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IN UNIFIELD TECHNOLOGY COLLEGE
IMPLEMENTING CULTUREDEVELOPING STRATEGIES TO
IMPROVE PERFORMANCE IN ACHIEVING SUSTAINABILITY IN
PRIVATE HIGHER EDUCATION INDUSTRY
In the case of UNIFIELD TECHNOLOGY COLLEGE
Everyone needs education. Higher education can be one of the key success factors for
self modernizations and developments especially and for a country generally. Education industry
is one of the fastest developing sector worldwide, generating large scale revenues and
employment. The global demand for higher education is likely to reach 16 million by !!"
#$lakas !%&. The inability of a public sector to satisfy the growing social demand for higher
education has necessitated the entry of a private sector #'.( (arghese, !)&.
*n +alaysia, there has been rapid growth of private higher education. There are 6,1
private colleges and universities and four foreign university campuses. -ecently the government
has put restrictions on funding study abroad programs. *nstead it is striving hard towards
attracting foreign students from the neighboring countries by making +alaysia an educational
hub. *n fact, during 1,,./!, foreign enrollment grew by 6 per cent in +alaysia #Ed*nvest,
!%&. +alaysia happens to be one of those few countries that had allowed private higher
education long ago without granting it a full status. *t relies on private sector to meet the
e0cessive demand for higher education and technical skills, on the one hand, and generating
revenues from abroad, on the other #1ee and 1evy, !%&.
+alaysian 2ssociation of 3rivate 4olleges and 5niversities #+2345& industry have
generated a total fee income of -+" billion in !, #The 6tar, !,&, a sizeable business to
attract intense competition. There are !" registered private colleges #2ppendi0 !& in +alacca
including 5nifield Technology 4ollege that formerly known as 7ole8 Teknologi 9ayasan 2lor
$a8ah. *t shows that the 5nifield Technology 4ollege #5T4& has to compete with the others
private college in order to sustain in this industry. *n this case, the performance of 5T4 will be
measured to identify the level of performance. :rom the analysis some strategies will be suggest
to develop in order to improve performance of 5T4 so that it can achieve sustainability in
3rivate Higher Education *ndustry.
3erformance measurement is the process of ;uantifying the efficiency and effectiveness of action
#Tangen, !)&, The performance of a company can be regarded in three main aspects<
efficiency, productivity and ;uality #:ilippini et al., !"&.
4larke and 7ouri #!,& have identified the main challenges of integrating
sustainable development in a university system as environmental protection, control instruments
#regulations&, and resource/saving. +any universities have initiated measures to improve
environmental friendliness but a comprehensive resource/saving concept is still lacking.
5nderlying any sustainable assessment framework is usually a conceptual model that helps to
identify and organize the issues that will define what should be measured #1oucks et al., !&.
=ith the ever growing number of communities, businesses and other organizations publicly
pledging their commitment to sustainability, public institutions and particularly HE*s all over the
world are also committing to make their campuses sustainable #3rugh et al., !&. The main
differences among frameworks are the way in which main dimensions or categories of
sustainable development #T>1, i.e. environment, social, and economic& are conceptualized, the
inter/linkages between various categories, the way the issues are grouped to be measured, and
the concepts by which the selection and aggregation of indicators are 8ustified #=aheed et al.,
6earcy #!,& has written important guidelines for sustainability performance
measurement, and this author claims the biggest mistake organizations make is not following
these guidelines from the beginning as part of a business plan. 6earcy recommends that any
business plan for corporate sustainability should be split into three diagnostics< situational, goal,
and implementation. >ased on e0perience at 3roctor and $amble, =hite #!,& claims that
e0perience in implementing sustainability shows the importance of the following factors< being
e0plicit about sustainability and its importance< keeping a broad definition of sustainability?
ensuring that sustainability is not added work? eliminating trade/offs between performance, value
and sustainability? having a clear strategy? and getting sustainability incorporated into the @'2
of a company.
1.3 Education Industry
The 3rivate Higher Education *nstitution #3HE*s& can be categorized into three
types< universities, university colleges and non/university status 3HE*s. The @epartment of
Higher Education is the department under the +inistry of Higher Education which regulates the
both public and private nationAs higher educational institutionsA affairs. +alaysia is ready to be
the centre of educational e0cellence in the 2sia/ 3acific region. +alaysiaAs educational programs
offered by private higher educational institutions #3HE*s& are of e0cellent ;uality. These
institutions of higher learning are governed by various acts such as the Education 2ct 1,,6, the
5niversities and 5niversity 4olleges #2mendment& 2ct 1,,6, 3rivate Higher Education
*nstitutions 2ct 1,,6 and the +alaysian Bualifications 2gency 2ct !..
>ased on data provided by +inistry of Higher Education, there are %6 3HE*s n
with university status, 1" 3HE*s with college 5niversity status, ) >ranch 4ampus of :oreign
5niversity and %! 3HE* with college status in !11. The current total of accredited *3T6
courses for colleges is 1C! according to +alaysian Bualification -egister #+B-&.2ccording to
the statistic from +inistry of Higher Education #Higher Education +alaysia, !1&, number of
3HE*s in !11 are %". and it leads to the competition of 3HE* becomes tough. Dne of the
challenges for 3HE*s in +alaysia is not receiving any fund from the government. However,
+alaysiaAs public universities are heavily subsidized? therefore, its fees are much lower than
3HE*s. 2ccording to 5mashankar and @utta #!.&, an institution failure is due to deficient
strategic planning, poor organization structure, recruitment and retention of staff, ineffective
internal control, poor budgeting and a lack of communication and feedback.
:urthermore, 3HE*s other challenges are promotion issues, multitask
responsibilities, uncertain structure, and emphasis on research without proper facilities and
remuneration 2rokiasamy et al. #!,&. +inistry of Higher Education in +alaysia states that,
most of the 3HE*s are profit enterprise. +alaysian government had liberalized government
policies resulting in the rapid increase in number of 3rivate Higher Education *nstitutions
#3HE*s& including private 5niversities and 5niversity 4olleges. There are many choices in
3HE*s, programs and fee range. >uyer substitution is indeed a real threat and only the 3HE* with
the competitive advantage most valued by the buyers can succeed.
1.4 UNIFIELD TECHNOLOGY COLLEGE
1.4.1 Background of company
The history of 5nifield Technology 4ollege #5T4& dates back to 11 Euly 1,,. when it was
founded by @atuk =ira 2bu 6eman where the college was earlier known as Teknologi 9ayasan
2lor $a8ah *nstitute. 2fter some improvement had been made, the institute officially changed its
name to 7ole8 Teknologi 9ayasan 2lor $a8ah #7T92$2& on 11 +ei !!. This private college
was wholly owned by a private company called 92$ 4ollege 6dn >hd. 7T92$2 operates at a
four #)& storey building, =isma 5+'D situated in the centre of 2lor $a8ah town. 7T92$2 is
one of the +alaysian 6kills 2ccreditation 4entre that offered +alaysian 6kills 4ertificate
programmes. 7T92$2 runs a few programmes which were offered to the local students to
further studies after the secondary school. >esides +alaysian 6kills 4ertificate programmes, it
offers programmes in collaboration with 5niversiti Teknologi +ara #5iT+& which are @iploma
in 2ccountancy, @iploma in >usiness 6tudy and 3re 4ommerce. 7T92$2 was doing well for
several years. The students
*n year !,, 7T92$2 have been taken over by 7' Education 6dn.>hd. result from the rapid
changing in higher education industry. Dn 6 Eanuary !11, with the aggressive management the
application to change the name to 5nifield Technology 4ollege #5T4& had approved by the
+inistry of Higher Education. -ecently, the company have about almost %, student comes
from various country in +alaysia.
5T4 located at Ealan 7emus, 2 :amosa -esort +alaysia, .C 2lor $a8ah, and +elaka,
+alaysia. This location is suitable for the company concept. The concept of this company is
Fcollege in resortG where they provide the place for their customer to have learning process in
the resort. This concept is useful to help the students to live as a competent student, master and
credibility to be a successful person in the future.
-ecently, 5T4 has almost !,6 student in various programs offered with 11! staffs that are
working together to achieve the vision and mission of the company. >esides that, 5T4 has also a
few competitors in this area for e0ample 7ole8 5niversiti *slam +elaka #75*+& and also 7ole8
1.4.2 Vision and Mission
The company vision is to be a prestige high learning provider by produce many professional
graduates those have credibility to fulfill country vision. The mission of the company is to create
opportunity to develop graduate potential and achieve e0cellent in academic as well as skill
programming. These are the ob8ectives of the company<
• 3rovide academic and skill program at certificate, diploma and degree level.
