TABLE OF CONTENT
1.0 Executive Summary
2.0 Company Background
3.0 Environmental Analysis
3.1 PEST analyses
3.2 Porter’s five forces
3.2.1The Bargaining Power of Customer
3.2.2 The Bargaining Power of Suppliers
3.2.3 The Threat of New Entrants
3.2.4 The Threat of Substitute Products
3.2.5 The Intensity of Competitive Rivalry
4.0 Strategic Competitive Advantage and Major Weakness
5.1 Stability Strategy
5.2 Defensive Strategy
6.0 Justification of Strategy
IOI Group is a company listed in Bursa Malaysia that business include palm oil plantation, properties and investment. mainly focusing IOI Group organization strategy is towards entering into globalization as every business is aiming to expanding. Certain corporate strategy components to be looked into which include mission, SWOT analysis of organization, Porter’s five forces as implementation of corporate strategies to justify the implemented strategies.
This is group of companies calling it or themselves IOI Group they are leaders when it comes to palm oil and also matters regarding properties in Malaysia. Their main focus is mainly only palm oil business that is the palm oil plantations which it does its own refineries, and also manufacturing chemical like oleo chemical and also refining things like cooking oils and fat (IOI Annual Report 2012). On the other it concentrates well on matters regarding properties, these main part of focus is also based in other countries like Egypt, new Zealand, USA and in china (Roger Bennett 1998).
Its main and most definite plan on its mission strategy has been to gain high profit margins through offering products of best quality and values (IOI Group Oleochemical, 2013).
To be a leader on its area and to be a leader in the market where by the mode of practice would be through value creation to each every stakeholder, talking of the shareholders here are the, customer’s needs, providing good working environment to the staff and also having a care on communities and societies to sustain a long term growth (IOI Group Oleochemical, 2013).
3.1 PEST analyses.
The PEST analyses is a tool in marketing helps to see how is the business learning under, political, economic, social and technological factors
Political environment is very important for any existing business. Malaysia is a political stability country in the world. Whereby, Malaysian government very much encourages any company or organization to involve in the business transaction, not just for local but foreign company as well to invest in our country.
Now days, Malaysian government is trying to make Malaysia as a core business center around the world. Hence, allowing local or foreign investor to invest in any field of business in Malaysia by giving them the freedom ad press and rule of law. Besides that, the Malaysia government also gives incentive to the business organization if their project is for social purpose. Furthermore, Malaysian government focuses more on social and employment legislation for the purpose to create a peaceful country for any business investor.
Therefore, IOI Group has always kept a good relationship with the Malaysian Government, as this will ensure their safety and stability development while conducting business locally,...
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