Bachitter Behniwal

Part A Report
1.0 Background
Caroline Chang/Leon Ng Company Secretariesof Keppel Corporation (KC) on the
26 January 2017 address on behalf of the Keppel Corporation CEO that 2016 was a
challenging and eventful year, marked by the US Presidential election, Brexit, and
slow global growth. A rising trend of insularism and increasing anti globalisation
sentiments, if left unchecked, could threaten free trade(Keppel Corporation ,2016)
Financial Report .
Today, the situation is even more severe, the face of Donald Trump on going
fulfilment of his after voting obligation. In fact the American First polices derailed
the future into an uncertain environment (Sheila Smith, East Asia Forum, assessed
on 23 Mar 2017), What Trumps America First agenda means for Asia.
The rapid evolution of new technologies and business models has also
disintermediated many traditional businesses, while creating new opportunities for
companies able to seize them.
It is with this in mind, the two reports that follow would provide some light for me as
an appointed Business Analyst of KC addressing to the CEO of KC.
2.0 The different types, size and scope of organisations.
There are basically 3 main types of business organisations. The profit, the non profit
and the cooperatives.
The differences between for profit and not for profit are as the name said, the profit
type of companys objectives is making profit. In contrast, the non profit organisation
is mainly voluntarily and their objective is no profit but care for society. The
cooperative likewise, serve its members in term of benefit.
In term of size, we are looking to the amount of investment, the number of
employess and its investment overseas. Big organisations tends to have more
venture in term of scope and higher return on investment and having many staff..
The range of legal structures associated with different forms of business: sole
traders, partnerships and private limited companies are varies. For example, Sole
trader has got its disadvantage of continuing his business but has the advantage of
keep all the earning. Also, the liability of public and private are different. For
example, private one has unlimited liability.
The below table gives an idea of the different type of businesses:

1
Figure 1 : Types of business.
2.0 The size and scope of a range of different types of organisations.
In contextualizing, I would like to mention 3 organisations. As in Scenario given,
Keppel Corporation Ltd (KCL), is a mutlti national company with many type of
products. Singapore Cancer Society (SCS) can the voluntarily type of organisation
that I have mentioned in Task 1.1. And as discussed in the class, Jewel is a
condominium with can be considered as consumer co operatives. The difference
between SCS and the Jewel is the cooperative is control by the government while
the SCS is not.
Analysing the (BTEC course book for level 3, Chapter 1), the size and scope would
depends on the following:

Local
If for example, you needed a plumber, taxi or just a pint of milk, you would probably
go to a local business. This means businesses that operate in just one
area, serving the local community. Businesses on this scale will often be
small. privately owned sole traders who employ very few people.

National
Both In the UK and in Singapore, there are many businesses that operate all over
the country, on a national scale.

2
International
In Singapore, we may be surprised to see many of the same brands and products
that you see in the UK. For example: Marks and Spencer.

Global
Go to anywhere in the world and you will be able to find a bottle of Coca-Cola.
In term of size another proxity of size and scope , could be:

Primary
Secondary
Tertiary

In term of primary it would be the input process raw material, the secondary being
the transformation process. And lastly, the finished good which is the so called
Tertiary.

Figure 2: The different sectors of business

Relative to Keppel Corporation, the final sector, which is the secondary is their area
of business.
In term of size, there are many yardsticks to measure:

Keppel Corporation can be considered to be a Multi- National Country employing

over 300,000 staff globally.

3
2.0 The relationship between different organisation function and how they are
linked to organisational objectives and structure
An organizational structure is the framework of a company and strategy for
managing business operations. There are two types of structures, that can be
established in the organization, government, management and even in purchasing:
centralization and decentralization. To determine whether an organization is
centralized or decentralized, greatly depends on the location of decision-making
authority and the degree of decision-making power at lower levels (Vitez, 2016).

2.1 Organizational Structure, People, system and leadership forms a

Organizational culture
Organisational Structure and Its Importance Johnson and Scholes (2002) noted that
organisational structure can be defined as the established pattern of relationships in
context with an particular organisation. Hartle (1995) further pointed out that
organisational structure in its essence is a formal system by means of which an
organisation controls, co-ordinates and motivates its employees. Furthermore,
Armstrong (2006) points out that organisational structure describes an organisations
framework in such a manner that hierarchical relationships between the supervisor
and the subordinates are defined, tasks are allocated to different person(s) and
departments. In summary organisational structure is a set of policies, procedures
and standards and the methods of evaluation of performance that are formulated so
as to guide the people and their activities. Armstrong (2006) notes that having a
sound organisational structure enables an organisation to establish clear authority
generates a common communication pattern and properly allocates decision centers
within an organisation. Furthermore Brewster et al. (2007) noted that an sound
organisational culture stimulates creativity and initiative among the organisational
members by providing a defined pattern of authority. Armstrong (2008) added that an
effective organisational design consist of five key inter-related elements.
These elements are responsible for a clear and streamlined organisation that
assertively has distributed clear roles and accountabilities for decisions, an
organisational structure that supports objectives. It also recruits and retains
individual talent necessary for success. These elements lead to a clear
communication amongst the key stakeholders, the upper management and the
middle level management, thereby resulting in a successful organisation.

