FACULTY OF BUSINESS MANAGEMENT

BACHELOR OF BUSINESS ADMINISTRATION (HONS) INTERNATIONAL BUSINESS

(BA 246)

SUBJECT:
STRATEGIC MANAGEMENT (MGT 657)

COMPANY REVIEW & STRATEGIC PLAN:

myNEWS HOLDINGS BERHAD

LECTURER:
MADAM NURUL AZLINDA BINTI CHEK TALIB

GROUP:
BA246 5B

GROUP’S NAME: MATRIX NO

NUR ATHIRAH BINTI HAMIDON 2018635242
SITI NURHAZIRAH BINTI SAADON 2018659816
AIN KAMALIAH BINTI ABD RAZAK 2018226734
NOR ASYIKIN BINTI SUAINI 2018225244
SITI KHADIJAH BINTI JALANI 2018272368

SUBMISSION DATE :7TH JANUARY 2021

ACKNOWLEDGEMENT

Assalammualaikum Warahmatullahi Wabarakatuh;

Alhamdulillah, first of all, we would like to thank Allah S.W.T. for His mercy and
help in giving us the mission that He had given us. Even though we were faced with some
difficulties in completing this assignment, we still managed to complete it before the due
date.

The completion of this assignment could not have been possible without the help of so
many people. So, we would like to take this opportunity to thank everyone who has been
involved in this assignment.

We are very appreciative and grateful to our beloved lecturer, Madam Nurul Azlinda
Binti Chek Talib, who teaches strategic management courses (MGT657) for giving us the
opportunity to do this assignment and to provide all the encouragement and guidance that has
helped us a great deal in doing and finishing this assignment. We are extremely grateful to
our lecturer for offering such strong support and guidance.

Finally, we would like to express our appreciation to all the beloved family and
friends who have done their best to help us, either directly or indirectly, by giving us a great
deal of motivation to keep up with the challenge and willingness to spend some time with us.
Without their support, we may not have been able to finish this assignment well.

Thank you so much.

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TABLE OF CONTENTS

PAGE
ACKNOWLEDGEMENT i
TABLE OF CONTENTS ii

1.0 EXECUTIVE SUMMARY 1

2.0 COMPANY REVIEW

2.1 COMPANY BACKGROUND
2.2 VISION AND MISSION
2.3 ORGANIZATIONAL STRUCTURE
2.4 THE MAIN BUSINESS OFFERED BY THE COMPANY
2.5 SWOT ANALYSIS
 INTERNAL FACTOR (STRENGTH & WEAKNESSES)
 EXTERNAL FACTOR (OPPORTUNITIES &
THREATS)
2.6 MAIN INTERNAL FACTORS FOR MYNEWS
3.0 STRATEGIC PLAN
3.1 TOWS MATRIX
 3.1.1 SO STRATEGY
 3.1.2 WO STRATEGY
 3.1.3 ST STRATEGY
 3.1.4 WT STRATEGY
3.2 IFE MATRIX
3.3 EFE MATRIX
4.0 FINDINGS AND DISCUSSION
4.1 THREE POTENTIAL ALTERNATIVE STRATEGIES
4.2 QSPM
5.0 CONCLUSION
6.0 REFERENCES
7.0 APPENDICES

ii
1.0 EXECUTIVE SUMMARY

Strategic planning is organisational management where the activities to be used are intended
to set the main target and concentrate on the progress of a company to ensure that the aims of
the company are accomplished and to further lift the name of a company to be more
advanced. Not only that, it is also important to report any problems to the appropriate
department in order to ensure that the organisation identifies the problems that arise and
enhances the problems faced by the company.

By constantly carrying out strategic planning, the company will ensure that it is at a
secure level that will prevent the organisation from failing or going bankrupt due to a failure
in strategic planning. Not only can business be simpler with preparation, and a company
should expect a profit or a fight to see the performance in the future. An effective fight
therefore requires the cooperation of all parties, and without the support of the members of
the organisation, the organisation cannot accomplish the objectives of the organisation.

This assignment is necessary to carry out a business review. The company that was
chosen by us is myNEWS, so that each of us can do some research about this company as
well as answer all the questions in this assignment. In this assignment, the company review
consists of the background, vision and mission, the organisational structure, the main
business offer of the company and the SWOT study. In addition, it also contains a strategic
plan consisting of a recommendation for organisation, strategic management phases, Swot
Matrix (SO strategies, WO strategies, ST strategies, WT strategies), IFE Matrix and EFE
Matrix. Very last, follow up on findings and discussions that involve three potential
alternative strategies that can help to achieve long-term goals.

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2.0 COMPANY REVIEW

2.1 COMPANY BACKGROUND

myNEWS is the holding company of the group that establish in Malaysia on December
1996. Its homegrown press and convenience retail chain. The company has expanded from a
single 200 sqft newsstand to Malaysia’s biggest homegrown retail convenience store chain.
MyNEWS founder is Dang Tai Luk, and with his wife Ling Chao. The first store he opened
in Mid Valley Megamall on 25 December 1996 and in June 2020, the company build more
than 530 outlets, with majority is located in Malaysia. MyNEWS have serving almost 6
million customers every month and has more than 2000 employees. MyNEWS also doing
join venture partner operates in WHSmith stores in Malaysia which is the UK’s leading
retailers. WHSmith also producing fresh food producer Gourmet Kineya where ready to eat
meals to their stores. In addition, the group also partnership withstores that producing bakery
products which is Ryoyupan Baking Co and located in Kota Damansara.

