Strategic Management - Sample Assignment PDF

STRATEGIC
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
Purpose of the report...................................................................................................................3
Company overview ....................................................................................................................3
Strategic challenges.....................................................................................................................3
Vision mission, Goal and Objective............................................................................................3
ENVIRONMENTAL ANALYSIS..................................................................................................4
Macro environment analysis.......................................................................................................4
Industry Issue..............................................................................................................................6
CAPABILITY ANALYSIS ...........................................................................................................7
Value Chain Analysis..................................................................................................................7
Resource Audit............................................................................................................................9
VRIO Analysis Model.................................................................................................................9
PROPOSED STRATEGIES..........................................................................................................10
Swot Analysis............................................................................................................................10
Porter Generic Strategy.............................................................................................................12
EVALUATION OF THE PROPOSED STRATEGIES................................................................13
CONCLUSION.............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
This report highlights the vision and the goal of the selected organization. Further this report
highlights the Environment analysis of the environment in which company is dealing. Further
this report highlights the capability analysis of the selected organization and the strategy which
need to be done in the company and the evolution of the strategy.
Purpose of the report
The main motive and the reason of conducting this report is to find out the strategic planning of
the KL Kepong Plantation company as this is the company on which the report will lay
emphasis. This report will look at both the internal and external business environment in which
company deal.
Company overview
Kuala Lumpur Kepong Plantation company is the Malaysian based company with the speciality
in the oil palm and rubber development in the country. The company is listed at the main market
Bursa Malaysia security with market capital of the 26.7 billion (Perera, 2017).
Strategic challenges
The challenges which are faced by the KL Kepong Plantation company is the slumping oil
prices and meeting the timely achievement for the organization and bit of the government
support is also influencing the performance of the KL Kepong Plantation company. As the KL
Kepong Plantation company in 2017 was very good as compare to the other year but it is not that
good as compare to other company like IOI, SI ME plantation. KL Kepong Plantation ranked 3
in the Malaysia. The main reason of all this challenges occurrence was the inaccurate whether
and the flexibility in the consumer demand in the market.
Vision mission, Goal and Objective
Vision statement or setting the goal for the business all are the function in the organisation which
stats the future desired of the business to be achieved by the specific period of time. Vision
statement is the document which generally includes this all purpose of the organization(Fozer
and et.al., 2017). Vision statement of the KL Kepong Plantation is as follows:
 To gain the first position in the Malaysian market by the end of the one year.
 To lower down the cost of the company to get a big competitive advantage in the

market.
 To improve the company lank bank by procuring more land in the name of the company
to carry out company activity
Company will be using the different operational management tool to reduce the cost of the
company the tool will be just in time or the lean production technique in the organization, and
also company will adopt the new tool and technique to improve the competitive position in the
market.
This vision statement of the KL Kepong Plantation can be reviewed on the basis of the principle
of three power Focus, Motivation and Clarity
Focus: This statement of the KL Kepong Plantation is a focused statement as the main focused
of the business in to get the first place in the market and to reduce the cost of the product making
in the organization.
Motivation: This statement of the KL Kepong Plantation is the realistic and unique statement
which will motivate the employee to bring the organisation the success which organization is
desiring. As KL Kepong Plantation is trying to bring new technique it will help the employee in
learning the new skill which will motivate to work harder.
Clear: This statement quiet the clear what the company is expecting form the coming year and
also with the specific period of the time.
ENVIRONMENTAL ANALYSIS
Macro environment analysis
Macro environment is the external or the out side environment of the organization which is
outside the control of the KL Kepong Plantation. PESTLE Analysis is the best way to
understand the same:
PESTLE
Factor Analysis
Political Factor Political Environment of the Malaysia is always proved as a favourable
department only for the Oil Palm industry as it offers the following benefit.
 The political stability in the Malaysia and the lower level of the
crime rate in the country has helped the business in the positive way

as they have not to change the policy on the regular basis
 Government has also suspended the 5 percent export rate which has
positively helps the Oil Palm industry but at the same time the
decision of illegal the rainforests of northern Borneo with palm oil
plantations has hurt the Oil Palm industry (Varkkey, Tyson and
Choiruzzad, 2018).
Economic Factor This factor has also proven favourable for the Oil Palm industry as
 The GDP of the Malaysia is rising and seeing the good growth in the
last couple of the year which is a positive sign for the Oil Palm
industry. GDP has risen by 1.40% in first quarter
 Flexibility in the inflation rate has affected the organization in the
negative way the big reason for the flexibility was the Government
change or the removal of the GDP and the consumer demand.
(Cooke and Hezri, 2016).
Social Factor This is the factor which has been successfully defended by the Oil Palm
industry
 As the Oil Palm industry is the well known industry in the
Malaysian it accounts for the good amount of the recurring income
provider for the smallholder in the country.

