Value Creation Strategies in Business

This assignment delves into the concept of value creation strategies in business. It requires students to analyze various case studies from different sectors, such as construction (Sunway Construction), retail (Walmart), and professional services. The analysis should focus on how these businesses create value for their stakeholders, including customers, employees, and investors. Students are expected to demonstrate a thorough understanding of different value creation models and apply them to real-world examples.

Running head: VALUE CREATION
Value Creation
Student’s name:
Name of the University:
Author’s note:

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Executive Summary
This paper explores the concept of value creation for the organization. In order to continue the
study, Sunway Construction Company has been chosen which a famous construction
organization is and it is in Malaysia. This study has three parts, in the first part, Sunway
Company Report has been depicted, in the second part, the Evidence Report has been explained
that is mostly a literature review and in the third part, a critical reflection has been given based
on the paper. In addition, Sunway Construction follows the model of Integrated Reporting
framework in value creation and in the first part of the study, the model has been explained with
finding the issues in it. A better model has been suggested with making some basic changes in
the model. Moreover, a sharp contrast has been made with another company Jetson Construction
in order to distinguish the value creation model. Moreover, a financial value creation is the aim
of the organisations along with the goodwill. Value is mostly created through organisation's
model of business and it takes inputs from the capital. These inputs transform into the values
through business activities in order to produce outputs. In the evidence report, a short literature
review has been discussed with perspectives with other contemporary organisational evidence
deemed relevant to achieve meaningful managerial insights and conclusions for value creation
from a generic perspective. In the final part of the study, a learning log of employability skills
readiness has been given through self-reflection on the current practice of value creation.

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Table of Contents
Introduction......................................................................................................................................3
Part 1: Company Report..................................................................................................................4
1.1 Framework of business model with situational analysis to assess the core status of Sunway
Construction.................................................................................................................................4
1.2 Current value based inadequacies over a future specified with an assessment of risk
exposure.....................................................................................................................................10
1.3 Changes to the business model to achieve to value creation and value delivery for financial
value...........................................................................................................................................12
1.4 Proposing a value chain based solution to capture incremental value-added results...........16
1.5 Strategic initiative impacts the organisation’s strategic positioning and future business
sustainability..............................................................................................................................19
Conclusion.................................................................................................................................21
Part 2: Evidence Review................................................................................................................22
1. A critical analysis of the selected literature theme................................................................22
1.1 Supporting the perspectives from other modern organizational evidence...........................25
1.2 Concluding thoughts............................................................................................................28
Part 3: Reflection of Employability Enhancement........................................................................30
1. Critical thinking & core capabilities needed to achieve the consultancy task.......................30
2. Evaluating the self-competencies in completing such tasks..................................................31

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3. Leadership skills required for future personal development & career accession...................32
Conclusion.....................................................................................................................................33
Reference List................................................................................................................................34

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Introduction
Value Creation is one of the main aims for a business entity. The organisations need to
create value for the consumers and creating values help the customers to sell the services and
products. The organisations can create values for shareholders as they can increase the stock
price in order to ensure the future availability. Value creation can be considered as separate from
of traditional financial method. However, traditional method is not adequate for an organisation
to follow in such economic condition. In recent time, value creation is enhancing as it is being
recognised better management objective than financial measures to perform hard. The
organisations are following cost-cutting measure in order to have short-term results of the
business. The pressure is mainly gathered from the two sources, from the internal management
and from the financial markets. In short-term value creation or investment can provide negative
impact financial figures of the organisation (Valdes-Vasquez and Klotz 2014). The companies
should not focus on the short-term values only, however future long-term investing can bring
long-term values. In this study, first part talks about value creation process and measurement of a
business and the chosen organisation is Sunway Construction. Moreover, this organisation's
business model will be compared to another organisation in order to understand the basic
difference. Through analysis of value creation, current inadequacies can be recognised and risk
assessment of the organisation can be carried down. Moreover, new route of business will be
suggested through this model assigning value chain analysis of the organisation. In the second
part of the study, evidence review will be conducted preparing an individual critique of literature.
In addition in the third part of the study, a reflection for employability enhancement has been do

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Part 1: Company Report
1.1 Framework of business model with situational analysis to assess the core status of
Sunway Construction
Sunway Construction Group is fully-integrated construction organisation that provides a
full range of construction and design services. This organisation mainly works in civil
engineering, mechanical, infrastructure and electrical services including pre-cast concrete
products. Sunway Construction’s building division gives services of various types, designing,
construction, completing of residential apartment and institutional building
(Sunwayconstruction.com.my 2017). Value creation of this construction company is to produce
benefits to all stakeholders. Sunway Construction believes to be as their economic activities and
it is common for the organisation as to view the strategy, technologies, practice, products,
services and process in terms of creating values for the organisation. Sunway Construction
Company makes building and design and these create greater values for the market than the costs
of inputs like raw materials, labour, capital and energy. For Sunway Construction creating value
is more important than accumulated earnings in money for the business. As stated by Allee
(2011), creating value is rational objective for any business and when the organisation sells the
products or service, the buyers’ assessment may not match with seller’s values.
Current products and services: Sunway Construction provides services to the property,
design, construction, retail, commercial, leisure, trading and manufacturing, quarry, materials,
real estate and investment trust. Sunway Construction provides a special design for the public
sectors and also for the government works.

