BACHELOR BUSINESS ADMINISTRATION HONS

SEMESTER 9 / 2023

BBPS4130
STRATEGIC MANAGEMENT

MATRICULATION NO : 96011310543001

IDENTITY CARD NO. : 960113-10-5430

TELEPHONE NO. : 6019-3085349

E-MAIL : emilyzainudin@oum.edu.my

LEARNING CENTRE : BANGI LEARNING CENTER

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Table of Content

No. Content Page

1.0 The vision of Focus Point 3
1.1 Vision Evaluation 3
1.2 Mission evaluation 4
1.3 Analysis of Vision & Mission Statement 4
2.0 External Environmental Factor Matrix (EEFM) 5
3.0 Internal Organizational Factor Matrix (IOFM) 7
4.1 SWOT Analysis 8
4.1.1 TOWS Matrix 10
4.1.2 Strategies for Focus Point 11
4.2 Focus Point BCG Marix 12
4.2.1 Market Growth Rate 14
4.2.2 Market Share 14
5.1 Corporate Strategy 15
5.2 Business Strategy 17
5.2.1 Cost Leadership Strategy 17
5.2.2 Differentiation Strategy 17
5.2.3 Focus Strategy 18
6.0 Evaluation and Control 18
6.1 Cross utilization of existing staffs 18
6.2 Proper Monitoring system 19
6.3 Effective Price-cutting strategy 20
7.0 References 20

1.0 The vision of Focus Point

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It all began in 1989, with the inauguration of the first Focus Point outlet in Muar, Johor. It
was simply called Focus Vision Care Centre at the time, and the store was little more than a
modest counter in a retail mall. Focus Point have developed from a small-town optical store
to a corporation that not only dominates the eyewear retail market in the country, but is also
poised to make its impact on the region. It has undoubtedly been a long trip. Following the
formation of Focus Point Sdn Bhd in 1993, a central office in Johor Bahru was established to
give management and operational support to the rising number of retail outlets. 1.1 Focus
Point's objective is to become a prominent Asian brand. But new chances presented
themselves, and they finally expanded to the nation's capital, settling in Petaling Jaya in 2000.

Their management reached a tipping point as the firm continued to thrive. The decision to
launch a franchise scheme was motivated by the notion that people are the most valuable
asset, as well as a desire to provide possibilities for growing young entrepreneurs. Focus
Point launched into the Food and Beverage sector in 2012, opening their first Japanese
concept bakery outlet - "Komugi" in Kuala Lumpur. In 2019, they expanded beyond the
bakery retail sector to encompass the provision of pastry items to large corporate customers,
aided by Halal certified central kitchen in Kota Damansara, as well as the extension of the
licenced Komugi shops in international markets.Focus Point were listed in 2010 and are now
a market leader in optical and food and beverage operations.

- To become a leading brand name in Asian through focused approach in vision care.

- To provide consumers with the best vision care and eyewear services as well to uphold the
highest standards in reliability, quality and professionalism.

1.1: Focus point is constantly committed to offering exceptional customer service and a
pleasant shopping experience to all customers, domestic and international, and anticipates
further growth in the next years. Providing the greatest quality vision care and eyewear
services, as well as adhering to the highest standards of dependability, quality, and
professionalism, are essential components of the Group's vision and strategy for keeping the
name of its industry-leading optical brands. Their goals are to keep developing new features
that improve the client buying experience on their website.

The organisation has invested in a sufficient number of optometrists and certified opticians to
dispense spectacles and contract lenses in optical shops. The Group will continue to invest in
Primary Care equipment to serve as a first point of contact for patients seeking refractions,

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glasses, or contact lenses, as well as screenings for eye problems and diseases and referrals to
specialists as needed.

1.2: While their objective is to "provide the best vision care and eyewear services for
customers, as well as high-quality bakery and pastry products, while upholding the highest
standards of reliability, quality, and professionalism." Reliability is critical to the profitability
and sustainability of a developing business. This mission statement demonstrates that they
have good values and tags to manage the company by building a reputable consumer base.
Professionalism is a primary priority at Focus Point. They recognise, as a leader in the eye
care market, that they are in this industry to deliver more than simply products.

Their services, knowledge and staff all contribute significantly to their ranking as one of the
top, and are the key reasons why customers select Focus Point for their eye care
requirements. Customers are guaranteed to obtain genuine Focus Point products, which are
sourced directly from renowned brands to ensure that they are always original and new.

