Introduction Japanese. The shareholders of Perodua are UMW

Introduction

Perusahaan Otomobil Kedua
Sdn Bhd (PERODUA), established in 1993. In Malaysia Perodua is second
automobile manufacturer which after Proton. It is a joint venture company
between Malaysian and Japanese. The shareholders of Perodua are UMW Corporation
Sdn Bhd 38%, MBM Resources Berhad 20%, Daihatsu Motor Co. Ltd 20%, PNB Equity
Resource Corporation Sdn Berhad 10%, Daihatsu (Malaysia) Sdn Bhd 5%, Mitsui
& Co. Ltd 4.2% and Mitsui & Co, (Asia Pacific) Pte Ltd 2.8% (Corporate
Information n.d).Perodua does not contend with Proton for the similar market
niche because Perodua mostly produce small-compact cars. Since end of 2009,
Perodua has sold some 1.67 million units of vehicle of a variety of models.
Perodua also sell overseas their cars to UK, Singapore, Brunei, Fiji, Nepal and
Sri Lanka.

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Perodua is located on a
138-hectare site in Sungai Choh, Rawang, Selangor Darul Ehsan. Besides, in the
year of 2001, Perodua Auto Corporation Sdn Bhd (PCSB) was established in the
final quarter year. Furthermore, there are also another two joint venture
partners of PCBS from Japan which are Daihatsu Motor. Co. Ldt. and Mitsui &
Co. Ltd. The PCBS are being managed the manufacturing operations of the Perodua
Group (Corporate Information, 2010).

 

Common
forms of business

Perusahaan Otomobil Kedua Sdn Bhd
(PERODUA) is the second automotive manufacturer in Malaysia which it
established in 1993. Sdn Bhd is donated by the words “Sendirian
Berhad” which means private companies. It shows that Perodua is closely held
or private corporation. This means Perodua is a corporation whose stock is held
by only a few people or company. It’stocks cannot simply to trade and not
available for sale to general public. (2017)

Perodua is the second joint venture
company in Malaysia’s automotive industries after the Proton. (2017) What is
the joint venture? The definition of the joint venture is a new business entity
created by two or more company which characterized by shared ownership, risk
and governance. This is a joint venture between the local company and Japanese
company. In the joint venture agreement, the percentage of stocks that Perodua
shareholder hold are UMW Corporation (38%), Daihatsu Motor Co. (20%), MBM
Resources (20%), PNB Equity Resource Corporation (10%), Daihatsu (Malaysia)
(5%),  Mitsui & Co. (4.2%) and Mitsui
& Co. (Asia Pacific) (2.8%)respectively. (Wikipedia 2017) From the
information above, we can conclude that local company still hold a major stock
(68%) while Japanese company holds a minor stock (32%) in Perodua.

There are few main
purposes of forming a joint venture which is Perodua. Firstly, they want to
access a new market or particularly emerging markets. (Wikipedia 2017) In 1994,
Perodua launched their first car-Perodua Kancil which is belonging to minicars
and superminis. Perodua focuses on the production of economy minicar and does
not overlap same market segments with Proton. (Wikipedia 2017) The second
benefit of forming a joint venture is gaining scale efficiencies by combining
two or more companies’ assert and operation. (Wikipedia 2017) The risk for
major investments or projects is sharing by a few company to become no so
riskily. (Wikipedia 2017) Accessing a new market need to put in a lot of
capital, manpower and material resource. This will make the investment become
riskily. When the more the company included, the smaller the riskily. The last
benefit can be obtained from joint venture is accessing the skill and
capabilities. (Wikipedia 2017)The best example of this benefit is Perodua Myvi which
is the 6th model of Perodua. It can be said as a symbol or milestone on
cooperation between Malaysian automotive industry and Japanese automotive
industry. Perodua Myvi is based on Daihatsu Boon and Toyota Passo. (2017) It
becomes the most popular car in Malaysia.

