1.

0 Introduction
As we know, Sunway Group Berhad is one of the famous listed companies in Bursa Malaysia and which is having a lot businesses in different sectors such as education, hospitality, engineering and construction, property development and etc. Except operate in Malaysia, Sunway Group Berhad is also setting up their businesses in Singapore, Indonesia, Australia, and others countries. Sunway Group Berhad has become one of the formidable property-construction groups in Malaysia.Thus, we have decided to focus on Sunway City Berhad (SunCity) which their main activity is based on property and developments.A strategic analysis and formulation will be conducted in order to have a better understanding regards the strategic management of SunCity. There are some barriers and limitations which we are faced such as the details of the companys business operation is not much, the information regards their actual practices is limited, and we are also not familiar with the property sector of business. To complete this report, there are 3 types of analysis that we are going to carry out which are general environment analysis, Porters Five Forces Analysis and SWOT analysis. The first analysis we are going to carry out is General environment analysis and it consists of internal and external factors. Normally, this analysis is used by the marketers to analyze the internal and external factors or outside forces and trends that which might be affect the companys business operation or affect the progress of organizations business plan. Next, Porters Five Forces Analysis will be conducted to identify the competitive power of the business in the industry by knowing the companies strengths and improve the threats of the company. Porters Five Forces Analysis consists of 5 competitive forces such as threats of new entrants and substitute products, bargaining power of suppliers, bargaining power of consumers, and rivalry among competing firms. Furthermore, SWOT Analysis will be conducted to identify the strengths, weaknesses, opportunities and threats of the company so that the company can have a better understanding about their companys strengths and weaknesses, and make improvement for the weak parts.

2.0 Background of Sunway City Berhad

Sunway City Berhad or called as SunCity was listed as a private listed company in Malaysia on 13th July 1982 as Sri JasaSdnBhd and after that changed the name to Sri Jasa Development Corporation SdnBhd on 1st December 1986 and Bandar Sunway SdnBhd on 25th July 1987. However, on 24th July 1995, this company is listed as public listed company and named it as Sunway City Berhad on 2nd April 1996. SunCity was successfully been listed in Bursa Malaysia on 8th July 1996. SunCity has divide into two division which are property development division and property investment division. SunCity is a dynamic and integrated Malaysian property organization. Sunway Berhadhas assigned SunCityto manage all the properties and real estate investments. SunCityis operating in 6 segments which including property development (residential and commercial properties), property investment (management and operations of the shopping malls and letting properties), leisure (entertainment, theme parks, agency for travel), hospitality (operations and management of hotels), health care (operation and management of medical center), and REIT (management of investment fund for the real estate). SunCityhave the vision of being a company who more focus on the quality of the real estate development and invest in the properties with attractive yield which can bring excellent returns to the shareholders of company. SunCity shall achieve the vision by achieve the goals such as providing customers superior and innovative products and services tofulfill the needs of the customers; develop and build an environment and a culture that can promote excellence and dedication to the shareholders, and fully utilized the latest technology to enhance the competitive advantage of the company. Moreover, the mission of SunCity is to create a conductive environment for living, leisure and working by transforming the older landscape or environment into a fresh, new and well-designed structure to increase and enhance the value.SunCity is committed to satisfying the expectation of its stakeholders such as loyalty to customers, trust the employees, maintain good relationship with suppliers, protect shareholders investment and strive for nation and community.

3.0 Situation Analysis 3.1 General Environment Analysis Organizations are affected by the conditions in the environment. From time to time, manager need to aware of these conditions in the environment to take advantages of the opportunities that can help company to increases their profit and reduce or avoid the impact of possible threats that can harm our company. In here, we are looking the general environment in five segment which are economic, demographics, socialcutural, legal, technology, global and physical environment segments. Economic Segment Economic segment refers to the nature and direction of the economy in which a firm competes or may compete. Economic factors can have a direct impact on the potential attractiveness of various strategies. In general, a firm seeks to compete in relatively stable economies with strong growth potential. This is because nations are interconnected as results of global economy; firm must scan, monitor, forecast and assess the health of their host nation and the health of the economies outside their host nation. In 1982, Sunway City was in corporate as a private limited company in Malaysia. It also converts to a public listed company in 1995 and currently has a market capitalization of over RM 2.3 billion. It has made its mark in industry by become the first integrated real estate conglomerate when it successfully listed Sunway REIT on the Bursa Malaysia. Sunway City performs all the economic functions in the most efficient and productive manner, and employing optimal use of current technology. They protect their shareholders investments, and provide them a sustainable return, and give them confidence in corporate governance through accountability. In order to achieve that, gains support from a healthy economy trend is necessary. There are several factors to the economy must take into account to find out the economy trend of a country in term of inflation effect, unemployment rate, saving rate and spending rate. If the inflation rate is high, the price of the property will raise and sales value of the company will increase. Usually inflation rate is measured by Consumer Price Index (CPI) which is updated price to the constant base price consumed by consumers from period to period of time. Unemployment rate is determined by total unemployment labour workforce divided by total
3

