From our research we found out that Old Chang Kee’s strategic plan

From our research, we found out that Old Chang Kee’s strategic plan is to expand into the English market in England. They also aim to offer fresh and new products and improve their production efficiency to increase their profits in the long run.

Capitaland’s strategic plan is also similar, they are also seeking for new overseas markets that they can work on and being a real estate company means that that they have to constantly try to improve their new and latest product as well as try to make their new products unique.

Both companies have specific plans and aim to have 8% profit for the coming year for Capitaland and for the next 3 years for Old Chang Kee.

We also found out that Mr Han Kee Juan, the the founder and executive chairman of Old Chang Kee Ltd, has a Country Club Management Leadership style and that Mr Ng Kee Choe, the Chairman Of Capitaland has a Middle-Of-The-Road Management Leadership style.

Mr Han focuses to offer Social Needs while Mr Ng offers mainly Self-Actualisation needs to motivate their workers. Lastly, we also came up with suggestions such as giving bonuses to the employees to further motivate them.

Introduction

Old Chang Kee

Old Chang Kee produces and sells value-for-money premium finger food products. These products are produced using high-end technology with strict measures to ensure that the quality of the food is not compromised. Old Chang Kee now operates through roadside stalls and shopping malls.

U.S based Travel & Leisure Magazine had revealed that Old Chang Kee was the only local brand from Singapore that was selected as one of the top 20 fast food chains.

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Mr Han Keen Juan, the founder and executive chairman of Old Chang Kee Ltd. opened his first outlet at Mackenzie Road Coffee Shop opposite Rex Cinema. Over the years, Mr Han has successfully expanded Old Chang Kee from a small shop to the present Old Chang Kee with approximately 75 retail outlets in Singapore and 9 overseas outlets. Mr Han also received awards such as the Lifelong Learner Award and the Singapore Prestige Brand Award.

Capitaland

Capitaland is a locally developed company that has a net worth that exceeds S$93 billion as at 30 June 2018. The company comprises of shopping malls, lodging, offices, homes, integrated developments, real estate investment trusts and funds. Capitaland has expanded to to 30 countries, but they are focusing on Singapore and China as their core markets even though expansion is rapid in Vietnam and Indonesia. Capitaland has one of the largest investment management businesses in Asia and a stable of five REITs listed in Singapore and Malaysia – CapitaLand Mall Trust, CapitaLand Commercial Trust, Ascott Residence Trust, CapitaLand Retail China Trust and CapitaLand Malaysia Mall Trust.

Mr Ng Kee Choe, 73 is the Chairman Of Capitaland since 1 May 2012. Besides being the Chairman of Capitaland, he is also the President-Commissioner of PT Bank Danamon Indonesia.

He retired after 33 years of service as working in DBS Group Holdings Ltd as Vice-Chairman.

Planning

Old Chang Kee

Strategic Plans

Old Chang Kee has ventured into the Europe Continent, opening the first outlet located at Covent Garden, London’s main theatre and entertainment are in 2017. This is a joint venture with the chain and a Singaporean, Ms Sandra Leong, 35, who has settled down in London for the previous six years. She made a proposal to the chain in the middle of the last year with the suggestion of bringing the curry puffs to the UK. This would be one of the many future expansions into England.

Long Term Plans:

Old Chang Kee will wants to have more efficient manufacturing done, combination of factories and the new products new products to be released as their long term plan in the coming years.

Specific Plans:

Over the next 3 years, Old Chang Kee expects their profits to rise by 8.9%.

The current financial year has dividends of 3.0 cents, implying a forward yield of 4.5%. The management wants to implement coverage on Old Chang Kee with a discounted cash flow value of $0.98, showing an increase of 42% compared to its last done price.

Capitaland

Strategic Plans:

Moving to the future, they plan to seek development opportunities in the core markets of China and Singapore, where it already has strong development teams.

Capitaland also has a total of 36 Properties across Asian Countries such as Singapore, Vietnam, Indonesia and China, the popular one being Orchard Residences in Singapore

Long-Term Plans:

Capitaland has been working on different projects such as a 51 Storey Skyscraper, CapitaSpring, located at 88 Market Street. The expected completion date would be 3 years, in the first half of 2021. This is a step for Capitaland looking to extend into the heart of Singapore’s CBD.

Beside Singapore, Capitaland has been working with projects overseas such as the 2 residential sites awarded to them in Guangzhou, China. These sites, about 150,000 Metres square in total, is set to build 1,300 homes by 2021

Specific Plans:

One of Capitaland is the target to reach 8% in Return on Equity(ROE) from the current estimated 6%. Return on Equity refers to the profitability of the company in relation to its assets. It is a measure of how well a company uses investment to generate earnings growth. A few ways to achieve 8% ROE is to impose higher fees from investment management business and to include higher contributions from China & Vietnam Projects.

