BMST5103 Strategic Management Report on CIMB Group Holding Analysis

This report analyzes the strategic management practices of CIMB Group Holding, focusing on its challenges and opportunities in a joint venture. The report identifies key issues, such as the lack of proper analysis of Jupiter security and the fragmented stockbroker industry in Malaysia. It explores the importance of strategic planning, including internal and external analysis, and the role of cross-functional teams in decision-making. The report emphasizes the need for a comprehensive execution plan, evaluation, and adaptation to market trends. It also justifies the advantages of strategic management, highlighting its role in guiding decisions, analyzing the environment, and understanding organizational culture. The report concludes that strategic management is crucial for business success, emphasizing the importance of functional teams, planning, and understanding competitive factors. The report offers practical insights for CIMB to enhance its strategic decision-making and achieve its business goals.

Running head: STRATEGIC MANAGEMENT 1
Strategic Management
Student’s Name
Affiliate Institution

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Introduction
The continuity and success of any business progress require strategic management for its
daily operation to meet the business goals. Lack of strategic goals may lead to the company
making huge losses when proper guidelines are not adhered to by the company. Large company
especially financial institution requires strategic planning for their operation to meet the business
objective and goals. In this case, we are focusing on strategic management concepts with an
example of a business venture in operation by CIMB group holding CIB.
Definition
Strategic management is the continuous planning, monitoring and analysis and
assessment of all that is required for a business to meet its goals and objectives. The main
advantage of the strategic process it helps the management in assessing the company present
situation, makes the strategic decision and ensures that the strategic decision is implemented and
analyzed for the success of the organization (Brunton, Kankaanranta, Louhiala-Salminen, &
Jeffrey, 2019).
Q1
In the case study, we find a couple of problems with the CIMB group holding. First, the
CIMB has not done analysis about the Jupiter security where it needs to acquire an extra license
for the joint venture with China Galaxy securities. We know that Jupiter security is a subsidiary
broking firm of company Olympia. The company is making losses in the business also Olympia
main business is on gaming and not on broker security. It operates financial services and
property through Jupiter. Jupiter is affected by market share and its assets are unknown. The
license from Jupiter will be for CIMB only and does not cover both companies in the joint

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venture. This will be a huge problem for CIMB if licensed by the Jupiter security since the
security company can crumble down due to high losses it is making and this can lender the
license invalidated and hinders the CIMB from the joint venture with the China galaxy. Lack of
credible license will hinder the company strategic implementation of its plan to expand its
business. The license CIMB has cannot be used in the joint venture; therefore, the company
needs do the analysis of Jupiter before it makes the final decision on the issuing of a license to
avoid the future implication that can hinder the company from expanding to other locations
(Hong, 2014).
Secondly, Stockbroker industry in Malaysia where CIMB want to operate in a joint
venture with China Galaxy if fragment. This means that CIMB is not the main firm to operate the
business in Malaysia. There is a competition factor to consider. Also, some broker industries
have been privatized meaning that the competition in the industry is stiff.
Q2
Strategic planning consists of various stages to be considered before business goals and
objectives are realized (Morton, Stacey, & Mohn, 2018). CIMB is thinking to carry out internal
and external strength and weakness of the company. These will help the company to understand
its capability for the purpose of making a strategic decision. Knowing the strength of the current
situation of the company can enable the key decision maker to allocate the required resources for
the right activities in the company. Understanding the cross-functional team in the business helps
the organization to realize its goals and business objectives. Having professional from all levels
in a different department can help the company to carry out professional duties effective for
making and implementing the action plan for the company. The company needs to formulate an
analytical team to carry out analysis about the Jupiter where the CIMB wants to get its joint

