Strategic Management

Submitted by;

Muhammad Nabeel Gul (62377)

Muhammad Kaif (62559)
Muhammad Asad (62787)
Abdul Kareem Qadri (62387)
RizwanMaqsood (62491)

Submitted to;

Dr Hanif Muhammad
Class id 103586
 Vision

“TCS will be recognized and respected as a professional, innovative, profitable and knowledge-
based logistics/services enterprise. TCS embeds internet-based technologies into its internal
operating structures and as business solutions for customers; with customer, employee and
shareholder interests at the core of its operations; demonstrating a clear concern for ethical
conduct and good corporate citizenship; with the objective of growing into a regional and
global player”.

Mission
“To direct all our organizational efforts at building upon the existing organizational strengths
and brand recognition to achieve enhanced levels of profitable growth in the core business and
diversify into new areas that complement and supplement the core business with the
diversification aimed at achieving excellence and industry leader status in the new areas. The
TCS People will however be encouraged to be open to unconventional ideas and services and
recognize new trends at very early stages”.
 TCS COURIER
STRENGTH:
1. Independent and self-reliant cargo operation.
2. Own our own fleet of Trucks, Vans and Motorcycle.
3. Country wide branches.
4. Independent airplanes operation and their licenses.
5. Heavy advertising in the domestic market.
6. Owns a highly trained workforce.

WEAKNESS:
1. Employee turnover is high, and these employees eventually joins competitors.
2. Lack of formal formal contract with delivery person.
3. They are not cost efficient in their operation.
4. Limited resources to cater global market relies on international partner for its overseas
operation.
5. No focus on building relationship with customers.
6. Decentralized operation.

OPPORTUNITY:
1. Collaboration/Merger
2. Global Expansion
3. Few players in field
4. Technological Advancement
5. E-commerce

THREATS:
1. Fuel cost
2. Govt Taxes
3. Competitors price
4. Security Risk
5. External Factors
 IFE
MATRIX
STRENGTH: EFE
WEIGHT RATING WEIGHTED SCORE
1. Independent and self- MATRIX
reliant cargo operation. 0.12 3 0.36
2. Own our own fleet of
OPPORTUNITY:
Trucks, Vans and
Motorcycle. WEIGHT
0.10 RATING
4 WEIGHTED
0.40 SCORE
3.. Collaboration/Merger
1 Country wide branches. 0.05
0.13 1
4 0.05
0.52
2. Global Expansionairplanes
4. Independent 0.15 3 0.45
3. Few players in
operation field
and their 0.1 2 0.2
4. Technological
licenses. Advancement 0.1
0.08 2
3 0.2
0.24
5.
5. E-commerce
Heavy advertising in the 0.15 3 0.45
domestic market. 0.05 3 0.15
6. Owns a highly trained
THREATS:
workforce. 0.07 3 0.21
     
WEAKNESS:
1. Fuel cost 0.05 2 0.1
2. Govt Taxes 0.2
  3  0.06
 
3.
1. Competitors
Employee price
turnover is 0.1 4 0.4
4. Security Risk
high and these 0.05 2 0.1
5. External Factors
employees eventually 0.05 1 0.05
joins competitors. TOTAL 0.10 2 2.6
0.20
2. Lack of formal formal
contract with delivery
person. 0.05 2 0.10
3. They are not cost
efficient in their
operation. 0.07 1 0.07
4. Limited resources to
cater global market relies
on international partner
for its overseas
operation. 0.10 1 0.10
5. No focus on building
relationship with
customers. 0.08 1 0.08
6. Decentralized operation 0.05 2 0.10
TOTAL 2.53
 COMPETITIVE PROFILE MATRIX
(CPM)

