Business Strategy | Assignment | Task

Running head: BUSINESS STRATEGY
Business Strategy
Name of the Student:
Name of the University:
Author’s Note

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Table of Contents
Task 1.............................................................................................................................4
Introduction....................................................................................................................4
Discussion......................................................................................................................5
Part I...............................................................................................................................6
Principles of Strategy Evaluation...............................................................................6
Consistency................................................................................................................7
· Consonance..............................................................................................................7
Feasibility...................................................................................................................7
Porter’s Generic Competitive Strategy..........................................................................8
1. Value leadership.....................................................................................................8
2. Differentiation........................................................................................................8
3. Focus......................................................................................................................9
Part II..............................................................................................................................9
Strategy 1...................................................................................................................9
Strategy 2.................................................................................................................10
Part III..........................................................................................................................11
Strategy 1.................................................................................................................11
Strategy II.................................................................................................................13
Task 2...........................................................................................................................15
Introduction..............................................................................................................15
Part 1: Industry Analysis..........................................................................................15

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Part 2: Internal Analysis...........................................................................................27
Financial Performance of Toyota and Perodua........................................................29
Current Strategy of the Organizations......................................................................33
Part III..........................................................................................................................33
Strategic position Action Evaluation Matrix For Perodua.......................................33
Product quality.........................................................................................................35
Market share.............................................................................................................35
Brand and image......................................................................................................35
Product life cycle......................................................................................................35
Barriers to entry........................................................................................................36
Growth potential.......................................................................................................36
Access to financing..................................................................................................36
ROA.........................................................................................................................36
Leverage...................................................................................................................36
Liquidity...................................................................................................................36
Cash flow.................................................................................................................36
Inflation....................................................................................................................36
Technology...............................................................................................................36
Strategic position action evaluation matrix for Toyota................................................36
Market share.............................................................................................................37
Product quality-........................................................................................................37

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Technology know how.............................................................................................37
Product life cycle......................................................................................................37
Barriers to entry........................................................................................................37
Growth potential.......................................................................................................38
Profit potential..........................................................................................................38
Financial stability.....................................................................................................38
Cash flow.................................................................................................................38
Liquidity...................................................................................................................38
ROE..........................................................................................................................38
Leverage...................................................................................................................38
Competitive pressure................................................................................................38
Demand variability...................................................................................................38
Recommendation..........................................................................................................39
For Perodua..............................................................................................................39
For Toyota................................................................................................................39
Reference......................................................................................................................42

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Task 1
Introduction
In his interview with The Edge, Datuk Haris Fadzilah Hassan who has appointed the
CEO of the FGV holdings Bhd which has been previously known as the Felda Global
Ventures Holdings Bhd. He had a talk related to the FGV financial conditions who have
faced a loss in the financial year 2018 with over RM 1.08 million on the revenue of the RM
13.48 million (Favaretto, 2019). However, this company have seemed to earning a profit of
RM 130.94milliom on revenue of RM 16.92 billion. Over the current situation Haris has
replied just one thing that all he knows that the company should follow these five values,
which is partnership, respect, integrity, dynamism and enthusiasm. All of these words
together forms the word ‘PRIDE’ and if any of them falls of it hit the pride of the company.
Haris have claimed that they have reached this position due to the integrity issues. In his
words if the integrity has been there in the place then people must have taken their integrity
seriously then before doing anything there must be serious diligence involved.
Discussion
It has been noted that much of the losses in the FY2018 has occurred due to the
impairments and the total of provisions which equaled to the RM 1.04billion. Maximum
amount of the impairments has been a result of the acquisition that has happened of the Asian
Plantations Ltd which almost totaled to RM 1million which contributed from the cash reserve
and the rest RM 628 million in terms of the liabilities. Therefore at the end of the financial
year FGV has deposited bank and cash balances amounted to RM 1.22 billion and they also
included their long and short term debt commitments of amount RM 3.3 billion and RM
991.51 respectively. They have also forged their finance cost for the upcoming year which
amounted to RM 187.38 million. Therefore, Haris who have been hired for merely a hundred

