NAME: PAVITHERAN A/L CHANDRA SEKARAN
MACTRIX NO: MC200611294
STRATEGIC MANAGEMENT
Topic Review 1
Question 1
Classify whether the following situations refer to opportunity or threat to Crest Builder Holdings Berhad (CBHB).
The company is listed in Bursa Malaysia and its portfolio among all consists of construction, property development and
property management. You can visit its website at [Link] (8 marks)
a) Malaysia’s GDP decline by 3.5 to 5.5% within year 2020.
Crest Builder Holdings Berhad would be threatened by the following circumstance (CBHB). When there is a low
rate of national income, there is a higher rate of employment. When the economy experiences more
unemployment, fewer investors will be drawn into the market to purchase homes. As a result of unemployment,
fewer investors would be attracted to the market to purchase homes. This would result in a decrease in the value
of the dollar, reducing the potential client's purchasing power and reducing the potential client's ability to acquire
the properties.
b) Banks tighten the policy on loans approval.
c)
Crest Builder Holdings Berhad would be threatened by the following scenario (CBHB). In general, a stricter
policy procedure becomes more difficult due to the lack of proper documents and guarantees. When the bank
tightens policy, not everyone can comply, reducing the number of potential home buyers. As a result, it will limit
home sales, resulting in lower revenue for Crest Builder Holdings Berhad (CBHB).
d) Malaysian government reduced the minimum property price allowed for non-Malaysians to purchase from RM1
million to RM600,000 staring year 2019.
Crest Builder Holdings Berhad would benefit from the following circumstance (CBHB). Because Malaysia
is over-owned, the government believes that the temporary lowering of the minimum property price will
attract non-Malaysian buyers, Crest Builder Holdings Berhad will be able to sell more of its houses by
making them available to foreigners. Foreigners would view this as a smart investment, as it would reduce
Malaysia's over-ownership and at the same time increase CBHB's sales, increasing the company's overall
profitability.
e) Universities are conducting more research on the potential of kenaf fiber as a construction material.
Crest Builder Holdings Berhad would benefit from the following circumstance (CBHB). As universities
are conducting more studies on the use of kenaf fiber as a building material, CBHB may use kenaf as
an alternative material within concretes. CBHB will be able to reduce your costs because kenaf is
cheaper, renewable, reusable, and biodegradable. Also, because research and development are
conducted by universities, CBDB could benefit more from the discoveries without incurring research
costs. Conducted by universities, CBDB could benefit more from the discoveries without incurring
research costs.
Question 2
Construct an EFE matrix based on the mini case entitled The Neighborhood’s Clinic below. The number of factors in
your matrix should be at least TEN (10). Note that the mini case was written in 2017 hence some information may not
be relevant for your EFE. Please use your general knowledge on the healthcare industry as well to complete your EFE.
(12 marks)
The Neighbourhood’s Clinic
MEDIVIRON group of clinics is one of the largest chain clinics in Malaysia with over 173 clinics
strategically located in residential, commercial and industrial areas across Wilayah Persekutuan, Selangor,
Negeri Sembilan, Melaka, Johor, Perak and Penang. The business was founded by Datuk Dr. Lim Heng Huat
in 1984 and the first clinic was opened in 1985 in Sea Park, Petaling Jaya, Among the services provided by
MEDIVIRON clinics are general medical treatment and consultation, health screening, medical check-up,
circumcision, antenatal and postnatal care, immunization and vaccination for adults and children and
occupational healthcare. In fact, MEDIVIRON is the first company in Malaysia which provides a
comprehensive occupational health and safety consultancy.
The group’s experience in the area of occupational healthcare probably was the reason for the Malaysian
government to give approval to MEDIVIRON to conduct occupational hygiene monitoring for airborne lead
and to carry out medical surveillance under the Factories and Machinery Regulations (1984). The approval
helps to expand MEDIVIRON’s market to corporate clients. The group currently has more than 8,000
corporate and industrial clients. The strong tie between MEDIVIRON and the corporate and industrial
clients can be seen when the group’s founder, Datuk Dr. Lim represented the Malaysian Employer’s
Federation at the International Labor Conventions on Asbestos and Man Made Mineral Fibers in Geneva.
