……..University.Of.Central.

Punjab
………
Business policy

Assignment no 3

Submitted By:
ZAHID IQBAL
L1F08MBBF2030
FAISAL FAIZ
L1F08MBBF0028
MUHAMMAD USAMA
L1F08MBBF1049
SYED JAWAD A
L1F09MBBF0041

Submitted To:
Prof: Nasir Riaz
 Report on Company analysis
“Body Shop”
A: Make EFE Matrix of the company (use list of
opportunities and threats from Assinment#2) and intrpret
iits Result.

KEY EXTERNAL FACTORS

WEIGTD
Opportunities WEIGHT RATING SCORE

1. The portion in l transportation is very high

with respect to land or maritime 0.12 3 0.36
transportation. pakistan domestic
transportation market is 48 percent less than
that of European counterparts.

2. The low passenger loadings and low

marketing and distribution expenses are
some of the important opportunities that 0.06 3 0.18
TA holds. It is anticipated that TA will
increase its present 69 percent passenger
loading percentage to 71 percent in 2007 and to
73 percent in 2010.

3. Due to the direct relation and interaction

among the industries of tourism and 0.10 4 0.40
transportation, the opportunity of integrating
tourist activities and domestic air network
which is developed in recent years has arisen.

4. In addition to the tax reductions in ticket

fees, the grant providing the freedom of self 0.07 2 0.14
pricing for airway companies resulted in the
opportunity of offering lower prices for the
corresponding firms.
5. Though not all of them are operating, the
existence of many transporter in Pakistan part
of the country which has inconvenient 0.08 2 0.16
topographic structure provides the advantages
of responding the rapid demand for air
transportation, and widening the network in
national scales.
6. Through the EU integration process the
adoption of EU standards concerning aviation
security and safety in journey will be 0.04 3 0.12
provided. Hence, the security will be
increased and the robust development. .
7. The domestic passenger density in 0.12 2 0.24
January 2006 has grown 35 percent compared
to January, 2005.
Threats
1. There are five firms except TA operating in
the industry. It is expected that the new firms 0.12 2 0.24
will enter the industry and that will increase
competition, which is presently highly
competitive in the industry.
2. The rapid and unplanned growth in the
industry increased the vacant positions for 0.06 4 0.24
licensed staff needed, and training institutions
could not respond vacancies resulting from this
rapid growth.

3. The rise of fuel prices in the world and the

excess taxes on the fuel prices in Turkey: the
fuel costs are very essential in pricing process 0.09 2 0.18
of the tickets. The recent increase in fuel prices
all over the world has negative effects
on transportation.
4. pakistan have borders to the Middle East
countries, the battle and political turmoil in this
region and the uncertainty in geopolitics will 0.07 1 0.07
negatively affect the Turkish aviation which
is operating so close to the corresponding
region, consequently can be a barrier to the
development of tourism and air transportation.
5. In order to survive, the low scale aviation
companies added small sized aircrafts to their
fleets. Additionally, for the sake of lower 0.07 2 0.14
prices, different flight alternatives for
different levels of economic conditions have
been presented. A lot of new buses routes
Total 1 2.47
B: Identify and make the list of CSF’s of the
Industry.

List of CSF’s:
The main critical success factors (CSF’s) of personal care Products Indusrty are given below:

 Advertising.
 Product Quality.
 Price Competitiveness.
 Management.
 Financial Position.
 Customer Loyalty.
 Global Expansion.

 Market Share.
C: Identify Company’s Major Competitors And make
CPM.
Principal Competitors:

 DAEWOO

 FAISAL MOVER

 NIAZI EXPRESS
  REHBAR

CPM
Competitive Profile Matrix for the Daewoo, faisal mover and niazi
express in Pakistan Transportation.

