Strategic Management: Analysis of Mah Sing Group Berhad Malaysia

This report provides a comprehensive analysis of the strategic management practices of Mah Sing Group Berhad, a Malaysian company involved in real estate and investment holding. It begins with an overview of the company's background, mission, goals, and objectives, followed by an in-depth external analysis using PESTLE and Porter's Five Forces frameworks. The report also includes an internal capability analysis, a 3-year KPI analysis, and a benchmark comparison with a competitor. Strategic challenges facing the company, such as competition and global economic issues, are identified. The analysis culminates in proposed strategies to address these challenges, supported by a SWOT analysis and Ansoff matrix. The report concludes with a critical evaluation of the proposed strategies, aiming to provide insights for the company's future growth and competitive advantage. Desklib provides access to this and other solved assignments for students.

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Strategic management of Mah Sing Group Berhad
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1Strategic management of Mah Sing Group Berhad
Executive summary
The report revealing the insight into the idea of strategic management examines how the Mah
Sing Group Berhad methodologies the business activity towards guaranteeing further
development of the organization. The report consequently starts with talking about a concise
outline of the organization alongside its objectives, destinations and mission and afterward
continues to encourage discourse on internal and also the external investigation which
incorporates PESTLE examination. The Porter's five powers examination will likewise be given
close by of PESTLE. Notwithstanding that, the report explains on a few different examinations,
for example, ability investigation and 3-year KPI examination and additionally benchmark with a
nearby contender. Towards the conclusion, the examination proposes a few systems keeping in
mind the end goal to address the issues and difficulties. At last, the paper sums up the entire
discussion.

2Strategic management of Mah Sing Group Berhad
Table of Contents
Introduction......................................................................................................................................5
Background of the company............................................................................................................5
Strategic challenges.........................................................................................................................6
Mission goals and objective.............................................................................................................7
Environment analysis.......................................................................................................................8
PESTLE analysis.........................................................................................................................8
Porter’s five forces.....................................................................................................................10
Capability analysis.....................................................................................................................12
Analysis of 3-year KPIs and benchmark with a close competitor.................................................15
Proposed new strategies to address issues identified.....................................................................16
SWOT analysis..........................................................................................................................17
Ansoff matrix.............................................................................................................................17
Critical evaluation of the proposed strategy..................................................................................19
References......................................................................................................................................21

3Strategic management of Mah Sing Group Berhad
Introduction
The concept of strategic management has become an integral part for business
management these days. The concept involves activities of identifying as well as describing the
strategies which are taken by the mangers in order ensure better performance along with a
competitive advantage in view of the growth of organization. In terms of strategic management,
managers take several decisions after considering the impact of the external as well as internal
factors on the business (Hill, Jone and Schilling 2014). It has been considered that strategic
management is one of the most complicated tasks that mangers deal with. The whole process of
strategic management includes setting plans and then reviewing the strategies so that it can be
assured that the strategies are full proved in order to fetch success. Thus the report shedding the
light on the concept of strategic management discusses how the Mah Sing Group Berhad
strategies the business operation towards assuring further growth of the company (Yan 2015).
The report therefore begins with discussing a brief overview of the company along with its goals,
objectives and mission and then proceeds to further discussion on internal as well as external
analysis which includes PESTLE analysis. The Porter’s five forces analysis will also be given
alongside of PESTLE. In addition to that, the report elaborates on several other analysis such as
capability analysis and 3-year KPI analysis as well as benchmark with a close competitor.
Towards the conclusion, the study proposes several strategies in order to address the issues and
challenges. Finally, the paper concludes by summing up the whole discussion.
Background of the company
Based in Malaysia the company Mah Sing Group Berhad deals indifferent areas such as
investment holding, real estate, plastics and so on.Started its journey in the year of 1991, the
company invests as well as develops industrial properties along with commercial and residential

4Strategic management of Mah Sing Group Berhad
properties. In addition to that the company manufactures, assembles and trades a wide range of
products that aremade out of plastic. Property support services are also given by the company
(Berhad 2018). At the same time, the company also operates investment holding beside
management provision and so on. Apart from these areas, the company also does trading
business of building materials. The subsidiaries of the company are Capitol Revenue
Development SdnBhd and Convention City Development SdnBhd which operates in above
mentioned areas as well as in hospitality management services and so on. The strong employee
base consisting of 899 efficient individuals is considered as one of the strengths of the company.
The annual report of the company reports RM 2916 million revenue in 2017 while net profit was
reported RM 362 million along with 12.54 basic earnings per share.
Strategic challenges
The company is presently facing a few strategic challenges. The continuous competition
within the real estate industry demands Mah Sing Group Berhad to be proactive in terms taking
strategies to remain ahead of the competition. S P Setia, the major competitor of the company
has achieved record sales margin in the financial year of 2016-2017 (Thestar.com.my 2018) as
compared to Mah Sing Group Berhad. Thus the continuous rivalry from similar other companies
demands the company’s focus on strategic management than any other aspects in terms of
business management.
In addition to that the growing global political as well as trade issues are the other major
challenges that the company faces. The present political issues adversely impact both on the
business operation of the company as well as on the purchase behavior of the customers (Ey.com
2018). Meanwhile the current economical climate all over the globe is another challenge that the

