Project Management 1

Rabia Iram

Project Management

2nd Assignment
Presented to: Sir. Naeem Akhter
Allama Iqbal Open University, Islamabad

Presented to: Sir. Naeem Akhter

Allama Iqbal Open University, Islamabad
 Project Management 2

Acknowledgment

This report is a thorough essence of my rigorous studies which I undergone

through in a period of two months in Sareena Hotal. I have exclusively studied
and observed the operations/ functioning of the hotel and tried my best to abreast
myself with all the dimensions of the hotel. The purpose of this report is to
evaluate the performance of Sareena in diversified avenues and give concrete
recommendation for further improvement. Although the hotel is functioning
satisfactory, but the path to ultimate success is still full of threats and hurdles.

It was a great experience to work there and contribute handsomely in the process
of appraising its pros and cons and feeling to be a significant part of the bank.

I am thankful to all those who helped me in one-way or the other and guided me in
the preparation and compilation of this report in a presentable fashion.

Rabia Iram

Presented to: Sir. Naeem Akhter

Allama Iqbal Open University, Islamabad
 Project Management 3

Table of Contents
Title Page No.
Acknowledgment 2
Table of Contents 3
Project 3
Project Environment 5-7
Project Participants 8-9
Project Stakeholders 9-10
The Project Life Cycle Stages 10-12

Islamabad Serena Hotel 13

Mission Statement 14
Company objectives over next five year 16-18
Major policy Statement 18-20
Strategic Plan 22
26
Opportunities
Threats 27-29
Strengths 29-30
30-32
Weaknesses
32-35
Recommendation:
35
Reference

Presented to: Sir. Naeem Akhter

Allama Iqbal Open University, Islamabad
 Project Management 4

Project
J. M. Juran defined project as
“A project is a problem scheduled for solution.”
Problem refers to the gap between where you are and where you want to be, with
an obstacle that prevents easy movement to close the gap.
Projects are a group of activities that have to be performed with limited resources
to yield specific objectives, in a specific time, and in a specific locality. Thus, a
project is a temporary endeavor employed to create a unique product,
service or results. Projects are an investment on which resources are used to
create assets that will produce benefits over an expanded period of time. It is a
unique process, consisting of a set of coordinated and controlled activities with
start and finish dates, undertaken to achieve an objective conforming to specific
requirements, including the constraints of time, cost and resources.
Short Range Projects:
They are completed within one year, and are focused towards achieving the
tactical objectives. They are less rigorous; require less or no risk. They are not
cross functional.
These projects require limited Project Management tools, and have low level of
sophistication. It is easy to obtain approval, funding and organizational support for
short range projects. For example, reduce defect in shop number two from 6 to 4
percent.
Long Range Projects:
These projects involve higher risk and a proper feasibility analysis is essential
before starting such projects. They are most often cross functional. Their major
impact is over long period of time, on internal as well as external organization.
Large numbers of resources are required to undertake long range projects and
they require breakthrough initiatives from the members.
Why Projects are initiated?
Projects are initiated in the following scenarios:
• When starting a new business.

Presented to: Sir. Naeem Akhter

Allama Iqbal Open University, Islamabad
 Project Management 5

• In order to develop/ modify a product or service.

• For relocating and/or closing a facility.
• For regulatory mandate.
• For some community issues.
• In order to re-engineer the process so as to reduce complaints, reduce cycle
time, and eliminate errors.
• For implementing a new system or process.
• To introduce new equipment, tools or techniques.
Attributes of a Project:
Projects focus on a single goal as compared to a program. They have customers
who are affected by the end results. They have to be completed within specified
time frame (completion date), within budget (limited resources including, people,
money, machines) and should be according to the specifications (with a certain
level of functionality and quality).
In brief projects are:
• Directed towards achieving a specific result.
• Coordination of undertaking of interrelated activities.
• Of limited duration, a beginning and an end.
• Prone to risks, that is, every project has a certain amount of risk.
Characteristics of Projects:
• As already mentioned projects are temporary with a definite beginning and a
definite end.
• They also have temporary opportunities and temporary teams.
• Projects are terminated when the objectives are achieved, or conversely, if the
objectives cannot be met.
• Most of the projects last for several years. However, they have a finite duration.
• They involve multiple resources (human and non-human) and require close
coordination.
• They are composed of interdependent activities.
• At the end of the project, a unique product, service or result is created. Some
degree of customization is also a characteristic of projects.

