MASTER OF BUSINESS ADMINISTRATION

ADVANCED CORPORATE STRATEGY ( MGT 6266 )

INDIVIDUAL COMPANY CASE STUDY


Dutch Lady Milk Industries Berhad








Report prepared by:
Abdulla Abdulqader Al-Attas (G1430873)



Contents
TOC \o "1-3" \h \z \u Introduction PAGEREF _Toc467903143 \h 3
Mission, Visions, Value, and Objectives PAGEREF _Toc467903144 \h 4
Business model and other relevant information PAGEREF _Toc467903145 \h 5
External Analysis PAGEREF _Toc467903146 \h 5
The PESTEL Analysis PAGEREF _Toc467903147 \h 6
The 5-Forces Model of Competition PAGEREF _Toc467903148 \h 8
Drivers of Change PAGEREF _Toc467903149 \h 12
Strategic Group Mapping PAGEREF _Toc467903150 \h 13
Internal Analysis PAGEREF _Toc467903151 \h 15
Financial Report / Financial Ratio PAGEREF _Toc467903152 \h 15
SWOT and TOWS Analysis PAGEREF _Toc467903153 \h 18
Value-Chain analysis PAGEREF _Toc467903154 \h 21
Competitive Strength Assessment PAGEREF _Toc467903155 \h 22
Identification of Strategies PAGEREF _Toc467903156 \h 24
Corporate Strategy PAGEREF _Toc467903157 \h 24
Internal Factor Evaluation (IFE) matrix PAGEREF _Toc467903158 \h 24
External Factor Evaluation (EFE matrix) PAGEREF _Toc467903159 \h 26
Business Strategy PAGEREF _Toc467903160 \h 29
Functional strategy PAGEREF _Toc467903161 \h 30
Operational Strategy PAGEREF _Toc467903162 \h 31
Recommendation PAGEREF _Toc467903163 \h 31
Conclusion PAGEREF _Toc467903164 \h 32

Introduction
Dutch Lady Milk Industries Berhad (Dutch Lady Malaysia), is a manufacturer of dairy products established in Malaysia since 1950 under Royal FrieslandFoods, a Netherlands-based multinational cooperative. However, in December 2008 FrieslandFoods and Campina merged and Dutch Lady Malaysia became a subsidiary of FrieslandCampina new organization.
In 28 May 1963, Dutch Lady Malaysia was incorporated as a private joint-stock limited company called Pacific Milk Industries (Malaya) Sdn Bhd. It started with the production of a single product - sweetened condensed milk - and has since expanded to a full range of dairy products locally manufactured in its factory located in Petaling Jaya. It was FrieslandFoods' first production facility based outside of the Netherlands. Its current products include growing up milk, UHT milk, pasteurised milk, sterilised milk, family powdered milk, low fat and 0% fat drinking yoghurt, and low fat yoghurt. Some of its products are also distributed to surrounding countries in Asia and Oceania.
In 2011, Dutch Lady Malaysia was reported as the market share leader in the growing up milk segment - with the Dutch Lady brand holding 40% of national market share.
Its financial record for first quarter of 2012 showed a 9 percent increase in revenue year-on-year, with a net profit of RM27.5 million (US$8.72 million). A slowdown in the Malaysian dairy industry, led Dutch Lady Malaysia to miss on achieving its RM1 billion sales target for 2013. Nevertheless, in 2014 & 2015 Dutch Lady Malaysia achieved beyond the RM 1 billon sales target.
Royal FrieslandCampina  is a multinational that produces and markets natural, nutritious and high-quality dairy products and ingredients. Taste, health, convenience and reliability are key characteristics. The company employs 21,000 people and has about 100 production and sales locations in 25 different countries. FrieslandCampina organises its activities into ftheir business groups: Consumer Products Europe, Consumer Products International, Cheese & Butter and Ingredients.
The product range consists of consumer milk, milk in powder and concentrated form, dairy drinks, yoghurts, desserts, cream, coffee creamers, baby and infant food, cheese, butter and ingredients. Its most important brands are Campina, Chocomel, Completa, Dutch Lady, Frisian Flag, Foremost, Betagen, Friesche Vlag, Fruttis, Fristi, Vifit, Landliebe, Milli, Mona, Optimel, Optitheyll, Puddis, P, Fruttis, NoyNoy, Peak, Rainbow, Yazoo, Appelsientje, DubbelFrisss, CoolBest, Debic, Frico, Milner, Buttergold, Valess, DMV, Kievit, Domo, Creamy Creation and Nutrifeed.
Mission, Visions, Value, and Objectives
Dutch Lady Malaysia vision is "To further strengthen our position as the leading dairy company, driving growth" . The vision do portray Dutch Lady Malaysia aspirations for the future. However, the vision had few shortcomings:
Not graphic: does not paint a clear picture of where the company is headed
Not memorable: it need to be memorable to be easily communicated
Not complete: the vision statement seems to be incomplete
Nevertheless, Dutch Lady Malaysia vision is in line with its mission and describe the organization who they are, what they do and why they are here. Dutch Lady Malaysia mission is "Helping Malaysians move forward in life with trusted dairy nutrition ", Dutch Lady Malaysia aim to continue developing products that contribute to a healthy society. Dutch Lady Malaysia aims to continue its effort in combating obesity and nutrient deficiency by ensuring that its products are responsibly manufactured, healthy and