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INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS VOL 3, NO 5

Strategic Analysis of Public Sector Universities in Pakistan

Riaz Ahmed Mangi (Corresponding Author)
Assistant Professor
Department of Commerce
Shah Abdul Latif University Khairpur

Hasan Jawad Soomro

Assistant Professor
Department of Commerce
Shah Abdul Latif University Khairpur

Ikhtiar Ali Ghumro

Assistant Professor
Department of Commerce
Shah Abdul Latif University Khairpur

Abstract
Education is a powerful tool to transform the society and particularly higher education
broaden the vision, open new horizon and explore the doors of awareness. In Pakistan, major
source of higher education is public sector universities. More that 80% of university going
students are enrolled in public sector universities. These universities are confronting alarming
circumstances due to various causes. To coup with such problems, the universities have to
reassess their strategic position and workout plans for the future. This study is carried out
with a view to analyse the strategic situation of the public sector universities. A sequential
strategic process is devised and suggested for flawless planning, the forces are described to
analyse the competitive position, SWOT analysis is conducted and strategic factor matrix in
devised for evaluating the competitive advantage of public sector universities in comparison
to competitors.
Keywords: Strategic Analysis ; Public Sector ; Universities ; Pakistan
Introduction
Almost 445,500 male and female are enrolled in Bachelors programmes, 146,330 almost
equally male and female in Master of 16 yrs of Education, 719 more males than females on
PhD programs in Pakistani universities (Pakistan Education Statistics 2007-8). Developing
countries are left with a formidable task of expanding their higher education systems and
improving quality, all within continuing budgetary constraints (World Bank, 2000, p.36).
Most universities are currently engage in long-range planning, but they can fruitfully
augment that work by using the concepts of strategic planning and thereby enhance their
ability to steer a course in a changing external environment. Higher education caters to the
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education in the colleges and universities Allen (1988). The primary tasks of strategic
management is to understand the environment, define organizational goals, identify options,
make and implement decisions, and evaluate actual performance. Thus, strategic planning
aims to exploit the new and different opportunities of tomorrow, in contrast to long-range
planning, which tries to optimize for tomorrow the trends of today Drucker (1980). Higher
education is recognized today as a capital investment and is of paramount importance for
economic and social development of the country Barnet (1990). (1) Where is the organization
now? (2) Where is it going? (3) Where does it want to go? And (4) what does it have to do to
change where it is going to get to where it wants to go? Renfro (1980b), (1980c).The
circumstances to make the University a major driving force in the economic development
and well-being of the citizens of any developing country. Vision of public universities in
Pakistan lies in the excellence is the norm across all the areas of study. The level of
distinction of public university was to accelerate the pace of its advancement and expand the
breadth of its excellence. Spreading excellence across the campus requires that we move
beyond our previous accomplishments and concentrate efforts and attention in several areas.
Factors such as the distinctive nature of higher education institutions, international mobility
of students, and teachers’ accessibility of computer based learning pursuit of research and
scholarship, globalization of economy, and emerging challenges of the 21st century have a
direct impact on the future development of higher education. Mughal & Manzoor (1999).
For making Pakistani universities compatible with advanced countries and enduring their
need exceptional planning or the future. As mentioned by Drucker (1980) strategic planning
aims to exploit the new and different opportunities of tomorrow, in contrast to long-range
planning, which tries to optimize for tomorrow the trends of today. The universities have to
exploit current resources and find new opportunities to catch up with universities of
developed countries. Government funding is decreasing which has threatened public sector
universities growth. Even these don’t have enough funds to meet their day to day expenses.
The situation is alarming for public sector universities which are already lagging behind the
neighboring India and Iran. To coup with such problems, the universities have to assess their
strategic position and work out plans for the future.
This study is an attempt to suggest some techniques of strategic management for the public
sector universities for assessing their current state of affairs and make future strategy. This
study mainly focuses on the strategic analysis of public sector universities in Pakistan.
Through this work, it is explored that what is the strategic position of public sector

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universities. This study explores the forces affecting the universities and what are the
strengths, weaknesses, opportunities and threats of the universities.
Literature
Iqbal (2004) writes of serious deficits in the quality of staff, governance, academic
standards, student preparation, research facilities, libraries, and laboratories. The higher
education system is simply not at par with international standards. The result is a higher
education system not particularly relevance to societal needs, and a shortage of graduates in
the more practical fields, such as the sciences. The human resource development of a country
depends upon the quality of education imparted in country (Mohanthy, 2000).Higher
education caters to the education in the colleges and universities. Allen (1988). Higher
education is admittedly a separate stage quite distinct from primary, secondary, elementary,
and higher secondary stage. Best (1994). Higher education is recognized today as a capital
investment and is of paramount importance for economic and social development of the
country (Barnet, 1990). The present lack of effective strategic planning has lead to dire
predictions from many observers. According to Benjamin & Carroll (1998, p.1), “the
present course of higher education in the state – in which student demand, tuition, and costs
are rising much faster than public funding - is unsustainable. Noorshahi (2006) believes
universities need transformational leadership to replace bureaucratic management. In the end,
to succeed universities must be competitive both nationally and internationally. The
applications of principles of market economies to the university systems of all countries have
created a new context for higher education (Rao, 2003). Quddus (1990) studied that “The
basic function of a college or university is to preserve, augment, criticize, and transmit
knowledge and to foster creative capacities. New models of providing higher education have
emerged in recent years. According to some researchers, a gap between what the public
wants and what traditional universities provide is growing (Rowley, Lujan, & Dolence,
1997). By pursuing a greater mission differentiation and reallocation of resources they will
better respond to the changing needs of their constituencies (Benjamin & Carroll, 1998). This
growing awareness of the outside environment is the single most important contribution of
strategic planning to institutional decision-making, and three-quarters of all change at most
institutions is “now triggered by outside factors” Keller, 1983. Strategic thinking and
language have become a standard part of university vocabularies, planning, and actions for
well over a decade (Keller, 1983).The account of strategies is predicated on consensus
among university officials and faculty about the factors that shape research competitiveness.

