FACULTY OF BUSINESS MANAGEMENT

MAY 2019

BBPS4103

STRATEGIC MANAGEMENT

ASSIGNMENT 2

MATRICULATION NUMBER : 931130 – 04 - 5393001

IC NUMBER : 931130 - 04 - 5393

TELEPHONE : 017 5393171

EMAIL : vishnuh17@gamil.com

LEARNING CENTRE : MELAKA LEARNING CENTRE

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TABLE OF CONTENT

NO TITLE PAGE NUMBER

01 - INTRODUCTION OF KPJ HEALTHCARE BERHAD 3-5
02 - VISION AND MISSION OF KPJ HEALATHCARE 6-7
BERHAD
03 - OBJECTIVES OF KPJ HEALTHCARE BERHAD 8

04 - KPJ HEALTHCARE BERHAD SHORT TERM AND 9

LONG TERM GOALS

05 - SWOT ANALYSIS 10 - 14

06 - INTERNAL FACTOR EVALUATION (IFE) OF KPJ 15 - 16

HEALTHCARE BERHAD

07 - EXTERNAL FACTOR EVALUATION (EFE) OF KPJ 17 - 18

HEALTHCARE BERHAD
08 - COMPETITIVE PROFILE MATRIX (CPM) 19 - 20

09 - ANALYSE ITS FINANCIAL POSITIONS BASED ON 21 - 22

ITS ANNUAL REPORT FOR 2017 AND 2018
10 - SUMMARY AND THE STRATEGIC POSITIONS OF 23 - 24
KPJ HEALTHCARE BERHAD

11 - REFERENCES 25

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Introduction of KPJ Healthcare Berhad

Source : https://www.logopik.com/item/kpj-healthcare-vector-logo/

KPJ Healthcare Berhad or best known as KPJ is one of the country’s largest private
healthcare providers in the region with a network of 22 private specialist hospitals in Malaysia.
The group also has assets in the form of hospitals and retirement centres in Malaysia, Indonesia,
Thailand, Bangladesh and Australia. Besides that, KPJ’s operations include a variety of
surgical disciplines, medical specialties and hospital clinic service and also provide the
facilities. KPJ also had a presence in Indonesia with 2 hospitals in Jakarta, one hospital in
Thailand and a retirement and aged care resort in Brisbane, Australia. In 1981, it began with a
single hospital and in 2002 the company underwent an internal restructuring, consolidating and
streamlining the company’s healthcare activities. With more than 2,600 licensed beds, KPJ
hospitals offer a comprehensive range of medical services and have treated more than 2.5
million patients annually. In 2012, KPJ hospitals have treated about 2.4 million outpatients and
over 250,000 inpatients. KPJ portfolio includes hospital management, health care technical
service, hospital development and commissioning, nursing, health sciences and continuous
professional healthcare education, pathology service, central procurement and retail pharmacy.
It is also the largest listed healthcare group on Bursa Malaysia. KPJ’s workforce comprises
more than 10,000 employees who support the services provided by more than 1,000 medical
consultants specialising in various disciplines.

Furthermore, KPJ is the first homegrown healthcare group in Malaysia which is listed
on the man board of Kuala Lumpur stock exchange on 29 November 1994 and 2007 KPJ
exceeded RM1 billion in revenue. KPJ achieved its higher ever consolidated revenue of more
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than RM1.91 billion, more than doubling what is achieved in five years ago and about 15%
higher than the preceding year’s performance translating into its best performance yet in 30
years, while the profit before zakat and tax surged 21.8% year on year to RM 204.60 million.
KPJ has climbed up by several notches, standing on the 85th spot in the subsequent year and
75th placing at the end 2011, with a market capitalization doubling over these two years to
RM2.74 billion. KPJ embarked on many initiatives to improve the quality of care to customers
including the certification of Malaysian society for quality health (MSQH). Presently 11
hospitals in the group have been accredited by MSQH. In the year 2012, KPJ Ampang Puteri
Specialist Hospital & KPJ Seremban Specialist Hospital are undertook the JCI accreditation
survey; another international standard for quality in Healthcare. Moreover, KPJ has investment
in a retirement and aged-care resort in Australia and in Sibu, Sarawak as well as its own Senior
Living Care (SLC) centre in Tawakkal Health Centre (THC) in Kuala Lumpur. KPJ’s
competitive advantage lies in its extensive reach and presence in the highly competitive private
healthcare industry. With its hospitals located in various parts of nation, the Group’s hospitals
are easily accessible and offer a diverse range of medical specialist services, many of which
are major first in nation’s healthcare industry.

