business & commercial awareness

Business & Commercial Awareness

THE BUSINESS AND COMMERCIAL AWARENESS

– 20TH CENTURY FOX AND GENTING MALAYSIA

ON THE NEW THEME PARK

Submitted by:

Noman Bashir

Enrolment ID: 7109

International Islamic University


TABLE OF CONTENTS

Abstract ................................................................................ Error! Bookmark not defined.

Introduction ......................................................................... Error! Bookmark not defined.

PART.1:

Relevant micro and macro business environment forces ... Error! Bookmark not defined.

SWTO Analysis................................................................................................................. - 5 -

Recommendations ............................................................... Error! Bookmark not defined.

PART.2:

Global Issues & business strategies ..................................... Error! Bookmark not defined.

PART.3:

Branding Sucess and Challenges .......................................... Error! Bookmark not defined.

PART.4:

Business Sustainability ......................................................... Error! Bookmark not defined.


Abstract:

The business and the commercial awareness are meant to become aware or get

informed to business environment an employer normally operates. The concept of

business and commercial awareness is related to understand the trends of the business

and the industry and being aware of the happenings and the things in the business

environment and around the globe as well (Undergraduate aspirant entrepreneur,

University of Bradford).

To me, the term commercial awareness is meant for the ability to practically perform or

initiate the things for the success of the organization. It is further related to the literal

and the practical procedure of identifying opportunities, the understanding of the market,

and working with the limited resources in order to create the goals success and profits

achievements (Training and Development Graduate Employer, 2015-16). The suitable

indicators for the purpose of the commercial awareness is the ability to understand the

customer and his needs, the ability to customize the things for you and restructure or

reorganize the things for the success achieving of your corporation.

In this study I am going to identify and discuss the relevant business environment

factors in the contexts of micro and macro factors of the business environment. I am

also discussing the internal strengths & weaknesses and the external threats and the

opportunities for the partnership business of the 20th century fox and the Genting

Malaysia for expanding the businesses and partnerships in order to deliver the

customers’ desires for themed attractions of movies. I am discussing an analysis and

recommending for the partnership of the 20th century fox and the Genting Malaysia, for

the new theme park.

This study is also going to give you a reflection for the global issues for the business

strategies, in a way to connect these strategies to the partnerships. We are also

reflecting the global issues and their impacts to affect the business. In this study I am

discussing the success of the branding and the challenges for the branding. In this

section I have provided the details of the partnership business of the 20th century fox

and the Genting Malaysia partnership, and the effect of partnership on the business


environment plus its significance from the customers’ point of view. We are also

discussing the innovation for this partnership. In the last section of this research, I am

going to discuss the business sustainability and the activities of the partnerships in the

context of the 20th century fox versus Genting Malaysia. I am also relating the

understandings we did study in the class about partnership and its aspects for the 20th

century Fox & Genting in the Malaysia.


Part 1:

Introduction:

The 20th century fox is building its first theme park in the Malaysia. The 20th century fox

is a distributor and is an American film studio company, while Genting is a Malaysian

conglomerate group, who is providing travel guide, reservation and hotelling services to

its customers. The 20th century Fox Film is an American film studio Corporation,

distributor and one of the six major American film studios. It was founded in 1965 by a

late Malaysian entrepreneur whose name is Tan Sri Lim Goh Tong. The aim of this

partnership is to provide a unique and delighted experience to the customers by adding

up the value to the wealth and goodwill of the share holders to lead towards generating

the profits and expansions for the partnership business. The added goals of the

partnership are to establish the short term objectives in the starting to build the

profitable relations of the 20th century fox and Genting theme park to deliver the

delightful desires of the customers. For this the financial requirements are needed to be

analyzed and the financial resources should be gathered wisely. There is also a need of

proper financial evaluation in order to manage the required sources.

Relevant micro and macro business environment forces:

The macro factors for 20th century fox and Genting Malaysia to build a theme park for

highlands in Malaysia includes the PEST factors that include the social, economic,

political and technological factors. The country is having stable political situations

The macro factors for 20th century fox and Genting Malaysia to build a theme park for

highlands in Malaysia includes the political, social, economic, and technological factors.

The country is having stable political situations so it is encouraging the industries for

development and the growth, therefore providing an opportunity for the 20th century fox

and Genting Malaysia to expand their business by encouraging the foreign investment

from 20th century fox and gaining the local support through Genting business services.

