Professional Documents
Culture Documents
MGT603
PROJECT DETAILS
Individuals and organizations are alike in many ways. Each has competitors
and each should plan for the future. Each and every organization faces
opportunities and threats and has some internal strengths and weaknesses.
All these make it possible for the individuals and organizations to use and
apply many strategic management concepts and tools.
You are required to select any firm operating in Pakistan from Telecom
sector and visit that firm (if possible). After a thorough analysis of that firm,
use the following strategic management concepts and tools to critically
investigate the firm and prepare a 10-15 pages report of your findings and
submit that research report on or before 15th January, 2009.
REQUIREMENTS:
Conduct an external and internal analysis for the selected firm.
Explore the opportunities and threats in recent issues of newspapers
and magazines and on internet, relevant to this sector. Find out the
weaknesses and strengths of that firm and prepare a precise and
comprehensive SWOT analysis in bulleted form. (10)
Prepare the EFE matrix for that company with not more than 10
external factors relevant to the firm. (5)
Prepare the IFE matrix for the company with not more than 10
internal factors of the firm. (5)
Construct a large nine-cell diagram that will represent your TOWS
matrix for the firm. Label the cells appropriately and suggest 5-10
strategies using TOWS matrix. (10)
Diagram the BCG matrix for 5-10 products of the selected firm. (10)
In the light of all your findings, suggest 4-6 strategies for the firm
based on solid reasoning and proper justification. (10)
In the end, you are required to prepare QSPM to analytically review
the relative attractiveness of feasible alternative strategies. (Any 3
strategies should be used) (10)
In the light of all above, suggest some recommendations for the firm
and crux or conclusion of your research findings. (10)
I am providing the report on a Bank so that you guys and galls can take help from it; read it
thoroughly; its really helpful for you; I have given the details of each and every point the this report.
The thing which is required is collectively known as comprehensive strategy formulation framework
so I am starting from its introduction.
Comprehensive Strategy-Formulation
Framework
Important strategy-formulation techniques can be integrated into a three-stage decision-
making framework, as shown below. The tools presented in this framework are
applicable to all sizes and types of organizations and can help strategists identify,
evaluate, and select strategies.
Stage 1 of the formulation framework consists of the EFE Matrix, the IFE Matrix, and
the Competitive Profile Matrix. Called the Input Stage, Stage 1 summarizes the basic
input information needed to formulate strategies.
Grand
TOWS SPACE BCG
IE Matrix Strategy
Matrix Matrix Matrix
Matrix
Stage 2, called the Matching Stage, focuses upon generating feasible alternative
strategies by aligning key external and internal factors. Stage 2 techniques include the
Threats-Opportunities-Weaknesses- Strengths (TOWS) Matrix, the Strategic Position and
Action Evaluation (SPACE) Matrix, the Boston Consulting Group (BCG) Matrix, the
Internal-External (IE) Matrix, and the Grand Strategy Matrix.
Stage 3, called the Decision Stage, and involves a single technique, the Quantitative
Strategic Planning Matrix (QSPM). A QSPM uses input information from Stage 1 to
objectively evaluate feasible alternative strategies identified in Stage 2. A QSPM reveals
the relative attractiveness of alternative strategies and, thus, provides an objective basis
for selecting specific strategies.
Threats
1. Potential competition from new 0.10 2 0.20
entrants in Islamic Banking (Dubai Islamic
Bank). 0.10 1 0.10
2. Employees turn over in the face of
new competition. 0.06 2 0.12
3. Prevailing economic uncertainties
discourage booking of long term assets 0.05 2 0.10
4. Uncertainty about implementation of
Islamic banking 0.05 2 0.10
5. Lack of awareness among people
about Islamic Banking. 0.06 2 0.12
6. Small Network
Total 1.00 2.35
Explanation
1. List key internal factors as identified in the internal-audit process. Use a total of from
ten to twenty internal factors, including both strengths and weaknesses. Always list
strengths first and then weaknesses, Be as specific as possible, using percentages, ratios,
and comparative numbers. The list of all strength and weaknesses should consist of 10-20
factors.
