...Ethical issues faced by Proton Car Ethical issues faced by Proton Car Now a day businesses are considering ethical issues as a terms of administrative compliance to cope with legal environments and following internal organizational rules and regulations. It is also true that following business ethics not only motivate employees but also help them to perform at their level best. The impacts of different ethical issues faced by Proton Car of Malaysia are discussed below: a. Rights, conflicts and responsibilities: While Proton car was established in Malaysia, they don't have the skill and technology to run this business swiftly as a result they hired technology and skill from Mitsubishi Motors Corporation. As the technological and knowledge shifted they started to produce on their own effort. This means, Proton Car Corporation is depended on the skill of the labor. So they must give them some rights to motivate them and increase the profitability. As it engaged in global business the necessity for giving the employee rights increased much. Now Proton car have 10,300 employees to cover up its activities. This essay is an example of a student's work Disclaimer This essay has been submitted to us by a student in order to help you with your studies. This is not an example of the work written by our professional essay writers. Essay Writing ServiceEssay Marking Service Who wrote this essayPlace an Order As over 42% of the equity is held by the Malaysian Government the employees...
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...Overview of the Automotive Industry Malaysia automotive industry established on early 1960s. In the early 1960s, the development of automotive industry had become the attention from Malaysian government to build up the industrial base, at the same time to decrease dependency on the agricultural sector. Nowadays, automotive industry had become one of main income for Malaysia. The large demands from the resident of Malaysia make the automotive industry develop smoothly and rapidly, and well known as the biggest automotive customer market in South –East Asia. From the MAA 2012 report the total average sales of commercial car are 52,300 units every month (Kenanga research, 2013). There are 77 issues about manufacturing licenses by the Malaysia government but only have 35 manufacturers in operation at the year of 2012. In addition, almost 18 main well known car manufacturer in Malaysia market there are Proton and Perodua subsidise the most sales in the market and followed by Toyota, Honda and Nissan. Risk of Entry by Potential Competitors. In a country that is well developed such as Malaysia, we have competition from public transport companies. These include the KTM and several bus companies such as City Liner. When we look at risk of entry, it should be clear that a high risk of entry by potential competitors’ leads to an alteration of the profitability of the existing companies in the industry, simply because the more companies that enter, the smaller the market share of established...
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...Decisions on Proton Cars’. This study is dealing with Malaysian automobile industry. All Islamic countries hold its pride of producing automobiles by Malaysia. Proton Saga was the first ever which made Malaysia to obtain recognition worldwide for its impressive performance. This national project has progressed extensively merging with the United Kingdom’s well known automaker (Lotus International) in 1996 and the recent introduction of a new engine, the Campro (Rosli, 2006). In the year of 1984, National Car Project by PROTON was the second phase project of the development in the automotive industry. The development based of intellectual property of the industry and increment of technology level was the milestone of this project. The PROTON project, which was a joint-venture programme with Mitsubishi Motors Corporation of Japan, began its production with the PROTON Saga model in 1985 (Arshad & Iswalah, 2006). In the year of 1992, follow up of this success, Perusahaan Otomobil Kedua Sdn Bhd. (PERODUA) was launched. This success was the result of an agreement between UMW Corporation Sdn. Bhd., Med-Bumikar Mara Sdn. Bhd., Daihatsu Motor Co. Ltd of Japan, Mitsui & Co. Ltd of Japan, PNB Equity Resources Corporation Sdn. Bhd., and Daihatsu (Malaysia) Sdn. Bhd (Arshad & Iswalah, 2006). 1.2 Problem Statement Although Proton had gone through numerous achievements in the recent years, there are few talking points where it highlights the problems that Proton for the past...
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... | |3 | | |INTRODUCTION | | |2 | |5 | | |SWOT ANALYSIS | | |3 | |7 | | |ISSUE IN PROTON | | |4 | |11 | |...
