Evaluation of the Environment of AW Malaysia - Free Essay Example

Sample details Pages: 11 Words: 3402 Downloads: 4 Date added: 2017/06/26 Category Ecology Essay Type Research paper Did you like this example? PURPOSE OF REPORT This report will present a finding from strategic evaluation of the environment of AW Malaysia. It also presents a turnaround strategic for AW Malaysia which increases the chance of survival. SCOPE OF THE REPORT In this report that will be microenvironment analysis, internal analysis, macro environment analysis, as well as any strategic to AW Malaysia. It also given strategic option and explain about the implementation of strategic, and finally the recommendation for AW Malaysia to turnaround. Don’t waste time! Our writers will create an original "Evaluation of the Environment of AW Malaysia" essay for you Create order LIMITATION OF AW MALAYSIA In 2001, AW Malaysia was bought over by KUB Malaysia SDN BHD. In 2008, boarded on a destructive expansion drive to renovation and expand its objective. However, the company reported that will close 24 AW outlet that is not making money will be shut down or repositioned, which include 24-hour AW drive-in restaurant in Petaling Jaya in this year. OVERVIEW OF AW MALAYSIA AW Restaurants is a chain of fast-food restaurant well-known by its draft root beer and root beer floats. It was the first fast food franchise restaurant in Malaysia and Asia. AW is still operations until today. AW is committed to deliver customers with delicious, safe meals and operation restaurants that meet the highest food safety standards. It also quickly became a favorite gathering place for students, especially from the nearby secondary school such as La Salle and Assunta. The fast food industry is growing rapidly. It has more doubled in a few years such as, Mcdonald, Pizza Hut, KFC, Burger King and Subway. Within this year, AW lost its market and plan to close down 24 outlets in Malaysia because they wish to relocate its business and operations to attain sustainable growth in future. AW are undertaking a counteractive strategy and reviewing the performance of each outlet. AWà ¢Ã¢â€š ¬Ã¢â€ž ¢s market gradually been replaced by other fast food restaurant due to the lack of a dvertising. The image of AW brand image is easily substituted by other fast food restaurant that always doing all kinds of advertising, because AWà ¢Ã¢â€š ¬Ã¢â€ž ¢s branding is not strength enough to stick in customerà ¢Ã¢â€š ¬Ã¢â€ž ¢s mind. According to group managing director Wan Mohd Nor Wan Ahmad, he state that 24 outlet in Malaysia will close down in this year, to relocate its business and operations to attain sustainable growth. He will only retain outlets that have heavy traffic based on the increase in sales, and looking at ways to increase customersà ¢Ã¢â€š ¬Ã¢â€ž ¢ satisfaction. The AW outlet is predictable to reopen in 2018, added by the source. The losses were mainly recognized to the groupà ¢Ã¢â€š ¬Ã¢â€ž ¢s food operations, directed by its subsidiaries AW Malaysia. AW Malaysia challenged major setbacks in the 2011 fiscal year where it recorded losses totaling RM44.5 million, 50% which was caused by impairment losses. (Wan Mohd Nor Wan Ahmad, 2014) Members of the pub lic had expressed their frustration over the imminent closure of the iconic restaurant in December. (Local Business Daily, 2014) A Facebook page à ¢Ã¢â€š ¬Ã…“Save iconic AWà ¢Ã¢â€š ¬Ã‚  was set up barely hours after the report surfaced. The page has gathered 260 likes within five hours of being set up, checked by The Rakyat Post. The iconic AW Malaysia is going to be revamped and will only be shut for the next three years to expedite the construction of the KUB Tower project. (The Pakyat Post, 2014) AW needs to be strategized or it will never happen of revamping after three years, and go bankrupt. STRATEGIC ENVIRONMENTAL ANALYSIS In considering the micro and macro impacts on a business, internal and external factors must be considered. There is a variety of tools in planning to sider these impacts of businesses, including the PESTLE, SWOT, and Porterà ¢Ã¢â€š ¬Ã¢â€ž ¢s 5-Forces Analysis. Macro environmental Analysis A macro environmental analysis has been conducted using PESTLE tool, which is political, economic, social, technological, legal and environmental. The findings of AW Malaysia have been summarized in the table shown below. APPLY TABLE (Table 1) The macro environmental analysis review AW Malaysia faces more threats than opportunities. The most serious the economic loss, the harder to invest on development of AW Malaysia which company has relied on. In political factors and legal view, Government introduces the Good Service Tax (GST), and all those application of licenses which involve law and regulation, affect the prices for consumer. Legally, the problems of cleanliness and hygiene caused the problem in maintenance. In