Ttttttows Edit

8/3/2019 Ttttttows Edit

1/34

BPMN3023 STRATEGIC MANAGEMENT 2011

1. COMPANY NAME

Fast Track Solution Holding Berhad (FTSHB) is a Malaysia based

investment holding company. Design and development of business application

software, providing sales of software and maintenance services. Fast track

provides High Value Cost IT & Web Solution to both the small business and

domestic markets. Fast track was envisaged due to growing disappointment in

the apparent lack of customer service offered by most major companies in

todays technology and communication markets.

2. YEAR OF CORPORATION

Having delivered material requirement planning (MRP) solution to

Malaysian companies since 1998, Fast Track Solution is now the Number

One solution provider for Malaysian Plastic Industry. On 21 February

1998, Fast Track Solution Sdn. Bhd. was incorporated in Malaysia under

the Companies Act, 1965 as a private limited company with the name

LEC Systems Sdn Bhd and subsequently changed its name to Fast Track

Solution on 14 November 2002.

3. TYPE OF COMPANY AND INDUSTRY

Fast Track Solutions Holdings Berhad (FTSHB) is a Malaysia-based

investment holding company. The Company is a marketer and distributor

of software solutions. The Companys subsidiaries include Fast Track

Solution Sdn Bhd engaged in the designing and development business

application software, providing sales of software and maintenance


2/34


services; Fast Track SBO Sdn Bhd engaged in the marketing and

distribution of software solutions and related products, as well as provide

related services, such as installation, training and consulting services,

and CubeTech Asia Sdn Bhd (CASB) engaged in the game publishing,

development and other related delivery support services. In June 2008,

FTSHB announced that it has incorporated a subsidiary company under

the name of Cube World Sdn Bhd (CWSB) in Malaysia. On April 30, 2009,

the Company incorporated a wholly owned subsidiary, True Interactive

Sdn Bhd.

4. COMPANY VISION, MISSION AND OBJECTIVE

VISION

The new range of niche products that Fast Track Solution will be

embarking on in the future will cover the following specific high growth

manufactories such as Assembly Manufacturing, Building Material

Manufacturing, Electrical and Electronic Manufacturing, EngineeringManufacturing, Food Processing Manufacturing, Furniture Manufacturing,

Metal Related Manufacturing and Paper and Packaging Manufacturing.

MISSION

FTSHB and its subsidiaries (Group) comprise talented, dedicated,

and resourceful people who share the following mission and

commitment. The Groups mission is to be internationally recognized asone of the leading developer of online gaming in Malaysia and also total

solutions provider of mission-critical software applications for the

industrial and commercial sectors particularly manufacturing industries


3/34


under the brand name of Fast Track and employ additional

experienced staff in Research & Development (R&D), systems

development and sales and marketing.

OBJECTIVE

Main objective of Fast Track is to consolidate its position in

Malaysia to ensure that the roll-out program for its sole existing Fast

Track variant software package is implemented on schedulesuccessfully.

5 & 6. DIRECTORS OF COMPANY AND COMPANY TOP MANAGER

Datuk Manan Bin Md Said

Datuk Manan Bin Md Said serves as Executive Chairman at Fast

Track Solution Holdings Bhd since August 23, 2010. He holds a Bachelor

of Science in Mechanical Engineering from Universiti Teknologi Malaysiaand a diploma in Personnel Management from the Malaysian Institute of

Personnel Management.

Phan Sin Tian

Phan Sin Tian serves as Executive Director. H e is a Chartered

Accountant of the Malaysian Institute of Accountants (MIA). H e was

appointed as Executive Director of the Company on 1 October 2004 and

has resigned as the Director of the Company on 27 April 2010. He

previously was overseeing the development operation of the Group. He

is the co- founder of Fast Track Solution Sdn Bhd, the wholly-owned


4/34


subsidiary of the Company and the co-author and system designer of

Fast Track range of products.

Ameezan Bin Jamal

Encik Ameezan Bin Jamal serves as Executive Director at Fast

Track Solution Holdings Berhad since September 10, 2007. He holds a

Bachelor of Science in Mechanical Engineering from University of

Valparaiso, United States.

Chieng Siong Kuang

Chieng Siong Kuong serves as Executive Director. H e is an

Associate member of the Association of Chartered Certified Accountants

(United K ingdom) and a member of the MIA.

Yap Terng Sheng (retired)

Yap Terng Sheng serve as Executive Director. H e holds a degree

in Business Finance from the University of Oklahoma, USA in 1996 andlater concluded his Master in Business Administration in decision Science

in 1998 from the same university. H e was appointed as the Executive

Director of the Company on 1 May 2008.

Kok Soon Huat (retired)

Kok Soon Huat serves as Independent Non-Executive Director. He

is an Associate member of Association of Chartered Certified

Accountants since 1997. H e was appointed as the Independent Non-

Executive Director of the Company on 10 September 2007 and has

resigned as the Director of the Company on 27 April 2010.

