Strategic Management

Education Local Organization: Bahria University Islamabad

BY. Sajeela Rabbani & Nida kamal

Industry:

Bahria University
Bahria University was established by the Pakistan Navy in 2000, and since then it has slowly and steadily grown into one of the leading higher education institutions in Pakistan. It all started in the late nineteen-eighties when the Pakistan Navy entered the field of education and established two Institutes, one at Karachi and the other at Islamabad, and called them Bahria Institutes Over the years the two Institutes grew in size and facilities, leading to the commencement of BBA and B.Sc (CS) classes in 1995. In 1997 these programmes were further upgraded to BBA (Hons), BSC (Hons) and MBA and MSC, as evening programmes. The Institutes were known as Bahria Institute of Management and Computer Science (BIM&CS), with the location of Karachi and Islamabad.

 The Institute was finally upgraded to a university, the present Bahria University, on 7 February 2000 through a Presidential Ordnance. Bahria is a multi-campus university, which has its headquarters and a campus at Islamabad, while another campus and constituent units are located in Karachi. The universitys total student population, including those of its affiliated units, has been growing steadily and now hovers around 9,500.

Bahria University Vision Statement

The vision is to consolidate all its efforts to create an education system that would be capable of providing state of the art facilities for quality education to the population of Pakistan with out any prejudice of class, creed, color or domicile. Characteristics of Vision

Broad in scope Less in words Show ethics

Catchy for Stake holders

Bahria University Mission Statement

Bahria University is a multi-campus institution of higher education, which will remain committed to the attainment of highest standards in teaching, learning and research. The scholars and professionals it produces will be encouraged to pursue truth, civility and integrity. In pursuing this mission, the University has following objectives: Establish Campuses, Research Institutes, Schools and Colleges across the length and breadth of Pakistan to turn the rapidly increasing population into knowledge based force. Prepare the younger generation to become future leaders and managers for a prosperous and educated Pakistan, through development of their physical, mental, moral and professional strengths. Ensure academic excellence through quality education in disciplined and peaceful learning environments. To offer students the benefits of intellectual challenge, and to nurture skills and qualities they need for their professional careers ahead and to enable them to achieve full potential as individuals. Constantly monitor and upgrade facilities and update the curricula to keep pace with the emerging trends and technologies. Coordinate and provide facilities for exchange of knowledge and applied research in the newly emerging fields in collaboration with national and international Universities and Research Institutions.

Components of the Mission Statement

Survival Growth Profitability

Technology

Philosophy

Markets

SelfConcept

Product or Services

Public Image

customer

components

Employees

Characteristics of Mission
Broad Scope Less than 250 words All 9 components present Concern for environment Inspiring Identify utility of the product/Service Enduring Social Responsibility

1
STRATEGY ANALYSIS
IFE MATRIX

EFE MATIX
CP MATRIX

INTERNAL ANALYSIS OF BAHRIA UNIVERSITY

Strengths
Top ranked University
According to the HEC, Bahria is one of the top ranked Pakistani university among institutions that offer degrees in Business Management and Computer Sciences.

Forces Administration
As it is administered by Navy, and most of the administration comprises of the ex-navy officials, the university is perceived to be adequately administered and to have a disciplined environment.

Quality of faculty
The quality of faculty at BU is also one of major strengths. Faculty members have the knowledge and skill that they use to challenge their students in the classrooms and in the exams.

Financial Aid
B.U provides financial aid to the deserving students in order to maximize its outreach The university claims that it gives over 50 students merit scholarship each semester And 10 to 15 students need based financial assistance Scholarships are typically awarded on merit or extremely high need. Some forms of financial assistance available to students are as follows:

Merit Scholarship Given to the top students on the admission merit list at the time of admission.

Semester Scholarships Granted to students in all programs with excellent academic performance and genuine need for financial aid

 Library
The library has collection of over 200,000 books.

475 print journals

35,000 E-Journals

69 online databases

It also has received library of the year award 2011 from HEC Program Structure:
The way the BU structures its program is one of the basics strengths that help in enhancement of student learning and individual development. Focus is not just on working hard but also to think analytically and to solve problems.

Learning Environment :
BU has created an environment of learning even outside the classroom by engaging students in lectures, seminars, conferences, sports, theatre and many other forms of co-curricular activities. This learning outside the classroom is as important as learning in the classroom

 Market Repute
BU has considerably good market repute in terms of acceptability of degree and graduate performance in organizations.

