PPB3033 Introductory Management

Assignment 2

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CONTENT

NO. ELEMENTS
1 Introduction
2 Background
3 Organization Structure
4 Performance
5 Leadership
6 Corporate Social Responsibility
7 Innovation And Control
8 Analysis Of The Selected Companies’ Competitive Advantage In
Its Industry
9 Recommendation
10 Conclusion.

11 References

INTRODUCTION

More and more individuals have become concerned with their quality of life and have

started to become more physically active.For this statement definitely the food is the most

important part in our life or in daily routine. Without Food we cannot survive.For a change

we choose Apollo Holdings and Oriental Food Industry Sdn Bhd because we think it easy

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and different from others. These companies are most popular among other companies which

the products sold worldwide. Apollo Holdings and Oriental Food Holdings are the leading

companies. The companies also produce their product based on quality and safe

environmental. The most important thing is health to have it in their customer daily

life.Apollo choclotate layer cake is the most favorites cakes among our children which make

them happy to eat. Apollo Layer cake also is easy to bring anywhere and delicious too.

The quality of the product is crucial because creates a customer satisfication.Even when

all other elements of the marketing strategy are in line with the market, if the quality of the

product is low, the customer will not be satisfied and will stop buying the product. The

companies developing creative visual content which is the great way to reach customers

about their product. We choose these companies because it something interesting and excited

to learn some new things. There are many great companies out there, but these companies are

more feasible than others.Most people that begin research have an end goal in mind. Being an

academic, our goal is to get something worthy to our assignments. We think these two

companies have the criteria–criteria that we have stated above.

BACKGROUND

Apollo Food Holdings Berhad is a holding company, which is engaged in the provision of

management services to subsidiaries. The company was founded on March 5, 1993 and is

headquartered in Johor Bahru, Malaysia. Apollo Food Industries (M) Sdn Bhd, which is

engaged in manufacturing and trading in compound chocolates, chocolate confectionery

products and cakes, and Hap Huat Food Industries Sdn BHd , which is an investment holding

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company is Keynote Capital Sdn Bhd. It operates in two segments: investments holding and

manufacturing, marketing and distributing in compound chocolates, chocolate confectionery

products and cakes. It offers products in two categories: Chocolate Wafer products and Layer

Cake, Chocolate Layer Cake and Swiss Roll products. It distributes its products in Malaysia

and other overseas market including Singapore, Indonesia, Thailand \, Philippines, Vietnam,

China, Hong Kong, Taiwan, Japan, India, Middle East, Mauritius and Maldives. Its

subsidiaries include The Company aim is always fulfill the customer needs and requirement

by using the latest equipments and technology.

Oriental Food Industries Holdings (“the Company” or “the Group”) has made its mark in

the snack food and confectionery manufacturing industry today as one of the companies

holding the leading position in the said industry in Malaysia. The Group remains focused on

placing the needs and interests of its customer first by manufacturing an assortment of snack

food and confectionery products that focuses on quality. Oriental Food Industries Sdn Bhd

was established and incorporate in 1978. From their modest beginnings, they have made their

mark in the food manufacturing industry today holding the leading position in the snack food

and confectionery industry in Malaysia. The Group has various product brand names, most

of which are commercially strong and generating the required sales and profit both locally

and oversea. Super Ring, Jacker, Rota and Oriental are currently well known household brand

names in Malaysia. Generally our products can be divided into four (4) broad categories,

which are snack food, wafer, potato snacks and bakery products. Generally these products

can be divided into four (4) broad categories, which are snack food, wafer, potato snacks and

bakery products.