5Strategic management of Mah Sing Group Berhad
company face in terms of its business process. Due to all the above mentioned challenges, the
company experienced a revenue decline of 6%; RM773.9 million to RM727.14 million
(Thesundaily.my 2018).
2016 2017
700
710
720
730
740
750
760
770
780
Series 1
Series 1
Source: (Created by author; Thesundaily.my 2018)
Mission goals and objective
In accordance with Darbi, (2013), a mission statement determines the purpose of the
company. Thus the vision statement of the company states, “Inventing future living
that enhances quality of life” (Berhad 2018). From this, it can be interpreted that the Mah Sing
Group Berhad aims to enhance the quality of living of its customers. However the company
strongly believes that excellence can only be achieved if the core principles on which the base of
the company is built upon are maintained and fulfilled. Over the years, Mah Sing Group eyes on
innovations while serving the best service to the customers. In respect to that it needs to be
mentioned that it has been largely considered that the vision and mission statements are of
immense importance in terms of strategic management (Kopaneva and Sias 2015). Mah Sing

6Strategic management of Mah Sing Group Berhad
Group Berhad’s vision statement thus implies that the company exclusively focuses on
delivering quality products as well as service to the customers. Additionally, the statement also
signifies the emphasis on principles which makes the company distinguishable in the industry.
On the other hand, the mission statement of the company, Mah Sing Group Berhad
focuses on taking sustainable approaches towards the environment as well as employees and also
the community. The company aims to provide the best solution to the customers in accordance
with the future trends of the industry. “We want to recreate, innovate and push boundaries,”
implies that the company’s focal point is on the innovation while breaking the stereotype (Mah
Sing 2018). The mission statement of the company also emphasizes on the efficiency of the
workforce through rigorous training and learning programs in view of the further growth of the
company. Above all, the company aims to deliver quality service to its customers.
Environment analysis
PESTLE analysis
Political factors
The political condition of Malaysia is quite stable, even in accordance with Political and
Economic Risk Consultancy (PERC), in the entire continent the risk of political factors of
Malaysia is the lowest. Thus it can be said that the geographical location of the company from
the perspective of political condition is in favor of the real estate industry(Cbre.com.my 2018).
In addition, the simplified structure of taxation and flexible foreign trade policies between
Malaysia and other countries made the country suitable for Mah Sing Group Berhad. Thus the
political condition of Malaysia is strength for the company.

7Strategic management of Mah Sing Group Berhad
Economic factors
Over the past two decades, it has been seen that the economy of Malaysia has developed
in a rapid manner which reports which reported Malaysia’s GDP value at RM1.353 trillion in
2017(Cbre.com.my 2018). Meanwhile, the low employment rate of Malaysia, low interest rates
on export and import made up a favorable environment for the company to grow further. The
data report of Ministry of Trade and Industry, Malaysia states the real estate industry states
grows at 5-6% every year making up it as the strength for the company (Ey.com 2018).
Social factors
The social trend influences the business process of Mah Sing Group Berhad to a
considerable extent since the business depends on the purchase behavior of the company.
Forexample, the cost of living in Malaysia has increased over few years for which the demand of
affordable houses is in rise (Research, Services and Trends 2018). Several social factors
including population, lifestyle, and consumerism and so on impact real estate industry. For
example, Customers these days to cope with up globalization, prefer modern infrastructure while
buying a property. Thus giant companies in this industry focus on the aspect of modernization
while developing buildings.
Technological factors
The technological advancement has a major influence on Mah Sing Group Berhad. In the
era modern technologies, the company has made the implementation of internet in its business
process. Such as, internet based web portal for placing orders and buying of the property (Jaafar
Nuruddin and Bakar 2018). Addressing the market requirement, the company has been using the
modern technologies in order to make the buildings earthquake resistant. In addition to that, by