 It also helps the economy in the employment generation as Palm oil
generation provides more than 4 million people employment in the
Malaysia (Varkkey, Tyson and Choiruzzad, 2018).
Technology
Factor
This is the factor which has affected the Oil Palm industry in their working
 As the technology is changing rapidly in the today scenario it has
proven difficult for the Oil Palm industry to adopt the new and the
innovative technology every time as it requires the high investment
of the time, employee and the financial resources and eventually it
increasing the cost of the product with the old technology which is
negatively affecting the organization in the competitive market
(Kardooni, Yusoff and Kari, 2016).
Environment
Factor
This is the another factor which is affecting the Oil Palm industry as:
 Oil Plantation in the Malaysia is causing the deforestation in the
country which is providing the land but it also affecting the
environment of the economy.
 As the change in the climate of the Malaysia toward less
temperature is also affecting the Oil Palm industry as oil Palm
requires high temperature (Rastogi and Trivedi, 2016).
Legal Factor This factor is very favourable for the Oil Palm industry as
 Many act are launched by the Malaysian government to endure the
good quality of the product is produce by the organization. Act is
named as a Malaysian Competition Act, 2010, Environment Quality
Act, 1974 (Rastogi and Trivedi, 2016).
Industry Issue
Industry issue are the issue which are faced by the organization in dealing in the industry
generally this are the issue related to the competitive intensity in the market. Porter's 5 forces are
the best way to judge the issue in the industry
(Phadermrod, Crowder and Wills, 2019).
Porter's 5
Forces Analysis

Threat of the new
comer
This is the threat which generally does not affect the Oil Palm industry as
the Oil Palm industry requires a lot of financial investment to start the
business so generally the new comers doe not look to come in this industry
as the risk of establishing them in the industry is also very high as they need
to suffer the good amount of the competition in it . Need of the technical
knowledge and the skill is also very high which eventually does nit attract
the new comer toward the industry (Mathooko. and Ogutu, 2015).
This threat which is low for oil palm industry.
Threat of
bargaining power
of the Supplier
This is the threat which is affecting the industry as the plantation industry
requires the good and vast quality of the fertiliser to operate in the business
and it is generally provided by the supplier, but as the organization having
the good goodwill and deals at the larger scale it helps them in getting the
discount on purchase but this factor generally affects the business.
Furthermore, the substituting cost for CPO buyers to other alternatives is
rather high (Adi, 2015).
This threat which is high for oil palm industry.
Threat of the
Bargaining
Power of the
customer
It is the force which also generally affects the Oil Palm industry as there is
good substitute is available for the Palm oil in the market and also there are
many competitor in the market which helps the customer in switching off
which impact the bargaining power of the buyer in the economy.
This threat which is high for oil palm industry (Mathooko. and Ogutu,
2015).
Threat of the
Competition
This is the factor which affects the Oil Palm industry but many organization
is able to defend the same with the help of the good goodwill in the market,
there is a good amount of the competition is available in the market.
This threat which is high for oil palm industry (Adi, 2015).
Threat of the
Substitute
This is threat which generally affects the Oil Palm industry as the palm oil
is used by variety of the industry for their working such as Food and
cosmetic industry. But as there is a good amount of the substitute available

in the market the consumer sometime also uses the substitute product like
soya bean or the coconut oil in their usage which proves that this is the
factor which generally affects the Oil Palm industry.
(Mathooko and Ogutu, 2015).
This threat which is high for oil palm industry.
CAPABILITY ANALYSIS
Value Chain Analysis
Value chain Analysis is the Analysis which will show KL Kepong Plantation competitive
advantage (Mol, 2015).
Primary
Activities
Activities Performed How does it create the
value
Strength /
Weakness
Inbound
Logistic
KL Kepong Plantation has has
expand their business by opening
heir branch in the Delden, The
Netherlands which has provided
additional oil palm for the
organization.
As the expansion helps the
business in conveying the
message of endless
enhancement to the
stakeholder.
Strength
Operation Company has used the
technology with the human
resources.
It helps the business in
offering the best quality of
the product to the consumer
in the market.
Weakness
Outbound
Logistic
The company is investing heavily
on the talented worker of other
country in Malaysia
Help in increasing the
revenue for the organization
Strength
Marketing and
sales
Has changed the distribution
channel to attend the large
number of the customer for the
purpose of exchange.
Helps the economic in
development of the business
strategy with looking at
safeguarding the socio
economy.
Strength

