. Its structure is based on its varied product lines
which include women’s footwear etc.
Customer Departmentalization:
Grouping activities on the basis of common customers or types of customers. Jobs may be
grouped according to the type of customer served by the organization. The assumption is that
customers in each department have a common set of problems and needs that can best be met by
specialists. The sales activities in an office supply firm can be broken down into three
departments that serve retail, wholesale and government accounts.
Geographic Departmentalization:

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Grouping activities on the basis of territory. If an organization's customers are geographically
dispersed, it can group jobs based on geography. For example, the organization structure of
Coca-Cola has reflected the company’s operation in two broad geographic areas – the North
American sector and the international sector, which includes the Pacific Rim, the European
Community, Northeast Europe, Africa and Latin America groups.
Process departmentalization:
Grouping activities on the basis of product or service or customer flow. Because each process
requires different skills, process departmentalization allows homogenous activities to be
categorized. For example, the applicants might need to go through several departments namely
validation, licensing and treasury, before receiving the driver’s license.
Chain of Command:
The order in which authority and power in an organization is delegated from top management to
every employee at every level of the organization. Instructions flow downward along the chain of
command and accountability flows upward.
According to Henri Fayol (1841-1925), the more clear the chain of command, the
more effective the decision making process and greater the efficiency. Military forces are an
example of straight chain of command that extends in unbroken line from the top brass to ranks.
It is also called line of command.
To understand chain of command, there are two important concepts as follows:
 Authority: Authority is the right or power assigned to an executive or a manager in order
to achieve certain organizational objectives.
 Responsibility: Responsibility is an obligation of individual to perform assigned duties
to the best of his ability under the direction of his executive leader.
Chain of Command in Organizational Structure:
A chain of command determines the structure of reporting and authority levels in an
organization. The chain of command is essential to an organization as it facilitates in the
coordination of activities to ensure that an organization meets its strategic objectives. The chain
of command also influences how well employees communicate with each other within the
organization. Organizations exhibit different command and leadership structures, with some
having less hierarchy and levels of authority than others.
Span of Control:
A manager may be linked to many or few subordinates. The number of people reporting to a
manager is called a manager’s span of control. Managers with wide spans of control have many
subordinates, and it’s not possible for a manager to closely examine activity. Consequently,
employees under such managers have more authority to perform their jobs and even make
decisions than do employees reporting to managers with narrow spans of control.

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A manager's span of control refers to how many employees that manager supervises. A manager
with a wide span of control supervises many employees, while one with a narrow span
supervises just a few. A wide span of control can have positive or negative effects, or a mix of
both, depending on how the business is structured and how the manager handles supervisory
duties.
Centralization and Decentralization
Nowadays various organizations works on various & entirely different set of rules that includes:-
 Centralized Organizations
 Decentralized Organizations
Centralized Organization:
In a centralized organizational structure, decision-making authority is concentrated at the top,
and only a few people are responsible for making decisions and creating the organization's
policies.
Centralized organizations can be extremely efficient regarding business decisions. Business
owners typically develop the company’s mission and vision, and set objectives for managers and
employees to follow when achieving these goals.
Decentralized Organization:
Decentralized organizational structures often have several individuals responsible for making
business decisions and running the business. Decentralized organizations rely on a team
environment at different levels in the business. Individuals at each level in the business may have
some autonomy to make business decisions. In a decentralized organization, authority is
delegated to all levels of management and throughout the organization.
Traditional Organizational Designs
Simple Structure:
An organizational design characterized by low departmentalization, wide span of control,
authority centralized in a single person and little formalization refers to a simple structure.
Strengths: fast; flexible; inexpensive to maintain; clear accountability.
Weaknesses: not appropriate as organization grows; reliance on one person is risky.
Functional Structure:
An organizational design that groups similar or related occupational specialties together is called
functional structure.
Strengths: Cost saving advantages from specialization; employees are grouped with others who
have similar tasks.

