Business strategy Final Report

Company: Cinestar Cinema in DHA

Company: Umair’s software enterprize
Section: B
Name: Registration no:
Umair Tariq L1F17BBAM0054

Ali butt L1F17BBAM0055

Bakhtawar Mina L1F15BBAM0154

Amina Sultan L1F15BBAM0193

Yousef L1F17BBAM0314

Supervisor:
Prof. Abdul Waheed
Introduction

Umair’s Software enterprise is one of the pakistani engineering companies located in Lahore near
UCP which work on producing MIS soft wares and the administrative and financial automation.
The mentioned company is a private joint-stock enterprise. Umair’s software is dealing with some
problems like unbalance cash-flow of most public sector customers and the growth of technology
while company wishes to develop new soft wares and take a bigger portion of the market share, so in
this regard the stockholders shall prepare the required resources by investing on time in order to
empower the company in the competitive market .

Investigation Model and Methodology

The following method we will used to form the best suitable strategy

The preliminary study and development of perspective and the mission manifest. Identification and
study of the inside and outside job environment and providing IFE, EFE and CPM matrixes.

Then the potential strategies of the company will be offered by using other methods like SPACE matrix

Finally in this level with the QSPM method the best strategy which will bring an acceptable amount of
benefit for the stockholders, is chosen and the company will determine its politics and goals based on
this strategy.

Umair;s Software enterprise has been established based on creativity and knowledge to improve
the administrative-financial organizations and develop steadily for developing the IT. With
employing specialists and experts as a team in producing software we have started our career to
improve the professional and scientific potential and putting extra price on every private or state
company in 2008. And today we are considered as an expert in producing the paramount MIS and
OAS systems and soft wares which have produced in this company are being used in many organizations
and companies.

Internal Factors: Every organization has its own weaknesses and strengths in its job activities.
Internal weaknesses and strengths are the one which can be controlled. Some of internal factors are:
management, marketing, accounting/financial affairs, production/operation, research and
development and intelligent services' management and so on

External Factors: External chances and threats including economic, social, cultural, of
population, environmental, politic, legal, governmental, technologic and competitive factors is such
events that totally can be remarkably of benefit or non-benefit for the organization

Process to Perform:
Internal Factors Evaluation: IFE Matrix

Internal Strengths Weight Rating Weighted

Score

The high credit of the company because of the good 0.2 4 0.80
background, experienced experts, high quality of services
amongst the costumers

Obtaining an adequate rate in informatics 0.09 3 0.27

Existence of employees' motivation and the managers according 0.08 3 0.24
to the project benefits

Schematization of management information systems(MIS) and 0.05 2 0.10

effective access to managers' required information

A relative priority of the financial position of the company in 0.04 2 0.08

comparison with competitors

Positive financial indicators (indexes) like the selling index, the 0.04 2 0.08
operative benefit, the genuine profit

An adequate growth of the process of financial proportions 0.05 2 0.10

Internet utilization 0.03 3 0.09

Young workforce 0.06 3 0.18

Staff training 0.00 1 0.32

Internal weakness Weight Rating Weighted

Score

Marketing 0.03 1 0.03

Reduction in the growth of expert workforce 0.05 2 0.10

The debts not settling in time. 0.04 2 0.08

 Workforce productivity is low due to the nature of the service 0.03 2 0.06
and support

There was no system to detect and classify the behaviors and 0.05 1 0.05
strategies and the strengths and weaknesses of competitors.
Management 0.02 1 0.02

To study the market and marketing in the units. There’s not a 0.05 1 0.05
particular system
Brand 0.01 1 0.01

Total 1 - 2.66

Result:

As you can see the total number is 2.66 and this means that the managers of Umair’s software are
rather aware of their weaknesses and strengths.

EFE Matrix: Evaluating matrix of internal factors, studies opportunities and threats in the
external circumstance of the company the total number of EFE matrix is 1 out of 4. If the number would
be more than 2.5 it means that the managers know the external circumstance of their company well.

External Factors Evaluation: EFE Matrix

External Opportunities Weight Rating Weighted
Score

Government obligation for executing the employees' over 0.02 3 0.06

time rule.

Government emphasis on the growth of technology 0.05 4 0.2

foundations. Wide spreading electronic government.
Governmental rules execution 0.01 3 0.3
Decrease of operations' budget 0.05 2 0.1
Information security 0.01 4 0.4

Using the technology 0.01 4 0.4

Knowing the competitors 0.075 3 0.225
Employing more young workforce in companies 0.05 2 0.1

Wide spreading electronic government. 0.075 1 0.075

External Threats Weight Rating Weighted
Score
Increase of inflammation in the country 0.045 3 0.135

Brain drain 0.045 2 0.09

Market's intense competitive atmosphere 0.115 4 0.46

Old managers in most of companies 0.025 2 0.05

Decrease of operations' budget 0.1 3 0.03

Targeted subsidy plan 0.05 3 0.15

TOTAL 1 - 3.045

Space Matrix
No Factors Strategic Position Abbreviation

Umar’s software has reputation in its high quality

1 productions and high rank in informatics and
nativism because of clean background. Competitive CS
Strength
Good knowledge of the whole workforce to
2 financial-informative systems

