Focus point loge berhad article

CONCENTRATE POINT COALITION BERHAD

Introduction

This case analyzes the effect of Focus Stage Holdings Berhad financial technique on the firm’s operating actions and monetary performance.

Concentrate Point Holdings Berhad is definitely an investment holding company that engages in the operation of professional eyesight care centers in Malaysia. The company is usually involved in the trading of eyewear and attention care products; managing of franchised professional vision care centers; provision of medical eye care services; provision of food and beverages companies; trading of hearing aid alternatives and related accessories; and retail of optical and related goods.

It runs 175 professional eye attention centers under the Focus Point, Focus Stage Optical Metropolis, Opulence, eyefont, ExcelView, Solariz, and Target Point Personal brand names, every single serving a different market section.

This Malaysian home grown optic store began in 1989 as Emphasis Vision Treatment Center. In 1993, it has become a private limited company in addition to 2010, a public business. Financial StrategyWith the realizing that the fundamental success of a approach depends on an authentic internal watch of their core expertise and environmentally friendly competitive advantages, the company converted its vision and mission statements to pursue it is economic objectives.

Perspective: To become a leading brand in Asia through our concentrate approach in vision proper care Mission: To supply consumers with all the best eye-sight care and eyewear providers as well as to maintain the highest requirements in reliability, quality and profesionalism The business arrived at two major decisions, that is, to look public and also to franchise their grocer. 1

Going Public

You’re able to send decision to visit for list on August 23, 2010 is a economical strategy that raised RM16. 07 million of which almost eight. 94 mil was channeled into expansion plans and upgrading and refurbishment with the existing eyecare centers. The corporation pursued the industry penetration expansion strategy, aimed at

increasing business for existing products or

services in existing marketplaces. The focus of growth was on expansion of new stores, upgrading and refurbishment of existing stores and expansion of top quality eyewear products. FranchisingFranchising enabled the company to enhance on the economies of scale because of size, manufacturer and encounter. At the same time, this provided the company with the important advantage of incremental income with minimal capital expenditure in the setting up of new outlets. Revenue contributed by the franchising version mainly comprises of sales of eyewear and eye maintenance systems to their dispenses and royalty fees which are based on five per cent of low turnover from the respective franchisee’s outlets, and franchise charges payable simply by franchisees which amount to RM30, 000 for a period of a few years.

The franchise contracts signed between your group and their franchisees happen to be valid for any period of five years, with an option to resume for another five years together with the same franchise fees of RM30, 1000 payable over the extended five year period. To enhance the success of this strategy, a Memorandum of Collaboration was signed between company’s supervision and Permodalan Nasional Berhad to help financing for Bumiputera dispenses. The company as well collaborated with Maybank on the similar bank loan scheme intended for non-Bumiputera dispenses.

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Internationalization

In the same year as the initial open public offering, Focus Point Coalition Berhad started to pursue their overseas expansion by beginning its first franchise overseas outlet in Brunei. You can actually internationalization efforts accelerated the openings of franchises in other south-east parts of asia such as Singapore, Cambodia, Vietnam, Indonesia and Thailand. The first-mover benefit gave the business the edge, especially in highly-populated countries like Vietnam and Cambodia where client spending power was elevating in tandem with their growing economies.

On the other hand, Singapore’s economy presented an opportunity pertaining to the

firm to venture into sophisticated market to get professional eye-care services.

Effect Of Strategy On Functioning Activities

Simply by going general public, the company surely could collaborate with and persuade financial institutions and agencies to provide franchising financial loans to interested franchisees. Entry to financing and the strong existence in the land resulted in a rise in the number of retailers from the pre IPO total of 135 outlets to 136 stores in 2011. News, the group has 170 outlets in of which 85 are totally owned retailers and eighty-five are franchised outlets. The company cordial romantic relationship with neighborhood and foreign principals and the close working relationship with departmental retailers had as well allowed the group to obtain good property and maintain Focus Point’s leading position available in the market. The international franchise business is growing with Brunei exclusively operating six franchised retailers.

The money elevated from GOING PUBLIC that is used for expansion prepare and improving outlets offers helped in

efforts to foster greater customer relations.

This is vital for long term business

durability as data indicated an ever-increasing target population. With the typical age of the population increasing, it really is expected that the number of inhabitants with attention disorder may also

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increase. The global vision treatment market is anticipated to grow by 4. 4% over the amount of 2010 ” 2017.

Effect Of Technique On Financial Performance

The IPO physical exercise, financing features for franchisees and internationalization have contributed to a higher revenue and better overall monetary performance since shown:

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PBT ” Income before tax

PAT ” Profit after duty

The above financial highlights revealed that

the financial functionality of Focus Point

Holdings Berhad is usually stronger after going community and taking on aggresive advertising activities to generate increased business volumes. However , the group’s venture in the food & beverage (F&B) segment in the last quarter of 2012 has affected the group’s revenue, earnings and 5

dividends every share. The investment in the fast developing F&B segment is anticipated to enhance the group’s revenue stream and success in a long run. Company’s Overall performance Versus IndustryThe overall standard of competition among operators in the professional vision care market in Malaysia is substantial as there are many players competing in the industry. As with many selling businesses, there exists a low buffer to entrance into the operation of professional eye proper care centres.

Nevertheless , there is lack of industry peers to standard as there are simply no other competitors that are directly comparable to Concentrate Point Holdings Berhad. Lots of the competitors will be smaller retailers, independently owned and operate by the owners. The nearest rival locally is usually England Optic Group with similar progress strategy ” store growth, franchising and internationalization. Britain Optical Group operates 131 outlets, a hundred and twenty in Malaysia, 10 in China and 1 in Cambodia. With reportedly 10% market share in the local optical industry, Emphasis Point Loge Berhad happens to be the market innovator in the industry. Business among opponents are widely dispersed with each having a smaller percentage of the marketplace.

Conclusion

A financial approach analysis helps department mind review exterior and internal elements affecting a company and exactly how such components impact short-term and long term activities. You will discover never any kind of guarantees for people who do buiness success, although creating economic strategies gives any organization

way and assistance.

For Target Point Holdings Berhad, to make certain

sustainability, the group elevated the source of income to feature food and beverage, moreover to cash flow from sunglasses and eye care and franchising. Total the company is usually on the6right track, centering on innovation and product development, industry expansion specially in untapped local markets and maintaining a good public graphic.

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References

Bender, Ur., & Keep, K. (2003). Corporate economic strategy (2nd ed. ). |Burlington, MOTHER: Butterworth-Heinemann

Focus Point Annual Record 2010

Focus Level Annual Survey 2011

Focus Stage Annual Report 2012

Irene, Y. (2010). Target point goals local and overseas market expansion after listing, Kuala Lumpur: The Star. com. my

Lee, A. (2010). Focus point braces to get future issues. Kuala Lumpur: The Star. com. my personal Lee, KS. (2010). Emphasis point strategies forays into South-East Asia. Kuala Lumpur: The Star. co. my

Reports: Focus Indicate expand by way of franchising. (2003). Retrieved from Malaysian Franchise Association: http://www.mfa.org.my/?franchise-news:focus-point-to-expand-viafranchising:2C00C881V1

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