SlideShare a Scribd company logo
CONTENTS
1- Company Profile.
2- Mission, Vision, Objectives.
3- Environmental scanning.
  * External Scanning ( Country & Industrial )
  * Internal Scanning ( SWOT analysis ).
4- Strategy Formulation (Hierarchy of Strategy)
  * Corporate Strategy.
  * Business Strategy.
  * Functional Strategy.
5- Competitive Advantage.
6- Product Life Cycle.
7- BCG Matrix.
8- Strategy Implementation ,Evaluation & Control
9- Recommendations.
STRATEGIC MANAGEMENT MODEL
COMPANY PROFILE.
Who we are?
We are the first lines of railway created in Africa and the
Middle East , and the second in the world.
Construction of the first line in Egypt on 12 July, 1851, and
operating in 1854.
The total length of railways about 6,700 kilometers.
the number of stations and attitudes and drops block on the
network more than 820 stations.
The largest workshops of the railway workshop Faraz Cairo
area located Sharabiya bridge founded in the second half of
the eighties last century.
Working railroad iron Egypt 86,000 workers from all
disciplines are organized in several departments of art
central, divided body administratively into seven region.
The volume of passenger nearly 1.4 million passengers per
day.
VISION:
Being the largest railway network in middle east and
Africa.

MISSION:
• Our aim is to be the best passenger railway in
  Africa by 2050.
• All day, every day, we aim to offer a reliable,
  welcoming and value for money service.
• Our business will prosper because customers use
  us repeatedly and recommend the service to
  others.
•Having a market share of 25% of travelers across
  Egypt.
OBJECTIVES
CITIZEN LEVEL
 Encourage traveling economically , safely all over the country.
TOURISTIC LEVEL
  Network between touristic cities Cairo, Alexandria , Matrouh
, Hurghada, Sham El Sheikh , Arish, Seawa, Luxor and Aswan
  Future connection to Syria, Iraq , Jeddah, Khartoum and Libya
  ( Inter Arabian transport confederation )
INDUSTRIAL LEVEL
 Refrigerated containers for transport of fish from Nasser lake to
  ports
 Containers for transport of raw materials (phosphate ,manganese,
 and cement ,etc…..)to industrial Zones
 Transporting Marble and Granite in & out of industrial zones
AGRICULTURAL LEVEL
 Connecting Toshkey to encourage youth to reclaim , Investors to
 invest and products to export
ENVIRONMENTAL SCANNING
External Scanning
COUNTRY ANALYSIS ( PEST )
  Political-Legal      Economic         Socio-Cultural        Technological
      Forces            Forces             Forces                Forces
     Tax law        Energy costs and   Life Style changes      Government
                       availability                             Spending
                                                                 on R&D
    Stability of     Money Supply      Population growth          Telecom
   government                                rate              infrastructure
                      Inflation rate    Age distribution    Internet availability


                          GDP                                 Availability of
                                                            certain technology


                      Price control
ENVIRONMENTAL SCANNING
External Scanning
INDUSTRIAL ANALYSIS (Porter’s 5 forces analysis )


                              Entry Barriers




  Bargaining Power            Rivalry among         Bargaining Power
    Of Suppliers               Competition             Of Buyers




                               Threat of
                               Substitute
PORTER’S 5 FORCES ANALYSIS
               Industry Competitors
                We are MONOPOLY
         Rate of industry growth      Low
        Service characteristics are variable
                  Huge capacity
           Amount of fixed cost     High

                Barriers to entry
             Huge economy of scale
          Product differentiation High
           Switching cost       Medium
           Capital requirement    High
PORTER’S 5 FORCES ANALYSIS
                Threat of substitute
AVAILABILITY OF SUBSTITUTE
            AT LONG DISTANCE LEVEL LOW
          AT SHORT DISTANCE LEVEL   MEDIUM

