Term Report

TRANSPORTATION MODEL of

Presented to
Mr. Rizwan UR Rasheed

Presented by
Syed Farooq Shamim
FA09-MB-0194

Date: November 24, 2010

 Group Members

Syed Farooq Shamim

ID: - FA09-MB-0194
Muhammed Umair Khan
ID: - FA09-MB-0130
Mohammed Rana Salman
ID: - SP03-BB-0006
Muhammed Umair Kazim
ID: - FA09-MB-0129

Distribution of Work for Making of

Report

Group Members Work Done

Syed Farooq Shamim Searching and complete
formatting of Report
Muhammed Umair Khan Advance Searching

Mohammed Rana Salman Searching, Critical Analysis

Muhammed Umair Kazim Visit to organization, Meeting

with CR Officer

2
 LETTER OF TRANSMITTAL

Dated: 24-11-2010

Respected Sir Rizwan UR Rasheed,

It is to inform you that the report at hand is complete to your requirements and
exclusively contains the tasks assigned.

I am pleased to transmit this comprehensive report to you. The report basically focuses
on the Transportation Model of ALI GOHAR & COMPANY and its’ practices in
Pakistani scenario.

For the completion of report, the material has been gathered from the internet and various
articles published over (news based websites) were reviewed.

During the makings of the report, I learnt a lot about the Operation Research being
practiced and performed in Pakistan.

The report is made in considerations to your requirements and specifications. I have tried
my best to prepare a report that meets quality and professional standards.

Thanks & Regards

Yours sincerely,

Syed Farooq Shamim ID: - FA09-MB-0194

Mohammed Ali Jinnah University 3

 ACKNOWLEDGEMENTS

All prays and glory is to ALLAH who is the creator of the universe. I am grateful to
ALLAH ALMIGHTY who gave me courage to make this project easily. I would like to
thank my course teacher, Mr. Rizwan UR Rehman. He helped us in this project and has
been a constant source of guidance throughout the course of “Operation Research” and
for providing me the opportunity to further go into the depths of this topic which is a
mechanism in its own. I am obliged with the hospitality of Mr. Ibrahim Shah (Office
Assistant Warehouse) who regardless of his tight schedule and large amount of
responsibilities to perform, was kind enough to provide some time to me and provide me
the required material and information. His cooperation was the key for the completion of
this report. I am highly thankful to him. I would also thank my friends who helped me in
the preparation of this project and their support lead to the completion of this project.
Table of Contents

LETTER OF TRANSMITTAL................
ACKNOWLEDGEMENTS....................
EXECUTIVE SUMMARY......................
Chapter 1: INTRODUCTION.......................
Management......................................................................................................................
Introduction to Organization..............................................................................................
SKILLS..............................................................................................................................
History and Background....................................................................................................
Media.............................................................................................................................
Other..............................................................................................................................
Vision.................................................................................................................................
Mission Statement.............................................................................................................
Certification.......................................................................................................................
ISO Certification............................................................................................................
COPC Certification........................................................................................................
Six Sigma Discipline.....................................................................................................
ISMS Certification.........................................................................................................
Awards...............................................................................................................................
Chapter 2: SWOT ANALYSIS.............................................................................................
Strength..............................................................................................................................
Sybrid Advantage..........................................................................................................
Weakness...........................................................................................................................
High Taxes.....................................................................................................................
Low ARPU....................................................................................................................
Opportunity........................................................................................................................
Global Sourcing.............................................................................................................
Threat.................................................................................................................................
Sustainability.................................................................................................................
CHAPTER 3: PROBLEM & ISSUES...................................................................................
Implementation Issues.......................................................................................................
Adaptation Issues...............................................................................................................
CHAPTER 4: DEVELOPMENT OF STRATEGIES...........................................................
Sybrid Teachings...............................................................................................................
Sybrid Goals......................................................................................................................
Sybrid Desired Customers.................................................................................................
Sybrid Brings to the Table.................................................................................................
CHAPTER 5: INTERNAL FACTOR EVALUATION MATRIX.......................................
CHAPTER 6: EXTERNAL FACTOR EVALUATION MATRIX......................................