• 3rovide place of learning that have same level with *3T2.
• $iving the knowledge and also develop skill at higher level
• 3roduce graduate that suit with the need of industry
1.4.3 Organization Chart
Figure 1: UTC Organization Chart.
1.4.4 Program Offered By UTC
>il 4ourse 4ode 4ourse 'ame
1 3@% 3re 4ommerce #5iT+&
! >+111 @iploma in >usiness 6tudy #5iT+&
% 2411 @iploma in 2ccountancy #5iT+&
) @H+11 @iploma in Hotel +anagement #5T4&
" @>+11 @iploma in >usiness +anagement #5T4&
6 @7+/67 @iploma 7emahiran +alaysia 6istem 7omputer
. @7+/6+ @iploma 7emahiran +alaysia 6istem +aklumat
C 67+/EE 6i8il 7emahiran +alaysia Elektrik
Figure 2: The program offered by UTC
1.4.5 Student`s Enrollment
FIGURE 3: RESOURCE FROM REGISTRAR OF UTC FROM YEAR 2010 TO
:or the program the collaboration with the 5iT+ 3rogram that is >+111 and 2411,as
we can see the ;uantity of student enrollment from Euly !1 is increase compare with the
year before that is !, which the number of student is only ) student including >+111
and 2411. This is due the takeover by the 7' Education $roup. The increment number
of student enrollment for year !1 shows the aggressive marketing activities done from
this company to boost it sales.
However, in this year the intake is divided into two categories which is the first intake and
second intake. 'ormally, the first intake enrollment is higher because of the student has
8ust finished the 6i8il 3ela8aran +alaysia #63+& and immediately get the program offered.
=hile the second intake is the student that has less choice to further it study. The trend of
student enrollment for the first intake shows the increasing trend by the increase of !6H
from year !1 but the second intake student shows the decreasing trend because of the
decrease by 6!H from the year !1.
:or the @H+111 and @>+11 the intake is divided into three for a year. The above
statistic shows that the student enrollment is increase in !11 compare with !1. *t is
because of the program @>+11 has 8ust started the intake in !11. However the student
enrolment for this course is decrease gradually. :or the 6i8il 7emahiran the student
enrollments increase for @7+ but not 67+. The total number of student enrollment is
increase but it seems that the unfavorable trend will come if the company cannot sustain
their number of student enrollment.
1.5 Problem Statement
Dne of +alaysiaAs economic goals is to become an education hub for the region. To achieve this,
the +alaysian government had liberalized government policies resulting in the proliferation of
3rivate Higher Education *nstitutions #3HE*s& including private 5niversities and 5niversity
4olleges. 2s competition intensifies it becomes increasingly pertinent to ask how the company
can sustain in the +alaysian education industry. +oreover, for the smaller 3HE*s, it is a ;uestion
of survival itself. *n recent year, there are increasing numbers of private college in +alaysia from
year !, there is )6 and increase in year !1 to be ).6 refer to Figure 2.
5nfortunately in year !! The @epartment of 3rivate Education revealed that ! private
institutions of higher learning had been closed down in !! mostly is because of they cannot
sustain and survive in this industry. These how the e0ternal driving factor such as competitors
will influence the performance of the company. The history of 5T4 has also comes from one of
the private institution of higher learning that had been closed down in year !, and take over by
Dn top of that, the number of student enrollment has also important for the company to sustain in
this industry because the higher student enrollment will indicate that the higher income will be
generated. *t is continually increase from year !1 to !11 #Figure 3&. *t show the challenge of
the company to sustain in this industry by maintain as well as increase the number of student
The problem statement of this research to be highlighted is how the 5T4 can sustain in this
industry given strategies to improve the performance itself. This paper aims to provide a
theoretical study of some of the key strategic activities to answer this ;uestion. The theoretical
framework employed for the analysis will be +ichael 3orterAs :ive 4ompetitive :orces and
4ompetitors 3rofile +atri0 #43+&, E0ternal :actor Evaluation and *nternal :actor Evaluation,
*nternal and E0ternal +atri0 and also 6=DT 2nalysis.
1.6 Management Question
How to improve the performance of management so that the company is able to sustain in
1.7 Management Objective
The overall aim of this study is to improve the performance of company to achieve sustainability
in education industry.
1.8 Definition of Terms
This section provides the operational definition for the purpose of clarification the key terms, as
contained in and related to the title of the study that will be used throughout the study. @etails
discussions of these terms are presented in the following chapter of this study.
1.8.1 Operational Definition of Performance
The performance of a company can be regarded in three main aspects< efficiency,
productivity and ;uality #:ilippini et al., !"&. 3erformance, on the other hand, is an even
broader term that covers both overall economic and operational aspects. *t includes almost any
ob8ective of competition and manufacturing e0cellence whether it is related to cost, fle0ibility,
speed, dependability or ;uality #:igure %&. :urthermore, performance can be described as an
umbrella term for all concepts that considers the success of a company and its activities.
'evertheless, the types of performance that a particular company strives to fulfil are very case
specific. 6lack et al. #!1&
1.8.2 Operational Definition of Sustainability
*ndividual corporations, responding to emerging global issues of environmental degradation,
social in8ustice, and changing economic realities, are e0amples of organizations that are
successfully using sustainability principles and practices to influence their core business models
#(olkswagen $roup, !C? @ow Eones 6ustainability *nde0es, !1? 1ubin and Esty, !1&.
*nstitutions of higher education are different. =hile they have stakeholders, not shareholders,
they are otherwise not immune to many of e0ternal drivers behind the corporate shift to
sustainability #>ardaglio and 3utman, !,? 1ubin and Esty, !1? =right, !1&. 9et,
implementing sustainability practices across all walks of the campus often proves to be
considerably more challenging than in a corporate environment because campuses have
additional pressures #(elaz;uez et al., !"? =alton and $alea, !"? :errer/>alas et al., !C?
>ardaglio and 3utman, !,&
1.9 Research Objectives
The e0pected outcomes of this research are<
i. To identify the critical success factor in determining the level of performance of
ii. To suggest strategies to be implemented for the improvement of performance to
1.10 Significance of the Study
The findings of this study are useful for the 4ED of 5T4 in ways to improve the
performances of the company. The researchers will identify factors impacts on performance.
-esearchers also will suggest on strategies that could be taken by the company for the
improvement of the performance. The findings of the study also are useful to the other
researchers as references for further research on this topic.
1.11 Limitations of the Study
1.11.1 The findings of this study cannot be generalized to other companies as this study confines
to 5T4 only. However, it will benefit 5T4 and also other companies which having the same
issues. The number of respondents interviewed is also small to such an e0tent that the findings
could be different if more respondents are being assessed.
1.11.! The outcomes from the interview and the feedback in the ;uestionnaires might not be
accurate and transparent as attitude of the respondent is something that cannot be controlled.
>eing an outsider may also limit what is revealed to the researchers.
1.12 Scope of Study
1.1!.1 The scope of this study only covered factor contributes towards performance of
organizational and the relation with sustainability.
1.1!.! The survey is conducted via interview and a ;uestionnaire among the present
employees of 5T4As which is located at 2A:amosa -esort +elaka. The targeted number of
respondents would be all employees of 5T4. as currently the company only have 1" active
employees. The researchers allocated two weeks for data collection from the respective
1.13 Organization of the Applied Business Research (ABR Paper)
This 2>- is organized in " chapters? *ntroduction, 1iterature -eview, -esearch +ethodology,
2ssessment and :indings and @iscussion and -ecommendation arrange accordingly to truly
e0plain the flow of this study.
*n 4hapter 1, the *ntroduction covers the background of the research which provided the
e0planation on performance of company. *t also includes the background of the company,
problem statement, ob8ectives, significant, limitation, and scope of the study and research
4hapter ! covers the 1iterature -eview. *n this chapter it covers the review from the previous
studies that were related to performance of company as well as the relevant tools that were used
during the analysis of this study.
4hapter % on the other hands defines the research methodologies that were applied during this
study and the findings and the assessment of it were clearly e0plained in 4hapter ). The final
part of this 2>- is 4hapter " where the findings were discussed and conclusion with
recommendations related to the topics was discussed.
2ny organization should target the ideal standard of performance namely, consistently, ethical
and energetic behaviors that always succeed in producing the best result #$ary, !%&. #1awler
!%& asserts that the ob8ectives of performance management often include motivating
performance, helping individuals develop their skills, building a performance culture,
determining who should be promoted, eliminating individuals who are poor performers, and
helping implement business strategies. Thus, #1awler !%& concludes that there is little doubt
that a performance management system which can accomplish these ob8ectives can make a very
positive contribution to organizational effectiveness, but there is less clarity about what practices
make a performance management system effective.
