Case for question: 2 Part a b & c) Pakistan International Airlines (PIA) was founded on October 23, 1946 as Orient Airways. The airline was nationalised on January 10, 1955, and was renamed Pakistan International Airlines. It is Pakistan's largest airline, with a fleet of more than 30 aircraft of its own, as well as several aircraft wet-leased from other airlines. From 1962 to 1972 was the golden period of PIA when it was flying high, churning out profits and generating foreign exchange for its industrialization and nation-building drive. However, this golden period did not continue any further. Pakistan International Airlines (PIA) was successful up until the late 90s, but began to decline in 2000, largely as a result of aviation policy issues, frequent changes in management, interference by unions, weak capital structure, liquidity crisis, poor handling of business level strategies, and demotivated workforce and talent retention. PIA has gone through many internal and external changes in its structure, people, technology, and management since it has been in existence in order to fix the problems. The company has used many external and internal change agents in order to survive the consequences of sadder events but has been unsuccessful in implementing them. PIA employed a number of employees in the last three years on a political basis. There is excessive recruitment without advertisement. According to policymakers, PIA had lost as many as seven million potential customers to other airlines on the UK's and USA routes between 2016 and 2018 because of poor corporate level strategies. The recently appointed Chief Executive Officer (CEO) of Pakistan International Airlines is intent on making the organisation more competitive. The new CEO developed a 5-year business plan and turnaround strategy, with finance playing a pivotal role in its development. 2019 was the first year of the plan and focused on strengthening governance, recognising that no strategy would succeed without a foundation of good governance and the right corporate culture. Priority actions taken included embedding a culture of merit and performance with over 1,000 promotions awarded while at the same time instilling discipline through more than 700 disciplinary actions. Under the direction of the new CEO PIA now feels confident that the airline is shifting gears to a faster flight. Recent positive changes in PIA include expansion in networks, improved flight timings, greater hospitality and. care by the airline's staff, increased cargo load factor, improved engineering services, an online passenger service system, leaner structure, and greater transparency and accountability in operations. PIA's international network spans across Asia, Europe, and North America. The national airline is trying to target certain markets, especially Central Asia. The reason for increasing business in Central Asia is the Muslim communities and good strategic alliances between the governments. PIA's mission is to establish a core business in the Central Asian market. However, PIA is facing a lot of competition in Central Asia in terms of price policies and flying packages. According to the policy developer at PIA, the company needs to revise its strategic planning and positioning. PIA has decided to examine the distinctions between network operators and niche players. The major competitors of PIA are Gulf Airways, Itehad Airways, and Emirates, which together represent, the biggest barrier for business expansion in Central Asia. The brand manager at PIA has decided to explore the different options by developing alliances with different small airlines in Central Asia. The new CEO feels the young professional will be a much needed addition to its team and is proof of the government's commitment to improving the airline domestically and internationally. PIA is facing driving and restraining forces in their corporate culture. For many years, a larger number of airlines have been operating in Central Asia for many years. According to the senior management, PIA has many options to enter into Central Asia to develop strategic alliances, mergers, joint ventures, or operate as a separate entity, as all options carry some advantages and disadvantages. The company is facing active resistance in primary activities of their value chain related to the new decision. Under the leadership of its CEO, PIA now feels confident that the airline is shifting gears to a faster flight. Even though they have been in charge for almost a month, the new management team at Pakistan International Airlines (PIA) has not yet been able to stand up to the strong unions and other interest groups at the national airline. According to the head of HR, PIA is currently failing to address issues in the priority areas of cash flow management, motivating and retaining talent, and entering the Central Asian market. to the latest meeting of the CEO with higher management, no improvement will be effective unless and until the airline is managed well and operated with the proper culture in the right environment. According to him, the job isn't done until all your tools are back in place. Question 2: Part a) Keeping in view the above scenario, critically identify why the management face resistance in bringing changes in the Pakistan International Airline and recommend how the newly appointed CEO in the Pakistan International Airline should go about managing the process of organizational change. What are barriers and implications to a successful implementation of this change or improvement in central Asian market? (Marks:10) Part b) Identify two business-level and one corporate-level strategy that PIA may employ while establishing its presence in Central Asia, and also analyse whether PIA has followed a standardisation or an adaptability approach in its global markets. (Marks:05) Part c) Keeping the above scenario in view, which mode of entry you recommend the company to opt for entering in central Asian market (defend your selection with the rationale) and also critically discuss what kind of change PIA should consider in its corporate culture according to the selected mode of entry after moving towards the central Asian market. (Marks: 05)