TCS DHL UPS

Critical Success Factor Weight Rating Weighted score Rating Weighted score Rating Weighted score
1. Advertising 0.1 3 0.3 2 0.2 1 0.1
2. Service Quality 0.2 3 0.6 2 0.4 2 0.4
3. E-commerce 0.1 3 0.3 3 0.3 3 0.3
4. Merger 0.1 2 0.2 3 0.3 2 0.2
5. Financial Position 0.1 3 0.3 3 0.3 2 0.2
6. Customer loyalty 0.1 4 0.4 2 0.2 2 0.2
7. Global expansion 0.05 2 0.1 4 0.2 4 0.2
8. Distribution cost 0.1 2 0.2 3 0.3 2 0.2
9. Warehouse 0.15 4 0.6 3 0.6 3 0.45
Total 1   3   2.8   2.25
 SWOT
MATRIX
STRENGTH:
1.      Independent and self-
reliant cargo operation.
2.      Own our own fleet of
Trucks, Vans and
Motorcycle.
3.      Country wide branches.
4.      Independent airplanes
operation and their licenses.
5.      Heavy advertising in the
domestic market.
6.      Owns a highly trained
workforce.
  SO STRATEGY
OPPORTUNITY:  
1. 1. We can start our
Collaboration/Merg operation in developing
WEAKNESS:
1.      Employee turnover is high and
these employees eventually joins
competitors.
2.      Lack of formal formal contract with
delivery person.
3.      They are not cost efficient in their
operation. Cost incurred delivery staff
need training
4.      Limited resources to cater global
market relies on international partner
for its overseas operation.
5.      No focus on building relationship
with customers.
6. Decentralized operation
WO STRATEGY
1. Make contract with the online shopping
site to deliver the product to end user.

er country. (S4, O2) (W2, O2)

2. Global Expansion 2.To contract with employee (W1, O3)

2. To capture a marker share
3. Few players in field 3. To use E-commerce for Capturing global
(S5, O3)
 4. Technological market. (W4, O5)
3. Advance the technology
Advancement  
by automated storage and  
5. E-commerce
Retrieved system. (S1, O4)
  
THREATS: SR STRATEGY WT STRATEGY
 1. Fuel cost 1. Reduce domestic operation
2. Govt Taxes price. (S1, S2, T3)
3. Competitors price 2. Improve fuel consumption
4. Security Risk through fuel efficient vehicles.
5. External Factors (S2, T1)
3. To provide incentives to
employees for retention. (S6,
T4) 
1. Provide low cost facility for the new
customer.
(T3,W3 )
2. Shift facilities to that area where
laborischeaper. (W1, T3 )
 3. To build relationship with customer.
(W5, T5)
 

Findings: In swot matrix we mix up strength,weknness, opportunities and threats thus after analysis we
Findings: In swot matrix we mix up strength, weaknesses, opportunities and
threats thus after analysis we came to know that to strengthen the business tcs
have to build strong e-commerce platform to make existence online and for
global expansion they will have to merger themselves with international courier
companies,for capturing more local market they can make agreement with online
websites like already they are collaborating with daraz for employees turnover
they have to make some internal HR changes to keep employees work with for
long period.
Recommendation: Our recommendation is that they will have to apply market
penetration and expansion strategy to capture international market and localy
they will have to apply market development strategy for growing their sales
locally.

SPACE MATRIX FOR TCS COURIER

FINANCIAL POSITION RATING
 Return of investment 6
 Leverage 5
 Liquidity 5
 Working Capital 4
 Cash flow 5
 Earnings per share 4
TOTAL 29

INDUSTRY POSITION RATING

 Growth potential 6
 Profit potential 5
 Financial stability 5
 Resource utilization 4
 Ease of entry 3
TOTAL 23

STABILITY POSITION RATING

 Technological changes -3
 Rate of inflation -4
 Price elasticity -5
 Competitive pressure -3
 Barriers to entry -4
TOTAL -19

COMPETITIVE POSITION RATING

 Market share -2
 Service portfolio -2
 Service speed and reliability -3
 Brand image -2
 Distribution network -2
 Customer loyalty -3
 Transporters -3
 Affordability -4
TOTAL -21

CONCLUSION
 Financial Position Average is +29.0/6 = 4.83
 Industrial Position Average is +23.0/5 = 4.60
 Stability Position Average is -19.0/5 = -3.8
 Competitive position Average is -21/7 = -3

 Directional Vector Coordinates: x-axis: -3+(+4.83) = +1.83

y-axis: -3.9+(+4.60) = +0.7
Findings Company has aggressive profile. It is financially strong firms that has
achieved major competitive advantages in a growing and stable industry. Tcs is in
an excellent position to use its internal strength to take advantages of external
opportunities. Therefore, market penetration, market development, product
development, backward forward horizontal integration, or diversification can be
feasible, depending on the specific circumstances that face the firm.

