UMW Holdings: Sustaining a Centennial Corporation

UMW Holdings: Sustaining a centennial corporation (case study)

       Utilize upon Porters 5 forces, analyze the 4 industries that UMW is involved.

UMW had 110 subsidiaries operating in four core business, which is automotive assembly and distribution of Toyota lines of products, automotive components and lubricants original equipment manufacturing (OEM) and replacement equipment manufacturing (REM), heavy equipment, and oil and gas drilling service.

1)      Automotive assembly and distribution

a)      Substitute: no substitute in automotive

b)      Supplier: high power in bargain

c)      Buyers: high power in bargain

d)     Rivalry: high in local and foreign company

e)      New entrant: high barriers in capital investment for setting up the company.

2)      Automotive components and lubricants OEM and REM

a)      Substitute: no substitute in automotive

b)      Supplier: high power in bargain

c)      Buyers: high power in bargain

d)     Rivalry: high intensity

e)      New entrant: OEM market contractual agreement

3)      Heavy equipment

a)      Substitute: no substitute in heavy equipment

b)      Supplier: manufacturer licensed their product for assembly and distribution

c)  Buyers: have low bargaining power due to rule high market concentration by                 UMW and DRB-Hicom.

d)     Rivalry: UMW and DRB-Hicom and the market lenders.

e)      New entrant: requires very high capital investment, UMW and DRB-Hicom dominate the industry.

4)      Oil and gas-drilling industries

a)      Substitute: no substitute oil and gas in UMW

b)      Suppliers: have quite number of drilling machinery and equipment

c)      Buyers: only UMW and Sapura Kencana provide drilling service.

d)     Rivalry: UMW and Sapura are major players

e)      New entrants: very high capital investment

2) Based on the analysis, suggest which industry or business that UMW should focus on. Provide suitable strategies to be deployed by UMW in order to achieve the 50:50 group contributions?

Based on the analysis, the industry or business that UMW should focus on is on oil and gas –drilling industries. If provide more service on oil and gas drilling industries, UMW will achieve the 50:50 plans. This is because, after UMW venture into the oil and gas in Malaysia they got high growth between 2001 and 2004 through many acquisitions, especially in China. Moreover, the oil and gas drilling sector incurred very high expenditures and use heavy machineries and equipment that were supplied by multinational manufactures and the market growth rate for the oil and gas drilling sector were estimated to increase by the year 2015.

 

Strategik Management in Islamic Perspective

Assalamualaikum madam,,here my answer,,(Forum)

Discuss how strategy is linked to ethics? How important is ethics to business success? What's the relation of ethics, moral and akhlaq? Kindly share any ethical issue(s) you have encountered before.

1)      How strategy is linked to ethics

As I know, the strategy is linked to ethics is when we have a strategy on what we have to do in assignment or in other manner or in any work, and we must follow to the due date or the rules. When we do the assignment, the strategy is we must search the books or any other source which is related with our assignment, so when we have strategy to do the assignment, indirectly we can related with our ethics, which is we have a good manner in do something or when is related with our working.

2)      The important of ethics to business success

The important of ethics to business success is when the employer or employee completing tasks on time, not duping clients or customers with false promises, offering quality products and services, not using illegal means to push competitors out of market. This is very important because helps businesses build a positive image of themselves in the market, among clients and customers. When existing clients and customers are happy with the products/services then they certainly will be talking about the company business. This will be a free advertisement for their business and will create new client and customer base. Moreover, most employees will follow whatever code of conduct their employer follows. If you will tell them to do whatever it will take to complete the job then there are chances they will indulge in unfair work practices to get things done. However, if employees are working for someone, who follows work ethics properly, then employees will do the same. Then, the company or the business are successfully deployed the ethics in their company or business.

3)     What is the relation of ethics, moral and akhlaq

I think the relation of ethics, moral and akhlaq is related between the third terms. As I know, the meaning of moral is a term used to define the boundaries of a trait, temperament, will, opinions or actions, which are worth saying right, wrong, good or bad. While the meaning of ethics is has the same meaning as moral. However, ethics in specific positions have different meanings to morale. Here ethics form the basis of a professional rule that should not be violated. For example, there is a code of conduct, employees, or medical. Then the akhlaq meaning is akhlaq is basically the attitude inherent in a person spontaneously manifested in behavior or actions. If the spontaneous act according to both reason and religion, then it is called good morals or akhlaqul karimah. For example, honest, fair, humble, generous, polite, and so on. Thus, the relation of ethics, moral and akhlaq is based on In today’s society, these terms are synonymous and used alternately to indicate something is good or bad. 