DAEWOO FAISAL NAIZI REHBAR

MOVER EXPRESS
RATING

RATING

SCORE

RATING

SCORE
SCORE

RATING

SCORE
WEIGHT

CRITICAL
SUCCESS
FACTORS

Advertising 0.08 2 0.16 2 0.16 3 0.24 3 0.24

Product Quality 0.14 4 0.56 2 0.28 3 0.42 3 0.42

Price 0.09 3 0.27 4 0.36 3 0.27 3 0.27

Competitiveness
Management 0.05 3 0.15 4 0.20 4 0.20 3 0.15

Customer 0.12 4 0.48 3 0.36 2 0.24 3 0.36

Loyalty
Market Share 0.20 4 0.80 3 0.60 2 0.40 3 0.60

Customer 0.02 4 0.08 1 0.02 2 0.04 3 0.06

Service
E-commerce 0.10 2 0.20 3 0.30 4 0.40 3 0.30

Management 0.05 4 0.20 3 0.15 2 0.10 2 0.10

Experience

Brandi 0.15 3 0.45 1 0.15 4 0.60 2 0.30

ng
TOTAL 1 3.35 2.58 2.91 2.80
D: Perform strategic internal Audit of the
company of the following departments as per
the guidelines given in the prescribed text
book.

The Internal Auditors recommends the following steps while building an

internal audit of any department of company

1. Establish the authority of the internal audit activity. Review the definition of
internal auditing and the International Standards for the Professional Practice of Internal
Auditing (Standards) to become familiar with what is required.

2. Interview senior management and board of directors/audit committee chairmen to build

rapport, ensure senior management has a clear picture of the internal audit function, and
clarify expectations and responsibilities of all.

3. Obtain and review the audit committee charter.

4. Understand benchmarking needs (e.g., industry, specialty groups, organizations with

same staff size, etc.).

5. Obtain and review written organizational policies and procedures, especially the policy
pertaining to management’s responsibility to control the organization.

6. Discuss with external auditors open and closed internal control issues, which may have
been identified during their reviews (see Practice Advisory (PA) 1210.A1-1: Obtaining
External Service Providers to Support or Complement the Internal Audit Activity).

7. Develop the “audit universe,” or the list of all auditable entities.

8. Map major processes and operations within the organization. Meet with operations
managers, including those in IT, to understand their risks and concerns.

9. Perform a risk assessment at the macro-level, which includes both external and internal
risk factors (see Standard 2120: Risk Management).

10. Develop an internal audit charter and have both senior management and the audit
committee review and approve it. Information on audit charters can be found within the
International Professional Practices Framework, Standard 1000: Purpose, Authority, and
Responsibility, and PA 1000-1: Internal Audit Charter.

11. Build the budget, including personnel and travel.

12. Develop an audit plan based on a risk assessment. The percentage of the plan that
can be completed in the allotted time period (usually a year) will depend on the risks
identified and the internal audit resources and staff. Always leave time in your audit plan
(usually 10 percent) for management requests.

13. Hire staff and develop a plan for staff training. Ensure that staff covers the range
of expertise needed based on the risk assessment. Consider outsourcing portions of the
audit plan to outside service providers or using professionals internal to the organization.

14. Ensure that senior management notifies other departments of internal auditing’s
existence and calls for complete cooperation.

15. Work with management to establish best practice reporting relationships, ensure
internal auditing is promoted throughout the organization, and develop a methodology for
following up on audit recommendations and measuring performance (see Standard 1100:
Independence and Objectivity, Standard 1110: Organizational Independence, and PA 1110-
1: Organizational Independence).

16. Establish a quality assurance program (see Standard 1311: Internal Assessments
and Standard 1312: External Assessments).
E: Complete Internal Audit And make the list of key
Strengths And weaknesses of the company.

Strengths:

 Shopping according to customer needs.

 Key Oriented.
 Financial Position.
 Brand Image.
 Wide range of services.

Weaknesses:

 Lack of formal mission statement.

 Slowing speed of the depart lines.
 Do not have any research and development facility.
 Body shop’s top management is dominated.
 Undifferentiated products and services.

