PowerPoint Presentation
REGUS PAKISTAN
OD&A Term ProjectZarmeen Siddiqui Hassan Ali Tirmizey Sabih Ur Rehman SiddiquiNehal Zafar
IntroductionRegus plc. is a multinational organization that gives the modified settlement in office work focuses. It operates in 2000 locations, 100 countries all over the world. The organization is registered in the London stock market trade and is a constituent of the FTSE 250 list. Regus is headquartered in Luxembourg City, Luxembourg.Regus Pakistan: Regus is operating in Pakistan since 2002 and offering its business support services in locations like Dolmen Executive Tower, Clifton and Bahria Complex II and III. Regus is also expanding its centers in Islamabad and Lahore.
Products and Services Co Working office SpaceVirtual OfficeInternet ServicesTelephone AnsweringMeeting Rooms
CustomersErnst & YoungChevron PakistanTundra FonderTrust Investment BankPath SolutionsHi-Chair
Organization DiagnosisEnvironmental Forces:Social and Cultural ForcesThe business support industry is something new in the Pakistani culture, which mainly people are not even aware of. Moreover there are not any local investors even who think of investing to this side. This is a social behavior as they dont even have a clear concept of office spaces, so their behavior towards this concept remains ignorant.International Forces:Regus has a formula to charge its client. They charge their client on the basis of UK pound. So if the value of pounds increases internationally it will affect the monthly fee for the business support services they offer to all their clients in different countries. So they follow a fixed exchange rate for this currency which is determined by the headquarters, even when the rate keeps on fluctuating Regus charge their client as per there policy.Technological Forces:Regus policies are very strict related to this, as they have molded themselves in the anticipation of changing technology. For providing best internet facility they have installed the latest Cisco network systems available in Karachi. Economic Forces:Unemployment rate in Pakistan is very high which forces new investors to provide job opportunities and entrepreneurial services, thus Regus provides solution to this by giving cost effective solutions to young entrepreneurs to start their business.
Industry Structure:
SuppliersRegus has their vendors who offer those services like tech support, furniture, technology equipment, few of their vendors also help them with stationary and snack items.BuyersThe main customers of this industry are SMEs and MNCsNew entrantsMany investors are investing in this business model however there is no such group who can compete to organization like Regus.SubstitutesIn Pakistan for MNCs Regus is the only solution if they want business or co working space, however entrepreneurs and SMEs intent to move to other business service provider. Competition is very less in this industry.CompetitorsIn country like Pakistan there are several organization who are competing with Regus like Hi Five, Venture Dive and Dot Zero.
Design ComponentsTechnologyState of the art technology is being introduced in all of their centers, so it is part of their policy to introduce latest technology and stay up to date and its part of their policy.StrategyRegus is expanding its business rapidly and developing its centers in more than 100 countries, since it is serving in many countries to many different people so it has to coup up with the culture of that country and has to set their working policies accordingly. StructureStructure of Regus is formalized with a centralized management system.
Human Resource SystemRegus Karachi does not have a specific human resource department, so all the recruitment is done through an online process .
Measurement SystemYearly performance appraisals are conducted, mostly in the month of April or after one year completion of a specific employee. Self-evaluation forms are used for this purpose, further evaluations are done by the country head
Organization effectivenessProfitabilityRegus is the largest provider of flexible office space solutions having operating profits up to 33%, constantly focusing on growth.
ProductivityRegus have centers in almost 2000 locations, only have a total staff of around 8000 employees (as per 2013 records), this shows their productivity as they have substantial growth of 30% (recorded) hand in hand with not a very large workforce.
Stakeholder SatisfactionThe company is highly profitable with constant growth every year due to which all stakeholders seems to be satisfied with Regus.
Problem IdentifiedThis scattered system of Regus makes operations complicated in most of the centers and Karachi center is also facing problem with this respect, clearing of invoices, termination of contract, Receivables etc. There are many payments which are paid by the clients out of which several payments are still unrecognized, because account of Regus Pakistan is connected to finance department in Philippines it takes them time to identify who has made the payment.
Clients do complain about such issues which are forwarded to finance department, but all the communication is over emails, and for such problems there are various protocols, approvals and steps to be followed because of which processes gets delayed.
According to GM of Regus Karachi Its a Mess.
Recent change
Technological changes have been observed recently in the organization, and the center has been equipped with latest CISCO devices in order to give better internet services to their clients.
Online training has been given to CRMs regarding the understanding of ERP software they are currently using in the organization.
Force Field Analysis of Regus
DRIVING FORCESPROPOSED CHANGERESTRAINING FORCESCommunication GapDisturbed FinancialsMiss Managed Work SystemOrganization structure is scattered.Work load on employees.Late Sittings in the organization as relationship managers are taking care of financial issues which is not the part of their job description Every center should have a separate finance department which will be responsible to carry all finance operation i.e. , clearing of invoices, termination of contract, Receivables and should be reporting directly to the head office in Philippines Strict Company policies Lack of Employee Empowerment Employees incapability Few employees to support the operation.
ConclusionRegus is one of the biggest group who is offering co working space and business services all over the world, After evaluating the overall situation of Regus center Karachi, we found that it has couple of problems which they are currently facing and the main cause of it are as follows:
The overall structure of organization which is scattered all over the worldCommunication GapStrict HR and Operation Policies
RecommendationFollowing are recommendations to Regus:A separate finance department should be taking care of overall financials of one center.They should hire more employees per center, in order to distribute the work adequately.
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