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Strategic Analysis
Waste Management (Singapore: EGC)
SUBMITTED TO:
Institute of Certified Public Accountants of Singapore
12 Aljunied Road,
#04-02 KH Plaza @ Aljunied,
Singapore 389801
MISSION
To help organisations manage their waste efficiently and safely through comprehensive
waste minimization, recovery and disposal solutions thereby adding value to their
operations and complementing the social efforts of building a cleaner and safer
environment.
them well within the waste management industry. This analysis will fully investigate the ability
of the organisation to exploit growth opportunities in a slow growing, but expanding industry.
Key Points:
Driving forces which affect the external environment in which waste management
companies, such as Eco Group of Companies, operate in are: regulatory influences and
government policy changes, fuel prices, and new technology that would reduce
Key success factors which influence the market and fashion successful companies
include the following: rights to acquire and possession of landfills, the ability to control
Current Strategy
production the generation of hundreds of million tons of hazardous and non-hazardous waste
every year.
This pattern follows the general trend in early economic growth described by the environmental
Kuznets Curve (Kuznets 1995, Barbier 1997). This development model, together with new
lifestyles associated with greater affluence, has led to rapid changes in consumption patterns, the
generation of large quantities of waste and changes in waste composition. These are the drivers
behind exponentially growing waste management problems in Asia and the Pacific.
Although most countries in Asia and the Pacific have ratified the Basel Convention on the
Control of Trans-boundary Movements of Hazardous Wastes and their Disposal, the region as a
Asian markets hold very good longer term potential for waste management companies in most
areas of solid and hazardous waste management. The Asian market for solid and hazardous
waste management was estimated at approximately $3.0 Billion (US) in 1995 by EBI.
aid organizations (NGOs) who direct a very large amount of effort to this region. Most
internationally funded investment projects now mandate that proper environmental studies and
The recent decline in the Asian economy has had an impact on the potential market for services
in the near to middle term. The impact will be felt most strongly on product sales and services to
the private sector, which require hard currency or local financing. For this reason Asian markets,
ECO Group Of Companies
40 Tuas West Road, Singapore 638389
Tel: (65) 6517 3600 Fax: (65) 6862 0133
particularly those in countries most affected by the economic setbacks such as Thailand, Korea,
Malaysia, and Indonesia, may not be as attractive in the short term. However, the need for waste
management will not disappear and service will be required at some point.Over the past two to
three decades in Singapore, rapid industrialization and economic development have caused a
tremendous increase in solid waste generation. The yearly disposed solid waste increased from
0.74 million tones’ in 1972 to 2.80 million tones’ in 2000. Solid waste management in Singapore
has traditionally been undertaken by the Ministry of Environment (ENV), with the participation
of some private sectors in recent years. The hierarchy of solid waste management in Singapore is
waste minimization (reduce, reuse and recycle or so-called 3 R’s), followed by incineration and
landfill which is the most preferred disposal method. Waste minimization, the utilization of
incineration ashes, industrial waste management is regarded to be the major challenges in the
future.
2010
GDP per capita in selected countries in Asia and Pacific Region (source: GEO 2000)
Singapore was given the top rating for the overall quality of its environment survey covered 12
Asian territories. It also topped the list in managing air pollution, traffic congestion and for its
Recent developments in waste management technology are providing new ways to clean up
industrial wastes and yielding efficient new production methods that are less polluting than
traditional processes. Waste management technology can even help convert industrial and other
wastes into useful products. All of these technological changes create new business opportunities
for EGC. While they use these technologies, they need to work with the ENV co-operatively
because the ENV may not approve all of the technology for the waste management industry.
Also, markets for waste treatment plants, equipment and instruments are becoming uniform in
the global arena. It will boost international cooperation in the development of products and
services utilizing the new technology. The program is an excellent opportunity for EGC.
A few players in the region, the competition is fierce because of powerful customers
who prefer a modern and consolidated service provider for their national operations.
coupled with powerful customers and low loyalty proves that the industry is fiercely
intense.
In the growing industrial world disposal of the waste have been a key agenda for any
company but more important is the way the waste get dispose off. Many companies
nowadays are seeing this in a way to generate revenue. It has attracted many
New entrants: Entry for the new entrants is mainly driven by the capacity to have
expertise and resources in handling waste. For a startup its very difficult to get land
End users/Buyers: In this type of industry it important what kind of product can be
generated. Majority of the industrial waste is in form of water pollutant with the
increasing government and international regulation buyers are keen to ensure that
the wastes are properly disposed. Also emphasis is on recycling of the product at
minimum cost.
