Focus Point Holdings Berhad Essay

FOCUS POINT HOLDINGS BERHAD Introduction This case analyzes the effect of Focus Point Holdings Berhad financial strategy on the firm’s operating activities and financial performance. Focus Point Holdings Berhad is an investment holding company that engages in the operation of professional eye care centers in Malaysia. The company is also involved in the trading of eyewear and eye care products; management of franchised professional eye care centers; provision of medical eye care services; provision of food and beverages services; trading of hearing aid solutions and related accessories; and retail of optical and related products. It operates 175 professional eye care centers under the Focus Point, Focus Point Optical City, Opulence, eyefont, ExcelView, Solariz, and Focus Point Signature brand names, each serving a different market segment. This Malaysian home grown optical store was established in 1989 as Focus Vision Care Center. In 1993, it became a private limited company and in 2010, a public entity. Financial Strategy  With the understanding that the fundamental success of a strategy depends on a realistic internal view of its core competencies and sustainable competitive advantages, the company translated its vision and mission statements to pursue its economic objectives. Vision: To become a leading brand in Asia through our focus approach in vision care Mission: To provide consumers with the best vision care and eyewear services as well as to uphold the highest standards in reliability, quality and profesionalism The company arrived at two major decisions, that is, to go public and to franchise the store. 1 Going Public The company’s decision to go for listing on August 23, 2010 is a financial strategy that raised RM16.07 million of which 8.94 million was channeled into expansion plans and upgrading and refurbishment of the existing eyecare centers. The company pursued the market penetration growth strategy, aimed at increasing market share for existing products or services in existing markets. The focus of growth was on expansion of new outlets, upgrading and refurbishment of existing outlets and expansion of branded eyewear products. Franchising  Franchising enabled the company to improve on its economies of scale due to its size, brand name and experience. At the same time, it provided the company with the key advantage of incremental income with minimal capital expenditure in the setting up of new outlets. Revenue contributed by the franchising model mainly comprises of sales of eyewear and eye care products to their franchises and royalty fees which are based on 5% of gross turnover of the respective franchisee’s outlets, and franchise fees payable by franchisees which amount to RM30,000 for a period of 5 years. The franchise agreements signed between the group and their franchisees are valid for a period of 5 years, with an option to renew for another five years with the same franchise fees of RM30,000 payable over the extended 5 year period. To enhance the success of this strategy, a Memorandum of Collaboration was signed between the company’s management and Permodalan Nasional Berhad to facilitate financing for Bumiputera franchisees. The company also collaborated with Maybank on a similar loan scheme for non-Bumiputera franchisees. 2 Internationalization In the same year as its initial public offering, Focus Point Holdings Berhad began to pursue its overseas expansion by opening its first franchise overseas outlet in Brunei. The company’s internationalization effort accelerated the openings of franchises in other south-east asian countries such as Singapore, Cambodia, Vietnam, Indonesia and Thailand. The first-mover advantage gave the company the edge, especially in highly-populated countries like Vietnam and Cambodia where consumer spending power was increasing in tandem with their growing economies. On the other hand, Singapore’s economy provided an opportunity for the company to venture into high-end market for professional eye-care services. Effect Of Strategy On Operating Activities By going public, the company was able to collaborate with and convince financial institutions and agencies to provide franchising loans to interested franchisees. Access