1. In Intr trod oduc ucti tion on Malayan Banking Berhad (Maybank) founded by Khoo Teck Puat, since 2 august 2013, ato! "ri #bdul $arid #lias ha%e been the chief e&ecuti%e officer (') and *resident of Maybank 'or*oration (see a**endices 1)+ n Malaysia, Maybank is the leading financial ser%ices grou* -hile in "outh ast #sia it hold a one of the solid and largest regional banking grou*+ n 31 May 1./0, Maybank -as fored and incor*orated -ith fe- in%estor in Malaysia and it begin its coencing o*erations on 12 "e*teber 1./0, on the sae year Maybank launch their branch into Brunei and "inga*ore+ $ollo-ing branch on 12 $ebruary in ong Kong, 12 "e*t "e*te ebe berr in ond ondon on and and Mayba Maybank nk list listss on Malay Malaysia sian n "tock "tock &ch &chan ange ge (May (Mayban bank, k, M451166) M451166) at Kuala u*ur on 17 $ebruary+ $ebruary+ Maybank en%ision to be a regional regional financial ser%ices leader and huani8e financial ser%ices across #sia+ Maybanker *ro%en their %ision and ission through their obligation to-ards society -ith access to financial ser%ices at fair ters and *ricing+ 9ot only ha%e that, Maybanker -ill guiding custoer based on their needs and *resence at the heart of the counity all the tie+ (Maybank, 2012)
#s Maybank grou* e&*and its arket tie to tie and in%ol%e in %arious arket, it *ro%ide se%eral *roduct and ser%ices to client -hich fro banking to financial ser%ices include coe coercia rciall bankin banking, g, insuran insurances ces,, in%est in%estent ent bankin banking, g, intern internet et bankin banking, g, Mayban Maybank k asset asset anageent(:Maybank #M;), hire *urchase and so on+ #ccording to $orbes
s 201= To* To* 1000 ?orld ?orld Banks ranking as at @uly 201= *resented that Maybank is ranked 103 rd+
Mayban Maybank k ha%e ha%e o ore re than =7,000 =7,000 e*loy e*loyees ees,, 20 countr countries ies,, 10 #"#9 #"#9 countr countries ies,, 2,200 2,200 offices, 22 illion client base, AM77 billion arket ca*italisation, total of AM=.6 Billion assets and for $2012 9et Profit of AM6+7= billion+ #nd then Maybank eaduarter -hich located at Malaysia ca*ital city, Kuala u*ur+ There are nuerous strong co*etitor in banking industry that Maybank needed to o%ercoe -hich is 'MB Bhd, Public Bank Berhad Berhad,, AB Bank Bhd, Bhd, ong ong eong eong Bank Bank Bhd, Bhd, "B' "B' Bank Bank Malays Malaysia ia Bhd, Bhd, #MMB #MMB oldings Bhd and others+
The obCecti%e of the re*ort is to outline the se%eral en%ironental factors that affecting Malayan Banking Berhad (Maybank) and the effect of en%ironent sha*e their strategy and identify ho- Malayan Banking Berhad (Maybank) react and succeed in the en%ironent that constantly change+
2. PESTLE Macro-Environment MacroDen%ironent soetie called as e&ternal en%ironent, defined as P"T E it classify as F*olitical, econoic, social, etc+ n%ironent -hich affect the s*ecific industry o*eration and also business> ('abridge ictionaries nline, 2012)+ P"T analysis -ill e&aine Malayan Banking Berhad (Maybank) -hich include *olitical, econoic, social, technological, legal and en%ironental forces+
2+1 Political n%ironent Political decisions -ill i*leent the business institutions and also the business strategy+ (ailton G ?ebster, 2012)+ Malayan Banking Berhad (Maybank) o-ned b y the go%ernent *olicy -hich is <' Transforation Progra on 1./., it hold by Kha8anah that ser%es as go%ernent in%estent agency that consist of 17 biggest and leading strategicall y in Malaysia -hich include of Maybank, 'MB bank, Tenaga 9asional and so forth+ Malayan Banking Berhad (Maybank) ha%e into industrialisation gro-ing their %alue ra*idly fro 1./. on-ards+ Malaysia>s go%ernentDlinked co*anies (<'s) -ill differ accordingly to-ards it>s arket conditions and also the co*any *erforance+ $or Maybank are gro-ing to be national co*anies but others -ill changing their organi8ation structure such as Malaysia #irlines -hich struggling by %arious e%ent like M370, M17 tragedies+ #B Prie Minister ha%e launch the go%ernent transforation *rograe (
