Strategic Management - Eu Yan Sang Case Study

8313 words 34 pages
CONTENTS

COVER PAGE 1

CONTENT PAGE 2
1. EXECUTIVE SUMMARY 4
2. INTRODUCTION 5
3. CURRENT COMPANY SITUATION 6
3.1. Past Performance Assessment 6
4. EXTERNAL ANALYSIS 7
4.1. Political 7
4.2. Economic 8
4.3. Social 8
4.4. Technological 8
4.5. Legal 9
4.6. Environmental 9
4.7. Conclusion of PESTLE Analysis 10
5. INTERNAL ANALYSIS 10
5.1. SWOT Anal ysis on Eu Yan Sang 10
5.2. Conclusion of SWOT Analysis 11
6. INDUSTRY ANALYSIS 13
6.1. Key Success Factors 13
6.2. Michael Porter’s Generic and 5 Forces Analysis 15
6.3. Michael Porter’s 5 Forces Analysis 15
6.4. Implications of Assessment (Issues) 17
7. OBJECTIVES 18
7.1. Short-Term (1-2
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Company has achieved 13% compound annual growth rate from 2000 to 2010. Operating income is the beat measurement of financial performance and financial performance has increased by 15% to $ 23.3 million. Company’s net profit has improved by 47% from $13.0 million to $19.2 million (Eu Yan Sang: Annual Report, 2010). The company's shareholders have been receiving excellent prices for their shares at $5.32 per share as compared to $ 3.63 in last year. Eu Yan Sang proposed final dividend to their stakeholders of 1 cent for basic and 1.5 cent for special dividend. In the last year, it was 1 cent for final dividend and 1.2 cent for special dividend and total 2.2 cent dividend (Eu Yan Sang: Annual Report, 2010). The Company has given above 40% net profit in dividend payout from the last eight years. 4. EXTERNAL ANALYSIS From the organization’s point of view, it is important for the firm to accurately assess external environment to determine the best posture to adopt. A vital tool to understanding the complexities of the operating environment is the PESTLE tool, which assesses the operating environment in terms of political, economical, social, technological, legal and environmental factors. In the context of EYS, conducting a PESTLE analysis is crucial to figuring out the direction of the organization. Here, the analysis is used to determine whether EYS should remain in Singapore for the near future. 5.2. Political The

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