MyNEWS are collaborate with Bison Stores Sdn Bhd to manage and expend their
company outlets across Malaysia. Then Bison become a print media store and grew to
convenience outlet chain for news and also shopping. With the process when Bison start up in
early stages, the company success open 10 outlets in 3 years during the operation and achieve
100th outlet in 2007. When Bison already grew their company, the dealer of industry, Bison
Stores has a straight to several of Malaysia’s biggest publishing houses for their source
printed goods

The company of myNEWS is growth than its competitiors itself such as 7-Eleven and
Family Mart’s but it was a positive and a humble beginnings because the founder of
myNEWS Dang Tai Luk, has been award with Entrepreneur of the Year Malaysia in 2019.
Last year of myNEWS performance was 20.1% of their revenue which is RM393.36 miliion
and this is a strong performance from the company. They still infancy when we compared to
Japan and Thailand. MyNEWS have a passionate and really proud to built a 100%
homegrown under their brand to make myNEWS be better and more better daya by day.

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 2.2 VISION AND MISSION

Vision – Give the sustainable platform to all myNEWS stakeholder accordingly the great
report of economic, social and environmental contributions

Mission – create a good of values citizen corporation to build the sustainable and ethical

2.3 ORGANIZATIONAL STRUCTURE

2.4 THE MAIN BUSINESS (PRODUCT OR SERVICES ) OFFERED BY THE

COMPANY

The company of myNEWS are producing the largest of magazine to other convenience
products. For example household items, cigarette, food and beverage, some of pharmacy
products and personal hygiene, candy, snacks, drinks and their natural mineral water which is
Dasani that their co-propriety brand. myNEWS also have variety of services in selected outlet
including when customers wants to prepaid their top-up for mobile service, reloads the Touch
‘n Go card, pay the bill payments, money remittance services and automated teller machines,
photostat when any customer really needed in emergency, agent to changing the money to
Western Union and Travelex, and courier services under myNEWS company.

3
 2.5 SWOT ANALYSIS

In the globalization era, most of the countries have becomes more urbanised. Regarding to
this it is undeniable that convenience store has play an important role for customers because
of the new norms of commodity. As we know that myNEWS is one of the successful
convenience store that come from Malaysia. Thus, before achieving a successful they are
some SWOT analysis that have been done for myNEWS.

As we know every organizations have their own strengths this is includes myNEWS.
There are some of myNEWS strengths based on the SWOT analysis. The first strength is
myNEWS has become second-largest convenience store operator in Malaysia with an
establishing brand name. In 2020, myNEWS has launched a new logo and tagline which is
“Always Welcoming, Delightfully Surprising” this is to show that its brand that positioning
as a preferred convenience store in Malaysia. As the second-largest convenience store in
Malaysia it show that myNEWS is one of the most preferred and high demand by the
customers. In fact, according to Dang Tai Luk is the CEO of myNEWS he said that finally
myNEWS has become one of the highlight convenience store in Malaysia after 25 years of
operation. All of this happens because he managed to innovate and change the company
concept and make plans to move forward.

Second strength of myNEWS is they have a hand-on and experienced management

team. Regarding from the analysis we can said that myNEWS is a business that supports,
engages and motivates their employees. They also promote work life balance and they also
provide training for their employees. Moreover, because they have experienced management
it easy for them to trains their employees. In fact, myNEWS has more than 2000 employees
and all of their employees will be given systematic training to ensure that they really know
about their job scopes and with the knowledge regard their job scope they will place as front
liners in the organization. Therefore, with hand-on and experienced employees this give a
strength to myNEWS company to be more successful and well established convenience store.

Third strength is myNEWS is a flexible and an independent home-grown convenience

store player in Malaysia. As June 2020 myNEWS has more than 530 stores that majority of
them located in urban area of Peninsular Malaysia. Since their opening in 1996, they have
become the largest home-grown retail convenience store chain in Malaysia. In September
2013, myNEWS has launched their convenience store mobile truck. This makes them as the
first convenience store in Malaysia that has their own store truck. Based on the idea of having

4
convenience store mobile truck, it also will give job opportunities to youths and young
working adults. The convenience store mobile truck is also available in every states of
Malaysia not only in Klang Valley.

Moreover, based on our SWOT analysis myNEWS also have some weaknesses. The
first weaknesses is as to compare myNEWS have smaller size then its competitors in
Malaysia. The competitor is 7-eleven which have more than 2400 store chain all around
Malaysia. This make myNEWS has left behind from their competitors. It is really difficult for
myNEWS to compete with them. Asa we know that the competitors stores are located all
around Malaysia, but most of the myNEWS convenience stores are located in urban area. It
shows that it did not cover all around places and it will make their customers feel difficult to
react to their store. As we know that a good choice location will play important roles to a
business especially for convenience stores. It needs to be place at or near public transport
such as MRT or LRT so their customers will easily to reach.

A second weakness is myNEWS only depends on their human resource only. They
basically operate based on the number of their employees. It shows that if myNEWS does not
have good human resources it will affect their sales. What if the employees cannot do their
jobs properly and it will give myNEWS a bad reputation. Besides, myNEWS also need to
invest more to their human resources because when they fully depend on them they need to
make sure that their resources are really good. In the era of globalization most of the
convenience stores are now shift to e-commerce platform. They know that e-commerce is one
of the easiest way to fulfil all the customers’ needs at once especially when it can provide
last-miles services. According to market observer the last-mile provider for customers cannot
be prevent and it will cause a spill over effect towards the business. Regarding to myNEWS
when they only depends on their human resources it will decrease a chance for them to be
more successful.

Third weaknesses is myNEWS has an organization that less efficient and that needs to
be improve. This situation is referring to the weaker and low existing resources and the
capabilities of myNEWS organization in the market. It can be conclude that myNEWS has
less efficient of their organization. To overcome this problem they need to improve their
organization so they can align with the markets trends. Moreover, with this problem it gives a
negative impression to their customers because of the weaker overall performance in their
organization that make them far behind their competitors. This shows that overall

5
performance in an organization is really important to show a big overview to the customers.
Besides, myNEWS has limitation of resources, capabilities to compete with other
convenience stores, skills that their employees have and they do not have effective
organization performance. This makes them far behind the other convenience stores
competitors.

