B.p project final

Final Project

Business Policy and Strategy

Section: D

Submitted By:

1: Arslan Tariq L1F10BBAM2051

2: Muhammad Umair L1F10BBAM0333

3: Danish L1F10BBAM0250

4: Waqas saeed L1F10BBAM0332

Submitted to: Mr. MohsinRauf

Date: 17/12/2013

Table of ContentsSWOT MATRIX:......................................................................................................................................3

Strengths...........................................................................................................................................3

Opportunities:...................................................................................................................................3

Weaknesses:......................................................................................................................................3

Threats:..............................................................................................................................................4

SO (Strengths, opportunities) Strategies:..........................................................................................4

WO (Weaknesses, Opportunities) Strategies:....................................................................................4

ST (Strengths, Threats) Strategies:.....................................................................................................4

WT (Weakness, threats) Strategies:...................................................................................................5

Long term objectives:............................................................................................................................5

The Internal Factor Evaluation (IFE) Matrix:..........................................................................................6

CPM MATRIX.........................................................................................................................................8

EFE MATRIX...........................................................................................................................................9

BCG Matrix..........................................................................................................................................11

Space Matrix........................................................................................................................................12

IE Matrix..............................................................................................................................................13

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ACKNOWLEGDEMENTFirst of all thanks to Allah Almighty that He gave us courage and helped us in every step of our lives especially in making this Business Policy and Strategy project.

We would also like to thanks our course instructor Mr. Moshin Rauf for improving our Business Policy and Strategy skills by clarifying our concepts and also for providing us maximum help regarding this project.

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Introduction

The Vision Group began with a small step in the mid-2002, when Park View brand introduced in real estate market as a developer in Lahore. Since then, with hard work, determination, and most importantly, building of Trust and Goodwill, the Park View brand grew to become a major player amongst other national level real estate developers.

Vision Group is now running diversified businesses like Education (The National School) & Builders (Park View) at national level and moreover actively participating different welfare projects exclusively at Vision Group platform.

The Company is managed by a dedicated team of highly trained and experienced professionals and well-reputed sponsors. The management team carries vast experience of the project management, land development and construction. The management enjoys an excellent market reputation for timely completion of projects. It has the requisite experience to operate efficiently and to the satisfaction of its clients. Mr. Abdul Aleem Khan is the Chairman of Vision Group.

Mr. Khan took over Park View Housing Society in 1999. Park View under his stewardship became a symbol of upscale living. He single handedly turned around the Society into a project par excellence that has the distinction of developing world class infrastructure for its inhabitants. Park View stretched over 7,000 Kanal and was finally merged with Defence Housing Authority Lahore in 2007. This was the largest real estate merger in Pakistan. Park View Society had a balance sheet footing of over PKR 5 billion. And during the merger process its assets were valued at over PKR 13 billion.

VisionFollowing is the given Vision statement and I am partially agree with the statement but I found a missing component that where they want to see themselves in the future.

“To provide AIMED education to our children by bringing out the best in them, mentally, intellectually, spiritually and physically by developing their attitudes, abilities and skills along with the core values required to meet the challenges at the National and international levels.”

Recommended Statement“Our aim is to become highly recognized group of schools and to provide AIMED education to our children by bringing out the best in them, mentally, intellectually, spiritually and physically by developing their attitudes, abilities and skills along with the core values required to meet the challenges at the National and international levels.”

MissionTo groom our young generation and transform them into men and women of character by promoting their maximum potential to become intellectually adept, thoughtful and ethical contributors to our society, by LEARNING WITH A PURPOSE, to meet the challenges of adult life in the Pakistan's Civil Services, Defense Services and other Services based on their potentials, aptitudes and interests to serve the Nation, as a respectable and responsible citizens.

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PEST Analysis of Educational sector of Pakistan The National School:PEST Analysis is Political, Economic, Social and Technological analysis of a certain industry which can be positive or negative to the business. Vision Group is competing in the Educational sector; Vision Group launched “The National School Aimed Education” in the major cities of Punjab in 2012. It is working and expanding on the basis of Franchise system and providing full support to its franchises in order to reduce the risk of failure of a franchise. PEST Analysis of National School is given below

Political:1: Political instability and Law and order situation in Pakistan.

