STRATEGIC

MANAGEMENT
DIVISION REPORT

Ahmad Fuad bin

Ishak
Nor Adill bin Bahatim
Noorhazarin bin
Hassan
Vijayan A/L Krishnan
 COMPANY HISTORY

Known as Malayan Telecommunications Department

Beginning as the national telco for fixed line, radio and
1946 television broadcasting services

Renamed Jabatan Telekom

First tasks was to provide telecommunications facilities
1957 throughout the nation, as part of the Rural Development Plan

Incorporated as Syarikat Telekom Malaysia (STM), under

the Telecommunications Service (Successor Company)
1987 Act 1985

TMB underwent a major rebranding as TM

TMs total international cellular subscriber base stood at
2005 30.3 million
https://youtu.be/aOZvhYH5mUY?
list=PL0Pjmz7zbt8OrUJpWjkbuJ71uP7S0_bPT
ORGANIZATION STRUCTURE
 VISION, MISSION, OBJECTIVE
To make life and business easier,
for a better Malaysia
We deliver Life Made Easier
1. To customers, through converged lifestyle communication
experiences
2. To businesses, by collaborating with and supporting them with
integrated solutions
3. To the nation, by supporting socio-economic development through
education, innovation & social education

TM looks forward to continue serving customers with its

comprehensive suite of offerings, delivering a seamless digital
experience and integrated business solutions to meet their
lifestyle and business communication needs - towards making
Life and Business Made Easier for a Better Malaysia.
 PRODUCTS & SERVICES

SATELITE,
VOICE MARITIME,
TM GLOBAL
SERVICE RADIO
SERVICE

DATA INTERNET TM
SERVICE SERVICE WHOLESALE

SPECIAL
APPLICATIO BROADCAST
NETWORK
N SERVICE SERVICE
SERVICE
 TM MARKET SHARE AND
REVENUE
PERFORMANCE

Telco Market Share

TM Group: Revenue VS Profit
Q1 2016

OTHERS; 5%
DIGI; 6%

MAXIS; 12%

CELCOM; 14% TM; 63%

 EXTERNAL AND INTERNAL ANALYSIS

Weights
Each key factor should be assigned a weight ranging from; 0.0 (low
importance) to 1.0 (high importance)
EFE Matrix.The ratings in IFE Matrix.The ratings in
external matrix refer to how internal matrix refer to how
effectively companys strong or weak each factor is in
current strategy responds to a firm.The numbers range from
the opportunities and 4 to 1, where;
threats. The numbers range 4 means a major strength,
from 4 to 1, where; 3 means minor strength,
4 means a superior 2 minor weakness and
response, 1 major weakness.
3 above average response, Strengths can only receive
2 average response and ratings 3 & 4, weaknesses 2 &
1 poor response. 1.
 INTERNAL FACTORS EVALUATION
MATRIX
Weig Ratin Weighte
Internal Factors Evaluation Matrix
ht g d Score
Strengths
1. Diversified income (more than 52,927 graduates from MMU
& MMC ) 0.1 4 0.4
2. Brand reputation valued (revenue RM11.72 billion-year
2015) 0.08 3 0.24
3. Strong patents portfolio 0.07 4 0.28
4. Excellent employee 'valuable asset' (28,008 employees) 0.02 3 0.06
5. Competency in mergers and acquisitions 0.06 3 0.18
6. Extensive distribution channels (globally - Singapore, Hong
Kong, Sydney, Washington, San Francisco and London) 0.11 4 0.44
7. Strong position in ecosystem (promoting an innovative ICT
ecosystem) 0.08 4 0.32

Weaknesses
8. High operation cost 0.1 1 0.1
9. Over-dependence on main suppliers 0.13 2 0.26
10. Decrease profit for financial year (2014: RM832mil, 2015:
RM700 mil) 0.07 2 0.14
11. Competition based on prices 0.09 2 0.18
 EXTERNAL FACTOR EVALUATION MATRIX

Weig Rati Weighte

External Factor Evaluation Matrix
ht ng d Score

Opportunities
1. New trade agreement that signed with a neighboring country. 0.11 3 0.33
2. Signing a contract with a new supplier. 0.09 1 0.09
3. Processed market growing by 15% next year in our largest
market. 0.24 2 0.48
4. Incorporating a new company in neighbouring country 0.1 1 0.1

