STRATEGIC MANAGEMENT

HUM Network Limited

SUBMITTED TO: DR. FAZAL KHALIDI

SUBMITTED BY: ABEERA CHOUDHRY (21238)
MEHAK ARIF (21233)
ARIJ KHURRAM (21035)
AFIF ATHER (17527)
DATE: 13THFEB 2019
SECTION: MAN405-G
Table of Contents
Company’s Description

Vision and Mission Statement (Current and Proposed)

Company Description:................................................................................................................................... 4
Vision and Mission of HNL: ........................................................................................................................... 5
 Vision Statement: ............................................................................................................................... 5
 Evaluation of Current Vision Statement of HUM Network: ...................................................... 5
 Proposed Vision OF HNL:............................................................................................................. 5
 Mission Statement:............................................................................................................................. 5
Evaluation of Current Mission Statement: ............................................................................................... 5
Proposed Mission Statement For HNL: ......................................................................................................... 6
Analysis of Proposed Mission Statement: ................................................................................................ 7
PEST-C Analysis ........................................................................................................................................ 8
Political factors........................................................................................................................................ 8
Economic factors .................................................................................................................................... 8
Social factors........................................................................................................................................... 8
Technological factors ............................................................................................................................. 9
Competitive factors: ............................................................................................................................... 9
PORTER’S 5 FORCES .................................................................................................................................... 10
EFE MATRIX ................................................................................................................................................. 11
CPM MATRIX ............................................................................................................................................... 12
CULTURE ..................................................................................................................................................... 13
INTERNAL AUDIT AND FINANCIAL ANALYSIS .............................................................................................. 14
Financial Analysis .................................................................................................................................... 16
Value Chain Analysis: .................................................................................................................................. 18
Content Creation: ................................................................................................................................. 19
Content Distribution: ............................................................................................................................ 19
User Interface: ...................................................................................................................................... 19
End User: ............................................................................................................................................... 19
IFE MATRIX .................................................................................................................................................. 20
Objectives: .................................................................................................................................................. 21
Long-term Objectives........................................................................................................................... 21
Present Objectives: .................................................................................................................................. 21
Generic Competitive Strategies: ................................................................................................................. 21
FUTURE OUTLOOK:........................................................................................................................... 23
TOWS MATRIX ............................................................................................................................................. 24
Internal External (IE) Matrix:....................................................................................................................... 25
BOSTON CONSULTING GROUP (BCG) MATRIX............................................................................................ 26
THE GRAND STRATEGY MATRIX .................................................................................................................. 27
QUANTITATIVE STRATEGIC PLANNING MATRIX ......................................................................................... 28
QSPM ......................................................................................................................................................... 28
TECHNOLOGICAL ADVANCEMENT.................................................................................................. 28
IMPROVE QUALITY OF CONTENTY .................................................................................................. 28
PROPOSED STRATEGIES .............................................................................................................................. 30
IMPLEMENTATION .................................................................................................................................. 30
STRATEGY IMPLEMENTION. .......................................................................................................... 30
Conclusion: .................................................................................................................................................. 32
Company Description:
Hum Network Limited (formerly Eye Television Network Limited) incorporated in
Pakistan as a public limited company in February 2004.On 21 January 2011 the
Company name was changed to Hum Network Limited (HNL).
The Company received its first up-linking license for "HUM TV" to operate as an
International Satellite Television Channel in October 2004 from Pakistan Electronic
Media Regulatory Authority (PEMRA) for a period of 15 years.
Being the first ever Stock Exchange Listed Company in electronic media in Pakistan,
HNL went live with its first channel "HUM TV" in January 2005. Initial Public Offering for
HNL shares was made in June 2005 and the Company was formally listed at the
Karachi Stock Exchange in August 2005.For the first time in Pakistan a company
entered into a share split, the board proposed a subdivision of a company’s capital from
Rs 10 to Re 1 per share.
Also, HUM Network Limited amended its Memorandum of Association (MoA) to expand
the business into different industries and markets amongst other amendments and
obtained the right to enter into any business outside the media industry, expanding into
new markets and growing continuously. It was battle of about 6 months and they finally
got a verdict in their favor. The Authorized and the Paid up Capital of the Company is
Rs.1,500M and Rs.945M respectively.
HNL is a journey towards being the best entertainment Network with brands
within the television medium
 HUM TV: It was launched in January 2005 with a vision to revive the demand for
quality Pakistani content and Entertainment for the viewers of Pakistan when
they were hooked to the Indian Content. The content mix consists of dramas,
soaps, morning shows etc.HUM AWARDS are quite Famous and the rating is
quite high as compared to LUX Style AWARDS.
 HUM Masala: Masala is the market leader in food genre programming since its
launch and all its program and chefs are recognizable household names. Also,
they have come up with the idea of “Masala Food Festival” which is also
engaging the audience.
 HUM Sitaray: It basically runs the archived Dramas and local content with
Foreign content too.
 HUM NEWS (launched in May 2018)
 HUM Mart (new project)
Vision and Mission of HNL:

 Vision Statement:
Inspired by the finest cultural, corporate and creative values to present content which
entertains and enriches audiences.

 Evaluation of Current Vision Statement of HUM Network:

A vision statement basically tells about the objectives of an organization in order to help
in the decision making process of the company.HUM Network’s Vision statement is
quite precise and tells about the Products and customers of the company. Also it tells
about the nature of the products Offered.