This conglomerate partnership is also a source of generating the revenues for the state

and the government, plus it is also influencing the taxations, budgeting, and the legal

requirements of the business such as policies, contracts and so on. The economic


situations are also favoring the partnerships as the GDP of Malaysia is $506 billion

(2012 est.) also the rate of inflation is just 1.7 percent, so the economy of the Malaysia

generates revenue in better amounts, so it can be understood that the employment

creation is also more in the country. So based on these discussed economic factors

from the macroeconomic aspect, we can easily understand that there is going to be a

growth in the foreign direct investment (FDI) with the flow of foreign currency in the

country. In addition there will also be a growth in the travel & tourism sector and the

theme park industry in the Malaysia. The population of Malaysia is 29,628,392 (July

2013 EST.). The other social factors include the improved standards of the lifestyles,

quality services and improved facilities in the community. The cultural differences,

diversities and the over commercialization are yet other reasons for the partnership of

the 2oth century fox and the Genting Malaysia. As the partnerships like this needs infra

structure of a well structured category along with the high power of resources plus a

high technology, with popular CRM medium for the marketing is significant. The

research and development is also significant in implication. The environmental macro

factors for the partnership of 20th century fox and Genting Malaysia includes the

occupying of the large space, the appropriate concept of decision making, and

exploitation of some natural resources in the community.

SWOT Analysis:

The SWOT analysis is the internal analysis of an organization’s strengths and

weaknesses and the external threats and the opportunities for the business ((Bruneski

and Chen 1, 3).

Strengths:

According to me the strengths of the partnership of the 20th century fox and the Genting

Malaysia include the following strengths;

Strong management,

The innovation,

Power of pricing,

The leverages related to financial aspects.


The 20th century fox is a strong brand name in the industry plus the Genting Malaysia is

also an experienced name of the quality in the market. The partnership is also a

strongly innovative business. Since the idea of the business is unique and the desire

driven of the customers so the partnership business can set and enjoy monopolistic

type of pricing strategy till some specific time period, in the country.

Weaknesses:

Whereas the weaknesses of this partnership business includes;

The reputation in the market as they are new in the market with the new idea, so

the business management is not that much sure that whether their partnership

idea will be established or not.

The customer service is still not sure as the business is still got to prove

themselves and their quality customer services. The acquisitions and market

reputation is also a weakness for the business (Newton and Newton 6, 7, 8, 9,

16, 19, 20, 29).

Opportunities:

However, the external opportunities for the 20th century fox and the Genting Malaysia

includes the consolidation and the international expansion.

Threats:

While the threats for partnership of the 20th century fox and the Genting Malaysia is the

sheer costs for the partnership business in the Malaysia.

The strategic expansions help the companies to gain long term sustainability by

diversifying the risks for them. Thus the strategic expansions play a vital role and acts

as a bridge for the product development and the market development. The 20 th century

Fox is in view of the expansions and the diversifications undergo certain strategic

alliances.


But in many circumstances, these acquisitions, partnerships and alliances has left the

corporation in utter dismay (Bandler & Burke 2012).

Recommendations:

Another issue that the 20th century fox and Genting Malaysia, is likely to face is the

management with the consumers having dynamic desires, delights, and preferences. In

order to excel for the corporations, standardization is generally considered to be

preferable option global markets (Powers & Loyka 2007). The 20 th century fox is

catering the international markets, the problem is to deliver to the customized needs

and the desires of the delighted customers in the niche. As the customers do not only

want the quality products but they also expect it to be a desired and delighted

experience for their memories (Feitzinger & Lee, 1997; Huang et al, 2015).

The cultural diversity is yet another problem for the 20th century fox and Genting in

Malaysia. The business ethics and the management for the cultural diversity will be one

of the hard challenges for the management of the 20th century fox and Genting

Malaysia. In this there will be two different hurdles for the management. The first is the

understanding and the management of the diversity while the other problem for the

management is the managing of the conflicts being raised in the diverse communities in

the organization. It had occurred mainly due to the fact that the people are belonging

from differing cultures, origin and expertise from across the world were working for HP

(Kamal & Ferdousi 2009). Moreover the entrepreneurship and innovation are yet the

further added issues in the partnership of the 20th century fox and the Genting Malaysia.

The innovation is the key to success for an industry - which is being completely driven

by the technology and the one that has the dynamic business environment (Brem &

Voigt 2009). But it has also been observed that the policies companies in many

instances tend to be more driven by cost minimization instead of focusing on innovation

(Kalb 2012).


Part2.

