Organizational Transformation Strategy for Sunway Group: A Report

This report provides a comprehensive analysis of Sunway Group's current performance, identifying gaps between its strategic ambitions and actual achievements. It proposes future organizational transformations through a conceptual model designed to inject value creation opportunities and address performance shortfalls. The analysis covers the company's operations across various sectors, including construction, property, education, healthcare, and hospitality, and evaluates its performance in construction projects, international market expansion, and stakeholder management. The report also considers limitations such as growing competition, changing property laws, and less profitable business sectors. The proposed model focuses on decentralizing business operations, hiring local experts, prioritizing high-potential markets, enhancing product quality through strategic supplier partnerships, and exploring opportunities for self-managed supplies. Additionally, the report includes a PESTLE analysis, SWOT analysis, and a reflection on employability enhancement through diversity management, communication, and technical leadership skills.

Running head: ORGANIZATIONAL TRANSFORMATION SUNWAY GROUP
ORGANIZATIONAL TRANSFORMATION SUNWAY GROUP
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction......................................................................................................................................2
Part 1: Company Report..................................................................................................................2
1. Performance evaluation...........................................................................................................2
2. Proposed future organizational transformations......................................................................6
3. Conceptual model....................................................................................................................9
Part 2. Evidence review:................................................................................................................12
1. Literature review:.......................................................................................................................12
Introduction:..................................................................................................................................12
PESTLE Model:.............................................................................................................................12
Political and legal factors:.........................................................................................................12
Economic factors:......................................................................................................................14
Society:......................................................................................................................................16
Technological and environmental:............................................................................................17
SWOT analysis:.............................................................................................................................19
Supply chain:.............................................................................................................................19
Sustainability:................................................................................................................................20
2. DBA research perspective:........................................................................................................20
Part 3. Reflection for Employability Enhancement.......................................................................21
Diversity management skill:..........................................................................................................21

2ORGANIZATIONAL TRANSFORMATION SUNWAY GROUP
Communication skills:...................................................................................................................21
Technical leadership skills:............................................................................................................22
References......................................................................................................................................23

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Introduction
Organizational transformations are important from time to time in order for corporate
entities to survive the various factors that tend to affect the corporate environments. The
transformational aspects of organizations however cannot be immediate in planning and
evaluation. This is mainly because several crucial factors need to be essentially considered
before organizational progress in the most effective transformational path is determined. The
report has essentially considered the operational environment of the Sunway group in order to
identify the performance related factors of the company and analyze its potential of becoming a
significant achiever in the future. The capabilities of Sunway are crucially analyzed for the study.
Part 1: Company Report
1. Performance evaluation
Sunway group is one of Malaysia’s largest companies with operations across wide
number of sectors. The company is diverse with essential operations across construction,
property, education, healthcare and hospitality (Dunn 2017). The diverse range of operational
sectors requires the organization to maintain effective organizational management techniques.
This is important as the organizations requires to implement management structures that can
optimize its productivity across all sectors of its business. The organizational management of an
enterprise depends on its effectiveness towards improving performance. The growth of the
company has been significant and its construction oriented activities have resulted in generation
substantial all round profitability. The company boasts of a team of 16 thousand employees that
work across its various business divisions. The company essentially has 12 divisions of business
(Johnson 2015). The progress of the company has been great in the recent years as it has
achieved effective operations across 50 world locations. Thus, the operations of Sunway group

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has diversified into various sectors. The most important sector of business for the company has
been the construction and property oriented business that that organization operates.
The three listed companies of the group are Sunway construction, REIT and Sunway
Berhad. Performance wise all the listed companies of the organization have achieved significant
progress with Sunway Construction leading the way. The company has handled many of
Malaysia’s biggest construction projects. The combined value of the three companies managed
by the group has been 17 million RM (Dunn 2017). The company’s essential performance
concerning its property and construction oriented businesses has been very good. It has
succeeded in becoming one of Malaysia’s premier construction enterprises. It has been able to
successfully expand into international markets. The Sunway Group has been able to establish its
presence across markets in south-east Asia and some other parts of the world. The company has
established presence in China, Thailand, Indonesia, Vietnam, the Caribbean, UAE and India. The
diversification of business for the enterprise has happened relatively faster and it has been able to
effectively maintain much of its progress over the years.
The business strategy of the company essentially incorporates its mission and visions for
future growth. The company wants to follow a sustainable growth policy and progress path. The
organizational vision is to become a model organization with regards to sustainable development
in Asia. The mission of the organization is to promote people’s empowerment and empower the
major stakeholders of the company. The mission is also focused towards integrating a sustainable
organizational outlook. The company also wants to attract new talent and nurture a workforce
that will be progressive and efficient. The business model of a company is based on a system
called the build-own-operate mechanism. The company operates its entire business aspects in
order to effectively create a strong organizational mechanism. This helps the organizations to

