Name: Faiq Khalid

Registration No: 46006

Subject: Strategic Management

Answer no 1:

There was a time when PIA was successful and it was one of the finest airlines in the world.
Now it is the worlds 3rd worst airline it glided into sorry state of affairs as follows.

PIA poor management decisions and coming of competitors and new airlines in airline
industries were the major reasons of declining PIA business in the 1990s. Once among the
top airlines, PIA has finished its Washington administrations in 1990s, Houston in 2006,
Chicago in 2012, while the New York administration finished in 2017. Presently, PIA is a
burden for Pakistan. After 2001 PIA only showed profit in 2002 and 2004 period it has also
suffered from increase in fuel costs and lack of capital when it needed the most with no
proper government support in 2001 it made a profit of 1.2 billion but the loss was greater 2.2
billion and Rs 35.88b was the loss PIA faced in 2008 the highest all the debts were locked in
dollars and the depreciation of rupee was not foreseen at that time. More over PIA is now
become unsafe for passengers due to many plane crashes around many cities and world
people are afraid in sitting in PIA planes and they choose other airlines and this is also a
reason of declining of PIA .

Answer no 2:

PESTEL model includes factors like political, social, economic, technological, legal and
environmental factors that significantly affect the working of PIA

 To regrow once again PIA has critical chances, to fix their tax assessment and
managerial approaches through the most recent corrections under the decision
government with less political impedance for individual methods.
 Economical changes can happen in PIA because of the new changes in oil costs..
 There can be downfall in the purchasing sector with the passage of time with
decreased per capita income.
 Everything is improved and modernized as per quality the world is adapting changes
as per new techniques are developed, thus the choices of customers are also rapidly
changing with the new system and there demand for the service providers and
manufacturers.
 To stand the PIA in however top global carriers selection of new advances and most
recent airplanes ought to be thought of..
 One of the major concerns are the safety and security precautions and guidelines.
 As of 2022, Emirates Air Blue and Shaheen Air are disturbing to the matter of PIA as
they are extreme contenders. Due to the crashes a very bad image of PIA has been
built in the market, domestic as well as international customers.
 A big market lost by PIA can be observed by huge number of people moving abroad
now prefer other high class international service because of the non safety measures
of PIA.
Answer no 3:

Problem Statement:

PIA is facing loss from many years it is not generating enough estimated debt in 2019
recorded Rs 464 billion it has bigger domestic and international share. Other factors are
increasing fuel prices which are increasing day by day and have to pay in dollars while tickets
are purchased in rupees and the gap of currency is also a loss to PIA. Conditions of the planes
are very bad which needs repeated maintenance some planes of PIA are grounded due to bad
condition and the flight gets delayed or meet accidents and passengers are afraid of getting
flight from PIA in this way PIA is losing its passengers. Poor management lacks of
monitoring are also the major problems.

Strategies/Recommendations:

PIA should not discourage its loyal passengers with their negative attitude, Prices should be
matched with other competitive airlines food quality should be improved, All planes must be
upgraded with proper maintenance, no of flights should be increased to meet the demands
fleet size should be increased by adding new planes and government interference should not
be there.

PIA must hold hands and get partnership, which can support constantly PIA,

Implementation

By diminishing the workplaces and operational expenses close by rightsizing. Laying off the
extra staff and reconstructing of anticipated that staff should their as of late appointed
positions reliant on their and ability, this can bring a change moving the far discovered
working environments and give satisfactory powerful experts to accept accountability and
lead given that high noticing checkers to be presented and definite separately.

Keeping in view that the middle objective of this whole exercise is to experience this short
season of belt-fixing that will allow the PIA to furthermore expand and create with a proper
advancement methodology, at some point or another nearby in future.

Answer no 4:

Strategic recommendations.

1. In spite of the fact that PIA is following low pricing technique yet the costs are high from
other nearby carriers which should be engaged as a developing interest of market.

2. With increased in facilities PIA can increase its customer’s loyalty to increase their repeat
travels which is low.

3. According to market analysts global airline industry will gain uplift in the next few years
due to global movement of industries and PIA can get benefit by increasing demand.

4. Accidental situations can impact worst on the brand name of PIA which will result
decreasing revenue PIA must set the standard of their aero planes, High maintenance and
must do regular checkups on engines and other things.
5. To improve Quality in its services, PIA must go for variety in its food, entertainment, and
other in house facilities to retain current customers.

6. making it politics free will also help the way forward for PIA.

7. PIA must introduce surveys and feedback programs from the customers in order to
improve its services and staff.

8. PIA needs to keep strong check and balance in order to prevent themselves from issues like
corruption.

9. Making their customer services good like Food, refreshments and entertainment.

10. Promote their business by electronic and print media held training secessions..