Documents

Hashim Final SM 1.docx

Description
doc
Categories
Published
of 32
All materials on our website are shared by users. If you have any questions about copyright issues, please report us to resolve them. We are always happy to assist you.
Related Documents
Share
Transcript
   1 Table of Contents INTRODUCTION ................................................................................................................................... 3 PESTEL ................................................................................................................................................. 4 POLITICAL and LEGAL  ............................................................................................................... 4 ECONOMIC  ................................................................................................................................... 5 TECHNOLOGY and ENVIRONMENT  ........................................................................................ 5 MARKET CHARACTERISTICS ................................................................................................................ 7 SIZE  ................................................................................................................................................ 7 MARKET SHARE  .......................................................................................................................... 8 GROWTH  ....................................................................................................................................... 9 INDUSTRY AND COMPETITIVE ENVIRONMENT ................................................................................. 10 Buyers’ Power:  .............................................................................................................................. 10 Suppliers’ Power:  .......................................................................................................................... 10 Threat of New Entrants:  ................................................................................................................ 10 Rivalry among Existing Firms:  ..................................................................................................... 11 Threat of Substitutes:  .................................................................................................................... 11 FIRM SPECIFIC ISSUES ....................................................................................................................... 13 MAJOR INVESTMENT ............................................................................................................... 13 OBJECTIVE  ................................................................................................................................. 13 PROFITABILITY  ......................................................................................................................... 13 CAPABILITIES  ............................................................................................................................ 14 COMPETENCES  .......................................................................................................................... 14 TRENDS  ....................................................................................................................................... 14 LONG-TERM COMPETITIVENESS  .......................................................................................... 14 SWOT ANALYSIS  .......................................................................................................................... 15 RESOURCE AUDIT  .................................................................................................................... 16 FINANCIAL RATIOS  .................................................................................................................. 16   2 CONCLUSION ..................................................................................................................................... 19 REFERENCES ...................................................................................................................................... 20 APPENDIX 1  .................................................................................................................................... 28 OTHER APPENDICES  .................................................................................................................... 31   3 INTRODUCTION In layman’s term, a strategy is a carefully constructed plan in helping to achieve a particular set of objectives or goals. The role of strategy within an organisation is said to be the main determinant of its success or failure. According to strategic management theory, a firm must  be able to change their strategies in relation to the conditions of their external environment (Parker, Storey, van Witteloostuijn, 2010). Through strategic analysis, firms can examine their external and internal environment in identifying whether their current strategies are effective. First step is to scan the macro-environment through PESTEL, a tool used to evaluate external variables such as politics, economics, sociocultural, technological, environmental, and legal factors (Huiru, 2011). Next, the industry which the firm operates in is examined through factors such as size, growth, and market share. The competitiveness of the industry is also evaluated by using Porter’s Five Forces. Finally, we scan the internal environment of the firm through financial ratios, SWOT analysis, and resource audit to determine their capabilities and long-term competitiveness. Strategic analysis is important  because it allows strategic decision makers to modify their expectations and take corrective actions in relation to the changes in the environment. Regular strategic analysis helps a firm in achieving its long-term goals. For this report, we have chosen to analyse Ann Joo Resources Berhad (AJRB) by using the steps mentioned previously. AJRB is a group that specialises in manufacturing and trading steel products. They are considered to be the most trusted and reliable provider of steel products and services in Malaysia (Ann Joo Resources Berhad, 2014).   4 PESTEL POLITICAL and LEGAL In 2012, Asian firms from China, Hong Kong, Japan and Australia faced a steep decline in stock prices due to the Greek political crisis baring to the fact that Asian firms are a major market player in Greece (Sampson, 2012; Papaconstantinou, Tsagkanos & Siriopoulos, 2013). AJRB will indirectly face the effect of the instability in Greece as 50% of their  production is exported, especially into Australia, which is one of the countries where they have managed to establish their presence (Tan, 2010). Furthermore, AJ RB’s presence in the Middle East is another risk that they face from unresolved issues such as the Iranian nuclear  program that faces threats from the United States and Israel and the Syrian political turmoil (Sengupta, 2012). In addition, the Malaysian political situation is very tense due to the general elections which are going to be held in the near future causing AJRB to face a dampened market share due to investors being extra cautious of investing in Malaysia (Ramasamy, 2012). Appendix 1 shows that many Middle Eastern and certain other countries have increased their import duty on steel since 2008 and 2009, which increases costs for AJRB for exporting their product. Moreover, in November 2008 the Malaysian government implemented new technical regulations on 57 steel products for which it requires certificates of approval to ensure companies follow the Malaysian standards set by them (OECD, 2009). This requirement therefore heightens the import barrier and helps domestic steel firms reduce competition from overseas firms. In addition, the anti-dumping policy will further help in  protecting the interest of local firms such as AJRB.
We Need Your Support
Thank you for visiting our website and your interest in our free products and services. We are nonprofit website to share and download documents. To the running of this website, we need your help to support us.

Thanks to everyone for your continued support.

No, Thanks