to financing and the strong presence in the nation resulted in an increase in the number of outlets from the pre IPO total of 130 outlets to 136 outlets in 2011. In 2012, the group has 170 outlets in of which 85 are wholly owned outlets and 85 are franchised outlets. The company cordial relationship with local and international principals and the close working relationship with departmental stores had also allowed the group to secure good premises and maintain Focus Point’s leading position in the market. The overseas franchise business is growing with Brunei alone operating 6 franchised outlets. The money raised from IPO that is used for expansion plan and upgrading outlets has helped in efforts to foster greater customer relations. This is vital for long term business sustainability as data indicated an increasing target population. With the median age of the population increasing, it is expected that the number of population with eye disorder will also 3 increase. The global vision care market is expected to grow by 4.4% over the period of 2010 – 2017. Effect Of Strategy On Financial Performance The IPO exercise, financing facilities for franchisees and internationalization have contributed to a higher revenue and better overall financial performance as shown: 4 PBT – Profit before tax PAT – Profit after tax The above financial highlights showed that the financial performance of Focus Point Holdings Berhad is stronger after going public and taking on aggresive marketing activities to generate increased business volumes. However, the group’s venture into the food & beverage (F&B) segment in the last quarter of 2012 has affected the group’s profit, earnings and 5 dividends per share. The investment in the fast growing F&B segment is expected to enhance the group’s revenue stream and profitability in a longer term. Company’s Performance Versus Industry  The overall level of competition among operators in the professional eye care industry in Malaysia is high as there are many players competing in the industry. As in many retail businesses, there is a low barrier to entry into the operation of professional eye care centres. However, there is lack of industry peers to benchmark as there are no other competitors that are directly comparable to Focus Point Holdings Berhad. Many of the competitors are smaller outlets, independently owned and run by the owners. The nearest competitor locally is England Optical Group with similar growth strategy – store expansion, franchising and internationalization. England Optical Group operates 131 outlets, 120 in Malaysia, 10 in China and 1 in Cambodia. With reportedly 10% market share of the local optical industry, Focus Point Holdings Berhad is currently the market leader in the industry. Market share among competitors are widely dispersed with each holding a smaller percentage of the market. Conclusion A financial strategy analysis helps department heads review external and internal elements affecting a company and how such elements impact short-term and long-term activities. There are never any guarantees for business success, but creating financial strategies gives any business direction and guidance. For Focus Point Holdings Berhad, to ensure sustainability, the group increased the source of income to include food and beverage, in addition to income from eyewear and eye care and franchising. Overall the company is on the  6  right track, focusing on innovation and product development, market expansion especially in untapped regional markets and maintaining a good public image. 7 References Bender, R. , & Ward, K. (2003). Corporate financial strategy (2nd ed.). |Burlington, MA: Butterworth-Heinemann Focus Point Annual Report 2010 Focus Point Annual Report 2011 Focus Point Annual Report 2012 Irene, Y. (2010). Focus point targets local and overseas market expansion after listing, Kuala Lumpur: The Star.com.my Lee, A. (2010). Focus point braces for future challenges. Kuala Lumpur: The Star.com.my Lee, KS. (2010). Focus point plans forays into South-East Asia. Kuala Lumpur: The Star.co.my News: Focus Point to expand via franchising. (2003). Retrieved from Malaysian Franchise Association: http://www.mfa.org.my/?franchise-news:focus-point-to-expand-viafranchising:2C00C881V1

