Type
Essay
Pages
38 pages
Word Count
7554 words
School
Universiti Teknologi Mal
Course Code
Strategic management

Strategic Management

June 4, 2021
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FINAL EXAM EQUIVALENT PROJECT (FEEP)
STRATEGIC MANAGEMENT
MBSA 1213 SECTION 02
LECTURER: DR. SATEESH BASKARAN
NAME
MATRIC CARD NUMBER
NOORLELAWATI BINTI MUSTAFFA KAMAL
MBS191038
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LIST OF CONTENT
DETAILS
PAGES
1
1.0 Executive Summary
3
2
2.0 Organization Description
4
3
3.0 Organization and Management Structure
3.1 IOI Properties Group Subsidiaries
3.2 Rational selecting the organization
3.3 Relevant Market
3.4 Product and Services
3.5 Organization Success Factor
5
6
7
8-9
10
11-12
4
4.0 Assessment of Vision Statement
13
5
5.0 Assession of Mission Statement
14-15
6
6.0 Environmental Audit
6.1 PESTEL
6.2 PORTERS
6.3 Competitor Analysis
6.4 Internal Environment
16 18
19
20-21
22-24
7
7.0 Finalization of SWOT
7.1 Organization’s Externa Opportunity / Threats
7.2 Organization’s Strength / Weaknesses
24-25
26-27
8
8.0 Formulation and Organization Objectives
8.1 Financial Objectives
8.2 Strategic Objectives
28
29
9
9.0 Strategy Formulation
9.1 Internal Factor Evaluation (IFE) Matrix
9.2 External Factor Evaluation (EFE) Matrix
9.3 TOWS Matrix (ST, SO, WT and WO strategies)
30-31
32-34
35-39
10
10.0 Strategy Recommendation
10.1 Corporate Level Strategy
10.2 Business Level Strategy
40
41
11
11.0 Appendix
42-43
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1.0 EXECUTIVE SUMMARY
IOI Properties Group Berhad (IOIPG) is a leading developer of publicly listed
properties in Malaysia. Prior to its successful listing on the Main Board of the Malaysian
Stock Exchange on 15 January 2014, it built a solid reputation as an esteemed
property arm of the IOI Group.
IOIPG is renowned as one of the largest property companies in the country with an
established track record spanning more than three decades in the field of property
development. Its main activities include development of property, investment in
property, leisure, and hospitality. Sustainable townships have been successfully
developed in the sought-after regions of Klang Valley and Johor in Malaysia, while
developing property in Singapore and Republic of China. IOIPG currently has a total
landbank area of 10,000 acres in Malaysia and abroad.
This paper will analyses the IOI Properties Group business strategy. This paper also
identifies the companys strength, weaknesses, opportunities, and threats.
Environmental audit was determine in this project and divided by two categories were
internal and external factors. For internal factors, it consists of culture, management,
marketing, production, operation, Research and Development (R&D) and
Management Information System. While for external factors were consist of Political,
Economic, Social and Technological analysis (PESTEL), Porter Five Factors and
Competitor Analysis.
From the SWOT analysis, the External Factor Evaluation (EFE) Matrix and Internal
Factor Evaluation (IFE) Matrix have been developed. EFE is a strategy tool used to
assess the internal environment of the firm and to reveal its strengths and weaknesses
while IFE It is a strategy tool used to examine the external environment of the company
and to identify the opportunities and threats available to it. The result shows that the
IOI Properties Berhad’s EFE and IFE Matrix are above average with total weighted
score of 3.10 and 3.20.
Beside all the matrixes, I have been generated for long term objectives and alternative
strategies for IOI Properties Berhad. The long term objectives are to give better service
to the customers and continuously improving their performance, to provide good
locations, affordable prices, highly functional designs and the right amenities to the
people and also to create a safe, green and pleasant environment. For the alternatives
strategies, we have come out with strategy of market penetration.
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2.0 ORGANIZATION DESCRIPTION
TYPE : Public
INDUSTRY : Property
HEADQUARTERS : Level 29 IOI City Tower 2 Lebuh IRC IOI Resort City,
Putrajaya, Putrajaya, 62502, Malaysia
CHAIRMAN : Lee Yeow Seng
CHIEF EXECUTIVES : Datuk Voon Tin Yow
PRODUCTS : Consumer
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3.0 ORGANIZATION AND MANAGEMENT STRUCTURE
Figure 1: IOI Properties Group Governance Structure
Sustainability in IOIPG is driven by the Sustainability Steering Committee chaired by
the CEO of the Company, Mr. Lee Yeow Seng, with the Head of Sustainability
reporting directly to the CEO. The Board of Directors is responsible for overseeing the
management of sustainability within the organization, with the CEO reporting to the
Board on related sustainability issues.
Positioned at the highest level to oversee sustainability issues and the effective
implementation of sustainability strategies, the Board ensures that adequate
resources are allocated to manage sustainability issues across the Group's business
segments. The Sustainability Steering Committee, consisting of senior management
across core business segments, has a crucial responsibility to set high-level direction,
to guide the implementation of sustainability strategies at the corporate level, while the
Sustainability Council, represented by the Heads of Business Unit and cross-functional
members of the Heads of Departments, implements deterrence strategies.
The Group leverages the expertise of its staff from different departments to ensure the
effective implementation of initiatives in line with the sustainability strategies of the
Group. In order to promote the successful implementation of sustainability strategies,
the Heads of Business Unit work closely with working groups comprising subject-
matter experts and key staff of functional support departments in the implementation
of initiatives; and monitor progress in order to manage the Group's material
sustainability issues effectively.
