NAME: HARIE KRISHNAN A/L ANAMULAI (MC200611423)

STRATEGIC MANAGEMENT
Topic Review 3
Question 1
Sketch and show the location of the following organizations in IE matrix. Based on the location,
describe TWO (2) potential strategies for each organization. (20 marks)

Business IFE EFE Suggested Strategies

score score
(a) Chicken Rice Shop 1.88 2.92

The IE matrix falls in the VI range which is harvest and

diverse. Therefore, the best strategy for them is to not
expand, divest, retrench, diversify, improve weaknesses
and form joint ventures.

(b) PROTON 2.75 3.05

The IE matrix falls in the II range which is grow and build.

Therefore, intensive (market penetration, market
development and product development) or integrative
(backward integration, forward integration and horizontal
integration) would be the most appropriate strategy for this
division. This is the best regions for division given their
high IFE and EFE scores. Thus, we can conclude that
Proton is a successful organization as only successful
organizations are able to achieve a portfolio of businesses
positioned within this region.
(c) Habib Jewels 3.20 3.11

The IE matrix falls in the I range which is grow and build.

Therefore, intensive (market penetration, market
development and product development) or integrative
(backward integration, forward integration and horizontal
integration) would be the most appropriate strategy for this
division. This is the best regions for division given their
high IFE and EFE scores. Thus, we can conclude that
Habib is a successful organization as only successful
organizations are able to achieve a portfolio of businesses
positioned within this region.
(d) Football Association 2.01 1.85
Malaysia (FAM)

The IE matrix falls in the VIII range which is harvest and

diverse. Therefore, the best strategy for them is to not
expand, divest, retrench, diversify, improve weaknesses
and form joint ventures.
(e) Media Prima Bhd. 2.50 2.53

The IE matrix falls in the V range which is hold and

maintains strategy. Therefore, market penetration and
market development would be the most appropriate
strategy for this division. They should expand but not
aggressively, penetrate market further, develop new
products or modify the existing products.

Question 2
The following factors are listed in Sunlight Radio Taxi’s incomplete SWOT analysis: Complete the
SWOT matrix and show a minimum of FOUR (4) potential strategies. (5 marks)

Strengths Weakness
1. Loyal employees (i.e. drivers) 1. Slow in technology adoption
2. Recognized brand 2. Number of taxis owned

Opportunities Threats
1. Limited parking bays discourages 1. Availability of free busses in
members of the public from Selangor
driving their own personal 2. Improved service of busses and
vehicles Monorail, LRT and MRT
2. LRT, MRT and Monorail’s 3. More intense competition from
operating area is still limited e-hailing rivals like Grab and
3. Continuous assistance from the MyCar.
government 4. The public’s negative
perception towards taxis
5. Road Transport Ministry’s
regulations
6. Customers are price sensitive
7. The rise of COVID19 +ve
cases in Selangor and Kuala
Lumpur
ANSWER Q2:

Strengths (S) Weakness (W)

SWOT MATRIX 1. Loyal employees (i.e. drivers) 1. Slow in technology adoption
2. Recognized brand 2. Number of taxis owned
Opportunities (O) SO STRENGTHS WO WEAKNESS
1. Limited parking 1. Coorporate Social Responsibility - 1. Increase the number of taxis owned at
By providing initiatives to upskill places where public transportation is still
bays discourages
and improves their financial limited or untapped (W2, O2)
members of the public
from driving their own resilience with the assistance from
personal vehicles the government.(S1, O1, O3)

2. LRT, MRT and 2. Increase the number of employees 2. Upgrade the service in the taxis with the
Monorail’s operating to tap into areas where public assistance given by the government. (W2,
area is still limited transportations in limited. (S1, O2) O3)

3. Continuous (ATTACKING STRATEGY) (BUILDING STRENGTHS FOR

assistance from the ATTACKING STRATEGY)
government
Threats (T) ST STRATEGIES WT STRATEGIES
1. Availability of free 1. Since customers recognize the 1. Hire application developers to improve
busses in Selangor brand of the Taxi, they can provide the technology such as cashless payment in
promotional offers for users or the taxi. (W1, T2, T3)
membership so they will use the
service more often. (S2, T6)

