pia policy project

8/12/2019 Pia Policy Project

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2,siness Polic3an4 0trate#3

S(6mitte5 o7 &R8 A$me5 Rana

Section 9A

1INA. PROECT REPORT

PA4ISAN INERNAIONAL AIRLINE Pa%e -


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GROUP MEM2ER0

FA!A" I;BAL L,FO!AIB BAS!IR L,F


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PA4ISAN INERNAIONAL AIRLINE Pa%e /


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PA4ISAN INERNAIONAL AIRLINE Pa%e 0


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PRE1ACE

All praise is to Almi%$ty Alla$ for 6esto)in% (s )it$ t$e )is5omto accomplis$ my tas*8

$e main p(rpose of t$e pro@ect is t$e f(lfillment of t$e

re(irements of t$e B(siness Policy 3 Strate%y co(rse7 )$ic$ is

t$e part of o(r st(5y )or*8

PIA# is t$e national airline of Pa*istan8 $e information $as 6een

%at$ere5 from 5ifferent so(rces incl(5in% t$e )e6 site7 )e6

pa%es relate5 to t$e airline7 personal 5isc(ssion )it$ employees7telep$one 5isc(ssion representatives an5 visit to t$e 6ranc$

office sit(ate5 in $e &all Roa57 La$ore8 We $ave incl(5e5 all t$e

information o6taine5 from t$e mentione5 so(rces an5 no part of

t$is pro@ect $as 6een a55e5 from o)n8

As re%ar5s t$e preparation of t$is pro@ect7 all t$e topics are

a55e5 in a proper se(ence7 startin% )it$ t$e ta6le of contents7

incl(5in% t$e $istory7 overall vie)7 company information7

mana%ement $ierarc$y7 everyt$in% t$at )as re(ire5 for t$e

completion of t$e pro@ect8

PA4ISAN INERNAIONAL AIRLINE Pa%e =


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AC-NO6.EDGEMENT

We )o(l5 li*e to offer o(r $(m6le %ratit(5e to Alla7 Ali#7t37

t$e most Gracio(s an5 t$e most &ercif(l7 )$o %ave (s stren%t$

an5 ena6le5 (s to ac$ieve o(r %oals8

$e topic of o(r pro@ect )as t$e complete Strate%ic Analysis of

PA-I0TAN INTERNATION AIR.INE $PIA+ an5 its impact onPa*istan8 "(rin% o(r Pro@ect7 )e $a5 to face some 5iffic(lties as

5ata )as not rea5ily availa6le )e $a5 to %o to PIA office to

collect 5ata after $avin% some soli5 reference an5 t$en sort o(t

relevant 5ata for o(r pro@ect8

We )o(l5 li*e to t$an* o(r *in5 Pro! GA8MAD RANAfor $is

contin(o(s an5 pre2emptive an5 contin(o(s s(pport8 Wit$o(t $is

$elp )e )o(l5 not $ave 6een a6le to complete o(r pro@ect on

timely manner8 We are %ratef(l to employees of vario(s

5epartments of PIA t$at $elpe5 (s 5(rin% o(r fiel5 )or* an5

$elpe5 (s in ma*in% o(r pro@ect s(ccessf(l8

TA2.E O1 CONTENT0PA4ISAN INERNAIONAL AIRLINE Pa%e ?


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INTRODUCTIONBrief !istory88888888888888888888888888888888888888888888888888888888888888888888888888888


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#osts J Epen5it(res88888888888888888888888888888888888888888888888888888888888888888Profits8888888888888888888888888888888888888888888888888888888888888888888888888888888888888888Reven(es88888888888888888888888888888888888888888888888888888888888888888888888888888888888Ratios8888888888888888888888888888888888888888888888888888888888888888888888888888888888888888

OT8ER 0TRATEGIE0R3"8888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888Proc(rement888888888888888888888888888888888888888888888888888888888888888888888888888888

CONTRO. PROCEDURE0&ar*etin% control88888888888888888888888888888888888888888888888888888888888888888888Pro5(ction control8888888888888888888888888888888888888888888888888888888888888888888;(ality control8888888888888888888888888888888888888888888888888888888888888888888888888!R control88888888888888888888888888888888888888888888888888888888888888888888888888888888Finance control8888888888888888888888888888888888888888888888888888888888888888888888888

PRO2.EM 0ECTION&ain pro6lems accor5in% to t$e mana%ement88888888888888888888888888&ain pro6lems accor5in% to yo(r analysis88888888888888888888888888888888S(6 pro6lems8888888888888888888888888888888888888888888888888888888888888888888888888888

0TRATEGIC A.TERNATIVE0Sol(tions to solve t$e pro6lems888888888888888888888888888888888888888888888888Eval(ation of t$e sol(tions88888888888888888888888888888888888888888888888888888888

IMP.EMENTATION P.AN888888888888888888888888888888888888888888888

CONC.U0IONRECOMMENDATION0RE1ERENCE0

PA4ISAN INERNAIONAL AIRLINE Pa%e ,


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2RIE1 8I0TOR/

PA4ISAN INERNAIONAL AIRLINE Pa%e ,,


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Birth of a Nation, Birth of an AirlineAir transport $as pro6a6ly never 6een more important to t$e 5evelopmentof a ne) nation t$an in t$e case of Pa*istan8 In K(ne ,D/17 )$en Pa*istan)as still in t$e offin%7 &r8 &o$amma5 Ali Kinna$7 t$e Fo(n5er of t$e(pcomin% nation7 instr(cte5 &r8 &8A8 Ispa$ani7 a lea5in% in5(strialist7 to

set (p a national airline7 on a priority 6asis8 Wit$ $is sin%(lar vision an5foresi%$t7 &r8 Kinna$ realiCe5 t$at )it$ t$e formation of t$e t)o )in%s ofPa*istan7 separate5 6y ,,


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operations commence5 on /t$ K(ne,D/=8 $e 5esi%nate5 ro(te for OrientAir)ays )as #alc(tta2A*ya62Ran%oon7)$ic$ also $appene5 to 6e t$e first post2)ar international sector to 6e flo)n 6y

an airline re%istere5 in In5ia8 Wit$in t)omont$s of Orient Air)ays operational6e%innin%s7 Pa*istan )as 6orn8 $e 6irt$of a ne) nation %enerate5 one of t$elar%est transfers of pop(lation in t$e$istory of man*in58

Orient Air)ays7 alon% )it$ t$e $elp of BOA# aircraft )$ic$ $a5 6eenc$artere5 6y t$e Government of Pa*istan7 starte5 relief operations an5transportation of people 6et)een "el$i an5 4arac$i7 t$e t)o capitals8S(6se(ently7 Orient Air)ays transferre5 its 6ase to Pa*istan an5esta6lis$e5 a vital lin* 6et)een 4arac$i an5 "acca7 t$e t)o capitals of t$et)o )in%s of Pa*istan8 Wit$ a s*eleton fleet of @(st t)o "#2.s7 t$ree cre)mem6ers7 an5 t)elve mec$anics7 Orient Air)ays la(nc$e5 its sc$e5(le5operations in a fairy2tale manner8

$e initial

ro(tes )ere 4arac$i2La$ore2Pes$a)ar74arac$i2;(etta2La$ore an5 4arac$i2"el$i#alc(tta2"acca8 By t$e en5 of ,D/D7

Orient Air)ays $a5 ac(ire5 ,< "#2.san5 . #onvair -/


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Orient

Air)ays )as a privately o)ne5 company7)it$ limite5 capital an5 reso(rces8 Itco(l5 not 6e epecte5 to %ro) an5epan5 in5epen5ently8 It )as t$en t$at

t$e Government of Pa*istan 5eci5e5 toform a state2o)ne5 airline an5 invite5Orient Air)ays to mer%e )it$ it8 $eo(tcome of t$e mer%er )as t$e 6irt$ of ane) airline7 t$ro(%$ PIA# Or5inance,D00 on Kan(ary ,


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Ne)

