strategic management of poh kong

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FATIN SYAZWANI SAFIYUDDIN 812878 NOOR FAEZAH BASARY 812880 NORDIANA JAMRY 813482

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Strategic Management of Poh Kong consisted of the company's background, financial performance, swot and pestel analysis of Poh Kong. Besides, it is an attractive slide because it comes out with the video which can explain the uniqueness of Poh Kong's product.

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  • 1. FATIN SYAZWANI SAFIYUDDINNOOR FAEZAH BASARY812878812880NORDIANA JAMRY 813482

2. POH KONG 3. INTRODUCTION HISTORY FINANCIAL AND NONFINANCIAL PERFORMANCE 4. INTRODUCTION Poh Kong Holdings Berhad: an investment holding company that provides management services while the core activities of its subsidiaries are manufacturers, dealers, suppliers, retailers and exporter of jewelry, precious stones and gold ornaments. 5. INTRODUCTION Poh Kong was established in 1976. Poh Kong has been listed on Bursa Malaysia since 2004. It has own manufacturing facility in Shah Alam and more than 100 outlets in Malaysia subsequently lead Poh Kong to be Malaysias largest jewelry retail chain store. 6. HISTORY 19761982 19831992 Poh Kong Jewellers was established on March 26. First Branch in SS2, Petaling Jaya Opened 13 branches1993 Poh Kong upgraded all outlets with fully computerised point-of-sales and inventory systems.1995 Poh Kong was made the exclusive distributor of Disney characters in gold in Malaysia.1996 Poh Kong won a gold medal for the Golden Design Awards 1996 which organized by the World Gold Council Europe in Italy. 7. HISTORY 2001 the modern manufacturing facility was established in Shah Alam and then Poh Kong launched its first in-house-brand, Tranz collaborated with World Gold Council.2004 Poh Kong was listed on the main board of Bursa Malaysia on March 9. Then, Poh Kong opened its first Poh Kong Gallery which a stylish Italian Classic VIP lounge. Poh Kong already reached 60th outlet in Peninsular Malaysia.20072009 Poh Kong has been appointed by Schoeffel in Southeast Asia as sole distributor. Then, Poh Kong group was participated in the International Trade Malaysia exhibition that organized by Matrade and supported by the Ministry of International Trade and Industry. Poh Kong and Luca Carati, one of Italys oldest and most prestigious jewellers launched the brand in Malaysia. Poh Kong is commemorated as the sole distributor in Malaysia. 8. HISTORY 2010201120122013 Poh Kong was participated in Shanghai World Expo Poh Kong reached 100th outlet in Peninsular Malaysia. Tranz, inspired by Design: Unveiling the Marque of the Future was awarded the Event for Press/Media in the Marketing Events Awards 2012. Poh Kong announced its partnership with Moraglione 1922 of Italy, one of Europes finest and notable jewellers. Poh Kong had embarked on a European theme road show, World of Luxury to showcase MORAGLIONE 1922s latest collection along with designs from LUCA CARATI from Italy, Schoeffel pearl from Germany, ANGEL DIAMOND for the first time at signature mall Pavilion Kuala Lumpur. Poh Kong launched HEMERA, the worlds most brilliant diamond with 101 facets. 9. FINANCIAL PERFORMANCE 10. FINANCIAL PERFORMANCE 11. NON-FINANCIAL PERFORMANCE PRODUCTS COLLECTIONS : Gold Jewelry, White & Rose Gold, Diamond, Pearl, Jade, Fine Jewelry, Bar & Coin, Personalized (name etc.) JEWELLERY: Pendant, Necklace, Earrings, Ring, Couple Ring, Bracelet/bangle. 12. NON-FINANCIAL PERFORMANCE PRODUCTS: BOMBAY STYLE HEMERA 13. NON-FINANCIAL PERFORMANCE PRODUCTS ANGGUN COLLECTIONS 14. STRATEGIC ORIENTATION FUTURE PLANS AND STRATEGIES CORPORATE SOCIAL RESPONSIBILITY 15. STRATEGIC ORIENTATION FUTURE PLANS AND STRATEGIC Leveraging On More Outlets The Group plans to expand its retail network by establishing wholly or partly owned outlets throughout Malaysia.Poh Kong A Franchisor Poh Kong plans to franchise its total retailing concept to potential entrepreneurs locally. This venture allows Poh Kong to unlock the value of its brand and retail experience. The new franchised outlets will carry Poh Kong's brand name and potential locations. This new stream of income will boost Poh Kong earnings. Expansion Of Product Range The Company has decided to produce new range of platinum jewelry targeting younger age group consumers. The new range will complement Poh Kong's existing gold jewelry and meet the taste & needs of more consumers. New machineries and equipment will be acquired to support the product expansion. To Australia and China Poh Kong has a vision to expand its retail operations overseas with Australia and China as its initial target markets. A feasibility study will be carried out to assess the viability of setting up gold jewelry retail outlets, consumer taste and preference in the new market. Poh Kong's vision to spread its wings beyond local shores will enhance earnings. 