Business Strategic Analysis: CIMB's Acquisition and UTAR's Ranking

This report provides a comprehensive analysis of two business cases. The first case examines CIMB's acquisition strategy, specifically its interest in acquiring Jupiter Securities to facilitate a joint venture with China Galaxy Securities. The analysis explores the challenges faced, including market share a...Read More

BUSINESS
STRATEGIC

Table of Contents
INTRODUCTION...........................................................................................................................1
CASE 1............................................................................................................................................1
A. Identification on the main problem of the case.................................................................1
B. Description on the strategy for which CIMB is using.......................................................2
C. Justification on the above strategy.....................................................................................3
CASE 2............................................................................................................................................4
A. Explain the issues discussed in the given case. ................................................................4
B. Description of competitive advantage of the UTAR's university. ....................................5
C. Define its strength and kind of opportunities he should use in the future.........................6
D. Define strategy in relation to the opportunities and strength.............................................6
CONCLUSION................................................................................................................................6
REFERENCE...................................................................................................................................8

INTRODUCTION
The term business strategic means deciding the plan and action so on that basis firm can
achieve long term growth and objective of the business. It is very helpful in deciding the
systematic idea for the completion of the particular goal. Without the proper strategic function,
an organisation cannot run successfully. In this report, there are two cases of business strategic
has given, in which one has to focus on the acquisition strategies of the business. The new
entrant should focus on the best strategy due to which amalgamated company can earn maximum
return. In another case the ranking of the universities has given in order to improve the
performance of education to bring overall development. The Malaysia's university is on the top
rank as compare to the universities in the Asia. The enrolment of the students can define the real
success of the universities.
CASE 1
A. Identification on the main problem of the case.
According to the sources given in the case, the CIMB is looking ahead for acquiring the
Jupiter securities. The main intention is to get additional licence of the stock broking to merge its
business activities with the china galaxy security. The main problem in this case is that Jupiter
securities is largely affected by market share and trading volume. The main object behind this
acquisition is to get additional stock broking licence. With the help of this the company can
reduce the cost of the good and services. In this given case there is issue relating to the revenue
of the company in which there is huge difference between the financial reports of two
companies. The changes in the marketing condition are the main problem behind the failed
acquisition of company. The issue with the merger at this point leads to the profit synergies
which are very limited due to this the plan of acquisition has been dropped. (Baumgartner and
Rauter, 2017).
The cost synergies of the company is hard to execute. For effective merger, company need scale
if there is not any effective scale than company can't be operated at optimal performance. But
CIMB has good size and the scale so if there is any merger with CIMB that would be great in
the term of the return. So, it was enabled to find out the acquisition of the Jupiter securities
enable to CIMB to obtain an additional licence for its stock broking business to facilitate merge
with china galaxy securities. The cost synergies of company are hard to execute. For effective
merger, the company need scale if there is not any effective scale than company is not operating
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at the optimal performance. But CIMB has good size and the scale so if there is any merger with
the CIMB that would be great in the term of the return. So, it was enabled to acquisition of the
Jupiter securities with CIMB to obtain an additional licence forstock broking business to
facilitate effective merge with china galaxy securities. The china galaxy securities is one of the
famous business entities which is listed on the Hong Kong stock exchange with more than eight
million customers. The scale growth of the business is not so effective due to which economy of
the scale cannot be sustain for the longer period. The financial condition of the business should
be improvised so that merger of company can be possible. The amalgamation of the company
can be possible when such merger is capable of giving good return. In addition to this both of the
case has been given to follow the good strategy due to which company can earn maximum return
in his own way (Cairns and Sliwa, 2017).
B. Description on the strategy for which CIMB is using.
The strategy means plan of action which help in achievement of the long-term objective
of the firm. It is time involving process. Market entry strategies are the strategies that are useful
for the company who desire to enter in foreign market (Faff, 2017). Factory or plant uses
different strategies to launch their company in foreign market. There are many factors which
affect the choice of strategies like availability of raw material, transportation and tariff rates
demand of the particular product and marketing. Following are some market entry strategies.
Licensing- Licensing is the process in which one company gives power to another company to
use their goods and services. This process may be risky because the company have to share its
products information to another establishment. So, before applying this method company should
make aware about the contract and agreement to lessen this risk. It can be a good option if the
company has a larger share as compared to another.