Existence of employees' motivation and the

3 managers according to the project benefits

Positive financial indicators (indexes) like the

4 selling index, the operative benefit, the genuine Industry Strength IS
profit and…
Schematization of management information
5 systems(MIS) and effective access to managers'
required information

A relative priority of the financial position of the

6 company in comparison with competitors Financial Strength FS
 7 An adequate growth of the process of financial
proportions
8 using the latest technology of producing soft ware

Making systems based on Open source and not

9 being dependent to programmer. Environmental ES
Stability
Nativism and making production which are
10 adapted to customers' needs

According to importance of previous items in this table, score of strategic position are in next table. . For
FS and IS

+1 is worst and +6 is best, for ES and CA -1 is best and -6 is worst.

Competitive strength Industry Strength Financial strength Environmental strength

Score Items Score Item Score Item Score Item
-2.5 1 +4 4 +3.5 6 -3 8
-2 2 +5 5 +4 7 -2 9
-2 3 -1 10
-6.5 +9 +7.5 -6 Sum
-2.17 +4.5 +3.75 -2 Average

According to numbers in the table:

X-axis: IS + CA = +4.5 + (-2.17) = +2.33

Y-axis: FS + ES = + 3.75 + (-2) = +1.75

+ Y-axis

Aggressive Strategy

-X-Axis
+ X-axis
 IE Matrix:

The Internal-External matrix is made of two aspects that the total number of evaluation matrix of
internal factors on the X-axis, and the final scores of external factor evaluation matrix are displayed on

So Umair’s software
strategy should be to grow
and build

QSPM Matrix
Strategies
Key Factors Produce and Produce and Developing Budget
Weight development of development of management and
MIS based on Web Open Source operational budget
systems system

AS TAS AS TAS AS TAS

Opportunities

Government obligation for executing the 0.02 4 0.08 - 0 2 0.04

employees' over time rule.

Government emphasis on the growth of 0.05 4 0.2 - 0 4 0.2

technology foundations

Governmental rules execution 0.1 3 0.3 - 0 4 0.4

Decrease of operations' budget 0.05 2 0.1 - 0 4 0.2

Identifying up-to-date needs of the costumers 0.1 2 0.2 3 0.3 3 0.3

Information security 0.1 4 0.4 4 0.4 3 0.3

Using the technology 0.075 4 0.3 4 0.3 2 0.15
Knowing the competitors 0.05 2 0 4 0.2 1 0.05

Threats

Employing more young workforce in companies 0.045 3 0.135 2 0.18 4 0.18

Employing more young workforce in companies 0.045 - 0 4 0.115 - 0

Brain drain 0.115 4 0.46 1 0 3 0.345

Market's intense competitive atmosphere 0.025 2 0.05 - 0 3 0.075

Old managers in most of companies 0.1 2 0.2 - 0 2 0.4

Decrease of operations' budget 0.05 3 0.15 - 0.4 1 0.2

Targeted subsidy plan

Sum weights 1.0

Strengths

The high credit of the company because of the 0.2 3 0.8 2 0.24 3 0.24
good background, experienced experts, high
quality of services amongst the costumers
Obtaining an adequate rate in informatics
Existence of employees' motivation and the 0.09 4 0.09 1 0.15 3 0.2
managers according to the project benefi
Schematization of management information 0.08 3 0.24 3 0 2 0.120.12
systems(MIS) and effective access to managers'
required information
A relative priority of the financial position of the 0.05 4 0.2 3 0.16 4 0.15
company in comparison with competitors

Positive financial indicators (indexes) like the 0.04 3 0.12 4 0.2 3 0

selling index, the operative benefit, the genuine
profit
An adequate growth of the process of financial
proportions

Internet utilization 0.05 1 0.16 4 0.12 3 0.06

Young workforce 0.03 2 0.15 4 0.12 4 0.16

Staff training 0.06 4 0.09 2 0.24 1 0.09

WEAKNESS
Management 0.03 3 0.16 3 0.02 3 0
Reduction in the growth of expert workforce 0.05 - 0.12 2 0 - 0.03

Not settling in time the debts 0.04 1 0.06 4 0.06 - 0.1

Low profit of workforce concerning nature of 0.03 2 0.12 - 0.12 1 0.08

support and services

Lack of a system for identifying, behavior 0.05 4 0.15 4 0.1 2 0.15

classifying and studying, strategies, competitors'
weaknesses and strengths

Marketing 0.02 2 0 2 0.08 4 0.03

To study the market and marketing in the units. 0.05 3 0.03 4 0.05 3 0.05
There's not a particular system
Brand 0.01 4 0.1 - 0.02 3 0.04

Sum total attractiveness Score 1.0 - 5.36 - 4.085 - 5.06