Appendix III

UNIVERSITI TUNKU ABDUL RAHMAN

FACULTY OF ACCOUNTANCY AND MANAGEMENT

ACADEMIC YEAR: 2018/2019
JAN 2019 TRIMESTER
UKMM1011 SUN ZI’S ART OF WAR AND BUSINESS STRATEGIES

REPORT COVER SHEET

Course details

Faculty : LEE KONG CHIAN FACULTY OF ENGINEERING AND SCIENCE

Year and Trimester of study : Year 1 Trimester 1

Lecture Group : L5

Lecturer’s Name : Annie Yong Ing Ing

Assignment Details

Company Name : TGV Cinema Sdn Bhd

Due Date : Week 13 during lecture

Important Note : Submission of assignment is the responsibility of the students.

Students’ Details

No. Name Student ID No. Course

1. Chew Rui Ken 1802108 CI
2. Kiing Teck Kwong 1802511 CI
3. Ngo Kang Siang 1801837 CI
4. Su Jim Him 1801840 CI
5. Tan Chiang Ti 1903655 CI
6. Yong Men Chong 1801091 CI
Note: Arrange name according to alphabetical order and course

Overall Marks (50 Marks): ____________ Marks.

 Appendix IV

UNIVERSITI TUNKU ABDUL RAHMAN

FACULTY OF ACCOUNTANCY AND MANAGEMENT

ACADEMIC YEAR: 2018/2019
MAY 2019 TRIMESTER
UKMM1011 SUN ZI’S ART OF WAR AND BUSINESS STRATEGIES

MARKING SCHEME FOR REPORT

Section Assessment Mark Allocation Marks

Awarded
1. Introduction
- A brief introduction of the company – background,
business level strategies, products, scope of 5 marks
operations, main competitors and etc.

2. Strategic Analysis
- Identify and explain strengths, weaknesses,
opportunities and threats (SWOT) of the selected
company 25 marks
- Discuss more detail about the company’s main
competitors by applying the seven dimensions in
Chapter 1 (Line 1.18-1.24).
3. Recommendation
- Based on the finding from the section 2 above,
recommend a new strategies/product that the
company should adopt to improve its current
10 marks
businesses.
- You are required to applied the strategies with Sun
Zi’s philosophies (refer to Appendix II)
-
4. Conclusion
- Summarise what have you learnt from this
assignment? 5 marks
- Discuss which aspects in life can you apply Sun Zi’s
philosophies in future?
5. Quality of the written report
- Format, layout, idea flow, language and proper 5 marks
citations and APA format references.
TOTAL 50 marks
Comments: ___________ __

Name of marker: Ms. Annie Yong Ing Ing Signature of marker: _____________ Date: __________
TABLE OF CONTENT

CHAPTER PAGE

1 INTRODUCTION 1

2 STRATEGIC ANALYSIS 2

3 RECOMMENDATION 6

4 CONCLUSION 9

REFERENCES
CHAPTER 1

Introduction
Tanjong Golden Village also known as TGV Cinemas Sdn Bhd is currently the
second largest cinema in Malaysia, having 5 multiplexes with 282 screens and more
than 48,000 seats. The headquarter of TGV Cinemas is located at Maxis Tower, Kuala
Lumpur. The main competitor of this cinema is Golden Screen Cinema. Besides, MBO
Cinemas, mmCineplexes and Lotus Five Star are also competitors in the market.
TGV cinema sell out the main product movie ticket which is required to access the
movie hall by first purchasing the movie ticket. Both digital 2D and 3D films are offered
by TGV Cinema.

TGV Cinemas has become super successful as it offers a wide variety of movie halls
choices to satisfy the customer desires such as Beanie, Deluxe, Family Friendly,
IMAX®. INDULGE, Luxe. ONYX according to the customer preference. Family
friendly movie hall attract a lot of family members to come together. Beanieplex movie
hall come with bean bags giving the audience a calming and tension easing experience
to enjoy the movie. Beanie seats are super comfortable, audience may lie down or prop
up anyhow they wish, with space for two in each of the cosy bean bag pods and
adjustable seating positions.