8Strategic management of Mah Sing Group Berhad
implementing ICT innovations, the real estate companies use mobile based application service in
order to reach out to maximum customer with an ease. At the same time, special attention is
given on the Research and Development department so that latest technological innovations can
be implemented.
Legal factors
The impact of trade laws and regulations play an important role for the business process
of the company. The government of the Malaysia has introduced Intellectual Property Rights in
order to reduce the risk of unfair practices within the real estate industry (Thepropertytimes.my
2018). Besides, Employment Act 1995 of Malaysia secures the rights of labors and employees
engaged in real estate industry.Thus it will be apt to state that these legal factors are needed to be
fulfilled by the company to assure uninterrupted business process of the company.
Environmental factors
It is needless to mention that real estate and construction industry has always been
imposing threat on environment. Due to rapid urbanization In Malaysia the environmental
balance is getting affected as reported by Thepropertytimes.my, (2018). Thus government
became strict in order to sanction permission for construction of buildings while implemented
Environmental Quality Act was introduced in 1989 to control the effect of urbanization on
environment. This demandsMah Sing Group Berhad to adopt sustainable approach which will
have less adverse impact on environment.
Porter’s five forces
Competition in the industry

9Strategic management of Mah Sing Group Berhad
Due to urbanization, the real estate industry has become highly competitive with giant
companies like and PropNexandS P Setia. Real estate companies including Malaysia Realtors
Inc, MindlinkGroupsare the other large real estate companies in competition with Mah Sing
Group Berhad (Thepropertytimes.my 2018). In order to keep a hold on the customer base all
these companies take different strategies which creates difficulties for the company.
Potential of new entrants into the industry
The increased tourism and urbanization in Malaysia further encouraged new companies
to enter in the industry. Teakhwa Real Estate Pte. and similar other companies entering in the
real estate market of Malaysia with considerable potentiality to compete with the giant
companies which is a major threat for the company (Lionglobalinvestors.com 2018).
Power of suppliers
The Mah Sing Group Berhad is highly depended on the suppliers of raw materials.
Generally it is seen that the suppliers of raw materials can drive the price of the end products
(Research, Services and Trends 2018). However, the suppliers for the company exist in a large
number. Thus it can be said that the power of the suppliers is low, hence it can be termed as the
strength for the company.
Power of customers
The risk of shifting of the customers from Mah Sing Group Berhad to other companies is
high as buyers or customers are concentrated on cheaper price with maximum benefits.
Addressing the need, the new companies offer cheaper price (Cbre.com.my 2018). Therefore the
buyers have low switching costs. The customer base of Mah Sing Group Berhad is wide since it

10Strategic management of Mah Sing Group Berhad
offers different range of products. Thus the customers hold more power creating a threat for the
company.
Threat of substitute products
Among all the five forces of Porter’s model, Mah Sing Group Berhad is in advantageous
position since the threat of substitute product is low making it as strength for the company.
(Ey.com 2018). It needs to be mentioned that the Mah Sing Group Berhad also offer plastic made
goods and the demand of biodegradable products instead of plastic goods is high enough.
The above Porter’s five forces analysis suggests that while competition within the
industry, potentiality of new entrants in the industry and power of customers as threats or
weakness for the company, while the potentiality of substitute products and supplier’s powers
can be considered as strength or opportunities.
Capability analysis
Resource audit
Resources Competences
Threshold capabilities Over 24 years of service, Mah
Sing Group Berhad has been
satisfying its customers. The
company develops residential,
industrial and commercial
project while positioned itself
as one of the few completely
integrated real estate
The company presently has 47
projects in the core areas of
Malaysia. In the year of 2017,
3 new lands have been
acquired by the company.
Outof the three lands, two is in
Klang valley and other one is
in Bukit Mertajam. The living

11Strategic management of Mah Sing Group Berhad
companies. The company
posses a strong hold over the
raw material suppliers while
availing a cheaper rate in the
industry.
In the year of 2016, Mah Sing
Group Berhad has launched its
largest township of 1313 acres
in Meridin East of Iskandar
Malaysia Johor.
In accordance with the market,
the focus of the group has
been shifted to high-end
market from medium-upper
(Mah Sing 2018).
cost in Malaysia has been
increased due to several
reasons such as tourism and
industry.
Accordingly there has been a
growing demand of affordable
homes. Addressing the need,
Mah Sing Berhad exclusively
focuses on building affordable
homes below RM 500,000
which increases its
competency within the
industry. In order to accelerate
the growth of the company,
Mah Sing Group Berhad
focuses on acquiring lands
specifically in greater KL
while making an increasement
of current portfolio of 66% to
75% in the next two years
(Mah Sing 2018).
Value chain analysis