Threats
5. The contract with the main customer expires in 2 months. 0.17 4 0.68
6. Extreme cases of natural disasters occurring next year. 0.03 2 0.06
7. Leveraging on innovation and technology 0.14 3 0.42
8. Competitor diversifying their product lines 0.12 2 0.24
Total 1 2.4
TM has received total score 2.40, which indicates that companys
strategies are neither effective nor ineffective in exploiting opportunities or
defending against threats. Hence, need to improve its strategy and focus
more on how take advantage of the opportunities.
 SWOT ANALYSIS

Strength
Strong service portfolio across its
market
Increasing liquidity helping to
implement diversified strategies
TM is the largest contributor to the
USP
Strong workforce of over 30,000 staff
Strong brand name
Excellent brand visibility through
TVCs and print advertising campaign
CSR activities and sponsorship
SWOT ANALYSIS

Weakness

High cost structure

Repair for breakdown is slow
Lack of expertise and
technology
Corroded cable line
Lack of workforce
management
 SWOT ANALYSIS

Opportunities
New service to attract new
customer and investor
Strategic agreement to help grow
in new market
New technology (innovation)
Growth rates and profitability
growth in this industry predicted to
increase revenue
Emerging market increasing
broadband market across the world
SWOT ANALYSIS

Threats
Regulatory changes causing
constant impact on operation
Competitive pressure leading to
pricing crunch
Technological changes need
capital infusion
Technological problem
Growing competition and lower
profitability
Network disruption
 STRATEGY IMPLEMENTATION

1. Launching its First Media Delivery Service Leveraging

Octoshape Streaming Technologies
High Definition (HD) Streaming which it provides
true HD quality video over the Internet with
unique technology through wireless networks.

TV Streaming- realistic Live TV on the Internet

Radio Streaming- exceptional audio streaming

and instant

Digital Video Recorder (DVR)

On Demand Service- Instant access to HD quality

 STRATEGY IMPLEMENTATION

2. TM Plans Investment of RM3 billion CAPEX

Expansion of its high speed

broadband (HSBB) network and its
Wi-Fi hotspots.
to provide access, build TM core
network and support systems.
(17,000 hotspots in the country,
universities and shopping areas
covered by TM's Wi-Fi service.
upgrading of existing copper
lines to deliver HSBB access
speeds of up to 20Mbps and up
to 100Mbps in areas deployed
with fibre-to-the-home (FTTH)
 STRATEGY EXECUTION

1. Dominant position in fixed

telephony
Strong take-up of broadband by residential and small
business users.

Expects to earn RM400mil to RM600mil in revenue over

10 years to 15 years by wholesaling bandwidth to Celcom
and DiGi,

TMs operational performance met expectations, with

EBITDA showing 11% on-year growth driven by
broadband, Internet and projects.

Strong growth in broadband, Internet and lumpy projects

pushed revenue up 11% on-year and EBITDA up 8% on-
year.
 STRATEGY EXECUTION

Focusing on two key strategic thrusts

Deliver Convergence and Go
Digital, we are confident of doing
well in 2016. Continuous efforts to
cultivate a Productivity and
Innovation culture in everything we
3.do.
Credit
Management Policy
The Group continues to improve the
execution of key controls in our
credit management policy by
assigning credit ratings based on
customers payment behavior, and
tainting customers with a
consistently bad payment track
 STRATEGY MONITORING

Periodic assessments are integral to the Managements

continuous monitoring of internal controls.
1. Management Committee
Two top-level committees, the Management Committee (MC) and Group
Leadership Team (GLT) chaired by the Group CEO, have been established with
clear demarcation of roles to manage the Groups strategies and policies
effectively.

2. Audit and Business Assurance Committee (ABAC)

Effective monitoring and tracking of internal and external audit issues are in place
through deliberation in the ABAC to ensure the issues are resolved in a timely
manner and recommendations implemented effectively.

3. Headline Key Performance Indicators (KPIs)

KPIs with detailed balanced scorecards are monitored and tracked to ensure the
Group achieves the financial, operational and customer experience targets that
were set earlier.

4. Fraud Investigation and Management

Investigations on telecommunications fraud are carried out by the Fraud
 CONCLUSION

TM is executing its strategy well and it is benefiting from

its very dominant position in fixed telephony.
TM is the key beneficiary of strong take-up of broadband
by residential and small business users.
At the wholesale level, it is benefiting from mobile
operators looking to fiberise their network.
Strong growth in broadband, Internet and lumpy projects
pushed revenue up.
Broadband was driven by a combination of subscriber and
Unifis average revenue per user (ARPU) growth.
By fully utilizing new technology, TM is expected to reduce
its operational costs, then would increase net profit.