labour workforce. High unemployment rate indicates a country economy went into recession status and company sales of property will be affected as well. Spending rate usually determined by GDP. According to the Malaysian Economy data figures in 2012 provided by Economist Planning Unit, Malaysia GDP has increased from RM 709.3 billion in year 2011 to RM 740.9 billion in year 2012. The increase in the GDP means the greater the spending power of the Malaysian compare to last year. Because of the spending power increased, people may seek to spend on long term investment including property. This trend may drive the company sales to higher level. Other than the spending rate, saving rate may also affect the property sale. The lower the saving rate means the less attractive for the people to deposit their money in bank and encourage them on spending or investing. More than that, growth forecast for Malaysia economy may further increase 5.4 percent in year 2013 according to data provided by Malaysia Institute of Economic Research unit. So that, overall of Malaysia economic have growth confidently from year to year. It is a good opportunities for further business expansion in Malaysia. Demographic Segment As we know that demographic segment is concerned with a populations size, age structure, geographic distribution, ethnic mix, and income distribution. Sunway City is belongs to property development and investment as well as investment holding organization. It remain single-mindedly focused on one pursuit which to be a premier property developer in Malaysia and overseas. Sunway City has completed many projects and development schemes in over 20 localities in Malaysia and overseas. It operates in five segments such as property development, property investment, leisure, hospitality, and healthcare. For property development, it included in the development of residential and commercial properties. Sunway City constantly takes steps to deliver products and services of unrivalled quality and value for its customers. For property investment, it holds a portfolio of quality retail and commercial, hospitality, leisure and entertainment, and healthcare properties which is act as an international-class investment and commercial property player in the region. Sunway City currently owns and manages total net let table areas of 4.86 million square feet of commercial properties which include Sunway Pyramid, Sunway Carnival Shopping Mall, Menara Sunway, Sunway Tower 2, Sunway Giza Specialty Centre, Monash University Sunway Campus and Sunway University College. For leisure, it owns and manages in
4

the operation of theme parks, rendering recreational club facilities, travel agent and time sharing businesses. For example, Sunway City manages two award-winning theme parks, such as Sunway Lagoon and Lost World of Tambun in Ipoh as well as other businesses like Sunway Healthy Lifestyle, Sunway International Vacation Club and Sunway Travel. For hospitality, it involved in the management and operations of hotels, For example, Sunway City manages a collection of 16 hotels and resorts that encompassing 3 hotel brand names such as Sunway Hotels & Resorts, Allson Hotels & Resorts and the Banjaran Hot springs Retreat. For healthcare, it involved in the management and operation of a medical centre. For example, SunMed is the one of the most foremost private medical care centers in the nation with a total of 335 beds, more than 100 consultation suites, 12 operation theatres and a multi-storey car park with 750 parking bays. According to the Central Intelligence Agency department of US, it provides that population in the world is increasing by year to year and the total population in year 2012 is increased 1 billion by compare to population which amount to 6 billion in year 1999. In Malaysia, the population has increase from 28.6 million in 2011 to 28.9 million in 2012. This increased three hundred thousand population is an opportunity to the property business organization because it needs more place to fit more people. The increased population may indicate the increase of household. Household is always a targeted market for residences development project especially the LOHAS consumers. LOHAS is an acronym for Lifestyles of Health and Sustainability and LOHAS consumers refer to those who are passionate about the environment, sustainability, social issues, and health. Beyond just homes, SunCity Berhad also target branded retail store for the shopping complex, target business organization for the premium office buildings and so on.

Political/ Legal Segment Political segment is the area in which organizations and interest groups compete for attention, resources, and a voice in overseeing the body of laws and regulations guiding interactions among nations as well as between firms and various local governmental agencies. It is represents how organizations try to influence governments and how they try to understand the influences of those governments on their strategic actions. If the government subsidizes the cost of medical services, it will affect the hospital since their service will be made cheaper. Besides, it also will affect the productivity of the hospital because of the cost sharing policy by the government. Therefore, Sunway Hospital should work closely with the government to make sure that enter to a sort of partnership with them to promote Malaysia as an attraction for medical services. It also will increase turnover in the business. So that, the entrance of these private institutions provide a challenge to Sunway Hospital as a private hospital as well as they tend to have similar practices and competition for the customers will be high. In Malaysia, the developers of private entity, statutory bodies and co-operative societies which involved in housing development are governed by the Housing Development (Control and Licensing) Act 1966 (HAD). Moreover, the institutions related to the buildings of quality houses, namely the Ministry of Housing and Local Government (MHLG) and the Construction Industry Development Board (CIDB), to ensure the houses constructed by developers will meet the quality that house-buyers expect. In addition, government could help in funding and provides the contract opportunities for company to go broadly. In order to work closely with the government, it is necessary to registered as Federal Contractor to earn the contract from government for public construction work. For the sake of win the contract from the government, meet with the decision makers for the federal contracts to explain the business proposal that is advantages to the government and convince the government with the reason of which the company is eligible to the contract. Company may matching its strengths to what is needed on the project and mitigate the risk by not over obligating itself in the weakest areas.