To name a few, their product brand names like Rota, Super Ring, Jacker, and Oriental are

well-known household brand names n Malaysia. They have various product brand names,

most of which are commercially strong and generating the required sales and profit. In a

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crowded marketplace, they remain focused on placing the needs and interests of our

customers’ first by manufacturing products that focuses on quality. In a highly competitive

and saturated market and in order to have a distinct edge over competitions, the company

keeps abreast with the latest technical developments and manufacturing processes using

modern machinery for the increase in productivity and efficiency. They believe that the key

focus for success in this business depends on product quality, product range, research and

development, a highly quality workforce right from top management to the operator level,

sound marketing strategy, effective sales and advertising policies, competitive pricing, good

domestic and international distribution network and most importantly the commitment to

excellence in all aspects of the company business all of which are being implemented and

practiced in their organization. Their overseas business is an important engine for their

continued growth. In line with their aggressive global marketing plans, their products are

being distributed throughout the world with the number of international distributors expected

to increase substantially. The key is to constantly innovate and continually improve them in

order to sustain their position in this industry.

ORGANIZATION STRUCTURE

According to research, Apollo Food Holdings Bhd’s organization structure consists of 10

people which are the chairman who are also the managing director, executive director, non-
independent executive director, non-independent non-executive director, co-secretary,
director-sales & marketing and senior sales executive. Apollo Food Holdings Bhd, has a
functional organization structure type, where employees are given works according to a
specialized or similar set of roles or tasks. By using this organization structure, Apollo Food
Holdings Bhd can bring about in-depth knowledge and skill development among the

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employees, this help Apollo to achieve their goals. This can be an ideal structure for Apollo
because it focusses on one industry (sugar confectionery industry) because they can
maximize performance by encouraging peer cooperation among different units at various
levels of management through supervision and coordination. Furthermore, Apollo directors
having salary increment based on their performance and other emoluments.

CHAIRMAN &
MANAGING
DIRECTOR
Liang Chiang Heng

CO-SECRETARY
Santhi Saminathan
Chee Yin Wong

EXECUTIVE
DIRECTOR
Liang Kim Poh

INDEPENDENT DIRECTOR-
NON-EXECUTIVE SALES &
DIRECTOR MARKETING
NON-
Abdul Rahim INDEPENDENT EXECUTIVE
Bunyamin NON-EXECUTIVE Andrew Liang
Ng Chet Chiang DIRECTOR
Aminah Hashim Venugopal Menon
SENIOR
SALES
EXECUTIVE
As well as Apollo Food Holdings Bhd, Oriental Food Industries Holdings Bhd’s are also
Terence Wang
using functional organization structure type where the functions are the same as Apollo. OFI
consists of 9 people which are, the chairman, managing director, executive director, non-
independent non-executive director, independent non-executive director, secretary and
accountant. In addition, OFI having functional type organization structure makes it possible
for employees to be highly motivated because the employees are given training and given
opportunity to advance their careers as they move up within the hierarchy as the main goal of

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OFI is also to bring the entire human and informational resources together to meet the
organization’s goals.

CHAIRMAN
Azizan bin
Hussain

SECRETARY
Karina Chong
Mei Ying

MANAGING
DIRECTOR
Son Chen Chuan

EXECUTIVE
DIRECTOR
Son Tong Leong
Son Tong Eng

ACCOUNTANT
INDEPENDENT NON-
NON- Yap Siew Kuon
INDEPENDENT
EXECUTIVE NON-
DIRECTOR EXECUTIVE
Jeffery Ong Cheng DIRECTOR
Lock Lim Keat Sear
Lim Hwa Yu
PERFORMANCE

Maintain neutral with a lower target price (TP) of RM3.59: Apollo Food Holdings Bhd’s
results were below expectations due to the lower-than-expected sales in both local and export
markets. Post results, we cut our financial year 2019 (FY19) and FY20 earnings forecasts by
11% and 13% to reflect our more conservative sales growth assumptions. Despite the

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lacklustre sales growth and lack of growth drivers, we believe its generous dividend payout,
backed by a sturdy balance sheet, would continue to support the share price.