Global Issues:

The global issues for the business and commercial awareness from my point of view

are discussed below;

Break all the "local national" glass ceilings

I think the one of the most fundamental step toward building a global perspective for the

2oth century fox and the Genting Malaysia is to reduce the trend of favoritism from

managers who are residing in the local areas of the country in which the company is

based. The corporations with the concepts of the ethnocentric beliefs tend to be

xenophobic in general. They put the most confidence in nationals of their headquarters

country. There are also a few MNCs that are having more than token representation on

their boards. The partnership of the 20th century fox & Genting Malaysia is one of the

partnerships that values the risks and views it as their priority to move more executives

from emerging countries into the higher levels of the company such as

Malaysia((McCulloch et al. 2000).

Tracing the lifeline

On the basis of our company's business strategy, we do identify the essential activities

to achieve the success. These positions tend to represent as the "lifeline" of our

company.

This also tends to require integrated teams of H.R and business experts, who work with

the line managers. Compiling these descriptions is a major undertaking, and they will

not be perfect as the JDs (job descriptions) are subject to be changing regularly in the

current business environments and the markets, plus the perfect matches of candidates

with job descriptions are not easy to find. But these job descriptions are an essential

building block too for the global policy of the human resource. As they establish

common standards.


Assessing the strength of bench & the skills gap

In this partnership each of the executive level is to be asked to compare his or her skills

and characteristics by assuming the requirements as a benchmark. Each of the

executive is to be asked to propose his/her ideas and the ways to close the personal

skills gaps. Furthermore the skills detailed in the personal assessments will be

compared to those required by our business strategy. This information will lead towards

the basis in our management development and training programs.

For doing so, we will design a competency framework based on the 9 point competency

framework for our senior management.

Advertise your posts internally

Then we will manage and run the labor of our own global market. For the businesses

like the partnership of the 20th century and Genting Malaysia, the employee track

management is difficult to be managed. Therefore we are going to manage this issue

through the intranet. The routine internal advertising will be beneficial through this as it

will allow our partnership to practice the internal job market for the functions; it will make

the roles and tasks really transparent without taking in to account for the designations

whether you are the sub ordinate or the senior boss of the office.


Part.3:

Branding success and challenges:

The twentieth Century Fox will provide an opportunity to studios and partners for

increasing their profits (Mark Johanson, International business times, 2015). The 20 th

century fox has its opening in 2016. The opening of the first Twentieth Century Fox

Theme Park at Resorts World Genting takes our rich history of trend setting and

storytelling to a whole new level and will provide an exceptional world of entertainment

(Jeffrey Godsick, president of Twentieth Century Fox Consumer Products). “People

from all parts of the world are about to gather in the Malaysia so as to be the part of the

story and to experience the adventure and magical expo of their favorite Fox

properties.”

The 20th century fox and Genting Malaysia are stepping towards the business as a

partnership in the theme park. With the big budgets from the earnings of the theme park

Malaysia, the 20th century fox is expecting to offset the high budget movie flopping and

the falling downs revenues from their expectations. In fact this partnership is going to

decrease the businesses of the competitors in the fiscal years. One of the studios

adopting the theme attractions is named as the universal studio, who has gained a great

fame for his themed attraction movies like Harry Potter and so on. The extra expenses

for the universal studio for the themed attractive movies in 2010, was raised to twenty

percent for universal studio but the revenue they got for merchandise, food items and

beverages was more than twenty nine percent.


Part.4:

Business Sustainability:

I think that the partnership should be doing the following discussed activities for the

better growth and expansion outcomes for the business;

Innovate with brainstorming.

The business and commercial awareness partnership businesses like the 20th century

fox and the Genting Malaysia are rarely possible to go for innovation in an isolation

situation. It means that they will be going for the innovation with the proper

brainstorming and using the benefits from Delphi technique or the nominal group

technique before launching for an innovation process. This is because the innovation is

no doubt is a very good thing for the expansion of the business, but the innovation

without proper way can also damage the business by risking the assets and the

financial decisions of the organization.

The 20th century fox is hardly possible to reimage the operations in the business for a

digital world by being stayed in their own four walls. The same is the case for the

Genting Malaysia as well. So in this regard, the partnership between the 20th century

fox and the Genting Malaysia is the need of the time for attracting and satisfying the

customers’ desires of entertainment for the themed attraction movies.

Understanding the user preferences

The partnerships should consider the values of the consumers and their segmented

targets. The partnership and the business should be engaging the teams at work places

and the partnership and the business should focus the assets of the complementary

information in order to manage the preferences accordingly. The partnership and the

business are significant to create the superior knowledge based capital, vigorous

information management and the information exchange, and high performing

partnerships.


