ASSIGNMENT 1

PURPOSE

The purpose of this assignment is to develop learners’ ability to identify and evaluate the competitive advantage of selected businesses.

REQUIREMENT:

Read the THREE (3) articles below and answer the questions given:

FAREEDA

FAREEDA is a brand name or trade mark (TM) for scarves and shawls by FAREEDA Global Resources. Our company is producing and selling exclusive shawls and scarves which are currently marketed in Malaysia but will be available at international market soon.

Our exclusive shawl and scarf designs have been registered with Intellectual Property Corporation of Malaysia(MyIPO).
Our company philosophy is to produce elegant and fashionable scarves which are distinctive compared to other scarves currently available in the market. At the same time we offer a wide range of choices at affordable prices. Our approach is simply to ensure our customers look gorgeous and elegant when they wear our exclusive scarves.

Our shawl and scarf designs are one of a kind particularly in the Malaysian market. They are branded in special collections such as NOUR SOFEA, AISYA, MARIYA, NOUR SARA, ROZANNA, SOFIYA, SARAMARISA, DANIA, MAISARAH, SURAIYA, KHALEEDA, SABREENA, MAWAR, ROSALYNDA and many more. We use very high quality fabrics such as silk chiffons and other top quality materials.

Our scarves worn by female Muslim newscasters have been featured in several TV news and programs. We recently sponsored a programme called ‘RESEPI SUNNAH’ on TV9. We have also sponsored a few famous TV dramas and programs such as ‘Hijrah Selebriti’ at ASTRO, ‘Andai Ku Tahu’ on TV9, ‘ASMARA 2’ on TV3, the reality TV show ‘Gadis Melayu’ and the live TV show ‘Nasi Lemak Kopi O’ on TV9.

OLD TOWN WHITE COFFEE

From the day our proprietary OLDTOWN White Coffee blend was formulated, it has been steadfastly carried down over the years to this day. Our white coffee are roasted and prepared according to the original method to ensure that every cup of OLDTOWN White Coffee imparts the same full-bodied taste, texture and aroma year after year. Our commitment to maintain the true essence of our heritage has helped us to create a one-of-its-kind brand that is renowned the world over.

To date, our white coffee products are exported to more than 13 countries worldwide. Our business also includes the OLDTOWN White Coffee chain of café outlets. Carrying the charm of a traditional Ipoh coffee shop, we serve a variety of Malaysian delicacies from white coffee to toasts, rice and noodles. To date, we have more than 200 café outlets throughout Asia.

geous and elegant when they wear our exclusive scarves.
Our shawl and scarf designs are one of a kind particularly in the Malaysian market. They are branded in special collections such as NOUR SOFEA, AISYA, MARIYA, NOUR SARA, ROZANNA, SOFIYA, SARAMARISA, DANIA, MAISARAH, SURAIYA, KHALEEDA, SABREENA, MAWAR, ROSALYNDA and many more. We use very high quality fabrics such as silk chiffons and other top quality materials.
Our scarves worn by female Muslim newscasters have been featured in several TV news and programs. We recently sponsored a programme called ‘RESEPI SUNNAH’ on TV9. We have also sponsored a few famous TV dramas and programs such as ‘Hijrah Selebriti’ at ASTRO, ‘Andai Ku Tahu’ on TV9, ‘ASMARA 2’ on TV3, the reality TV show ‘Gadis Melayu’ and the live TV show ‘Nasi Lemak Kopi O’ on TV9.
We have launched and produced FAREEDA Magazine.
In collaboration with KOSMO, a widely-read Malay newspaper, we organised a competition called ‘Peraduan Mencari Model Tudung Fareeda’ (Fareeda Scarf Model Search Competition). The Finales were held at Plaza Shah Alam and SACC Mall. Sales and demand for our shawls and scarves have indeed jumped marginally well due to this competition.
We actively publish and advertise our products in several top news papers and magazines such as UTUSAN MALAYSIA, BERITA HARIAN, KOSMO, HARIAN METRO, IN TREND, HARMONI, NUR, ANIS, MINGGUAN WANITA, KELUARGA and DARA.
We are also invited to events and ceremonies from various agencies such as Ministries, Universities and Corporate Companies for fashion shows and sponsorship.
Due to the increasing demand for our exclusive shawls and scarves, we have opened several outlets and boutiques in Malaysia and now we have launched FAREEDA ONLINE SHOPPE to serve our online customers and fans.
FAREEDA now has more than 1 Million fans on Facebook under its “FAREEDA..Nyata Jelita” page.geous and elegant when they wear our exclusive scarves.
Our shawl and scarf designs are one of a kind particularly in the Malaysian market. They are branded in special collections such as NOUR SOFEA, AISYA, MARIYA, NOUR SARA, ROZANNA, SOFIYA, SARAMARISA, DANIA, MAISARAH, SURAIYA, KHALEEDA, SABREENA, MAWAR, ROSALYNDA and many more. We use very high quality fabrics such as silk chiffons and other top quality materials.
Our scarves worn by female Muslim newscasters have been featured in several TV news and programs. We recently sponsored a programme called ‘RESEPI SUNNAH’ on TV9. We have also sponsored a few famous TV dramas and programs such as ‘Hijrah Selebriti’ at ASTRO, ‘Andai Ku Tahu’ on TV9, ‘ASMARA 2’ on TV3, the reality TV show ‘Gadis Melayu’ and the live TV show ‘Nasi Lemak Kopi O’ on TV9.
We have launched and produced FAREEDA Magazine.
In collaboration with KOSMO, a widely-read Malay newspaper, we organised a competition called ‘Peraduan Mencari Model Tudung Fareeda’ (Fareeda Scarf Model Search Competition). The Finales were held at Plaza Shah Alam and SACC Mall. Sales and demand for our shawls and scarves have indeed jumped marginally well due to this competition.
We actively publish and advertise our products in several top news papers and magazines such as UTUSAN MALAYSIA, BERITA HARIAN, KOSMO, HARIAN METRO, IN TREND, HARMONI, NUR, ANIS, MINGGUAN WANITA, KELUARGA and DARA.
We are also invited to events and ceremonies from various agencies such as Ministries, Universities and Corporate Companies for fashion shows and sponsorship.
Due to the increasing demand for our exclusive shawls and scarves, we have opened several outlets and boutiques in Malaysia and now we have launched FAREEDA ONLINE SHOPPE to serve our online customers and fans.
FAREEDA now has more than 1 Million fans on Facebook under its “FAREEDA..Nyata Jelita” page.
Notwithstanding, FAREEDA is undoubtedly the NO. 1 EXCLUSIVE SCARF BRAND IN MALAYSIA.