World of Jugs

In North Korea citizens protested against the country authoritarian regime because over the weekend the regime seized most of the country citizens' money via a new currency issue. This caused much violence In North Korea. The Wall Street Journal reported that that the regimes money grab could be the single most Important event In defining North Korea. This event Is more defining and more Important than North Koreans whole grabbing nuclear weapons program thatNorth Korea uses for International Influence. This Issue not only raised protests In multiple Korean cities but also caused reason for the North Korean government to raise patrols on Its border with China. An Investment analyst name Mr.. Cochran said, â€Å"The biggest risk for the North's government is if, after taking people's money, it can't deliver goods and services the way the unofficial market could. † The regime would be most damaged if its people learned it could not control the real price of goods.This whole new currency issue struck many acts of violence including the death of two North Korean men by the hands of police officers. The two men attempted to get the government's limits by dividing their money among a large group of people and urging them to exchange the money for them. Another incident occurred when multiple women working in the goods and produce markets of some towns openly cursed the government knowing they would be arrested for such actions. This issue is viewed as a defining moment for North Korea.

Importance of Early Childhood Education Essay

With the economy currently in such a terrible position now it is’s no wonder why that people everywhere are being laid off, and companies around both the country and the world are jobs are laying off and choosing to keep staff to a minimum. Unfortunately, the positions that are kept are held by those who have the educational background that has essentially securedd their position from the beginning. There once was a time where an individual could apply for a job and their lack of educational experience was not held against them, but. N now, it seems as if there are extremely few reputable jobs are ooffered where only a high school diploma and some college is sufficient. But However, the economy is not who shouldto be blamed. The question instead that we should be asking that should be asked is, â€Å"where does it start? † Although it is understood that education is needed to surpass stay ahead throughout our lifeves, the importance of early education is frequently overlooked. Childhood education, as in Pre-Kindergarten thru fifth grade, is not about learning the simple or basic parts of education, but instead rather itsis about introducing young children’s minds to new and more complex things that will prepare them for a successful future. Some may choose to believe that pushing a child to learn a multitude of things at a young age would be considered cruel. Some may also believe that spending too much time learning would take away a child’s â€Å"childhood,† and that children should be allowed to stay children for as long as possible. , and should be allowed to play as much as possible. On theWhile the importance of imaginative play is alsovery important,contrary, if you were to analyzeing the circumstances it makes it would be clear as to why so many children have chosen a path of uncertainty in education. For example, take a five year old child who is being introduced to school for the first time. He or she would learn the basics; counting, coloring, reciting the ABC’s. Now take a child who has been introduced to a pre school program (normally around the age of four) as similar to that ofin First Step or Head Start. By the time that child will have entered into Kindergarten he/ or she will have already been introduced to a level of learning that is above any child that has not take advantage advantage of early learning programs. Thise will enable them to excel above their classmates. Children’s minds are truly like sponges; when a child is still young their mind’s this should be the time when their minds sshould be â€Å"crammed† with an abundance of knowledge. Sean Brotherson, a family science specialist, gives the example of a child’s brain being like a house that has just been built. He says, the walls are up and the doors are hung. You bring supplies to the new house and set them on the floor, but they will not work until everything is wired and hooked up. He goes on to explains, â€Å"wWhileexplain, â€Å"while learning later is possible, it usually is slower and more difficult. Some improvement in most skills is possible throughout life. However, providing children with the best opportunity for learning and growth during the periods when their minds are most ready to absorb new information is important†. From the time a child is born he/she is learning. A disinterest in learning at an early age is something that may follow him or her throughoutu their school age life, and is something that can haunt them for their entire lives and may hinder their ability to succeed in the real world. If a child shows no interest in adding and subtracting from the very beginning, it’s is often likely that child will continue thru school disliking Mmath throughout school. . and that This is something that can hold a child back from their potential. It also started at a young age. Children need to believe that learning is fun and, at the right age, is something that can help them progress farther. in life. In most Pre-Kindergarten classes in the United States, children are being taught to button their clothes, tie their shoes, or count to ten, and introduced to letters and shapes for the first time. These are all good tools to learn, just not in school. If you were to look at schools in other countries, they are far beyond what the U. S. is teaching our Preschoolers. Elaine Wu, with The Kapi’o Newspress, did an article on the failing education in the U. S. She found that according to a study done by UNICEF, the U. S. was failing when it came to international education rankings. Studies showed that other nations in the â€Å"developed† world had a more effective education systemsmore effective education systems. How wrong could it be to give our children a little more to think about, or giving them a problem that may take a little longer to solve?. Being that the children that attended my hHigh sSchool were approximately 75% mMilitary â€Å"brats,† it wasn’t not rare to have a new kid transfer in. There were kids from all places over the world but the ones that stood out were the ones from different countries. I took special interest in where they came from, but what interested me more was the fact that they were being placed into mostly advanceds classes. So with that curiosity I would start a conversation, usually beginning with â€Å"where are you from†? aAnd usually often times they were from another country or from somewhere where education was an important factor in their community. I am now 26 years old and am finally deciding to finish school. Things like what I just described makes me wonder about the course my life has taken. ifIf I had beenwere pushed into the books and encouraged to learn when I was younger would my outcome in school be different?. Here is another example. I look at my I have a fourteen year old nephew who is now in 9th grade. He is a straight A student and plays basketball (coincidently at my same high school). His grades are monitored by his parents but the transition wasn’t was not always easy. He came from New Orleans, Louisiana, where he lived with his mother. New , whichOrleans has one of the worst school systems in America so his early education was a struggle. When he moved to Hampton, trying to get him to open a book and study was next to impossible but. Wwith a lot of perseverance he now knows how important school is and where it can take you. But imagine if he had beenwas excited to learn from the beginning. If he had been given the opportunity, the transition may have been easier. I am now 26 years old and am finally deciding to finish school. Things like what I just described makes me wonder about the course my life has taken. If I had been pushed into the books and encouraged to learn when I was younger, would my outcome in school be different? I don’t expect society’s children to be building rocket ships at the age of eight. But putting more thought in to teaching children things that broaden their minds wouldn’t be such a bad thing. WWork Cited Brotherson, Sean. â€Å"Growth of the Mind†. Online posting. August 2001. www. nbsu. com Wu, Elaine. â€Å"Failing America†. Kapi’o Newspress. 25 April 2001 .

