Corporate Strategy (Diversification and the Multibusiness Company)

Alhamdulillah Allah gives to us a big opportunity to continue our life to make a good deed today….ok we start this topic with the story in tutorial class. My class have advantage for this topic because Miss Ummi assign to us to read and tried to answer a one article which is about UMW Holdings. The question given is look easy but…most of us cannot to answer that question huhu..Before we started the tutorial, she give to us a simple quote “the early bird get the worm, the second mouse get the cheese” we divide to two groups to elaborate the meaning of it.  My group got the second sentence. In simply meaning, the quote is related with a strategy to achieve something what we aim.

Ok.. UMW Holding is the one of company involve in automotive assembly and distribution. Besides that, UMW Corporation also contributes others three core business which are automotive components OEM and REM, heavy components and oil and gas drilling services. They are faced big challenge to sustain the position in market and to gain the profit because they need to compete with others rival which is in same industry, automotive industry. Thus, to growth their business they are decided to venture into the oil and gas industry in Malaysia. This move was part of the effort to buffer the effect of the pending fiercer competition in the Malaysian automotive industry.

So, back to our topic, UMW Corporation does the diversification in their core business to make company growth although the fierce competition in the Malaysian automotive occurs. Its look has big risk but as long as the capabilities and resources is enough, they can move on and execute in good strategies management. Do not be a greediness to gain profit when we have no enough capability…Alhamdulillah on the lecture session, we have a bit preparation on this topic (^_^)