Sociocultural Segment Sociocultural segment is concerned with a societys attitude and cultural values. This is because attitudes and values form the cornerstone of a society; they often drive demographic, economic, political and technological conditions and changes. Sunway City views the community-based projects as a good avenue to have direct interaction with local community to generate economic and social vibrancy. Moreover, SunCity Berhad had considered the fact the Malaysians uphold strong family values and practice filial piety across culture. Thus, the homes had been built to comprise this culture, incorporate sufficient space for families to host their extended family. Besides, Malaysian is seeking for higher standard of living and quality lifestyle. Therefore, SunCity Berhad instills the LOHAS philosophy into its property development to satisfy the consumers and increase the value of the property. According to the managing director of the SunCity Berhad, families want a home that facilities positive growth and nurtures from all aspects in term of health and fitness, sustainable living, environment, personal development and social justice, thus integrating the LOHAS philosophy will enables that growth. For example, for the personal development and health and fitness pillar, there are the development features walkway, cycling paths, wide linear parks, playgrounds for children, and even a football field which allow families to indulge themselves in physical and leisure activities together. Most of the consumers expect their houses to be safe, modern and with technological infrastructure. Thus, the development has concealed drains, pre-installed security alarm systems and auto gate point for the residents security and convenience.

Technological Segment Technological segment includes the institutions and activities involved with creating new knowledge and translating that knowledge into new output, products, processes, and materials. As long as the technology is becoming part of humans lifestyle, therefore, Sunway City Hotel need to be equipped with these for security or being connected to others via broadband. If Sunway can come out a unique security system, they should get it patented so that it is only company with that special technology. Technology also improves Sunway Hotel with the opportunities of development either in the physical building of itself to build with technology of
7

convenience products and services to the customers through innovations. For example, a 5D theatre will be introduced at the Amusement Park at Sunway Lagoon which to bring the cinematic experience to a surreal level with emphasis placed on the sense of touch and smell, in addition to state-of-the art audio and 3D visual technology.

Global Segment Global segment includes relevant new global markets, existing markets that are changing, important international political events, and critical cultural and institutional characteristics of global markets. The global housing market trend in year 2012 shows that most of the AsiaPacific region countries results the decline in housing price and not many of the western countries results the increase in housing price result according to the data analysis on Global Real Estate Trends provided by Scotiabank. The related Asia-Pacific countries mentioned above are Australia (-2%), Japan (-2.5%), Indonesia (-0.1%), India (-5%) and so on. The related western countries are Columbia (+11%), United State (+8%), Switzerland (+7.5%) and so on. There are global real estate forecast trends for 2013 such as the real estate prices will increase, sales of property will go up, homebuilding will grow and sellers inventory of property will rise. Economists at California State University, Fullerton (CSUF) say prices will rise from 5 percent to 7 percent and Economists at Chapman University say prices will rise from 5.8 percent to 6.8 percent in year 2013. This is because the new construction of homes and apartments need to keep up with population growth. Therefore, the homebuilding will grow in the market in order to fit the demand and the property sellers are needed to increase their inventory. The amount of new constructions can be average of more than 1.25 million in this year which predicted by economist of National Association of REIT. Because of the effects incurred by increase in prices of the real estate, it raises the sales of the real estate as well. Some investors would like to buy more housing property since it provides better return in value. In addition, some industry predicted that more young people will move out from their parents homes and that will trigger the demand of the homes and thus raises the sales. As the forecasts mentioned above, it shows a good sign of opportunity for Suncity to increase their property development in this year.

Besides, the Sunway City establishes itself to become a global and leading integrated property player. They formed effective strategic alliance with various overseas business partners to provide greater product offerings and services. They currently have expanding their presence overseas in fast-growing economies, including India, China, Singapore, Cambodia and Vietnam. One of the most significant corporate initiatives was the Sunway City had been selected by SinoSingapore Tianjin Eco-City Investment and Development Co Ltd (SSTEC) to participate in the project in China with a gross development value of RM5 billion to be developed over a period of five years. They were the only Malaysian developer amongst other leading international property players from Japan, Taiwan, Hong Kong, Singapore, China and Philippines to be part of the project. The Sunway City believes their experienced and competent international management team will be able to lead the way to strengthen their status in the globalised environment.