*f there is change in business condition and customer re;uirement it will be necessary changes in
the process design over time. That is also improvement of the process design because it is the
key to improve business performance #Hammer, !.&. Drganizations no longer compete on
processes, but the ability to continually improve processes #Teece, !.&. 4ontinuous
improvement is defined as Fa systematic effort to seek out and apply new ways of doing work,
i.e. actively and repeatedly making process improvementsG #2nand et al., !,&. 4ontinuous
improvements initiatives help enhance the organizationJs ability to make cohesive and ;uick
process changes to improve performance. Hence, continuous improvement initiatives can serve
as a dynamic capability for the organization #2nand et al., !,&.
The most ;uoted performance measurement definition is 'eely et al.Js. #!!, p. 0iii& FThe
process of ;uantifying the efficiency and effectiveness of past actionsG. =hile this definition
emphasizes effectiveness as well as efficiency, it is unlikely to make managers stop and
challenge their performance measurement systems and gives little indication as to what they
should ;uantify or why. >esides that, different definition of performance measurement is the
process of ;uantifying the efficiency and effectiveness of action #Tangen, !)&.Efficiency
measures the relationship between resources and the results obtained from using them, and
effectiveness is directed to determine how well a service is provided or how successful a
department or program is meeting previously established ob8ectives #6mith, 1,CC&.
*n addition to these two important kinds of measures #efficiency and effectiveness&, managers of
nonprofit organizations adopt many others to evaluate their services. These include output
indicators? client or customer satisfaction indicators? e0ternal audits? and the use of industry
standards and benchmarks #4arman and :redericks, !C? 4arman, !,? 1e-ou0 and =right,
!1&. 'evertheless, performance dimensions cannot be operatively measured unless one or
more indicators #or metrics& are associated to each dimension #D8anen and (uola, !6?
6andstrom and Toivanen, !!&. *n -K@ settings, the distinction between ;ualitative and
;uantitative indicators is particularly relevant< given the difficulties in measuring uncertain and
intangible performance, an appropriate balance between the use of ;ualitative and ;uantitative
metrics is critical< the former allow to capture un/measurable aspects, while the latter give the
opportunity to reduce the sub8ectivity of the evaluation #3appas and -emer, 1,C"? =erner and
6ouder, 1,,.? @riva et al., !&.
McKinsey 7`s Model
2ccording to -obert 6. 7aplan, #!"& The ./6 model posits that organizations are successful
when they achieve an integrated harmony among three FhardG F6JsG of strategy, structure, and
systems, and four FsoftG F6JsG of skills, staff, style, and super/ordinate goals #now referred to as
shared values&. =hile not all the companies 3eters and =aterman praised for Fe0cellenceG
sustained their leadership performance during the 1,Cs and 1,,s, the ./6 model continues to
be used in practice and in business school teaching as a diagnostic and prescriptive framework
for organizational alignment.
+c7insey and management scholars -ichard 3ascale and 2nthony 2thos #The Art of Japanese
Management, 1,C&, describes the seven factors critical for effective strategy e0ecution<
3ascale and 2thos L)M have used that model to contrast the managerial characteristics
of 5.6. and Eapanese firms. They defined the elements of the 6even 6Js model as follows<
The positioning and actions taken by an enterprise, in response to or anticipation of changes in
the e0ternal environment, intended to achieve competitive advantage. 2ddressing these
sustainability challenges companies typically move through stages of learning #Oadek, !)?
6pitzeck, !,? +aon et al., !1& and are beginning to integrate sustainability within their
strategies #$rayson and Hodges, !)? 3orter and 7ramer, !6&. 2 coherent set of actions
aimed at gaining a sustainable advantage over competition, improving position vis/a/vis
customers, or allocating resources.# 2rnoldo 4. Ha0, 'icholas 6. +a8luf, #1,C%&
The way in which tasks and people are specialized and divided, and authority is distributed? how
activities and reporting relationships are grouped? the mechanisms by which activities in the
organization are coordinated. The organization chart and accompanying baggage that show who
reports to whom and how tasks are both divided up and integrated# 2rnoldo 4. Ha0, 'icholas 6.
The formal and informal procedures used to manage the organization, including management
control systems, performance measurement and reward systems, planning, budgeting and
resource allocation systems, and management information systems. The processes and flows that
show how an organization gets things done from day to day #information systems, capital
budgeting systems, manufacturing processes, ;uality control systems, and performance
measurement systems would be good e0amples&. # 2rnoldo 4. Ha0, 'icholas 6. +a8luf, #1,C%&
The people, their backgrounds and competencies? how the organization recruits, selects, trains,
socializes, manages the careers, and promotes employees. The success of a resource efficiency,
conservation or sustainability programme is highly dependent on the number of people who
participate in that programme, and the fre;uency and effectiveness of that participation #=oolam
et al., !%? @avis et al., !6&.
The distinctive competencies of the organization? what it does best along dimensions such as
people, management practices, processes, systems, technology, and customer relationships.
4omprised of several components such as procedural and declarative knowledge, task skills and
physical abilities #Humphrey et al., !,&, 8ob/related skill refers to the knowledge, skills, and
abilities re;uired performing specific tasks. These skills have shown to be different and
independent of other concepts such as cognitive ability or 8ob e0perience #+orgeson et al.,
!"&. 2ccording to psychological theories based on individual self/e0pansion, one of the most
important human motivations is the desire to e0pand the self, Fto ac;uire resources, perspectives,
and identities that enhance oneJs ability to accomplish goalsG #2ron et al., !), p. 1%&. :or this
reason, action team members with lower levels of skill may positively value differences in skills
because others who are more skilful may complement their own and allow the team to reach its
ob8ectives #Dosterhof et al., !,&.
The leadership style of managers P how they spend their time, what they focus attention on, what
;uestions they ask of employees, how they make decisions? also the organizational culture # the
dominant values and beliefs, the norms, the conscious and unconscious symbolic acts taken by
leaders #8ob titles, dress codes, e0ecutive dining rooms, corporate 8ets, informal meetings with
The core or fundamental set of values that are widely shared in the organization and serve as
guiding principles of what is important? vision, mission, and values statements that provide a
broad sense of purpose for all employees. The idea of aligning actors by focusing on shared
values, however, is not proprietary to management science and also appears, for e0ample, in
public administration which prefers the term Fpublic valueG #6mith, !)? Eos, !6&.3orter and
7ramer #!11, p. 66& define shared value as follows<
The concept of shared value can be defined as policies and operating practices that enhance
competitiveness of a company while simultaneously advancing the economic and social
conditions in the communities in which it operates. (alue is defined as benefits relative to costs,
not 8ust benefits alone.
Porter 5 Forces
The 3orterJs " forces analysis is used since this tool is one of the most useful to make a
framework for understanding the opportunities and threats faced by competitor. There are five
elements for this tools analysis? industry competitor, potential entrants, substitutes, buyers and
suppliers #3orter, 1,C&. 3orterAs model is based on the insight that a corporate strategy should
meet the opportunities and threats in the organizations e0ternal environment. Especially,
competitive strategy should base on and understanding of industry structures and the way they
change. 3orter has identified five competitive forces that shape every industry and every market.
2s shocking events were taking place in the worldJs financial markets in Eanuary !C, Harvard
>usiness -eview published a revised edition of 3orterJs 1,., article #3orter, !C&. 2nd
Fgratifying for 3rof 3orter, there has been no need to revise the model that describes the five
forces that shape the markets in which businesses competeG, says 6tern, whose :T article on .
Eanuary !C is aptly entitled F+ay the forces be with you in !CG #6tern, !C&.
EFE and IFE Matrix
The *nternal :actor Evaluation #*:E& and E0ternal :actor Evaluation #E:E& matrices, the initial
input matrices, are constructed as a result of an organizationAs internal and e0ternal audits. The
*:E matri0 summarizes an organizationAs ma8or internal strengths and weaknesses, and the E:E
matri0 essentially is a synopsis of the e0ternal environmentAs ma8or opportunities and threats and
how they impact the organization #4harles E.!1!&.
He also added an *:E matri0 is the summary step of the internal audit of an organization. +a8or
internal strengths and weaknesses are listed, weighted, and rated to derive a total weighted score
based on a 1 to ) metric rating scale where !." represents how the average company in the
industry is coping with its internal environment. 1ikewise, constructing an E:E matri0 is the last
step of an organizationAs e0ternal audit. +a8or e0ternal opportunities and threats are listed,
weighted, and rated to derive a total weighted score that is also based on a 1 to ) metric rating
scale where !." represents how the average company in the industry is handling its e0ternal
environment. The total weighted scores from the *:E and E:E matrices are often plotted on a
nine/celled *nternal/E0ternal #*/E& +atri0 for more strategic advice, such as $row and >uild,
Hold and +aintain, or Harvest and @ivest.
