BPMN 3023 Strategic Management

PLUS Expressway Berhad

Prepared by:

Nur Khalina Binti Khaidzir 220275Shazwani Sharah Binti Mohd Robi 220279Tan Guat Leng 220429Goh Siau Mui 220445

Lecturer: Prof Madya Dr. Hartini Bt Ahmad

Company Background PLUS Expressway Berhad or PLUS Malaysia Berhad.

Largest highway concessionaries or build-operate-transfer (BOT) operator company

in Malaysia.

A member of UEM Group

Largest listed toll expressway operator in Southeast Asia, Asia and the eigth largest in

the world.

Founded on 27 June 1986.

VISION AND MISSION

Vision

To be a Premier Expressway Group in the Global Arena

Mission Providing Efficient and Safe Expressway Network that Enhances Quality of Life

Macro Environment AnalysisPolitical Need to comply with the environmental law set by the government

• Air elements legislation, Noise Elements Legislation, Waste Elements Legislation, soil element legislation, Impact on Environment Legislation, Energy Elements Legislation ( Environmental Quality Act 1974)

Comply Federal Roads (Private Management) Act of 1984 when construction. Federal government has the power control the toll rate PLUS Expressway Berhad is supervise by Malaysia Highway Authority (MHA)

Economic Rising oil prices Fluctuating interest rates Economic slowdown

Social demographic People's lifestyle

• Most people own a motor vehicles• Many people busy in their life• Save time• Convenient • Faster

Technologies CCTV Surveillance Global Positioning System (GPS)

Environmental Trend to reduce the global warming

• Reduce congestion at toll plaza thus reducing GHG emission (SmartTAG, Touch’n Go, PLUSTrack)

Save the tree• Reduce need for transit tickets, receipts, forms & paper (Online reporting and monitoring for toll operation, receipt-on-demand)

Legal PLUS Expressway Berhad ensure that it does not violate any laws and regulations

• Malaysian Employment Act 1955• Industrial Relations Act 1967• Employee Provident Fund (EPF) Act 1991• Occupational Safety and Health Act 1994• Anti-Discrimination Law

INDUSTRY ANALYSIS

Substitute Product.

Alternative travel mode such as airplane and rail.

Potential Entrants.

Potential entrants is too low because the high capital requirement

of entry may limit new entrants because of financial and

background with government support.

Current Rivalry

Hopewell highway infrastructure peer group

Ccr sa

Atlantia SPA

But PLUS is the largest in malaysia and south east asia

Bargaining Power Of Buyer

The bargaining power of consumers is low because consumers will use the

PLUS highway as the best alternative because they can save travel time.

Strength Weakness

• Largest listed toll expressway operator in Asia and the eighth largest in the world

• Customer friendly services like rest areas, 24X7 vehicle repair service

• Maintains more than 950 km of expressways that connect the major cities along the west coast of peninsular Malaysia

• Strong financial performance over the years

• Increasing debt burden is a concern• Lack of business alliances• Lack of international operations

Opportunity Threats

• Network expansion and acquisition• Improving traffic management• Enhancing operational efficiency by

making use of technology

• Rising oil prices may decrease total traffic volume

• Fluctuating interest rates• Economic slowdown may hamper

commercial traffic volume

FIRM ANALYSIS