GROUP MEMBER:

NIK FARHAN ADLI BIN NIK HANAFI - presenter

MOHD TAJUDDIN BIN ABDULLAH
MUHAMMAD NASRULHAQ BIN MAT ZAID
Strengths S Strategic S
Weaknesses W Position P
Opportunities O Action Ac
Threats T Evaluation E
 1st stage of planning &
Internal factors:
helps decision makers to
 Strengths
focus on key issues  Weaknesses

SWOT method is a
key tool for External factors::
company top  Opportunities
officials to  Threats
formulate strategic
plans
 Strength – S Weaknesses – W
DRB – 1. Produce our own expertise 1. Lower vehicle sales
2. Company specific training 2. Access to resources
HICOM 3. Operational efficiency 3. No engine’s part expertise
4. Location of business
BERHAD 5. Corporate culture, company
image

Opportunities – O SO strategies WO strategies

1. Merger, joint venture, or 1. We want to be the company that 1. The company will have a perfect
strategic alliance has every passion & perfect combination in every aspect from
operation not in Malaysia but top management to workers & our
2. Market trends
international.(S5, O1) resources will always have backup
3. Social changes (for example 2. To fulfill needs & wants our if in need. (W2, O1)
demographics) customers, we produce our own
expertise perpendicular to latest
market trends. (S2, O2)

Threats – T ST strategies WT strategies

1. Rising raw material costs 1. Producing the best auto parts for 1. The company need to always up-to-
2. Price wars any brand car. (S3, T1) date to the economic condition
2. Have an healthy competition especially in automotive industry &
3. New competition in the
between the other company in the produce the car that can be useful to
market, possibly with new same field to serve the best to every their customers. (W1, T4)
products or services customer. (S4, T3)
4. Economic conditions
 aggressive
four-quadrant
framework
conservative

defensive

competitive

Internal strategic dimensions: External strategic dimensions:

 Financial strength (FS)  Environmental stability (ES)
 Competitive advantage (CA)  Industry strength (IS)
DRB – HICOM Internal Strategic External Strategic
BERHAD Position Position

Competitive (CA) Industry (IS)

(-7 worst, -1 best) (+7 worst, +1 best)

-1 Product quality +6 Barriers to entry

-1 Market share +4 Growth potential
Axis X -3 Brand & Image +4 Access to financing
-2 Product life cycle +5 Profit potential
Average -1.75 Average +4.75
Total axis X score: 3.00
Financial (FS) Environmental (ES)
(+1 worst, +7 best) (-7 worst, -1 best)

+5 ROA -2 Inflation
+6 EAT -1 Technology
Axis Y +4 Liquidity
+5 Cash flow
-2 Competitive pressure
-4 Taxation
Average +5.00 Average -2.25
Total axis Y score: 2.75
 FP
+7

CONSERVATIVE AGGRESSIVE

+1

CP IP

-7 -1 +1 +7

-1

DEFENSIVE COMPETITIVE

-7

SP
THANK YOU

Q&A