business policy presentation by hammad _aiou_spring_2010
TRANSCRIPT
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Department of Admin Sciences,Allama Iqbal Open University, Islamabad
www.aiou.edu.pk
STRATEGY FORMULATIONSTRATEGY FORMULATION
Email: [email protected] M. HAMMAD MANZOOR, MBA HRM - III
Cell: 0321 584 2326 Roll No. 508195394, Karachi Campus
Presented By: M.Presented By: M. HammadHammad ManzoorManzoor
MBA HRMMBA HRM IIlIIl
Roll No. 508195394Roll No. 508195394
Supervised By: Prof.Supervised By: Prof. SafdarSafdar Ahmed KhanAhmed Khan
((November, 2010)November, 2010)
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Department of Admin Sciences,Allama Iqbal Open University, Islamabad
www.aiou.edu.pk
Email: [email protected] M. HAMMAD MANZOOR, MBA HRM - III
Cell: 0321 584 2326 Roll No. 508195394, Karachi Campus
WELCOMEWELCOME
TO THE PARTICIPANTSTO THE PARTICIPANTS
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Department of Admin Sciences,Allama Iqbal Open University, Islamabad
www.aiou.edu.pk
Agenda Items for PresentationAgenda Items for Presentation
Introduction about Author and Project
Acknowledgement
Abstract Introduction to the Issue
Practical Study Petroleum Exploration Pvt. Limited (PEL)
Data Collection Method / Analysis
Email: [email protected] M. HAMMAD MANZOOR, MBA HRM - III
Cell: 0321 584 2326 Roll No. 508195394, Karachi Campus
ana ys s
Conclusions
Recommendations
Q & A Session
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Department of Admin Sciences,Allama Iqbal Open University, Islamabad
www.aiou.edu.pk
Introduction about Presenter My Self
Introduction about Project
Strategy Formulation
Introduction about Presenter and ProjectIntroduction about Presenter and Project
Email: [email protected] M. HAMMAD MANZOOR, MBA HRM - III
Cell: 0321 584 2326 Roll No. 508195394, Karachi Campus
osop y o e pro ec s,
How to understand the problem and find out a patent
solution
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Department of Admin Sciences,Allama Iqbal Open University, Islamabad
www.aiou.edu.pkAcknowledgementAcknowledgement
To Almighty ALLAH
To Honorable Faculty AIOU, Prof. Safdar Ahmed Khan
To Mr. Mansoor , AIOU, Karachi Campus
To Mr. Tariq Ali G.M. Human Resoureces
(Petroleum Exploration Pvt. Limited), Islamabad)
To my Class fellows of MBA III (Waleem, Javed, Sohail &
Email: [email protected] M. HAMMAD MANZOOR, MBA HRM - III
Cell: 0321 584 2326 Roll No. 508195394, Karachi Campus
e ra e c
To my students at Islamabad (Bahria University, Islamabad)
To my family members
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Department of Admin Sciences,Allama Iqbal Open University, Islamabad
www.aiou.edu.pkAbstractAbstract
Introduction to project
Objective:
1) What is Strategy?
2) What is Formulation?
3) Relationship of Strategy & Formulation3) What are the main implication of Strategy Formulation?
4) How they could be effective in regard of Organizational
Understanding the Problem
Email: [email protected] M. HAMMAD MANZOOR, MBA HRM - III
Cell: 0321 584 2326 Roll No. 508195394, Karachi Campus
Methodology Used Comparison of Different strategies
Merits & Demerits Analysis
Opportunities & Threats
Conclusions
Recommendations
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Department of Admin Sciences,Allama Iqbal Open University, Islamabad
www.aiou.edu.pkINTRODUCTIONINTRODUCTION
IntroductionIntroduction
Email: [email protected] M. HAMMAD MANZOOR, MBA HRM - III
Cell: 0321 584 2326 Roll No. 508195394, Karachi Campus
StrategyStrategy FormulationFormulationStrategy V/sFormulationRelationship
Strategy V/sFormulationRelationship
OrganizationOrganization
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Department of Admin Sciences,Allama Iqbal Open University, Islamabad
www.aiou.edu.pkStrategy Formulation as a part of Strategic ManagementStrategy Formulation as a part of Strategic Management
Strategy Formulation as a part of StrategicMana ement
Strategy Formulation as a part of StrategicMana ement
Strategic management is an ongoing process to develop and revise future-oriented strategies
that allow an organization to achieve its objectives, considering its capabilities, constraints, and
the environment in which it operates.