Alex Lee Kok Hoong


5/34


Mr. Alex Lee Kok Hoong is Independent Non-Executive Director of Fast

Track Solution Holdings Berhad since January 8, 2008. He holds a LLB

(Hons) from Staffordshire University, United Kingdom and certificate of

legal practice.

Yap Ming Fui

Mr. Yap Ming Fui is Independent Non-Executive Director of Fast

Track Solution Holdings Berhad since January 18, 2008. He holds a

Bachelor in Business Administration, majoring in Management

Information Systems in Oklahoma State, United States in 1997.

Khoo Ch ee Siang

Mr. Khoo Chee Siang is Independent Non-Executive Director of Fast

Track Solution Holdings Berhad since April 27, 2010. He is Fellow

Member of the Association Of Chartered Certified Accountants, Member

of the Malaysian Institute Of Accountants and Associate Member of the

Institute of Internal Auditors Malaysia.

7. COMPANY ORGANIZATION STRUCTURE

Executive Chairman

Manan Bin Md Said

Executive Director

Chieng Siong Kuong

Executive Director

Ameezan Bin Jamal

Executive Director

Yap Terng Sheng


6/34


1. ANALYSIS OF VISION, MISSION AND OBJECTIVE

According to the vision of Fast Track Solution is a niche market

busines s application provider specifically targeting the manufacturing

environments. Currently, the company is targeting on Plastic Molding,

Plastic Blow, Molding Industries, Garment Industries, Textile Industries

and Dyeing Industries. Fast Track manufacturing is a fully integrated

manufacturing system for todays fast rapid changing manufacturing

environment. It supports make-to-stock, make-to-order, assemble-to-

order as well as batch-process manufacturing. Fast Track manufacturing

helps a factory improve its productivity by taking care of the information

system requirement of the entire manufacturing cycle, from product

planning, materials requirement planning, manufacturing execution

activities and manufacturing operations documentation.

As compared with other local software providers in the market which

offers their range of products for multiple industries, Fast Trackdifferentiates itself by offering industry-specific solution targeted toward

a particular micro-vertical market in the manufacturing environment.

Further, Fast Track is able to offer its range of products at lower prices

Independent

Non-Executive

Director

Alex Lee Kok Hoong

Independent

Non-Executive Director

Yap Ming Fui

Independent

Non-Executive

Director

Khoo Chee Siang


7/34


yet still maintaining the highest standard of quality in terms of delivering

and customers requirement and satisfactions because they use to

achieve its competitive advantage by focusing in the Fast Track

Manufacturing that tailored their product accordingly to the customer

need. Fast Track powerful intelligence business objects and work flow

engine enables them to create highly tailored applications by eliminating

the tediously slow and hard-to-maintain application customization

technique of today.

The Fast Tracks primary mission is to provide the industries with

specific solution to assist the business community in achieving maximum

business efficiency with maximum return on investment. The expertise

acquired by Fast Track Solution Holding Berhad through its own research

and development process had been proven and successfully converted

into a viable business model. Effort has also been taken by the research

development team of the Fast Track in offering its expertise to cater to

the needs of the Malaysian Small and Medium industries sectors in order

to achieve the countrys vision of becoming industrialized nation by

2020. These efforts can lead Fast Track Solution Holdings to achieve this

mission because by using the knowledge of expertise they can make

continuously improvement and innovation to their product.

To achieve the objective as mentioned by Fast Track that plans to

upgrade its existing variant of the Fast Track application by

implementing additional modules to the existing Fast Track Solution

package. It will further develop the Fast Track application and enhance

the Fast Track application products in areas of other specific industries. It

is because the Fast Track Solution Holding Berhad able to offered various


8/34


enterprise application, client service package and come out with a

comprehensive integrated application solution to shows its effectiveness

in solve the customer problem. Besides, Fast Track Solution Company

can promoting more their Fast Track Solution package that newly

innovated to the nation in other country by enhancing the current

company promotion through annual trade show, mass media advertising

and promotion and face to face to the end-user of the Fast Track Solution

Companys product. This increase the well know of their Fast Track

Solution package and make success to the launch of the new Fast Track

Solution package because the potential customer willing to try theirproduct when familiar with the new Fast Track Solution package that

have been aggressively promoted by using various type of media.

2. SWOT ANALYSIS

Strength

1. Differentiation

As compared with other software provider in the market which

offers their range of products for multiple industries, Fast Track Solution

differentiate itself by offering industry-specific solutions targeted toward

a particulars vertical market in the manufacturing environments. The

vertical market penetration of application solutions will enabled Fast

Track Solution to serves its specific customers' needs and requirements

to achieve maximum IT benefits from the business view point.

2. Specialization


9/34


In view of the variation of each customer's specific business needs

and requirements, Fast Track Solution provides integration solutions for

which each variant is a customized version to tailor each client's

business environment as a unique entity. Fast Track Solution is a niche

market business application provider specifically targeting the

manufacturing environments for the fact that manufacturing sector

contributed the largest ICT investment percentage in Malaysia market.

Currently, the company is targeting on plastic molding, garment

industry, textile industry and dyeing industry.

