asa

1. PART A
The businessworldisnodifferentthanalarge forest.There isneithercleardirectionnoranswers,
nothingbutthe fact that you are lost.Henceforth,the importantstartoff inthe businessworldisto
have a determinedmindtosetone’sownfuturistic goal andcreate one’sownpath.That futuristic
goal is knownas yourvisionwhereaspathwouldbe yourmission.
Of course,visionandmissionare creative thoughtsthatare thoughtup inone’sownmindandso
longas the founderknewexactlywhathe or she was aimingfor,he will choose the correctpathto
reach whathe have vision.However,whatif the founderisnotthe onlyone walkingdownthe path?
What if he isleadinganorganization?How ishe goingto conveyhisvisionandmissiontohis
employees?
Some smallercompaniescouldeasilyconveytheirvisionandmissionverballytohisemployeesand
managers.Shouldthe amountof employeesare small andsimplisticmanagerial style,the visionand
missioncouldbe easilyconveyedverballywithoutanyissue.Solongasthe explanationremains
consistentandunderstandable,the employeesshouldunderstandthe company’svisionandmission
througha systematiccommunicationsystem.However,if saidcompanywere togrow larger,
verballyconveyingthe messagetothe employeeswouldbe harder.Asthe message passesdown
fromfurtherdownthe hierarchyof organization,the informationlostincreases.Therefore,avision
and missionstatementisdesignedandwrittentofullyexplainwhatthe companyhope toachieve as
well ashowto.
By itsdefinition,accordingtothe businessdictionary,avision statementis:
“An aspirational description of whatan organization wouldliketo achieve oraccomplish inthe mid-
termor long-termfuture.Itisintendedto serves asaclear guide forchoosing currentandfuture
coursesof action.”
Whereasmission statementcouldbe explaintobe:
“A written declaration of anorganization's core purpose andfocusthatnormallyremains
unchanged overtime.Properlycrafted missionstatements
(1) serve asfilterstoseparate whatisimportantfromwhatis not
(2) clearlystate which marketswill be servedandhow

2. (3) communicate asense of intendeddirectiontothe entire organization.”
Andafterthe definitionof mission,the dictionary continuedbycomparingthe difference between
missionandvisionbystatingthe following:
“A missionisdifferentfroma vision inthatthe formeristhe cause andthe latteristhe effect;a
missionissomethingtobe accomplished whereasavisionissomethingtobe pursued forthat
accomplishment.”
In Mark Lipton’s Demystifying theDevelopmentof an OrganizationalVision,he suggestedthatVision
of a companyisa combinationof Mission,StrategyandCulture.Inhisresearch,he realizedthat
mostsuccessful visiondefines amissionthatbeginsbyrecognizingthe stakeholderanddefining
whattheyexpectfromthe organization.Since stakeholdersare people relatingtothe organization,
theymustbe motivatedtocommittothe cause andsupportit actively.The methodof doingsoisto
attract the wide-ranging stakeholder and rise above the interests of any particular stakeholder group.
In anothercase,itis not advisable touse profitastheirprimarymission.Somedoesnoteven
mentionthe profitof whichthe stakeholderwouldearnif theywere tobe involvedinthe
organization.We knowthatthe visionandmissionstatementare made forthe stakeholdersof the
organizationof department.Sowhydidn’ttheyuse profittoappeal tothe stakeholdersandgain
interestfromthem?Perhapsprofitisnottrulyagood motivatingfactortopushstakeholderto
supportthe organization. There isnothingmotivatingforemployeestoworkfora cause that involve
makingmoneyforotherpeople.Instead,theyare there tocommittothe cause because the cause is
challenginglyfunoritismeaningful tothemandhelpsthemlearn.Notonlydoesitfail tomotivate
the employeestoworkforthe organization,the statementfailstodifferentiate withother
organization. A goodvisionwouldtend toexpresshow differenttheyare toothersand whythey
are special.
Mark statesthat ‘Strategydefinesthe businessinwhichacompanycompetesandthe distinctive
competence orcompetitive advantage thatitiscurrentlyhasor plansto develop.’Strategyis
importantina sense thatan organizationwouldbe abodywithout logicif there isnostrategy
planned.Missionstatementshouldinclude andexplain the strategyprinciplesrequiredtoachieve
saidmissionsothat the managerial departmentisclearandcertainas how the company wantsto
achieve the ideals.