1.3: They have always worked cooperatively with suppliers and vendors to ensure that the
quality of their products and services meets or exceeds the expectations of their customers.
They prioritise long-term partnerships with suppliers because they boost efficiency and
dependability in producing products that exceed client expectations. Periodic reviews verify
that product and service quality satisfies applicable criteria and standards. Furthermore, they
urge their employees to attain their full potential and to have important and fulfilling careers.
They are dedicated to developing and keeping talent by implementing significant skill
development and training programmes that provide equitable opportunity regardless of age,
race, or gender. As a result of their belief in giving back to the community, Focus Point
established the Focus Point Caring Hearts Charity Foundation. Similarly, they established the
World Sight Day 2019 campaign, which advocates for vision care issues among school-aged
children and young people. Since 2012, the Group has made a positive step by offering free
eye tests to schools, distributing 600 pairs of glasses to deserving pupils, and donating to
underserved communities through annual sales contributions.

As a responsible corporate citizen, the Group will pursue long-term growth, environmental
stewardship, and social responsibility through sustainable business practises.

2.0 External Enviromental Factor Matrix (EEFM)

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 Strategists can summarise and assess economic, social, cultural, demographic, environmental,
political, governmental, legal, technological, and competitive information using an External
Factor Evaluation (EFE) Matrix. The EFE Matrix shows if the company is capable of
properly utilising available opportunities and minimising external dangers. Similarly, it will
assist the strategists in developing new plans and policies based on the company's current
situation.

External elements are extracted after a thorough internal examination of the external
environment. Obviously, there are some advantages and disadvantages for the organisation in
the external environment. That is why external influences are classified as either
opportunities or threats. Opportunities are chances that exist in the external environment; it is
up to the firm whether it is willing to utilise the opportunities or reject them due to a lack of
resources. Dangers are usually bad for the firm; a low number of external dangers opens
several doors for the firm. The greatest amount of risks to the firm's influence in the industry.

EXTERNAL FACTOR EVALUATION OF FOCUS POINT HOLDINGS BHD.

Weighted
No. External Environment Factors Weights Rating
Score

Opportunities

1 Increasing in online sales 0.08 4 0.32

2 Rising of demand in eye wears due to myopic 0.06 4 0.24

3 Business in demographics getting stronger 0.05 4 0.2

Youngsters are increasingly concern of using fashionable

4 0.06 3 0.09
eyewear brands, especially contact lenses

5 Innovation in product development 0.03 4 0.12

High prospect for laser eye surgery treatment with

7 0.05 3 0.15
technological advancement

Continue to acquire new customers while increasing

8 0.05 4 0.2
supply to current corporate customers.

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 9 Offer more pastry products for F&B business 0.05 4 0.2

Threats

Closure of all retail outlets operations during the MCO

1 0.06 4 0.24
period.

2 Economic downturn due to global COVID-19 pandemic 0.05 3 0.15

3 Decrease in household income in the country 0.06 3 0.18

4 New restriction and SOP's imposed by the government 0.03 4 0.12

Diversification of fake products with many brand names

5 0.02 3 0.06
and a wide range of products from all the top competitors

6 0.05 3 0.15
Walmart as the world's largest retail Company

Optical Act 1991 of Malaysia (ban the selling of contact

7 lens from online platform) 0.2 3 0.6

8 0.04 4 0.16
Higher cost of inventories and materials.

Gross Domestic Product, unemployment rate, inflation

9 rate 0.03 3 0.09

10 0.03 2 0.06
Risen rental rates at shopping malls

TOTAL 1 3.33

According to the study in Table 1, Focus Point received a 3.33 in its industry, suggesting that
they respond to existing opportunities and threats more than the industry average. In other
words, their methods capitalise on available possibilities while minimising the negative
repercussions of external threats. This suggests that the Focus Point Company is performing
well. The maximum weighted total score is 4.0, so there is obviously room for improvement.

Given the significant concentration of large enterprises in the sector, Focus Point should
indeed optimise its external tactics to maximise the advantages of current possibilities while
also attempting to minimise dangers. Focus Point contends with fierce competition from

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well-known international, regional, and local industry competitors since it works in a highly
competitive market.

Therefore, companies should take advantage of the growing online sales opportunities and
trends in eyeglasses during this recession. If used properly, these opportunities can generate
more income revenue.

3.0 External Organizational Factor Matrix (IOFM)

An Internal Organisational Factor Matrix (IOFM) can be used to summarise the analysis after
determining the internal organisational environment and the main variables for the
organisation. The Internal Factor Evaluation (IFE) Matrix by David & David (2016) and the
Internal Factor Analysis Summary (IFAS) by Wheelen et al. (2017) are other names for this
matrix.