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work in accordance with the expectations of its major stakeholders. The company is well aware
of the diverse needs of its stakeholders and has managed to garner significant positive progress
with regards to stakeholder management. As a result the organizations has received many
sustainability awards over the years. This has also created a great sense of trust for the
organization among the stakeholders. As mentioned previously construction is among the most
important business sectors for the company. The company has taken part in building significant
landmarks of Malaysia. Legoland, KLCC convention center and the highway of Kajan-SILK
(Farrell, Kawecki and Branham 2017). The construction business of the company has even
diversified into the markets of Middle East and Caribbean. However, the progress of the
company has not been limited to property development alone. In the hospitality sector, the
performance of the company has helped it to diversify more and it now operates large hotels in
Malaysia, Vietnam, Cambodia and other prime locations across South-east Asia.
The latest revenue earned by the company is 5.3 billion RM (Rothaermel 2015).
Concerning investment, the company has managed to become one of the best performing
construction groups in the country. The market capitalization of the company is more than 8
billion making it the leading construction business of the country. The investment is poised to
grow further for the company. The company is well positioned for future growth as it has
construction projects that are located across 3.2 thousand acres in areas that are strategically
positioned to witness greater growth over the years (Aviles and Dent 2015). However, despite
the fact that most of the forecasted ambition of the company are well poised towards being
realized some essential issues still form crucial limitations towards its progress.
A significant gap in the industry is the growth of competition in the sector. More
construction companies are vying for gaining better advantages of the prevailing situations.

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Investors are also looking towards promoting newer ventures with unique construction ideas.
This can be a major gap for the company as it may hamper its progress. The company is not
doing much to tackle the threat of some of the new entrants in the construction industry.
Moreover, its old competitors are also gaining significant market growth and closing the gap on
the company. The company is taking part in construction ventures concerning civil engineering
works (Bair 2015). However, the competing firms are gaining rapid progress in the market by
managing large scale residential projects. Moreover, some of the lesser profitable business of the
company are proving to be a major limitation to the all-round growth of the company. This is
mainly because the company has to sustain these businesses by re-distributing profitability form
other sectors. Another crucial limitation is in regards to the changing property laws both in the
country and its foreign operating environments. The laws in some of the countries like China and
UAE are getting stricter and posing significant challenges to its future productivity. The current
strategies are working well towards the company’s growth, however, major changes may be
required in a few years’ time to ensure sustained development.

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2. Proposed future organizational transformations
Conceptual Framework
The company essentially uses a build-own-operate model for ensuring sustainable development
paths (Malhotra and Hinings 2015). The model is strategically implemented to help the company
grow and develop with regards to the various business sectors that it has to essentially operate.
The future market conditions may result in the loss of profitability and effective growth of the
community. The basic limitations that were identified were in regards to growing competition,
emergence of unique new ideas along with newer ventures and the environment of changing
international construction and real estate laws that can affect the business proposition of the
company (Daneshgari and Moore 2016). It is very important to consider these significant factor
that are major limitations towards the sustainable growth of the company. It becomes important
that both the external and internal factors are significantly optimized through the transformations
that are to take place. Firstly, the changing laws of the country in regards to real estate and
investment financing need to be essentially considered. Secondly, the growth information of the
competing firms need to be effectively analyzed. This will help in the formation of crucial ideas
in regards to the positive growth aspects of the competitors (Ellis et al. 2014). Malaysia as a
country has a relatively stable environment for the development of businesses. The construction
Organizational
transformation
Domestic
Supplier
management
Innovative
approach
Resource
management
International
Market
Selection
Opportunity
analysis
Environemnt
Analysis

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sector of the country is also great due to the great scope for infrastructural growth. This has led
to the development of a good environment for new companies to enter the market (Skocpol
2016). However, for established businesses like Sunway this may be a significant threat as more
new entrants will increase the competition in the market and greater stress on suppliers. The most
important aspect is the added new values that can be achieved through the model that can
enhance the success of the future business of the enterprise.
The most important value that is to be added is increased quality of products and services.
Moreover, another important factor that has to be incorporated is innovative approach to the
business. Innovation is much important for the effective growth of the organization (Timmons,
Butterworth and Lucus 2017)
. The model that can be used is a strategic growth model. The model incorporates
decentralizing of business. The businesses in various countries can be made more effective by
hiring experts that will be aware of the laws and regulations of the particular countries. This will
make sure the business environments of these countries can be optimally approached. Hiring
more locals will ensure that the business has a nationalistic value. Moreover, countries where the
business propositions are more need to be provided special attention as these markets can ensure
profitability growth in the future (Muja et al. 2014). This way the markets that can provide lesser
profitability can be effectively separated from the international markets with greater
developmental prospects. The countries where the markets are relatively lesser affected by strict
laws have to be selected in order to increase profitability. This way the various markets can be
assessed and initially new businesses at better international locations can be formed.