2: Public Schools are not well managed and organized by the Government and Government is failed to maintain the standard of the quality education in public schools.

3: Government Policy of free education till primary school encouraging the students to get educated.

4: Requirement of Self-financing and managing.

Economic:1: Allocation of funds is very low, it is about 1.5% or 2% of the total GDP.

2: Ability of Parents to raise funds for the education of their children.

3: High interest rates on loans.

4: inflation rates in Pakistan.

5: Requirement of Personal Power Generator in order to meet the power crisis in Pakistan.

Social:1: Gender discrimination in Pakistan.

2: Increase in birth rate, reflecting national trends.

3: Changes in qualification of teachers expected changes.

4: Parental Preferences: an increase in ‘parent power' has allowed parents more freedom of choice over their child's school.

5: Restriction on Girls to get higher education.

Technological:1: Changes to standards/ equipment required.

2: Maintaining the IT system in Schools.

3: Moving trend from paper based books and information to e-books and information.

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Competition:Competition in educational sector is very high, there are many competitors existing in the market but major are Allied Schools, The City School, The Educators and Lahore Grammar School. The National School has to maintain the standard of the education and the quality In order to compete in this market.

List of Opportunities and Threats:

Opportunities ThreatsHuge market to target Existing CompetitorsTrend of parents to provide their child with best education

Power Crisis

Availability of experienced teachers in market Law and Order situation of countryChanges to standards or equipment required while teaching

Gender Discrimination

Awareness of Information technology Providing high compensation to get experienced employees

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Porter’s Five Forces Model:

Porter’s Five Forces Model Analysis

Threat of new entrants High ( Everyone can open new school)Threat of substitute products Low ( There is no substitution to Quality

Education provided in schools)Bargaining power of buyers Mod-High ( Customers have more options to

choose from)Bargaining power of suppliers Low-Mod ( Teachers are easily available in the

market)Rivalry among competitors High ( Everyone is providing high quality

education and trying to increase their market share)

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EFE MATRIXThe National School

Opportunities

Weight Rating Weighted Score

Huge Market To target 0.05 3 0.15Trend of parents to provide their child with best education

0.06 3 0.18

Availability of experienced teachers in market

0.08 4 0.32

Changes to standards or equipment required while teaching

0.08 3 0.24

Awareness of information technology

0.07 2 0.14

Increase in birth rate 27.12 ( 2013)

0.09 1 0.09

Demand for high education

0.03 2 0.06

ThreatsExisting Competitors 0.12 4 0.48

Power Crisis 0.06 2 0.12

Law and Order Situation of country

0.06 3 0.18

Gender Discrimination

0.04 3 0.12

Providing high compensation to get experienced employees

0.08 2 0.16

Tax increase every year

0.04 3 0.12

Online degree 0.07 2 0.14

Total 1.00 2.5

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COMPANY SUCCESS FACTORS:

Following are the company’s success factors:

Advertisement Price Competitions Management Number of Branches Customer loyalty Market Share Brand Image Popularity Security and Safety Financial position

By using these success factors we can make Competitive profile matrix that will identify company’s major competitors and its particular strengths and weaknesses in relation to a sample firm’s strategic position.

The Competitive Profile Matrix (CPM):The National School The City

School The educators

Critical Success Factors

Weight Rating Score Rating Score Rating Score

Advertising 0.08 2 0.16 3 0.24 2 0.16Price Competitiveness

0.10 3 0.3 2 0.2 4 0.4

Management 0.05 3 0.15 2 0.1 3 0.15Financial position

0.14 3 0.42 3 0.42 2 0.28

Customer loyalty

0.10 2 0.2 4 0.4 1 0.1

Market Share 0.10 2 0.2 3 0.3 2 0.2Brand Image 0.10 3 0.3 2 0.2 1 0.1Popularity 0.11 3

0.33 30.33 1 0.11

Security and Safety

0.15 4 0.6 4 0.6 2 0.3

Number of Branches

0.07 3 0.21 4 0.28 1 0.07

Total 1 2.87 3.07 1.87

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Internal Assessment of the organizationAfter the study of the organizations’ departments we are able to construct the strengths and weaknesses within the organization. These departments includes, management, marketing, finance, HR, student counseling, staff and accounts.

