Strategic Management Individual Analysis

1. SCHOOL OF ARCHITECTURE, BUILDING AND DESIGN BACHELOR OF QUANTITY
SURVEYING (HONOURS)
MODULE: STRATEGIC MANAGEMENT
MODULE CODE: MGT 60703
INDIVIDUAL ASSIGNMENT
NAME: HAROON FALEEL
STUDENT ID: 0322197
LECTURER: Mr. Leong Boon Tik
DATE: 31ST
October 2018

2. PART A- VISION & MISSION STATEMENT:
Vision statement:
A vision statement describes what a company desires to achieve in the long-run,
generally in a time frame of five to ten years, or sometimes even longer. It depicts a
vision of what the company will look like in the future and sets a defined direction for
the planning and execution of corporate-level strategies. A vision statement may
apply to an entire company or to a single division of that company. Whether for all or
part of an organization, the vision statement answers the question, "Where do we
want to go?"
Mission statement:
A mission statement is a short sentence or paragraph used by a company to explain,
in simple and concise terms, its purpose(s) for being. These statements serve a dual
purpose by helping employees to remain focused on the tasks at hand, as well as
encouraging them to find innovative ways of moving towards an increasingly
productive achievement of company goals.
A company’s mission statement seeks to define its culture, values, ethics, and
fundamental goals, and how these apply to its stakeholders. The statement reveals
what the company does, how it does it, and why it does it. A company’s stakeholders
– employees, distributors, suppliers, shareholders, community, etc. – use this
statement to align their goals with that of the company. Prospective investors may
also refer to a mission statement to see if the values of the company aligns with
theirs. For example, an ethical investor against tobacco products would probably not
invest in a company whose mission is to be the largest manufacturer of cigarettes
globally.
A company’s mission statement differs from its vision statement. While the mission
statement remains unchanged for the most part and represents who the company is
or aspires to be for the entirety of its existence, the vision statement can change and
outlines what the company needs to do to remain who it has presented itself to be. In

3. effect a company’s mission is its identity, and the vision is its journey to
accomplishing its mission.
Mission statements vary considerably from company to company. The following
examples are the mission statements of some of the trending companies as of 2017:
 Microsoft – Empower every person and organization on the planet to achieve
more.
 Bill & Melinda Gates Foundation – We see equal value in all lives. And so we
are dedicated to improving the quality of life for individuals around the world.
 Chipotle – To change the way people think about and eat fast food.
 MGM Resorts International – The leader in entertainment & hospitality - a
diverse collection of extraordinary people, distinctive brands and best in class
destinations.
 Nike – To bring inspiration and innovation to every athlete in the world.
 Walmart – We save people money so they can live better.
 Starbucks – To inspire and nurture the human spirit – one person, one cup
and one neighborhood at a time.
 Tesla – To accelerate the world's transition to sustainable energy.
 Airbnb – Belong anywhere
 JP Morgan – To be the best financial services company in the world
It is not uncommon for the largest companies to spend many years and millions of
dollars developing and refining their mission statement, with many of these mission
statements eventually becoming household phrases.
Mission statements aren't just for small or large companies. Many of the most
successful individuals, professionals and investors have taken the time to craft a
personal mission statement. These personal mission statements often incorporate
the financial, professional, spiritual, and relational aspects of life. This in turn helps
the individual to keep a healthy work/life balance that increases their personal
achievement in all of these areas.

4. What makes a good visionstatement?
Below are the main elements of an effective vision statement:
 Forward-looking
 Motivating and inspirational
 Reflective of a company’s culture and core values
 Aimed at bringing benefits and improvements to the organization in the future
 Defines a company’s reason for existence and where it is heading towards
1. They should be short – two sentences at an absolute maximum. It’s fine to
expand on your vision statement with more detail, but you need a version
that is punchy and easily memorable.
2. They need to be specific to your business and describe a unique outcome
that only you can provide. Generic vision statements that could apply to any
organisation won’t cut it (see our examples below for more on this point).
3. Do not use words that are open to interpretation. For example, saying you
will ‘maximise shareholder return’ doesn’t actually mean anything unless
you specify what it actually looks like.
4. Keep it simple enough for people both inside and outside your organisation
to understand. No technical jargon, no metaphors and no business buzz-
words if at all possible!
5. It should be ambitious enough to be exciting but not too ambitious that it
seems unachievable. It’s not really a matter of time-framing your vision,
because that will vary by organisation, but certainly anything that has a
timeframe outside of 3 to 10 years should be challenged as to whether it’s
appropriate.
6. It needs to align to the Values that you want your people to exhibit as they
perform their work. We’ll talk more about Values in a future article – but
once you’ve created those Values later on, revisit your Vision to see how
well they gel.

