Business Strategy Analysis: FGV Holding Bhd Report - Task 1 Evaluation

This report provides a comprehensive analysis of FGV Holding Bhd's business strategies. It begins with an introduction to Rumelt's principles of strategy evaluation and Porter's generic competitive strategies. The report then delves into FGV's strategies in 2019, focusing on their upstream business ...Read More

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

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

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

3
BUSINESS STRATEGY
Technology know how.............................................................................................37
Product life cycle......................................................................................................37
Barriers to entry........................................................................................................37
Growth potential.......................................................................................................38
Profit potential..........................................................................................................38
Financial stability.....................................................................................................38
Cash flow.................................................................................................................38
Liquidity...................................................................................................................38
ROE..........................................................................................................................38
Leverage...................................................................................................................38
Competitive pressure................................................................................................38
Demand variability...................................................................................................38
Recommendation..........................................................................................................39
For Perodua..............................................................................................................39
For Toyota................................................................................................................39
Reference......................................................................................................................42

4
BUSINESS STRATEGY
Task 1
Introduction
In his interview with The Edge, Datuk Haris Fadzilah Hassan who has appointed the
CEO of the FGV holdings Bhd which has been previously known as the Felda Global
Ventures Holdings Bhd. He had a talk related to the FGV financial conditions who have
faced a loss in the financial year 2018 with over RM 1.08 million on the revenue of the RM
13.48 million (Favaretto, 2019). However, this company have seemed to earning a profit of
RM 130.94milliom on revenue of RM 16.92 billion. Over the current situation Haris has
replied just one thing that all he knows that the company should follow these five values,
which is partnership, respect, integrity, dynamism and enthusiasm. All of these words
together forms the word ‘PRIDE’ and if any of them falls of it hit the pride of the company.
Haris have claimed that they have reached this position due to the integrity issues. In his
words if the integrity has been there in the place then people must have taken their integrity
seriously then before doing anything there must be serious diligence involved.
Discussion
It has been noted that much of the losses in the FY2018 has occurred due to the
impairments and the total of provisions which equaled to the RM 1.04billion. Maximum
amount of the impairments has been a result of the acquisition that has happened of the Asian
Plantations Ltd which almost totaled to RM 1million which contributed from the cash reserve
and the rest RM 628 million in terms of the liabilities. Therefore at the end of the financial
year FGV has deposited bank and cash balances amounted to RM 1.22 billion and they also
included their long and short term debt commitments of amount RM 3.3 billion and RM
991.51 respectively. They have also forged their finance cost for the upcoming year which
amounted to RM 187.38 million. Therefore, Haris who have been hired for merely a hundred

5
BUSINESS STRATEGY
days ago have a pile of tasks that are to be done in order to bring the company out of the
current situation.
Haris has shared the key performance indicators which included strengthening of the
share prices which will further lead to the improved market capitalization and also lead to the
reduction of the plantation gearing ratio. Apart from these the other factors that has been takn
care of are the regular ones like reduction of costs, having a watch at the manpower costs, the
disinvestment of the not so core assets and also he has put up the system of anti-bribery
managing system.
Part I
Strategy are never supposed to be adjusted or modified without any kind of strategy
evaluation, either performed via person or as a part of an organizational evaluation technique,
strategy evaluation forms an important step within the method of guiding an agency. For
plenty of executives strategy evaluation is truly an appraisal of how well an enterprise
performs. Has it grown? Is the earnings charge ordinary or higher? If the answers which are
associated with the question correct, it’s argued that the entity’s approach ought to be sound.
The strategies which are used by the business are in accordance with the nature of the
services which is provided by the company and the same should also abide by the regulations
which are applicable in the country. Therefore, strategy evaluation is an attempt to appear
past the apparent information related to the briefing of the timely health of a commercial
enterprise and appraise rather the ones greater essential elements and tendencies that govern
success in the selected area of enterprise.
Principles of Strategy Evaluation
With respect to the Richard Rumelt for the purpose of the strategy evaluation, the
major definition of the strategy is to form a set of principles, objectives and the plans that are

6
BUSINESS STRATEGY
made in accordance with the scope of the business organization and the situation that they are
currently facing and therefore these strategies will lead to the approach that will lead to the
survival and success of the organization. Similarly the FGV organization here has to finalize
the strategies that will be able to take them out of the current situation that they are facing and
that they need to get over their losses and bring the company into the position that will be
able to bear profits again. Therefore it can be said that the strategies are expressed by the
companies that will be benefitted to them to survive in the competitive environment.
One of the essential tenets of technological know-how is that a theory can by no
means be verified to be truly real (Burrus, 2019). A theory might be declared truly false if it
fails to stand up to testing. Further, it's far not possible to demonstrate conclusively that a
specific commercial enterprise strategy is top-rated or maybe to assure that it'll work. One
could, nonetheless, check it for important flaws. Of the numerous exams which might be
justifiably implemented to a enterprise strategy, Most of them will fit inside this kind of large
standards:
Consistency: The strategy must not show inconsistent policies and goal they have to be
specific
· Consonance: The strategy must have an adaptive nature that can bend as per the external
environment which is quite unpredictable
· Benefit: The strategy must specify their competitive advantages, it must consist the
planning of the perseverance of the competitive advantages.
Feasibility: The strategy are not supposed overuse the available resources neither they are
supposed to create any problems that will be difficult to solve. Therefore, it is expected by the
strategies to meet all the requirement present. Strategies failing to meet any of the mentioned

7
BUSINESS STRATEGY
criteria are suspected strongly to fail to perform key functions that are needed for the survival
of the business.
Porter’s Generic Competitive Strategy
A company's relative role within its industry determines whether or not a firm's
profitability is above or under the enterprise average. The essential foundation of above
strategies is to ensure that the business is able to achieve long term sustainability and at the
same time focus on enhancing the profits of the entity. There are fundamental forms of
competitive gain a company can own: low cost or differentiation. Primarily two primary
forms of competitive gain mixed with the scope of activities for which a company seeks to
reap them, lead to three familiar strategies for reaching above average performance in an
industry: cost management, differentiation, and attention. The focus approach has two
variants, value recognition and differentiation attention.
1. Value leadership
In cost management, a company aims to ensure that the cost of production can be
managed in an effective manner so that the profitability can be boasted . The resources of
cost advantage are numerous and rely upon the shape of the enterprise. The business would
able to effectively enhance the sales of the business and achieve economies of sales in their
operational process and thereby also male more profits. A low cost producer ought to bed
located and make the most all resources of fee gain. If a firm can acquire and preserve typical
price leadership, then it'll be an above average performer in its enterprise, supplied it is able
to command prices at or close to the enterprise average.

