Managerial Policy Assignment 2

Submitted by Syed Taha Owais Jehanzeb Hassan Khan Maisam Ali Shams Mohammad Ibad Desmukh Ali Asghar Poonawala Mohib Umrao Minhaj Ahmed

Germany Pakistan Training Initiative

STRATEGIC PLAN
VISION To provide quality and professionalism in the realization of the vocational education in accordance with the real needs and opportunities for those who study and to be in accordance with the opportunities and needs of the local environment. MISSION To enhance global competitiveness in Pakistan, through a quality and productive workforce by developing demand driven, standardized, dynamic and integrated technical education and vocational training service. GRAND STRATEGY To reach the highest levels of customer intimacy through extensive market research of the needs of the domestic industry. Through agile responsiveness to the changing demand of vocational skills from local companies and establishment of linkages, GPATI will achieve concentrated growth within the vocational training segment by increasing the market penetration in terms of the total number of GPATI graduates of its unique Dual Training system, being employed in the industry. MARKETING STRATEGY THE FOUR PS PRODUCT GPATI provides low cost vocational training to underprivileged individuals in Pakistan. The primary service is the Germany based Dual Training System which has gained global acceptance and recognition. It has a duration of 2 years, which has two further components. In the first year, students go through internal training at the institution and in the second year they are sent for practical training at their respective host companies. The training program has been developed with primary focus on creating a linkage with the needs of the local industry. 1 The program will provide employment to able individuals and at the same time give the domestic employers a source of cheap and effective labor force. This will lead to lower levels of unemployment for the Pakistani economy as a whole, contributing to the GDP growth per capita as well as create a competitive advantage for organizations operating within technical sectors such as manufacturing and information technology. PRICE GPATIs flagship dual training system program costs a total of Rs 1000 per month for the initial first year, while the expenses for the second year are covered by the host employer. Secondly, the Institute of Aviation and Technology (IAT) commercial course fee is Rs 1000/month for the 6 months training period and after that the trainee will receive a stipend during the on the job training period. Each trainee would also be paid a monthly stipend of minimum Rs 3000.

http://www.tevta.gop.pk/gpati/GPATI_Punjab_Brochure.pdf 1

Germany Pakistan Training Initiative PLACE The program has been launched in Karachi under collaboration with German Consulate General and AMAN Foundation. Karachi is the largest and most populous metropolitan city of Pakistan and its main seaport and financial center, as well as the capital of Sindh province. The city has an estimated population of over 23.5 million people as of 2013, with a density of more than 6,000 people per square kilometer. Thus, Karachi is an ideal location for a vocational training program like GPATI. The city provides more than adequate industry knowledge and expertise through its industrial zones such as the one in Korangi. Furthermore, the premises of the training location is AMANTECH building which itself is located in Korangi is well connected to the target market of GPATI. Implementation costs will be minimized as the equipment and personnel would be provided by AMANTECH. Quality standards would be maintained under the well-recognized name of AMAN Foundation. AMANTECHs experience in the vocational training field can be utilized and further minimize the costs as a result of the extensive experience in this sector. AMANTECHs managerial and organizational expertise would thus be utilized by GPATI to establish itself as a major player. PROMOTION Since the target is the lower income classes, the promotion would have to be done through print media e.g. pamphlets and brochures. Also, newspapers like Jang, Qaumi Akhbar and the likes which are in local languages can be a good source of promotion. Moreover, GPATI can advertise through local agencies that provide household servants. Through this, they will be able to get a good pool of suitable candidates who are able and willing to learn. TV advertisements will also be a good source of mass advertising since it is largely accessible nowadays. However, the channels would have to be carefully selected since the target population will contain people who converse in Urdu and other provincial languages. Another good source of promotion would be to use success stories of people who are/were enrolled in the GPATI program and use them to attract people since by human nature it is easier to believe in what we see. VALUE PROPOSITION GPATI offers vocational training based on the German model which gives it a competitive edge over other programs. Dual Training System engages youth in a skilled form of occupational activity through an extensive training program in a changing working environment. It is a combination of on job training at companies/industries and learning at vocational institutes. The 2 year extensive training program includes one year of on the job training which will prepare the workers for the corporate environment and the employers will have a skilled workforce at their disposal. This 2-way program will benefit both the parties involved and will help bring vocational training in Pakistan at par with world standards. ACTIVITIES GPATI offers training courses for both technical and commercial trades. AMANTECH is responsible for providing technical training for the under privileged under GPATI. These courses cover the following technical trades: mechanical, wielding, fabrication, pipe work, electronics, electrical, automobile, and process control. A technical training course is a 2 year course which includes 1 year of training at the institute and 1 year of practical training at a host company. Institute of Aviation and Technology (IAT) is responsible for providing skills for commercial trades such as retail assistants and logistics & supply chain assistant. A commercial course is of 1 year that includes 6 months training at the institute and 6 months on the job training. The course fee is Rs 1000/month for the 6 months training period and 2

Germany Pakistan Training Initiative after that the trainee will receive a stipend during the on the job training period. Each trainee would also be paid a monthly stipend of minimum Rs 3000. Graduates will receive certificates in their respective fields once they have completed the training course.