Physical Environment Segment Physical environment segment refers to potential and actual changes in the physical environment and business practices that are intended to positively respond to and deal with those changes. Regardless of the business has multiple locations such as big office, a small office or simply a space, it has physical environment that influence it in many ways. There was around 70% of property project located in Malaysia while the balance of 30% was located overseas. Despite there is so many development project has already launched by Sunway City, the company always held Go Green concept in developing the property. For Sunway City, building green homes is not part of the marketing strategy. They considered this as a responsible for corporate citizen, they execute on green concept to not only save the environment but also because of the customer request for it. Sunway City has two developments which of being awarded the Building and Construction Authority of Singapores Green Mark certification, they are Sunway Palazzio and Sunway Challis Damansara. The green features in the Sunway Palazzio have deep balconies for sun shading, large window to promote natural light and self-cool strategies such as insulated roof, ventilated roof space and cavity wall. With these green features, there are more two million kWh of electricity can be saved in a year which translate to RM 625,990 and 1250 tonnes of carbon dioxide saved or an equivalent of 57,000 trees, according to the Managing Director of Sunway City.
9

3.2 Industry Conditions (Porters Five Forces Analysis) Porters five forces model helps in accessing where the power lies in a business situation. And help company in analyzing the attractiveness in an industry structure. It let you access current strength of your competitive position and the strength of the position that you are planning to attain. This model is considered an important part of planning tool set and used widely across industries. After the analysis company can know where they are and take advantages of their strength and improve their current weaknesses. There are five competitive forces that identify the competitive power in a business situation. These five competitive forces are:

Rivalry among competitors This is usually the most powerful among the five competitive forces. The intensity of rivalry among competitors tends to increases as there are numerous or equally balanced competitors, High fixed costs, lack of differentiation or switching costs, high strategic stakes, high exit barriers. The intensity of rivalry among competitors is considered as average for Sunway City Berhad. The main reason of it is the growth rate of the industry is high and as shown in the annual report, Sunway City Berhad is also experimenting a high growth in property development. Besides that, Sunway City also having a few competitors which almost same size which compete for the same customers and resources such as IJM Land, SP Setia Berhad, IGB Corporation Berhad and YTL Land & Development Berhad. These property developer have also develop a lots of property and gain a lots of market share in property development. YTL Land & Development Berhad was one of the largest companies listed in Kuala Lumpur Stock Exchange (KLSE) which has a strong financial power. While IJM geographically diversified landbank allows for unique product mixes and project launches based on market demand. Besides, S P Setia is an award-winning public listed company and a market leader in property development. Their products range from landed properties to high-rise condominiums as well as commercial centres. IGB Corporation Berhad prides itself on its continued local community support and involvement. There are the competitors offer almost the same types of property to compete with Sunway City Berhad, thus, it becomes a threat of substitute products to Sunway City Berhad. Although there are companies which almost same size with Sunway City Berhad, but this is also a good sign to it as it will
10

cause a healthy rivalry among competitors and will let the buyer to compare the property with the different developers.

Threat of new entrants When there are new firms enter the industry the intensiveness among firms increases. The barriers to entry prevent the threat of new entrants. The barriers to entry for this industry are: -The economics of scales is not easily archived by new firm, company wish to achieve this have to having a high advance of technology and quality workers which not easily to train and get in a short period of time. - Capital requirement to enter is very high. To build a property development company is very hard as it required lots of financial requirement and also human capital. - The access to the distribution channels is hard. In order to become a top property development company, the access to the distribution is very importance to minimize the cost. - Government policy. In Malaysia, there are many rules that guide the property development likes National Land Code (1965), Land Acquisition Act (1960) and Environmental Quality Act 1974. That is not easy to obey all the rules and it becomes a barrier to the new entrants. For the Sunway City Berhad, we found that the threat of new entrants is low as it is a company which has being incorporated for at least 20 years in Malaysia. Besides that, Sunway City Berhad is not only doing property development in Malaysia but it also involves in property investment. Besides that, we saw in the annual report of Sunway City Berhad stated that it having a high growth property in property development and also a high yielding in the property investment.

Bargaining power of suppliers The bargaining power of suppliers will be high when there is large number of suppliers, few good substitute raw materials and switching raw materials is especially costly. The bargaining
11

power of suppliers of Sunway City Berhad is low as the Sunway Group having its own building materials division. This meaning that the supplier of Sunway City Berhad is actually from company which under the same group. The building material division contains concrete, clay pipe, concrete pipes and also piles which is the main materials which need to be used in property development. As what we found in the Sunway group website, in Malaysia, the concrete which from the building material division having almost 70% of the market share and it has been growing in China too.

