66484576994200BA4113 Marketing FundamentalsDiploma in Business Practice (Human Capital)Ms Alison Ho1 June 2018Rashidi Bin Othman XXXXXXXXShoban ChandrahasanP7319825Muhammad Nabil Bin Payayah XXXXXXXXMohanadeva K KaneshanP7319821TABle OF CONTENT1. Introduction PAGEREF _Toc514277024 h 22. Company Description22.1 Background PAGEREF _Toc514277025 h 22.2 Ownership & Size22.
3 Mission PAGEREF _Toc514277027 h 23. Market Situation Analysis23.1 Micro-environmental Analysis2 & PAGEREF _Toc514277031 h 33.2 Macro-environmental Analysis4 & 53.3 Competitor Analysis & Positioning53.4 S.W.
- Thesis Statement
- Structure and Outline
- Voice and Grammar
O.T Analysis64. Conclusion65. Reference75. Appendix71. INTRODUCTIONThis project serves to highlight Sembcorp Waste Management (SembWM), a portion of Sembcorp Pte Ltd.’s portfolio on its growth, future and visions to compete with its fellow competitors and keep up with the ever-evolving global renewable energy landscape.
2. Company Description2.1 BackgroundFormerly known as SembCorp Engineering Pte Ltd, the company was incorporated in 1973 and is based in Singapore. It has operations in Australia, China, India, and Vietnam. SembCorp Utilities Pte Ltd operates as a subsidiary of Sembcorp Industries Ltd. By 2022, SembCorp aims to double their renewables capacity to approximately 4,000 megawatts.SembCorp Utilities specialise and operates energy and water assets, providing utilities, waste management, and logistics support. In addition, they are the leading solid waste management service provider in Singapore, offering the waste collection to the municipal, industrial and commercial sectors.
In 2017, they posted a net profit of S$140 million and a turnover of S$ 5,670 billion. 2.2 Ownership ; SizeSembCorp is co-jointly share held, 49.5% by Temasek Holdings and 50.5% by the Public. The company has over 7,000 employees across its industry groups.2.
3 MissionAs a vital partner to its customers, SembWM specialised to deliver essential solutions which enable them to do their business better or improve the quality of life. In partnership with its stakeholders, they build sustainable businesses that deliver long-term growth and create value for all.3. Market Situation Analysis3.1 Micro-environmental AnalysisCompany SembCorp Waste Management (SembWM) waste is one of the business units under SembCorp Utilities.
They work closely with SembCorp Energy and SembCorp Water to deliver as a global integrated energy player. The departments in human resource, finance, purchasing and R;D encourage cultivate mindsets and values which contribute to the team and organisation’s success. Such strategic direction and goal will gain efficient cost structure and generate profits at a targeted margin.Marketing IntermediariesSembWM gets help from DBS, Citibank, CIMB, OCBC, UOB and Maybank to finance them. These banks invest as shareholders, giving them the financial strength to compete in the market. SembWM also works together with SembCorp Energy to convert waste into energy, in which becoming a reseller of electricity to mass consumers and business market.
Suppliers Sembcorp exists as one of the largest waste management company in Singapore, serving over 600,000 households and over 5,000 industrial and commercial customers. About 1,000 tonnes of commercial and industrial waste gets collected and delivered to their facility daily. Sembcorp waste oversees public waste management across various regions across Singapore such as Bedok, City, Punggol and Woodlands-Yishun sectors of Singapore.CompetitorsSembWM’s indirect competitors are 3 public waste collectors (PWC); namely Veolia ES, Colex and 800 Super Waste Management.
They were appointed by NEA through open tenders to serve premises in Singapore by geographical sectors (Figure X). SembWM’s biggest and the most direct competitor is Keppel Seghers, owned by Keppel Corporation. Having 2 waste-to-energy (WTE) plants in Tuas and Senoko, they can generate green energy from waste which maximises the value of waste streams and minimise the environmental impact (Figure 1).center20701000center3114675Figure 1: Indirect competitors & where the sectors they served. Source: NEA00Figure 1: Indirect competitors & where the sectors they served. Source: NEAcenter5864860Figure 2: The 2 WTE plants owned by Keppel Seghers in Senoko (Left) and Tuas (Right).
