MUHAMMAD SYAHMI BIN ANUA (MC230521983)

BAGB3013
STRATEGIC MANAGEMENT
Topic Review 2

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

MUHAMMAD SYAHMI BIN ANUA (MC230521983)

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 pe
 MUHAMMAD SYAHMI BIN ANUA (MC230521983)

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
1. Limited parking bays
discourages members of the
public from driving their own
personal vehicles
2. LRT, MRT and Monorail’s
operating area is still limited
3. Continuous assistance from the
government
Threats
1. Availability of free busses in
Selangor
2. Improved service of busses
and Monorail, LRT and MRT
3. More intense competition
from e-hailing rivals like
Grab and MyCar.
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

Strengths (S)
1. Loyal employees (i.e. drivers)
2. Recognized brand
Opportunities (O)
1. Limited parking bays
discourages members of the
public from driving their own
personal vehicles.
2. 2. LRT, MRT and Monorail’s
operating area is still limited
3. Continuous assistance from
the government
Threats (T)
1. Availability of free buses in
Selangor.
2. Improved service of buses and
Monorail, LRT and MRT.
3. More intense competition from
e hailing rivals like Grab and My
Car.
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
MUHAMMAD SYAHMI BIN ANUA (MC230521983)
Weakness (W)
1.Slow in technology adoption
2. Number of taxis owned
SO STRENGTHS
1. Corporate Social Responsibility -
By providing initiatives to up-skill
and improves their financial
resilience with the assistance from
the government.(S1, O1, O3)
2. 2. Increase the number of
employees to tap into areas where
public transportation in limited. (S1,
O2)
(ATTACKING STRATEGY)
ST STRATEGIES
1. Since customers recognize the
brand of the Taxi, they can provide
promotional offers for users or
membership so they will use the
service more often. (S2, T6)
2. Ensure the standard of their
brand stands for more than just
cheap rides so customers will prefer
using their service. (S1,T1,T3,T4)
(DEFENSE STRATEGY)
WO WEAKNESS
1. Increase the number of taxis
owned at places where public
transportation is still limited or
untapped (W2, O2)
3. Upgrade the service in the taxis
with the assistance given by the
government. (W2, O3)
(BUILDING STRENGTHS FOR
ATTACKING STRATEGY)
WT STRATEGIES
1. Hire application developers to
improve the technology such as
cashless payment in the taxi. (W1,
T2, T3)
2. Improvise the system in the taxi
whereby every booked taxi would
display the details on the driver for
the safety of the passengers and
wise verse abiding to the safety
policy by the ministry. (W1, T4, T5)
3. 3. Utilize the number of taxis
owned to do diversification of
service that satisfy customers’
needs such as food delivery as the
number of customers are lower
due to the pandemic in Selangor
and KL. (W2, T7, T3)
(BUILDING STRENGTHS FOR
DEFENSIVE STRATEGY)
 MUHAMMAD SYAHMI BIN ANUA (MC230521983)

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 0.03 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 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)

 Market penetration strategy: Brainy Aulad can offer discounted tutoring packages to existing customers to
encourage them to sign up for additional courses.

 Market development strategy: Brainy Aulad can expand its services to new geographical areas by
partnering with schools in different cities to offer after-school programs.
 MUHAMMAD SYAHMI BIN ANUA (MC230521983)
 Product development strategy: Brainy Aulad can introduce a new online learning platform with interactive
features to enhance the learning experience for students.

 Diversification strategy: Brainy Aulad can diversify its offerings by launching a series of educational
workshops for parents to help them support their children's learning at home.

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.
 MUHAMMAD SYAHMI BIN ANUA (MC230521983)
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