Bargaining power of buyers The bargaining power of buyers is average for Sunway City Berhad as it is not the only property developer in the market. The buyers always required a good quality property at a lower price as they can compare the property of Sunway City Berhad to others property from the competitor of Sunway City Berhad. Besides that, the prices for the property of Sunway City Berhad are always at the high side, thus, the buyers will bargain or expect for a higher quality of the property and also more specialties on its property. However, Sunway City Berhad always offers a product differentiation with quality property and high return of investment and the good reputation brand image has caught the heart of investors.

Threat of substitute products Substitutes mean products in other industry. In many industries, firms are in close competition with producers of substitute products in other industries. For example producers of sugar face the pressures from artificial sweeteners. However, unlike sugar, the threat of substitute products for Sunway City Berhad is low as there are not many substitute product for property out there. There are just a few big developers out there such as IJM Land Berhad and SP Setia Berhad that are same industry with Sunway City Berhad. These property developer have also develop a lots of property and gain a lots of market share in property development.

12

3.3 SWOT Analysis The SWOT analysis or called as SWOT matrix is an important and effective tool for organizations to identify internal and external factors which can affect the decision making and the planning process of the organization. It helps to evaluate the current position of the organization and to achieve the objectives of the organization. SWOT analysis used to evaluate strengths, weaknesses, opportunities, and threats. Internal factors viewed as strengths and weaknesses while opportunities and threats are the external factors. Strengths a) Good Reputation SunCity received many awards such as Edge Billion Ringgit Club Weaknesses a) Lack improvement of existing

standards In order to maintain competitive advantage, SunCity needs to improve and revise the existing standards from the viewpoint of its wide range of stakeholders which includes

Corporate Awards Gala Dinner 2011 as the most profitable company with highest return of equity over three years in the property and REIT sectors; Asias Best Attraction Award (2007 to 2010); Golden Pony Award in 2002 by Games & Parks Industry in leisure sector internationally;

employees, customers, shareholders, suppliers, and investors.

b) Poor diversification Sunway City is more focuson three main segments which are Property Development, Hospitality and REIT. On year 2010, Sunway City incurs a loss in Healthcare Segments. Based on the Geographical Segments, total revenue generated in Malaysia and Asia (excluding Malaysia) is decrease from year 2008 to 2010.

National Tourism Award 2008/2009; Malaysias Most Valuable Brand Award by Interbrand of and the

Association

Accredited

Advertising Agents Malaysia; Brand Laureate Conglomerate Award by Asia Pacific Brands Foundation and few more awards.

b) Trustable brand Sunway City recognized as one of the

13

Unfortunately, Sunway City just own 16 hotels and resorts in Malaysia with

top property developers in Malaysia for the eight consecutive years due to the Edges Top Property Developers Award. These all awards and accolades reflect the Sunway Citys strong positioning as a dynamic and integrated Malaysian property.

only 3,400 numbers of guestrooms. Sunway Citys Leisure segments are only generates RM 21 Million with 100 acres park size only.

c) Poor in offering comprehensive range of medical services Sunway Medical Centre has weakness

c) Opportunity to growth SunCity involved joint venture in Sino-Singapore Tianjin Eco-City

in offering comprehensive range of medical services due to its single location medical centre. In Malaysia, ratio of doctors and patients still very low compare to developed country. Sunway Medical Centre also facing shortage of medical personals and highly experience medical specialists.

project in China with Sino-Singapore Tianjin Eco-City Investment and Development Co Ltd (SSTEC), the master developer. Although Sunway City only develop 102 acres out of the 7,400 acres, but it can leads to a chance of work together with the master developer. d) Good relationship with suppliers This can ensure business chain model is conduct to properly end. from Under the the

beginning

procurement policy, the procurement team plays an important role in building long lasting relationship that benefits both parties.

e) Good relationship with customer SunCityprovides training to

14

employees to fulfil the needs and expectations of the customers to build a high level of trust. It will help in the long run. Customer satisfaction is the forms of foundation of any organizations success. Opportunities a) Opportunities to launch new project Few projects such as Sunway Threats a) Barrier in new market Since SunCity has cooperated with other countries such as the Sino-Singapore Tianjin Eco-City project, country risk may arise to the changes in laws and

Velocity and Sunway Nexis are launch nowadays. Sunway Velocity located within 3.8km from the City

prosperous

Kuala

Lumpur

Centre which growing expertise in developments. Sunway Velocity fulfills todays modern lifestyle which comprises retail shops, office suites, service apartments and over 1 million square feet lifestyle shopping mall. Sunway Nexis is another integrated commercial development consists of 3-storey retail shops, 12-storey office suites and a 20-storey flexi office block in 5.83 acres of land. Sunway Nexis is a complete lifestyle centre which consists of entertainment,

regulations. SunCity has to adopt and understand and of the culture, economic the other

political development countries.

b) Rise of exchange rate The exchange rate between

countries will arise due to the impact of currency fluctuation risk, interest rate risk, and other risks related to the external

financial market.

leisure, and work facilities. Lost World Hotel of Tambun is opened with 127 hotel rooms and 27 service apartments which provide a truly and experience of township for local and
15

c) Lack of professional or specialists Another Medical threat Centre for is Sunway lack of

qualified doctors and specialists.

international tourists.

