Business Environment Factors
Write an essay on Genting Malaysia.
Genting Malaysia is a Malaysian company that is diversifying its operations by venturing into partnership with 20th Century fox. Although, the Malaysian company focuses more on the leisure business but by getting into business with 20th century Fox it will enhance its viability of operations as well as help in enabling a captive market locations in Malaysia. Moreover, the partnership will be beneficial in enhancing the consumer outlook.
The micro as well as the macro environment helps in giving insight to the business environment as well as helps in evolving the strategies that could prove beneficial for the new venture (Burkeand Noumair2015).
As far as my knowledge is concerned the economic business environment sets forth the conditions and forces that emerges with customers, suppliers, creditors, distributors, shareholders, and competitors, as well as the society in which the organization operates and the trade unions. These are the forces that help the organization in achieving their inputs and selling out their outputs, on a daily basis (Harper and Charles 2015). Different factors of the microenvironment are controlled by the managers of the firm. The firm like Genting Malaysia needs to further analyze the economic growth, entrepreneurial and employment opportunities consistent with the goals and targets of Malaysian tourism. However, the focus arises in two segments that is the basic framework of factors that impact the company and secondly, the ability that emphasizes on the production and its output on a regular, weekly and monthly basis (Scott et al 2015).
In my opinion,there are wide ranges of affects any business and their operatingenvironment which can be referredto as the macro environment. However, macro environment refers to the PESTEL analysis as it is one of the key features that help in evaluating beginning of the marketing process (Gupta and Abhishek 2013). Moreover, the basic forces that highlight the economic conditioning of a partnership are given by economic, political, social as well as technological factors.Political factors for any business influences the regulation and power spending of the business. However, the politico-legal factors of the Genting Malaysia and 20th Century fox highlight that the Malaysia is operated by powerful and influential group of political group that affect the connection other than the legalization of the business(Alencer et al 2015). However, this may impact the functioning of the partnership as it had to provide an overview of the venture. On the other hand, when it comes to economic forces, the Malaysian tourism creates a home base for the companies like 20th Century Fox to acts as a beneficiary to the operations (Sadgrove and Kit 2015). According to my knowledge, the continuous efforts made by the government will help in solving problems relating to the tourism and low currency rate that will provide a base for the venture to enhance the foreign national access, competitive environment, size and scale for the company (Harrison and Andrew 2013). The social nature of the customers pertaining to different values and attitude of the society and it greatly affects the business. There are many countries, where it is tough for the business to survive if they function against the culture of the country they are operating. It is important for the organization to study the nature of the social dilemmas on social costs as well as the environmental factor that instill the customer to experience the new theme park (Hill et al 2013).
On the other hand, the micro environment of suppliers is mainly essential for the production process in procurement of raw materials, employees or parts. It is important for the manager to make sure that the source of the supply is reliable. This can be enabled through the basic nature of 20th century fox in enabling different and technologically advanced materials so that not only existing customers but also the new customers could be associated with the venture (Argote and Linda 2012). The distributors, on the other hand, have not been receiving enough revenue from Genting Malaysia because the low investments it had been receiving across years (Genting Malaysia- Annual Report 2015). However, the only way it can be solved is the marketing methods rather promotional methods that will not only help in enhancing the popularity but will also enabling different distributors as partners in the business.
In my opinion, opportunity helps a company to uplift the organization in the local as well as international market. The opportunities that Genting Malaysia with 20th Century Fox will prosper in is that this new venture will not only help in build organization factors of competence but will also establish the economic factors that is pooling of costs as well as resources and strategic factors of gaining access to new technology in the industry (Burton et al. 2015) . Moreover, the nature of this venture will enhance the tourism business by facilitating multi culture from different countries and will engage in generating a promising potential for Malaysia. As mentioned, the organization’s revenue is not in a good condition. However, the partnership with 20th Century Fox will help in pooling over profits as well as losses that will combine together be an excellent opportunity for the company.
The threats the partnership can eventually face is through the risks that it will accustom in the investments as well as the capital structure. This will hamper the acquisition growth when compared to the competitor like Star Cruise. The scant data on revenue will ensure risk in supplies. However, in my consideration this can be solved by taking proper planning, designing and testing of the finance allocations which will lead to lowering of variable costs. Conversely, to ensure the threat of competitive environment, delegation of authorities would be fruitful that will be achieved by employing a different individual with a different perspective in the process of analysis. The immediate competition can be recommended through by up taking of pricing and promotional systems and by adding attractive events to it. Nonetheless, the economic condition cannot be overlooked because supplementing new manpower and technology will lead to high development costs. The threat can be unraveled through attractive packages that could be efficient in attracting customers.