8
BUSINESS STRATEGY
2. Differentiation
In case of differentiation strategy, a firm pursues to be specific in its industry
alongside some scopes which can be valued appropriately via buyers. It selects one or extra
attributes that many consumers in an industry perceive as vital, and distinctively points itself
to fulfil the ones needs.
3. Focus
The normal strategy of recognition rests on the choice of a narrow aggressive scope
within an industry. The focuser selects a section or organization of segments within the
industry and tailors its approach to serving them to the exclusion of others. The focal point
strategy has two versions
(a) In cost cognizance a company seeks a cost benefit in its goal section, at the same time as
in
(b) Differentiation recognition a company seeks differentiation in its goal phase.
Each variations of the focal point strategy rest on differences among a focuser's goal
section and other segments within the enterprise. The target segments should both have
consumers with unusual wishes or else the manufacturing and transport device that
exceptionally serves the target section have to vary from that of other enterprise segments.
Cost focus exploits variations in cost behavior in a few segments, even as differentiation
recognition exploits the special wishes of consumers in some segments.
Part II
As per the generic porter’s competitive strategy the company basically is tries to have
two strategies set for managing the current chaos created in FGV and to get hold of their
competitive advantages. Therefore the two strategy that are implemented by the FGV

9
BUSINESS STRATEGY
company are to have a strict focus on their upstream business and secondly to reduce the cost
of manufacturing. As below :-
Strategy 1
Haris at present want to focus on their current FGV’s upstream line of business and
actually, 60% of FGV’s crude palm oil (CPO) are sold as CPO while just forty% are
processed into different products, which means the organization may additionally ought to
provide out reductions, which includes whilst the tanks on the mill are full and extra fruits are
coming from of the palm. Palm oil remains for effective only for 3 to 4 months earlier than
the loose fatty acid content begins to increase, so customers realize that they are able to
squeeze organizations such as FGV for better discounts as they might require making a quick
sale.
In comparison, if FGV converts the CPO into cooking oil, its shelf life would boom to
be greater than a year, or probable even more. Therefore if the CPO is converted into other
products then the chances are there that they will not be in hurry to sell off their products and
therefore they can retain their products and also the value and in this way they have to move
towards their downstream business. In this regard they mean to get in the depth of their
oleochemicals and oils along with the joint ventures that they are already in (Chan et al,
2019).
Strategy 2
The second strategy for the FGV Company is to reduce the cost which relates to the
value leadership of the porter generic competitive strategy. Haris is searching to have the
efficiency in cost by effectively utilizing their mills. Since it has been noted that the costs are
comparatively higher than the utilization. Therefore, FGV has made a decision to put down
some of their mills in order to utilize them for the centers of fruit collection and therefore it

10
BUSINESS STRATEGY
will help in reducing the cost. However, the company has a major issue in front of them and
this are their oil extraction rate. Their oil extraction rate is destroyed due to the fact that only
thirty percent of the fresh fruit come from their own plantation for the attraction of oil.
However, they have very little control over the rest fresh fruit bunches which is going to the
mills. It has been noted that crude pam oil cannot be controlled and therefore FGV has tried
to control those things that were in their hands and this was their costs. It has been observed
by the CEO Haris that if they will be able to maintain their cost into the competitive
parameters, then when their company will have a favorable conditions they will be able to
hold a strong position in the market. Therefore they are maintaining their focus to keep the
costs down as far as possible.
As a result it could be seen that the efforts have shown their consequences which lead
to the reduction of cost of FGV. Initially the cost for one metric ton of crude palm oil has
been RM1800 and after the addition to that of the lease land charges that were somewhere
around RM 350 – 400, together it added up to be RM 2200 for one metric ton of crude palm
oil. Therefore, Haris has been able to bring down the cost of the crude palm oil to around RM
1500 for a single metric ton which means that they have already saved around RM 300 per
metric tons. This seems to be a very big achievement for FGV since they almost produce
3million tons of the crude palm oil every year and therefore they will be able to save RM 300
million directly to the savings after deducting all the costs. They have reduced their cost per
metric ton along with that they have also reduced their processing costs, their excessive costs
at the mills. Their manpower were sufficient to be able to harvest the fruits and clear them so
that they can be able to get the good oil extraction rate and therefore in this way they have
made use of the generic porters theory of competitiveness to make a close parity with their
competitors and in this way they surely become as good as the rest of their competitors
(Reynaert, 2019).

11
BUSINESS STRATEGY
Part III
Strategy 1
Strategy 1 for the FGV Company is to maintain focus on their current competitive
advantages and as per the rumelt theory it is stated that each of the strategy should have four
values attach to them. Even if one value is not present within the strategy of the organization,
it shows some serious issues with the strategy which hits the survival of the business. The
values includes the following consistency, consonance, advantages and feasibility. Here if we
see, if senior management does not enunciate a clear regular sense of wherein the
organization stands on the issues, there can be continuation of struggle among sales, layout,
engineering, and manufacturing people. A clear regular strategy, by using comparison,
permits a sales engineer to barter a settlement with at the very least coordination-the trade-
offs are an express part of the company’s posture (O'Byrne, 2019).
Organizational battle and interdepartmental arguing are often symptoms of a
managerial sickness however may imply troubles of strategic inconsistency. Here are a few
indicators that can assist sort out these unique problems:
• If issues in coordination and planning remain regardless of modifications in
employees
• If achievement for one organizational department means, or is interpreted to mean,
failure for another department, the simple objective shape is inconsistent.
• If, no matter how much one tries to delegate authority, operating problems stay
away from the top management and they don’t listen to them which shows inconsistency
A final form of consistency is when the objectives of the organization and the value of
the management group does not meet. This is more problematic area which hits the strategy

12
BUSINESS STRATEGY
evaluation as well. FGV has faces inconsistency with refer to their employees who are not
less in numbers, however, they lack motivation. FGV have seemed to be started from the
federal land development authority which was established for the sake of social issues.
Therefore federal land development authority does not have that zeal to make money which
generally any organization would possess. There are 19000 workers who have seen many
CEO to come and go over the period of time and quite often. Everyone wanted to bring in
transformation, however couldn’t. So that CEO of the FGV company has to mobolise these
employees for the transformation and being an outsider it has been a challenge for him.
To ease the situation and take hold of it so that they can actually focus on their
strategy of focusing in their upstream business, Haris has tried to have a regular meetings
with the employees so that they don’t feel that he is an outsider and might be able to work out
together to get the competitive advantage of the strategy that has already been discussed and
also to reap advantages from it. Even as Haris copes with a lot of problems at FGV, the
plantation business enterprise’s share price hit sixty three percent in mid-December ultimate
12 months, its lowest from the time of its flotation exercising. From then, it has risen,
remaining at RM1.23 closing Friday to give the organization a marketplace capitalisation of
RM 4.49 billion (Alfakih,nSaraih,& Alekam, 2019).
Strategy II
While second strategy for the FGV company is to fix the stock price which is much
lesser than their public offering which was RM 4.45 at the middle of the year 2012. The
important trouble with FGV was that its aging plantations. The prospectus of FGV in 2012
revealed that majority of its plantations have been among 21 and 25 years and sixteen.9% had
been over 25 years, or placed in some other way, nearly fifty three% of FGV’s plantations
have appeared as antique even seven years in the past (Afroz et al, 2019). Though, the company

13
BUSINESS STRATEGY
was able to raise RM4.5 billion from the maarket, promoting shares to traders, plenty of this
funds are already consumed, especially for mergers. In July 2013, FGV obtained Sabah-
primarily based Pontian United Plantations Bhd for a deal which was considered to be
expensive with FGV a lot of money (Vikneswaran & Manual, 2020). Here, further the rumelt
theory which defines consistency to be present in the strategy have noticed serious
inconsistency which can be explained as below.
In October 2014, FGV obtained Asian Plantations for approximately RM1 billion, and
the purchase has been in legal troubles since then. FGV is looking for legal option in
opposition to for the directors who have not been able to discharge their duties in ann
appropriate manner. Other than plantations, FGV additionally invested in Cambridge
Nanosytems Ltd, which turned into alleged to get concerned in the manufacturing of
excessive-grade carbon nanotubes and grapheme from the by-products of CPO (Kawano,
2019).