Planes7 Ne) "irections7 Ne)&ana%ementIn ,D017 or5ers )ere place5 for t)oS(per #onstellations an5 five Hisco(nts

)$ic$ )ere to 6e 5elivere5 in ,D0D8 Att$is @(nct(re7 PIA possesse5 a small fleet)$ic$ comprise5 of #onvairs7 Hisco(nts7S(per #onstellations an5 "#2.s8

W$ile &r8

&8A8 Ispa$ani )as t$e first #$airman oft$e ne) 5ynamic airline it )as t$e first&ana%in% "irector of PIA7 &r8 >afar2(l2A$san7 )$o in $is / year ten(re7 %ot t$e6all tr(ly rollin% an5 set t$e s$ape oft$in%s to come8 $e PIA !ea5 Office6(il5in% at 4arac$i Airport7 )$ic$ $o(sest$e entire ma@or 5epartments of t$eairline7 )as t$e 6rain2c$il5 of &r8 >afar2(l2 A$san8 In fact7 on $is 5epart(re fromt$e airline7 t$e employees presente5 $im)it$ a silver replica of t$e 6(il5in% )it$t$e caption7 ;T7e 8o,se /o, 2,ilt;8In ,D0D7 t$e Government of Pa*istanappointe5 Air #ommo5ore N(r 4$an ast$e &ana%in% "irector of PIA8 Wit$ $isvisionary lea5ers$ip7 PIA too* off an5)it$in a s$ort span of 1 years7 %aine5

t$e stat(re an5 stat(s of one of t$e)orl5s frontline carriers8 In aviationPA4ISAN INERNAIONAL AIRLINE Pa%e ,0


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circles7 t$is perio5 $as often 6eenreferre5 to as t$e ;#ol4en 3ears o!PIA;

"evelopment7 epansion7 an5 %ro)t$ )ere *ey)or5s t$at t$e ne)

mana%ement )as committe5 to8 In &arc$ ,D1


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$e airline contin(e5 (p t$e %ro)t$ c(rve7 receivin% t)o Fo**er F2-=s7 t)oBoein% =


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i8 Or#ani


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PA4ISAN INERNAIONAL AIRLINE Pa%e -


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PA4ISAN INERNAIONAL AIRLINE Pa%e -,


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.OCATION O1 A O11ICE!EA" OFFI#E M 4ARA#!IPIA BUIL"ING

KINNA! INERNAIONAL AIRPOR4ARA#!I 2 =-0


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LA!ORE M //


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Fa 01?


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#ar%o P$one -?D

4!ARIANPIA Boo*in% Office7 G88 Roa57 4$arianP$one -D


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S!I4ARPUR A55ress Station Roa57 S$i*arp(rP$one 0,-?


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Allaa I?bal International Air"ort .a7ore

PA4ISAN INERNAIONAL AIRLINE Pa%e -=


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PIA Doestic Net@or>

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PIA International Net@or>

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Total N,ber o! E"lo3ees

$ere are total )(5'' employees )or*in% in Pa*istan InternationalAirport PIA )$ic$ incl(5es Boar5 of "irectors7 #orporate secretary7 !ea5of Internal A(5it7 Eec(tive &ana%ement an5 A(5itors (n5er 5ifferent5epartments8

Nat,re o! 2,siness

$e nat(re of Pa*istan international airlines is transport 3 services t$o(%$air7 an5 6y roa5

T3"e o! O@ners7i"

$ey are semi2 %overnment or%aniCation8 $at is ?


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.8 &ALI4 NA>IR A!&A"/8 &R8 KAHE" A4!ER08 L8 GEN RE"8 S'E" A4ER ALI M Fe5eral secretary "efence18 #AP8 &O!A&&A" AIKA> !AROON M &ana%in% "irector PIA=8 PROF8 &IAN IKA> UL !ASAN

?8 &R8 &UBAS!IR IFI4!ARD8 &R8 !USAIN LAWAI,AL A!&A"

Exec,tive Mana#eent

,8 #AP8 &O!A&&A" AIKA> !AROON M &ana%in% "irector PIA-8 &R8 ARIF &AKEE" M #!EIF FINAN#IAL OFFI#ER.8 &R8 I&RAN A!&A" 4!AN M "irector M proc(rement7 lo%istics an5

Foo5 services

/8 &R8 & !ANIF PA!AN M "irector M !R7 A5ministration 3 coor5ination08 &R8 S!A!NAWA> RE!&AN M "irector M #orporate Plannin%18 &R8 SALA!U"IN M "irector M &ar*etin%=8 AH& &U!A&&A" 4A&AL ALA& SI""I;UE M "irector M Precision

En%ineerin% #omple?8 #AP8 S!UKA NA;HI M "irector Fli%$t OperationsD8 &R8 S!A!I" SARWAR M "irector M Information ec$nolo%y,


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PA4ISAN INERNAIONAL AIRLINE Pa%e .-


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Vision

9PIAs vision is to 6e a Worl5 class airline7 meetin%c(stomer epectations t$ro(%$ ecellent services7 on2time performance7 innovative pro5(cts an5 a6sol(te

safety

Mission

Employee team )ill contri6(te to)ar5s ma*in% PIA a %lo6alairline of c$oice t$ro(%$:

Offerin% (ality c(stomer service 3 innovative pro5(ct8 Usin% state2of2t$e2Art ec$nolo%ies Ens(rin% cost effective meas(res in proc(rement an5operations "evelopin% safety c(lt(re

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GOA.0 & O2ECTIVE0

Accor5in% to PIA# Act ,D017 follo)in% are t$e main o6@ectives of PIA#orporation8

o provi5e an5 f(rt$er 5evelop safe7 efficient7 a5e(ate7 economicalan5 properly coor5inate5 5omestic as )ell as international airtransport system8

o operate any air transport service or any fli%$t 6y aircraft for acommercial or ot$er p(rpose7 an5 to carry all forms of aerial )or*8

o ac(ire7 o)n7 r(n7 mana%e or participate in t$e r(nnin%mana%ement of7 any $otel or 6(siness connecte5 t$ere)it$8

o provi5e for t$e instr(ction an5 trainin% in matters connecte5 )it$aircraft or fli%$t 6y aircraft of persons employe5 or 5esiro(s if 6ein%employe5 eit$er 6y t$e corporation or 6y ot$er person8

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o promote any or%aniCation o(tsi5e Pa*istan for t$e p(rpose ofen%a%in% in any activity of a *in5 )$ic$ t$e corporation $as po)erto carry o(t8

o ac(ire7 $ol5 or 5ispose of any property7 )$et$er mova6le or

immova6le7 or any transport (n5erta*in%8

o repair7 over$a(l7 reconstr(ct assem6le or recon5ition aircraft7ve$icles or ot$er mac$ine parts7 accessories o)ne5 6y t$ecorporation or 6y any ot$er person8

PA4ISAN INERNAIONAL AIRLINE Pa%e .1


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0TEPE. ANA./0I0

Social Factors

Et$nic traffic is present on PIA Lan%(a%e 6arriers are not present Act of patriotism !i%$ traffic on social event or e$)ars li*e Ei57 Basant7

In5epen5ence "ay etc

)echnological Factors

S(pply c$ain is not present Lo%istics iss(es are t$ere Sales teams are not (p5ate5

No coor5ination of 5epartments

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#conomics Factors

Increase f(el prices increase tic*ets prices Inflations creates pro6lems &ar*et sl(mp

"ecreasin% in mi55le class

Political Factors

Political insta6ility Political press(re Flyin% at lo) cost Bilateral promises Non profit ro(tes

#n%ironmental Factors

F(el emission Green f(el

*egal Factors

Li(or cant 6e serve5 Firin% of employee co(rt iss(es

PORTERB0 1IVE 1ORCE0 MODE.

