COLLEGE OF BUSINESS (COB)

BWBB3193 SEMINAR IN BANKING

SECOND SEMESTER SESSION 2021/2022 (A212)
GROUP A

TASK : ASSIGNMENT 2 ( CORPORATE LOAN APPLICATION EVALUATION )

COMPANY : ECO WORLD DEVELOPMENT GROUP BERHAD

GROUP 4

PREPARED BY :

NO. NAME MATRIC. NO.

1. MOHAMED HASSEN NUR 260485

2. MUHAMMAD NURAZAM BIN ZAINUDDIN 265102

3. ABDUL RAZIQ BIN ABDUL HALIM 267837

4. IMRAN IQBAL BIN ABDUL LATIFF 268111

5. THARSHAN A/L MANOHARAN 272457

6. MUHAMMAD KHAIRUL ANUAR BIN ABDULLAH 275418

SUBMITTED TO : PROF. MADYA DR. AZIRA BINTI ABDUL ADZIS

SUBMITTED DATE : FRIDAY, 03rd JUNE 2022

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 Table of Contents

1.0 Company Background 3

1.1 CORPORATE STRUCTURE 4
1.2 Key Management Team 5
1.3 Auditors of Eco World 5
2.0 Ratio Analysis 6
2.1 Liquidity Ratio 6
2.2 Performance Ratio 7
2.3 Gearing Ratio 9
2.4 Interest Coverage Ratio 10
2.5 Efficiency Ratio 11
3.0 5C’s ANALYSIS 12
3.1 Competitive 14
3.2 Capital 15
3.3 Company 15
3.4 Collaborate 16
3.5 Climate 17
4.0 Sustainability, Corporate Governance, Risk Management 17
4.1 SUSTAINABILITY 17
4.2 CORPORATE GOVERNANCE 19
4.3 RISK MANAGEMENT 20
5.0 Recommendation 21
6.0 References 22

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1.0 Company Background

Eco World International Berhad (EcoWorld International) is a real estate

developer listed on the Main Market of Bursa Malaysia Securities Berhad. Its core
business involves property development outside Malaysia. Having launched its
first project in 2015, EcoWorld International has since expanded rapidly through
organic growth and joint-ventures. The Company has 18 ongoing and upcoming
projects in the United Kingdom (UK) and Australia with gross development value
of GBP4.7 billion and AUD0.7 billion respectively. Major shareholders in EcoWorld
International are Eco World Development Group Berhad (EcoWorld Malaysia) – a
well-known Malaysian real estate developer and GuocoLand Limited – a regional
real estate development, investment and management company listed on the
Singapore Exchange since 1978.
EcoWorld International is managed by a board and management team
comprising qualified and experienced individuals, including personnel who were
involved in developing some of the most iconic and award-winning
developments in both Malaysia and the UK. EcoWorld International’s entry into UK
began with the EcoWorld-Ballymore joint-venture that is currently developing
three prime waterside residential projects in London. London City Island is
designed as an arts and cultural destination, anchored by presence of the English
National Ballet. Wardian London, which sits next to the Canary Wharf estate,
features modern architecture with innovative landscaping, offering a sense of
escape whilst remaining connected to the thriving city. Embassy Gardens,

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located in the heart of Nine Elms places emphasis on design and engineering
craftsmanship with its “floating” transparent Sky Pool.
In 2018, EcoWorld London was launched giving EcoWorld International an
immediate presence in the highly resilient UK mid-mainstream market and the
fast-growing Build-to-Rent sub-sector. Third & Caird, Oxbow, Verdo-Kew Bridge,
the latest additions in EcoWorld London’s portfolio, offer a suite of lifestyle
amenities and are conveniently located near to train or tube stations, providing
easy access to Central London. In Australia, the Company’s maiden project of
West Village, Parramatta offers views of Sydney’s CBD and Blue Mountains and is
well-connected via transportation links.