Furthermore, based on the SWOT analysis we found out that they are some
opportunities that myNEWS have to enter convenience store industry. In 2016, myNEWS
under the Brison Store Sdn Bhd has licenced their brand to a third party to establish outlet in
Myanmar. In fact, that this agreement was wholly-owned subsidiary for Bison Stores Sdn
Bhd with Singapore based company is SMI Pte Ltd. Based on the agreement it stated that
SMI will appoint Bison Store as their independent contractor that will help them to manage
the company and they also need to provide advisory support to the business. In return, SMI
will pay Bison Store with minimum monthly fee or paying based on the percentage of the
revenue that they get whichever the higher. Besides, SMI also need to pay all the costs such
as salaries of the employee, expenses and remuneration. Based on this opportunity it will help
myNEWS to enhance their brands internationally.

A second opportunity is myNEWS has sign franchise licence that offer faster growing
opportunities. In 2020, myNEWS has decide to bring in the leading Korea convenience store
which is CU that operated by BGF Retail Co Ltd. As we know that CU has celebrate with 7-
eleven and has dominate the convenience store in South Korea. In fact this collaboration has
made them earning the higher convenience stores in the country. Moreover, this will give
biggest advantages to myNEWS if they join the franchise licence because they can grow up
their population and they also can change their customers’ behaviour. The reason for CU to
open their stores in Malaysia and collaborate with myNEWS is they know that myNEWS
have really good “ready-to-eat” (RTE) food. But, myNEWS does not have any good
marketing strategy so with this franchise licence it could help myNEWS to become more
successful and well know brand around the world.

The third opportunity is other convenience stores owners are envy with the variety of
products with high quality that myNEWS offer to their customers. MyNEWS has offered
“ready-to-eat” (RTE) food and bakery such as nasi lemak onigiri and curry laksa. These
menus were available at all myNEWS outlets. According to the CEO of myNEWS Mr Dang
Tai Luk he said that even they are local and home-grown brand they also can offer a high

6
quality of Japanese expertise by using their new technology. All of the new products that they
offer are to meet the customers need and to fill the country’s standards of food quality. In
2017, myNEWS have joined two joint venture (JV) agreements with two companies. The
first is Gourmet Kineya Sdn Bhd this company is an inflight meal producer and the best
restaurant chain operator. This will give myNEWS big opportunities to become more
successful with guide that Gourmet Kineya Sdn Bhd has given. The second JV agreement is
with Ryoyu Baking Co Ltd is a bakery products supplier. As we know that myNEWS also
want to become more successful with their bakery products because this one of the demand
from their customers. Thus, this JV agreement is helping myNEWS to get new opportunities
in bakery industry and produce high quality of bakery foods.

Nevertheless, when we are doing a business a threat from the external factors is one of
the points that we need to consider. Based on the SWOT analysis that has been conduct
towards myNEWS we found that the first threat is competitive industry. As we know that
convenience store is really competitive then other industry because they not only compete
between the local stores only but they also need to compete with international convenience
stores that operate in Malaysia. For myNEWS for the local markets they need to compete
with 7-eleven which has established before them. Besides, 7-eleven also have opened their
store in other nation and this show that myNEWS have strong competitor that really well
experience about convenience store. Moreover, myNEWS also needs to compete with other
international convenience store that operated in Malaysia such as FamilyMart, KK Super
Mart and many more. Based on the analysis it shows that convenience store is a competitive
industry and it really need full commitment for the organization to compete with other
companies and organization.

The second threat that myNEWS has is they may face a slowdown in consumer
spending. During this pandemic, myNEWS sales have become low because the customers
cannot come to convenience store and purchase. Moreover, myNEWS also not offer variety
of products in their stores. This make the customers feel less attractive to purchase at their
stores. The products that they offer are limited and not easy for their customers to get.
Furthermore, they also do not have a good marketing strategy that can attract customers to
buy at their convenience store so this will make their sales decline and the customers cannot
spend more at their stores. Besides, myNEWS need to compete with other convenience store
competitors that can offer more products to their customers. The location also plays an
important role for myNEWS this is because they do not have stores all around Malaysia

7
different with their competitors. They only have stores in urban area only. This give limitation
for their customers to comes and makes them have low consumers spending.

The third threat is myNEWS does have labour shortages. As we know to become
leader in one industry we need a strong backbone which means we need to have support from
our own workers. Moreover, when open a new convenience store myNEWS need to make
sure that they has a good amount of employees that experienced and can do a better job while
serving the customers. The amount of labours is really important in convenience store
because if they do not have many employees it will make the uncontrollable in the
convenience store. This also will lead the employees to do two jobs at a time. Thus, because
of the covid-19 the sales of myNEWS also decline because at some point that they need to
closed their stores because of the virus. MyNEWS also need to lay off their employees
because of the decline revenues. Due to that when they start over their stores they faced a
shortages of labours that can work with them.

2.6 MAIN INTERNAL FACTORS FOR myNEWS

Based on the SWOT analysis that have been made they are some of the internal
factors that can be highlight as the most important factors for myNEWS convenience store.
The first important factor for myNEWS is their experienced management team that can
works and solve problems immediately. This has made the management team as the most
functional team in myNEWS organization. Besides, the management team that has good
experience in solving a problem such as employee’s recruitment and the way that they
manage their convenience stores that located all over Malaysia. Moreover, it really needs a lot
of effort to conduct and pay attention in the ways how the stores are operates. Thus, an
experienced management team is really important for myNEWS convenience store.