5. What makes a good missionstatement?
Missionstatementsare simple
The best mission statements are simple. They use common language to state
powerful purposes, clearly. There’s not too much puffy language, or overused words.
Missionstatementsare compelling
Great mission statements are compelling. They present a common purpose that
people can aspire toward. Nike is famous for its mission statement “to bring
inspiration and innovation to every athlete* in the world (*If you have a body, you are
an athlete)”. That’s because not only is it an inspiring statement, but we can also
relate to it, because Nike has also included each and every one of us as the target of
its mission statement.
Missionstatementsare measurable
The best mission statements provide some sense of a target to be reached, or at
least a benchmark that can be measured against.
Your missionstatement shouldbe the driving force
Behind everything that your team does within your company, and externally with
prospects, customers, vendors, and associates. It also shapes your internal
corporate culture.
- “to be the world’s favourite destination for discovering great value and
unique selection.”
This is the vision statement of eBay Inc.’s’ which is one of the largest e-commerce
businesses in the world dealing with consumer to consumer and business to
consumer sales through its website. From the vision statement, we can see that
eBay Inc. is setting high standards for itself and sees itself as the number one
destination for e-commerce.
eBay Inc.’s visions statement may not seem to specific to what its purpose is, for
example, when they mean “to be the world’s favourite destination” could mean many
things, it is not too specific to what the company really is. The wording of that term
could be refined and made more specific to better suit eBay.

6. The second part of the vision statement sentence “for discovering great value and
unique selection” seems too generic and doesn’t set eBay apart from other
rivals/companies. Also “unique selection” lacks substance and flair in the way it’s
delivered, it seems rather bland and boring to the eye and doesn’t seem eye
catching.
-“to be the world’s leading e-shopping destination with unmatched variety and
unrivalled customer satisfaction”
The above vision statement is the proposed and improved vision statement for eBay
Inc. It brings about a more specific and direct tone in the first part of the statement,
the second part uses more “spicier” and eye catching words to bring the viewer to a
halt. Unrivalled customer satisfaction relates to great value and the satisfaction the
customers will get from using eBay’s services.

7. PART B- ABC COMPETITIVE ANALYSIS:
Introduction:
 ABC construction Sdn. Bhd is the same size and scale of YTL Sdn. Bhd
 The scope of this study is based in Malaysia
 The scope of this analysis will cover construction and property development,
ABC construction Sdn. Bhd is a construction company. YTL is ABC’S main
competitor in the construction industry.
Company profiling:
ABC construction Sdn. Bhd provides a wide variety of services in both the public and
private sectors from pre-project consulting to the construction process itself. ABC
Sdn.Bhd is a well-established construction company specializing in building and
infrastructure works ranging from piling & foundation works, road construction,
educational buildings, factories, school, apartments & condominiums, shopping
complexes and markets. These works are complemented by industrial building
systems, steel fabrication and reinforced concrete structure.
Construction Delivery Methods:
 Design/Bid/Build (General Contractor)
 Design & Build
 Design assist

8. Pre-Project consulting:
 Preliminary site assessments
 Determination of best suited delivery method
 Conceptual cost estimating
 Preliminary cost schedule development & milestone achievement
 Anticipated cash flow predictions
 Lifecycle cost analysis
Pre-Construction:
 Value analysis
 Preliminary scheduling
 Constructability reviews
 Design-assist collaboration
 Cost estimates
 Trade contractor recommendation/selection
 Building information modelling (BIM) analysis and coordination throughout
project
Construction:
 Site supervision
 Cost control management
 Quality control and testing
 Safety management
 Trade contractor management
 BIM coordination
 Progress monitoring

9. ABC Sdn Bhd. is a multinational company that handles projects both locally and
internationally ABC is a private company hence ownership is privately held and
trading applies on the same basis.
Porters Five Forces Analysis:
The analysis of the 5 forces will be analysed and rated on a scale of 1-5, on the
position of ABC Sdn. Bhd.
Competitive Rivalry:
The construction industry is growing tenfold and competition is becoming fiercer in
this volatile market. More and more companies are introduced into the market with
the motivation to become the best. This can pose problems for ABC as the market
can become volatile. The high number of competitors may damage ABC’s position in
the market. Where rivalry is intense, companies can attract customers with
aggressive price cuts and high-impact marketing campaigns. Also, in markets with
lots of rivals, your suppliers and buyers can go elsewhere if they feel that they're not
getting a good deal from you.
“The Malaysian construction sector recorded RM35.6 billion worth of construction
works in the second quarter of 2018 (2Q18), a moderate 5.3 per cent year-on-year
growth” according to the Statistics Department. The statistics show that the
Malaysian construction industry is steadily growing every year which means there
are newer competitors every year which may affect ABC’s position in the industry.
They further stated that “The department also stated that the private sector
continued to lead construction activities, accounting for 56.4 per cent (RM20.1
billion) of works compared with the public sector's share of 43.6 per cent (RM15.5
billion).”

