QUEST INTERNATIONAL UNIVERSITY PERAK (QIUP)

FACULTY OF BUSINESS & MANAGEMENT

MBA6093 GLOBAL ECONOMY & BUSINESS

INTRODUCTION
Our Company Profile
1. Business Name: CWM Group Sdn Bhd
2. Business Address: Lot 12,Persiaran
Kemajuan 16/16, Shah Alam, 40200,
Selangor Darul Ehsan
3. Phone: +603-55107800
Fax: +603-55197898
4. Total number of employees: 100
5. Initial capital investment: MYR 10M
6. 5 management partners/equal share
7. Focusing on business expansion in
2019
Our Mission
Our mission is to make the world cleaner and more sustainable by
creating valuable energy and chemicals from local,
renewable waste. Our goal is to help our customers
reduce energy costs and become leaders in sustainability by
delivering reliable renewable energy solutions.
Waste to Energy (WTE) Plant
Our Service
Using waste & biomass to produce energy
(electricity) to supply to the urban areas in
addition to curb pollution and health issues
caused by these wastes.
 ANALYSIS OF POTENTIAL COUNTRIES/MARKET
MARKET POTENTIAL

1) Highest waste generation is in East Asia and 1. The highest waste producing country is Indonesia,
Pacific – 468 tonnes in year 2016 followed by Pakistan, Bangladesh, Philippines and Vietnam.

2) Followed by Europe & Central Asia and South 2. Philippines, Bangladesh and Indonesia have already
Asia waste to energy plant.

3. Pakistan – war with India (politically not stable)

 GDP Growth (Annual %) by Country
from 2000 to 2015
8

2000

2015
2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014
-2
.
Indonesia Thailand Vietnam
 1) Decision 31/2014/QD-TTg of the Prime Minister indicates that power companies have to buy electricity of waste-
to-power projects in 20 years at a price of 10.05 U.S. cents per kWh.

2) Corporate income tax incentive rate of 10% is applied for a period of 15 years to newly-established enterprises
LEGAL
investing in power plant projects and could be extended if the projects are classified as large-scale projects, using
REQUIREMENTS high or new technology and in special need of investment.

3) Import duties for equipment and machinery is exempted to create fixed assets of the RE projects

4) Land use fee/rental is exempted/ deducted for special encouraged projects (depending also on the location of the
projects).

5) For capital incentives, Vietnam Development Bank also provides access to low-interest loans.
HEALTH AND SAFETY FACTOR
SELECTED COUNTRY: VIETNAM

MARKET SEGMENTATION
 MODES OF ENTRY: JOINT VENTURE
Comprehensive Alliance

CWM Group Sdn Berhad

Provide chemical inceneration service
Vietnam Waste Solutions Inc.
Total Employees: 100
Provides state of the art sanitary landfill, material
Malaysian owned recovery, composting , transfer stations, water
treatment, solid waste services
Total employees: 80
Viatnamese owned

Comprehensive Alliance
 1. More extensive and long-term relationship
2. More stable
3. CWM Group Sdn Bhd benefits from the Vietnam Waste
Advantages Solution Inc. in terms of Vietnam’s competitive conditions,
culture, language, political systems and business
4. Shared risks and development costs
5. Increased capacity
6. Access to greater resources, including specialized staff,
technology and finance

1. CWM Group Sdn Bhd risks giving control of its technology to

the Vietnam Waste Solution Inc.– agreements needed to
Disadvantages minimize the risk
2. Conflicts of interest over strategy and goals – risk of
dissolution
3. Takes time & effort to build the right business relationship
4. Imbalance in level of expertise
5. Poor integration and co-operation due to language barrier
and distance between Malaysia and Vietnam
 STRENGTH
WEAKNESS
1) Strong distribution network
1) Different working culture
2) Highly skilled workforce through successful legal & learning
2) Need more investment in new technology
programs
3) High attrition in workforce
3) Reliable suppliers

SWOT ANALYSIS
OPPORTUNITIES
THREATS

1) Better engagement of private sectors by changes

economic structures & policies
2) Being a biggestOPPORTUNITIES
city, the national government has
1) New technology developed by the competitor
focused on city development and waste management 2) Imitation of counterfe it and low quality products
plan will be supported by the government
 Based on our analysis, Vietnam is the best location to start our joint
venture in Incineration- Chemical Waste.
CONCLUSION
Assumptions: Lesser competition for CWM Group to start the chemical
waste management using incineration

Confidence: No companies doing chemical waste management in

Vietnam