economic factor, the increasing of francized of other fast food restaurant such as Mcdonald, KFC, Subway and Pizza Hut impact the economy downturn in short period very quickly. The cost of raw material increases also affect AW faced major setback. The inflation of rate increases which caused impairment losses. Social factor of AW is there are out of young people budget. Due to the economic factor, which leads to increasing of prices, young people are not affordable for the fast food. Besides, currently a lot of people start to increase health condition and increase living condition, so many people started to quit or stop eating fast food. Therefore, AW Malaysia end up by reporting that AW Malaysia will be reposition its business and operation to achieve sustainable growth by close down 24 outlets in Malaysia in end of this year. For technological factor, AW outdated computer system and lack of invention and development system, affected the attractiveness to the customer. Environmental factor of AW are ecological footprint because AW reduced packaging and use more recycled material wherever possible. AW eliminated own paperboard fry cups in favors of a paper bag, containing at least 70% recycled content. This impact A W brand was eco-friendly and ecological fast food restaurants. Micro Environment Analysis A macro environmental analysis has been conducted using the Porterà ¢Ã¢â€š ¬Ã¢â€ž ¢s Five Forces. Five forces analysis assumes that there are five important forces that determine competitive power in a business situation. APPLY TABLE (Table 2) The micro environmental analysis review AW Malaysia faces more threats than opportunities. The bargaining power of buyer are strong, the cost to consumer of switching from AW to those competitors. AW are deal with powerful buyers, which often able to switch to other competitors easily. The supplier power of AW Malaysia is weak which affect many competitive suppliers. Number of supplier of AW is high for each key input, mostly frozen food, which a lot of supplier on market. The supplier doesnà ¢Ã¢â€š ¬Ã¢â€ž ¢t have the power and strength to control over AW in pricing. The threat of new entry of AW is easy to enter and exit, it also few economies of scale in place and training easily available. This impact new competitor is able to enter quickly and weaken the position of AW in Malaysia, and lead the reducing of profit. A threat of substitute of AW is strong which impact many affordable substitutes. There are too many similar fast food restaurants in industry which are more attractive in service and product. AW seldom improve and develop in their business, therefore is easier to let other substitute to weaken AW position. Competitive rivalry is high leads to buyer and supplier can switch to competitor with equally or more attractive product and service. AW have many competitors with offering equally or attractive products and services, so AW have little power in the situation, because supplier and buyers will go to competitors of AW if consumers do not get a good deal from AW. Internal Environmental Analysis AW Malaysia has a state of great-tasting ingredients, farmed with care. AW is proud to have high standards when it comes to AW food and drinks, which can taste it in everything they serve. AWà ¢Ã¢â€š ¬Ã¢â€ž ¢s product are patented that need to apply for franchise license which are unique resource. Unique logo design license of AW are hard to get shows that AW are unique resource. AWà ¢Ã¢â€š ¬Ã¢â€ž ¢s food is not fully utilized which mean supply more than demand. This lead to waste of food, it shows that AW are threshold competency. AW Malaysia are unique resource and threshold competency, this explain that AW stay marginally. SWOT Strength of AW is the first fast food restaurant invented in the United States in 1919. AW Malaysia has listed in The Malaysia Book of Records as the first franchise restaurant in Malaysia. AW also became the first Drive-in restaurant in Petaling Jaya as Iconic AW outlet. AW symbol, The Great Root Bear and their company orange color stated in peopleà ¢Ã¢â€š ¬Ã¢â€ž ¢s mind. Weakness of AW, due to the problems or repositioned or close down outlets that cost its lost profit because location is not considered or rented fee is too expensive, so AW is closing down 24 outlets in Malaysia. AW has not advertised comprehensively in Malaysia. People might not find the latest promotion of AW. however the competitors have strong advertised in anywhere caused the people will almost forget AW existing and lost its reputation in the market. In order to serve the food on time and make sure the food quality is fresh by commit some improvement on their servicing and food quality. The price of AW is slightly higher than other competitors. AW having a Sen Saver lunch set but after included all the charge of beverage and service tax, it cost around RM10, which