a. Conduct a SWOT analysis and list out the strengths, weaknesses, opportunity and threat faced by IGB Corp Berhad fron the case above. i. Strengths
Enhance liquidity - In build and sell IGB is more likely to own assets whereby by implementing recurring income approache IGB will improve in its liquidity and it will give a positive perception of the company by the investors. This may allow IGB to be more able to invest in other possible business with the hard cash in their bank account
Accommodate decreasing buying power of the potential purchase
Less risk mainly on cost by building maintenance
If IGB is to run their building it will create problem if there is case of bad pay master among their tenants
Extra admin cost in tenancy agreement, lawyer fees etc
By penetrating only in high end market, IGB should diversify into middle income market as the demand is greater.
Investment in Europe is unlikely to be a good decision as we know now they are facing a drastic economical downfall which obviously effect the financial sustainability.
Fail to cope with modernization of the market may cause IGB loose in the battle. Potential buyers are now exposed to modern concept.
IGB has numerous division which has different target market in each division respectively
Joint ventures with landowners may minimize the liability as the landonwners will share equally on such investment
By expanding their brand into Asia Pacific region is a good decision as the culture is more or less the same with Malaysia. Hence by having that IGB should know how and what are the demand from there.
Uncertainty in economic stability may damage the opportunities
Instability in political condition majorly in Bangkok and Manila will affect tremendously on demand for hotel
Based on the SWOT recommend the type of strategy appropriate for IGB Corp Berhad
Invest into region...
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