Presented to: Sir. Naeem Akhter

Allama Iqbal Open University, Islamabad
 Project Management 6

• Projects encompass complex activities that are not simple, and may require
repetitive acts.
• They also include some connected activities. Some order and sequence is
required in project activities. The output from one activity is an input to another.
• Project Management lives in the world of conflict. The management has to
compete with functional departments for “resources and personnel”.
• There exists a constant conflict for project resources and for leadership roles in
solving project problems.
• In every project, clients want changes, and the parent organization aims at
maximization of profits.
• There can be two bosses at a time and that too with different priorities and
objectives.
Project Environment:
All projects are planned and implemented in a social, economic, environmental,
political and international context.
• Cultural and Social Environment is that how a project affects the people and
how they affect the project. This requires understanding of economic,
demographic, ethical, ethnic, religious and cultural sensitivity issues.
• International and Political Environment refers to the knowledge of
international, national, regional or local laws and customs, time zone differences,
teleconferencing facilities, level of use of technology, national holidays, travel
means and logistic requirements.
• Physical Environment is the knowledge about local ecology and physical
geography that could affect the project, or be affected by the project.

Presented to: Sir. Naeem Akhter

Allama Iqbal Open University, Islamabad
 Project Management 7

Managerial Functions in Organizations Undertaking Projects:

Organizations are arranged in ways that try to maximize synergy, i.e. the ability of
the whole to equal more than the sum of its parts. This means that an
organization ought to be able to achieve its goals more effectively and efficiently
than would be possible if the parts operated separately. Organizations comprise
of various levels. These are depicted in the following figure:

Presented to: Sir. Naeem Akhter

Allama Iqbal Open University, Islamabad
 Project Management 8

A model for organizational environment

Project Participants:
Stakeholders:
Stakeholders are the ones who have a share, or an interest in an enterprise.
Stakeholders in a company may include shareholders, directors, management,
suppliers, government, employees, customers, and the community. Stakeholders
are influenced by the outcomes and objectives. They have varying level of
responsibility and authority. Thus, they should not be ignored. A project manager
should try to manage and fulfill the expectations of the stakeholders. There are
both positive and negative stakeholders. In some cases, stake holder’s roles and
responsibilities are overlapping. For example, an engineering firm also provides
financing.
Key Stakeholders:
Key stakeholders include the following:
a). Project Manager:
The person, who is responsible for managing the project.
b). Customers, End Users:
The person or organization that will use the project’s product. These may
be multiple layers of customers. For example, the customer for a new

Presented to: Sir. Naeem Akhter

Allama Iqbal Open University, Islamabad
 Project Management 9

pharmaceutical product can include the doctors who prescribe it, the patient who
take it and the insurers who pay for it. In some application areas, customers and
user are synonymous, while in others, customer refers to the entity acquiring the
project’s product and users are those who will directly utilizes the project’s
product.
c). Performing Organization:
The enterprise whose employees are most directly involved in doing the work of
project.
d). Project Management Working on the Project:
The members of the team who are directly involved in project management
activities.
e). Project Team Members:
The group that is performing the work of the project. It includes the members who
are directly involved in the project activities.
f). Sponsors:
The person or group that provides financial resources, in cash, or kind, for the
project.
g). Influencers:
People or groups that are not directly related to the acquisition or use of the
project’s product, but due to an individual’s position in the customer organization
or performing organization, can influence, positively or negatively, the course of
the project.
h). Project Management Organization:
If it exists in performing organization, the Project Management Organization can
be a stakeholder if it has direct responsibility for the outcomes of the project.

Project Stakeholders:
In addition to these key stakeholders, there are many different names and
categories of project stakeholders, influencing internal or external, owners and
investors, sellers and contractors, team members and their families, government
agencies and media outlets, individual citizens, temporary or permanent lobbing
Presented to: Sir. Naeem Akhter
Allama Iqbal Open University, Islamabad
 Project Management 10

organizations, and society-at-large. The naming or grouping of stakeholders is

primarily an aid to identifying which individuals and organizations view themselves
as stakeholders. Project Managers must manage stakeholder expectations, which
can be difficult because stakeholders often have very different or conflicting
objectives.