16. STRATEGIC ORIENTATION 17. STRATEGIC ORIENTATION 18. 5 PORTERS ANALYSIS 19. 5 PORTERS ANALYSIS No.Porters AnalysisDescription1Bargaining power of buyers (LOW)The bargaining power of buyers comprises one of the five forces that determine the intensity of competition in an industry. The others are barriers to entry, the threat of substitutes, the bargaining power of suppliers and industry rivalry. The power of an industrys important buyer groups depends upon: characteristics related to its market situation the relative importance of its purchases from the industry as compared with its overall business 20. 5 PORTERS ANALYSIS No.Porters AnalysisDescription2Threat of new entrants (HIGH)Retailers and Manufacturers Poh Kong faces intense competitive pressure from 3000 local gold jewellery retail outlets and import products. Approximately 1500 of gold jewellery retailers are members of Federation of Goldsmith and Jewellers Association of Malaysia. The Group also faces moderate competition from manufacturers of gold jewellery. There are 48 licensed jewellery manufacturers of which only 23 are currently in production. Some of the key players that pose some threat to Poh Kong are: a) Habib Corporation Berhad, b) Degem Berhad, c) OE Fine Jewellery S/B, d) Wah Chan Gold & Jewellery Corporation S/B, e) Selberan Jewellery S/B and f) Tomei Gold & Jewellery Holding (M) S/B. 21. 5 PORTERS ANALYSIS No.Porters AnalysisDescription3Threat of substitute products (HIGH)Substitute Products Poh Kong also faces competition from substitutes such as jewellery made of silver, platinum, diamonds and pearls. In addition costume or imitation jewellery have provided consumers with an alternative to look good but at a cheaper cost. The threat of substitutes is mitigated as gold has inherent investment value, which is further reinforced by industry buy-back policy. Gold jewellery retail outlets would purchase old jewellery at prevailing gold prices and this provides an avenue for consumers to upgrade or change their existing jewellery sets. 22. 5 PORTERS ANALYSIS No.Porters AnalysisDescription4Bargaining power of suppliers (LOW)The bargaining power of suppliers comprises one of the five forces that determine the intensity of competition in an industry. The others are barriers to entry, industry rivalry, the threat of substitutes and the bargaining power of buyers. Power of supplier group The following conditions indicate that a supplier group is powerful: it is dominated by a small number of companies and is more concentrated than the industry to which it sells it is not required to contend with substitute products for sale in the industry the industry is not one of the suppliers important customers its products are an important part of the buyers business its products are differentiated or there are built-up switching costs it poses a definite threat of forward integration 23. 5 PORTERS ANALYSIS No.Porters AnalysisDescription5Rivalry among present competitors (HIGH)Rivalry among current competitors: Rivalry refers to the competitive struggle for market share between firms in an industry. Extreme rivalry among established firms poses a strong threat to profitability. Factors that increase competitive rivalry among existing firms include: Large Number of Firms Slowed Industry Growth High Fixed Costs or High Storage Costs High Exit Barriers 24. SWOT AND TOWS MATRIX 25. Strength Weaknesses1)Poh Kongs stand alone credit profiles 2) Liquidity profile is strong 3) Largest retailer of Gold jewelleries in Malaysia 4) Finest quality in jewellery, be it pearls, jade, gold, diamonds or gem stones.1) Management ConflictSWOT Opportunity Threat 1) Yellow gold is expected to remain resilient 2) New product design and enhanced customer services 3) Shopping malls and retailers have