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...Launching the Proton Prevé – DRIVE IT TO believe IT 10 1) Prevé – Product (Atrributes) 10 2) Prevé - Price 10 3) Prevé – Place (Distribution) 11 4) Prevé – Promotion 11 COMPANY BACKGROUND 12 PROTON Business Strategy 12 FINANCIAL INSIGHTS OF PROTON 14 Critical Success factor 15 Product 15 Price 15 Promotion 15 Place 15 Critical Success factor 16 Comparison of Prevé with other brands on the critical success factor of Prevé 16 Product 16 Price 18 Promotion 19 Place 19 PART TWO 22 SWOT Analysis 22 Strengths 22 Weaknesses 22 Opportunity 23 Threat 23 TOWS Analysis 24 Strength-Opportunities (SO) 25 Strength-Threat (ST) 25 Weaknesses-Opportunities 25 Weaknesses-Threat 25 PART THREE 27 Strategic Planning and Implementation: Short to Mid Term 27 For first time buyer; Rebate 27 Lower interest rate and zero down payment 27 Indirect Promotion 27 Preve variants :Competitive Price 27 R & D & Special Edition 27 Strategic Planning and Implementation: Long Term Strategy 27 10 years scrap program 28 Proton First than Foreign Car program 28 Proton Car Financing 28 Strategic Partnership 29 Completely Knock Down (CKD) Plant 29 APPENDICES: BROCHURES 30 References 31 List of Figures Figure 1: Photo from the Launching of Prevé Figure 2 : PROTON Company Logo Figure 3 : Critical Success Factors, Missions & Goals for Proton Figure 4: Annual export of Proton cars 1986-200911 Figure 5: Proton Automobile...
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...GLOBAL SUPPLY CHAIN Term Paper : Proton Supply Chain Challenges Table of Contents 1.0 Company Background 1-4 2.0 Problem Statement 5-7 3.0 Significant of Study 8-10 4.0 Proton Supply Chain Weaknesses 11-18 5.0 Recommendation 19-29 6.0 Conclusion 30 7.0 References 31-32 1.0) Company Background First national car, Proton Saga project was formed embark from the Look East Policy. Perusahaan Otomobil Nasional Sendirian Berhad (PROTON) was formed in 1983 as a company of national car to manage the operation of the national car project. "The Proton Saga is more than just a quality automobile. It is a symbol of Malaysians as a dignified people" quoted by Tun Mahathir Mohammad during the launched of the first model of national car, Proton Saga in 1985. Anyhow, PROTON facing the downfall when Perusahaan Otomobile Kedua Sendirian Berhad (PERODUA) launched in 1993, producing minicars and superminis models which target the different market segments as Proton. For example in 2002, Proton become the 1st of the car supplier in Malaysia, acquired 49.43% of the market share. Anyhow, in 2006, Perodua overtake Proton as the 1st car supplier in Malaysia with 42% of market share, and Proton was 10% behind it. This trend maintain consistently until latest statistic in 2011, Perodua still become the 1st supplier in Malaysia acquired 34% of the market share while Proton maintain the 2nd place with 33% market...
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...TOPIC 1 INTERNATIONAL STAFFING IN A MALAYSIAN MULTINATIONAL ( PROTON ) MANAGING PEOPLE IN MULTINATIONAL ORGANISATIONS TBS 981 MASTER OF INTERNATIONAL BUSINESS SYDNEY BUSINESS SCHOOL – INTI CAMPUS PREPADED BY: Yeow Sin Kah (4785149) LECTURER: Dr. Peter McLean SUBMISSION DATE: October 19, 2014 Executive Summary This report examines and evaluates various topics concerning the difficulty of international staffing. We aim to provide a holistic guideline and report that can aid and assist Proton in their staffing selection of selecting either a Malaysian expatriate or a Chinese local to be operations manager for Proton’s new factory in China. We anticipate that it is by having the significant understanding on the overall issue regarding international staffing approach, knowing how regarding international assignment selecting process, knowing why on the cause of expatriate failure, then only Proton’s IHRM would be able to come out with a strategic International HR Management approach that could minimize the cost and failures of international assignment. Table of Content Page 1.0 Introduction 4 2.0 International Staffing Policies 5 3.1 Ethnocentric Approach 5 3.2 Polycentric Approach 6 3.3 Region centric Approach 7 3.4 Geocentric Approach 7 3.0 International Assignment Selection 8 3.1 Technical Competency 8 3.2 Personal Traits 8 3.3 Ability to...
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...Proton Issue in Malaysia 1 Introduction This paper investigates the background, history, problems emerged and ways to improve of Proton cars in Malaysia. The objective of this paper is not only to find out the problems faced by Proton, but also to discuss the ways in order to improve the Proton reliability and retrieve the supporter’s heart to keep using Proton car in the automotive sector. However, in this competitive time where there are a lot of so-called competitors such as Hyundai, Toyota, and Perodua no matter foreign or local brand cars had caused the Proton car buyers to reduce significantly. This phenomenon occurred not merely because of the high quality of other cars; it also ascribed by Proton’s problems itself. This can be seen as the issues of Proton had been argued for a long time for its function problem, for example. Consequently, the Proton buyers tend to address dissatisfied with it, complains about the unreliable of Proton as well as do not support the Proton cars continuously. The production of a so-called ‘national car’- Proton has been concerned nowadays. They should improve their technology skill and service to gain back customers’ confidence. 2 Background Starting from 1979, Malaysia's Father of Modernization, Tun Dr. Mahathir bin Mohamad, who was the Deputy Prime Minister at that time, suggested the idea of establishing an automotive assembling and manufacturing industry in our country. Tun Dr. Mahathir was the...