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Competitors: Competitors of the Sunway Constructions are Kumpulan Jetson,
Construction Research Institute Malaysia, Sunway Construction and TBTC constructions.
Among all these companies, Sunway Construction is the largest of all. In Malaysian construction
sector, the companies have been experiencing intense competition among the existing companies
and big-cap diversified contractors have been increased by 58% (Sunwayconstruction.com.my
2017).
Market share: In the Malaysia, most of the large organisations are from the construction
industry, Sunway Construction takes the largest market share, almost 17% of the market share.
In the ASEAN community, the share of the construction is largest in the Philippines. In case of
Malaysia, construction industry takes the 69.3% of market share of overall industry sector.
Strategy Review: Business activities of Sunway Construction are related to the four
basic strategies. Sunway Construction takes the strategy of value creation and they evaluate the
current positioning of themselves. At present, Sunway Construction is one of the largest
construction companies of Malaysia. The management of company is focusing to create more
values through where the company could get to after the new strategies will prepare. In addition,
Sunway Construction needs to understand where they want to go. In this perspective, the
company needs to take the strategies to go to the desired objectives. In this process, the
understanding the business activities is necessary and value proposition has been developed in
the first three stages of the review. The values Sunway Construction is vested upon the quality of
work, previous projects and financial conditions. However, the model of value creation could be
changed in order to attain more value through the business process. The requirement of
development is needed in process, people and innovation.

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Innovation: In innovation, Sunway Construction has been facing the issue of operational
benefits that are related to the failure to meet the costs or quality. The management of the
organisation must make the innovation in such a way that can create value for the organisation.
Sunway needs to start with cost and scheduling of the construction project with commercial
benefits. Innovation needs to attract the customers and values must provide financial benefits
through innovation. For Sunway Construction, each of the projects is singular prototype for
configuring the changes. In construction works, different and constant changes in innovation are
needed in order to understand the machinery and personnel factors (Sunwayconstruction.com.my
2017). Sunway organisation is trying to bring changes in improvement of organisation activity,
improvement in organisational competitiveness and client satisfaction issues.
Since a long time, Sunway Construction has grappled with a business model that gives
the benefits of value creation through financial information advantages from their knowledge and
professional insights. Sunway Construction acknowledges that financial information always
creates an opportunity to improve the value creation method for the business. Sunway
Construction mainly focuses on integrated thinking and reporting and the primary objective of
Sunway Construction's value creation process is to omit the traditional financial reporting.
Sunway Construction spends a lot in creating value and it has a critical structure in finance.
However, the business model of Sunway Construction provides effective welfare and health and
more importantly, the business model of Sunway Construction give the chance of value creation.
The model enhances the organisation to have better scrutiny, a working environment and
constraint on resources and time. Financial information cannot alone make the values of the
organisation; however, it is needed to create values with integrated reporting. Sunway
Construction takes the policy of decision-making that needs the management to have a holistic

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view of organisation's business model. The management needs to view on resources as well as
stakeholders' relationship that can impact on organisation's service delivery (Cameron and Quinn
2011). Sunway Construction mainly focuses on six capitals, financial, human, social, intellectual,
natural capital and manufactured. Through these six capitals, Sunway Construction organisation
can transform the organisational strategy, governance and business process. Regulatory authority
of the organisation need to remove the obstacles in long-term investment and it could provide
positive impact on the organisation. Long-term investing of money and farsightedness can
increase the organisation’s long-term values with risk-adjusted returns and could lessen the
potential adverse effects (Tantlo and Priem 2016). Sunway Constructions has been facing the
issue from the political landscape, social media preset and new product cycle; these issues
provide hindrance to get the long-term value creation. The organisation focuses the strategic
framework in order to create long-term value creation.

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Figure 1: IR (Integrated Reporting) model followed by Sunway Construction
(Source: Cipfa.org 2017)
Sunway Construction needs to have a look at strategic focus that can pose the future
orientation to the business. This future orientation strategy can create an insight into company's
strategy and ability to make the value in short and long-term.
Connectivity of information in the business model sets a holistic picture that makes
interrelation and dependencies among the factors and combination of external factors can affect
the organisation.
Stakeholders' relationship is a very important factor for the organisation that can create
insight into the nature and quality of company's relationship with the stakeholders. The
stakeholders of Sunway Constructions are customers, employees, suppliers, logistics partners
and government; moreover, they need to understand the organisation to respond to legitimate
needs.
Materiality is the information about various subjects that substantively impact on
organisation's ability to make value on a long-term basis.
In addition, reliability and completeness that disclose all materials both negative and
positive in a balanced method.
All the six capitals in the business model of Sunway Construction can bring sustainable
outcomes that can deliver the requirements to various stakeholders over time.
Value creation for Sunway Construction is related to the accumulation of earning, the
growth of earning and creation of goodwill. On the other side, Jetson Construction Company