Apollo Food’s FY18 (April) core net profit of RM12.4 million (-30.5% year-on-year [y-o-y])
was below our expectations, accounting for just 77% of our full-year forecast. The negative
deviation could be attributed to the lower-than-expected sales in both local and export
markets. This could be due to the soft market conditions as well as intense competition, in our
view. The group has proposed dividend per share of 20 sen (FY17: 25 sen), which implies a
yield of 4.8%.

Y-o-y, FY18 revenue fell 8.7% to RM190.8 million, as both local and export markets
recorded softer sales, for the above-mentioned reasons. The FY18 gross profit margin
expanded by 0.8 percentage point to 21.2%, driven, we believe, by more favourable cost
dynamics. However, the FY18 core net profit (after adjusting for RM1.3 million in disposal
loss) still slumped, on the back of the lacklustre sales. Cash-rich Apollo Food Holdings Bhd
earnings jumped 84.8% to RM7.65mil in the second quarter ended Oct 31 from RM4.14mil a
year ago as it benefited from higher sales and lower operating costs.It said in a statement its
revenue increased 15.6% to RM52.27mil from RM45.21mil. Earnings per share were 9.56
sen compared with 5.17 sen a year ago.

The confectionery manufacturer had cash and cash equivalents of RM72.92mil as at Oct 31
compared with RM56.59mil as at April 30. Retained profits rose to RM145.24mil from
RM129.57mil.For the first half, its earnings jumped 113.6% to RM15.66mil from RM7.33mil
while revenue rose by 17.5% to RM111.08mil from RM94.50mil. Cash generated from
operations increased to RM22.91mil from RM12.68mil as at Oct 31, 2011.

On its outlook, Apollo said despite a recent fall in the prices of certain raw materials, the
prices of key materials remained high, which would affect the input cost.“The group’s
operating environment is therefore expected to remain challenging and competitive.
Nevertheless, the board is optimistic that the performance of the group will remain
profitable,” it said.

Oriental Food Industries Holdings Bhd (OFI)

 Maintain hold with an unchanged target price (TP) of RM1.61: Core earnings are in line

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with expectations. Oriental Food Industries Holdings Bhd recorded a second quarter ended
Sept 30, 2017 (2QFY18) core net profit of RM4.8 million (including foreign exchange
[forex] loss of RM700,000 during the quarter).

This brings its first half of FY18 (1HFY18) core net profit to RM8.9 million, which is 10.1%
higher year-on-year (y-o-y) and the results are within our forecast as it constitutes 46% of our
full-year earnings estimate.

On a y-o-y basis, Oriental Food achieved a lower reported net profit in 2QFY18 (-20.4%)
mainly due to higher marketing and promotional expenses coupled with the forex loss amid a
better top line of +22%.Also, we believe that the higher operating and administrative
expenses were related to lower operational efficiency due to shortage of foreign labour and
hiring costs in view of its expansion of production lines.

Excluding the impact of forex fluctuations, the group achieved a higher core net profit of
7.4%. Similarly, Oriental Food Industries’ 1HFY18 reported net profit was down by 20% y-
o-y as it was affected by the above-mentioned reasons. Having said that, the group managed
to achieve a better core net profit of +10.1% y-o-y after excluding the forex factor.

On a quarter-on-quarter (q-o-q) basis, the higher core net earnings (+19%) were mainly
attributable to tax incentives granted as well as deferred tax asset provision for certain
temporary differences.Oriental Food chalked up better export sales (Asia-Pacific: +34.4% y-
o-y, +16% q-o-q; Others: +91% y-o-y, +65.6% q-o-q) as compared with local sales in this
quarter (-25.2% y-o-y, -28.3% q-o-q).Similarly, for 1H geographical breakdown on revenue,
the export market (Asia-Pacific: +18.9%; Others: +36.5%) significantly outgrew local sales (-
6.4%).Despite the relatively high raw material costs and shortage of labour, the group still
managed to perform well in its gross profit margin (2QFY18: +2.2 percentage points [ppts] y-
o-y and q-o-q; 1H: +0.7ppts).We envisage the group to deliver slightly better earnings in
2HFY18 underpinned by strong export sales and the introduction of its new biscuit product
by the end of this year.As usual, the group will announce dividends for every quarter of the
year. It has proposed an interim dividend of one sen per share for this quarter.

