SECTION A (15 Marks)

There are FIFTEEN (15) questions in this section. Answer ALL questions in the answer
grid provided in page 7.

Question 1 to 5 are related to the information on Genting Malaysia in Figure 1 below:

Figure 1
Genting Malaysia began its operation in May 1980 as Resorts World Sdn. Bhd., a private company limited by
shares. Nine years later it became a public listed company and renamed Resorts World Berhad but the name
was later changed to Genting Malaysia Berhad (or better known as Genting Malaysia). The company’s current
vision and mission are as listed below:

Vision:
To be the leading integrated resort operator in the world.

Mission:
 We are committed towards providing the most delightful and memorable experiences to our
customers.
 We aim to generate sustainable growth and profits and to consistently enhance our stakeholders’
value.

In 1989 Genting Malaysia took over all gaming, hotel and resort-related operations, inclusive of goodwill and
other relevant assets of Genting Berhad making it the sole owner and operator of the facilities in Genting
Highlands, which according to Genting Malaysia’s website attracts approximately 20 million visitors annually.
Among the appeals of Genting Highlands is Resorts World Genting which is equipped with 6 hotels, theme
parks and entertainment attractions, dining and retail outlets, international shows and business convention
facilities.

The hotels at Resorts World Genting are Genting Grand, Maxims, Resort Hotel, Hotel on the Park, Awana
Hotel and First World Hotel which is recognized as the world’s largest hotel by Guinness World Records.
Genting Malaysia has also embarked on a 10-year master plan to transform Resorts World Genting. The plan
includes the development of the world’s first Twentieth Century Fox World theme park. Other than the facilities
in Genting Highlands, Genting Malaysia also owns two seaside properties, namely Resorts World Kijal in
Terengganu and Resorts World Langkawi in Langkawi. Collectively, the company offers more than 10,000
rooms.

Source:

1. Which of the following is among the elements that are included in Genting Malaysia’s
mission statement above?

A. Market
B. Product
C. Technology
D. Employees

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2. The ten year master plan is an example of a:

A. vision.
B. strategy.
C. objective.
D. strategic plan.

3. Which strategy is Genting Malaysia using when it collaborates with 20 th Century Fox to
develop the theme park?

A. Horizontal integration
B. Product development
C. Related diversification
D. Differentiation

4. Which of the following strategies fits Genting Malaysia’s vision to become an “integrated
resorts operator”?

A. Related diversification
B. Market development
C. Market penetration
D. Focus

5. The company has a membership program for the clients of its Malaysian facilities called
Genting Rewards Card Loyalty Programme. Such program is most suitable to support:

A. the vision to become an integrated resort operator.

B. the objective of increasing shareholders’ value.
C. the mission to provide memorable experience.
D. the mission to generate sustainable profits.

Question 6 to 11 are related to the information on Sate Samsuri in Table 1 below:

Table 1
Industry growth rate 4%
Number of branches 3
Total IFE score 2.59
Total EFE score 3.02
Total CPM score 2.89
Total CPM score of Sate Wheelie 3.32
Total CPM score of Sate Suri 2.72

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 6. Which of the following is TRUE about Sate Samsuri?

A. It is more competitive than Sate Suri

B. One of the branches should be closed
C. It has the option of staying in business or exiting the industry
D. SWOT is the best tool to find a potential strategy for the business

7. Where is the business located in an IE matrix?

A. Star quadrant
B. Aggressive cell
C. Grow and build region
D. Hold and maintain quadrant

8. Which of the following strategies will NOT be in Sate Samsuri’s QSPM?

A. Merger with Sate Suri

B. Open a steak restaurant
C. Joint venture with its meat supplier
D. Introduce Kobe beef sate for the high income customers

9. Which of the following is NOT a possible objective for Sate Samsuri given its position in
the IE matrix?

A. To increase revenue by 10% in the first half of year 2018

B. To reduce loss by 5% within the next eight months
C. To be the most popular sate brand in Kajang
D. To introduce a minimum of one new menu

10. Which of the following can possibly be in Sate Samsuri’s EFE?

A. Number of employees
B. Market price of chicken
C. Recipe is known only by the founder
D. The restaurants are near to MRT stations

11. Suppose the business founder wants to increase employee retention rate by 3% next
year. Which of following should be done?

A. Provide training for new staff

B. Hire staff only on permanent basis
C. Pay loyalty bonus to employees who serve for more than 24 months
D. Give 20% discount for employees who want to purchase any of the business’ products

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12. Kelana Jaya Medical Centre (KJMC) is a small medical centre located in Kelana Jaya.
Which of the following is NOT TRUE of KJMC?

A. Renting its rooms to local drama producers supports its market penetration strategy
B. Ministry of Tourism’s promotion of health tourism is its opportunity
C. Number of specialists in Subang Jaya Medical Centre is its threat
D. Size of Kelana Jaya population is its strength

13. Which of the following will NOT likely to be the objective of Airbus Group in year 2018 if its
vision is ‘to create a better connected, safer and more prosperous world’?