SWITCHING COST
    PASSENGER LEVEL AT LONG DISTANCE LEVEL   HIGH
                   AT SHORT DISTANCE LEVEL   MEDIUM


  CARGO LEVEL AT HIGH AMOUNT HIGH
                 AT LOW AMOUNT MEDIUM
PORTER’S 5 FORCES ANALYSIS
                  Buyers Power
              Bargaining power Low
     Cost of buyers backward integration High
               switching cost High
           High differentiated products

                Suppliers Power
             Bargaining power High
ENVIRONMENTAL SCANNING
Internal Scanning ( SWOT ANALYSIS )
COMPANY ANALYSIS

                           Strengths
Historical Heritage
Economic & safe
Powerful Distribution
Low Energy cost
Skillful working hands
Huge maintenances & workshops
No traffic problems in rush hours
Small land requirement
Loyal passenger
Environmental friendly
ENVIRONMENTAL SCANNING
Internal Scanning ( SWOT ANALYSIS )
COMPANY ANALYSIS

                         Weaknesses
Instabilityof management.
High initial investments

Unavailability of R & D

High cost and time consuming of lines dysfunction

History of timing issue either earlier or later

Limited in some areas

Limitation of privacy
ENVIRONMENTAL SCANNING
Internal Scanning ( SWOT ANALYSIS )
COMPANY ANALYSIS

                       Opportunities
High population growth rate
New places to invade

New customers to take

New categories of transportation

High number of tourists

Smart solution of Egypt’s transport problem

Expand new market around new lines

Ads on the train make new revenue
ENVIRONMENTAL SCANNING
Internal Scanning ( SWOT ANALYSIS )
COMPANY ANALYSIS

                            Threats
Workers    strikes
Tax  law
Energy costs

Inflation rate
Egyptian Population Growth 2050
                         Millions
120,000

100,000

 80,000

 60,000
                                                  Millions
 40,000

 20,000

     0
          1950    2000    2015      2025   2050
STRATEGY FORMULATION
 (HIERARCHY OF STRATEGY)
             • NATIONAL DEVELOPMENT PLAN
 COUNTRY
             • National development policies and indicative plans.


             • RAILWAY CORPORATE STRATEGY
             • Corporate Mission Statement- Broad Policy Guidelines- Socioeconomic
               Indicators- Corporate level SWOT Analysis- Corporate Objectives- Broad
CORPORATE
               Strategies (incl. Pricing)- Manpower Plan- Finance Plan -Investment Plan



             • BUSINESS STRATEGY.
 BUSINESS
             • Competitive Advantage ( C.A )



             • FUNCTIONAL STRATEGY.
             • MARKETING PLAN + OPERATIONS PLAN + MECH. ENG. PLAN +
FUNCTIONAL     CIVIL ENG. PLAN
RAILWAY CORPORATE STRATEGY
                                         Customer




                                                                      integration
                                                                        Forward
Vertical Integration




                       New Product                            New Region




                                                                       integration
                                                                        Backward
                                       Raw Material
                                     Horizontal Integration
BUSINESS STRATEGY
Competitive

We compete every fuel burning vehicle on the
ground

Cooperative

Initiatenew companies transporting goods &
passengers in & out train stations.
Inter Arabian transport confederation railway.
COMPETITIVE ADVANTAGE
Degree of Differentiation




                                      Maintain          Outstanding
                            High




                                      Specialty          Success


                                     Hope for          Maintain Cost
                                   Market Growth        Advantage
                            Low




                                   High                          Low
                                             Relative Cost
PRODUCT LIFE CYCLE
PRODUCT LIFE CYCLE
PRODUCT LIFE CYCLE
BCG MATRIX
IMPLEMENTATION STRATEGY ,EVALUATION & CONTROL

CITIZEN LEVEL
 reaching 25 % of travelers across Egypt by 2020.