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Weaknesses: Pursuit of functional goals can cause managers to lose sight of what’s best for
overall organization; functional specialists become insulated and unaware of what’s happening in
other units.
Divisional Structure:
Divisional structure is an organizational structure made up of separate business units or
divisions.
Strengths: Focuses on results-division managers are responsible for what happens to their
products and services.
Weaknesses: Duplication of activities & resources increase costs and reduces efficiency.
Contemporary Organizational Designs
Team Structure:
An organizational structure in which the entire organization is made up of work groups or teams
refers to team structure.
Strengths: Employees are involved and empowered, reduced barriers among functional areas.
Weaknesses: No clear chain of command, pressure on teams to perform.
Matrix –Project Structure:
Matrix is a structure that assigns specialists from different functional areas to work on projects
who then return to their areas when the project is completed. Project is a structure in which
employees continuously work on projects. As one project is completed, employees move on to
the next project.
Strengths: Fluid and flexible design that can respond to environmental changes; faster decision
making.
Weaknesses: Complexity of assigning people to projects; tasks and personality conflicts.
Boundaryless Structure:

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An organization whose design is not defined by or limited to the horizontal, vertical, & external
boundaries imposed by a predefined structure.
Strengths: Highly flexible and responsive; utilizes talent wherever it is found.
Weaknesses: Lack of control; communication difficulties.
Strategic Management
Strategies:
Plus for how an organization will do what it’s in business to do, how it will compete
successfully, and how it will attract and satisfy its customers in order to achieve its goals.
Strategic Management:
Strategic Management is a map of where you want your company to go OR
The 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
maintaining optimum management practices.
Importance of Strategic Management:
Strategic management involves managers using different strategies to get maximum performance
from workers and business processes. Managers consider the impact of each decision, and
decisions that might detract from other objectives are abandoned. Before a decision is finalized,
it might be considered by multiple players in the organization. Diverse perspectives help the
organization adopt a well-rounded approach to managing work.
Strategic Management Process:
A six-step process that encompasses strategic planning, implementation, & evaluation.
Step 1: Identifying the organization’s current mission, goals, & strategies
It is important for a business to have a mission statement of its purposes. It forces managers to
recognize what their business is used for. It’s also very important that goals & strategies are
recognized.
Step 2: Doing an external analysis
Analyzing the external environment is a critical step in the strategic management. Managers need
to know what their competition is up to and what types of things could affect their business. In
external analysis, managers should examine both the specific & general environments to see the
trends and changes.

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Once they’ve analyzed the environment, managers need to pinpoint opportunities that the
organization can exploit and threats that it must counteract or buffer against.
 Opportunities are the positive trends in external environment.
 Threats are the negative trends in external environment.
Step 3: Doing an internal Analysis
Now we move to the internal analysis, which provides important information about an
organization’s specific resources and capabilities.
 Resources are an organization’s assets that are used to develop , manufacture, and
deliver products to its customers.
 Capabilities are an organization’s skills and abilities in doing the work activities needed
in its business.
The major value-creating capabilities of the organization are known as its Core Competencies.
Both resources and core competencies determine the organization’s competitive weapons.
After completing the internal analysis, managers should be able to identify organizational
strengths, and weaknesses.
 Strength: Any activities the organization does well or any unique resource that is has.
 Weaknesses: Any activities an organization does not do well or resources it needs but
does not possess.
The combined external & internal analyses are called a SWOT analysis, which is an analysis of
the organization’s strengths, weaknesses, opportunities, and threats.
Step 4: Formulating Strategies
As managers formulate strategies, they should consider the realities of the external environment
and their available resources and capabilities and design strategies that will help the organization
achieve its goals. There are three types of strategies managers formulate: Corporate, business and
functional.
Step 5: Implementing Strategies
Once strategies are formulated, they must be implemented. No matter how effectively an
organization has planned its strategies, performance will suffer if the strategies aren’t
implemented properly.
Step 6: Evaluating Results
The final step in the strategic management process is evaluating results. How effective have the
strategies been at helping the organization reach its goals? What adjustments are necessary?

