FACULTY OF BUSINESS AND MANAGEMENT

BACHELOR IN BUSINESS ADMINISTRATIVE (HONS.) IN FINANCE

MGT657
STRATEGIC MANAGEMENT

INDIVIDUAL ASSIGNMENT:
CASE STUDY – PAST YEAR COLLECTIONS

PREPARED FOR:
SIR SHAMSUL AZREN MOHD SHUKUR

PREPARED BY:
NURUL AYUNI BINTI BAHARUN (2018694162)

CLASS:
BA242 5A

SUBMISSION DATE:
7TH AUGUST 2020
Table of Content

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1 Past Semester June 2019 1-3

2 Past Semester December 2019 4-6

June 2019

Case Study of Seng Group.

Question 1:

a) Describe Seng Group’s vision.

A vision statement is a statement of the goals of the company, intended to
direct its internal decision-making. This also refers to the company's road map,
showing what the company wants to become by setting a specific course for the
growth of the business.
Seng Group is recognized as the pioneer and market leader in the retail
jobber or the branded marketer business model. Thus, Seng Group’s vision is to
retain being the market leader in the petrol station development sector.
b) Based on the case study, describe how the company’s philosophy can help to
enhance its mission.
Company philosophy stands for the fundamental principle that business
people are supposed to hold and be motivated by, for example, informal unwritten
guidelines on how people can act and treat themself.
Seng Group’s philosophy which is driven by the managing director’s father,
Datuk Lim Lee Seng has been always to serve the community irrespective of where
they live. It is also part of the company’s corporate social responsibility (CSR). This
philosophy can help to enhance the company’s mission that is to dedicate in
providing a one-stop solution for all petrol station needs. In addition, Seng Group also
dreams to be the company that is determined to provide equal benefits and support
to both the urban and rural communities.

Question 2:

a) Explain two (2) opportunities of Seng Group in its business.

The first opportunity of Seng Group is to open another petrol station in the
small town of Batu Balai in Jerantut, Pahang. Since the villagers have to travel either
25km to Jerantut or 35km to Benta just to fuel up, Seng Group finds this is its
opportunity to open up a petrol station that could bring success to the company.

Other than that, Seng Group that was established in 1971 as a Mobil petrol
station operator in the remote town of Mentakab, Pahang, has seized the opportunity
to multiply the petrol station network, as well as venture into other related business
like wholesale of petroleum products, bunkering, and providing a complete solution to
the investor or landowner to build petrol stations. As a result, the company has

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 become the authorised dealer of BP Petrol Company and Seng Group is growing
since then.

b) Explain two (2) strengths of Seng Group in its business.

The Seng Group continues to grow its business, with 370 petrol stations currently
in operation, and the number will continue to increase as they intend to open another
station across Malaysia and explore opportunities to enter the overseas market. It
would help them achieve further profits or profitability.

Moreover, Seng Group has more than 20,000 acres of oil palm plantation since it
started the business in the 1990’s in Sabah. After 20 years in the industry, the
company purchases another plantation in Kelantan which is 6,000 acres. Seng
Group also obtained highly growing numbers of fruit yield per acre as it always above
the market average.

Question 3:

Discuss with example three (3) types of strategies taken by Seng Group.

The first strategy implemented by Seng Group is market development. The concept
of market development is the expansion of current goods or services into new geographic
areas. For instance, Seng Group has expanded its business in both rural and urban area.
According to the case study, the company has opened its 371 station near Port Dickson
which is a convenience for the locals. The managing director of Seng Group, Datuk Seri
King Lim Chin Fui also plans to expand its petrol station business both in Malaysia as well as
overseas.

Secondly, product development. Product development is a technique that aims to

improve revenue by enhancing or changing existing goods or services. For instance, Seng
Group has diversified into the development of the commercial property. As a result, their first
development project was in Sg. Besi, Kuala Lumpur. Not just that, the company has
developed residential, shopping malls, factories and its core business which is petrol
stations.

Lastly, Seng Group implements a related diversification. Related diversification

happens when the organization incorporates or extends its current product line or markets.
In the sense of associated diversification, the organization promotes the sale of its products
by manufacturing complementary goods or providing complementary services. For instance,
Seng Group has a transport fleet to deliver products to service stations around Malaysia.

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The company’s aim in transportation is to ensure that their products are successfully being
distributed to the state destinations.

Question 4:

Discuss two (2) importance of R&D factors that can be applied to any two (2) of Seng
Group’s major business.

Research and Development (R&D) is a critical component of many companies. If

properly designed and well used, it allows the company to create and improved capital from
time to time. The goal is to develop new or enhanced technology that can provide a
competitive advantage at the level of a business, industry, or national level.

Research and development are of great significance in industry, as the level of

competition, manufacturing processes and methods is growing rapidly. This is of particular
importance in the field of marketing, where businesses keep an eye on rivals and consumers
in order to keep up with new developments and to understand the needs, desires and
wishes of their consumers.

