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.

Ashura Day @ 10 Muharram

In the name of Allah, we praise Him, seek His help and ask for His forgiveness. Whoever Allah guides none can misguide, and whoever He allows to falling astray, none can guide them aright. We bear witness that there is no one worthy of worship but Allah alone, and e bear witness that Muhammad is His messengers.

Assalamualaikum w.b.t to all Muslims ^^

How are you today? I hope all of us in the protection of Allah. Insha Allah. Today, I would like to share about “Ashura Day”. As a Muslim, we already know what is “Ashura Day” right? Ashura day is the 10^th day or Muharram (the first month of the Islamic calendar). Since the beginning of this world, Ashura day has been a very important day. On this day, Prophets, Saints and Sincere servants of Allah were blessed with miracles and spiritual powers. Therefore, what I can say here is 10 Muharram is a great day! ^^ 

The stories behind the day of Ashura are:

1   1)      Repentance of Prophet Adam A.S was accepted by Allah.

2   2)      The ship of Prophet Nuh A.S came to rest on a mountain called Al-Judi.

3   3)      Prophet Ibrahim A.S was born on this day and he got the title Khalilullah (friend of Allah) on this day.

4   4)      The fire in which Prophet Ibrahim A.S was thrown by the king Namrud become cool and means of safety for Prophet Ibrahim, by the order of Allah.

5   5)      Allah delivered Prophet Ayub A.S from distress and he was restored to prosperity.

6   6)      By the grace of Allah, Prophet Yunus A.S was casted out on the shore after being swallowed by a huge fish (whale) for forty days.

Actually, there are many stories but, I just listed some examples of the story behind the Ashura day. Sorry. Now, I would like to talk about fasting on 10 Muharram. 

Fasting on Ashura day carries a great reward. It is better to fast both 9^th and 10^th of Muharram or 10^th and 11^th Muharram to distinguish Muslims and Jewish because they also practice the same thing.

“Berpuasalah kamu di Hari Ashura dan kamu bezakanlah dengan (amalan) orang-orang Yahudi. Oleh itu, berpuasalah sehari sebelumnya dan sehari selepasnya. “

-Hadith Ahmad-

In short, it would be “afdhal” to fasting all three days which are 9^th, 10^th and 11^th Muharram. If not able, fast on 9^th and 10^th. If not able too, it is sufficient to fasting on 10^th Muharram. It is due the fact that, our beloved Prophet Muhammad S.A.W has said that this is the most rewarding fast next to Ramadhan. Our beloved Prophet has also said that fasting on Ashura day will compensate for one year’s sin.

So, I think that’s all about from me. I hope with a little sharing can be beneficial to us in this world and the hereafter. I’m sorry if I’m wrong in transmitting knowledge. If I’m wrong, please let me know. Thank you very much.

“Whatever written of truth and benefit is only due to Allah’s assistance and guidance, and whatever of error is of me. Allah alone knows best, and he is the only source of strength. May Allah guide us to the straight path of Islam. May Allah guide us to the Siraat al-Mustaqeem.”

WEEK 4 - Evaluating a company's resources, capabilities, and competitiveness.

Hi everybody! ^^ How are you today? Today, I would like share about what I’ve learned in chapter 4. Ok! Now, I want to ask you. What resources and capabilities are? Take 5-10 minutes to thinks and answer my question. So now, let’s compare your answer and my explanation about the two key words that I’ve mentioned earlier. 

Alright, now you know what my answer is. Then, compare with your answer. Is it same with me? Or your answer is more clearly and more suitable than me? Or your answers are differing from me? If I make a mistake, please let me know ok! Thank you. (^_^) Therefore, a firm’s resources and capabilities represent its competitive assets and are big determinants of its competitiveness and ability
to succeed in the marketplace. Resource and capability analysis is a powerful tool for sizing up a company’s competitive assets and determining if they can support a sustainable competitive advantage over market rivals.

Next, we move on VRIN test. What is VRIN? VRIN test is for sustainable competitive advantage which means sustain for a long-term. VRIN test ask if resources:

To identifying the firm’s resources and capabilities by VRIN testing, the firm should ask:

●     Is the resource (or capability) competitively Valuable?

