CORPORATE STRATEGIC

(ZCMA6082)

MID-TERM TEST

PREPARED BY:
JESMIN A/P RAJESH (ZP03398)
KIRISHNEVENI PALCHAMAY (ZP03429)

PREPARED FOR:
DATUK DR. JOHN ANTONY XAVIER

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The External Factor Evaluation (EFE) Matrix

Weighted
Key External Factors Weight Rating Remarks
Score
Opportunities
1) Assistance provided 0.02 2 0.04
2) Positive tax policy 0.02 2 0.04
3) Public investments in R & D 0.07 4 0.28 O1
4) Income level is at a constant increase 0.05 3 0.15 O4
5) Increasing automation in businesses 0.06 3 0.18 O3
6) Good supplier relationship 0.04 2 0.08 O5
7) Increasing demand 0.04 2 0.08
8) Low cost workers 0.07 3 0.21 O2
9) Business sustainability 0.04 2 0.08
10) Young population 0.03 2 0.06
Threats
1) High barriers of market entry 0.06 3 0.18 T5
2) Increase in development costs 0.06 3 0.18 T4
3) Weather conditions 0.09 4 0.36 T1
4) Limited to the geographical location 0.08 4 0.32 T2
5) Giant public listed companies 0.05 3 0.15
6) Raw material high quality 0.05 3 0.15
7) Capital investment 0.04 2 0.08
8) Dependence on major clients 0.07 3 0.21 T3
9) Regulations 0.04 2 0.08
10) Product differentiation 0.02 2 0.04
Total 1.00 2.95

The Internal Factor Evaluation (IFE) Matrix

Weighted
Key External Factors Weight Rating Remarks
Score
Strengths
1) Multi culture 0.07 4 0.28 S5
2) Experience top management 0.06 3 0.18
3) Attractive training program and career
0.06 3 0.18
development
4) Achieving a healthy and safe work environment 0.07 4 0.28 S1
5) Environment friendly operation 0.07 4 0.28 S2
6) New growth with prudence and restructure 0.06 3 0.18
7) Well equipped with advance software 0.06 4 0.24
8) Promotes energy efficiency 0.05 2 0.10
9) Technology in sequence, assemble and annotate 0.05 2 0.10
10) Largest company in the market 0.05 2 0.10
11) Strong financial growth and net cash flow 0.03 1 0.03
12) Yield solid dividend with good returns 0.03 1 0.03
13) Financial ratio 0.03 2 0.06
14) Good reputation and image 0.07 4 0.28 S3
15) Membership in trade alliance 0.07 4 0.28 S4
Weaknesses
16) Strict recruitment policy 0.05 4 0.20 W1
17) Negatively sensitive to globalization 0.04 2 0.08 W4
18) Absence of strategic partner 0.03 4 0.12 W2
19) Limited retail distribution 0.03 3 0.09 W3
20) Losing market share 0.02 2 0.04 W5
Total 1.00 3.13

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SWOT Analysis

STRENGTH WEAKNESSES

 Diversified business activities Declining in revenue and PBIT

 World largest listed oil palm Shortage of workers in plantation

plantation industry

 Top development in bioeconomy and Depends heavily on upstream

biodiesel industry. operation

 Environmental friendly practices Lack of skill plantation labor

 High skilled and talented team Young field in Liberia produce no

output and instability of community

OPPORTUNITY THREAT

 Increasing Demand for CPO Price fluctuation of CPO could

 Rising health issue lead to lower demand of palm oil

 Availability of land in Indonesia Land ownership issues

 Support by both goverment Stiff competition related to

 Emerging biofuel market plantation expansion

Minimum wages enforce by

Malaysian goverment

Adverse weather

STRENGTH (S) WEAKNESSES (W)

INTERNAL
S1 Diversified business W1 Declining in revenue
activities and PBIT
FACTORS
S2 World largest listed oil W2 Shortage of workers in
palm plantation plantation industry

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 S3 Environmentally friendly W3 Depends heavily on
practices upstream operation
EXTERNAL
S4 High skilled workers & W4 Lack of skilled
talented team plantation labor
FACTOR
W5 Young field in Liberia
S5 Top development in produce no output and
bioeconomy and biodiesel unstability in community
OPPORTUNITY (O) STRATEGY SO STRATEGY WO

O1 Increasing demand for All activities, programs Build strong alliance with
CPO and products are being Indonesia
O2 Rising health issue publicize for social (W1, O3 and O4)

awareness and to promote

O3 availabity of land in
sustainability Provide additional training
Indonesia
(S3 and O3) for the labours
O4 Support by both
(W4 and O1)
goverment
Conduct an intensive
O5 Emerging biofuel market
research and development calloboration with local
to produce high quality of and outside employment
biofuel agency
(S5 and O5) (W2 and O4)
THREAT (T) STRATEGY ST STRATEGY WT

T1 Price fluctuation Acquirer Indonesian Explore new market and

plantation by buying their land availability to other

T2 land owvership issues
shares and make them as South East Asian

subsidiary countries such as Thailand

T3 Stiff competition related
(S2, T2 and T3) and Cambodia
(W5 and T2)
to plantation expansion

Retain workers by
T4 minimum wages enforce
including better
compensation, bonus,
by malaysia government
health & life insurance

(W2 and T4)

T5 adverse weather

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References

http://www.simedarby.com/

http://www.malaysiastock.biz/Corporate-Infomation.aspx?securityCode=4197

http://slideplayer.com/slide/8886865/

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