SME's Class (^_^)

Assalamulaikum w.b.t.

Hi! Today, I would to share about my activity today. Hehe actually, I have SME’s class today that start from 8.30 a.m until 5.00 p.m. Tired? Of course I’m tired. But, I think I should be grateful have been chosen to enter SME-University Internship Programme. Yes! Alhamdulillah. It is because can get more knowledge and another knowledge that not includes in syllabus from this programme. Ok. Enough for introduction. Hihi >_< Actually, today we have business model canvas and operation management class. Business model canvas class is conducted by En. Mahdhir Abdullah and operation and management class is conducted by Dr.Sumaiyyah. Alright! I would like to share about our business model canvas class. I think this class very interesting because Sir Mahdhir was assigned us to do business model canvas for our own company that we consult. My group is responsible to consult one of the SME’s companies which are Deqyoung Vision Enterprise. Basically, this company is a manufacturing company that produce coated nut. Oh! The thing that I would like to share is business model canvas designed by FixIt Consultant (our group’s name) for Deqyoung Vision Enterprise. Pictures above are illustrated as below:

 This is my group members. FixIt Consultant. :)

So, as a conclusion, from this activity we got more knowledge and we can explore more about our company. Thank you very much to Sir Mahdhir and also Dr. Sumayyah because give us new knowledge and information. I think that's all about from me. Thank you. ^^

SWOT and TOWS analysis *_*

Assalamualaikum w.b.t

Hi everyone! I hope everybody are fine, happy, cheerful, excited, and whatever la. Hehe for this entry, I would like to share about my tutorial class. My tutorial class have done two interesting activities. Me and my friends were assigned to do SWOT and TOWS analysis in our tutorial class. Firstly, we were assigned to do these analyses in a small group. My group consists of Sahidah, Nabilah, Farah, Syazana, Sarah, Faezah, Amira, Najihah, Haswani and me myself. We do these analyses on the A4 paper only. The pictures as below:

But, after we attend next class, our tutor was assigned us to these analyses on the Mahjung paper. We are so excited to do this task because our tutor provides us 3 strands Mahjung paper. She gives us option either to use all three of that paper or not. So, we decided to utilize all three papers. You can imagine how bigger our analysis right? Hehe. The pictures as below:

Therefore, I think this activity is very2 interesting because we can share and change our opinions among group members, enhance our knowledge, and from this activity, it’s encouraging critical thinking. So, I think that’s all from me. Thanks because spend your time to read my entries.

Corporate Strategy: Diversification and the Multibusiness Company

Hi! We see again. ^^ Alright, now I would like to share a little bit about corporate strategy. What is corporate strategy? Corporate strategy is an organization that includes more than one industry such Tabung Haji. Tabung Haji expands their business from one industry to another industry like TH investment, TH hotels, TH plantations, and so on. Basically, there are two types of diversification which are related and unrelated diversification. Furthermore, there are four steps to crafting a diversification strategy entail. You can search the details steps on the website by yourself. Hihi

Now, we move on to the test diversification adds value for shareholders which are the attractiveness which is to look the profit whether it is good or not, cost of entry test, and better-off test.  Next, the advantages of diversification by acquisition of an existing business are accelerate time, barrier to entry is reduce because of the companies already acquire the rivals and very quick way. However, the disadvantages are the companies will be influence by another companies like bill out companies. Apart from that, company should pay more to acquire company with best performance and also can under estimating cost.

Next, I would like to talk a little bit about related business, unrelated business, and both related and unrelated business. Related business refers to a firm or organization that has competitively valuable cross-business value chain and resources match ups such as L’Oreal. They offer perfumes, cosmetics, personal care and etc. Meanwhile, unrelated business is a company that have dissimilar value chains and resources requirements, with no competitively important cross-business relationships at the value chain level such as Tabung Haji. They have TH plantations, TH marine, TH investments; and so on that exactly not similar with the core business which is facilitates savings for the pilgrimage to Mecca. Other than that, example of both related and unrelated business is Walt Disney. This company share resources in term of icon. They use icon from another company such as Spider man.

Lastly, we move on the potential cross-business fit. Firstly, supply chain activities such as Dell computer which produce LCD TVs.  Secondly, R & D and technology activities like Unifi. They combine TV and their cable. Thirdly, the potential cross-business fits is sales and marketing activities which refers to a company that produce many products. Fourthly is manufacturing-related business such as Bombardier Inc. This company use same thing to produce variety of products. Apart from that, this company is snow maker and motorcycles manufacturer.  

Thank you. ^^

Strategies for Competing in International Market

Assalamualaikum everyone ^^

How are you? Hope all of us in a good health. Now, I would like to talk about next chapter like stated above.  Alright, first of all, I would like to ask you. Why companies decide to enter foreign markets? I give you 10 second to think. Hehe J 10, 9, 8, 7, 6, 5, 4, 3, 2, 1.. Time’s up! Hihi OK, I think many answers you got right? ~Hopefully~ hihi OK! Let’s me tell the answers which are to gain new customers, to spread and wider their business, to achieve economies of scale and to gain resources and capabilities located in foreign markets. Next, we move on to the impact of government policies and economic conditions in host countries. There are two impacts which consists positives and negatives impact. Firstly, we look to the positives impact which includes tax incentives, low tax rates, low-cost loans, site location and development and also worker training. Meanwhile, for the negatives impact, there consists of environmental regulations, subsidies and loans to domestic competitors, import restrictions, tariff and quotas, and so on.