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Types of Organizational Strategies:
Corporate Level Strategy:-
 To determine companies current position.
 Where it shall be.
 Where it want to be.
 Where should it do?
Business Level Strategy:-
Seeks to determine how a corporation should compete in each of its businesses.
Functional Level Strategy:-
A strategy used in company’s various departments to support business.
Corporate Level Strategy:
Corporate strategies are those that determine what businesses a company is in or wants to be in,
and what it wants to do with those businesses. Top level management is typically responsible for
making these strategies.
Types of Corporate Level Strategies:-
Following are different types of corporate level strategies:
 Growth Strategy
 Stability Strategy
 Renewal Strategy
Growth Strategy - A growth strategy is when an organization expands the number of
markets served or products offered, either through its current businesses or through new
businesses. Because of its growth strategy, an organization may increase revenues, number of
employees, or market share.
Types of Growth Strategy:-
Vertical Integration: The combination in one firm of two or more stages of production
normally operated by separate firms
Types of Vertical Integration

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Backward Vertical Integration - Process by which a firm takes ownership or increased control
of its supply systems. It serves to streamline the organization, to provide better cost controls, and
to eliminate the middleman. Because of efficiency and lowered costs of production it is possible
for the firm to become more competitive in the marketplace.
Forward Vertical Integration – A form of vertical integration in which firm's control of its
distribution OR when a manufacturer decides to perform distribution and/or retail functions
within the distribution channel. This is commonly referred to as manufacturers may cut out the
wholesaler to sell directly to retailers or the retailer to sell directly to customers.
Horizontal Vertical Integration - Combining with other firms in industry in form of mergers or
acquisition.
Diversification Strategy - Expanding into a new segment of industry in existing or out of scope
of business.
Types of Diversification Strategy:-
Related Diversification Strategy - A process that takes place when a business expands
its activities into product lines that are similar to those it currently offers.
Unrelated Diversification Strategy - A term which refers to the manufacture of
diverse products which have no relation to each other.
Stability Strategy - A corporate strategy in which an organization continues to do what it is
currently doing.
Renewal Strategy - These strategies are corporate level strategies designed to address
organizational weaknesses that decline towards organizational performance.
Types of Renewal Strategy:-
Retrenchment Renewal Strategy
A retrenchment strategy is a short-run renewal strategy used for minor performance problems.
Turnaround Renewal Strategy – When an organization’s problems are more serious, more
drastic action, a turnaround strategy is needed.
Corporate Portfolio Analysis
 BCG matrix
A planning tool that uses graphical representations of a company’s products and services
in an effort to help the company decide what it should keep, sell or invest more in. The
BCG growth share matrix plots a company’s offerings in a four square matrix, with the y-
axis representing rate of market growth and the x-axis representing market share. The
BCG growth share matrix was developed by the Boston Consulting Group (BCG) in the
1970s.
Explanation: BCG Matrix basically comprises of four parts which are as below:

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Business level/Competitive level Strategies
The strategies which we take in business leads towards competitive edge (distinctive edge) by
competing with other organizations and you’re holding core competencies which your competitors
don’t hold.
Types of Business level Strategies:-
Cost leadership Strategies – Business level strategy in which company competes on the basis of
lowest cost in production.
Differentiate Strategy – Business level strategy in which company offers unique products widely
valued by customers.
Focus/Niche Market Strategy - Business level strategy in which a company pursues a cost or
differentiate advantage in a narrow industry segment.
Implication of Topics Company’s Context
TCS – Decision Making Process
Step 1: Identifying a problem
TC S EX P RES S training programs for new employees are poor and not up to the mark.
Haphazard and unprepared seem to be the themes of the times when it comes to training new
employees. Many problems that come up with new employees can be avoided by a good training
system because often the things that turn into performance issues can be traced back to how the
person was trained.
Step 2: Identifying Decision Criteria
To solve this issue we mainly recommend TC S EX P RES S t o go for On-boarding. On-
boarding also known as organizational socialization refers to the mechanism through which
new employees acquire the necessary knowledge, skills, and behaviors to become effective
organizational members and insiders.