3. Notonly doesthe statement need tostate the purpose andthe strategy, italso needstostate and
explainhowthe organizationshouldbehave toachieve theirgoal.Forthe reasonthatgoal and
strategydo nothave the powertofurtherenhance performance unlesstheyare implementedinthe
formof action,policyandjob-relatedbehaviouralguidelines.Thisprovidesaclearerideaof what
kindof organizational culture the organizationanticipatedandemployeesknow whatisexpectedof
them. By instillingastrong,explicitsenseof missionandsharedvaluesandworkedconstantlyto
reinforce deeplyingrainedbeliefs,acompanycouldinstitutionalize the culture developedevenatits
formative period.Thisisdue tothe factthat theyconstantlycommunicatedtheirdesired
characteristicof the culture throughvariousmediaandfinallyreinforcedhow theyexpectedpeople
to behave inthe organization.Thisrequiresaconsistent,clearandsharedvaluesaffectpersonal and
organizational effectivenessleadingstakeholderstounderstandthe culture of the organizationand
adjustthemselvestosuitthe organizationalneeds.Thusnotonlyincreasesthe profitof the
organizationbutalsoincreasesthe satisfactionof jobandcommitsmore to the organization.
In anotherresearch,KantrabutraandGayle noticedthata good visioncommonlysharessimilarand
identifiable characteristics.
1. Conciseness
A vision’sconcisenesscouldbe seeninthe lengthof the vision.Whilemosteffective visionscontain
about11 to 22 words.There are some that manage to pull off lesserthan5 suchas Human Rights
Campaign’s“Equalityforeveryone”whichcontainonly3wordsor more than 28 wordsexempli
gratia AmnestyInternational’s“AmnestyInternational’svisionisof aworldinwhicheveryperson
enjoysall of the humanrightsenshrinedinthe Universal Declarationof HumanRightsandother
international humanrightsinstruments.” with31words.While the lengthof astatementdoesnot
exactlydefineagoodstatement,itdoes,however,promote memorabilityandclarity.
2. Clarity
Claritycouldprove howeffective avisioniswhenitismade understandable inafew read.There
neednotpresentation,external explanationordiscussion.Itshouldpointdirectlyatwhatthe
organizationhope toachieve inthe future.
3. Future Orientation
We knowthatvisionsare made as a goal to reachin the future butwhat are we once we have
successfullyachievedsuchagoal?Visionstatementshouldnotbe aone-time,particulargoal that
couldbe easilymetandthen forgotten.

4. 4. Stability
A stable visionstatementmeansthatthe visionisnotaffectedbythe advancementof technology,
society,social trendsoreconomicfluctuationandshouldbe able tobe flexibleenoughtowork
throughthe changes.
5. Challenge
A challengingvisioncouldprovide amotivatingfactorthatcouldmotivate employeesof the
organizationtostrive forachievement.The challenge shouldbe achievableandnotmere ‘ideal hope
or imagination’.The successof dealingwithchallengeprovidessatisfactionandmotivationgreater
than simplyincreasingtheirpay.
6. Abstractness
Most visionsare abstract.Not onlydoesanabstract visioncouldprovide abasisforsupportfroma
broaderbase of stakeholders,italsoallow employeetocarry out theirduty creativelywhilestillin
the path of the founder’svision.
7. DesirabilityorAbilitytoInspire
While Kantrabutramentionthatstatementsshouldbe able toinspire stakeholderstosupportthe
organization.Kotterfoundinhisresearchthatmostsuccessful visions,ironically,donothave to be
wonderfullyinspiringandinnovative. Currentbusinessestend tohave areallydull,mundane vision,
mostof the time withessentialideasthatare alreadyknown.
Why doesa visionfail?Whilemostcompanyororganizationshave failedbecauseof their
managerial inconsistencywiththe statementprovided,the statementitselfcouldhave some words
that eithercontradictitor provide irrelevance tothe worker.Whenastatementismade withoutthe
considerationof theirstakeholders,the wordsinthe statementwillbe deemedirrelevantand
ultimatelyignored.Thisleadsemployeestoworkinsuch a way thatwouldbe inconsistentwiththe
goal set bythe founderormanagers.The one wayto solve sucha problemwouldbe through
informal, formal or negotiation between manager and employees. Without a proper communication,
it ishard to understandwhatthe employee’sneeds,hopesandissuesbysimplyobserving.
Managers whoignore the hostile environmentinwhichthe firmoperatesorignore itsinherent
capabilityandforma statementbasedonsuchwill leadtounbelievable vision.Aneffectso
threateningthata visioncouldnotbe takenseriouslyandoftenlaughable.Itisimportantforthe
organizationtounderstand itsweaknessandthe challengesitshouldface andmade a visionbased