A factor with a score of 0.00 is completely unimportant and has no strategic influence on the
organisation. A factor with a score of 1.00 is highly significant and has a significant impact
on the organisation. The sum of the weights must be 1.00.

INTERNAL ORGANIZATIONAL FACTOR MATRIX OF FOCUS POINT HOLDINGS

BHD.

No Internal Key Factors Weights Rating Weighted

. Score
Strength
1 Leading in Optical industry in Malaysia 0.15 4 0.6
2 Technologically-advanced innovation in eye care brands 0.1 4 0.4
3 High product quality 0.06 4 0.24
4 Continuous R&D on potential new product and trend 0.05 4 0.2
5 Net profit made more than 35% as compared to 2018 0.04 4 0.16
6 Potential gains in franchise management business 0.03 3 0.09
7 Optical outlets are at strategic location (Shopping Malls) 0.03 4 0.12
8 HALAL certification status for F&B 0.03 4 0.12
9 Expansion of licenced Komugi outlets in oversea markets 0.04 4 0.16
& Asian region
10 Employee skill development and training programmes 0.03 3 0.09
11 Attractive sales promotion T20, M40 and B40 group 0.04 4 0.16

Weakness
1 High expenses on contract agreements (rental, insurance) 0.08 2 0.16
2 Mid to high pricing strategy 0.07 3 0.21

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 3 Less diversification in products 0.03 2 0.06
4 Targeting high-class customers 0.07 3 0.21
5 Inability to attract new franchisees to invest in F&B product 0.02 2 0.04
6 Low market presence to reach a diverse range of customers 0.04 2 0.08
7 Poorly managed food wastage in F&B operations 0.03 2 0.06

8 Loss of key staff including chef 0.02 1 0.02

9 Unsatisfactory customer service level 0.02 2 0.04
10 Credit Risk for franchise outlets 0.02 3 0.06
TOTAL 1 3.28

Focus Point's internal position received a 3.28 rating in the evaluation described above. This
indicates that they have strong points in terms of profitability, technology, product quality,
and the capacity to fund their charitable endeavours. However, given how difficult it is to
innovate at a level that might draw in more middle-class buyers, they might need to expand
their R&D spending.

Instead, Focus Point can think about manufacturing products in the mid-low price range with
more variety to pique the interest of a wider customer base. Their new markets are
developing and showing success, allowing them to expand internationally and become well-
known in Asia, the Philippines, Australia, and Brunei. The positive development indicates the
possibility of additional expansion and the availability of further chances. To fulfil their
expansion ambitions, the food and beverage operations and franchise outlets must be
managed well.

4.1 SWOT Analysis is used to evaluate the company's capabilities and find potential
prospects that could impact the success of the organisation and improve its current status. The
performance of Focus Point is assessed using the next SWOT analysis.

STRENGTH: Focus Point Holding Berhad has a solid market reputation and operates in a
variety of industry categories with great consumer confidence. They are in a good financial
position in the optical industry, which allows them to conduct more research, create new
goods, and conduct business as usual without hindrance. Focus Point also has a high degree
of client satisfaction because to its qualified eye doctors, optometrists, and opticians. Their
online and Halal certification market distribution also dominated a larger consumer market
and increased their offering of F&B services to corporate clients.

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 WEAKNESS: Focus Point faces difficulties enhancing their financial reporting credibility to
investors both locally and globally due to high contract charges including renting, insurance,
supplier, and MFRS 16. Their lack of market presence has an effect on market share growth,
revenue, and profitability. Additionally, the high optical brand pricing strategy runs the
danger of losing clients to rival businesses. Finally, a major hindrance to the company's
capacity to expand its F&B sector is its failure to draw new franchisees. To become more
competitive and appealing to potential investors, they are constantly evaluating the franchise
agreement and business strategy.

OPPORTUNITY: The contact lens industry, in particular, is expanding by double digits. As

cosmetic and fashion accessories, contact lenses and eyewear are used by the younger
generation. According to demographic data, approximately 40% of Malaysians had myopia,
which increased demand for eyewear due to visual impairment. The technology behind laser
eye surgery has also advanced with higher accuracy, rapid processing, and minimally
intrusive techniques. Focus Point's business-to-business (B2B) food and beverage (F&B)
delivery is back to 100%. According to HLIB Research, Focus Point's F&B business is
growing thanks to a new clientele of corporations. The company's expansion involves
offering frozen Komugi products at particular stores in addition to white-labelled goods.
Regarding the neighbourhood Airline M, HLIB Research pointed out that Focus Point is still
awaiting the purchase order (PO) and has elevated this to the top of its priorities. Focus Point
anticipates Customer M's successful on boarding to increase its central kitchen 2 (CK2)
utilisation rate from its current 50% to 80%, since the volume is anticipated to match the
company's largest corporate client.