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Step 3: Allocating Weights to the Criteria
Tactics used in this process include formal meetings, lectures, videos, printed materials, or
computer-based orientations to introduce newcomers to their new jobs and organizations.
Research has demonstrated that these socialization techniques lead to positive outcomes for new
employees such as higher job satisfaction, better job performance.
Criteria Weight
Formal meetings 10
Computer based orientation 9
Lectures 8
Printed material 6
videos 4
Step 4: Developing Alternatives
 Develop a new orientation program
 Engage seasoned employees to perform skits about topics such as disciplinary and
performance appraisal meetings.
 Invite executive leaders of the company to make brief presentations to the new
employees.
Step 5: Analyzing Alternatives
Training Meetings Visuals Lectures
New orientation program 10 10 10
Seasoned Employees 3 10 7
Executive leaders 9 7 8
Step 6: Selecting an Alternatives
Select new orientation program because of high scoring
Training Meetings Visuals Lectures Total
New orientation program 10 10 10 30
Seasoned Employees 3 10 7 20
Executive leaders 9 7 8 24

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Step 7: Implementing the Alternative
Here we implement a new orientation program for managers who are joining the company.
Meetings are held with each department manager or supervisor is effective. Depending on the
length of time spent with a department manager, this process can last up to six weeks. There is a
tremendous amount of coordination and scheduling for this type of orientation; however, it is
particularly effective for a new human resources manager, for instance. It is an alternative to all-
staff meetings where the new employee merely stands up when his or her name is called. This
type of orientation encourages networking, peer-to-peer relationships among employees.
Step8: Evaluating Decision Effectiveness
The outcomes of socialization organization have been positively associated with the process of
uncertainty reduction. Employees' job training is particularly important from an organization's
perspective because of their link to employee engagement and performance on the job. Employee
engagement attitudes, such as satisfaction with one's job and organizational commitment or
loyalty, have important implications for an employee's work performance and intentions to stay
with or quit an organization. This translates into strong monetary gains for organizations as
research has demonstrated that individuals who are highly trained and satisfy with their jobs and
who exhibit high organizational commitment are likely to perform better and remain in an
organization, whereas individuals who have developed negative attitudes or become un trained
(are highly dissatisfied and unattached to their jobs) are characterized by low performance and
high turnover rates.
TCS – Organizational Structure & Design
Work Specialization - TCS divided the work into smaller units which is completed by a single
individual. It includes division of labor in which a single person completes repetitively a single
step of the complete task. It enables workers to become experts at a single task but the repetitive
nature of the task can be boring. Different tasks are performs by different employees to enhance
the business activities and to keep check and balance regarding each process of TCS enterprise.
Departmentalization - The basis on which jobs are grouped together.
Types of Departmentalization:
Functional Departmentalization - TCS create a inventory department, marketing department,
an accounting department, and a human resources department. Functional departmentalization
may be advantageous as it can increase efficiency and expertise because all related activities are
performed in one place by one group of people that specialize in that activity
Geographical Departmentalization - Organizing departments along geographic lines is often a
good idea for TCS with offices around the world. All activities related to the organization's
activities in each region are handled by a department in that region. One advantage of this

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method is that it ensures the development of expertise specific to the political, social, and
cultural needs of the region. TCS has provides his services in region of Pakistan, Canada, United
Kingdom and United Arab Emirates with thousands of outlets.
Process Departmentalization - TCS organizes work and workers into separate units in the basis
of product or customer flow. TCS with this departmentalization have departments named as
specific parts of the process such as planning and controlling, finishing, inspection and shipping,
etc.
Customer Departmentalization - Each type of customer usually has different needs and
organizations often departmentalize along differing customer types such as consumers,
businesses, and governments. TCS divide its customers into different segments which are control
by customer department to fulfill customer requirements and feedback. This structure may be
advantageous because it allows its personnel to specialize in developing products and serving the
needs of particular markets and classes of customers.
Chain of command
Chain of command-refers to the un broken line of authority that starts from the top level of the
organization to the lower level. It shows the relationship between individuals working in an
organization and to whom they report to and who they are responsible for.
In TCS it works on the principle of unity of command which states that worker should have only
one superior to report to in order to avoid confusion. It is an increasingly obsolete phenomenon
in the dynamic firms that do not follow the strict hierarchical organization structure.
Span of control - In TCS span of control can be wide-with a larger number of subordinates
working under one manager but in some cases it is also narrow with lesser number of
subordinates working under a manger. TCS believes that wider span of control are regarded as
beneficial because it shortens the chain of command and bureaucratic structure in an
organization and leads to more delegation to employees.
Centralization - Centralization is when the entire decision making authority is in the hands of
the central management of the TCS and no lower level involvement is required in making
decisions for the TCS. It is useful when the decisions are strategic and serious in nature and
involve a lot of risk. However the lower level employees feel alienated and de motivated as they
feel that they have no say in the decisions that affect their work life. TCS practice centralization
because as a franchise all the advertising decisions have to be approved by the top level
management. Every decision involving the procedure and employee training is decided by the
top level management.
Decentralization - It is when the decision making authority is delegated to the managerial levels
just below the top level i.e. not all the decision making authority lies in the hands of the top level

