The Issues and Challenges of Diversification Strategy: The Case of Sutera Sanjung Sdn. Bhd.
Diversification strategy is one of the means to expand business among Small Medium Enterprises (SMEs). The success of the strategy allows the business to develop not only locally, but also venture into international market. However, various issues and challenges could be associated with diversifi...
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| Main Authors: | , , , , |
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| Format: | Conference or Workshop Item |
| Language: | English |
| Published: |
2023
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| Subjects: | |
| Online Access: | https://repo.uum.edu.my/id/eprint/30607/1/8th%20ICSC%202023%20144-153.pdf https://repo.uum.edu.my/id/eprint/30607/ |
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| Institution: | Universiti Utara Malaysia |
| Language: | English |
| Summary: | Diversification strategy is one of the means to expand business among Small Medium Enterprises
(SMEs). The success of the strategy allows the business to develop not only locally, but also venture
into international market. However, various issues and challenges could be associated with
diversification strategy implementation particularly among SMEs. Therefore, this study aims to
discover the issues and challenges faced by Sutera Sanjung Sdn. Bhd. (SSSB), one of the steadilygrowing
diversified business in Northern Peninsular Malaysia. This study employed a few rounds of
one-on-one interview with the business owner as the key informant to meet the study objective. The
recorded interview sessions are then transcribed and analyzed using thematic analysis through the
Nvivo12 software. The findings revealed that issues pertaining to competition, damaging rumours and
different nature of diversified business are among the challenges faced by SSSB. From the policy
standpoint, this study sheds the light on the development of entrepreneurial training program. The
program conducted by the relevant ministries and government agencies including Ministry of
Entrepreneur and Cooperatives Development (MECD), Majlis Amanah Rakyat (MARA) and, SME
Corporation (SME Corp.) needs to be specifically designed to address the issues and challenges of
business diversification. While for practical implication, this study helps to provide vital information
among other businesses particularly SMEs on what to expect when starting their diversification
planning and strategy. |
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