Besides that, KPJ hospitals are certified by international bodies such as TUV
Rheinland for Integrated Management System (IMS) that integrates and emphasizes on quality
management system (MS ISO 9001: 2000), Environment (MS ISO 14001:2004) and
occupational safety and Health (OSHA S 18001:1999). KPJ Healthcare Berhad is committed
to continuously enhancing the quality the quality of its services and facilities by investing in
new technology as well as ensuring that the best quality systems are in order for the benefit for
the customers. This accomplishment also won KPJ recognition from the Edge Billion Ringgit
Club, which named KPJ as the “best performing stock-highest Returns to shareholders over 3
years (Trading/Services)” in July 2011 by The Global over 50s Housing Healthcare London,
in November 2011. In the year 2012, KPJ has won “Rider’s Digest Trusted Brand Award”
together with frost & Sullivan “Best Performance Award” for two consecutive years in a row
i.e 2011 and 2012. KPJ also has made outstanding inroads in the application of integrated
Group-wide technology. The adoption of cloud computing has further enhanced the ability of
medical consultants in assessing patient information in real time to ensure delivery of a
seamless service. In addition to that, to further optimise the handling of patients records and
increase hospital efficiency, continuous improvement is being undertaken to advance the KPJ

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clinical information system (KCIS). KPJ also exploring opportunities to apply digitalized
medical technology in everyday life. Among the ventures in the pipeline are KPJ’s E-Pharmacy
with online ordering, wearable technology, robotics, Artificial Intelligence (AI) and the internet
of things (IOT). KPJ has become the first provider of private healthcare service in Malaysia to
implement the ‘Watson for oncology’ technology for cancer patients. ‘Watson for oncology’
is a cognitive computing platform develop by IBM Watson that facilitates oncologists in their
efforts to design treatment plans and evidence-based cancer treatment options for each patient.
Apart from hospital-based care, the KPJ Group made its mark in healthcare related industries,
primarily KPJ Senior Living Care Services and Healthcare Education. These thriving subs,
sectors hold tremendous potential for the future, in line with the increasing consumer demand.

KPJ has always kept the communities’ interest close to heart and it can reach
out to the underprivileged through various channels. The community services is the provision
of care through our network of Klinik Wakaf An-Nur (KWAN) charity clinics. There are 18
KWAN Clinics and 1 Hospital Waqaf An-Nur (Hwan) in Malaysia and as well as five mobiles
clinics in Kuala Lumpur, Johor, Selangor and Kelantan.

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Vision and mission of KPJ Healthcare Berhad

KPJ’s corporate vision

 Leveraging on dynamic partnership, a shared ambition to build healthier communities

and steadfast commitment to “Care for Life”.
 KPJ have offers a continuum of highly sought after specialized medical solutions that
transcends borders and cultures while covering the entire patient life cycle from pre-
natal to geriatric care, as it aspires to be the lifelong companion to the patients
throughout their healthcare journey.
 The company’s purpose is ensuring the growth and strength of KPJ over the years
through creative and innovative strategies have enabled the organization to move
forward in driving standards and continuous innovation and in developing the
community as KPJ’s contribution towards the well-being of society.
 Developing the group’s own human capital strength allow s KPJ to be the best in all it
does, particularly in caring for the healthcare, safety and the environment. Besides that,
with its unwavering commitment, KPJ is known for inspiring trust and accountability
and standing firm on the principles of the Business “Jihad” such as integrity,
uprightness and community spirit.
 The group’s “Jihad” is the adherence to the right conduct and ethics to achieve business
excellence. At the same time, KPJ remains focused on KPJ’s corporate vision which
defines the preferred provider in healthcare services and the corporate mission is
delivering quality healthcare services to our customers.