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T8REAT O1 A NE6 ENTRANT 8i#7 .o@

Barriers to entry

#apital re(irements are

$ere is $i%$ t$reat of potential entrants to t$e in t$is 6(siness8Even t$ere are no 6arriers to entry 6(t )$en )e loo* to)ar5st$e capital re(irement t$ese is very $i%$ an5 its ris*y 6(siness

INTEN0IT/ O1 COMPETITIVE

RIVA.R/8i#7 .o@

N(m6er of competitors is

In5(stry %ro)t$ rate is

Fie5 cost are

Stora%e costs are

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Pro5(ct 5ifferentiation is

S)itc$in% costs are

$ere is $i%$ t$reat of eistin% rivalry8 $is is 6eca(se eit6arriers are $i%$7 fie5 an5 stora%e costs are $i%$ an5 pro5(ct5ifferentiation is lo)8 Anot$er factor t$at stren%t$ens t$e t$reatof eistin% rivalry is t$at t$e corporate sta*es are $i%$

T8REAT0 O1 0U20TITUTE

PRODUCT08i#7 .o@

Profita6ility of in5(stry pro5(cin%s(6stit(te is

Rate of improvement in price2

performance relations$ip ofs(6stit(te pro5(ct is

$e

$ere is a $(%e t$reat of s(6stit(te pro5(cts8 $ere are manyot$er companies s(c$ as air Ara6ia 6y S$ar@a7 some 6y Sa(5iali*e &ar$a6a7 $ai air )ays lo) cost carriers an5 many more

2ARGAINING PO6ER O1

0UPP.IER8i#7 lo@

Importance of c(stomer to t$es(pplier is

"ifferentiation of t$e s(pplierpro5(ct an5 services is

#oncentration relative to 6(yerin5(stry is

S)itc$in% cost of t$e 6(yer are

$e 6ar%ainin% po)er of s(pplier is only $i%$ )$en )e tal*a6o(t t$e prices of f(el )$ic$ is $i%$ly important for an air

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in5(stry ot$er)ise t$e remainin% in%re5ients are not effectin%t$is in5(stry as $i%$ly as to some ot$er 6(siness

2ARGAINING PO6ER O1 2U/ER 8i#7 lo@

Pro5(ct 5ifferentiation of s(pplier is

S)itc$in% cost are

Pro5(ct 5ifferentiation are

$e po)er of 6(yer is very $i%$8 $ey 6(y tic*ets form t$erenear availa6le point an5 t$ey also 6(y tic*et of air line )$ic$

cost less to t$em

2CG MATRI: 1OR PIA

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$is is a strate%y tool t$at %(i5es reso(rce allocation 5ecisionon t$e 6asis of mar*et s$are an5 %ro)t$ rate of SBUs8 $eB8#8G matri 5ivi5es or%aniCations into fo(r 5ifferent

cate%ories8 $ese are as follo)s:

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#as$ #o)s: W$ic$ $ave $i%$ mar*et s$are 6(t lo) opport(nityfor %ro)t$ Stars: W$ic$ $ave $i%$ mar*et s$are an5 $i%$ opport(nity for%ro)t$ ;(estion mar*s: W$ic$ $ave $i%$ opport(nity for %ro)t$ an5

lo) mar*et s$are "o%s: W$ic$ $ave lo) mar*et s$are an5 lo) opport(nity for%ro)t$8

Base5 on t$ese ass(mptions7 Pa*istan air lines $ave 6eenclassifie5 as a cash co"s6eca(se it 5oes $ave a $i%$ mar*ets$are )$ic$ is 1= percent in t$e air line in5(stry 5omesticallyan5 .< percent internationally an5 lo) 6(siness %ro)t$opport(nity8

06OT ANA./0I0

Strengths

Point to point fre(ency La$ore to Lon5on !i%$ (ality services

People oriente5 Or%aniCation No lan%(a%e pro6lem Govt8 sponsore5 or%aniCation Perfect timin%s A6roa5 Pa*istanis prefer PIA patriotism !ealt$y internal environment

Weaknesses

Less international traffic Li(or is not serve5 so less traffic Wea* re)ar5s 3 appraisal Less effort in t$e fiel5 of mar*etin% !i%$ Fares Over staffin% over 6(r5ene5 employees Lac* of professionalism Lo) salary of en%ineers

Opportunities

raffic et$nic Better recr(itment policy

Bi% mar*ets availa6le t$at are (n serve5 Spee5 e7 co(rier service 5omestically can 6e internationally

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Lo) cost carriers Better trainin% pro%rams !ave an opport(nity to %ro) an5 epan5 t$ro(%$o(t t$e co(ntry

Threats

All 5omestic an5 international carrier Fl(ct(atin% petrol prices Government c$an%in% Barriers to investment for a6roa5 5(e to co(ntry con5itions ime ta*en 6y em6assy to accept visa errorism B(sy fli%$t sc$e5(le Open s*y policy

!i%$ amo(nt of loan

E1E Matrix

-e3 External 1actors6ei#7t

sRatin#

6ei#7te

4 0core

O""ort,nities

,8 raffic et$nic


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PIA Aero Asia 07a7een

Critical 0,ccess 1actors6ei#7t

sRatin# 0core Ratin# 0core Ratin# 0core

Service ;(ality


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+.8-< 2,81< )*'

1inancial 0tren#t7 $10+ (score: + !est, +" worst#$

+,: Ret(rn on Investment

+,: Levera%es

+.: Li(i5ity

+-: Wor*in% #apital

+,: #as$ Flo)

Avera%e: +,81E" 5ecision ma*in%7 )$ic$ is not a positive si%n in any

or%aniCation8

MOTIVATION AND INCENTIVE0

PA4ISAN INERNAIONAL AIRLINE Pa%e 0/
http://www.1000ventures.com/business_guide/mgmt_stategic_resource-based.htmlhttp://www.1000ventures.com/business_guide/crosscuttings/strategic_intent.htmlhttp://www.1000ventures.com/business_guide/mgmt_stategic_resource-based.htmlhttp://www.1000ventures.com/business_guide/crosscuttings/strategic_intent.html


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PIAs only motivation is in t$e form of $an5some salary )it$ respect to

t$eir competitors an5 monetary 6on(ses an5 a yearly increment of salary

from ,


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PA4ISAN INERNAIONAL AIRLINE Pa%e 0=


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MAR-ET 0EGMENTATION O1 PIA

) Deo#ra"7ic 0e#entation o! PIA

Income Se%mentation Occ(pation Se%mentation

% Geo#ra"7ic 0e#entation

In t$is se%mentation PIA foc(ses 6ot$ on se%ments 5omestic an5international

F 2e7avioral 0e#entation

Occasion Se%mentation

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!a@@s Occasion8 Ei5s Occasion8 Ne) 'ears Occasion8 Loyalty Stat(s

Ps3c7o#ra"7ic 0e#entation o! PIASocial #lass

o(rists Reli%io(s ravels Pa*istani Epatriates

$e eistin% mar*et se%mentation strate%y of PIA is reasona6le eno(%$6eca(se it covers all necessary parameters t$at are to 6e foc(se5 in 5oin%mar*et se%mentation for Airline #ompany8

TARGETING 0TRATEG/ O1 PIA

PIABs Existin# Tar#et A,4ience

,8 From t$e $emogra&hic Segmentation7 PIA is tar%etin% t$e incomean5 occ(pation oriente5 people8 $e classification of 6ot$ cate%ories isas follo)8

Incoe 0e#entationFrom income se%mentation of PIA7 t$ose )$o falls (n5er t$ecate%ory of (pper class an5 (pper mi55le class

Occ,"ation 0e#entation

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From occ(pation Se%mentation t$at PIA is ta*in% in to acco(nt7 t$ereare t)o main s(6 $ea5s of )or*in% class an5 6(siness class8 $e)or*in% class incl(5es all t$ose )$o are )or*in% as an employeeinsi5e an5 o(tsi5e t$e co(ntry8 In 6(siness class all t$ose people areincl(5e5 )$o are $avin% 6(siness8