Furthermore, myNEWS also stated that their human resources are the most important
internal factor. This is due to the employees that works at myNEWS are really well trained
and have job experienced. This resources really valued for myNEWS because it really not
easy to trains the employees and to get an experienced employees nowadays. Besides, the
products that myNEWS has offer to their customers also one of the most important internal
factor for them because the types of products that demand from the customers. As examples,
the beverages, nasi lemak onigiri and asam laksa were most demanding products by their
customers.

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3.0 STRATEGIC PLAN
3.1 TOWS MATRIX STRATEGIES WEAKNESS

SO STRATEGIES WO STRATEGIES

- Use the brand image to - Expanding the market of

extend the presence in physical store to both the
OPPORTUNITY emerging economies urban and rural
ES (Myanmar)
- Extend the franchise license - MyNEWS encourage
maintaining the flexible greater cross-border
convenience store player cooperation strategy.
(South Korea)
ST STRATEGIES WT STRATEGIES
THREATS
- Focus on marketing and - Release a range low cost
advertising to gain more products to minimize the
customers and reduce price challenge from the
competitive pressure. competitors.

- Sustain the multi-tasking - Joint venture with a good

labor during Covid-19 partner which is GRAB and
Coca-Cola.

TOWS Matrix is a SWOT analysis that help the company to access their own current
internal and external situation. In this part, there is only the situation and not the actions that
need to be planned. By combining both external environment’s opportunities and threats with
the internal organization’s strengths and weakness, these four analysis (TOWS) was formed
which are SO strategies, WO strategies, ST strategies and WT strategies [ CITATION Adm17
\l 1033 ].

3.1.1 SO Strategy

In this part, the company would like to be in a position where it can maximize for both
Strength and Opportunities (SO Strategy).

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Myanmar

First, use the brand image to extend the presence in emerging economics (Myanmar
And South Korea. With the title of second-largest convenience store operator in Malaysia
with an establishing brand name, MyNEWS use this opportunity to establish outlets in
Myanmar in 2016. This adds the popularity and increase market access of MyNEWS itself to
the global market in the platform of retail convenience store. Bison Consolidated Bhd set
their foot to Myanmar with cooperation with SMI Retail Pte Ltd. It is because MyNEWS can
see the opportunity to the economic enhancement and development in terms of more stock
market established, potential of GDP Growth by USD200 billion+ by 2030, the expansion of
consumer class which potentially the consumers spend by USD100 billion 2030 instead of
USD 35 billion 2010 [ CITATION Yan15 \l 1033 ].

South Korea

Second, in the third quarter of 2020, MyNEWS expands their retail chain with
franchise license of the South Korea in Malaysia. With the cooperation of BGF Retail Co Ltd,
engaged in the operation of convenience stores, MYCU Reatail Sdn Bhd (MyNEWS
subsidiary) plans to increase their market to 500 stores in the next five years. This effectively
step made the expectation of the greater demand of 70% by the end of 2021 [ CITATION
Arj20 \l 1033 ]. This is an opportunity for CU to stand out among any other retail
convenience store like FamilyMart, 7-eleven, 99 Speedmart and so on. With the experienced
management skill since 1996, Dang Tai Luk sees for the better gross margins even to break
RM30 million to RM40 million in capital expenditure (capex).

3.1.2 WO Strategy

In this part, every companies have their own weaknesses but the environment provides plenty
opportunities to resolve those weaknesses. The other word is Mini-Maxi which the company
have their own responsibility to minimize the weaknesses and to maximize the opportunities.

First, expanding the market of physical store for both the urban and rural. For the
company like MyNEWS, it has their own target consumers which, the company always focus
on urban consumer and opened the store in that area instead going for both rural and urban

10
like Speedmart, 7-eleven, and so on. There are 570 outlets in Malaysia which much more left
behind from 7-eleven which is 2400. As we can see, being MyNEWS consumers, we can see
the MyNEWS located at the most of popular malls instead of big physical store located in
both rural and urban like 7-eleven. So, by opening the stores in both urban and rural will
make the consumers have the chance to enjoy MyNEWS products and being recognized by
all generations. This will open the opportunity of MyNEWS to expanding their market and
being recognized from the entire Malaysia and its acquisitions.

Second, MyNEWS encourage greater cross-border cooperation strategy. Due to the low
performance in the low existing resources and the capabilities of MyNEWS in the market,
MyNEWS take any of opportunity to be in the trend market. For the second quarter of 2020,
Am Investment Berhad said that the expectations of performance of MyNEWS Holdings Bhd
to remain poor and continuously fall due to covid-19. This happened obviously because of
the less store openings, higher food processing centre (FPC) related costs and lower average
spend [ CITATION Ahm20 \l 1033 ]. Thus, today in the year of 2020, MyNEWS start to
follow up the trends and be corporate with the global business such as bring in the Korean
snacks or foods to the convenience store as the franchise licensee and also MyNEWS take the
action to step forward to go global in Myanmar. An achievement by MyNEWS Holdings Bhd
named Entrepreneur of The Year Malaysia because Dang being a role model for purposely
entrepreneurship after 23years ago of starting the business.

3.1.3 ST Strategy

In this part, ST played the important part of Maxi-Mini. With the strategy to maximize the
strengths of a company while minimizing the threats through these strengths. For example, a
company with a strong financial economies, cost- reducing skills could lower its- prices to
drive out.

First, focus on marketing and advertising to gain more customers and reduce
competitive pressure. A huge marketing advertisement needed in the platform of television,
radio, and all the social media to get the awareness of the consumers itself. And also
MyNEWS start doing their food truck since 2013 which it is will help the MyNEWS to
increase their market and can stand at the same line of 7-eleven soon. MyNEWS also made a
an excellent to change the brand to the something fresh, such as unveiled a new logo and
tagline to reinforce its brand positioning as the preferred convenience store in Malaysia. On
the celebration of the 24th anniversary, a new tagline made happened, “Always Welcoming,

11
Delighfully Suprising. This tagline will bring their image to market the products of
MyNEWS in both internal and externationl [ CITATION JAn20 \l 1033 ].

