Friday 6 December 2013

corporate strategy; diversify or not???

Assalamualaikum..hye!!
Ah, I really postponed this blog for too long, I am so sorry Miss Ummi. Okay, let’s begin with my story first. There are a lots that I want to write..hehe.. let’s just pick one; Enactus team-building!!! *feeling excited*.. I joined this programme about 2 weeks ago which held in Port Dickson, Negeri Sembilan. Enactus, known before October 2012 as Students In Free Enterprise (SIFE), is an international non-profit organization that works with leaders in business and higher education to mobilize university students to make a difference in their communities while developing the skills to become socially responsible business leaders. *just copy this from wiki..:P*. So, in USIM enactus, we are assigned to conduct three projects and I had chosen the Bambusia project in which we have to plant bamboos and supply the sprout to our seniors who make the Bambusia product. For your information, Bambusia product (powder) had won a prestige award in British Invention Show, London. *feeling proud*. I think that’s enough for the Bambusia’s background.

Actually I want to talk about our team-building. It held for two days where the first day we had a briefing, discussion and presentation about our project. It was a long and tiring day, you know, you have to brainstorming and such until midnight..(but not reached 12 am actually..hee). Meanwhile for second day; outdoor activities!! It was so fun and exciting. At the morning, we were rafting. It was my first time experiencing rafting, and we had to build our raft by ourselves. My hand was hurt when tying the rope but thankfully I didn’t get injured. It took us about twenty minutes to build the raft. After finished, we go rafting! Everyone in my team shouted ‘One! Two! One! Two!' when paddling. The highlight is my team was the FIRST in reaching the finishing point..hehe...*proud again*..after rafting, we had ‘Explorace’. There were five checkpoints and in every checkpoint, there are task assigned to us. I really like the task for the third checkpoint where we had to weave (anyam) ketupat palas. It was a new experience for me watching people makes the ketupat. J Although we were so tired, but it was enjoyable and I can see a good teamwork along the activities held.




Okay, now we get back to the real topic; Strategic Management. This week, we learned about corporate strategy. We learned on how business diversification can enhance shareholder values. Diversification is a corporate strategy to increase sales volume from new products and new markets. For example, Air Asia which previously only offered flight service, now also offered insurance, hotel and telephone service. Diversification into new industries is always merits strong consideration whenever a single-business company encounters diminishing market opportunities and stagnating sales in its principal business. This means, it is not a simple decision yet important to expand our business. There are three steps that must be passed to diversify into a new business; the industry attractiveness test, the cost-off-entry test, and the better-off test. We can enter new businesses by any of these three forms which are acquisition, internal startup, or joint ventures with other companies. If I am about to diversify my bakery shop in the future, I would like to use joint venture.. maybe with a beverage company. But I need to do a research first to consider all factors in diversification process. Miss Ummi had advised us to start business small and do not be greedy. I agreed with her. Start big does not mean we will surely get a big profit, right?
I think that’s all for new..feeling suuuper sleepy right now..nyte everyone!        


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