1.1 CORPORATE STRUCTURE

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1.2 Key Management Team

1.3 Auditors of Eco World

Baker Tilly Monteiro Heng PLT (LLP0019411-LCA & AF 0117)

Chartered Accountants
Baker Tilly Tower
Level 10, Tower 1, Avenue 5
Bangsar South City
59200 Kuala Lumpur
Wilayah Persekutuan

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2.0 Ratio Analysis

2.1 Liquidity Ratio

Year 2017 2018 2019 2020 2021

Current 1.22x 1.07x 0.98x 0.85x 0.85x

Ratio

Graph 1.0

The current ratio measures how many times this company can cover its
current liabilities. From the analysis, we figure out that every year has consistently
decreased from the year 2017 to 2021. The year 2017 is the highest where the
company can pay for its current liabilities 1.22 times over. The lowest is in the years
2020 and 2021 consecutively which can pay for its current liabilities 0.85 times.

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2.2 Performance Ratio

Year 2017 2018 2019 2020 2021

Sales 14.85% -26.04% 13.38% -18.81% 2.31%

Growth

Return On 2.11% 1.38% 1.97% 1.28% 2.44%

Asset

Graph 2.0

The sales growth rate is where to see the different sales between the current
year of sales and the prior year of sales. In the analysis that has been calculated,
we found out there is a fluctuation in the trend between the years 2017 to 2021.
The highest sales growth for the company is in the year 2017 at 14.85%. Then the

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year 2018 has significantly fallen to -26.04% compared to the year 2017. In the
year 2019 the sales growth has risen back to 13.38% probably they have improved
in terms of sales marketing.

Then in the year 2020, the sales have to drop back to -18.81% and these
sales are decreasing probably because the year 2020 there is a pandemic of
Covid-19 and also because of restrictions in movement that they cannot boost
their sales as usual. In the year 2021, the company’s sales have started to grow
back by 2.31%, and by increasing their growth of sales we can assume that the
local economy and the sector have started to recover.

Graph 3.0

Next is the return of assets which measures how the company is able to
convert its assets to sales and revenue. The analysis shows that the year 2021 has
the highest performance at 2.44%. This indicates that the company is efficiently
fully utilizing the assets compared to previous year and also the year of 2021 we
can see the great recovery after the pandemic.

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2.3 Gearing Ratio

Year 2017 2018 2019 2020 2021

Ratio 134.84% 146.58% 137.55% 122.31% 104.59%

Graph 4.0

Gearing ratio is a term to describe a financial ratio that compares some

form of owner’s equity or capital to borrowed funds (liabilities). This company
which has a high gearing (high leverage) that is in 2018 where the value is 147%
is much more vulnerable to the danger of decline in the business cycle because
the company has to settle debts continuously regardless of how bad the
company's business level.

The decrease in the ratio for this company starts in 2019 to 2021 and the
lowest gearing ratio value from 2017 to 2021 is 105% which is in 2021.This is indeed
bad news for the Eco World company as every year starting from 2017 to 2021 the

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ratio shown exceeds 50%. The company shows a very high rate of liabilities relative
to equity.

2.4 Interest Coverage Ratio

Year 2017 2018 2019 2020 2021

Ratio 4.05 1.32 2.61 1.42 2.14

Graph 5.0

The interest coverage ratio is calculated by dividing earnings before

interest and taxes (EBIT) by the total amount of interest expense on all of the
company's outstanding debts. In 2017, the company showed the highest interest
ratio compared to 5 years, which was 4.05. This year it is likely that the eco world
company will make a lot of profit and be able to provide a high rate of return to
investors. However, the company experienced a decline in value in 2018 of 1.32
and made the lowest value compared to 5 years taken into account. Based on
the calculation of the interest coverage ratio of eco world company, it is clear
that after the downturn crisis in 2018, many investors have run away and left the
company's shareholders because the lower the interest coverage ratio, the
greater the company's debt, and the possibility of bankruptcy.

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2.5 Efficiency Ratio

Year 2017 2018 2019 2020 2021

Asset 0.72x 0.43x 0.23x 0.19x 0.21x

Turnover
Ratio

Graph 6.0

Asset turnover ratio (ATR) is a ratio that describes how efficiently a

company's assets are used to score sales. Based on the calculations, the Eco
World company clearly showed a downward trend from 0.72 times to 0.19 times
in 2017 to 2019. The company made another increase in 2021 of 0.21 times to
regain the use of all the assets they owned.