Mohammed Ali Jinnah University 5

EXECUTIVE SUMMARY

Deep customer relationships represent a continuing stream of income and a

critical platform for new growth. They also represent a powerful and
defensible barrier to entry

(Jay Curry, The Customer Marketing Method, The Free Press, 2000)

What differentiates companies in today's hyper-competitive and demand-driven markets

is their ability to address their customers' preferences and priorities. This means more
than simply knowing and understanding their customers better than their competitors do.
It means strategically implementing this customer knowledge in every area of the
company, from the highest management level to all the employees who come into direct
contact with customers. Establishing and strengthening long-term relationships with your
customers is the key to success. It's the focus of a well structured and coordinated process
of customer relationship management.

CRM involves far more than automating processes in sales, marketing, and service and
then increasing the efficiency of these processes. It involves conducting interactions with
customers on a more informed basis and individually tailoring them to customers' needs.

What is Managerial Policy?

The managerial policy determines the business capacity ranges, the company targets and
the behavior principles in relation to the relevant groups of requirements. It regulates
handling interest conflicts inward and outside. It serves the consent identification in the
value conceptions and interests of all relations with these groups, load-carrying to the
enterprises took part or of its actions groups concerned and the permanent care.

Sybrid is a subsidiary of the Lakson Group of Companies, one of Pakistan’s largest and
most diversified business groups. Till date, the group provides direct employment to
around 16,000 people across the country. Sybrid has multiple offerings including
Business Process Outsourcing (BPO), Customer Sensing and Customer Relationship
Management (CRM); in addition, Sybrid has an entire division focusing on the leaders of
tomorrow called Strategic Leadership Institute (SLI). The company has extended its Call
Center and CRM services to more than 4 regions;

• United States

• Middle East

• South Asia

• Asia Pacific

We offer state-of-the-art facilities in:

• Karachi

• Kula Lumpur

• United Arab Emirate - under construction in Ras Al Khaimah (UAE)

• Backed by business acquisition offices in US

Sybrid, in partnership with MEMRB Pakistan is also offering Market Research and
related services including Computer Assisted Telephonic Interview, Brand Health
Tracking, Mystery Shopping, Campaign Evaluation, and others, with our in-house data
base of more than 4.5 million records and ability to store over 10 ++ million calls.

Sybrid, at present is successfully managing the Quality Assurance Operations for our
diverse clients which include telecom, technical support, food services, media services,
hospitality services, health care, financial services and market research. Following are
some milestone and improvements we have achieved for our clients:

• Customer Satisfaction : Increased from 78% to 96%

• First Call Resolution (FCR): Increased from 23% to 88%

Mohammed Ali Jinnah University 7
 • Complaint Ratio : Reduced from 17% to 1.5%

• Call Quality : Increased from 70% to 93%

• Fatal Error : Reduced from 0.47% to 0.15%

• Non-Fatal Error : Reduced from 10.2% to 4.5%

• Efficiency : Increased from 70% to 95%

• Staff Turnover : Reduced from 6.7% to 1.5%

Sybrid's unparalleled experience and capability is built on research and sustained by a

state-of-the-art call center infrastructure. Hence, it can pride itself in being equipped to
cater to a broad spectrum of client needs. Customer Care and Retention, Tele-Sales,
Customer Acquisition, Technical Helpdesk and Back Office Support are a few areas
where Sybrid has proven excellence.

Reaffirming its commitment to managerial brilliance, Sybrid has an entire division

focusing on the leaders of tomorrow, called Strategic Leadership Institute (SLI). The
programs offered therein, help organizations enhance revenues quickly and predictably
while ensuring profitably. This is achieved by augmenting the entrepreneurial skills of
corporate leaders.