BCG MARTIX

Relative
Division Industry
Revenues ($) Revenues (%) Profits Profits (%) Market
s Growth (%)
Share
1 10700000 8.57 2300000 21.495 .80 +15
2 5700000 4.56 1205000 21.140 .60 +10
 3 2500000 2.003 902950 36.118 .40 -10
4 105900000 84.85 22500000 21.246 .70 -05
Total 124800000 100 26907950 100 -- --

NOTE:

Divisions Segments

1 TCS Yayvo

2 TCS Hazir

3 TCS Segments

4 Others (TCS Fleet,Aviation,W&D,HomeMovers,Financial,MMS,Logistics)

Findings: Tcs has strong and high market share position related to others
competitors but they are at low level when it comes to market sales growth
comparing competitors the main factor for less sales growth is that tcs is on
higher mode when we talk about pricing. The recommendation is that they will
have to review their pricing structure to gain sale growth

IE MARTIX
DIVISION SALES PERCENT SALE PROFIT PERCENT PROFITS IFE SCORES EFE SCORES
1 $300M 100% $70M 100% 2.53 2.6
Findings: In this matrix we are located in the V cell, which means we should be
managed best with hold and maintain strategies: market penetration and product
development. The best strategy we can pursue from this two is product
development; we will try to improve our service quality.
 GRAND STRATEGY MARTIX

Findings: Tcs located in quadrant 1 of the grand strategy matrix are in an excellent
strategic position. Tcs continued concentration on current markets (Market
penetration and market development) and products (product development) is an
appropriate strategy. Tcs has excessive resources, then backward, forward, or
horizantal integration may be effecive strategyies. Tcs can afford to take
advantage of external opportunites in several areas. They can take risks
aggressively when necessary.
 TCS Courier Service strategies
Backward/Forward Vertical Integration:

Our company have vertical integration, but it is depending upon situation that either it is
forward or backward integration.

Horizontal Vertical Integration:

We mainly go for acquisition strategy to expand our business and for this purpose we have OCS
and LEOPARD courier service to concern about.

Diversification Strategies:

We are also starting a banking system for the diversification of our organization. We also have
airlines for our delivery, and it is also a diversification of our business.

Related Diversification Strategy:

Going for related diversification strategy by continuing the courier services.

Conclusion:

Star Infrastructure services Question Mark Courier & Logistics Cash Cows Development
& Maintenance Dogs None. TCS is an organization with its vision and continuously working to
achieve it. They are giving their services across the globe. Due to their trust and reliability and
effective service the word courier has been replaced by TCS. They are building the good
relations with customer. I don’t see it challenging other online shops for market share but it
definitely has potential to grow and it wouldn’t be surprising to see it evolve into more of a gift
shop backed by authentic products and on time delivery in future even if its performance as a
pure e-marketplace isn’t stellar. Just to conclude here, we know from people close to TCS that
they are working on payment processing gateway as well. This is in addition to mobile banking
solution that TCS is working on. Hence payments through their own branchless banking will be
an option too, just in few months.

 Recommendations:
TCS should try expanding & grabbing more international market share to get foreign
exchange into country which has started to harvest its land for business cultivation. Maintain
focus on its core services & expanding itself into related chains of services like introduction
domestic & international airline service will give TCS new streams of profit. Besides going into
new business TCS should also strengthen its work force & train them for expansion. Training
programs for employees should be future oriented & objective in nature. TCS should look
closely towards their competitors who’re rich in both experience & finance are build a strategy
to defend it in future expansion plans of competitors.