This situation is getting worse when many new private hospitals

b) Joint venture and new development market lead to become best developer in the world SunCity hopes can bring the brand overseas.SunCity expands the good reputation brand to China and India. These two countries are the two of the worlds fastest growing economies country. So, SunCity have the

from oversea are setting up their branches in Malaysia. For

example, Columbia Asia Medical group are setting up another 4 medical centers in the country and this will cause the shortage of human sector. resources in medical

potential to success in the world by expanding the investment in China and India.

c) Expand in a developing market SunCity has found out Penang and Johor which have a greater

opportunity and potential to develop. Penang is a strategic location and Johor has a huge population and high economic growth. Thus, SunCity aims to develop about 65 acres freehold land can be developing into a residential and commercial property.

d) Develop

commercial

mixed

development Sunway City is planning to develop a commercial mixed development with 240,000 nett square feet of floor area
16

and 900 car park bays adjoining Sunway Pyramid. A 5D theatre will introduced at the Amusement Park at Sunway Lagoon which brings the senses of touch and smell. This will attract many tourists since that it was the first 5D theatre in Malaysia.

17

4.0 Strategic Options for the Organisation As Johnson and Scholes states that strategy is the direction and scope of an organisation over the long-term, which can achieves advantage for the organisation through its configuration of resources within a challenging environment to meet the needs of markets and to fulfill stakeholder expectations. The strategic options that we proposed are based on the SWOT analysis method for the Sunway City Berhad. As we know that Sunway City is the well knownorganisation in the market. The reputation of Sunway City is extremely good as we state in SWOT part. Sunway City is also recognized as one of the top property developers in Malaysia for the eight consecutive years due to the Edges Top Property Developers Award. Therefore, Sunway City should take the opportunities to expand their blueprint to the Asia country. As we know that, most of the Asia countries are the developing countries. For example, China and Singapore are the world fastest growing economic countries that will attract many foreign country investors. In the joint venture project in China that is not about an earning project but it also helps Sunway City gain more experience by exchanging the knowledge of the technology and exchange design idea with talented designer that comes from different countries. So, we believe that putting more resource and effect on expanding the Asia market, especially in China that will be able to earn a better financial position of the company, exchanging the experience and technology with the foreign company and even improving the good reputation of Sunway City to the oversee market. We believe that Sunway City will be the world wide Property Development Organisation by achieving the goals steps by step. On year 2010, Sunway City incurs a loss in Healthcare Segments because Sunway City having a shortage of medical personal. Sunway City is not the only one of facing the shortage of the medical personal, most of the medical centre of Malaysia also facing this problem. According to the Star newspaper public in year 2010, Malaysia continues to face a shortage of doctors, with the ratio falling short of the 1:600 standard set by the World Health Organisation (WHO). According to the Deputy Health Minister DatukRosnah Abdul Rashid Shirlin, the Malaysian ratio in year 2009 was 1:940 which are having a quite serious shortage of the doctors. Because of shortage of medical personal in Malaysia, Sunway City hard to hiring enough of the medical personal to provide medical service in the healthcare segment. In the social perspective,
18

