STRATEGIC PLAN

Your team has to take on this responsibility under the scrutiny of the board of directors and
its chairman. Beside the sharing of managerial responsibilities among your team, you are
expected to prepare a short business plan in order to provide some evidence of your
capability to analyze the key issues of the NEGOSIM business simulation and to formulate a
strategic vision for your company. The suggested outline below allows you to follow some
guidelines but you remain free to propose a more personal adaptation for your business
plan. No required format (.PPT presentation including between 5 and 10 slides, .DOCX
document...).

Firm: 6

1. BRIEF ANALYSIS OF THE COMPANY’S CONTEXT:

(Main threats, market opportunities, available resources)
Our company produces an electronic device used as a component in many other industries
around the world. The companies operate in Germany, Japan, Malaysia, Portugal and the
United States.
Each country has unique characteristics in terms of development levels, market size, labour
costs and customer sensitivity to product quality. Customers are very sensitive to the
average product defect rate as it influences their own rejection rate. There is also an
opportunity to develop a new operating project. And thus to be considered as a "strategic
niche". We have the possibility of using two types of plant depending on our needs and the
quality we want to achieve.

THE COMPANY:
What are its strong points and its weak points, in particular in the fields Commercial,
Technical, Financial…
Within our country, Malaysia, our customers are very sensitive to price changes. However,
they are not very sensitive to quality. It also remains moderately sensitive to commercial
efforts.

Fields Strong points Weak Points

Technical ● High R&D ● Erosion of price

Investment supported by competitiveness due
the expansion of the local to rising labor costs
financial market and access
 to FDI
● The Malaysian
Investment
Development
Authority (MIDA)
and the US-based
Semiconductor
Equipment and
Materials
International (SEMI)
said the growth
would be mainly
supported by the
trend of IoT (internet
of things) which has
multiple
applications, and
increased usage.
wearable gadgets,
automotive industry
and artificial
intelligence (AI)
technologies.
● Malaysia is one of
the world's largest
exporters of
semiconductor
devices, electrical
goods and
appliances, and the
government has
ambitious plans to
make Malaysia the
leading producer
and developer of
high-tech products,
including include
software.

Commercial ● Malaysia is well ● exports of electronic

known for its equipment suffered
openness to from the Chinese
international trade. slowdown,
Foreign trade
 represented 116.5%
of the country's GDP
in 2021 (World Bank,
2022) making the
country vulnerable
to external demand.
The country mainly
exports electrical
and electronic
equipment (37% of
total exports in
2021),
● In 2021, Malaysia's
main trading
partners were China
(17% of total exports
in 2021), Singapore
(15%), the United
States (12%), Hong
Kong (7.2%) and
Japan ( 6.5%). Its
main suppliers were
China (23% of total
imports), Singapore
(10%), the United
States (9.4%) and
Japan with 8.3%
(Comtrade, 2021)

Financial Central bank of malaysia ● Low tax revenue

announced an intention to
set out its developmental
and regulatory priorities for
the next five years (2022 to
2026) under a new
blueprint. This new
blueprint, dubbed Blueprint
(15.9%), lack of
transparency in
budget expenditure.
● Very high level of
household debt
 3.0, is aimed to be released (80% of GDP)
in early 2022 and will focus
on:
● Enabling technology
and data-driven
innovation.
● Enhancing the
competitiveness of
the financial sector.
● Expanding access
and responsible
usage of financial
solutions
● Ensuring financial
intermediation
remains effective to
support the future
needs of the
economy.