CROCS

Crocs, Inc. is a world leader in innovative casual footwear for men, women and children. Crocs offers a broad portfolio of all-season products, while remaining true to its core molded footwear heritage. All Crocs™ shoes feature Croslite™ material, a proprietary, revolutionary technology that gives each pair of shoes the soft, comfortable, lightweight, non-marking and odor-resistant qualities that Crocs fans have know and love. Crocs celebrates the fun of being a little different and encourages fans to “Find Your Fun” in every colorful pair of shoes. Since its inception in 2002, Crocs has sold more than 300 million pairs of shoes in more than 90 countries around the world. Over the past 13 years, Crocs has sold more than 300 million pairs of shoes. That’s a lot of shoes!

a. Crocs™ shoes are sold in more than 90 countries – the brand now does business in more than 30 languages. That means you can spot Crocs whether you are walking the streets of New York City, Hong Kong or London.

b. The iconic clog-style shoe that Crocs is so well known still accounts for more than 45% of Crocs footwear sales.

c. Globally, Crocs has more than 500 retail locations and continues to grow.

d. Since 2007, Crocs has donated more than 3 million pairs of shoes to people in need around the world as part of its global Crocs Cares corporate social responsibility platform.

e. Headquartered in Niwot, Colo., Crocs has more than 4,000 employees globally.

f. Crocs is traded on the NASDAQ stock market (NASDAQ: CROX).

QUESTIONS

a. What is Fareeda’s competitive advantage?

(5)

b. Do you think it has been successful in marketing this competitive advantage? Why or why not? Justify with an example.

(5)

c. How has Old Town White Coffee differentiated itself from its competitors?

(5)

d. Do you think it could survive if it were to compete with Starbucks? Why?

(5)

e. Identify Crocs’s competitive advantage with proper justification.

(5)

f. If you were to compete with Crocs, how would you differentiate your product?

(5)

(TOTAL : 30 MARKS)

ASSIGNMENT 2

PURPOSE

The purpose of this assignment is to develop learners’ ability to evaluate and write a given case study using the concepts learnt in strategic management.

REQUIREMENT

Read the articles below and answer the questions at the end of each article.

ARTICLE ONE:

Friday, 17 March 2017

CIMB eyes Jupiter Securities to facilitate JV with Chinese brokerage

bydaniel khoo

PETALING JAYA: CIMB Group Holdings Bhd is looking at acquiring Jupiter Securities Sdn Bhd from Olympia Industries Bhd for more than RM50mil as part of a larger corporate exercise to facilitate its joint venture (JV) with China Galaxy Securities Co Ltd.

Sources said that CIMB was looking at acquiring Jupiter Securities mainly to get an additional license for its stock broking business that would eventually merge with China Galaxy Securities as part of a wider exercise to expand its reach and reduce cost.

At the moment, CIMB already has a stock broking license under its investment bank (IB). However, sources said it required another license for the JV company that it is setting up with China Galaxy Securities to operate in Malaysia.