Organizing the Project

 The Project Life Cycle

 Organizing the Project Team
 Project Plans
The Project Life Cycle Stages:
 • Initiation
 • Planning
 • Execution and controlling
 • Closure
• Initiation

Presented to: Sir. Naeem Akhter

Allama Iqbal Open University, Islamabad
 Project Management 11

Presented to: Sir. Naeem Akhter

Allama Iqbal Open University, Islamabad
 Project Management 12

. Execution and Controlling

Closure:

Organizing the Project Team

 . Project Leader
 . The Team
 . Work Methods and Procedures
 . Work Plan
Project Plans:

Presented to: Sir. Naeem Akhter

Allama Iqbal Open University, Islamabad
 Project Management 13

 . Estimating Time Accurately

 . Scheduling Simple Projects
 . Gantt Charts – Scheduling Projects with Dependent Stages
 . Critical Path Analysis and PERT – Scheduling Complex Projects
 . The Planning Cycle – A Planning Process for Middle- Sized Projects
 . Planning Large Projects and Programs

Islamabad Serena Hotel

Serena Hotel is one of the Best Chain of hotels in Pakistan. They have got many
branches across the country. However the Islamabad Serena Hotel stands at the
foot of the Northern Hills in six acres of landscaped gardens in the center of
Islamabad. The Moorish and Mughal architecture and interiors of this excellent
hotel reflect the expression and cultural heritage of the local craftsmen who built it.
It is primarily aimed at the consumer market such as family, young executive, and
middle-upper class. Other groups that can be part of the target market are the
business people. If we want to categorize Serena hotel Islamabad in term of
product life cycle stage then we can say that the hotel is at the growth stage and
its sales will continue to increase as the tourism and hotel industry in Pakistan is

Presented to: Sir. Naeem Akhter

Allama Iqbal Open University, Islamabad
 Project Management 14

booming. They have 197 rooms and suites having a distinct Punjabi and Swati
style with magnificent views of the Margalla Hills and Rawal Lake.
H ierarchy
There are three level of management in the Serena Hotel i-e
 Higher level
 Middle level
 Operational level
C ompetitors
When we talk about competitors we can say that, Serena hotel Islamabad has
many competitors and its main competitors in market are:

 Marriott
 Pearl Continental
 Holiday Inn Islamabad Hotel
These hotels compete with each other and try their best to sell their high quality
service and facilities. Each one tries to have more attractive packages to attract
business people and high class. As the main target market of these hotels is the
higher class or the executive class so Serena hotel has reasonable rates in their
hotel and accommodation prices so the competition is really high

Mission statement

Now the second step in strategic management is the Strategy Formulation, which
is basically the development of long-range plans so that the environmental
opportunities and threats can be managed effectively in the light of company’s
strengths and weaknesses. So in strategy formulation the first step is to
define the corporate mission. So now lets have a look to the Serena’s mission
statement

Islamabad Serena Hotel Mission Statement:

Presented to: Sir. Naeem Akhter

Allama Iqbal Open University, Islamabad
 Project Management 15

“Islamabad Serena hotel is positioned as Pakistan’s leading and most luxurious

hotel. We offer the best value for the money by providing the highest quality of
services, product and comforts exceeding customers’ expectations. It plays an
integral part in destination development and remains active in conservation and
environment while promoting local culture and heritage.”
In general we can say that organization’s mission is the purpose or the reason for
the organization’s existence. So a well-conceived mission statement must define
the fundamental and unique purpose, which differentiates it with others and it
must tells that where the organization stands and what it hopes to achieve in
future. In general the mission statement should answer three questions, which
are:
 What are the opportunities or need that we exist to address? (The Purpose
corporation)
 What are we doing to address these needs? (The business of the
organization)
 What principle or beliefs guide our work? (The values of the organization)
So if we look to the Islamabad Serna hotel mission statement we can say that the
statement is defined very well, and they identify the scope clearly. We can say
that their mission statement is narrowly defined but plainly defines the
organization primary activities in term of the services, which they offered and their
mission statement clearly answer the above questions like:
 Purpose: To provide value for the money, provide quality products and
services and finally to gain the customer satisfaction and to exceed their
expectations.
 The Business: Positioned as Pakistan’s leading and most luxurious
hotel.
 The Values: Integral part in destination development, remains active in
conservation and environment and to promote local culture and heritage.
Company’s Objectives over Next Five years

Presented to: Sir. Naeem Akhter

Allama Iqbal Open University, Islamabad
 Project Management 16

In general the main purpose of setting the objectives is to state that what is to be
accomplished in future within the specific period of time. The main reason for
setting-up the long term objectives is to set a target or challenge to work for that
and to some extent impress the shareholders and other stakeholders.
Five Years Objectives

When we talk about Islamabad Serena hotel their next five years objectives
include the following:

1. To Increase Profitability:
Islamabad Serena hotel has planned to increase their earnings by 15% annually
and to reach at least 40% increase over the next five years.
2. To Increase Market Share:
Serena hotel has an objective over the next five years to increase their market
share from Internet sources and through alliances with airlines and to give more
attractive packages to their customers.
3. Delivering Shareholder Value:
They are being committed to be growing company. Their success will result in
investment returns that are consistently among the best hotel industry. Their
primary business objective is to maximize current returns to the shareholders by
increasing cash flow available to pay distributions and provide long-term total
returns to shareholders.
4. Being the Best:
Islamabad Serena hotel has an objective to become an innovative leader in the
hotel industry and to continuously improve their products and services. They will
seek from their supplier highest quality of product and services at the best value.
5. Working Together as Colleagues:
They emphasize on sharing responsibility, accountability and recognition through
a climate of teamwork, because this thing will ultimately help to improve their
overall efficiency, as the employees will be motivated.
6. Providing a Climate of Enthusiasm:
Presented to: Sir. Naeem Akhter
Allama Iqbal Open University, Islamabad
 Project Management 17

They are committed to every one at Serena hotel by providing a caring and
motivating, and rewarding environment. As an industry leader, they have an
objective over the next five years to bringing out the best people though effective
training and meaning full carrier and personal development and by encouraging
individuality and initiative.
7. Contribute To National Growth:
Tourism is a sector of Pakistan's economy that has significant potential and a
country can increase the foreign earnings with the help of tourism. Operating
under the “Serena” brand name, Tourism Promotion Services owns and manages
fifteen hotels in East Africa and Asia. Besides earning foreign exchange and
increasing employment and manpower development, tourism can contribute to
national growth in more qualitative ways. So now their main objective over the
next five years is to satisfy the wants and needs of tourism businesses and hotels
as well as consumers in the 21st century.
8. Maintain High Standards:
Now they have an objective to keep the same high standards regarding the quality
of their goods and services and to make improvements in those areas where they
are lacking behind.
9. To Create An Alliances:
Increase business from Internet sources and through partnerships. So in order to
capture or increase the market share now the objective of the Serena hotel is to
create an alliance with airlines so that all the staff and passenger stay in Serena
hotel, which will definitely brings a huge amount of revenues on regular basis.

Major Policy Statements

Sometimes it may happen that the gap exists between the planned and achieved
objectives. So when such a gap occurs management either has to change the
strategy to improve performance or to set the objectives more realistic, so a
constant review of objectives is always needed.
Policy Statements

Presented to: Sir. Naeem Akhter

Allama Iqbal Open University, Islamabad
 Project Management 18

In simple words we can say that corporate policy provide broad guidance for
decision making throughout the organization and such guidelines actually link
strategy formulation and implementation. Now on the basis of above objectives
we suggested the following policy statements:
1. Must protect, preserve and play to our strengths:
 Strong corporate culture
 High quality service
 Training and development program
 Competent staff
 Credit worthiness
 Brand recognition
2. Not to give emphasize on cost reduction if the quality of their service is
affected.
3. Not to emphasize on market share at the expense of profitability, as it is
basically meant for business-class people.
4. More emphasize on tourism and review of the overall transport
infrastructure so that more and more people comer for tourism purpose.
5. Emphasize to increase profits through Internet.
6. To create synergies among all business units.
7. Maintaining our tariff rates, we would plan to keep our image as:
“Exclusively customer oriented”
8. Employees need to discharge duties and obligations honestly,
professionally and diligently so that it helps to improve the overall efficiency
level and is essential for economic growth.
9. Emphasize the following features:
 Relationship Marketing
 Price bundling / Product bundling
 Added benefit to the customer

Presented to: Sir. Naeem Akhter

Allama Iqbal Open University, Islamabad
 Project Management 19

10. To require its employees to discharge its duties dedicatedly towards the
business and not to engage in any activity, which is against the hotel
business by doing this Serena, will maintain its high standards.
11. Emphasize on an open-door policy so that anyone with a good skills or who
had the ability to fit with in that culture can apply which really helps to
create an enthusiastic environment and leads towards competition among
employees.
12. To work on TQM (total quality management) so that they can satisfy their
customer and can get operational efficiency.
13. Alliances and teamwork are required between the AKFED and government
in order to boost tourism and for national growth.
14. All rates or booking will be subject to availability and may change without
notice.
15. All rates are subject to government applicable taxes.
16. Giving three months training at the start to every newly hired employee, so
that he gets familiar with the culture.

Proposed Strategy

As we all know that hotel industry is highly attractive market because of increasing
trend of tourism, and Islamabad Serena has a strong competitive position so we
suggested them to opt for growth strategies.
Competitive Position
Strong Average Weak
Growth via vertical
integration Growth via horizontal Retrenchment
High
Islamabad Serena integration Turnaround
Hotel

Growth via horizontal Retrenchment

Medium Stability
integration Sell out

Presented to: Sir. Naeem Akhter

Allama Iqbal Open University, Islamabad
 Project Management 20

Growth Growth
Retrenchment
Low Concentric Conglomerate
Liquidation
diversification diversification

Five-Year Strategic Plan

In general strategic planning is a management tool, which is used for a purpose to

help an organization do a better job, to focus its energy, to ensure that members
of the corporation are working toward the same goals, and finally to assess and
adjust the organization's direction in response to a changing environment. In
short, strategic planning is a disciplined effort to produce fundamental decisions
and actions that shape and guide what an organization is, what it does, and why it
does it, with a focus on the future.