-8 FromGeo#ra"7ic 0e#entationof PIA all t$e a(5ience from t$e5omestic an5 international re%ions are incl(5e5 in 5omestic people)it$in t$e co(ntry are incl(5e5 an5 people resi5in% o(tsi5ePa*istan8

.8 From t$e 2e7avioral 0e#entation PIAs tar%et a(5ience iscate%ories as follo)8

Occasion 2ase4 Mar>et 0e#entationof PIA8 8ajjBs Occasion

W$en !a@@ operation in %oin% all t$ose people flyin% from 5ifferentcities of Pa*istan to Sa(5i Ara6ia for t$e performance of !a@@8

Ei4Bs OccasionW$en Ei5 occasions are near people )it$in t$e cities an5 o(tsi5e t$eco(ntry move to t$eir $omes for $avin% Ei5 Occasion to%et$er )it$family

Ne@ /earsB OccasionNo) people prefer to $ave Ne) 'ear )it$ t$eir family t$ats )$y all

t$ose people comin% 6ac* to Pa*istan from 5ifferent co(ntries ormovin% o(tsi5e Pa*istan to 5ifferent co(ntries an5 also all t$osepeople movin% )it$in t$e co(ntry are tar%ete5 over $ere8

.o3alt3 0tat,sPIA %ives 5ifferent 6enefits to t$e fliers8 B(t all t$ose )$o travel a lot%et t$e 6enefit of fre(ent fliers )$ic$ carries fe) 5isco(nt rates on

t$e tic*ets8 o s(c$ a(5ience PIA not only %ives t$e 5isco(nt facility6(t also t$e facility of pic* an5 5rop to t$em8

/8 From t$e Ps3c7o#ra"7ic 0e#entation of PIA7 t$e tar%eta(5ience of PIA )ill 6e t$e follo)in%8

0ocial ClassIn Social #lass PIA tar%ets t$e to(rists7 reli%io(s travelers an5Pa*istani Epatriates8

To,rists



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All t$e to(rists from 5ifferent re%ions of t$e co(ntry or from 5ifferentco(ntries come to Pa*istan for to(rism p(rpose or %o o(tsi5e t$eco(ntry8 Beca(se PIA is $avin% $i%$est rate of lin*in% t$e remotesareas of Pa*istan

Reli#io,s TravelsAll t$e reli%io(s travelers for eample people %oin% for !a@@ etc aretar%ets over $ere8

Pa>istani Ex"atriatesAs PIA is a national fla% carrier airline t$ats )$y people resi5in%o(tsi5e t$e co(ntry feel a (ni(e sort of feelin% to %et into t$eNational Airline8 PIA is not @(st an5 Airline 6(t also acts as t$eam6assa5or of Pa*istan in t$e )$ole )orl58

MAR-ETING MI: $H PBs+

&ar*etin% &i is t$e set of mar*etin% tools t$at t$e firm (ses to p(rs(e itsmar*etin% o6@ectives in t$e tar%et mar*et8 $ere are literally 5oCens ofmar*etin% mi tools8 &c#art$y pop(lariCe5 = factor classifications of t$esetools calle5 = Ps: Pro5(ct7 Price7 Place7 Promotion7 people7 process an5p$ysical evi5ence8So t$ese = Ps of PIA are 5isc(sse5 as follo)s:

PRODUCT

A pro5(ct is anyt$in% t$at 6e offere5 to a mar*et for alteration7

ac(isition7 (se7 or cons(mption t$at mi%$t satisfy a )ant or nee58 &ost

PA4ISAN INERNAIONAL AIRLINE Pa%e 1,


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pro5(cts )e t$in* of are p$ysical pro5(cts7 6(t it also incl(5es services8PIA# is also provi5in% services to t$e nation7 )$ic$ can 6e cate%oriCe5 asfollo)s:

Seat service for passen%ers an5

Space service for car%o

$e c$aracteristics of t$e services provi5e5 6y PIA# are 5epicte5 in t$efollo)in% lines8

INTANGI2.IT/

Services provi5e5 6y PIA are intan%i6le8 Unli*e p$ysical pro5(ct7 t$eycannot 6e seen7 teste57 felt7 $ear5 or smelle5 6efore t$ey are 6o(%$t8

$erefore7 t$e 6(yer cannot see t$e res(lt 6efore t$e p(rc$ase8 o re5(ce(ncertainly7 t$e 6(yers )ill loo* for si%ns an5 evi5ence of t$e service(ality8 $ey )ill 5ra) interface a6o(t t$e (ality of t$e service fromplace7 people7 e(ipment7 comm(nication material7 sym6ols an5 pricet$at t$ey )ill see8

$erefore7 PIAs tas* is to mana%e t$e evi5ence7 to tan%i6les t$eintan%i6les8

IN0EPARA2I.T/

Services are typically pro5(ce5 an5 cons(me5 at t$e same time8 If t$eservice is ren5ere5 6y a person7 t$en t$e person is a part of service8 Since

t$e client is also present as t$e service is 6ein% pro5(ce58

VARIA2I.IT/

Services are $i%$ly varia6le7 as t$ey 5epen5 on )$o provi5es t$em an5)$en an5 )$ere t$ey are provi5e58 Service firm can ta*e t)o stepsto)ar5s (ality control8 $e first step is investin% in %oo5 personnelselection an5 trainin%8 PIA spen5s s(6stantial s(ms to train t$eiremployees in provi5in% %oo5 service8 Secon5 step is monitorin% c(stomersatisfaction system an5 PIA also 5o not properly monitor c(stomersatisfaction8

PERI08 A2.IT/

Services cannot 6e store5 an5 t$ey $ave no self life8 W$en 5eman5fl(ct(ates7 service firms $ave 5iffic(lt pro6lems7 li*e PIA $as to applym(c$ more e(ipment 6eca(se of pea* perio5 5eman5 on a specific ro(tet$an it )o(l57 if 5eman57 )as even t$ro(%$o(t t$e year8

PIA (se follo)in% strate%ies for pro5(cin% a 6etter matc$ 6et)een5eman5 an5 s(pply8

On t$e 5eman5 si5e

PA4ISAN INERNAIONAL AIRLINE Pa%e 1-


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2 "ifferential pricin% to s$ift some 5eman5 from pea* to off pea*perio5s

2 Non pea* 5eman5 can 6e c(ltivate52 Reservation system is one )ay to mana%e t$e 5eman5 level7 an5

PIA employ it etensively

On t$e s(pply si5e2 Pea* time efficiency ro(tines are intro5(ce58 Employees perform

only essential tas*s 5(rin% pea* perio5s2 S$are5 services are 5evelope5 6y interline a%reements8

PRICE

A profit or%aniCation faces t$e tas* of settin% a price on t$eir pro5(ct J

service8 Price is t$e amo(nt of money t$at c(stomers $ave to pay for t$eservice8 !o) are prices setT PIA $as to 5eal )it$ pricin% aspect in t)otypes of sit(ation8

,8 Pricin% of passen%er tic*ets-8 Pricin% of #ar%o Air)ays Bill

For t)o types of ro(tes7 5omestic ro(tes an5 international ro(tes7 5ifferentpricin% policies are (se5 6y PIA8

DOME0TIC ROUTE0

Prices for 5omestic ro(tes are fie5 6y %overnment of Pa*istan for PIA8 $ecost pl(s met$o5 is (se5 to set prices at 5omestic level8 $e PIAsmana%ement estimates t$e price 6y (sin% follo)in% si steps proce5(rean5 sent to t$e %overnment for final approval:

,8 Selectin% t$e price o6@ective-8 "eterminin% "eman5.8 Estimatin% costs/8 AnalyCin% competitors prices 3 offers08 Selectin% a pricin% met$o518 Selectin% t$e final price

INTERNATIONA. ROUTE0

$e prices for international ro(tes are set 6y International Air ravelAssociation IAA8 $e IAA 5oes not allo) any 5isco(nt on anyinternational ro(tes7 tic*et s$o)s t$e f(ll price for t$e ro(te )$ile airlinesc$ar%e 5isco(nte5 fare 6y c(ttin% t$eir prescri6e5 s$are of profit8

!o)ever7 PIA esta6lis$es t$e pricin% strate%ies on 5ifferent international

ro(tes *eepin% in vie) t$e follo)in% points:

PA4ISAN INERNAIONAL AIRLINE Pa%e 1.


