Written case analysis
Kanzen Berhad: A Proposed Joint Venture With Pacific Dunlop Limited

Problem definition
Statement of problem
Kanzen Berhad (KB) is a Malaysian based company whose problem is that they want to increase their operating profits, but are not sure how to do it. They are thinking about doing this by reducing their costs and increasing their sales figures, and doing this quickly. They don’t believe they can reduce their costs on their own, and need a way to gain knowledge and technology in order manufacture products more efficiently, and break into additional markets.
Expansion
The first decision they have to make is whether or not to expand the company. We take it as given that KB has decided to expand but there are several barriers to consider before they can proceed with an expansion plan. The company can choose between expanding within any of the industries they are already in, or expanding by diversifying even more and entering new industries. KB is looking to expand in the bedding industry in this case, so this is what we will focus on.
Barriers of expanding the bedding industry
These barriers are:

1. A lack of manufacturing technology and efficiency knowledge.
2. A lack of marketing skills to break into new markets, especially with new products.
3. Possible internal conflicts of interests
4. Limitation in markets

Having world-class efficiency would provide them with the means to expand into more markets and increase productivity. This would make them more competitive because they could be more flexible in the pricing of their products. Specifically this would enable them to sell their products in countries like Thailand, Indonesia, and the Philippines.

To get into new markets will take a lot of resources, knowledge and marketing research, which the company lacks today. The further question is how they are going to