TGV cinema offer a variety of promotions to gain attention from movie goers, such
as RM8 every Monday applicable for Classics seats in standard hall, RM10 Standard
and Deluxe Hall Movie Ticket and RM10 for a Regular Popcorn Combo. Customer
who purchase a movie ticket are eligible to redeem 2 hours free parking at Sunway
Putra Mall. Partnership between TGV Cinemas and Maybank release a ton of
promotions, such as RM8 Standard movie tickets on Monday, 50% OFF Standard* and
IMAX® movie tickets on Saturday and so on. Also, movies for RM10 exclusively for
MovieClub members. Kids may enjoy the perfect combo set of food promotion as low
as RM9.90.

Thanks to TGV Cinema, the cinema scene has indeed revolutionized the movie-
going experience in our nation. It has brought the movie industry to a next level.
CHAPTER 2

STATEGIC ANALYSIS
2.1 STRENGTH

S1: Strong Global Presence

TGV Cinemas (Tanjong Golden Village) is well known throughout the world and
almost known by everyone. In addition, it is the second largest cinema chain in
Malaysia. Hence, TGV Cinemas tend to get a major advantage compare to other
cinemas as people will choose the product from the one which is well-known as their
first choice.

S2: Strong Financial Resources

TGV Cinemas has strong financial position because it is a product of merger between
TESB, GHC and GEMS, thus there are strong enough financial resources from these
three companies. Therefore, TGV Cinemas can take this advantage to do more
promotion like offer different special packages in order to get the attraction from the
moviegoers.

S3：Provide luxury service for customer

TGV Cinemas strive to provide the customers the most comfortable condition when
watching movie. It releases a lot of feature from twin seats to premiere class, gold class,
3D cinema, 5D cinema, Beanieplex, LUXE, IMAX, Dolby Atmos and D-box.
Beanieplex also known as the bean bag hall which replaced the standard cinema seating
with adjustable comfy beanbags (Chooi, W. Y.,2016). This not only provide a
comfortable environment but also gives the moviegoers a unique experience.

S4: Buy ticket with cheaper price

TGV Cinemas cooperating with Maybank to let moviegoers enjoy the exclusive offer
when buying a ticket. The moviegoers only need to use Maybank cards for payment
and they can get a ticket with a cheaper price but this only available before 6p.m.
everyday. Instead of RM16 for a standard halls ticket, but only RM10 per ticket and
this is only in TGV Cinemas (Zulkepli,2019).
2.2 WEAKNESS

W1: Branches of TGV in Malaysia is lesser than GSC

Malaysia has 169 cinemas operating throughout the country. The only states without
cinemas are Perlis and Kelantan. The largest cinema operator is Golden Screen
Cinemas. There are other large operators such as TGV Cinemas, MBO Cinemas,
Cineplexes and Lotus Five Star. Other than these operators, there are smaller operators
who do screening on a small scale.

W2: Fail to build strong relationship between the company and the customer.
Customer relationship can be built through creating an intimate relation between the
service provider and the customer, in order to build up the customer's loyalty and
retention. However, the untrained, unprofessional, highly turnover front-line employees
have no a good interaction skill with the customer, and sometime the bad attitude even
irritate the customer. The poor service provider-customer relationship cannot help the
Golden Screen Cinema to retain their customer effectively.

W3: Limited people can view the screen in the best way
There are a lot of seat in the hall of cinemas but not all of them have the same view
feature for the moviegoers. There are some seats which cannot provide the best
experience for the moviegoers. For instance, the seats which the most front and the side
seat.

2.3 OPPORTUNITIES

O1: On-Screen and In-Theatre Innovation

IMAX is a proprietary system of high-resolution cameras, film formats, film projectors,
and theatres known for having very large screens and steep stadium seating. The
cooperation with IMAX Corporation makes TGV Cinemas become a high-quality
theatre.
O2: Cooperate with film company to launch new products
TGV Cinemas will cooperate with film company to launch new products, such as water
bottles, key chain and others. These products will attract people to the cinema to spend
money.

2.4 THREATS

T1: Competing Cinemas

The company faces serious threats from competition. Some of their main rivals are GSC
Cinemas, MBO Cinemas, Cineplexes and Lotus Five Star. These competing cinemas
offered unique experience with gold class and competitive prices.

T2: Formation of online movie rental provider

The company seriously threatened by online movie rental provider such as Netflix,
Redbox and others. These online movie rental providers provide a service for watching
movies online. Therefore, people no longer need to go to the cinema to watch movies.