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,8 "eman5 for seat7 %reater 5eman5 ten5s to no 5isco(nt-8 #ompetitors price.8 #ost of operation/8 ype of Aircraft (se5

On t$e ot$er $an5 PIA $as t$ree cate%ories of t$eir pricin% as 6elo)7 t$eyalso vary 6y season to season an5 at pea* time8

!i%$er prices S$o(l5er prices Lo) prices

#OUNRIES !IG!ER PRI#ESRS8

S!OUL"ERPRI#ES RS8

LOW PRI#ESRS8

U4 1=7/0< 0.7=0< /070


65/118

ERO .EVE. C8ANNE.0

It is also *no)n as 5irect mar*etin% c$annel8 !ere PIA sells t$e tic*ets5irectly to final (sers7 t$ro(%$ its tic*et co(nters8 In La$ore7 PIA $as tic*et

an5 6oo*in% office see pa%e ,=2,D to sell 5irectly to t$e c(stomers8 Alls(c$ offices of PIA are comp(teriCe5 an5 5irectly lin*e5 )it$ t$e $ea5office at 4arac$i8

ONE .EVE. C8ANNE.

!ere travel a%ents7 as interme5iaries7 are involve5 in sellin% of tic*ets tot$e c(stomers8 &any travel a%ents are provi5e5 )it$ t$e a(to tic*etin%an5 reservation system8 $ere are t)o types of a%ents )$ic$ are 5efine5as follo)s:

IATA A#encies$ere are .< IAA approve5 travel a%encies )$ic$ 5eals )it$ PIA8$ese a%encies can also 6e stoc*e5 an5 sell t$e tic*ets of ot$erairlines8 #ommission of t$ese a%ents is as follo)s:

2 International sector D2 "omestic sector 0

DI0TRICT 0A.E0 AGENT0$ese are t$e a%ents )$o ecl(sively 5eal )it$ PIAs tic*et an5cannot 5eal in ot$er airlines8 Normally7 t$ese are locate57 )$ere PIA

5oes not $ave sales point8

!o)ever7 t$ere is one in La$ore8 $e commission provi5e5 to GeneralSales A%ents is:

2 International sector ,- 2 "omestic Sector 0

PROMOTION

PIA is not investin% m(c$ in t$is area8 $ey @(st (se 6roc$(res7ne)spapers an5 some H commercial )$en pea* season is not t$ere8A%ents play an important role in promotion as t$ey convince traveler totravel t$ro(%$ PIA8 Some 6roc$(res are liste5 6elo):



66/118

2ROC8URE0

UMRA8 MADE EA0IER

PIA offers more fli%$ts to Ke55a$ in &ay7 K(ne an5 K(ly for Umra$

$ese a55itional fli%$ts )ill not only provi5e more travel options to

Umra$ Pil%rims 6(t )ill also ena6le more people to perform t$e $oly

rit(al8

Pil%rims can no) en@oy comforta6le an5 l((rio(s @o(rney in Boein%2

===s



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PIA J2UDGET 1.IG8TJ ENO/ UP TO FKL

DI0COUNT ON REGU.AR 1ARE0

PIA intro5(ces B(5%et Fli%$t 6et)een 4arac$i7 La$ore7 an5 Islama6a58

Fly PIAs ne) AR

Up to ,


68/118

PIA 1.E:I2.E 1ARE0 P.AN A8EAD &

PA/ .E00

Boo* International or "omestic fli%$ts as early as possi6le 6eca(se

t$e earlier yo( 6(y7 t$e c$eaper yo( fly8

A variety of 5isco(nts in B(siness7 Economy Pl(s7 3 Economy #lasses8

$e 6enefit of even lo)er fares in t$e lean travel perio58

Flei6le Fares are applica6le on sectors )$ere Reven(e &ana%ement

is implemente58

#on5itions apply

PA4ISAN INERNAIONAL AIRLINE Pa%e 1?


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1./ 2U0INE00 C.A00 6IT8 A 1REE

TIC-ET

B(y t$ree tic*ets an5 %et one FREE

B(y one tic*et an5 pay ONL' 0


70/118

-0 5isco(nt offere5 to st(5ents on "omestic ro(tes8

,


71/118

PIA Spee5e 5elivers 5oc(ments an5 parcels to yo(r 5oorstep7 )it$

a vast 5omestic net)or*7 c(ttin%2e5%e tec$nolo%y7 an5 t$e $i%$est

stan5ar5s of c(stomer service8

PIA Spee5e offers a ran%e of flei6le 5elivery options to s(it yo(r 6(5%et

an5 yo(r nee5s8

0ae Da3 0"ee4

Overni#7t 0"ee4

0econ4 Da3 0"ee4

0easonal Pro4,cts $Ne@+

PA4ISAN INERNAIONAL AIRLINE Pa%e =,


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C.IC- JNJ 1./ 6IT8 PIA 6E2 TIC-ETING

Sec(re online cre5it car5 transaction

#onvenient accessi6ility from $ome or office

PA4ISAN INERNAIONAL AIRLINE Pa%e =-


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1REE PIC- & DROP 0ERVICE

PIA now offers the free pick and drop service from your door to airport.

his offer will !e offer only for "usiness class.

MAGAINE

PA4ISAN INERNAIONAL AIRLINE Pa%e =.


74/118

PIA )ill %ive a5vertisement in

5ifferent ma%aCines once after t)o mont$ )it$ a co(pon of ,0 off in

t$e follo)in% ma%aCines8

imes &a%aCines Spi5er A(rora

,8 Newspaper Advertisement

PA4ISAN INERNAIONAL AIRLINE Pa%e =/


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PIA )ill fre(ently %ive t$e a5vertisement in t$e most rea5a6le

ne)spapers7 mentione5 as 6elo):

K(n% "a)n

B(siness recor5erWe $ave planne5 to enli%$ten o(r f(t(re plans to o(r c$eris$e5

c(stomers in t$e (pcomin% mont$8

PEOP.E

An essential in%re5ient to any service provision is t$e (se of appropriatestaff an5 people8Essential if t$e or%aniCation )ants to o6tain a form of competitivea5vanta%e8 #ons(mers ma*e @(5%ments an5 5eliver perceptions of t$e

service 6ase5 on t$e employees t$ey interact )it$8 Staff s$o(l5 $ave t$eappropriate interpersonal s*ills7 aptitit(5e7 an5 service *no)le5%e toprovi5e t$e service t$at cons(mers are payin% for8 &any Britis$or%aniCations aim to apply for t$e Investors in People accre5itation7 )$ic$tells cons(mers t$at staff is ta*en care off 6y t$e company an5 t$ey aretraine5 to certain stan5ar5s8

$ere are total )(5'' employees )or*in% in Pa*istan InternationalAirport PIA )$ic$ incl(5es Boar5 of "irectors7 #orporate secretary7 !ea5of Internal A(5it7 Eec(tive &ana%ement an5 A(5itors (n5er 5ifferent5epartments8

8

RAN- No O!E"lo3ees

2OARD O1 DIRECTOR0 ))CEO )8EAD O1 AUDITOR )PI.OT0 H

CO PI.OT0 )KENGINEER0 %FMANAGER0 )FAUDITOR0 %CORPORATE 0ECURIT/ )OT8ER0 )H(K*)

PROCE00

PA4ISAN INERNAIONAL AIRLINE Pa%e =0


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In PIA t$e process is time )$en t$e c(stomers 6(y t$e tic*ets an5 t$etime of t$eir lan5in% to t$eir 5estination8 ic*etin% offices are availa6le forc(stomers at all t$ere near 5estination8 In Pa*istan PIA $ave airports in5ifferent cities8 Its (p to t$e services receiver from )$ere t$ey )ant to fly8

P8/0ICA. EVIDENCE

It is t$e material part of a service8 Strictly spea*in% t$ere are no p$ysicalattri6(tes to a service7 so a cons(mer ten5s to rely on material c(es8

$ere are many eamples of p$ysical evi5ence7 incl(5in% some of t$e

follo)in%: Pac*a%in%8

InternetJ)e6 pa%es8

Paper)or* s(c$ as invoices7 tic*ets an5 5ispatc$ notes8

Broc$(res8

F(rnis$in%s8

Si%na%e s(c$ as t$ose on aircraft an5 ve$icles8

Uniforms8

B(siness car5s8 $e 6(il5in% itself s(c$ as presti%io(s offices or scenic

$ea5(arters8

&ail6oes an5 many ot$ers 8 8 8 8 8 8

$e eistence of aircrafts7 tic*et offices7 environment7 air 6(ses7 air portsare t$e evi5ences for c(stomers of PIA

Mar>et 07are

$e mar*et s$are of PIA as 5omestically an5 internationally is as

PIAOt7e

r

Doestic 1= ..