 Proposed Vision OF HNL:

HNL aims to be the number One Entertainment Company which provides its audience
with the Quality content inspired by the finest cultural, cooperative and creative values
nationally.

 Mission Statement:
To enable the organization of outstanding content on subjects of interest and relevance
to a range of audiences while using the best professional practices and ensuring long
term continuity

Evaluation of Current Mission Statement:

Mission Statement of a company is a statement of why an organization Exits and what
its overall goal is.HNL is very much précised and when we analyzed all the
components of a mission statement we found out that Most of the Components were not
Mentioned in the Mission Statement of HNL.
1) Customers: HNL talks about its Customers by using the phrase “range of
audiences” that means HNL Targets the People Who seek entertainment.
2) Products or Services: They haven’t really mentioned about the genre and
nature of the products they offer and it vaguely talks about the Product offering
by the phrase “outstanding Contents on subject of interest”.
3) Markets: HNL Mission Statement does not clearly mention their Markets and
target Areas.
4) Technology: Also HNL Mission Statement provides no information about the
technology used to create the content.
5) Concern for Survival, Growth and Profitability: HNL Mission Statement Talks
about how it wants to Ensure Its Growth and Survival and by using what
 methodology. The Phrase “Ensuring Long Term Continuity” talks about the
survival and growth of Company to generate Revenues.
6) Philosophy: Mission Statement of HNL doesn’t talk about the Values of the firm
or the ethical priorities.
7) Self Concept: No Competitive Advantage was defined clearly.
8) Concern for Public Image: It doesn’t talk about it too.
9) Concern for Employees: It mentions about “Best professional practices” that
can be seen as a concern for Employees. Also compared to other media houses
HNL uses its employees as an asset to make revenues for the company and to
improve the ranking of the company.

Proposed Mission Statement For HNL:

The Mission of HNL’s is to be a leading Entertainment Company

 through the development and delivery of unique and quality Content/Products

 to fulfill the ever changing needs of the audiences nationally

 by using the best professional practices and upgrading the systems by time to
ensure long term continuity.

 And to Achieve the Goals of the company by operating the Businesses in

accordance with the principles of good corporate governance.

 Also to commit to Social Responsibility through support for Pakistani People in

having better lives.
Analysis of Proposed Mission Statement:

The new and proposed mission statement talks about all the characteristics of the
mission statement:
1) Customers: HNL talks about its Customers and Targets the People Who seek
entertainment.
2) Products or Services: talks about unique content and entertainment content.
3) Markets: HNL Proposed Mission Statement tells about the target markets and
aims to expand worldwide too and for now the main focus is Pakistani market
and few countries.
4) Technology: Also HNL Proposed Mission Statement provides information about
the technology and up gradation of technology to create the quality content.
5) Concern for Survival, Growth and Profitability: HNL Mission Statement Talks
about how it wants to Ensure Its Growth and Survival and by using what
methodology. The Phrase “Ensuring Long Term Continuity” talks about the
survival and growth of Company to generate Revenues.
6) Philosophy: Proposed Mission Statement of HNL talks about expanding
operation by using ethical means or good co-operate governance.
7) Self Concept: Competitive Advantage was defined by telling how technology is
being used to capture more areas..
8) Concern for Public Image: Social responsibility is mentioned to improve image.
9) Concern for Employees: It mentions about “Best professional practices” shows
it has been hiring employees with best skills and professional team workers to
help generate revenues.


 PEST-C Analysis
Political factors
The political environment can impact business organizations in many ways. It could add
a risk factor and lead to a major loss. Hum Network operates in many countries
including Pakistan. The government situation of each country affects its service
providing terms.
Opportunities Threats
Freedom of press Tariffs imposed
Employee benefits Government instability
Wage legislation Airing information regulation
Data protection laws Internet prices to decrease
Government intervention

Economic factors
The political situation of a country affects its economic setting. The economic
environment affects the business performance. Lack of political stability in a country
effects business operations. This is especially true for the companies which operate
internationally. The macro economic factors affect the aggregate demand and
aggregate investment for each brand.
Opportunities Threats
Production rate Instability of economic condition
Licensing stability Inflation rate
Less smart TV usage Decreasing economic growth
Broadcasting is free for channels Interest rate on media industry
No fee to cable operators

Social factors
The society’s culture affects the organizational culture. The beliefs and attitude of
viewers in the country the channel airs in is very important for the brand to position it’s
business strategy. Also the promotional strategy for each country is designed according
to traditional acceptance of audience.
Opportunities Threats
Literacy of youth Cultural distinction
Greater young population Many religious beliefs in one society
Awareness of youth Many types of festivals in just one society
Class structure for differentiation of type Traditional norms to be careful about
of media
Positive attitude of audience
Technological factors

Technological advances in the country are fast and greatly affect the media industry
because all advancements if applied turn the services of digital media delivery into
better than previous.
Opportunities Threats
Online transmission advancements Digital media engagement over social
Channel coverage through online networking sites
subscription on youtube, OSN, dish Data communication advancement of
network telecommunication industry
Website advancements Piracy of media
T.v industry has slow advancements Recording of digital media on Smart T.v
Web advertisements expensive
HD channel

Competitive factors:

Competing brands of media industry are very fragmented because not all
business reach the maturity stage in this industry. It determines the profitability of
industry. This helps to determine if niche market is present in this industry.