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KPJ’s corporate mission: Deliver Quality Healthcare Services

 In the tandem of KPJ’s mission, it is committed to delivering world, class patient care
with professionalism and in divided compassion to the many communities that they
serve.
 The Provision of quality healthcare services through continuous improvements in
patients care and outcomes too remains a priority. KPJ has a dedicated team of some
9,000 employees who have wholeheartedly embraced the Group’s culture of excellence
and have been empowered with the skills to enhance patient care throughout the
network.
 KPJ has a clear company purpose which was created by the esteemed directors by
focusing on the principles of the Business “Jihad”. We strongly agree that this is a
good idea in the company purpose which gives the company s strong future where
employees will inculcate the “Jihad’s” spirit and to have the spirit to strike for the
company in order to achieve better profits and lifting the company to greater heights.
 The Business “Jihad” was interpreted from the “Jihad” war where energy and
motivational forces were harnessed, mobilized and channelled towards peace and
prosperity that translate the best that Islam can offer in values and civilization terms to
the world that we live in.
 In order to improve the company’s purpose, employees from different management
levels should constantly remind one another about the company’s purpose at all time.
Besides emphasizing, employees should practice the purpose as “actions speak louder
than words”. It is useless when a good company purpose is being created and displayed
in the company but not being practiced by employees. Therefore, it is vital to stress and
practise the importance of the company’s purpose to all employees so that investors and
customers will have confidence in the company’s service.

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Objectives of KPJ Healthcare Berhad

 As KPJ Healthcare Berhad continuously striving to achieve the vision and carrying out
the mission, it will also continue to build on its core Values which states the overall
purpose of the company. The core values consist of 5 values which are to ensure safety
for employees and customers to carry out the daily business activities. Employees
delivering the services with courtesy with the ability to initiate first with a smile and be
helpful personnel to customers at all times. Besides that, performing duties with
integrity will leave an impression to stakeholder that employees are exercising
professionalism at all times and striving for continuous improvement which ensures
quality assurance and the attitude of learning will build the confidence in stakeholders.
 In conclusion employees of KPJ must play an active role in practising the core values
and reminding each other about the company purpose in order to strike to make the
company grow in profits, prospect and human health quality.

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KPJ Healthcare Berhad short term and long-term goals

KPJ firmly believe that their achievable by 2020 as a number of related healthcare activities
strategic to our continuous corporate growth have been identified :-

 For the medical tourism segment, aiming to grow its revenue contribution to 25% in
2020 from less than 10% today.
 KPJ’s internal target is opening at least two new hospital annually to meet its long term
goal of owning at least 40 hospitals by 2020.
 KPJ goals also want to increase the number of specialist hospitals and develop new
hospitals, locals and overseas.
 KPJ can manufacture related health care products for local and export markets.
 Initiate new hospitals services and support activities and develop the network of the
community based healthcare services.
 KPJ can enhance continuous education and training of healthcare professionals and
intensify avenues for state of the art applications in information technology and
telemedicine.
 KPJ can strengthen affiliations to further develop and expand the growth of related
healthcare industries.
 KPJ can continue to strive for excellence in its healthcare delivery system through its
quality improvement program.

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SWOT analysis of KPJ Healthcare Berhad

Strength Weaknesses

 Brand and reputation  Perishable medicine expiration

 Strong market position or market  Liquidity issues
leadership  Need to modernize information system
 Strong leadership with the doctor
 Commitment in providing quality
care
 Major specialist services
 Customer satisfaction
 Philanthropic/CSR activities
 Private Nursing Colleges
 information and communication
process
 Strong financial support from parent
company
 Extensive national network
 Professional Development
Opportunities Threats

 The demand for health care is  Competitors

growing rapidly in Malaysia  Limited supply of qualified medical
 Medical tourism personnel
 Overseas market  Economic downturn
 GDP growth rate is high in Malaysia  Availability of low cost healthcare
equipment in hospital