14
BUSINESS STRATEGY
Task 2
Introduction
The analysis which is presented below would be showing comparison between two
different companies which are operating in the same industry, The companies which are
considered for the assessment are Perusahaan Otomobil Kedua Sdn Bhd (Perodua) and
Toyota. The companies are well known brands in automobile industry. The discussion would
be showing industry analysis which would be involving internal as well as external analysis
for ascertaining which companies has better performance standard. The companies are known
for their competitive engagements and innovations in order to stay ahead in the market. In
order to conduct a proper analysis, EFE matrix would be used for external analysis while IFE
matrix would be used for internal analysis. The analysis would also be referring to the
strategic positioning of businesses in a market For the purpose of ascertaining the strategic
positioning of both the companies SPACE matrix is used and the same would be explained in
details.
Part 1: Industry Analysis
Industry Analysis is conducted for a company for the purpose of identifying the trends
which are present in the market and how the company can use such trends for enhancing the
productive capacity of the business. Industry analysis is conducted so that important
decisions can be taken on the basis of the trends which are identified for the industry. It is to
be noted that a lot of industries around the world relies on such analysis for developing edge
in the competitive world. In the case of automobile industry, the trend which is followed is
similar as the competitive pressure in the industry is immense and therefore proper policies
are required for developing that competitive advantage. The opportunities and threats which

15
BUSINESS STRATEGY
can be identified for the business of Perodua and Toyota are effectively listed below in a table
format.
Opportunities
Factors Perodua Toyota
GLOBAL FACTORS
Market Potential The company of Perodua is
considered to be one of the most
successful companies which is
operating in the region of Malaysia.
The company specialises in the
small cars which are produced and
the same has significant demand in
global markets as well. The senior
officials has the opportunity to
concentrate on such developing
markets for increasing the income
for the entity. Therefore, it can be
said that the management of the
company can establish a favourable
market in countries like India,
China and US. Therefore it can be
said that the market potential for
Perodua is very high for expansion
The business of Toyota is also one
of the automobile giants which
focus on innovative designing and
development for attracting more
customers. The type of product
which is offered by the business is
innovative and therefore the same
attracts a lot of customers. The
operations of Toyota have
undertakings in over 170
countries and therefore it is clear
that the business has scope of
development in new markets as
well. The business can effectively
penetrate any market and create
favourable stances there as well. It
can therefore be said that one of
the opportunity is effective
expansion of the business in
different markets
Presence of
Infrastructure
Most of the emerging countries are
putting in efforts to improve their
overall infrastructure so that MNC
can come and establish their
businesses in their countries. As
the infrastructure develops so does
connectivity through roads and this
provides an opportunity to the
business of Perodua to introduce
big sedan and create a market for
the same. This would increase the
capability of the business to
enhance the revenue.
The business of Toyota also has
different ranges of cars which can
be introduced in markets which
have proper infrastructure. It is to
be noted that the business of
Toyota is highly competitive and
likes to expand its operations on a
regular basis and presence of
proper infrastructure encourages
the management to undertake
investments. Therefore, there is an
opportunity for the business to
expand their revenue flow and
make the business more

16
BUSINESS STRATEGY
profitable.
Changes in Trends The trends of the market are an
important factor which can create
an opportunity or threat for a
business. In the case of Perodua,
the increase in households with
dual income source, enhancement
of urban migration, more women
drivers on the road etc will be
affecting the sales process. This is
therefore expected to increase the
revenue generation process for the
business and add to the reputation
of the company
The business model of Toyota
places the needs of the customers
at the top and therefore the
company takes all the possible
steps to introduce a car which can
satisfy the needs of the people. As
per present scenario, emphasis has
been placed on green vehicle
which focuses hybrid and electric
vehicles which does not consumes
petrol or diesel. This is an
approach which is taken for
protecting the environment and
also meeting the expectations of
the customers.
Increase in fuel prices At a global level, the price for
running cars are on the rise
constantly and therefore it is always
not possible to operate with big
vehicles as they consumes more
petrol. The management of Perodua
has therefore introduced smaller
cars which are fuel efficient and
this strategy has opened up new
markets for such products. The
management of the company can
easily enhance the profits and also
meet competition by making full
use of such an opportunity.
The fuel prices are on the rise and
there is no doubt for that,
however, the management of
Toyota have come up with their
own innovative solutions by
introducing hybrid and electric
vehicles which does not require
fuel. It is to be noted that such
technology is not developed for
most of the companies and this
provides scope to the business to
explore new markets and set up its
businesses there. The
management of the company
needs to follow such a strategy
and ensure that proper profits are
generated.
Macroeconomic
factors
The global market is quite vast and
therefore it presents the businesses
with opportunities to invest in a
market which is highly favourable
from the perspective of
macroeconomic situations. The
business of Perodua can make use
In the case of Toyota, as well
macroeconomic factors are
considered for different countries
and strategic plans are formulated
according to the same. The senior
executives needs to consider the
market of Japan which has lower

17
BUSINESS STRATEGY
of this situation and thereby expand
their profits exponentially.
currency value and therefore
expansion in such a market would
enhance the profits.
LOCAL FACTORS
Access to Funds In the local market, the business of
Perodua is quite popular brand in
Malaysia and therefore, the
business would be having no
difficulty in acquiring funds from
the market. The business therefore
would not be having any shortage
of funds and therefore can
undertake any project for making
more income from the activities.
In the case of Toyota as well, the
business has no difficukty in
acquiring funds from the market.
Considering the positive
reputation of the business, it can
have any amount it wants and the
same helps in making investments
in new projects. Therefore, it can
be said that the business have the
local support for funds which
helps in more investments.
Competitive
Advantage
The business of Perodua has
acquired significant portion of
market share of Malaysia
automobile industry and this has
ensured that the company is able to
generate more revenue and stay at
the top of the industry. The market
is already acquired and this helps in
better operational development of
the business.
The business of Toyota also
enjoys competitive edge in the
local market due to the innovative
cars which is presented by the
business. It also makes easier for
the business to introduce new
products in the market as it is an
existing market. This creates
market advantage for the business
and enhances the revenue which is
made by the business.
Government
Regulations
The regulations which are
applicable for a business in the
local country is always favourable.
The flexibility which is allowed by
the government policies allows the
business of Perodua to expand the
operations effectively and enhance
the turnover of the entity. The
analysis of the entity allows
formulating better strategies for
enhancing the sales of the business.
The management of Toyota
focuses on taste and preferences
of the consumers. The
government also puts in all efforts
for promoting the business of its
leading automobile business for
ensuring that the business
continues to contribute to the
economy in a positive manner.
This helps the management to
generate more profits and ensure
that the legal requirements in the
country are well followed.
Availability of
Resources
One of the main advantages which
are associated with local market is
The management of Toyota also
needs to ensure that the business

18
BUSINESS STRATEGY
that better access is there for
resources which are required for
producing automobiles. This is an
opportunity for the business to
appropriately negotiate the prices of
the raw materials which can
enhance the productivity of the
business. The resources which is
available for the business makes it
possible for the management to
take swift decisions.
is effectively using the resources
which are available to the
business. The senior management
has proper access to funds as well
physical resources which ensures
that the business would be able to
increase the sales of the business.
Numerous small and medium
scale industries have established
themselves for providing support
to Toyota company in the local
market and this definitely would
enhance the sales of the business.
Market Reputation The business of Perodua has the
opportunity to enhance the market
reputation and thereby also enhance
the market reach for the business.
The management of the company
has the opportunity to acquire more
portions of the market shares so
that more revenue can be generated
and the market competition can be
handled in a better manner.
In the case of Toyota, the
management of the company has
the opportunity to annihilate the
competition and create a
oligopoly market in the local
market and increase sales revenue
for the business. Therefore, it can
be said that the market
opportunity for Toyota is
appropriate for expansion strategy
and therefore the same should be
implemented in the operations of
the business.
Threats
Factors Perodua Toyota
GLOBAL FACTORS
Competition The competition in the global
market is one of the major factors
which affect the procedures of the
business. There are numerous
companies in the global market
which provides similar products
and therefore it is said that such
factor can significantly impact the
workings of the entity and prove
The entity of Toyota is required to
consider the competition level in
the industry which can severely
affect the operations of the
business. The competition level in
the market is significantly high
and new products are constantly
brought out in the market which
impacts the sales of the business.