3. Being local

Fast Track Solution has the advantage of providing customized and

implementation services as the software is proprietary and are local and

have a dedicated customer service. Thus, Fast Track Solution can

provide better software support compared to other ERP solution

providers.

4. Effectiveness and efficiency in technology

With the effectiveness and efficiency in technology have led to

application of any significant size there are a lot of objects that work and

cooperate together. This includes a host of windows, menus, userobjects,

data parametersm and a variety of other 'glue' objects that make the

application come to life. Fast Track component design constructs allows

collections of objects and / or classes to be associated to other

components. This makes for a concise and well-defined application

structure that manages and organizes complex sets of objects.


10/34


5. Post Sales Services

Fast Track Solution is able to generate revenue from existingcustomers via software maintenance contract such as software

upgrades, software patches and so on. The ability to provide after sales

customer service and support it critical to retain existing customer base

and to build its brand awareness to tap into other manufacturing sector.

6. Strong in R&D

Fast Track Solutions policy on R&D is to innovate and createproducts that will give them a competitive advantage in the market.

They a dopt a structured approach to create its own intellectual

properties which are based on the structured system analysis and design

methodology which comprises of market research, feasibility study,

requirements specification, design, development, testing, installation

and maintenance.

7.Company Strength via financial indicator

a.

Year 2009 2008Account Receivable

turnover 2.355 0.267

Account receivable turnoveris the ratio of the number of times

that accounts receivable amount is collected throughout the year. The

account receivables turnover ratio for Fast Track Solution Holdings

Berhad is increasing in 2008 to 2009 from 0.267 to 2.355.This means


11/34


that the Fast Track Solution Holdings Berhad is having a tight credit

policy in colleting their debts.

b.

Year 2009 2008

0.293 0.089

Asset turnover measures a firm's efficiency at using its assets in

generating sales or revenue. Based on calculation above, we can see

that total asset turnover of Fast Track Solution Holdings Berhad have

increased from 0.089 in 2008 to 0.293 in 2009. It means that Fast Track

Solution is making good utilization their asset to generate sales.

Year 2009 2008

0.784 -3.079

Net profit margin is a profitability ratio that is a margin ratio .The

company performance is better because the net income that gained

from every RM 1 in sales by the Fast Track Solution Company is higher

from year 1008 to 2009 that is rise from -3.079 to -0.784.

D.

Year 2009 2008
http://bizfinance.about.com/od/financialratios/a/Profitability_Ratios.htmhttp://bizfinance.about.com/od/financialratios/f/Types_Profitability_Ratios.htmhttp://bizfinance.about.com/od/financialratios/a/Profitability_Ratios.htmhttp://bizfinance.about.com/od/financialratios/f/Types_Profitability_Ratios.htm


12/34


-0.23

Return of Assets is an indicator of how profitable a company is relative

to its total assets. The company is more efficiency in utilize its assets to

generate income. This shows by the increase of the company return of assets

from -0.27 to -0.23.

E Operating cash flow

Year 2009 2008

0.10 1.16

Operating cash flow is the cash that a company generates

through running its business. The company is more efficiency in

generate their income from the operation because the operating cash

flow is decreasing from 1.16 to 0.10.

F.

Year 2009 2008


13/34


-59.82

Times interest earned is a metric used to measure a company's ability

to meet its debt obligations. The ability for the company to decline their

earning without resulting in creditor-problems due to the non-payment of

interest is lower because the ratio is decreasing from -59.82 to -59.83.

I. Debt-to-equity ratio =

Year 2009 20080.22 0.21

Debt to Equity measures how much money a company should

safely be able to borrow over long periods of time The capacity for the

company to gearing for debt repayment is higher because the portion of

the portion of the Fast Track Solution Company total capital contributed

by the creditors and lenders is higher by increasing from 0.21 to 0.22.

Weaknesses

1. Focus on the domestic market


14/34


Fast track solution Holding Berhad has several weaknesses which

they need to address in order to compete successfully with competitors

surrounded in the similar industry. Fast track solution holding Berhads

marketing strategy focus directly on the domestic market .In Nationwide,

Fast Track Solution is gradually appearing to be the passionate

competitor of currently dominating solution providers. Fast Track

Solution users are distributed throughout the peninsular Malaysia

ranging from small scale to international Plastic and Garment

manufacturer.

Recently, Fast Track Solution Holdings Berhad focus on satisfying

the needs of specific high growth manufacturing industries in domestic

market .Actually, they should also expand their business broadly, not

just in local market due to percentages to make their organization a

success are more higher if they focus their marketing strategy in local

and international market. Due to Fast track Solution holdings Berhad is

relatively small compared to existing players in the domestic market , so

they should settle those problems by focusing on the niche market

manufacturing sectors which can provide innovative and customized

business application solutions to the chosen manufacturing sectors.

