Economic
issue in Malaysia is one of the challenges faced by Tan Sri Vincent Tan. Implementation
of Goods & Service Tax (GST) in 1 April 2014 not only increase the burden
of the consumers, also increase the burden of businessman. There might have
inflation effect since the GST is applied to all the goods and services. When
the inflation occurs, demand of consumers in the market will decrease due to
higher living cost. Decrease in demand will affect the profit of an
entrepreneur  as it limited purchasing
power of consumer. Implementation of GST also force consumers to spend less and
more concern when they want to buy things. Hence they will think twice whether
the stuff is necessary or important for them. Besides that, economic recession
will cause unemployment occur. Some company will cut costs by reducing the
number of workers in the company. It will affect workers to lose their jobs.

            Launching
a business involves certain amount of risk. Financial challenge is one of the
challenges that every entrepreneur have to deal with. Business financing
requires a large amount of liquidity on the part of business, and it is often a
challenge for entrepreneur to maintain sustainable amount of liquidity on the
business in the long term. When company do not have enough amount of liquidity
in their business, they will miss their chance to have a good business
development. And later on, company will lose their clients and ultimately close
down of the company will occur for those owners who fail to overcome the
challenge. Besides that, an entrepreneur must smart in running business by
making wise decision in right time. Knowledge in variety field of investment is
a must for them. They must acquire knowledge about when to make investments and
how to make the investment perfectly to gain profit from that investment. If an
entrepreneur without expert experience and forward thinking, it will difficult
for them to play their role in the business to make them success moving
forward. When Tan Sri Vincent Tan face financial challenges, he will try to do
his best to overcome it by work with the bankers. He has to show good track
record with his bankers so they can give supportive to him.

            Competitors
also one of the challenges that faced by many of the entrepreneur. In order to
make your products or services stand out in the market, company need to know
who their competitor are, and what they are offering. Entrepreneur can use the
strategy of SWOT to help them identify the strategy that used by competitor. SWOT Analysis is an useful technique
for understanding our company’s Strengths, and Weaknesses, and for identifying
both the opportunities open to us and the Threats we will be face. Entrepreneur
can take advantage on competitor’s weakness and try to improve it in their
business performance. Competitor play an important role in business market as
they will make everyone alert about themselves. Existing competitor will become
a threat to a company that is standing at current step. The company will then
try to work hard and smart in producing and improving the products or services
that are compete with competitors. Competitor of Berjaya Group Berhad are CCL
Industries Inc, Sime Darby Berhad and New World Developement Company Limited.
Sime Darby Berhad involved in plantations, property, industrial, motors and
logistics. While CCL Industries Inc is a specialty packaging company that provides
packaging products to the Home & Personal Care, Food & Beverage, Healthcare, Apparel and
Specialty markets worldwide. These two
company are the principal competitor that faced by Berjaya. So, Tan Sri Vincent
Tan need to be more cautious when he wants to make decision as if make wrong
decision, Berjaya maybe will take over by the other company.

   

Recommendation

            Tan Sri Vincent Tan can
improve productivity in company by evaluating prices with other competitors.
Berjaya Group Berhad has a lot of compete company such as CCL Industries Inc,
Sime Darby Berhad and New World Developement Company Limited. Berjaya Group
Berhad need to think cautiously and think twice when they want to set the
price. They also need to check out what their competitor doing and make sure
the prices setting are not too high or low. If the setting price are too high,
the customers will switch to other compete company. This will make loss for
their company.

            The
other ways that Berjaya Group Berhad can improve for their productivity is by
upgrading technology in company. One of the responsibilities of an operation
manager in Berjaya is to analyze work functions and determine what technology
upgrades would improve productivity. Technology plays a vital role to every
organization especially nowadays in this technology world. Technology
can help to reduce the burden of an individual and can also help to increase
the efficiency of the company in doing their work. Example, by
centrally locating the performance appraisal information within a formal online
framework, managers can easily and effectively communicate business strategy
and create measurable goals for their employees that will support overall
company objectives.