19
BUSINESS STRATEGY
improper for the turnover of the
business.
There is a presence of severe
competition in Asian Car Market.
The main rivals for the business
are Proton, Honda, and Nissan.
One of the most attractive market
for Toyota is the Asian Market.
Rise in Factor costs Another major threat which can be
recognised for the business of
Perodua in global market is
increase in the factor costs for the
business. The factor costs include
increase in cost of production due
to increase in raw material costs
and labour costs. The increase in
factor costs would affect the profit
directly and impact the savings
reserves of the business.
The business of Toyota also needs
to consider the rise in factor costs
as this is an important
consideration. In any new market,
the senior officials needs to
arrange for its resources and if the
costs are high than the entire
expansion plan gets hamper as the
profits of the business are being
directly impacted. The material
costs, which are being incurred by
Toyota and other vehicle
manufacturers over the last few
years has forced the companies to
find better processes to maintain
their operations
International Laws The regulations which are
implemented in foreign markets are
also a threat for the business and
therefore the same should include
in decision making process of a
business. There are a lot of
restrictions which can be placed on
an automobile industry and
therefore proper measures needs to
be taken so that the same does not
affect the income of the entity and
discourages investments in the
business.
In the case of Toyota ass well, the
threat of foreign government
regulations is high. It is to be
considered that the company
operates in 170 countries and
therefore needs to be consistent
with all the regulations which are
incorporated in that particular
country. The environmental laws,
import duty laws, corporate tax
laws needs to adhere as these are
costs for the business and
decreases the profits if such costs
are too high.
Depreciation of
Currency
At a global level, one of the major
threats which can be recognised for
a business is the depreciation of
currency in that country as these
The business of Toyota is also
affected by depreciation of
currency and this is one of the
reasons that the management is

20
BUSINESS STRATEGY
impacts the profits and contributes
to the losses of the business. The
depreciation of the ringgit will
affect the entity since the
management imports in dollar and
yen. In the long run, the company
would be required to maintain their
costs for ensuring efficiency
closely considering which country
would be appropriate for making
investments. Depreciation of the
currency impacts the revenue. The
level of threat from the currency
exchange is quite high for the
business. The management of the
company has recognised that the
same would affect the profitability
if the same is not controlled.
Technological
Advancements
The technological advancements
which are taking place around the
world also poses a threat for the
business and therefore appropriate
measures must be implemented so
that such threats can be avoided
effectively in the market in the
market.
In the case of Toyota,
technological advancement is not
a major threat but the company
recognises that its competitors are
also engaging in innovation and
this can hamper the plan of the
business to capture more markets
as better quality of products are
being offered by competitors.
LOCAL FACTORS
Local Competitors In the local market, more and more
businesses are coming up in the
market which would enhance the
competition level of the market.
The increase in the competition
would affect the operations of the
business and divide the market into
segments. This poses a little threat
for the business but the same needs
to be considered for analysis.
In the case of Toyota, the local
competitors also need to be taken
seriously by the management. The
market has a lot of automobile
industry and therefore the market
is saturated and therefore proper
strategies needs to be formulated
so that competition in the local
market can be dealt with in an
effective manner.
Changes in Taste and
Preferences
The changes in behaviours pattern
of the customers have a severe
impact on the revenue generation
from the local market. The business
specialises in development of small
cars but if there is a change in taste
and preference pattern than the
sales would decline in a significant
manner. The senior officials of the
business need to consider such
aspects and ensure that proper
The business environment of
Toyota is also similar to Perodua
as changes in behaviours pattern
pattern of the consumers can
significantly impact the income
making of the business. The
management off the company
needs to look out or trends and
based on the same formulate
strategies for enhancing the
revenue of the business.

21
BUSINESS STRATEGY
policies are placed to avoid such a
situation.
Government
Regulations
The regulations which are
applicable for a business in the
local country can also be against
the business and this would hamper
the revenue generation process and
also affect the ability of the
business to create competitive
advantage. The local regulations
can be short term or long term but
still the same possess a threat to the
business.
In the case of Toyota, the
government intervention takes
place frequently. These process
definitely impact the activities of
the business and impacts how
income is made for the entity. The
changes in governmental
regulations can be brought about
at any time and therefore proper
strategic policies needs to be
formulated.
Unavailability of
cheap labour
Another factor which severely
impacts the operation of a business
is the unavailability of cheap labour
as the market is already saturated
most of the skilled labour are
already employed and this create a
void in the market and increases the
labour costs significantly. This also
means that the management of the
company needs to cut down the
profit of enhancing the sales of the
business.
The source of labour supply in the
market is also tough but this does
not possess a serious threat to the
business as the company has the
ability to retain top employees.
However, in the event of serious
employee turnover than this can
prove to be a major threat to the
entity and can significantly affect
the profits of the business.
Natural disasters The business of Perodua is not
majorly affected by natural
disasters and therefore the
management does not think too
much on this. However, provisions
are made by the senior management
for such an event for proper
management of the crisis.
In the case of Toyota, the
management of the company
faces a significant challenge from
natural disasters as earthquake is
quite frequent and this severely
impacts the operations of the
business. Toyota regularly is
plagued with disasters as the
home country where the business
primarily operates faces such
disasters .The senior official’s
needs to take strides for ensuring
that proper policies are formulated
in this regard.

22
BUSINESS STRATEGY
Attractiveness
Factors Perodua Toyota
GLOBAL FACTORS
Expansion Plans The business of Perodua has
an ambitious expansion plan
which allows the
management to enhance their
operational reach and thereby
make more profits from the
activities. The business
tremendous scope in the
market
In the case of Toyota, the
business is continuously
expanding and innovating its
products which make it a
popular choice in the market.
Therefore it can be said that
the business is quite
attractive.
Innovation The company of Perodua has
an innovative business
culture as the business is
continuously trying to
introduce new product which
have a future in the market.
One example which can be
given is of the innovative
small cars which have
effective captured the market
as a whole.
In the case of Toyota as
well, the innovative range for
the company is immense
which makes the company
very attractive in nature. The
senior officials of the
business need to make more
changes so that more
customers can be attracted.
LOCAL FACTORS
Increase in Profits There has been an increase in
the profits of the business
which is clearly depicted in
the annual statement of the
business. The hike in the
profits makes the company
more attractive
In the case of Toyota, the
revenue turnover for the
company is quite high and
therefore the same makes an
attractive prospects for the
investor. The company also
has a good brand name and
reputation in the market
which affects the process
positively.
Employment Generation Another major attractiveness
for the company is the
employment which is
generated by the business
year by year due to the
The business of Toyota also
contributes to the social
requirement of employment
generation and ensures that
more and more people are

