Naza Group Swot Analysis

1.0 CHOICE OF BUSINESS

The business that I decided to choose is Naza Group. This is because Naza Group met all the requirements that I had to comply such as being a Malaysian business that shows leading-edge innovation and entrepreneurship. It is the biggest Malaysian privately owned conglomerate with businesses from automotive industry to property to food and beverages to hotel management and even education. The late founder, Tan Sri SM Nasimuddin SM Amin in showed a number of exemplary entrepreneurial skills. When he was 19 years old, he used his savings to import second-hand Japanese vehicle using an allocation of Approved Permits (APs) which was allocated mostly to Bumiputera (Malays and indigenous people) to import foreign cars. He then

Owning a manufacturing plant in Gurun, Kedah called NAZA Automotive Manufacturing that produces locally assembled Peugeot and Kia. By doing so, they can reduce the cost of importing cars and thus, making the price of locally assembled cars cheaper and more attractive for potential customers. In addition, cars manufactured there are also exported to neighbouring countries which reinforced the group’s credentials as a manufacturer that meets the international requirements until even Peugeot chose to manufacture its cars here.

2. Have high human capital: created Naza Auto Solutions and NZ Galaxy for research and product development such as automotive design and engineering services. Kia, Mercedes-Benz and Audi are some of the car brands that have used their services. In addition, Naza has entered an MoU with Help International Corp to set up a joint college for automotive and transport management with the aim to increase the amount of professionals in that sector. In addition, Naza Kia Academy was established as centre of learning in the local Automotive Industry to develop Human Capital for the Group 's employees and partners to achieve customer

Politics: In order to import cars, Approved Permit (AP) is needed. AP’s are given by the government to control the car imports. 60% are allocated for the Bumiputeras while 40% are given to franchise holders. Due to the unequal division, many non-Bumiputeras are unsatisfied about this issue. As a Bumiputera company, Naza Motor relies heavily on the AP in order for them to maintain the market share. A sudden change in government to one who wants to provide equal rights and abolish the allocation for AP could cause problems for Naza Motor.

2. Social: Trends may change and this can have a negative impact on trade of cars. For example, nowadays, people are more environmentally aware and are more responsible towards caring for the environment. As a result, there is a rise in the demand for hybrid cars since they do not produce a lot of carbon emission.

3. Economy: Too sensitive to foreign currency exchange. The value of the Malaysian Ringgit is currently dropping and this makes it more expensive for Naza Motor to import cars.

4.0 Recommendation

To overcome the weaknesses and threats as stated before, here are recommendations that the company should follow:

4.1 Consolidate the entire automobile