Competitors Profile Matrix (CPM)
2 4ompetitive 3rofile +atri0 #43+& uses critical success factors #46:s&, which include both
internal and e0ternal factors, that most impact an organization and compares the organization to
its ma8or competitors on these 46:s. 2 43+ creates a powerful visual, as it conveys
information regarding an organizationAs potential competitive advantage. The 43+ displays the
basis of an organizationAs strategy and is a useful instrument to communicate those strategic
attributes to all in the organization #>ygrave K Oacharakis, !1&. =hile the 43+ is a
worthwhile tool for managers to use, it does have some potential limitations? 46: ratings are
sub8ectively assigned a rating between 1 and ), and non/uniformity may occur due to weights
being assigned sub8ectively by the evaluators #4hang K Huang, !6&. The 4ompetitive 3rofile
+atri0 allows a company to evaluate its relative competitive position against ma8or competitors
by using a weighting of an industryAs critical success factors and then rating ma8or competitors
on the listed critical success factors #@avid, !1!&
3hilip 6elznick #1,".& introduced the idea of matching the organizationJs internal factors with
e0ternal environmental circumstances. This core idea was developed into what we now call
6=DT analysis. 6=DT analysis was described by 1earned et al. #1,6,& and has grown as a key
tool for addressing comple0 strategic situations by reducing the ;uantity of information to
improve decision/making. Dn/line wikis credit 6=DTJs origination with 6tanford 5niversity
3rofessor 2lbert Humphrey who led a research pro8ect in the 1,6s and 1,.s based upon the
5nited 6tatesJ :ortune " companies but no academic references to support this claim can be
found #7ing, !)&. Haberberg #!& stated 6=DT was a concept used by Harvard academics
in the 1,6s while Turner #!!& attributed 6=DT to *gor 2nsoff #1,C.&.
7och #!& credited the contributions of =eihrich #1,C!&, @ealtry #1,,!&, and =heelan and
Hunger #1,,C& to 6=DTJs further development and innovation. =heelan and Hunger #1,,C&
used 6=DT to find gaps and matches between competences and resources and the business
environment in their popular business policy and strategy te0t while @ealtry #1,,!& approached
6=DT in terms or groups and vectors with common themes and interactions. -egardless of the
e0act historical credit for coining the term F6=DTG, it has a half/century of use and
documentation in the literature.
6=DT analysis assists in the identification of environmental relationships as well as the
development of suitable paths for countries, organizations, or other entities to follow #3roctor,
1,,!&. $laister and :alshaw #1,,,& found 6=DT analysis one of the highest ranked set of tools
and analysis techni;ues used in strategic planning in companies in the 57. 3anagiotou #!%&
contends 6=DT analysis is used more than any other strategic planning tool.
This chapter discusses about the procedure, style and step to fulfill the
management ob8ective re;uirement. *t is important for the research to select and
determine the appropriate research design for providing the framework in conducting this
study. The ob8ective of this study is to describe on the process and the techni;ue involve
in this study.
3.1 Research Design
This study is a type of a ;ualitative and ;uantitative research studies. Bualitative
research encompasses a range of philosophies, research designs and specific techni;ues
including in/depth ;ualitative interviews? participant and non/participant observation?
focus groups? document analyses? and a number of other methods of data collection
#3ope !6&.The aim of ;uantitative research is to determine the ;uantity or e0tent of
some phenomenon in the form of numbers #Oikmund, !%&. The purpose of this study is
to look into the factors that affect the level of performance among the employees of 5T4.
3.2 Type of Data
*n this study, both types of data were being used. They were the primary data and
3.2.1 Primary Data
3rimary data is a type of data collection method that was obtained from the
firsthand for subse;uent analysis to find the solution of the problem. The primary
data of this study was from focus interview and ;uestionnaires.
i. Focus Interview
The researchers have conducted focus interviews with the 5T4.
which comprised the 4ED, Human -esource +anager and -egistrar of the
company with the total respondents were % person. The interview with the
4ED concerned for the output in the aspect of current company practices
including the background, vision, mission, aims, and problems occurred.
=hile, interview with Human -esource +anager is to know how many
employees was identified. 1astly, is the interview with -egistrar to collect
the data on student enrollment. The output from the interview as in
Buestionnaires were employed to assess the current practice of
5T4 in regards to .As for the current practice in the organization. The
researchers have distributed this accordingly by giving ! sections of
;uestion which cover demographic ;uestions and as well as .As ;uestions.
These include the strategy, structure, systems, shared values, styles, skill
and staff. Total number of respondents was "6 people who will be choose
randomly from 11! staffs.
3.2.2 Secondary Data
6econdary data is a type of information gathered from readily available
sources and it is divided into two categories which are e0ternal and internal data.
The e0ternal secondary data was gathered outside of the organization such as data
of the current $@3 rate for +alaysia which taken from the website of @epartment
of 6tatistic +alaysia. =hile, internal secondary data were gathered from within
the company itself such as the statistic of employment and student enrollment.
3.3 Target Population
3opulation refers to the entire group of people, events or things of interests those
researchersA wishes to investigate. 2s the researchers focus on research outcome of the
performance of the company, thus the targeted population was from the present
employees of the company itself. 4urrently, there were 11! employees, thus the
researchers re;uired "6 of them to give feedback on the ;uestionnaires.
a.4 Data Collection
:rom this study, both primary and secondary sources were used. Bualitative data
obtained from discussion with management of 5T4 were used to construct
;uestionnaires and for formulating management ;uestions. :inally, the structured
;uestionnaires were used to obtain feedback from the respondents regarding their level of
3.5 Questionnaires Design
2 great deal of commitment has been given by researcher in designing the
;uestionnaires. 2ll the principles were taken carefully in order to minimize respondent
biases and measurement errors.
:or this study, the researchers have developed a ;uestionnaires comprises of two
section with ranges from 2 to > used 1ikert 6cale +ethod. 6ection 2 re;uired feedback
on demographic factor which consist of ) ;uestions. 6ection > on .As statement that
consist of strategy, structure, systems, shared values, style, skills and staffs. Total of the
;uestion in section > are !C statements.
3.5.1 Sources of Questions
2ll ;uestions in the ;uestionnaires were gathered from the related 8ournal and
previous researches. The details of the ;uestionnaires and sources can be referred
to table %.1<
Table 3.1: Sources of Questions
6trategy 1.Unifield Technology College’s strategy seeing to
2.Unifield Technology College #se its reso#rces and ca"a$ilities to deli%er the
3.Unifield Technology College are co!"etiti%e a!ong their co!"etitors
4.Unifield Technology College ada"t to changing !aret conditions
(ol. %% *ss< %,
pp.)1 P )6
1. Unifield Technology College is organi'ed.
2. The re"orting and (oring relationshi"s are syste!atic.
3. The e!"loyees align the!sel%es to the strategy.
4.The infor!ation is (ell shared across in Unifield Technology College
6ystems 1. Unifield Technology College #se the "ri!ary $#siness and technical syste!s to
dri%e the organi'ation.
2. The syste!s are controls $y the Unifield Technology College.
3.Unifield Technology College has the "olicies for the syste! "rogress and
4.Unifield Technology College #se the internal r#les and "rocesses that the tea!
#tili'e to !aintain co#rse
1. Unifield Technology College has clear !ission to $e
2.)irectors ha%e a clear detailed %ision (here Unifield Technology College is
3. Unifield Technology College has s"ecific %al#e to $e shared daily life.
4. Unifield Technology College set the fo#nding %al#es that the organi'ation
needs to $#ild #"on.
1. The !anage!ent "ractice good leadershi" style.
2. *!"loyees are (ell res"ond to !anage!ent.
3.The e!"loyees f#nction is co!"etiti%ely+ colla$orati%ely+ and coo"erati%ely
4.,eha%iors+ tass and deli%era$les is re(ard $y !anage!ent-leadershi"
1. The staffs ha%e eno#gh sills to $e #sed to deli%er the ser%ices.
2.There are sill ga"s $et(een the staffs in Unifield Technology College
3. The e!"loyees ha%e the right ca"a$ilities to do their .o$s.
4.&taff sills is !onitored+ assessed+ and i!"ro%ed
1.Unifield Technology College is (ell !anage their staff
2.The staffing needs is %ery i!"ortant in Unifield Technology College
3.There is a ga"s in re/#ired ca"a$ilities or reso#rces
4. Unifield Technology College has tae the action "lan to address the needs of
3.6 Pilot Test
2 pilot test is a method to pre test the reliability of the ;uestionnaire prior to conduct the
actual research besides to test the reliability of the instrument to measure the research
variables from the samples in order to achieve the ob8ective of the studies #2zmi, !1&.