Growth Strategy

In simple words we can say that corporate strategy provide a strategic platform to
handle the business with a common set of strategic capabilities and it really helps
by stating how the company will achieve its mission and objectives.
Vertical integration is really beneficial for Serena hotel, and it gives Islamabad
Serena hotel the following advantages:
 Cost can be controlled by eliminating the steps
 Can create synergy
 Avoid time consuming tasks like Serena hotel is advertising through public
relations with the media people, through magazines, through Pakistan
tourism and in flight advertisement etc.
 Through vertical integration they can differentiate its product and services,
like they are providing their customer with the facility of limousine.

Presented to: Sir. Naeem Akhter

Allama Iqbal Open University, Islamabad
 Project Management 21

 In general we can say that Serena hotel is following the differentiation

strategy as they are providing unique and superior value to their customers
in term of their product quality and services.
Serena hotel is targeting the limited market, which is the upper class or business
class so keeping in view the highly attractive industry they can open a new hotel
for middle class with relatively lower prices. The hotel may start under the same
brand name or with a new name.

Strategic Plan

 Work with American Airline to develop alliance to reduce their marketing

cost and to increase market share.
 Within one-year initiate a program to analyze and review the overall
transport infrastructure so that more and more people come up for tourism
purpose.
 In addition to attracting new visitors, it is important to broaden the current
tourism base, both in terms of time and geography. In order for this effort to
be effective, Serena must work with regional organizations and statewide
industry associations that are already successfully promoting tourism, and
encourage and support regional groups to expand their capacity to promote
tourism.
 Geographically expanding the firm activities by going into other major cities
and acquire market share.
 Strengthen the climate of support that exists for the tourism industry by
communicating the economic benefits of responsible tourism development
to the general public as well as to the state and local government
representatives.

Report to Chairman to Ensure Success

Presented to: Sir. Naeem Akhter

Allama Iqbal Open University, Islamabad
 Project Management 22

In general we can say that strategy formulation is the half part of the story the
main thing is the implementation of that strategy. So in order to make the strategy
successful the company need to have an excellent implementation plan. The main
problems, which lead to strategy towards failure, are given below:
1. Unforeseen problems
2. Lack of coordination among activities
3. Inefficient employee who are involved in implementation process
4. Implementation process actually goes slow than originally planned

SWOT Analysis
SWOT stands for strengths, weakness, opportunities and threats. SWOT analysis
is one of the most important steps in formulating strategy using organization’s
mission as a context, managers assess internal strengths (distinctive
competences) and weakness and external opportunities and threats. The goal is
to develop good strategies that exploit opportunities and strengths, neutralize
threats and avoid weaknesses.

External Environment

External environment includes those factors over which the organization has no
control. The competitors, external opportunities and threats are included in the
external organization of an organization. Now to start with the external analysis of
Serena hotel we first need to identify the groups or forces within the organization
societal environment and the task environment because these factors really
influence the long run as well as short run decisions and are affected by it.
T hreat o f N ew E ntrants
Within the hotel industry of Pakistan there is significant more threat of new
entrant’s because it is rapidly growing industry with a very strong potential growth.
The factors which limit the new entrance or which become the barriers to entry of
new entrant are
 Legal Requirement

Presented to: Sir. Naeem Akhter

Allama Iqbal Open University, Islamabad
 Project Management 23

 Capital-intensive industry
 Proper research and development
The power of suppliers is strong when sellers are concentrated, or the customers
has few alternatives in term of substitutes or the switching cost is high

Industry Analysis

The main purpose of industry analysis is to determine the opportunities and

threats that exist for firms within a competitive environment. The examination of
important stakeholders within a corporation’s task environment may be called
industry analysis. The main issue within the hotel industry is to take care of
consumer tastes, changing trends of the market and to maintain a high quality of
the all the products and services
T hreat o f N ew E ntrants
Within the hotel industry of Pakistan there is significant more threat of new
entrant’s because it is rapidly growing industry with a very strong potential growth.
The factors which limit the new entrance or which become the barriers to entry of
new entrant are
 Legal Requirement
 Capital-intensive industry
 Proper research and development
The power of suppliers is strong when sellers are concentrated, or the customers
has few alternatives in term of substitutes or the switching cost is high
B argaining P ower o f S uppliers
Suppliers can really affect an industry by raising their prices. In case of Islamabad
Serena hotel we can say that they have strong bargaining power mainly because
of the following reasons:
 Their product and services are really unique and different
 There is no close substitute of hotels they have forward integration and
have direct contact with the customers