Second, sustain the multi-tasking labor during Covid-19. During this crisis of
pandemic COVID-19, most of the company had to lay off workers due to stabilizing their
financial economies. Due to this situation, MyNEWS sustain their multi-tasking workers and
keep sending their workers to undergo the course that needed but the company. And due to
the long time establishment of company, MyNEWS managed to keep the hand-on and
experienced management team. A lot of people nowadays suffering unemployment and the
company suffering the labor shortages. In order to expand the outlets, MyNEWS need a few
of workers but due to limitation in the movement, a lot of workers stay unemployment and
made the company to close their shop temporarily. But referring to the excellent
management by MyNEWS, it can be possible to MyNEWS to have the good plan from time
to time to cover the sales revenue for ensuring the stable financial or company economies
such as the collaboration with another companies or make a good charity campaign and so
on.

3.1.4 WT Strategies

In this part, a lot of the lowest things that we can see as a challenge to the company and it is
the most defensive part. The potential for a better change is small but with the optimistic
actions, to survive in the industry was possible. It is called by Mini-Mini strategy that to
eliminate or minimize both weaknesses and threats.

First, release a range low cost products to minimize the price challenge from the
competitors. To fight the low cost rival, it is impossible to reduce all the products price at the
store, instead MyNEWS must come out with the good plans and strategies such as MyNEWS
need to focus on just one or a few consumer segments: deliver the basic product or provide
one benefit better than rivals do. This strategy will continuously keeping on and must always
observed from time to time because reduce the product is such taking a risk for having high
sales revenue or low sales revenue. But in a research, low-cost companies stay ahead of
market leaders because consumer behavior works in their favor [ CITATION Nir06 \l 1033 ].

Second, joint venture with a good partner which is GRAB and Coca-Cola. MyNEWS
found themselves at the big trouble of the big amount of dents which are RM113.3million
falling due within a year and liabilities of RM80.2 million due beyond that. So, due to this
recent report of liabilities, MyNEWS had total of RM114.8 million more than the

12
combination of its cash and short-term receivables [ CITATION Sim20 \l 1033 ]. By this
unhealthy financial report, MyNEWS tak the initiative to make a collaboration with GRAB
and Coca-cola to leverage their revenues.

Collaboration with Coca Cola

By this brilliant collaboration since last 2020, they offer limited edition Coca-Cola truck for
only RM9.90 for the spending RM15 in a single receipt. They also offer for the ‘Tap & Win
prize games, cash vouchers and products worth up to RM88,888 are waiting for you’ to win
the prize until December 31 with the simple steps. Next, with this collaboration also the
customers can get Maru Kafe special meal discount untul 20% discount which will benefit
the customers so much. And lastly, for every purchase of exquisite HOTWHEELS BASIC
CAR, the customer can purchase MILO UHT 200ml for RM1.

Collaboration with GRAB

With the collaboration of MyNEWS with GRAB since 2018, an apps that offer grab-and-go
convenience in Malaysia make the cashless purchases and monitor loyalty points and this will
make the enhancement of the loyal customer. This retail chain is simultaneously running a
promotional campaign for users of MasterCard [ CITATION Ins18 \l 1033 ].

With these collaboration, MyNEWS will take a depth breath to continuously sustain in the
industry of retail chain convenience store in Malaysia and also global.

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 3.2 Performance IFE Matrix
IFE MATRIX

NO. STRENGTH WEIGHT RATING WEIGHT SCORE

1 Inestor inesting 0.06 4 0.24
in myNEWS
2 Second biggest 0.05 4 0.20
convenience and
got vast
3 Services to the 0.04 4 0.16
customer for
top-ups and pay
bills
4 Hand on and 0.05 4 0.20
experienced
management
team.
5 Flexible and 0.02 4 0.06
independent
home-grown
6 Profits rise to 0.07 4 0.28
RM83.7 million
based on
myNEWS
financial year.
7 Increased the 0.06 4 0.24
amount of store
in Malaysia
8 Profit increase 0.05 4 0.2
to RM137.2
million.
9 Won an award 0.03 4 0.12
for their services
to community
such as CSR
10 Operating profit 0.03 4 0.28
grew until

14
 RM6.3 million.
NO WEAKNESSES WEIGHT RATING WEIGHT SCORE
1 Stores 0.06 2 0.12
opened a bit
late rather
than their
competitors
2 Spend to much 0.06 2 0.12
on utility
3 Any apps for 0.05 2 0.10
linking the
store's
stakeholders
is don’t exist
4 Does have any 0.05 2 0.10
loyalty program
for consumer
activities
5 Have smaller 0.03 2 0.06
size
6 Some of their 0.05 2 0.10
product prices is
to expensive
7 Only depends 0.06 1 0.06
on their human
resources only
8 Decline tax 0.06 2 0.12
after their
profit report
according to
financial
year
9 Loan in 0.04 1 0.04
financial cost
increasingly
10 More 0.04 2 0.08
improvement

15
 for company
because less
of efficient
Total 2.88

In Internal Factor Evaluation (IFE) is analyse for internal factor to manage business
based on their strengths and weaknesses to compete the competitive advantage in order to be
successful. For myNEWS’s strength is should be highlighted is where their investor are
investing in the company since myNEWS previous financial year is very strong rather than
previous financial year. Most of the investor are from Malaysia with the weighted score of
0.06 and the rating is 4 demonstrate how strong the element is. As we mention before,
myNEWS is the second biggest convenience and got vast. It give us a great impact to
influence especially to the small business with weightes score of 0.5 and rating is 4. Their
services to the customer is also the strength for them such as top-ups and pay bill with
weighted score of 0.04 and rating of 3. The team of myNEWS experience with a good
management and the weighted score is 0.05 and rating of 3. myNEWS also popular with their
flexible and independent home-grown for the concept of their store. The weighted score it
will given 0.02 and rating of 4.

