PIA Project

Pakistan International Airline

PRESENTERS TO,

MR. G. AHMED RANA
Section “A”

FAHAD IQBAL L1F07MBAM2175
ZOHAIB BASHIR L1F07MBAM0085
YASMEEN SADDIQ L1F07MBAM2226
FATIMA AWAN L1F07MBAM0071
AFZIA FAROOQ L1F07MBAM2256
EHSAN AKHTAR L1F07MBAM0115
AYESHA RAFIQUE L1F07MBAM0062


MR. Amir
MARKETING DEPARTMENT Manager Marketing &
Promotion

FINANCE DEPARTMENT MR. Atif
Accounts Officer

MR. Adnan
HUMAN RESOURCE DEPARTMENT Officer HR

Special Thanks
Mr. Shiraz Aslam

 Birth of a Nation, Birth of an Airline

 Orient Airways takes to the skies

 A New National Flag Carrier for Pakistan

 PIA’s First International service


“PIA’s vision is to be a World class
airline, meeting customer
expectations through excellent
services, on-time performance,
innovative products and absolute
safety”


Employee team will contribute towards
making PIA a global airline of choice
through:

 Offering quality customer service & innovative
product.
 Using state-of-the-Art Technologies
 Ensuring cost effective measures in procurement
and operations
 Developing safety culture


 STEPEL Analysis

 Porter’s Five Forces Model

 BCG Matrix For PIA

 SWOT Analysis

 EFE Matrix

 Competitive Profile Matrix


 Social Factors
 Ethnic traffic is present on PIA
 Language barriers are not present
 Act of patriotism

 Technological Factors
 Supply chain is not present
 Logistics issues are there

 Economics Factors
 Increase fuel prices increase tickets prices
 Inflations creates problems

 Political Factors
 Political instability
 Political pressure

 Environmental Factors
 Fuel emission
 Green fuel

 Legal Factors
 Liquor can’t be served
 Firing of employee (court issues)

Threat of new entrant high
Bargaining power of buyer high
Bargaining power of supplier low
Substitutes products high
Rivalry among existing firms high


Business
growth
rate PIA


SWOT ANALYSIS
Strength Weakness
Point to point frequency (Lahore to London) Less international traffic
High quality services Liquor is not served so less traffic
People oriented Organization (No language Weak rewards & appraisal
problem) Less effort in the field of marketing
Govt. sponsored organization High Fares
Perfect timings Over staffing (over burdened employees)
Abroad Pakistanis prefer PIA (patriotism) Lack of professionalism
Healthy internal environment Low salary of engineers

Opportunities Threats
Traffic ethnic All domestic and international carrier
Better recruitment policy Fluctuating petrol prices
Big markets available that are un served Government changing
Speed ex, courier service domestically can be Barriers to investment for abroad due to
internationally country conditions
Low cost carriers Time taken by embassy to accept visa
Better training programs Terrorism
Have an opportunity to grow and expand Busy flight schedule
throughout the country Open sky policy
High amount of loan

EFE MATRIX
Weighted
Key External Factors Weights Rating
Score

Opportunities
1. Traffic ethnic 0.13 4 0.52
1. Big markets available that are un served 0.09 3 0.27
1. Speed ex, courier service domestically can be internationally 0.05 2 0.10
1. Low cost carriers 0.04 2 0.08
1. Have an opportunity to grow and expand throughout the country 0.09 4 0.36
Threats
1. All domestic and international carrier 0.08 4 0.32
1. Fluctuating petrol prices 0.03 3 0.09
1. Government changing 0.05 2 0.10
1. Barriers to investment for abroad due to country conditions 0.07 2 0.14
1. Time taken by embassy to accept visa 0.08 2 0.16
1. Restricted vise system 0.07 2 0.14
1. Visa rejection cases 0.10 3 0.30
1. Economic slump 0.12 3 0.36
Total Pakistan International Airline 1.00 2.80

Competitive Profile Matrix

PIA Aero Asia Shaheen

Critical Success Factors Weights Rating Score Rating Score Rating Score
Service Quality 0.13 3 0.39 1 0.13 2 0.26
Market Share 0.15 3 0.45 1 0.15 1 0.15
Advertisement 0.07 2 0.14 1 0.07 1 0.07

