SWOT Analysis for the campaign.

OBJECTIVE
To understanding the company Strengths and Weaknesses and identifying Opportunities and the Threats.
This company may gain diversification potential and reduce the risk by analyzing its capabilities.

STRENGTH

CAPABILITIES
MASTEEL, the company of steel rod OEM standstill the red sea market in steel industry for 46 years.
With its historical company developed milestone and the great passion team of pioneer staffs. The
company sustain high asset with capable cash flow and low borrowing from bank, it is the right time to
looks into other division for business investment. In fact there are not many cost occurred in the proposal,
we foresee the return for the project is 80% ROI as tighten up with college student to producing bolts and
nuts with minimum labor cost and facilities. (SEE PRODUCTION COST UNDER COST CALCULATION)

SWOT ANALYZE

ALEX CHOW XIEN LOONG SX140587KMMS04

PRODUCTION ATTITUDE
We observed the factory owned high capacity of fabrication in steel rod product where essentially to
sustain the resource for producing instead of facing insufficient materials supply. With the hightechnology of machinery and skill workers, the production department operated 24 hours with 4 days a
week set targeted at least 50,000 tons/ months by acceding on its schedule. With the condition, we do not
concern the problem of shortage of materials supply to local institute to continuing the bolts and buts
production.
Engineering student in university/polytechnic or high-level institute will participate the campaign to
produce bolts and nuts with the equipment recommended by MASTEEL. Each candidate will pass their
faculty subject by producing bolts and buts. Hence, save more cost and storage allocation in
inventories.

MARKETING CONTROL AND SALES

Most of the customer, as we targeted in the proposal, 40 45% is existing MASTEELs customer are
industry end user. There is a higher chances to pursue the new product to existing customer it is because
they are categorize as loyal customer. As a result, in the marketing parts, The Company involve in
direct marketing on domestic market, offer after sales service to secure the domestic business. The
Company do not engage any retailing or distributor in fact they enroll sales team proceeding door to door
sales and technical staff to back up product quality. This is to prevent lower sales margin or lost in
market sales as happened in previous quarter.

WEAKNESS

SWOT ANALYZE

ALEX CHOW XIEN LOONG SX140587KMMS04

HIGH MANTAINENCES ON PLANT

Production department have no choice yet to spend more time and cost of commencing daily repair and
maintenances activities due to high load of steel production. Since majority of machinery is order from
chinas supplier. Procurements team should budget at 60% of production cost to store more spare parts
and hardware in order to cut down the down time.

LOW SALES FORCE

Due to the impact of china product and high competition market, we foresee there will be low sales force
for the campaign. Bolts and nuts are new production for the group yet the team does not familiar market
trend and culture, thus the will be a buffer period for them to attempt the markets condition. As a result,
we forecast the sales will not be as idea on the first coming quarter.

QUALITY CONTROL ISSUES

Since hiring student to producing the product, the bolts and nuts might not reach to the standard quality of
minimum requirement. It is because student are lack of skill particularly hand-on experiences on
manufacturing. We expect high risk of manufacturing failure and high item reject on the production.
Moreover, the expenses will increase due to highly of materials supply. We foresee the Masteel should
store or delivery more steel rod at least 20% above budgeting to overcome failure product as an
allowances for every faculty in order to commit the target of production.
On the other hand, we foresee the control and monitor of production also become one of the issue of
losing our customer due to not able supply on time. Faculty students contain higher possibility of
manufacturing defect and poor workmanship. The cause affect our target which could not meet up the
delivery date or delaying the schedule. The worst part is we might lose sales due to losing customers
confident.

OPPURTUNITIES
SWOT ANALYZE

ALEX CHOW XIEN LOONG SX140587KMMS04

DOMESTIC AND OVERSEA MARKET

We consider the campaign for the project is a continuously supply chain business chassis because Masteel
is the mother of company /OEM to supply the raw materials and direct to the market sales. Hence, we
save the retailing and distributions fees and yet paying low output tax. We consider our sales team door
to door sales approaches might increase the users buying confident because Masteel owing the direct
branding of himself.
We could use students fair at every exhibition to promote our product with low costing budget by
showing them our production system with the presentation of company profile. Such like falcons fair,
educations fair and etc. We enroll more internship student to work with Masteel also one of the tactics to
promote our brand and market reputation.
We could funding governments fund for implementing this campaign through Ministry of Education of
Malaysia. According the education blue print, industrial sector are encourage to tight-up education
segment to manipulate quality generation fresh graduate. From the funds, we have enough cash flow to
undertake unexpected hidden cost and burden.

THREATS
COMPETITOR REDUCE PRICE
We will facing the price competition due to the narrow of market demands. Hence, other company might
reduce their price to gain more market share.

SUPPLY & OPERATION COST INCREASE

Due to the weakness of ringgit Malaysia, our raw material purchase cost might increase 10-20%. We
might facing the exceed limit of internal purchasing. We having the logistic problem due to unstable
customers purchase.
SWOT ANALYZE

ALEX CHOW XIEN LOONG SX140587KMMS04

SUMMARY OF SWOT ANALYZE

SWOT ANALYZE

ALEX CHOW XIEN LOONG SX140587KMMS04

STRENGTH

Domestic market stratergies (klang valley only)

R&D, OEM
Low labour cost.
High branding and business reputation
Good terms and payees for customer

WEAKNES

Not standardized quality

High reject / failure of production
High materials cost
Not consistency supply

OPPORTUNITIES

Supply chain business chasis

Student's fair
Funding from govement ( education's sector)

THREATS

New business concept

Low cost selling fast
QC /QA for product quality control
No financial obstacle.

SWOT ANALYZE

ALEX CHOW XIEN LOONG SX140587KMMS04

REFERENCES
1.

Humphrey, Albert (December 2005). "SWOT Analysis for Management Consulting"(PDF). SRI
Alumni Newsletter. SRI International.

2. Albert Humphrey the "Father" of TAM". TAM UK. Retrieved 2012-06-03

3. Blake, Martin; Wijetilaka, Shehan (26 February 2015). "5 tips to grow your start-up using SWOT
analysis". Sydney. Retrieved 10 August 2015.
4. Website: http://www.masteel.com.my/core-products/steel-bar/
5. http://www.bursamalaysia.com/market/listed-companies/list-of-companies/plc-profile.html?
stock_code=5098.
6. Ommani, Ahmad (30 September 2011). "SWOT analysis for business management". 5(22).
African Journal of Business Management: 94489454. Retrieved 17 March 2016.
7. MindTools Editorial Team Website :https://www.mindtools.com/pages/article/newTMC_05.htm
8. Website: http://www.swotanalysis24.com/swot-t/112579-swot-analysis-turnedproduct-and-screwnutand-bolt-manufacturing.html
9. Website: http://www.materialtree.com/tata-tiscon-500d-grade-tmt-bars

SWOT ANALYZE

ALEX CHOW XIEN LOONG SX140587KMMS04