Strategic Management

Submitted by;

Muhammad Nabeel Gul (62377)

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

Submitted to;
DrHanif Muhammad
 INTRODUCTION OF COMPANY
TCS stand for TRANZUM COMPANIES AND SERVICES. TCS ("A Tranzum Enterprise") is a Pakistan
based courier service. The company was started in 1983 and now it serves five continents and
has over 2,000 locations in Pakistan. The company also has an airline for cargo purposes only
which it uses at many of the airports in Pakistan. Almost three decades into its existence, the
TCS brand has evolved, into a symbol of trust & reliability. TCS provides domestic &
international express services to consumers, corporates, SMEs and households alike, with
pickups & deliveries crossing over 6 million a month. TCS operates with over 6,000
professionals, 24/7 call center, 430 plus conveniently located Express Centers, dedicated
chartered aircraft, 2000 on-line & offline locations, 225 plus satellite tracked delivery vehicles
and a proficient team of couriers dedicated to providing you the best of service and reliability in
the industry. With a view to enlarging its presence in the global village, TCS operates in
international territories through its business partners in Dubai and London, providing access to
its customers to over 3,500 destinations worldwide. TCS has achieved many milestones by
investing into its business model that continues to grow stronger. Realizing the customer needs
and expectations have always been the driving principles in the milestones that TCS has
achieved over the years. This has resulted in setting benchmarks to improve the overall quality
and standards of the express courier industry. TCS achievements have led to a case study,
undertaken by Harvard Business School in 2003 for 'International Entrepreneurship' course of
MBA. It has been mentioned in the textbooks used by Harvard Business School as a model of
highly effective company from the developing world. A case study on TCS has also been
included in Philip Kotler’s latest South Asian edition of “Principles of Marketing” which is being
taught at the best & biggest Business Schools across South Asia.

BUSINESS SCOPE
“We are catering to the need of “delivery” of promises. A promise to deliver your time define
and sensitive documents safely”.
 Our Purpose
To continually strive to achieve excellence - both on and off the job

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”.
 CORE VALUES

Quality:
TCS people should direct every effort to deliver maximum value and satisfaction to our
customers.

Profitability through Efficiency:

Efficiency will be the hallmark of TCS people to optimize profitability and growth.

Ethics:
Nothing unethical shall be practiced by TCS people in relation to our customers and the
world at large.

Justice:
Justice to be the guiding principle of TCS people.

Creative Growth:
In its quest for expansion TCS shall encourage innovative thinking amongst its people.

LEADING INDICATOR:
 Technology
 Speed/time delivery
 Trust
 Price consciousness
 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: WEIGHT RATING WEIGHTED SCORE
1. Independent and self-
reliant cargo operation.
EFE
0.12 3 0.36
2. Own our own fleet of MATRIX
Trucks, Vans and
OPPORTUNITY:
Motorcycle. WEIGHT
0.10 RATING
4 WEIGHTED
0.40 SCORE
1 . Collaboration/Merger
3. Country wide branches. 0.05
0.13 1
4 0.05
0.52
2.
4. Global Expansionairplanes
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
THREATS:
domestic market. 0.05 3 0.15
6. Owns
1. Fuel costa highly trained 0.05 2 0.1
workforce.
2. Govt Taxes 0.07
0.2 3
3 0.21
0.06
3. Competitors price
WEAKNESS: 0.1 4 0.4
4.
1. Security
EmployeeRisk turnover is 0.05 2 0.1
5. External
high andFactors
these 0.05 1 0.05
employees eventually TOTAL 2.6
joins competitors. 0.10 2 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
IFE Findings: After evaluating the internal factors we have identified some strong point of tcs
that they have their own trucks,vans, motorcycles for courier delivery and they don't need any
third party logistics and they also have strong and vast branch network which help them to
collect and distribute courier nearby their branches they don't need to cover miles for delivery
Threats for tcs are that they have high employees turnover which eventually joins their
competitor in this regard they have to give some more incentives to their employees to low
down turnover rate and the second threat is international exposure currently they are relying
on their international partners as our team suggest tcs to expand their business international
which will reduce the cost they are paying their international partner
EFE Findings: the strong opportunities for tcs are global expansion and e-commerce,tcs is a
local company our recommendation is that t cs have move it's business out country Which will
definitely grow thier grouth and by using e-commerce they will expand their business rapidly
then other competitors.
The biggest threats for tcs is competitors price to cater this they will have to reduce prices and
another threat is govt taxes which definitely they can not control
 CPM Findings: The strong critical success factors which makes tcs to stand alone in Pakistani
market then the competitors are service quality, advertising and customer loyalty tcs is
currently providing best service quality than other competitors like DHL and UPS, Because of
best service quality the customer of tcs is more loyal than other courier companies which help
tcs to focus attracting new customers.Tcs also advertise more often than competitors.
The weak factor for TCS is already discussed in EFE and IFE matrices is that they Don't almost
exist in international market they really have to take some strong actions to expand business
globally.

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: WEAKNESS:
1.      Independent and self- 1.      Employee turnover is high and
reliant cargo operation. these employees eventually joins
competitors.
  
2.      Own our own fleet of 2.      Lack of formal formal contract with
Trucks, Vans and delivery person.
Motorcycle.
3.      Country wide branches. 3.      They are not cost efficient in their
operation. Cost incurred delivery staff
need training
4.      Independent airplanes 4.      Limited resources to cater global
operation and their licenses. market relies on international partner
for its overseas operation.
5.      Heavy advertising in the 5.      No focus on building relationship
domestic market. with customers.
6.      Owns a highly trained 6. Decentralized operation
workforce.
  SO STRATEGY WO STRATEGY
OPPORTUNITY:  
1. 1. We can start our 1. Make contract with the online shopping
Collaboration/Merg operation in developing 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 1. Provide low cost facility for the new
2. Govt Taxes price. (S1, S2, T3) customer.
3. Competitors price 2. Improve fuel consumption (T3,W3 )
4. Security Risk through fuel efficient vehicles. 2. Shift facilities to that area where
5. External Factors (S2, T1) laborischeaper. (W1, T3 )
3. To provide incentives to  3. To build relationship with customer.
employees for retention. (S6, (W5, T5)
T4)   
 

SWOT 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
SPACE 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)

BCG 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

IE 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

GRAND STRATEGY 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.