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Strength

 Strong market position or market leadership : KPJ operates the largest private hospital
network in Malaysia with 23 hospitals with over 2,600 licensed beds. It is estimate that
KPJ Healthcare Berhad has a lending 20% share of private hospitals beds in Malaysia
and leading 25% share of private inpatient admission. (Standard charted Analyst,2012)
 Brand and reputation is one of the largest private hospitals operators with and
established branding in Malaysia, KPJ is a well established household name in Malaysia
private health sector.
 A strong relationship with doctors : KPJ healthcare berhad had 750 medical consultants,
which translates to a 7% share of private doctors in Malaysia. KPJ has established and
reputable system in place for centralized payment and billing, helping it in recruitment
of doctors. (Standard Charted Analyst, 2012)
 Commitment in providing quality care : the corporate mission of the group is to deliver
quality healthcare service this shows the level of the commitment of KPJ to quality
care.
 Major Specialist services : KPJ offers a wide range of service like specialist services,
cardiac service, cosmetic and reconstructive service, ophthalmology service, oncology,
chemotherapy and radiotherapy, orthopaedic and sports injury, obstetrics and
gynaecology services, paediatric and neonatal services and surgical and critical care.
 Customer satisfaction : The most important reason why customers prefer KPJ is because
they have attractive customer care slogan for instance doctors to nurse and staff moved
from being caregiver to being a caring giver, KPJ also committed to given all its
customers an awesome service experiences during their stay and visit to KPJ.
 Philanthropic / CSR activities : KPJ play important role in promoting health awareness
to the large. As part of it is CSR activities KPJ provide free medical camps in rural
areas, conduct baby wellness program and health life style campaign as well as
established support group community outreach program.
 Private Nursing Colleges : Nurses can be easily to KPJ as they can be easily be sourced
from its college.
 Information and communication process : KPJ has successfully implemented the KPJ
Clinical information System (KCIS), this new system include medical care solution for
the patient management, nursing care solution, patient information can be easily shared

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 throughout the group facilitates patient transfer from one hospital to another hospital
based on the situation.
 Strong financial support from parent company ; KPJ gets financial support from the
parents company Johor corporation, is indisputably one of the most successful
corporate organizations in Malaysia. The remarkable success of Johor corporation in
developing Johor into a thriving industrial state has become a model for state
development programs in the country.
 Extensive national network : One of the strength of KPJ healthcare is that group have
extensive link or presence across every state in Malaysia it is the only private hospital
with such as large number of hospitals in Malaysia.
 Professional Development : KPJ healthcare fully acknowledge the human potential as
the most important element in enhancing professionalism, management expertise and
turning visions to realities, KPJ Healthcare Berhad has further initiated and launched
strategic affiliations with international partners and foreign universities to provide
continuing professional education to its team of consultants and the staff. By helping to
train and further develop healthcare professionals, KPJ Healthcare Berhad has
undertaken the sponsorship of doctors, pharmacists, nurses, paramedics and other
support personnel to meet the constantly growing demand for quality healthcare
services in the country.

Weaknesses

* Perishable medicine expiration : The medicine cannot be used after expiry date, inventory
is highly sensitive to storage temperature, humidity and etc.

* Liquidity issues : KPJ have cash problem liquidity this will slow the day to day operations
of the hospitals and cash is needed in every transaction.

* Information Technology : all KPJ hospitals don’t have the KPJ Clinical information
system (KCIS), this weakness can slow down the operations of various hospitals.

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Opportunities

* The demand for health care is growing rapidly in Malaysia. Currently the people who care
about their health increased than before in Malaysia and around the world so the increase of
people who care about their health increased than before in Malaysia and around the world so
the increase of people who care about their health will help the hospital to expend their business
and this will increase the income of the hospital.

* Medical tourism : Malaysia government has plan to spur growth in medical tourism market.
Although this plan is has just started and not in the robust growth yet however could be a
significant if success. (Morgan JP, 2012)

* Overseas market : The majority of Malaysia’s neighbours are not sophisticated like Malaysia
in terms of medical progress and medical advances, but nowadays these kind of countries is
growing strongly and this will help KPJ to open more branches in future.

