Reference no: EM133025385

CASE STUDY

ABC Sdn. Bhd. has been established as a hospitality & property management company in Kuala Lumpur. Officially, the firm was incorporated in 17th September 2017. The company provides a wide variety of real estate services to investors for short- and long-term basis. The company understands that Malaysia is one of the attractive countries in South East Asia and has a tremendous demand on MM2H program. Therefore, it focuses on consultation of property purchase, its benefits and after purchase profit making strategies. Some of the solutions that ABC Sdn. Bhd. offers to its clients are: • Broker Opinion of Valuation • Managing the Property while vacant • Marketing the Property for Lease The revenues of the company are expected to be nearly RM3,000,000 per annum depending on the variables that are factored in with investments in the real estate industry. In 2019, the company strategize its actions to increase the revenue by 200% due to increasing demand of property owners to lease their properties for short term accommodation purposes such as Airbnb or language schools' hostels. The company's main idea is to seek for customers who would want to invest in the Malaysian property industry. For instance, people who are willing to retire in a warm Muslim developed country. There are other types of customers profile such as those looking for property purchase as an investment. The preceding kind of people is the main target of investor for ABC. At the same time, the company does not position itself as a professional consultation company, which provides economic consulting services to developers or institutional investors. After purchasing of a residential or commercial property, the company helps owners to make extra profit instead of renting out to an average period. The company helps with the furnishing, does necessary professional photography, and uploads Ads online for short-term rental service providers such as Airbnb, Trip Advisor, Booking.com and Agoda. Furthermore, it manages the processing of checking in and checking out, housekeeping, rate management, legal services such as obtaining necessary licenses and taxation. One of the projects of the company is a guesthouse, which was turned into cosy guesthouse situated in the most popular district of Kuala Lumpur. SWOT Analysis: Technological Management System Reliable Banking Services Open HR Worldwide Connection New Regulations Foreigners Employment laws Culture and Language Barriers Visa Permits non-acquaitance of local laws Strength Weakness Threat Opportunity Development of Tourism Burst in Property Development Sector Business Diversification Opportunites Based on conducted comprehensive SWOT analysis of the company, it became obvious that the managers must pay attention to their weak sides, such as cultural and language barriers, which may need to be precise in terms of hiring employees with more local culture familiarization or to organize trainings for them and make them qualified in terms of local acceptance. Along with that, the company needs to emphasize on familiarizing itself with local regulations, it can be done by hiring a part-time lawyer and usage of law firm consultancy. Furthermore, ABC Sdn. Bhd. Directors must simultaneously pay close attention to their opportunities, such as shifting to a more traditional way of business or it even can be a expansion in neighbouring counties. For example, start a business in the Philippines islands.

Perform PESTLE analysis for ABC Sdn. Bhd.