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These factors include a research-productive faculty who are recruited in national markets and
whose performance is vetted by national norms for research outcome; competitive salary
levels and teaching loads; high-quality graduate students; state-of-the-art equipment and
research facilities; flexible and supportive organizational arrangements and institutional
policies (on purchases, personnel, and travel); and a supportive central administration which
makes national standards of research performance a key institutional objective (Feller, 1996;
Teich and Gramp, 1996). At a state level, the strategy implies selectivity and concentration of
resources in those state universities that have stronger research programs, a policy that can
run counter to institutional and state government interests in pursuing a broad distribution of
resources among institutions (Lambright, 1996). Due to decreasing financial support, rapid
technological advances, changing demographics, and outdated academic programs, many
universities engaged in strategic planning as means to “make beneficial, strategic changes …
to adapt to the rapidly shifting environment” Rowley, Lujan & Dolence (1997).
Strategic Scanning
The strategic scanning of the universities is conducted with a view to make long term
decisions. Scanning is one of the major sources of information for making successful
decisions. In the view of Bryson (1998) universities assess internal strengths and weaknesses
and external opportunities and threats for future planning. Keller (1983) express that out side
environment is the most important contributor to strategic planning at institutes and three
quarters of change are influenced by the out side elements. Besides the out side factors,
inside component play significant part in affecting the strategic decisions. The scanning for
the universities is different from the conventional scanning for the business organization.
There are some unique elements of scanning for the universities.
Conventional Elements
• Political

• Economic

• Social

• Technological

• Legal/Regulatory

• Environmental
University Specific Elements
• Funding

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• Enrolment

• Degrees Awarded

• Study Costs

• Expenditures

• Faculty

• Facilities

• Research Output

Figure No.1 Universities Strategy Steering Wheel

Organized

Observation Effort Scanning

Evaluation

Decisions Key issues

Universities
Strategy Steering
Wheel

Alternatives Vision

Evaluation

Resource Goals
Assessment Action plan

Organised Efforts: Effective strategy needs combined endeavors from all the section of
the universities. Every department must contribute fully and show comprehensive picture of
the state of the affairs.
Scanning: Scrutiny of internal and external forces is necessary for strategic planning. It
will provide the information regarding which force has largely affected the university.
Key Issues: Which of the major issue are affecting the performance of the university and
immediately concentrated upon?
Vision: Broad Spectrum picture of university may be drawn and included in the

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strategy.
Objective/Goals: Keeping in view the vision of the university, the objectives and goals
may be prepared. Every section must be informed regarding the objectives to be achieved
within specified time period.
Action Plan: All the departments of the university may be assigned an action plan to
accomplish the predetermined objectives.
Resource Assessment: The assessment of the resources is an integral part of the
strategy, the availability of required resources is essential for effective and result oriented
strategy.
Alternatives Evaluation: Above mentioned steps clarify that what strategic decision
may be taken and provide a ground to consider a wide range of alternatives. At this stage the
authority consider different option for the future.
Decision: A conclusive judgment is worked out and future strategic direction is attained.
Observation/Evaluation: A continuous assessment of the strategic planning is essential
to monitor it operational functioning and performance.
Figure No.2 FIVE FORCES MODEL FOR PUBLIC SECTOR
UNIVERSITIES

Local and
Foreign
Institutes,
Campuses

Society Private
Government Universities Students

Enterprise
Institutes,
Distant
Learning

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Five force model was developed by Michael Porter (1979), the idea was to analyse the
organizational environment and industry attractiveness. Hax & Majluf (1996) interpret that
“environmental scan identifies external opportunities and threats evaluate industry’s overall
attractiveness, and identify factors contributing to, or taking away from, the industry
attractiveness”. This study has modified the model’s elements to suit the public sector
universities of Pakistan.