MEDIVIRON is also working closely with Social Security Organization (SOCSO) in organizing seminars to
create health and safety awareness in the workplace.
In the 33 years of its establishment, MEDIVIRON has won several awards. Among them are Asia Pacific
Entrepreneurship award in year 2015 and the Brand Laureate for Asia Pacific Brands Foundation a year
before that. Despite the recognitions received, employing the right strategy is very critical for MEDIVIRON
as the Malaysian healthcare industry is rapidly growing. In year 2016 the industry contributed more than
RM1 billion to the country’s GDP, This year, the contribution is expected to increase to over RM5 billion.
The growth of the sector can be explained by multiple factors including the changing demographic profile of
the Malaysian society and the demand from healthcare travelers (i.e. citizens of foreign countries who travel
to Malaysia purposely to seek medical treatment). Domestically the society has become more affluent and
more health conscious. Both trends created more demand for healthcare service. Apart from that, the
Malaysian society is ageing and naturally the aged requires more medical attention.
The Malaysian industry has historically been dominated by the public sector with the government investing
millions to build, upgrade, equip and modernize public hospitals and government clinics. Over the last
decade however, the private healthcare services has developed rapidly. To spur the sector’s further growth,
the government has introduced many initiatives including allowing locum practices for Ministry of Health
(MOH) doctors (i.e. doctors who are employed by the government can work on part time basis in private
hospitals and clinics). Similarly specialists who are attached to private hospitals can be engaged for
consultation in government hospitals and paid accordingly. In addition, the government also outsources
certain services like hemodialysis, radiotherapy, MRI and CT scan to the private sector.
As more growth opportunities appear in the market, more vultures emerge to share the enlarged pie.
According to the Deputy Health Minister, Datuk Seri Dr. Hilmi Yahaya, approximately 150 specialist doctors
from government hospitals resign every year, mostly due to dissatisfaction with the bureaucracy in the public
sector. These doctors typically will join the private sector after leaving their civil service. MEDIVIRON’s
years of establishment and list of awards may not be sufficient to retain its patients. One of its doctors who is
pursuing his Master of Business Administration (MBA) tried to prepare a CPM to determine how the group
fares compared to its competitors. Table 1 below shows the doctor’s incomplete CPM.
Table 1: CPM of MEDIVIRON Group
MEDIVIRON Qualitas Group Poliklinik Doktor
Azhar & Rakan-
rakan
CSF W R WS R WS R WS
1. Number of fulltime doctors 3 2 2
2. Number of clinics 4 2 3
3. Number of qualified nurses 3 2 1
4. Location of clinics 2 2 2
5. Variety of services 4 3 3
6. Financial strength 3 4 2
7. Bond with insurance companies 4 4 2
8. Relationship with pharmaceutical 3 4 2
companies
9. Waiting time (for patients to be 1 3 2
treated)
10. Quality of medicine 3 2 2
Total
References:
1. Country Health Plan: 10th Malaysia Plan 2011-2015, retrieved from
[Link]
o n M a r c h 3 1 , 2017
2. Malaysia’s healthcare industry eyes RM5b in revenue contribution to 2017 GDP, retrieved from
[Link] gdp
[Link] 2017-
gdp#[Link] on March 31, 2017
3. Healthcare, retrieved from [Link] on March 31, 2017
4. 150 specialist doctors quit every year, Health Ministry reveals, retrieved from
[Link]
reveals#[Link] on March 31, 2017
Opportunities Weight Rating Weighted
Score
1 The first firm in Malaysia to offer full 0.10 2 0.2
workplace health and safety consulting
services. (It is a chance to stay in the
market.)
2 They have 173 clinics strategically all over 0.12 4 0.48
Malaysia. (People will recognize their
brand and their service is available to most
locations all around Malaysia)
3 Malaysia's healthcare business is 0.12 4 0.48
expanding quickly.
