sm-final project report

8/7/2019 Sm-final Project Report

1/19

Strategic ManagementStrategic ManagementProject Final ReportProject Final Report

Prepared By GroupPrepared By Group H H

ZiauddinZiauddinAhmedAhmed SiddiquiSiddiqui 5131051310 Masroor Masroor KayaniKayani 5155851558 AftabAftab AhmedAhmed 5155951559 AdeelAdeel JawedJawed 5224352243 Arif Arif KaleemKaleem 5074050740Submitted to:

Si r Azam Khan Da ted: 01-05-2010

Pakistan Air Force Karachi Institute of Economic &TechnologyPakistan Air Force Karachi Institute of Economic &Technology


2/19

Ora-Tech Systems (Pvt.) Ltd.

VISION STATEMENT

Ora-Tech Systems aims to become one of the bestbusiness solution provider companies of Pakistanespecially in ERP Solutions.

To be remain the biggest Oracle partner in Asia, in bothCustomer Base and Revenue. Almost every companythat is using Oracle, in Pakistan is an Ora-TechCustomer.


3/19

MISSION STATEMENT ( Who we are? )

We are passionate people

Passionate about viability, continuity and extensibility

of the solutions we deliver. Ora-Tech is an industry-focused technology firm. We achieve measurablebusiness results for you using worlds best databasetechnology and a strategic and complementing suite of applications. Applications that enhance your operational performance, optimize your value chain,and improve your bottom-line.

We Empower individual and organization to achievehigh performance through the use of cutting edgetechnology.


4/19

N ine components of Mission Statement

Customer:To accomplish the need of valued customer and we understand theneed/wants & demand of the customer. We provide the highest standardof IT professional consulting service to help customers and maximizetheir potential.

Product/Service:Provide the best solution & cost effective with the latest technology bythe skillful peoples to achieve the target and goal

Market:We invest in the highest quality project managers, functional consultants

and technical consultants to ensure you get the maximum benefit fromyour investment.

Technology:We use only the latest and most cost-effective tools to find solutions for your info-tech problems


5/19

Concern for Survival, Growth, and Profitability:Provide best solution to customer at a fair profit and producing best ERPsolution as customer need that satisfied customer requirements.

Philosophy:Our philosophy of raising the productivity and competitiveness of our clients by developing our peoples skills

Self Concern:Provider of best ERP solution giving opportunities to new engineers bygiving then best platform in Ora-Tech

Concerns of Public Image:Ora-Tech confines its scope to delivering Enterprise solutions and

consulting. No added fees for services you dont want.

Concerns for Employee:Provide the excellent working environment, superior leadership,an attractive benefit, opportunity for growth and level of employment security


6/19

SWOT Analysis of Ora-Tech Systems (Pvt.) Ltd.(End to End Solution Provider)

Ex ternal Ex ternal Threats Internal Strength Internal WeaknessF ac tors whi c h a re theOpportunities for c omp a ny:

Ec onomi c, Social, Cultural ,

Demographi c /Environmental , Politi cal, Legal , Governmental , Te chnologi cal , Competitors

F ac tors whi c h a re the thre a ts for c omp a ny:

Ec onomi c, Social, Cultural ,

Demographi c /Environmental , Politi cal, Legal , Governmental , Te chnologi cal , Competitors

Resour ces (Capital andInfrastru cture) & Capabilities(Human and ma chine produ ctivity)are better than companys closecompetitors

Resour ces (Capital andInfrastru cture) & Capabilities(Human and ma chine produ ctivity)are less than companys closecompetitors

Technology1) Market are not saturated , havecapacity, Market your produ ct.Effects in Industry:Well Marketing is the demand of industry

Competitors1) Strong Marketing Competitionfrom SAP , SAS , Teradata et c .Effects in Industry:New entrant Competitors investingmore in marketing , Risk of losingmarket.

Product1) Full Turnkey Solution provider in

High profile produ cts (Ora cle, IBM , Red Hat Linux , HP , Cisco, IBM , Tripplite , Soni cwall , Profitara.)Effects in Industry:Customer trust on market Leadersand their produ cts

MarketingLacking in marketing efforts insoftware side.Need to spe cialize market team.Effects in Industry:Diffi cult to get targets

Experience2) Market your su cc ess stories or your image to get new customersEffects in Industry:Growth market share

Goodwill2) Global opportunities for employees.Risk of in crease turnover.Effects in Industry:We can Loose market.