Strengths1. Good relations with Government and officials.2. Availability of high finances and can raise its capital.3. Good and specialized management team.4. Highly educated faculty.5. Availability of teaching equipment.6. Availability of IT labs and professionals.7. First Aid and firefighting training to teachers.8. Services for students’ health.9. Availability of Library at premises.10. School Newsletters and Magazines.11. Facilities for developing students’ physical and mental abilities.12. Special course selection for PMS/CSS exams and trainings for students at school.13. Personal, Social and Emotional Development of students.14. Availability of O/A level study facilities for students.15. An extremely competitive salary and benefits package and work atmosphere with ample

training and career growth opportunities for teachers.16. Franchising facility and high growth potential.17. Employee morale is high.18. Urdu and English speaking practice for students.

Weaknesses:1. Low advertisement, promotion and publicity efforts.2. Do not conducting Research and development at proper level and spending very less

budget on it.3. Paying high compensation to management committee that includes Former Vice

Chancellor of University of The Punjab in order to avoid turn over.4. Company is not involving all levels of management in decision making.5. Authority is all in the hands of upper level management.6. Low marketing budget.7. Communication is not effective at management levels.

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The Internal Factor Evaluation (IFE) Matrix:Key Internal Factors

Weight Rating Weighted

Strengths1. Good relations with Government and officials.

0.038 3 0.114

2. Availability of high finances and can raise its capital.

0.05 4 0.2

3. Good and specialized management team.

0.0076 3 0.022

4. Highly educated faculty.

0.046 3 0.138

5. Availability of teaching equipment.

0.023 3 0.069

6. Availability of IT labs and professionals.

0.015 4 0.06

7. First Aid and firefighting training to teachers.

0.030 3 0.09

8. Services for students’ health.

0.061 4 0.244

9. Availability of Library at premises.

0.069 4 0.276

10. School Newsletters and Magazines.

0.0076 2 0.015

11. Facilities for developing students’ physical and mental abilities.

0.046 4 0.184

12. Special course selection for PMS/CSS exams and trainings for students at school.

0.015 3 0.045

13. Personal, Social and Emotional Development of students.

0.061 3 0.183

14. Availability of O/A level study facilities for students.

0.046 3 0.138

15. An extremely competitive salary and benefits package and work atmosphere with ample training and

0.053 3 0.159

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career growth opportunities for teachers.16. Franchising facility and high growth potential.

0.0069 2 0.0138

17. Employee morale is high.

0.046 3 0.138

18. Urdu and English speaking practice for students.

0.053 4 0.212

Weaknesses1. Low advertisement, promotion and publicity efforts.

0.061 3 0.183

2. Do not conducting Research and development at proper level and spending very less budget on it.

0.0461 2 0.0922

3. Paying high compensation to management committee that includes Former Vice Chancellor of University of The Punjab in order to avoid turn over.

0.030 3 0.09

4. Company is not involving all levels of management in decision making.

0.03 2 0.06

5. Authority is all in the hands of upper level management.

0.061 2 0.122

6. Low marketing budget.

0.030 3 0.090

7. Communication is not effective at management levels.

0.046 2 0.092

Total 1 3.152

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Vision Group Long term objectives: Opening the franchises of National School in every biggest city of Punjab and

every sector of Lahore. Increasing the market share Getting best results of students in all exams including O/A Level. Proving best physical and mental facilities to students. Increasing employees’ commitment to the organization. To be a well-known school of the Punjab. Increasing the number of franchises purchased by public. Providing high services to franchise owners.

SWOT MATRIX:Vision Group SWOT Analysis is one of the effective analytical tools to evaluate a situation. The situation may be strategic related or capabilities related. SWOT Analysis is often used along with Strategic planning and it forms one of the key critical success factors in a Strategic Planning Process.

Vision Group SWOT can be used in conjunction with other tools for strategic planning, such as the Porter's Five-Force analysis or the Balanced Scorecard framework. SWOT model analyzes factors that are internal to your business and also factors that affect your company from outside.

