DBA Module: Sunway Group's Strategic Transformation to Sustainability

This report provides a comprehensive analysis of Sunway Group's strategic shift towards sustainability. It begins with an overview of Sunway Group, its operations in Malaysia, and its commitment to economic, environmental, and social practices. The report includes an internal and external environmental analysis using tools like Value Chain and PESTLE to assess the company's capabilities and the external factors influencing its business. It also outlines the company's vision, mission, and core values, highlighting its strategic capabilities and potential for growth. The report proposes solutions based on the Balanced Scorecard approach and strategic map methodology to enhance business performance, focusing on financial, customer, internal business processes, and organizational growth perspectives. Furthermore, it incorporates a literature review discussing the benefits of strategy maps and balanced scorecards, supported by contemporary evidence and DBA research indications, culminating in an individual learning log reflecting on the insights gained throughout the process. The report concludes by emphasizing the importance of strategic implementation for the company's future success.

Running head: REPORT
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Name of the Student
Name of the University
Author Note

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Executive Summary
With the advent of technology, the business environment has become increasingly complex and hence, when
any business needs to ensure that it achieves the growth aspects, it needs to ensure that it is able to
successfully apply the concept of sustainability. Sustainability helps in ensuring that the organization achieves
success in the future. Hence, the given report is primarily based on the transformation of a company to
sustainable model. The report has been divided into three parts. The first part lays down the company report
which concentrates on the Sunway Group and its approach towards a change. Certain strategic
recommendations have been made. Moreover, the second part is based on a review of literature and lastly, the
latter part is a reflective log.

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Table of Contents
Part 1: The Company report..................................................................................................................................3
Organization: Sunway Group in Malaysia............................................................................................................3
Introduction...........................................................................................................................................................3
About the company...............................................................................................................................................3
Strategic analysis...................................................................................................................................................3
Internal Environmental Analysis......................................................................................................................4
External Environmental Analysis.....................................................................................................................5
Strategic Purpose...................................................................................................................................................6
Proposed solutions................................................................................................................................................8
The Balanced Scorecard approach....................................................................................................................8
Impact of strategy implementation.....................................................................................................................11
Consequences of not applying the strategic option.............................................................................................12
Conclusion..........................................................................................................................................................12
Part 2: Literature review.....................................................................................................................................13
Evidence Review.................................................................................................................................................13
Strategy Map...................................................................................................................................................13
Benefits and Using of Strategy Map...............................................................................................................14
Balanced Scorecard.........................................................................................................................................14
Benefits and importance of a Balanced Scorecard..........................................................................................15
Contemporary Evidence..................................................................................................................................16
DBA Research Indications..............................................................................................................................16
Part 3: Individual learning log............................................................................................................................17
References...........................................................................................................................................................20

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Part 1: The Company report
Organization: Sunway Group in Malaysia
Introduction
Strategic Management is considered to be an integral part of an organization. This is because the
business dynamic is quite dynamic in nature and due to this reason, the trends in the business keep changing
which then demands for the business to change according with the changing needs (Hansen and Schaltegger
2016). Hence, it is important for the business to determine the changes taking place and being able to
determine the challenges being faced by the organization and thereby take adequate moves in order to ensure
that it is successfully being able to manage the business well. The given report is based on the Sunway Group
and analyzes the problem which is prevalent in the organization, thereby looking out for probable solutions for
the same.
About the company
The Sunway Group is one of the larger conglomerates as present in Malaysia and was established in
the year 1974. The conglomerate is involved in a variety of businesses which comprise of domains like the
health care, construction, property and healthcare. Moreover, employed with a workforce of more than 15000
individuals, the company operates in more than 50 locations worldwide and this helps in contribution to the
quality of life of the individuals as well. There are twelve business divisions which are being dealt with by the
company and these are education, retail, hospitality, construction, trading, building materials, quarrying and
the Real estate investment trust (Sunway Group 2018).
The business model of the Sunway group is very unique in nature and has thereby supported
sustainable communities and various townships as well like the Sunway City in Selangor, Sunway Iskandar in
Johor and the Sunway City Ipoh.
The group has some public listed companies which has a combined market capitalization of RM 17
billion and are one of the best companies around the globe. The company is well committed to the Economic,
Environmental and Social practices so as to ensure that the policy initiatives of the day to day operations are
well delivered. Even financially, the group has been performing considerably well.
Strategic analysis
In order to analyze the different changes which can be made to the business model of the business so
that they are able to achieve sustainability in the long run, the analysis of the internal as well as the external
environment needs to be made (Harrison and John 2013). The analysis of the internal as well as the external