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Concerning, the internal environment of the country it is much important that the initial
factors are essentially assessed. The model should consider increasing the value of the products.
In order to increase the product value effective partnerships with the best suppliers have to be
created. Effective relationship need to be created with the suppliers in order to build a strong
market base. The newer firms may not be able to easily gather a lot of support from suppliers.
Moreover, in order to get competitive edge over the rival companies it is important that the best
suppliers remain with Sunway group (Martin and Osterling 2014). Hence, the model will
essentially involve partnerships with the best identified suppliers. This is an important factor
keeping in mind the growing competitive environment in the country especially in regards to the
construction industry. Additionally, the model will incorporate research in regard to those
supplies for which the company will not necessarily require any supplier. The company has a
long standing presence in the industry and due to its previous expertise have garnered enough
resources to manage some of their own supplies (Bustinza et al. 2015). Hence, it becomes
important that the firm identifies these specific areas where it can manage its supplies through
subsidiary companies. It also becomes important that research is done in regards to how the
organization can manage crucial supplies on its own. This will be required in order to form
effective supply oriented strategies in the future.
Given the limitations the company is affected by, essential future growth strategies need
to be implemented in order to focus on ground level needs of the company. These needs should
not necessarily be considered in respect to the current circumstances, however, it is important to
consider the circumstances that could arise in the future (Timmons, Lulinski and Thomas 2016).
The model incorporates increasing the value of product it becomes much important thus, that the
value increasing needs of the future are incorporated within the model. More importance is to be

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given to innovation. A large organization like Sunway group cannot sustain growth without
incorporating innovative approaches within its growth oriented framework. Thus, it is important
that innovation is considered much judiciously while implementing the model across all the
levels of the company. The innovative approaches have to be implemented with regards to
technology, approach, industrial outlook, business methods, communication systems and other
essential aspects that need to be strongly focused on to develop the idea or sustainable growth
that the company essentially has (Kianto et al. 2014). It also becomes important that the
company consolidates its diverse business areas. Businesses that are not generating profitability
can be closed or temporarily suspended. The focus if the model is towards value creation. In
order to do so profitability have to be effectively maintained and subsequently channelized
towards achieving better product value.
3. Conceptual model
The adoption of the conceptual model can help in improving the efficiency of the
operations of the different sectors of Sunway Group like construction, retail, education, health
care and manufacturing. Sunway Group should be provided with top management support along
with open communication that can greatly improve the prospects of Sunway Group. Open
communication can pave the path for transparency in relation to the various sectors of Sunway
Group that can improve the operation of the conglomerate. In the event of an organisation
lacking the element of mutual trust it shall result in decreasing performance of Sunway Group.
The organization with the right kind of strategic partnering can rise ahead of the competitors and
ensure the sustainability of the company (Nguyen, Newby and Macaulay 2015). In the event of
the client organisation, not accepting the proposal it will have serious impact on the fortune of
Sunway Group. The company will not be able to get great ideas without the proposal that will

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pave the path for decline of the company. They would suffer under the burden of operating
expenses that would severely cost the ability of the company in making profits. Sunway Group
wold not be able to secure funding in the event of not taking into account the proposal. The
company would not be able to show the investors that they are competent that would be harmful
for the long-term success in relation to the company (Chang 2016). Sunway Group would not be
able to get the direction that shall harm the future of the company. It shall result in poor cash
management for Sunway Group that shall have a negative impact on the factor of success of
Sunway Group. The business proposal not being implemented will act as a barrier for the
company in identification of the weakness that will greatly harm the reputation of the company.
The consequence of not abiding by proposal will not help Sunway Group in capitalising on the
strengths that will have irreparable consequences for Sunway Group.
The members of the board will not be able to understand the values and the strategies of
the company that will greatly cost the company. The proposal can help the company in
developing business alliances that will be able to help the company in making profits. The
proposal would be able to help in backing up a loan application that would be able to facilitate
the expansion of a business. Sunway Group will not be able to prioritise that shall hinder the
process of mapping out effective strategies (Morden 2016). The business proposal not being
implemented would make them incapable of controlling the future that would be detrimental for
the future of Sunway Group. The updating of the business plan will help Sunway Group in
making changes in the strategy that can work to the benefit of the organization (Johnson 2015).
Sunway Group would not be able to engage in continuous improvement which shall greatly harm
the company. Sunway Group would not be provided with the learning climate that can help in