This pilot test was administered and done among three employees of 5T4 which are<
i. 6iti 2snita >inti +d Oin / 1ecturers
ii. 6iti 2zraie >inti 6olihin / 1ibrarian
iii. +ohd :arhanulhelmy >in 2bdul 2ziz/ Dperation Technician
The pilot test was conducted on the 11 'ovember !1! and it is done purposely to
determine whether the ;uestions listed meet the understanding of respondents and the
re;uirement of the study.
3.7 Process of Data Collected
Table 3.2: Gantt Chart for Data Collecting
3.8 Rate of Response
"6 ;uestionnaires were distributed among the employees of 5T4. The researchers have
difficulties to get responds from the respondents, who mostly at the different department
as they need e0tra time to responds due to busy work routine.
3.9 Data Analysis
2fter all relevant data had been gathered from the respondents, it will be analyzed to look
into the final result. The data is keyed into software called 6tatistical 3ackage for 6ocial
6cience #6366 (ersion 16.&. 2 perfect data analysis re;uires all items and variables in
the ;uestionnaire to be coded so to facilitate the analysis. 2mong the reason why the data
analysis is vital not only to see into the result but it helps the researchers to measure the
ob8ective of studies.
3.9.1 Descriptive Statistic
@escriptive statistics are the methods used to organize, display, describe and
e0plain a set of data with the use of table, graphs and summary measures
#'orusis, 1,,,? Eohnson and 4hristensen, !&. *n this study, descriptive statistic
such as fre;uency, mean and standard deviation are used to describe the basic
features of the overall data. (ia report generated, it provides simple summaries
pertaining to the sample of population and the measures. The additional of
graphic e0tends the level of understanding as far as data interpretation is
concerned. *n order to analyze the replied ;uestionnaires, the level of agreement is
segmented into five levels by using simple computational concept as stated
-ange level of category R #Highest mean/ lowest mean& S number of categories
R #"/1& S % R 1.%%
6o, level of agreement has been stated as Table %.% below<
Table 3.3: The Level of Agreement
1./ !.%% 1ow 1evel
!.%) P %.6. +oderate 1evel
%.6C P ". High 1evel
*n this chapter, the researchers has been briefly e0plained and elaborated the research
design, population and location of study, sampling procedures, design of ;uestionnaire,
data collection method, research framework, pilot test and data analysis. The input of this
study was done via focus interview among the management and employees of the
company. The following chapter will be discussed on the finding of the study.
ASSESSMENT AND FINDINGS
*n this chapter, it will thoroughly depict the result of the study. This is with the aim to
interpret and present the study in comprehensive manner. There would be several
statistical techni;ues that have been used for this study.
The mean measure the average value within each variable and is the most commonly
used measures of central tendency. The mean can be calculated when the data scale is
either interval or ration. $enerally, the data will show some degree of central tendency
with the most of the responses distributed close to the mean #=olfinbarger et. al., !C&
4.1 Mean, Standard Deviation and Frequency
:ah and Hoon #!,& defined mean as the average value of a data set. *t produces a
mathematical number that reflect the average and may be used to report central
tendencies. =hile, $roard #!"& defined standard deviation as a measure of TdispersionA
or TspreadA. *t is used as a common summary of the range of score associated with a
measure of central tendency/ the mean average. *t is obtained by summing the s;uared
values of the deviation of each observation from the mean, dividing by the total number
of observation and then taking the positive s;uare root of the result. Dn the other hand,
purpose of fre;uency is to show the respondents feedback based on the most important to
:or this study, the mean was used to ac;uire the level of satisfaction towards
performance of the company. Through 1ikert 6cale, responds above % was considered as
accepting to the attributes or items for each dimension.
4.1.1 Demographics of Respondents.
Table 4.1: Demographics of Respondents
:re;uency 3ercent (alid 3ercent
(alid !1/!" !" )).6) )).6) )).6)
!6/% !1 %.." %.." C!.1)
%1/%" C 1).!, 1).!, ,6.)%
%" 2>D(E ! %.". %.". 1
Total "6 1 1
:re;uency 3ercent (alid 3ercent
(alid +21E 1C %!.1 %!.1 %!.1
:E+21E %C 6.., 6.., 1.
"6 1. 1.
:re;uency 3ercent (alid 3ercent
(alid 1 9E2- 2'@ 1E66 !! %,.% %,.% %,.%
! / " 9E2-6 !, "1.C "1.C ,1.1
6/1 9E2-6 ) ..1 ..1 ,C.!
1 9E2-6 2>D(E 1 1.C 1.C 1.
Total "6 1. 1.
:re;uency 3ercent (alid 3ercent
(alid H*$H 64HDD1 >E1D= % ".) ".) ".)
@*31D+2 11 1,.6 1,.6 !".
>24HE1D- %. 66.1 66.1 ,1.1
+26TE-6 " C., C., 1.
Total "6 1. 1.
>ased on table ).!, the respondentsA age, )).6H of the respondents were in a range of !1 to !"
years old. =hile, %.."H in a range of !6 to % years old, 1).%H in a range %1 to %" years old and
%.6H in a range of %" years old and above.
+ost of respondents come were female #6..,H& and the rest was male #%!.1H&. Total of
respondents was "6 people.
*n the aspect of working e0periences, "!H of the respondents has been working with the
company for !/" years, %,H of the respondents has working less than a year, ..1H has working
for 6/1 years and 1.CH with e0perience more than 1 years.
The highest academic background was a +asters @egree which represents C.,H, followed by
bachelor @egree 66H, @iploma !H and the rest "H represents respondents with ;ualifications
lower than @iploma.
4.1.2 Analysis on 7 S
Table 4.2: Mean, Std. Deviation and Frequency for Strategy
1. 5nifield Technology
4ollegeAs strategy seeking to
" !C !% !.%!
!. 5nifield Technology 4ollege
use its resources and
capabilities to deliver the
" !) !" ! !.)%
%. 5nifield Technology 4ollege
are competitive among their
% %1 !! !.%)
). 5nifield Technology 4ollege
adapt to changing market
. !) !" !.%!
Overall Mean 2.35 2
Table ).% reflects the analysis on strategy of a company is one of the attributes in measuring
performance. >ased on the table ).%, it is shows that most of respondents almost disagreed with
the strategy of the company as the overall nominal mean is two #!&. Therefore, management has
to take initiative by revising the current strategy and develop new strategy in order to become
Table 4.3: Mean, Std. Deviation and Frequency for Structure
1. 5nifield Technology
4ollege is organized.
1" ! !1 %.1
!. The reporting and working
relationships are systematic.
1! !. 1" ! %.1%
%. The employees align
themselves to the strategy.
1 1 !C 1. %.,
). The information is well
shared across in 5nifield
1. !1 1" % %..
Overall Mean %.1
Table ).) illustrates on the structure attributes. The table shows that information is not well
shared across 5T4 because it has the lowest mean, %... :urthermore employees were not align
with the strategy of the company as the mean is only %.,. Thus, management should improve
more on the information flow among its employees so that all the employees receive correct
information at the right time and also the employees should be made known on the vision and
mission of the company so that they can align themselves to the strategy to accomplish the
mission. +anagement should encourage employeesA participation in any decision making
process. 1ack of communication could create culture of individualistic among the employees,
misunderstanding and disturb harmonization in the company. :inally, it leads to turnover
intention. Enhancing communication among the departments is considered as environmental
features that should be created and maintained to give employeesA 8ob satisfaction 3aul 1.
$erhardt, Er., !6.
Table 4.4: Mean, Std. Deviation and Frequency for Systems
1. 5nifield Technology
4ollege use the primary
business and technical
systems to drive the
. %% 16 ).16
!. The systems are controls by
the 5nifield Technology
1 %% 1% )."
%. 5nifield Technology
4ollege has the policies for
the system progress and
! !1 %% ).""
). 5nifield Technology
4ollege use the internal rules
and processes that the team
utilize to maintain course
11 !, 16 ).,
Overall Mean ).!1
Table )." demonstrates elements that comprehend the systems of the company . The overall
score of mean is ).!1 which shows that the level of satisfaction of the respondents towards the
systems in 5T4 is ;uite strong enough. *t is the impact of *6D,C<!1. Everything should be
done according to the procedure and is well documented.