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uses another business method that starts with ‘accumulation of earning' and it talks about making
money of owner. Jetson Construction is particularly smaller organisation than Sunway
organisation and the main business goal of the organisation is making money and management
body of the organisation can distribute earnings in order to earn value. The values can create
future earning and it can also create liquidity of the firm. Growth in earnings is another element
in value creation of Jetson Construction and the management of the business creates a business
in a way that can create value for the organisation (Jetson.com.my 2017). Jetson Construction
does the work in construction in a way that buyer will pay multiple earning of the business. In
growth in earning, method can give Jetson Construction a worth three to five times compared to
pre-tax earnings. Growth in earning method can bring back goodwill as this process can provide
asset value Jetson Construction creates the goodwill that makes the unsaleable products saleable.
Multiple earnings bring higher profit for the business.
As compared with two companies, the business model of Sunway focuses mainly on the
integrated thinking and reporting, not just only financial value creation. However, this business
model lacks the construction companies' goodwill that liquidates value by collecting goodwill.
Construction organisations that offer or exchange to employees for the most part they can make
an incentive for their proprietor accumulating earning. There are two strategies, deal with an
outsider could be at resource esteem or more prominent. Once more, it could utilize any of the
three techniques. The ramifications of these measurements are that relatively few designing and
development organisations make goodwill; however, most collect profit (Chemmanur et al.
2014). The thinking behind this may have a comment on the basics of the development business.
Buying advantages of interest for building and development change generally, as providers will

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regularly bolster the neighbourhood business to abstain from being excessively subject to the
national or provincial business.
1.2 Current value based inadequacies over a future specified with an assessment of risk
exposure
Value creation model of Sunway organisation faces the inadequacy in mainly financial
value that has manifested with various ways. Sunway Construction has got value creation
benefits with a context and the organisation got the value that has been created from tangible and
intangible assets. Moreover, the organisation has made values for themselves and for the
stakeholders of the organisation. Sunway Construction organisation has its resources that made
the business effective for them; however, they use the private and public resources to make the
context of business efficiency. The organisation Sunway Construction uses the six capitals in
order to make the value of the organisation. However, the inadequacies of the business lie in:
Financial values are relevant for the organisation; however, they are not sufficient for
Sunway. The financial value of an organisation can be manifested in various ways that can
include organisation's profits, stock prices, organisational growth and balance sheet. Sunway
Construction can create value through capital investing from the investors that can help the
organisation to generate cash in future. The companies in generating financial values can grow
the revenues from the capital with attractive rates (Cohen et al. 2017). Value creation can be
extended beyond the benefits of the company with financial values and company can check
exchange the values in the market. The values can be expressed by the company in profit and
loss statement, organisational growth and balance sheet.

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The organisation lacks in innovation in the mission and vision statement, however, the
core values of the business talk about sustainability (De Villiers et al. 2014). It is jot be noted
that innovation is the core essence of value creation. Sunway Construction operates in Malaysia;
moreover, it is trying to teach other Asian countries as well. Changes in the innovation purposes
include resource scarcity and globalisation. Sunway Construction needs to reconceive the source
with a strategic advantage and improved mechanism that can provide sustainable strengths.
Sunway Construction does not have an idea that values play role in what types of values
that an organisation wants or create. Most importantly, Sunway Construction needs to measure
the value creation process; however, the organisation does not have enough measurement to
account the value creation. Sunway Construction has ideas distinct in value creation and the
relationship between values and value creation is clear in this organisation, business conducts,
values, cultural choices and behaviours are some of the factors.
Construction organisations approach making items and administrations from a wide range
of headings. Some chase for any client's genuine issue and commit themselves to tackling this
issue. Then again, others take the mechanical way and attempt to convey arrangements that, most
time, are a little while ago attainable. While others get a kick out of the chance to contemplate
the opposition and convey better arrangements, every one of these points of view is fine. Conlay
Construction, a large construction company in Malaysia, with regards to helping any business
visionary, it generally begins by requesting their comprehension on the contrasts between esteem
creation and esteem catch to take after then with how they will approach the two ideas and how
they will adjust the endeavours upon the two ideas (Frias‐Aceituno et al. 2014). Conlay
Constructions establish the key value drivers and identify the metrics in order to nullify the risks.
In creating values, Conlay Construction uses the framework to increase the goodwill of the

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organisation; however, they assess the qualitative risks related to the value drivers. It is as yet
stunning to me how after such a significant number of months in pre-hatcheries, hatcheries, and
organisations designs composed by master specialists, and hours of coaching, numerous business
people neglect to answer the most applicable inquiries any guide ought to have routed to them.
Sunway Construction needs to check the financial values of the organisation and financial
risks are many types of risks associated with financing, financing transaction, interest rate risks,
currency risks and equity risks. Financial loss is one such uncertainty that cannot be judged
earlier and in accessing the values of financial cases, the Sunway Construction needs to manage
the market and financial risk under the portfolio theory. Sunway Construction has a vulnerability
to credit risk as an investor can lose the principle and interest that can reduce the cash flow. In
investing money, the investor can assume the credit risk that can happen through indirect
leverage (Gronroos and Voima 2013). On the other side, Nakano Constructions responds to the
risks in financial management that they communicate to key driver performance and risk
management in financial matters. Nakano Constructions can take risks by taking a loan from the
market and often it is considered as the downside risk of the organisation. Financial values can
create economic values to the organisations that can impact on the organisational risks
mitigation.
1.3 Changes to the business model to achieve to value creation and value delivery for
financial value
Sunway Construction follows the model of IR (Integrated Reporting) that focuses mainly
on values of the organisation. This model mainly focuses on the finances of the organisation and
that can be communicated with the professional insights and knowledge. This model talks about
external environment of the organisation with financial, manufactured, intellectual, human,