THREAT: Due to all of the eye care retail outlets closing, the MCO has experienced a
negative impact on its revenue. Primary household income has also been hit, which has
decreased consumer spending power and business earnings. Additionally, low-cost imitation
optical companies run the risk of losing their premium position and market niche. Focus
Point contends with rising leasing costs as well as rising product pricing and rising raw
material costs. On the other hand, the traditional retail process is impacted by e-commerce
sales, as fewer customers visit physical stores.

4.1.1 TOW MATRIC

External Factors Internal Factors

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Opportunity
1. Product innovation as a result of
rapid technological advancement
2. Growth in online sales
3. Expansion of authorized
Komuji sstores in
international market and
Asian region
4. Company demographics that are
strong
5. Increasing eyeglasses demand
Threat
1. Fake (counterfeit) optical
brands
2. Higher material and
inventory costs.impacts
spending patterns
3. Increased rent costs at malls
4. Physical stores and traditional
retail are impacted by the evolution
of e-commerce Risen rental rates at
shopping malls
5. A global COVID-19 Pandemic
related decline in economy
6. Recuced ousehold income effects
consumer buying habits.
4.1.2 Strategies for Focus Point
a) Head for a grab-and-go bakery concept.
Strength
1. Programmes for employee skill
development and training
2. Focus Point has been a top optical
brand in Malaysia for 30 years with
high-quality products.
3. Potential for growth in the
franchise management industry
and a solid financial position
4. Ongoing research and
development on new products
and trends.
5. For T20, M40, and B40 group,
enticing sales promotions of up to
70% are being offered in order to
attract new clients.
SO strategies
1. Increase regional networking for
brand exposure
2. Keep train personal on staff to
remain creative
3. As you approach the grab-and-
go bakery idea
4. Concentrate on product
development and innovation
5. Make Investment I min-store at
various place to grow market
share and satisfy client demand
ST strategies
1. Continue to keep an eye on costs
by looking for deals and
alternative sources of suppliers
2. Focus the business efforts to create
higher-caliber work.
3. Use online tools to schedule
appointments and offer customer
support.
4. Monitor and assess operational
effectiveness to maximize resource
use
Weakness
1. Minimal product diversity
2. High contract agreement costs
3. Costly pricing model aimed for
high-income consumers
4. A small market presence is
needed to reach a wide variety
of customers
5. Unable to entice new
franchisees to invest in food
and beverage producers
WO strategies
1. Work together with media
partners to develop
sponsorship strategies for
films exhibition and
competitions to improve
product exposure.
2. Enhance the mechanism of the
current company model to
draw in potential investors.
3. Put an emphasis on digital
marketing and social media
advertising to raise brand
awareness
WT strategies
1. Increase capacity and reduce
costs by subcontracting
2. Examine the present
physical shop space and
consolidate the
operational aspects of the
company.
3. Implement inexpensive
marketing techniques (emails,
WhatsApp, referrals)
4. FP can use devoted clients or
consumers as brand
ambassadors to advance the
company.
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The quick alternative for customers who were in too much of a hurry to place a personalised
order at the serving stations, grab and go used to be the tail on the onsite dining dog.
However, it is now in danger of becoming the whole beast, or at least a sizable portion of it.
The causes are numerous, but many of them—as with so much else in today's world—have to
do with COVID. Many operators who stayed open began to provide pre-prepared, packed
food for takeout that needed little to no customer time on the premises and little to no
interaction with dining employees as the pandemic prompted operators who remained open to
restrict the number of people in a dining venue at any given time. Grab & go meals have the
added benefit of streamlining production in onsite kitchens with personnel shortages or in
off-site commissaries where economies of scale can be used.

Grab-and-go and pre-ordered takeaway account for a rising market share of the total number
of meals delivered by onsite dining programmes across the majority of categories, and it is
unlikely that this trend will change even if Covid were to be killed tomorrow. The factors
driving this on both the supply and demand sides range from technological advancements and
manufacturing efficiencies to cultural demands for more convenience and safety concerns.
Focus Point may establish a modest station where patrons can easily enter, choose their
meals, and savour excellent options. Consumers take into account many factors while making
purchases outside only texture and cost. They seek out more customised choices and value-
added services. Therefore, Focus Point could profit from the following practical advice when
putting this idea into practise:

• Be creative with food presentation. Customers will enjoy the eye-catching displays and
reach for items that they have already deemed delicious based on their appearance.