are out of budget for a normally student or worker. People could switch to mamak stall rather than fast food restaurant. AW did not fully use of the technology of updating their detail of outlets location and closing down outlets information at website and social network, which confuse consumer. Opportunity of AW is having reasonable saver lunch treat meal to target in teenage which giving them to have more affordable meal set with food quality, in the same time save their budget. AW can plan to have more Festival Promotion such as Chinese New Year, Ramadhan dinner and etc, to interest another target market. People can have their Ramadhan open dinner in AW. AW also can come out with a new set meal with collectibles gift but only for limited time only. Due to strong competitors in the market, AW have to strengthen in a dvertising or commercial by publicize their products or brand image astutely to avoid consumers forget about their existing in the market due to strong competitors in the market. AW also can increase publicity in market by corporate with some big event such as à ¢Ã¢â€š ¬Ã…“Running Dayà ¢Ã¢â€š ¬Ã‚  or visiting to orphanage. Threats of AW are there are lots of other fast food restaurant competitors are challenging with AW is increasing rapidly in the market. Having fast food will increase a personà ¢Ã¢â€š ¬Ã¢â€ž ¢s risk of health by weight gain and obesity. Expensive fast food restaurants rented fee costly in increasing franchise in everywhere. Fast food restaurant chain changes in approach of leading in coming years which lead economic crisis. STRATEGIC OBJECTIVE In last year, AW Malaysiaà ¢Ã¢â€š ¬Ã¢â€ž ¢s revenue is predictable to reach RM42 million by Dec 2014. For 2014, AW is expected to push up the fast-food operatorà ¢Ã¢â€š ¬Ã¢â€ž ¢s revenue to RM60 million next year. KUB announced a net loss of RM61.86 million for financial year ended Dec 31,2011 compared to a net profit of RM11.48 million in 2010. (Bernama, 2012) according to Datuk Wan Mohd Nor, he said that AW need to be capital inoculation but not selling it. He also state that working hours in shopping malls are limited and the rent is expensive, so the fast-food chain was continuously improving and optimizing its resources in present outlets to better serve its customer. To achieve profit, accounting a corrective strategy and reviewing the performance of each outlet. Any outlet which not making profit will be shut down or repositioned. Besides, preserve AW loyal customers and grab new segments like youngsters and lower middle income earners via value treats. Increase on the adv ertising and marketing strategy to create consciousness for public to after AW repositioned or open new outlets in Malaysia. KUB which is owner of AW targeted to list AW on Bursa Malaysia in 2015. STRATEGIC OPTION Basic Strategic To achieve profit with revenue of RM60 million in 2015, AW Malaysia need to be consolidation and turnaround. 40% of stake in AW Malaysia Sdn Bhd are not selling decided by KUB Malaysia Bhd (owner of AW) as the fast-food chain is assertive of a profitable turnaround after restrategize its business operations. The new outlets need to be concentrated in bustling in Klang valley where are predictable to push up the fast-food operatorà ¢Ã¢â€š ¬Ã¢â€ž ¢s revenue. 24 outlets of non-profitable outlets in Malaysia close down for business consolidation exercise. By doing this action, in the same time increase AW strength by develop core competences and downsizing company weaknesses. AW Malaysia needs to be strengthen performance by property, argo, engineering and construction, and food sectors in the quarter contributed to higher profits. AW CEO Samad Mohd Shariff told to the media after briefing on its 50th anniversary event in Petaling Jaya about, reviewing at the process of opening better stores in good locations and this will bring in the revenue. (Malaysian Reserve, 2013) Strategic Direction To achieve profit with revenue RM60 million in 2015, by using Porterà ¢Ã¢â€š ¬Ã¢â€ž ¢s Generic Strategy method is suggested to apply differentiation in AW Malaysia. Due to the price and product service of AW, their cost is not the lowest in the industry, but the target market of AW is broad due to AW brand image value. AW has many strong competitors such as McDonald and KFC which are strongly advertised, in order to strengthen the à ¢Ã¢â€š ¬Ã‹Å"First Fast food Restaurantà ¢Ã¢â€š ¬Ã¢â€ž ¢ in Malaysia slogan, AW needs to make their product and services different and more attractive to their competitors. To make a success of a differentiation strategy, AW need to have good research, development and innovation by having transformation of buildings and well train staff. AW need to strengthen the ability to deliver high quality product and service since the cost are not low but giving better value for customer. AW can implement it by giving out limited toys