SWOT analysis

Strengths

1. Having core values

There are six core values should be applied by all the employees as the measure of taking
actions. The values are integrity, accountability and ownership, teamwork, customer
focus, embracing change and innovation. Integrity is the value where employees carry out
their responsibilities with the honesty and applied the moral code. Accountability is
extrinsic while ownership is intrinsic motivation towards improving the engagement.
Accountability is the willingness of employees to face the consequences of success or
failure after carry out the responsibilities. Teamwork is really important in order to
achieve the companys vision and missions while maintaining the relationship and let all
the employees can boost the ideas together. Customer is the main focus since they are
valuable to the generating profit so that the production and delivery must satisfy the
customers need. The employees do aware about the need for change and able to lead the
change if the required situations arise to make exemplary organization. Tasek has driven
to have its innovation in order to have their competitive advantage to compete in the
market.
2. Applied good corporate governance
They applied good corporate governance that they have clear separation of
responsibilities and the chairman does not have the role duality which can reduce his
objectivity during decision making. The board of directors provide the leadership,
maintaining the values and ensure risk management been carry out within the internal
control. They also pay attention to the shareholders interest and promote high standards
to integrity. They have the code of ethics, statement on corporate governance and
whistleblowing of unethical activities.1
3. Involvement in Corporate Social Responsibility (CSR)
Tasek made social responsibility as part of its operation. The social responsibilities that it
provided are giving sponsorship and scholarship. They do have documentation on the
initiative of the social responsibilities every year and the latest documentation of 2016
available in the companys website. Tasek also provided internship for undergraduates
1Tasek Corporation Berhad website accessed on 10 May 2017 available at
http://www.tasekcement.com/index/corporate_profile_/corporate_governance.html
 with the opportunity to acquire hands-on working experience, job opportunities and
transition into the career market prospects. They continued to maintain the certifications
for various environmental management systems, health and safety management system
and the frequent maintenance of the laboratory systems to prevent any unwanted
accidents to the employees.
4. Directed companys production and product delivery for the best interest of customers
The company has a proper product delivery process by transported using the road or rail
to the customers. The packaging and distribution will be done at terminal of Sungai
Buloh. The products also will be stored, packed and distributed to the strategic
distribution centers and direct customers in the central and southern areas. The production
of cement continued at the company's plant in Ipoh for 24 hours a day to fulfill the
customers demand.

Weaknesses

1. Lack of latest technology and innovation

The technology used may not effective yet to reduce the environment impact by
producing the cements. Enhanced technology will be needed to substitute coal with eco-
friendly fuels showed that the company still used the coal as their fuel in the production
of cements.
2. Challenging work environment
The work environment of cement industry could be very dangerous because it exposed to
the gas emission and using the large equipment and machines that have risks for accident
to occur. The safety and work environment must be improved to secure the safety of the
employees.

Opportunities

1. Uniqueness of marketing
The marketing strategy that can be used is innovative marketing strategy. Boley (2011)
defined innovative marketing strategy as action plan made by an organization to
 encourage advancement in technology or services by investing in research and
development.
2. Increasing needs for energy conservation
Energy savings during the production is very important to reduce the environmental
impact. The energy conservation can be maintained by implemented changes towards the
production process and adjusting the composition of chemical in the production of
cements. Production processes can be enhanced by changing the energy management and
investing in new equipment.
3. Technology development available in market
The new technology may improve the environmental impact such as the technology can
utilize industrial waste of tires that they can be used to reduce costly fuels. The improved
technology can be used to substitute material that gives bad impact to environment to any
eco-friendly materials.
4. Availability of government project
A number of mega projects from the Malaysia Plan that applied from 2016-2020 would
boost the construction sector that will increase demand of cements. The projects are
including the development of the Klang Valley MRT, Pan-Borneo Highway, Central
Spine Road, and KL-Singapore High Speed Rail projects.

Threats

1. Not environmental friendly

There will be a lot of industrial waste during the production and the process will used and
waste big amount of water. The pollution of water can be happened if the water used in
the process directed to the river or any sources of water. Cement is comprised of chalk
and clay, which are mixed together and heated at high temperatures in a cement kiln. The
air surround the production place would be polluted and affected to any residence nearby
the place.
2. Increasing health concern
Most of people more concern about the health and can be sensitive if any activities
carried out by any factory actually give out unhealthy air and polluted the water. The
health condition of residence could be in danger because of the activities carried out in
the factory.
3. Not leading manufacturer
 There are many newcomers in the market so that the leading title could hard to be
maintained. LaFarge is the largest cement producer in Malaysia so that Tasek Corporation
do not classified as the leading manufacturer of cements.
4. Stiff pricing competition
Industry sources say that a bag of cement is now being sold at an official selling price of
RM17.90, although some manufacturers usually reduce selling prices by a ringgit or two
when it is sold to the contractors. These prices are not controlled locally and are set by
the open market, depending on supply and demand factors. The price competition
happens because of the discounts offered to the customer.
5. Increasing cost of production cements
The cost of raw materials, transportation and energy were increasing hence affected the
increasing production cost of cements.
6. Weak currency of Malaysian Ringgit
The currency of Malaysian Ringgit is weak compared to USD. According to Bank Negara
Malaysia website, 1 USD equal to RM4.34.2
7. Decline in oil price
Governments fiscal policy and reducing the large scale infrastructure project was
affected by the declining oil price. So the demand of cements in the infrastructure project
also reduced.
8. Competition in domestic market
The other competitors operating in the cement sector in Malaysia include YTL Cement,
which had been privatized under YTL Corp Bhd in 2012, UEM Groups Cement
Industries of Malaysia Bhd. The largest cement producer in Malaysia is LaFarge.

http://www.jobstore.com/post/1457367/internal-audit-manager
http://www.thestar.com.my/business/business-news/2015/11/14/cementing-pact-of-giants/
http://managementcraft.typepad.com/Accountability%20and%20Ownership
%20Article.pdf
http://www.climatetechwiki.org/technology/energy-saving-cement
https://www.emis.com/insight/malaysia-cement-bag-full-projects
Boley, T. A. (2011), Effect of marketing strategies on consumers satisfaction in Bolivia:
A case for emerging firms. Journal of Marketing Management, 26(2), 47-61.

2 Bank Negara Malaysia website accessed on 10 May 2017 available at bnm.gov.my