Presented to: Sir. Naeem Akhter

Allama Iqbal Open University, Islamabad
 Project Management 24

B argaining P ower o f B uyers

Buyers may affect the industry through their ability to force down the prices. In
case of Serena hotel bargaining power of buyers is high because
 Alternative hotels in Islamabad
 Switching cost towards competitors is low
 They get discounts if they make reservation online

I ntensity o f R ivalries
In Pakistan there is a strong competition within the hotel industry and they all
compete aggressively, and there is no alliance between these hotels because the
opportunities to differentiate the target market are few. So the intensity of rivalry is
severe and the companies defend their targeted customers aggressively. When
we talk about Serena hotel we can say that the competition is intense mainly
because of the following reasons:
 Hotel industry is a rapidly growing industry and all the competitors have an
opportunity to grow
 All the competitors are roughly equal in size and power
 High exit barriers
T hreat o f S ubstitute
When we talk about the threat of the substitute Islamabad Serena hotel, we come
to know that there is no as such threat because there is no close substitute of
hotel industry.

Strategic Groups:

The research specifies that the strategic groups are really useful to better
understand the competitive environment. Companies or business units belonging
to particular strategic group within the same industry tend to be strong rivals of
each other. So from the strategic mapping it is clear that there is no as such
competitor of Islamabad Serena hotel because they are providing full range of
products and services with relatively higher prices. However up to some extent we

Presented to: Sir. Naeem Akhter

Allama Iqbal Open University, Islamabad
 Project Management 25

can say that Marriott and Pearl continental are some how the competitors of
Serena hotel.

Opportunities

Opportunity means an area in environments that, if exploited, may generate high

performance. Within the context of Serena Hotel they have the following
opportunities:

1. T rend to T ourism:
Operating under the “Serena” brand name, Tourism Promotion Services owns and
manages fifteen hotels in East Africa and Asia. Besides earning foreign exchange
and increasing employment and manpower development, tourism can contribute
to national growth in more qualitative ways. So Serena hotel has an opportunity to
introduce more attractive packages because the tourism trend is continuously
increasing and as the Islamabad Serena hotel is on its growing stage so they
have to lower their prices to gain more and more share in the market. By doing
this they can keep hold on to their old customers and can attract new tourists.

2. E stablish N ew B ranches:
Serena Hotel has a great opportunity to establish their branches in major cities of
Pakistan like Lahore and Karachi. Because Karachi is corporate city in Pakistan
there is also seaport and International airport in Karachi and most of the business
class come from that side.

3. Alliance w ith A irlines & S hipping C orporation:

Serena hotel has a great opportunity to create an alliance with airlines because it
really helps them to increase their revenues as well as will boost the tourism so
they have a great opportunity to get maximum revenue out of it.

4. C onstruction o f M akran C ostal, I ndus H ighway :

The construction of Makran costal and Indus highway give more opportunities
regarding tourism and ultimately will be beneficial for the Serena hotel as well.

Presented to: Sir. Naeem Akhter

Allama Iqbal Open University, Islamabad
 Project Management 26

Threats

Organizational threats means an area in environments that increases the difficulty

of an organization’s achieving high performance. So when we talk about treats to
Serena hotel we can say that they are facing the following threats:

1. O pening of S heraton H otel

Sheraton Hotel is going to open its branch in Islamabad and it is big threat for
Serena Hotel. Since Sheraton Hotel is very established hotel in Karachi and many
people are familiar with the services of Sheraton Hotel so it is a rumor that
Sheraton hotel will be started within next two years in Islamabad, which is a main
threat for Islamabad Serena hotel.

2. E xisting C ompetitors:
The existing threats for Serena Hotel are Marriott Hotel, Holiday inn, Pearl
Continental. Basically we can say that there is no as such threat they are facing,
because there are no such competitors, who are so much financially strong and
multinationals, but to some extent we can say that their competitors like Marriott
and Pearl Continental are threats for the Islamabad Serena hotel because if they
start lowering their prices or offer more attractive packages then it may possible
that their customers move to them.

3. C hanging G overnment R egulations:

The changing government rules regarding tax and holding to the food industry is
also a big threat for Islamabad Serena hotel, because if the regulations or policies
are not stick then they will fail to stabilize their prices and packages and ultimately
the customers will suffer.