Strengths19. Good relations with Government and officials.20. Availability of high finances and can raise its capital.21. Good and specialized management team.22. Highly educated faculty.23. Availability of teaching equipment.24. Availability of IT labs and professionals.25. First Aid and firefighting training to teachers.26. Services for students’ health.27. Availability of Library at premises.28. School Newsletters and Magazines.29. Facilities for developing students’ physical and mental abilities.30. Special course selection for PMS/CSS exams and trainings for students at school.31. Personal, Social and Emotional Development of students.32. Availability of O/A level study facilities for students.33. An extremely competitive salary and benefits package and work atmosphere with ample

training and career growth opportunities for teachers.34. Franchising facility and high growth potential.35. Employee morale is high.36. Urdu and English speaking practice for students.

Opportunities:1. Huge market to target.

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2. Trend of parents to provide their child with best education.3. Availability of experienced teachers and other professionals in market.4. Changes to standards or equipment required while teaching.5. Awareness of Information technology.6. Changing trends of doing O/A Levels instead of Matric.7. Students’ preference of sports and physical activities with their studies to keep the

body and mind strong.8. More people interested in PMS/CSS exams.9. English speaking trend in society.

Weaknesses:8. Low advertisement, promotion and publicity efforts.9. Do not conducting Research and development at proper level and spending very less

budget on it.10. Paying high compensation to management committee that includes Former Vice

Chancellor of University of The Punjab in order to avoid turn over.11. Company is not involving all levels of management in decision making.12. Authority is all in the hands of upper level management.13. Low marketing budget.14. Communication is not effective at management levels.

Threats:1. Existing Competitors 2. Power Crisis3. Law and Order situation of country4. Gender Discrimination5. Competitors can hire the existing management team of school by providing

higher compensation.6. Political conditions of Pakistan.

SO (Strengths, opportunities) Strategies:O1, s2, s3, s4, s16: the organization should use its finances and other resources to avail the market share by expanding their businesses and by opening new franchises.

O2, s5, s6, s9, s12, s14, s18: Organization should maintain the standards of aimed education in order to gain the maximum market share.

O3, s3, s15: Organization should get the best teachers available in market by using its highly specialized management team and by its compensation rates.

O9, s18, s4: Organization should give high class English speaking training to students in order to attract the upper class market.

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WO (Weaknesses, Opportunities) Strategies:W1, O3: organization should use the professionals available in the market to advertise and promote their schools in the market.

W2, O3: There are highly specialized R & D based companies in market that do the research for other companies, company can hire these services and can conduct the R & D.

ST (Strengths, Threats) Strategies:S2, s3, s4, s5, s6, s9, s11, s13, s12, s18, T1: provide best quality services and education and get a competitive advantage over the competitors.

T2, S2: Invest in power resources for schools i.e. buy generators

T3, S2: Invest in security of schools

T5, s17, s15, s2: increase the employees’ commitment to organization and provide them best compensation that they can get the best ever.

T6, s1: maintain the good relations with Government and with different officials.

WT (Weakness, threats) Strategies:T1, w1, w2, w3: get acquisitions or recognitions with different universities and colleges.

T1, t3, w7, w2, w4: Liquidate the business unit.

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Space Matrix:Following factors we are choose to manipulate the space matrix of Vision Groups and on basis of these factors space matrix of Vision Group can complete.

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Boston Consulting Group BCG MatrixBoston Consulting Matrix is designed specially to enhance a multidivisional firm efforts to formulate the strategies. BCG allows to Vision Group company to manage its portfolio of business by examining the relative market share and industry growth.

Franchises Revenues(In Millions)

Percent Revenues

Profits(In millions)

Percent Profits

RMS Industry Growth Rate %

Gulberg 3.5 33% 2.0 31% 44% +40Johar Town 2.5 24% 1.5 23% 66% +60Gulshan Ravi

4.5 43% 3.0 46% 75% +55

Total 10.5 100% 6.5 100% - -

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THE INTERNAL-EXTERNAL IE Matrix:It helps to position an organization’s various divisions in a nine cell display. By using this matrix we can plot organization’s divisions in a schematic diagram.