Competitors (Private Universities): There are 60 private universities as compared to

73 public sector universities in Pakistan (MOE Of Pakistan 2007-08).The private universities
are demonstrating a fierce competition by employing best and highly qualified(foreign, local)
faculty, offer market oriented courses and providing most advanced facilities to their
students. On the other hand public sector universities are seriously short of these essentials.
New Entrants (Local, Foreign institutes/Campuses): Education sector is offering
new business opportunities for local and international business groups and universities. A
number of universities have opened their campuses and local business groups are also
establishing educational institutes and particularly higher education institutes. This is a
matter of grave concern for the public sector universities which are rapidly losing their share
to private sector.
Buyers (Students): Students are having various choices in terms of higher education. As
the time passes the number of students in public sector universities is declining dramatically,
the public sector universities are no more attractive for the students in terms of courses,
faculty and facilities. They prepared to spend high amounts to competitive and market
oriented degrees.
Substitutes (Enterprise Institutes, Distance Learning): Many companies and
enterprises has started in house training programs and offer certificate courses to match their
requirement to facilitate the smooth operation of the companies because the universities do
not offer the courses that cater most latest organizational techniques. Moreover, there are
numerous international universities which offer online diploma, certificate courses, graduate
and under graduate programs. These circumstances are alarming for the public sector
universities because of these programs are gradually reducing the number of students in the
public sector universities.
Suppliers (Society, Government): Society is main source of getting students; the
opinion of general public about the public sector universities is at its lowest ebb rapidly due

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to various factors. The parents are relying and sending their children to private universities;
even they are prepared to pay large amounts as fees in order to provide their kids the quality
education. On the other hand government is the major source of financial assistance to public
sector universities; however, funding has declined due to various reasons. The government
has allocated Rs15.8 billion for the HEC for the current year, an amount which is Rs19
billion less than required (Pakistan Budget 2009). The universities are advised to generate
sources of finance by themselves. This has prompted universities to be self sufficient and
start working like an enterprise.
SWOT Analysis of Public Universities in Pakistan
SWOT analysis Humphrey (1960-70) is an outstanding instrument to identify competitive
advantage a company possesses over its rivals. This apparatus help companies to prepare
them to face future challenges and formulate plans.
The public sector universities of Pakistan are observing daunting challenges due to various
reasons; it has become compulsory for them to assess their internal and external positive and
negative aspects. Below mentioned table describe the most possible strengths, weaknesses,
opportunities and threats.

Table No.1.SWOT Analysis

Strengths Opportunities
Large number of highly qualified Faculty
Growth potential
Excellent infrastructure
Large number young population
Reasonably well equipped
laboratories(Science, Computer) Vast geographical coverage

Diverse and wide range of courses Infrastructure to improve research and

development
Large number of experienced employees
Knowledge and experts to diverse to
Affordable fees structure corporate sector

Transport Facilities Opportunities to align with the industry

Boarding Facilities Amplify the services to society

Improve financial position by diversification

Extended role in solving crisis and

disasters(natural, men made)

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Weaknesses Threats
Lack of good governance Rapid expansion of private universities

Lack of check and balance Brain Drain

Obsolete equipments Non competitive salaries

High non productive costs Shift in students priorities

Shortage of funds to support strategic plans Vulnerability to competitive forces

Lack of proper publicity/exposure
Alliance of competitors with foreign
Ineffective relationship with industry universities

Directionless research and development Student and teacher politics

Dependency on Government Online universities

Short term/ad hoc policies Negative public perception

Involvement of politics in administration, Incompetent and outdated management

students and faculty

Failing in judgment of market needs

Improper/Misuse of funds and facilities

Outdated curriculum

Strategic Factor Matrix

Strategic factor matrix is devised specifically for to assess and understand the position of key
strategic factor in public universities of Pakistan. It can be applied to monitor the
performance of the factors in predetermined time period. This matrix will help universities
compare and adjust their position with the competitors. The score of the factors are
subjective and universities can alter it considering their circumstance. This matrix may be
prepared quarterly as get clear picture of various factors.

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Table No.2. Strategic Factor Matrix

Key Strategic Factors Weights Quarter Quarter Quarter Quarter

1 2 3 4
Faculty 5
Students 4
Resources 4
Curricula 4
Changes 5
Regulations 5

Conclusion/Discussion
The current circumstances in the country are not favorable for public sector universities,
these are facing various challenges for instance, cut in funding, competition from private
sector, losing highly qualified faculty, shift of student’s priorities, internal problems,
mismanagement and political interference etc. There are discouraging indicators from all
sides. The insurgency of private sector has jeopardized the survival of public sector
universities. In this situation there is growing need of rearrangement of lines and take
difficult, concrete and exemplary steps. The inevitability of strategic analysis has become
obligatory for the public sector universities. This study has provided a ground for preparing
flawless strategy through sequential model; assessment of the forces impacting the
universities position, the examination of the positive and negative aspects and the evaluation
of the strategic factor that play significant role in the performance of the universities. This
conceptual work has opened new and unique horizon in the Pakistani environment. The
techniques and the factor are totally new in terms of public sector universities and can be
confirmed and determined through various techniques. The SWOT analysis, five force model
and strategic factor matrix are conceptual work and based on the understanding and
experience of the author.

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