2. Improved service of 2. Ensure the standard of their brand 2. Improvise the system in the taxi whereby
busses and Monorail, stands for more than just cheap rides every booked taxi would display the details
LRT and MRT so customers will prefer using their on the driver for the safety of the passengers
service. (S1,T1,T3,T4) and wise verse abiding to the safety policy
by the ministry. (W1, T4, T5)

3. More intense 3. Utilize the number of taxis owned to do

competition from e- diversification of service that satisfy
hailing rivals like Grab customers’ needs such as food delivery as
and My Car. the number of customers are lower due to
the pandemic in Selangor and KL. (W2, T7,
T3)
4. The public’s
negative perception
towards taxis
5. Road Transport
Ministry’s regulations
6. Customers are price
sensitive
7. The rise of (DEFENSE STRATEGY) (BUILDING STRENGTHS FOR
COVID19 +ve cases in DEFENSIVE STRATEGY)
Selangor and Kuala
Lumpur
Question 3
Table 1 below presents the QSPM for Brainy Aulad, a local kindergarten that offers Islamic syllabus
alongside British curriculum.

Table 1
Market Market
Differentiation
Development Penetration

Internal Factors W AS TAS AS TAS AS TAS

No. of kindergartens 0.18 4 0.72 3 0.54 2 0.36
International expansion 0.01 5 0.05 2 0.02 1 0.01
Teaching and learning are conducted in Arabic and
English 0.25 4 1.0 4 1.0 2 0.5
Syllabus is internationally recognized 0.20 4 0.80 3 0.60 3 0.60
Strict terms & conditions for franchisee 0.05 3 0.15 1 0.05 0 0
Registration fee 0.06 1 0.06 2 0.12 2 0.12
Monthly fee 0.10 1 0.10 2 0.20 2 0.20
Location of kindergartens 0.15 2 0.30 2 0.30 1 0.15

External Factors
Government regulation on kindergarten owners 0.26 2 0.52 0 0 0 0
No. of competitors 0.23 3 0.69 4 0.92 3 0.69
Educated parents 0.15 3 0.45 4 0.60 3 0.45
Changes in primary school education system 0.16 2 0.32 2 0.32 0 0
No. of universities offering early childhood education 0.2 1 0.2 1 0.2 0 0
5.36 4.87 3.08

a) Provide ONE (1) example of how Brainy Aulad can carry out each of the strategies listed in
the QSPM. (3 marks)

1. Market development: Brainy Aulad can open a branch in Arab countries as they have high Muslim
population.

2. Differentiation: Brainy Aulad may differentiate their terms and condition for franchisee by
reducing the strictness of the terms and conditions.

3. Market penetration: Brainy Aulad can use the pricing market penetration strategy by adjusting their
fees price to a more affordable pricing.
 b) Complete the QSPM and identify the optimum strategy for Brainy Aulad. (12 marks)

The QSPM has been completed as above. Having done the calculations using the Quantitative
Strategic Planning Matrix (QSPM), we came to a conclusion that market development is a better
option. It is given in the ‘Sum Total Attractiveness Score’ figure. The expansion strategy yields higher
score than the other strategy. The expansion strategy has a score of 5.36 in the QSPM.
Answer Rubric

Question 1

Sketching of IE and showing the location for each organization: 1 mark x 5

Identification and description of strategy based on the location in IE: 1.5 marks x 10

Question 2

Format of the SWOT (copy and paste into the correct cells all factors given, labelling of S, W, W, T,
SO, SO, ST, WT and writing the combination of factors at the end of each identified strategy): 1 mark
Identification of strategy: 1 mark x 4

Question 3

(a) Example of market development, differentiation and market penetration in the context of a
kindergarten: 1 marks x3
E.g. market development: Brainy Aulad can open a branch in Muslim majority area in Singapore

(b) Completing the QSPM: 0.25 marks x 44 blanks

Identification of optimum strategy from the complete QSOM: 1 mark