In 2018, myNEWS profits rise to RM83.7 million based on myNEWS financial year.
The weighted score of 0.07 and rating is 4. When the profit of the company grows up, the
opened a new store in new location in Malaysia which good to expand their business and
make more well known. Weighted score given is 0.06 and rating is 4 and from that the profit
become increase to RM137.2 million with weighted score of 0.05 and rating is 4. myNEWS
won an award for their services to community such as CSR around the world with their
management and another workers to make relationship not only with the customers but also
with the community. The weighted score of 0.03 and rating of 4 and with that their profit
increase to RM6.3 million with weighted score of 0.03 and the rating is 4.

Next, we moving to myNEWS weakness and of course every company big or small
have their own weakness to improve time to time. First of all, myNEWS store was open a bit
late rather their competitors because they had a small capacity and assets at first until they
grew so much with the investor. The weighted score is 0.06 and rating is 4. myNEWS also
spend to much on their utility expenses on 2019 that weighted score is 0.06 and rating is 4.
The company don build any apps for the store for their investor looking for investing to make

16
any investor much more easier. So that, the weighted score is 0.05 and rating is just 2.
myNEWS also don’t do any program that loyalty their consumer activities to attract the
customers. Any other benefits for time to time is limited only and it makes people don’t
usually buy at myNEWS stores. The weighted score of 0.05 and rating is 3.

In myNEWS company, they have a smaller store that sometimes it makes people don’t
come usually. It makes the spaces so limited and small for people come and go. That the
weakness for all myNEWS stores in Malaysia. The weighted score is 0.03 and rating is 4. The
product and services itself from myNEWS is a bit expensive rather than other store and
consumer will choose another stores from myNEWS competitiors which is Family Mart or
Speed Mart. Customer now only wants the cheaper product and services with a good quality.
They can survey from other stores and the weighted score of0.05 and rating is 2. myNEWS
stores is only depends on their human resources rather than technologies. They still using
technologies system for their company but more depend on human resources. It makes the
company grew slow because human more rest and variety of attitude rather then technologies.
The weighted score of 0.06 and rating is 2. For the tax issue, myNEWS is decline based on
their financial year report in 2018. The weighted score is 0.06 and rating is 2. The company
also hae loan in financial but the cost is increasingly that make a bad report of financial and
effected to their net profit. The weighted score of 0.04 and rating is 2. myNEWS needs a lot
of improvement because some part they have less efficient to control on the business. The
weighted score is 0.04 and rating is 2.

Then after evaluating the cumulative scores from the table above for the weights and
the ratings for each factor, the measurement of the EFE matrix resulted in a weighted score of
3.01.

17
 3.3 Performance EFE Matrix
EFE MATRIX

NO OPPORTUNITY WEIGHT RATING WEIGHT SCORE

1 Involve eWallet 0.06 4 0.24
payment method
on the system
2 Enter myNEWS 0.05 4 0.2
product to the
other
convenience
stores industry
3 Grow with faster
franchise and
sign the licence
4 Produce a lot of
variety products
5 More payment 0.06 4 0.24
method such as
gift cards and
paying mobile
bill not just
selected bills.
6 Malaysian 0.05 4 0.2
government
help to improve
technology
integration
7 Got a lots of 0.04 4 0.16
demand since
established in
residential areas
8 Demand for 0.06 4 0.24
loyalty card
9 Improve their 0.06 4 0.24
technology and
supply chain

18
10 Got more space 0.05 4 0.2
in rental a store
NO THREATS WEIGHT RATING WEIGHT SCORE
1 Slow take action 0.05 2 0.1
to consumer
spending
2 Competitive 0.05 2 0.1
advantage
3 Don’t have the 0.05 2 0.1
shortage of
labour
4 RM100 per 0.06 2 0.12
month increase
in minimum
wage.
5 Household try to 0.06 2 0.12
reduce their
expenses during
the pandemic.
6 Similar stores 0.05 2 0.1
opened nearby
such as 7-
Eleven,
Speedmart and
Family Mart
7 Competitors 0.05 2 0.1
taking retail
space
8 Supply prices 0.04 2 0.08
started to
increased that
effect the
company profit
9 Big company 0.05 2 0.10
like Petronas and
Shell is also 24
hours same with

19
 myNEWS
10 Robbery 0.06 2 0.12
cases since
the store is
opened 24
hours.
TOTAL 3.01

For External Factors Evaluation (EFE) management need to know what the impact of
external factor of the company to influence on the business such as government regulation
changes that effect to their own business. For myNEWS company of course they have several
of factors. First of all in 2019, myNEWS got a payment on eWallet method to make the other
customer using of the company services to pay bills and so on. The weighted score is 0.06
and rating is 3. Then they started to enter more other products to the convenience stores
industry to get more commission to the other store. The weighted will be given is 0.05 and
rating is 4. My NEWS company start to grow faster franchise and they sign the licence to
other grow company for expend their knowledge and start from that myNEWS produce a lot
of products to separate in other convince stores. myNEWS improved their services to more
payment method since the community using ariety of payment method for adapt the new
changing of the technologies. They not only pay for selected bills but have ariety of bill
customers can pay to myNEWS company. The weighted is 0.06 and rating is 3.