* GDP growth rate is high in Malaysia : Malaysia economy is doing very well and Malaysian
income levels rise in tandem with the country’s progress. Better education, longer life span and
desire for a better lifestyle also make them more willing to spend more on healthcare.

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Threats

* Competitors : Other rival company such as Pantai and Columbia has been aggressively
expanding around Malaysia in an attempt to seek a bigger slice of Malaysia’s healthcare pie.
(Morgan JP,2012)

* Limited supply of qualified medical personnel : There is shortage supply of qualified doctors
and nurses to cater to the growing demand for healthcare services in Malaysia thus may delay
expansion plans KPJ Healthcare (Standard Charted Analyst,2012)

* Availability of low cost healthcare equipment : Currently there are many companies that
manufacture health products that assist the patients in his / her home and does not need to go
to the hospital and this will be affected negatively to the hospital , because may some of
customers will not go to the hospital only if they are in the critical situation.

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Internal factor evaluation (IFE) of KPJ Healthcare Berhad

Internal Strengths Weight Rating Weighted score

1) Strong management team 0.10 3 0.30

2) Reputation for quality 0.07 3 0.21

3) Customer satisfaction 0.08 4 0.32

4) Major specialist services 0.10 4 0.40

5) Strong relationship with doctor 0.07 3 0.21

6) Brand and reputation 0.05 3 0.15

7) Strong market position/market leadership 0.07 4 0.28

8) Information and communication process 0.03 3 0.09

9) Professional Development 0.03 4 0.12

10) Extensive national network 0.10 3 0.30

Internal weaknesses

1) High operating costs 0.10 1 0.10

2) Perishable medicine expiration 0.05 1 0.05

3) Need to modernize information 0.05 2 0.10

Total 1 2.63

Table 1 : Internal factor evaluation (IFE) of KPJ Healthcare Berhad

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 Internal factor evaluation (IFE) matrix is a strategic management tool which is
used for auditing or evaluating major strengths and weaknesses in functional areas of a
business. The highest score of internal strengths of KPJ Healthcare Berhad is major specialist
services which the weighted score gets 0.40. KPJ Healthcare Berhad is committed to provide
their very best and among the latest specialty health service and facilities. Besides that, KPJ
Healthcare Berhad also offer a comprehensive range of service for prevention, detection and
treatment for diseases. This service are backed by highly trained team of medical consultants,
nurses and allied staff which supported by modern equipment and facilities. Secondly, the
important of customer satisfaction is derived from quality delivery healthcare that have been
set by the organisation with zero tolerance. The good systems which is used in KPJ Healthcare
Berhad deliver safe and effective healthcare. Strong management team and extensive national
network get a same score which is 0.30. The good management is to provide best service to the
community in an appropriate, efficient, equitable and sustainable manner. This can only be
achieved if key resources for the service provision, including human resources, finances,
hardware and process aspects of care delivery are brought together at the point of service
delivery and are carefully synchronized. Furthermore, reputation for quality and strong
relationship with doctor show the weigh score 0.21. For examples the reputation of an
organization is based on how it is perceived by clients, employees, suppliers and general public.
There is a tradition of assessing the reputation of hospitals from the professional viewpoint. In
the KPJ Healthcare Berhad the lowest weighted score is professional development and
information and communication process.

The internal weaknesses of KPJ Healthcare Berhad is high operating costs and
KPJ need to modernize information which the weight score 0.10. The perishable medicine
expiration show the lowest weighted scored which is 0.05. KPJ Healthcare Berhad must have
the ability to examine and make changes based on internal strengths and weaknesses.