23
BUSINESS STRATEGY
expansion of the business.
This is the reason that such
brand has been able to make
a strong market presence.
hired on a yearly basis. The
company recognises its
responsibility towards the
society and effectively
contributes towards the same.
EFE Matrix for Perodua
Opportunities
Wei
ght
Rati
ng
1 Market Potential 0.10 4
2 Presence of Infrastructure 0.05 3
3 Changes in Trends 0.10 3
4 Increase in fuel prices 0.07 2
5 Macroeconomic factors 0.03 1
6
7
8
9
1
0
Threats
Wei
ght
Rati
ng
1 Competition 0.20 4
2 Rise in Factor costs 0.08 1
3 International Laws 0.10 1
4 Depreciation of Currency 0.15 2
5 Technological Advancements 0.12 1
6
7
8
9
1
0
Total Weight (Must Equal 1.00) 1.00
Opportunities Weight Rating Weighted Score
1 Market Potential 0.10 4 0.4
2 Presence of Infrastructure 0.05 3 0.15
View EFE Matrix

24
BUSINESS STRATEGY
3 Changes in Trends 0.10 3 0.3
4 Increase in fuel prices 0.07 2 0.14
5 Macroeconomic factors 0.03 1 0.03
6 0 0.00 0 0
7 0 0.00 0 0
8 0 0.00 0 0
9 0 0.00 0 0
1
0
0 0.00 0 0
Threats Weight Rating Weighted Score
1 Competition 0.20 4 0.80
2 Rise in Factor costs 0.08 1 0.08
3 International Laws 0.10 1 0.10
4 Depreciation of Currency 0.15 2 0.30
5 Technological Advancements 0.12 1 0.12
6 0 0.00 0 0.00
7 0 0.00 0 0.00
8 0 0.00 0 0.00
9 0 0.00 0 0.00
1
0
0 0.00 0 0.00
Total EFE Score 1.00 2.42
EFE Matrix for Toyota
Opportunities
Weigh
t
Ratin
g
1 Market Potential 0.10 4
2 Presence of Infrastructure 0.05 4
3 Changes in Trends 0.10 4
4 Increase in fuel prices 0.07 2
5 Macroeconomic factors 0.03 2
6
7
8
9
1
0
Threats
Weigh
t
Ratin
g
1 Competition 0.20 4
2 Rise in Factor costs 0.08 2

25
BUSINESS STRATEGY
3 International Laws 0.10 4
4 Depreciation of Currency 0.15 4
5 Technological Advancements 0.12 2
6
7
8
9
1
0
Opportunities Weight Rating Weighted Score
Market Potential 0.10 4 0.4
Presence of Infrastructure 0.05 4 0.2
Changes in Trends 0.10 4 0.4
Increase in fuel prices 0.07 2 0.14
Macroeconomic factors 0.03 2 0.06
0 0.00 0 0
0 0.00 0 0
0 0.00 0 0
0 0.00 0 0
0 0.00 0 0
Threats Weight Rating Weighted Score
Competition 0.20 4 0.80
Rise in Factor costs 0.08 2 0.16
International Laws 0.10 4 0.40
Depreciation of Currency 0.15 4 0.60
Technological Advancements 0.12 2 0.24
0 0.00 0 0.00
0 0.00 0 0.00
0 0.00 0 0.00
0 0.00 0 0.00
0 0.00 0 0.00
Total EFE Score 1.00 3.40
Part 2: Internal Analysis
Strengths
Factors Perodua Toyota

26
BUSINESS STRATEGY
Product Range The range of products which
is offered by Perodua is large
as it offers both small and
large cars. The company has
various categories covered
such as sedans – Perodua
Bezza, SUV Perodua Alza
The range of products which
is offered by Toyota is also
high. The company offers a
numerous models, satisfying
the needs of all consumer
segments and therefore
meeting their expectations. It
is better than Perodua in the
range of products provided.
Tie Ups The business of Perodua has
numerous tie up agreements
which supports the
operations of the company
and assists in expansion of
the business. The biggest
strengths of Perodua is the
synergy it has with Daihatsu
and Mitsui and these
companies are basically
partners of Perodua
In the case of Toyota, the
company is a giant itself and
has some tie ups agreement
for assistance but the same is
not of the level of Perodua.
The company therefore needs
to cover its gap in any other
manner.
Efficient Workplace The work stations for the
business where cars are
produced are efficient.
Perodua follows the 5 S
system which is quite an
effective system for
maintaining efficiency and
also keeping the employees
happy.
The working environment for
Toyota is more effective and
this has been the secret for
the success of the company
considering future. Toyota
continues to be an industry
front-runner in terms of
revenue generation and
productivity.
Innovation The business focuses on
innovation and has taken up
intellectual property to
protect the investments
made. The company also has
significant investments in
other energy vehicle options
such as hybrid cars, hydrogen
cell powered cars, electric
cars.
One of the most innovative
companies in the automobile
industry is Toyota and it has
been able to enhance the
operational efficiency by
innovations. The company is
considered an innovator
considering the technology
used and the hybrids car
which it has been able to
produce.
Strong Brand Presence The business has a strong The business of Toyota also

27
BUSINESS STRATEGY
brand presence in the market
which helps in maintaining
the demand for the business.
has a strong brand reputation
and it is one of the reasons
that the company has been
able to achieve success in the
operations.
Weakness
Factors Perodua Toyota
Ineffective reach The reach of the business is
not effective and this causes
problems for the entity in the
long run
In a similar manner, the
presence of Toyota is not felt
in emerging markets and this
is a major weakness for the
company.
Quality Issues The company has faced some
negative publicity in the
media for the colossal failure
of their vehicles Myvi and
Alza. In addition to this,
there are also quality issues
associated with the products
Toyota has undertaken
numerous recalls of vehicles
in the last few years, which
has hurt its financial
performance and tarnished its
brand. This is due to the
ineffective testing process for
the vehicles
Excessive Dependences on
Tie Ups
The business of Perodua
depends excessively on the
Japanese counterparts which
demonstrates weakness on
the part of the company and
impacts the operations of the
business.
In the case of Toyota, the
impacts of tie ups are not
much on the business but the
management still needs to
consider such aspect in
taking decisions.
Retention of Skilled
Employees
The business has not been
able to retain any skilled
employees in the business
which is a major concern and
the employee turnover is
quite high.
The business has not been
able to retain any skilled
employees in the business
which is a major concern but
changes are being made in
the operational process of the
business to initiate
improvements
High Costs of Operations The business has a high cost
of operations which impacts
The business of Toyota also
has a high cost of operations.