For government issues, in Malaysia the government itself are helping to improve the
technologies integration to make the small, medium or big companies easy to adapt with a
new norm. the weighted score of 0.05 and rating is 4. Since the stores opened and located in
many state, they got a lot of demand in residentials areas because there is where the stores in
located in strategic places. The weighted score of 0.04 and the rating is 4. Day by day
customer requested for loyalty card and myNEWS did it to enhance and care their customer
with gave a benefits that will give them a lot of profit. The weighted score is 0.06 and rating
is 3. myNEWS also improve their technology and supply chain according to their product.
The weighted is given 0.06 and rating is 4. Lastly, they try to find a more spaces in their
stores since some off myNEWS store got a small space, to make their customer comfortable
when coming to the stores.

20
 Next is myNEWS threats that cause any damage to the company and business abou the
organization, product and customers that effect the company. First threats is they a bit slow to
take the action in consumer spending. So that, the weighted score of 0.05 and rating is 2. For
competitive advantage of course all business have all the competitors that build a similar
business with the company itself. To the competitors of myNEWS is weighted score of 0.05
and rating is 4. Next they don’t have a shortage of labour on the company. The weighted
score of 0.05 and rating of 2 only. For wages for every employees in crease RM100 every
month that makes the employees have ups and downs for their motivations. The weighted
score is 0.06 and rating of 3. As we know for al household of course need to reduce their cost
since all the product and services to myNEWS stores was expensive to other competitors
such as Speed Mart and Family Mart. To that it will reduce the customers of the company that
one of the customer that expend more expenses in their life. The score given is 0.06 and
rating is 3.

Next is some of business that have similar business with myNEWS like mention before
was opened nearby of the company. So that, company have much choices to choose with their
own preferences. The weighted score is 0.05 and rating with 4. Some of the competitors of
myNEWS is taking some of their spaces when the stores is nearby with the others
competitors. The weighted score for this is 0.05 and the rating is 4. The supply is started to
increase the prices that will effect of cost the company and net profit. That will increase the
expenses and that not good for the company. The other of competitors that have a really big
company such as Petronas and Shell is also opened in 24 hours. Because some of myNEWS
store are opened in 24 hours that a bit competitors to them since customers can go to the other
place rather than their stores. The weighted score of 0.05 and rating is 3. For robbery cases
will get the issues since the store is opened 24 hours on some located stated. The weighted is
0.06 and rating is 2.

After evaluating the cumulative scores given for the weights and the ratings for each
factor, the results are as follows; the measurement of the EFE matrix resulted in a weighted
score of 3.01. While the IFE Matrix estimate resulted in a weighted score of 2.88 or 2.88.

3.4 Competitive Profile Matrix

Family Mart myNEWS 99 Speedmart

Critical Success Weight Rating Score Rating Score Rating Score

21
Factors
1 Advertising 0.10 3 0.30 4 0.40 3 0.30
2 Market 0.02 3 0.06 4 0.08 3 0.03
Penetration
3 Customer 0.08 3 0.24 4 0.32 3 0.24
Service
4 Store Locations 0.20 4 0.80 4 0.80 3 0.60
5 R&D 0.03 3 0.09 3 0.09 2 0.06
6 Employee 0.10 3 0.30 3 0.30 3 0.30
Dedication
7 Financial Profit 0.10 4 0.40 4 0.40 3 0.30
8 Customer 0.10 3 0.30 3 0.30 2 0.20
Loyalty
9 Market Share 0.05 3 0.15 4 0.20 2 0.10
10 Product Quality 0.10 3 0.30 3 0.30 3 0.30
11 Top 0.02 3 0.06 3 0.06 3 0.06
Management
12 Price 0.10 4 0.40 3 0.30 2 0.20
Competitivenes
s
Totals 1.00 3.40 3.55 2.69

Two of myNEWS's main competitors are Family Mart and 99 Speedmart, which they
have branched all over the globe, to create CPM matrix. This two rivals are picked because
they are both active in the retailing sector for convenience and the rivals that steal the market
share of myNEWS. Based on the above table, it revealed that compared to Family Mart and
99 Speedmart, myNEWS had the higher ranking. In general, it should be stressed that
myNEWS is now the best organisation.

4.0 FINDINGS AND DISCUSSION

4.1 THREE POTENTIAL ALTERNATIVE STRATEGIES

Alternative Strategic is a method designed to assess the way in which
greater potential for reaching a chosen target can be used for human and
material business capital. Strategy is a detailed term and it is frequently

22
used in numerous ways. There are three alternative strategies that
MyNEWS companies can implement.

First, open more branches in rural area. This is because in rural

areas there is less competition compared to in urban areas. Therefore,
MyNEWS will probably be the first company to open a branch in an area.
This situation may cause MyNEWS to have almost no competition, which
makes MyNEWS profits easier. This is because, the residents in rural areas
will definitely focus on MyNEWS rather than having to go to the city to get
their necessities. In addition, lower overhead expenses in rural areas.
When MyNEWS opens their branches in rural areas, MyNEWS will most
likely have lower overhead expenses. When MyNEWS has lower costs, that
means they will make more profits. Therefore, they can allocate funds to
improve their products and services better. MyNEWS can even use the
funds they have for expansion purposes.

Second, produce a variety of new products. As MyNEWS companies

produce more new products, they will definitely come up with some
methods to target new markets, increase market share, sell more and
increase revenue streams. When MyNEWS creates more new products,
they will definitely be able to increase their competitive advantage. In
order to produce new products or model versions, they would undoubtedly
also be more creative, in order to beat competition in regional, national
and global markets. In addition, through increased functionality,
customization and interpersonal services, they are able to provide more
creative goods to consumers and better satisfy their needs. Next, react
rapidly and create particular goods where there are few to no rivals. They
will also certainly give their rivals a step forward as they produce new
goods. The introduction of this innovative product would also bring clients
to the showcase and launch of this industry.