2. High Operating Cost

Apart from that, increasing in operating costs has been identifies

as one of Fast Track Solution Holding Berhads core weakness. From the

Consolidated Income Statements of the Fast Track Solution HoldingsBerhad, we can see that operating expenses have increased from

RM423,000 in 2004 to RM2319,000 in 2005 .It reflect that operating

expenses have been increased more than 5 times in 2005 .Such an


15/34


enormous operating expenses will bring harm to the organization in the

future by adversely affect the organizations income, force them to

plunge sharply and if ongoing over a longer period would endanger Fast

Track Solution itself.

In addition, based on our investigation, highly operating costs of

Fast Track solution Holdings Berhad mostly results from Research and

Development (R&D) of business software application, marketing

expenses and so on. So, Fast track Solution Holdings Berhad should

make some adjustment from the level of debt to expenses and personnel

,try to make everything into account from a neutral standpoint. Thisallows them to provide the most efficient solutions to their expenses

problems so that they can having the similar outcomes even have to

reduce the operating cost as well as they can. If Fast track Solution

Holdings Berhad unable to continue to develop and provide an new

innovative customized products to the marketplace with attractive gross

margins, then the operations of Fast Track Solution Holdings Berhad may

be materially adversely affected by its operating costs structure.

3. Lack of Team expertise

Lack of team expertise also one of the weaknesses of Fast Track

Solution Holdings Berhad. A large number of workers in Fast Track

Solution Holdings Berhad are semi-knowledgeable workers. It is very

hard for Fast Track Solution to improve the standard of quality of

Research and Development to keep up with technological changes andto develop new products and upgrade existing products. In addition, they

will feel hard to continue to market its product aggressively and to

penetrate international markets without referred to team expertise. So, a
http://www.bizcap.com/services/http://www.bizcap.com/services/


16/34


team expertise are very vital for them to help them adopted and further

enhance its current application by incorporating the latest available

information technology into current and future version of products. The

latest component based architecture, code reuse and innovative concept

can be updated via team expertise. Besides, R &D works are

continuously needed for being carried out by R&D team expertise to

create new industry specific components. Moreover, team expertise also

important for Fast Track Solution Holding Berhad to create its own

intellectual properties which are based on the effective structured

system analysis and design methodology which comprises of professional market research, feasibility study, requirements

specification, design, development, testing ,Installation and

maintenance. It is very crucial in order to ensure that Fast Track Solution

Holdings Berhad remain competitive and maintains the continuous

growth in the future.

4. Large Workforce Difficult to Manage

Fast Track Solution holdings Berhad is a Malaysia-based

investment holding company. The Company is a marketer and distributor

of software solutions. So, there are a large number of workforce under

their company to contribute for the success of the company. Workforces

are a key success for company. Due to this factor, Fast Track Solution

Holdings Berhad feel very hard to fully control all the workforce to make

sure that all the of operation of company run smoothly in the future.

Internal conflict would be occurred if they cant come to an agreement

among different department because most of them have their own

perception on management. In addition, large number of workforces

maybe an impetus to encourage an innovative idea for the products but


17/34


sometimes also a burden for Fast Track Solution Holdings Berhad if cant

exploit it beneficially. So, fast Track Solution Holdings Berhad have to

work together to implement an efficacious measures to enable an

effectiveness of internal management of company so that they can fully

achieve coherent to the mission, vision, objective and policy of Fast

Track Solution company.

5. Financial Ratio

Current ratio may be defined as the relationship between current

assets and current liabilities. It is a measure of general liquidity and is most

widely used to make the analysis for short term financial position or liquidity of

a company. We can see that Current Ratio of Fast Track Solution Holdings

Berhad have decreased about 12.11 % from 2.865 in 2008 to 2.518 in 2009.A

decrease in the current ratio represents that there has been a deterioration in

the liquidity position of the firm. It reflects that the risk of Fast Track Solution

Holdings Berhad to pay back its short term liabilities by using its short term

assets would be higher.

b .

Year 2009 2008

0.182 0.177

Year 2009 2008Current ratio


18/34


Debt Ratio indicates what proportion of debt a company has relative toits assets. The measure gives an idea to the leverage of the company along

with the potential risks the company faces in terms of its debt-load. Debt ratio

of Fast Track Solution Holdings Berhad have increased about 0.005(0.182-

0.177),2.82% from 0.177 in 2008 to 0.182 in 2009.Even Fast Track Solution

Holdings Berhad is facing financial problems, but a debt ratio of less than 1

indicates that a company has more assets than debt. It means that this

company is facing a bit unhealthy financial status.

C.

Year 2009 2008

Equity Ratio is a good indicator of the level of leverage used by a

company. The Equity ratio measures the proportion of the total assets that are

financed by stockholders and not creditors. From the calculation above, we can

see that equity ratio of Fast TRACK Solution Holdings Berhad have increased

0.007(0.222-0.215), 3.26% from 0.215 in 2008 to 0.222 in 2009. This shows

that the company is acting more aggressive in financing its growth with debt.

This can result in volatile earnings as a result of the additional interest

expense.