28
BUSINESS STRATEGY
the profitability of the
business in a serious manner.
This impacts the profits and
the numerous product recalls
also impacts the operations
of the business.
Financial Performance of Toyota and Perodua
The analysis of financial performance for the business of Toyota shows that the sales
of the business have increased from previous year analysis which resembles that the company
is performing well. Further the profits of the business are also shown to have increased which
is a positive sign for the business. It is to be noted that the costs of operations has also
increased in similar proportions which is a matter of concern for the business.
In the case of Perodua, the financial performance for the company shows increase in
profits which shows that the company is effectively managing the sales of the business and
putting in efforts for enhancing the profitability of the business in future. The analysis further
shows that the management needs to work on maintaining the profits so that expansion plan
can be initiated.
IFE Matrix for Perodua
Strengths
Weigh
t
Ratin
g
1 Product Range 0.20 4
2 Tie Ups 0.20 4
3 Efficient Workplace 0.05 3
4 Innovation 0.05 4
5 Strong Brand Presence 0.05 4
6
7
8
9
1
0
Weaknesses Weigh Ratin

29
BUSINESS STRATEGY
t g
1 Ineffective reach 0.10 1
2 Quality Issues 0.15 1
3 Excessive Dependences on Tie Ups 0.05 2
4 Retention of Skilled Employees 0.05 2
5 High Costs of Operations 0.10 1
6
7
Strengths Weight Rating Weighted Score
Product Range 0.20 4 0.80
Tie Ups 0.20 4 0.80
Efficient Workplace 0.05 3 0.15
Innovation 0.05 4 0.20
Strong Brand Presence 0.05 4 0.20
0 0.00 0 0.00
0 0.00 0 0.00
0 0.00 0 0.00
0 0.00 0 0.00
0 0.00 0 0.00
Weaknesses Weight Rating Weighted Score
Ineffective reach 0.10 1 0.10
Quality Issues 0.15 1 0.15
Excessive Dependences on Tie Ups 0.05 2 0.10
Retention of Skilled Employees 0.05 2 0.10
High Costs of Operations 0.10 1 0.10
0 0.00 0 0.00
0 0.00 0 0.00
0 0.00 0 0.00
0 0.00 0 0.00
0 0.00 0 0.00
Total IFE Score 1.00 2.70
IFE Matrix for Toyota
Strengths
Weigh
t
Ratin
g
Product Range 0.20 4
Tie Ups 0.20 3

30
BUSINESS STRATEGY
Efficient Workplace 0.05 4
Innovation 0.05 4
Strong Brand Presence 0.05 4
Weaknesses
Weigh
t
Ratin
g
Ineffective reach 0.10 1
Quality Issues 0.15 1
Excessive Dependences on Tie Ups 0.05 2
Retention of Skilled Employees 0.05 2
High Costs of Operations 0.10 1
Strengths Weight Rating Weighted
Score
1 Product Range 0.20 4 0.80
2 Tie Ups 0.20 3 0.60
3 Efficient Workplace 0.05 4 0.20
4 Innovation 0.05 4 0.20
5 Strong Brand Presence 0.05 4 0.20
6 0 0.00 0 0.00
7 0 0.00 0 0.00
8 0 0.00 0 0.00
9 0 0.00 0 0.00
1
0
0 0.00 0 0.00
Weaknesses Weight Rating Weighted
Score
1 Ineffective reach 0.10 1 0.10
2 Quality Issues 0.15 1 0.15
3 Excessive Dependences on Tie Ups 0.05 2 0.10
4 Retention of Skilled Employees 0.05 2 0.10
5 High Costs of Operations 0.10 1 0.10
6 0 0.00 0 0.00

31
BUSINESS STRATEGY
7 0 0.00 0 0.00
8 0 0.00 0 0.00
9 0 0.00 0 0.00
1
0
0 0.00 0 0.00
Total IFE Score 1.00 2.55
Competitive Profit Matrix
Enter 12 Factors Below Weigh
t
Perodu
a
Toyot
a
Competito
r
Enter Ratings Below
Advertising 0.30 3 4
Market Penetration 0.10 2 3
Customer Service 0.10 4 4
Data Management 0.05 2 1
R&D 0.15 4 4
Employee Dedication 0.05 4 4
Financial Profit 0.05 2 3
Customer Loyalty 0.05 2 2
Market Share 0.06 3 4
Product Quality 0.05 3 3
Top Management 0.02 4 4
Price Competitiveness 0.02 2 2
Perodua Toyota Competitor
Critical Success Factors Weight Rating Score Rating Score Rating Score
Advertising 0.30 3 0.90 4 1.20 0 0.00
Market Penetration 0.10 2 0.20 3 0.30 0 0.00
Customer Service 0.10 4 0.40 4 0.40 0 0.00
Data Management 0.05 2 0.10 1 0.05 0 0.00
R&D 0.15 4 0.60 4 0.60 0 0.00
Employee Dedication 0.05 4 0.20 4 0.20 0 0.00
Financial Profit 0.05 2 0.10 3 0.15 0 0.00
Customer Loyalty 0.05 2 0.10 2 0.10 0 0.00
Market Share 0.06 3 0.18 4 0.24 0 0.00
Product Quality 0.05 3 0.15 3 0.15 0 0.00
Top Management 0.02 4 0.08 4 0.08 0 0.00
Price Competitiveness 0.02 2 0.04 2 0.04 0 0.00
Totals 1.00 3.05 3.51 0.00

32
BUSINESS STRATEGY
Current Strategy of the Organizations
The analysis of the business models for both the companies reveal that the current
strategy of both the companies is to appropriately expand the range if activities of the
business globally and thereby ensure that the operations of the business can be achieved in a
systematic manner. Both Perodua and Toyota are trying to make the products better which
are offered by the entity and ensure that the business is able to create more demand in the
market and enhance the sales of the business more. The strategy which is adopted by the
business is appropriate and therefore appropriate efforts needs to be taken in this regard to
further expand the operations of the business.
Part III
Strategic position Action Evaluation Matrix For Perodua
The Strategic role and motion assessment (space) evaluation framework is extremely
beneficial however now not widely known tool to expand and evaluate acompany’s
strategy.it is able to be used. At the starting of the practice it predicts the general key subject
matters. At the end of the procedure, it is able to additionally be used to assess individual
strategic alternatives generated via using a tool like the Ans off growth Matrix (Castro,
2020).
Space matrix is a systematic appraisal of four key problems that stabilize the external
and inner elements that need to decide the overall subject matter of the strategy which are the
External industry, the environmental stability, the internal competitive environment and the
financial strength of the company. By combining scores on every size on one space matrix
diagram, the framework guides the strategic time table. The scale are blended in a manner
that appears ordinary at the beginning however makes sense at the end when the units of
factors are assessed as strengths (financial strength and enterprise energy) and rated nice

33
BUSINESS STRATEGY
while the alternative (competitive gain and environmental balance) are assessed as potential
weaknesses and rated negatively (Zavosh, 2019). The common sense is that economic power
is required to compensate for environmental instability. The greater difficult the external
environment is predicted to be, the greater critical it is to have strong finances. Enterprise
splendor and competitive gain are seen as doubtlessly opportunity assets of advanced
earnings and certainly these are handled as such. If each favors the commercial enterprise,
then outcomes are supposed to be superb, if both are unfavorable, then the enterprise is in
complete trouble (Chan, & Balaraman, 2019).
The space analysis Matrix Diagram is a completely strong function among the space
matrix. This diagram shows that the company is in a completely beneficial position and is
capable of taking an aggressive growth strategy. Working in an appealing and stable
enterprise and has important competitive benefits subsidized up by great monetary strength
(Gardner, Snyder, & Zugay, 2019).
Perusahaan Otomobil Kedua Sendirian Berhad which is also known as Perodua
Automobiles is the second largest maker of automobiles in Malaysia. They have launched
themselves in the year 1994 and since then they are one of the top car selling brand of
Malaysia. The company has the vision of investing 700 million USD over the expansion plan
in order to set up manufacturing facilities in the coming decade. As the space matrix for the
perodua is to be prepared the following criteria is to be considered. The internal and external
factors along with that the financial and environmental factors are considered and then the
ratings has been given accordingly. Below are the table that shows the space matrix table for
Perodua as per the annual report of Perodua for the year 2018:-