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days ago have a pile of tasks that are to be done in order to bring the company out of the
current situation.
Haris has shared the key performance indicators which included strengthening of the
share prices which will further lead to the improved market capitalization and also lead to the
reduction of the plantation gearing ratio. Apart from these the other factors that has been takn
care of are the regular ones like reduction of costs, having a watch at the manpower costs, the
disinvestment of the not so core assets and also he has put up the system of anti-bribery
managing system.
Part I
Strategy are never supposed to be adjusted or modified without any kind of strategy
evaluation, either performed via person or as a part of an organizational evaluation technique,
strategy evaluation forms an important step within the method of guiding an agency. For
plenty of executives strategy evaluation is truly an appraisal of how well an enterprise
performs. Has it grown? Is the earnings charge ordinary or higher? If the answers which are
associated with the question correct, it’s argued that the entity’s approach ought to be sound.
The strategies which are used by the business are in accordance with the nature of the
services which is provided by the company and the same should also abide by the regulations
which are applicable in the country. Therefore, strategy evaluation is an attempt to appear
past the apparent information related to the briefing of the timely health of a commercial
enterprise and appraise rather the ones greater essential elements and tendencies that govern
success in the selected area of enterprise.
Principles of Strategy Evaluation
With respect to the Richard Rumelt for the purpose of the strategy evaluation, the
major definition of the strategy is to form a set of principles, objectives and the plans that are

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made in accordance with the scope of the business organization and the situation that they are
currently facing and therefore these strategies will lead to the approach that will lead to the
survival and success of the organization. Similarly the FGV organization here has to finalize
the strategies that will be able to take them out of the current situation that they are facing and
that they need to get over their losses and bring the company into the position that will be
able to bear profits again. Therefore it can be said that the strategies are expressed by the
companies that will be benefitted to them to survive in the competitive environment.
One of the essential tenets of technological know-how is that a theory can by no
means be verified to be truly real (Burrus, 2019). A theory might be declared truly false if it
fails to stand up to testing. Further, it's far not possible to demonstrate conclusively that a
specific commercial enterprise strategy is top-rated or maybe to assure that it'll work. One
could, nonetheless, check it for important flaws. Of the numerous exams which might be
justifiably implemented to a enterprise strategy, Most of them will fit inside this kind of large
standards:
Consistency: The strategy must not show inconsistent policies and goal they have to be
specific
· Consonance: The strategy must have an adaptive nature that can bend as per the external
environment which is quite unpredictable
· Benefit: The strategy must specify their competitive advantages, it must consist the
planning of the perseverance of the competitive advantages.
Feasibility: The strategy are not supposed overuse the available resources neither they are
supposed to create any problems that will be difficult to solve. Therefore, it is expected by the
strategies to meet all the requirement present. Strategies failing to meet any of the mentioned

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criteria are suspected strongly to fail to perform key functions that are needed for the survival
of the business.
Porter’s Generic Competitive Strategy
A company's relative role within its industry determines whether or not a firm's
profitability is above or under the enterprise average. The essential foundation of above
strategies is to ensure that the business is able to achieve long term sustainability and at the
same time focus on enhancing the profits of the entity. There are fundamental forms of
competitive gain a company can own: low cost or differentiation. Primarily two primary
forms of competitive gain mixed with the scope of activities for which a company seeks to
reap them, lead to three familiar strategies for reaching above average performance in an
industry: cost management, differentiation, and attention. The focus approach has two
variants, value recognition and differentiation attention.
1. Value leadership
In cost management, a company aims to ensure that the cost of production can be
managed in an effective manner so that the profitability can be boasted . The resources of
cost advantage are numerous and rely upon the shape of the enterprise. The business would
able to effectively enhance the sales of the business and achieve economies of sales in their
operational process and thereby also male more profits. A low cost producer ought to bed
located and make the most all resources of fee gain. If a firm can acquire and preserve typical
price leadership, then it'll be an above average performer in its enterprise, supplied it is able
to command prices at or close to the enterprise average.