The most significant operational benefits derived and acknowledged by clients remain
(CRM): Sybrid On-Premises and On-Demand are running in the contact center as per
client requirements. Being the world's most complete Customer Relationship
Management (CRM) solution, Sybrid CRM helps organizations differentiate their
businesses to achieve maximum top and bottom line growth. With solutions tailored to
more than 20 industries, Sybrid CRM delivers:

• Comprehensive transactional, analytical and engagement CRM capabilities

• Tailored industry solutions

• Role-based customer intelligence and pre-built integration

Chapter 1: INTRODUCTION

Operation Research

Operational research, also known as operations research, is an

interdisciplinary mathematical science that focuses on the effective useof technology by
organizations. In contrast, many other science & engineering disciplines focus on
technology giving secondary considerations to its use.

Employing techniques from other mathematical sciences --- such as mathematical

modeling, statistical analysis, and mathematical optimization --- operations research
arrives at optimal or near-optimal solutions to complex decision-making problems.
Because of its emphasis on human-technology interaction and because of its focus on
practical applications, operations research has overlap with other disciplines,
notably industrial engineering and management science, and draws
on psychology and organization science. Operations Research is often concerned with
determining the maximum (of profit, performance, or yield) or minimum (of loss, risk, or
cost) of some real-world objective. Originating in military efforts before World War II, its
techniques have grown to concern problems in a variety of industries.[1

Introduction to Organization
Ali Gohar and Company (Pvt) Limited is a part of the Ali Gohar Group of Companies. With the

Mohammed Ali Jinnah University 9

benefit of 50 years experience in the field of product distribution, it is one of the largest
distributors of pharmaceutical products as well as selected consumer products.

As Distributor

The advantage of a strong and sophisticated infrastructure enables us to render services to retail
and wholesale outlets, doctors, clinics and hospitals on a nationwide basis.Operating through a
network of branches spread across the country from the port city of Karachi to Peshawar in the
North West Frontier Province, AG&C has the exclusive distributorship rights of several blue chip
multinational organizations.
At present branches are located at Karachi, Hyderabad, Sukkur, Quetta, Multan, Faisalabad,
Lahore, Gujranwala, Rawalpindi and Peshawar but the network is growing and expanding
continually according to the demands of the market .
In order to maximize efficiency all branches are equipped with state-of-the- art technology
including temperature controlled environment facilities for the storage of temperature-sensitive
products (that may require an atmosphere ranging from -28°c to normal room temperature.)

A strong sales force operating in tandem with a highly efficient supply chain and delivery system
ensures an exceptionally high speed of delivery that has been a distinguishing feature of AG&C
over the years. As an endorsement of this confidence, principals are offered the convenience of
an on-line sales reporting system that is customised to the principals specific requirements.
At AG&C great emphasis is laid upon quality and innovation in customer services.There is a
relentless pursuit to understand the needs of the customer and constant improvements are
devised in order to address the need of the moment.

As Logistic Support Provider

Its Commercial Department handles logistics efficiently. All import cargo is handled smoothly at
customs clearance, ware-housing and transport to upcountry destinations by road transport and
airfreight. We have our own Cold storage facilities at Karachi where we store items requiring
controlled temperature, and such items are transported to upcountry, also by refrigerated
containers at controlled temperature.

Bulk of the stores are moved to upcountry by 14’ 20' & 40’ containers. We also have
contracts for the movement of day to day small cargo lots within the city and upcountry.
We have similar swift arrangements for the movement & delivery of papers, documents,
small & large packets & parcels, and are well equipped to provide logistic support to
foreign principals and clients in Pakistan
Mohammed Ali Jinnah University 11
Chapter 2: SWOT ANALYSIS

Strength

Sybrid Advantage
Sybrid’s unparalleled experience and capability is built on research and sustained by a
state-of-the-art call center infrastructure. Hence, it can pride itself in being equipped to
cater to a broad spectrum of client needs in. Customer Care and Retention, Tele-
Marketing, Customer Acquisition, Technical Helpdesk and Back Office Support are a
few areas where Sybrid has proven excellence.

Reaffirming its commitment to managerial brilliance in Call Center solutions, Sybrid has
an entire division focusing on the leaders of tomorrow, called Strategic Leadership
Institute (SLI). The programs offered therein, help organizations enhance revenues
quickly and predictably while ensuring profitably. This is achieved by augmenting the
entrepreneurial skills of corporate leaders.

• Technical Expertise.

• State of the art HFC Plant.

