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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 company’s 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 alternative’s
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
TOTAL ASSETS : 32,719,202 Billion
EMPLOYEES : 2,309 employees
WEBSITE : https://www.ioiproperties.com.my/
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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
SUBSIDIARIES
LOCATION
IOI Properties Berhad
Putrajaya
Fortune Premiere Sdn Bhd
Putrajaya
Resort Villa Development
Putrajaya
Mayang Development Sdn Bhd
Putrajaya
Wealthy Link Pte Ltd
Singapore
Resort Villa Golf Course Development Sdn Bhd
Putrajaya
Dreammont Development Sdn Bhd
Putrajaya
IOI Properties Empire Sdn. Bhd
Putrajaya
Nusa Properties Sdn. Bhd.
Putrajaya
Novel Vortex Ltd
Hong Kong
Eng Hup Industries Sdn Berhad
Johor
Emerald Property Services Sdn. Bhd
Putrajaya
Bukit Kelang Development Sdn Bhd
Putrajaya
Fortune Growers Sdn. Bhd
Putrajaya
Nice Skyline Sdn. Bhd.
Putrajaya
IOI Business Hotel Sdn. Bhd.
Putrajaya
IOI (Xiamen) Properties Co. Ltd.
China
Progressive View Pte. Ltd
Singapore
Xiamen Talent Business Management Co. Ltd
China
IOI Consolidated (Singapore) Pte Ltd
Singapore
IOI Properties Capital (L) Berhad
Putrajaya
Resort Villa Golf Course Bhd.
Putrajaya
IOIPG Capital Sdn. Bhd
Putrajaya
IOIP Capital Management Sdn Bhd
Putrajaya
Palmex Industries Sdn Bhd
Pulau Pinang
Table 1 : IOI Properties Berhad Subsidiaries
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
The securing of a land bank, supply of raw materials, labour and even potential buyers
are the source of competition. If developers fail to transfer higher land, labour and
materials costs on to their buyers in the form of higher sales prices on land,