CHAPTER 8 : DIVERCIFICATION AND MULTIBUSINESS COMPANY.

SALAM,,,everyone , how your day recently, I guess all of you must be happy since there no lecture and tutor for this subject. But, we still have a lot of assignment that must be submit early of December.  Tired already, but still we need to finish it. It okay’s. We can do it.

For today, I would like to share my information that I get from my reading in this chapter. Firstly,what is the purpose of diversification ? .Diversification may builds shareholder value. But, the company must entry into new business that pass the attractiveness test, the cost- of – entry test and better –off test. Besides, entry into the new business there are three forms which are acquisition, internal start-up, and joint venture.

It is important for the business to have corporate parent which it helps providing high level oversight and making available other corporate resources, allocating financial resources across the business portfolio and restructuring underperforming acquisitions.

There are six steps to analysis the company diversification:

1)    Evaluate the long term attractiveness of the industries into which the firm has diversified which is include the attractiveness in its own, for others and as a group.

2)    Evaluate the competitive strength of each of the company’s business units.

 3)   Check for cross strategies fit

4)    Check whether the firm’s resources fit the resources requirement of its present business lineup.

5)    Rank the performance prospect of the business from the best to the worst and determine what the corporate parent’s priority should be in allocating resources to its various businesses.

   6)   Crafting new strategies move to improve overall corporate performance.

I think that all for this part, have a nice day everyone. May Allah bless all of you today. Jazakallah (^_^).  

OSHIMA RESTAURANT

SALAM EVERYONE!!!

MIDSEM BREAK already over therefor as a student, we must continue our campus life in USIM. Last week, there are no class and tutor for this subject. Thus,as a replacement, there are sharing session with OSHIMA restaurant at DKF 1.1 FEM at 8.30 am untill 10.00 am. So, I want to share some information that I get from the sessions.(^_^).

Frankly speaking, I do love to eat sushi and OSHIMA restaurant offer halal and delicious Japanese cuisine.OSHIMA means huge island and the restaurant is own by Bumiputra, we should be proud for it.

During the sessions, Puan Hanim shared with us her experience in running a business. OSHIMA involve in promoting halal food industry because they do not serve beer, liquor or any alcoholic drink to the customers and they have HALAL certificate for JAKIM.

She get the idea to open Japanese restaurant since she went to Japan for studies. Then, she come back to Malaysia and start- up the business. At the first time, she faced many challenges that lead to the failure of the business regarding to many issues that need to be consider, she need to close 2 outlets.

OSHIMA restaurant really concern about their customer. As Puan Hanim said, the customer always right. They retain their customers loyalty by introduce the HALAL image and concern about the customer complain or opinion.

OSHIMA also had preserve the orginality of the food. The food/ menu offer at the restaurant is 100% halal. In making a sushi, they do not use sake but replace it with vinegar and soup base for ramen, they use chicken bone rather than pork bone. They also use UPM lab for testing the halal ingredients.Plus,most of the ingredients that use in the dish are home-made from the restaurant itself.

OSHIMA restaurant have a good strategy in promoting their restaurant such as they had collaborate with UiTM students Japanese Food Festival.

Here are some picture that I take from another blogger that have experience at OSHIMA restaurant.

That all from me. The sharing session was fun and i got many information from it,.Jazakallah (^_^).

STRATEGIES FOR COMPETING IN INTERNATIONAL MARKET

SALAM EVERYONE and good morning.

It already week 10, there are another 3 week to complete this individual assignment. I believe everyone having a hard time to complete all the assignment. Same here. But, as for today, let me continue to share on what we already discuss in the previous lecture.

Why it is important for the company to enter foreign market???, it is because the company want to gain new customers, reduce cost though greater scale economic,gain access to resources and capabilities located outside the domestic market.

But, in making the strategy, it is quite complicated because it have different value chain, different political issue, climate and weather, different customer's taste and preferences.

There are five ways the company can choose to enter the international market, First by maintain the one country production base, Second, licensing and also franchising. Besides, the company also can establish the subsidiary via greenfield venture and last but not least, using other collaborative partnership.

We also discuss on licensing and franchising. Thus, I have look for the advantages and disadvantages for both.

Advantages for franchising are:

1) Good way to find talented person to manage the business by giving the training and incentive to work.
2) Great way to obtain expansion capital because it use the other person money to buy and open the outlets. so, no need to spend our own money or make loan from the bank.
3) can generate high financial return in the future.

Disadvantages of franchising are:

1) conflict between franchisor and franchisee due to the management.
2) reduce corporate profit margin due to the payment of royalties and levies.

Advantages of licensing are :

1) Enable to extend the business at minimal investment
2) increase the customer connection by offering various type of brand licensing.
3) Increase the channel distributions for the brand via licensing relationship.

Disadvantages of licensing are :

1) It is important for the company to understand and find the right partner for license.
2) Licensing can be a complex arrangement and it is important for a licensor to be properly guided in terms of royalty payment, audit provisions and minimum sales.

That all from now, have a nice day everyone.Jazakallah. (^_^)

STRENGTHENING A COMPANY COMPETITIVE POSITION

SALAM EVERYONE,,,,

Today I would like to share on the previous chapter that we already cover in the lecture,,happy study (^_^)

Basically, this chapter is about on how the company choose the strategy to attack their rival.There are many way to attack the rival such as cost based advantages, pursuing continuous product innovation, adopting and improving the best idea from others, hit and run tactics and blue ocean strategy.