Opportunity

1. Increasing the peripheral memory of the technology

product
http://www.money-zine.com/Definitions/Investing-Dictionary/Leverage/http://www.money-zine.com/Definitions/Investing-Dictionary/Leverage/


19/34


High technology product such as digital camera, phones and others

always facing problem of internal memory shortage. With the Fast Track

Solution Sdn. Bhd high technology in manufacturing the technology

product in the information technology market, it can give a competitive

advantage to Fast Track Solution Sdn. Bhd.

By doing innovation in the internal memory storage, the electronic

device can be run faster and this increases the efficiency of daily work.

Nowadays, the world nation is inter-related to the technology with a high

degree of dependency on technology product in their life. For example,

there are so many people is having their own mobile phone to

communicate with people around them especially the business men. So

the operating system in the electronic device that have been used must

be quick enough to be compatible with their demand on the electronic

devices efficiency. This can serve as opportunity for Fast Track Solution

Sdn. Bhd to make their business sustainable when Fast Track Solution

Sdn. Bhd can improve the efficiency of electronic device or software

manufactured.

Apart from using electronic device such as laptop to communicate,

the function of computer in processing the computer users data is also

important. If Fast Track Solution Sdn. Bhd can made improvement on

this problem, then the reputation and potential for Fast Track Solution

Sdn. Bhd to expand the business will be better.

2. Expand the market share of Fast Track Solution Sdn. Bhd tointernational level

With the value chain that builds in Fast Track Solution Sdn. Bhd, it can

be used to expand the market share of the Fast Track Solution Sdn. Bhd.


20/34


The combination of retail, distribution, marketing and logistics

department in Fast Track Solution Sdn. Bhd can serve as a great

opportunity for Fast Track Solution Sdn. Bhd to run their business in

international trade.

Being operation in international level, it gives a great opportunity for

Track Solution Sdn. Bhd because there is larger demand in the

technology device and software demand. As a result, if the Fast Track

Solution Sdn. Bhd can make innovation that suit with the customer

needs, it will make Fast Track Solution Sdn. Bhd gain the loyalty of the

customer.

To accomplish the goal of technology device and software device, the

combination of retail, distribution and logistics function of Fast Track

Solution Sdn. Bhd will be as a tool for Fast Track Solution Sdn. Bhd to

accomplish the goal. For an example, the retail function of Fast Track

Solution Sdn. Bhd in values chain management can let Fast Track

Solution Sdn. Bhd to get supplies of material to manufacturing or makeinnovation on the technology device or software.

Next, after the product has been manufactured, marketing function in

Fast Track Solution Sdn. Bhd can serve as a tool to promote the output

that being manufactured to worldwide to make the potential user in the

market alert with the existence of new product in the market. While the

distribution and logistics function in Fast Track Solution Sdn. Bhd can

lead the company to a low cost of launching the product in market or thecost of transportation in delivery the product to customer because in

business cost benefit analysis is being a crucial factor to take into

account when an activity is running in a company.


21/34


3. To build the reputation of user friendly

Nowadays the technology advances do give a great help to the userbut at the same time, it also create difficulties to the user because of the

complexity to use these technology product. Dealing to this problem Fast

Track Solution Sdn. Bhd can use its technical training services to the

customer in worldwide nation. For an example, the Fast Track Solution

Sdn. Bhd can place the teaching center in several countries to provide

the most effective skill trained to the customer.

With the well trained workers in Fast Track Solution Sdn. Bhd it willgive a competitive advantage to the Fast Track Solution Sdn. Bhd to

teach a nd demonstrate how to deal with the problem that raise from the

technology devices and software. Besides the learner that came to the

Fast Track Solution Sdn. Bhd training center can be also recruiting by the

Fast Track Solution Sdn. Bhd to serve as their employees after the

learner are well trained and they may served as trainer at other

technical center to expand the Fast Track Solution Sdn. Bhd business.

Besides, the Fast Track Solution Sdn. Bhd also can provide customer

post sales service by visiting the customer that face problem with the

product that they purchased from the Fast Track Solution Sdn. Bhd. Post

sales services is a crucial part in determined the sustainability of the

Fast Track Solution Sdn. Bhd because the customers will feel

convenience with the good to simplify the effort of customer to finding

for the solution for their product problems.

As a result, there are so many advantages that bring to the Fast Track

Solution Sdn. Bhd if they provide the technical services in worldwide and

it will also increase the goodwill of the Fast Track Solution Sdn. Bhd


22/34


because they are well known in the worldwide information technology

market.

4. Building the online marketing

Nowadays the technology advance bring a lot of convenience to the

customer worldwide because less effort needed to visit the company for

the demanded product and product ordering can be done in just a few

second by using the online services. As a result, the cost of advertising

paid by the Fast Track Solution Sdn. Bhd in the charge media such as

television, newspaper and other can be save.

On the other hand, the online marketing gives a familiar business

environment to the Fast Track Solution Sdn. Bhd because the Fast Track

Solution Sdn. Bhd is a company that technology oriented in nature.