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social and relationship and natural process. However, this model focuses also on the inputs,
business activities, outputs and outcomes based on the six external factors of the Sunway
organisation. Mission and vision of the organisation are the core factors that have four
subsections, risk and opportunities, strategy and resource allocations, performances and outlooks.
However, the changes are required in the process of beginning in the model, the value creation
process should be started from the mission and vision of the organisations and it would help the
organisation find the strategic objectives of the organisation along with the process to achieve the
objectives (Homburg et al. 2014).
The management needs to understand the objective and how to achieve those objectives
with quality. In the construction industry, strategic vision of Sunway is to be a global player and
this strategic vision can be segregated with services, delight and excel. In the service offering,
the organisation can develop new service offerings, improve service qualities and manage cost
and margin. Sunway Construction can excel in improving the responsiveness and agility, assign
the resources and reduce the costs. Finally, in delight factor is all about to reach better agents and
customers and to improve the consistency, target marketing and exploit key and managed
accounts. However, as opined by Jamali et al. (2015), in this Integrated Reporting model mainly
focuses on values and the objectives of the organisation does not focus correctly. In addition, IR
model explains sustainable outcomes can be delivered to meet the needs of different stakeholders
with integrated thinking. However, the objectives of the organisation can be met through
strategic initiatives focusing mainly on the stakeholders of the organisation. Sunway
Construction can choose the initiatives to manage the connection among the stakeholders and
organisation management needs a practical way to meet the needs of the value creation of the
organisation. Shareholder value map can be made in order to understand the common goals of

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the organisation. Moreover, each of the strategic objectives needs to merge with the stakeholders'
actions (Liberman et al. 2017). In this way, Sunway Construction can manage the strategic
support with business capability when the management knows how to solve the issues among
stakeholders. In managing the corporate functions, Sunway Construction needs to manage all the
functions, HR, Finance, marketing, IT and R&D.
Value capture is based on the principle that buildings and private land can take benefit
from public investments in infrastructure (Lin 2016). This value capture process is a virtuous
cycle through which value can be generated, captured and realised. These values can be used
again in project investment and additional values can be gathered by actions through landowner
direct investment. Value capture can provide an opportunity to Sunway organisation to launch
the new project as the projects are properly planned by the management.
Figure 2: Value creation and Value capture in theoretical framework
(Source: Priem et al. 2017)

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Value creation process starts with the customer and the professional service firm and
value dimension is associated with the use values, professional values and exchange values.
Value capture is associated with the financial calculation of the customers and professional
service firm.
Past financial performance of Sunway Construction
Income statement 2016 (RM’000) 2015 (RM’000) 2014 (RM’000)
Revenue 1,788,844 1,916859 1,880,707
Profit before tax 153,677 140,750 139,324
Profit net of tax 123,363 127,787 112,898
Profit attributable to
owners
123,519 127,624 112,804
Net profit from
discontinued
operations
- - 50,566
Total net profits 123,519 127,164 163,143
Total noncurrent
assets
155,110 180,299 213,991
Total current assets 1,442,185 1,217,229 1,110,207
Total assets 1,519,295 1,397,438 1,324,198
Total equity and
Liabilities
1,597,295 1,397,438 1,342,198
Table: Financial performance of Sunway Construction
(Source: Annual report of Sunway Construction; Sunwayconstruction.com.my 2017)

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Future financial projection of Sunway Construction
Ratio/Statistics 2018 2019 2020
Net revenue 1,908,844 1,988,840 1,990,850
Operating
income
234,670 256,876 276,987
Unrestricted cash 65,000 78,000 98,000
Total debt 341,909 356,900 234,980
Operating
margin
2.1% 2.4% 3.5%
Debt position 4% 5.5% 3.5%
Liquidity cash to
total debt
54% 65% 76%
Table: Financial projection
(Source: Self-developed)
1.4 Proposing a value chain based solution to capture incremental value-added results
Clients and customers demand a decrease in time and cost when they talk about
construction and housing. Value chain analysis is a tool that is utilised in order to analyse the
internal activities of the firm. Value chain gives the organisation a competitive advantage and it
has two distinct activities, first primary activities and seconds support activities.
Primary activities
Inbound logistics In Sunway Construction, inbound logistics are concerned with
storing distributing inputs, receiving, handling of raw materials,

