SINARAN CONSTRUCTION SDN BHD

By Group 3

Team Members Roy Martin Aloysius Adznan CGA 110040 Wong Eng Yew CGA 130094 Yap Lee Chin CGA 110101 Siti Wahyuna CGA 110109 Iraida Dancil CGA 120015

SINARAN CONSTRUCTION SDN BHD STRATEGIC PROFILE a) Incorporated in 1981, the company has diversified its business from quarry products and machine rentals to construction business b) Its was listed in the KLSE in 1997 on the main board, and with an authorized and paid-up capital of RM 1 billion and RM 180 million respectively, as at 2004 c) It has established a name in construction with the completion of a 6-star hotel and shopping complex in Bandar Sunway in 1998, as well as being awarded the ISO 9002 certification in the same year

SINARAN CONSTRUCTION SDN BHD SITUATION ANALYSIS The Problem 1. 3 months behind schedule (equivalent LAD of RM 13.5 million) , with 65% balance to be completed within 1 year.

The Issues 1. Project Director, Mr Tang is non-performing i.e. a. Not giving timely feedback to Project Managers b. Undermining Design depts effectiveness with consultants by interfering in their work and not supportive of the depts decisions c. Undermining Project depts effectiveness with sub-contractors by interfering in their work d. Not addressing the ineffectiveness of the reward system introduced by the company e. Personality issues i. not willing to share his knowledge, ii. does not consider the opinions of others, iii. lacking patience, and iv. not decisive

SINARAN CONSTRUCTION SDN BHD SITUATION ANALYSIS Contd The Issues Contd 2. Lower level employees turnover is rising, due to a. Not getting clear direction from the supervisors b. No job satisfaction c. Poor work environment d. Better job offers 3. Mr Cheng, who is in charge of the project budget (financial resources) , is not cooperative with the functional depts a. He is driven by cost rather than aesthetics, thus in conflict with Design dept and refused to provide additional manpower resources to the dept b. Not willing to share material cost information with the rest of the project team, only addressing it with the project team when costs have overrun

SINARAN CONSTRUCTION SDN BHD SITUATION ANALYSIS Contd Symptoms and root causes 1. The Company does not have a Strategic Vision and nor exhibited a Strategic intent a. The MD, Mr Kwang does not take a hands-on approach on the issues facing the company, particularly in the area of Human management b. Senior management is unclear of the companys core competencies and capabilities and thus did nothing to capitalize on it

1. Poor execution of strategic actions within the company a. Lacked cross-functional cooperation (e.g. Design dept and Project costing) b. Weaknesses in effective project management, which is a core weakness c. Poor conflict management amongst the project team

SINARAN CONSTRUCTION SDN BHD SWOT ANALYSIS a) Strength i. Good brand name, with a good track record ii. Have an experienced management team iii. A continuous improvement programme focused on staff development and training b) Weaknesses i. Staff de-motivated, work as instructed, reflected a lack of interest ii. Lacking leadership and support from senior management to dept. heads iii. Lacking clear direction to junior employees

SINARAN CONSTRUCTION SDN BHD SWOT ANALYSIS Contd a) Opportunities i. Completion of the KLCC project within the time frame will further enhance the companys reputation and prestige in the market for high-end development b) Threats i. Financial setback due to the looming LAD on the existing KLCC project ii. Losing experienced staff (valuable resourced) to competitors

SINARAN CONSTRUCTION SDN BHD STRATEGY RECOMMENDATIONS a) Mr Kwang, the MD has to change his management style from Management by objective (MBO) to be more participative on the Project Management in the short-term, to overcome the bottlenecks created by Mr Tang , the Project Director b) The Senior Management, in the mid-term must do an internal stock-take to identify and assess its competencies (i.e. distinct and core competencies) and valuable resources (both financial and non-financial) and to utilize the findings to c) Set out a Strategic Vision of the company, the Strategic Mission and Strategic Objectives for the company