or attractive gift in seve ral set meal, and also offer promotion of buy more get more with attractive packaging and food, make sure the food are fresh and quality. AW competence on the signature Root Beer Float, they can make good use of the uniqueness of innovation of the product and strongly advertise that no other competitor cannot imitate. Because of the productà ¢Ã¢â€š ¬Ã¢â€ž ¢s unique qualities, if suppliers increase their prices the firm may be able to pass along the costs to its customers who cannot find substitute products easily. Specific Strategic To achieve profit with revenue RM60 million in 2015, in Ansoff Matrix strategy, AW should be using market penetration method to boost up their business. AW is the first fast food restaurant in Malaysia; therefore there is existing product to existing customers. AW need to practice several ways to achieve the target. AW should be changing the pricing, packaging, and adding minor features and most importantly, strongly increase advertising or add more sales people to increase sales. AW owners giving out discounting, vouchers to win business from competitors through competitive pricing. Besides, AW also can introduced fat free or low fat version of set lunch to counter a trend towards reduced consumption since people start to increase health condition. AW can plan to have more Festival Promotion to push dinner set for target market like family to have their gathering open dinner in AW. By choosing market penetration, this strategy is the lowest risk to have growth of AW Malaysia for s urvival. (Igoh H. Ansoff, 1957) STRATEGIC IMPLEMENTATION The current style of the management of AW Malaysia is middle of the road leader in Blake and Moutonà ¢Ã¢â€š ¬Ã¢â€ž ¢s Leadership Grid. Manager of AW did not push their staff to hit sales or stress them with cleaning up the environment. Manager did not offer additional training or opportunities to attend promoter training. Customer gets their order on time alright, but no additional services like welcoming customer from the door to the seat. As a result, employees of AW neither satisfied nor dissatisfied with their job, and their performance is average. Brandy is a middle-of-the-road-leader. The leader of AW has balanced concern for both production and people, settles for average performance from employees. This leadership is good, but AW manager leadership can be better. Manager should perform like team manager, which very concern about people and high task concern. With this style, AW could maximize the concern for both task and people. At the same time, employees promote active participation and teamwork creates open and comfortable environment, enough to keep staff motivated. (Kat, 2014) In Hersey and Blanchard model, AW Malaysia manager has leadership of participating or supporting. Leader attitude is low task focus with high relationship focus. The worker atmosphere is good but the tasks are not well commitment, able but unwilling or insecure in doing task. Staff of AW can do the job, but is refusing to do and showing insufficient commitment. Manager did not fear about reminding them what to do instead of concern with finding out reason the staff is rejecting and thence encourage them to cooperate. In this case, AW manager are suggested to be delegating and observing, a low task and low relationship style where the leader allows the group to take responsibility for task decisions. Staff at this level has do not need for support or frequent praise, although as with anyone, occasional acknowledgment is always welcome. Staff must have an attitude with h igh willingness and ability to change or motivated. (Hersey, 1999) STRATEGIC CONTROL The balanced scorecard complemented traditional financial measures with criteria that measured performance from three additional perspectives, such as got those of customers, learning and growth, internal business processes and financial. Some companies move beyond early vision for the scorecard to determine its value as the foundation of a new strategic management system. By using that way, the scorecard addresses a serious shortage in traditional management system. (Robert S, 2014) There are four processes in managing strategy, which is translating the vision, communicating and linking, feedback and learning and business planning. AW are recommended to apply this strategy by controlling the company vision and strategy. This strategy helps managers to build a compromise and let managers communicate their strategy up and down the organization and link it to departmental and individual goals. The scorecard would give manager of AW a way of confirming that all levels of the organi zation understand the long-term strategy and that both departmental and individual objectives are united with it. This strategy enables AW to integrate their business and financial plans. When managers use the motivated goals set for balanced scorecard measures as the basis for assigning resources and setting primacies, they can undertake and synchronize only those initiatives that move them toward their objectives. With this strategy also gives companies the volume for strategy learning, company can monitor short-term results from the three additional perspectives and appraise strategy in the light of recent performance. (David P.Norton 2014) CONCLUSION In conclusion, AW Malaysia Sdn Bhd needs to be innovated. By referring to strategy that mentioned in the report, it will have chance of survival and profitable.