LEADERS & LEADERSHIP

Apollo Food Holdings Bhd

Liang Chiang Heng -Executive Chairman

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 He was appointed as Managing on 20 March 1996 and Executive Chairman on 21
July 1998.He joined Appolo Group since 1979 and the group’s business has grown and
expanded within a short period of time under his leadership.He is also a member of the
remuneration committee.Mr.Liang Chiang Heng was awarded an Honorary phD in Business
Administration fro the Wisconsin International University.He currently sits on the Board of
several private companies.He also act as counsellor, adviser and listener to the Chief
Executive and, where necessary,other members of the Board.

Liang Kim Poh - MD & Non-Independent Executive Director

Mr.Liang Kim Poh was appointed as an alternative director on 20 March 1996 and
subsequently to the board on 21 July 1998.Presently,he serves as the sales FDorector of
the Group and also sits on the Board of several private companies.He always Develop and
implement strategies aiming to promote the organization’s mission and
“voice”.Moreover, he always create complete business plans for the attainment of goals
and objectives set by the board of directors and build an effective team of leaders by
providing guidance and coaching to subordinate managers.

Ng Chet Chiang Independent not executive director

Mr.Ng Chet Chiang was appointed to the Board on 20 March 1996.He was appointed
as chairman of the Audit Committee on 9 May 1996.He is also a member of the
Remuneration and Nomination Committees.He is an associate member of Malaysian Institute
of taxation.He was a licensed company secretary.He started his career as a tax officer with
the Inland revenue board before setting up his own tax and secretariak practices in 1982.He
currently sits in the Board of several private companies. He is more responsible for the
management,the development and effective performance of the Audit Committee and
provide leadership to the Board of Directors for all aspects of the Audit Committee’s
work.He also acts as the spokesperson for the Audit Committee.He always try to operate in
energetic and hectic office environments.

Datuk P.Venugopal a/l V.K.Menon - Non-Independent Non-Executive Director

Datuk. P.Venugopal was appointed to be Board on 12 October 1998.He is a member of the

Audit,Remuneration and Nomination Commitess.He was an officer of the Malaysian

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Administrative in Dilomatic Service for over 32 years and served in several ministries and
departments and held various positions including Deputy Director General of MAMPU and
Acting Secretary General of Ministry of Health.He subsequently held the positionsof Chief
Executive Officer in the National Cancer Council(MAKNA)and Chief Executive of a
regulatory body called SIHAT Sdn.Bhd.He is currentl an appointed member of Malaysian
Instidute of Integrity.He will evaluate the board of directors of its respective firm and
examine the skills and characteristics needed in board candidates in the company.He is also a
friendly person in his company.He loves to ne jouvile with all over the company so that this
will help for cmpany’s growth.

Abdul Rahim Bin Bunyamin - Independent Non-Executive Director

Mr.Abdul Rahim was appointed to the Board on 14 December 2001.He is member of the
Audit,Remuneration and Nomination Commitees.Mr.Abdul Rahim is fellow Member of the
Association of Chartered Certified Accountants,UK(ACCA).He had extensive working
experiences in the field of corporate finance,having been attached with a reputable merchant
bank and he also sits on the board of several locally and oversea incorporated companies.

Datin Paduka Hjh Aminah Binti Hashim - Independent Non-Executive Director

Datin Pduka Hjh Aminah was appointed to the Board on 31 October 2006.She is member of
the Audit,Remuneration and Nomination Committees.She provided her services from 1972 to
2003 by serving and holding different job positions in various Johor State Government
Corperation,and Johor Lands and Mines Office.Her last post was being the Director General
of Lands and mines at Johor Lands and Mines Office in 2003.She helps the company in
improving corporate credibility and governance standards. ET gives you in-depth knowledge
about the independent directors and how they help in growth of a company.