Service Resurveyed Bright Farm with
MLME for the purpose of
serving the product to the
economy
Helps in product
improvement and technology
advancement (Jaligot, R. and
et.al., 2016).
Strength
Supporting
Activities
Activities Performed How does it create value Strength /
Weakness
Infrastructure The company has used the help
of the expansion to improve the
network of the area covered by
the organization
Helps the company in
improving the customer base
in the long run
Strength
Human
Resources
This is the big issue which is
faced as the company was
finding it hard to find the young
and talented guy so that company
can create the good employee
base.
Helps the business in
creating the good human
resource with the help of the
benefit, training and
remuneration (Ansoff And
et.al., 2018).
Weakness
Technology Company has adopt the new
technology but not that good and
the company is finding to find
out the best available technique
in the market.
It will help the business in
improving the quality of the
product in the organization
and technology
advancement.
Weakness
Procurement KL Kepong Plantation uses the
online procurement.
Will help in the improvement
in the quality of the product,
process and technology
advancement (Annual report,
2018).
Strength

Resource Audit
Threshold
Resources
Activities Performed How does it create value Strength /
Weakness
Plantation land Organization is having 250 000
ha. Of land for carry out the
business activity
It is the operation platform Strength
Processing
Mills
The KL Kepong Plantation has
the 24 palm of the mills
Own mills reduce the
wastage and the cost for the
organization
Strength
Worker The organization is having the
38000 employee in the
organization
They are the one who carry
out the activity of the
business (McCarthy, C.,
2016)
Weakness
Financial cash
flow
RM of the organization is the
753.3
Build the Future capital for
the KL Kepong Plantation
Strength
VRIO Analysis Model
Activities Valuable? Rare? Inimitable? Organization
Oriented?
Inbound Logistic Yes Yes No Yes
Operation Yes No Yes Yes
Outbound
Logistic
Yes No No No
Marketing and
sales
Yes No Yes No
Service Yes Yes No Yes
Infrastructure Yes No No Yes

Human
Resources
Yes No Yes No
Technology Yes No Yes No
Procurement Yes No No No
Valuable: It has bee summarised that all the primary and the supportive activity are important
for the business as all the activity are interrelated and coordinate with each other and helps the
business in defending all the challenges
Rare: Inbound logistic is the rare as no company has gone into the Netherlands for their branch
opening, The service which is offer by the company with the help of the USP it is very rare and
effective
Inimitable: Almost 60 to 70 percent of the activity is difficult to copied by the other in the
market. The strategy for operation and the marketing are the same as the other competitor in the
market (Ginter, Duncan and Swayne, 2018).
Organization Oriented: KL Kepong Plantation scores the good rating in the sustainable
marketing palm business in the UK.
PROPOSED STRATEGIES
Swot Analysis
TOWS ANALYSIS
STRENGTH:
 Financial stability in
the market
 Strong Infrastructure
 Strong Goodwill
 Environmental
Friendly Production
 Inbound and the out
bound logistic of the
organization
 Strong operational
strategy
WEAKNESS:
 Timely finished of the
project
 Human resources
 Service
 Procurement
 Technology

OPPORTUNITIES:
 Effective Technology
adoption
 Political stability in the
Organization
 Upgraded talent and
skill Human resources
 Operational
management technique
S-O STRATEGIES:
As the company is having the
good financial resources with
them they can plan to adopt
the new technology from the
market so that they can get a
competitive advantage in the
market by offering the best
quality of the product from the
new technology. As the
organization is having the
strong operational strategy
than they can use the different
operational tool to reduce their
wastage and improve the
effectiveness in the
organization (Ginter, Duncan
and Swayne, 2018). As the
infrastructure of the
organization is also very good
so the organization can look to
recruit more talented
workforce as the infrastructure
will attract the new talented
worker toward the company.
W-O STRATEGIES:
As the organization is looking
for the well developed worker
in the organization there is a
very good opportunity for the
organization to heir the
talented worker as there are
many unemployment talented
employee in the economy.
Technology is the other
weakness of the company but
there is a good opportunity to
adopt the new technology in
the organization. Adopting the
operational management tool
will help the company in
managing the time efficiently
which is a big weakness of the
country in today period.
THREAT:
 Flexibility in the
climate
 Highly Competitive
market
S-T STRATEGIES:
Company can make the use of
their good will in the market to
defend the threat of the highly
competitive market by
promoting more and more
W-T STRATEGIES:
It will be difficult for the
company to build a good
human resource for the
organization as it will affect by
the rise in the minimum wage

