Chapter 2: Critical Review of the Organization

2.1. Critical Analysis of the Organization

Organizational review defines how well the Pakistan civil aviation authority operates,

innovations and human capital, and it has certain high points, but it also has the potential of

developing its facilities. The conduction of an organization’s report is very helpful for updating

and disaster management as it also shows the organization's operations and abilities. The critical

study of the PCAA has been highly useful in improving the organization's efficiency and sales.

2.1.1. Portfolio Analysis-BCG Matrix

The BCG matrix aims to overcome the opportunities that can improve the company's growth rate

and produce the best return on investments, and uses growth rates and market shares as common

elements to measure any organization's growth.

[Link]. Question Mark

It is the first step of the BCG matrix and has a fast market growth rate, but market shares are

comparatively limited due to the new product or service that has not yet determined the

probability of survival and thus no calculation of population contributing eventually to the

performance of that good or service. It will mitigate and reduce the demand, since there are both

openings in this category.

This category can involve new politics, ventures and the business, meaning that the new parking

lot, and the development of new routes and the new baggage policies and regulations, are

identified as a question mark, which explains the fast growth rates for these firms. As the first

and latest segment, the issue marks whether good outcomes can deliver the stars that eventually

allows the firm to reduce its profit margins and control its cash generation.
[Link]. Star
Star in the BCG matrix stands for the highest service quality in lounges and during aircraft stays

by PCAA. These services are very pricey relative to other PCAA services but their quality is of

the highest quality. Most of the cash produced by the star is spent on the business itself to keep

and restore. The rate of growth is high as well as the share of the economies. After passing the

check-in area and boarding, passengers can exclusively wait or rest in the lounges, before and

after the flight. There is a little bit of a fee for that specific service, yet the excess of the hanger

aircraft also costs the PCAA a lot of money but in return it provides the basis to allow the aircraft

to stay abroad. These PCAA services maintain fast growth rates as well as high cash supply. The

job of radar maintenance and route tracking may also be involved.

[Link]. Cash Cow

PCAA has two sources of revenue: one aeronautical and is used primarily to promote one of the

main customers of airlines; the cash cow in PCAA can be considered a non-aeronautical sources

of generation, as it offers continuous cash generation. If air space is shut down or is limited at

some point, the aeronautical income stops being generated for a while. The stores serve the

employees, regardless of airspace concerns, since even when airspace is shut down, the office

work keeps on making the money and is regarded as a source of non-aeronautical income. Cash

cow does not guarantee high cash production at the dramatic pace of growth. It is the third step

or segment in which smaller investment pay off in several forms. Cash cow is known for all

company investment, which continuously leads to profit production.

[Link]. Dog
This is the situation under which the business can not expand or produce profits. It requires

large-scale investments, which still do not yield too much. In the PCAA, the service provision to
the national carriage firm PIA is the most dubious aspect, but it does not have an accrued debt of

several billion rupees. As the PIA national carrier, the investment in resources or leniency to PIA

has been a dog for PCAA amid these favors. PIA is now a national carrier. PIA did not

compensate for the money relaxation, which creates instability in the nation's GDP and PCAA

losses. PCAA has undertaken many changes since last years in order to avoid dogs, it is the

worst situation and, by entering this situation, Pakistan's GDP could be affected so that PCAA

can face a hurdle of dog phase, where it can never again become cash cow and made no profit in

financial terms, with the aim of providing standardized service quality. It is faced by low growth

and low market share.

2.1.2. Competitive Analysis-SWOT Analysis

In order to meet the output gaps, the PCAA has been determined to undertake an inner and

external environmental review. SWOT analysis helps detect operational capacity and efficiency

and contributes to change (Strategic plan 2013).

[Link]. Strength
Strength are the strengths which offer a competitive advantage on the market to a company. The

PCAA's attributes

 It is an agency controlling air traffic laws in Pakistan.

 It is a powerful strategic organisation which facilitates air traffic management.

