Assignment 4 Objectives - MALAYAN FLOUR MILLS BHD LIEW KAI...

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MALAYAN FLOUR MILLS BHD LIEW KAI WEN GM03833 Assignment 4 Objectives: A) From the external factors and internal factors that will influence the company, generate 20 strategies that fit in the four quadrant of SWOT matrix. B) From 20 strategies, chose 5 strategies and rationalize. Strengths – S S1: Strong profit growth S2:Economies of scale through experience curve and technology pioneering S3 :Better product quality relative to rivals S4 :Strong Partnership with outsourcing company SnT in implementing new ideas and solution S5 :Strong brand loyalty Weaknesses – W W1: High reduction in revenue and elevated liabilities of poultry integration business squeeze overall profitability W2 :Diversification increases the information asymmetry between managers and shareholders W3 :Vague strategic direction and less engaging vision statement W4 :Lack of proper prevention schemes as cushions of sudden setbacks W5 :Plagued with obsolete facilities Opportunities – O O1: Less substitution for flour O2: Increasing consumer and industrial consumption of diversified range of flour- based product O3: Technological advancement, automation, and modernization in manufacturing industry increases the productivity O4: High initial capital investment of the milling plant discourage entry of new competitors O5: Increasing market growth rate and industry profitability due to increasing demand and raising price SO Strategies 1. Expand the output using profit generated to cope with increasing consumption of flour-based product (S1, O2) 2. Delve in the advantage of technology pioneering and economies of scale to discourage entry of new competitors (S2, O4) 3. Strategic partnership with SnT to implement technological solutions to increase productivity( S4, O3) 4. Improve product quality to attract increasing new market growth. (S3,O5) 5. Sustain strength of economies of scale and technology pioneering to cope with increasing market growth rate and demand. (S2, O5) WO Strategies 1. Improve in technology advancement to retrench cost in poultry integration business ( W1,O3 ) 2. Bridge the vision statement and strategic plan with increasing market profitability as a company direction. (W3, O5) 3. Diversify concentrically in flour business because of increasing consumption of diversified flour- based product and there is less substitution for flour. ( W2,O1,O2 ) 4. Update the facilities by latest manufacturing innovation and automation to increase the productivity ( W5, O3 ) 5. Control the information flow of the business to reduce information asymmetry by engaging the MIS expertise ( W2, O3 ) Threats – T T1: Volatile raw material costs, transport costs and ocean freight put pressure on margins T2: Deteriorating raw material quality from suppliers T3: Regulations such as Nutritional Labeling and ST Strategies 1.
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