T3: Other forms of entertainment

Nowadays, many types of entertainment are formed. These entertainments, such as TV
dramas program, variety shows are very nice and attractive. People not necessarily
choose to watch movies. They can choose to watch TV shows and variety shows.

2.5 SEVEN DIMENSIONS

a. External Factor and Physical or Infrastructural Factor

When compared between TGV Cinemas and GCS Cinemas, both of the companies
have their own dominance in the market of Malaysia. For instance, TGV Cinemas
houses Malaysia’s premier luxury cinema, TGV Indulge, lounge in the blissful
comfort of Beanieplex halls and astonishing clarity of the world's largest cinema
LED screen, Samsung ONYX. While GSC Cinemas launched the country’s first D-
BOX motion seats, offering perfectly synchronized motions with movie scenes and
also introduced the world’s leading 4D cinematic technology, 4DX which can bring
 the movies to life with over 20 signature effects delivered through vibration and
motion-activated seats, as well as environmental effects like wind, fog, rain,
lightning, and scents.

b. Political Leadership
In terms of the political leadership, it is observed that TGV Cinemas does better in
their political leadership. This is due to the reason than the one of the core values
of TGV Cinemas is “RESPECT”. TGV Cinemas believed that politeness goes a
long way in building a relationship with the customers and treating others the way
the want ones’ to be treated. (TGV Cinemas, n.d.). This can bring the satisfaction
level of their customers to a higher level since nice and polite services are always
the most basic yet important attitude in doing a business.

c. Corporate Leadership
Speaking of the corporate leadership, TGV Cinemas emphasis on ensuring their
employees are all equipped with necessary skills such as interpersonal skills or any
other skills that are relevant to their current job. TGV Cinemas provides a fun and
nurturing working environment with training and developing opportunities for their
employees. For instance, seminars and workshops are supported by TGV Cinemas
to provide wonderful opportunities for learning, gaining new friendships and
bringing helpful new insights back to the business. (TGV Cinemas, n.d.).

d. Size of the Company and Competitive Edges

There are currently 169 cinemas operating in Malaysia and the largest operator is
GSC Cinemas while TGV Cinemas are the second largest operator. (Lim, 2016) For
GSC Cinemas, it houses a total number of 344 screens in 36 locations throughout
Malaysia whereas TGV has 35 locations in Malaysia. (Ngui, 2016)

e. Human Resource Department

TGV Cinemas has awarded to be one of the recipients for the HR Asia Best
Companies to Work For in Asia 2016 (Malaysia Chapter) award held recently at the
Palace of the Golden Horses. Organized by HR Asia, one of Asia’s most
authoritative publications for HR professionals, this award is decided by HR experts
from academia, consultancy and practitioners, and recognises organisations with
 strong employer engagement, supportive culture, and progressive leadership in the
area of human resources. (TGV Cinemas, n.d.)

f. Corporate Structure and Organisation

Both TGV Cinemas and GSC Cinemas have a very similar corporate structure and
organisation. The company size of them are around 1001-2000 employees. GSC
Cinemas is a wholly-owned subsidiary of the PPB Group (a member of the Kuok
Group) whereas TGV Cinemas is wholly-owned by the Tanjong plc.

g. Discipline and Motivation Factors

TGV Cinemas is more enlightened in the administration of rewards compared to
GSC Cinemas. For example, working in TGV Cinemas, the dress code will be
only casual (e.g. T-shirts) while in GCS Cinemas staffs are forced to wear in a
highly business (e.g. Shirts) dress code. Besides, TGV Cinemas provides a lot of
welfare and benefits for their employee such as Dental, Free Monthly Movie
Passes, Medical, Miscellaneous allowance, Sports (e.g. Gym). (TGV Cinemas,
n.d) .

CHAPTER 3

Recommendations
In Chapter 8 of Sun Zi Art of War stated that,

“When on the death grounds,you must fight rentlessly.” Line 8.7

~ Sun Zi

When waging a war, it will fill with danger and risk which soldier may cannot come
back from battlefield. The soldiers should hold a heart of sacrifice before going battle
and also when dealing with these five different ground situations. It can also apply when
doing business. TGV cinemas should continuously make variation in order to survive
in this cutthroat world. Moviegoers pursue for the comfortable environment over and
over to get the most unique experience when enjoying a movie. To satisfy the demand
of the moviegoers, TGV cinemas will modify the seat and add on with some of the
function. TGV will add a food holder because there is only drinks holder in cinema
nowadays. The moviegoers need to hold it by hand or in their lap and this sometimes
make some annoyance to them.

