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CONTENTS

Acknowledgement
Introduction
Business Level Strategy
3.1 Introduction of the business
3.2 Swot Analysis of the Business
3.3 Type of the business strategy
Corporate Level strategy
Organizational Structure
Conclusion
References

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1.0

ACKNOWLEDGEMENT
In the name of Allah The Most Merciful, The Most Compassionate Peace and
Blessings be upon his Beloved Prophet

I am thinking uncounted thanks to my Allah the Almighty who has guided me to remember
Him at this time. I thank Him, for it is Him who has made this study possible. Nothing is
possible unless he made it possible. With the guidance from Him; we were able to complete
the group project under Strategic Managemnet (MAF640) subject with successfully. We
would like to gratefully acknowledge to our beloved MAF640 lecturer, PM Dr Aliza Binti Ramli
for the valuable guidance and advice during the coursework. She inspired us greatly to work
on this project. Her willingness to motivate us contributed tremendously to our project. We
also would like to thank her for her time for showing us some example, during our discussion
that related to the topic of our project. Besides, I would like to acknowledge our group
members for their full commitment, diligence and great team works during this whole project.
They did the great job by completing each task given on the due date. Finally, an honourable
mention goes to our families and friends, especially AC 220 8K class members for their
valuable knowledge sharing and supports on us in completing this project. Without helps of
the particular mentioned, we would face many difficulties while doing this project.

2.0

INTRODUCTION

DRB-HICOM Berhad is one of Malaysian leading conglomerates formed following the

of the country and play an important role in the development of the national car project, while
Diversified Resources Berhad (DRB) is the developer of the first national motorcycle and
truck made in Malaysia. In 2012,DRB-Hicom obtained Proton Holdings Berhad, established
itself as one of the leading automotive operating a comprehensive and integrated in
Malaysia, Business covering the entire automotive ecosystem from motor vehicle design and
development, production of automotive components, assembly, inspection and distribution
sales and after service-sales. The Group also assembles and distributes motorcycles,
commercial vehicles, defense vehicles and special vehicles such as ambulances. Goods
installed or distributed by the Group, including global brands such as Audi, Honda, Isuzu,
Volkswagen, Mitsubishi, Suzuki and Mercedes-Benz. The services sector, DRB-HICOM
holds a government concession by Alam Flora Sdn Bhd, a leading waste management
company in the country and PUSPAKOM Sdn Bhd, the sole commercial vehicle inspection
company in the country. In 2008, the Group acquired the equity interest in Bank Muamalat
Malaysia Berhad, the Islamic banking add to the financial interests related to both insurance
companies and Pos Malaysia Berhad in 2011, provides DRB-HICOM and logistics network
across the length and breadth of the term country. To further strengthen the Group's
Services business, DRB-HICOM recently acquired two jewel-Composites Technology
Research Malaysia Sdn Bhd (CTRM) and Konsortium Logistik Berhad (KLB). CTRM is part
of a chain joint aero-structure the global supply of commercial and military aircraft
manufacturers in the world. Among the main customers of commercial Airbus and Boeing for
the design, develop and manufacture aircraft parts for both the first and second tier
suppliers. Under its Property, Plant and Construction business, DRB-HICOM has experience
over the years built a solid reputation as a specialized property developer by utilizing the
brand property, Glenmarie, the bank holding land in prime locations. It is represented in the
hospitality industry through Holiday Inn Kuala Lumpur Glenmarie, Tasik Kenyir Resort,
National Park in Rajasthan, Four Points by Sheraton in Langkawi, as well as a foothold in
the leisure and Glenmarie Golf and Country Club.
DRB-Hicom have become a brand that resonates in the marketplace, and identified with
innovation, quality and excellence involving in three significant sectors of the Malaysian
economy such as Automotive, Services, and Property, Asset and Construction providing
employment for over 24,000 people. Being the only conglomerate involved in the whole
integrated chain of the automotive ecosystem, DRB-Hicom have developed world-class
expertise and facilities that have positioned Malaysia as a regional hub for the automotive
industry. By strategizing on the nations transformation plans from a labour intensive
economy to an advanced high income knowledge-based economy; the services sector
remains resilient to the economic volatility that benefits the Group. The Groups of DRBHicom includes more than 60 subsidiaries, associate companies and jointly-controlled

entities. Helmed by bold leadership and imbued with core values, strong work ethics and a
vision to be number 1, the DRB-HICOM brand is well-positioned to go a step further to
become a leading global brand in the future. There will have systematic strategies that will
be used by DRB-Hicom to be the successful in Malaysia in term of business and corporate
level strategy.