Opportunities Threats
New brands emerging so advertisement Rivalry for dramas due to less production
contract opportunity houses
Successful award shows and cinema Prime time competition
industry Price war for advertisements
Partnership with Indian production
houses
PORTER’S 5 FORCES

MEDIA INDUSTRY PROFITABILITY

HIGH MEDIUM LOW HIGH MEDIUM LOW
COMPETITIVE  
RIVARLY
THREAT OF NEW  
ENTRANTS

THREAT OF  
SUBSTITUTES

B.P OF SUPPLIER  

B.P OF BUYERS  

HIGH TO MEDIUM

1. COMPETITIVE RIVARLY; there are only three major players in media

industry are: HUM, ARY and GEO. So therefore, rivalry between firms in
an industry is medium results in medium to high profitability.
2. THREAT OF NEW ENTRANTS; as there is intense competition between
three major players so any new entrant coming in market would require
high competitive advantage and strong financial position to survive in
market. Therefore, threat of new entrants in an industry is medium to low
results in high to medium profitability.
3. THREAT OF SUBSTITUTEDS; viewers or customers may switch to other
entertainment options such as: tv serials, newspapers or magazines,
video games etc. As a result, threat of substitute to industry is medium
therefore, leads to medium to low profitability.
4. BARGANING POWER OF SUPPLIER; few production groups are there in
an industry. HNL have Momina Duraid Productions as their sole
 production house results in medium bargaining power of supplier leads to
medium profitability.
5. BARGANING POWER OF BUYERS; too many brands are there to
promote or advertise their products therefore results in low bargaining
power of buyers in an industry leads to high profitability.

EFE MATRIX

S.No Opportunities Weight Rating Weighted Score

1 Production Houses 0.04 2 0.08
2 Sports related shows 0.03 2 0.06

3 Online Market 0.06 3 0.18

4 Fragmented Market (Acquisition) 0.06 3 0.18
5 Events & Brand Activation 0.04 3 0.12
6 Global Reach 0.05 3 0.15
7 Partnership with other production houses 0.07 3 0.21
8 Channel for kids 0.02 1 0.02
Digital Division (Video on demand
9 platform) 0.07 3 0.21
10 Shows for kids 0.02 3 0.06

S.No Threats Weight Rating Weighted Score

1 Local Rivalry 0.07 4 0.28
2 Change in Tastes 0.05 2 0.1
3 Changes in Technology 0.06 3 0.18
4 Fragmented Market (Mergers) 0.06 2 0.12
5 Maintaining TRP 0.07 3 0.21
6 New entrants 0.02 2 0.04
7 International Competition 0.02 2 0.04
8 Prime time competition 0.08 4 0.32
9 Piracy of media 0.05 3 0.15
10 Cultural distinction 0.06 1 0.06
1 2.57
Above mentioned are the opportunities and threats that HUM Network faces. Currently,
it is performing above the average, with the weighted score on 2.57.
Recommendations
HUM Network should focus on an online market for its products. It already has a variety
of products to offer. This way it will have a clear competitive advantage over its
competitors. Also, it should improve technology for production and other purposes.

CPM MATRIX

HUM GEO PTV

S.N Weigh Ratin Scor Ratin Scor Ratin Scor
o t g e g e g e
1 Variety 0.09 3 0.27 3 0.27 2 0.18
2 TRP 0.14 3 0.42 3 0.42 2 0.28
3 Global Reach 0.06 2 0.12 3 0.18 1 0.06
4 Technological Innovation 0.13 2 0.26 3 0.39 1 0.13
Advertising and
5 Promotion 0.11 3 0.33 3 0.33 1 0.11
6 Quality Content 0.1 3 0.3 2 0.2 2 0.2
Video on
7 Demand(iflixetc) 0.11 1 0.11 2 0.22 1 0.11
8 Recognition 0.07 3 0.21 4 0.28 2 0.14
9 Market Share 0.13 3 0.39 3 0.39 1 0.13
10 Online Market 0.06 2 0.12 2 0.12 1 0.06
Total 1 2.53 2.8 1.4

HUM Network is performing above average in the industry. GEO Network is leading with
2.8 score while HUM Network has a score of 2.53.

Recommendations
HUM Network should start exploring the Online Market along with producing Video and
Demand. It is an unexplored market in Pakistan and if HUM gets success in it, it will
automatically lead the industry. Also, HUM Network should focus on improving the
technology it uses to not only compete against the local rivalry, but international
completion as well.
CULTURE
According to Mr. Mohsin Naeem , the Culture is the most important factor of strategic
planning for Hum Network. He said that the culture is very much friendly and it’s just like
a family. As a Chief Finance Executive his doors are open for every other person
working in organisation and is welcome to comment or give suggestions regarding an
activity going on in HUM network. He also focused on increasing opportunity for women
in this industry and they believe that they provide safe environment for women to work.
TEAM BUILDING PROGRAMS:
Hum believes that team building is very important and without team effort it is
impossible to generate good results. And Hum believes that it is important for all the
employees of company to know each other and coordinate with each other. According
to Mr, their company can’t work if employees do not work as a team for example for a
morning show, it is very important for Sales and Programming people to coordinate well,
so their job is very much interrelated, and it requires team effort. Different departments
put their efforts in succeeding at fashions shows, morning shows, awards etc.
INTER- DEPARTMENTAL COMMUNICATION:
Inter departmental communication is a process through which a message is
communicated among various departments. Company believes that it is very important
to send a clear and complete message to the employee so that there is no confusion
and lack of morale. For oral communication, they use phone calls and for written
communication, they generate memos and send emails to everyone. Moreover, Every
Saturday a Meeting is conducted between all HODs and President to discuss the
progress, problems and major upcoming news. Then all the HODs convey the
messages to their subordinates through a departmental meeting. Moreover, they also
send emails to Line Managers, GMS ETC. Moreover, since this is a tv channel and if
any event is coming up they put posters and banners in whole office so that the
employees can know and get excited.
BUSINESS FUNCTION AND EACH DEPARTMENT AGENDA ALIGNMENT:
Each department plays a very important role in leading most essential functions of the
company. For any business to reach great heights it is very important for agenda of
departments to align with the strategies and functions of business. If departments of the
company do not work well, the company may face serious issues. Moreover, the
efficiency of each department is really to keep other departments functioning well. For
example; It is important that HR department makes a good job description so that highly
skilled personnel become the part of organization, they keep the compensation
compatible, so that the retention level of employees in the company is good.
HEALTH AND SAFETY POLICY:
Health and safety is one of the core values of Hum Network. They follow the values of
discipline, health, safety, integrity and commitment. Hum Tv believes that employee’s
health and safety come first, and they provide safe and clean environment in the office
for the employees. During the shoots or fashion shows, there are enough security
measures to handle any mis happening at the location. Moreover, employees are fully
insured with their health insurance along with their dependents, so that employees stay
healthy and stress free.

