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Question 1

Name the strategy used for the following: (5 marks)

NO. STRATEGY

a. GCH Retail (M) Sdn. Bhd ceased the operation of Giant Defensive strategy
Manjung on November 6, 2017

b. Space Exploration Technologies Inc. (SpaceX) offers private Diversification


flights to space stations strategy

c. Grab took over Kudo, an Indonesian start-up company which Integration strategy
offers online to offline payment (O2O) ecommerce platform

d. Microsoft collaborates with Baidu (a China-based company Porter Five generic


which operates a search engine) to develop self-driving cars Studies (Join
Venture)

e. Adabi Food Industries manufactures and supplies Powercat Intensive strategies


beginning year 2015

Question 2
Describe any ONE (1) strategy that has been used or currently being used by the following
businesses. You are not allowed to describe the same strategy for the companies although they
are using the same strategies. (6 marks)

a) Bombardier

Bombardier use integration strategies for their company. Three interrelated growth strategies
which is Invest in Leading Mobility Solutions, Grow Local Roots in Key Markets and Achieve
Flawless Execution Every Step of the Way that help bombardier innovate, partner and
operate as a responsible and industry-leading company.  

b) Marry Brown Sdn. Bhd.

Marry brown Sdn.Bhd use intensive strategy for their company. Marry brown in product mix pricing strategies is
product-line pricing. A product line pricing strategy is a strategy in which the company sets the price steps
between various products in a product line based on cost differences between t h e p r o d u c t s , c u s t o m e r
evaluation of different features and competitors’ price.

c) Zhejiang Geely Holding Group.


Zhejiang Geely Holding Group use diversification strategy for their company. Geely Auto’s
strong growth came on the strength of the brand’s third generation models, all of which have
become benchmark products in their respective segments. The brand’s valuation rose by
62% to US$6.0 billion, with a record annual sales increase of 63% to 1.247 million units in
2017. 

Question 3
Below are the initial findings from an internal and external analysis of Air Asia. Suggest TWO (2)
ST, TWO (2) WO and ONE (1) WT strategies that can be applied by the company. (5
marks)

Strengths: Weaknesses:
1. Has a fleet of more than 150 A320 1. Does not have any maintenance,
aircraft. A320 aircraft can fly 180 repair and overhaul (MRO) facility.
guests at a time and used for below 2. Frequent flight delays.
four hours journey. 3. Lack of transparency in charges for
2. Strong media presence. customers.
3. Has the youngest fleet of aircraft in
Asia with average aircraft age being
3.5 years old.
4. Financially stable.

Opportunities: Threats:
1. ASEAN open skies agreement which 1. Fluctuating oil price.
allows ASEAN based airlines to fly 2. High airport charges.
freely within the region came into 3. High and increasing number of
effect on January 1, 2015. competitors.
2. Going for holidays overseas is part of
the lifestyle of the middle and high
income population in Asia.
3. Asians (Malaysians especially) are
active social media users.

ST: Air Asia can use all media social as their strong media presence to compete with
competitors. Air Asia can use Twitter and Facebook as their marketing tools. Nowadays,
people from all ages have their own media social account. Facebook itself is business friendly
to all business owners. And more people like to buy anything from online store which is they
can just search page that they one.
Air Asia also can make more trip using A320 aircraft that they already had. With 180
passengers for each trip they can cover all the cost including cost on oil price. They can make
more trip to neighbor county that we all know the trip did not take longer time to fly there.
WO: Frequent flight delays that most of us know make Air Asia more popular nowadays.
Each time people get angry when flight delay, most of us will update status or story on their
media social. So, their friend and follower will read and know about AirAsia. So, that they
don’t have to make more advertisement to make people know about them. Moreover,
Malaysians are active with media social.

With their weakness that does not have any maintenance, repair and overhaul (MRO) facility
they can fly to other country with skies agreement which allows ASEAN based airlines to fly
freely within the region came into effect on January 1, 2015. It gives more impact to AirAsia
itself because they can make more profit and use that profit to buy all the facilities that they
don’t have.

WT: Air Asia must reduce flight delay in future to avoid competitors take advantages to
promote their trips. Competitors can use any of Air Asia mistake or weakness to take down
Air Asia and become number one company in Malaysia.

Question 4
Construct a BCG matrix for Tabung Haji based on the information in Table 1 below and identify
(ONE) strategy to be used by of the subsidiary. (5
marks)
Table 1
Industry Growth Rate (%) Relative Market Share (%)
TH Plantation -2 51
TH Hotel 7 5
TH Haj (Pilgrimage) 45 95
TH Tours -8 2

QUESTION NO 4 ANSWER :

Hig Low
h -10
100
Rela
tive TH HAJ TH HOTEL
ket (PILGRAMAGE)
Sha
re
TH
Posi
TH TOURS
tion
(RM
PLANTATION
SP)

Question 4
a) Construct IFE and EFE matrices for the restaurant. Utilize all the information given in Table
2 and 3 and be mindful that some of the factors are wrongly classified hence they
require correction. (12
marks)

INTERNAL FACTOR EVALUATION (IFE)

BIL FACTORS WEIGHT R WEIGHTAGE SCORE


   
Managers and supervisors are trustworthy family
1. 0.18 3 0.54
members
2. Length of operating hours 0.12 2 0.24
3. Recipe for signature dish is known by 3 people only 0.16 3 0.48
4. Availability of technology to track order and payment 0.06 2 0.12
5. Centralized kitchen concept 0.07 2 0.3
6. Customers are active users of social media 0.05 3 0.15
  WEAKNESS
1. Supplier of imported meat is a family member 0.1 3 0.3
2. Number of workers 0.11 2 0.22
3. Training of frontline workers 0.1 3 0.24
∑ = 2.59 (minor
weakness)
EXTERNAL FACTOR EVALUATION (EFE)