TOURISTIC LEVEL
 Network between touristic cities establishment
 Achieving Inter Arabian transport confederation

INDUSTRIAL LEVEL
Reaching a valuable market share in industrial transportation
Nearly 50 %

AGRICULTURAL LEVEL
Become the favorable route of transporting agriculture products


Increasing Passengers Train speed from 80-100KMPH to 130-150KMPH

Reaching 25000 KMS of Lines
RECOMMENDATIONS
Need   to use our good experience in this
field
Increasing R & D

Using the working hands wisely

Governmental support to achieve our plans

Developing old station

Establishing new products as GREEN TRAIN
Strategic management Egyptian National Railways
Strategic management Egyptian National Railways

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Strategic management Egyptian National Railways

  • 1.
  • 2. CONTENTS 1- Company Profile. 2- Mission, Vision, Objectives. 3- Environmental scanning. * External Scanning ( Country & Industrial ) * Internal Scanning ( SWOT analysis ). 4- Strategy Formulation (Hierarchy of Strategy) * Corporate Strategy. * Business Strategy. * Functional Strategy. 5- Competitive Advantage. 6- Product Life Cycle. 7- BCG Matrix. 8- Strategy Implementation ,Evaluation & Control 9- Recommendations.
  • 4. COMPANY PROFILE. Who we are? We are the first lines of railway created in Africa and the Middle East , and the second in the world. Construction of the first line in Egypt on 12 July, 1851, and operating in 1854. The total length of railways about 6,700 kilometers. the number of stations and attitudes and drops block on the network more than 820 stations. The largest workshops of the railway workshop Faraz Cairo area located Sharabiya bridge founded in the second half of the eighties last century. Working railroad iron Egypt 86,000 workers from all disciplines are organized in several departments of art central, divided body administratively into seven region. The volume of passenger nearly 1.4 million passengers per day.
  • 5.
  • 6.
  • 7. VISION: Being the largest railway network in middle east and Africa. MISSION: • Our aim is to be the best passenger railway in Africa by 2050. • All day, every day, we aim to offer a reliable, welcoming and value for money service. • Our business will prosper because customers use us repeatedly and recommend the service to others. •Having a market share of 25% of travelers across Egypt.
  • 8. OBJECTIVES CITIZEN LEVEL Encourage traveling economically , safely all over the country. TOURISTIC LEVEL Network between touristic cities Cairo, Alexandria , Matrouh , Hurghada, Sham El Sheikh , Arish, Seawa, Luxor and Aswan Future connection to Syria, Iraq , Jeddah, Khartoum and Libya ( Inter Arabian transport confederation ) INDUSTRIAL LEVEL Refrigerated containers for transport of fish from Nasser lake to ports Containers for transport of raw materials (phosphate ,manganese, and cement ,etc…..)to industrial Zones Transporting Marble and Granite in & out of industrial zones AGRICULTURAL LEVEL Connecting Toshkey to encourage youth to reclaim , Investors to invest and products to export
  • 9. ENVIRONMENTAL SCANNING External Scanning COUNTRY ANALYSIS ( PEST ) Political-Legal Economic Socio-Cultural Technological Forces Forces Forces Forces Tax law Energy costs and Life Style changes Government availability Spending on R&D Stability of Money Supply Population growth Telecom government rate infrastructure Inflation rate Age distribution Internet availability GDP Availability of certain technology Price control
  • 10. ENVIRONMENTAL SCANNING External Scanning INDUSTRIAL ANALYSIS (Porter’s 5 forces analysis ) Entry Barriers Bargaining Power Rivalry among Bargaining Power Of Suppliers Competition Of Buyers Threat of Substitute