Franchising-Franchising is a method used when there is less need of goods and service
transformation. This method can be used mainly in food and clothing sectors because these
companies need fewer changes to start a new company.
Joint Venture-Joint venture is the process in which two or more company get merged to form
third company. In this method first company could pair with another company to create same
product and can make new product together (França, 2017).
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Acquisition Strategy-A small company with extra investment may use this strategy to obtain
more competitive advantages. An acquisition strategy requires another company or its one or
more product lines.
The CIMB group wants to acquire Jupiter securities and facilitate its joint venture with China
Galaxy securities co Ltd. The case describes that the company is using acquisition strategy and
joint venture to expand the business and reduce cost. The CIMB groups wants to merge with
another two security companies to obtain more competitive advantages. Jupiter securities is a
small broking corporation which financial performance is affected by market share and trading
volume. So Jupiter securities wants licence from China Galaxy securities to expand their
business as China Galaxy securities co Ltd. is one of the leading Chinese security companies and
is listed on the Hong Kong Stock Exchange. China Galaxy securities also wants to acquire with
this merger to expand its business (Kurucz, 2017).
C. Justification on the above strategy.
The strategies used in the following case are appropriate. Two scheme are used in this case
because the companies mentioned both case needs different strategies to increase their market
value. CIMB groups uses acquisition plan of action to merge with Jupiter Securities so that it can
expand business and gain more competitive advantages. CIMB already has a stock broking
permit under its investment bank. Jupiter Security's financial performance is affected by market
share and trading volume. Jupiter securities urged licence from China Galaxy securities to
improve its market value because China Galaxy securities co Ltd. Is one of the biggest company
in Chinese securities companies and is listed in Hong Kong Stock Exchange with more than
eight million customers that conduct its business mostly online. CIMB facilitates its joint venture
with China Galaxy Securities to increase its reach and reduce costs spend on its goods and
services. Licensing process may also be used in this case because CIMB wants additional licence
from Jupiter Securities for expanding its stock broking business whereas Jupiter Securities urge
licence from China Galaxy Securities to increase its market share value. These strategies will be
profitable for each company mentioned above because it will help the companies to expand their
market value, obtain more competitive advantages, reduce costs invested on their products and
spread their business in another country.
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CASE 2
A. Explain the issues discussed in the given case.
The main issue in article about the ranking of the universities. As per the above scenario
it has been discussed that the university named Tunku Abdul Rahman a private Malaysian
university has its outstanding performance in the times higher education. It has good position as
compare to the universities in the Asia. . The systematic research done on the performance of the
establishment by middle east technical educational institution. According to this utter is on 12th
in Malaysia and 589th in Asia. It also has been defined that UTAR university is not performed
well in the Asian ranking because of teaching, internationalisation or links with the institutional
body. The educational institution can perform well if there are effective techniques of studying
process is carried on. According to the research the whole conduct is very problematic.
The outcomes of such has very utters result on which basis the ranking of the universities are not
so effective. The universities of Malaysia are taking key achievement in the role of development
of the techniques of the education (Gauthier and Gauthier, 2017). The main aim is to provide
qualified education so it leads to overall development and growth of the country. The universities
ranking is not only based on the global performance level but it also relates to the sharing of
knowledge, research and international outlook. The main reason of Malaysia's success is partly
because of the expanding the activities of the university in relation to ensure the success of
organisation. They invest their maximum into the higher education and has various steps in order
to bring the innovation in term of the education system. With the help of this term the enrolment
of student has also arisen by the 70% in the past decade of the country. The best ranking of
Malaysia's has proved that here is a dynamic, diverse and competitive higher eduction region is
becoming. It works key part of development but it must assure that it does not get left behind.
So, it can be said that, each university should take effective efforts in order to promote the good
techniques of education. With the help of this student enrolment can be rise with effective
percent (Baumgartner and Rauter, 2017).
B. Description of competitive advantage of the UTAR's university.
UTAR university is the non-profit organisation. It is the of private university in Malaysia.