 

Ethics
and Social Responsibility

            Ethics
is the moral principles, values, and beliefs that is inner-guiding for every
human in this world to inspect or depict a case and then determine what is the
“right” or proper way to act. There are no certain or undeniable rules or
principles that can be refined to decide if an action are ethical or unethical.
So, human need to think proper whether the decision made is right or wrong.
Example, Perodua tell their customers that they do not design any engine for
their product.

            Stakeholders,
the people and groups that supply a company with its productive resources and
have a claim on its resources. When the law does not specify how companies
should behave, managers must decide what is the right or ethical way to behave
toward the people and groups affected by their actions. There are few types of
company stakeholders: employee, stockholders, manager, customers, community
society and nation-state, suppliers and distributors.

            Stockholders
want to ensure that managers are behaving ethically and not taking risking
investors’ capital by engaging in actions that could hurt the company’s
reputation and they want to maximize their return on investment. So, decision
they made has been discussed through the whole shareholders and having meeting
when the decision is quite big.

            Employees,
companies can act ethically toward employee by creating an occupational
structure that fairly and equitably rewards employees for their contributions.
Example, management team of Perodua company give their employees lot of
allowance like paid vacation, extra reward that depends on their outstanding
achievement and more.

            Customers,  most critical stakeholder. Company must work
to increase efficiency and effectiveness in order to create loyal customers and
attract new ones. So, Perodua always need their employees well-trained in order
to serve the customer and they always practice the best customer service.

            Social responsibility, way a company views its duty or
obligation to make decisions that protect, enhance, and promote the welfare and
well-being of stakeholders and society as a whole. Perodua Bezza, the 2nd
model from Malaysia first EEV (Engine Efficient Vehicles) factory used the Eco
Idle System, means that the system will stops the engine when the car is idle
and restart when the brake has been released, therefore it will be reducing
fuel consumption and emission that can pollute the air. They also have
installed the eco indicator to notify the driver when their driving reaches
eco-friendly level.

Managers and Managing               Perodua is set to become the largest compact car company in the Southeast Asia. In order to become a world-class well-known car company, Perodua has set up some goals which is professional in all their operations, utilizing the efficiency of technology and resources, to deal with the resilience of the challenge, optimize the interests of customers and stakeholders, dedication towards social responsibility to community, the environment and development of competent workforce, unique products and aspiration to glorify the name of Perodua.               The responsible for managing, mentoring and supervising the whole group’s performance is entirely on the board. The board of directors assume that the following specific responsibilities, which are done in the best interest of the company in pursuance of comprehensive regulatory and business objective such as establish and review the company’s strategic direction, supervise and evaluate the company’s business activities, identify the key risks and ensure that the risks are properly managed, set up a succession plan, ensure that there is a good investor relations program and shareholder communication policy and also review the appropriateness of internal control policies.               The Board also reserves full decision-making power over the following issues such as major acquisitions and asset disposal, invest in capital projects, authority levels, financial policies, risk management policies, key human resource issues and conflicts of interest related to a substantial shareholder or director.

 

The manager as a planner and strategist

            The corporate mission of Perodua is to be a world class
automobile company renowned for excellent quality and reliability through:

1) Professionalism in all
our operations

2) Efficiency in utilising
technologies and available resources

3) Resilience in meeting our
challenges

4) Optimising benefits to
customers and stakeholders

5) Dedication towards social
responsibility to community, the environment and development of competent
workforce

6) Uniqueness in our
products

7) Aspiration to glorify the
name of PERODUA

The vision
of Perodua is to be the most preferred automotive brand renowned for products
and services of excellent quality which contributes to the development of the
nation.

            National second car manufacturer Perusahaan Otomobil
Kedua Sdn Bhd (Perodua) is aiming to sustain its current 30% domestic market
share, further enhancing its quality, cost-cutting and delivery (QCD)
strategies to remain competitive in the domestic automobile market.

Its chief
executive officer Datuk Aminar Rashid Salleh said with the government’s plan to
liberalise the automotive industry by 2016, Perodua will remain relevant
through various measures in its five-year roadmap that outlines growth strategy
to boost competitiveness.

The three
new variants — Viva S 1.0L, Myvi 1.3 SE and Alza S 1.5L — is to enhance the
value usabality and styling of all three current models and are included at no
additional cost to the customers.

