Swot & Tows for E&O Sdn Bhd

Topics: Financial ratios, Financial ratio, World Heritage Site Pages: 5 (1365 words) Published: May 18, 2013
Internal FactorsExternal Factors| Strengths- SS1- Brand EquityS2- Sound Liquidity PositionS3- PESTS4- Strong Corporate StructureS5- Number of Service StationS6- Strong Corporate CultureS7- Employee Relationships| Weaknesses- WW1- Business Concentration: MalaysiaW2- Follow parent’s procedureW3- Risk AssessmentW4- Competitor.| Opportunities- OO1- Improvement in Malaysian Tourism SectorO2- Growing e- commerce activitiesO3- Asean Free Trade Area (AFTA)O4- Population increaseO5- TechnologyO6- Expand their business| S & O strategy 1. Develop brand equity by using improvement in Malaysian Tourism Sector (S1+O1) 2. Increase the number of service station. (S5+ O4) 3. Enhanced employee to do great job (S7 + O6)| W & O strategy 1. Develop good strategy with using new technologies.(W4 +O5) 2. Doing new strategy (W3+O4)| Threats- TT1- Cost overrunsT2- Business and Environmental RiskT3-Asean Free Trade AreaT4- Nature disasterT5- Consumer Associations| S & T strategy 1. Increase the number of service station (S5 +T4) 2. Doing great relationships with customer ( S7+ T5) 3. Give Incentives to workers (S7 + T2)| T & W strategy 1. Parents strategies( W1+ T2)|

a) SO strategy
Eastern & Oriental has a good brand name and well- known product among Malaysians. Brand equity is the value and strength of the brand that decides its worth. E&O is a strong and familiar company with their brand like hotels where is give some favourable positive strong and distinctive brand association in the public’s memory. Eastern & Oriental Berhad should strengthen their promotion method by using advertisement through mass media. E&O can use Malaysian Tourism Sector to improve their brand equity. Malaysian Tourism Sector is the one way to promote product and let people know their products. Populations in Malaysia increasing everydays, it gives E&O more opportunities with increasing the number of branches. Besides that, E&O can expand their business with make a good relationship between employee. Great relationship with employee can motivate workers to do great tasks and jobs.

b) ST strategy
As we know nature disaster is not under our controlled. We cannot control when nature disaster can occur. Eastern & Oriental can take this threat as a strength, where E&O may build many station or branches as alternative options. So that, when disaster nature happens, only station for that location are damaged but then, there are anothers branches. E&O have to build a good relationship between customers. So that, indirectly, customers will help E&O promote their products to relatives, friends and others. Top management of E&O should emphasize about relationships between customers and employees. Success of a company not only depends on the operating solely but also the efficiency of employees in the company. For E &O Berhad, their employees are most valuable asset toward the success of business. Beside the incentives that already be given to the employee such as rewards, E & O incentives for workers who perform on their performances accordance to standards such as reward or bonuses is one of the strategic method to motivate workers give full commitment in completing their jobs. Natural of human being, people tends to do their best if they will be rewarded. By using this method of management, an organization could get benefit in their production and thus increase the profit.

c) WO Strategy
Placing a good strategic can affect the frequency number of customers’ consumption towards company’s products. This is one of the factors which the company should have to be concern regarding sensitivity of customers that is risk assessment. E & O can analyze and do research of the environmental scanning in terms of the location which has uncertainty risk that it will be threat towards company’s activity performance such as earthquakes,...
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