 It is Pakistan's only foreign aviation representative.

 The air flow functions in safety-oriented and efficient.

 The rivalry doesn't have.

 The network has grown thanks to a wide variety of regional connectivity.

  Supports a philosophy of protection.

[Link]. Weakness
The factors which strengthen the area can be regarded as weaknesses. The PCAA vulnerability is

the following:

 As the federal body, the percentage of ageing workers in early retirement is grosser.

 Since most workers are older than 45 or 50 years, they are also not inspired to use their

best talents.

 There is a shortage of preparation despite being the government body.

 The aircraft industry is continuously evolving technologies because of safety concerns

and it is difficult for people of high age to learn new technology.

 Surplus HR is available.

[Link]. Opportunities
Opportunities are also the opening of the competition that will increase the organization's

performance, if used.

 Corporate institutional alignment to elevate effective efficiency.

 The pure commercial monopoly

 Managing body

 Owned by government

 No rivalry. No competition

 Currency swap

 Globalism

 Activities International Channel

  Establishes connections and international ties

 Sensitization

[Link]. Threat

Currently, risks are external influences that may impact an organization's performance in some

direction. PCAA is endangered

 As Pakistan is the developing country in technological development, the outcome of

technical problems in flight operations is not as advanced as other countries.

 The PCAA has trouble keeping up with emerging technologies as its laws regulate a

developed world due to evolving economic trends as a result of technological and

political reforms.

 As in all other government sectors, corruption is a big problem, PCAA is often faced with

corruption problems.

 Political interference is also a threat, as is political influence over reforms in the PCAA

due to change of government.

 Trust in the wellbeing of travelers.

 Climate change and epidemics like corona are still a threat to the aviation industry in

general, which eventually affect the PCAA.

2.1.3. Environmental Analysis-PESTLE Analysis

Pestle review describes the macro-environmental variables that may impact PCAA's output in

some way. It's really important to control the world in an organisation like PCAA so that we

keep track of trends and players which may have an effect on the PCAA interests (B2U, 2016).

Pestle analysis involves the following:

[Link]. Political
The shift in the political pattern causes PCAA to stuck in the political clash as any changes in

democratic authority impact the efficiency of the PCAA are the governmental entity. The

political power can be infiltrated from either direction when examining the climate. Any changes

in government policies such as taxation have their effect on PCAA results, such as recent

inflation and taxation, which stop the generation of revenues, political stability and external trade

policies both affect the aviation industry and eventually the PCAA. The PCAA has also been

battered by recent labor law and trade restrictions which prove the impact of politicians on the

PCAA as stakeholders.

[Link]. Economic
The dysfunctional economy also causes chaos in PCAA, as a political organization. The fall in

monetary valuation inevitably leads the growth of organizations such as PCAA to decline.

Exchange and interest rates have a major effect on the PCAA in resolving such a crisis. PCAA

has made new strategies to stable the production of revenues by rising inflationary pricing.

Increased fuel costs in the PCAA have resulted in uncertainties and the adverse financial

paradigm is mitigated.

[Link]. Social
The essence of PCAA function is worldwide where social contact is necessary to increase

development. The country's demographic also influences air travel and dictates the need to link

air travel to each other in the future. In addition, the provision of PCAA facilities should also

take a step forward in introducing cultural shifts in order to adapt appropriately. Social contact

has been checked as a significant reason for air transport to become a player in the PCAA.
[Link]. Technology
Aviation is an international industry that operates in order to keep pace with emerging

technologies in the developed world and make airlines more comfortable, the PCAA takes note

of the need for new technology to make modern aircraft more readily available, which eventually

raises the air traffic in the country by raising its GDP by increasing its revenues.

[Link]. Legal
In order to resolve legal problems, each company must have offices. PCAA offers foreign

service and any wrongdoing can lead to court proceedings that are adequately dealt with. On a

daily basis the health and safety legislation is one that PCAA has to deal with, since the PCAA

has a duty to ensure that aircraft are worthy of flying without causing a health or security threat,

and also the provider of services that uses HR, so it can come up with situations to deal with the

laws of consumers or the labor law.