Furthermore in future there will be a lot of company that post their

website in the internet to serve as promotion to their company. Besides,

the website that building for marketing can also serve as a tool to survey

for the customer needs about the technology. It is crucial to doing the

marketing research since the technology environment is keep on

changing so the customize of product with the changing in technology

environment by Fast Track Solution Sdn. Bhd can use to enhance the

competency level of the Fast Track Solution Sdn. Bhd because the

information gather by them is timelines.

Lastly, the online marketing website can also give space to the Fast

Track Solution Sdn. Bhd customer to give any feed back to the Fast Track

Solution Sdn. Bhd. To gain the loyalty of the customer, the feedback of

the customer need to be emphasis. It is because by making modification

and improvement accordingly to the customer needs only the Fast Track


23/34


Solution Sdn. Bhd can sustain in the company because customers know

better because they are the one how using the product.

5. Customize the product to be compatible with the latest

technology product.

In this high competitive level of technology market, the Fast Track

Solution Sdn. Bhd should not standalone in the market but should always

interact with the technology companies that exist in the market. The

meaning of interact here is the Fast Track Solution Sdn. Bhd should

make their software to be compatible to be fit or install in the technologyproduct that offered in the market.

For e xample, the Fast Track Solution Sdn. Bhd can customize their

software to be fit in the technology market product such as iphone.

Making money by selling the iphone application do provide a good

opportunity for the Fast Track Solution Sdn. Bhd to grow in future. This is

because nowadays the technology products software demand have

been increased drastically because the ability for company to suit their

software with the technology product will gain a competitive advantage.

As we can notice, a lot of customer or user of the technology product

is trying to search for the compatible software that suit with their

technology product such as phone software, dictionary software and

others. So sure Fast Track Solution Sdn. Bhd will be well-known if they

are promoting in the software compatible with universal of technology

product. As a result the demand of the customer to the Fast Track

Solution Sdn. Bhd software making is higher and this lead to a good

reputation of the Fast Track Solution Sdn. Bhd.


24/34


Threats

1. Issues in environment friendly

Recently, the issue of environmental friendly is being emphasis by

worldwide nation. This may bring threat to Fast Track Solution Sdn. Bhd

because they have to take into account about this issue.

The environmental issue give impacts directly and indirectly to the

Fast Track Solution Sdn. Bhd. for an example, the Fast Track Solution

Sdn. Bhd have to take the environmental friendly way to dispose their

unwanted material especially the activity of plastic manufacturing in Fast

Track S olution Sdn. Bhd. Of course the environmental friendly disposal

will take good care of our environment, but at the same time it will

increase a lot of overhead cost the Fast Track Solution Sdn. Bhd.

The overhead is the cost that cannot be trace to the direct product

manufactured, so it will increase the cost of operation of Fast Track

Solution Sdn. Bhd. to be fair to the customers, Fast Track Solution Sdn.Bhd cannot transfer the disposal cost to the customer so this cause Fast

Track Solution Sdn. Bhd have to bear the disposal cost by the company

itself.

Besides, nowadays there are many rule and regulation about the

environmental friendly issues that enacted by the government so it will

burdened for Fast Track Solution Sdn. Bhd where the conservatism step

have to be taken when run their business, it is because the offence of the law and regulation will cause penalty to the Fast Track Solution Sdn.

Bhd. The penalties that impose will cause cost to the Fast Track Solution

Sdn. Bhd while other penalty that are not monetary in term will also


25/34


affect the operation of Fast Track Solution Sdn. Bhd such as the order

that direct by the court to cease the business operation of Fast Track

Solution Sdn. Bhd.

2. Competitors

As all of you know, business application nowadays is competitive and

rapidly changing. Fast Track Solution Holdings Berhad will experience

and expected to continue to face intense competition from current and

future competitors from similar industries. For example, SAP delivers the

widest range of industry specific offerings with 13 industry specific units,including high technology and electronics, chemicals, oils and gas,

utilities and the public sector.

As compared with other local software providers in the market which

offered their range of products for multiple industries, So Fast Track

Solution should make some differentiation such as offer an industry-

specific solution which targeted for a particular micro-vertical market in

the manufacturing environment. Besides, Fast Track Solution Holdings

Berhad can also increase its ability to offer its range of products at lower

prices and simultaneously maintain the standard of quality in terms of

delivery and customers requirement and satisfactions to compete

effectively with other software provider in the market. This is because a

success of an organization depend on what an innovative customized

products offered by its organization and what the degree of its

organizations intelligence business objects and work flow engine canenables them to create a highly tailored applications through eliminating

the tediously slow and hard to maintain application technique of today.

3. Inflation


26/34


Fast Track Solution Holdings Berhad also threatened by the economic

depression nowadays. It directly affect the prices of all the raw material of

products. All the prices of raw material have risen suddenly and sharply and

they force to increase all the prices of Fat Track product so that can cover all

cost that incurred. If this situation still occurred continuously ,it would become

a burden for Fast Track Solution Berhad in the future .In addition, it indirectly

influence the consumer purchasing decision making since they would think that

its not worth to buy a products at higher prices but same quality. They will find

another substitute product in the market which similar with Fast Track

Solution ,but lower prices to fulfill their need and want. So, Fast Track Solution

Holdings Berhad supposed to implement an effective steps which can kill two

bird with one stone especially when the economic are going down so that they

can survive in the software provider market .

