Case Study 1 (Sharina Binti Sopian)
Case Study 1 (Sharina Binti Sopian)
Case Study 1 (Sharina Binti Sopian)
STRATEGIC MANAGEMENT
(MGT657)
ASSIGNMENT INDIVIDUAL 1
CASE STUDY 1
PREPARED BY:
SHARINA BINTI SOPIAN
2021944765
PREPARED FOR:
DR. ABANG HAMIZAM
DUE DATE:
31st DECEMBER 2022
1. Identify and discuss the Vision and Mission statement of PPB Group Berhad.
Explain with examples a better Vision and Mission Statement describing PPB
Group Berhad represent.
Below the vision and mission of the PBB. The PPB vision statement, given on the
corporate website, describes its goal as becoming a market leader in its core businesses by
delivering quality products and services. The PPB mission statement, given on the corporate
website, lists three objectives, which are to be achieved with social and environmental
responsibility: reinforcement of its leadership position in Malaysia, regional expansion, and
investment in activities that facilitate these goals.
PPB’s vision and mission statements are overly broad and leave the reader with little
knowledge of the firm’s business. The firm may be better off with a clear focus from both the
vision and mission to guide its business operations. Since PPB Group Berhad is a
conglomerate with a wide range of businesses that includes food production, agriculture,
waste management, and movie cinemas, they need to include those sectors in their vision.
For example, the new suggested for a better vision statement that describing PPB Group
Berhad. The new vision is to be the leader in agriculture, food production, waste management
and cinema chain by improving high quality of products and services. It is because PPB Group
Berhad highlighted in their existing vision that they want to be the market leader in core
business by delivering products and services which not specifies what core business that are
referring to.
PPB Group Berhad (PPB) is a conglomerate with a wide range of businesses that
includes food production, agriculture, waste management, and movie cinemas. Having
diversified operations throughout Southeast Asia, PPB needs a clear strategic plan for the
best allocation of its available resources across its numerous endeavors, products, and
regions. There will be the strategy Model/Process that can assist the PPB Group Berhad to
better manage their situations.
Market development a company's strategic decision to enhance its existing market
instead of seek out new markets. In order to increase sales, the business aims new customers
to pitch the product to a distinct group of customers. A market development strategy assists
businesses during their expansion phase. It identifies and improves new sales avenues for
the current product range in largely untapped markets. Therefore, PPB Group Berhad can
expand their product and services to provide or reach out to a new audience. Their goal needs
to broaden the scope or enter an untapped market segment.
PPB Group Berhad core business is a conglomerate with a wide range of businesses
that includes food production, agriculture, waste management, and movie cinemas. PPB
Group Berhad can have a geographic expansion in their core business since their main focus
are on flour and animal feed-milling that operates mills in Vietnam, Thailand and China, PPB
can expand their other core business through geographic expansion where it can help PPB
gain access to new market and talent pools while also lowering costs. Most likely, geographic
expansion provides PPB with the resources they need to stimulate the growth prospects of
their business. PPB can enter into the new market in other Asians country such as Singapore
and Brunei. Because Singapore and Brunei are developing countries with a lack of these core
businesses, PPB can take advantage of this opportunity to export their product and services
to the country.
Next PPB need to do research in their development opportunities to recognise what
their biggest development opportunities are. This can assist PPB in determining which
opportunities are likely to be the most effective and offer them the information to help achieve
their objectives. By identify their target audience, they can establish a customer persona to
assist in evaluating this target audience's motivations, demographics, and backgrounds as
well as ascertain whether their product will appeal to the customers. After determining their
target audience, implement market research by analyse their market to identify their potential
competitors. Perform a SWOT analysis to identify their company's strengths, weaknesses,
opportunities, and competitive threats.
Lastly, by using market development, PPB can attract competitors’ customers who
deliver the same core businesses. When customers have several than one choice, they are
more likely to search for something newer and improved. This leads to them intending new
products and services, that also increases PPB business recognition. PPB must offer a
greater user experience, discounts or reduced costs, and great marketing to draw their clients
to the side. Because there are numerous companies offering the same type of product or
service, they are ideal market research points for PPB. For example, PPB can learn how
their competitors attract customers and also what strategies they employ to keep them
returning for more. This way, PPB will be able to figure out what marketing strategies
are performed and which are not, so PPB can use the same strategies in their own business.
PPB Group Berhad can achieving a better height in their operation internationally
by using Porter’s Two Generic Strategies which are cost leadership and differentiation.
Cost leadership is a type of competitive strategy where a company actively seeks out
cost-effective, large-scale manufacturing facilities, reduces costs, utilises economies
of scale, increases production expertise, and employs stringent cost controls in order
to be efficient than competitors in the production of goods or the provision of services.
The objective is to implement the low-cost manufacturer in the sector. For example,
PPB Group Berhad must be able to build and maintain a lower cost structure than any
competitors, it can be very advantageous to aim to be the company's low-cost producer
in favour to use this strategic approach. This includes the pricing policies of rival
companies making comparable and occasionally identical products. Using a cost-
leadership strategy, PPB Group Berhad must gain its competitive edge in ways that
are challenging for competitors to imitate or duplicate.