PA4ISAN INERNAIONAL AIRLINE Pa%e =1


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International

.


78/118

PA4ISAN INERNAIONAL AIRLINE Pa%e =?


79/118

2alance 07eet

PA4ISAN INERNAIONAL AIRLINE Pa%e =D


80/118

2alance 07eet

PA4ISAN INERNAIONAL AIRLINE Pa%e ?


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Pro!it an4 loss acco,nt

PA4ISAN INERNAIONAL AIRLINE Pa%e ?,


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0tateent o! Cas7 1lo@

PA4ISAN INERNAIONAL AIRLINE Pa%e ?-


83/118

PA4ISAN INERNAIONAL AIRLINE Pa%e ?.


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0tateent o! E?,it3

PA4ISAN INERNAIONAL AIRLINE Pa%e ?/


85/118

PA4ISAN INERNAIONAL AIRLINE Pa%e ?0


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CO0T0 9 E:PENDITURE0

CO0T O1 0ERVICE0 Deceber F) Deceber F)

-


87/118


88/118

Rent7 rate 3 taes .-D7=11 -=17,D1

Utilities .071D/ .,7D/-

"epreciation =-7//< 1D7,,,

AmortiCation ,7=


89/118

A(5itors rem(neration ,


90/118

COMP.ETE 1INANCIA. ANA./0I0

As a c(m(lative res(lt of o(r en5eavors7 PIAs traffic performance in t$elast (arter of -


91/118

As yo( can see in t$e a6ove ta6le7 t$e loss in -


92/118

Secon5ly7 t$e cr(5e oil prices s*yroc*ete5 in -


93/118

Ratios

Li(i5ity EPS (rnover ratios ROI

.i?,i4it3 Ratio

#(rrent ratio Aci5 test ratio Wor*in% capital #as$ ratio

Pa>istan International Airline

.i?,i4it3ratio

Cal %''H Cal %''

C,rrentratio

,.7-0,7..,0-7


94/118

6or>in#ca"ital

,.7-0,7..,20-7


95/118

$e En%ineerin% S(pplies "epartment of PIA is t$e P(rc$asin% A(t$ority for proc(remcompanies t$at meet o(r pro5(ctJservice specifications to participate in o(r ten5ers8

R&D

Accor5in% to t$e &ana%ement of PIA7 $ey 5ont $ave R3" in t$eirprocess so )e are not a55in% t$e information re%ar5in% R3"8

PRO2.EM 0ECTION0

MAIN PRO2.EM0 ACCORDING TO MANAGEMENT

PIA is a lar%e p(6lic or%aniCation li*e ot$er or%aniCation PIA is also facin%

some serio(s pro6lems8 Some of t$em are as follo)e5:

PO.ITICA. IN1ERENCE

Eec(tives are t$e people )$o can improve or fail any 6(siness8 $ey

s$o(l5 *no) t$eir 6asic @o6s a(t$orities an5 responsi6ilities8 In PIA7 ma@or

pro6lem is t$at t$ere is $i%$ political inference in t$e appointment an5

selection area8 &ana%in% 5irector is appointe5 from o(tsi5e t$e

or%aniCation8 No)a5ays7 c$airman of PIA is a P&A political person cant

$ave as m(c$ *no)le5%e of a commercial or%aniCation as prompte57

talente5 persons8 $ese eec(tives t$en select t$eir favo(rite person for

ne) vacancies )eat$er t$ey $ave tec$nical *no)le5%e a6o(t @o6 or not

so7 t$is effects t$e overall efficiency an5 6(siness of or%aniCation8

UNION IN1ERENCE

PIA employees $ave t$eir (nions8 $ey (se t$eir po)er mostly for lo)

level appointments so t$e (pper an5 lo)er appointments affect t$e rest of

proportion8

2UREAUCRATIC 0TRUTURE

#$aracter of t$e or%aniCations is more li*e on elite %ovt8 Set (p an5 less

li*e an efficient for)ar5 loo*in% or%aniCation8

PA4ISAN INERNAIONAL AIRLINE Pa%e D0


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GOVERNEMENT 8URD.E0

As PIA is (n5er ?


97/118

Wea* &ar*etin% strate%y

Ol5 A%e5 Fleets

Ref(n5 process is not satisfactory

!i%$est employee ratio per airplane

#omplaints of employees are not properly facilitate5

0U2PRO2.EM0

Sometimes7 a%ency sale a%ents 5ont realiCe airport taes )$ic$

ma*e complication in realiCation of reven(e

At some areas7 @o6s are not clearly 5efine5 )$ic$ effect efficiency

an5 )or*in% relation of employees

Rate of motivational campai%ns for employees very lo)

For ref(n57 c(stomers $ave to come to t$e office )$ic$ create

pro6lem for t$em

Over 6oo*in% an5 mis$an5lin% also creates tro(6le

&isappropriation of )or* is one of t$e main pro6lems li*e en%ineer)or* as acco(ntant8 $is is 6eca(se of political inference

"elay in comp(ter (p %ra5ation also effect o(tp(t8

0TRATEGIC A.TERNATIVE0

0O.UTION0 TO 0O.VE T8E PRO2.EM0

PO.ITICA. IN1ERENCE

Eec(tives are t$e people )$o can improve or fail any 6(siness8 $ey

s$o(l5 *no) t$eir 6asic @o6s a(t$orities an5 responsi6ilities8 $e elements

of nepotism an5 @o66ery are present in PIA8 $ere is element of

favo(ritism from t$e %overnment si5e8 As t$e company is in financial crisis

PA4ISAN INERNAIONAL AIRLINE Pa%e D=


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t$ere is a nee5 to privatiCe PIA alon% )it$ t$is7 financial crisis7 @o66ery an5

nepotism s$o(l5 6e re5(ce5 to favo(ra6le etent8

UNION IN1ERENCE

In PIA t$e salary pac*a%es are not 5esi%ne5 in a )ay t$at satisfy t$e)$ole or%aniCation7 so as a res(lt of t$is7 t$e employees $as create5

la6o(r (nions7 mana%ement (nions etc in or5er t$at t$e corporate level

accept t$eir proposals8 $ey $ave less association )it$ t$eir )or* an5

more to)ar5s anti or%aniCation activities8

GOVERNEMENT 8URD.E0

$e %overnment $as create5 6(n5les of $(r5les for PIA8 W$ere ever a ne)%overnment r(les7 t$ey promises to t$e people to provi5e @o6s7 in 5ifferent

sectors8 PIA 6ein% a %overnment or%aniCation7 %overnment provi5es @o6sto t$ose can5i5ates )$o are act(ally not eli%i6le for t$at post8 So7%overnment infl(ence on PIA s$o(l5 6e re5(ce5 in or5er to provi5e stron%footin% in transportation in5(stry8