Franchises Revenues %Revenues Profit %profits EFE IFE1 3.5 Millions 33% 2.0 Millions 31% 2.5 3.12 2.5 Millions 24% 1.5 Millions 23% 2.5 3.13 4.5 Millions 43% 3.0(Millions) 46% 2.5 3.1

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Total 10.5 Millions 100% 6.5 Millions 100% - -

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Grand Strategy Matrix:

1: Market Development

2: Market Penetration

3: Product Development

4: Horizontal Integration

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WEAK COMPETITIVEPOSITION

Strong COMPETITIVEPOSITION

Rapid Market Growth

Slow Market Growth

QUANTITATIVE STRATEGIC PLANNING MATRIXQSPM is only technique in the text designed to determine the relative attractiveness of possible alternative strategic action because QSPM requires good intuitive judgment.

QSPM Matrix:

Market Penetration Market Development

Opportunities

Weight

AS TAS AS TAS

Huge Market To target

0.05 4 0.2 4 0.2

Trend of parents to provide their child with best education

0.06 3 0.18 4 0.24

Availability of experienced teachers in market

0.08 3 0.24 4 0.32

Changes to standards or equipment required while teaching

0.08 - - - -

Awareness of information technology

0.07 2 0.14 3 0.21

Increase in birth rate 27.12 ( 2013)

0.09 3 0.27 3 0.27

Demand for high education

0.03 3 0.09 3 0.09

ThreatsExisting Competitors 0.12 3 0.36 2 0.24

Power Crisis 0.06 2 0.12 2 0.12

Law and Order Situation of country

0.06 2 0.12 2 0.12

Gender Discrimination

0.04 2 0.08 3 0.12

Providing high compensation to get experienced employees

0.08 - - - -

Tax increase every year

0.04 2 0.08 2 0.08

Online degree 0.07 - - - -

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Total 1.00

Strengths1. Good relations with Government and officials.

0.038 3 0.114 3 0.114

2. Availability of high finances and can raise its capital.

0.05 4 0.20 4 0.2

3. Good and specialized management team.

0.0076 4 0.03 4 0.0304

4. Highly educated faculty.

0.046 3 0.14 3 0.138

5. Availability of teaching equipment.

0.023 - - - -

6. Availability of IT labs and professionals.

0.015 - - - -

7. First Aid and firefighting training to teachers.

0.030 - - -

8. Services for students’ health.

0.061 - - -

9. Availability of Library at premises.

0.069 - - -

10. School Newsletters and Magazines.

0.0076 - - -

11. Facilities for developing students’ physical and mental abilities.

0.046 3 0.138 3 0.138

12. Special course selection for PMS/CSS exams and trainings for students at school.

0.015 3 0.045 3 0.045

13. Personal, Social and Emotional Development of students.

0.061 3 0.183 3 0.183

14. Availability of O/A level study facilities for students.

0.046 4 0.184 4 0.184

15. An extremely competitive salary and benefits package and work atmosphere with

0.053 3 0.159 4 0.212

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ample training and career growth opportunities for teachers.16. Franchising facility and high growth potential.

0.0069 4 0.02 4 0.0276

17. Employee morale is high.

0.046 3 0.138 3 0.138

18. Urdu and English speaking practice for students.

0.053 - - - -

Weaknesses1. Low advertisement, promotion and publicity efforts.

0.061 3 0.183 2 0.122

2. Do not conducting Research and development at proper level and spending very less budget on it.

0.0461 3 0.138 3 0.1383

3. Paying high compensation to management committee that includes Former Vice Chancellor of University of The Punjab in order to avoid turn over.

0.030 - - - -

4. Company is not involving all levels of management in decision making.

0.03 2 0.06 3 0.09

5. Authority is all in the hands of upper level management.

0.061 2 0.122 4 0.244

6. Low marketing budget.

0.030 4 0.12 3 0.09

7. Communication is not effective at management levels.

0.046 3 0.138 3 0.138

Total 1 2.99 3.97 3.1 4.17

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Result:

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