Should GCSE formate be changed over the next few years Essay

Should GCSE formate be changed over the next few years - Essay Example Recently, the education standards in the ‘General Certificate of Secondary Education’ have come under serious debate from educationists and people from the political circles, widely giving rise to the notion that the GCSE examination should altogether be abolished and replaced by another like the E-Bac. GCSE has recently been under heavy fire for leaving teenagers underprepared for University Education. The exam has been failing to train teenagers for the degree level of education (Shepherd, 2012). The gcse has been lagging behind in training students for higher education, especially in subjects like mathematics, geography, chemistry, biology, English and English Literature. GCSE has been found more focused on the results that the exams generate and not a broader prospect of education (Baker, 2012). The amount of course work has also been considerably reduced over the past decade. It has been reviewed by ofqual (regulator of qualification), that GCSE has been becoming in creasingly easier over the past decade, which is suggestive of falling standards of Education (Shepherd, 2012). ... tudents coming to out of the GCSE did not possess necessary skills regarding critical thinking and writing, which were necessarily required for the degree courses (Shepherd, 2012). The poll also revealed that the lecturers teaching the degree level subjects of English, business studies, geography and psychology were unimpressed by the exam standard and wanted more open-ended questions and an independent study orientation (shepherd, 2012). MCQ’s restrict the student’s ability to learn and remember complex forms of data and information, as it focuses on testing the students for parts of information on topics. Many believe that with the passing years the MCQ content of the exams has been greatly increasing while the descriptive essay like questions in the exams have reduced considerably, which are the real indicators of the amount and level of learning. In the 2012 review by ofqual, it was put forth that as compared to 2001, in 2010 human geography exam had fewer questions that tested the scientific knowledge of the students; 2008 biology exam also had an increased number of short answers and MCQ’s as compared to the exam in 2003; the 2010 geography exam was testing the pupils on fewer topics as compared to the exam that was put forth in the year 2001; and for the subject of Chemistry 2008 exam also showed more GCSE level questions as compared to the year 2003 (Shepherd, 2012). The Education Secretary, Micheal Gove says that the system of GCSE was â€Å"for a different age and a different world† (BBC, 2012). Mr. Gove believes the GCSE system to be outdated and that new exam system like E-Bac could help raise the bar again. The education secretary believes that changes in education system are necessary so that there can be â€Å"truly rigorous exams, competitive with the

Read and answer question Essay Example | Topics and Well Written Essays - 250 words - 4