INTERNAL AUDIT AND FINANCIAL ANALYSIS

The Audit Committee comprises of four directors out of which three members are non-
executive directors and the Chairman of the Audit Committee is an independent
director. The Chief Financial Officer and the Chief Internal Auditor attend the Audit
Committee meetings, while the Chief Executive Officer is invited to attend the meetings.
The Audit Committee also separately meets the internal and external auditors at least
once in a year without the presence of the management. Meetings of the Audit
Committee are held at least once every quarter, the recommendations of the Audit
Committee are then submitted for approval of financial results of the company by the
Board.
AUDIT COMMITTEE Chairman members are; Mr. Sohail Ansar, Mr. Shunaid Qureshi
Mrs. Mahtab Akbar Rashdi and Lt. Gen. (R) Asif Yasin Malik. Internal Audit of Hum
Network is outsourced to M/S. KPMG Taseer Hadi & Co, Chartered Accountants. The
overall objective of the Internal Audit is to consider the effectiveness of key controls as
identified by the management and compliance with current policies and procedures
relating to above process and to identify any improvement opportunities.
The Internal Audit documented the above process and checked controls on test basis
within this process that mainly addressed the following objectives: Duties within the
above process are segregated; and Controls are in place to support valid, accurate and
timely processing of activities related to above process in accordance with the Company
policies.
Approach
Broadly our approach comprised of the following: Interviews of key personnel of
management; Performance of walkthrough tests to corroborate the understanding of the
process obtained through interviews; and Review of design of controls against
assessed risks and performance of test of controls, where appropriate to help ensure
that activities were in compliance with approved policies and procedures.
Key Financial Data
2018
OPERATING DATA
Revenue-Net 4,609,478,886
Cost of production (2,853,147,800)
Transmission cost (177,878,025)
Gross Profit 1,578,453,061

PROFIT AFTER TAXATION

Profit before taxation 812,155,067
Taxation (82,661,579)
Profit after taxation 729,493,488

2014 2015 2016 2017 2018

Financial Ratio
Current Ratios 2.46 1.73 1.80 5.07 4.68 times
Quick Ratio 1.89 1.25 1.39 5.06 4.56 times
Debt/ Equity Ratio 0.003 0.214 0.257 0.013 0.313 times
Cash Flow Per Share 0.11 0.01 0.01 0.04 0.18 times
Return on Equity 42.38 44.72 26.29 33.20 19.75%
Share Price Per Share 10.68 16.09 10.28 11.74 8.09 times
Break-up Value Per 1.48 1.77 2.16 3.24 34.91
Share
Gross Profit to sales 48.43 49.59 39.13 40.65 34.24%
Net Profit to Sales 20.50 20.08 13.62 21.87 15.83%
Interest Cover 109.89 44.88 20.32 58.30 28.38 times
Debtors Turnover 92 89 117 127 138 days
Administrative Expenses 10.44 11.10 11.04 12.02 11.50%
to Sales
Cost of Production to 47.86 48.15 58.68 57.48 61.90%
Sales
Price Earning Ratio 17.06 20.35 18.09 10.93 10.48 times
Turn Over to Total Asset 1.48 1.36 1.24 1.33 0.86 times
Ratio
Earnings per share 0.63 0.79 0.57 1.07 0.77 times
*Calculated using
945,000,000 shares
Financial Analysis
Current Ratio- It shows that the highest was in year 2017, at 5.07, which gives the
impact that HNL has high amount of current assets which it can use in future
investments and also a huge amount of cash is present at hand which can be properly
invested in further strategic achievement.

Quick ratio- It shows that the highest liquidation of assets was in year 2017 at 5.06 but
in year 2018 it decreased a little to 4.65. Still it shows that the liquidation power of
organization is strong and at any time of need the assets of company can be quickly
converted into cash.

Equity Ratio- It shows that in 2018 HNL has highest at 0.313 which shows that the
return from debt was more this year in equity.

Return on Equity- The firm’s highest was in year 2015 at 44.72% but it declined and is
too low in 2018 at 19.75% which is return after tax from it’s total shareholder’s
investment. It has declined due to increase in equity.