Marketing ● There is no general ● a poor or

legislation regulating non-existent online
marketing presence (eg on
agreements. social networking
Applicable sites and in content
requirements will marketing)
depend on each
specific arrangement
(agency, distribution
and franchising) and
whether the product
is a regulated
product

MARKETS AND THE ENVIRONMENT:

How markets and the environment evolve: favorable points (opportunities), unfavorable
points (risks)...
At their present time the economic market is stable with higher inflation, which can be
conducive to investment in new projects and expansion.
However, we can understand the fact that the general situation could quickly change.
As for a fact, we know that a high risk of inflation is here within the next period
coming.
 Fields Opportunities Threats

Economical As we can see in the Changing market and

documentation, the coming consumer trends.
period should be quite
stable and inflation is under
control

Competitional Since we are in a market Strong competition

with less global ambition,
companies will act less
aggressively.

Political Government pressure to

good relations Worldwide respect the environment.
Government push help
Many laws for the respect
financially hi-tech
of employees' rights.
industries

Technology New production methods The threat of other similar

and new processes allowing
the production of
environmentally friendly
products.
competing companies in
the market, it is important
to stand out quickly in
order to impose our
dynamics.
Quite large financial loans

What needs to be done to succeed in this business, and have an advantage over its
competitors?

In this company and in our internal market in Malaysia, we should focus on profit by
investing not necessarily on quality but more on price and quantity. Then with the profit
made in our internal market, we should take advantage of the current economic situation to
invest in new projects and why not create alliances.
2. YOUR OBJECTIVES: WHAT YOU WANT TO DO

GENERAL OBJECTIVES NUMBERS:

Turnover, market share, profitability ...

The main idea would obviously be to increase our market share as well as our profitability.
have a high net margin, which will justify the performance of our company. it measures the
profit generated by each euro of sales

STRATEGIC POSITION IN RELATION TO COMPETITORS

Do you want to offer the cheapest products, the most advanced products, focus on a
specific market segment?
In the first instance, it would be better to sell the cheapest products on our internal market,
and then concentrate on quality in order to conquer new potential customers in other
markets, if possible.
After a strong documentation on our products and our geographical area , it is clear that
Malaysia is a country with a very competitive electronic market; which justifies that the
population prefers price to quality .
To this end, our initial strategy would be to juggle production and price at the expense of
product quality, in order to see the financial impact this could have on our results . This
would mean slightly increasing our production while maintaining our quantity of raw
material, added to our stock. Since quality is not the primary criterion in consumers'
purchasing choices, we decide to reduce our costs slightly, putting the priority on production
and the finished product . Our goal for the first period: quantity before quality .
Competitiveness is synonymous with competitive price; and in view of the market price , and
to remain in line with the strategy adopted, we decide to significantly lower our unit prices ,
to boost our attractiveness in the market in terms of prices. Commercial effort expenses
were also subject to a decrease to assess their impact on our productivity and market
positioning; the goal being to focus more on the product itself, by reducing our expense
costs. All these changes have been made with a view to assessing the weight of each
element and enabling it to be handled better in future decisions.

3. MEANS OF REACHING YOUR OBJECTIVES AND YOUR STRATEGIC PLAN

MEANS AVAILABLE
What are the different means at your disposal, in the fields Commercial, Technical,
Financial in particular?
It would be interesting to implement strategies to lower our selling price and increase our
sales considerably
 Financial :
- Use of borrowing
- Cost control
- Sales forecasting

Commercial :
- develop our sales
- Investment in communications
- Establish a marketing policy adapted to the products.
Technical :
- Investment in research and development, having a positive impact on strength, resistance,
as well as qualities

YOUR STRATEGIC PLAN

How will you use these means to achieve your goals? Outline a timetable for action over
the next two years.
On the economic level, we will proceed to the implementation of a marketing policy taking into
account all the aspects, in particular as regards communication, taking into account the competition
which exists on this market
Talking about competition, a competitive benchmark will be set up to keep a good position on the
market, which may also allow us to become the leader. To reach these objectives, we will opt for the
SMART method which will allow us to have objectives: Specific, Measurable, Ambitious, Realistic and
Temporal.
On the financial level: a control of the costs as well as an analysis of these by the choice and the
analysis of the most important financial ratios which will enable us to evaluate our activity and to
make a follow-up in order to improve our financial results.