• Skilled work force (Technical).

• Value added services (V.A.S)

• Advertising on cable by the leading brands.

• Computerized billing system.

• 24 hour customer care.

• NOC by Govt. of Pakistan.

In the past, Pakistan has been termed as fastest growing telecom industry in the world.
This was the reason that World’s strongest and most successful telecom players (China
Mohammed Ali Jinnah University 12
Mobile, Etisialat, Singtel, Orascom and Telenor) invested their money in Pakistani
market.

This shows the strength that Pakistani market offers to the investors. Even after the boom
era, Pakistani telecom industry has got very healthy competition with all these successful
players already well settled in the market.

Another good thing about Pakistani telecom industry is that idea of Significant Market
Player is diluting with each passing day. Even the newcomers are betting hard and
competing well with same enthusiasm and force.

Expected 3G license will take Pakistani Telecom industry to next level, with latest
technology coming into the country. This will not only bring additional foreign direct
investment, but the telecom standards of common person will shoot up significantly.

During all this process, Pakistan Telecommunication Authority has played its positive
role, throughout. They not only encouraged foreign direct investment by allowing 100
percent foreign ownership, but also kept the race very smooth, fair and transparent.
Regulator, not only cautioned the operators when they were wrong, but also facilitated
them by taking initiatives, such as Mobile Number Portability, an un-ending potential for
them.

Weakness

• Limited Urdu content.

• Maintenance down time is high.

• Centralized customers care.

• Call Center inability to receive large number of calls.

• Insufficient space to accommodate staff at various area offices.

• Lack of coordination among departments and cross functional coordination.

Mohammed Ali Jinnah University 13

 Pakistan Telecom industry has primarily 2 issues,

High Taxes

Tax is something that is in government’s hands. Despite the fact that in latest budget,
taxes on Telecom industry were lowered, but still the move was not enough to bring
down the taxes at a considerable level.

Low ARPU

Competitive tariffs, low spending capabilities of Pakistani subscriber, and higher amount
of taxes when compared to tariffs are major factors of lower ARPU. Because of lower
ARPU, cellular companies were forced to impose service charges, such as 5 percent
service charges, call center call charges and so on.

Lower prices on SMS are another factor for lower ARPU, when masses are allowed
(incentivized) to communicate at Rs. 3 for a whole day, don’t expect higher ARPU in
such a market.

Opportunity

Global Sourcing
Global Sourcing is an Innovative concept gaining popularity and rapidly growing all over
the world. Sybrid has developed special competence and capacity in executing the Global
Sourcing needs of various industries. Global Sourcing is a rare capability found in very
few BPO companies that are able to deliver the best results by delivering multiple
services from the best possible source around the world.

This concept of Global Sourcing applies in a situation where a Client needs 3 distinct
services. In such a case, the most accomplished BPO companies in the world including
Sybrid, are able to find the best source from around the world, to deliver each service.

An example of Global Outsourcing would be; that if a client needs Call-Center Services,
Data Services and Field work facilitation. In this scenario, the best Call Centers would be
able to deliver the Call Center Service from a country like Pakistan where adequately
skilled Human Resources are available at the lowest Cost per agent. This BPO company
Mohammed Ali Jinnah University 14
should also be able to source the Data Services from a country like Sri-Lanka where the
IT industry is better developed and human resources specialized in IT are still
economically available. Similarly, if the client wants to conduct some Field Work in the
USA, the Outsourcing Company should be able to deliver on-ground specialized man-
power within the USA

Sybrid has established multiple delivery centers, located strategically in several regions
of the world, to economically deliver the specialized skills found in each particular
geographical region. Therefore, Sybrid has an extensive reach to effectively deliver
Global Sourcing facility.

• Unavailability of a state of the art CATV & IOC service in the market place.

• Established brand name Sybrid

• Acquisition of distribution rights for various channels.

• Advertisement potential, as companies are moving towards cable advertising.

• Unavailability of technical expertise in the market.

• IOC packages for the new segments.

• Better business solutions to corporate sector in IOC.

• Promotion of Sybrid other products in the market i.e. Cybernet.