Genting Group takes up growth strategies in becoming the leading conglomerate companies. Selected departments are operation department, finance department and Public Relations Department. In operation department, existing strategies includes green management for Genting Malaysia (Alencar, Boritz and Carnaghan 2014). Environmental care plays an important role in the key sustainability interests in Genting Malaysia. Resorts World Genting is one of the integrated resorts in country as surrounded by more than 130 million old rainforest. Genting Malaysia ongoing departments include Genting Integrated Tourism Plan as carried out with minimal impact in cash of lush green surroundings. It makes effort in preserving flora and fauna that are rare in nature. Rainforest includes 30% of total exquisite in bird species found especially in Malaysia (Arbex 2015).
Finance Department of Genting Malaysia handles financial as well as monetary transactions in areas like Hospitality, Casino and Theme Park (Hill, Cronk and Wickramasekera 2013). All financial transactions include accounting, income audit as well as financial reporting and cost control of Genting Group. Genting Malaysia issued 2.4 billion as wholly owned units with aggregate nominal values of 5 billion. This proceeds from issuance in using operating expenses as well as capital expenditure and working capital requirements at the same time. It includes redevelopment of properties in Genting Malaysia in alignment of local stock exchange (Burke and Noumair 2015). CIMB Investment Bank as well as Maybank investment bank considers as joint principal advisors and joint lead arranges in case for medium-term note programme. Finance Department needs to take care of financial issues faced by Genting Malaysia at construction of theme park. Electricity bill will be higher and financial manager role is to find alternative strategies in managing huge capital. It is required for the finance department in bringing budget restrictions as far as possible.
Public Relations and Communication Department divides into three major areas including:
The core function of this particular department is to strive in bringing project positive image of business organization. Some responsibilities involve community involvement, corporate event management in maintaining special liaison in and by government officials (Genting.com. 2016). Genting Group makes strategies in handling incidents and crisis management in planning publicity events and press invitation for publication of Experience Genting Magazine. It mainly engages in resort-wide content management as well as handling social media and responding towards customer feedback.
Resorts World Genting is one of the world largest destination resort operation in licensed partnership with Twentieth Century Fox. It was developed as the first international Fox theme park. In the year 2016, new theme park at Resorts Park was fully immersed and entertainment experience for FOX recognized as well as powerful film brands. FOX brand is popular because of the studio earned reputation in case of gaining quality, creativity as well as longevity for the same. Genting was honored as it was partnered with Twentieth Century Fox in realization in division of class-integrated report (Harper 2015).
After analysis, I found out that partnership and making new theme park will lead in usage of electricity for maintaining current properties. Theme park needs to be attractive and full of lights for attracting tourists so electricity plays an important role and global issues. In my opinion, Genting Malaysia requires in usage of electricity in hotel rooms, casino as well as streets for carrying out the business activities as far as possible. Partnership of two well-recognized brands is beneficial brand image will help in bringing tourists for visiting new theme park. At the same time, I would like to point out the repercussions of brand image if one fails in contributing, support as, and when required at the time of construction of theme park. Both the brand need to share the profits, loss as well as resources for attainment of future goals and objectives in an overall manner (Hussain and Rehman 2013). In my opinion, Genting Malaysia requires in finding innovating ways for conservation of electricity as far as possible.
According to me, Genting Malaysia should take innovative steps for handling issues like replacing halogen lighting with LED lighting at first place. This will automatically help Genting Malaysia in saving more than forty percentage of electricity. As I was referring Genting Annual Report, it was clearly understood that Genting Malaysia had taken initiative by switching off external lighting for complete one hour. I would like to suggest that in the above strategy that finance department should make ways in cutting down cost. It should also generate revenues as well as promotion of greener environment in the most appropriate way. I would like to emphasis on the fact that switching off lights will help in saving electricity largely and money at the same time. Genting and 20th century fox faces global issues in landslides that link as Genting Highlands and Genting Sempah. This is because of landslides as well as bad weather at the same time. They had to clear forest areas for constructing new theme parks, as it requires more space. This loosens up soil as well as results in heavy rainfall in the upcoming years. This proves to be dangerous as well as people shows less interest in visiting such places with families and friends. It is advisable for the organization in handling these situations and brings out precautionary steps for future purpose.
