Assignment: Business Analysis

BUSINESS ANALYSIS PROJECT

Contents
INTRODUCTION...........................................................................................................................1
STRATEGIC ANALYSIS...............................................................................................................1
PESTEL.......................................................................................................................................1
Porter 5 Forces.............................................................................................................................2
Key Performance Indicators (KPI)..............................................................................................3
FINANCIAL ANALYSIS...............................................................................................................4
Current ratio.................................................................................................................................5
Gross profit margin......................................................................................................................5
Net profit margin.........................................................................................................................6
Return on capital employed (ROCE)...........................................................................................6
Industry specified performance...................................................................................................6
LIMITATION..................................................................................................................................8
Limitation of strategic analysis....................................................................................................8
Limitation of financial analysis...................................................................................................9
CONCLUSION................................................................................................................................9
RECOMMENDATION.................................................................................................................10
REFERNCES.................................................................................................................................11
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INTRODUCTION
In order to reach out towards specified goal and long term objective of company senior
level management will be forming Business Strategies which will be leading to growth and
strong position of firm in market. The major focus will be on vision and mission of company and
gaining out market position for further growth or expansion planning. So this current report is
covering analysing and understanding critical strategy of business of Maxis Bhd which is
Malaysian Telecommunication Company founded in 1993. Report will also be comparing and
benchmarking company with their key competitors within industry like that of DiGi
Telecommunications and Celcom (Malaysia) Berhad.
STRATEGIC ANALYSIS
PESTEL
Maxis communication or Maxis Bhd is Malaysian Telecommunication Company
providing many different type of customer value added products and service to individual and
large consumers. Majority of shares of company is been owned by Ananda Krishnan and there
are 11 million customers till year 2015. Maxis Bhd is having its customers within areas like that
of Asia excluding Korea and Nepal and South America including Peru and Chile. So this current
part will be covering PESTEL which is determining external factors and how are they affecting
operations and working of company.
(P) Political
These factors would be the most which regulate and affect the operations of company that
is been working within country. Political factors would be those related to regulation issue
governed by ruling political party of that nation (JOSEPH. PHILLIPS, CBAP and PMP, 2018).
In case of telecommunication industry factors such as Wi-Fi and Internet is now been regarded to
as essential human right or need of all individuals. In the current stage where net neutrality is
impacting to treat all data onto internet as equal and not discriminating with any other based on
content, website or method of communication. So customers of Malaysian telecommunication
industry are demanding that government must be treating all internet provider equal which is
preventing from data speed and throttling of interne
(E) Economic
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All factors which is regulating demand and supply or price of products within country
will be counted under economic one. These elements will be including like that of interest rates,
inflation, GDP rate, employment and taxes which are affecting Malaysian telecommunication
industry. As if there are increased number of telecommunication companies with country this
would be calling for more educated and qualified personals thus improving employment rate
within industry. Inflation within country is also likely to impact customers of Maxis Bhd as they
will be avoiding spending higher level of their income on service providers if inflation is hitting
Malaysia. Thus causing company to lower down their price of products to attract more customers
or changing their plans.
(S) Social
There is no further scope for telecommunication business to get expanded within area
which is regarded as rural within one country (Nicholas and Steyn, 2017). There is no wide range
of products and service which are offered to customers so they are having very less option at
time of buying internet plan. Almost all telecommunication business will be having monopoly
over markets so they end up charging for both internet and mobile handset.
(T) Technological
This is the most important and effecting factor among all as there is technological
changes which are taking place on very regular level especially in telecommunication industry.
Maxis Bhd will be installing fibre wire instead of copper one, landline is now converted into
mobile which are now becoming more compact embedded with lots of features.
(E) Environmental
There are many changes in terms of global warming and climatic modifications which
surly is affecting telecommunication industry. Customers are also becoming more and more
environment concerns which are making them feel that companies must be focusing onto
manufacturing products concerning environment as well.
(L) Legal
Legislative issues and problems will also be affecting telecommunication sector and their
companies on wider aspect (Erl, Merson and Stoffers, 2017). Factors like that of monopolies,
customers and governments as Maxis is importing and exporting telecom products they are
allowed to do so.
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