Defensive strategy is important to reduce risk of being attack and protect the company position which is to block the challenger and action to signal the likelihood of strong retaliation.

Horizontal merger and acquisitions can strengthen the company in many ways like improve the operations, increase product differentiation, reduce market rivalry, increase company's bargaining power for suppliers and buyers and make the company more flexible and have dynamic capabilities.

Other than that, we also discuss about outsourcing. The benefits of outsourcing to the company are it help to reduce company's cost by appoint outsider specialist. It also help to increase company's flexibility and they can focus more on the core business.

I think that all from now.Sharing is caring.Have a nice day everybody.(^_^)

RESTAURANT PRESENTATION

ASSALAMMUALAIKUM..

In the name of ALLAH I begin..

HELLO there.....how's your day everyone. Always begin your day with smile. Okey2, I would like to share with you guys about the presentation for competitive advantages. For the task, we need to go out to search the restaurant. First of all, I would like to introduce my group restaurant which is PAN TRADIZIONALE. The concept for the restaurant is italian dish and cuisine. Main dish is pizza. The other group also choose interesting concept for their restaurant.

From the presentation, I realize that it is not easy to setup a business especially restaurant. We need to have a good strategy to maintain the reputation of the restaurant, restrain the customers and always looking for unique factors and so on.

                                                     
                                                                  Dutch Lady group
                                                          thailand food like tomyam kung
                                                            SAWADIKAP (>_<)huhuhu

                                                                     Adabi group
                                                    Indonesian cuisine + Minang style dish
                                                                          NOGORI (^_^)
                                                      

                                                         Sime Darby Group ( my group)
                                                             Italian traditional cuisine. 
                                                                    MAMAMIA!!!!!

                                                 
                                                                 Al-ikhsan group
                                                     Western food BURGER BAKAR KAW-KAW
                                                                        yummy!!! 

                                                                      Zhulian Group
                                                         Seafood plus grill style food. 
                                                                 Hungry already!!! (*_*)

Guys, that all I want to share for today. Overall presentation are good and creative. love it.jazakallah.

good night everyone. wassalam

CHAPTER 4

ASSALAMMUALAIKUM ...

In the name of ALLAH I begin...

HELLO!!!!!.Today is holiday , so I have a lots of free time to update my blog.hehehehe,,,i wanna share about the fourth topic that we have been discuss during the lecture last Tuesday. Let's study everyone. Cheer up.

In evaluating company the most important point  resources, capabilities and competitiveness. The key points for this topic is resources and capabilities.

Resources is the input for the company including knowledge, property, culture, pattern, trademark whereas capabilities means how the organization utilize the resources. How well the company is shown by the high performance in the organization. It means that the strategy used by the company success. The component of the resources include R&D , IT, HR, finance, production, sales and marketing.

The indicator for in evaluating the company performance are

• growth in the firm if  there are high growth shows the firm is success

• how the company retain the customer- loyalty 

• ROI -return in investment - how much the company get from the investment- the higher the better

• grow financial strength - easy to get loan 

• competitive advantages - be better than your rivals 

• Increasing profit margin

Capabilities is basic knowledge that is learning from experience.

V- variable which the resources that have value and can compete( toyota- leader in automobile industry)

R- rare( unique) identify what the competitor lacking

I- imitable - resources that hard to copy

N- non- substitute means that the product hard to find the substitute.

Then, the other important thing is SWOT analysis. To make it simple,
SW- we look at internal strength and weakness in the organization

OT- look  at external environment - find the way to overcome the problem. After the company done the SWOT analysis, then they will come out for the new strategies.

MAKES THE REST OF YOUR LIFE , THE BEST FOR YOUR LIFE 

EXTERNAL ENVIRONMENT (CHAPTER 3)

ASSALAMMUALAIKUM

In the name of ALLAH  I begin...

HELLO!!! long time no see, today I want to update my blog with a new topic in strategic management.

Previously, during the lecture I learned about company's external environment. In this topic we focus on the PESTEL analysis and and five competitive forces. PESTEL analysis focus on political,environment, socialeconomic, technology, economic condition and legal. Meanwhile, the five forces are :

• new entrance 
• rivals
• suppliers
• buyer 
• substitute

There are the five forces analysis for automobile industry,

          

new entrance - moderate to enter

rivals - high competition because of many players in the industry (  Toyota,Ford,Honda and Proton)

Suppliers - many suppliers because of high demand in manufacturing the car such as tire, spare-part 

Substitute - substitute for automobile industry are all public transport.

Buyer - Bargaining power for customer is low because most of the price is fixed.

In conclusion, we can say that automobile industry is a conductive market.

other than that we also learn about strategic group mapping. It helps the industry to identify rivals strategy. As an example, automobile industry.

High 

                               * kia/merz                                         *Honda/toyota

price/quality

image

low                                                                         * perodua/Proton

                            Narrow                                    board 

This simple figure, shown that proton and perodua well known in the automobile industry but the quality of the product is low. Meanwhile, Honda and Toyota also well known and have high quality in automobile production. On the other hand, Kia and Merz have narrow market in the industry but have high quality of car.

Besides, we also learn about the key success factors. For example, Nestle which is the key success is make sure all the household have their product.

I think that all so far. This is based on what I understand from the topic. Jazakallah (^_^)