Malaysias population is expected to grows from current about 26 million to 32 million by 2020, the healthcare sector is expected continue to grow. On top of this, a large portion of older age of 65 years and above population will increase the demand for healthcare services. Thus, we would like to suggest that Sunway City have to consider that invest in the education segments. Sunway City can invest a university to provide the education information in medical. By this way, Sunway City can attract many graduated medical personal to work in their organisation and solve the shortage problem. Besides that, organisation will be more diversification by having an education as another segment of the organisation. Diversification can reduce the business risk and maximize the organisations revenue. Sunway City might reduce their risk, for example, while some of its business segment may not performing as per the expectation, the revenue generated from others segment can be used to support activities of other business activities. This will reduce the income fluctuations from one period to another period. Thus, Sunway City may have an additional business opportunity with enter to different segment. This opportunity can help the company target new customer and explore another new market. One of threats facing by the Sunway City is the most common happen to all the organisations, which are challenge from the competitors. Due to the development and medical having a high return of profit margin, thus, many companies are trying to enter to this industry. As what we state, Sunway City having a very good reputation in the development industry, thus Sunway City has the leverage to perform the strategic alliances. As what we learn from the class, we know that strategic alliance is when two or more entity join together for a period of time to pursue a set of agreed upon goals or to meet a critical business need while remaining independent organizations. As our research, we find that there are 3 types of strategic alliance, which are joint ventures, direct cooperation and also minority interest. We feel that a very open minded joint ventures strategies may helping the organization winning the competitive advantages in this competitive market. Most of the time a development project is involving such a huge amount, having a joint ventures policy may reduce the risk of the project. Sometime, Sunway City is not enough funds to undertake a project. So the joint ventures will able to save their capital, and solve the inadequate of resource to undertake the project. Besides that, joint venture may able to cover any insufficient knowledge and technology of Sunway City. For example, Shell offer a project to Sunway City which are develop a big storage for oil tank, but Sunway City are not capable in build the oil tank, thus they having a joint venture agreement
19

with the Rotary Engineering Limited to fulfill each other inadequate. Moreover, Joint venture wills able give more confident to the owner. For examples, if an owner having a development site, the owner invites all the developer to bid with the project. Normally, joint venture will give more confidence to the project, because the owner wishes to distribute the risk to more organisations. As a conclusion, open-minded joint ventures are able to increase the competitive advantages to the Sunway City.

Besides that, we found that Sunway City not performing well in healthcare segments is because of the organisation putting not enough resources on the medical part. As the SWOT part states that Sunway Medical Centre only offering comprehensive range of medical services at a single location medical centre. While other competitor such as Columbia Asia Medical group already set up 10 medical centres in Malaysia. Due to the increasing of the intensity of rivalry among competitors, Sunway City shall put more resources to build up the medical facilities. We know that Sunway Citys main segment is development, so using too much resource in other segment will affect the company facing the high risk transforming. Thus, we suggest that Sunway City shall have differentiation in their development segment, which are built the medical centre in their development project. In other words, competitors develop a housing development or shop house development, but Sunway City able to differentiation their development with build up a City. For examples, Bandar Sunway, which are project develop in year 1986. In this Bandar Sunway, the organisation not only develops a housing area, and the shop house, but organisation also develops hotel, shopping centre, theme park, education centre and even the health care centre. As we know, this project not only help organisation to win a lot of profit in the financial term, and also improve the well know of the organisation. Besides the improving in the financial position and reputation of the organisation, the organisation also able to improving in different segment, for examples, they also able to improve the health care segment. We believe that Sunway City shall continue this strategy to differentiate their development with other competitor.

20

APPENDICES External Factor Evaluation Matrix (EFE) Weight Opportunities reduction of barriers to entry expanding their presence overseas in fast-growing economies (India, China, Singapore, Cambodia and Vietnam) back up by competent management team which able to lead the way to strengthen their status in the globalised environment joint venture with oversea companies and a new developed market add competitive advantage against local competitors expand in developing market ( fount out Penang is a strategic location and Johor has a huge population and high economic growth) all of the business proposals are designed to meet expectations of both foreign and local multinational companies develop of a commercial mixed development the most profitable company with highest return of equity over three years in the property and REIT sectors good reputation in property development industry Threats in the globalization of markets, there will be a greater foreign competition in overall of the business. high exchange rate lead to higher risk exposure (currency fluctuation risk and interest rate risk) many new private hospitals from oversea are setting up their branches in Malaysia cooperate with oversea companies expose to some risk due to unfamiliar with every countries' law and regulation Total 0.10 0.10 0.07 0.10 3 4 2 3 0.30 0.40 0.14 0.30 0.07 0.08 3 3 0.21 0.24 Rating Weighted score

0.10

0.40

0.07

0.21

0.06

0.12

0.07 0.07 0.05 0.06

3 2 2 3

0.21 0.14 0.10 0.18

1.00

2.95

21

Internal Factor Evaluation Matrix (IFE) Weight Rating Strengths Management team focus on the quality of the real estate development and invest in the properties relatively stable economies with market capitalization of over RM 2.3 billion ( financial position of company is relatively good) have a experienced and competent management team significant growth in the hospitality and tourism industry in Malaysia work closely with the government to promote their medical service and take opportunity to boost revenue able to meet quality expectation through development process work in team to produce superior and innovative products and services procurement team builds a good relationship to suppliers to ensure business chain model is conduct properly Weaknesses facing shortage of medical personals and highly experience medical specialists put more concentration on three main segment only (property development, hospitality and REIT) poor in offering comprehensive range of medical services due to its single location medical centre poor diversification in each segment Lack improvement of existing standards and company policies Total 0.07 0.09 0.07 0.06 0.07 1.00 1 2 2 1 1 0.07 0.18 0.14 0.06 0.07 2.95 0.08 0.07 0.08 0.06 0.07 0.09 0.08 0.11 4 4 4 3 3 4 4 4 0.32 0.28 0.32 0.18 0.21 0.36 0.32 0.44 Weighted score