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management. TCS also practice this phenomena because decentralized organizations are often
more flexible and productive at deciding because the managers are closer to the action and the
workers are motivated as they feel more involved in the decision making process, however it is
not suitable for strategic decisions.
Formalization - Formalization refers to the extent to which jobs are standardized within an
organization. It refers to the degree to which the employee has to follow the given pattern to do
his/her job. A highly formalized job-is when the worker knows exactly what is asked from him,
he cannot add any innovations to performing the task and there are a great many organizational
rules to follow and a given set of procedures to follow.
TCS is highly formalized as there are strict procedures at every step for the workers to follow.
The time to wake up, delivery of consignment everything is standardized and no discretion is
allowed at jobs.
A lowly formalized job-is when the job behavior of the work is less programmed or subjected to
numerous rules ,he can exercise much discretion in the job and has a somewhat free hand to add
his inputs in the job and there are no strict procedures to follow.
Traditional Organizational Design
Functional Structure - TSC mainly focus on functional structure. The functional structure
focuses on practical specialization whereby similar or related occupational specialties are
grouped together (also referred to as departmentalization). Departmentalization group workers
with similar job roles into work units based TCS services, activities performed by employees,
level of skill or expertise, types of customers or resources.
Explicit job titles, chain of command, reporting relationships and a well-defined channel of
communication exist within these specialized work units in order to maximize the functionality
of TCS enterprise.
TCS is designed on a strong hierarchy. Using the idea of departmentalization, the organization
will be divided into individual departments, where each department has a specific function and
all departments function independently to execute organizational goals. Departments, such as
marketing, logistics, finance and accounting, customer service, human resources, design and
build, and maintenance, are grouped according to their specialization. If we look into one of
these departments, let's take finance for example, we can see the same kind of individual job
titles, reporting relationships and communication channels that also exist within this functional
structure.

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Contemporary Organizational Design
Team Structure
In TCS organization, they believe on working in teams. Like different teams are informed about
their tasks on daily basis. And teams perform their tasks efficiently and effectively. And due to
team structure their organization is the most renowned organization.
Matrix & Project Structure
Matrix Structure – This structure design is not effective in TCS. Because they are providing
only one type of service and there is no such diversity there. That is why martrix structure is not
used there.
Project Structure – TCS believe on project structure. Different projects on daily or weekly
basis is assigned to the teams on which they work.
TCS – Strategic Management
Step 1: Vision statement - TCS will be recognized and respected as professional, innovative,
profitable information and knowledge based on logistics/services enterprise. TCS embeds
internet based technology into its internal operating structures and as a business solution for
customers with customer, employee and share holder interests at the core of its operations
demonstrating a clear concern for ethical conduct and good corporate citizenship. With the
objective of growing into a regional and global player, with emphasis on the Middle East,
Europe and North America.
Mission statement - To direct all our organizational efforts at building upon the existing
organizational strengths and brand recognition to achieve enhanced levels of profitable growth in
the core business, and diversify into new areas that complement and supplement the core
business, with the diversification aimed at achieving excellence and industry leader status in the
new areas. The TCS People will however be encouraged to be open to unconventional ideas and
services and recognize new trends at very early stages".
Step 2:

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Opportunities
 TCS being the domestic company is safe from the terrorist activities that
may happen against the multinational and international courier service firms.
 The increase in trend towards online booking and shipment is a major opportunity to be
availed by TCS.
 Increasing the awareness of students express would increase its customers among
students.
 TCS presently does not deal in currency. There are many overseas Pakistanis who can
become its customers for sending money to their homes if it starts dealing in currency.
 A continued representation in Expo Pakistan 2006 and in the following
years, in Dubai Gold Festival and other prestigious events and exhibitions would make
the people more trusting in TCS.
 Reduced rates for utilities would decrease the cost of warehousing.
 The construction of Gwadar Airport & the availability of own aircrafts collectively
present an opportunity for TCS to start shipping goods through its own aircraft outside
the state boundaries.
 The major customers of TCS Phillips, LG, Gillette, Sony, Indus Motor Company
Limited, 3M Pakistan and Samsung. The increase in the export & import of
raw materials & finished goods by these companies increases the revenue
potential for TCS through bulk shipments. Also TCS can work on capturing
potential corporate customers to earn maximum gain.
 As compared to other players in the industry TCS is completely non-
unionized which is a great opportunity in terms of relative stability of labor costs.
 TCS has 1500 skilled couriers involved in delivery of goods all over Pakistan. A future
demand for higher wages and/or increase in facilities would again increase the cost for
TCS.
Threats
 The rise in prices of diesel, petroleum and jet fuel both on the international
and national level is causing a rapid increase in the cost of energy for TCS.
 TCS has 1500 skilled couriers involved in delivery of goods all over Pakistan. A future
demand for higher wages and/or increase in facilities would again increase the cost for
TCS.
 Owing to the increase in the use of email, the demand for overnight delivery
is declining which is affecting the provision of this facility for TCS.
 The prohibition of sending to P.O boxes causes a decrease in its service range and in turn
customers.

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 The security and privacy fear related to providing account information on internet may
result in relatively low profits in the initial time periods.
 TCS promises overnight delivery but with the increase in the use of email
and online transfer, uploading and downloading of documents this promise
may not remain as important.
Step 3: Doing an internal Analysis
Strengths
 First Pakistan based company to get the title of Super Brand.
 TCS has its own ware and tire garage for the repair and maintenance of its fleet
of vehicles.
 TCS is the first Pakistan based company to have a case study at Harvard Business School
for the best courier operating in South Asia.
 TCS is the first courier company in Pakistan to equip its employees with the handheld
terminals, which are directly connected to head office.
 TCS provides warehousing and distribution services to any bulk quantity of order to
anywhere in Pakistan.
 A strong reputation and brand name in the general public & the corporate sector as
reliable and timely sources for delivery of goods. Besides this TCS has become a generic
word for courier in Pakistan.
 For 2005-06 TCS has growth rate of 4% for its revenue & 35% for its sales.
 TCS is pioneer in developing its own TCS mall which provides value & convenience the
customers.
 TCS also provides printing facilities to its clients not offered by any of its competitors.
Weaknesses
 The prices of the services offered by the TCS are comparatively higher.
 Less marketing initiatives has been taken by TCS to promote all its brands.
 Online brochures and catalogs of the services are not available on the website.
 There is no information available on the website pertaining to the outlet location
addresses and contact numbers in different areas and cities of Pakistan.
 Despite an increase in the number of online customers for courier services, among other
industries, TCS does not provide online booking and payment facility. This facility is
available only for corporate customers and not for cash customers.

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 The departments handling different brands are not only totally isolated from each other
but also from the core departments such as retail and Human Resources in
terms of communication.
Step 4: Formulating Strategies
 To enable success, TCS helps create strategies that transform enterprises by aligning
service strategy and priorities to their business objectives
 TCS Process and Service Management formulate measurable business benefits by
improving service process maturity.
 Using expertise and insight gained from engagements with global market leaders, TCS
delivers result-oriented solutions to facilitate business service alignment.
 Quality data, consistent across the enterprise, can drive significant business benefits.
 Ensuring the quality of work and courier services along with perfection.
Step 5: Implementing Strategies
Implementation of all the above mention strategies.
Step 6: Evaluating Results.
We evaluation the results regarding the implementation of strategies.
Types of organizational strategies
Corporate Level Strategies - TCS operates in a large, growing global market for courier
services. Offering unique opportunities to gain a competitive advantage. Further, the proportion
of courier services budgets that is spent on external providers is going up as the shelf-life of
reducing and corporations are looking for greater efficiency and variability in their costs.
Business Level Strategies
 Business unit objective and strategies by maximizing resource productivity
 Using expertise and insight gained from engagements with global market leaders, TCS
delivers result-oriented solutions to facilitate business service alignment.
 Quality data, consistent across the enterprise, can drive significant business benefits.
 Distinctive competencies where capabilities are superior to competition.
Functional Level Strategies
 Core competencies
 Marketing strategy
 Financing strategy
 Logistic strategy