• Label the "best sold items" with dates so that customers can see the worth of their meal and
feel more trusting of the company.

• Recognise customer purchasing trends and plan production of the items that sell out the
quickest in larger numbers.

• Keep abreast of the most recent trends in food and drink.

• To draw in more customers, keep clear visibility in the packaging design.

b) Prioritise social media advertising and digital marketing

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In spite of logic's predictions that retailers' ability to interact with customers and establish
their brands online would result in a less interesting personal touch, this has actually
happened. Using software that enables virtual eyeglass fittings or live connections to events
at other stores, many businesses are also striving to duplicate certain aspects of their in-store
experiences online. With more e-vouchers & discounts, pricing are uniform across all forms
for retailers using this strategy. Customers have a variety of alternatives, including online
buying with home delivery, in-store pickup, and self-collection at a pick-up location close by.

In order to communicate with clients, they need maintain a presence on social media
platforms including Twitter, Facebook, Instagram, YouTube, Pinterest, LinkedIn, and mobile
apps. When compared to Hugo and Ray-Ban, who both have over a million followers, Focus
Point only has 13.4K followers on Instagram. The potential to promote their companies is
tremendous when individuals spend more time on social media. To attract and reach a global
audience, FP should also regularly offer contests, open events, gratis giveaways, YouTube
reviews, and paid promotions of local and foreign musicians.

4.2: Focus Point BCG Matrix

According to Mohajan (2017), the link between market share and market growth, often
known as the Boston Consulting Group "BCG" matrix, is the most widely used factor in
establishing the long-term sustainability of a firm portfolio.

High Relative Market Share Low

High

Star Question Mark

Cash Cows Dogs

$
Low

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Focus Point is currently in the Question Mark category, as evidenced by the fact that its
market growth is greater than its lower market share. Given that household income in
Malaysia is declining and many consumers' purchasing power is declining, the retail sector or
industry has an unpredictably high potential. Consumers typically spend less on goods and
services because they have less discretionary income. As the industry is expanding daily, we
can observe from Focus Point's market positioning that the market share is lower because
there is a smaller selection of products accessible to meet client needs.

Perspective on market share and growth rate for Focus Point directives:

• Optical retail business: Focus Point currently has up to with more than 180 locations
nationally and more than 230 eye care specialists available to help. After that, they want to
open 15 more optical stores in 2023. Additionally, 2 new locations were opened in total, and
2 underperforming locations were combined. 100 Focus Point outlets and 16 Whoosh outlets
are part of the 116 own-outlets we have created so far. There are currently 61 franchise
outlets in total.

• Franchise management: As a result of their several honours, including "Franchisee

of the Year," "Best Homegrown Franchisor," and "Best Outlet Growth," they will be
motivated to keep training franchisees in order to attain their target of 65 to 100 franchisees.
Additionally, they are creating plans to grant a franchise licence to their qualified optician or
optometrist.Revenue for the franchise management company remained at RM3.1 million
from the prior year. The franchise management sector experienced a 45% increase in
FYE2021 compared to FYE2020.

• Food and beverages: Along with 20 retail locations run by franchisees in the
Philippines and four in Brunei, Focus Point operates 11 Komugi retail outlets in Malaysia
that serve Japanese pastries and baked foods. Next year, they intend to open three to four
street shops and explore ways to expand the Komugi café idea. There are now two of these
outlets.

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4.2.1: Market Growth Rate

It is harder to please customers with the shopping experiences because their purchasing habits
are continually shifting. Focus Point must therefore reconsider its pricing strategy as the vast
majority of the products it sells are branded imports, as is well known. When Focus Point
manages their house brand items, they can effectively control their operating costs at cheaper
prices because the cost of distribution is lower than that of their rivals. As a result, Focus
Point can turn a profit as its distribution networks expand across Malaysia. The low-price
strategy also prevents new entrants from entering the current market. Sales volume
consequently continued to increase. Although the market seems crucial and vibrant, Focus
Point faces difficulties in maintaining its market share.