10. The fixed costs of operation will be high and rivalry will be high as new players
entering the market compete to sustain themselves in the volatile market.
Supplier Power:
Supply is seen as inputs such as land, labour, sub-contracting and building
materials. The procurement of land done by ABC is usually done between ABC itself
and the Malaysian government, however privately owned land is procured differently.
Dealing with the government adds to bargaining power of the suppliers because the
land is federally owned.
ABC owns several different building material companies such as Bensonite solid
surface Malaysia Sdn.Bhd, Terreal Sdn.Bhd, Hume Cemboard Industries Malaysia
Sdn.Bhd, Sunway Paving Solutions Sdn.Bhd and Kaolin Malaysia Sdn.Bhd. YTL is a
major producer and distributor of cement products. ABC has invested heavily into
these subsidiaries to ensure a continuous supply of building materials. The strength
of the distribution channel of ABC is in a strong position. The supplier bargaining
power is decreasing as the number of firms supplying building materials in Malaysia
is increasing as evident from the market review of building materials report.
In Malaysia, the construction industry heavily relies on foreign labour and so this may
pose huge problems for ABC. The competition is high when hiring labours to meet
labour requirements. There are a growing number of firms supplying skilled and
unskilled labour in the country and this gives the supplier more power and labour
costs may rise as a result of the high demand.

11. Buyer Power:
ABC provides both private and public services and so the demographics and target
are vast and have a variety. The large pool of competitors in the market provide
buyers different purchasing decisions. The number of buyers compared to firms in
the market give an advantage for the buyers and they can ultimately influence prices
in the market.
Threat Of Substitution:
ABC has developed many residential projects and although ABC has done
infrastructure and public projects, an analysis will be done on the residential aspect
regarding threat of substitution. Substitutes in the market are somewhat low, housing
projects done by ABC are mid-range to high-end developments. Substitutes of this
category are developments such as hotels, luxurious condominiums and high-end
residential units. Downgraded substitutes are low rise residential buildings and
communal housing.
Substitutes of ABC’s properties are not under threat as most consumers who can
afford mid to high range properties usually do not rent out units. This is because the
home ownership in Malaysia is higher than most in the region and surprisingly higher
than most developed countries around the world. Usually a primary buyer would
purchase ABC’s property before a secondary buyer would rent the property from the
primary buyer. Overall the substitutes of ABC don’t come off as a threat and in this
aspect ABC are in the clear as they have been in the industry for a long time.
Threat Of New Entry:
The construction industry in Malaysia is a low barrier industry, it is not very easy to
become a property developer in the industry.
The procedure and steps to become a contractor in Malaysia is regulated by act 520
and non-compliance of the must do steps could result in possible penalties. The
application process is rigorous and time consuming.

12. The strict procedures exist mainly due to strict code when it comes to regulation
concerning buildings:
The following are the reasons why:
1. Enhancing construction quality through registration of construction personnel as well
as skills and competency certification;
2. Ensuring quality of building material and compliance with standards; and
3. Contractors and site managers' responsibility to ensure safety of buildings during or
after the construction work.
It is however, fairly easier to become a property developer in Malaysia according to
REDHA (Real Estate and Housing Development Agency)
Overall, it is not easy for contracting companies to enter the market. ABC
Construction Company has been in the industry for a long time now and has built a
solid foundation and garnered a good reputation among the community and market.
In terms of cost, since ABC owns building material production companies it gives
them the added benefit and edge in the industry. However there are always new
entrants into the market and poses competition but the industry is designed in a way
that it takes years of commitment, experience and capital to be the leaders of the
construction industry in Malaysia.

13. References:
 https://www.mindtools.com/pages/article/newTMC_08.htm
 https://www.thestar.com.my/business/business-
news/2018/08/10/construction-sector-records-rm35pt6bil-in-value-in-
2q18/
 http://www.mycc.gov.my/sites/default/files/media-
review/Market%20Review%20of%20Building%20Materials%20in%20the
%20Construction%20Industry_0.pdf
 http://www.cidb.gov.my/index.php/en/legislation/act-520
 https://www.freemalaysiatoday.com/category/nation/2018/03/13/property
-market-to-improve-this-year-say-developers/
 https://articles.bplans.com/writing-a-mission-statement/
 https://www.shopify.my/encyclopedia/mission-statement
 https://www.projectmanager.com/blog/guide-writing-perfect-vision-
statement-examples
 https://whatis.techtarget.com/definition/vision-statement