5. on itto form an achievable andbelievable statement.The statementcouldbe more inspiringand
challengingbyusinga‘themversusus’style where ‘them’ couldrepresentcompetitors,hostile
environment,constraintsinthe organizationorlimitedresources.Hence,thiscouldformamore
centripetal workforce toachieve saidgoal.
In an example,Iamaboutto provide andanalyse wouldbe PepsiCo’s visionandmission. Intheir
official site,theystated;
OUR MISSION
Our Roadmap starts with our mission,which is enduring.It declares our purposeas a company and serves as
the standard againstwhich we weigh our actions and decisions.
 To refresh the world...
 To inspiremoments of optimismand happiness...
 To create valueand make a difference.
OUR VISION
Our vision serves as theframework for our Roadmap and guides every aspectof our business by describing
what we need to accomplish in order to continue achievingsustainable,quality growth.
 People: Be a great placeto work where people are inspired to be the best they can be.
 Portfolio: Bring to the world a portfolio of quality beverage brands that anticipateand satisfy people's
desires and needs.
 Partners: Nurture a winningnetwork of customers and suppliers,together we create mutual,
enduring value.
 Planet: Be a responsiblecitizen that makes a difference by helping build and supportsustainable
communities.
 Profit: Maximizelong-term return to shareowners whilebeing mindful of our overall responsibilities.
 Productivity: Be a highly effective, lean and fast-movingorganization.
LIVE OUR VALUES
Our values serveas a compass for our actions and describehowwe behave in the world.
 Leadership: The courage to shapea better future
 Collaboration: Leverage collectivegenius
 Integrity: Be real

6.  Accountability: If it is to be, it's up to me
 Passion: Committed in heart and mind
 Diversity: As inclusiveas our brands
 Quality: What we do, we do well
Startingoff,PepsiCohave seeminglymixedmissionstatementwithvisionstatement.Asavision
statement,the “mission”stated isconsiderablyabstract.Itisalsochallengingbutnotthe type that
wouldmotivate employeestoworkbecause itisnot trulyemployeeorientedbutratherfocusedon
customer.While itisconsiderablyconcise,itis notexactlyclear.The message presentedinthe
website,if withoutproperdiscussion,wouldleadtomisconception.Forexample,torefreshthe
worldcouldeithermeanthattheircompanyisworkingforthe environmentoritcouldmeanthat it
hopedtochange the worldtheyperceive dull.Also,itisimportanttorememberthe factthat
PepsiCofocusonbeverage anditisclose to impossible to‘inspire momentsof optimismand
happiness’throughjustbeverage alone.Usuallysuchastatementwouldbe writtenby
entertainmentcompaniessuchasDisneyorNikelodeon.
On the otherhand,the overall “visions”are notspecificanddoesnotspeakPepsiCo’sname loudly.
The missionstatedis notentirelydifferentwithothercompanyina sense thatthe mission isreally
general.Toprove mypoint,I will reveal the factthatI am lyingthatthisis PepsiCo’svisionand
missionstatementanditis,actually,CocaCola’sstatements.If the audience failedtorealize thatitis
Coca Cola’svisionandmissionstatementthenthe article has proveditspoint. Onone side of the
coin, mission iseverlastingandstable. Unfortunatelythe statement alsocreatesirrelevanceto
employeeswhenthe missionstatedare more orlesswhattheyhave alwaysbeenandshouldbe,
withouta mission statement,doing.Exempligratia,the partwhere the statementmentions“tobe a
responsible citizenthatmakesadifferencebyhelpingbuildandsupportsustainablecommunities”is
irrelevantinasense where itissomethingeveryone ascitizenwereeducatedandtaughtto.Itis also
irrelevantinawaywhere that Coca Colaisnot a companythat dealswithenvironmenteventhough
it couldbe an add-onto the company’sactivitylist. Finally,eventhoughthe visionstatementisclear
withwhattheywantedbuttheyare not concise withtheirvisionstatement.The visionstatementby
firstglance lookstiringtoreadand alsonot memorable withtoomanysub-dividedparts.
I suggestthatCoca-Colamay have a slightlybettervisionstatementif theyusedone of the mission
statementormixingtwolike the examplesIcreatedbelow:

7. “Bring to theworld a portfolio of qualitybeveragebrands bearing thelogo of Coca Cola that
anticipateand satisfy people'sdesires and needsaswell as nurturea winning networkof customers
and suppliers,togetherwecreate mutual,enduring value.”
The statementabove wasmade bymixingportfolioandpartnertoindicate the qualityof abeverage
that Coca-Colacreatesandalsostatingthe importance of stakeholders. Supposethatthe managers
of Coca-Colavaluesthe employeesmore thanthe customerintheirorganization,the visioncould
alsobe writteninthiswaybycombiningportfolio,productivityandpeople:
“Bring to theworld a portfolio of qualitybeveragebrandsbearing thelogo of Coca Cola that
anticipateand satisfy people'sdesires and needsby providing a great place to workwhere peopleare
inspired to be the bestthey can be and thuscreate a highly effective,lean and fast-moving
organization.”
In a nutshell,there isnotrue wayto write avisionormissionstatement.Itispurelysubjecttohow
the organizationoperates.Itisnotimpossible towalkinthe huge forestwithoutaproperpathor a
futuristicgoal andshouldbe remindedthatvisionandmissionare onlyguidelinestoguide
employeesandemployertowalkinthe rightwayto success.There are timeswhere guidelinesare
the reasonwhere one wasledto failure while there are alsotimeswhere guidelinesare the reason
to success.
Reference
1. Lipton,M. (1996). Demystifyingthe Developmentof anOrganizational Vision...Retrieved
October14, 2015.
2. Sooksan,K.,& C.Avery,G.(2010). The powerof vision:Statementsthatresonate.Retrieved
October14, 2015.
3. Mission,Vision&Values.(n.d.).RetrievedOctober14,2015, fromhttp://www.coca-
colacompany.com/our-company/mission-vision-values
4. What is a visionstatement?definitionandmeaning.(n.d.).RetrievedOctober14, 2015.
5. What isa missionstatement?definitionandmeaning.(n.d.).RetrievedOctober14,2015.

8. Part B
*The followingholdsanumberof presumptionsmade onABCcompany.*
Similartoowninga piece of candy,re-modifythe candyandthensellingthem.Property
developmentis,bydefinitionof collinsdictionary:
“The business of buyinglandandbuildings andthenmakingimprovements tothemsothat their
sellingprice exceedsthe price paidforthem.”
While insimplicity, we wouldgeneralize property developmentasa single industry buttoMichael E.
Porter, property developmentisnottruly anindustry. Itis an industry solarge that he regardssaid
industry asa whole sectorof the economy. Tofurtherunderstand the reasonwhy he claimssuch,
we can perhaps analyse afew company that isinvolved inproperty development.
From myresearch, I realized thatmostlarge company donot purely work inthe industry of property
developmentalone. Theirprojects oftendiversify tootherindustries suchascommercial,
engineering, construction, orevenbiotechnology. Let’stake alook at a few examples:InYTL, the
company isfamous for itswide diversification of business industry. They controlled the value chain
of the construction industry byinvestingonactivitiessuchasutilities, construction contracting,
operation &maintenance onhighspeedrails, cementmanufacturingandcarbonconsulting. They
alsoownhotels& resortand evenincubate technology. ForSunway, onthe otherhand, isnotonly
Malaysia’s top ten property developer but alsoexpanded into hospitality, resort and spa, Water Park,
retail shoppingmall, medical centre, education group, construction industry, manufacturerof
vitrified claypipesandjackingpipesandquarry. Inanotherplace, we alsohave Gentingwhichhold
business forplantation, biotechnology, hotel andtheme park. Towhicheachof those firms have
theirownfundamental attractiveness basedonthe visionandmissionstatementthey devised
beforehand. Fromhere, Ihope youcanbriefly understand the scale of these companies Istatedas
well asthe industryof property development.
In orderto analyse the competitive advantageof ABCCompany againstpowerful competitors such
as YTL and Sunway, itisonly natural of me to use Michael E Porter’s Competitive five force model.
Before I beginwiththe analysis,Iwill needtobriefly explainthe fiveforce model. Inorderto
accurately understand the five forces, we will explainthe fiveforcesbasedonthe creator’s notes:

9. “The force determines the ability of firmsinanindustry toearn, on average, rate of returnon
investmentinexcess of the costof the capital... Itdetermines itsprofitability because they influence
the prices, costs and required investment firms in an industry, the elements of return oninvestment.”
Michael E. Porter, Competitiveadvantage:Creating and sustaining superiorperformance
The forcesinvolves;Threatof entry andexit, Bargainingpowerof buyers, Bargainingpowerof
suppliers, Threatof substitutes, Intensity of rivalry andtosome researcher, Complementors. Simply
speaking, the greateranyone of the force, the greaterthe threatwouldbe tothe firmwhile vice
versawould create opportunities. InPrincipals of Managers, Hill andMcShane explained thatthe use
of external environmentistoprimarily searchforopportunitiesandthreat. Itisessential to
understand the external environmentisnotentirely governed bythe five forcesbutmerely one of
the two subdivided partof the subject, the otherwhichisthe general environmentwhichconsists of
political andlegal forces, macroeconomicforces, demographicforces, sociocultural forces
technological forcesandinternational forceswould be mentionasitis critical tothe analysis of ABC
Company’s environment. Byfurtherevaluatingthe internal environmentof the companyincluding
organization, resources andemployees, the manager, beingaffectedbythe internal environmentof
the company, will choose differenttype of actions andstrategy basedonit because itisbetterto
manage the company basedon itsstrengthand weakness inathreateningoropportunistic
environment. Therefore, bycombination of internal andexternal environmentof the firm, we will,
by the endof this analysis, evaluate the SWOT(strength, weakness, opportunity, threats)of the firm.
External Environment
Before the analysis, we mustfirstanswerif the property developmentliesinthe followingcentral
concerns. Isproperty developmentanattractive industry forlongtermprofitability? Whatare the
factors determiningit?Since notall industriesofferthe same amountof opportunities forcontinual

10. profitability andthe permanentprofitability of property developmentisanimportantingredientin
definingthe profitability of afirm. Or perhaps, itisa determinantof relative competitive position
withinanindustry?Inmostbusiness, some firmsare basically more profitablethanothersregardless
of whatthe average profitability of the industry maybe.
Historicallyspeaking,the threatof entryislow of propertydevelopment.There aren’talotof
companythat doespropertydevelopmentbackthenbecause Malaysiawasstill developing.Due to
that, mostcompanycan easilyenterthe industrywithoutthe needtocompete withothercompany.
Evenwhentheydoneedto,theyhave little tonoworrieswithlarge plotof landto invest.Itwasalso
a time where Malaysia’seconomyisrisingandthisincreasesthe expenditure rate of the buyerand
thuspeople canaffordto buyor investinlandproperties.
However,astime passes,the barrierof entryincreaseswithpowerfulpropertydeveloperssuchas
YTL, Sunwayand so onbeginto developimportantareassuchas Central regionof Malaysiaincluding
KualaLumpur andSelangor.Assuch,the initial costto compete againstlarge companysuchas these
will be higherespeciallyif ABCCompanyhope tobe as diverse asthe followingthe companies.Due
to this,ABCCompanywill notgaincost advantage againstthese competitorsandinfact,decreases
the economyof scale for ABCCompany.Notto forgetthat the currencyexchange rate alsoaffectthe
entryof companyina way where the reductioninthe value of MalaysianRinggitincreasesthe cost
of investinganddevelopinglandonothercountry.Onthe otherside of the coin,foreignerswill be
more interestedinbuyingalandin Malaysiawhichthe companysomehow ownbecause the
propertyismuch cheaper.Due tothe fact thatboth YTL andSunwayare propertydevelopment
industriesthathave highreputation,customerswill tendtochoose eitherone of the twoevenata
higherprice due tothe trusttheyhave observe overthe companyor have gainedfromthe company
whichwill create agreaterwall of entryto the propertydevelopmentworld.Conversely,shouldABC
Companysuccessfullyovercomethe barrierof entry,the companywill face lessercompetitorsince
the barrierof entryof the industryisconsiderablyhigh.
Assume thatABC Companyinvestinthe value chainof the industrysimilartothe scale of YTL, the
exitbarriersignificantlygreater.Thisisbecause the fixedcostof closingdowncapacitysuchas the
financial chargesthatmustbe takentoshut downa firmand layoff employee ishigh.The one easier
way to exit the competition, if ABC Company persists, is to sell their own company to other company.
That way,theycan converttheirbusinesswithoutheavyloss.
Tenantshave gainedpoweroverthe yearsas livingstandardsincreases.Theyare beginningto
demandmore yetat a cheaperprice withoutworryingif theycan’tgetthe property.Evenbythe