4 Malaysian society is growing more 0.08 4 0.32
prosperous and health conscious.
5 Malaysia's ageing society necessitates an 0.06 3 0.18
increase in the need for health-care
services.
6 The government implemented several 0.05 2 0.1
measures, including enabling Ministry of
Health (MOH) doctors to work as locums.
7 Every year, around 150 specialist doctors 0.06 1 0.06
from government hospitals quit, primarily
due to discontent with the bureaucracy in the
public sector, and this might be an
opportunity if they join
existing private clinics and enhance the
workforce.
Threats Weight Rating Weighted
Score
1 The country's GDP contribution of one 0.08 1 0.08
billion dollars is anticipated to rise to more
than five billion dollars this year.
(Because, despite the Covid, they must
rise)
2 Having the appropriate policy and plan in 0.06 2 0.12
place becomes important.
3 The government controls and dominates all 0.06 2 0.12
industries through public sectors.
4 Certain government services, such as 0.08 3 0.24
haemodialysis, radiation, MRI, and CT
scan, are outsourced.
5 Each year, around 150 specialist doctors 0.06 2 0.12
from government hospitals quit, primarily
owing to discontent with the bureaucracy in
the public sector, and this may pose a danger
because the resigned doctors are more likely
to start new private clinic facilities.
6 Medical airfare comparison 0.04 2 0.08
7 Turnover of employees 0.03 2 0.06
TOTAL EFE SCORE 1 2.64
As a result, because the overall weighted score of 2.64 is more than the average (midpoint)of 2.5, the
healthcare industry is performing rather well, capitalizing on external opportunities while avoiding
dangers to the business. Because the overall highest weighted score is 4.0, there is obviously room for
growth.
TOPIC REVIEW 1
GRADING RUBRIC
Question 1
a) Malaysia’s GDP decline by 3.5 to 5.5% within year 2020.
Identification of the situation as a threat: 0.5 marks
Explanation of how the declined national income relates to higher unemployment, lower purchasing power
and lessen ability of potential customers to purchase properties OR how the situation relates to the lower
possibilities of new projects by government/corporations that Crest Builder can participate in hence
effecting its source of income: 1.5 marks
b) Banks tighten the policy on loans approval.
Identification of the situation as a threat: 0.5 marks
Explanation on how the tighter policy on loan approval will make it difficult for potential property buyers
to secure loans to buy property and how this will lead to reduced sales and income of Crest Builder OR
how Crest Builder itself will have difficulties to borrow from banks to finance its projects:
1.5 marks
c) Malaysian government reduced the minimum property price allowed for non-Malaysians to purchase from
RM1 million to RM600,000 staring year 2019.
Identification of the situation as an opportunity: 0.5 marks
Explanation on how the reduced price-floor will enable more foreigners to purchase properties in Malaysia
and how that will likely increase the sales of Crest Builder’s properties and its income: 1.5marks.
d) Universities are conducting more research on the potential of kenaf fiber as a construction material.
Identification of the situation as an opportunity: 0.5 marks
Explanation on how the research helps Crest Builder as alternative material for its construction works and
potential to lower its cost as kenaf is cheaper than typical construction material. Since the research is done
by universities, Crest Builder does not have to incur any R&D cost for the research yet benefits from the
findings.
Question 2
Construct an EFE matrix based on the mini case entitled The Neighbourhood’s Clinic below. The number of factors
in your matrix should be at least TEN (10). Note that the mini case was written in 2017 hence some information
may not be relevant for your EFE. Please use your general knowledge on the healthcare industry as well to complete
your EFE. (12 marks)
Each factor that is written in a self-explanatory manner and correctly classified as opportunity/threat: 1 mar each
Format (title of the matrix, labelling of columns, opportunity/threat, weight totaling to 1 and each weight is different
from another, rating between 1 to 4 and weighted score is correctly calculated and summed up): 2marks