BI WEIGHTAGE
L FACTORS WEIGHT R SCORE
OPPURTUNITIES
1. Kitchen Concept 0.05 2 0.1
2. Number of staff & student 0.05 3 0.15
3. Customer Social Media 0.1 3 0.3
4. Supplier 0.1 3 0.3
THREATS
1. Fuel price fluctuation 0.2 1 0.14
Attractive salary and benefit package for employees that serve
0.1 2 0.45
2. for more than 3 years
3. Minimum wage law 0.05 2 0.18
Number of direct competitors within 2 km radius 0.15 1
4. 0.13
5. Increment in price of supplies 0.15 2 0.3
New offices and housing areas under construction in the nearby
0.05 3 0.12
6. area
∑ = 1.32 (poor
threats)

b) Construct an IE matrix and describe THREE (3) potential strategies for the restaurant.
Medium
(8 marks)
50

Medium Low
0
Indus
I try

High
II III
50

IV

The IFE Total Weightage Score V VI

VII

Average VII IX
2.0 – 2.99

 Thus from the IE Matrices the positon is at VII quadrant.( Market Penetration and/or
Product Development)
Strategizing for Haneef

Your uncle owns a chain of six mamak restaurants called Haneef Bistro. One of the restaurants
is located next to your study centre and is frequented by students and staff of your university.
Since the locations of the six outlets are within the radius of 40 kilometers. Haneef Bistro uses a
centralized kitchen concept for the restaurants’ signature dish like fish head curry and biryani.
Following the centralized kitchen concept, the dishes will be cooked at Haneef Bistro’s main
outlet in Kelana Jaya and sent to the other five restaurants three times daily. Apart from the
signature dishes, all six restaurants of Haneef Bistro also serve western cuisine and varieties of
naan and other cuisines typical of a mamak restaurant. At the moment Haneef Bistro employs
63 workers. 90 percent of them are imported from India and the remaining are either your family
members who hold managerial posts or workers from Indonesia.

Unlike the five other restaurants which are consistently profitable, the outlet that is situated next
to your campus has been recording an inconsistent revenue. Upon knowing that you are taking
Strategic Management your uncle approached you while you were having your lunch at the
outlet near the campus and said:

“I did strategic management when I was doing my BBA years ago but when your nana
passed away I had to stop studying and took over the business. I didn’t even get to
complete that strategic management course but I still remember bits and pieces of it. I
tried doing the table for internal and external analysis for this outlet and I’m seriously
thinking of closing down this restaurant. You know how bad it gets when UNITAR
students are not around. Why don’t you look at my analysis and see if I should really
close down this outlet”

Two days later your uncle showed you his incomplete internal and external analysis summary
and proposed:

“If you complete this job for me I’ll pay for the Japan trip that you have been planning for
months. Your dad sends you to study so that you can help with the business. This is
your chance to help”

The summary of your uncle’s analysis are as shown in Table 2 and 3 below:

Table 2: Internal Environment


No. Factors W R
1. Managers and supervisors are trustworthy family members 0.18 3
2. Centralized kitchen concept 0.15 2
3. Length of operating hours 0.12 2
4. Customers are active users of social media 0.05 3
5. Recipe for signature dish is known by 3 people only 0.16 3
6. Availability of technology to track order and payment 0.06 2
7. Supplier of imported meat is a family member 0.09 3
8. Number of workers 0.11 2
9. Training of frontline workers 1
Table 3: External Environment
No Factors W R
.
1. Income is dependent on UNITAR’s semester calendar and class schedule 0.20 1
2. Fuel price fluctuation 0.14 1
3. Increment in price of supplies 0.15 2
4. Minimum wage law 0.09 2
5. Visa application procedure 1
6. Number of UNITAR students and staff 0.18 3
7. Number of direct competitors within 2 km radius 0.13 1
8. New offices and housing areas under construction in the nearby area 3
9. Attractive salary and benefit package for employees that serve for more than 3 years 3

INTERNAL FACTOR EVALUATION (IFE)

BI WEIGH WEIGHTAGE
FACTORS R
L T SCORE
  STRENGHT
1. Managers and supervisors are trustworthy family members 0.18 3 0.54
2. Length of operating hours 0.12 2 0.24
3. Recipe for signature dish is known by 3 people only 0.16 3 0.48
4. Availability of technology to track order and payment 0.06 2 0.12
5. Centralized kitchen concept 0.15 2 0.3
6. Customers are active users of social media 0.05 3 0.15
  WEAKNESS
1. Supplier of imported meat is a family member 0.09 3 0.27
2. Number of workers 0.11 2 0.22
3. Training of frontline workers 0.08 3 0.24
∑ = 2.56

EXTERNAL FACTOR EVALUATION (EFE)

BI WEIGHTAGE
L FACTORS WEIGHT R SCORE
OPPURTUNITIES
Income is dependent on UNITAR’s semester calendar
1. and class schedule 0.2 1 0.2
2. Number of staff & student 0.18 3 0.54
3. Supplier 0.15 2 0.3
THREATS
1. Fuel price fluctuation 0.14 1 0.14
Attractive salary and benefit package for employees that serve
0.04 3 0.12
2. for more than 3 years
3. Minimum wage law 0.09 2 0.18
Number of direct competitors within 2 km radius 0.13 1
4. 0.16
5. Visa application procedure 0.04 1 0.04
New offices and housing areas under construction in the nearby
0.03 3 0.09
6. area
∑ = 1.77

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