  • 11. PORTER’S 5 FORCES ANALYSIS Industry Competitors We are MONOPOLY Rate of industry growth Low Service characteristics are variable Huge capacity Amount of fixed cost High Barriers to entry Huge economy of scale Product differentiation High Switching cost Medium Capital requirement High
  • 12. PORTER’S 5 FORCES ANALYSIS Threat of substitute AVAILABILITY OF SUBSTITUTE AT LONG DISTANCE LEVEL LOW AT SHORT DISTANCE LEVEL MEDIUM SWITCHING COST PASSENGER LEVEL AT LONG DISTANCE LEVEL HIGH AT SHORT DISTANCE LEVEL MEDIUM CARGO LEVEL AT HIGH AMOUNT HIGH AT LOW AMOUNT MEDIUM
  • 13. PORTER’S 5 FORCES ANALYSIS Buyers Power Bargaining power Low Cost of buyers backward integration High switching cost High High differentiated products Suppliers Power Bargaining power High
  • 14. ENVIRONMENTAL SCANNING Internal Scanning ( SWOT ANALYSIS ) COMPANY ANALYSIS Strengths Historical Heritage Economic & safe Powerful Distribution Low Energy cost Skillful working hands Huge maintenances & workshops No traffic problems in rush hours Small land requirement Loyal passenger Environmental friendly
  • 15. ENVIRONMENTAL SCANNING Internal Scanning ( SWOT ANALYSIS ) COMPANY ANALYSIS Weaknesses Instabilityof management. High initial investments Unavailability of R & D High cost and time consuming of lines dysfunction History of timing issue either earlier or later Limited in some areas Limitation of privacy
  • 16. ENVIRONMENTAL SCANNING Internal Scanning ( SWOT ANALYSIS ) COMPANY ANALYSIS Opportunities High population growth rate New places to invade New customers to take New categories of transportation High number of tourists Smart solution of Egypt’s transport problem Expand new market around new lines Ads on the train make new revenue
  • 17. ENVIRONMENTAL SCANNING Internal Scanning ( SWOT ANALYSIS ) COMPANY ANALYSIS Threats Workers strikes Tax law Energy costs Inflation rate
  • 18.
  • 19. Egyptian Population Growth 2050 Millions 120,000 100,000 80,000 60,000 Millions 40,000 20,000 0 1950 2000 2015 2025 2050
  • 20.
  • 21. STRATEGY FORMULATION (HIERARCHY OF STRATEGY) • NATIONAL DEVELOPMENT PLAN COUNTRY • National development policies and indicative plans. • RAILWAY CORPORATE STRATEGY • Corporate Mission Statement- Broad Policy Guidelines- Socioeconomic Indicators- Corporate level SWOT Analysis- Corporate Objectives- Broad CORPORATE Strategies (incl. Pricing)- Manpower Plan- Finance Plan -Investment Plan • BUSINESS STRATEGY. BUSINESS • Competitive Advantage ( C.A ) • FUNCTIONAL STRATEGY. • MARKETING PLAN + OPERATIONS PLAN + MECH. ENG. PLAN + FUNCTIONAL CIVIL ENG. PLAN
  • 22. RAILWAY CORPORATE STRATEGY Customer integration Forward Vertical Integration New Product New Region integration Backward Raw Material Horizontal Integration
  • 23.
  • 24. BUSINESS STRATEGY Competitive We compete every fuel burning vehicle on the ground Cooperative Initiatenew companies transporting goods & passengers in & out train stations. Inter Arabian transport confederation railway.
  • 25.
  • 26. COMPETITIVE ADVANTAGE Degree of Differentiation Maintain Outstanding High Specialty Success Hope for Maintain Cost Market Growth Advantage Low High Low Relative Cost
  • 31. IMPLEMENTATION STRATEGY ,EVALUATION & CONTROL CITIZEN LEVEL reaching 25 % of travelers across Egypt by 2020. TOURISTIC LEVEL Network between touristic cities establishment Achieving Inter Arabian transport confederation INDUSTRIAL LEVEL Reaching a valuable market share in industrial transportation Nearly 50 % AGRICULTURAL LEVEL Become the favorable route of transporting agriculture products Increasing Passengers Train speed from 80-100KMPH to 130-150KMPH Reaching 25000 KMS of Lines
  • 32. RECOMMENDATIONS Need to use our good experience in this field Increasing R & D Using the working hands wisely Governmental support to achieve our plans Developing old station Establishing new products as GREEN TRAIN