2+2 conoic n%ironent #s global oil *rice de*reciated, it affect the stock arket and the Malaysia currency+ #s Malayan Banking Berhad (Maybank) in%estent ha%e strong tied into the <20 su**ort of the conoic Transforation Prograe (TP) -ith financial related to oil and gas industry+ t ha%e %arious i*act to-ard Malaysia <P -hich deficit D3J in budget 2016+ 2016 budget e&*ected crude oil *rice -ill be at a%erage of *lusIinus around "L100D "L106 *er bottles+ n id of year 201=, crude oil *rice decrease =0J and this situation ha%e aCor i*act to-ards Malayan Banking Berhad (Maybank) in%estent that related to
oil industry+ #nd for federal go%ernent>s *roCected on 201= there is 30J of total re%enue shortfall+
2+3 "ocial n%ironent n 2010 Malayan Banking Berhad (Maybank) decided to set u* a foundation -hich are dedicated to benefit Malaysia counities by gi%ing %arious *ersonalised ser%ices+ Maybank strongly understand that social and environment responsibility is vital need for the corporation to balance corporation financial goals. According to Plummer (2012) corporate social responsibility is not ust an activities !hich to gain social attention but it is the return of the responsibility in charities and its reasons for sustainable business. Malayan Banking Berhad (Maybank) foundation have pledge to impact the community !hich included "M#million in scholarships$ "M%.2 million in education$ "M0.2 million in conversation$ "M1.& million in healthcare and others contribution for charity e'penses "M1. million. otal of pledge to!ards charity have "M1%.* million in statement of income and e'penditure for 201%. To thri%e for sustainable banking leader in Malaysia, Malayan Banking Berhad (Maybank) create a foundations that not only benefit to local Malaysia community but also to!ard region !ide such as those developing countries people that are less+fortuned. Maybank foundation are one of the grounds to build a culture !hich generates an opportunities and goals accomplishment that create an economic value. ,n order for Maybank to gain the sustainability in competitive advantages in banking industry$ Accoridng to -atuk Abdul arid Alias !ho is President and / of the Maybank group mention that Maybank humanising mission !asnt imposed form the superior authority and it is from the sincere heart of our society. (3ustainability$ 201%)
2+= Technology n%ironent Business o*erations affected by the changes of the technology (Business ictionary, 2012)+ Technology act as ain role in banking industry, it affect the business odule and also its culture, as *re%iously in traditional banking -hich needed the blank and -hite docuent to *roceed into the transaction, using check as a tool or other banking and financial *ur*oses+ Modern society today, eDbanking ha%e been a co*etiti%e ad%antages aong the co*etitor as it shorten the tie of transaction, in%estent inforation, online registration and so on+ Maybank2u ake Maybank as o*eration e&cellent banking co*anies as in Malaysia, ---+aybank2u is one of the ost %isit banking industry -ebsite aong other co*etitor+
2+6 n%ironental $actor $or en%ironental factor, Malaysia are one of the least disaster, least *ollution and it is the country that only ha%e one season at all tie+ o-e%er Malaysia are one of the urban en%ironent country -hich *rotected by neighbouring country fro tsunai -hich allo-s Malayan Banking Berhad (Maybank) ay benefit fro this ad%antages and also lo-er their concerns on *roble -hich coe fro natural disaster+ This is one of the factor that attract foreign direct in%estent ($) to in%est in this u*right en%ironent country+
2+/ egal n%ironent #t Malaysia, 9ational Bank of Malaysia (Bank 9egara) are one of the bank regulate Malaysia>s bank, financial co*anies, Bank syste and also onetary *olicy+ #ccording to 9ational Bank of Malaysia #dinistered egislation 201=, Malayan Banking Berhad (Maybank) and other bank such as Public Bank, ong eong Bank and so on are tie to financial ser%ices act 2013 sae as other financial institutions+