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 HR management strategy
 Information system strategy
Types of Corporate Level Strategies
Growth Strategy
The Growth Opportunity - With a minuscule market share in this growing market, there is
much headroom for TCS’ longer-term growth. The approximate market growth of TCS is 79%
and market share is 75%.
Offer new products or targets a new market through current or new business.
 Customer-centricity
 Full Services Capability
 Global Network Delivery Model
 Strategic Acquisitions
Types of Growth Strategy
Vertical Integration - The combination in one firm of two or more stages of production
normally operated by separate firms.
Types of Vertical Integration
Backward/Forward Vertical Integration - Our company have vertical integration, but it is
depend upon situation that either it is forward or backward integration.
Horizontal Vertical Integration - We mainly go for acquisition strategy to expand our business
and for this purpose we have OCS and LEOPARD courier service to concern about
Diversification Strategies – We are also starting a banking system for the diversification of our
organization. We also have airlines for our delivery and it is also a diversification of our
business. Also the acquisitions of those companies that make business sense to TCS.
Types of Diversification Strategy
Related Diversification Strategy
Going for related diversification strategy by continuing the courier services.
Stability Strategy-Pakistani political structure is stable for the courier industry. With its low
cost advantage and emergence of several private players, represents the fastest growing market in
the courier service sector

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Renewal Strategy
 To overcome the less marketing initiatives
 Focus on online broachers
 Overcome the issue of limited operational setup.
Corporate Portfolio Analysis
 BCG matrix
Business level/Competitive level Strategies
Types of Business level Strategies
 Focus on customer relationship management, customer retention
 Timely delivery with the help of proven delivery & quality framework
Cost leadership Strategies/Differentiate Strategy
 Low cost Global delivery 24X7 model.
 Protection from currency fluctuations with the help of currency hedging.
 Differentiation in low end services in terms of cost, resources
 Due to its strong knowledge management system and resource strength, TCS has been
successful in getting the cost leadership in the industry.
Focus/Niche Market Strategy
 Differentiation in high end services such as consulting in term of niche offerings,
expertise.
Conclusion:
Star
Infrastructure
services
Question
Mark
Courier &
Logistics
Cash Cows
Development
&
Maintenance
Dogs
None

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TCS is an organization with its vision and continuously working to achieve it. They are giving
their services across the globe. Due to their trust and reliability and effective service the word
courier has been replaced by TCS. They are building the good relations with customer.
I don’t see it challenging other online shops for market share but it definitely has potential to
grow and it wouldn’t be surprising to see it evolve into more of a gift shop backed by authentic
products and on time delivery in future even if its performance as a pure e-marketplace isn’t
stellar.
Just to conclude here, we know from people close to TCS that they are working on payment
processing gateway as well. This is in addition to mobile banking solution that TCS is working
on. Hence payments through their own branchless banking will be an option too, just in few
months.
Recommendations
TCS should try expanding & grabbing more international market share to get foreign exchange
into country which has started to harvest its land for business cultivation.
Maintain focus on its core services & expanding itself into related chains of services like
introduction domestic & international airline service will give TCS new streams of profit.
Besides going into new business TCS should also strengthen its work force & train them for
expansion. Training programs for employees should be future oriented & objective in nature.
TCS should look closely towards their competitors who’re rich in both experience & finance are
build a strategy to defend it in future expansion plans of competitors.
Bibliography
1. http://www.tutorialspoint.com/management_concepts/decision_making_process.htm
2. http://www.the-happy-manager.com/tips/steps-in-decision-making/
3. www.tcs.com.pk
4. www.ehow.com
5. www.businessdictionary.com
6. www.boundless.com

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7. www.ask.com
8. www.chron.com
9. www.wikipedia.com
10. www.investopedia.com
11. www.wiki.answer.com
12. http://myllurmanagement.blogspot.com/2012/08/strategic-management-3-main-types-
of.html

TCS - Final Project Report

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