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Final Project of BSP

LUMS currently follows a mixed corporate strategy of diversification and focus. It has two main business units - its three schools (SBASSE, SDSB, MGSHSSL) and REDC executive education center. REDC generates its own revenue. LUMS' corporate strategy focuses on commercialization, fundamental research, producing high quality graduates, and promoting entrepreneurship. At the functional level, strategies focus on diversification and focus while inheriting these from the corporate parent.

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Muhammad Ali Khan
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68 views

Final Project of BSP

LUMS currently follows a mixed corporate strategy of diversification and focus. It has two main business units - its three schools (SBASSE, SDSB, MGSHSSL) and REDC executive education center. REDC generates its own revenue. LUMS' corporate strategy focuses on commercialization, fundamental research, producing high quality graduates, and promoting entrepreneurship. At the functional level, strategies focus on diversification and focus while inheriting these from the corporate parent.

Uploaded by

Muhammad Ali Khan
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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1) Analyze the Corporate level strategy the firm pursues. What factors help it create Value and Synergies?

Corporate level strategy of LUMS


LUMS currently is following and focusing on mixed strategy with combination of diversification and focused strategies. There are two basic portfolios, first is LUMS itself which is operating with its three its well established schools SBASSE (Syed Babar Ali School of Science And Engineering), SDSB (Salman Dawood School of Business) and MGSHSSL (Mushtaq Gurmani School of Social Sciences And Law). These schools are functionally different having their own fund raising, faculty, management, admission and testing criteria and even in business school they have different grading criteria as well. Moreover, the second portfolio is REDC (Rausing Executive Development Centre) this portfolio is a separate business within the LUMS, they generate their own resource and cash flow to run this unit. REDC is the pioneer in the executive education in Pakistan. Following the combination of two strategies on corporate level, the strategic direction which LUMS is pursuing has few main aspects. 1- Commercialization/Entrepreneurship: LUMS is trying to step forward to enter in the arena to commercialize its final products or inventions for the benefit of society which can generate economic activity. 2- Fundamental Research: LUMS is mainly focusing on to promote the fundamental research though research is already one of the Key Success Factors or competitive advantage of LUMS. However, there is need to extensively improve the style, mechanism and concepts of research. 3- Quality of Graduates: Quality of graduates should be produced who can be role models for other institutes in Pakistan or in the region. 4- Entrepreneurial Approach: LUMS is looking ahead to promote entrepreneurial approach in its students so that they dont do Jobs after completing their graduation. They must go for the business they should become job providers instead of job seekers.

2) Identify the role of the corporate parent in the organization, and how and where does the corporate parent help to facilitate the various SBUs of the firm. 3) What core competencies had the firm developed? Use the competency Tree to determine them. 4) What growth, integration or diversification strategies has the firm adopted at its corporate level? Explain in details, giving evidence and examples of the strategies used. Co-relate this with the 5 Forces model and explain how this strategy (or strategies) helping the firm to use the 5 forces for its own benefit.

Generic Strategies
LUMS is following mixture of two generic strategies diversification and focused strategy. But the main focus of corporate level management is on focused strategy as they are concerned with quality improvements

SBU/Portfolio Level Strategy


Since LUMS is operating in education industry, so its portfolio REDC is only operating in training and development area so it will also be considered relative diversification.

Functional Level Strategies


Functional level strategies are mainly concerned with services and operation. The management on functional level also focuses on diversification and focused strategy and they use to inherit these from corporate parenting.
5) Analyze the business portfolio of the selected company. Analyze which types of strategies that company is using to manage and balance its portfolio. You can use the BCG matrix here to elaborate your point.

6) Portfolio Analysis

REDC is LUMS most stable portfolio. Over the years, REDC has established itself as a hub of excellence and built a reputation based on the world-class faculty, facilities and cutting-edge relevant programs. Another advantage lies within the REDC is its partnership and alliances with institutions like common wealth and INSEAD that allows them to offer rewarding programs. Hence, providing its best services according to the vision of LUMS REDC is self-sufficient in terms of finance, operations and services. They generate their own funds through executive trainings and this is the main reason they have maintained their repute so far through their quality of trainings and services.