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External Factor Evaluation (EFE) of KPJ Healthcare Berhad

External Factor Weight Rating Weight

Opportunities
1) Internet advertising 0.3 2 0.6

2) Hospital location in dense 0.05 1 0.05

residential area
3) Tendency of patients to use modern 0.3 2 0.6
equipment for diagnosis and
treatment
4) KPJ achieving international 0.05 1 0.1
standards
Threats
1) Legal limits on outsourcing some 0.1 2 0.2
services
2) Weak support from human 0.1 3 0.3
resources regarding privatization
3) Improper structure of rules and 0.1 3 0.3
regulations in field of privatization
Total 1 2.15

Table 2 : External Factor Evaluation (EFE) of KPJ Healthcare Berhad

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 Table 2 show External Factor Evaluation (EFE) which is opportunities and threats of
KPJ Healthcare Berhad. According to table 2, internet advertising and tendency of patients to
use modern equipment for diagnosis and treatment show the highest weight score which is 0.6.
Furthermore, KPJ Healthcare Berhad always focus on the internet advertising because the
advertising can help to producers or the companies to know their competitors and plan
accordingly to meet up the level of competition. Besides that, the hospital location in dense of
residential area which can make the people easy to find the location of KPJ Healthcare Berhad.
KPJ Healthcare Berhad is achieving international standards which the weight score 0.05.
Besides that, for the External Factor threats, in the KPJ Healthcare Berhad, the weak support
from human resources regarding privatization and improper structure of rules and regulations
in field of privatization show the weight score 0.3 while the legal limits on outsourcing some
services show the weight score 0.2. The total mark for weight score for opportunities and
threats is 2.15.

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 Competitive Profile Matrix (CPM)

KPJHealthcare Parkway Pantai Columbia Asia

Berhad

Critical Success Weight Rating Weight Rating Weight Rating Weight

Factor Score Score Score

Service quality 0.07 4 0.38 4 0.28 2 0.14

Location 0.08 3 0.24 4 0.32 3 0.24

Customer loyalty 0.07 3 0.21 4 0.28 2 0.14

Finance 0.12 3 0.36 4 0.48 2 0.24

Price 0.16 3 0.48 4 0.44 3 0.48

Advertising 0.08 4 0.32 3 0.24 3 0.24

Technological 0.10 3 0.30 4 0.40 3 0.50

Competence

Organizational 0.08 4 0.32 4 0.32 3 0.24

Structure

Management 0.07 4 0.36 3 0.21 2 0.14

Marketing 0.17 4 0.68 3 0.51 2 0.34

Total 1 3.65 3.48 2.70

Table 1 : Competitive Profile matrix of KPJ Healthcare Berhad, Parkway Pantai and
Columbia Asia

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 According to the table 1, show that the critical success factor of KPJ Healthcare Berhad,
Parkway Pantai and Columbia Asia. The overall competitiveness of a firm can be evaluated on
the basis of its overall strength rating. If the different basis of its overall strength rating. If the
different between a firm’s overall rating and the score of lower rated rivals is higher than the
firm has greater net competitive advantage. Besides that, if the different between the firm’s
overall rating and the score of higher rated rivals is bigger than the firm has greater net
competitive disadvantage. In the above example show that, competitive profile matrix shows
that the total weighted score of KPJ Healthcare Berhad is higher than Parkway Pantai and
Columbia Asia which means that KPJ Healthcare Berhad enjoys the strongest competitive
position. On the other hand, Columbia Asia has net competitive disadvantage because of its
lower total weighted score than KPJ Healthcare Berhad and Parkway Pantai.

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Analyse its financial positions based on its Annual Report for 2017 and 2018

2018 2017
RM 000 RM 000
Revenue 3,308,117 3,179,998

Purchase of goods and service (2,128,103) (2,108,672)

Values added by the group 1,180,014 1,071,326
Other income 29,371 26,271
Finance income 8,570 13,367
Finance costs (89,632) (79,950)
Share of results of associates 41,670 39,540
Values added available for distribution 1,169,993 1,070,824
Distribution
To Employees 737,919 693,659
To Government / Approved Agencies 76,581 60,030
To Shareholders :
Dividend 84,681 74,676
Non-controlling interest 8,351 7,742
Community investment 13,244 10,035
Retained for re-investment 165,563 143,839
Retained for future growth 83,654 80,843
Total distribution 1,169,993 1,070,824
Value added per employees (RM000) 86 80

Wealth created per employees (RM000) 85 80

Value added per share (RM) 0.27 0.25

Wealth created per share (RM) 0.27 0.25

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Based on the financial position annual report for 2017, 2018, the values that KPJ Healthcare
Berhad creates for its stakeholders can either be in the form of financial return or in non
financial or intangible forms. The statement of values added illustrates on how KPJ Healthcare
Berhad’s performance supports the Group’s ability to deliver the financial value to its
stakeholders. The financial value in the statement is based on the profit before finance costs,
community investment expenses, zakat and tax, depreciation, impairment & amortisation and
staff costs.