4
Figure 3: Organisational Structure, Leadership , System and people formulated the
Organisational culture,

2.2 Centralized And Decentralized Organizations Differences

There are specific factors that differentiate two types from each other, for example,
centralized considers command, control, and rules, whereas decentralized is about
no clear leader, no hierarchy, no headquarters; flexibility, shared power. In
centralized organizations Top-down authority establishes a specific chain of
command, with owners or executives/managers making all the key decisions with
little or no input from rank-and-file employees. This consolidates decision-making
authority and holds specific individuals responsible for the outcomes. However, the
process of decision making may be slow, which can disrupt the workflow. In
decentralized organizations multiple individuals, including rank-and-file employees,
can make important decisions and set policies and procedures that guide how the
business is run. Which means that decision making in decentralized organizations is
comparatively faster than in centralized. But there are also drawbacks such as CEO
will have less control or it may promote unhealthy competition among managers
(Rahbar, 2016 ).

Rob Beckstrom considers and associates centralized and decentralized

organizations as spider and starfish respectively. He tells that the biological structure
of spider is very similar to the centralized organizations criteria, which means that if
the spider will be deprived of its legs, neither it nor the legs will be able to operate.

5
Whereas if the starfish is divided, all of its parts can act separately; what actually
happens in decentralized organizations.
The classic example of centralized organization is Microsoft Corporation. Also fast
food businesses like Burger King and McDonalds use predominantly centralized
structure to ensure that control is maintained over the thousands of outlets. A good
illustration of decentralized organization is Ebay, where the power is sent to the
people who use it: consumers control and choose what to buy and sell. Johnson and
Johnson also use decentralized structure; decentralizing management is a good way
to spark innovation and train corporate leaders, according to William Weldon, CEO
of Johnson & Johnson. One example happened when J&J brought together
individuals from its medical products with its drug business. "They came up with
putting a drug on a stent ... for cardio-vascular disease, which was a huge
breakthrough," he says (Galuszka,2008).

Taking into consideration all information mentioned above it can be seen that there
are two types of major structures: centralized and decentralized. Even if there is a
range of different types of companies that use either one or another structure, the
centralized approach is better to use for the companies when they start a new
business and for the grown business it is recommended to use more decentralized
structure. There are advantages and disadvantages in both structures, that is why
companies need to decide which one to choose basing on the strategy they follow.
2.3 Type of Organisational Structure
Different structures are appropriate for different contexts. Each type has its own
characteristics,distinct strengths and potential weaknesses.

Figure 4: Functional Structure

6
This functional structure has been described as both a 'machine bureaucracy' and a
silo structure, because it groups similar or related occupational functions of
processes together under unit heads like teaching departments, student
administration, technical support, marketing, finance and HR. Its strengths are that it
reduces uncertainty,
provides ease of supervision, economy and efficiency, simplification and
standardisation of staff training, and maintains the power and prestige of major
functions.

Its weaknesses are that it encourages sectional interests and tensions between
functional groups. It has poor cross function communication which results in
duplication of effort, diminished cooperation and limited efficiency because of the
focus on functions rather than overall process or product. Clients therefore do not get
continuity of service. It can be inward looking and inflexible, and cannot easily adapt.
It does not tolerate a dynamic or complex environment.

Figure 5 Divisional Structure

The Divisional structure might be represented by discipline-based teaching faculties

operating with a fair amount of independence supported by an educational
services division (student services, educational research, teacher education,
libraries) and a corporate services division (finance and
administrative services).

Its strengths are that it focuses attention on specific products or services, geographic
locations or client groups while placing responsibility for outcomes on the divisions
themselves. With greater autonomy, divisional managers can better plan, delegate,
adapt and coordinate divisional activities.

7
Its weaknesses are that, while offering opportunities for novice managers to be
trained, it demands many more people with general managerial experience to
sustain it. It results in duplications and competition for resources between divisions
and the centre. It also has limited capacity for rapid adaptation to new ways of
working.