According to Martin (2020), in order to identify whether a company is making a reasonable

investment to increase its market share, question marks must be examined efficiently. The
potential Question mark has a positive growth prognosis, spends a lot of money, but can't
generate much money because of its modest market share. The Question mark, though, has a
bright future as a market leader to overtake the Star. If it doesn't lead the market, the
likelihood of prolonged cash usage will decrease, market growth will inevitably slow down,
and the Dog category will emerge.

Because of the intense rivalry in this industry, Focus Point is still having trouble gaining
market share and reaching the Star level. On websites like Lazada, Shoppe, 11 Street, e-bay,
Amazon, Taobao, Groupon, Carousel, and others, a number of rivals sell the same good or
service, including Ray-Ban, Chanel, Hugo Boss, and Solariz. Even though FP developed its
expansion plan considerably earlier, the business still faces intense competition from
consumers who can buy their eyewear from a variety of retailers. To gain market rivalry and
share, it might be necessary to raise investment and reduce profits. The majority of the new
investment expenditures go into marketing and drawing customers to the products and
services that increase corporate productivity.

4.2.2 Market Share

Focus Point must therefore devise an effective business plan to address this consumer base by
increasing its market share. FP, on the other hand, must continue to use marketing methods
such as generating novel marketing concepts that attract new customers and investors to their
Komugi locations. FP's promotional activities, however, can be expanded to include extra
points, birthday treats, welcome presents, in-app promotions, loyalty coupons, and

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combination packs. Because of their superior grasp of marketing techniques, consumer
behaviour, and attempts to acquire and keep more customers, the company will progressively
raise its market share and finally reach the Star stage.

5.1 Corporate Strategy

Mergers and acquisitions are used by businesses to rebuild, acquire market share, and remain
ahead of the competition. Not every corporate exercise, however, has resulted in the
anticipated goals and consequences. We shall explore the chosen corporate strategies for
Focus Point's future orientation here.

Companies engage in mergers and acquisitions to rebuild, acquire market share, and stay
ahead of the competition. However, not every business exercise has resulted in the
anticipated goals and consequences. We shall explore the chosen corporate plans for Focus
Point's future here.

a) Integration strategy allows a corporation to exert influence over its distributors,

suppliers, and competitors by saving money on transactions and shipping. As a result, the
company's end product price is reduced, and the corporation can win a bigger market share
by cutting product prices. Focus Point, for example, can set up an online store and sell its
items using digital marketing. Previously, it had to rely on retail corporations and marketing
services to properly sell its products.

Forward integration can, however, boost a company's entire ownership of the sector at a cost
and with limited reach in the supply chain. The supply chain process include raw materials,
intermediate products, manufacturing, marketing, sales, and after-sale service. Focus Point
must advance up the value chain while maintaining control over its existing operations, or in
other words, maintain its initial position in the chain, if it intends to do forward integration.
This can only be accomplished if the business has sufficient financial and personnel resources
by locating more funding and investors.

b) Intensive strategy involves putting in a lot of effort to raise the market share of
current products. By boosting promotional operations at a lesser cost and stepping up
awareness efforts, market penetration seeks to boost sales of its current products. By infusing
innovation into its current products through R&D, Focus Point also aims to strengthen its
market position and sales.

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Recent supply agreements with a big café chain, a Japanese retailer, and a Singaporean
convenience store chain were inked by Focus Point's F&B division. The shutdown has put a
stop to the group's ambitions for potential Komugi franchisees in the Middle East. When
putting this strategy into practise, it's also crucial to take into account significant market
research, planning, prototypes (functionality), product evaluation, cutting-edge digital
models, cost, and scheduling.

c) Diversification Strategy offers more options and variety to boost brand recognition
and business profitability for goods and services. Focus Point has created eyewear in this way
under its own brand, Whoosh, and intends to distribute them abroad. In addition, they
concentrate on kiosks to more effectively control F&B overheads and maximise capacity by
subcontracting to outside companies rather than creating new outlets. Additionally,
concentrated diversification calls for the addition of comparable goods or services to the
current business.

However, because generic versions are also marketed in other countries, taking Whoosh there
is difficult. Given that this business sells worldwide brands, it can be a disadvantage for the
own-brand advertising. In addition, installing and maintaining kiosk machines with new
hardware and software features is exceedingly difficult and expensive. Due to unclear orders
and directions, the Kiosk occasionally is not user-friendly. If clients are unable to use the
Kiosk machines, this means that personnel must continue to watch the transaction. Instead of
what a kiosk is supposed to perform, this situation is unproductive for the staff.

