The evolution of Sembawang Group.

• Main Authors: Chang, Chew Loay., Ng, Lee Joo., Tan, Soon Teck.
• Other Authors: Nanyang Business School
• Format: Final Year Project
• Language: English
• Published: 2013
• Subjects: DRNTU::Business
• Online Access: http://hdl.handle.net/10356/51597
• Institution: Nanyang Technological University

This study investigates the strategic evolution of Sembawang Corporation. There are five objectives to this project. The authors seek to identify the motivational forces of a conglomerate so as to better understand the process of strategic formulation and implementation. They hope to further determine the relationship of performance and the extent of diversifi cation. From this research, the authors can then determine the forces that influence strategic direction and apply it to real life situations. The detailed historical development of Sembawang Corporation (SembCorp) from its incorporation until 1995 are compiled. It provides a “history” of SembCorp’s development and traces its evolution from being a shipyard to a highly diversified organisation with five sectors of businesses. An overview of the management process in Sembawang Corporation is also recorded. The data collected are analysed using various frameworks and theories identified in the literature review. The value creation process in Sembawang Corporation was then examined as to how value was created, and the existence of parenting advantage and dominant logic were questioned. Lastly, the authors’ views of the Group’s projects, and its diversification moves and the implications of the study are included. On the whole, the authors feel that Sembawang Corporation is heading in the right direction. The recent restructuring and its diversification activities are unlikely to have an impact on the Group’s bottom-line in the short or even medium term. The benefits, if any, would only come further down the road. Investors of Sembawang Corporation will have to ask themselves if they are willing to go the long haul. In other words, value will be created in time to come.