Based on the Seng Group’s aim to provide fuel, the company started a delivery
services to deliver products throughout Malaysia. Research and development are necessary
in order to gain a competitive advantage, which is to concentrate on meeting consumer
needs through management initiatives to tackle price rates, market volatility, and inventories.
This research and development shows a positive impact on the company since it has grown
in its services for delivering its petroleum products.

Moreover, the Seng Group is investing in research and delevopment to diversify its
business. Apart from the petrol station business, the company also diversified into the
development of commercial property, oil palm plantation, livestock farming, and
transportations. More interesting, the Seng Group currently provides supplies of oil to states
such as Selangor, Pahang, Kedah, and Penang. This shows that the R&D is successfully
generated more profits for the company.

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December 2019

Case Study of Mah Sing Group Berhad

Question 1:

Based on the given case above, develop a mission statement on any two (2)
components of Mah Sing Group Berhad.

The case study stated that Mah Sing is committed to product quality, customer
satisfaction, positive work culture and the well-being of employees. Community development
and the best corporate governance practices are also very important to the Group.

As for the well-being of employees, Mah Sing Group Berhad is a concern for its
employees and the company treated its employees as a valuable asset for the company.
Community development is important since the company nourishes the public image
because they are a response to social, community and environmental concerns.

Question 2:

a) Discuss two (2) external forces faced by the Mah Sing Group’s residential
portfolio that can influence the business.
The first external force faced by Mah Sing Group is the political, legal, and
government forces. The growing amount of political, legal, and legislative powers that
can affect a corporation today through supervision, taxation, and legislation. For
example, Mah Sing Group's property growth is dedicated to three specific fields,
including the development of residential, commercial, industrial, and hospitality
portfolios, which is aligned with the United Nations Sustainable Development Goals,
which is driving the industry by sustainable investment.
The second external force faced by Mah Sing Group is the technological
forces. The technical capabilities include the array of emerging innovations that have
driven industry today. The Internet is transforming the essence of a market that could
pose an advantage or a challenge to a corporation. For example, Mah Sing Group is
inspired by technology in designing the features of smart homes for their property
growth.
b) Explain Porter’s forces of potential entry of new competitors for Mah Sing
Group Berhad.
When a new competitor will quickly reach the market, the degree of competition
would increase. It can pose a danger to other companies in the industry. Mah Sing
Group has to develop technologies and technical know-how in its company in order
to reduce the danger faced by new competitors. The organization also earns

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 customer loyalty by dedication to product consistency and consumer service. In
addition, Mah Sing Group needs to recognise possible risks to new companies, track
their approaches and build on their existing strength and opportunities.

Question 3:

Discuss three (3) strategies implemented by Mah Sing Group Berhad with relevant
examples.

The first strategy implemented by Mah Sing Group Berhad is market development.
The concept of market development is the expansion of current goods or services into new
geographic areas. For instance, Mah Sing Group’s project spread throughout Malaysia’s
economy and property hotspots, namely Kuala Lumpur and the Klang Valley, Johor Bahru,
Penang Island, and Kota Kinabalu, Sabah.

Secondly, product development. Product development is a technique that aims to

improve revenue by enhancing or changing existing goods or services. For instance, Mah
Sing Group through their property which is smart home features enhance comfort and
convenience with state of the art security features to ensure unshaken quality by the outside
world.

Lastly, the partnership. The partnership is characterized as the collaboration of two or

more parties together towards the creation of a project or operation. For instance, in the
case of Mah Sing Group, the company has built a partnership together with EduCity
Iskandar Malaysia. The objective is to come up with student accommodation for Iskandar
Malaysia’s education hub that supplies 183 fully furnished units that cater to approximately
370 students.

Question 4:

Explain three (3) social responsibility issues of Mah Sing Group Berhad and provide a
relevant example for each issue.

The idea of social responsibility suggests that a private company has responsibilities
to society that go beyond profit-making. Corporate social responsibility (CSR) is the duty of
the company to consider the needs of its clients, staff, shareholders, societies and the
environment and to consider the social and environmental implications of its business
operations. Through incorporating CSR into key business processes and the management of
stakeholders, companies will accomplish the ultimate goal of generating both social impact
and corporate value.

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 For example, The Mah Sing Group is committed to building a strong relationship with
the community that led to the establishment of a charity, and the Mah Sing Foundation is
committed to help and benefit the less privileged.

Besides that, Mah Sing Group will continue to create an eco-sensitive and
environmentally sustainable housing project for homebuyers to experience life amid
greenery in harmony with nature.

Lastly, Mah Sing Group is also dedicated to product quality, customer loyalty, a
healthy working atmosphere, and the well-being of its employees. Community development
and best corporate governance practices are also key to the group's performance.