REDC focuses on small group of customers so the outcomes are immediate and evident resources are also being shared but REDC management does pay the faculty of LUMS if they engage any of them for the training.

7) Study the Organizational Structure and determine the appropriateness of it with respect to the generic strategies that the organization is using.

8) What type of strategic changes has the company been adapting in the a) Last one Year, and b) in the Last 3 years? Was the change evolutionary or revolutionary? Explain the Magnitude and pace of change. What issues revolve around the change process?

Success of Strategies
Over all strategies of LUMS are very successful because LUMS is achieving all its short term and long term goals. LUMS is producing Pakistanis top starter up resources. As a result, there is a huge economic activity seen through these resources at domestic and international level. LUMS student are now developing international standard software, they are generating economic activity in entrepreneurial stands. Also they are contributing extensively as employees. LUMS students are also getting scholarships in all over the world in routine now. Similarly in the field of research and development they are pioneer, which is a revolutionary change.

9) What steps is the organization taking to constantly learn and improve its self, that would further enhance the firm to protect/develop and or Upgrade its Core competencies. The core objective of LUMS is Education for All across the country despite the cultural and class differences. Following this core objective, LUMS is focusing to strengthen its financial and Strategic position. Further, LUMS has planned to open/start new schools with more diversification so that the quality of education can be provided to larger segment of society and the graduates could add value in the society. In order to enhance the firm to protect/develop and upgrade its Core competencies LUMS is working on the following areas:

Eliminate/resolve the Impediment of high fee structure: Fee structure of LUMS is quite high and is of course not affordable for the higher middle class as well. So, LUMS management is working on to resolve this impediment and to raise some external or internal funds and to introduce new ways and offers for those students who are successful and on merit

Change of Perception: To change the perception of society that LUMS is facilitating to only a niche market or to a specific class of the society. The high fee structure is due to the increasing of inflation in Pakistan and to maintain the state of arts facilities and services and further to meet the increasing expense of the university. Initially, as business entity the focus was on higher class population of Pakistan however, it is out lived now and it is also being discouraged.

Lower the bars of Financial Aid: LUMS is looking to lower the BARs of financial aid to cater maximum students through merit

Make faculty the enterprise, prime/superior within the University .


Faculty should at the top and supreme position in university and administrative staff should work to support the faculty instead faculty act according to or influence of administrative staff.

National Outreach Program (NOP) should spread more LUMS is working on to spread or make the network of NOP broader so that maximum youngsters could get benefit of this.

10) Based on all the above analysis, and the interview with the companies manager, Identify 2 major problems present in the organization (SBU you are analyzing) and also 2 major opportunities that exist keeping in mind A1 and A2. 11) What strategic alternatives would you recommend the organization to counter and cash upon the problems and opportunities respectively?

STRATEGIES FOR LUMS


By analyzing the objectives, following strategies are in consideration: Market Development Strategy Product Development

MARKET DEVELOPMENT STRATEGY Market development means to expand the total market of the company or organization. LUMS need to increase the market development because LUMS have only one main campus in Lahore. Now the time is to increase, develop and expand it into different cities like Karachi, Islamabad etc, and also outside Pakistan because LUMS being the number 1 in business/ IT universities in Pakistan. PRODUCT DEVELOPMENT In order to develop more products LUMS can start offering new products as its competitors are offering these courses like: Undergraduate Degree In Statistics, Pharmacy, Chemical engineering, etc

BSc (Hons) in Mathematics Statistics Social sciences Media studies

PhD programme in

Economics Mathematics Statistics

12) Present practical recommendations to the firm (in terms of implementation of strategies
derived in point 10.

Recommendations
Offering basic training in the field of Management and Science as well as in certain professional fields. Discovering and organizing new knowledge through research Provide high standard education in the most efficient manner to develop and provide outstanding future assets/managers to organizations Maintain the quality of education that is providing at present Focusing on the opportunities and facing the threats in efficient manner

13) Present Conclusion

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