Alright, we proceed to the strategic options for entering and competing in international markets. Basically, there are several strategies. Firstly, export strategies. The advantages that companies can earn from this strategies are there is no distribution risk, no direct investment risk, and low capital requirements. However, export also has disadvantages which are the companies will loss of channel control, tariffs or import duties, and also will suffer transportation and shipping costs. Secondly, licensing and franchising strategies. This strategy also gives advantages nag disadvantages to the companies that applied this strategy. For the advantages, companies will get income from royalties and franchising fees, can rapid expansion into many markets, and will get low resources requirements. While for the disadvantages, the companies will loss of operational and quality control. Last but not list, the next strategy is foreign subsidiary. The advantages are the companies can avoids entry barriers, access to acquired firm’s skills, and etc. Other strategies are Greenfield strategies, joint ventures, and strategic alliances.

Besides that, there are three strategic approaches to compete internationally which includes multidomestic, global, and transnational strategy. Multidomestic strategy refers to a firm that offer various products and use competitive approach from country to country. While global strategy involves high coordination extensive activities dispersed geographically in many control around the world. Apart from that, this strategy also employs the same basic competitive approach in all countries where the firm operates. Lastly, transnational is a think-global, act-local approach that incorporates elements of both multidomestics and global strategies.

So, I think that all about from me. Sorry for the mistake that I did. Thank you^^

Strengthening A Company's Competitive Position

BLUE-OCEAN STRATEGY – A special kind of offensive

A blue-ocean offers growth in revenues and profits by discovering or inventing new industry segments that create altogether new demand.

RED-OCEAN vs. BLUE-OCEAN

Timing a company’s offensive and defensive strategic moves.

FIRST-MOVER vs. LATE-MOVER

In the business world, a first-mover is a company that aims to gain an advantageous and perhaps impossible market position by being the first to establish itself in a given market. Since the arrival of the World Wide Web, many companies have established themselves as first-movers in their respective marketplace on the Web. For example, Amazon.com is first-movers in online retailing and eBay in online auctions. Meanwhile, late-movers refers to companies that respond to the competitive action of a first-mover or pioneering mover. They are often characterized by imitation the first-mover or countering of the effects the actions of the forts mover. It is often thought that first-movers have the best advantage, while late-movers are the most disadvantaged. However, late-movers do have some advantages. The late-mover advantage means that followers can learn from pioneers' mistakes, see whether there is a market worth entering and judge consumers' tastes. For example, Carling will launch its British Cider. While there is nothing new about cider as a product, Carling's parent company, Molson Coors, must have been influenced by the success of Stella Artois Cider.

WHAT IS STRATEGIC ALLIANCES?

Strategic alliances are co-operative relationships between two or more independent organizations, designed to achieve mutually beneficial goals for as long as is economically viable. Typically, they involve shared financial responsibility, joint contribution of resources and capabilities, shared risk, shared control, and mutual dependence.

Example: Microsoft and Nokia – a software partnership for Nokia’s Windows Phones.

Examples of Five Generic Competitive Strategies

Michael Porter Five Generic Competitive Strategies

Assalamualaikum w.b.t.

The five generic competitive strategies include:

1)      Low-Cost Provider

2)      Broad Differentiation

3)      Focused Low-Cost

4)      Focused Differentiation

5)      Best-Cost Provider

According Michael Porter, strategies allow organization to gain competitive advantage from three different bases which are:

1)      Cost leadership

2)      Differentiation

3)      Focus

Porter calls these bases as “generic strategies”. Firstly, cost leadership refers to producing standardized products at a very low per-unit cost for consumers who are price-sensitive. There are two alternative types of cost leadership which are low-cost strategy and best-value strategy. Low-cost strategy offers products or services to a wide range of customers at a lowest price available on the market. Meanwhile, best-value strategy offers products or services to a wide range of customers at the best price-value available on the market. Both two types of strategies target a large market.

Secondly, Porter’s generic strategy is differentiation. It is a strategy aimed at producing products and services considered unique industry wide and directed at consumers who are relatively price-insensitive. A successful differentiation strategy allows a firm to charge a higher price for its product and to gain customer loyalty because consumers may become strongly attached to the differentiation features. Special features that differentiate one’s product can include superior service, spare parts availability, product performance, useful life, ease of use and etc. the most effective differentiation bases are those that are hard or expensive for rivals to duplicate.

Lastly, Porter’s generic strategy is focus. Focus means producing products and services that fulfill the needs of small group consumers. Two alternative types of focus strategies are focused low-cost and focus differentiation. Low-cost focus strategy offers products or services to a small range of customers at the lowest price available on the market. Meanwhile, focused differentiation offers products or services to a small range of customers at the best price-value available on the market. It is sometimes called “best-value focus”. The aim is to offer a niche group of customers’ products or services that meet their taste and requirements better than rivals’ product do. Both two types focus strategies target a small market.