Therefore, the larger the value of the asset turnover ratio, the more efficient
the performance of their company in utilizing the available assets in 2017. On the
other hand, this company has obtained a very small value in 2019 which is a value
of 0.19 times, so there are some uses of assets that should be maximized.

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3.0 5C’s ANALYSIS

The 5C analysis is a promoting structure that might be utilized to embrace

an investigation of an association's working climate. It might give light on the
principal components that lead to progress, as well as the dangers presented by
various outer circumstances. The "5 Cs" comprise of the firm, its colleagues, its
purchasers, its rivals, and the general climate (Funr, 2022).

Because of its adequacy and straightforwardness, the 5c investigation has

become perhaps the most frequently involved model for doing situational
examination. It is a decent option for little to medium-sized organizations. We
suggest doing a 5c examination something like once every year. It won't take
long, and it will assist you with holding a state-of-the-art view on the biggest and
most basic elements driving your business (Kinnison, 2022).

There are five critical sorts of 5C's examination, including teammates.

Teammates are outsiders that help or improve an organization's capacity to give
a specific item or administration in the manner by which it does as such. This part
centers generally around an organization's production network, which,
contingent upon the idea of the association, may go from spot agreements to
semi vertical combination. Since downstream partners are all the more expressly
described as clients in the 5C Analysis worldview, upstream reconciliation is the
main reasonable choice.

Client is the subsequent kind. There are three fundamental ways of

grouping the pool of potential clients that a business can reach with its labor and
products: the complete accessible market, the functional accessible market, and
the workable realistic market. Market classes can be broken down considerably
additionally founded on socioeconomics, psychographics, geological elements,
and whatever other variables that make them extraordinary. The Whole Available
Market (TAM) is the broadest gathering of purchasers. It incorporates all potential

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clients who need a specific item or administration. It is additionally called "the
entire market." The Serviceable Obtainable Market (SOM) sub-portion of the
market is the market sub-fragment with the nittiest gritty portrayal. It shows the
market portion that an organization could attempt to get.

The third kind is a competition. Contest can emerge out of different

organizations that work in the very business as the organization that this article is
about. A typical method for sorting out whether or not a player is fascinating is to
take a gander at their piece of the pie with regards to the business. The standard
method for discussing it is with the fixation proportion CR4, which shows the
amount of the market the four greatest organizations in an industry own. However,
it's memorable critical that industry classification strategies probably won't have
the option to give a point by point sufficient depiction of an industry for certain
associations. This could occur if, for instance, an organization carries on with work
in more than one industry or on the other hand in the event that it serves a
specialty market that doesn't fit the commonplace meaning of an industry.

Fourth kind is business. The most difficult part of investigating a business

utilizing the 5C promoting structure is deciding the organization's Sustainable
Competitive Advantage. It could appear as brand value, economies of scale,
innovative turn of events, and so forth. The VRIO (Variable Rare Imitable
Organized) model might be utilized to look at whether an organization's resources
give an impermanent or diligent upper hand to lay out on the off chance that
the objective business enjoys a supported serious benefit.

The fifth classification is setting. Regularly, a PESTEL study is finished to

evaluate the functional climate of a business. It gives inclusion to regions that may
be negative to a business however over which the business has practically zero
control. Changes to relevant perspectives might influence the business overall,
instead of a solitary organization. Thus, a benefit got through such changes may
not be moved to the foremost business or the other way around.

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3.1 Competitive

From the angle of contemplations, there are five components that envelop
the 5C's investigation of the eco circle. The principal thought is the firm. In 2014,
the greater part partner of SP Setia Berhad, one of Malaysia's top property
designers, settled a consent to offer every one of his leftovers offers to
Permodalan Nasional Berhad, an administration connected reserve. This
exchange is viewed as one of the main in Malaysian history.