3. SWOT Analysis Micro-Environment MacroDen%ironent of Malayan Banking Berhad (Maybank) ha%e sho-ed nuerous of the inforation about the strengths and also -eakness of Maybank, as in P"T analysis there are fe- significant o**ortunity and strength -hich allo- Maybank to be largest and leading in banking and financial ser%ices industry across #sia and ost significantly in Malaysia+ 9onetheless, the internal en%ironent also act as aCor factor to deterine business sustainability+ n order to *ursue business sustainable, "?T analysis of Malayan Banking Berhad (Maybank) -ill be i*leent to clarify the -eakness and also the threats+
3+1 "trength of Malayan Banking Berhad Mayan! Lar"est #an!$ Malayan Banking Berhad (Maybank) is one of the largest banking co*anies across #sia and according to Maybank "ustainability Ae*ort 2013 Maybank ser%es as the largest bank in Malaysia -ith total AM6/0 billion of their assets+ Moreo%er, the ost -idely #TM banking ser%ice *ro%ider in Malaysia and #TM can be reach at alost all of the *laces+ Malayan Banking Berhad (Maybank) ha%e been selected to assist in
3+2 ?eakness of Malayan Banking Berhad Mayan! (ustomer Satis'action )ate$ n 2012 of Malayan Banking Berhad (Maybank) is ranked 7 of H bank in Malaysia for it>s custoer satisfaction rate+ #nother -eakness in Maybank is their o*eration in custoer ser%ice, as Maybank o*eration syste do not ha%e autoated detail security features that %erify client>s accounts, this affect client take ore tie to re*lace or change their inforation and card at others branch+ Mayan! Limited Mar!et$ Malayan Banking Berhad (Maybank) focused their o*eration ostly at local (Malaysia) and "inga*ore, because of this it liited Maybank to *enetrate into global arket+ Moreo%er the re%enue of the co*anies ostly are fro slaic banking and retail banking+ Maybank ha%e to be inno%ati%e and creati%e in *enetrate into e&isting and other financial *roduct to gain a arket ad%antages+
3+3 **ortunities for Malayan Banking Berhad Mayan! Leadin" Mar!et$ #s Malayan Banking Berhad (Maybank) ser%es as go%ernent linked co*anies in 1./., it because of the *olitical ad%antages -here Maybank allo-ed to *artici*ate in the go%ernent transforation *rograe (
Malayan Banking Berhad (Maybank) *ro%ide financial aids to-ards %arious co*anies that in oil, gas and energy storage industry, this allo-s Maybank to e&*ose to %arious ultiDnational co*anies such as Petronas,s *roCect that cae fro nuerous industries+ Mayan! ,inancial Po+er$ Malayan Banking Berhad (Maybank) ranked 17 th of the -orld>s "trongest Bank according to Blooberg Markets on 2016 and Aanked = th for #"#9 bank+
3+= Threats for Malayan Banking Berhad Mayan! %ave Stron" (ometitor$ Narious strong co*etitor such as 'MB Bank, Public Bank, ong eong Bank and so on+ Mayan! o *ot Monooly$ arger erging of three ain financial institution included 'MB Bank, AB Bank and MB"B ha%e alost o%ertake Maybank the title of the largest bank in Malaysia but it fail+ Maybank ha%e to coe u* -ith se%eral strategy to o%ercoe this situation as custoers ha%e tendency to s-itch their account to co*etitor>s account+ (Aeuters, 2016) Mayan! Online Security Instaility$ There are %arious fault Maybank -ebsite -hich is ser%es as :Phishing; -ebsite and :"*oofing; eail -hich cae fro hacker or co*uter crie+ This "ituation allo- Maybank to a-are that internet security is one of the aCor factor to-ards co*etiti%e ad%antages+
Maybank acroDen%ironent ser%es as largest slaic banking and financial ser%ice, assued that there are changes in *olitical instability or econoic *olicy changes, this situation -ill brings a huge i*act to-ards Maybank as Maybank hold a high *ercentage in slaic banking and financial ser%ices+
/. )ecommendation #ccording to the a**endices 3, "?T analysis belo- sho- that in order for Malayan Banking Berhad (Maybank) to be largest banking and financial ser%ices co*anies, there are %arious strategy needed to i*leent to o%ercoe t-o -eakness and four aCor threats that ha%e *ossible to threat co*any %alue+ (Khand-alla, 1.72)+ Wea!ness and T%reats Lo+ (ustomer ratin" rate 0 Online Security Instaility$
