...from traditional to strategic purchasing which aims to reduce the cost of the purchase and that might imply standardization of components, delivery time and levels of inventory. This effort will usually include key suppliers as joint problem solvers and with these problem-solving models to work with; the firm’s attitude towards suppliers may change from confrontation to trust and partnership. From the buyer-supplier relationship perspective, the procurement practice of the buyer is critical and acts as a window to nurture the supplier development effort. This article presents the result of a study on supplier development in the Malaysian automotive industry, which focused on PROTON, and its role in developing the suppliers’ relationships and development. This study indicates that PROTON and its suppliers’ development program plays a crucial role in developing and extending comprehensive support to its supplier’s firm such as supplier selection and appointment, development, match making, and promoting continuous performance development and improvement programs. Keywords: Supplier chain management, supplier relationship management, supply chain management, value chain, automotive industry *Corresponding author. Tel: 03-89467736 Email: abunaqib@econ.upm.edu.my 29 International Journal of Economics and Management INTRODUCTION In today’s competitive business climate, buying firms...
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...FTA: The upcoming challenges to the Malaysian automotive industry AFTA and Malaysian car industries Proton and Perodua are really going to feel the threat of AFTA if they are not prepared by the year 2005. Government has helped them by deferring the AFTA from 2003 to 2005. So now it is up to the local manufacturers to come out with their own remedies to face AFTA. The truth fact is that nobody can escape from liberalization of car industry in this region. From my opinion, Proton has already started preparing for AFTA. But is it enough? Sales have been projected to drop significantly for Proton once AFTA is implemented. One of the measures taken by Proton is in R & D sector. They have come up with first Malaysian design car. This is a milestone in Proton, which was realized using latest technology like Rapid Prototyping and commitment by the employees. Proton is also doing research and development with Lotus engineering and Petronas-Sauber Formula 1 team to come up with own engine. This moves in R &D sector is very important for them. Now they can show their own identity to the world rather than copying prototype of Mitsubishi cars. They have changed to a new logo that will give them more precise identity. Perodua still lack in this field, they still come out with Daihatsu prototype cars to manufacture in Malaysia. Local manufacturers have to come with their own identity or brand if they want to penetrate the ASEAN market. In order to have own identity, they need...
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...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 companies. There are four main barriers to entry including, economies of scale, brand loyalty, absolute cost advantages and government regulation. In Malaysian automotive industry, we shall take a look at each factor separately. There is no doubt that Proton’s Persona and Perodua’s Myvi model cars made a huge impact in the industry. Because of mass production, such as Proton claims that...
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...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 activities between customers and suppliers formed thereby enabling businesses to meet internal and external customer needs. A typical Supply Chain flow of goods is shown above. In some models, the product is shipped from the Manufacturer to the Distribution Center as soon as it is manufactured. In other models, such as a Hub & Spoke model, the product is held at the manufacturer...
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...Business environment factors – INTERNAL (SWOT) Overview of internal business environment. Identify and describe the internal factors in details. How the environments affect the running of the business The internal and external environment is constantly changing and has significant effects towards the operation and profit level for a company. Therefore, it is important to conduct the situational analysis in order to improve the understanding of the various factors that affecting the company as well as the position and market share. For now as we are researching on this company PROTON which is in the automotive industry and known as the first Malaysian car manufacturer. We are going to use the SWOT analysis to effectively organized information obtained from the market situation assessment. The SWOT analysis organizes the information from the situation assessment into four categories. Strengths and weaknesses represent the internal assessments of the firm’s current capabilities. However, opportunities and threats are external assessments which analyse a firm’s performance. Strengths are the qualities that enable us to accomplish the organization’s mission. These are the basis on which continued success can be made and continued/sustained. Strengths can be either tangible or intangible. Strengths are the beneficial aspects of the organization or the capabilities of an organization, which includes human competencies, process capabilities, financial resources, products and...