Table 4.5: Mean, Std. Deviation and Frequency for Shared Values
1. Unifield Technology
College has clear mission
to be achieve
9 23 22 2 3.30
!. @irectors have a clear
detailed vision where
4ollege is heading
" !% !. 1 %.)%
3. Unifield Technology
College has specific
value to be shared daily
10 20 23 3 3.34
). 5nifield Technology
4ollege set the founding
values that the
organization needs to
1 !1 !) 1 %.!,
Overall Mean 3.33
Table ).6 describes on values that should be shared among the people in the organization. The
overall mean is %.%% in which show that most of the respondents agreed in the aspect of shared
values across the company. The highest mean score is %.)%, directors have clear vision to be
achieved and the direction towards what 5T4 is heading. 6haring the same values could lead
towards better cooperation and self belongings towards the organization. Employees who have
strong belongings to the organization will display greater organization citizenship and perform
beyond their re;uired 8ob duties #-anya 'ehmeh, !,&.
Table 4.6: Mean, Std. Deviation and Frequency for Style
1. The management practice
good leadership style.
1 " !% !6 1 %.%C
!. Employees are well
respond to management
6 !6 !% 1 %.%)
%. The employees function is
6 !! !. 1 %.)1
). >ehaviors, tasks and
deliverables is reward by
1 1! !" 1) ) %.1)
Overall Mean %.%!
Table ).. describes on relationship of the management style towards employee. The overall
mean is %.%! in which show that most of the respondents agreed in the aspect of affective
management style. The highest mean score is %.)1, contributed from employeesA functioned
competitively, collaboratively and cooperatively. Dverall, it demonstrates that the employees
were satisfy with management practices because they respond positively towards management
Table 4.7: Mean, Std. Deviation and Frequency for Skill
1. The staffs have enough skills
to be used to deliver the
, !6 !1 !.!1
!. There are skill gaps between
the staffs in 5nifield
1% !! !1 !.1)
%. The employees have the
right capabilities to do their
C % 1C !.1C
). 6taff skills is monitored,
assessed, and improved
C %! 1" 1 !.1C
Overall Mean !.1C
2s shown in table ).C, respondents not really satisfied in the aspect of skill. *t can be seen that
there is skill gaps between the staffs because it has the lowest mean of !.1). To overcome this,
company may provide more training to the employees so that they have suitable skills to perform
their tasks. Thus, management should provide continuous training because it will enhance the
employeesA satisfaction and provides opportunities for better career advancement as argued by
3aul 1. $erhardt, Er., !6. The enhancement of knowledge and e0perience of the employees
also may lead to better work performance. 2s can be seen from demographic of respondents,
most of them were aged between !1/!" and of course they are lack of e0periences. *n aspect of
education only five #"& people were with +asters @egree. 4urrently management higher more
fresh graduates students to take the cost advantage. This factor may contribute the problem of
skill gaps or not enough capabilities of doing 8ob because of lack of e0perience. *n order to
overcome this, the company have to consider of hiring persons with more e0periences so that the
e0periences can be shared to the company for improvement of current performance. >esides, the
person also may become thinker of the organization, doing research and develop more strategies
for 5T4 to gain competitive advantage.
Table 4.8: Mean, Std. Deviation and Frequency for Staff
1. 5nifield Technology
4ollege is well managed
1, !% 1! ! !.,"
!. The staffing needs is very
important in 5nifield
! !1 1) 1 !.,%
%. There is a gaps in re;uired
capabilities or resources
1 1C !1 1" 1 !.,"
). 5nifield Technology
4ollege has take the action
plan to address the needs of
1! !) 16 ) %.!1
Overall Mean 3.01
Table )., illustrates factor regarding to the staff of 5T4 as one of the attribute to measure
performance of the company. *t can be seen that 5T4 has taken the action plan to address needs
of the staffs has the highest mean which is %.!1. *t shows that 5T4 is concern about the need of
its staffs. 4oncern from management towards its staffs is crucial to gain commitment from the
employees. 2s a resul, the employeesA loyalty, sense of obligation towards the company is higher
and provide competitive advantage to the company #7ok =ei 7hong, !,&.
4.1.3 Level of Variables
2s discussed and early determined level of variables, it had been segmented into three
categories where 1./ !.%% #low level&,. !.%) P %.6. #moderate level& and %.6C/ ". high
level&. The following is the result of level of variable for each dimensions measured.
Table 4.9 Level of Variables
Variables Mean Level
6trategy !.%" +oderate
6tructure %.1 +oderate
6ystem ).!1 High
6hared (alues %.%% +oderate
6tyle !.1. 1ow
6kill %.%! +oderate
6taff %.1 +oderate
>ased on table ).,, as result of the survey done, overall level of performance in 5nifield
Technology 4ollege based on McKinsey 7`s Model is at moderate level which its mean is %...
Michael Porter`s Five Competitive Forces
• Threat of New Entrants
'ew entrants are a challenge for 5T4 because new entrants will ultimately want
to gain market share? which in turn results in pressure on prices, costs, and the
investment needed to compete. The threat of new entrants will depend on whether or
not the industry has high or low barriers of entry. >ased on data provided by +inistry
of Higher Education, there are %6 private HE* with university status, 1" private HE*
with college 5niversity status, four #)& >ranch 4ampus of :oreign 5niversity and
%! private HE* with college status in !11. @ue to the relatively loose governmental
regulations or re;uirements in setting up higher education sector, the sector is seeing
an increase in the number of 3rivate HE* and with increasing competition in the
• Bargaining Power of Customers
The threat of buyers is high. The increasing number HE*, have provided the
students wider options of not 8ust selecting the courses of their choice but also the
institutions they would like to study. 4ustomers #students& will typically have
bargaining power because they have some sort of leverage over those who participate
in this industry. 2 HE* which can differentiate and diversify themselves will likely to
find their operations to be more stable than those who do not. The services which are
uni;ue and provide a sustainable value to the students will add to the bargaining
power to the students. *n order to overcome this, 5T4 provides a uni;ue place of
study and accommodation surrounded by the greenery of golf course.
• Bargaining Power of Suppliers
6uppliers#faculty and trainers& will have bargaining power if they possess
large opportunities with increasing number of students and HE*, and for the HE* a
shortage of ;uality faculty, can be challenge not 8ust in recruiting but also in
retaining. >argaining power of supplier is high because the cost of switching to
new 8ob is low, and of course they are moving to the place that provides better
• Threat of Substitutes
6ubstitutes are products or services that meet the same need but by different
means. The threat of substitutes is high if the substitute provides a cost/effective
trade off compared to the original product. :or the Higher education industry the
most powerful and growing force is the threat from no of substitutes particularly
from distance education and online programmes, which have increased and
increasing in numbers and with *4T, the competition is a global one. The updated
information by +alaysian Bualification -egister #+B-& based on the feedback
received from *3T6 as of ,
'ovember !1!, the current total of accredited *3T6
courses is 1C!.
• Rivalry among Existing Competitors
-ivalry among e0isting competitors results in lowered profits. -ivalry can be
particularly damaging to profits if competitors decide to compete on price. @ue to
a high concentration of similar HE*, and a perceived incentive to compete on
price, the revenues will be reduced which are likely to create financial
management challenges to the management.
61 6trong marketing strategies.
6!. 3rogram offered with low cost of
6%. 6trategic location and facilities
6). E0pansion in globalization
6". *ncrease in revenue
=1. High cost on marketing activities
=!. 1imited 3rogrammed offered
=%. 1imited space Sclasses
=). Higher student turnover
=". 1imited fund and financial back/up
OPPORTUNITIES S-O STRATEGIES W-O STRATEGIES
D1. *ncrease number of
D!.E0pand of +alaysia
$@3 to ".CH in %
;uarter of !11.
D%. 4ontinuous demand
3enetrate foreign market such as
+iddle East 4ountries
E0pand target market to people in
3urchase land to build new college
*mplementation of E/marketing
*ncrease number of programme offered
on further study.
financial aid for
*ncrease number of programme
3urchase land to build new college
THREATS S-T STRATEGIES W-T STRATEGIES
T1. -e;uirement in
;uality from +B2
T!. Highly competition
from other firms
T%. *ncrease in social
T). Easy access for better
T". *ncrease in cost of
3urchase land to build new college
*ncrease number of programme
*ncrease promotion activities, stress
on low cost study
3rovide training programme for
W3+T5: 3urchase land to build new
*mplementation of E/marketing
*ncrease number of programme offered
Table ".1 illustrates on companyAs strengths and weaknesses based on marketing, entrance fees,
location and revenue. >ased on interview with the H- manager, 5T4 has marketing department
that is very strong. +arketing department is a department that do marketing to attract students
enter this college. 4urrently there is ten #1& staffs in this department. +arketing is done all over
+alaysia. E0tra incentive given by management for every students entered, encouraged this
department to work hard to achieve targeted students.