●     Is the resource Rare—is it something rivals lack?

●     Is the resource hard to copy (Inimitable)?

●     Is the resource invulnerable to the threat of substitution from different types of resources and capabilities (Non-substitutable)?

Then, we move on SWOT analysis. Do you know what SWOT analysis is? I believe that many of us know what SWOT analysis is. While many can quickly understand what SWOT stands for? Basically, S represent as strength, W as weaknesses, O as opportunities, and T as threats. SWOT analysis is a powerful tool for sizing up a firm. Many too forget the need for matching external with internal factors to generate appropriate strategies.

Opportunities + Threats = External

Strengths + Weaknesses = Internal

                                               

I think I should not explain more about SWOT analysis because many of us can easily and quickly understand what SWOT analysis is. Hence, in business, internal and external should match together. By matching these two sets of factors, a rational strategic decision can be derived.

Lastly, I want to explain a little bit about the concept of a company value chain. A company’s value chain identifies the primary activities and related support activities that create customer value. The simple example of value chain process as following:

In short, value chain analysis facilitates a comparison, activity-by-activity; of how effectively and efficiently a firm delivers value to its customers, and relative to its competitors. Moreover, segregate the firm’s operations into different types of primary and secondary activities to identify the major components of its internal cost structure. So, I think that’s all for today. I’ve no idea to explain more because I’m not totally 100% understand about this concept. Sorry. (~_~) Please forgive me for the mistake that I’ve done and for the wrong information that I’ve shared with you. Thank you. See you later! ^^

( Evaluating a Company's External Environment )

Assalamualaikum..

Hi everyone! Today, I want to share about what I’ve learned in my class last two weeks. Hehe. Sorry because I’m late update my blog. (^_*) Actually, I’ve no idea to update my blog before this. Now, I think I can share a little bit about chapter 3 (Evaluating a Company’s External Environment). Sorry if I make a mistake especially grammatical error. J Alright! Let’s start! Ok, first question is what is macro-environment? Generally, macro-environment also known as general environment includes all the environmental factors that have an impact on all organizations and firms within the economy. It is represents factors that will influence directly or indirectly. A simple acronym to remember the factors is PESTEL.

The examples of each factor as below:

The macro-environment or PESTEL analysis, however, is not to enough to identify meaningful opportunities and threats to a firm. A group of firms that produce similar products or sell the same product to the same markets is defined as an industry. The industry environment includes the key forces shaping and influencing competition in that industry. These forces are known as Michael Porter’s Five Forces Model (1980) and described as below:

Now, I will explain one buy one for the five competitive forces. Firstly, threats of new entrants. A new entrant to an industry can raise the level of competition. An industry’s barrier-to-entry can limit the number of new entrants into the industry. Barrier-to-entry refers to factors that can obstruct or limit the threat of new entrants. The following have identified as barrier-to-entry for new firms into an industry:

Secondly, the bargaining power of suppliers. Suppliers are the source for an organization to obtain the inputs such as labors, parts and raw materials needed to produce its goods and services. For instance, a supplier group is powerful when the suppliers’ goods are critical to the buyers’ marketplace success. Next is bargaining power of buyers. Customers are the potential buyers of the products that are supplied by the firm in the industry. Customers also have the most power when they are large and purchase most of the industry’s input. Fourthly, substitute products. Generally, product substitute present a strong threat to affirm when the customers can obtain a product which is almost of the same quality or the same functions as a product the industry produces and at a lower price. The substitute products can be a treat when the product is undifferentiated. Last but not list, rivalry among competitors. Rivalry among competitors can be most intense when there are numerous competitors in the industry. Other than that, the rivalry among competitors can be strong and powerful when there are high fixed costs of production.

Ok! I think I should stop here. It is because I have no idea anymore to share more about this topic. I’m really sorry for the weaknesses. I hope what I have explained before can help you a little bit. Alright! I stop here. Arigato! Haik! Hehe (^_*) See you soon! ^^