Share price per share- In year 2018 the company maintains it’s share price at R.s 8.09
which is lowest as compared to all previous years showing the shift in $1 would shift
share price by R.s 8.09.
Gross profit to sales- The firm shows a decreasing margin at 34.24% in year 2018
which tells that the profit of firm with respect to it’s sales has decreased which is not a
good factor for firm
Net Profit to Sales- The profit margin ratio formula can be calculated by dividing net
income by net sales. Net sales are calculated by subtracting any returns or refunds from
gross sales. Net income equals total revenues minus total expenses and is usually the
last number reported on the income statement. Net Profit to Sales ratio decreased from
20.50 in 2014 to 15.83 in 2018. A low net profit margin means that a company is not
able to effectively control its costs and/or provide goods or services at a price
significantly higher than its costs
Earning per share- Earnings per share is the portion of a company's profit that is
allocated to each outstanding share of its common stock. It is calculated by taking the
difference between a company's net income and dividends paid for preferred stock and
then dividing that figure by the average number of shares outstanding. Earnings per
share increased from 0.63 times in 2014 to 0.77 times in 2018 this means the company
is more profitable and the company has more profits to distribute to its shareholders.
Turn Over to Total Asset Ratio- The asset turnover ratio is calculated by dividing net
sales by average total assets. Net sales, found on the income statement, are used to
calculate this ratio returns and refunds must be backed out of total sales to measure the
truly measure the firm's assets' ability to generate sales. Asset turnover ratio decreased
from 1.48 in 2014 to 0.86 in 2018. Indicates poor efficiency, which may be due to poor
utilization of fixed assets, poor collection methods, or poor inventory management.
Price Earning Ratio- The p/e ratio is the price an investor is paying for $1 of a
company's earnings or profit. Pe ratio decreased from 17.06 in 2014 to 10.48 in 2018. A
stock with a high P/E ratio is not necessarily a better investment than one with a lower
P/E ratio, as a high P/E ratio can indicate that the stock is being overvalued.
Cost of Production to Sales- Cost of sales, also known as the cost of revenue,
and cost of goods sold (COGS) both keep track of how much it costs a business to
produce a good or service to be sold to customers. Both cost of sales and COGS
include the direct costs associated with the production of a company's goods and
services. Cost of Production to Sales increased from 47.86 in 2014 to 61.90 in 2018.
Administrative Expenses to Sales- Sales to administrative expenses ratio measures
how much sales are generated per dollar of administrative expenses incurred by the
company. Administrative Expenses to Sales ratio increased from 10.44 in 2014 to 11.50
in 2018. Higher the ratio better it is, as it implies better operating leverage of the central
functions.
Debtors Turnover- The accounts receivable turnover ratio is an accounting measure
used to quantify a company's effectiveness in collecting its receivables or money owed
by clients. Debtors Turnover days increased from 92 to 138 days indicate that a
company's collection of accounts receivable is efficient and that the company has
a high proportion of quality customers that pay their debts quickly.
Interest Cover- The interest coverage ratio is used to determine how easily a company
can pay their interestexpenses on outstanding debt. The ratio is calculated by dividing a
company's earnings before interest and taxes (EBIT) by the
company's interest expenses for the same period. Interest Cover ratio decreased from
109.89 in 2014 to 28.38 in 2018. A lower ICR means less earnings are available to meet
interest payments and that the business is more vulnerable to increases in interest
rates.
Value Chain Analysis:
Value chain analysis is a strategy tool used to analyze internal firm activities. Its goal is
to recognize, which activities are the most valuable (i.e. are the source of cost or
differentiation advantage) to the firm and which ones could be improved to
provide competitive advantage. It is a series of activities which convert raw material into
a good or service.
For Hum Tv, it’s value chain is not that complicated as many other industries have
because it’s a media industry firm. Following is the classification of it’s value chain:

Content •80% in house

production
Creation •Rest is outsourced

Content •Broadcast Tv

Packaging •Cable Network

•Broadcast tv
Content station
•Pay Tv
Distribution •Cable Tv
•Internet

User
Interface

End User
Content Creation:
HNL doesn’t completely operate in this part of the value chain because some of it’s
entertainment shows are produced from outsourced production houses. Most (80%) of
the tv shows, movies or cooking shows are being produced by HNL itself from it’s own
production house, Momina Duraid Productions. HNL believes to make sure to provide
it’s end user, the target audience with outstanding content on subject of interest which is
why since a couple of many years it’s been promoting it’s own production house in order
to decrease outsourced creation.
Content Packaging:
HNL transmission station transmits it’s broadcasting content all over Pakistan and also
in some countries internationally for example USA, UK and MENA Region. It has a
license for it’s first satellite channel since 2004. It initiated as a content packaging firm,
with the ability to provide mass media telecast to the country. Later it enhanced its
channels with addition of HUM Sitaaray, HUM Masala Tv and recently HUM News. It
has been doing content syndication with mainstream Malaysian Channel “TV3”, MBC
Saudia, Zee Zindagi
Content Distribution:
HNL is actively taking part in this section of value chain through advancing it’s
techniques of distribution. It is partner of well-known platforms like DISH, SKY,
OSN/DU/Etislata, FETCH TV/YUPP TV. Through it’s digital media division it hold
stronger partnership with youtube and facebook. It’s section of HUM Films engages in
distribution of all big production houses movies locally and internationally. It’s reaching
it’s audience also through it’s official website; http://www.humnetwork.tv/.

