Strategic Analysis towards the Formulation of Micro Sourcing Strategic Trusts

Abstract

Malaysian government, realising its responsibility to upgrade the quality of life, has identified micro sourcing industry as one of the potential industry to elevate the livelihoods of the poor especially the B40 group. The B40 in Malaysia is defined as household income level of less than RM 2,300 per month. The huge potential impacts of micro sourcing industry provide motivation for this research. In determining the best way for Malaysia to implement micro sourcing industry using the available resources, strategic analysis was conducted. Tools such as SWOT and Gap analysis were used to perform the strategic analysis. Thus, the objective of the paper is to develop a full awareness of the situation through Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis. In order to determine the factors that define its current state, gap analysis was used to list down the factors needed to reach the target state and to fill the gap between these two states. Through these analyses it helps with both strategic planning and decision-making. Workshops were held to gather information from stakeholders and to discuss on the internal Strength and Weakness and the external Opportunity and Threat of micro sourcing. The discussions reveal the gap between where we are and where we want to be and also reveal areas where it must improve to meet the micro sourcing goals. The findings from the SWOT and Gap analyses will provide perspective, will reveal connections, areas for action and also identify deficiencies. The analyses will also build on the strengths, minimize the weaknesses, seize opportunities and counteracts threats and fine tuning one process. Finally, micro sourcing strategic trusts will be formulated.