Read and answer question - Essay Example The evidence is from the text where employees are received from high school and are trained. Due to the performance, others get promotions. The organization has succeeded mainly due to its structure. Each section of the organization has to work to the optimum to maximize the production. There is a well-set communication system, where employees are able to air their grievances and get the appropriate feedback. The piece rate system can also contribute to more production. Here, the workers are paid based on their input. Therefore, they work harder in order to get more money, and in the process, the company enjoys increased productivity. 3. What is the problem of transporting of Lincoln’s control system to other cultures? What suggestion could you make to Lincoln’s managers to increase the future international manufacturing plants more successful? There is a problem of transporting Lincoln’s idea to other national cultures, as the people are not used to the piece rate system. Most of the companies pay their employees according to the number of days that they have worked. Others find it difficult to give bonuses because they view it as a way in which the company makes losses. The idea of borrowing money to pay their workers is not a good idea. This is because as you borrow in the end, there is a need to pay back the money. Therefore, what they should employ is the piece rate system in the US, as the workers will struggle to work harder in to get more salary, enabling the organization to grow further hence reducing loss

Communication Method Preferred By Workers Statistics Project

Communication Method Preferred By Workers - Statistics Project Example The results saw more company employees suggest to side with formal communication. Basing on the sample used, the results were as follows. Eighteen of the employees suggested that the best communication method for them would be the formal communication method, only eight members believed that informal methods like grapevine could aid in communication in the company while only four employees remained neutral with no particular side to support. According to the graph, the results remain in support of the employee communication as a means of people to create a force that works together and more bound. According to the graph, many of the employees rather supported the use of formal means of communication rating it than using the informal means. The neutral part remained accounted for but only four voted believing that they had no particular side of communication. These results indicated that the use of formal communication means could help hasten up the operations of the company despite the different disadvantages of the two. The informal means include the use of grape vine, which may also cause difficulties in interactions. The informal means provides the unofficial way of propelling information (DuBrin,

The Impact of Ideas in Pearl Harbor and the Coming of Pacific War by Essay

The Impact of Ideas in Pearl Harbor and the Coming of Pacific War by Akira Iriye - Essay Example The interment can also be seen as obvious act of racism, perhaps the most thorough and widely accepted acts against on nationality in Unites States history and was explained as a necessity to ensure the safety of the American people but it was caused more by racial discrimination than by some other factor. Since even before the war, the Japanese community encounters social and economic racism (Shaffer, 2002). They would even ask permission before making or going to places in order for them to have assurance that they will be accepted in the society. Students were not included from the social circles in schools. The serious problem faced in that time is the Anti-Asian, where Americans viewed Asian people down. After the attack on Pearl Harbor by the Japanese the common Americans became very approachable to anti-Japanese propaganda and long-time racists began their smears with transformed force. The Japanese and Japanese-Americans were referred to as "Japs" and press distributed report s that the bombing had been aided by Japanese Americans working on sugarcane fields and on fishing boats in Hawaii. The Government officials joined on the action and calling for their immediate interment and thus, claiming that Japanese Americans had penetrated strategic positions in California. Evidences were brought to the attention of the President and other officials stating that Japanese Americans were extraordinarily loyal to the United States and no evidences could presented to the contrary (Uchida, 1982). Moreover, they were still motivated to detain the Japanese. It will appear obviously to begin the internment in Hawaii where Japanese occupied up a full third of the residents and had been blamed of the conspiracy in the assault on Pearl Harbor.However, for unidentified reasons, the government officials overlooked Hawaii and focused their attention on the West Coast, invalidating their say that they were confining the Japanese Americans out of the military needs and neither . They also confined neither Germans nor Italians, though they had much greater numbers so therefore they received a huge potential threat to the nation. In these examples given the author is effective in depicting of the influence of racial discrimination. She put stressed the wrong act of the Americans against her races. According to Robert Shaffer (2000), in 1943, a Baptist minister and former missionary to Japan forecasted about the cure of Japanese Americans during World War II that future historians will record this migration, this violation of citizenship rights, as one of the blackest mark on American history as the time that democracy came the nearest of being ruined. The United States government officials have apologized for its wartime actions that, as one presidential commission on second thoughts conclude to American society and resident aliens of Japanese descendants. Furthermore, complicated political understanding of the global implications of the racialist internmen t policy informed the bonds formed of friendship, religious fellowship and acquaintances at school (Iriye, 1999). The critics of removal and internment highlighted contradictions in allies' ideological crusade against the Axis, comparing American racist actions