Oriental Food Industries Holdings Bhd (OFI)

Mr. Lim Hwa Yu (25,26 April 2017)

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• An Overview of MPERS – Part 2: Practical Approach to Recognistion and Measurement
principles including Updates • Income Tax & GST Implication and Application
Leveraging the New Companies Act 2016

Datuk Son Tong Leong (8 September 2016)

• ISO 22000 Food Safety Management System • Good Manufacturing Practices (GMP)

Mr. Lim Keat Sear (8 September 2016)

• ISO 22000 Food Safety Management System • Good Manufacturing Practices (GMP)

Datuk Son Tong Eng (8 September 2016)

• ISO 22000 Food Safety Management System • Good Manufacturing Practices (GMP)

Datuk Jeffery Ong Cheng Lock (8 September)

• ISO 22000 Food Safety Management System • Good Manufacturing Practices (GMP)

In 1999,Mr. Lim Hwa Yu serves as Independent Non-Executive Director at Oriental Food

Industries Holdings Bhd since February 23, 1999. He is also a member of the Audit
Committee and Remuneration Committee.He was known to say that if you talk to people in
their own language and you do it well, they’ll say, “God, he said exactly what I was
thinking.” And when your people begin to respect you, he claimed “they’ll follow you to the
death,” metaphorically speaking.He has the ability to take the right decision at the right time.
Decisions taken by leader like him have a profound impact on masses.Although,he take
decisions on his own, but it is highly recommended that consult key stakeholders before
taking a decision.Mr. Lim qualified as an Accountant from the United Kingdom in 1979. He
is a Fellow of the Chartered Association of Certified Accountants, United Kingdom, Fellow
of the Institute of Taxation, United Kingdom and a Member of the Malaysian Institute of
Accountants. He is a partner of a public accounting firm, H.Y. Lim & Co. He has experience
in the field of corporate planning and management.He more likely to communicate with
employees.The workers have give interview about Mr.Lim Hwa Yu that he loves to do walk
talk when employees doing their work just to clarify all goes smooth.

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Now 2018,Datuk Son Chen Chuan has been re-designated as Group Managing Director and
Executive Director at Oriental Food Industries Holdings Bhd. He is also a member of the
Nomination Committee. Mr. Son is the founder of the Company and its subsidiaries. One
leadership quality of a great leader is the ability to solve problems.He face challenges all of
the time so they must be able to assess the challenge, find possible solutions (and
consequences associated with those solutions), and select the best possible solution. He is the
driving force of the Group. With his decade long experience in the industry and knowledge
gained through the years, he formulates and implements the Group’s corporate strategy. He
also develops new products for both local and overseas market, ensuring that the quality of
products and packaging are high, keeping close contact with the local and overseas
distributors to obtain suggestions and feedback on the OFI products.His experience is playing
a big role in the food industry currently.Here,he is more likely to motivate employees during
work and always supports them in any case.From his perspective,motivated employees will
always increase the productivity as well and most likely to do that effectively.

Shareholders and investors’ relationship is a matter of importance today. Effective

communication will help to enhance the confidence of the shareholders and investors towards
the Company. The Board communicates information on operations, activities and
performance of the Group to the shareholders, investors and public via the following,the
Annual Report, which contains the financial and operational review of the Group’s business,
corporate and financial information and the information on the Board and
Committees,various announcements made to Bursa Malaysia Securities Berhad, The website
of the Company which provides the updated information of the Company such as products
and activities.The AGM represents the principal forum for dialogue and interaction with all
shareholders. At each AGM, the Board presents the progress and performance of the Group’s
business and invites shareholders to participate in the question and answer session.