3.0

BUSINESS LEVEL STRATEGY

3.2

Swot Analysis of the Business

The primary purpose of the SWOT analysis here is to identify and assign each significant
factor, positive and negative, to one of the four categories, allowing Proton to take an
objective look at the business. The SWOT analysis will also be a useful tool in developing
and confirming goals plus marketing. The primary purpose of the SWOT analysis here is to
identify and assign each significant factor, positive and negative, to one of the four
categories, allowing Proton to take an objective look at the business. The SWOT analysis
will also be a useful tool in developing and confirming goals plus marketing strategy.
Strength
PROTONs strength lies in its competitively priced product. Its extensive nationwide
distribution network helps the industry to move forward with the support from Malaysian

government. The company also has good corporate governance, and highly regarded by
many Malaysians out of patriotism they feel for this country as PROTON is the national car
maker.
Weaknesses
Inexperience, apparently due to short history in car making certainly could not be an excuse
for PROTON to come out with low quality products. This could cost PROTON very high as
over time, it might jeopardize PROTONs reputation. Poor product performance and
functionality is something that cannot be allowed to happen and quality always needs to be
monitored and assured to the customers. Other than that, operational cost and other
expenses is always a challenge to any industry and for the case of PROTON, it is more
vulnerable to increasing raw material cost such as steel particularly.
Opportunities
The demand for cars in any segment is always there, except for more trying times like during
economic crisis. There are always opportunities for PROTON to be a global player. Nobody
ever say that cars should only be manufactured by Japan, Germany and other western
countries though of course these countries have the reputation of making good cars long
before PROTON and Malaysia comes into the picture. Collaborations within industry players
could enable PROTON to do many things. Through research and development more
innovative products could be invented, and ensure that PROTON as a brand name remains
in the industry.
Threats
One of the threats is of course from the rivals, the competitors in the automotive industry.
Even Perusahaan Automotive Kedua (Perodua) Malaysian 2nd national car maker, set up
after PROTON started to challenge PROTONs market share in Malaysia. Perodua actually
did better in recent years and outperformed PROTON via their most well selling model so
far, MyVi and grab more than 30% of overall market share. Under policy like AFTA, (ASEAN
Free Trade Area) consumers can have more choices from Honda, Toyota, Chevrolet and
other brands to be selected at a more affordable price, as Malaysia now has cut duties on
imports from other Southeast Asian countries to less than five per cent.
3.3

Type of the business level strategy

4.0

CORPORATE LEVEL STRATEGY

5.0

ORGANIZATIONAL STRUCTURE

6.0

CONCLUSION

As the conclusion DRB Hicom is already achieve their vision and target which is to be
number 1 and continuously excel in all that they to and also to lead in the growth of the
nation in the areas of DRB-HICOMs core business. This is because with a portfolio of more
than eighty operating companies in its stable, the Groups diversity elevates it to a brand with
unique character and promise. PROTON, Alam Flora, PUSPAKOM, Pos Malaysia,
MODENAS, Bank Muamalat, Glenmarie Properties these are some of the household
names that form a part of the DRB-HICOM Group. From the Automotive and Services
sectors to the Property, Asset and Construction sector, DRB-HICOMs operating companies
have always had a strong presence in the local market. Trough unrelated diversification;
DRB-Hicom can secure funds on hand during a seasonal slowdown, adding to the cash flow
for the main business activity which is automotive, service and property. Furthermore, DRBHicom can spread the risk through different sectors of the economy. It is very important to

identify industries in which the business activities slowdown does not coincide with the
slowdowns in the main business of the company. Besides that, by using the holding
company structure, it will help DRB-Hicom properly in their management for every
subsidiary. This will ensure that DRB-Hicom will have the effectively and efficiently in
handling all the business. DRB-Hicom will become more successful and to be the number
one in Malaysia by having the systematic strategy which is corporate and business level
strategy and the suitable organizational structure.

7.0

REFERENCES
Annual Report DRB-Hicom 2014
http://www.drb-hicom.com/cms/PublishedDocument/DRB%20ar2014.pdf
Social Corporate responsibility DRB-Hicom
http://www.drb-hicom.com/cms/PublishedDocument/DRB_SR2011.pdf

Wikipedia/background of DRB-hicom
https://en.wikipedia.org/wiki/DRB-HICOM