Variety of Departments
BU has management science, computer science, engineering, social sciences, medical college (Karachi.) along with a recently inaugurated Law department

Location and proximity to the customers

BU is located at the centre of Islamabad making it easy to access.

Weaknesses of BU
Lack of Teachers in Engineering and Computer Science Department
There are not enough teachers available in engineering depts.

Accommodation
The University cannot assure accommodation to applicants and students.

Research Orientation
There is very less R&D process for introduction of new means and approaches to learning . Also Rigor in lacking in research projects that students conduct.

Less number of Campuses

Only Located in Islamabad and Karachi

Minimum networking opportunities

Internal Factor Evaluation Matrix

IFE matrix is the internal audit of an organization. This strategic management tool evaluates and summarizes the major strength and weaknesses of BU The weights are industry based and ratings represent the effectiveness of firms strategy Interpretation of ratings: 4 = superior response (major strength); 3 = above average response (minor strength); 2 = average response (minor weakness) and 1 = poor response. (major weakness)

Internal Factor Evaluation Matrix

INTERNAL STRENGTHS
Ranking Quality of faculty Library Environment Programs Financial Aid Programmes Structure Building of high performance teams Culture Student Societies Research work Learning Environment INTERNAL WEAKNESSES Lack of Teachers in Engineering Department No proper sitting places Less Courses
WEIGHTS .1 .15 .1 .02 .01 .1 .1 .05 .02 .02 .03 .07 WEIGHTS .08 .05 0.05 RATINGS 3 3 3 4 3 4 3 3 4 2 2 3 RATINGS 1 2 WEIGHTED SCORE 0.3 0.45

0.3
.08 .03 .4 .3 0.15 .08 .04 .06 .21 WEIGHTED SCORE .08 .1

2
2

0.1
.1
2.78

Accommodation
TOTAL

.05
1

EXTERNAL ANALYSIS FOR BAHRIA UNIVERSITY

OPPORTUNITIES

Research and Development: In Pakistan there is no contribution in R&D from many Decades. As BU offers different programs, so it can be an opportunity for BU to convey knowledge about Innovations, new methods, and techniques. New programs: As it is providing a quality education to their students. It can also offer some new programs like Medical education in Islamabad or some technical education etc to increase its market share. More campuses: BU has only two campuses in Pakistan. It should build a new campus in order to accommodate more students so that they can have easy access and quality education

 Moving in other regions As BU is the leading university it has an opportunity to move to other regions and focus on different cities in Pakistan Introduce Incentive program: It should offer incentive program or courses for their faculty member, so they can enhance their knowledge and skills within the institute. Recreational activities: For the betterment or refreshment of their students it should conduct some recreational activities once in a semester. It also builds a good image of it among its competitors.

Transportation facilities BU should provide transport facility to their students and staff for

THREATS
Competitors: Its major competitor like, NUST, Comsats, AIR and Islamic University is trying to reach up to the standards and are involving themselves to provide more highly tech- environment to their students. Government Policies: Every organization face challenges due to change in Govt. Polices. It brings new opportunities and threats for them. In educational institutions this factors have greater value. As most of their strategies, policies, decisions, rely on Government behavior. Reliance on Temporary Faculty: For BU it seems to be a threat to more reliance on temporary faculty. As it can reduce their efficiency, goodwill or quality of education among students or other institutions.

 Internal environment BU internal environment is quite modernized and advance may be due to the reason that many foreigners are their too and there is no restriction over there. Sometimes that is a threat for LUMS many rumors also arise related to its environment that are not suitable as far as our religion is concerned

Marketing & recruitment by competitors: Comparing to its competitor, they are performing more marketing efforts or publicity of their institutions. So for a success or survival in a market BU should do some promotion activities.

EXTERNAL FACTOR EVALUATION MATRIX (EFE)

Internal Factor Evaluation (IFE) matrix is a strategic management tool for auditing or evaluating major strengths and weaknesses in functional areas of a business IFE matrix also provides a basis for identifying and evaluating relationships among functional areas. The Internal Factor Evaluation matrix or short IFE matrix is used in strategy formulation.
Rating is applied to each factor. The response is poor represented by 1.0 The response is average is represented by 2.0 The response is above average represented by 3.0 The response is superior represented by 4.0

EFE
OF BAHRIA UNIVERSITY
NO`S
1 2 3 4 5 6 7 8

OPPORTUNITIES Research and Development Innovation in education New programs More campuses Moving to other region Introduce Incentive program Recreational activities Transportation facilities