CORPORATE SOCIAL RESPONSIBILITY

According to research, Apollo Food Holdings Bhd is committed to be a successful and

responsible corporate citizen by not just delivering quality products and services and
generating attractive returns to the customers and shareholders, but also recognising the

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corporate social responsibility to ensure that they conduct the business in an ethical,
professional and socially responsible manner. This social responsibility is delivered mainly
for the employees, business associates, community and as well as the environment.vApollo
Food Holdings Bhd endeavoured to safeguard the welfare of its employees by recognising
them as an important asset. Occupational Safety and Health Programme have been
established to provide a safe and healthy workplace and environment for the employees and
visitors. Employees are also provided with the necessary training on an ongoing basis to
further enhance their skills and knowledge. On community welfare, Apollo Food Holdings
Bhd has from time to time donated cash and sponsored company products to various
organizations, associations and school for them to carry out their activities. Apollo also
adheres strictly to all applicable environmental laws and regulations. Productions process are
being constantly monitored and upgraded to ensure compliance with any charges in the
environmental laws and regulation. Employees are encouraged to reduce wastage in operation
and office resources at all times. Besides, Apollo also committed to seek continuous
improvements in the operation and production to minimise any negative impact on the
environment.

Oriental Food Industries Holdings Bhd (OFI) recognises the importance of corporate
social responsibility and has taken a proactive whenever possible to provide monetary and
products contributions to government departments, non-profitable and charitable
organisations. OFI also organises educational factory tours for various educational and
government institutions. Furtherance, to the above, in support of the local institutes of higher
learning, OFI accepts undergraduates to perform their industrial training in various
departments at the factories owned by OFI. At company level, OFI hosts its annual dinner for
all its local and foreign employees to foster good relationship and harmonious ties between
all level of employees of all races and as a token of recognition from the Top Management
for the commitment and dedication of the employees.

INNOVATION & CONTROL

Apollo Food Holdins Berhad is a holding company,which is engaged in the management

services provision to subsidiaries.It operates in two segments:investment holding and

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manufacturing,marketing and distribution,which is engaged in manufacturing,marketing,and
distributing in compound chocolates,products of chocolate confectionery and cakes.It offers
products in two categories:chocolate wafer products and layer cake and swiss roll product.It
distribute in product in Malaysia and other overseas market.Its subsidiaries include Apollo
Food Industries Sdn Bhd,which is an invertment holding company. We also accommodate
industrial trainees from local institutions to assist these students to be exposed in real work
environment and gain valuable experience and at the same time.In addition, we practice
ethical labour by treating employees fairly and ethically.We have at all times try our very best
to commit ourselves in social, economic and environmental responsibilities. Apart from
focusing on profitability to optimize shareholders’ value, we also acknowledge that our role
in society has never been more important without expecting anything in return.

Implement and maintain the quality management system and continually improve its
effectiveness.Produce the products with top quality of raw & packaging materials.Using
world class wafer and layer cake manufacturing machinery from Europe and constantly
upgrade and improve to remain competitively.Enhance customer satisfaction by meeting
customer requirements.Recognize our customers’ needs by introduce independence
packaging.Ensure the quality assurance procedures, the company had accredited with
HALAL.

Oriental Food Industries Holdings Bhd (OFI)

In a highly competitive and saturated market and in order to have a distinct edge over
competitions, the company keeps abreast with the latest technical developments and
manufacturing processes using modern machinery for the increase in productivity and
efficiency. The key is to constantly innovate and continually improve ourselves in order to
sustain our position in this industry.Within this,industry can increase the sales of different
types of food in Oriental food industry.

We have obtained several certifications in line with our quest for optimum quality control
procedures, namely MS ISO 9001:2008 and HACCP. We are also certified by the Malacca
State Islamic Department as a manufacturer of ‘Halal’ products. We seek to continue to
improve its product quality to keep up with the ever-demanding international health

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standards. At present, we are in the process of obtaining the ISO:22000 certification for the
production of potato crisps, wafer rice crisps and confectioneries.