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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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...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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...COLLEGE OF BUSINESS MANAGEMENT AND ACCOUNTING SULTAN HAJI AHMAD SHAH CAMPUS MUADZAM SHAH, PAHANG ACSB 413 CASE STUDY “PROTON –FROM SAGA TO EXORA” PREPARED BY: BIBI SHAZREENA BINTI NOORZILA AC087143 MUHAMMAD SYAFIQ RAZELIN BIN ANIS ROZIDI AC088438 NOR AIME BINTI MOHD NOR AC088220 NURAINI BINTI ABDUL AZIZ AC088484 PREPARED FOR: SIR AZWAN ABDUL RASHID COMPANY BACKGROUND PERUSAHAAN OTOMOBIL NASIONAL BERHAD or PROTON was incorporated on May 7, 1983 to manufacture, assemble and sell motor vehicles and related products, including accessories, spare parts and other components. PROTON produced Malaysia’s first car, the Proton SAGA which was commercially launched on July 9, 1985 by Malaysian Prime Minister, Dato’ Seri Dr. Mahathir Mohamad who conceived the idea of a Malaysian car. PROTON was publicly listed on the Kuala Lumpur Stock Exchange (KLSE) in 1992 and its shareholders include Khazanah Nasional Berhad, Petroliam Nasional Berhad, Mitsubishi Corporation, Mitsubishi Motors Corporation, Employee Provident Fund Board and other local and foreign investors. Proton Holdings Berhad, through its subsidiaries, manufactures, assembles, and sells motor vehicles and related products primarily in Malaysia. It also involves in the importation, distribution, and wholesale of motor vehicle and related parts; development and management of properties, as...
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...customer relationship in ways that benefit the organization and its stakeholders (Kotler et al.,2007). Marketing is a holistic process encompassing prior and after the act of selling applicable to any organization, large or small, for-profit or non-profit, domestic or global. Marketing itself is an evolutionary process starting off from consumer goods marketing all the way to electronic marketing of current times. Marketing professionals have also capitalized on viral marketing in recent times. This marketing report analyses the marketing approach and challenges of Perusahaan Otomobil Nasional Kedua (PERODUA), Malaysia second national car manufacturer. The report explores and benchmarks the company marketing activities against the... Proton Vs Perodua Case Study # ROTON: THE CASE STUDY New Ventures Innovation Research & Development Capitalizing on Human Asset OR ANOTHER RE-STRUCTURING??? # IR: THE CASE STUDY PERODUA...
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...1.0 INTRODUCTION Just a few years after independence from the United Kingdom in 1957, had the World Bank’s country‐classification system been in place, Malaysia would have qualified as a middle‐income country. Since then, it has continued to enjoy relative prosperity, initially as a commodity exporter of rubber, tin, then palm oil and petroleum, with total income rising at 6 to 7 percent each year from 1970 until 2000. As a result, industrial sector in Malaysia has been rapidly grow over the past few dacades. Industrial sector can be define as a category of stocks that relate to producing goods used in construction and manufacturing. This sector includes companies involved with aerospace and defense, industrial machinery, tools, lumber production, construction, cement and metal fabrication. Performance in the industrial goods sector is largely driven by supply and demand for building construction residential, commercial and industrial as well as the demand for manufactured products. When the economy contracts and consumers save more and spend less, activity in this sector drops because companies will postpone expansion and produce fewer goods. The industrial sectors are drawn for each contain a mixture of international corporations, national companies, entrepreneurial smaller and medium-size enterprises (SMEs) and informal local businesses. Each part of a sector may have different impacts and dependence on economics activity. In many of the examples, the...
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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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...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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...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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...TABLE OF CONTENT Page 1.0 Introduction 2 2.0 Thomas-Kilmann Model 3 2.1 Competing 4 2.2 Collaborating 4 2.3 Compromising 5 2.4 Avoiding 5 2.5 Accommodating 6 3.0 Example of Thomas-Kilmann Model Modes 3.1 Competing Component 7 3.2 Collaborating Component 7 3.3 Compromising Component 8 3.4 Avoiding Component 8 3.5 Accommodating Component 9 4.0 Conclusion 10 5.0 APA References 11~12 1.0 Introduction The purpose of this report was to critically analysis the Thomas – Kilmann Conflict Modes Model. In this report, student needed to discuss of the principles...
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