Prefer Experience than exchange

In the current business environment the experiences are more significant in order to

develop better expansion practices. Therefore the partnerships and the businesses are

valuing the partnerships as their valued asset. The businesses now prefer the

experiences rather than just to exchange the required values between the business

organizations like 20th century fox and Genting Malaysia. For this the human centered

approach is more significant and necessary. This is also helpful for solving the problems

of the user relating to the transactional and the concentric benefits.

The balance fit for scaling & the customization.

The creation of the broad network businesses is difficult and expensive as well. The

partners tend to accept the solutions that sound them as unique and significant for

fulfilling their requirements and the needs. It is really a critical job to develop a

partnership approach that can allow the business to reach towards the scaling or the

maximum reach for comparatively at a low cost. The customization pattern is also a

critical stage for the businesses and the partnerships to customize the options on the

basis of the partners needs. In this regard, the only efficient solution for the scaling and

the customization of the patterns, is to either design the technology by focusing on the

IT side of the business operations, or the businesses can also develop the software

development tools and the apps to meet the desired objectives for the partnerships and

the businesses. This focus on technology, apps and software can also give the

businesses a smarter and long term based advantage for the business.

Partnership itself is a business

For the better profitable relations, the partnerships should be treated as the businesses

as well. In fact the partnerships are also the businesses so one should not take them as

the far granted thing. If the strategic partnerships are not resulting well then it means the

partners are not considering the partnerships as the businesses. If the partners can

contribute their commitments, resources, and the required ownerships the partnerships

will lead to a better profitable business outcomes. For achieving the successful

businesses from a partnership is a hard topic of discussion though but yet it can bring

more profits for the businesses as a combine effort. The partnerships can consume


more time, more money and expenses. Plus the partnering businesses like the 20 th

century fox and the Genting Malaysia partnership doesn’t mean that the profits are

going to flow within a night, it will require some time for the expansion. Leading

partnerships to profiting relations requires the partners to carry the partnership

operations more like a business than just a deal.

I believe that from the strategic importance perspective, the reinventing approach for the

partnerships is not to be underestimated. The strategic importance of partnerships in

the businesses should not be understated. The partnerships are really significant for the

business sustainability. The significance of the partnerships should be on the main

agenda of the leadership and the top management of the business.

The considerations of the customers for the businesses vary from time to time. This

behavior of the customers also depends on the day to day experiences. The traditional

sources for the differentiation reduction in the value, the requirement to develop

capabilities for the sake of managing, scaling, and delivering against these new rules of

the partnership has never been greater.


References

Bruneski, Paul and Eva Chen. A Guide to Research Tools SWOT Analysis. 1st ed.

Recreation Tourism Research Institute, 2007. Web. 29 Mar. 2015.

Newton, Paul and Helen Newton. SWOT Analysis Strategy Skills. 1st ed. Warwickshire:

Free Management Ebooks, 2013. Web. 29 Mar. 2015.

http://www.ibtimes.com/why-20th-century-fox-building-its-first-theme-park-malaysia-

1512852

http://blog.oxfordcollegeofmarketing.com/2014/11/04/the-impact-of-micro-and-macro-

environment-factors-on-marketing/

http://www.accaglobal.com/content/dam/ACCA_Global/Members/AB/2013/September/A

B%20CN%20Sept%20interactive%20125.pdf

http://www.aglw6l6xjczb/finance-department-implementation-plan

http://faqexplorer.com/MORE/825/115/

http://www.ibtimes.com/why-20th-century-fox-building-its-first-theme-park-malaysia-1512852

http://www.ibtimes.com/why-20th-century-fox-building-its-first-theme-park-malaysia-1512852

http://blog.oxfordcollegeofmarketing.com/2014/11/04/the-impact-of-micro-and-macro-environment-factors-on-marketing/

http://blog.oxfordcollegeofmarketing.com/2014/11/04/the-impact-of-micro-and-macro-environment-factors-on-marketing/

http://www.accaglobal.com/content/dam/ACCA_Global/Members/AB/2013/September/AB%20CN%20Sept%20interactive%20125.pdf

http://www.accaglobal.com/content/dam/ACCA_Global/Members/AB/2013/September/AB%20CN%20Sept%20interactive%20125.pdf

http://www.aglw6l6xjczb/finance-department-implementation-plan

http://faqexplorer.com/MORE/825/115/