Source: Keppel00Figure 2: The 2 WTE plants owned by Keppel Seghers in Senoko (Left) and Tuas (Right). Source: Keppelcenter3342640003.2 Macro-environmental AnalysisPolitical5715003366135Figure 3: The type of waste handled by each class of license. Source: NEA00Figure 3: The type of waste handled by each class of license. Source: NEA666750110045500The requirements to provide waste management services is challenging due to stringent legislation. NEA is the governing body in charge of the waste collection.
Companies like SembCorp must obtain a license from NEA and adhere to their strict requirements. Grouped into 4 different classes, each one of them serve different types of waste. To operate in the long run, SembCorp must always comply with the regulation set by NEA.
Economiccenter108140500center3959860Figure 4: Waste generated and recycling statistics from 2013 – 2017. Source: NEA00Figure 4: Waste generated and recycling statistics from 2013 – 2017. Source: NEAPopulation in Singapore keeps increasing, more establishments are being built, resulting in more waste being generated. As purchasing power and consumption increases, consumers will produce more waste. This provides the opportunity for SembCorp waste to grow and expand as more staff is needed, leading to creating jobs opportunities, help reduce the unemployment rate, improve GDP and aid the growth of Singapore.
TechnologicalWith advanced technology, Sembcorp has the facilities to produce new processes to handle waste efficiently. With an integrated waste management, SembCorp operates a woodchip-fuelled biomass energy plant that supplies sustainably-produced processed steam to customers on Jurong Island in Singapore. Sembcorp is the first in building large-scale steam boilers fuelled exclusively by industrial and commercial waste. These energy-from-waste plants use waste collected and processed by SembCorp waste.
A deal with Exxon-Mobil to buy a new plant is in place to boost up efficiency in waste and renewable energy management.3.3 Competitor Analysis & PositioningSembcorp has many direct and indirect competitors as seen above. With Singapore’s mixed economy, new and foreign companies would try to infiltrate and introduce their services at a cheaper rate in this rising sun market.
As of today, their biggest competitor is Keppel Corporation. Keppel Corporation is another multi-billion-dollar conglomerate company that is another key player in this industry, linking ties with PSA internally and having major projects in countries such as America and Brazil. Keppel Corporation has laid its foundation as the “Master of the Seas” in the Off-shore and Marine industry. Even with the fluctuating pricing of steel and other relatable metal, Keppel Corporation was able to fend off such adverse situation and generate a profit of S$1.
8 billion in 2017. Keppel Seghers Tuas Waste-To-Energy Plant, which directs attention to the renewable energy market, is part of Keppel Corporation’s portfolio only manage to generate S$130 million in profit. -6242055456555002555240545655500center3799205Figure 5: The strategic pillars of Sembcorp.
Source: Sembcorp00Figure 5: The strategic pillars of Sembcorp. Source: SembcorpSembWM generated a profit of S$150 million during the year of 2017. Sighting room for growth in the market, Sembcorp started focusing their attention on their SembcorpWM portfolio. Having knowledge in deep integration expertise, they started perfecting their strategies and focused on having a competitive edge among fellow competitors. Below are the 3 strategic pillars, Sembcorp has ensued for SembcorpWM, which would increase production in energy and customer satisfaction tremendously.
11715752914650Being one of the business unit portfolios in SembCorp and Asia, there is a huge demand in the utility business.Works best integrated with other business units like energy and water treatment. Singapore is building in the future a plant combination of water treatment, waste management and energy.
Integrated business has high potential growth in Asia such as India, China where the population is one of the highest and where waste management is vital to the cities growth.00Being one of the business unit portfolios in SembCorp and Asia, there is a huge demand in the utility business.Works best integrated with other business units like energy and water treatment.