In addition to the above, we adhere to stringent quality control standards to maintain the use
of high quality products right from raw materials stage to the production of finished products.
Every delivery or consignment of raw materials such as sugar, flour, potatoes, flavouring
have undergone prior sampling, tested and only the finest raw materials and ingredients are
being selected. Apart from quality control, we also believe in the exercise of stringent control
on hygiene.

In ensuring quality and hygiene of the food products, we have established an effective and
efficient quality assurance system to cover all aspects of hygiene, contact review, production
process and testing line.

Apart from the above, all ingredients used are in accordance to set recipes and are measured
by trained staff, with periodic checks made by both the quality control personnel and
production supervisors to ensure minimal errors.Before this,in market the snacks such as
Rota(prawn flavor snack),Super Ring(flavoured snack),Fudo(different flavors of roll cake)
was quite popular in market.Even kids love to have it as snacks.After all by years,now the
Oriental company is coming up with new products. The products that are hot in market are
Wafer Cube with chocolate falovour,Jacker which in different types of flavor that other
company doesn’t own,Jacker potato sticks,Zess flavoured wafer rice and
etc.Currently,Cheese Balls snack is having a good place market.

Analysis Of The Selected Companies’ Competitive Advantage In Its

Industry.
Apollo Food Holdins Berhad

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Strength Weakness
 Advantages of the organization  Activities that can be
Functional structure arguably achieves greater determined as your weakness in
operational efficiencies as employees with the market.
shared skills and knowledge work together and Public might think that this company
perform similiar functions. is not well performed because their
 Activities of the company better than promotion level is high.
competitors.
Apollo has some activities like fun fair at many  Factors that can reduce the
shopping complex to promote their products . sales.
 Unique selling proposition of the For example , the packing is not
company attractive and there’s a changes in the
Apollo not serving products for kids but their taste of the consumers.
products is also merged with the taste of
teenagers.

Opportunities Threats
 Good opportunities that can be spotted.  Product and services quality
Youngsters in the current era loves junk foods so standards
the demand the their product is high. Maybe a bad service of a salesperson
 Changes in social patterns and lifestyles. will give a bad point of view towards
This may attracts the customers becauce Apollo the company by spreading fake news
has alot of varies flavour products. and rumous about the products.
 Local events  Threat from changing
By sponsoring in majority local evets so they technologies
can promote their products.
The company always need to update
to the latest techonology to maximize
the sales .

Oriental Food Industries Holdings Bhd (OFI)

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Strength Weakness

 Leading local snack food manufacturer  Forex risk with strengthening of MYR
with proven track record. against USD as revenue is mostly
denominated in foreign currencies whilst raw
 Having long-time relationship with its material costs are mostly in local currency.
customers in overseas and local markets.
 Surge in soft commodity prices mainly on
 Experienced management as the founder RBD Olein (cooking oil), potato (snack),
has over 40 years of experience in the wheat (flour), sugar and egg.
industry.

Opportunities Threats

 New product of biscuit shall render higher . Sluggishness in domestic consumption as a

margin and additional topline and bottomline result of GST implementation and rising cost
contributions to the Group. of living.

 Rising demand from overseas market.  Shortage of foreign workers.

 Sudden surge in raw material and

packaging costs (resin price).

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In my opinion Oriental Food Industries Holdings Bhd (OFI) more competitive advantage in
market .The below diagram Is the evidence prove that this company has competitive
advantages.

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RECOMMENDATION

 Product Enhancement

One way others can compete with the companies are to create a better product or one that

offers a benefit they don’t. A direct competitor is one that makes the same or a similar

products or service as theirs. An indirect competitor is one that provides a similar benefit,

such as a new Pilate’s studio competing with your all-purpose gym. Take a look at what they

offer and the benefits consumers get from it to see if they can add a new product or service or

tweak what they have to retain their customer base or add new buyers.