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venture license. The team is able to determine whether Jupiter is credible to offer the license
required for the operation. For the success of the cross-functional team, it requires cross-
functional team management for the purpose of putting the objectives of the company as a
priority and not personal interest.
Through a cross-functional team, CIMB is able to do a market analysis in Malaysia
before deciding to venture into the business. The business analytical team will be able to analyze
the business in Malaysia and give the proper guideline to the management for proper decision
making before parking all its stockbroking business in the region. By use of cross-functional
team, CIMB is able to facilitate in quick decision making and better problem solving which may
lead to better results to the company according to Young-Hyman (2017). Understanding the
market changing trends can aid the company to respond effectively and provide the required
decision due to the availability of team response in the company. Instead of parking its broker
business, CIMB can retain the business and responds to the current market changing trends
which can help the company from being affected by the market share and volumes.
The company needs to have strategic planning before it ventures into the new market.
The strategic plan enables the company to make short and long term goals that determine the
decision and action to meet those goals. Strategic plan aids in helping the organization leaders to
make the effective decision that meets the organization goals. The planning committee
researches on the organization to gather information about the current status of the business and
to obtain the factors that may impact the business in the future. CIMB needs to formulate a
planning committee to research on the business and provide the management with the current
status of the business. The committee should come up with short term goals before deciding to
venture into investing with China Galaxy which is an international security company with more

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than eight million customers. The company needs to know the risk that comes with an online
business where the China galaxy security main customers operate. Also, CIMB needs to know if
it has the required skills and competency to operate the joint venture. Strategic planning will
bring the awareness of the future opportunities and challenges that come with the new venture, it
will enable the company to know the resources required to meet the major future requirements
and challenges also strategic planning able the company to have a future direction towards
meeting the company objectives and goals.
The company needs an execution plan that enables the company to carry out or execute,
monitor and control various activities. The execution plan guides the company to order the
activities in a timely manner and enhances the utilization and allocation of resources to those
activities. Having an execution plan CIMB will be able to execute various activities and know
the required budget for every activity for proper resource allocation. Finally, CIMB needs to do
an evaluation to understand what has been successful and making proper change where desired
results have not been achieved. Knowing that Jupiter has major as a licensing, CIMB can opt to
make changes and change the license from another licensing body for the joint venture to be
successful.
Q3
Strategy management is justified because it has various advantages. Strategy
management guides the company in making a viable decision geared toward organizational
goals. The key decision makers depend much on strategic management for quick decision
making and problem-solving. Understanding the company current situation enable the planning
team to formulate ideas that can help the company to make an effective decision for the
company. Understanding the strength, weakness, opportunities, and threats help in detecting and

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analyzing the internal and external environmental factors that may impact the business and
prepare for the future and in making the right strategic decisions.
With CIMB, the company is able to understand its strength and weaknesses before
venturing into the joint venture with China galaxy security. The company is able to analyze the
market at hand and understand the underlying opportunities and threats that the company may
face before engaging in the business. The company is also enabling to analyze the organization
aspects of the environment to formulate competitive strategies in the environment the business
has to function. Also, strategic management enables the company to understand the
organizational culture which can determine the success and failure of the business. A strong
business culture makes it easier for management to motivate their staff in executing their task in
line with the business outlined goals. CIMB having a joint venture and contribution of 50:50
contributions on market share needs has to do the evaluation and make clear decision if the
company is able to sustain itself in the market despite the high competition in the region
(Tencent Holdings Limited SWOT Analysis, 2019).
Conclusion
The business organization requires strategic management for success and realization of
business goals. The company requires having functional teams to carry out various professional
goals that aid in proper decision making. Functional teams enhance quick decision making and
problem-solving. The company needs to have a planning team to carry out effective research for
the purpose of understanding the company’s current needs and formulating ideas that can impact
the business in the future to meet the business goals. Understanding the company strength,
weakness, opportunities, and strength can help the company in proper planning and in making an
effective decision. Also, this helps the company in understanding the environmental competitive

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factors and aids in formulating measures on how to adapt to the new venture and measures on
how to cope with the competition.

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