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warehousing and inventory control. This organisation is in the
construction industry so that the percentage of inbound logistics
is high and the organisation needs to maintain this to the supply
of the products and raw materials.
Operations Operation process is complex in the Sunway Construction as it
comprises the inputs into the final outcomes of the organisation.
Sunway uses the high-quality technologies and skilled resources
in the transformation of the products and services (Okdinawati
et al. 2015). The assembly, making the building and designing
are associated with this.
Outbound logistics It is involved with storing, collecting and making the building
by the Sunway. For Sunway, the process of outbound logistics
is different and finished goods are delivered to the agents.
Marketing and sales Sunway Construction has marketing and sales team that
identifies the customers’ needs and does the promotions
accordingly.
Services Services of Sunway involves in maintain the values of the
building, property and products after it is bought. This
organisation does installation, repair and training.
Table 1: Primary activities in value chain model
(Source: Self-developed)
Support services

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Firm infrastructure Sunway Construction does the activities like organisation structure,
control system and categorised work in order to develop the firm
infrastructure. However, Sunway Construction needs to improve the
company culture in order to develop the infrastructure with a
dedicated team.
Human resource
management
Human resource management of the organisation is skilled and
trained. There are many employees in the organisation who are
developed in construction works and they get compensation as well.
However, if the organisation needs to be global, they can improve
the recruiting process (Rensburg and Botha 2014). The recruiting
must be done based on the organisation’s needs.
Technology development Technologies of Sunway are world class as the organisation has
intended to develop the process of working through technological
innovation. However, technology in supply chain management
needs to be improved.
Procurement Procurement process of the organisation inputs all raw materials
and equipment and the organisation takes the cheap labour from
developing countries. In the procurement process, the warehousing
must be improved by Sunway in maintain the sustainable practices.
Table 2: Primary activities in value chain model
(Source: Self-developed)
The return of company’s earnings from sponorships and what the organisation expects
from the investment of other media, this comparison is called incremental value added.

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Therefore, Sunway Construction takes the breakeven as the primary aim of any project, however,
if the company can get more than what they expect, it is considered a success. Stakeholders of
the organisation get the benefits from the incremental added values and shareholders also get the
benefits from this.
1.5 Strategic initiative impacts the organisation’s strategic positioning and future business
sustainability
Sunway Constructions uses strategic initiatives in order to deliver advantages to the
shareholders and the shareholders want measurable performance results from the organisation.
Outcomes in the business measure the performance of the organisation and Sunway Construction
takes strategic initiatives through the value chain model so that the value creation process of the
organisation can be accelerated. The objective of the strategic initiative is to make business
growth for the next few years. In value creation process, the model of Integrated Reporting
provides the strategic initiatives as the financial values are the most important for the
organisation. Value can be created from tangible and intangible assets (Singh et al. 2014).
Intangible assets incorporate brands, licenses, altruism, know-how, notoriety, the information
held by workers and the corporate procedure. Intangible assets add to the production of
significant worth by associations. Increasingly value is made basically from impalpable instead
of physical resources. An intangible asset, for example, great notoriety, has been portrayed as
basic, in light of their potential for esteem creation and furthermore on the grounds that their
impalpable character makes replication by contending firms significantly more troublesome.
Strategic Positioning of Sunway will be based on the changing environment that provides
systematic realisation of the strategic positioning. Strategic positioning is the review of the
organisation’s financial goal by recognising the project margins and manages cost flows.

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Business performance of the organisation and credit needs of the organisation must be judged
with this (Smith 2015). Strategic positioning can be led to gain the efficiency and it can help to
gain the expertise in the construction market.
In making financial incentive in a way creates a value for society by tending to its needs
and difficulties. They depict shared an incentive as an idea that spotlights on the associations
amongst societal and monetary advance and that grows the aggregate pool of financial and social
values. Moreover, shared values depends on the commence that having natural or social issues
that are not tended to makes inner expenses for organisations, which oblige the degree of
significant worth creation, obliterate esteem or, over the more extended term, influence the
business to demonstrate unsustainably
Owners of privately owned businesses frequently recognize the trouble in making
goodwill in their purchase/offer or investor understandings by utilising esteem or resource
esteem for their valuation. This might be a think evasion of incorporating any generosity in the
business valuation. On the other hand, it might speak to conservatism, or only a want to keep the
valuation approach straightforward by utilising the consequences of the monetary record
arranged by the bookkeeper or an evaluation of advantages (Suzuki and Kosaka 2016). With this
reasoning as a background, a building and development firm makes goodwill. That is a business
which a purchaser will buy at an incentive past its advantages and amassed income esteem.
Gap analysis
Sunway Construction targets the value determination in the very first step with the IR
model of value creation. In second step, the organisation determines extrapolate current value,
with the help of current value of the organisation it can determine the future changes in the

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model. In the third part, designate the gap is needed and in the gap analysis, the changes can be
done based on required gap. However, the management can find out the gap and develop the
ideas to bridge the operational and strategic gap. The management can plan actions to bridge the
operational and strategic gap through implementation of actions. Given their commitment to
value creation, keeping in mind the end goal to help chiefs of business endeavours and their
suppliers of capital in their basic leadership forms rules [should be developed] for the
recognisable proof of immaterial estimation and effective administration of intangibles inside
organisations.
Conclusion
Construction companies need to take an initiative culture. A development firm is a
gathering of individuals who get, perform, and are paid for the undertakings and administrations
they give. Take out the general population, and really the sum total of what you have is the
benefits and liabilities of the business. An authority culture is one that creates remarkable
individuals, and the business is along these lines ready to develop by growing the association. A
capacity is to discover and abuse openings. The moderate development and repeating building
and development advertise is comprised of various development showcases that cycle with
power. Net revenues in parts shift generally too. The esteem making firm can rapidly discover
and move to and from circumstances.