Singapore is building in the future a plant combination of water treatment, waste management and energy. Integrated business has high potential growth in Asia such as India, China where the population is one of the highest and where waste management is vital to the cities growth.14001751618615The financial position might be affected if the management decides to focus on other business units due to change in company strategy.Unable to use its capital and expand immediately due to its resources tagged to Sembcorp which is a public limited company, necessary management approval is needed which is a time-consuming process.00The financial position might be affected if the management decides to focus on other business units due to change in company strategy.Unable to use its capital and expand immediately due to its resources tagged to Sembcorp which is a public limited company, necessary management approval is needed which is a time-consuming process.left1657350WEAKNESSES00WEAKNESSES198755330327000122110529114750002910840OPPORTUNITIES00OPPORTUNITIES13049254695825Competitors from companies like Keppel Seghers and companies from China which have access to cheaper resources giving lower prices for tender are taking up the market share.
Higher operation cost due to currency strength and rising oil and steel prices.00Competitors from companies like Keppel Seghers and companies from China which have access to cheaper resources giving lower prices for tender are taking up the market share.Higher operation cost due to currency strength and rising oil and steel prices.
122872545713650004572000THREATS00THREATS33401049149000012287251657350001241417956553711242006145001173480325916Backed by one of the biggest financial holding companies in Singapore, Temasek Holdings.Have diversified and highly dependable management with years of experience in the industry.Work collectively integrating with other business units in Sembcorp Utility maximising profit and minimising wastage.High brand value and one of the best in the industry.00Backed by one of the biggest financial holding companies in Singapore, Temasek Holdings.Have diversified and highly dependable management with years of experience in the industry.Work collectively integrating with other business units in Sembcorp Utility maximising profit and minimising wastage.
High brand value and one of the best in the industry.left304800STRENGTHS00STRENGTHS1219200304800003.4 S.W.O.
T Analysis4. ConclusionIn conclusion, there is a need for renewable solutions to preserve our natural resources & environment. With the growing emphasis on decarbonisation to slow down the effects of global warming, Sembcorp shifts its focus to SembcorpWM with a serious intent. They will work together with their other renewable utilities from Sembcorp Energy and Sembcorp Water to show their capability to adapt, be flexible and analyse foresight both internally and globally. To be the best in class for government practices and leaders in the industry sectors, they aim to be bold, exciting and inspiring rather than being robust and stagnant in one specific market.
As 35% of global energy in the world will be produced by renewables by 2040, they will be on a constant look-out for greener innovations and solutions to have the competitive advantage over their competitors and maintain high standards of behaviour and integrity. They believe that by focusing on reshaping the utility business into a leading global integrated energy player, a gradual growing business can be profited from the global transition. Concentration on renewable energy market can obtain systematic capital recycling and will see a rise in their growth platform.5.
ReferencesSembcorp, 2017, Sembcorp 2017 Annual Report online. Available from: http://www.sembcorp.com/en/media/514213/2017-annual-report.
pdf Accessed 14 May 2018Sembcorp, 2017, About 2017 online. Available from: http://www.sembcorp.
com/en/about-sembcorp Accessed 31 May 2018NEA, 2017, Waste Management online. Available from: http://www.nea.gov.sg/energy-waste/waste-management#public Accessed 30 May 2018Keppel Seghers, 2017. Waste-to-Energy Plants online. Available from: http://www.
keppelseghers.com/en/content.aspx?sid=3028 Accessed 30 May 2018NEA, 2017, Past year’s waste statistics and recycling rate. online.
Available from: http://www.nea.gov.sg/docs/default-source/energy-waste/waste-management/wastestats-(2003-2016).pdf Accessed 30 May 2018Sembcorp, 28 Oct 2013.
Press release: Sembcorp’s expansion to its woodchip boiler renewable energy plant in Singapore comes onstream online. Available from: http://www.sembcorp.com/en/media/177185/sembcorp-s-expansion-to-its-woodchip-boiler-renewable-energy-plant-in-singapore-comes-onstream.
pdf Accessed 30 May 20186. APPENDIXDeclaration of Individual Contributions to Group Work Form AStudents’ Declaration Form Form B