11. yearof whichthe journal made byPorterregardingcompetitiveadvantage andproperty
developmentindustry,he foundoutthatbuyershave beensmarterandare gainingpower.In
principlesof managing,buyersare weakestwhen
1. They are plentiful andpurchase insmall quantities
2. They have little choice tochoose amongfirm
3. They cannotswitcheasilybetweenthe offeringsof differentfirms
Firstof all,there isindeedalotof landin Malaysiaand tenantscanonlybuy a few property.
Secondly,since propertydevelopmentindustrytendtofocusondifferentarea;if the tenanthasa
specificreasontochoose thatarea, theywouldhave onlyone firmtochoose from, otherwisethey
wouldneedtomove toanotherarea whichdecreasestheirpowersignificantlyonthispart.Finally,
the tenantswill needtosigncontractwiththe developerwhichinvolve owningthe landforaset
amountof yearswouldmeanthatthe contract formsswitchingcostsandlockedintenantsintothe
propertytheyboughtevenif otherenterprise offerabetterpropertyorbenefits,allowingcompany
to increase the price of the product.While switchingcostdoespromote customer’sloyaltyand
demote the act of change,it doesincrease the time of considerationneededbybuyers.When
buyers,psychologically,spendmore time thinkingaboutthe riskof buyingthe property,there isa
higherchance of change of mindcomparedto one withoutswitchingcost.
Most of the propertydevelopmentcompaniescontrol the powerof suppliersbycontrollingthe
value chainitself.Forexample,YTLcontrolledthe valuechainbyprovidingcementandalsotheir
constructioncontractsand Sunwaycontrollingthe value chainbycarryout theirquarry.A company
can avoidprovidingsuppliersby:
1. Purchasingthe productinlarge quality
2. Allowingfirmtochoose betweenmultiplesupplier
3. Cost of switchingbetweensupplier islow
4. Notdependentonanysingle supplierforimportantinputs
In comparisontowhat ABCCompanyisfacingnow,it may be costlyto purchase landinlarge area to
developbutitisdefinitelyanadvantageousacttodo so because astime passesmore landwouldbe
developedbyotherdevelopersleavingABCCompanylessergeographicadvantage toworkwith.ABC
Companyshouldalsoinvestgloballyandnotbe dependentonMalaysiaasa landsupplier,while due
to currencyrange itis quite impossible todoso butit isalsogeographicallyadvantageous.Exempli
gratia wouldbe YTL’s investmentinJapansuchas NisekoVillageof HokkaidoandMuse Saint-Tropez