4. Different sociocultural

Every country have their own sociocultural that vast different

between countries in the world. If Fast Track Solution Sdn. Bhd in a

different region, then it is crucial for the company to consider about the

social cultural practices, beliefs and traditions within the particular

region. This is because the different socioculturul will lead to different

demand of the customer.As an example, if the country that Fast Track

Solution Sdn. Bhd want to operate is a low economy activities region,

then the product that offered by the Fast Track Solution Sdn. Bhd must

be economic and affordable by the customer in the related region. It is

because the lifestyle of that region is not practicing luxury life as their

convention.


27/34


5. Demography changes

Another threat for Fast Track Solution is the demographic changes wherethe aging workforce is a worrying trend nowadays. It will clearly have a

big impact for Fast Track Solution in terms of labour shortage with the

loss of older works through retirement, recruitment of younger workers

more difficult, as employers are competing for a lower number of

candidates and the retention of skilled workers is a critical issue. Apart

from that, Fast Track Solution will also face skills shortage as currently

identified as a major problem by employers; this problem may intensify

with the loss of experienced older workers and the difficulty in recruiting

and reta ining younger workers.


28/34


Internal factors

External

Factors

Strengths

1.Differentiation2.Specialization3.Being local4.Effectiveness andEfficiency in Technology5.After sales in customerservice6.Strong in R&D7. Company Strengthvia financial indicator

Weaknesses

1.Focus on the domesticMarket2.High operating cost3.Lack of team expertise4.Large Workforce Difficultto Manage5.Financial ratio

Opportunities1. Increasing thememory of thetechnology product.2. Expand the market

share to internationallevel.3. Build reputation userFriendly.4. Building the onlinemarketing.5. Customize theproduct to becompatible with thelatest technologyproduct.

SO Strategies

S6O1 Investment in researchand DevelopmentS4O2 Acquisitions forgrowthS5O2,3 Leverage brand forgrowth and expansion inemerging marketsS4O4 Use social network toexpand the companyoperation S6O5 create software whichmake compatible with thecustomer technology

WO Strategies

W1O2 New markets forIncreasing ProfitabilityW2O1 Higher margininnovative products to driveprofitabilityW3O3 Acquisition of newtechnology for innovation

W3O5 Recruit staff that moreskilled, excellent, experience intechnologyfield to improve efficiency

Threats1.Issues environment

friendly.2.Competitors3. Inflation4. Different socio-cultural5.Demographic changes

ST Strategies

S1T2 make good name of the brand product toenhance competitive levelS6T2 Focus on innovationand unique outputS2T4 make changes of theproduct to suit with thecustomer socio-cultural .

WT Strategies

W3T4 Differentiation to avoidcommoditizationW1T2 Diversification into newemerging marketsW1T2 Invest in branding andcustomer loyalty programsW3T2 Business Intelligencestrategies.


29/34


I. Strength and Opportunity alternative strategies

S6O1- Invest more in Research and Development

In order to gain the competitive Fast Track Solution should in order

to gain competitive advantage against competitor in the same industry.

Research and Development gathering knowledge about internal and

external environment to make innovation in the product or serviceconcurrent to the customer need and wants otherwise Fast Track

Solution use the knowledge to reshape organization structure,

management, product and process improvement and also exploit its

resources to make business more effective and efficiently. Moreover

Research and Development strategies will add value, useful features that

satisfy customer needs and wants of material to manufacturing or make

innovation on the technology device or software. As a result the Fast Track company manufacturing from Fast Track Application to achieve

high productivity and lower the product deficiency.

S4O2 -Acquiring for growth

Besides that, Fast Track Solution has to acquiring for growth .

Fast Track should put effort that serious in expand, developed and widen

business through process development, effective management, effective

marketing strategies, more expertise in the field and most important

thing is satisfy customer demand and wants such as portable devices

and electronic network. Based on its strength of market capitalization,

access to funds, Fast Track Solution Company able to be aggressively


30/34


pursue growth through international expansion, regional expansion and

expansion through acquisition to become as a dominant entity on the

world level and as the strongest player in each of the geographies that it

operates in. to achieve this target, Fast Track Manufacturing plays an

important role to ensure the effectiveness of product by carefully

maintain its manufacturing cycle from production planning, material

requirement planning and manufacturing execution activities.

S5O2, 3 -Leverage brand for growth and expansion in emerging

market

Through this alternatives Fast Track produce service or product

that de finitely satisfy consumer needs and wants currently such as

feasibility study, requirements specification, design, development,

testing, installation and maintenance and expand their market through

effective marketing strategies such advertising, promotion otherwise use

effective distribution channel. To achieve this strategic, Fast Track

Solution Company can promoting more their business to the other nationin other country by enhancing the current company promotion through

annual trade show, mass media advertising and promotion and face to

face to the end-user of the Fast Track Solution Companys product.