Figure 6 : Matrix Structure

This Matrix structure blends functional or bureaucratic structure with temporary

project teams of specialists pulled together to undertake particular projects. It can
take on various forms, some emphasising the functional structure of organisations,
some placing greater responsibility on project management, and others blending
functional and project authority.

This structure supports creative solutions to problems, enhances risk taking, and
supports better planning and faster responses to client and market demands. It
provides organisational agility to formulate fluid teams and reassign personnel
quickly. It frees up faculty members to take part in interdisciplinary activities such as
curriculum technology and assessment. It assists adaptation to dynamic
environments.

Despite these strengths, management difficulties can be a problem, including a

tendency towards anarchy, power struggles, navel gazing anddecision strangulation.

2.4 Contextualising Keppel Corporation

Our business functions are Production, Sales, Marketing research, Finance, and
Human Resource. This gives rise to conflicts. Between departments as it has its
objectives which could be not the same.

8
Product Style of structure is the current structure that Keppel Corporation has. Due
to diversified products across the regions, as a Business Analyst I would recommend
decentralization. And a Matrix structure below the product structure to support the
organisation as the Headquarter in Singapore is unlikely to cater for the need of the
customer.
Objectives of the company cannot be implemented alone. There are other elements
like structure, system and people that keep business going. For example, Keppel
Corporation must do an internal audit about its resource, and decide on the system
and methods to get things done. In addition, the people elements must also be
considered. This means that the culture of the organisation has to be nurtured to a
strong and positive one.
In line with the mission, value and objectives, the expected tasks are done in sync.
Relative to this, it is expected of Keppel Corporation to the bearing right in the first
place.
Quoting from chapter 6 of (Bateman, 2017), the likely recommended strategy by
myself if I will be taking the position would be the Multinational Company (MNC) type
of model.

Figure 7 Global Strategy

According to (Jimmyong.gnomio.com, 2017), MNC would has the flexibility to give
Keppel Corporate the necessary decentralisation required. Hence they will helps
KCL to lesser or circumvent the conflicts between functions of the organisations.
This could be further strength to branch out into Matrix Organisation required to
support the Product Division Structure. This is to reap the flexibility to work with more
than one boss as in the nature of a Product Division Structure.

9
An organisation is drawn as below:

Figure 8 Keppel Corporation Organisational Structure

(Words: 2249)
--End of Report A--

10
Part B PESTEL and SWOT of Keppel Corporation
1.0 Background
1.1 PESTEL
PESTEL is an acronym that stands for Political, Economical, Social, Technological,
Environmental and Legal. It is used to describe an analysis that is used for
determining the opportunities and risks of global expansion. Political, Economical,
Social, Technological, Environmental and Legal issues often differ domestically and
even more so internationally. As a company looks to leverage the advantages that
the democratization of technology, information and finance, and grow beyond the
national borders that previously confined them, it is imperative that they consider a
PESTEL analysis to accompany their SWOT analysis. The PESTEL analysis
provides a strong framework used by global and multinational corporations to set the
stage to develop specific tactics to mitigate the risks involved in executing their vision
in unfamiliar environments. The additional sections of the site provide more
information about how to structure a PESTEL analysis. Some data within the various
sections offer insights into the sections of the analysis.

Figure 1 PESTEL Framework

1.2 Porter's five forces analysis
Porter's five forces analysis is a framework for industry analysis and business
strategy development formed by Michael E. porter of Harvard Business School in
1979. It draws upon Industrial Organization (IO) Economies to derive five forces that
determine the competitive intensity and therefore attractiveness of a market.
Attractiveness in this context refers to the overall industry profitability. An
"unattractive" industry is one in which the combination of these five forces acts to
drive down overall profitability. A very unattractive industry would be one
approaching "pure competition", in which available profits for all firms are driven to
normal profit.

11
 Figure 2 Porter 5 Forces Framework

2.0 The positive and negative impacts the macro environment has upon
business operations.
With increasingly intense competition, shrinking product cycles, accelerated
technological breakthroughs, and progressively greater globalization, the business
arena may best be described as being in a chronic state of flux, with continual
variation in its external environment. Given such ever changing environmental
conditions, a firms ability to change direction quickly and to reconfigure strategically
is crucial to its success in achieving sustainable competitive advantage (Hitt et al.,
1998). In other words, firms need to be adaptive to environmental change
(Mintzberg, 1994; Dreyer and Grnhaug, 2004).
In term of the positive impacts, the change in interest by US could raise Singapore
economy as the stock exchange has been rosy, since the change of USA
government , which advocates the continuously increase of USA interest rate.
This is also reinforced and reported in Today newspapers (Today, 17 Mar 2017)
heading Singapore February exports strongest in 5 years, beat forecasts.
On the negative side, the increase in interest rate by US may dampened the world
property market, this would make buying property more unattractive. Since KCL has
a high portion of business in property, this would affect their bottom line.