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...be more concern in business operation and interaction with stakeholders. According to Starbucks (2004), a responsible company is the one who always listen to the stakeholders and response honestly with concern. Stake holders can be categorise as a person, organisation or a group that has interest or related in an organization. Examples for stakeholders are directors, creditors, employees, shareholders, supplies, government, the community and unions. Proton 1.2 History of Proton Malaysia PROTON (Perusahan Otomobil Nasional Berhad) started their very first business on May 7, 1983 and main in manufacture, sell motor vehicles and related products, which including spare parts accessories for vehicles and other components. As a very memorable history, the first car that produced by PROTON is Proton Saga (Appendix 1), which is launched on July 9, 1985. The original idea that conceived the Malaysia car is actually by a Malaysian, his name is Dato’ Seri Mahatir Mohamed, which is prime minister from Malaysia. The main office for Proton is in Shah Alam, with an area of 923 900 square metres and originally designed a capacity of 80 000 units per year. Moreover, the capacity has been increased to 230 000 units per year in 1997 and with the construction of medium value factory, which located next to the main office. Proudly to announce again, today, the...
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...STRATEGIC MANAGEMENT SCL#3: The automotive industry in Malaysia PREPARED BY: marziana basir gm04459 SYAZwANI MUSTAFA gm04625 johan adam leong gm04319 FADZILLA ZAHRA SAMIAN GM04550 PREPARED FOR: SR. DR. HJ MAZLAN HJ HASSAN Graduate School of Management Universiti Putra Malaysia Q1. View this industry through the eyes of a CEO. Which would you regard as the three most important opportunities or threats to Mahathir’s idea? Reputation and consumer impression Merger between both Malaysia carmakers will improve the reputation of Malaysia carmaker in world’s eyes. With both manufacturers has its’ own Japanese counterparts (Mitsubishi for Proton and Daihatsu for Perodua), it will further boast the consumers’ impression of a combined quality from both makers in developing countries especially in ASEAN region. Merger can be seen as the platform for a united and consolidated effort for refinement in terms of technologies and quality control on each end product. Example is that using proven Mitsubishi’s robust engine development coupled with Daihatsu or Toyota’s ways of manufacturing and quality control (Kaizen) by utilizing the cheaper local Malaysia resource and facilities. The end product can be seen as a reliable piece of vehicle produced in the most efficient manner with lower cost and yet achieving the international standards recognition (i.e., EURO NCAP 5 start ratings). Total domination of the Malaysia automotive market Both car makers if merged may impose...
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...Proton: Its Rise, Fall, and Future Prospects For Dato’ Haji Syed Zainal Abidin Tahir (Syed Zainal, hereafter), Managing Director of Proton, recent headlines such as “Auto Sector Faces Numerous Challenges” and “European Carmakers Zoom in”[1] were simply reminders of the challenges his company faced. Proton had been troubled by its declining share of the domestic auto market (Exhibit 1) and consequent dwindling profits and margins. Without taking into account the government’s R&D grant in 2007/2008, the company suffered three straight years of losses from 2007 to 2010. Its finances recovered a little in 2009/2010, thanks to the government’s “cash for clunkers” incentive programme, a MYR143 million (USD48 million)[2] R&D grant from the government, and some improvement in sales. However, its net profit margin barely reached 3% — very low by industry standards — and most of its performance measures lagged behind those of the industry leaders (Exhibits 2 and 3). The stock price of Proton’s listed parent, Proton Holdings Berhad (Proton Holdings Limited), had been substantially lower than its net asset value for several years (Exhibit 3). Because of its low market to book ratio and the heavy government subsidies paid to Proton, Mr. Syed Zainal was under tremendous pressure to turn around Proton’s performance. Adding further pressure, the changing institutional environment had exposed Proton’s inability to compete. Since 2005 when the government committed to reducing import tariffs...