geared up for the Malaysia Year End Sale (MYES) campaign1) Exposed to market competition 2) Customer sensitivity to gold price movements 3) Raising cost of material 4) Government regulation 26. SWOT ANALYSIS Strength Video: Uniqueness of love cube box 27. SWOT ANALYSIS Decreasing in Profit Margin 28. SWOT ANALYSIS opportunity 29. SWOT ANALYSIS opportunity 30. SWOT ANALYSIS threat Goldcrest Pavilion Sdn Bhd which used diversification of strategy when offers and give highly concentration towards marketing strategy in order to attract the customers.Gold distributor Goldcrest Pavilion Sdn Bhd is an organization that does business with quality jewelry for every 999 purity gold jewelery produced. This product is a variety of jewelry from gold sold in stores plain gold or Public Gold brand, Poh Kong, Wah Chan and others who also pioneered the jewelry business but not the purity of gold jewelery with 999. That's a marketing strategy developed and used by the Company's distributors Goldcrest Pavilion Sdn Bhd gold. 31. SWOT ANALYSIS threat Retailers and ManufacturersSubstitute ProductPoh Kong faces intense competitive pressure from 3000 local goldPoh Kong also faces competition from substitutes such asjewellery retail outlets and import products. Approximately 1500 ofjewellery made of silver, platinum, diamonds and pearls.gold jewellery retailers are members of Federation of Goldsmith andIn addition costume or imitation jewellery have provided Jewellers Association of Malaysia. The Group also faces moderate competition from manufacturers of gold jewellery. There are 48consumers with an alternative to look good but at alicensed jewellery manufacturers of which only 23 are currently incheaper cost. The threat of substitutes is mitigated as goldproduction.has inherent investment value, which is further reinforcedSome of the key players that pose some threat to Poh Kong are:by industry buy-back policy.a) Habib Corporation Berhad,b) Degem Berhad,c) OE Fine Jewellery S/B,d) Wah Chan Gold & Jewellery Corporation S/B,at prevailing gold prices and this provides an avenue fore) Selberan Jewellery S/B andconsumers to upgrade or change their existing jewelleryf) Tomei Gold & Jewellery Holding (M) S/B.sets.Gold jewellery retail outlets would purchase old jewellery 32. TOWS MATRIX 33. SOWOS1,S2,S3,S4 & O2,O3 - PRODUCT DEVELOPMENT STRATEGY - The group actively evaluates various initiatives and opportunities to attract new customers through the introduction of new product designs and enhanced customer service,besides from the campaign of MYES aimed at promoting domestic and tourist shopping regionally, would benefit the Group in jewellery retail sales since Poh Kong have the strengths of S1,S2,S3 and S4.W1 & O2 - R&D STRATEGY - During the economy recession,people still buy a yellow gold since the yellow gold is universally recognised value and Malaysians view of yellow gold jewellery as a customary gift on special occasions, even though the price is increase, but the potential of people buy a yellow gold are higher because of special occasions.STWTS3 & T1 S1,S2 & T2,T3,T4 - MARKET EXPANSION STRATEGYW1 & T1,T2,T3,T4 - NETWORKING STRATEGY -With the reputation and strong brand name of Poh Kong, can avoid and overcomes the weaknesses and threats of Poh Kong. 34. PEST ANALYSIS 35. PEST ANALYSIS POLITIC Expects the price of gold to be on an upward trend in 2012, fuelled by demand for the precious metal as investment. Movement of gold prices would depend on the political stability in Iran, where Poh Kong gets its supply. Poh Kongs AGM expect that if war starts in Iran, gold prices may increase by 30%. In 2011, gold hit above US$1,900 per ounce but has since fallen to US$1,620. Demand for gold globally is still on upward trend. The company are still seeing double-digit growth globally on gold bullion and bars, so there is still a potential for the company to move forward. Besides that, the high price of gold would bring higher margins for Poh Kong as the cost is passed down to retail customers. 36. PEST ANALYSIS POLITIChttp://english.astroawani.com/news/show/poh-kong-has-no-plans-to-expand-abroad-4394 37. PEST ANALYSIS economy 38. PEST ANALYSIS SOCIAL 39. PEST ANALYSIS TECHNOLOGY Upgraded all outlets with fully computerized point-ofsales and inventory system Fan page in Facebook 40. Always RememberJewelry are a girls best friend!