Dn the aspect of entrance fee, researchers found that the the fee was reasonable and
realistic . 5T4 offered ;uite low fees for the students. 3rogramme offered by 5T4 4ollaboration
with 5iT+ for e0ample. The total fees are reasonable because college cannot markup more
because 5iT+ had regulate the e0tra fees that can be charged for its programme. 6tudy fees
charged to students are same that is being charged to students in 5iT+ itself.
1ocation of 5T4 in the resort known by most people in +alaysia which is 2 :amosa
-esort has been one the strength that poses by 5T4. 1ocation of 5T4 in resort, provides
learning process be more attractive. This college is the first college in +alacca situated in a
=hile based on the input from conversation with the companyAs 4ED, the company has
clearly defined on vision, mission and company structure. :urthermore, through conversation
with the 4ED, the revenue for 5T4 is increasing and this is being proved bythe willingness of
management in giving half monthAs bonus to every employee in the beginning of year !1!.
However, high cost of marketing, limited programme offered, limited space available for
classroom and limited financial aid is the weaknesses found in 5T4 during interview with the
4ED. +arketing department going across +alaysia to do their marketing incurred high cost.
1imited programme offered lead to high students turnover because students had no interest in the
programme offered. The only reason they enter this college is because the push from their
parents. This reason is not strong enough to make them stay in this college until they graduate.
2s a result, they ;uit half way of their studies.
1imited space in current location is one of weaknesses face by 5T4. The space available
in current location cannot bear the *ncremental in studentsA intake and programme. >esides that,
in terms of financial aid for student is very limited. :inancial aid available is 3T3T' and +2-2
:or opportunities and threats, can be seen in aspect of economic, social end technology.
*n the aspect of economy, in %
;uarter of !11 shows that +alaysia $@3 has e0panded from
).%H to ".CH from !
;uarter of the year, which shows the economic condition of the country
getting more stable. =hen the economy is growth, the potential for 5T4 to e0pand its operation
will be higher. thus provide more opportunities in employment providing with better offer.
$rowth in economy and safety condition in +alaysia will give opportunities to the company
operation in which it encourage foreign students to come to +alaysia to further studies.
+oreover, there will be continuous demand for further study as in good economic condition,
more people can afford to study further.
>esides, better economic condition may encourage others to enter this education industry
thus making competition more intense. =hile in the aspect of social, as the foreign students
coming, the social problem may be increasing because of culture shock and different social
However, technology contributes a lot of opportunities for the company to growth
supporting with sufficient telecommunication facilities for better connection and communication.
+arketing can be done easily using internet and information can be spread fast.
THE INPUT STAGE
INTERNAL FACTOR EVALUATIONS (IFE)
STRENGTHS WEIGHTED RATING WEIGHTED
1 6trong marketing strategies. .1 ) .)
2 3rogram offered with low cost of fee. .1 ) .)
3 6trategic location and facilities
provided .1 ) .)
4 6tudent enrolment is increasing .1" ) .6
5 *ncrease in revenue ." % .1"
1 High cost on marketing activities ." ! .1
2 1imited 3rogrammed offered and
skilled staffs .1" ! .%
1imited space and classes .1" ! .%
4 Higher student turnover ." ! .1
5 1imited fund and financial back/up .1 ! .!
Total weighted 6core 1. !.,"
Total weighted scores well below !." point to internally weak business. 6core
significantly above !." indicate a strong internal position. :rom the above table we can see that
the highest weighted for strength is the student enrolment because every private college will
depend heavily in student enrolment to get their income. *t shows the ma8or critical success
factor and is increasing by !6."H in !11 compare to !1 for 5T4. =hile the lowest score on
critical success factor by comparing with other competitors is increase in revenue because
different private college will have different way to increase their revenue. The rating is % because
of it is important to the organization but that that is the less factor that the student will consider
furthering their study.
EXTERNAL FACTOR EVALUATIONS
OPPORTUNITIES WEIGHTED RATING WEIGHTED
*ncrease number of foreign students .1 ! .!
2 E0pand of +alaysia $@3 to ".CH in
%rd ;uarter of !11 .1 % .%
4ontinuous demand on further study .1 ) .)
E0pansion in globalization marketing .1 % .%
5 2vailability of financial aid for
students .1" % .)"
-e;uirement in ;uality from +B2 ." % .1"
Highly competition from other firms .1 ) .)
3 *ncrease in social problem among
student ." % .1"
4 Easy access for better opportunity in
continuing study .1 ! .!
*ncrease in cost of rental .1" ! .%
Total weighted 6core 1. !.C"
Total weighted scores well below !." point to e0ternally weak business. 6core
significantly above !." indicate a strong internal position. :rom the above table we can see that
the highest weighted for strength is the availability of financial aid for students. *t shows the
ma8or critical success factor for the recent year for 5T4. This is also generated from >udget
!1% that revealed a -+!" book voucher #>aucar >uku 1+alaysia, >>1+& will be given for
each *3T2 student and will encourage student to benefit their loan due to !H discount for
'ational Higher Education :und #3T3T'& loans for those who pay off the entire amount
outstanding #valid until 6ept %, !1%&. +oreover there is 1H discount for 3T3T' loan
repayment for those who pay consistently and 1 neighborhoods internet centers. =hile the
lowest score on critical success factor by comparing with other competitors is increase in
revenue because different private college will have different way to increase their revenue. The
rating is % because of it is important to the organization but that that is the less factor that the
student will consider furthering their study
THE MATCHING STAGE
INTERNAL - EXTERNAL MATRIX
1.0 2.0 3.0
I II III
IV V VI
VII VIII IX
The *E +atri0 is based on two key dimensions< the *:E total weighted scores on the 0
a0is and the E:E total weighted scores on the y a0is. Each division of an organization should
construct an *:E +atri0 and an E:E +atri0 for its part of the organization. The total weighted
scores derived from the divisions allow construction of the corporate/level *E +atri0. Dn the 0
a0is of the *E +atri0, an *:E total weighted score of 1. to 1.,, represents a weak internal
position? a score of !. to !.,, is considered average? and a score of %. to ). is strong.
6imilarly, on the y a0is, an E:E total weighted score of 1. to 1.,, is considered low? a score of
!. to !.,, is medium? and a score of %. to ). is high.
The *: +atri0 can be divided into three ma8or regions that have different strategy
implications. :irst, the prescription for divisions that fall into cells *, **, or *( can be described as
grow and build. *ntensive #market penetration, market development, and product development&
or integrative #backward integration, forward integration, and horizontal integration& strategies
can be most appropriate for these divisions. 6econd, divisions that fall into cells ***, (, or (**
can be managed best with hold and maintain strategies? market penetration and product
development are two commonly employed strategies for these types of divisions. Third, a
common prescription for divisions that fall into cells (*, (***, or *U is harvest or divert.
6uccessful organizations are able to achieve a portfolio of businesses positioned in or around cell
* in the *E +atri0.
COMPETITORS PROFILE MATRIX (CPM)
*n order to assess the strengths and weaknesses of current and potential competitors, the 43+
tool is used. 6uperior knowledge of rivals offers a legitimate source of competitive advantage.
Two #!& competitors in the same industry situated in the state of +elaka had been selected in
doing 4ompetitorAs 3rofile +atri0 which are <
• 7D1EE 5'*(E-6*T* *612+ +E1272 #75*+&
+elaka *slamic 5niversity, better known as *slamic 5niversity 4ollege is an institution
of higher learning owned by +elaka 6tate $overnment, established under the 3rivate
Higher Educational *nstitutions 2ct 1,,6. 75*+ is situated at 7uala 6ungai >aru,
+elaka. The 6tate $overnment is committed to driving e0cellence in tandem with
+elaka +a8u !1. 75*+ been upgraded to 4ollege at 1 Euly !, by the +inistry of
Higher Education +alaysia. 75*+ formerly known as +elaka *nternational *slamic
4ollege of Technology #7T*2+& has made a paradigm shift in education to introduce
new platform, which is a combination of *slamic studies are integrated with science and
applied in con8unction with the discipline of psychology.
• 7D1EE -*6@2
4ollege -isda 6dn >hd is a corporate body under the 4ompanies 2ct 1,6" with
head;uarters at 7m ., Ealan 2mpang, ")" 7uala 1umpur. *ts main campus is -*6@2
+elaka 4ampus is registered as a 3rivate Higher Educational *nstitutions 2ct 1,,6
3rivate Higher Educational *nstitute. *t is located in the area of 1" acres of agriculture
land in 2lor $a8ah, +alacca. *t has a purpose/built campus and comprehensive on/
campus facilities such as practical ground including study on agriculture and plantation,
sports and recreational facilities, both indoor and outdoor. 7ole8 -isda specialises in
agriculture and plantation parallel to -isda core business. *t is the only private higher
educational institution that offers agricultural programmes.