A. To reduce airfare by 5% so that everyone can fly

B. To have zero accident throughout the group’s workplace
C. To launch a minimum of one new product that is fuel-saving
D. To collaborate with a minimum of two major clients for safer waste management

14. Kedai Group has three businesses in three different industries. The subsidiaries are
Kedai, a dealer of antic products, Kedai Sebelah, a restaurant and Bengkel, a workshop
offering car repair service. Which of the following matrices is most suitable to be used by
Kedai Group to generate strategies for its three businesses?

A. IFE
B. BCG
C. SWOT
D. QSPM

15. Which of the following is possibly going to be in Bengkel’s timeline for year 2018 if the
result of its QSPM is as shown in Table 2 below:

Table 2
Cost leadership 4.75
Differentiation 4.55
Market penetration 3.89
Market development 4.88
Product development 3.64

A. Rental price negotiation

B. Place massage chairs in the lounge for customers’ comfort
C. Look for new suppliers who can offer more competitive price
D. Provide food coupon for customers if the waiting time exceeds three hours

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MATRIC NO.: REGIONAL CENTRE /SECTION:

Answer to Section A: Circle the best answer

1. A B C D

2. A B C D

3. A B C D

4. A B C D

5. A B C D

6. A B C D

7. A B C D

8. A B C D

9. A B C D

10. A B C D

11. A B C D

12. A B C D

13. A B C D

14. A B C D

15. A B C D

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SECTION B (35
Marks)

There are FOUR (4) questions in this section. All questions are related to the mini case
on Nurturing Little Caliphs below. Answer all questions in the spaces provided after each
question.

Nurturing Little Caliphs

The value of education and knowledge is recognized across cultures. Prophet Muhammad once
said:
“seek knowledge from the cradle to the grave”

The above tradition of the prophet signifies the importance of knowledge and life-long
education. In the business world, knowledge is considered as a competitive weapon. The Malay
proverb of ‘melentur buluh biarlah dari rebungnya’ however insists that education should start
from an early age in order for knowledge gained to be truly internalized. The belief of how
invaluable knowledge is in determining one’s success and that education must begin early is
perhaps shared by most modern parents in Malaysia. If the number of kindergartens and early
childhood education centres is a valid indicator of the parents’ interest in their young children’s
education, it is safe to assume that interest is growing.

Little Caliphs International Sdn. Bhd. (LCI) is one of the many firms which have been set up in
Malaysia to take advantage of the developing market of pre-school education. There are
currently 287 independent centre of Little Caliphs in Malaysia with the most being located in
Selangor (113 branches). There are also centres In East Malaysia (9 in Sabah and 4 in
Sarawak). LCI was founded by a husband and wife team of Hajah Sabariah Faridah and Haji
Roslan Nordin. Hajah Sabariah is a chemist by training but she has vast experience in Islamic
English pre-school education starting from her student days in Ottawa, Canada. Her knowledge
in teaching and experience in helping entrepreneurs to set up their own kindergarten inspired
her to develop The Little Caliphs Program (TLCP).

LCI’s business is actually founded on TLCP. The business licensed out the program to
entrepreneurs who want to open their own Islamic kindergarten which uses English as its
medium of instruction but do not have their own syllabus and/or teaching methodology as well
as knowledge to run a kindergarten business. LCI’s policy stated that to be eligible to operate an
independent Little Caliph centre (and to use TLCP), the interested entrepreneur must attend a
three hour Little Caliphs seminar, go through an interview with LCI’s business consultant, apply
for location approval from relevant authorities (i.e. the municipal council, the state’s education
department and Fire & Rescue department), get an interim location approval from LCI and lastly
to sign up as a licensee of TLCP.

To ensure its brand is well protected, LCI is strict in its selection of the independent centre
operators. The operators must be a practicing Muslim/Muslimah and have a good
understanding of Islam, have a university degree, like to teach and like children and can comply
with LCI’s licensing terms and conditions. The operators must also have the intention to
preserve a long term relationship with LCI instead of using TLCP as a stepping stone to open
their own kindergarten (using their own brand). Table 3 below features an incomplete CPM for
LCI:

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 Table 3
CSFs W LCI Genius Aulad Brainy Bunch
R WS R WS R WS
Brand recognition 0.21 3 4 2
Number of branches 0.19 3 3 2
Student’s registration fees 0.11 4 3 3
Monthly tuition fee 0.13 3 3 4
Terms & conditions for centre 3 4 3
operators
Effectiveness of learning 0.15 3 4 4
material
Support provided for centre 0.03 2 4 4
operators
International expansion 0.06

Malaysian government has invested in early childhood education since early 1970s when the
Ministry of Rural and Regional Development opened kindergartens (known as Tadika KEMAS).
These kindergartens are usually located in the rural and semi-rural areas. Ministry of Education
(MOE) later launched its own pre-school in year 2003. Unlike Tadika Kemas and private
kindergartens like Little Caliphs, MOE’s pre-schools are located in public primary schools and
the teachers are trained and monitored by the ministry just like any teacher in the public primary
and secondary schools. Since MOE’s preschools share the same compound with public primary
schools, they are administered by the primary schools’ headmasters.