n order to i*ro%e the custoer ser%ice, %arious strategy needed to carry out to o%ercoe the lo- satisfaction of client+ 'ustoer relationshi* anageent *lan, decrease client>s -aiting tie, i*leent selfDser%ice counters and i*ro%e co*any staff counication skills and e%aluate the -ebsite and the *rocedure in online banking+ n addition, to i*ro%e the Maybank online security, co*anies ha%e to clarify the e&isting online *robles such as :s*oofing; and :Phishing; and o%ercoe it by i*leenting an inforation syste security centre that 2=Dhour *rotecting Maybank online security and destroy co*uter crie that affect co*any re*utation+ (Miller and $riesen, 1.H3)
Limited Mar!et 0 &overnment Economic Policy$
Malayan Banking Berhad (Maybank) ha%e to create a detail strategy and *lan to gain the big *ortion of the arket share in the arket -hich is %ary fro slaic banking and financial ser%ices and focus on the nonDslaic *roduct+ (a-rence and orsch, 1./7O Miller and $riesen, 1.H3) #s this situation can be one of the aCor threats for Malayan Banking Berhad (Maybank) as once the *ossibility of the *olitical and econoic changes in *olicy -ill direct affect a big *ortion of Maybank re%enue+ ("ith et al+, 1..1)+
Stron" (ometitor 0 Mar!et Monooly$
To be a argest and sustainable business, Malayan Banking Berhad (Maybank) ha%e to i*leent nuerous of strategy to ono*olies the Malaysia banking and financial ser%ices and learn fro the strength of 'o*etitor+ (o et al+, 2001O ''$#, 200.O Mofco, 2011O ncles, 2010O u, 2011) Stren"t% and Oortunity
#s the banking and financial industry in Malaysia ha%e strong co*etitor, but Malayan Banking Berhad (Maybank) ha%e astounded into the co*etitor core finance su**ort as i*leented by go%ernent *re%iously on TP+ (<', 201=)
. (onclusion Malayan Banking Berhad (Maybank) ha%e been e%aluated the en%ironent and to recogni8e the e&ternal en%ironent changes that going to threat co*anies %alue, this cobination of P"T and "?T analysis allo-s Maybank to achie%e business sustainability+ (u, 2011) $or the Maybank global net-ork in #"#9 let Maybank to be ore *roacti%e to achie%e their greater high in Maybank sale and arketing sector+ This situation ake Maybank ha%e o**ortunity to create Maybank grou* en%ironent that co*anies -ill continually *ros*er and re-ards back to the society+ Malayan Banking Berhad (Maybank) highlighting the balance of e&ternal and internal en%ironent so that Maybank ha%e the ca*ability to regulate and res*ond to the threats earlier+ (Kotler et al, 200/) Malayan Banking Berhad (Maybank) ha%e identify the *olitical instability and *ossibility of the changing in go%ernent *olicy, this e&ternal factor does not threated Maybank+ This is because Maybank ha%e been detail strategies the *ossible threats and outcoe in the early of 1./. -hen the tie of go%ernent linked co*any *rograe ha%e launch+ This "trategy is allo- Maybank act as a aCor financial su**ort to-ards other *ri%ate o-ned financial institutions+ There are one of the business strategy that blinded the *ublic %ision as in case there are *olitical instability -hich affect go%ernent changes, there are still financially control by Maybank+ This business acti%ities offer sarter o**ortunities to eliinated co*etitor strength+ (Miller and $riesen, 1.H3)+ Therefore, Maybank ha%e to ha%e sarter business acti%ities reasoning in order to allocate, acce*ting and astering threats and turn it into the co*any o**ortunity+ ncontrollable of en%ironental %itality ha%e to identify as fast as *ossible for future *lanning+ (ess and Beard, 1.H=)+ n conclusion, in order for Malayan Banking Berhad (Maybank) reain in high *erforance and achie%ed its business sustainability, co*any ha%e to conscious and be sensiti%e to-ard the business en%ironent -hich allo- co*any to res*ond uickly and balance -ith the adCustent of co*any strategy+ (ess and Beard, 1.H=O Miller and $riesen, 1.H3)+