WEIGHTS
0.08 0.05 0.06 0.04 0.07 0.08 0.05 0.07

RATING 3 3 3 1 1 2 2 1 RATING 2 2 3 4 3 3

WEIGHTED SCORE
0.24 0.15 0.18 0.04 0.07 0.16 0.1 0.07

NO`S
1 2 3 4

THREATS highly tech- environment by competitors Economic Consequences Reliance on Temporary Faculty Government Policies Marketing & recruitment by competitors Internal environment TOTAL

WEIGHTS
0.04 0.05 0.04 0.03

WEIGHTED SCORE
0.08 0.1 0.12 0.12

5
6

0.06
0.05

0.18
0.1

1.00

1.71

COMPETITIVE ANALYSIS

Competitive profile matrix (CPM)

Competitive profile matrix is an essential strategic management tool to compare the firm with the major players of the industry. Competitive profile matrix show the clear picture to the firm about their strong points and weak points relative to their competitors. The CPM score is measured on basis of critical success factors, each factor is measured in same scale mean the weight remain same for every firm only rating varies.

Rating is applied to each factor like:

The response is poor represented by 1.0 The response is average is represented by 2.0 The response is above average represented by 3.0 The response is superior represented by 4.0

Competitive profile matrix (CPM)

BAHRIA
Critical Success Factors
Faculty
Library Transportation Hostel accommodation Weight
0.17
0.05

NUST
Rating
3
3

COMSATS
Rating
3
3

Rating
3
3

score
0.51
0.15

score
0.51
0.15

score
0.51
0.15

0.07

0.14

0.14

0.21

0.09

0.09

0.36

0.27

Campus Facility
Security Scholarship Degree programs Administration/management Enrolment Emergency medical centre Total

0.07

0.14

0.14

0.28

0.08

0.24

0.32

0.16

0.13

0.39

0.26

0.39

0.12

0.36

0.36

0.48

0.08

0.24

0.24

0.16

0.08

0.24

0.24

0.32

0.06

0.18

0.18

0.12

1.00

2.68

2.85

3.01

2 MATCHING
SWOT MATRIX SPACE MATRIX BCG MATRIX GSM MATRIX

SWOT
SWOT is as an acronym for Strengths, Weaknesses, Opportunities, and Threats. These four factors make up the SWOT MATRIX.
A SWOT analysis can be used to measure an organization's competencies and identify opportunities to taken by business management in the future. In SWOT we match internal strengths and weaknesses with external opportunities and threats

STRENGTHS

WEAKNESSES
1. 2. 3. 4. Lack of Teachers in Engineering Department No proper strictness on dresses Accommodation Less Courses

SWOT
OPPORTUNITIES
1. 2. 3. 4. 5. 6. 7.
8.

1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Ranking Quality of faculty Library Environment Programs Financial Aid Programmes Structure Building of high performance teams Culture Learning Environment

11.

Research work Student Societies

SO Strategies
1. 2. 3. Provide faculty scholarships(S6,O3) Introduce new programmes(S7,O6) Develop new researchers (S11,O8) 2. 1.

WO Strategies
Make new campuses with existing programmes(W1,05) Innovate programmes (W4,O7)

Transportation facilities Recreational activities Introduce Incentive program Moving to other region More campuses New programs Innovation in education
Research and Development

THREATS
1. 2. 3. 4. 5. highly tech- environment by competitors Marketing & recruitment by competitors Government Policies Reliance on Temporary Faculty Economic Consequences

ST Strategies
1. 2. Start new hiring programmes(S2,T2) Improve learning environment (S10,T6) 1. 2.

WT Strategies
Hire new teachers of Engineering(W1,T2) Offer new low cost courses/Diplomas(W4,T5)

SPACE
The SPACE matrix is a management tool used to analyze a company. It is used to determine what type of a strategy a company should undertake. The Strategic Position & Action Evaluation matrix or short a SPACE matrix is a strategic management tool that focuses on strategy formulation especially as related to the competitive position of an organization. The SPACE matrix can be used as a basis for other analyses, such as the SWOT analysis, BCG Matrix, industry analysis, or assessing strategic alternatives.

