Business Analysis Project - Analysis of Eco World Development Group Berhad

Running head: BUSINESS ANALYSIS PROJECT
Business Analysis Project
Name of the Student
Name of the University
Authors Note
Course ID

1BUSINESS ANALYSIS PROJECT
Table of Contents
Introduction:...............................................................................................................................3
Purpose:......................................................................................................................................3
Case Analysis:............................................................................................................................3
Company background:...............................................................................................................4
Key issues:.................................................................................................................................4
Comparative Value Proposition:................................................................................................5
Rationale of my choice of company:.........................................................................................6
Financial Analysis:.....................................................................................................................6
Ratio Analysis:...........................................................................................................................7
2.1.1 Profitability: Return on Invested Capital%:......................................................................7
Net profit margin%:...................................................................................................................8
Return on Assets:.......................................................................................................................9
Liquidity: Current Ratio:..........................................................................................................10
Quick Ratio:.............................................................................................................................11
Financial health: Financial Leverage:......................................................................................12
Solvency: Cash Flow per sale%:..............................................................................................13
Strategic Analysis:...................................................................................................................14
Business Environment Analysis:..............................................................................................14
PESTLE Analysis.....................................................................................................................14
Competitive Force Analysis:....................................................................................................16

2BUSINESS ANALYSIS PROJECT
Porter’s five forces:..................................................................................................................16
New forces in the industry:......................................................................................................18
Operations and organizational analysis:...................................................................................18
Key success factors:.................................................................................................................18
Balance Scorecard:...................................................................................................................19
Ansoff’s matrix:.......................................................................................................................20
Limitations of financial models and conventional analysis:....................................................21
Conclusion:..............................................................................................................................21
Recommendations:...................................................................................................................22
Recommendations modelling...................................................................................................22
Model Scenario Forecasting:....................................................................................................23
Outcomes:................................................................................................................................24
Scenario Description................................................................................................................24
Outcome:..................................................................................................................................25
Reference List:.........................................................................................................................26

3BUSINESS ANALYSIS PROJECT
Introduction:
Purpose:
The objective of the study is to conduct a critical analysis relating to the competitive
position of Eco World Development Group Berhad and compare the company’s performance
with the SP Setia Berhad and MAH Sing Group Berhad. The report would be discussing the
competitive issues that is faced by the Eco World Development Group Berhad by
benchmarking the company with the competitive firms SP Setia Berhad and MAH Sing
Group Berhad. The analysis would be critical it offers a transparent picture and understanding
of the main issues that would be influencing the business and the management. Besides, the
study would be offering appropriate recommendations that would be addressing the vital
business faced by the Eco World Development Group Berhad and improving its productivity
as well.
Case Analysis:
Eco World Development Group Berhad has kepts its brand spread across the three
key economic regions in the Malaysia that includes 18 development of projects in total
(Ecoworld.my 2018). It also comprises of the new townships, integrated commercial
development, luxury high-rise apartments and business parks. The company has expanded its
operations both across the local and international markets. Over the years the company the
company has grown in the form of well-known and respected industry players in the property
sector of Malaysia. The expansion of company is facilitated by the vital developments in the
commercial development since the government backing has resulted in company’s expansion.

4BUSINESS ANALYSIS PROJECT
Figure 1: Figure illustrating Residential property price by categories
(Source: Ecoworld.my 2018)
Company background:
Eco World Development Group Berhad is the Malaysian public listed company that is
primarily engaged in the property development. The company’s operation is spread across the
three economic regions in Malaysia having 18 development projects (Ecoworld.my 2018).
The company currently has approximately 8,052.7 acres of land bank with total gross
development value of RM 87.5 billion. With the help of Eco World International, the brand
has expanded its operations to London, United Kingdom and Sydney & Melbourne,
Australia.
Key issues:
The current report is based on the discussion of the competitive scenario of Eco
World Development in comparison to its benchmark companies. Eco World is faced with
intense competition from the other companies both in the domestic and international markets.
Presently, Eco World faces competitions from SP Setia Bhd and MAH Sing Group BHD in
the Malaysian markets. In spite of the intense competition Eco World is driven by the mission

5BUSINESS ANALYSIS PROJECT
of creating a better tomorrow which is powered by the team of experience and dynamic team.
The brand of Eco World is expected to attain growth in the coming years.
Comparative Value Proposition:
Value Points Eco World BHD SP Setia MAH Sing Group
BHD
Target Customer Eco World BHD
targets the customers
from the Melbourne
and Sydney in
Australia.
The target market
for SP Setia is
primarily the Asian
markets.
The target customers
for MAH Sing
Group BHD is the
professional and
multinationals that
demands green
office.
Benefits Offers virtual design
benefits along with
construction of
commercial property
with the computer
aided designs and
technology of
modelling.
Benefits provided by
SP Setia includes a
unique design
ranging 2300 to
3000 square foot
having lift lobby as
well.
MAH Sing Group
BHD provides its
customers with the
integrated designs
for constructions
through technical
aid.
Price Eco World VHD
offers 10 per cent
price discount to its
premium customers
SP Setia offers 15
premium price to its
customers
MAH Sing BHD
gives 20 per cent
premium discount to
its customers.
Customer Value Building Long term SP Setia holds the MAH Sing BHD