34
BUSINESS STRATEGY
This shows that the company is in strong position and their reviews are seemed to be even
stronger as follows:-
Product quality- which is +6 means the highest in the scale, they are their own brand and
the quality that they provide makes them the leader in their business domain.
Market share- Perodua has recorded 40% of market share as compared to their market share
in the year 2016 which was 35.7% of the total market share.
Brand and image- It is the third largest automobiles manufacturer and therefore they are
very famous for their quality. However they are not very much world famous and they can
work over it.
Product life cycle- they have an amazing rating in their product life cycle and therefore they
have a quick product life cycle
Barriers to entry- Again they are measuring highest in the scale as they have almost no
competition in their industry and they know their game really well
Growth potential- they have already went into the joint venture and they are also planning to
relocate their resources to the expansion of the businesses and therefore they have immense
growth potential.

35
BUSINESS STRATEGY
Access to financing – there are almost 2000 sales advisers that works for the perodua and
therefore they help in initiating the loans for the cars quickly (Shi et al, 2019).
ROA- Return on assets for the company has seen a rise to 16.5 % and therefore it has been
scored such high percentage in the SPACE matrix
Leverage- They claimed to have a very strong leverage system in place. They are very much
positive that they can leverage on their partnership with Japans.
Liquidity- their balance sheet and liquidity position seemed to be very healthy
Cash flow- Perodua has achieved a profit of almost RM 92.02 which is almost 33.9%
increase from the last year profit. They are in the position will sustainable earnings and flow
of cash (Bhattiprolu et al, 2019).
Inflation- Perodua has announced that they will be providing a new nitrogen tyres
Technology- They have the best technology in place and therefore their cars are supposed to
be the best low cost automobiles in their industry.
Strategic position action evaluation matrix for Toyota

36
BUSINESS STRATEGY
Review for the space matrix for Toyota are as follows:-
Market share- In 2018 the market shares of Toyota has seemed to be 12% than the general
motors 10.5% market share.
Product quality- the quality of the product is standard and also durable. With the
implementation of TQC activities, Toyota’s product quality has improved drastically
(Navarro, 2019).
Technology know how- The industry is highly competitive and therefore they need a
technology enabled competitiveness.
Product life cycle- the product life cycle of Toyota is said to be the market pioneering stage
then it comes the growth of the market, afterwards there is a maturity stage and then the
appears the decline of the market (Matsuo et al ,2019).
Barriers to entry- Though they are the market leaders and worldwide famous, however they
do have their competitors around like general motors who are not too far apart.

37
BUSINESS STRATEGY
Growth potential- they have an immense growth potential with their new set of cars that has
hit the market.
Profit potential- It has been noted that the company has been able to reap profit 8.8 percent
upto 743 billion and their net profit has jumped to almost 4% to 7.70 trillion till now.
Financial stability- they are pledged to make smart and efficient use of the management
policies and therefore they are not only interested in the development of their cars they also
striving to make their asset efficiency and they also strive to manage their fixed costs.
Cash flow- Net cash flow of the Toyota company seemed to be increase by 3414.2 billion in
the year 2018. However cash flow has decreased from the operating activities (Rigon, 2019).
Liquidity- Their aim is to establish the strong foundation which will enable the support to the
Toyota’s sustainable growth by continuing to provide efficiency to the medium while equally
maintaining the stability.
ROE- Toyota has lower return on equity and return on assets as compared to its peers, which
shows that the company is not using its money efficiently and therefore being unable to
provide higher returns to its shareholders.
Leverage- Toyota’s financial leverage in the last quarter has been multiplies by three times.
However their financial leverage hits it maximum five year low to almost 2,8 times.
Competitive pressure- though they have a lot of competition still they have a loyal customer
base and there is slight and very moderate threat that they can get acquired by the competitor.
Demand variability- It has been noted that in the upcoming five years the emergence of the
economies will continue to grow thereby the demand for the motor vehicles will also
increase. Therefore, industry revenue is expected to grow with an annual 2.5%, which is
estimated to be over $3trillion till the year 2025.

38
BUSINESS STRATEGY
Recommendation
For Perodua
1. Perodua should work on their brand image around the globe since they are not so
famous worldwide and due to this they have a comparatively lesser market share as
compare to Toyota and other companies.
2. They have to lesser their dependence over their international partners which will
further help them to reduce the cost and also competitiveness
3. Their low cost automobile motive is something which will take to places and have
secured a very special position in the market place
4. Perodua requires active industrial policies when they will be facing a downward phase
in the business cycle. These policies must include the value chain analysis,
stimulation of the demand
5. Perodua needed to made their management base more stronger so that they can have a
strong market outlook and take up the study of possibility in the selection of dealers
and the distributors and they also needed to enhance their low cost vehicles quality
and to increase their exports.
For Toyota
1) Toyota should keep on to undertaking concerted efforts to reinforce its control platform
and lift company cost.
2) As on the spot obligations, Toyota ought to sell enterprise and cost structure reforms to
understand a strong control platform in order that it could react immediately to the converting
marketplace situations. Especially, Toyota ought to keep a streamlined shape via the discount

39
BUSINESS STRATEGY
of constant prices and decorate its business in established markets in evolved international
locations.
3) Toyota need to boost up its enterprise enlargement into rapidly developing and rising
countries completely and meticulously tracking market conditions in respective areas and
introducing products applicable to the traits and wishes of every market. Toyota must
additionally attempt to set up production and deliver systems to comprehend most suitable
product pricing and shipping, and to enlarge the value chain to offer a wide range of
consumer offerings in every market (Abbas et al, 2019)
4) Toyota need to remember making Lexus a priority within the Chinese marketplace, this
will permit it to end up competitive with other automobile producers in the luxurious section,
via growing manufacturing facilities in Asia, this can enable Toyota to have less expensive
delivery channels and turn out to be in the direction of the emerging marketplace consumer.
Toyota have to additionally cut out layers of center management in order that engineers get
more authority over what particular consumer needs are replied in the design and
improvement of a brand new car.
5) Toyota have to pursue the improvement of environmentally awareness, energy-saving
products whilst incorporating features and offerings demanded by the customers clients
(value chain) and handing over them to the worldwide marketplace. appearing on those
measures, Toyota have to aim for growth in three enterprise devices, namely, “solutions”
within the regions of substances dealing with system, logistics and fabric equipment; “key
components” in the fields of car air-conditioning compressors and vehicle electronics; and
“mobility” within the domains of motors and engines.

40
BUSINESS STRATEGY
6) To assist consolidated control on a worldwide scale, Toyota have to intensify the energy of
the place of work and diversity and among the human resources in the attempt to nurture
worldwide human assets.