User Interface:
This involves the four major categories from where the audience could get intact with
the services provided by HNL:
1. Television
2. Laptop/Computer
3. Mobile
4. Website
End User:
Lastly the services reach the maximum number of target audience which HNL has a
goal to provide the media content to.
IFE MATRIX

Weighted
S.No Strengths Weight Rating Score
1 Strong Management 0.08 3 0.24
2 Company's Culture 0.07 3 0.21
3 Customer Loyalty 0.09 4 0.36
4 Reputation 0.1 4 0.4
5 Diversified Products 0.09 3 0.27
6 Financial Position 0.1 4 0.4
7 Technology 0.07 3 0.21

Weighted
S.No Weaknesses Weight Rating Score
1 Outdated Technology 0.07 2 0.14
2 Weak Online Presence 0.06 2 0.12
3 Objectionable Content 0.04 2 0.08
4 Unavailable in HD outside Pakistan 0.08 1 0.08
5 Constant challenge in maintaining TRP 0.07 1 0.07
6 Available in Urdu (mostly) 0.08 1 0.08
1 2.66

Analysis:
The above results show that the strengths and weaknesses of HNL make it lie just a
little above average score which makes it away from the maturity stage of the industry
but also shows that through little efforts it can easily climb up the ladder of score and
overcome it’s weaknesses. Just some measures should be taken properly according to
the strategies which have been planned.
Objectives:

Long-term Objectives

The objective of HUM Network Limited being a public limited Company listed at
Pakistan Stock Exchange is the creation of wealth of our esteemed shareholders
though origination of outstanding content on subject of interest and relevance to a range
of audiences while using the best professional practices and ensuring long-term
continuity.

Present Objectives:
1. To keep creating interesting content for viewers.
2. To increase popularity of it’s cooking tv channel, HUM Masala.
3. To ensure more buyers or readers of it’s magazine.
4. To cover new boundaries by expanding it’s business criteria for eg: Hum
Mart.
5. To achieve increasing response at it’s events.
6. To increase the fame of it’s news channel in order to compete properly
with existing brands.
7. To gain partnership internationally for it’s brand so that it can deliver in
more countries.

Generic Competitive Strategies:

1. Introduction:
Michael Porter is a professor at Harvard Business School. He said that A firm’s success
in strategy rests upon how it positions itself in respect to its environment. Michael Porter
has argued that a firm’s strengths ultimately fall into one of two headings:
• Cost Advantage: Superior profits through lower Cost. Also it targets the broad
market.
• And Differentiation: Creating a product or service that is perceived as being
unique throughout the industry.
By applying these strengths in either a broad or narrow scope, three generic strategies
result: cost leadership, differentiation, and focus (Concentrating on limited part of the
market).
2. HUM Network Limited or HNL:
HNL is a Public limited media company which aims to provide its viewers with the
quality content and entertainment side by side.HNL has been trying to be the number
one entertainment channel by using the generic strategies to have a sustainable market
share. Moreover HNL uses a differentiation Strategy to create unique content or be the
first movers in the whole industry. Some of their Strategies have been discussed below
which shows how it tries to create an image of the unique and value added products. In
addition to origination of fresh content on current subjects and relevance to audience,
HNL is taking following measures to increase its reach and target audience:
• To achieve its objectives, HUM also has a first mover advantage as it has grown
from owning the most popular drama channel to launching Pakistan’s first 24-hour live
cooking channel, becoming the most sought after film distributors in the country and last
but not the least launching their latest venture in the news genre.(HUM NEWS)

• Digital Media Division of HNL has strong footholds on social media platforms like
Facebook and Youtube. Premier Pakistani entertainment network to have its content on
NetFlix and IFLix.(Value Added Services)
• HNL is also trying to create a good public image by expanding in to new markets
to increase its customer base. Events and Brand activation by HUMNL also provide the
essence of value addition and uniqueness. As we know on ground events are now
becoming more of a tradition, HNL is also trying to engage its viewers by its major
events which include HUM Awards, Bridal Couture Week (BCW), HUM Showcase,
HUM Style Awards, Masala Family Festival and etc.
• HUM AWARDS are happening on international level and they are organized
annually throughout the world which has helped HNL to create a customer base
internationally.
• Instead of just romantic escapade, Pakistani Dramas are talking about hard
hitting social issues and it all started in 2010, When Hum Television Network aired
“Dastaan”. The story of partition, based on Razia Butt’s novel, “Bano”. Dastaan followed
the story of Bano (Sanam Baloch) and Hassan (Fawad Khan), two star-cross’d lovers
struggling to start their lives together amidst political, religious and social tensions when
Pakistan and India were at the brink of formation. it received both critical and
commercial acclaim. It sheds light on the use of sexual crimes as a horrendous side-
effect of war and chaos that destroys lives and changes the shape of many individuals
and families. Moreover Another Drama “Shehr-e-Zaat” .The play delves into an
individual’s journey towards spiritualism. It wasn’t a regular romance at all but it was
setting a new benchmark for all the media houses or companies. This was followed
throughout the industry but the initiative was taken by HUM hence HUM has a First
mover advantage to bring the social issues and highlight them on the screens through
the quality content.
• Also As a part of Market Expansion Strategy HNL enhances its footprints in USA,
UK and MENA region and partner of well-known platforms like DISH, SKY,
OSN/DU/Etislata, and FETCH TV/YUPP TV. By this way they are trying to expand its
operations in international markets by using its value added techniques.
• Content syndication with mainstream Malaysian Channel “TV3”, MBC Saudia,
Zee Zindagi.

