REGUS PAKISTAN

OD&A Term Project

Zarmeen Siddiqui
Hassan Ali Tirmizey
Sabih Ur Rehman Siddiqui
Nehal Zafar

Introduction
Regus plc. is a multinational organization that gives the modified settlement in office work
focuses. It operates in 2000 locations, 100 countries all over the world. The organization is
registered in the London stock market trade and is a constituent of the FTSE 250 list.
Regus is headquartered in Luxembourg City, Luxembourg.
Regus Pakistan:
Regus is operating in Pakistan since 2002 and offering its business support services in
locations like Dolmen Executive Tower, Clifton and Bahria Complex II and III. Regus is
also expanding its centers in Islamabad and Lahore.

Products and Services

Co Working office Space

Virtual Office

Internet Services

Telephone Answering

Meeting Rooms

Customers

Ernst & Young

Chevron Pakistan

Tundra Fonder

Trust Investment Bank

Path Solutions

Hi-Chair

Organization Diagnosis

Environmental Forces:

Social and Cultural Forces

The business support industry is something new in the Pakistani culture, which mainly people are not even aware of.
Moreover there are not any local investors even who think of investing to this side. This is a social behavior as they
dont even have a clear concept of office spaces, so their behavior towards this concept remains ignorant.

International Forces:

Regus has a formula to charge its client. They charge their client on the basis of UK pound. So if the value of pounds
increases internationally it will affect the monthly fee for the business support services they offer to all their clients in
different countries. So they follow a fixed exchange rate for this currency which is determined by the headquarters,
even when the rate keeps on fluctuating Regus charge their client as per there policy.

Technological Forces:

Regus policies are very strict related to this, as they have molded themselves in the anticipation of changing
technology. For providing best internet facility they have installed the latest Cisco network systems available in
Karachi.

Economic Forces:

Unemployment rate in Pakistan is very high which forces new investors to provide job opportunities and
entrepreneurial services, thus Regus provides solution to this by giving cost effective solutions to young
entrepreneurs to start their business.

Industry Structure:
Suppliers
Regus has their vendors who offer those services like tech support, furniture, technology equipment,
few of their vendors also help them with stationary and snack items.
Buyers
The main customers of this industry are SMEs and MNCs
New entrants
Many investors are investing in this business model however there is no such group who can
compete to organization like Regus.
Substitutes
In Pakistan for MNCs Regus is the only solution if they want business or co working space, however
entrepreneurs and SMEs intent to move to other business service provider. Competition is very less
in this industry.
Competitors
In country like Pakistan there are several organization who are competing with Regus like Hi Five,
Venture Dive and Dot Zero.

Design Components
Technology
State of the art technology is being introduced in all of their centers, so it is part of their policy to introduce latest technology and stay
up to date and its part of their policy.
Strategy
Regus is expanding its business rapidly and developing its centers in more than 100 countries, since it is serving in many countries to
many different people so it has to coup up with the culture of that country and has to set their working policies accordingly.
Structure
Structure of Regus is formalized
with a centralized management system.

Human Resource System

Regus Karachi does not have a specific human resource department, so all the recruitment is done through an online process .
Measurement System
Yearly performance appraisals are conducted, mostly in the month of April or after one year completion of a specific employee.
Self-evaluation forms are used for this purpose, further evaluations are done by the country head

Organization effectiveness
Profitability
Regus is the largest provider of flexible office space solutions having operating profits up
to 33%, constantly focusing on growth.
Productivity
Regus have centers in almost 2000 locations, only have a total staff of around 8000
employees (as per 2013 records), this shows their productivity as they have substantial
growth of 30% (recorded) hand in hand with not a very large workforce.
Stakeholder Satisfaction
The company is highly profitable with constant growth every year due to which all
stakeholders seems to be satisfied with Regus.

Problem Identified

This scattered system of Regus makes operations complicated in most of the centers and
Karachi center is also facing problem with this respect, clearing of invoices, termination of
contract, Receivables etc.

There are many payments which are paid by the clients out of which several payments are still
unrecognized, because account of Regus Pakistan is connected to finance department in
Philippines it takes them time to identify who has made the payment.

Clients do complain about such issues which are forwarded to finance department, but all the
communication is over emails, and for such problems there are various protocols, approvals
and steps to be followed because of which processes gets delayed.

According to GM of Regus Karachi Its a Mess.

Recent change

Technological changes have been observed recently in the organization, and the center
has been equipped with latest CISCO devices in order to give better internet services to
their clients.

Online training has been given to CRMs regarding the understanding of ERP software
they are currently using in the organization.

Force Field Analysis of Regus

DRIVING FORCES

Communication Gap

Disturbed Financials

Miss Managed Work System

Organization

structure

PROPOSED CHANGE

is

scattered.

Work load on employees.

Late

Sittings

organization

as

in

relationship

managers are taking care of

financial issues which is not
the

part

description

of

their

Every center should have a separate

finance department which will be
responsible

the

job

RESTRAINING FORCES

to

carry

all

finance

operation i.e. , clearing of invoices,

termination of contract, Receivables
and should be reporting directly to
the head office in Philippines

Strict Company policies

Lack of Employee Empowerment

Employees incapability

Few employees to support the

operation.

Conclusion
Regus is one of the biggest group who is offering co working space and business services
all over the world, After evaluating the overall situation of Regus center Karachi, we found
that it has couple of problems which they are currently facing and the main cause of it are
as follows:

The overall structure of organization which is scattered all over the world

Communication Gap

Strict HR and Operation Policies

Recommendation
Following are recommendations to Regus:

A separate finance department should be taking care of overall financials of one center.

They should hire more employees per center, in order to distribute the work adequately.

THANK YOU!