Email: [email protected] M. HAMMAD MANZOOR, MBA HRM - III
Cell: 0321 584 2326 Roll No. 508195394, Karachi Campus
DiagnosisDiagnosis FormulationFormulation ImplementationImplementation
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Department of Admin Sciences,Allama Iqbal Open University, Islamabad
www.aiou.edu.pk
Establishment
Analysis of
internal
strengths and
weaknesses
Strategic Management ProcessStrategic Management Process
Email: [email protected] M. HAMMAD MANZOOR, MBA HRM - III
Cell: 0321 584 2326 Roll No. 508195394, Karachi Campus
Strategy
implementation
Strategic
control
of mission,
vision, and
goals
Analysis of
externalopportunities
and threats
and strategyformulation
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Department of Admin Sciences,Allama Iqbal Open University, Islamabad
www.aiou.edu.pk
Step 1: establishment of mission, vision, and goals
mission - basic purpose and values of the organization
defines the scope of operations states the organizations reason to exist
written in terms of the general clients served by the
organization
Strategic Management Process
Email: [email protected] M. HAMMAD MANZOOR, MBA HRM - III
Cell: 0321 584 2326 Roll No. 508195394, Karachi Campus
strategic vision - provides a perspective on where thecompany is headed and what the organization can become
moves beyond the mission statement
strategic goals - evolve from the mission and vision of the
organization need to be communicated to everyone who has contact
with the organization
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Department of Admin Sciences,Allama Iqbal Open University, Islamabad
www.aiou.edu.pkStrategic Management Process
Step 2: analysis of external opportunities and threats
successful strategic management depends on an accurate and
thorough evaluation of the environment stakeholders - groups and individuals who affect and are
affected by the achievement of the organizations mission,
goals, and strategies
Email: [email protected] M. HAMMAD MANZOOR, MBA HRM - III
Cell: 0321 584 2326 Roll No. 508195394, Karachi Campus
forecasting future trends is critical
must develop a clear sense of market opportunities
identify potential threats as well
difference between an opportunity and threat may depend
on how a company positions itself strategically
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Department of Admin Sciences,Allama Iqbal Open University, Islamabad
www.aiou.edu.pkStrategic Management Process Environmental Analysis
Industry and
market analysis
Competitor
analysis
Technological
analysis
Email: [email protected] M. HAMMAD MANZOOR, MBA HRM - III
Cell: 0321 584 2326 Roll No. 508195394, Karachi Campus
SocialanalysisHuman resourcesanalysis
AnalysisMacroeconomicanalysis
Political and
regulatory analysis
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Department of Admin Sciences,Allama Iqbal Open University, Islamabad
www.aiou.edu.pk
Strategic Management Process
Resources & Core Competence
Resources
are rare
Resources
Email: [email protected] M. HAMMAD MANZOOR, MBA HRM - III
Cell: 0321 584 2326 Roll No. 508195394, Karachi Campus
areorganized
Resources
are
inimitable
Resourcesare
valuable
Corecompetencies
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Department of Admin Sciences,Allama Iqbal Open University, Islamabad
www.aiou.edu.pk
Strategic Management Process
Internal Resources Analysis
Financial
analysis
Internal
Human resource
assessment
Other internal
resource analysis
Email: [email protected] M. HAMMAD MANZOOR, MBA HRM - III
Cell: 0321 584 2326 Roll No. 508195394, Karachi Campus
Marketing auditOperations
analysis
ResourceAnalysis
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Department of Admin Sciences,Allama Iqbal Open University, Islamabad
www.aiou.edu.pkStrategic Management Process
Step 3: internal strengths and weaknesses (cont.)
