Term paper Presentation Presented To: Sir Dr Ijaz A. Qureshi presented By: Zeeshan Ali 10630 Email: Shani_10630@yahoo.

com Department of Management Sciences IQRA University Islamabad

Strategic Analysis Of WAPDA Pakistan

Our Country is facing severe electricity power crises since 2002. This has been a disaster for our economy because WAPDA is failed to fulfill the needs of our industry so our industries are going to close and the industrialist are transferring their capital to other countries. This paper will investigate the internal and external issues and will evaluate standing of the organization to assess the position by SWOT analysis, Internal Factor Evaluation, External Factor Evaluation.

WAPDA (Water and Power Development Authority) was established in 1958 And WAPDA is a non profit organization. The Chairman of WAPDA is Raja Perveiz Ashraf. The responsibility of WAPDA is generation, transmission and distribution of power. WAPDA is responsible for the development of the Hydrel Power and water projects in Pakistan. The golden period of WAPDA was in between 1995 to 1998.

The vision of WAPDA is to provide electricity in every door step of all over the country. So in this way to achieve this milestone they want to create 35000 MW till the end of 2025.

Our mission is to bring the assurance of energy to our consumers, with world class quality and commitment for the satisfaction as we continue in our quest for excellence. WAPDA wants to contribute in the development of Pakistan by managing smoothly.

ANAYSIS AND RECOMMENDED STRATEGIES

Big Infrastructure

Rent out distribution Channels to contractors and focus on capacity building program to enhance generation capacity i-e new Mega Projects.
Subcontracting in distribution

Control over Resources

Rise of Construction Costs

Establish own cement plants for manufacturing inputs for new Mega projects.

Lack of funds for New Mega Projects

Make contract with China for new Mega Projects .

China is interested to take new Mega Projects

Lack of Civil Eng. Skills

Joint Venture or Partnership with construction and Cement Companies

Contractors bargaining

Key Internal Factors

Strengths
1
2 3 3 4 5 6 7 8 9

Weight

Rate*

Weighted Score

No Direct Competitor Government Support Tax Evasion Big Infrastructure/well established operations Economies to Scale Technical Competency Control over Resources Low Employee Turnover (As Per Record) Satisfactory current Financial Standing Growing Demand of Electricity

0.05 0.04 0.02 0.05 0.04 0.05 0.05 0.03 0.05 0.03
0.07 0.15 0.05 0.05 0.04 0.05 0.03 0.05 0.03 0.02 0.05 1.00

4 3 3 4 4 4 4 3 4 3
1 1 1 1 1 1 1 1 1 2 1

0.2 0.12 0.06 0.2 0.16 0.2 0.2 0.09 0.2 0.09
0.07 0.15 0.05 0.05 0.04 0.05 0.03 0.05 0.03 0.04 0.05 2.13

Weaknesses 1 Corruption ( 2nd after police) 2 Weak Management (long chain of officials and no vision) 3 Very low delegation of authority/No team work/lack of employee empowerment (set rules and regulations) 4 Lack of HR Dept to Develop Human Resources 5 Record is maintained manually (Lack of MIS) 6 Lack of Civil Skills 7 Poor Reward System (no incentives) 8 Low Morale Employees/ Time wastage during office hours 9 Inefficiency and wastage of resources(linelosses,ineffective SC) 10 Cost Over run (specially in site offices)
11

Lack of R & D department

TOTAL

The score 2.13 which is below average, indicate the very weak internal position of WAPDA. This shows that the company is not performing well. It has to make certain strategies and take some drastic actions to over come its weaknesses, because no planning has been done in the past few years to over come these problems.

Key External Factors Opportunities 1 Potential Capacity of 50,000 MW through Hydel meansestimated 2 is interested to take new Mega Projects 3 Privatization 3 Joint Venture or Partnership 4 Subcontracting to private Cos in distribution and new projects 5 Growing Economy 6 Can Export electricity if Vision 2025 has successfully been achieved Threats 1 Law & Order Situation 2 Change of Government Policies/Political Instability 3 Environment Changes/ Natural Disasters, as most of the Dams are in Hilly Areas 4 Political Terms with Neighbor Countries 5 Borders Situation 6 Rise of Construction Costs 7 Contractors bargaining TOTAL

Weight 0.08 0.10 0.06 0.07 0.07 0.09 0.02

Rate* 2 3 1 1 1 2 2

Weighte d Score 0.16 0.30 0.06 0.07 0.07 0.18 0.04

0.12 0.15 0.03 0.05 0.02 0.06 0.08 1.00

2 2 3 2 2 2 1

0.24 0.30 0.09 0.10 0.04 0.12 0.08 1.85

EFE score 1.85 tells that WAPDA external situation is alarming. Numbers of external factors are affecting WAPDA negatively. This EFE matrix show us that company is facing some major threats externally which make problems for company in future, they have to start planning now to narrow down the problems of the future. As we have seen in opportunities they are less as compare to the threats.

Privatize WAPDA like PTCL to boost its performance. This will also help in controlling of corruption. Introduction of IT based recording systems within all departments Government dependence should be minimized and internal system of the organization should be strengthened.

Proper Research & Development Department should be established. There should be a department directly responsible to Chairman for monitoring and controlling of corruption A Career Development Cell should be established to recruit capable employees within and from open market to locate them in proper places and responsibilities. Promotions should be on performance bases