Human Resource2) Su cc essful Skilled andExperien ced teamEffects in Industry:Market has demand of Experien cedand skilled people.

Turnover2) Loosing No of trained &experien ced staff.. (Need to reviewyour HR poli c ies)Effects in Industry:Its create va cuum of skills people in

local market.Employee turnover iscommon problem in Pakistan I.T.market due to global opportunities.

New Geographical Market3) New geographi cal andtechnologi cal market hasCapa city.For Example E lectroni c media isgrowing and has capa city to

provide business.

Market3) Risk of losing opportunities due toslow implementation on marketingstrategies.

Image3) Ora-Te ch Systems is the First I.T.company in to attain ISO 9001: 2008Status

Management3) Slow implementation onmarketing strategies


7/19

Price4) Maintaining Low Pri ceLeadershipEffects in Industry:Low pri ce has high demand

Political4) Instable Politi cal situation.Government has been changing inmany times due to multiple reasonsand most of the times Military hastaken the charge of the government.

So , there are signifi cant politi cal risksin .

Capital4) A cc ess to readily available funds , Ability to expand.From an IT perspe ctive with 40+Ora cle E -Business SuiteImplementations and literally

hundreds of proje cts su cc essfullycompleted

ManagementIndividual and companyAcc ountability , Weak Appraisalsystems

GlobalizationGlobal marketGlobal presen ce Ec ommer ceInternet usageWeb servi ces

Economical5) Current challenge is the finan c ialcrisis Produ ct pri ces are in creasingdue to high Dollar Rate.Nobody wants to pur chase newsolutions against their outdated lega cysystems just be cause of low business.Effects in Industry:Loosing market by the finan c ial crisis

Price War5) Competitive pri cing

Power Crises6) Ups and other prote ctionequipment demand in creases

Power Crises6) Business from Manufa cturingindustry has been stop due to loadshedding.

Service Quality6) Best-in- class servi ce and support7) Flexible customization capability

F rom the SWOT Analysis it is clear that firms very strong in the marketand major weaknesses are keeping up with the marketing strategies,financial crises and ensuring to maintain his industry leader status. After financial crises from 2007 in Pakistan OTS revenue graph has gonedown so Ora-Tech has need adopt aggressive marketing strategies to

retain his market share.


8/19

External Factor Evaluation Matrix (EFE Matrix)External Factor Evaluation Matrix (EFE Matrix)

Key External Factors Weight Rating Weighted

Score

OPPORTUNITIES

1- Start Online Support/Sales 0.08 3 0.24

2- Explore New , UAE, , Etc. 0.09 2 0.18

3- Use Goodwill/image to Acquiring New Project Using StrongMarketing techniques

0.16 4 0.64

4- Target New Market Of Electronic Media 0.09 2 0.18

5- Market your Content Management Solutions 0.08 3 0.24

THREATS

1-Risk Of Losing Projects 0.07 4 0.28

2-Risk Of Loosing Staff 0.18 3 0.54

3-Instable Political & Economy Situation 0.08 1 0.08

4- Current Challenge is The Financial Crisis 0.17 1 0.17

Total 1 2.55


9/19

Internal Factor Evaluation Matrix ( IFE Matrix)Internal Factor Evaluation Matrix ( IFE Matrix)

Key External Factors Weight Rating Weighted Score

Strength

1- High Quality Product 0.03 4 0.12 2- Skilled & Experienced Workforce 0.01 4 0.40 3- On Time Deliverables 0.20 4 0.80 4- Effective hardware Support centre 0.03 3 0.09

5- Blue chip clients 0.02 3 0.06 6- Focus on latest Technologies 0.03 3 0.097- Flat organization Structure 0.03 3 0.098- Comprehensive website 0.01 3 0.03

Weakness

1- Low of Software due to Recession 0.14 2 0.28 2- Employee morale is down (No Performance appraisal) 0.10 2 0.20 3- Weak Marketing Team 0.12 2 0.244- HR is not effective 0.09 1 0.095- Employees turnover 0.10 2 0.20 Total 1 2.69


10/19

The SWO T/TOWS MatrixThe SWO T/TOWS Matrix

I NTERNALSTRENGTHS 1. Strong Financial position2. High profile Product 3. Skilled Team in Software wing4. Strong I mage5. Quality Service6. Competitive Price