 The Next Step To Analyze the opportunities, and this can be Tackled in Several

Ways.

External opportunities can include the misfortune of competitors who are not performing

well, proving with the opportunity to do better. There may be technological developments

that could benefit from, such as broadband arriving in their area, or a new process enhancing

the products. There may be some legislative changes affecting the customers, offering an

opportunity to provide advice, support or added services. Changes in market trends and

consumer buying habits may provide the development of a niche market, of which could take

advantage before the competitors, if the company quick enough to take action.

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 Distribution Realignment

The companies might lose sales to a competitor because it makes it easier for the customer to

buy. If they aren’t selling online, consider adding a low-cost shopping cart and online

payment system to their website. Hire a telemarketing and sales fulfillment company to let

consumers order over the phone, instead of having to leave the house. If they have limited

locations, consider adding a wholesale or retail chain to expand your distribution. Offer

express delivery to land more impulse buyers or in-store shipping to attract gift-givers.

 Pricing Change

If the company can sell their product for less and still make a profit, they might prevent a new

competitor from entering the marketplace or force a competitor to reduce its price, decrease

its marketing or cut back on post-sale customer service. If someone else is able to take market

share from the company, it might be because of the price . This might require shifting from a

low-volume or high margin sales strategy to a high-volume or low-margin strategy.

 Rebranding

If you’ve been trying to be everything to everybody, a competitor might be able to enter the

market and target a specific segment of the market place by creating a brand that speaks

directly to them. This might include fewer consumers, but ones who are frequent purchasers.

It might be necessary to abandon sales among infrequent users of the products to craft a

marketing message, strategy and tactics that focus on a smaller piece of the overall pie that

spends most of the money in the space.

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  Manage the company as a “portfolio of opportunities”.

This includes among away from the traditional, linear strategy process. Strategic planning

should not be about identifying the most likely future, but the range of possible futures,

including extremes.(Often it is the extremes where the competition makes advancements, so

it’s critical to keep informed about these.) Strategy formulation discussions should then be

about how the company could best position itself, and which business to give prominence in

each of these futures. Final commitment of resources should be delayed as long as possible

and, thus, made part of strategy execution, when they know how the market is really

changing. This enables to optimize utilization of the resources of the company whatever the

future turns out to be.

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CONCLUSION

In conclusion, Oriental Food Industry has more marketing strategy compare to Apollo

Food Berhad because Oriental’s (OFI) is very organized always plan their business in every

step and analyze it to achieve their goals of their company.The company place a strong

emphasis on training work teams and cultivating employee citizenship behavior. Employees

participate in twice daily meetings where they can discuss any issues and determine a course

of action.This team oriented organizational culture offers more positive relationships with

managers and coworkers thus providing a quality workplace.The first feature of the company

is a clear vision and goal. The company know exactly what they want to achieve in their

business.

Furthermore, the company also dare taking calculated risk taker. The key to success ids

daring to take necessary risk and considered investments as fuel of business in e-

commerce.The company also provides good leadership experience employee retention and

the workers are more productive than one with a demoralized workforce. An organization has

to facilitate training and continuous learning for employees, the organization has contingency

methods of operation that is different situation handled by the different appropriate ways.The

company always ensuring the impact of the vision through constant and consistent

communication of the vision throughout the organization.

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REFERENCES

1) http://www.bursamalaysia.com/market/listed-companies/company-announcements/#/?
category=AR&sub_category=all&alphabetical=All&page=3

2) file:///C:/Users/Acer/Downloads/20170815%20Oriental%20Food%20-
%20Initiation.pdf
3) https://www.casequiz.com/introduction-of-apollo-food-holdings-berhad-142334/

X) APPENDIX

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1. APOLLO FOOD HOLDINGS BHD.

2. ORIENTAL FOOD INDUSTRIES HOLDINGS BHD

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