12
3.0 Internal and external analysis of specific organisations in order to identify
strengths and weaknesses.
Let us has a look at Keppel Land (KL) a wing of KCL and its SWOT:
Strength
Keppel Land, a division of KCL has a diverse mix of commercial and industrial
building
Healthy balance sheet
High occupancy rate on their renting business
Ability to generate surplus quickly
Weakness
Highly hedged on interest rate
1.6 billion cash in reserve

Opportunity
Real estate blooming in emerging markets
Strong foot hold in China

Threat
Singapore and China market in property have been damped due to
government cooling measures
China and Singapore may ay raise interest rate in sync with USA.

Interrelating the external and internal environment of KCL, it would appear sensible
to quickly capitalising on their strength of good balance sheet and reduce their
weakness of over kept cash reserve. As an appointed Business Analyst, I would
certainly recommend to closely relook into their over hedge system in interest rate
manipulation based on current changed environment.
Another area would be the recruiting of talent, supplemented by woman and elder
employees. KCL should lead the industry in this area to gain good reputation in
Singapore and China, since the government are encouraging it to ease the low birth
rate.
As according to the newspaper, Technology is key to solve manpower crunch.
Since KCL has the strength of huge capital, they should use technology to improve
productivity and as a weapon for competitive edge.

13
4.0 The internal strengths and weaknesses of specific businesses and explain
their interrelationship with external macro factors.

PESTLE Analysis
All organizations need to identify external factors within their environment that could
have an impact on their operations. Many of these will be things that the organization
has no control over, but the implications of which need to be understood.
A popular tool for identifying these external factors is the PESTLE Analysis, which
can be used to help you consider Political, Economic, Social, Technological, Legal,
and Environmental issues.

Figure 3 PESTEL Model

To maximize the benefit of the PESTLE Analysis it should be used on a regular basis
within an organization to enable the identification of any trends. The impact of a
certain external factor may have more severe consequences for a particular division
or department and the PESTLE technique can help clarify why change is needed
and identify potential options.

Political Here government regulations and legal factors are assessed in terms of
their ability to affect the business environment and trade markets. The main issues
addressed in this section include political stability, tax guidelines, trade regulations,
safety regulations, and employment laws.

14
Economic Through this factor, businesses examine the economic issues that are
bound to have an impact on the company. This would include factors like inflation,
interest rates, economic growth, the unemployment rate and policies, and the
business cycle followed in the country.

Social With the social factor, a business can analyze the socio-economic
environment of its market via elements like customer demographics, cultural
limitations, lifestyle attitude, and education. With these, a business can understand
how consumer needs are shaped and what brings them to the market for a
purchase.

Technological How technology can either positively or negatively impact the

introduction of a product or service into a marketplace is assessed here. These
factors include technological advancements, lifecycle of technologies, the role of the
Internet, and the spending on technology research by the government.
The below are tableted the key external environment factors.

15
4.1 Contextualising Keppel Corporation
To be up to date, I would use newspapers to explain the interrelationship of the
SWOT and PESTEL of KC. KC should avoid the use of "phantom worker" to inflate
the foreign worker entitlement of his company in relation to the company's local
workforce against foreign workers quota. This is a serious control of Singapore
Government in the face of serious shortage of worker in the off shore marine industry
KC is in. Although the temptation is high, should focus on developing talent leaders
and workers, as there is going to be a trend of expats leaving Singapore and KCs
other Asean subsidiaries (Bloomberg via Today, 21 March 2017).
While many in Asia seek close economic and strategic cooperation with the US,
Asian leaders may find that their publics are less inclined to compromise with
Washington if the Trump administration hews too closely to an America First
agenda reported by (Sheila Smith East Asia Forum, via Jimmyong.gnomio Moodle,
assessed on 23 Mar 2017) titled What Trumps America I First agenda means for
Asia.
The Political instability is evidenced by Donald Trumps anti deregulation and
redressing the short change accorded by countries like Japan and especially
Germany by paying less for USA Military protection and circumventing the free zone
area in Mexico and other similar escape tax strategies (Bloomberg via Today, 21
March 2017), America First policy forces rethink of China-EU trade ties.
Singapore is a non allowed to be on strike country, KCs management must be
aware of this, hence, the working with the Singapore Government on labour must
sought prior to making decision concerning foreign workers welfare.