2. Assign a weight (either in %age or in numerical value) that ranges from 0.0 (not
important) to 1.0 (all-important) to each factor. The weight assigned to a given factor
indicates the relative importance of the factor to being successful in the firm's industry.
Regardless of whether a key factor is an internal strength or weakness, factors considered
to have the greatest effect on organizational performance should be assigned the highest
weights. The sum of all weights must 3. Assign a 1-to-4 rating (rating means what is the
capability of the firm to meet its strength and weaknesses) to each factor to indicate
whether that factor represents a major weakness (rating 5 1), a minor weakness (rating 5
2), a minor strength (rating 5 3), or a major strength (rating 5 4). Note that strengths must
receive a 4 (for average strength) or 3 (for normal strength) rating and weaknesses must
receive a 1 (for normal weakness) or 2 rating. Ratings are, thus, company based 6. Sum
the weighted scores for each variable to determine the total weighted score for the
Regardless of how many factors are included in an IFE Matrix, the total weighted score
can range from a low of 1.0 to a high of 4.0, with the average score being 2.5. Total
weighted scores well below 2.5 characterize organizations that are weak internally,
whereas scores significantly above 2.5 indicate a strong internal position. Like the EFE
Matrix, an IFE Matrix should include from 10 to 20 key factors.
The number of factors has no effect upon the range of total weighted scores because the
weights always sum to 1.0. When a key internal factor is both strength and a weakness,
the factor should be included twice in the IFE Matrix, and a weight and rating should be
assigned to each statement.
INTERNAL FACTOR EVALUATIONMATRIX (IFE) of
Meezan Bank
Key Internal factors Weight
Rating Weighted Score
Strengths
1. Islamic banking pioneers in Pakistan – first 0.07 4 0.28
mover advantage.
2. Strong diversified sponsors generating 0.06 2 0.12
synergies.
3. Highly qualified and financial sector 0.05 3 0.15
experienced members of the Shariah Board;
they have their own Shariah Board.
4. Skilled & professional employees. 0.05 3 0.15
5. Excellent relationship with the regulators. 0.07 3 0.21
6. Strong balance sheet and reserve base. 0.04 3 0.12
7. MBL is the only Islamic bank providing 0.06 4 0.24
export-refinancing facility to its customer.
8. Low processing charges of Car Ijarah as 0.05 3 0.15
compare to other banks.
9. All products are Riba-Free products. 0.05 4 0.20
10. Trained staff. 0.04 3 0.12
Weaknesses
1. Limited scope of Islamic Banking products 0.01 1 0.01
2. Limited money market operations due to 0.05 2 0.10
lack of Shariah compliant government
securities. 0.05 1 0.05
3. Skepticism about the Shariah compatible
banking products 0.05 1 0.05
4. Small branch network and the high cost of
building a network 0.05 2 0.10
5. Inability to fixed rates of return on deposits,
due to Shariah constraint. 0.06 1 0.06
6. Small capital base limits ability to deal with
multi-nationals/large corporate. 0.05 1 0.05
7. Limited marketing /Lack of advertisement. 0.05 1 0.05
8. No facility traveler’s cheques. 0.04 2 0.08
9. No credit card facility. 0.04 1 0.04
10. Unable to capture market even after
launching the highest number of products.
Total 1.00 2.33
1 = major weakness, 2 = minor weakness, 3 = minor strength and 4 = major strength.
The total weighted score of 2.33 indicates that Meezan bank is “Below Average” in its
overall internal strength.
Stage 2: The Matching Stage
3.6.2.1 The Threats-Opportunities-Weaknesses-
Strengths (TOWS) Matrix
The Threats-Opportunities-Weaknesses-Strengths (TOWS) is also named as SWOT
analysis. A TWOS Analysis is a strategic planning tool used to evaluate the Threats,
Opportunities and strengths, Weaknesses, involved in a project or in a business venture
or in any other situation requiring a decision. This is an important tool in order to
formulate strategy. This Matrix is an important matching tool that helps managers
develops four types of strategies: SO Strategies (strength-opportunities), WO Strategies
(weakness- opportunities), ST Strategies (strength-threats), and WT Strategies
(weakness-threats).The most difficult part of TOWS matrix is to match internal and
external factor. Once the objective has been identified, TOWS are discovered and listed.