During that time, countless top chiefs at SP Setia began the most common
way of passing on the organization to join Eco World Development. As indicated
by a press source, around 280 staff from SP Setia are supposed to join Eco World
Development ultimately. What's more, to open deals workplaces around the
country, Eco World Development rented some of the most eminent business
structures held by SP Setia at that point. Sooner or later in their professions, most
of Eco World Development's ongoing top administration and board individuals
worked for SP Setia (Muse, 2021). It's possible that you'll see Eco World
Development to be SP Setia 2.0.

The subsequent variable is the setting of the Eco World. We are mindful that
land improvement is a business that requires a significant speculation. It is very
dubious that another organization might have developed at such a quick speed
using simply its own inner assets. As a result, the organization's improvement has
been made doable by means of the utilization of both obligation and value
speculation. Eco World Development has as of late been effective in getting
supports by taking part in various offer contribution exercises.

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3.2 Capital

Moreover, the business has exceptional warrants that can possibly give
further money. Besides, Eco World Development has gathered a lot of obligation.
It owed nearly RM3 billion (around $800 million) toward the finish of 2016. (Lim et
al., 2017). Its obligation to-value proportion surpasses 1.3 times, which is huge yet
not incomprehensible for a youthful property designer with aggressive
improvement desires.

The third variable is the client. We are mindful that land improvement is a
business that requires a significant venture. It is very suspicious that another
organization might have developed at such a fast speed using simply its own inner
assets. As a result, the organization's improvement has been made practical
through the utilization of both obligation and value speculation. Eco World
Development has as of late been fruitful in acquiring subsidizes by participating in
various offer contribution exercises. Besides, the business has extraordinary
warrants that can possibly give further money. Moreover, Eco World Development
has collected a lot of obligation.

3.3 Company

Eco World Development Group has been one of the companies on Bursa
Malaysia with the best pace of development over the past numerous years.
Regardless of this, tremendous stock infusions and expanding getting are
financing a significant measure of the turn of events. The organization's ongoing
business sector cost is around 1.2 times its book worth, and it has a market
capitalization of RM4.65 billion. Moreover, it faces intense rivalry from Malaysia's
lacking housing market. In spite of this, the firm has a significant amount of lacking
property that is ready to be created to its maximum capacity.

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 The fourth variable is the opposition. AAYANRE A'ayan Real Estate Co. S.A.K.
also, A26 Sinarmas Land Ltd. are Eco World's essential rivals. They additionally
incorporate any potential contenders who might choose to enter your market
from here on out. This may be a rivalry from an alternate geographic area going
into your region or a contender widening its item to focus on another market
bunch. These two circumstances are both conceivable. Basic for associations
share premises, like clinical experts, to decide whether they are good to go
together or working separate tasks.

On the off chance that a firm isn't coordinated as a solitary legitimate

element or as an organization of individual people, the representatives who
supply similar administrations are generally considered as being in direct contest
with each other. This is valid regardless of whether the business is organized as an
organization. An organization will be perceived as a solitary substance for lawful
purposes as long as none of the accomplices is a company.

3.4 Collaborate
EcoWorld collaborates with external experts and addresses any distinctive
ecological features of the site. It also opens up more opportunities to collaborate
closely with EcoWorld International to further strengthen the brand’s international
profile and to gain market share in their respective local markets. They broke new
ground in an exciting partnership with Alliance Bank Malaysia Berhad in 2018.
EcoWorld also had the opportunity to collaborate with National Geographic to
learn from this leading media organization on environmental issues in 2019.
Industry collaboration between Taylor’s University and EcoWorld Malaysia to
provide constructive feedback on micro-credentials on Sustainable Construction
soon to be offered under its School of Architecture, Building and Design.

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3.5 Climate
Every year the climate change and carbon pricing strategies. Stringent
regulations will be introduced with increased expectations from stakeholders. In
2020, EcoWorld adopted two new UNSDGs: UNSDG 13 Climate Action, and UN
SDG 16 Peace, Justice, and Strong Institutions to demonstrate our commitment to
climate resilience and corporate governance.