WEAKNESSES 1. Staff lack of motivation2. Weak Marketing Team3. Weak Performance Appraisal System4. Turnover

E X

T E RN AL

OPPORTUN I T I ES 1. Market has Capacity 2. Low price leadership3. Demand of Quality product 4. Global Presence5. New geographical markets6. Electronic Media

SO Optionsy I ncrease your marketing efforts. (S1,O1)y Provide full turnkey solution in competitive

price (S2, O2)y Focus on New growing markets such as

Electronic media (S4, , O3, S5)

WO Optionsy Strengthen your marketing team and

increase marketing activities (W2, O1)y Adopt Strong Performance appraisal

system & increase incentives (W1,W2, W4, O1)

THREATS 1. High competition from SAP, SAS and TeraData.2. Global opportunities for employees

3. High interest rate4. Unstable Political situation5. Power crises

ST Optionsy Use your strong image to compete using

new trends of marketing (T1,S4)y I

ntroduce new Performance packages for employees(T2, S1)y your power management(W5S3, S6 )

solution

WT Optionsy Strengthen your marketing and H.R

departments (T2, W1, W2)


11/19

The Space MatrixThe Space Matrix

Internal Strategic Position External Strategic PositionCompetitive Advantage (CA) Industry Strength (IS)

(-6 worst, -1 Best)Product Quality -1Market Share -2Brand & Image -1Technological Knowledge -1Average -1.25

(+1 worst, +6 Best)Growth Potential +6Barriers to Entry +6Technological Knowledge +4Profit Potential +3Average 4.75

Total Axis X Score 3.5Financial Strength (FS) Environmental Stability (ES)

(+1 worst, +6 Best)RO I 5Working Capital 6Cash Flow 5Leverage 4Average 5.00

(-6 worst, -1 Best)Inflation -4Technology Changes -2Risk involved -3Competitive Pressure -1Average -2.50

Total Axis Y Score 2.5


12/19

Conservative

Defensive Competitive

Aggressive

Market Penetration

Market Development

0 1 2 3 4 5

1

2

3

4

5

-1

-2

-3

-4

-5

-1-2-3-4-5

(3.5 , 2.5)

The Space Matrix Grap hThe Space Matrix Grap h

ES

CA IS

FS


13/19

The BCG MatrixThe BCG Matrix

27%

58%

06%

09%

H igh1.0 Medium

0.50Low0.0

H igh

Medium

Low

+20

0

-20

Division Revenue Rev % Profit Profit % % MktShare

% GrowthRate

CRM/ERP Solution 53.80(m) 61% 5.77(m) 58% 88 +18

Technical Support 10.62(m) 30% 2.47(m) 27% 32 +15

OTS-RCOA 2.00(m) 04% 0.87(m) 09% 1 +10

OTS-HMS 3.00(m) 05% 0.16(m) 06% 2 -20

Total 69.42(m) 100% 9.27(m) 100


14/19

Qu estion Mark Prod u ct ?After lot of investment on OTS-RCOA (Reporting Chart of Account) has stillquestion mark.

University Management Systems.(only one implementation, need to more investment)

Star Prod u ctIBM Maximo Asset management software has still Star status and Enterprisecontent management (ECM) has very much strength for gain market share.

(24 successful implementation and still have demand)C ash C owOracle E-business suit is now getting cash cow status due to slow growth Seibelon Demand (CRM)(Various implantations but no demand in current market)

D ogThere are some product those business growth rates and market share is lowOTS-HMS (Hospital Management System)Banking Data warehouse

(Analysis shows N o need in current or future market)


15/19

The Internal External ( IE) MatrixThe Internal External ( IE) MatrixEFE Total weighted score : 2.55 (x-axis)IFE Total weighted score : 2.69 (y-axis)

The EFETotalWeightedScore

High3.0I

II III

Medium2.0IV

V VI

Low1.0VII

VIII IX

The IFE Total Weighted Scores

Strong Average Weak1.02.03.04.0

1.0

2.0

3.0The EFE

Total

Weig hted

Score

High

Medium

Low

H old & MaintainMarket Penetration

Product Development


16/19

Grand Strategy MatrixGrand Strategy Matrix

RAPID MARKET GROWT H

Quadrant IV

ConcentricdiversificationHorizontaldiversificationConglomeratediversificationJoint ventures

