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Case Analysis Of Sime Darby Energy And Utilities Division

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As for Sime Darby Energy & Utilities Division (E&U), which separated into China and non-China operations, its non-China uses cost-focus strategy as they exited the power industry by disposing its Malaysia-Thailand owned Power Company to be in-line with their company long-term business strategy that focuses on its core business due to its net loss of RM 49.3 million in FY2014. This division has shrink its operations in Malaysia, Singapore & Thailand to cut cost but still continue with its current operation of providing mechanical & electrical products and services. In the E&U Division of China operation, it focuses in water management and ports & logistic. Due to its limited ports and water ground, it has a low market growth, which placed it in cash cow quadrant. Although E&U is profitable in managing the ports and water management, the growth potential is too slow for further investment. With Sime Darby Berhad conglomerate business, its business strategy should always be in-line with corporate strategy to achieve its vision and mission, creating values for investor.

Decision making is generally defined as the action of selecting one option from a set of several options, is always an important factor for any business, no matter small sole proprietorship business to large multinational corporations. Decision making …show more content…

It has a high potential of acquiring other firms to expand its market due to large funding. With goodwill between other countries through Malaysia government, Sime Darby could easily buy shares of foreign companies and import technologies. It is an opportunity for Sime Darby to improve the quality of life and the standard of living in Malaysia. Its growth strategy definitely suits its current position with large fund and cooperation between countries. Sime Darby have to grab this opportunities look into its potential market in other countries as to expand it and grab more market

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