Ot7er t7an t7ese "robles t7at are at ana#erial level t7ere arealso an3 "robles @7ic7 re?,ire sol,tions

.ac> o! coor4ination

$ere is lac* of coor5ination amon% employees8 $ey 5ont *no) asin%le t$in% 5one at $ea5 Office an5 )it$in t$e same office8 $ey

@(st perform t$e tas*s assi%ne5 to t$em 6y t$e !ea5 office )it$o(t*no)in% )$at is $appenin% in !O8 So t$ere is a nee5 to coor5ination6et)een an5 !O an5 Employees in ot$er offices8

.ac> o! ex"ertise

In PIA7 t$ey 5ont $ave epert employees in eac$ 5epartment7)$et$er it is !R7 &ar*etin% or Finance8 $e 5epartments are r(nnin%6y o(t5ate5 staff8 $e element of favo(titism is also present in t$iscate%ory8 Beca(se if yo( $ire t$e staff @(st on t$e 6asis ofrelations$ip rat$er t$an e5(cation it al)ays create pro6lem for anor%aniCation7 so smoot$ r(nnin% of an or%aniCation eperts areal)ays re(ire58

PA4ISAN INERNAIONAL AIRLINE Pa%e D?


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Poor Mana#eent

$e mana%ement of PIA is very poor8 $e $irin% of t$e fres$%ra5(ates is not present in PIA )$ic$ is t$e re(irement of ne) a%e8So7 t$e or%aniCation m(st $ave contacts )it$ 6(siness sc$ools7 so

t$at t$ey %et t$e (p5ates a6o(t comin% %ra5(ates an5 $ire t$emaccor5in% to t$eir re(irement8

Centrali 8R 4e"artent

In t$is era7 stron% 3 efficient !R is consi5ere5 t$e 6ac*6one of anyor%aniCation8 PIA $as a very )ea* !R 5epartment8 $ey @(st $avelimite5 !R officers )it$ limite5 a(t$orities8 $ey are 6(sy in t$eirro(tine )or*s an5 are not concerne5 more )it$ !R system8 So7!ea5 office s$o(l5 ta*e notice an5 create stron% !R 5epartment

.ac> o! C7ec> & 2alance

As t$ere is not coor5ination in t$e 5epartments7 so t$ere is noproper c$ec* 3 6alance on t$e employees7 staff7 an5 on overallf(nctions of t$e PIA8 So t$ere m(st 6e a person or a(t$ority t$at $ast$e ri%$t of c$ec* 3 6alance on t$e employees7 an5 )$o can listen

t$e pro6lems from t$e employees si5e 3 $avin% a(t$ority to solvet$em8

PA4ISAN INERNAIONAL AIRLINE Pa%e DD


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No 4ele#ation o! a,t7orit3

$ere is no 5ele%ation of a(t$ority in PIA8 It m(st 6e present for t$es(ccess of PIA8

Poor 0trate#ic 4ecisions

$e strate%ies are form(late5 at t$e !O an5 $ave centraliCe55ecision ma*in% process7 so )e 5i5nt fo(n5 any proper strate%ic5ecisions $appenin% in ot$er offices8 So7 t$ey m(st improve t$eirstrate%ic 5ecision 6y ma*in% 5ecentraliCe5 environment8

Governent inter!erence

As PIA is (n5er ?


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PIA s$o(l5 a5opt %oo5 mar*etin% policies so t$at it )ill 6rin% $i%$erprofit an5 maim(m (tiliCation of its availa6le reso(rces7 B(sinesssector s$o(l5 6e attracte5 to operate at f(ll potential8

Ol4 A#e4 1leets

PIA s$o(l5 (p%ra5e its fleet as its ca(sin% t$e airline $i%$eroperatin% cost an5 PIA is inc(rrin% loss 8PIA s$o(l5 p(rc$ase ne)Airplane )it$ t)in en%ines t$ese )ill re5(ce t$e operatin% cost ofPIA8

Re!,n4 "rocess is not satis!actor3

Airline s$o(l5 foc(s on t$e c(stomers satisfaction7 ref(n5 processs$o(l5 6e (ic* so t$at c(stomer remains loyal to 6ran58

8i#7est e"lo3ee ratio "er air"lane

PIA s$o(l5 not in5(ct ne) employees till t$e time t$ey are nee5e5

on t$e 6asis of my personal o6servation at Ra)alpin5i station I $ave

seen t$at a tas* )$ic$ can 6e performe5 6y person PIA $a5 .

employees for t$at8

Co"laints o! e"lo3ees are not "ro"erl3 !acilitate4

PIA s$o(l5 facilitate employees complaints so t$at )$atever t$e

complain is7 it m(st 6e facilitate5 so t$at t$e pro6lems occ(rrin% to

employees 6e resolve5 soon8

IMP.EMENTATION P.AN %''K %')5



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CONC.U0IONPA4ISAN INERNAIONAL AIRLINE Pa%e ,


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It $as 6een concl(5e5 t$at PIA is in 6i% crisis mainly 5(e to t$e varyin%

str(ct(res7 economic pro6lems an5 lea5ers$ip styles8 As mentione5 on

vario(s acco(nts7 PIA $as a centraliCe5 str(ct(re t$at $as ca(se5 $i%$er

conflicts an5 poor mana%ement of employees as 5ecisions are ma5e 6y

t$e top level mana%ement )it$o(t involvin% t$e employees8 In a55ition7

t$is lea5s to compleities in employee tas*s as it ta*es more time to reac$

t$e information from top to 6ottom8 "(e to t$is 6(rea(cratic nat(re of PIA7

inefficiencies $ave crept in an5 morale of t$e employees $as pl(mmete5

over t$e years8

"ele%ation of tas*s is minimal at PIA8 $e c(rrent stat(s of employees is

less control an5 a(t$ority over 5ifferent tas*s apart from t$eir o)n

assi%ne5 tas*s7 so employees feel 5istant as far as ot$er iss(es an5

pro6lems of t$e 5epartments are concerne58

PIA $ave centraliCe5 $irin% processes8 !o)ever7 PIA emp$asiCes on

eperience 6(t as it is (n5er ?


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feel rel(ctant to voice t$eir concerns in a meetin% ami5 ot$ers an5

complaints in t$e s(%%estion 6oes ta*e time to reac$ 6osses an5

t$erefore7 action is postpone58

It $as 6een o6serve5 t$at Pa*istan International Airlines PIA fears

c$an%e8 $ey fear t$at t$e system )ill 6ecome (nsta6le7 t$eir sec(rity )ill

6e lost7 an5 t$ey )ill not (n5erstan5 t$e ne) process7 t$erefore7 )ill not

*no) $o) to respon5 to t$e ne) sit(ations8 PIA t(rne5 its attention on

employees )$en it face5 competition8 Ot$er)ise7 it )as concentratin%

more on epansion an5 profita6ility: an o(tcome oriente5 approac$8

At t$e en5 of t$e concl(sion7 )e $ave some recommen5ations for PIA

)$ic$ )e $ope )ill 6e implemente5 in t$e near f(t(re8 We $ave incl(5e5

(estionnaire analysis )$ic$ s$o)s t$e overall performance an5

rep(tation of PIA8

!o doubt PI, is still a strong +rand name in Pakistan but due to

some economic and other %ariable issues PI is facing crisis

"hich is making PI do"n +ut "e all ho&e that in the ne-t fe"

years, PI "ill sho" u& "ith a &ositi%e change

RECOMMENDATION0



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PA-I0TAN INTERNATIONA. AIR.INE0