3. Comment:
HNL doesn’t not uses a Focus strategy to target one segment of the market but it tries
to capture the audience by using it value added products and services,hence HNL uses
differentiation strategy to Create an impact in the overall industry. This helps them to
Generate sustainable market share also to make revenues and a good name in media
industry.

FUTURE OUTLOOK:
HUMNL's plans seem to be far-reaching. Its management is constantly coming up with
new ventures, which has helped the firm to consolidate its market positioning while
faring well for its financial footing. In this regard, the addition of UAE subsidiary under
HUMNL's will be another breakthrough for the firm. The company can reap additional
benefits in the form of increased geographical presence, additional revenues, a more
diversified revenue base, and cost and efficiency advantages.
TOWS MATRIX

"SO" Strategies "WO" Strategies

 Build partnership with other production  Increase the online presence (W2, O3)
houses by using brand name (S4, O7)  Provide content in other languages too
 Setup an online market for diversified to increase global reach (W6, O6)
products (S5, O3)

"ST" Strategies "WT" Strategies

 Use technology to overcome the local  Provide quality content to help in local
completion (S7, T1) rivalry (W3, T1)
 Use diversified products to cater  Improve the technology to compete in
different audiences at once (S5, T2, the international market (W1, T7)
T10)

Proposed Strategies:
 Setup Online market
 Improve the quality of content
 Technological advancement to compete in the international market
Internal External (IE) Matrix:
The Internal-External (IE) matrix is another strategic management tool used to
analyze working conditions and strategic position of a business. The Internal External
Matrix or short IE matrix is based on an analysis of internal and external business

factors which are combined into one suggestive model.

For Hum Network Limited the IFE and EFE scores as follows:
IFE Score 2.66 Average
EFE Score 2.57 Medium

Analysis: Hence, it shows that the HNL lies in 5th quadrant of IE matrix which is a hold
and maintain quadrant. It shows that the firm isn’t striving to go forward or growing
vastly. The organization is using market penetration or product development strategies
to enhance its grip over the target market and only exceling where it’s generaly focused.
BOSTON CONSULTING GROUP (BCG) MATRIX

Star:
This product for Hum Network is its entertainment channel which broadcasts the
general entertainment productions that are mostly liked and viewed by the target
audience of HNL. As this product is the oldest and most popular product of Hum it is the
most successful and it doesn’t need any major strategies to be pulled off at an
increasing rate. This service by Hum Network is at it’s maturity stage and would
continue to flourish with the same pace.
Cash Cows:
This service for Hum Network is it’s Hum Masala Channel which is being broadcasted
for viewers who love to watch shows related to cooking. This channel is also one of the
oldest channels by the firm and it is a well-known channel which acquires a reasonable
market share in the industry and is liked by it’s viewers. From this channel the firm
generates a good amount of cash and doesn’t need any kind of diversification strategies
here.
Question Mark:
This service by Hum Network is it’s new recent service Hum News which has been
introduced to a very competitive market where a lot of competitors are already set and
have been achieving highest market shares since a decade so for Hum News to
increase its market share and revenue Hum Network needs to set a timed strategies
with everyday challenges because either this would turn into a star product or it would
turn into a dog product. The interviewee claimed that they’ve applied numerous number
of strategies upon this product and with time it would show expected results.
Dog:
This service for Hum Network is its another newly launched service, The Hum Mart.
This an extremely diversified product and it caters a whole new set of market which is
why tackling it’s technicalities is difficult. The firm wants to increase the market growth
only of the product or else they believe it would need a divestiture.

THE GRAND STRATEGY MATRIX

HUM NETWORK LIMITED

ANALYSIS- Hum Network Limited is located in Quadrant I (Strong
Competitive Position and Rapid Market Growth) of the Grand Strategy Matrix, means
HNL is in an excellent strategic position. The first quadrant refers to a strong
competitive base and operating in fast moving growth markets. They are in better
position to adopt 2 strategies we came up with are; technological advancement and
improve quality of content will also help them to pursue strategies such as market
development, market penetration, product development etc. The idea behind is to focus
and make the current competitive base stronger. In case firm possess readily available
resources they can move on to integration strategies but should never be at the cost of
diverting attention from current strong competitive base.

QUANTITATIVE STRATEGIC PLANNING MATRIX

QSPM TECHNOLOGICAL IMPROVE

ADVANCEMENT QUALITY OF
CONTENTY

S.No Opportunities Weight AS TAS AS TAS

1 Production Houses 0.04 3 0.12 4 0.16
2 Sports related shows 0.03 2 0.06 4 0.12
3 Online Market 0.06 4 0.24 1 0.06
4 Fragmented Market (Acquisition) 0.06 - - - -
5 Events & Brand Activation 0.04 4 0.16 3 0.12
6 Global Reach 0.05 4 0.20 1 0.05
Partnership with other production 4 0.28
7 houses 0.07 2 0.14
8 Channel for kids 0.02 1 0.02 4 0.08
Digital Division (Video on demand 1 0.07
9 platform) 0.07 4 0.28
10 Shows for kids 0.02 1 0.02 4 0.08