Harry Frankfurt s Arguments For The Compatibilism Of...

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A Report on Child Labor Cause - Consequences - and Cure

Question: Describe about a Report on Child Labor: Cause, Consequences, and Cure? Answer: Although we are residing in the 21st century with increased advancements of the century, yet there are some issues and social disabilities that still exist in our surroundings. One of such social curse has been the problem of child labor. It is regarded as one of the most concerning global issue. As defined by the international Labor Organization (ILO), child labor refers to the economic activities that are performed by children below 15 years of age. Children below this age limit are not permitted legally by law to work for livelihood. However, several parts around the world are completely ignorant about the fact and they mostly employ young children in serious economic activities (Carpenter and Rodgers). It has been a common phenomenon that children are inevitably engaged into labor market since decades, and so this raises the need to conduct a careful analysis of the major issues, outcomes, and prevention of such a fatal social concern. Child labor is pre-dominant even in the society of the present century due to numerous factors which lead to its growth. Firstly, there is a sheer lack of clarity. It is not possible to address this problem of child labor unless people stop confusing child work with child labor. Child work refers to the process by which young children or kids are made to learn the habit of doing their work by themselves, like that of preparing their own beds, cleaning their bedrooms, or helping with family members (Kozhimannil et al.). These are the basics that every child is supposed to learn from young age. However, child labor depicts a totally different concept. In this case, children are made to work forcefully against the law and this employment of children below the age of 15 years may be hazardous for them. So, it is important for all individuals to understand the difference between the two concepts. The social issue of child labor derives benefit from young children or kids and imparts them with several severe health-problems (Manacorda and Rosati). These children are exploited economically as they are paid the minimum amount possible by their employers. So, our society is one of the most crucial factors for such a social problem. Other factors include poverty and market forces. Since the cost of labor market is on a rise and labors are quite expensive to be employed, it has become a common tendency of employers to employ children at the cost of their tenderness and to receive the maximum profit possible (Polakoff). Also, children are easier to be controlled and managed as per the demands of the employers. These children do not ask for bonus or benefits. Moreover, the families fear of poor economic conditions that may be fatal for their survival. For ensuring a steady income for family, the families are more interested in engaging the young children of the family into work. Another factor for child labor is politics as well as administration policies regarding rights a nd welfare of children. As per specific administration policies of individual nations, the exact number of children engaged in economic activities is invisible or made restricted, and so there is no official existence of such an issue. The lack of economic resources for enforcing legislation regarding the educational system within the developing nations increases the exact number of such victimized children who start working at a very tender age instead of studying. There is a lack of congruence amidst values, economics, and laws (Simpson and Knox). The issue of child labor is being supported by customers who purchase goods from firms who have a track record of exploiting children in sweatshops. Young children are made to work at these sweatshops for long hours, in hazardous conditions in absence of any additional benefits. This is a form of exploitation of the young lives. The problem has a severe negative impact upon the mental and physical conditions of the children. It also affects their health and educational interests. They are not only exploited but also