• New Housing schemes.

• Increase in population

• Global Events like Football World cup, terrorist attacks etc.

More number of heads means more business. With almost 45 percent heads still not in
telecom loop, the opportunities lies naked for telecom operators to bread their profits.

Value added services, such as Mobile Banking, Mobile Internet etc are some of the fronts
that are yet to be fully explored by cellular companies. This way, they can not only fetch

Mohammed Ali Jinnah University 15

new subscribers, but can also make their existing subscriber use these services to increase
ARPU level.

Threat

Sustainability
There is a new found respect for People—Planet—and Profits during the 21st century.
Corporate leaders and managers are increasingly challenged to address issues that go far
beyond the single profit motive.

The issues relevant to People include employees’ health, safety, engagement and morale,
along with poverty alleviation which remains a broader social issue. Such issues are now
being recognized as core sustainability factors for businesses. Environmental issues like
“Global Warming” have begun to affect and threaten the entire planet. These broader
challenges need attention and efforts from all progressive organizations. Sybrid fully
recognizes its role on this front too.

Sybrid operations are governed by a primary principle of ensuring that every unit of
growth achieved in business volume should be based on a sustainable solid footing. We
do not believe in sketching cosmetic growth trends on the client’s progress chart. Sybrid
is committed to facilitate sustainable growth for its clients, employees and stakeholders,
as it understands the significance of sustainability and dynamism in the competitive
corporate world today. These traits are even more critical in the Business Process
Outsourcing (BPO) and Customer-Sensing (CS) world. Our sustainability policy has
always helped in establishing long-lasting relationships between Sybrid, its clients,
employees and stake-holders.

Our social principles are based on; deriving optimum outputs from assets, designing
cleaner productivity processes, implementing and recommending Greener technologies,
enhancing quality-of-life for employees and people around us. Besides adhering to
sustainable development principles within our business operations, we strive further
towards caring for the environment and leaving a healthy eco-system for the future
generations too.

Mohammed Ali Jinnah University 16

Similarly, the human resource policy at Sybrid is aimed at establishing an increasingly
employee-driven organization, where the personnel are respected and treated like the
drivers of all our successes and growth. To ensure sustainable progress, we have designed
elaborate training, development and retention programme for our human assets, which
remain as a building block of Sybrid.

Despite the complex nature of our operations, Sybrid has been able to simplify its
business model through sustainable business practices and gained substantial
competitive-advantage by integrating sustainability within its business strategy.

Sustainability is ensured in several operational areas like; risk assessment, branding,

marketing & communication, along with implementing a comprehensive system for
Performance measurement and benchmarking. Eco-efficiency, resource management &
waste reduction are other central concerns at Sybrid, where Climate change awareness is
also well communicated both internally and externally. Sybrid continues to strive for
creating a better balance between the needs of people, the planet and profit in both the
short- and long-term.

• New entrants in the market.

• Poor technical back-up to distributors.

• Small cable operators.

• Poor Government control over the illegal cable operators.

• Availability of other ISPs with cheaper hourly rates and better speed.

• Emergence of ISDN & DSL with better business solutions.

• DSL rates going down fast with time.

Network quality and capacity issues should be top priority for telecom operators. With
increasing base (though not at high rate now), can create troubles for the operators if they
not cope with the capacity and quality of their network.

Price war is hitting its lower limits; regulator must step in at this point of time to guide

Mohammed Ali Jinnah University 17

and confines cellular companies at a certain level.

CHAPTER 3: PROBLEM & ISSUES

Implementation Issues

Dramatic increases in revenue, higher rates of client satisfaction, and significant savings
in operating costs are some of the benefits to an enterprise. Proponents emphasize that
technology should be implemented only in the context of careful strategic and operational
planning. Implementations almost invariably fall short when one or more facets of this
prescription are ignored:

 Poor planning: Initiatives can easily fail when efforts are limited to choosing and
deploying software, without an accompanying rationale, context, and support for
the workforce. In other instances, enterprises simply automate flawed client-
facing processes rather than redesign them according to best practices.