41
BUSINESS STRATEGY
Reference
Abbas, A. F., Sheikh, U. U., & Mohd, M. N. H. (2020). Recognition of vehicle make and
model in low light conditions. Bulletin of Electrical Engineering and
Informatics, 9(2), 550-557.
Afroz, R., Rahman, A., Muhibbullah, M., & Morshed, N. (2019). Malaysian automobile
industry and green supply chain management. International Journal of Recent
Technology and Engineering, 7(6), 158-162.
Alfakih, K. A. A., Saraih, U. N., & Alekam, J. M. (2019). The Determinants of Brand
Loyalty in Malaysian Automobile Industry. Social Science and Humanities Journal,
1592-1598.
Bhattiprolu, V., Ghosh, M., Guruswami, V., Lee, E., & Tulsiani, M. (2019). Approximability
of p→ q matrix norms: generalized krivine rounding and hypercontractive hardness.
In Proceedings of the Thirtieth Annual ACM-SIAM Symposium on Discrete
Algorithms (pp. 1358-1368). Society for Industrial and Applied Mathematics.
Burrus, C. S. (2019). Vector Space and Matrix Methods in Signal and System Theory. arXiv
preprint arXiv:1909.05128.
Castro, C. F. D. (2020). Análise do papel dos vendedores na satisfação de cliente por meio
do NPS (Net Promoter Score): evidências do varejo de moda omnichannel
brasileiro (Doctoral dissertation).
Chan, Y. F., & Balaraman, S. (2019). Strategies to Close the Knowledge Gap of New
Engineers in the Automotive Industry in Malaysia. Sciences, 9(13), 270-283.

42
BUSINESS STRATEGY
Chan, Y. H., Cheah, K. W., How, B. S., Loy, A. C. M., Shahbaz, M., Singh, H. K. G., ... &
Kansha, Y. (2019). An overview of biomass thermochemical conversion technologies
in Malaysia. Science of The Total Environment, 680, 105-123.
Cover Story: Will ‘outsider’ Haris succeed in reviving FGV?. (2019). Retrieved 27 March
2020, from https://www.theedgemarkets.com/article/cover-story-will-outsider-haris-
succeed-reviving-fgv
Favaretto, J. E. R. (2019). Stage level measurement of information systems and Analytics
diffusion in organizations (Doctoral dissertation).
Gardner, R., Snyder, W. M., & Zugay, A. (2019). Amplifying youth voice and cultivating
leadership through participatory action research. education policy analysis
archives, 27, 54.
Gasperini, F. H., Carvalho, F. A., & Pinheiro, L. D. R. A. (2019). Inovação aberta no setor
público: o caso do Programa Residência Maker no município de São Paulo (Doctoral
dissertation).
Hermes, M. R., & Gagliardi, L. (2019). Multiconfigurational self-consistent field theory with
density matrix embedding: The localized active space self-consistent field
method. Journal of chemical theory and computation, 15(2), 972-986.
Kawano, M. (2019). Changing resource-based manufacturing industry: The case of the rubber
industry in Malaysia and Thailand. In Emerging States at Crossroads (pp. 145-162).
Springer, Singapore.
Kehl, W., & SANCHEZ, G. R. (2019). U.S. Patent Application No. 15/974,069.
Ken, D. W. T., & Zhang, M. (2019). The Rise of China’s Economy and Its Impact on the
Ethnic Chinese Business Community: The Case of Cherry Automobile in Malaysia.

43
BUSINESS STRATEGY
In The Sociology of Chinese Capitalism in Southeast Asia (pp. 149-167). Palgrave
Macmillan, Singapore.
Lacruz, A. J., Moura, R. L. D., & Rosa, A. R. (2019). Organizing in the Shadow of Donors:
How Donations Market Regulates the Governance Practices of Sponsored Projects in
Non-Governmental Organizations. BAR-Brazilian Administration Review, 16(3).
Lee, K. H., Kanzawa, Y., Derry, M. O., & James, M. R. (2019). U.S. Patent No. 10,466,361.
Washington, DC: U.S. Patent and Trademark Office.
Leong, P. P. Y. (2019). Election Campaigns and New Media in Malaysia. In Malaysian
Politics in the New Media Age (pp. 79-146). Springer, Singapore.
Lipnowski, E., & Ramos, J. (2019). Repeated delegation. Available at SSRN 2552926.
Machado, C. V., & e Silva, G. A. (2019). Political struggles for a universal health system in
Brazil: successes and limits in the reduction of inequalities. Globalization and
health, 15(1), 1-12.
Matsuo, E., Kinoshita, T., Toyota, M., & Hiromasu, Y. (2020). U.S. Patent No. 10,551,704.
Washington, DC: U.S. Patent and Trademark Office.
Mendes-Da-Silva, W. (2019). Board of Directors and Corporate Networks. In Individual
Behaviors and Technologies for Financial Innovations (pp. 311-336). Springer,
Cham.
Migueles, C., Zanini, M. T., & Lafraia, J. R. (2019). Safety and Risk Management at Work:
The Search for Culturally and Institutionally Embedded Solutions. Available at SSRN
3492673.
Mills, A. J., & Novicevic, M. M. (2019). Management and Organizational History: A
Research Overview. Routledge.

44
BUSINESS STRATEGY
Navarro, R. (2019). THE INTERNATIONAL JOURNAL OF BUSINESS &
MANAGEMENT.
O'Byrne, S. (2019). Why EVA Bonus Plans Failed—and How to Revive Them. Journal of
Applied Corporate Finance, 31(3), 131-138.
Osada, Y., Kuriyama, T., Asada, M., Yokomizo, H., & Miyashita, T. (2019). Estimating
range expansion of wildlife in heterogeneous landscapes: A spatially explicit state‐
space matrix model coupled with an improved numerical integration
technique. Ecology and evolution, 9(1), 318-327.
Pan, J. S., Lee, C. Y., Sghaier, A., Zeghid, M., & Xie, J. (2019). Novel systolization of
subquadratic space complexity multipliers based on toeplitz matrix–vector product
approach. IEEE Transactions on Very Large Scale Integration (VLSI) Systems, 27(7),
1614-1622.
Pereira, C. K. D. B. (2020). O impacto do viés inconsciente na carreira das mulheres: caso
de ensino “Construtora Meirelles & Silva” (Doctoral dissertation).
Reynaert, M. (2019). Abatement strategies and the cost of environmental regulation:
Emission standards on the European car market.
Rigon, F. (2019). Customer habits in a B2B context: impacts on cash flow level and
volatility.
Rodgers, J. R., Huang, M., & Kolmanovsky, I. (2019). U.S. Patent Application No.
16/214,266.
Shi, B., Sun, M., Kao, C. C., Rozgic, V., Matsoukas, S., & Wang, C. (2019). Compression of
acoustic event detection models with low-rank matrix factorization and quantization
training. arXiv preprint arXiv:1905.00855.

45
BUSINESS STRATEGY
Silva, M. P. (2019). Impacto das novas tecnologias de informação e análise de dados nas
empresas e nos profissionais de controladoria e finanças: possíveis mudanças de
comportamento dos profissionais de controladoria e finanças devido às novas
tecnologias de informação (Doctoral dissertation).
Song, Y., Chen, Y., Ma, Y., & Ma, H. (2020). Multi-Reference Epstein-Nesbet Perturbation
Theory with Density Matrix Renormalization Group Reference
Wavefunction. Electronic Structure.
Vikneswaran, S., & Manual, O. (2020). Determinants of Share Price: A Case of Automobile
Industry in Malaysia. TEST Engineering & Management, 82, 1028-1038.
Woodman, T. C. (2019). Embargoed exchanges: A critical analysis of emerging market
dynamics in US and Cuban academic exchange. education policy analysis
archives, 27, 98.
Zavosh, G. (2019). Three essays on how firms' strategies affect the performance of subsidiary
businesses (Doctoral dissertation).