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environment shall go a long way in helping a company to make an extensive research procedure which will be
beneficial for the organization.
Internal Environmental Analysis
The internal environmental analysis can be described as an analysis which is used to understand the
internal capabilities of the organization
Value Chain
The value chain analysis is largely used to analyze the different primary as well as supporting activities
of the organization (Hill, Jones and Schilling 2014). It goes a long way in assisting the organization to
understand the capabilities of the business and assists in future analysis of the capabilities as well.
Primary activities Component Support Activities Component
Inbound logistics The inbound logistics
can be described as
the manufacturers or
the suppliers of the
good to the company.
The Sunway groups
has a low cost
suppliers which
belong to the local
suppliers as present
in Malaysia.
Business
Infrastructure
The company has
companies in various
locations and these
locations are all
located at various
parts of the world.
Operations The operations of the
company are engaged
in various dimensions
like the retail,
infrastructure, and
hospitality, trading
and quarrying.
Human resource
management
The company has
employed over 15000
employees each of
whom are dedicated
to the cause of the
business.
Outbound Logistics The company has
distributors in more
than 50 locations as
Technology
Development
The company is
technologically very
advanced and makes

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situated around the
globe and due to this
reason the outbound
logistics of the
company is praised.
use of the latest
technology in order
to achieve their
sustainable goals.
Marketing/ Sales The marketing and
sales activity of the
organization is also
very sufficient in
nature. Moreover, the
company provides
goods which can be
availed by all sectors
thereby making the
conglomerate very
successful in nature
(Sunway Group
2018).
Procurement As the company has a
good bargaining
power since it is a
conglomerate, the
company has strong
relationships with the
vendors.
Service The company has an
excellent service
facility as well with
quick response to all
the queries of the
organization.
Competitive advantage
The competitive advantage of the firm is as follows:
The brand name of the conglomerate is very popular. The company is one of the largest companies as
present in the globe and has its business into a large number of domains (Hoque 2014). Hence, this can lead to
a successive advantage. Moreover, the company has its presence in various countries thereby making the
entire operations quite wide spread in nature.
External Environmental Analysis

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PESTLE Analysis
The PESTLE Analysis can be described as an external environmental tool which can be used to
understand the external environment in which the firm operates in. For the purpose of the report, the
environment of Malaysia will be analyzed:
Political: The Malaysia is a multi-party democracy country whereby the ruling Barisan Nasional Party has
been in rule for more than 25 years. Hence, it can be stated that the political scenario of the country is quite
stable in nature (Hubbard, Rice and Galvin 2014). This can be stated to be a suitable factor for any business.
However, the corruption as present in the country is quite widespread in nature and in the Corruption Index,
the country stands 47th out of the 180 countries as present in the given scenario.
Economical: The economy of Malaysia is very vibrant in nature and hence, this makes it a main attraction for
the businesses. The economic growth of the company has been 7% for the last 10 years. The income of the
different consumers have increased considerably and thus major international brands have flocked towards the
Malaysian market.
Socio-cultural- The country is a mix of many religions and this gives rise to a large variety of public holidays
as compared to other companies (Jarzabkowski and Kaplan 2015). This simply means that the different
companies who will be operating in the country will be required to abide by the different requirements.
Technological- Although technology has advanced considerably in the given country, there exists still a scope
for improvement in the given domain. The government tries to host various corridors so that the international
companies can take part in it and be able to successfully ensure that the economy of the country grows.
Legal: The Malaysian economy follows the British law, however, the legislations are taken very seriously and
for this reason, the punishments as provided by the companies and the government are quite strict in nature.
Hence, these legal aspects have to be followed extensively (Zott and Amit 2013).
Environmental- The development of the country has cost it high environmental costs. The deforestation in
Malaysia has increased considerably and due to this this has led to a depletion of the resources.
Industry scenarios
The Sunway group operates into various industries like retail, construction, mining and others. The
company is an industry leader in all these domains and hence, there are not any major threats which exist in
the organization due to the presence of other competitors (Kalkan and Bozkurt 2013).

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Strategic Purpose
The vision and mission of the organization has been given as follows:
Vision:
To become one of the model corporations with respect to sustainable development in the country and
to ensure that they can make better lives.
Mission:
The mission of the company is to empower the different people by delivering enhanced value to all the
stakeholders as present.
Their mission is to embrace the concept of sustainability in all their business processes as well as
decisions (Keyes 2016).
Moreover, they would also like to attract and nurture the talent of the workforce with respect to the
digital era.
Core values
The mission and vision of the organization the organization is primarily dependent on the company`s
three core values like Integrity, Humility and Excellence.
Strategic Drift
The company takes into consideration the environmental aspects and ensures that it builds a well-
connected communities whereby the people learn, work play as well as remain healthy in a well-connected
business environment (Wright, Paroutis and Blettner 2013). The company has a unique business model which
aims to operate the entire property value chain and create a good proposition for all the stakeholders. The
founder and the chairman of the company is quite positive on the 10% growth rate on the performance of the
group and stated that the financial results of the company have been coming up to be considerably well
(Lasserre 2017). He stated that although the environment had not been performing adequately well in the
past, however recently the weather has cleared up and thus, they hope to track its health care business in the
future domain.
Strategic capabilities
The capabilities which are possess by the firm are as follows:
 A well-structured employee base
 A well-structured fund resource availability
 A brand name