In Chapter 9 of Sun Zi Art of War addresses the organization of well-disciplined

marches and the arrangement of troops facing an approaching enemy under a variety of
conditions.

“In general, an army prefers to take up positions on high ground and detests
occupying low ground.”Line 9.20
~ Sun Zi
 Sun Tzu recommends taking advantage of the positions of sunlight relative not only
to time of day but relative to rivers, mountains, salt marshes, and level ground. This
stated that importance of position in doing something. Since TGV cinemas is now
second largest cinema chain in Malaysia and occupy a strong natural position, TGV
cinema should keep this position by concerning on the comfiness of the moviegoers. In
order to maintain the position of TGV cinemas, TGV cinemas tried to modify the seat
by decrease the shock when someone kick the seat. This is very common since younger
children do not know that this is rude and being squirmy in their seats, all this does is
aggravate the persons whom seats they are kicking. Seat with decreasing shock give
comfortable environment for moviegoers to enjoy the movie.

The chapter 12 of Sun Zi Art of War describes

“Thus, those who use fire as means to support attacks are wise and shrewd.” Line
12.25
~ Sun Zi

When attacking with fire, you can eliminate time. In the past when technology was
still underdeveloped, if people want to watch a movie, they can only go early to the
cinema to queue up for tickets. Now, TGV Cinemas develop online booking Apps. The
development of this Apps brings a lot of convenience to people. This Apps have many
useful features. Just like people can buy tickets anywhere, they don’t need to go to the
cinema to queue up for a ticket. Besides that, this apps also provides the functions of
selecting a seat. Other than this, they can also buy some snacks through this app. When
they want to collect their snacks, the cinema has prepared an exclusive channel for those
who buying snack through this app. Therefore, they can get their snacks without waiting
in line. The most useful feature is that this Apps can see at what time there is a movie.
The creation of this Apps helps people save a lot of time.

In Chapter 4 of Sun Zi Art of War mentioned that

“The ability to prevent defeat depends on oneself, while the opportunity for victory
depends on the enemy.” Line 4.2
~ Sun Zi
 TGV cinema has worked with other company such as TGV Cinemas cooperating
with Maybank to prevent defeat. Moreover, TGV cinema has always been emphasizing
on the importance of creativity and innovation. For example, TGV Cinemas is offering
an awesome idea for a girls’ night out this International Women’s Day. What customers
hate most is disturbing by others when watching movie such as the children kick the
chair. Therefore, TGV cinema modify the chair with installing a shock protection
system on the chair to provide customers have better environment to enjoy their movie.
Such business practices are able to benefit the company as there is a focus on its fortes.
Thus, this can guarantee TGV cinema can survive in this market all the time.

In Chapter 5 of Sun Zi Art of War said that

“In battle, use the direct force to engage the enemy, and the indirect force to win.”
Line 5.8
~ Sun Zi

Based on the statement, there are 2 methods to compete in the market, involve both
direct and indirect forces. Three scenarios are to be concerned which firstly is having
more loyalty buyer for our product, secondly commanding a premium price for product,
lastly more sales out due to getting more buyers by differentiating provision of features.
TGV Cinemas are required to provide uniqueness or special features that is distinct
from rivals to the customers, given that the customers are willing enough to spend more
over a product because of appreciating the essential uniqueness in our product. Products
of better quality have a superior value, or technically achieve superior in particular
fields, such as superior service or some kind of unique appeal particularly. With
successful differentiation that satisfy the customer, competitive advantage is created as
customers are more loyal to us while neglecting the other products that is present in the
market. By doing so, TGV Cinema is able to charge for a premium price. The
uniqueness offered cannot be found in any rivals, thus customers have to stick to our
products as no substitution is available in the market. TGV Cinema should prioritise on
innovation and creativity by investing in development of technologies to discover and
create new and first-class movie facilities and infrastructure which opponents lack of.
Movie lovers are attracted by the brand-new experience of watching movie which is
only offered by TGV cinema.
CHAPTER 4

Conclusion

In a nutshell, Sun Zi’s Art of War are extremely useful to be applied in doing
business, such as helping the company’s management to be effective, and using a
variety of strategies to compete in the market. It helps the company to adapt in changes
while being flexible at the same time to handle the possible circumstances. All the
decisions made by the company have to be reasonable and acceptable by the public
otherwise it might be disastrous to themselves. Throughout the assignment, we have
the learnt to make good use of the Sun Zi’s Art of War in the current businesses.