4. S trong C ompetition:
Strong completion among the existing competitors is also a big threat for
Islamabad Serena hotel because the switching cost of the customer from one
hotel to an other is very low so it may possible that if the customer is not satisfied

Presented to: Sir. Naeem Akhter

Allama Iqbal Open University, Islamabad
 Project Management 27

with any particular service of Serena hotel he then move to Marriott or Pearl
continental.

Internal Environment

The internal environment consists of variables Strengths and weaknesses that are
within the organization but not usually within the short-run control of top
management. They may include corporate culture, structure and resources. In
order to carry out the internal scanning the managers need to identify all those
strategic factors that may determine whether the firm will be able to take
advantage of opportunities while avoiding threats.

Strengths

Strength is a skill or capability that enable an organization to conceive of and

implement its strategies. Serena Hotel is one of the Best Chain of hotels in
Pakistan. They have five branches in Pakistan and 20 branches outside Pakistan
and it is the first five star hotels in Islamabad. Following are the strengths of
Islamabad Serena hotel:
1. L ocation & B est P roperty:
Islamabad Serena hotel is located on six acres near the lush green Margalla Hills
and Rawal Lake, next to the Diplomatic Enclave and it is surrounded by tranquil
jasmine gardens, with serene water bodies and, combines the historical
architecture of the region, with traditional hospitality. So their main strength is that
they have the best location and property in Islamabad as compare to others.
2. S trong C ulture:
As we know Pakistan is a country of many different traditions and magnificent
background. Its people come from a variety of ethnic groups and religions. So the
philosophy of Serena Hotels is to protect these people and their environment
whilst ensuring hotel guests have a memorable stay in the group’s exclusive
hotels.

Presented to: Sir. Naeem Akhter

Allama Iqbal Open University, Islamabad
 Project Management 28

3. H igh Q uality S ervices:

Serena hotel provide different services like
 Airport pick-up and drop by Hotel Limousine,
 Providing services like Free local calls / faxes / Internet, fruit basket,
daily newspaper, laundry/pressing/dry-cleaning
 Small boardrooms and meeting facilities are available as well.
 The hotel features 24-hour Room Service, ladies and gents’ hair
salon, shopping arcade, travel desk, and in-house doctor.
4. R ecreation and H ealth :
The Health Club of the Islamabad Serena hotel, features an outdoor heated pool.
Well-equipped ladies and gents’ gym, minutes away from the hotel are, golf,
tennis and horse riding facilities and walking tracks around the hotel are easily
accessible.
5. T raining and D evelopment P rogram:
They have training and development program for their employees and their
primary purpose of training is to assist the employee in improving professional
competence, skills, knowledge and overall abilities so that the personal growth is
enhanced and also the needs of the business are met in an appropriate and
organized manner.
6. C ompetent S taff:
The primary goal of Serena Hotel is to meet and satisfy the needs of all people
associated with the Hotel that includes both guests and employees. So one of the
biggest strength of Serena hotel is that they have competent and skilled
employees who are available at the proper time and performing the tasks that
meet the needs of the Hotel.
7. C redit W orthiness:
The credit worthiness of Serena hotel is very high because everyone is well
familiar with the Aha Khan Fund For Economic Development so if they want to get
loan they can easily get it

Presented to: Sir. Naeem Akhter

Allama Iqbal Open University, Islamabad
 Project Management 29

Weaknesses

Organization weakness means skills and capabilities that do not enable an

organization to choose and implements strategies that support its mission .A good
and well-reputed organization should over come its weaknesses, in this way
company can achieve its goals. So within the context of Serena hotel we come to
know the following weaknesses:
1. H igh C ost:
Serena Hotel is expensive because basically it was made only for high-class
people. Majority of people of Pakistan cannot enjoy its services because of high
rates. The main reason of Serena’s high prices is that, its cost is really high which
includes all like HR cost, services, training, technological advancements etc.

2. A ggressive L eadership:
Their leadership style is aggressive they are new because they have just started
their business is Islamabad. They are fail to handle or expected customers. They
don’t have any suggestion box system so the employees and guests cannot
express their feelings and ideas in written form; it has to be done verbally.

3. N o B ranch i n O ther M ajor C ities:

Serena don’t have its branches in big cities of Pakistan like Lahore and Karachi. If
they establish their branches in Lahore and Karachi They can gain more goodwill
and benefits.

4. L imited T arget M arket:

One of the biggest weaknesses of the Serena hotel is that they have a limited
target market. Their basic approach is the only high class or the business class
and the middle class cannot afford to stay in that five star hotel.
5. H igh T ariff R ates:
The other weakness of the Serena hotel is that have high tariff rate due to which
their services are the most expensive in Islamabad.