[Link]. Environmental
Some countries may not allow aviation to be carried in order to guarantee environmental

protection, aircraft that generate unnecessary noise and smoke are prohibited. Failure of PCAA

to permit a certificate of airworthiness may lead to a stir in the international context which

produces an illusory picture of the world, showing that the environment is also an active partner

of PCAA. Moreover, it is not preferable to collect any demands for landing or departure in harsh

climates, which makes the atmosphere influential for PCAA.

2.1.4. Financial Analysis-Financial Ratios

The 2015 to 2017 financial analyses disclosed different facts that provide an analysis of the

PCAA's financial statements.

[Link]. Financial Highlights from Year 2015-2016
In the 2016 financial analysis of PCAA, sales increased from 52 to 66 billion, which reflects a

net growth of 27 percent since 2015. The pre-tax surplus rose to $22.3 billion, which was $18.9

billion between 20014 and 2015. A total of 14,5 billion debt recovery charges against PIA, which

in recent years has proven to be a significant default on PCAA. As a result of the revaluation,

PCAA's assets rose by a total of 20.3 percent. The reserve was 20.6 billion (investments/deposits

included in cash reserve).

[Link]. Financial Highlights from Year 2016-2017

Complete assets rose from 373,112,418,000 to 404,064,598,000. The rise from 64 billion

(restored) to 71 billion in revenue generation increased. The pre-tax surplus is estimated to be 37

billion out of 22 billion. The fluctuations in CAA funds indicate that they are increasing from 16

to 18 billion. In 2017, the subsidy earned from the government of Pakistan was 3,427,915,000.

This figures all display the improvements and variations in civil aviation's financial statements

over the past few years. It has developed since most categories have come from the final values

and indicate that the profitability and the financial statement have changed dramatically.
[Link]. Evaluation

Financial Status PCAA

450,000,000,000

400,000,000,000

350,000,000,000

300,000,000,000

250,000,000,000

200,000,000,000

150,000,000,000

100,000,000,000

50,000,000,000

0
2015 2016 2017

assets surplus before taxation expenditure income

Figure 1:Evaluation of Financial Statement PCAA

The appraisal suggests that the PCAA is in a profit-oriented market and over the years has

continued to minimize the pre-tax surplus (PCAA, 2016, 2017) and the substantial shift in the

revenue and investment of the aviation industry is retaining its full value for profit.

2.1.5. Marketing Strategies

Therefore, like all other organizations, PCAA stresses the marketing mix with the use of 4Ps to

illustrate marketing approach to make a marketing strategy very important. It is important to

position the write elements in the right place and to get the competitive edge in line with time in

order to execute the business plan and understand the market better.

[Link]. Product
The first stand in 4P is for the product which distinguishes between the essence of the product,

because PCAA is a regulatory body such that the goods it manufactures are intangible, and it is a
service delivery organization, enforcing rules and regulations and also promoting the quality

services rendered by both national airlines and passengers, PCAA's services also includes This

PCAA would also allow airport passengers to experience convenience while they remain at the

airport. All the revenue that PCAA generates is either from aeronautical or non-aeronautical

sources that are precisely in order to accommodate the facilitation of passengers and airlines. The

public who travel to and from airport facilities though aeronautical facilities are intended to

provide an efficient service and also to enable them to travel in Pakistan's airspace are mainly

non-aeronautical resources.

[Link]. Price
The pricing in exchange for services is a crucial move and unlike goods, services rates are

dependent on the attempts that can be taken to provide those services, it is not an error to say that

PCAA's pricing policy is skimming pricing. In every pricing policy, there are rules and bases that

ultimately provide the argument to set the price, the explanation for skimming prices is as the

regulatory body PCAA rules the aviation industry and no matter which pricing strategy

customers have to use, there are no rivals in the market of regulatory service in Pakistan.