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...OVERVIEW Proton Holdings Berhad (PROTON) is a Malaysian automobile manufacturer. It is headquartered in Shah Alam, Selangor and operates an additional manufacturing plant in Tanjung Malim, Perak. The company was established in 1983 as the sole national car company following the wishes of former Prime Minister Tun Mahathir Mohammad until the advent of Perodua in 1993. Proton is a Malay acronym for Perusahaan Otomobil Nasional Sendirian Berhad. (National Automobile Company Private Limited). At first, parts and technology came from Mitsubishi but later on, as experience accumulated, Proton became independent even if most of the cars were still based on Mitsubishi models. Their first model which was launched in 1985 was called the Proton Saga. Soon after the first Sagas were rolling on Malaysian streets, exports started to Bangladesh (1986) and by 1987 Proton had already made 50,000 units. That same year a distribution agreement with a UK dealer was made in order to ship Sagas over to the British Isles but that would materialize only in 1989, when 150,000 units were already produced and plans for engine assembly plant were already under way, the inauguration being celebrated in 1991. A new model, the Proton Iswara was launched in 1992 and then in 1993 the Wira, a model based on the Mitsubishi Colt, which enjoyed moderate success with 220,000 units sold over 2 years. In 1994, the Proton Satria joined the model line-up and in 1996 the Proton Tiara. With thousands of models sold...
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...MARKET SUMMARY Proton is the Malaysian national automobile manufacturer (Malay acronym for Perusahaan OTOmobil Nasional, 'National Automobile Enterprise'), which was established in 1983 under the direction of the former Prime Minister, Dr. Mahathir Mohamad. Proton Holdings Berhad, the holding company, is listed on the Bursa Malaysia. Based on technology and parts from Mitsubishi Motors, production of the first model, the Proton Saga began in September 1985 at its first manufacturing plant in Shah Alam, Selangor. Initially the components of the car were entirely manufactured by Mitsubishi but slowly local parts were being used as technologies were transferred and skills were gained. The 100,000th Proton Saga was produced in January 1989. Until the end of the 1990s, the car's logo featured the crest from Malaysia's coat of arms, featuring a crescent and a fourteen-pointed star. The new Proton logo features a stylized tiger head. In 1993, a model called Proton Wira was introduced based on the Mitsubishi Lancer/Colt. More than 220,000 units were sold between 1996 and 1998. Proton Perdana, based on the Mitsubishi Galant/Eterna, was first produced in 1995, intended for higher end market. The Proton Waja (Proton Impian in UK), which launched early 2001, is the first car model designed internally by Proton. By 2002 Proton held a market share of over 60% in Malaysia, which was reduced to barely 30% by 2005 and is expected to reduce further in 2008 when AFTA mandates reduce import...
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...MARKET SUMMARY Proton is the Malaysian national automobile manufacturer (Malay acronym for Perusahaan OTOmobil Nasional, 'National Automobile Enterprise'), which was established in 1983 under the direction of the former Prime Minister, Dr. Mahathir Mohamad. Proton Holdings Berhad, the holding company, is listed on the Bursa Malaysia. Based on technology and parts from Mitsubishi Motors, production of the first model, the Proton Saga began in September 1985 at its first manufacturing plant in Shah Alam, Selangor. Initially the components of the car were entirely manufactured by Mitsubishi but slowly local parts were being used as technologies were transferred and skills were gained. The 100,000th Proton Saga was produced in January 1989. Until the end of the 1990s, the car's logo featured the crest from Malaysia's coat of arms, featuring a crescent and a fourteen-pointed star. The new Proton logo features a stylized tiger head. In 1993, a model called Proton Wira was introduced based on the Mitsubishi Lancer/Colt. More than 220,000 units were sold between 1996 and 1998. Proton Perdana, based on the Mitsubishi Galant/Eterna, was first produced in 1995, intended for higher end market. The Proton Waja (Proton Impian in UK), which launched early 2001, is the first car model designed internally by Proton. By 2002 Proton held a market share of over 60% in Malaysia, which was reduced to barely 30% by 2005 and is expected to reduce further in 2008 when AFTA mandates reduce import...
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...1.0 Introduction 1.1What is Supply Chain? The concept of the supply chain is evolved from the extended production concept. In the modern education of supply chain management is definition as Supply chain is built around the core business, through the business flow, information flow, logistics, capital flow controls, starting from the procurement of raw materials, intermediate products and final products madeof, and finally by the sales network to deliver products to consumers in the hands of the vendor , manufacturers, distributors, retailers, until the end users together into a whole functional network chain structure. The philosophy of supply chain management is from the perspective of consumers through collaboration between enterprises and seeking supply chain optimization. Lean collaboration Toyota's suppliers will be treated as an integral part of the activities of production activities be controlled and coordinated. According to the Harrison, supply chain is the implementation of the procurement of raw materials, convert them into intermediate and finished products, and sell the finished product to the user's functional network chain. According to the Steven, through value-added processes and distribution channels controlled from the supplier to the user's stream is the supply chain, which starts at the source of supply, ends at the end of consumption. Therefore, the supply chain is through the plan, obtain, store, distribution, interface, service and other such...
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