6. N o A lliances w ith A irlines:

Presented to: Sir. Naeem Akhter

Allama Iqbal Open University, Islamabad
 Project Management 30

Another weakness of Serena Hotel is that they don’t have any alliance with
multinationals companies .For example Marriott Hotel have alliance with British Air
Ways, all the staff and passenger stay in Marriott Hotel which brings huge amount
of revenues on regular basis.
Conclusion:
Now when the strategic analyze the internal strategic factors of the corporation
they summarize that analysis on a summary sheet, which helps to analyze that
how well the management is responding to these specific factors in the light of
their perceived importance to the company.

Projects are an investment on which resources are used to create assets that will
produce benefits over an expanded period of time. It is a unique process,
consisting of a set of coordinated and controlled activities with start and finish
dates, undertaken to achieve an objective conforming to specific requirements,
including the constraints of time, cost and resources.
Serena hotel Islamabad has many competitors and its main competitors in
market. So in this situation it is compulsory for them to organize their project
before doing any final step.

Recommendation:

As we know that the people who implements strategy are totally different with the
people who formulate it. So for the success of the strategy that we recommended
depends on certain factors first is that:
1. T o C ommunicate P roperly:
The top management of the Serena hotel clearly communicate the objectives,
strategies and policies to the line management, because if the objectives,
strategies and policies and their importance to the company is not clearly
communicated to the operational managers, obstruction or resistance will be the
resulted.
2. C ompetency i n M anagement:

Presented to: Sir. Naeem Akhter

Allama Iqbal Open University, Islamabad
 Project Management 31

The other element for the success of a strategic plan proposed by us is the
management synergy formed by the Serena hotel. As we now that new strategies
and polices call for new human resource and need competency in management
because it is very essential part in the success of any business. So in order to
implement a strategy in a successful manner Serena hotel need to retrain the old
employees or go for the hiring of the new employees. So while hiring new people
their first priority will be seeking the competent pole and to give them training so
that they learn the required skills.
3. O rganic S tructure:
As far as organizing the new strategy, which we suggests to the top management
of Serena hotel is concerned, we suggest them to go for organic structure
because in organic structure there is more flat management with few layers of
managers, each having a wide span of control and in this type of structure the
subordinates have more freedom and as the Serena is a five star hotel so they
really need to give more authorities to their employees otherwise they may loose
their customers.
4. H ire C apable S taff:
The implementation of new policies and strategies needs new Human resource
management priorities and different utilization of employees. This means that the
company will recruit new employees, lay off the idle staff and provide training to
the existing employees to improve the skills. So to ensure the success of the
strategy Serena’s management need to identify the employees who are not
capable for this new strategy and lay them off as well as give training to the
retaining employees and higher the competitive pool of new employees for the
new strategic plan.
5. P roper D irection:
Successful implementation of new strategy also depends how efficiently and
accurately management directs its workforce to utilize their abilities ad skills to
attain the organizational objectives.
6. C ulture C ompatibility:

Presented to: Sir. Naeem Akhter

Allama Iqbal Open University, Islamabad
 Project Management 32

In order to ensure the success of the proposed strategies the other thing which
management kept in mind is the culture compatibility so in this context the Serena
management need to
 Evaluate the a specific change in strategy will mean to the corporate
culture
 Asses whether the change in culture will be needed, and
 Decide whether an attempt to change the culture will be likely costs.
The other most important points, which the management of the Serena needs to
consider regarding cultural compatibility, are as follows:
 Is the planned strategy compatible with the company’s current culture?
 If the strategy isn’t compatible with the current culture. Can the culture be
easily modified to make it more compatible with the new strategy?
 If the culture can’t be change easily to make it more compatible with the
new strategy, is management willing and able to make major organizational
changes and accept probable delays and a likely increase in cists?
 If the management isn’t willing to make the major organizational changes
required to manage around the culture, is it still committed to implementing
the strategy?
So in order to implement the strategy Serena management need to consider all
the above points and then make needed modification to make the strategy
compatible with the culture because culture plays a very important role and it a
way the company do things.

Reference:
 PROJECT MANAGEMENT
A systems Approach to Planning, Scheduling and Controlling by Harold
Kerzner, PhD
 http://www.scribd.com

 http://www.abl.com.pk

 http://www.google.com

Presented to: Sir. Naeem Akhter

Allama Iqbal Open University, Islamabad
 Project Management 33

Presented to: Sir. Naeem Akhter

Allama Iqbal Open University, Islamabad