Table 7. Factors that Make Up the SPACE Matrix Axes for the Turkish
Airlines on Domestic Air Transportation
INTERNAL STRATEGIC POSITION EXTERNAL STRATEGIC
Financial Strength (FS) Rating Environmental Stability (ES) Rating
From 2010 to 2011, EBITDA 2 Inflation fell about 17 -2
Margin decreased from 12.63 percent in 2011 in
percent to 10.56 percent.

In 2011, total assets increased There has been increase in

to 4.599 USd and recorded an 4 the effective use of aerial -3
increase of 20.6 percent transportation in domestic
compared to 2010 tourism.

Firm is strong financially in
comparison to competitors.
In 2006, Shareholder’s equity
increased to
1.609 million USD with a 28.9
percent
increase with respect to 2005.
From 2005 to 2006, Current
Ratio increased from 0.69
percent to 0.80 percent.
Total
Competitive Advantage (CA)
The company holds 60 percent
share of market in domestic
scale.
From 2010 to December 2011,
seat capacity increased by 24
percent.
With the inclusion of 25 new
generation planes, the average
age of planes in the fleet
decreased to 7, 3 years, and the
number of planes rose by 24.4
percent and reached to 103.
The number of staff reduced
by 25 percent from 2002 to
present.
In all offices and agents of
the firm the “e- ticket” sales
service is available.
The level of competition has
increased
3 by the inclusion of low seat -4
capacity small aircrafts with
low prices by private firms
in the industry.
Except TA there are five
more
3 companies operating in the -5
domestic
market and in the
foreseeable future it is
anticipated that new
entrants to the market will
2 The pressure from -4
competitors is very high
14 Total -18
Rating Industry Strength (IS) Rating
In 2011, 80 percent of
-3 total revenues were 6
coming from earnings
from passengers.
In 2011, the 2000 passenger
-2 pbuses, 150 cargo buses and 3
capacity of 38 thousand
passengers.
In cargo transportation,
through the
-2 years 2002 and 2005, there 4
was 74 percent increase in
domestic cargo industry and
by September 2005, a total
capacity of 1.041.623 tones
of cargo was reached.
There are 70 airports that
-4 are available for domestic 4
industry; this is an
advantage for rapidly
responding to increasing
-1 The aviation sector is 2
negatively affected
due to terrorist
attacks.
 Total -12 Total 19

F: Make IFE Matrix of the company and

interpret its result.

KEY INTERNAL FACTORS

WEIGHT
Strengths WEIGH RATING ED
T SCORE
1. In 2006, TA won second standing in one of
the AEA service quality evaluation criteria 0.10 2 0.20
concerning proportion of “on time departures” in
total departures, via achieving a proportion of 83,9
percent.

2.qualified to take the world’s # 1 certificate called

as IOSA, concerning airport security management 0.08 3 0.24
given by IATA.

3. In December 2006, decided to join to the

biggest chain in pakistan 0.09 3 0.27

4. All of TA domestic offices and agents passed to 0.07 4 0.28

the e- ticket system.

5. transported 8.9 million passengers in domestic 0.06 3 0.18

flights, in 2006, which is 23.8 percent higher than
previous year.

6. Through the period between January and 0.06 3 0.18

December 2006, parallel to the growth in fleet;
increased its staff by 37.3 percent.

7. In the period of 2006, transported 159,873 tones 0.05 2 0.10

of cargo, which is 10 percent higher than 2005
figure, additionally; the revenue gathered from cargo
has increased
8. In June 2006, TA qualified for ISO 9001:2000 0.06 3 0.18
Quality Certificate.

9. With the inclusion of 25 new generation planes,

the average age of planes in the fleet decreased to 7,3 0.12 3 0.36
years, and the number of planes rose by 24.4
percent and reached to
103 in number. 0.07 2 0.14
10. can provide education and training to its own
pilots.
Weaknesses
1. The irrational prices determined by rivals
and rapid increase in passenger capacity caused less 0.08 2 0.16
income margins in
2006.