In 2013 there were 8307 Tadika KEMAS and 5905 pre-school classes operated by the MOE
throughout Malaysia. Both government funded kindergartens charge either zero or very minimal
fees. Despite the little fees, some parents prefer to send their children to the private early
childhood education centres which better meet their objectives. Preference aside, a report by
the Ministry of Education in 2015 showed that 83 percent of children aged 5 and 6 years old
enrolled in private or public preschool. The high enrolment is perhaps a new beginning to
Malaysia’s education quality which to date still lags behind the regional standard particularly for
mathematics and science. To ensure a continuous improvement in the quality of education
provided by all early childhood education institutions (regardless of whether they are private or
publicly owned), the government through the MOE, the Ministry of Rural and Regional
Development and the Malaysian Qualifications Agency (MQA) have set up policies and
framework to govern the industry.

Although the industry seems to be positively growing, how much of the pie will be LCI’s is
unknown. Education helps in nurturing future leaders and makes people more civilized but in the
education market, the rule of the jungle prevails – only the fittest shall survive.

Sources:
Biz Opportunity retrieved from http://www.littlecaliphs.com.my/index.php/biz-opportunity on December 8,
2017
Mustafa L.M. & Azman M.N.A (2013) Pre-school education in Malaysian: Emerging trends and
implications
for the future, American Journal of Economics, 3(6), 347-351 retrieved from
https://www.researchgate.net/publication/267538645_Preschool_Education_in_Malaysia_Emerging_Tren
ds_and_Implications_for_the_Future

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Samuel M., Tee M.Y. & Symaco L.P. (2017) Educational in Malaysia: Developments and Challenges,
Singapore, Spinger
https://www.geniusaulad.com.my/business-opportunities.html retrieved on December 8, 2017
Question 1

Construct IFE and EFE matrices for LCI. The combined number of factors should be AT LEAST
THIRTEEN (13). (16 marks)

Key External Factors Weight Rating Weight Score

1. Brand recognition. 0.21 3 0.63
2. Number of Branches. 0.19 3 0.57
3. Student’s Registration Fees. 0.11 4 0.44
4. Monthly Tuition Fees. 0.13 3 0.39
5. Term and Condition for 0.08 3 0.44
Centre Operator.
6. Effectiveness of Learning 0.15 3 0.45
Material.
7. Support Provided for Centre 0.03 2 0.45
Operator.
8. International Expansion. 0.06 1 0.06
9. Level of Competitiveness. 0.2 2 0.4
10. Parent Concern on Early 0.8 3
Education. 0.44
11. Attitude Toward Quality. 0. 3
12. Governmental Regulation. 0.05 1 0.05
13. Potential Entry of New 0.07 2 0.14
Competitors.

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Question 2

Construct an appropriate strategy formulation matrix and describe THREE (3) potential
strategies for LCI. (8
marks)

Strengths – S Weaknesses – W
List Strengths List Weaknesses
-brand recognition. -term and condition for
-number of branches. centre operator
-monthly tuition fees. -student registration fees.

Opportunities – O SO Strategies WO Strategies

List Opportunities
-international expansion. Use strengths to take Overcoming weaknesses
-parent concern on early advantage of by taking advantage of
education. opportunities opportunities

Threats – T ST Strategies WT Strategies

List Threats
-level of competitiveness. Use strengths to avoid Minimize weaknesses
-potential entry of new threats and avoid threats
competitors.

The appropriate strategy formulation used is the SWOT Matrix analysis. There are
several potential strategies available for Little Caliphs International Sdn. Bhd.(LCI).
One
of the strategies are the brand recognition. With the name LCI known widely, it has
the opportunities to widely spread it branches. Maybe it can also open it branches
outside from Malaysia. Second potential strategy available for LCI is the low monthly
tuition fees, so that it gain less competition or threat from others. Last potential
strategy
available for LCI is by lowering it registration fees, so that it could attract parents who
are concerns about their children early education. In conclusion, if LCI implement all
these strategy it could maintain or develop their business more widely and maybe
it can open many branches outside from Malaysia.

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Question 3

Genius Aulad and Brainy Bunch have branches outside of Malaysia. LCI on the other hand is
still in the process of entering Indonesian market. Briefly explain whether ‘going international’ is
an appropriate strategy for LCI. Support your answer with a QSPM. (6
marks)

With using Quantitative Strategic Planning Matrix (QSPM) which is a technique

designed to determine the relative attractiveness feasible alternative actions. Yes
‘going
international’ is an appropriate strategy for Little Caliphs Sdn. Bhd.(LCI). This is
because
of the brand recognition. The name LCI is known widely in Malaysia, so it could try to
open new market outside from Malaysia. Besides that in order to avoid new entry
competitor in the arena, it should expand their business internationally so it can
strengthen the LCI brand all over Malaysia and abroad. Lastly LCI can achieve its
appropriate strategy if it control the registration and tuition fees. This could be a huge
factor for parents to sent their children to LCI. The fees should be affordable so that
parents with low income could also sent their children to LCI. Finally, ‘going
international’ is an appropriate strategy for LCI because LCI is a good learning centre
for children for early education.

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*** END OF QUESTION PAPER ***

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