S4O4 -Use social network to expand the company operation

Moreover, can use leverage marketing strategies to attract more

clients for established competitive advantage to the Fast Track Solution

business in widen their market. Fast Track Solution can use marketingstrategy to convey the latest information to the target market by using

social network such as Facebook, Tagged, Twitter, My Space, Yahoo

which now more popular among all people in the world. So it connects


31/34


the Fast Track Solution with the consumer or potential consumer in the

whole world.

II. Strength and Threat alternative strategies

S1T2- make good name of the brand product to enhance

competitive level

Fast Track Solution Company contains many businesses that in its

subsidiary company that are being the competitive advantages to the

Fast Track Solution Company. For an example, Fast Track Distribution

system with four operating principles that is simplicity, adaptability,

flexibility and openness enable the company to integrate the part of the

information system that support other process in the company entire

operating value chain such as manufacturing, financial control and

human resource. This can differentiate the business product from the

competitor especially when the internal coordination of Fast Track

Solution Company operation is well so the whole company can gain

commitment in order to achieve differentiation of product compare to

the competitors.

S6T2 -Focus on innovation and unique output

In order to move away from profitability pressures and ensure thatit is not competing at the lower end of the market, Fast Track Solution

should strengthen its investment in research and developments need to

serve as a tool to add value to the Fast Track Solution Company. This


32/34


can be achieve when Fast Track Solution Company is able to offered

various enterprise application, client service package and come out with

a comprehensive integrated application solution to shows its

effectiveness in solve the customer problem.

S2T4- Make changes of the product to suit with the customer

socio-cultural

To operate in another country, Fast Track Solution should innovate

and customize their product to ensure their really concurrency with the

socio-cultural that the specific region customer practiced. To achieve thistarget, the Fast Track Solution Manufacturing should make research on

the soc io-cultural of the targeted market region to make sure that the

customer convenience and demand with the product that offered by the

Fast Track Solution company. For example the Fast Track Solution

Company cannot create software that has kind of pornographic and

create game that has kind of gambling to the country that is Islamic

based.

III.Weakness and Opportunity alternative strategies

W1O2 -New markets for Increasing Profitability

To increase the profitability of Fast Track Solution Holdings Berhad

in the future , they should expand their business toward international

market by providing an unique products which fulfill peoples need and

want. Fast Track Solution can set up a strategic partnership alliance with

software providers such as IBM Malaysia Sdn Bhd and Sybase (Malaysia )

Sdn Bhd for its future business growth in order to gain access to

international markets such as Asia of Pacific Regional ,Peoples Republic

of China and the United States of America. In addition, Fast Track


33/34


Solution is capable of interfacing with other business operations

application software. Once it can be established as accepted interface

program to a specified system, it can then be packaged together with

the standard third-party software and marketed overseas to increase

their companys profitability.

W3O5 Recruit various skills workforces

To ensure efficiency and effectiveness of the companys operation

management, Fast Track Solution Holdings Berhad should hired the

workers who have various type of skills and several experiences in the

technology information field. Fast Track Solution Holdings Berhad aimedto be at the forefront in electronic transaction technology by hiring or

conducting cross-training programs for its staff to ensure them develop

multiple skills. They can apply what they have learnt especially

technology perspective to help company develop new product and

upgrading existing products. Staffs who have different skill on different

field definitely pour all their talent to create new industrial specific

components for specific industries to increase the performance of thecompany so that run smoothly in the future.

IV. Weakness and Threat alternative strategies

W3T2- Business Intelligence strategies .

Nowadays, we can see that business application market is

competitive and rapidly changing. Fast Track Solution Holdings Berhad

will face a lot of keen competition from current and future competitors.

So, Fast Track should implement business intelligence strategies which

are the tactic to improve business effectiveness and efficiency through

competitive intelligence which is a formal program of gathering

information on a companys competitors. Then, they can start to analyze


34/34


all strength and weakness of the competitors so that can find out and

implement effective strategies to compete with competitors surrounding.

Besides, Fast Track Solution can differentiate themselves from

competitors by offering industry-specific solution targeted toward a

particular vertical market. Teams expertise also vital for its company by

analyzing and absorbing all the creative gathered information and

suggestion in creativity and innovation perspective so that can improve

the quality and performance of the overall operation management of

Fast Track Solution Holdings Berhad.

W1T2 -Diversification into new emerging markets

To enter international market, Fast Track Solution should make

some diversification of their product into new emerging markets.

Diversification of product can be based on feasibility study, requirements

specification, design, development, testing, installation and

maintenance. This will add value of the product and services that

differentiate company product with other competitors in the same

industry. They can continue to further enhance its current application by

applying the latest information technology into its current and future

version of products. Fast Track Solution needs to be aware of and seize

these emerging opportunity.

Date post:	06-Apr-2018
Category:	Documents
Upload:	sujeelucky
View:	216 times
Download:	0 times

Ttttttows Edit

Documents