12. of France.Notonlydoesthisdecrease the dependencyof asingle supplier,thisalsoincreases
differentiationwhichisagenericstrategythatpromotesthe company’suniqueness.
Propertydevelopersbasicallyhave nothingmuchtoworryaboutthe threatof substitution.There
are close tozero substitutionof landdevelopmentandthusmakingcompanieslike ABCCompany,
YTL and Sunwaychargingplotof landat a higherprice.
Porterinclude the intensityof rivalryisaffectedbyfourfactors;the nature of the product,demand
and supplyconditions,the coststructure of firmsandthe competitive structure of the industry.
Generallyspeaking,the propertydevelopmentindustrysufferscommoditylikeproduct.Due tothis,
mostof the developerwill needtobringthe price downinorderto lookattractive tothe tenants.
One of the methoddevelopersolve the problem wouldbe throughdifferentiationof propertywhich
couldabandonthe ideaof loweringcostto gaincost advantage (whichironicallyisthe disadvantage
of the competitivesituation).Differentiationcanperhapsbe gainedthroughthe facility
managementof the propertyorarchitectural design.WithMalaysianeconomygrowthare dropping,
the expenditure of Malaysianwilldecreaseespeciallywiththe implicationof GovernmentService
Tax. Due to the decrease inexpenditure,there islessdemandforproperties.SinceABCCompany
wouldneedtospendanamountof fix costto reach the scale similartothat of YTL, the excess
capacityof the situationwill giveABCCompanyasignificantthreat.
A strategyrecommendedisthatABCCompanypushoff one of the fixed costtoanother
organization.Forexample,YTLwill have lowerfixedcostif theyletanothercompanytomanufacture
cement.ABCCompanyalsosuffersafragmentedindustrywithinthe competitivestructure asmost
of the propertiesare commoditylike.Unless astrategyisadopted,the one wayABCCompanycan do
isto reduce the price whichpost nofavourin profitability.
The final force to discusswouldbe complementors.Thisforce isnotofficiallymentionedbyPorter
himself,itwasmentionedbyPrincipal of Management.Complimentorsare firmsthatprovide goods
or servicesthatare complementarytothe productproducedbyenterprise inthe industry.Inthis
case,utilitiessuchasfromSYABASandTNB are examplesof complimentorsforwaterandelectrical
supply.While itisnotsignificant,itdoesreduce the costof utilityforABCCompanyand thus
increasesopportunityforthe companytosell propertyasa package.
Internal Environment
A goodvisionandmissionstatementwouldbe able toprovide abetter internalorganization.
Throughthe statementalone,notonlydoesitmotivatesemployeesbutalsoprovide adirectionof
howmanagersshouldleadtheiremployees.ABCCompanyencouragesandrewardhigh

13. opportunitiesandthreats,makingthe organizationthe company’sstrength.Thankstothe company
founder,ChongAhBeng,changedthe hierarchical andbureaucraticsystemtoameritocraticsystem
and successfullytransformaweaknesstostrengthof the company.
Employeesof the companyare interviewedandselectedtobe the mostknowledgeable,skilledand
capable.Most of themderive fromwell-knownuniversitiessuchasUTM andTaylor’sUniversityfor
the job.The employeesare giventrainingeveryweektoensure theygetthe workdone as
accordance to whatthe companyhope to achieve.Itisensuredthatnotonlythe employeesare
disciplinebutalsomotivatedandpassionate toworkforABC Company.
ABC Companyhassufficienttangibleresourcestocarryout the task needed.The propertytheysell
are usually welldesignedbyafamousarchitectandthe land theyownare geographicallystrategic
and receive appraisal fromthe famousFengShui professional,LilianToo.ProvidingABCCompanya
more inimitable,non-substitutable,rare andvaluable resource inthe list.
In conclusion,ABCCompanyisfacinganintense rivalrywithotherlarge companiesdespite having
the bestof theirinternal strengths.Howeveritisimportanttorememberthatthe environmentin
the businessworldisalwayschangingeitherforthe worstor the best.Anystrategicimplementation
may or may notchange the entire environmental force.Thisrequiresacareful andmore thorough
analysisbefore anystrategicactionbe taken.
Reference
1. Hill,C.,& McShane,S. (2008). Principles of Management(InternationalEdition2008 ed.).
McGraw-Hill International Edition.
2. Porter,M. (1985). Competitiveadvantage:Creating and sustaining superiorperformance.
NewYork:Free Press;.
3. Porter,M. (1980). Competitivestrategy:Techniquesforanalyzing industriesand competitors.
NewYork:Free Press.
4. Porter,M. (n.d.).COMPETITIVESTRATEGY ANDREAL ESTATE DEVELOPMENT. REMARKSTO
THE 1989 HARVARDBUSINESSSCHOOLREALESTATE SYMPOSIUM1.RetrievedOctober17,
2015, fromhttp://www.hbs.edu/faculty/Publication
Files/Porter_Strategy_Real_Estate1_456d5de5-a5af-4001-b439-789044972e6a.pdf
5. PropertyDevelopment.(n.d.).RetrievedOctober17, 2015.
6. YTL CORPORATION.(n.d.).RetrievedOctober17, 2015.

14. 7. GentingPlantationsBerhad.(n.d.).RetrievedOctober17,2015.
8. "We Are Sunway"Corporate Video2013. (n.d.).RetrievedOctober17,2015.
9. IJMLand - MalaysiaPropertyDeveloper.(n.d.).RetrievedOctober17, 2015.