S.No Threats Weight AS TAS AS TAS

1 Local Rivalry 0.07 4 0.28 3 0.21
2 Change in Tastes 0.05 2 0.10 4 0.20
3 Changes in Technology 0.06 4 0.24 1 0.06
4 Fragmented Market (Mergers) 0.06 - - - -
5 Maintaining TRP 0.07 2 0.14 4 0.28
6 New entrants 0.02 4 0.08 3 0.06
7 International Competition 0.02 4 0.08 3 0.06
8 Prime time competition 0.08 4 0.32 3 0.24
9 Piracy of media 0.05 3 0.15 4 0.20
10 Cultural distinction 0.06 1 0.06 3 0.16

1 2.69 2.49
S.No Strengths Weight AS TAS AS TAS
1 Strong Management 0.08 - - - -
2 Company's Culture 0.07 3 0.21 1 0.07
3 Customer Loyalty 0.09 2 0.18 3 0.27
4 Reputation 0.1 1 0.1 3 0.3
5 Diversified Products 0.09 1 0.09 4 0.36
6 Financial Position 0.1 - - - -
7 Technology 0.07 4 0.28 1 0.07

S.No Weaknesses Weight AS TAS AS TAS

1 Outdated Technology 0.07 4 0.28 1 0.07
2 Weak Online Presence 0.06 4 0.24 1 0.06
3 Objectionable Content 0.04 1 0.04 4 0.04
Unavailable in HD outside 1 0.08
4 Pakistan 0.08 4 0.32
Constant challenge in maintaining 3 0.21
5 TRP 0.07 1 0.07
6 Available in Urdu (mostly) 0.08 4 0.32 2 0.16

1 2.13 1.69

4.82 4.18

ANALYSIS- the Quantitative Strategic Planning Matrix or a QSPM approach attempts to

objectively select the best strategy using input firms all its strengths, weaknesses,
opportunities and threats. The best strategy for HNL to better overcome with all its
weaknesses and threats, and to further effectively and efficiently achieve its strengths
and opportunities, is technological advancement. This strategy will help to have strong
presence online to its worldwide viewers, provide with HD view to interact with very
large images and videos on the Web, options to view dramas in different languages and
helps develop competitive edge over its competitors.
PROPOSED STRATEGIES
HNL should focus on expanding its business in other countries where Pakistani content
has a possible target market and build-up exposure and brand image through
aggressive strategies. The company should also overcome its threat by providing higher
quality content than competitors and while entering new markets and new product
categories thorough analysis of the economic and political factors must be kept in mind.
Through TOWS Matrix we came up with three new Strategies that HNL should analyze
and add to it long term Objectives and at least start working on it to get a big chunk of
market share in media companies.
 HNL should develop or Setup Online market other than YouTube channels for
convenient content provided to the audience.
 Improve the quality of content and injecting the investments in the production
houses.
 Technological advancement to compete in the international market also plays a
very important role.

IMPLEMENTATION

STRATEGY IMPLEMENTATION: It is a process of transforming the plans or

strategy into actions.

 This transformation involves planning to be further for our chosen strategy to be

applied. The activity performed according to a plan in order to achieve an overall
goal.
 It includes developing a strategy supportive culture, redirecting marketing efforts,
developing and utilizing information system linking employee incentives to
organizational performance.
 Strategy implementation also includes the making of decisions with regard to
matching strategy.

 CURRENT OBJECTIVE: The objective of HUM Network Limited being a public

limited Company listed at Pakistan Stock Exchange is the creation of wealth of
our esteemed shareholders though origination of outstanding content on subject
of interest and relevance to a range of audiences while using the best
professional practices and ensuring long-term continuity.
 CURRENT STRATEGY:

 To increase popularity of its cooking TV channel, HUM Masala.

 To ensure more buyers or readers of its magazine.
 To cover new boundaries by expanding its business criteria for e.g.: Hum Mart.
 To achieve increasing response at its events.
 To increase the fame of its news channel in order to compete properly with
existing brands.
 Digital Media Division of HNL has strong footholds on social media platforms like
Facebook and YouTube. Premier Pakistani entertainment network to have its
content on Netflix and IFLix.(Value Added Services)
 Diversified Content for audiences that were adopted throughout the industry by
highlighting social issues through the dramas. Dramas like Dastaan and sheher-
e-zaat were not about a regular romance but it talked about the issues of the
society.

 PROPOSED STRATEGY:

 HNL should follow the strategy of expanding its markets globally with the quality
content as HUM produces good Content it should start producing content that is
going to be popular oversees too just like HUMSAFAR and ZINDAAGI GULZAR
HAI.
 New technology and practices for the company can help increase revenues in
long run. Innovation and proper execution can help the company grow and attract
the big investors.
 Investments in the production houses can be made to expand operations to the
production houses just like ARY did.
 Use targeted advertising: Targeted advertising does actually work. And it’s not
always about spending more money. It’s about spending money more wisely.
Especially when an organization is going after a relatively broad geographical or
targeted topical market, this is a very useful strategy.
 Collaboration with other media houses internationally can help capture the
target market in that country and it will create an effective customer base.
Conclusion:

According to our recommendation the HNL should focus upon technological; advancements more
because the media service providing industry needs hi-tech equipment and facilities in order to boost
their viewers and market share. New technology would help Hum Network cater its audience properly
and provide modern services as per advancements globally. Also, targeted advertising is a good option
for Hum Network especially for it’s product the Hum Mart and Hum News as the products need vital
strategy implementation because both have been introduced to very competitive markets where
intensive strategy implementation is extremely important for the products to move upto maturity stage.
Lastly, Hum Network is a famous brand and has set its brand name at a quite remarkable place so the
struggling phase of its new products would only leave with sometime of extreme concentrated
strategies.