2s a knowledge centre that focuses on agriculture, *4T and entrepreneurship,
7ole8 -isda is said to improve the national economy by implementing transformation in
the high/tech sector, in line with the college motto Fto sustain the greenery across
ability.G 7ole8 -isda has collaborations with 5iT+ and 53+ offering diploma
programmes such as @iploma in 2griculture #53+&, @iploma in 3lantation +anagement
#5iT+&, and @iploma in 1andscape +anagement. *n addition to that, the supporting
courses that currently available are @iploma in >usiness +anagement, 4omputer
6cience, 2ccountancy, and Entrepreneurships. :urthermore, 7ole8 -isda also offers
4ertificate in 2griculture, >usiness +anagement, 4omputer 6cience and 3re/@iploma in
6cience. +alaysian 6kill 4ertificate 1evel Dne#1& and Two#!&.
Factor UTC KUIM Risda
=eight -ating 6core -ating 6core
reputation of the
institutions .) ! .C ) 1.6 ) 1.6
:uture 8ob prospect
for graduates .!" % .." % .." % .."
facilities .! ) .C % .6 ) .C
Ease of application
procedures and nature
of the institutions .1 % .% ) .) % .%
1ower costsSfees ." ) .! % .1" % .1"
Total 1 !.C" %." %.6
)R ma8or strength, %R minor strength, !R minor weakness and 1R ma8or weakness
2s per our findings, -isda total score is more than 75*+ and 5T4.
-isda 4ollege has ma8or strengths in recognition and reputation of the institutions and
campus environment, atmosphere and facilities.3eople recognize this college because it has been
established more than ten years ago.*t is situated in the village of 2lor $a8ah surrounded by the
rubber trees. >esides calm place to study, and additional facilities is like hostel, library, and
cafeteria were provided. However, one of the the hostel situated far from the college which is in
town of +as8id Tanah, about ten kilometers from the college.
75*+ has competitive advantage because of its e0perienced faculty. 75*+ has ma8or
strength in the recognition and reputation of the institutions and ease of application procedures
and nature of the institutions. *t gain ma8or strengths and recognition as it is wholly owned by the
state government of +elaka. 92> @ato 6eri 2li -ustam is its 4hancellor. *t has been upgaraded
to 5niversity 4ollege status since Euly !,.
5T4 itself has strength on its 4ampus environment and lower costsSfees. 1ocation of the
campus which is in the resort with beautiful scenery and calm environment is a suitable place for
study. 5T4 offers low fees compared to other private college make lower income parents has
the same opportunities to sent their children to further study.
THE DECISION STAGE
Key Factors Weight Purchase land to
build new college
Increase number of
26 T26 26 T26 26 T26
D1.*ncrease number of foreign students .1 ) .) % .% ! .!
D!.E0pand of +alaysia $@3 to ".CH in
;uarter of !11.
D%.4ontinuous demand on further
.1 ) .) ) .) ! .!
D).E0pansion in globalization
.1 ! .! % .% % .%
D".2vailability of financial aid for
T1. -e;uirement in ;uality from +B2 ."
T!. Highly competition from other
.1 % .% ) .) % .%
T%. *ncrease in social problem among
T). Easy access for better opportunity
in continuing study
.1 ! .! ) .) % .%
T". *ncrease in cost of rental. .1" ) .6 1 .1" 1 .1"
61 6trong marketing strategies. .1 ! .! % .% ) .)
6!. 3rogram offered with low cost of
.1 % .% ! .! 1 .1
6%. 6trategic location and facilities
.1 % .% ! .! ! .!
6). E0pansion in globalization
6". *ncrease in revenue ." ) .! % .1" ! .1
=1. High cost on marketing activities ." % .1" 1 ." ) .!
=!. 1imited 3rogrammed offered .1"
=%. 1imited space Sclasses .1" ) .6
=). Higher student turnover ."
=". 1imited fund and financial back/up .1
3.85 2.85 2.45
The Buantitative 6trategic 3lanning +atri0 is a strategic tool which is used to evaluate
alternative set of strategies. The B63+ incorporate earlier stage details in an organize way to
calculate the score of multiple strategies in order to find the best match strategy for the
organization. The 6um Total 2ttractiveness 6cores reveal which strategy is most attractive in
each set of alternatives. Higher scores indicate more attractive strategies, considering all the
relevant e0ternal and internal factors that could affect the strategic decisions. The magnitude of
the difference between the 6um Total 2ttractiveness 6cores in a given set of strategic
alternatives indicates the relative desirability of one strategy over another. :rom the score above
we can see that the alternative 1 3urchase land to build new college is to be choose because the
highest score show the best alternative.
CONCLUSION AND RECOMMENDATION
5.0 Conclusion of the Study
5nifield Technology 4ollege is a company which its principal activities education
provider. This company a moderate performance and work hard in gaining sustainability
in the education industry. However, the problems is company has lack of strategy in order
to increase performance to be competitive and also to sustain in this industry.
5.1. TOWS`s Strategy
:rom the information in the TD=6, the company could try to ma0imize its
strengths to the fullest, manipulate the opportunities available, at the same time try to
ma0imize the impact of weaknesses and protect the company against the e0ternal threats.
Therefore, there are several strategies that can be implemented by the company with the
aim to improve performance, so that would increase sustainability in education industry
of 3rivate Higher Education. *n order to minimize the impact of the companyAs
weaknesses, 5T4 could align a few strategies that could make full use of the
6trong marketing strategies are part of strengths in 5T4. E0pansion in marketing
globalization is one of the opportunities for 5T4. Thus, from S1 + S4 + O1 matri0, the
company was suggested to penetrate the foreign market in +iddle east counties. -eason
for choosing +iddle East is because of culture that is not much different from +alaysia
and also in religious aspect, there are also +uslims. The probability of social problem
occurred may be reduced or controlled.
:rom S2 + O3 matri0, W2+O3 matri0, W2+T4 matri0 and S1+T4 matri0, other
strategy that can be suggested is increase number of program offered. 5T4 should
increase program offered to take the advantage of strong marketing strategies it had and
opportunities of continuous demand for people to further study. (ariety and reliable
program offered may attract more students. 5T4 currently focuses more on program in
business and hotel management. 5T4 can make a diversification by offering program
ma8oring technology like information technology system or management. 'owadays,
information technologies develop so fast and the demand for people who is ;ualified to
work in the sector is high. >esides offering more programme, 5T4 must make sure
program offered is competitive and reliable in market. *n developing program, 5T4
should appoint academician and someone from the industry as panel to assist in
developing program structure or syllabus. This is to overcome the weakness in lack of
skill staff or e0perienced staff in 5T4. 5T4 may appoint the relevant person using part
time basis only to be cost effective.
Dther than that, other strategy suggested is to purchase land to build college. *t is
suggested that the company purchase land to build new building as the company have
sufficient financial need to set up new building. 1ocation suggested is a piece of land in
2 :amosa -esort. The location is being chosen so as company have competitive
advantage in the aspect of strategic location and calm place for studying and being
renowned. :urthermore, strategic location will provide pleasant working environment
which plays a predominant role in performance and commitment outcomes for the
employee #'owier +ohammed 2l/2nzi, !,&. The current buildings were rented from
2 :amosa -esort and current problem 5T4 having now is insufficient of classrooms and
labs. 5T4 has to prepare more classroom and labs as a result from probability of increase
in number of students in the future. Dther than that, rental cost incurred by 5T4 is ;uite
high and there is probable that 2 :amosa will increase the rental in the future. Thus, this
strategy is developed to overcome threats of increase of rental cost by the management of
2 :amosa -esort. Having a new self/owned building is the strategy to satisfy the
S5+O1+O3 matri0, W3+O3 matri0 and W3 + T5 matri0.
5.2 Research Implication
*n e0ecuting the recommendations, 5T4 will be financially implicated. This is due to that
every program suggested re;uires a huge amount of money to be invested. The return on
investment is unpredicted. 2lthough the suggestion is produced after evaluating 5T4
condition, the positive effects could not be gathered in short period of time. The
implementation of certain strategy will also give impact towards the staff in terms of
more workload especially in the academic department in the process of developing new
program. This situation can cause dissatisfaction to some employee and management
plays important role to increase motivation by giving some reward and recognition to
their work. 4ooperation among the management and staffs, everyone realize their duties
anhd responsibilities towards achieving ob8ectives of the company will lead to increase
performance of 5T4 and gain sustainability in the education industry.
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