DECENTRA.IATION

PIA s$o(l5 5ecentraliCe its str(ct(re t$at )o(l5 lea5 to t$e easy

mana%ement7 increase5 motivation7 easy access to information an5

resol(tion of t$e conflicts as t$ey )o(l5 6e resolve5 6y t$e

imme5iate mana%er time span )o(l5 t$en re5(ce58 Since

employees iss(es re%ar5in% t$eir 6e$avio(r )o(l5 lessen7 so it

)o(l5 (ltimately lea5 to more satisfie5 employees t$at )o(l5 res(lt

in en$ance5 pro5(ctivity of t$e or%aniCation8

EMP.O/EE EMPO6ERMENT

PIA s$o(l5 ma*e efforts to)ar5s empo)erin% t$e employees t$at is

%oin% to lea5 to more employee participation in t$e 5ecision ma*in%

process an5 also res(lt in more employee satisfaction an5 en$ance5motivation8 Apart from t$is7 employees )o(l5 feel more

in5epen5ent to 5isc(ss t$e iss(es eplicitly )it$o(t $esitation8 $is

)o(l5 also en$ance team )or* process at PIA as (ality team an5

cross2f(nctional teams8 $e employees )ill )or* )it$ more

commitment an5 5e5ication an5 every employee )o(l5 )or* to

$isJ$er f(llest 5(e to increase5 motivation8 !o)ever7 )it$

empo)erment comes acco(nta6ility7 so it is s(%%este5 t$at )$ilet$ey empo)er t$eir employees7 t$ere s$o(l5 also 6e a 9controlle5

c$ec* on t$em to ens(re t$e correct (sa%e of po)er 5ele%ate5 to

every employees )it$in t$eir circ(mscri6e5 limits8



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OVER8EAD CO0T0

PIA s$o(l5 also re5(ce its over$ea5 costs t$at is it s$o(l5 mana%e

its reso(rces: la6o(r more effectively7 so t$at )it$ less inp(t7 more

o(tp(t can 6e ac$ieve5 an5 t$e save5 reso(rces can 6e (tiliCe5 in

ot$er areas s(c$ as intro5(cin% more trainin% co(rses for t$e

employees so t$at t$e (ality of t$e )or*force co(l5 6e increase58

!irin% t$e services of epertise can improve t$e efficiency of t$eir

services7 so 6y savin% t$e over$ea5 costs7 t$ey can (tiliCe t$at

money for t$e epertise services8 So 6y analyCin% t$e vario(s

se%ments of t$e or%aniCation an5 ma*in% t$e ri%$t corrections7 it

can s(6stantially improve t$e stan5ar5s of Or%aniCational 6e$avio(r8

T6O6A/ COMMUNICATION

$e s(%%estions of t$e employees can prove to 6e very effective in

improvin% t$e operations as t$ey are t$e ones )$o mana%e t$em8

$erefore7 a top25o)n approac$ s$o(l5 6e replace5 )it$ t)o2)ay

comm(nications8 In t$is )ay7 t$e employees )o(l5 feel motivate5

an5 val(e5 as t$ey )o(l5 6e incl(5e5 in 5ecision2ma*in%8



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TOTA. UA.IT/ MANAGEMENT

otal (ality mana%ement s$o(l5 6e catere5 to )it$in t$e )or*

%ro(ps an5 implementation of vario(s s*ill en$ancement pro%rams

for (ality an5 pro5(ctivity improvements s(c$ as Si Si%ma s$o(l5

6e provi5e5 to its eec(tive employees8

0TRATEGIC 2U0INE00 UNIT

PIA s$o(l5 ma*e its 5ifferent 5epartments into Strate%ic B(siness

Unit8 Every SBU s$o(l5 $ave a 5efine5 6(siness strate%y an5 a

mana%er )it$ sales an5 profit responsi6ility8 As PIA is a lar%e

or%aniCation7 so it m(st 6e convert into SBUs8

"ifferent factors s$o(l5 6e 5etermine5 for t$e s(ccess of SBUs

)$ic$ as follo)s:

$e 5e%ree of a(tonomy %iven to eac$ SBU mana%er

$e 5e%ree to )$ic$ an SBU s$ares f(nctional pro%rams an5

facilities )it$ ot$er SBUs

$e manner in )$ic$ t$e corporation eval(ates an5 re)ar5s t$e

performance of its SBU mana%ers



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UE0TIONNAIRE

ANA./0I0



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Pakistan International Airline Questionnaire

P.EA0E 08ARE /OUR E:PERIENCE( VIE60 AND COMMENT0

6IT8 U0

) 8o@ o!ten 4o 3o, ta>e airline travelLess t$an , mont$ - mont$ to . mont$

, mont$ to - mont$ . mont$ to / mont$

Or VVVVVVVVVVVVVVVVVVVVVVVVVV8

2. Which airline you always/usually select to travel (domestic)?Pa*istan International Airline 9PIA

Aero Asia

S$a$een Air International

Or Any Ot$er VVVVVVVVVVVVVVVVVVVVVVVVVVV8

F Is t7ere an3 "artic,lar reason @73 3o, ,s,all3 c7oose t7atAirline

Service Price Ot$er7 please specify 6elo)

8o@ 4i4 t7e selecte4 airline "rice co"are to 3o,r ex"ectations

, Ecellent - Hery Goo5 . Goo5 / Fair 0

Poor 1 Hery Poor



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5 How did the selected airline Value for Price Paid compare to your expectations? , - . / 0

1

* 8o@ @o,l4 3o, rate t7e overall val,e o! t7e selecte4 airline , - . / 0

1

H 67at are #oo4 as"ects o! selecte4 airline t7at attract 3o,

67at are soe as"ects o! selecte4 airline t7at can be i"rove4

K Do 3o, t7in> t7at all t7e above ?,alities exist in PIA( 4i4 3o,a#ree I! no( so "lease s"eci!3 it belo@

)' 8o@ 4o 3o, consi4er t7e "rice o! PIA Hery Epensive Epensive Avera%e Lo)

Hery lo)

PA4ISAN INERNAIONAL AIRLINE Pa%e ,,


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)) 67en I 7ave a "roble @it7 travel arran#eents( t7e airlines7o@s sincere interest in solvin# it 'es No Never $a5 eperience

li*e t$is8

)% 8o@ @ill 3o, co"are PIA @it7 4i!!erent airlines in t7e!ollo@in# services

Please fill t$e ta6le accor5in% to , for Ecellent7 - for Hery Goo57 . for

Goo57 / for Fair7 0 for Poor an5 1 for Hery Poor8

Attrib,tes

PIA

Aero Asia

S$a$een Air

Destinations

P,nct,alit3

,alit3 o! 1oo4

8os"italit39C,stoer 0ervice

Econoical

PA4ISAN INERNAIONAL AIRLINE Pa%e ,,,


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Tec7nolo#ical A4vanceents

0ervices

Cor"orate Ia#e

0a!et3 o! l,##a#e

)F 67at are soe i"ortant strate#ies t7at 3o, @o,l4 li>e to

recoen4

COMMENT0

T7an> /o, 0o M,c7 !or 1illin# ,estionnaire

Name: VVVVVVVVVVVVVVVVVVVVVVVVVV A%e: VVVVVVVVVVV Se: &ale

Female

Occ(pation: VVVVVVVVVVVVVVVVVVVVVVVVVV ;(alification: VVVVVVVVVVVVVVVVV

PA4ISAN INERNAIONAL AIRLINE Pa%e ,,-


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PA4ISAN INERNAIONAL AIRLINE Pa%e ,,.


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RE0EARC8 ANA./0I0

After con5(ctin% researc$ from 5ifferent &BA st(5ents of o(r University7 t$efollo)in% res(lts $ave fo(n5 )$ic$ follo)s as 6ello):

Selection of Airline

Accor5in% to researc$7 1


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/

,alit3 o! 1oo4

0

1

0

8os"italit39C,stoer 0ervice

1

0

0

Econoical

0

0

0

Tec7nolo#ical A4vanceents

0

0

0

0ervices

0

0

/

Cor"orate Ia#e

1

.

/

Total Points

PA4ISAN INERNAIONAL AIRLINE Pa%e ,,0


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F

'

F*

PA4ISAN INERNAIONAL AIRLINE Pa%e ,,1


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PA4ISAN INERNAIONAL AIRLINE Pa%e ,,=


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pia policy project

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