Although being the sole participant of the PCAA market is also a large asset, the ultimative

generation of revenues is ultimately high due to the overwhelming strategy to generate revenue,

but also to the value of services. PCAA thus gains a maximum benefit from its pricing strategy

(PCAA, 2019b).

[Link] Place
The position shall decide the way the PCAA programmes are delivered. The services operated by

the PCAA will only be accessible at PCAA-competing airports, which means that it will not be a

mistake to claim that PCAA is any form of franchising as airfield facilities and aircraft parking in
the country are only available at airport functioning in compliance with PCAA Command and

Regulations. The franchising approach for the provision of facilities is also a strong

consideration for the PCAA. For the reason of allowing all clients to have access to the facilities

supplied by PCAA, it was the safest way to pick the places where consumers require those

services, which ensures that the airports represent the common point for departures and arrivals.

[Link]. Promotion
The service is a kind of unwritten law that airlines requiring facilities in the Pakistani premises

that need air services have to go to PCAA's airport services. Being the only remaining

organization, the services need to be promoted is the PCAA. Therefore, it is not appropriate to

encourage a technique, since a structured protocol is used to assist the aviation authorities of a

country to travel or use their airspace. However, if you would use both public and social

networking sites to advertise the services offered to monitor and ensure safe air travel, you can

call the PCAA Marketing Approach.

2.1.6. HR Analysis
HR research is worthwhile to evaluate the pattern in human capital. PCAA is an agency, which

relies largely on human capital, since the quality of services depends on the strategy and

operation of the human resources organisation, and PCAA is responsible for the HR in order to

achieve a quality, efficient performance (PCAA, 2010). The findings of HR review are based on

the following things:

[Link]. Employee Churn Analysis

In order to maintain the efficient workers, it was considered as the first move in evaluating

employee churn to consider the causes for the attrition, it was studied that employee churn

typically has fewer in PCAAs and it offers additional incentives in order to retain the staff.
[Link]. Capability Analysis
This includes evaluating an employee's core capacities to illustrate the competence of the HR to

perform such jobs, PCAA has access to capability to allow the HR to work in its full potential,

and it has been reported that the PCAA interviews are very successful in finding the right

applicant to do the job. PCAA is tightly governed to assess the workers' ability to deliver

production results in order to shape the success of the enterprise as a whole. PCAA develops

executive skills through multiple preparation exercises and presents staff with the daunting

challenge in a short timeframe to gain input into their decision-making processes. If the skills

have been assessed, the company, by means of capable HR, often becomes a benchmark to meet

standards and the PCAA makes its visions and sells them around the enterprise as a guide to

achieve them.

[Link]. Organizational Culture

The influential workers empowered to carry out the mission would be produced in a safe

atmosphere. HR analyses often explore corporate culture and encourage workers to develop

peacefully and intellectually. As all processes adhere to SARPS, the community of PCAA is

strongly uniform. As a Regulatory Agency, the primary role of PCAA lies in evaluating its

corporate culture and influencing it to facilitate safe air transport according to its mandate and

vision. Like every other business, tremendous attempts have been made to foster the culture of

PCAA as an assurance culture. The HR of PCAA functions in a society where it is normal for

thousands of lives to be led by a small mistake that encourages a stable climate. For delivering

professional service, it is highly necessary for workers employed in a healthy community to

encourage protection in their atmosphere of employment, to ensure productivity by ensuring safe

aviation.
[Link]. Capacity Analysis
The ability of sales is important for the study of HR. The capability review by PCAA has shown

that it led to controlling workers to prevent losing their time or washing money, the SQMS

department of PCAA has tracked HR processes and is structured to execute safety and quality

management assessments, thus ensuring that PCAA controls its HR reliably and faithfully.