Focus Point may also find it difficult to work with a subcontractor because they don't have
their own capabilities. The calibre of the work performed by subcontractors may not be
something they can directly control.

d) The retrenchment strategy becomes a method for ensuring an organization's

financial stability by lowering the volume or diversity of organisational operations. In order
to consolidate corporate operations, Focus Point is shutting low performing outlets and
examining the space that physical stores now occupy. As cost-cutting measures, they can also
implement the grab-and-go bakery concept and create miniature optical shops. The food
should be pre-packed for the grab-and-go bakery idea to provide speedy service and
consumer convenience. This should be carried out methodically and more quickly than ever.
In order to maintain food safety and hygiene to the required levels, actions like tamper-proof
packaging and utensils in sanitary wrappers are crucial. Despite the process' complexity,

16
drive-thru enterprises can still be surpassed with efficiency improvements and a sound
monitoring system.

5.2 Business Strategy is a competitive strategy that emphasises strengthening businesses'

positions within market or industry segmentation. Companies can pick between three
different business strategies: cost leadership, differentiation, and focus (Porter, 1980). Let's
look at how the upcoming business strategies will help Focus Point's enterprise.

5.2.1: Cost Leadership Strategy is utilised when a corporation wants to produce their goods
at the lowest possible cost. This approach calls for effective scaling facilities, a relentless
pursuit of experience curve cost reductions, strict cost-management, and overhead control in
particular functional areas, such as marketing, services, R&D, and advertising. Customers
may believe Focus Point is offering them inferior or third-grade items by using the cost
leadership approach and lowering their selling price. In order to meet customer demand and
requirements, Focus Point must inform their clients that the lowest price offer is the result of
a close cooperation with suppliers.

Furthermore, because some products are hard to foresee, Focus Point can find it challenging
to switch fast with the application of this technique. Malaysian sugar prices, for instance, are
extremely unpredictable. Therefore, it will be extremely difficult to keep the price level for
Komugi cakes. The same is true for the optical sector, where Luxottica, a single business that
controls 80% of the eyewear market, was primarily responsible for the high prices. As a
result, the price of raw materials and delivery is still dependent on market conditions.

5.2.2 Differentiation Strategy is a tactical approach used to target companies looking to

develop brand loyalty. For instance, Focus Point can use its in-house brand, Whoosh, to
replace goods for those that customers want but can't get. This will improve their domestic
branding, however Focus Point must keep their product prices the same because the prices of
their rival brands are low. If clients feel that the Focus Point home brand features are not
acceptable for a greater price, this plan would not work, nevertheless. In addition, this
approach will need a big investment and a lot of time to work. As a result, FP could not have
enough consumer demand while implementing a new marketing strategy.

Additionally, because it uses all luxury brands under one roof, this method is impossible. The
artwork and designs for the products are the work of the respective brand names, not Focus
Point. The differentiation approach is effective as long as the company or organisation can
demonstrate the distinctive or differentiating qualities of its goods or services. Thus, an

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essential component of the differentiation strategy is an awareness of consumer purchasing
behaviour, trends, tastes, and preferences.

5.2.3: Focus Strategy entails offering specialised clients a product that is personalised to their
preferences and requirements. It is designed for a specific target audience or competitive
market. Focus Point intends to use telemarketing in order to serve clients over the phone,
deliver the product to their doorstep, offer promotions and discounts to specific
demographics, and advertise on the digital market in order to reach a larger audience and save
money. Additionally, they now offer e-vouchers that demand clients stop by one of their
locations for an eye exam. Additionally, they introduced "Vision Care on Call" three months
ago, a service in which their knowledgeable staff conducts home visits. This is crucial for
senior individuals who might be unable to visit the mall because of health issues.

A second unit that will supply the group's B2B channel is being put up when the first central
kitchen of Komugi reaches its capacity. This is estimated to generate more than RM4 million
in monthly corporate sales once it reaches full capacity by the end of 2021 (Poo, 2020).
Therefore, Focus Point needs a team dedicated to marketing these techniques and monitoring
the outcomes for improved coordination and integration efforts.

6.0 Evaluation and Control

We must look at how an organisation links its goals with the means to achieve them in order
to assess its effectiveness and efficiency. Therefore, the strategy will be successful if it allots
enough resources in accordance with the plan and yields the intended results. Here are some
ideas for Focus Point to use while putting good plans into action:

6.1 Cross utilization of existing staff

Enhances employee comprehension of the organization's roles and duties, offers scheduling
flexibility, and enables more qualified employees to offer improved customer service and
boost their contribution to the company. To offer their existing local optometrists and
optician’s greater authority or responsibility than new/unknown franchisors, Focus Point, for
instance, can train them to manage franchise stores before transferring them to an overseas
branch. With this strategy, risks are reduced and productivity may be increased as people are
exposed to working in various sectors of the business.