2. Depending upon the increase in number of

planes financed by leasing, the lease expenditure 0.04 2 0.08
increased 65 percent and reached to 34 million USD.

3. Income from operations, which was 89 million

USD in2005, has reduced to 22 million by the 0.04 1 0.04
effect of 9 percent increase in operational expenses.

4. Despite 17 percent increase in consumption of

fuel, 49 percent increase of fuel expenses with 0.06 2 0.12
respect to dollars affected EBITDA margin
negatively.

5. There is not Enterprise Resource Planning

0.02 2 0.04
software the company uses.

Total 1 2.57
G: Make CPM of the company with its closest
competiotors:

DAEWOO FAISAL NAIZI REHBAR

MOVER EXPRESS

RATING

RATING

SCORE

RATING

SCORE
SCORE

RATING

SCORE
WEIGHT
CRITICAL
SUCCESS
FACTORS

Advertising 0.08 2 0.16 2 0.16 3 0.24 3 0.24

Product Quality 0.14 4 0.56 2 0.28 3 0.42 3 0.42

Price 0.09 3 0.27 4 0.36 3 0.27 3 0.27

Competitiveness
Management 0.05 3 0.15 4 0.20 4 0.20 3 0.15

Customer 0.12 4 0.48 3 0.36 2 0.24 3 0.36

Loyalty
Market Share 0.20 4 0.80 3 0.60 2 0.40 3 0.60

Customer 0.02 4 0.08 1 0.02 2 0.04 3 0.06

Service
E-commerce 0.10 2 0.20 3 0.30 4 0.40 3 0.30

Management 0.05 4 0.20 3 0.15 2 0.10 2 0.10

Experience

Brandi 0.15 3 0.45 1 0.15 4 0.60 2 0.30

ng
TOTA 1 3.35 2.58 2.91 2.80
L
H: Make SWOT anaysis of the company and
interpret its overall findings

Findings
Strengths
• Brand Loyalty – is greatly dependent on its brand reputation which is a
critical factor in sales. Due to its unique products, it has come out to be seen
as one of the most environmentally friendly retailers.

• L’Oreal’s support – By being a subsidiary of L’Oreal, Body Shop appears to

have an increase in sales. Furthermore, L’Oreal’s experience in
advertisement and marketing can boost overall sales.

• Niche marketing – daewoo targets a niche market. By stating that it is not

testing its products on animals and by appearing to have an ecological
profile, it has appealed to customers with ethical issues. Being the only shop
in the shopping centre that sells ecological products, has given it advantage
in the local market.

• Charity support - daewoo provides financial aid in charities by giving small

amount of money from particular products they sell. Body Shop’s support in
local charities and non-profit organizations enhances its image in the local
society.

• Timely arrival at the destination/

• Convenience in travelling
• Safe journey
• Refreshment

Weaknesses
booking process is very time consuming and the staff is not good as it
should be..
Opportunities
it has a lot of opportunities just like its large size it can improve in
service and can also increase its infrastructure as well
Threats
the only threat to it is its competitor it the markets
 Recommendations
Preserving a good image:

• The management should inform the employees how to handle and treat
the customer in the complex situation in order to make good image in rthe
mind of the people about its services.
Improved services:

• Faster services should be provided to the customers either by hiring more

employees or by improving their own efficiency so as to achieve better
financial outcome.

Conclusion
Sammi Daewoo assures its passengers a safe & secure journey. For this purpose a separate
Security Department is working with highly professional staff. Almost all staff members are Ex-
Army officials. The best way to ensure the most reliable security is to put the best possible
candidate for the job in the position. That's why the Security Department uses an extensive
screening process when hiring and continues with intensive candidate evaluation for specific
jobs.

The Security Department is committed to deliver quality security services to our passengers
through defined procedures and measures. We have formalized and automated systems that
enable us for effective and efficient results.there are some benefits which are provided to
customer in case of any damage just life insurance of each passenger,armed guard and movie
capturing and carry on baggage is checked before departure for the purpose of secsurity