Quadrant III

RetrenchmentConcentricdiversificationHorizontaldiversificationConglomeratediversificationLiquidation

Quadrant I

Market developmentMarket penetrationProduct development

Quadrant II

Market developmentMarket penetrationProduct developmentHorizontal integrationDivestitureLiquidation

WEAK

COMPETITIVE

POSITIO N

STRO N G

COMPETITIVE

POSITIO N

SLOW MARKET GROWT H


17/19

Q uantitative Strategic Planning Matrix ( Q SPM)Q uantitative Strategic Planning Matrix ( Q SPM)

Key External Factors:

W ei h (0 to 1)

St r te y 1 Str te y 2 St r te y 3

M rke t h s C p ci ty (Techn ology M rke t)

0.9 Improv e & In cr ease Mark etinge or ts

Incr ease your Produ ct line

Dem nd of Q u li ty pr oduc t

0.8 Mark et your h igh d emandprodu cts

Provide full turnk ey solution in competiti ve pr ice

H igh compe t it ion fr om SAP SAS and Ter aData.

0.7 Use your strong br and image &tr ack r ecord to comp ete usingnew mark eting tr end s

G loba l opp or tuni t ies f or empl oyees

0.7 Introdu ce new incentives, Perform ance pack ages for emp loyees

Str engthen your mark eting and H.R depar tments

Uns ta ble Poli t ica l/ Ec onomic a l situat ion

0.5 Avoid long term investment progr ams

T ota l score 3.6 /5

Key Internal Factors:

eight(0 to 1)

Strategy 1 Strategy 2 Strategy 3

Strong F inanc ial pos it ion

0.9 Improved IncreaseMarke ting effor ts

Increase your Produc t line

H igh prof ile Product 0.8 Marke t your h igh demandproduc ts

Prov i e fu ll turnkeysolution incompe titi ve pr ice

Skill ed Soft warei p lementat ionteam

0.8 Retained your h igh sk ill edemp loyees to prov i ingcompensa tion packages

Fired low performer

Strong Image &G loba l Presence

0.6 Cash / Marke t your image S treng then your marke ting and H.R depar tmen ts

W ea k mar k et ing 0.8 Focus on your marke tingstrategy and their effor ts

Change your marke tingmanagemen t

H igh Turnover duegloba l opportun ity

0.7 Re-organ i ed s tar t Effec tive po licies in throughH.R Dep t.

Change your H.R.policies

Change your H.R.Team

Tota l score 4.6 / 6


18/19

TH E QU AN TITATIVE STRATEGIC PLA NN IN G MATRIXTH E QU AN TITATIVE STRATEGIC PLA NN IN G MATRIX Q SPMQ SPMSTRATEGIC ALTERNATIVES

Market D evelopment

Market P enetration

Key Factors Weight AS TAS AS TAS O pportunities: Start Online Support/Sa les 0.08 3 0.24 4 0.32Explor e New Sales Te rr itor ies, UAE, Singapor e, Etc. 0.09 Use goodwill to acquir ing new project using s trong mark eting techniques 0.16 4 0.64 3 0.48Tar get new mark et of electronic media 0.09 1 0.09 2 0.18Mark et your Content Management Solutions 0.08 1 0.08 3 0.24

Th reats: Risk of losing projects 0.07 1 0.07 2 0.14Risk of losing s taff 0.18 Instable political & economy situat ion 0.08

Curr ent challenge is the f inancial cr isis 0.17 3 0.51 4 0.68High inter est rate 0.09 4 0.36 3 0.271.00

S trengt h : High Quality Product 0.03 4 0.12 2 0.06Sk illed & Exper ienced Workforc e 0.01 On Time Delive rables 0.20 2 0.40 4 0.8Eff ective hardwar e Support centr e 0.03 1 0.03 4 0.12Blue chip clients 0.02

Focus on latest Technologies 0.03 1 0.03 3 0.09Flat or ganization Structur e 0.03 Compr ehensive we bsite 0.01

W eakness: Low sale of softwar e due to r ecession 0.14 Employee morale is down 0.10 4 0.40 3 0.30We ak Mark eting Te am 0.12 3 0.36 2 0.24HR is not eff ective 0.09 1 0.09 2 0.18Employees tur nover 0.10

1.00 3.42 4.10


19/19

sm-final project report

Documents