22

5.0 Recommendations From our discussion, we had identified some of the strategic options that suitable for Sunway City Berhad, so I would like to recommend which one of the strategic is the best to use for Sunway City management to improving their business. Basically we are strongly emphasized on strategic with expanding the business to the Asia as well as to the world. Sunway City can provide the education to their staffs and specialists for improve knowledge, this can enhance their employee competitiveness. They can strengthen their company to compete with their competitors by strategic alliances with the fraternity party, and the other strategy is differentiated. Quantitative Strategic Planning Matrix (QSPM) is a high-level strategic management approach for evaluating possible strategies and provides an analytical method for comparing feasible alternative actions. Therefore, I would like to use the quantitative strategic planning matrix method to compare 4 strategy which I mention just now and select the best strategy among them. This technique is designed to determine the relative attractiveness of feasible alternative actions. First of all, we have to develop a stage 1 (IFE.EFE) which make a list of the firms key external opportunities/threats and internal strengths/weaknesses in the left column. After that, the next step is assign weights to each key external and internal factor. The third step is examine the stage 2 (matching matrix) which we use SWOT matrix and identify alternative strategies that the organization should consider implementing. Then, we had determined the attractiveness score and follow by the step compute the total attractiveness scores. Lastly, we computed the sum total attractiveness score. We can came to a conclusion that differentiated is the best option and be more effective strategy among 4 strategy after doing some calculation in the QSPM. The results actually take from the Sum Total Attractiveness Score Figure. As we can see, differentiation has the highest score compare the others which is 5.19. Differentiation strategy means the company tries to be different from others in terms of their products, services, ideas and etc. Sometimes, creativity and innovation that can make life challenging and meaningful are important in a business because it can decide the future of the company. For example, Sunway City Berhad has the existing strategy to develop an area become alike their empire. They have

23

their facilities and building under Sunway brand name such as Sunway Lagoon for Water Park, Sunway Pyramid shopping centre, Sunway University and hospital. As I know, there is no other developer are using their own brand name for their construction. This idea is creative and special. I would like to recommend Sunway City Berhad to develop in more places and have more facilities, although this strategy had been implemented by them. In our opinion, they can build a city with better organized and more advance. They can try to divide their city into 4 sections which are industrial zone, medium residential, light commercial and farming area. They can improve the park systems and transportation. For example, bus stops and connections to neighboring cities. By putting all these effort, Sunway City can try to get a bunch of high wealth residents in their city. They will continue supporting Sunway City and the company can become stronger in sustainability and well growth.

24

6.0 Conclusion
From the research through the Sunway City Berhad, we can determine the strategy is played an important role to affect an organization development and change. Normally, the strategy formulation includes developing organizations vision and mission, conduct situation analysis which is determining organizations internal strengths and weaknesses and identifying an organizations external opportunities and threats, generating strategies option and choosing the particular strategies to implement. A good strategy formulation allows the organization to allocate well in limited resources and make effective decision to expand their business. From the analysis, we explored and understand that Sunway City Berhad is a strong, huge and famous property listed company in Malaysia. There are operate business in six type of segment: property development, property investment, leisure, hospitality, healthcare and real estate investment trust (REIT). The overall analysis from the general environment state that Sunway City Berhad is significant to growth and expand well in future, especially perform in tourism and hospitality industry. Due to improve and expand in the tourism, Sunway City Berhad is planning to build up a 5D theatre in Amusement Park at Sunway Lagoon. Moreover, the threat of new entrance and the bargaining power of supplier for the Sunway City Berhad are consisted as low range, while bargaining power of consumers, threats of substitute products and intensity of rivalry among competitors are consisted as average rate. Apart from that, the key finding from analysis is the weakness in development and management of the healthcare segment which consist the shortage of medical personals, lack of medical resources and only providing medical centre in specific location compared with their direct competitors. With implement to gain competitive advantage, Sunway City Berhad should differentiate in their development segment. Prior to this, Sunway City Berhad might clearly understand their vision, mission and objective that what the organization consistent point of view and goals want to achieve and how to achieve with efficiency, effectiveness and economic. Therefore, Sunway City Berhad is recommend to focus in healthcare develop, they should expand their medical centre in their entire development city to supply more healthcare services to their residents. Lastly , Sunway City Berhad should try to operate with the government to gain the competitive advantage for government subsidizes medical facilities and resources.

25

26