TOWS are defined precisely as follows:
Strengths are attributes of the organization that are helpful to the achievement of the
objective.
Weaknesses are attributes of the organization that are harmful to the achievement of the
objective.
Opportunities are external conditions that are helpful to the achievement of the
objective.
Threats are external conditions that are harmful to the achievement of the objective.
Strengths and weaknesses are internal factors. For example, strength could be your
specialist marketing expertise. A weakness could be the lack of a new product.
Opportunities and threats are external factors. For example, an opportunity could be a
developing distribution channel such as the Internet, or changing consumer lifestyles that
potentially increase demand for a company's products. A threat could be a new
competitor in an important existing market or a technological change that makes existing
products potentially obsolete. It is worth pointing out that SWOT analysis can be very
subjective - two people rarely come-up with the same version of a SWOT analysis even
when given the same information about the same business and its environment.
Accordingly, SWOT analysis is best used as a guide and not a prescription. Adding and
weighting criteria to each factor increases the validity of the analysis.
SO Strategies: Every firm desires to obtain benefit form its resources such benefit can
only be obtained if utilize its strength to take external opportunity. Resources (Assets) an
important firm’s strength to get opportunity for external resources. For example the firm
enjoying a good financial position which is strength for a firm and externally opportunity
to expand business. The strong financial position provides an opportunity to expand the
business. The matched strategy is known as SO strategy.
WO Strategies: WO Strategies developed to match weakness with opportunities of the
firm. WO strategy is very useful if the firm take advantage to external resources in order
to overcome the weakness. For example the firm is in the critical financial problems that
is weakness and firm is availing merger with Multinational Corporation.
ST Strategies: ST Strategies is an important strategy to overcome external threats. This
does not mean that a strong organization should always meet threats in the external
environment head-on. This strategy is adopted by various colleges by opening new
branches in order to overcome competitive thereat. These threats also explain by the
Porter in its competitive model.
WT Strategies Every firm has a desire to overcome its weakness and reducing threats.
This type of strategy helpful when weaknesses are removed to overcome external threats.
It is difficult to target WT strategy. For example weak distribution network creating many
problems for the firm if it strong many external threats can be removed.
Steps for developing strategies:
There are eight steps involved in constructing a TOWS Matrix:
1. Rank external opportunities
2. Rank external threats
3. Rank internal strength
4. Rank internal weaknesses.
5. Match internal strengths with external opportunities and mention the result in the SO
Strategies cell.
6. Match internal weaknesses with external opportunities and mention the result in the
WO Strategies cell.
7. Match internal strengths with external threats and mention the result in the ST
Strategies cell.
8. Match internal weaknesses with external threats and mention the result in the WT
strategies cell.
+20
Star Question Marks
Market Growth Rate
s
Rupee Current Account Dollar Saving Account
Rupee Saving Account Certificate of Islamic Investment
Meezan Amdan Certificate
0
-20
Cash Cows Dog
To enhance its market share it should
Karobari go Account
Munafa for: MeezanProvidence
Monthly Mudarbah Certificate Monthly Dollar Mudarabah
Market penetration Certificate
Weaknesses
1.Limited scope of Islamic Banking 0.01
products 2 0.02 2 0.04
2.Limited money market operations due to 0.05
lack of Shariah compliant government 2 0.10 1 0.05
securities. 0.05
3.Skepticism about the Shariah compatible 3 0.15 2 0.10
banking products 0.05
4. Small branch network and the high cost 2 0.10 2 0.10
of building a network 0.05
5. Inability to fixed rates of return on 3 0.15 3 0.15
deposits, due to Shariah constraint. 0.06
6.Small capital base limits ability to deal 2 0.12 1 0.06
with multi-nationals/large corporates.
0.05
7.Limited marketing /Lack of 2 0.10 2 0.10
advertisement.
0.05
8.No facility traveler’s cheques.
0.04
9. No credit card facility. 3 0.15 2 0.10
0.04
10.Unable to capture market even after 2 0.08 1 0.04
launching the highest number of products. 2 0.08 2 0.08