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Summary and the strategic positions of KPJ Healthcare Berhad

KPJ Healthcare Berhad (‘KPJ’ or the group) is a Malaysia’s leading provider of private
healthcare services. It is one of the largest private healthcare providers in the region with a
network of 22 private hospitals in Malaysia. Besides that, KPJ Healthcare Berhad portfolio
includes hospital management, healthcare technical service, hospital development and
commissioning, nursing, healthcare sciences and continuous professional healthcare education,
pathology service, central procurement and retail pharmacy. KPJ’s competitive advantage lies
in its extensive reach and presence in the highly competitive private healthcare industry.
Furthermore, with its hospital located in various parts of the nation, the group’s hospital are
easily accessible and offer a diverse range of medical specialist services, many of which is the
major firsts in the nation’s healthcare industry. The main vision of KPJ is leveraging on
dynamic partnership a shared of ambition to build the healthier communities and a steadfast
commitment to care of life and the main mission is deliver the quality healthcare services.
Moreover, the objectives of KPJ Berhad is striving to achieve thee vision and carrying out the
mission because it will also continue to build on its core values which states the overall purpose
of the company. The KPJ Healthcare Berhad short term and long term goals is want to increase
the number of specialist hospital and develop new hospitals, local and overseas. Swot analysis
is a strategic planning technique which is use to help a person or organization to identify
strengths, weaknesses, opportunities and threats which is related to a business competition.
Internal Factor evaluation (IFE) is a strategy tool which is used to evaluate firms internal
environment and to reveal its strengths as well as weaknesses and External Factor Evaluation
(EFE) is a strategy tool which is used to examine company’s or organization external
environment and to identify the available opportunities and threats. In addition to that, the
competitive profile matrix (CPM) is a tool which can compares the firm and its rivals and
reveals their relative strength and weaknesses.

There are many strategic positions of KPJ Healthcare Berhad. In an age of

marketing warfare in the health care industry, hospital need a creative strategies to compete
successfully. A brand strategy that differentiates the organization, motivates target audiences,
grows the business and builds engaged; loyal supporters is vital. For example, mergers and
acquisitions have created a healthcare environment that is confusing, crowded and inconsistent.
Patients are looking for standout partners that are trustworthy and genuine about wanting to

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help. The effectiveness strategies focus on gaining higher value from the organization and
delivery or services. For example, effectiveness has gained increased focus of many healthcare
organizations in the last several years as reimbursement and financial pressures have mounted
and market volume growth has stagnated or shrunk. To achieve a better market position, each
health care organizations must position itself in a unique manner to differentiate itself from its
competitors. For an organization like KPJ Healthcare Berhad to maintain the customer loyalty
and attract new customers, it must provide unique service. The KPJ Healthcare Berhad must
target a unique market befitting its unique services to acquire new customers.

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References

Strategic Management: BBPS 4103 : Prof Datuk Dr Md Zabid Abdul Rashid, 2014

http://kpj.listedcompany.com/profile.html

https://www.scribd.com/document/156134629/Kpj-Healthcare-University-College

https://www.academia.edu/28062990/Strategy_Case_KPJ_Healthcare_Berhad_largest_Privat
e_health_provider_in_Malaysia

https://mba-lectures.com/management/strategic-management/935/competitive-profile-matrix-
cpm.html

https://www.owler.com/company/kpjhealth

https://www.antiessays.com/free-essays/Kpj-Berhad-122090.html

https://www.strategicmanagementinsight.com/tools/ife-efe-matrix.html

https://barbradozier.wordpress.com/2013/03/08/positioning-and-differentiation/

https://www.fullsurge.com/blog/5-ways-to-build-brand-positioning-better-in-healthcare

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