 Poor integration: For many companies, integrations are piecemeal initiatives that
address a glaring need: improving a particular client-facing process or two or

Mohammed Ali Jinnah University 18

 automating a favored sales or client support channel. Such “point solutions” offer
little or no integration or alignment with a company’s overall strategy. They offer
a less than complete client view and often lead to unsatisfactory user experiences.

 Toward a solution: overcoming siloed thinking. Experts advise organizations to

recognize the immense value of integrating their client-facing operations. In this
view, internally-focused, department-centric views should be discarded in favor
of reorienting processes toward information-sharing across marketing, sales, and
service. For example, sales representatives need to know about current issues and
relevant marketing promotions before attempting to cross-sell to a specific client.
Marketing staff should be able to leverage client information from sales and
service to better target campaigns and offers. And support agents require quick
and complete access to a client’s sales and service history

Adaptation Issues

Historically, the landscape is littered with instances of low adoption rates. In 2003, a
Gartner report estimated that more than $1 billion had been spent on software that wasn’t
being used. More recent research indicates that the problem, while perhaps less severe, is
a long way from being solved. According to CSO Insights, less than 40 percent of 1,275
participating companies had end-user adoption rates above 90 percent.

In a 2007 survey from the U.K., four-fifths of senior executives reported that their biggest
challenge is getting their staff to use the systems they’d installed. Further, 43 percent of
respondents said they use less than half the functionality of their existing system; 72
percent indicated they’d trade functionality for ease of use; 51 percent cited data
synchronization as a major issue; and 67 percent said that finding time to evaluate
systems was a major problem. With expenditures expected to exceed $11 billion in
2010, enterprises need to address and overcome persistent adoption challenges.
Specialists offer these recommendations for boosting adoptions rates and coaxing users to
blend these tools into their daily workflow:

Mohammed Ali Jinnah University 19

  Choose a system that’s easy to use: All solutions are not created equal. Some
vendors offer more user-friendly applications than others, and simplicity should
be as important a decision factor as functionality.

 Choose the right capabilities: Employees need to know that time invested in
learning and usage will yield personal advantages. If not, they will work around
or ignore the system.

 Provide training: Changing the way people work is no small task, and help is
usually a requirement. Even with today’s more usable systems, many staffers still
need assistance with learning and adoption.

CHAPTER 4: DEVELOPMENT OF STRATEGIES

Sybrid Teachings

• It costs six times more to acquire a new customer than keep an old one.

• The odds of selling a product to a new customer are 15%, while the odds of selling it
to an existing customer are 50%.

• One dissatisfied customer typically tells eight to ten people about his or her
experience.

• 70% of complaining customers will do business with the company again if it quickly

Mohammed Ali Jinnah University 20

 takes care of a service snafu.

• More than 90% of existing companies do not have the necessary integration of sales
and service processes and systems to support e-commerce.

• A company can boost its profits 85% by increasing its annual customer retention by
only 5%!

Sybrid Goals

• Reduce costs of marketing by using effective strategies as customer will come back to
you again and again if Loyal.

• Improve accuracy and relevancy of recommendations along with customer

satisfaction.

• Increase conversion rate, i.e., Turn browsers into buyers which results in having a
good customer turnover rate.

• Customer retention and frequency needs to be very strong.

• Order size should be preferred.

• Customer response needs to be focused and worked on.

• Competitiveness through differentiation.

• Profitability, always results when ROI (return on investment) is high.

Sybrid Desired Customers

Convenience: One-stop shopping, tools, online services ,Relevance: all community,

content, products and services around a topic, Simplicity: usability, ease-of-use Choice:
Selection of products/ services and way they are presented, Voice: Interaction with and
responsiveness of merchant, Reinforcement: community, ratings / reviews

Mohammed Ali Jinnah University 21

Safety: of credit card and other personal data, Control: over use of her private data, plus
offers, content, Recognition: Remember and apply my unique name & preferences.

Sybrid Brings to the Table

1. “Values Drive Culture”

At Sybrid, the focus is on:

• Customer centricity

• Process centricity

• Service assurance

• Technology neutral

Our “Customer Management System” is woven in our culture.