[Link]. Leadership analysis

Both PCAA departments have a department chief and all matters relating to PCAA are handled

by the leader so that PCAA empowers its leaders to direct the HR in an efficient manner. The

leadership review tests the characteristics of leaders who will guide HR to improve the

organization's success. The characteristics and values of the leading figures are important to

maintaining the validity of the SARP advice provided to the HR. Different characteristics

indicate the performance of HR under the PCAA.

2.1.7. Major competitors of the Organization

One of the major benefits for the PCAA is that it, like all regulatory agencies of other nations, is

the single industry operating body. All jurisdiction involving the allotment or authorization of

airspace for entry into airspace, as well as the use of the airspace for crossing over or to land, is

also the property of the PCAA, even on grounds that a plane wants to land in the region, must

request the permission to park in advance and may have to pay the PCAA the fee for it for a time

longer than that. As a result, PCAA has different attached favors and produces strong profits to

boost the country's GDP due to its single gain. The corporation is regulated by the monopoly

clause. It has the authority of its own right to develop marketing tactics such as pricing, location

and promotion, where no other rival exists and where all rights in respect of the dealing of the

associated services are held by PCAA. The Commission may fluctuate rates in relation to the
economic situation and by means of its own approval, lead air traffic into and outside the

country, it may prevent any airline from accessing the airspace or providing relief to any aircraft

by offering different discounts on air travel routes.

2.1.8. Market Shares of PCAA

The importance of the market share is just a monopoly for the PCAA. His Monopoly helps

PCAA to achieve supernormal revenues by fixing rates in line with the consent of PCAA,

thereby allowing PCAA to enjoy its 100 percent market share. In periods of large economies of

magnitude, PCAA will benefit from lower average costs. However other businesses will also

create a favorable atmosphere by grabbing customers away, but this will be achieved on air

travel, if the shortage of facilities leads to a misunderstanding of air travel then other modes of

transportation will steal away the travel customers which would allow the PCAA to lose its

customs in the long run (Pettinger, 2017). In order to prevent such an atmosphere PCAA

maintained its role as a single monopolist by offering premium services, since PCAA was able to

obtain the most productive position to preserve the monopoly condition that ultimately lets the

company produce the customary benefit and gain all the market shares by standing firm.

2.1.9. Success and Failure of PCAA’s Services in the Market

Civil aviation facilities are overseen by the SQMS department to ensure the success of the

services rendered by the Civil Aviation Authority. The department running under the PCAA is

performing all investigations to ensure the performance rate of the PCAA programs (PCAA,

2018b). The success of PCAA services can be seen from its link with the international air

transport authority. Since the aviation industry operates globally, PCAA strictly applies all the

safety provision of the IATA to guarantee safe travel, it is the duty of PCAA to ensure not only

the protection of its passengers but also the safety of foreign passengers to facilitate tourism. The
image of PCAA as a developed country matters a great deal to the country's internal economic

development, because PCAA's success or failure does not only shape its destiny but also shapes

the country's economies by making a significant impact on its GDP.

The number of flights that fly from and to the country indicates that the PCAA services are

efficient, since the revenue generation increases with each year, as well as with port formation

and other country changes and a strong profit margin with the airspace between many other

countries. This is visual evidence of the success of operation, which is not influenced by cost, in

order to remain in line with the international league's competitive organization, where aviation

laws are enforced across the air transport network.

References

 B2U. (2016). PESTEL Analysis (PEST Analysis) EXPLAINED with EXAMPLES |

B2U.
 PCAA. (2010). About HR - PCAA.
 PCAA. (2016). financial statement PCAA. Financial Statement, 83.
 PCAA. (2017). financial statement PCAA. Financial Statement, 66, 37–39.
 PCAA. (2018b). PCAA | Pakistan Civil Aviation Authority. Retrieved December 8, 2019,
from Pcaa website: [Link]
 PCAA. (2019a). Air Traffic Management - Air Navigation Services.
 Pettinger, T. (2017). Monopoly | Economics Help.
 Strategic plan. (2013).