“CIMB would like to park all its stock broking business in the region in the JV with China Galaxy Securities. To do this, it would need a license to operate in Malaysia through that JV.

“CIMB IB’s license is for itself only,” a source said.

Jupiter Securities is a smallish broking firm that is loss-making and is presently a subsidiary of Main Market-listed small-cap numbers forecast operator company Olympia.

While gaming is Olympia’s mainstay business, it also has other business divisions including property and financial services through Jupiter Securities.

In the financial year ended Dec 31 2016 (FY16), Jupiter Securities posted a narrowed loss to RM1.39mil from RM2.5mil in FY15.

For FY16, Jupiter Securities raked in RM6.99mil in revenue, which was lower than the RM7.57mil revenue reported in FY15.

The financial performance of Jupiter Securities is affected by market share and trading volume, the company said.

For an acquisition price tag of RM50mil, Jupiter Securities is priced at 7.14 times sales for FY16, while its asset size is still unknown at this time. The stock broking business is generally a tough business to operate in and players usually lose money.

CIMB’s cost of running the business is estimated at RM600mil to RM700mil, noted RHB Research in an earlier report.

And these costs are expected to be lowered following the JV with China Galaxy Securities that is expected to be completed by the first half of this year.

China Galaxy Securities is one of the biggest Chinese securities companies and is listed on the Hong Kong Stock Exchange with more than eight million customers that conduct its business mostly online.

Its economies of scale and reach pave the way for it to sustain its business in the ultra-competitive world of broking. The JV is on a 50:50 basis between both the companies.

The stock broking industry in Malaysia is quite fragmented and this acquisition will be the first for this year, but in recent times, other similar acquisitions have taken place.

Last year, KAF Investment Bank Bhd successfully privatised KAF-Seagroatt & Campbell Bhd for RM248.64mil or RM2.70 a share with the purchase of the remainder of the 76.74% stake. The mandatory general offer came after KAF Investment entered into an agreement to buy a 76.74% stake in KAF-Seagroatt from Akka Sdn Bhd, Akka Holdings Sdn Bhd, Datuk Khatijah Ahmad and Thariq Usman Ahmad. The KAF privatisation was first announced in 2015.

A similar consolidation was seen in the IB space then in 2013 when Hwang-DBS (M) Bhd (HDBS) sold its IB business to Affin Holdings Bhd for RM1.36bil.

HDBS also sold its 51% stake in its equity research unit to Alliance Financial Group Bhd for RM393,945 cash. Other standalone smallish stock broking companies that are in the market with a licence to operate in the local IB space include SJ Securities Sdn Bhd, Mercury Securities Sdn Bhd, TA Securities Holdings Bhd and M&A Securities Sdn Bhd.

a. Identify the mainproblem in the case.

(5)

b. What strategy is CIMB thinking of using? Include excerpts from the case.

(5)

c. Do you think that the strategy in (b) is justified? Why or why not?

(Include excerpts from the case and justification based on strategic management concepts covered in your module).

(10)

ARTICLE TWO:

Nation

Friday, 17 March 2017

Utar among top 120 Asian Universities

KUALA LUMPUR: Universiti Tunku Abdul Rahman (Utar) has for the first time joined the ranks of the top 120 bracket of Asia Universities ranking 2017 by Times Higher Education (THE).

Universiti Malaya, a new entrant in the top 100 list, was placed at 59th.

Other Malaysian universities to make it in the ranking are Universiti Teknologi Malaysia and Universiti Putra Malaysia (within the 121-130 band), Universiti Teknologi Petro­nas (141-150 band), Universiti Sains Malaysia (151-160 band) and Universiti Kebangsaan Malaysia (161-170 band).

Universiti Teknologi MARA and Universiti Utara Malaysia ranked at 251+.

THE rankings editor Phil Baty said it was great news that Malaysia has more than doubled its representation in this year’s ranking of Asia’s best universities, claiming nine places in the top 300 list, up from four last year.

“Overall, this ranking of Asia’s best 300 universities proves what a dynamic, diverse and competitive higher education region the continent is becoming,” he said in a statement.

Malaysia is a key part of that development but must make sure it does not get left behind, he added.

THE World University Rankings are the only global performance tables that judge research intensive universities across teaching, research, knowledge transfer and international outlook. — Bernama

QUESTIONS :

a. What is the main issue discussed in the article? Explain.

(3)

b. Search the internet for UTAR’s webpage. What is UTAR’s main competitive advantage?

(5)

c. What are its main strengths? What opportunities do you forsee for UTAR in the future?

(Discuss 4 main strengths and 4 opportunities)

(32)

d. What strategies would you recommend to UTAR based on the strengths and opportunities identified above?

(10)

(TOTAL : 70 MARKS)

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