Leading

The Blake & Mouton’s Managerial Grid is a leadership theory developed by Robert R. Blake and Jane Mouton in the year 1964.

This theory is based on two behavioural dimensions:

Concern for People: This behavioural dimensions refers to leader’s considering team member’s interest, needs and area of personal development and is shown in the X-axis on the grid

Concern for Results: This behavioural dimensions refers to when the leader place an importance on concrete goals, efficiency within an organisation and high productivity and is shown in the Y- axis on the grid.

The 5 main managerial styles based on this theory is impoverished management, task management, Middle-of-the-road management, Country Club Management and Team management.

Old Chang Kee

Mr Han is one of the leaders who is leaning towards the ‘Country club management’ in the grid. At his age, he is not prioritising profits any more as he has already earned quite a sum of money and has built a solid reputation for his company.

Mr Han feels grateful for being able to do so, hence he contributes back to society when he is able. One example is that Old Chang Kee prefers to hire elderly applicants to join them.

Mr Han is a manager that prioritises ‘Concern For People’ over ‘Concern For Results’. He is a Transformational Leader who works mainly by using his Referent Power.

He feels that the elderly are immensely loyal and dependable and hence plan to create a good working environment for these workers in the long run. One of the larger changes is to upgrade the software of the cash register, which now displays pictures of food instead of long lists. In this way, employees who has poor vision or cannot read can still key in entries quickly. Store menus have also increased in size for easy reading by the staff.

Hence, these little actions by the founder made the workers so proud for working for the brand they keep the Old Chang Kee shirt on even after work. This leads to less staff turnover rate as they want to work here and the workers can bond more and have better interpersonal relations with each other and thus making the working environment more ideal for them.

Mr Han as the executive chairman and founder of Old Chang Kee, he would naturally have a figurehead managerial role as he is a well-known person in the industry and he might need to be invited by other companies to attend events and make external connection with others or by the press to conduct interviews. One example is the exclusive interview conducted by The Business Times recently in August 2018.

He also has a Leader managerial role as he cares about the welfare of the workers and thinks of ways to keep them happy and make their working life enjoyable as he once claims that they ‘don’t work for money’ but for the overall experience.

Capitaland

Mr Ng is a leader that has equal “Concern for Production” and “Concern for People”. He is a leader that is leaning towards the “Middle-of-the-road management” under the managerial grid.

Mr Ng believes that the major objective of the board is to provide clear strategic guidance to the management and ensure that there are sufficient resources, such as human resources, for long-term sustainability of Capitaland.

The board will also have at least 5 times of meetings with the management in a year and provide overall guidance and directions to them. The management and the board works together and places the leader with best capability to lead Capitaland.

Mr Ng is a visionary leader who works by his expert power. Mr Ng has lots of experience as he is not only the chairman of Capitaland, but also the director of Fullerton Financial Holding, chairman of the Tanah Merah Country Club and he is also involved in many roles in different companies presently and previously. He even had 33 years of experience being the vice-chairman of the DBS group holdings. Therefore, he has superior knowledge and experience.

Mr Ng would have a figurehead managerial role since he is the chairman of Capitaland and he will need to attend any important external events representing Capitaland. An example would be Mr Ng receiving the Best Managed Board silver award on the behalf of Capitaland, at the Singapore Corporate Awards 2017.

Mr Ng also has disseminator informational managerial role. He is the chairman of Capitaland and definitely has more exposure to the external informations. He will be able to guide his employees with these information during meetings. An example would be during the meeting with the senior management of Capitaland to review and plan their business strategies.

Motivation

Maslow’s Hierarchy Of Needs is a motivational theory created by Abraham Maslow in 1943. Needs were classified from Lower Level Needs to Higher ones by a triangle. As lower-order needs to be satisfied first. This theory works by identifying which level a person is on the hierarchy and motivating them based on what the next level is. These five needs are Psychological, Safety, Social, Esteem and Self-Actualisation.

Old Chang Kee

Mr Han motivates his employees by providing social needs under the Maslow’s Hierarchy of Needs. He shows affection and acceptance to his employees by accepting people’s mistakes and view them as an opportunity to learn and improve themselves. He is also eager to explore new approaches to their view so he can get to understand them better.

Mr Han provides staff members with easy-to-use equipment and provide the staff members with training how to use them. Since most of these staff members are elderly, these training sessions really do help in increased productivity, less accidents, and more bonding opportunities between the staff members working.