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Focus Point Heads must consult with the managers or executives of their respective units
regarding the implementation of a systematic framework for cross-utilization and obtaining
support from human resources for cross-training programmes.

The management should assess the new procedures once the cross-utilization journey has
advanced by looking at the number of new franchisees and investor list to determine if it has
significantly improved over prior years. The certified team members may then be transferred
by Focus Point to their new branches or locations at random times so that they are always
prepared to perform and execute. If the employee's workload has increased as a result of
cross-utilization to the extent where they are unable to carry out their role(s) effectively,
recognising as soon as possible is crucial to implementing this technique into their present
franchising process.

6.2: Proper monitoring system may increase productivity in several different ways. The
Transaction Processing System (TPS), Store Hub, and other POS systems of today provide
features and functions that don't require a lot of manual labour. For instance, rather than
measuring everything by hand to set up a grab-and-go food idea, we can invest in automatic
inventory tracking apps or a system with a cloud-based inventory management system. All
orders are tracked, real-time data on customer purchase trends is generated, demand changes
are forecasted, and each item is tracked as it arrives to determine if it is used or wasted. The
kitchen staff will be able to refill the supplies as they become depleted during periods of
heavy demand. Therefore, with the convenience of an inventory system, bakers may focus on
preparing a large order of cakes or pastries.

The system is also capable of sending regular updates based on POS storage levels with the
most and least popular food items, as well as real-time notifications through email and
smartphone. By doing this, it is ensured that restaurant records are maintained current. By
streamlining F & B operations while dealing with purchases and tracking performance levels,
the management kept itself updated on its activities as well.

The fact that technology is essential to a company's success does not, however, imply that it
is faultless. Faults can happen at any time and cause a business to shut down completely.
Therefore, it would be essential to oversee and maintain the appropriate operation of any
organization's important computer infrastructure in order to prevent a potential breakdown
from adversely affecting the service provided to clients.

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6.3 Effective price-cut strategy becomes more pertinent in order to protect the reputation
and market worth of its goods and services. The developments in technology that have
allowed for price reductions, such as the CRM tool to categorise clients as new, active, or
inactive, should be the main point of focus. Therefore, specific advertisements can be sent to
them to entice them to pay another visit or make a purchase. Focus Point can also increase its
market share by lowering the price of its products to draw in customers and then raising them
after it has a sizable market share.

Price reductions may momentarily stop customers from complaining and increase earnings,
but they can damage the reputation of the brand and have long-term implications on
profitability. If the economy deteriorates, customers will demand discounts, which will cause
them to put off future purchases. Before changing prices, it would be wise to assess how
elastic the demand for the products is across different geographies. The rational pricing
strategy should match the equilibrium price in order to gain a competitive market advantage.
The marketing department at Focus Point may carry out surveys or introduce new prices to a
different target market to achieve this. This will persuade them that the price is the right one
for the goods or services. Many brand-new "dot.com" companies provide objective price
comparisons that FP can use to convince customers that the product is pricey but worth the
extra money.

7.0: References
The Edge. (2019, July 10). Focus point sees brighter F&B outlook for FY19.
Retrieved from https://www.theedgemarkets.com/article/focus-point-sees-brighter-
fb-outlook-fy19

Heneghan, C. (2016, January 06). 8 major challenges facing the food and
beverage industry in 2016. Retrieved from https://www.fooddive.com/news/8-
major-challenges-facing-the- food-and-beverage-industry-in-2016/411408/

Hossain, H., & Kader, M. A. (2020). An analysis on bcg growth sharing matrix.
International Journal of Contemporary Research and Review, 11(10).
doi:10.15520/ijcrr. v11i10.848

Martin, M. (2020, June 16). What is a bcg matrix? Retrieved from

https://www.businessnewsdaily.com/5693-bcg-matrix.html#:~:text=Question
%20Marks%3A
%20These%20parts%20of,in%20a%20high%20growth%20market.
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Poo, C. (2020, November 25). Focus point streamlines optical and F&B
ACTIVITIES. Retrieved from https://www.theedgemarkets.com/article/focus-point-
streamlines-optical and- fb-activities

Reh, F. (2019, May 03). Cross-Training employees Strengthens engagement and

performance. Retrieved from https://www.thebalancecareers.com/cross-training-
employees- 2275317

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