They also launched the Low Carbon City initiative which will measure the
carbon footprint of our developments and enable determination of carbon
offsets through landscaping initiatives. To measure how the landscaping at
EcoWorld developments can be applied as carbon sinks. The impact of climate
change is that we are increasingly conscious of the Group’s carbon footprint, and
the importance of monitoring and reducing our greenhouse gas emissions.

4.0 Sustainability, Corporate Governance, Risk Management

4.1 SUSTAINABILITY
Sustainability which units out EcoWorld Malaysia’s efforts through the years
to embed elements of Environment, Social and Governance (“ESG”) into our
operations and in our engagement in and around our groups to promote a
positive, sustainable destiny. They have adopted 11 of the 17 UNSDGs that are
maximum relevant to their operations, in which the efforts could have the finest
impact.
The ensuing 13 material sustainability matters have been then assessed
using a weighted ranking approach to decide their relative significance. This 12
months, eco international extended the materiality assessment procedure to
encompass representatives from key stakeholder groups, specifically customers,
personnel, buyers, providers/contractors, regulators, media, and non-
governmental enterprises. The three new SDGs adopted in FY2021 are SDG12:

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Responsible Consumption and Production, SDG15: Life on Land and SDG17:
Partnerships for the Goals.

For the SDG12, Eco Worlds making use of the Sustainable Procurement
Policy to interact with providers who're like-minded almost about promoting
sustainability within the neighborhood economic system and minimizing
destructive environmental impacts. Eco World instruction top procurement
making plans and persevered innovation to ensure aid consumption is optimized,
reusing and recycling waste material to lessen diversion of waste to landfills and
diligent tracking and monitoring of scheduled waste.

Next for SDG15, Launched Low Carbon City initiative with the intention to
measure the carbon footprint in their trends and allow willpower of carbon offsets
via landscaping tasks a hit final touch of the carbon sequestration pilot examine
to estimate the overall biomass carbon (C) and CO2 captured with the aid of
urban greenscapes at Eco Ardence. Results suggest that as of 2021 the whole
carbon seize of Eco Ardence may be expected at 1,008 tonnes of CO2. Ongoing
efforts to salvage and replant native trees at task websites (3,226 bushes stored
throughout all tendencies to this point) and developing balanced ecosystems
and habitats for wildlife via panorama design.

Finally, for SDG17, Implemented the Eco World COVID Vaccination Programme
for all employees based totally in Malaysia inclusive of their own family
participants. Eco Worlds reinstated community engagement programmes
(inclusive of blood donation drives) as soon as accredited via the authorities, with
right Covid-19 safety protocols in vicinity Joined the United Nations Global
Compact as a member in view of taking part and contributing towards success
of the SDGs and organised flood remedy efforts and supplied monetary useful
resource to victims inside the aftermath of the December 2021 floods.

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4.2 CORPORATE GOVERNANCE
Corporate governance is the gadget of rules, practices, and methods by
using which a firm is directed and managed. The Board of Directors of Eco World
Development Group Berhad is committed to conducting enterprise responsibly
and reaching a high fashionable of corporate governance. This is crucial to our
reputation and for the continuing help of our shareholders, customers, personnel,
and other stakeholders.
Corporate Governance in Eco World Development Group Berhad affords
shareholders and traders with Company and its subsidiaries has carried out the 3
key Principles set out inside the MCCG all through the monetary year ended 31
October 2021 as well as key awareness areas and future priorities with regards to
company governance like board leadership and effectiveness, powerful audit,
and risk control: and integrity in corporate reporting and significant relationship
with stakeholders. For board management they had clear roles and duties like
reviewing and adopting a strategic plan, monitoring the behavior of commercial
enterprise, and ensuring effective communication with stakeholders. In addition,
they set the future priorities with continuing the digital transformation journey and
improving profit margins via product management.

For audit and risk control, the Board has delegated the general
responsibility for reviewing and tracking the adequacy and integrity of the
Group’s threat management and inner manipulate framework to the audit
committee. The Audit Committee yearly assesses the audit satisfactory, suitability,
objectivity, effectiveness, and independence of the outside auditors. The Risk
Management Committee assists the AC to perceive, determine, mitigate, and
display important dangers highlighted via business devices and implements risk
control guidelines and techniques.