The Board is undertakes an analysis of the overall strategy of the IOIPG Group's. The
CEO, Chief Operating Officers (COOs) and the senior management team take the
lead in developing an organization strategy that is then reviewed, constructively
challenged, and approved by the Board of Directors. In order to ensure that the
governance of the organization is appropriate for its purpose, the role of the Board is
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to create long-term sustainable value for the benefit of its shareholders and wider
stakeholders.
IOIPG Corporate Governance Framework is a value-based governance framework
that considers the corporate culture and values of the CG Codes, Listing
Requirements and IOIPG Group. The framework interaction between the stakeholders
and the Board of Directors demonstrates how the structure of the Board of Directors
facilitates interaction between the Board and the CEO and illustrates the flow of
stakeholder delegation. The company has a mechanism in place to ensure that the
referral passes through the Board and its committees to the Board of Directors and
the Management Committees and to the company.
3.1 IOI Properties Group Subsidiaries
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3.2 The rationale for selecting the organization
The reason I have been choose this organization is because IOIPG is a major player
property in Malaysia and the brand is recognized. In Malaysia, IOIPG has a wide
number of competitive with the same goods and services, including UEM Sunrise
Berhad, Sunway Berhad and SP Setia Berhad. Due to that, I interested to analyse the
strategic management for IOIPG because I believe the organization need to establish
and sustain equal competition to thrive and succeed in a competitive market.
The real estate sector is currently facing new challenges as part of an increasingly
competitive sector (Wilson et al., 2001). Apple-Meulebrock (2008) concludes that, in
order to survive in this new, competitive environment, it is essential to deliver good
service, a factor that Anderson and Sullivan (1993) also consider crucial in order to be
able to compete. As a result, the real estate industry will be forced to develop
strategies to organize companies and prepare them to meet these new challenges.
IOIPG needs a strategic review due to faces several inherent as below:
Competition
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3.3 Relevant Market
The relevant product market includes all goods and services which are considered to
be interchangeable or exchangeable by the customer, characteristics of the products,
prices and location. This interpretation takes us to the principle of "replacement of
demand," which is the most immediate and efficient corrective mechanism for the
suppliers of a given product and service. The management decision-making practice
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3.4 Company product and services
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3.5 Organization Success Factor
The key success factor for IOIPG consist of 6 factors. The factors are property
development, technology and innovation, diversification opportunities for overseas
joint venture, operating performance, asset quality and leverage strategic investment
assets.
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Asset Quality
IOIPG is implementing strategies to target genuine customers with high-quality,
affordable landed and high-rise homes, as well as business offices in strategic
locations. Strategic location is the key to the purchase of a sound property. IOIPG will
continue to improve the growth of mature Townships with Transit-Oriented
Development ("TOD"), in particular the Townships Bandar Puchong Jaya and
Bandar Puteri Puchong. Residents would benefit from the construction of the Light
Rail Transit (LRT) lines and stations offering additional comfort and connectivity to
these townships.
4.0 ASSESSEMENT OF VISION STATEMENT
Our Vision to be a leading corporation in our core business (7) by providing products
(2) and services of superior values and by sustaining consistent long-term growth (3)
in volume and profitability (5)
Assessment of the existing vision statement
No
Criteria of vision assessment
Stated
Not Stated
1
Customers / Stakeholder
2
Products and services
3
Markets concern
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5.0 ASESSMENT MISSION STATEMENT
Our Mission is to be a leading property developer (7) by providing products and
services (2) of superior value and by sustaining long-term growth in volume and
profitability (5). We shall strive to achieve responsible commercial success by
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Assessment of the new mission statement
No
Nine Criteria of a Good Mission Statement
Stated
Not Stated
1
Customers / Stakeholders
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6.0 ENVIROMENTAL AUDIT
6.1 PESTEL
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7.2 Organization’s Internal Strengths / Weaknesses
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9.2 External Factor Evaluation (EFE) Matrix
NO
OPPORTUNITIES
WEIGHT
RATING
WEIGHTED
SCORE
1.
IOIPG is one of the fastest growing
0.07
4
0.28
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9.
IOIPG can secure their economies of
scale and strong brand reputation and
loyalty.
0.04
3
0.12
10.
IOIPG improves the well-being of
society and encourages environmental
ethics
0.02
2
0.04
NO
THREATS
WEIGHT
RATING
WEIGHTED
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OPPORTUNITIES O
1. IOIPG is one of the
fastest growing
economies in the
region, with capital
growth ranging from
15% to 30% on the
property market.
SO STRATEGIES
1. Develop a new green
and smart township at
the undeveloped area
with ‘Modern Forest
concept. (S5, O10)
(Market Development)
2. Promoting greater
WO STRATEGIES
1. Selling one to two
subsidiaries to reduce
the total liabilities and
concentrate more on
foreign property
investment to cover the
liabilities. (W3, O2)
of different market
properties offerings.
7. Property prices per
square meter in all
major Malaysian cities
and talented
employees lead to
higher costs.
3. The current ratio
declined dramatically
in 2019
4. The total liabilities
housing demand. (S4,
T) (Market
Penetration)
2. Co-ordination in
planning for
infrastructure
preferences. (W6, T10)
(Product
Development)
2. Give discounts to
housing buyers and
include free
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10.0 STRATEGY RECOMMENDATION
10.1 Corporate Level Strategy
Corporate-level strategy lays out the steps taken by a corporation to achieve a
competitive advantage by choosing and managing a number of different competitors
operating in various product markets. It is expected to help firms earn above-average
returns and value ultimately determined by the degree to which the companies in the
portfolio are worth more under the management of the company than they would be
under any other ownership
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10.2 Business Level Strategy
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11.0 APPENDICES
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