Benchmarking - process of assessing how well one companys
basic functions and skills compare to those of other companies goal is to thoroughly understand the best practices of
other firms
only permits imitating rather than surpassing competitors
Email: [email protected] M. HAMMAD MANZOOR, MBA HRM - III
Cell: 0321 584 2326 Roll No. 508195394, Karachi Campus
Step 4: SWOT analysis and strategy formulation
SWOT analysis - comparison of strengths, weaknesses,
opportunities, and threats
helps summarize the major facts and forecasts derived from
external and internal analyses
used as the basis for identifying primary and secondary
strategic issues confronting the organization
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Department of Admin Sciences,Allama Iqbal Open University, Islamabad
www.aiou.edu.pk
Level of Strategies
Level of Strategies Strategy Formation
Email: [email protected] M. HAMMAD MANZOOR, MBA HRM - III
Cell: 0321 584 2326 Roll No. 508195394, Karachi Campus
Corporate Strategy
Competitive Strategy
(Business Level
Strategy)
Functional Level
Strategy
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Department of Admin Sciences,Allama Iqbal Open University, Islamabad
www.aiou.edu.pkStrategic Management Process
Corporate strategy - identifies the set of businesses, markets,
or industries in which the organization competes and the
distribution of resources among those businesses
concentration strategy - focuses on a single business
competing in a single industry
vertical integration - expands the domain of the
Email: [email protected] M. HAMMAD MANZOOR, MBA HRM - III
Cell: 0321 584 2326 Roll No. 508195394, Karachi Campus
organ za on n o supp y c anne s or o s r u ors
concentric diversification - moving into businesses that are
related to the companys original core business
conglomerate diversification - expands into unrelated
businesses
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Department of Admin Sciences,Allama Iqbal Open University, Islamabad
www.aiou.edu.pkStrategic Management Process
CorporateCorporate
ConcentrationConcentration
VerticalIntegration
VerticalIntegration
Email: [email protected] M. HAMMAD MANZOOR, MBA HRM - III
Cell: 0321 584 2326 Roll No. 508195394, Karachi Campus
StrategyStrategy
UnrelatedDiversification
UnrelatedDiversification
Related
Diversification
Related
Diversification
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Department of Admin Sciences,Allama Iqbal Open University, Islamabad
www.aiou.edu.pk
Allows a firm to master one business
In-depth knowledge
Easier to achieve com etitive advanta e
Allows a firm to master one business
In-depth knowledge
Easier to achieve com etitive advanta e
Email: [email protected] M. HAMMAD MANZOOR, MBA HRM - III
Cell: 0321 584 2326 Roll No. 508195394, Karachi Campus
Organizational resources under less strain
Lack of ambiguity concerning strategic direction
Consensus
Sometimes found more profitable than other strategies(dependent on industry, of course)
Organizational resources under less strain
Lack of ambiguity concerning strategic direction
Consensus
Sometimes found more profitable than other strategies(dependent on industry, of course)
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Department of Admin Sciences,Allama Iqbal Open University, Islamabad
www.aiou.edu.pk
Risky in unstable environments
Risky in unstable environments
Email: [email protected] M. HAMMAD MANZOOR, MBA HRM - III
Cell: 0321 584 2326 Roll No. 508195394, Karachi Campus
ro uc o so escence an n us ry ma ur y
Cash flow problems
ro uc o so escence an n us ry ma ur y
Cash flow problems
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Department of Admin Sciences,Allama Iqbal Open University, Islamabad
www.aiou.edu.pk
Raw
Materials
Primary
Manufac-
Final
Product Whole- Retailing
The Vertical Supply ChainThe Vertical Supply Chain
Email: [email protected] M. HAMMAD MANZOOR, MBA HRM - III
Cell: 0321 584 2326 Roll No. 508195394, Karachi Campus
Extraction turing -
turing
Vertical Integration: The extent to which an organization is involved in
multiple stages of the industry supply chain
Vertical Integration: The extent to which an organization is involved in
multiple stages of the industry supply chain