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 Eco worlds improvement organization berhad communicates with
shareholders, different stakeholders, and the general public through diverse
channels. The Board is dedicated to ensuring that the shareholders and different
stakeholders are properly knowledgeable of foremost developments inside the
Group. Clear, applicable, comprehensive business, operational and economic
information is disseminated to them on a timely basis. The Board perspectives
shareholders’ widespread meetings as an excellent possibility to communicate
with shareholders. The Company will hold to screen tendencies inside the market
for extra price effective era to enable shareholders to participate and vote at
AGMs remotely.

4.3 RISK MANAGEMENT

Risk management involves the identification and evaluation of potential

risks to a company's capital and profits.

The Risk Management Committee of ECO world company oversees risk

management matters within the Group. The committee meets on a quarterly
basis and the Group's aggregated risk position and specific significant risk issues
are reported to the Audit Committee on a half-yearly basis. Starting from FY2021,
the quarterly Risk Management Committee meeting minutes are presented to the
Audit Committee at its quarterly meetings.

The Group's Risk Management Framework sets out the process for risk
identification, measurement, and treatment. All risks are consolidated and
presented for deliberation during quarterly Risk Management Committee
meetings. The significant risk management matters discussed and minuted during
quarterly risk management committee meetings are shared with the Audit
Committee every quarter.

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 According to the Board's guidelines, the Group's risk management system
and the duties of Management are clearly defined. Incorporating limitations to
approving power into the Group's policy and procedure manuals helps to control
the Group's risk appetite and tolerance for risk.

To ensure that the Group's risk management and internal control system is
adequate and effective, the Board has delegated this duty to the AC. The Risk
Management Committee ("the RMC"), Group Corporate Governance ("the
GCG"), and the Integrity Team ("the Integrity Team") provide assistance to the AC.

It is the RMC's job to support the AC in assessing, mitigating, and monitoring

the most significant risks as identified by the various business units. The GCG aids
the AC in reviewing, evaluating, and monitoring the efficacy of the Group's
governance, risk management, and internal control systems. It is the responsibility
of the Integrity Team to ensure that the anti-corruption compliance program is
running smoothly.

5.0 Recommendation

It gives us the pain to reject the loan that you requested for, by the board
of directors of the company. The main reason for this rejection was found to be
the Poor credit score. An accurate account will allow a better understanding of
the growth of the business throughout the years. With the detailed report, I believe
that viewers can analyse every significant component of the bill that can affect
the business standing. The cash flow statement, balance sheet, and financial
ratios will indefinitely provide those relevant details.

The key to improving communication and getting better feedback is to

keep it simple. Poor communication and feedback can also be caused by
management and leadership styles. Many times, they don't know for sure that
their message has been received in full. Many businesses promote customer

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feedback but do nothing with it when it comes to responding to it. Eco World
recommends that Eco World improve communication and feedback by valuing
and acting on employee surveys. Additional training on time and resource
management may be provided by Eco World for the team's benefit.

6.0 References

Funr. (2022, February 11). 5C analysis. Corporate Finance Institute. Retrieved

June 1, 2022, from
https://corporatefinanceinstitute.com/resources/knowledge/strategy/5c-
analysis-marketing/

Kinnison, A. (2022, April 6). The 5 C's of marketing - templates & examples. Volusion
Ecommerce Blog | SMB Marketing, Design, & Strategy. Retrieved June 1,
2022, from https://www.volusion.com/blog/situation-analysis-the-5-cs/

Lim, S., says:, H. L. S. M. B. A., & says:, S. A. (2017, October 6). 7 things to know about
eco world development group. The Fifth Person. Retrieved June 1, 2022, from
https://fifthperson.com/7-things-know-eco-world-development-group/

Muse. (n.d.). EcoWorld Gallery - Overview, News & competitors | Zoominfo.com.

Retrieved June 1, 2021, from https://www.zoominfo.com/c/ecoworld-
gallery/372138642

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