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Proposed solutions
As observed from the previous section, there are various possibilities for the company on a larger scale
and thus, the given section will use the Balanced Score Card approach and the strategic map methodology
approach in order to understand the changes which can be made to the business which will result in the
betterment of the business organization. If these strategies are selected adequately, the organization will be
able to understand its impact on their future performance.
The Balanced Scorecard approach
The balanced scorecard approach takes into consideration the different aspects of a business which
comprise of the financial, customer, internal business processes and the organizational growth perspective
(Martinsuo 2013).
Financial
Objectives Measurements Targets Initiative
To ensure a growth
rate of 10% in the
year 2018
Growth Rate and
Trend Analysis
10% in 2018 Ensuring better
efficiency of the
resources
Ensuring more
investment
To ensure that the
company achieves a
Net profit of 20% in
2018.
Net profit Analysis 20% net profit Ensuring increased
sales
Ensuring less costs
involved
Customer
Objectives Measurements Targets Initiative
To ensure that it is
able to attract a
larger number of
customers
To measure the
growth in the number
of customers
More than 1 million
new customers in
2018
Increase value
proposition

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To ensure a
customer retention
rate of 90%
To measure customer
retention rate
90% Increase offerings
Internal business processes
Objectives Measurements Targets Initiative
To ensure minimum
wastage
To apply the six
sigma measurement.
Six sigma To ensure that the
Japanese tools of
Kaizen and
continuous
improvement are
applied.
To ensure maximum
efficiency of 90%
The reduction in
costs
90% To ensure that all the
operations are taken
adequately.
Organizational growth perspective
Objectives Measurements Targets Initiative
To expand into 5
more countries
To check the growth
of the company
5 country expansion Looking out for
emerging markets
To get into more
industries
To ensure that the
company has
expanded well and
improved its revenue
adequately.
2 industry expansion Looking out for
emerging industries
Strategic Mapping

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Figure 1: Strategic mapping of the Sunway Groups
(Source: As created by the author)
Refinement
Hence, after the analysis of the strategies and initiatives as laid down in the balance scored card
method and the strategy mapping, a central theme which can be applied to adopt for the firm can be related to
the customer strategy. The customers form an integral part of an organization and for this purpose, their
treatment needs to be adequate in nature. Moreover, as the company has its operations into the various
segments and sectors as involved, the company is dealing extensively with a large number of customers and
thus for this purpose, it needs to engage in adequate planning to improve the customer service aspect of the
organization. The customer service of the organization needs to be such that the company will be able to retent
as many customers as possible (Merat and Bo 2013). Moreover, as witnessed from the Balanced score card,
one of the objectives of the organization was to improve its retention rate and hence, one aspect of this is
ensuring better customer services. Hence, it has been suggested that the organization applies in the system and
procedure of a customer relationship management. A customer relationship management can be described as a
strategy which aims to formulate the philosophy of the business which deals with the manner in which the
relationships in an organization need to be managed and how new customers are attracted along with retention
of the old customers (Wood, Wrigley and Coe 2016). The customer relationship management can be described
as a strategy which helps the different companies to stay connected with its customers along with streamline
the processes and improve its profitability.

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These days various CRM software’s are available in the market which can thereby assist the company
in ensuring that it is able to serve its customers in a better manner. The CRM software can be largely used to
record and retain customer information and data and store the preferences of the client as well in the chosen
system (Morschett, Schramm-Klein and Zentes 2015). The customer relationship management aspect is
known to improve the customer relationship management by creating an all-rounder view of the different
customers and capture the interactions which the customer makes and thereby ensure resurfacing of the
business.
Hence, as the Sunway group has adequate resources at its disposal, it can apply the theme related to the
customer relationship management and use the CRM systems to ensure vale addition to its resources
(Moutinho and Vargas-Sanchez 2018). Value addition or value proposition means that the organization can
add value to its offerings. However, in case of Sunway Group, the company can add value to its offerings by
providing adequate services to the customers.
Impact of strategy implementation
Hence, if the overall strategy of application of a strategic management system is adopted in the
organization relating to the Sunway Groups, the following impact will be observed on the organization:
Improved customer relations
One of the most crucial benefits of the implementation of the Customer Relationship Management is
the improved customer relationship with the group. As the customer relationship management deals with the
involvement in servicing, selling as well as marketing, the customers can be managed in an organized way
which then helps in ensuring that customer loyalty is increased and that their agitation towards the
organization is reduced (Nikolaou and Tsalis 2013). In this manner, one can also receive regular feedback
from the customers and find ways to improve the company`s offering. The customer base also increases if the
existing customer relationships are maintained well.
Increases revenue base from the consumers
The implementation of the Customer relationship strategy will also assist the company in increasing
the revenue of the company. The company Sunway Group, can use customer data and make use of popular
marketing campaigns in a more effective manner which will then encourage the customers to purchase the
products of the group (Rothaermel 2015). The software used in the CRM ensures that the promotion reaches a
different and brand new set of the customers and make the firm reach out to newer opportunities.
Encouraging upselling as well as cross selling