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Department of Admin Sciences,Allama Iqbal Open University, Islamabad
www.aiou.edu.pk
When it costs less to do so
Stated cost of product or service
Time and resources devoted to contract creation andenforcement (transaction costs)
Transaction costs are high (market failure) when:
Highly uncertain future
One or small number of suppliers
When it costs less to do so
Stated cost of product or service
Time and resources devoted to contract creation andenforcement (transaction costs)
Transaction costs are high (market failure) when:
Highly uncertain future
One or small number of suppliers
When to Vertically IntegrateWhen to Vertically Integrate
Email: [email protected] M. HAMMAD MANZOOR, MBA HRM - III
Cell: 0321 584 2326 Roll No. 508195394, Karachi Campus
Asset specificity
Asset specificity
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Department of Admin Sciences,Allama Iqbal Open University, Islamabad
www.aiou.edu.pk
Unrelated DiversificationUnrelated Diversification
Antitrust laws and financial theories made it Antitrust laws and financial theories made it
Email: [email protected] M. HAMMAD MANZOOR, MBA HRM - III
Cell: 0321 584 2326 Roll No. 508195394, Karachi Campus
popular
Not a particularly high performing strategy formost firms (with a few notable exceptions)
popular
Not a particularly high performing strategy formost firms (with a few notable exceptions)
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Department of Admin Sciences,Allama Iqbal Open University, Islamabad
www.aiou.edu.pk
Based on tangible and intangible relatedness
In theory, can lead to synergy (but synergy is oftenillusive)
Based on tangible and intangible relatedness
In theory, can lead to synergy (but synergy is oftenillusive)
Related DiversificationRelated Diversification
Email: [email protected] M. HAMMAD MANZOOR, MBA HRM - III
Cell: 0321 584 2326 Roll No. 508195394, Karachi Campus
en a g er per orm ng s ra egy an unre a e
diversification (lower risk and higher profitability)
Can lead to corporate-level distinctive competencies
en a g er per orm ng s ra egy an unre a e
diversification (lower risk and higher profitability)
Can lead to corporate-level distinctive competencies
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Department of Admin Sciences,Allama Iqbal Open University, Islamabad
www.aiou.edu.pkMergers and AcquisitionsMergers and Acquisitions
High Premiums
Increased InterestCosts
High Advisory Fees Poison Pills
High Turnover
High Premiums
Increased InterestCosts
High Advisory Fees Poison Pills
High Turnover
Email: [email protected] M. HAMMAD MANZOOR, MBA HRM - III
Cell: 0321 584 2326 Roll No. 508195394, Karachi Campus
Distraction Less Innovation
Lack of Fit
Increased Risk
Distraction Less Innovation
Lack of Fit
Increased Risk
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Department of Admin Sciences,Allama Iqbal Open University, Islamabad
www.aiou.edu.pkPRACTICAL STUDY PETROLEUM EXPLORATION Pvt. LIMITED (PEL)
PETROLEUM EXPLORATION Pvt. LIMITED (PEL)PETROLEUM EXPLORATION Pvt. LIMITED (PEL)
Incorporated in June 1994 under the Companies Act,Petroleum Exploration (Private) Limited (PEL) is based at Islamabad,Pakistan.
PEL charter fulfills Government of Pakistan strategic policyobjectives of creating indigenous corporate entities in the private sectorfor exploration and production of hydrocarbon deposits.
Under the dynamic leadership of Mr. Zaheeruddin, Chairmanand Chief Executive, PEL has embarked upon a very aggressive exploration
ro ram to ra idl search new de osits of h drocarbons and undertake its
Email: [email protected] M. HAMMAD MANZOOR, MBA HRM - III
Cell: 0321 584 2326 Roll No. 508195394, Karachi Campus
development of new discoveries on fast track basis.
PEL has a highly experienced team of petroleum professionalsincluding geologists, geophysicists, petroleum and process engineers, andfinancial experts. It is adequately equipped with logistics and supportservices. PEL has recently engaged an industry renowned Stanfordalumnus Dr. Gulfaraz Ahmed as the Chief Operating Officer. He iscommitted to developing PEL into a well resourced integrated team of
cutting-edge expertise.