Customer Expectation 0.20 2 0.40 2 0.40 1 0.20

Safety 0.15 3 0.45 3 0.45 2 0.30
Reliability 0.10 3 0.30 2 0.20 1 0.10
Social Responsibility 0.09 3 0.27 2 0.18 2 0.18
Patriotism 0.10 4 0.40 3 0.30 3 0.30

Total 1.00
2.80 1.88 1.56

 CUSTOMER EXPECTATION
 CONVENIENCE, CARE, AFFORDABILITY
 SERVICES
 Personalized, Courteous, Passionate
 INNOVATION
 New Ideas, Products, Value Added Services
 COHESIVENESS
 Respect for Individuals, Team work & Effective Communication
 INTEGRITY
 Business Ethics, Accountability & Transparency
 RELIABILITY
 Loyalty & Consistence
 SAFETY
 Passengers, Employees, Environment
 SOCIAL RESPONSIBILITY
 Welfare, Health & Education


 Corporate level strategy
 Business Unit Level Strategy
 Functional Level Strategy


 Human Resource Management
 Proper recruitment process
 Training & development
 Specialized people are hired
 Head office in Karachi
 Proper organization structure

 Administration
 Decision making
 Motivation and incentives


 Demographic Segmentation
 Income segmentation
 Occupation segmentation
 Geographic Segmentation
 Domestic & International
 Behavioural Segmentation
 occasional segmentation
 Psychographic Segmentation
 Social Class


 PIA is targeting

 INCOME LEVEL
 High class
 Middle class

 ALL AGE GROUP


 Product
 Price
 Promotion
 Placement
 People
 Process
 Physical evidence


80
PIA Other 60
40
20
Domestic 67% 33% 0 PIA
Other

International 30% 70%


 POINT TO POINT FRQUENCY
They offer direct flights like Lahore
to London etc.


 Procurement
 Commercial Supplies
 IT Products & Services
 Engineering Supplies
 R&D


 Marketing control
 Quality control
 Hr control
 Finance control


 Main Problems According To Management
 Main Problems According To Our Analysis
 Sub Problems


 Political inference
 Union inference
 Bureaucratic structure:
 Government hurdles


 Lack of coordination
 Lack of expertise
 Poor Management
 Centralized culture
 Out dated technology
 Weak HR department
 Lack of Check & Balance
 No delegation of authority
 Poor Strategic decisions
 Non profitable routes

 Sometimes, agency sale agents don’t realize airport taxes
which make complication in realization of revenue
 At some areas, jobs are not clearly defined which effect
efficiency and working relation of employees
 Rate of motivational campaigns for employees very low
 For refund, customers have to come to the office which create
problem for them
 Over booking and mishandling also creates trouble
 Misappropriation of work is one of the main problems like
engineer work as accountant. This is because of political
inference
 Delay in computer up gradation also effect output.


 Coordination of department and employees
 Strong Management
 De-Centralized Culture
 Up to Dated Technology
 strong HR Department
 proper of Check & Balance
 Delegation Of Authority
 Effective Strategic Decisions
 Minimize Government Interference
 Merit jobs
 Profitable Routes
 strong Marketing Strategy
 Up to date Aged Fleets
 Satisfactory Refund Process
 Required Employee Ratio Per Airplane
 Complaints Of Employees should Properly Facilitated


PIA is no doubt in crises. There is need for a plan that help
them out to overcome problems that PIA is facing in
financial, marketing , human resource, quality
control, research and development etc


 Retrenchment
 Downsizing
 Product Development
 Decentralization


 Privatization
 Bring Revenue
 Strengthen HR
 Performance appraisal
 Job description
 Job specification
 Job designs
 Job analysis
 New job opportunities
 Online job offering
 Marketing Development


 Financially Balanced
 Promotional Plans
 Agency Relationship

 Media Planning

 Total quality management

 Research & development


No doubt PIA is still a strong Brand name in Pakistan
but due to some economic and other variable issues
PIA is facing crisis which is making PIA down. But we
all hope that in the next few years, PIA will show up
with a positive change


PIA Project

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