16
AS KC has huge reserve and under globalised, The Keppel Land, the wing of KC
should making inroad to Vietnam, Thailand, Yangon as Singapore and China has
strict Government curls on loans and ownerships law.
The shift in Demography in Singapore should be taken seriously, as low birth rate
means KC has to use elder and woman workers. These require KC to adapt their
policy of training supervisors and managers as they are now face with different set of
competencies, such as handling elder and female workforce.
Although from the financial report there are certain attempts to leverage on
technology, more effort is encouraged by the Singapore Government for KC to take
advantage to the SMART pushed now ongoing. (Valerie Koh, Today Newpapers,
15 March 2017) reported, Singapore PM, Swee Say stressing Technology key to
solving manpower crunch.
MSN online news reported : China's trading partners alarmed by food import
controls, by USA. Under the rule, due to take effect as early as October, each
consignment of food would require a certificate from a foreign inspector confirming it
meets Chinese quality standards (MSN news, via Jimmyong.gnomio.com, assessed
on 23 Mar 2017). This health control translated to import cost by US, making China
less competitive.
The manipulation of interest rate Donald Trump has made Asia Bank forced to
increase the interest rate, making investment less attractive. As KC is heavily
invested in the property and infrastructure arms, it is serious threat, which KC has to
deal with.

(Words : 1572)

--End of Report B--

Referencing
Book
Armstrong, M. (2009) Armstrong's Handbook of Human Resource Management
Practice (11th ed) Kogan Page
Bateman, Thomas S., Snell, Scott A. and Konopaske, Robert., 2017. Management
,Dubuque: McGraw-Hill Education,
Beardwell, Ian (2007) Human Resource Management: A Contemporary Approach,
(5th edn) Prentice Hall
Hartle, F. 1995. How to re-engineer your performance management process.
Hughes, R.L., Ginnett, R.C. and Curphy, G.J. (2006) Leadership: enhancing the
lessons of experience, International - 5th edition, McGraw-Hill
17
London: Kogan Page.
Scholes and Johnson, 2008, Exploring corporate strategy, 8th edition, Financial
Times/Prentice Hall.

Journal
Dreyer B. and Grnhaug K. (2004), Uncertainty, flexibility, and sustained
competitive advantage, Journal of Business Research, 57, pp.484 494.
Hitt, M., Keats, B., and DeMarie, S. (1998), Navigating in the new competitive
landscape: Building strategic flexibility and competitive advantage in the 21st
century, Academy of Management Executive, 12(4), pp.2243.

Newspapers
(Angela Ten, 17 Mar 2017) Todays, Singapore February exports strongest in 5
years, beat forecasts.
Today, Singapore February exports strongest in 5 years, beat forecasts.
(Bloomberg via Today, 21 March 2017), America First policy forces rethink of
China-EU trade ties. Assessed through
https://jimmyong.gnomio.com/pluginfile.php/1351/mod_resource/content/1/TODAY_2
10317-Page_32-33.pdf

Web Page:
Chapter 6, Global Strategy , global strategy,[online] Available at:
http://jimmyong.gnomio.com global strategy [Accessed 17 Mar. 2017].
https://jimmyong.gnomio.com/pluginfile.php/1105/mod_resource/content/1/Manange
ment%20Global%20strategySnal%20n%20Bateman%20Chapt%206%20Internation
al%20Mgmt.pdf
Galuszka, P. (2008). Johnson & Johnson CEO: Decentralization Works. Retrieved
from http://www.cbsnews.com/news/johnson-amp-johnson-ceo-decentralization-
works/

Todayonline
http://www.todayonline.com/business/singapore-february-exports-strongest-5-years-
beat-forecasts
Keppel Corporation ,2016) Financial Report
Q2Website:https://jimmyong.gnomio.com/pluginfile.php/1337/mod_resource/content/
1/02%204Q16%20KCL%20Financial%20Statements.pdf.

18
Rahbar, Sh. (2016). Centralized vs. Decentralized Organizational Structure.
Retrieved from http://www.cfoedge.com/resources/articles/cfo-edge-centralized-vs-
decentralized-organizational-structure.pdf
(Sheila Smith East Asia Forum, via Jimmyong.gnomio Moodle, assessed on 23 Mar
2017) titled What Trumps America I First agenda means for Asia.
Vitez, O. (2016). Centralized Vs. Decentralized Organizational Structure. Retrieved
from http://smallbusiness.chron.com/centralized-vs-decentralized-organizational-
structure-2785.html
MSN News
http://www.msn.com/en-sg/news/world/chinas-trading-partners-alarmed-by-food-
import-controls/arBBypo4F?ocid=iehp via
https://jimmyong.gnomio.com/pluginfile.php/1323/mod_resource/content/1/Chinas%2
0trading%20partners%20alarmed.pdf.

19