 

         4) Any ethical issue that I have encountered before

Any ethical issue that have encountered before is regarding some cases about was just happen in Kelantan which is was robber by two men and the robber not just take their money but also scratch on the face one of the victim, and the scratch will make the victim face damaged. So, the robber is very not having an ethic. The other issue is about many parent was abusing their children without any consideration or have any manner towards their ethics, and the parents just abused their own children because of their problem in marriage life because this parents are lacking on ethics, moral and akhlaq.

Strategic Management- Corporate Level Strategy

Strategic Management- (corporate level strategies)

Corporate level strategies attempts to identify strategies that corporations or organizations decide to pursue for the benefit of the whole organizations.

The various corporate level strategies will be discussed under the following headings:

    1) Grand strategies

         a. growth: next year growth rate is higher than the previous year

         b. stable growth: next year growth rate is the same as the previous year

         c. turnaround: the growth rate is positive as compared to the previous year

         d. combination: organization adopt a few strategies combining some of the three     strategies mentioned above; growth, stable growth and turnaround. 

   2) Secondary level strategies

           a. expand: to increase activities so that the volume of the output is increased in  terms of numbers, weight, size, branches, etc.

           b. integrate: to have more control of the production or services such as through  the control of resources (backward) or the added value of down the line activities as in warehousing, wholesaling and retailing (forward).

           c. diversity: is basically the increase in the number of outputs produced or services rendered.

           d. reduce : that are grouped together as they all represent actions that are commonly used in corporations facing some difficulties on their operations as reflected in their negative performance indicators.   

      3) Tactical level strategies

           a. Organically: to describe tactical strategy where a company would do it through its own strengths and capabilities without the involvement of any other company with similar interest.

           b. Joint venture: A joint venture tactical strategy involves a setting up of a new company with equity participation of all the parties involved (can be more than two)

           c. Merger: a merger will result in the establishment of a new company while the two or more names of those involved in the merger will not exist anymore.

           d. Acquisition/ Takeover: An acquisition and a takeover are almost similar as it involves the buying of the majority equity of the company.

           e. Reverse takeover: A reverse takeover involves a listed company. The company that wants to do a reverse takeover is interested to be listed in the stock market.

           f. Strategic Alliances: just alliances or understanding between two or more parties that describe to work together to achieve their respective objectives without any structural changes.

           g. Licensing/ Franchising: to seek permission to run a business based on that of the licensor. the permission once obtained, allows the company to manufacture or do business on the licensed product or service.

Mamak Restaurant VS Fast Food Chains Restaurant

Mamak Restaurant VS Fast Food Chains Restaurant

(Forum in goals)

Mamak restaurant and fast food chains (KFC, McDonalds, Burger King, Pizza Hut, Dominos, Subway and etc) have a different business strategy.

In your opinion, what kind of business strategy are they deploying? Which restaurant do you prefer to go? Why does it so?

My answer is….in my opinion, for me, I prefer go both of the restaurant. But, if I want go into Mamak restaurant, firstly, I will look into the cleanness of the restaurant, when I go into the restaurant of fast food I will just go through it because the restaurant of fast food already in close place and clean.

Moreover when we go mamak restaurant, sometimes their cashier are not usually use the machine money to pay back customer money, so sometimes they will easily cheat customer and it is happen to my friend. When he check back his balance money was not enough. So it will make customer not satisfied and loss their trustees towards mamak restaurant.

As we know, mamak restaurant and fast food chains have different business strategies. Mamak restaurant use the cheap price and some customer choose to eat mamak restaurant because they have fast services and also commonly preference to Malaysian taste.

While fast food chains use advertising, we can see that ads in billboard, facebook, and their own website. Lastly, I prefer go both of the restaurant but, if I want go into mamak restaurant, I will check the cleanness first. That’s all from me,,,thank you,,,:)