It is a famous university in the Malaysia and it has got the highest rank and it has established as
foundation which is known as Utar education foundation. There are nine faculties, three centres,
three institutes and 28th research centres. They are taking various initiatives in order to promote
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the growth and development activities of education system. With over the periods there is rapid
growth of the students in terms of the enrolled system. They are taking various step in relation to
the functioning of the foundation, undergraduate as well as post graduate. Most of the studenty
want to take admission in this university as they provide many kinds of English courses which is
very helpful in relation to career object (Cairns and Sliwa, 2017).
Cost- The cost structure of any university attracts the large number of applicants. It is the key
point in relation to the enrolment status in the universities. Generally, low price of services
offered low quality of education to the applicants which has major impact on their career status.
The main competitive advantage of any university in relation to the quality of service they are
offering the fee structure system of the Utar university is effective as compare to other
university. They are qualified and number of education courses which works as its grater
advantage.
New trends- The university is following new trends of education system. It has major impact on
the large number of the applicants. They are undertaking various research programme on With
the help of these applicants can have good practical knowledge. Using of technology is the key
advantage in term of for the growth and development of the establishment. The universities
should adopt the recent trends of techniques of the education so this way they can attract the
large candidate. With the help of this thy can become source of competitive advantage with other
institutions.
Experienced faculties- The whole education system of the universities is depends on the
faculties they are having they should have good knowledge in their respective subjects.
According to the universities survey it has found that the Utar university has experience and key
personnel faculties. They work as bringing the best talent in order to have fresh talent among the
organisational unit. The fully fledged teacher can contribute maximum to the university (Faff,
2017). The qualified and experienced staff bring lot of innovation to the techniques of education.
The Utar university has most excellent faculties as compare to other due to this has become the
major source of attraction.
C. Define its strength and kind of opportunities he should use in the future.
The main strength of the UTAR university is its experienced and qualified faculties. They
help them to contribute maximum profitability in the institution by providing well defined
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technique of education to the students. They have taking various measure in order to promote the
growth and development of the university key functioning.
The kind of opportunities he should use in the future are as-
1. University should have key personnel staff who can define good techniques of learnings.
2. The funding system need to be improvise with the aim of innovations.
3. They should have effective cost structure so it can have attention of maximum candidates
(França, 2017).
D. Define strategy in relation to the opportunities and strength.
They should use growth strategy in relation to the introduction of the new methods of the
techniques of education instead of existing methods, with the help of this they can have more
chance to bring development and growth opportunity to the functioning of the university
performance. The main objective of the institution is to bring maximum profitability with adding
feature to the techniques to the eduction learning (Cairns and Sliwa 2017). The enrolment status
of the students designs the growth strategy of any university. The Utar university can bring
various modification with the using of growth strategy.
CONCLUSION
From the above assignment, it has been concluded that this report is generally focused on
the two cases. This both case studies is on the different term. The one is addressing about the
amalgamation on owner venture into another. In addition to this the strategy for effective
amalgamation also has defined. In other case, there is comparison of the universities. This
comparison is related to the education system. Moreover, it has defined the ways of improvement
of the university education and funding system on which basis it can become the source of major
attraction.
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REFERENCE
Book & Journal
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Faff, R. W. and et.al., 2017. Book of Pitches: UQAPS 2015 Pitching Research Competition
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sustainable development. Journal of Cleaner Production. 140. pp.155-166.
Gauthier, J. and Gauthier, J., 2017. Sustainable business strategies: typologies and future
directions. Society and Business Review. 12(1). pp.77-93.
Johnson, G., 2017. Exploring strategy: text and cases. Pearson.
Kurucz, E. C. and et.al., 2017. Relational leadership for strategic sustainability: practices and
capabilities to advance the design and assessment of sustainable business models. Journal of
Cleaner Production. 140. pp.189-204.
Lee, K. and Eckhardt, J., 2017. The globalisation strategies of five Asian tobacco companies: An
analytical framework. Global public health. 12(3). pp.269-280.
Mahoney, J. T. and Chi, T., 2001. Business strategies in transition economies. Academy of
Management Review. 26(2). pp.311-313.
Peris-Ortiz, M. and Ferreira, J.J. Eds., 2017. Cooperative and Networking Strategies in Small
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Wieland, J., 2017. Runoff or redesign? Alternative guarantees and new business strategies for
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Online
The Business Strategy, 2017 [Online]. Available through:
<http://www.hmc.org.uk/about-hmc/projects/the-british-education-system/>. [Accessed on 31st
July 2017].
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