Suppliers: Eco group have already have the technological know-how, and have
already started to build the processing facilities to support this type of future
technology. Facilities to process waste are normally huge in size, modern, and in
compliance with strict federal regulations. They require strong, large, and competent
Substitutes: Industries have no other option other than to develop their own waste
management strategy or to rely on specialist like Eco group of companies. With ever
Specialist Company to take care of their industrial waste and generate some revenue
continue to improve relations with governmental agencies that have the power to
revoke any operating licenses. The Waste Minimization Unit of the Resource
The Unit develops, promotes and oversees the implementation of program on waste
minimization and recycling. It also carries out studies to enhance waste recycling. In
and adopt and practice the principles of Basel Convention in dealing with Tran
ECO business involves mainly waste management in the industrial and commercial
industries with forte in hazardous and non-hazardous waste. It also provides third-
customers by offering one-stop services and facilities to treat both hazardous and
non-hazardous wastes.
headquarter of the group and has three wholly-owned subsidiaries namely ECO
management solutions for hazardous wastes, ECO Resource Recovery Centre Pte
Ltd (ECO-RRC) - provide waste management services for industrial solid non
hazardous wastes And ECO Energy Recovery System Pte Ltd (ECO-ERS) :
The corporate vision identifies where the firm’s orientation for the future is in order
to best serve stakeholders’ needs. The vision incorporates current realities and any
expected future conditions to create an ideal scenario within a relevant time frame
the vision statement is trying to achieve the best-in-class in each part of their
advantage, they must also understand their own firm’s resources and capabilities, as
relevant strengths and weakness, decision makers can better see the potential of
these resources and capabilities for adding or subtracting value to the firm’s
processes. This understanding can then lead to generic strategies that will most
successful for their stockholders. The Company’s plan for growth will be grounded
in margin expansion from better pricing while continuing to cut costs, and they will
apply a disciplined approach to growing their returns from new capital investments.
The Company plans to pursue operational excellence by focusing on what they are
productivity. They are committed to finding the best practices throughout their
Company
This strategy responds to threats of government regulations and landfills and also
with the government, EGC can possibly minimize the government regulations and
create some items to their favor. With increasing consumption, landfills are
becoming full and the numbers of available landfills become limited. This initiative
will try to urge consumers to recycle and buy reusable items, and promote the
company.
Strength)
As with other firms in the industry, EGC employs a lot of human labor for it
services. This particular resource represents a large piece in EGC’s cost and its
union, in certain conditions; this would be a challenge for EGC. This alternative
favors using EGC’s strong cash in hand to deploy fleets of automated pick up trucks
As based on research and analysis, two solid recommendations that will enable
2. Expand Waste-to-Energy
In order to take advantage of opportunities within the market Eco group will need to
continue their focus on energy generation. This will come in the form of increasing
to stay ahead of other competitors and look for continuing alternatives for waste
disposal. Eco groups will also need to continue to improve and focus on recycling
Eco Group will need to continue their focus on environmentally friendly practices
and maintain there compliance with governmental permit regulations. They will
and recycling programs, to minimize their impact on the environment. They will
also continue to make customer service process improvements and change to meet
the needs of the growing customer segments. It should continue to keep its current
It is anticipated that Waste Management will move further into the areas of
recycling, and waste-to-energy as America moves toward a goal of zero waste. This
addition, we identified key success factors which the firm should take into serious
energy. By adjusting fleet operations, the firm is better able to develop its ability to
mitigate risk from volatile oil prices. And in diversifying into the waste-to-energy
strongly recommend immediate implementation of our action plans, which will help
http://www.eco.com.sg/english/index.htm
http://www.frost.com/prod/servlet/report-toc.pag?repid=P114-01-00-00-00
http://www.unep.or.jp/ietc/publications/spc/State_of_waste_Management/2.asp
http://www.singstat.gov.sg/
http://www.singstat.gov.sg/stats/themes/economy/indprd.html
http://www.singstat.gov.sg/statsres/ssc/ssic2010.html
http://www.unep.or.jp/ietc/publications/spc/State_of_waste_Management/3.asp
http://www.unep.or.jp/ietc/publications/spc/State_of_waste_Management/4.asp
http://www.gdrc.org/uem/waste/continuum/continuum.html
http://unep.org/geo/geo4/report/GEO_Report_Full_en.pdf
Michael E. Porter, especially the 1998 book Competitive Strategy: Techniques for
in Part 3, Manila.
http://www.adb.org/Documents/Books/ADO/2003/part3.asp
http://www.wastemanagement.com/
Waste Management Inc., SWOT Analysis. October 2005. p.1-10. Business Source
www.houstonchronicle.com
http://www.businessweek.com/investor/content/feb2002/pi2002021_880
http://www.mswmanagement.com/msw_0007_history.html
http://www.singstat.gov.sg/pubn/reference/yos10/yos2010.pdf
http://www.ban.org/main/about_BAN.html