Malayan Flour Mills (MFM)

PMN3023 STRATEGIC MANAGEMENT

Company Profile
Malayan Flour Mills Sdn Bhd (MFM) is a

pioneer in the flour milling industry in Malaysia as First Flour Miller in Malaysia. The first Prime Minister of Malaysia, the late Tunku Abdul Rahman, officiated the opening of the RM40 million modern flour mills at Lumut, Perak on 15 October 1966

Continued..
The opening of the mill was the realization of

a long cherished dream of the mills founder, the late Datuk David L.F. Sung, a well-known banker and industrialist of Hong Kong. Datuk Sung came from a family whose ancestors founded China's first machine operated flour mill in Shanghai in 1890

Cont..
Sung found Malaysia to be an ideal

environment to establish a modern flour mill to serve the requirements of the local market.
The facility he established became an icon in the flour-milling industry.

Cont
The late Datuk David Sung giving

the inaugural speech honoured by the late first Prime Minister of Malaysia, Tunku Abdul Rahman, seated behind

The Overview of Malayan Flour Mills

The mill was designed and supplied by Henry

Simon Ltd. of England. It is strategically located at Batu Undan, Lumut, off the Dindings River in the State of Perak

Cont..
The location was chosen because of: Its natural harbour which has a deep water anchorage where ocean-going ships carrying wheat from all over the world could be delivered safely

to the door-steps of the mill. The entire mill building is sitting on top of granite thus reducing construction cost as there was no requirement for piling

Corporate Vision and Mission

Vision
We aspire to be leading food manufacturing

enterprise for the region.

Mission
We are the preferred provider and strategic

partner in the food industry. We drive operational excellent by embracing a culture of condition improvement We add value to stakeholders by growing economic scale.

Business philosophy of MFM

MFM create value for their customers by

providing a differentiated offering based on their best cost production, consistent quality, service and innovative solutions. MFM want to be recognized as an organization committed to the well beings of their shareholders, customers, employees and community.

Continued..
MFM is committed to an ethical business

approach through
Compliance with the law. Honouring business obligations. Ensuring integrity in our business dealings

Cont
MFM is committed to customer-focus

approach by
Understanding clients history, culture, decision-

making process, key people, vision, mission, strategy, goals and strengths. Focusing on customers' needs. Focusing on building trust in the working relationships with clients

Business policy
our management is committed to the safety

and quality of all products To provide our customers with safe products, the following Food Safety Policy has been declared by the company.
Adoption of HACCP system, applying Good

Manufacturing Practice (GMP) and training employees in Good Hygiene Practice (GHP) throughout the food processing flow chart from raw material to finished goods.

Continued
Provide continuous training to our staff ensuring

that they possess the necessary knowledge and understanding in managing food safety and strive to improve customer confidence in our products.
To co-operate with the relevant authorities

ensuring the processing system adheres to both domestic and international requirements.

Food safety objectives

Our products are free from any visible metal fragments with diameter more than 1.00mm. II. Our products must be free from Salmonella and Alfatoxin; Coliform III. To minimize customer complaint especially those relevant to food safety issue, such complaints are strictly controlled to be not more than 5 cases per year
I.

Enviromental policy
MFM is committed to protecting the

environment. The company identifies and manages any significant impacts in the environment through its management system and ensures the followings.
Environmental matters are integrated into all

areas of the business. Energy is used efficiently and consumption is monitored

Corporate Information
Chairman
Tan Sri Dato Seri Arshad bin Ayub

Managing Director
Teh Wee Chye

DIRECTORS
Dato Hj Shaharuddin bin Hj Haron Geh Cheng Hooi Quah Ban Lee Datuk Oh Chong Peng

Current situation
Current Performance
Malayan Flour Mills Bhd (MFM) has evolved its

integrated poultry operations to be one of the leaders in the industry. It is unique, having production facilities from direct grain import to producing a range of poultry products

Posture / Position Strategies

Position in the Industry

Malayan Flour Mills Sdn Bhd market is a major player in the food industry in Malaysia

Corporate Governance
Board of Directors

External Environmental
Natural environment
Physical Resources Wildlife and climate

Societal Environment
his analysis related to macro-level factors of political, economic, socio-cultural and technological factors, which influence the analysis of large companies

Task Environment
Employees

Supplier
Competitors customers

Porters Five Forces

Threat of new entrants Rivalry among existing firms.

Threat of substitute products and services

Power of buyers. Power of suppliers

Internal Environment
Organizational analysis is concerned with identifying and developing an organization

resources and competencies. Internal environment which consists of three is resources, culture and structure Structure Corporate.
The second element in internal scaning is corporate

structure. Malayan Flour Mill Berhad used divisional as their structure. Divisional is divided into two in term of location and product or services. Malayan Flour Mill used divisional for their structure based on their location and product

continued
Corporate Culture.
Compliance with the law Relationship with our customers

Corporate Resources.
Employees. Raw Material Machine Knowledge

Value chain
Logistic & distribution.

Strategic Analysis Factors (SWOT)

Situational analysis Strength Weakness
Too many branches Role of branch in order to decide price

Opportunities
Variety of product Learning research and development

Threats
Variety of product 4 main strong competitor

Continue..
SO strategies
Offer more product line Do more research and development.

WO strategies
Focus to the company vision in order to market the product

ST strategies
Improve the productivity in produce the product Control demand and supply in the market

WT strategies.
Close branch that not contribute to the profit Joint the new industry

Alternative and recommended strategy

Brand Development II. Multi Media Plan
I.
TELEVISION Bill boards Press releases

III. Social developments

The lions club Rotary club Malaysia Health Food Organizations