High growth rate and GAP in most regions (the Sun,2013) In the second quarter of 2013, Malaysian GAP grew at a seasonally adjusted 1. 4 percent over the previous quarter, recovering from the first quarter’s 0. percent contraction NOAA Tabor, 2013) Positive The flow of goods and people will continue to increase over time resulting in massive investments as most investors are ran by an increase in the growth of the economy of which in this case is at 4. 5 – 5 percent range this year. C) Transport development strongly focuses on urban areas following the global trend of arbitration. (transport logistics, 2013) Positive Research has shown that only 69% of rural residents have access to reliable transport.

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So Hermes will generate more income. Hermes uses the manual system to record and track its daily business processes Negative. This not only takes too much time but it also creates a window for errors and mishandling off lot of documents. ) With IBM opening a global delivery centre in Cybercafé things are looking up. (Chon, X) Positive There will be Job opportunities plus Hermes will get to implement IT systems in order to aid in improving work flow. ) There is a massive change in technology. Negative With technology advancing every day, soon there will be technologies developed to reduce the need to travel which will result in loss of potential and current clients. G) Internet exposure

Spanish population was subjected to high noise levels Negative According to he World Trade Organization, if all countries could reach the western way of life, it would take three Earths planet to supply us with the necessary energy and natural resources J) Ozone layer depletion (2013, Michael Barrett, Melbourne,27/06/07) Positive Since logistic companies were built service industry driven by abundant and cheap fossil fuels and being invisible to the regard of the public, it will now move to the front of public awareness.

The minister of Malaysia to eliminate Fiscal deficit by 2020. ( Bahrain Oceanography And Jason Eng, 2012) Positive The fiscal deficit was expected to fall to 4. % in2012 from 5. 4% in 2011 and will continue to fall all throughout until 2020. Malaysia’s trade tax and customs duties have proved to be the main drivers of government income, as about 5. 6% of Malaysia’s population pays personal income tax.

Page 2 Steep Analysis Essay

The tax is not expected to be implementeduntil 2014, that meaner that the company will not need to impose higher prices for their services hence more people will use it. 2. Bank Engage Malaysia maintains the Overnight Policy Rate at 3. 00 % NOAA Tabor, 11 July 2013) Positive This proves that the economic state in Malaysia caters for the population which will enable them to afford using Hermes. Furthermore the capital expenditure in the domestic-oriented industries and the constant implementation of organization projects will also support investment activity

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