Genting Berhad: The Story of a Malaysian Conglomerate
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Case Code: BSTR108 Case Length: 22 Pages Period: 1964 – 2004 Pub Date: 2004 Teaching Note: Not Available |
Price: Rs.500 Organization: Genting Berhad Industry: Diversified Countries : Malaysia Themes: Business Environment |
Abstract Case Intro 1 Case Intro 2 Excerpts
"The name Genting today represents far more than just one winning concept and one celebrated destination. It represents a synergy of corporate dynamism, drawing from the vast resources within the Group comprising more than 14,000 employees, 11,000 acres of prime resort land, 40,000 acres of choice plantation land throughout Malaysia and providing sustainable growth since its inception 38 years ago."
- A quote from www.genting.com.my, 2004.
"Genting is a story of success that is quite unprecedented."
- Mahathir Mohamad, Prime Minister, Malaysia.
Genting Facing Difficult Times
In 2002, Genting Berhad (Genting), Malaysia's leading conglomerate company, was ranked No.1 in the 'Review 200 Asia's Leading Companies,' conducted by the Far Eastern Economic Review (FEER). This feat was nothing new for Genting - it had continuously topped this ranking for nearly a decade (since 1994), making it one of the most admired companies in Malaysia. Famous for the holiday resorts, hotels and entertainment centers it operated in the country, Genting was popularly referred to as the 'City of Entertainment.' It was the first company to officially operate a casino (Casino De Genting) in Malaysia at its resorts. Malaysia is one of the very popular tourist destinations in the ASEAN region, and within Malaysia, Genting is where most tourists head. The company also has a strong presence in other businesses like power generation, paper manufacturing, oil and gas exploration, property development, information technology (IT) and e-commerce and plantations.
Over the years, the company has received various awards and recognition in several areas like financial soundness, good investor relations and service industry excellence. It has been named the best-managed Malaysian company on several occasions due to its strategic planning and strong financials (Refer Exhibit II for Genting's ten-year financial summary and Exhibit III for various awards and recognition received since 1996). Thus, when the company slipped to the fourth position in FEER's 2003 rankings (Refer Table I), the Malaysian as well as the global corporate world was a little surprised. The main reasons for the drop in the company's ranking were the economic slowdown in the Southeast Asian region and the outbreak of the SARS epidemic. These factors had resulted in a decline in tourist arrivals in the country in 2003, affecting Malaysia's tourism industry badly. Genting, whose main business activity was providing leisure and hospitality services to tourists, was also severely affected by these developments.
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