Mr Han also collects and work on the feedback from his team leaders from every Old Chang Kee outlet give to him. This makes the employees happy and keep the employment turnover rate low, hence maintaining better relations in the workforce and also improving the workforce environment.

We think that Mr Han can motivate his employees even more effectively by:

Mr Han can thank and praise employees when they do their work well personally. This can make employees feel appreciated and it will give them the motivation to work harder for the company.

Mr Han can have more frequent face-to-face communications with his employees. This will allow them to feel more valued and appreciated for their hard work.

Mr Han can give tangible rewards such as pay raises and bonuses to self-driven staffs who will always arrive to work early every day, passionate to learn new things and is always productive to get things done. This can further motivate the rest of the staff to work harder to be a self-driven employees.

Listen to what employees have to say. Everyone is eager to get the chance to speak and share their opinions with others. So if Mr Han is willing to pay careful attention to each of the employees, it will make them feel valued and important. Mr Han will be able to create trustworthy relationship that are transparent with the employees. This can motivate them to work harder and stay loyal to the company.

Capitaland

Mr Ng Kee Choe motivates its workers by providing self-actualization needs under the Maslow Hierarchy of needs.

Mr Ng provides employees with training such as the SkillsFuture for Digital Workplace training programme to get them equipped with the mindset and functional skills in preparation for the digital economy. Employees will be able to merge his retail experience with the latest technology developments.

Opportunities for the employees with international exposure such as The Ascott Global Exchange Programme are offered which allows employees to embark on short-term overseas stints to enhance their skills in a global environment. Employees get to visit their competitive malls during the programme. They can try to pick up the good things that their competitors are doing so that they can apply it in their own company.

We think that Mr Ng can motivate its employees even more effectively by :

Having social recognition to boost employees’ engagement, whereby it include both manager-to-employee recognition as well as peer-to-peer recognition. It can be arranging a hearty breakfast or afternoon snacks to thank the employees for the hard work, or have a scheduled regular 5 to 15 minutes break time for all staffs and this break can be used to have a quick gathering or do some stretches. This will allow better communication and teamwork among employees, they will also feel appreciated and motivated to do a better job.

Offer more flexible schedules for work. It helps to reduce employees’ work stress due to the overload of work and it gives them the flexibility to meet their personal obligations and life responsibilities more easily. This can rejuvenate them and allow them to enjoy and be motivated to work harder.

Offer an extraordinary work environment for the employees. Employees’ mood play an important rule when working as it may affect their energy, ability to concentrate, and overall sense of wellbeing. Hence, Mr Tan can create an office that resemble homes for them to relax and this will help to motivate them and have them looking forward to come to work each day.

Offer a clear path for advancement, for example advancing to higher level position. Employees tend to be more motivated, with tangible goals to work towards to and this helps to provide increased satisfaction of a worker’s career values.

Conclusion

Based on their plans, we can infer from this that the blueprint of Old Chang Kee’s strategic plan is to have a solid consumer base in Singapore and to slowly discover which country is a good option to expand to in the long run. Capitaland has more liquid assets as compared to Old Chang Kee and they can afford to spend money on multiple projects as once as compared to Old Chang Kee’s ‘one new stall at a time’ trend.

As a Food and Beverage company, Old Chang Kee has to consistently renew and modify it’s recipes to suit the taste buds of the consumer. However, for real estate and development companies like Capitaland, their focus will be to make sure that their new projects are better as compared to their previous products rather than improve the ones at hand. This strategy will ensure that profit is maximised on existing and future projects rather than spend money on existing projects.

Both companies are aiming for an 8% profit, however, Capitaland is planning to achieve in one year while Old Chang Kee in three years.

In terms of leadership, Mr Han’s Country Club Management in Old Chang Kee differs from Mr Ng’s Middle Of The Road Management in terms of both behavioral dimensions. Mr Han prioritises more on Concern For People which means he prioritises the welfare of his staff over the profits while Mr Ng would go for the more balanced approach and treat both behavioral dimensions equally.

The ways the both leaders motivates the employees are similar that both offers training to improve the skills of the employees. However, Mr Ng offers to train employees with advanced skills that they can carry over to another company while Mr Han focused more on improving the environment and interpersonal relations of the workplace.

It is inevitable that the style of planning, leading and motivating will differ from the companies and the leaders as one of them is an F&B company and the other is the real estate company. However different styles work for different types of companies and their progress under their current leader proves that their leaders are competent and that their leadership strategies have been successful.

Cite this page

From our research we found out that Old Chang Kee’s strategic plan. (2019, Nov 28). Retrieved from https://paperap.com/from-our-research-we-found-out-that-old-chang-kee-s-strategic-plan-best-essay/

From our research we found out that Old Chang Kee’s strategic plan
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