APPLICATION OF THE FIVE FORCES MODEL

Threat of Rivalry

Many players already exist in the segment. Quite a few players in the formal education space are also expanding their horizons and are keen on getting their share of the larger pie. The lack of competition makes low threat. GPATI is a training center of the German subsidiary which offers dual training for students (high school training with practical experience). A competitive German training model combining theoretical knowledge with practice applies competitive advantage. This gives an advantage of existing technical institutions and thus the threat of competition is relatively low. This training system is a revolutionary change in the way technical and vocational training is provided to people. centers is addressed by offering students trained by the center part time / full time jobs. Further technology is used to conduct classes in a virtual environment. Presence of highly fragmented small suppliers with no major suppliers. All related resources are provided by many suppliers, and products are not differentiated resulting in a very low bargaining power from suppliers. Since there are no other options available to students, if students are taken as a supplier, we think that the threat is moderate.

Threat of Suppliers Non availability of adequate skill manpower in rural region to run vocational

Threat of Buyers

The number of training institutes is low and mainly located in urban regions. Buyers prefer players that offer placement guarantee or have good brand name. There is significant demand for cheap labor from the industry and hence the buyers do not have high bargaining power. Secondly the buyers may be the organizations which provide temporary employment to students would again have a low threat because cheap labor is not very easily available. Those who do offer jobs need skilled rather than informal, untrained and unskilled labor which is scarce in the domestic market. Vocational training in itself is a substitute for formal education. However training is provided on the job to upgrade skills of the existing manpower. This again is tied up with a service provider. Employment of individuals in the informal sector is one main substitute to employment through GPATI. Through informal sector jobs, people can earn a sustainable income and find no need for education. TEVTA is tying up with several players to address the huge demand supply gap. With the huge mismatch in demand supply there is room for many more players. Currently the players suffer from space constraints and hence more entrants can enter the market. Training of technical nature is provided by public institutions that have high costs, lack responsiveness to market demands and suffer from non-availability of qualified teachers due to low wages and poor career progression. There have been significant improvements in order to introduce more private players in this sector. The nature of job requirements and skills are changing and there is a shift from agriculture to industry and services. This creates a growing demand for training of technical and
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Threat of Substitutes

Threat of New Entrants

Germany Pakistan Training Initiative

professional skills. LOGICAL FRAMEWORK ANALYSIS (LFA)

GOAL Project Details: To create awareness about vocational training segment in Pakistan by providing training that is at par with international standards. Objectively Verifiable Indicators of Achievement: Acknowledgment of GPATI globally Sources and Means of Verification: strategic collaboration with media houses Assumptions: The requirement of skill increases or stays the same PURPOSE Project Details: To augment a skill workforce that is demand driven and prepared to meet the industry requirements Objectively Verifiable Indicators of Achievement: Increasing demand from various sectors of the industry for skilled human resource Sources and Means of Verification: Increased employability of GPATI graduates Assumption: Firms take a chance while hiring such students. OUTPUTS Project Details: To develop highly employable and quality labor force which meets globally acceptable standards and augments the potential of individual workers such that they are able to adapt to the fast changing requirements of the industry Objectively Verifiable Indicators of Achievement: Better standard of living of the participants as evidenced by the higher income per capita, performance feedback from employing organizations Sources and Means of Verification: Increase in productive efficiency of the targeted industries and raise in salaries of the workers Assumption: That firms are conducive towards the better skills of their employees ACTIVITIES Project Details: Ensure linkage with industry requirements by consulting key participant firms regarding the required skills and design a programme which is high quality and meets global standards Objectively Verifiable Indicators of Achievement: The programme is regularly matched with the industry specifications and brought up to date with global organization standards Sources and Means of Verification: Higher quality of GPATI workers and positive feedback from firms in the industry Assumption: Consistent and upheld support from all the participants of the GPATI initiative

Germany Pakistan Training Initiative

Germany Pakistan Training Initiative

REFERENCES

1. Retrieved 25 March 2014, from http://www.tevta.gop.pk/gpati/GPATI_Punjab_Brochure.pdf 2. Retrieved 25 March 2014, from www.wikipedia.org/karachi