PEL believes in optimally exploiting knowledge/technology byoutsourcing to the leaders in service industry.
PEL has concluded an agreement with D&S InternationalConsulting Limited, Calgary Alberta, Canada, for the provision of technicalservices.
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Department of Admin Sciences,Allama Iqbal Open University, Islamabad
www.aiou.edu.pk
PETROLEUM EXPLORATION Pvt. LIMITED (PEL)PETROLEUM EXPLORATION Pvt. LIMITED (PEL)
Email: [email protected] M. HAMMAD MANZOOR, MBA HRM - III
Cell: 0321 584 2326 Roll No. 508195394, Karachi Campus
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Department of Admin Sciences,Allama Iqbal Open University, Islamabad
www.aiou.edu.pkPRACTICAL STUDY PETROLEUM EXPLORATION Pvt. LIMITED (PEL)
Email: [email protected] M. HAMMAD MANZOOR, MBA HRM - III
Cell: 0321 584 2326 Roll No. 508195394, Karachi Campus
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Department of Admin Sciences,Allama Iqbal Open University, Islamabad
www.aiou.edu.pk
The company is wholly Pakistani owned and has the bright future in the energysector of Pakistan.
Senior and superior professionals have been engaged with for the exploration andproduction of hidden energy natural assets of Oil and Gas.
The company has very aggressive future plans for drilling and production of Oil andGas.
The company is fully equipped with modern day equipment for the facilitation ofemployees to enhance their performance effectively.
Highly Self esteemed professionals, shown in the Organogram, been used forcreating more progressive for running the plant.
Under the proctorship of Mr. Zaheeruddin the company is developing by leaps and
Strengths / Merits
Email: [email protected] M. HAMMAD MANZOOR, MBA HRM - III
Cell: 0321 584 2326 Roll No. 508195394, Karachi Campus
bounds and spreading its business throughout Pakistan and abroad. Have Joint Venture with almost 70% E&P companies operating in Pakistan. Mr. Zaheeruddin was awarded the best business man for the year 2007 by the Prime
Minister of Pakistan. The departments like Exploration, Production and Process are working cordially and
proving to be the back bone of each other. Mr. Zaheeruddin and Co. does have very good relations with Govt. which is very
important especially in the matter of acreage allocation. The company is on the verge of developing several ongoing projects which would
prove a real epic in the disastrous power and energy shortage situation of thecountry.
Equal opportunity Employer.
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Department of Admin Sciences,Allama Iqbal Open University, Islamabad
www.aiou.edu.pk
PEL holds low strategy management.
Risk taking persons are lying in the low cadre
area, which is leaning behind in their personal
progress. Administrations department does not have
enough strength to cop with day to day affairs.
Weakness / De-Merits
Email: [email protected] M. HAMMAD MANZOOR, MBA HRM - III
Cell: 0321 584 2326 Roll No. 508195394, Karachi Campus
.
It does not have proper opportunities for policymaker professionals.
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Department of Admin Sciences,Allama Iqbal Open University, Islamabad
www.aiou.edu.pk
Block 22 contains most of the professionalgood policy and thinker
Professionals generally hold less market
strategy Future entrepreneur of in Pakistan energy sector. HR department can be strengthened by hiring
management professionals who can add the value to its
Conclusions
Email: [email protected] M. HAMMAD MANZOOR, MBA HRM - III
Cell: 0321 584 2326 Roll No. 508195394, Karachi Campus
business.
Coporate strategy can be improved by makingthe high management staff more trained and moremotivate
Administration department needs to address for ofhiring experienced professionals of the relevant trade.
The emphasis of the company emphasized is workprogress, nor on the strategic management ofproject, which could be helpful for companyoperation smooth conduction and helping out forbetter prospectivity in the form of his personalgrowth, strategy management and motivation tocompany.
Recommendations
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Department of Admin Sciences,Allama Iqbal Open University, Islamabad
www.aiou.edu.pk
Thanks for your patience,,,,,,
Email: [email protected] M. HAMMAD MANZOOR, MBA HRM - III
Cell: 0321 584 2326 Roll No. 508195394, Karachi Campus
Q & A Session