SPACE
Internal Factors : Financial Strength Competitive Advantage External Factors : Industry Strength

FS & IS Values : +1 Worst to +6 Best CA & ES Values : -1 Best to -6 Worst

Environmental Stability

Financial Strengths
Financial aid Revenues Cash flows 5 4 3 4

Competitive Advantage
Naval Background -2

Technology used
Faculty Security

-3
-2 -1 -2

Industrial Strengths
Growth in Education Technology advancement Trend of higher education 5 5 5 5

Environmental Stability
Demand of education Growth in Education sector Less risk in profits -1 -2 -2 -2.5

SPACE
X-Axis=IS + CA= 5+(-2)=3 Y-Axis=FS+ES=4+(-2.5)=1.5

FS
8
7 6 5 4 3 2 1

Aggressive Strategies
Integration Market Penetration Market Development Diversification

CA
-8 -7 -6 -5 -4 -3 -2 -1
-1 -2 -3 -4 -5 -6 -7 -8

IS
1

ES

BCG
The BCG matrix, Boston Consulting group analysis is a chart that had been created to help firms with analyzing their business units or product lines. This helps the company allocate resources and is used as an analytical tool in brand marketing, product management, Strategic management, and portfolio analysis.
Stars are units with a high market share in a fast-growing industry. Question marks are growing rapidly and thus consume large amounts of cash, but because they have low market shares they do not generate much cash Cash cows are units with high market share in a slow-growing industry. These units typically generate cash in excess of the amount of cash needed to maintain the business. Dogs are units with low market share in a mature, slow-growing industry. These units typically "break even", generating barely enough cash to maintain the business's market share.

BCG
Departments Revenues

Percent Revenues

Profits

Percent profits

Percent Market share

26% 7%

Percent growth rate

+13
+8

Management Science Department Electrical Engineering C& s Engineering

4000000 2000000

36% 18 %

2560000 905000

38 % 13.4 %

1500000

14 %

1010000

15 %

6.5 %

+9
Graduate studies and applied sciences Earth and environmental sciences Humanities & Social sciences Humanities & Social sciences Department of Law Department of Law 1000000

9%

475000

7%

15 %

-1
1100000

10 %

675000

10 %

13 %

+4
1000000

9%

705000

10.4

12 %

+9
800000

7%

420000

6.2 %

14 %

-11
11200000

Total

6750000

BCG
1
20

Relative Market Share

0.5 Aggressive Retrenchment 0

Management sciences

Industry Growth rate

Electrical Engineering

C& s Engineering Earth and environm ental Earth and sciences

environmental sciences

0 Turn around

Developme nt Market /Product

Graduate studies and applied sciences

Earth and environmental sciences

-20

GSM
Grand Strategy Matrix has emerged into a powerful tool in devising alternative strategies. This matrix is basically based on four important elements: Rapid Market Growth Slow Market Growth Strong Competitive Position Weak Competitive Position
Quadrant I The quadrant one of the Grand Strategy Matrix is meant for those firms which are in a strong competitive position and flourishing with rapid market growth. Quadrant II Firms and divisions falling in quadrant two of the Grand Strategy Matrix are characterized with a weak competitive position in fast growing market. Quadrant III The quadrant three firms are operating in a slow growth industry with a weak competitive position. These firms are prone to further decline which may result possibly in liquidation. Quadrant IV The firms falling in quadrant IV are characterized as having a strong competitive position but are operating in a slow growth industry.

GSM
BU

3 Decision
QSPM

QSPM
QSPM that is a tool for objective evaluation of alternative strategies. A quantitative method used to collect data and prepare a matrix for strategic planning. It is based on identified internal and external success factors. It is designed to determine the relative attractiveness of feasible alternative action. This technique objectively indicates which alternative strategies are best.
The QSPM uses input from Stage 1 analyses and matching results from Stage 2 analyses to decide objectively among alternative strategies. That is, the EFE Matrix, IFE Matrix, and Competitive Profile Matrix that make up Stage 1, coupled with the TOWS Matrix, SPACE Analysis, BCG Matrix, IE Matrix, and Grand Strategy Matrix that make up Stage 2, provide the needed information for setting up the QSPM (Stage 3)

STRATEGIC ALTERNATIVES

Strategy Set 1 Development

Key factors
Opportunities 0.08 0.05 0.06 0.04 0.07 0.08 0.05 0.07

Strategy Set 2 Retrenchment

AS TAS

Weight

AS

TAS

Research and Development

Innovation in education New programs More campuses Moving to other region Introduce Incentive program Recreational activities Transportation facilities

3 3 3 3 -

0.24 0.15 0.18 0.24 -

2 3 2 4 -

0.16 0.15 0.12 0.32 -

Threats 0.04 0.05 0.04 0.03 0.06 0.05

highly tech environment by competitors Economic Consequences Reliance on Temporary Faculty Government Policies Marketing & recruitment by competitors Internal environment

4 3 3

0.16 0.18 0.15

2 4 2

0.08 0.24 0.10

THANKS