Global Issues to be addressed for business
I have discussed on the partnership between Genting and 20th century fox that made it clear for the strategies used for attainment of profits in the upcoming years. Branding of products is essential and that too with recent rise of technology (Mooradian, Matzler and Ring 2013). On critical analysis, I would like to address the fact that technology and media are two powerful way for using for promotion purpose in every possible ways. I have highlighted issues faced by Genting and 20th century fox that needs proper attention as far as possible. I would advise Genting and 20th century fox for engaging in collaboration as well as bringing new innovative activities that solves issues in faster form. Partnership between Genting and 20th century fox had proved that these two resembles high brand image and can be successful by implementing collaboration and innovation activities (Mooradian, Matzler and Ring 2013). Reason for collaboration add with the fact that Genting and 20th century fox wanted in adding new and innovative activities in comparison with old theme park. Innovation is one of the important attribute that has the capacity in changing old monotonous activities to new creative form. I would also like to add on the challenges faced by Genting and 20th century fox as innovative ideas leads to expectations by public. People start expecting more after collaboration of two huge giants in respective industry. It is difficult in living by their expectations with changes policies as well as regulations as far as possible (Hussain and Rehman 2013).
On the contrary, I would like to point out some of the countering attributes faced by its direct competitors. According to me, it is advisable for Genting and 20th century fox in finding out the weakness of other competitor to gain in USP for retaining in the global marketplace. Genting and 20th century fox have made strategies in initiating innovative things for keeping competitive edge with other nearest competitors (Schneider and Schmidpeter 2012). In my opinion, I always stress in taking feedback from the existing employees as well as customers in order to bring improvement in every possible ways. This genuine feedback needs proper attention by Genting and 20th century fox. It is essential in conducting market research for understanding perceptions as well as mindset of targeted potential customers. Target market should be evaluated at first place so that products and services are made for satisfying the required customers. Media Evolution brings culture transformation in and within Genting and 20th century fox. This will help in generating revenues in the upcoming years (Schneider and Schmidpeter 2012). Genting and 20th century fox lacks essential advertising and social media attention for the purpose of brand awareness in the near future. I would like to focus the fact that social media is one of the important way for promotion of products and services for future analysis purpose. Malaysian population uses internet and other technological advancement for carrying out the daily activities in smoother form (Scott and Davis 2015). We often get interested in buying products and services by word of mouth communication especially from friends and families. Genting and 20th century fox should focus on existing customers as well as employees as it is cost effective in possible ways. Retaining of existing customers is far better in comparison with acquisition of new customers. USP of Genting Malaysia is the casino that differentiates from its nearest competitors. With rapid development, it is noticed that branding of products serves as great challenges in Genting and 20th century fox (Tang and Tang 2014).
The partnership and the business should follow certain factors in order to survive in the business and they are as follows:
• Corporate Social Responsibility (CSR): A clear vision of business accountability is promoted by the corporate social responsibility to a wider range of stakeholders, apart from shareholders and investors. The main concern of the CSR is the protection of the environment, the good being of the community, the employees and in general the civil society both in the present days and in the future. The concept of the CSR is advocated by the fact that no corporations can act as separated economic entities functioning separately from the broader society (Schneideret al 2012).
• Transparency: Transparency is one key word in business that most of the business leaders are scared of. In the present world transparency in business helps the organization to survive in the competitive market. Transparency is not only about the personal relation with the customers, it can also act as a driver of productivity because clarity in business helps in bringing a greater sense of ownership and meaning to the employees. It is important for the organization to give the people clarity about the importance of their work and the affect that it has on the entire business. Because this gives them a greater idea about the purpose (Arbex 2015).
• Accountability to the stakeholder: Employees are the primary stakeholder of any organization. It is the employees that help in the growth process of the company. So it is the responsibility of the management to ensure the safety of the employees in the workplace, to treat all the employees equally and respectfully. By doing so the organization will be able to retain their employees and will also help in the growth process (Carrollet al 2012).
Genting Malaysia’s venture with 20th Century Fox will enable the organization to go through business environment and different opportunities and threats. However, this venture can be fruitful if the solution and sustainability measures enhance the branding as well as public image of the partnership. Moreover, according to me there should be proper viability of the assessment that could help in achieving trust, commitment, collaboration as well as value and processes in evaluation of the partnership venture.
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