Last but not least, improved business efficiency. Efficiency is one of the
factors that make a business profitable. MyNEWS may be able to increase employee
productivity efficiency. While this process takes quite a long time, especially for companies
like MyNEWS which has many employees, one of the key areas of inefficiency is the human

23
workforce. They must take the time to examine human resource records and determine if
there are problems among their employees or otherwise. Each dilemma that arises must be
well and perfectly solved. The strength of the Internet can also be used by MyNEWS. For
company owners, the Internet has been a very wide-ranging platform, because if we don't use
it correctly, then we can miss a lot of content. In fact, social media has been the perfect way
for organizations to establish partnerships with their clients. They will also reach out to
clients and create close relationships that will keep customers returning to their company for
years to come, whether they are a local or global sector. It can save a little money on
marketing as well.

24
4.2 QSPM

25
 Open more Produce a Improved
branches in variety of business
rural area new efficiency
products
NO OPPORTUNITY WEIGH AS TAS AS TAS AS TAS
T
1 Involve eWallet 0.06 3 0.18 0 0 4 0.24
payment
method on the
system
2 Enter myNEWS 0.05 4 0.2 0 0 3 0.15
product to the
other
convenience
stores industry
3 Grow with - - -
faster
franchise and
sign the
licence
4 Produce a lot
of variety
products
5 More payment 0.06 3 0.18 2 0.12 4 0.24
method such
as gift cards
and paying
mobile bill not
just selected
bills.
6 Malaysian 0.05 4 0.2 3 0.15 3 0.15
government
help to
improve
technology

26
 integration
7 Got a lots of 0.04 4 0.16 0 0 2 0.08
demand since
established in
residential
areas
8 Demand for 0.06 3 0.18 2 0.12 3 0.18
loyalty card
9 Improve their 0.06 4 0.24 3 0.18 4 0.24
technology
and supply
chain
10 Got morere 0.05 4 0.2 0 0 2 0.1
spaces in
rental a store
NO THREATS WEIGH AS TAS AS TAS AS TAS
T
1 Slow take 0.05 2 0.1 3 0.15 3 0.15
action to
consumer
spending
2 Competitive 0.05 4 0.2 4 0.2 3 0.15
advantage
3 Don’t have the 0.05 2 0.1 3 0.15 3 0.15
shortage of
labour
4 RM100 per 0.06 3 0.18 3 0.18 3 0.18
month
increase in
minimum
wage.
5 Household try 0.06 3 0.18 4 0.24 3 0.18
to reduce their
expenses
during the
pandemic
6 Similar stores 0.05 4 0.2 4 0.2 4 0.2

27
 opened nearby
such as 7-
Eleven,
Speedmart
and Family
Mart
7 Competitors 0.05 4 0.2 2 0.1 3 0.15
taking retail
space
8 Supply prices 0.04 2 0.08 1 0.04 3 0.12
started to
increasing that
effect the
company profit
9 Big company 0.05 3 0.15 3 0.15 3 0.15
like Petronas
and Shell is
also 24 hours
same with
myNEWS
10 Robbery cases 0.06 2 0.12 2 0.12 2 0.12
since the store
is opened 24
hours
TOTAL 3.05 2.1 2.93
NO STRENGTH WEIGH AS TAS AS TAS AS TAS
. T
1 Investor 0.06 4 0.24 3 0.18 3 0.18
investing in
myNEWS
2 Second 0.05 4 0.2 3 0.15 3 0.15
biggest
convenience
and got vast
3 Services to the 0.04 3 0.12 0 0 2 0.08
customer for top-

28
 ups and pay bills
4 Hand on and 0.05 3 0.15 1 0.05 2 0.1
experienced
management
team
5 Flexible and 0.02 4 0.08 2 0.04 3 0.06
independent
home-grown
6 Profits rise to 0.07 4 0.28 3 0.21 3 0.21
RM83.7 million
based on
myNEWS
financial year
7 Increased the 0.06 4 0.24 0 0 3 0.18
amount of
store in
Malaysia
8 Profit increase to 0.05 4 0.2 0 0 2 0.1
RM137.2 million.
9 Won an award 0.03 4 0.12 0 0 4 0.12
for their
services to
community
such as CSR
10 Operating 0.03 4 0.12 0 0 4 0.12
profit grew
until RM6.3
million.

NO WEAKNESSES WEIGH AS TAS AS TAS AS TAS

T
1 Stores opened 0.06 4 0.24 0 0 3 0.18
a bit late
rather than
their
competitors

29
2 Spend to much 0.06 4 0.24 2 0.12 3 0.18
on utility
expenses
3 Any apps for 0.05 2 0.1 0 0 4 0.2
linking the
store's
stakeholders is
don’t exist
4 Does have any 0.05 3 0.15 0 0 4 0.2
loyalty
program for
consumer
activities
5 Have smaller 0.03 4 0.12 0 0 3 0.09
size
6 Some of their 0.05 2 0.1 3 0.15 3 0.15
product prices
is to expensive
7 Only depends 0.06 2 0.12 2 0.12 0 0
on their
human
resources only
8 Decline tax 0.06 2 0.12 1 0.06 1 0.06
after their
profit report
according to
financial year
9 Loan in 0.04 2 0.08 2 0.08 2 0.08
financial cost
increasingly
10 More 0.04 2 0.08 1 0.04 4 0.16
improvement
for company
because less
of efficient
TOTAL 3.1 1.2 2.6

30
 To identify the best strategy for MyNEWS, three strategies are considered and evaluated
product development and market development. Which are open more branches in rural
area, produce a variety of new products and improved business efficiency .
After analyzing the impacts of these three strategies on IFE and EFE, it can be observed that total
sum of attractiveness of the three scores is open more branches in rural area, which is
higher than produce a variety of new products and improved business
efficiency. Therefore, it is the best to said that open more branches in rural area is the
best strategy for MyNEWS.

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