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Part 2: Evidence Review
1. A critical analysis of the selected literature theme
The tradition of working through integrated hierarchy has now been largely replaced by a
more digital framework, which is not limited to the in-house resources of a firm. Many firms
across different industries such as automotive, textiles, apparel, service and electronic
manufacturing have already accepted the requirement to consider the change. Such a revolution
has happened because of digitalization in technology. As stated by Pagani (2013), the numerous
technologies such as cloud computing, peer-to-peer network, Internet of Services, virtualization
and other IT related digitalization have contributed in disrupting the existing business model.
The selected literature has suggested a fact that firms across the globe are trying to be more
digitalize to help them create values in every aspect of a business operation. This will be
interesting to see whether the selected company Sunway Construction has gone through the same
way.
The consultancy report analysis has shown the company lacks in supplying values in the
financial performance. The value in financial terms can be created through various ways such as
revenue portfolio, stock exchange behavior, market shares, capital investments etc. A
progressive revenue portfolio speaks the volume of success that the company maintains in every
fiscal year. Market shares just show how dominating the company is in the market. Capital
investments are utterly required to conduct a project. These all concepts make things clearer that
the Sunway Construction requires adding values to its different financial aspects. As opined by
Achtenhagen et al. (2013), the market shares are solid as it has the highest market shares in the

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construction industry in Malaysia. This shows that they are a potential company. This will be
relatively easier for the company to create values in the identified financial aspects.
The company lacks in using innovation, which is of utter experience in the construction
industry. It is required to have a solid vision and mission, so that, it could be incorporated with
the useful frameworks to get the things to happen in the workplace. Innovation is required to
understand the importance of different technologies and equipment in improving the project
handling capabilities and in mitigating the risk factors. According to Liu and Tsai (2012), the
construction industry is very important for both the developed and the developing nations. The
industry is responsible for all the construction works that happen there. The construction industry
is labor-centric and requires the help of various electronic equipment and the different types of
machinery. This is because of such facts it is very certain that the project faces unexpected
accidents at the construction sites.
It has further been supported by Valdes-Vasquez and Klotz (2012), as they state the
importance of safety and health in the construction industry. They have spoken about
sustainability in the construction sites. According to the authors, sustainability in construction
industry comprises of many things that also include safety and health as other important aspects.
In the opinion of the authors, construction companies should create values by maintaining a safer
and a healthier working environment. Zhou, Whyte and Sacks (2012), have indeed argued the
digitalization of construction sites by raising few questions such as the importance of having
design model for safety. It is not just sufficient to implement an innovative technology.
According to the authors, labors are an integral part of a construction company. It is, therefore,
an utmost importance for a company to make it sure that innovative technologies have been

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incorporated with adequate safety parameters. There is a necessity of having a designed process
to govern the management of labors in the construction industry.
Sunway Construction is also found as less effective in supply chain management. The
identified reason behind the cause is the use of technology. They have not yet explored the
supply chain operations to superior technologies, which is required in every aspect such as the
inbound logistics, the outbound logistics, the manufacturing process and the marketing & sales
process. Marketing itself has been introduced to an ample number of marketing modes such as
the online marketing. This is really important to attract the customers. Additionally, there should
be an efficient management of raw materials, which is only possible through a competitive
forecasting capability. This is really helpful in reducing the wastages of raw materials. As opined
by Fosso Wamba (2012), technology is very important to improve every single aspect of a
business operation. According to the author, RFID is one of such technologies that help to
improve the supply chain operation. It enhances the data accuracy, which is necessary to avoid
any communication gap.
In the opinion of Groves et al. (2016), technology is the need for every industry across
the globe. On a similar note, healthcare sector does also require such technologies, which could
enhance their job experience and innovativeness as well. The "Big Data" is one of such
technologies, which has proved its worth for the healthcare industry. On the other side, using the
technology, they can now manage a large data. This will also accommodate data on various
diseases, which is helpful to get knowledge on the relevant disease. Moreover, doctors will no
longer be requiring books to get information on some common cases.