2. “Requirements Drive Systems ”

Voice traffic handling and Data Processing:

– Assured quality and accuracy

– Human Resources and Training Systems built by the best in the industry
and supported by cutting edge HRMS

– One of the most competitive rates in the region

– World-class system’s architecture:

Siebel Customer Relationship Management Solution, IEX Work Force Management,

NICE Quality Management System, Alcatel Telephony, Multiple redundancies in
connectivity, site, systems, and databases, One of the most competitive rates in the region

Mohammed Ali Jinnah University 22

 – World-class system’s architecture:

– Siebel Customer Relationship Management Solution

– IEX Work Force Management

– NICE Quality Management System

– Alcatel Telephony

– Multiple redundancies in connectivity, site, systems, and databases

Mohammed Ali Jinnah University 23

CHAPTER 5: INTERNAL FACTOR EVALUATION MATRIX

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 those
areas. The Internal Factor Evaluation matrix or short IFE matrixes used in strategy
formulation. The IFE Matrix together with the EFE matrix is a strategy-formulation tool
that can be utilized to evaluate how a company is performing in regards to
identified internal strengths and weaknesses of a company. The IFE matrix
method conceptually relates to the Balanced Scorecard method in some aspects.

The following table provides information of an IFE matrix for Sybrid.

INTERNAL FACTOR EVALUATION MATRIX (IFE)

Key Internal Factors Weight Rating Weighted Score

Strengths
Competitive Advantage 10% 4 0.40

Technical Expertise. 12% 4 0.48

State of the art HFC Plant. 4% 3 0.12

Skilled work force (Technical). 5% 3 0.15

Value added services (V.A.S) 3% 3 0.09

Mohammed Ali Jinnah University 24

Advertising on cable by the leading 0.20
5% 4
brands.

Computerized billing system. 3% 3 0.09

24 hour customer care. 3% 3 0.09

Strategic partner 10% 4 0.40

Internal Weakness
Call Center inability to receive large
15% 2 0.30
number of calls.

Maintenance down time is high. 8% 2 0.16

Centralized customers care. 6% 2 0.12

Limited Urdu content. 4% 1 0.04

Insufficient space to accommodate staff at 0.16

8% 2
various area offices.

Lack of coordination among departments 0.04

4% 1
and cross functional coordination.

Major Weakness (1) , Minor Weakness (2) , Minor Strength (3) , Major Strength (4)

TOTAL WEIGHTED SCORE 100% 2.81

Mohammed Ali Jinnah University 25

CHAPTER 6: EXTERNAL FACTOR EVALUATION MATRIX

The EFE matrix is the strategic tool used to evaluate firm existing strategies, EFE matrix
can be defined as the strategic tool to evaluate external environment or macro
environment of the firm include economic, social, technological, government, political,
legal and competitive information. The EFE matrix is similar to IFE matrix the only
difference is that IFE matrix evaluate the internal factors of the company and EFE matrix
evaluate the external factors.

The following table provides information of an EFE matrix for Sybrid.

EXTERNAL FACTOR EVALUATION MATRIX

Key External Factor Weight Rating Weighted Score

Opportunities

Global Sourcing 0.10 3 0.3

Established brand name Sybrid 0.03 2 0.06

Advertisement potential, as companies are

0.04 1 0.04
moving towards cable advertising

Unavailability of technical expertise in the market 0.10 1 0.10

Promotion of Sybrid other products in the 0.10

0.05 2
market i.e. Cybernet.

New Housing schemes. 0.05 2 0.10

Increase in population 0.03 3 0.09

Global Events like Football World cup, 0.18

0.06 3
terrorist attacks etc

Better business solutions to corporate 0.30

0.10 3
sector

Threats

Sustaining Business 0.10 4 0.40

0.18
New entrants in the market. 0.06 3
Mohammed Ali Jinnah University 26
Small cable operators 0.12 4 0.48

Poor Government control over the illegal 0.10

0.05 2
cable operators

DSL rates going down fast with time 0.05 2 0.10

Poor technical back-up to distributors 0.06 3 0.18

TOTAL 1.00 2.71

Mohammed Ali Jinnah University 27