Assalamualaikum to all fellow frends..



This week,we were proceed to the next topic, chapter 8, CORPORATE STRATEGY: DIVERSIFICATION AND THE MULTIBUSINESS COMPANY...

This chapter is very interesting and enjoyable because first of all we understand when and how business diversification can enhance shareholder value. This is very basic before learn more deeper about this chapter.Then,gain an understanding of how related diversification strategies can produce cross-business strategic fit capable of delivering competitive advantage and gain command of the analytical tools for evaluating a firm’s diversification strategy.

Beside that,from this topic also understand a diversified firm’s four main corporate strategy options for solidifying its diversification strategy and improving company performance.

For tutorial class,Miss Ummi assign to us to read and tried to answer one article which is about UMW Holdings..Most of us,majority of our class cannot to answer that question although the question given is look very easy … Before we continue for article UMW Holdings, 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 first sentence,"the early bird get the worm".. In simply meaning, the quote is related with a strategy to achieve something what we aim.

This is summary background about UMW Holdings..UMW Holding is the one of company involve in automotive assembly and distribution. In addition, UMW Corporation also involve 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.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.

Thats all....