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Value creation is very important from the perspectives of any company. The degree of
importance rises with the size of the company in concern. Value creation is not a new concept;
however, the way of bringing values to the business has kept on changing with time. The change
has probably brought by many technological advancements, which is the result of extensive
investments in the technological advancement. The changing economy in developing nations is
because of many factors that also include technology. Technology has become a common
platform the bearer of which becomes much more competitive. Technology can be identified as a
good tool to stay competitive in the market. This has also encouraged the various IT firms to
bring innovative technologies to the market. They have identified their target market. This is one
of such reasons that have encouraged such IT companies to bring more and more innovative
technologies. On the other hand, as argued by Horwitch and Stohr (2012), the different types of
industries have their requirements for various new technologies. For example, the United States
of America has now even surpassed the Kingdom of Saudi Arabia in terms of producing the
highest number of oils. According to Wang and Krupnick (2013), the use of extensive
technologies in oil drilling process has enabled the country to produce much more oil. If the
trend continues, the United States of America will be at the top position in supplying the oils to
the other parts of the world.
1.1 Supporting the perspectives from other modern organizational evidence
A superior use of value creation can be significantly given from the examples of
McDonald. The company has utterly identified the importance of value creation, which is
important for a sustained success. Interestingly, an attractive menu style and the use of
technology are the two pillars of success of the McDonald Company. The transformation of a
small company into a multibillionaire company has not just happened. The company is all set to

27VALUE CREATION
launch a digital ordering platform later this year. The technology has been introduced to
compensate the extra time, which will be consumed in the preparation of fresh quarter pound
burgers of beef (Valdes-Vasquez and Klotz, 2012). Since speed is an important factor in a fast-
food business. This technology will prove to be helpful for keeping the McDonald competitive in
a long run fresh (Forbes.com 2017).
The use of technology can further be understood from the example of Walmart. It is
indeed unpractical to think the retail industry without any digitalization. The Internet of Things
(IoT) is shaping the retail industry. It is influencing the three important segments that are a part
of a retail business. Those three segments are customer experience, new channels & revenue
streams and the supply chain. Walmart is one of the rarest companies on this earth that use
digitalization in a more diverse form. It has aggressively enhanced its online sales to compete
against the online rivals Amazon.com and e-Bay. It has adopted “Polaris” in the year 2012 to
provide a more personalized offering to its online customers. It uses Walmart Pay app, which is
available at the 4,600 US stores. The moment customers enter the shopping malls they will be
able to draw a picture by looking at the advertisements the thing to purchase. Customers will also
be able to match the prices of different items in real time. This is indeed a very effective move as
customers will now be able to calculate more or less the entire processing at the Walmart malls.
Like others, Walmart has also implemented the use of Big Data to go much insight the
customers. Big Data is really helpful in analyzing the buying behavior of customers. This will
also help in drawing a study on the search histories and website interactions (Rctom.hbs.org
2017).

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This is not just sufficient Walmart has continually relied on the use of RFID technology.
They have done so to improve their inventory management. An improved inventory management
will provide many benefits such as the follows (Michalski 2013):
 Reduces the wastage of materials, which is indeed helpful in enlarging the gap in
between the cost incurred and the profits gained. Moreover, this will enhance the
profitability margin.
 Helps in effectively forecasting the customer’s requirement. This is another important
aspect in controlling the wastage of materials. A better forecast of inventories helps in
avoiding an uncalculated purchasing of raw materials. This will indeed facilitate the
purchasing in real time.
 A properly managed inventory helps in avoiding any error clash in manual entries and
accounting entries at the time of an auditing.
Walmart uses RFID to manage its inventory effectively. They have used this effectively
as the technology provides a system, which is known as "smart shelves". The smart shelves
facilitate the acknowledgment of stock automatically. This is really interesting and the benefits
of it help to understand the superiority of the technology in managing the inventories. It
automatically indicates when the stocks are low. Nevertheless, the technology has helped the
company to reduce its out of stock status by a whopping 16% (Wang and Krupnick 2013).
Additionally, they are also planning to use drones to further improve the efficiency level of
inventory management. The preparation of a private cloud is already underway. This will one of
the biggest private clouds and will facilitate the storage of data from 11,000 stores
(Rctom.hbs.org 2017).

29VALUE CREATION
Walmart successfully uses the technology to enhance its customer experience both on the
online platform and on its different stores across the globe. They do use technology at the time of
packaging as well to detect the storage environment of the products. Moreover, such packaging
also helps to detect the product history (Rctom.hbs.org 2017).
1.2 Concluding thoughts
The discussion that has been made above on the use of value creation from the
perspectives of variously selected literature and from the evidence of organizational practices;
this can be concluded that value creation is important for success. Various literatures are in favor
of value creation. Value creation can be attained through different ways that also include an
extensive use of modern technologies. Technology is very important to bring value to the
different product line as well as in the services offered. However, this does not alone help to
create values in operation. The organizations do not know the activities and the connection
between them in value creations as there are various departments and their outcomes are related
to this. Depletion of various constituencies is associated with this with multiple timeframes. In
value creation, the best strategy might not work for the organizations, in this respect;
contingency plan must be ready beforehand. In this case, the organizations can use boundary in
environmental, economic and so that they can impact on organizational ability. In hostile
situation of the business, the corporate activities of the business should be done in order to asses
and communicate the organizational performance. Moreover, value creation can be done without
the standardize measurement; in this case, stakeholders and shareholders should know about this.
The example of McDonald has helped to understand the advantages of using technology in a
firm. However, on the other hand, the example of Walmart has helped to understand the benefits
of both the technology and the other management strategies in attaining a valuable status.