their lives are put to danger at every step. Moreover, these children are deprived of their basic rights and that of education. Immense level of exploitation causes harm to their social, mental, psychological, moral, and spiritual development(Chang, Jiyeun and Byung-You Cheon). As stated by the International Labor Organization, children are often compelled to work under harsh working conditions like hazardous work environment, lifting heavy loads, lack of drinking water, etc. These adverse work environments result in physical disfiguration as well as prolonged health problems in children. Studies of ILO have identified that such exploitations of children often affect them in the long run especially throughout the phase of adulthood due to illness or injury. The most significant and concerning imp act is that these children are deprived of their fundamental right of education. At the expense of education, these children are exploited and moreover these affect their health and welfare in the long run. As per the records of the Statistical Information and Monitoring Program on Child (SIMPOC), children engaged in economic activities are negatively impact upon the learning and awareness of children. In certain places like that of Cambodia and Namibia, the children are even more affected due to adverse work hours. Extended work hours do not allow children to acquire education and learning if they desire to pursue. These children are exposed to low level of social significance and are unaware of their own rights and environments. There is a strong and positive role that adult education plays in improving the childs learning. The negative impact of child work on learning is remarkably robust. To recommend about some effective measures to counter this social issue, it may be said that it is important to reduce overall poverty of the society at large in order fight this social problem. As long as poverty exists in the society, children at lower levels throughout the world would be compelled to work and get exploited by employers at the cost of their childhood. Secondly, it is important that education is made compulsory for every child (Chang, Jiyeun and Byung-You Cheon). This can be done by implicating some legal obligations or creating favorable work conditions for the children to visit educational institutions, and also reducing the cost to households for attending schools. Moreover, motivations such as arrangement of food, shelter, literary programs must be made available to the children and families for supporting acquiring of education. Also, raising public awareness by improving children knowledge of work hazards, raising parental awareness of the loss of human capita l that may be associated with child labor, and changing the emphasis of policy makers are to be incorporated. Improved awareness is more likely to lead to cooperation between local communities, non-governments organization, and governments to put pressure on employers (Carpenter and Rodgers). It is hard to create policies that protect the child because child labor is a universal activity that occurs cross-cultural where it is necessary activity in one culture and dangerous in another, therefore, in order to provide protection it is necessary to be as comprehensive as possible in creating a definition of what child labor is. To conclude, it may be said that the problem of child labor the problem of child labor has been in existence and perpetuated from the ancient period to our present day in one or other form, due to several socio-economic and political factors such as, poverty and illiteracy, yet the root cause for the prevalence of child labor is ignorance of people. The future of the nation depends on how its children grow and develop. Consequently, it is the duty of society to look after every child with a view to assuring full development of its personality. In other words no child below the age of fifteen years should work at anything but school. References Carpenter, Seth B., and William M. Rodgers. 'The Disparate Labor Market Impacts Of Monetary Policy1'.Labor History46.1 (2005): 57-77. Web. Chang, Jiyeun, and Byung-You Cheon. 'Female Labor Supply And Its Impacts On Household Level Income Inequality'.koreanjournaloflaborstudies20.2 (2014): 219-248. Web. Kozhimannil, Katy Backes et al. 'Employment During Pregnancy And Obstetric Intervention Without Medical Reason: Labor Induction And Cesarean Delivery'.Women's Health Issues24.5 (2014): 469-476. Web. Manacorda, Marco, and Furio C. Rosati. 'Local Labor Demand And Child Labor'.SSRN Journaln. pag. Web. Polakoff, E. G. 'Globalization And Child Labor: Review Of The Issues'.Journal of Developing Societies23.1-2 (2007): 259-283. Web. Simpson, Kathleen Rice, and G. Eric Knox. 'Fundal Pressure During The Second Stage Of Labor'.MCN, The American Journal of Maternal/Child Nursing26.2 (2001): 64-71. Web.