Effective strategies and plans are much needed to win the market of the same
business. TGV Cinema strength on technology are used to attack the competitors. For
instance, TGC Cinema keep on introducing the latest world class movie features and
facilities which the opponents lack of. Technology improve the quality. With advanced
technology, TGV cinema is able to provide higher quality of movie experience to satisfy
customer demand. New inventions which involve so much creativity is releasing from
time to time. New inventions eventually become a trend for the people to try out as a
fresh experience. In other words, trends are created will be followed by the people. This
effectively strengthen the position of TGV Cinema in the market.

It takes money to make money. By spending more to enhance the facilities and
services to customers, it would favour our company as we are able to make customer
feel good and satisfying about our company. Quality of our products have to be good
even though it requires more money to invest but it’s worth it and necessary to attract
more customers.

Another essential element in running business is to satisfy customer’s needs as much

as possible. For example. TGV cinema offer clean environment throughout the cinema.
Rubbish bins are set up everywhere for the convenience of the people. No trash and
littering are found on the floor. Besides, restrooms are constantly under cleaning service
to avoid being smelly and disgust the people. With these, customers will be satisfied
and continue to support our company.
 Quality of products offers determine the business whether to be successful or a
failure. TGV Cinema focus on investment on resource and development that’s
constructive to the service and products. Differentiation is the key strategy to help TGV
Cinema to outdo the rivals by introducing special features in the products which are not
found by the other companies. In short, differentiable products are much needed to win
in the market.

Sun Zi’s philosophies can be applied in many aspects of life. For example, fighting
battles that we are destined to be victorious. Human are prone to weaknesses such as
laziness and reluctancy, which have to be overcome by strong determination and
reasonable environment. For instance, if we are trying to improve in studies, visit the
library for a conducive environment to make research and gain knowledge, avoid
staying in distracting places such as nearby television and radios.

Another application in life is that building good habits by first identifying clearly our
ourselves. A clever general, therefore, avoids an army when its spirit is keen, but attacks
it when it is sluggish and inclined to return.” To apply this, we have to be smart by
knowing the areas where bad habits are strongest but attacks it when it is easy to change.
(Clear, J. 2016, October 10).
References

Chooi, W. Y. (2016).ENHANCE WALK-IN MOVIE-GOERS’ CINEMA

EXPERIENCE IN PENANG (pp.3-5).Retrieved from
http://eprints.usm.my/31575/1/Chooi_Wei_Yee.pdf

Clear, J. (2016, October 10). Applying Lessons from Sun Tzu and The Art of War to
Everyday Life. Retrieved from https://lifehacker.com/applying-lessons-from-sun-tzu-
and-the-art-of-war-to-eve-1787621192

Lim, I. (2016). TGV confirms exploring Kelantan market, but says no Kota Baru cinema
plans yet. Retrieved from
https://www.malaymail.com/news/malaysia/2016/01/31/tgv-confirms-
exploring-kelantan-market-but-says-no-kota-baru-cinema-plans-y/1051347

Milad Hassandarvish. (2019, March 21). TGV Opens Cutting Edge Cinema In I-City,
Freebies Up For Grabs. Retrieved from
https://www.malaymail.com/news/showbiz/2019/03/21/tgv-opens-cutting-edge-
cinema-in-i-city-freebies-up-for-grabs-video/1734970

Ngui, N. ( 2016). Vietnam cinema venture to boost PPB earnings. Retrieved from
https://www.thestar.com.my/business/business-news/2016/05/11/vietnam-
cinema-venture-to-boost-ppb-earnings/

TGV Cinemas. (n.d.). Our core values. Retrieved from

https://www.tgv.com.my/careers/core-values

Zulkepli, I. (2019).GSC,TGV and MBO cinema Promotions. Retrieved from

https://www.comparehero.my/travel-lifestyle/articles/gsc-tgv-mbo-cinema-
promotions