 Inflation rate
 Increase in the
minimum wage rate in
the Economy
customer about the company
product. Company can be
helped by the inbound logistic
to dealt with the flexibility
climate and the inflation rate in
the economy as the inbound
logistic has helped the
company in getting the variety
of the location for the oil palm
manufacturing. As the
company is developing the
environment friendly product
it will help the business in
treating out the threat of the
High competition and flexible
climate.
rate in the organization. The
company will also face the
problem in the procurement
function in the situation of the
Competitive market and the
inflation rate. As the
technology is the big weakness
for the organization it will get
difficult for the organization to
get a competitive advantage in
the market.
Porter Generic Strategy
It is the strategy which is used to develop the strategy for the organization on the basis of the
TOWS Analysis
Proposed Strategy 1 To reduce the cost of the company product
Strategy model Cost Focus
Analysis
This strategy will help the KL in reducing the cost in the organization by
reducing the wastage and the proper scheduling of the function in the
organization. This can be done by the company by adopting the different
tool of the operational management in the organization, as the Lean
production will reduce the wastage in the organization and the just in
time will help the company in scheduling all the task in the proper ways.
 Increase in the revenue of the business

Benefits
 Company branding as efficient producer
 Reduce the risk of labour shortage
 Increase of production by efficient operation
 Help in getting the competitive advantage
 Will decrease the price of the company product
Proposed Strategy 2 To get competitive advantage
Strategy model Cost Leadership
Analysis
This strategy will help the KL in eshtablishing the competitive
advantage in the industry with increasing the company efficiency, size,
scale, scope and cumulative experience in compare to the other company
in the industry.
Benefit
 Improve on the production, product variation and quality
 Pull through the risk of government rules and regulation
 Entirely use R&D
 Closing gap of production with the market leader with the
increase of planted area
EVALUATION OF THE PROPOSED STRATEGIES
Generic Strategy Suitability Acceptability Feasibility
Cost Focus
To reduce the cost of
the product in the
organization
It is suitable for the
business to address the
problem of the
customer, which will
benefit the company in
getting customer
satisfaction. Cost
reduction will help the
company in reducing
the price of the
This will require the
skill labour and the
Operational
management tool in
the organization, as it
will help the business
in getting the new and
innovative way to
present the thing in
market. As Cost focus
This will incurred the
higher investment in
the machinery of the
business and will help
the business in
increase the efficiency
level. As the company
is in good financial
status company can
afford to do that as

product. can be done with the
proper focus and
process so it will
require the high
quality management.
eventually it will help
company only.
Pass YES YES NO
Generic Strategy Suitability Acceptability Feasibility
Cost Leadership
To get competitive
advantage
It is suitable for the
business as it will
solve the problem of
the competition as it
will increase the
operation of the
business. As the cost
leadership will low
down the rice of the
product which will
attract the customer
toward the
organization.
This will require good
strategy and well
trained labour and
which will benefit the
business in building
good work force. As
the cost
leadership[ requires
the attendance from
the employee side as it
is difficult task to
implement.
This will inured the
higher supervision and
the leadership in it
which will help the
business in getting the
control over the
employee. (Morden,
2016). As employee
are the one who in the
end will carry out the
activity of the
business.
Pass YES YES YES
KPI

As the above data show that the KL Kepong Plantation has continuously has improved the
performance with the development of the new technique and offering the variety of the new
product to the consumer. KL Kepong has also taken the help of the Strong goodwill in marketing
the product of the company in the market in such a way that it has attracted the large amount of
the customer toward the KL Kepong Plantation. As the above data shows that in the 2013 to
2014 their was a fluctuation in the revenue but it was because at that time the company was
planning to bring new thing in the market and was going through change duration.
CONCLUSION
After going through above report it has been summarised that the selected organization is doing
good but the organization is targeting to become the leader in the market but for that reason they
are facing some problem of the time management and the cost reduction. It has been also
summarized with the help of the Pestle and the TWOS that there are many weakness some can
be removed but some of them will prove difficult for them as the threat will also help them in
becoming the tougher weakness It has been also summarised that the strategy which is suggested
to the company will be good for the company to achieve the vision and the goal company is
desiring.

REFERENCES
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Online
Annual report, 2018 .[ONLINE]. Available through
<https://www.klk.com.my/investor-media/financial-information/annual-reports/>