30VALUE CREATION
Walmart is blessed by both the use of technology and the use of other management strategies
such as the physical advertisement at its different stores. The example of Walmart has also
helped to understand the benefits of RFID technology in improving the inventory management.
Moreover, an improved inventory management will help to attain a wider number of benefits
such as the reduction of wastages of materials and a relative growth in profitability margin.

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Part 3: Reflection of Employability Enhancement
1. Critical thinking & core capabilities needed to achieve the consultancy task
Consultancy task is very challenging to understand. This is for various reasons. First and
foremost, there is a requirement to understand the subject matter of the given topic. Then and
only then it is possible to at least have a go with the subject topic. Once the topic is clear, it then
requires a thorough study of variously related literature to better understand the subject topic and
answer accordingly. There are instances that make thing difficult as some parts of such reports
are very complex such as how to create values in business. This is indeed a much tougher task.
Even after going through the literature, some contents are still not clear. This again requires more
and more research to better understand the subject topic (Yang and Wu 2012).
A consultancy report requires an underpinning analysis of it in the light of variously
established literature as stated above. This is itself a very difficult task to handle. Incorporating
the different articles with the subject topic takes a good amount of time to actually realize the
interrelationship between the two. Additionally, there is still the requirement to understand the
report in the light of contemporary organizational evidence. Finding the appropriate
organizations for the analysis portion is itself a difficult task. The selected organization might
have even more than what has been expected from. This will again require a filtration to be done
to get the most relevant part of the selected organization. This is indeed in particular very
challenging as this requires a thorough understanding of the subject topic. A thorough
understanding will help in distributing the information based on the needs. This is again difficult
to those who are not well versed in the subject topic (Paunesku et al. 2015).

32VALUE CREATION
2. Evaluating the self-competencies in completing such tasks
I had got the chance to prepare a consultancy report on the chosen subject topic for this
assignment. I found this assignment relatively tougher than the normal report task. This is
because of the subject topic and also because of the contents that it had required. I started very
carefully by going through the relevant literature available on the selected subject topic. The
articles that were selected had helped me in understanding the importance of value creation.
However, there are some points that need to be improved in order to prepare an excellent
consultancy report in future. Some of the points that needed to be covered in future are as
follows:
 An understanding skill, which could help me inappropriately underpinning the academic
thoughts in relation to the study topic. This will help me in conducting a much deeper
analysis of such consultancy reports. Moreover, the identified areas need a consultation
of appropriate leadership styles.
 The comparing skills are also on an average side. I need to be well versed on how to
compare two or more than two countries. This will help me produce a much deeper and
conceptual report in future.
The identified areas could have observed because I got the opportunity to work on a
consultancy report task. This has helped me understand the shortcomings in me. Moreover, this
has done a much important thing to me. It has made me understand the importance of a life-long
learning process. This is indeed very much required in academics as well as in professional
career. Professional career will indeed require a much deeper connection with the life-long
learning process. This is because professionalism is accepted on every platform. Most

33VALUE CREATION
importantly it gives chance to enter the most reputed organizations across the globe. This is very
much important for a professional career.
3. Leadership skills required for future personal development & career accession
There are ample of leadership styles, which are helpful in different circumstances
according to the needs and the relevant benefits of every leadership style. However, the
shortcomings, which is there in me requires assistance from the transformational leadership style
(García-Morales, Jiménez-Barrionuevo and Gutiérrez-Gutiérrez 2012). The transformational
leadership style helps to adapt to the surrounding circumstances. This is indeed required at the
professional level. This is also required for being competitive as well. Moreover,
transformational leadership style is important to have a good relationship with the other members
of a team or with the middle and the top management team. This is indeed required because I
need to develop in me a never dying spirit for a life-long learning process. This is one such thing
that will keep on grooming me and will keep on opening ample of an option to me. It is indeed
required to have diversified skills in order to avail opportunities in ample of organizations across
the globe. If that happens I will be able to innovate with the newest thing, which is required to be
a successful professional or also to be a successful entrepreneur. The transformational leadership
style will also help me in acquiring a higher degree of adaptability in me. This is much more
needed in private sectors. Due to the huge competition in the private sectors, it is indeed
challenging to retain a position. Nevertheless, transformative leadership style will help me learn
continuously and will also help me develop to become a talented professional. Talented
professionals are indeed needed at the different multinational companies across the globe (Aithal
2015).

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Conclusion
Life-long learning instinct is utterly required in academics as well as at the professional platform.
This helps to score good in academics and to understand the subject topic effectively. Such
benefits are indeed required to explore those at the professional platform where challenges are
many. Professional platforms have many other challenges as well, which is why it is needed to
be professional and to have a zeal for a life-long learning process. Such spirit helps in
development according to the trusted institutions. At the professional level, the transformative
leadership style does help a lot. The most important benefits of it are the abilities to adapt to the
surrounding circumstances.

35VALUE CREATION
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