The new
variants will be available in all Perodua showrooms from today.

The company
targets to sell 1,000 units per month of the Viva S-Series, 4,000 per month of
the Myvi and 2,500 per month of the Alza S-Series.

At the
launch, Muhyiddin said the government has drawn up a plan to ensure that future
changes in the sector is fair to all in implementing the liberalisation of the
automotive sector.

“The
government has already announced that the industry will be liberalised
responsibly thus we will be able to see vehicle prices gradually reduced by 3%
to 5%, or a total of RM2,200 to RM17,000, for new vehicles in the fourth
quarter of 2012,” he said.

He added
that the reduction was the beginning of the government’s long-term plan for
gradual reduction of vehicle prices.

 

Organisation Structure

Perodua
Information Technology all employees were impressed with GE Fanuc’s proven
experience in achieve these types of solutions and felt confident that GE
Fanuc would be able to create an automatic data collection and product
tracking solution that would enable them to meet their productivity
goals. GE Fanuc teamed with local system integrator, Temigas Sdn Bhd
in Malaysia, to implement a phased approach solution, the first of which
is a Shop Floor Control System (SFCS) in Perodua’s body, paint, and
assembly shops. GE Fanuc did most of the system design and implementation
on-site with local systems integrators working approximatively with
Perodua to make sure that the system met their necessary conditions.

The clear-cut
objectives for the SFCS in improving Perodua’s manufacturing operations
are: industrial computerization software with a Tracker module to satisfy the
following key requirements:

• Reducing
unfinished inventory

• Identifying
quality issues as fast as possible

• Reducing
rework time and volume

• Identifying
production blockage

• Reducing
operator blunder

To meet
these objectives, the automation team created a reliable, state-of-the-art
system based on CIMPLICITY

• Track
unfinished inventory

• Capture
quality bug and adapt information

• Automatically
create part-supply produce from the production lines to logistics and other
subassembly areas

• Generate
production and quality-related reports on-thefly

• Create tax and
delivery documentation automatically

• Automatically
route bodies inside the paint shop through various processes

• Ensure data
honesty of the vehicle production information

• Make all the
above information readily available on the desktops of management to enable
real-time decision making

Perodua believe
that efficient human resource is very important in achieving our mission.
Perodua encourage their entire employee to put forth and develop ideas for
higher efficiency and productivity, Perodua believes that teamwork. In quest
for success through quality human resource, Perodua focus on the development of
human resources by makes sure that regular specialised training is provided.
Perodua reward staff performance by constantly reviewing and upgrading
benefits. Perodua provide a conducive working environment, and Perodua make
sure staff who has displayed potential be given chances for career advancement.

Perodua offer
great quantity types of career paths for those with the ability and desire to
excel, ranging from engineering, information technology, accountancy, sales,
marketing, human resource and general administration.

 

Conclusion

Perusahaan Otomobil Kedua
Sdn Bhd (PERODUA), established in 1993. In Malaysia Perodua is second
automobile manufacturer which after Proton. It is a joint venture company
between Malaysian and Japanese. In the joint
venture agreement, the percentage of stocks that Perodua shareholder hold are
UMW Corporation (38%), Daihatsu Motor Co. (20%), MBM Resources (20%), PNB
Equity Resource Corporation (10%), Daihatsu (Malaysia) (5%),  Mitsui & Co. (4.2%) and Mitsui & Co.
(Asia Pacific) (2.8%)respectively. (Wikipedia 2017) From the information above,
we can conclude that local company still hold a major stock (68%) while
Japanese company holds a minor stock (32%) in Perodua. Ethics is the moral
principles, values, and beliefs that is inner-guiding for every human in this
world to inspect or depict a case and then determine what is the “right” or
proper way to act. There are no certain or undeniable rules or principles that
can be refined to decide if an action are ethical or unethical. So, human need
to think proper whether the decision made is right or wrong. Perodua is set to become the largest compact car company
in the Southeast Asia. In order to become a world-class well-known car company,
Perodua has set up some goals which is professional in all their operations,
utilizing the efficiency of technology and resources, to deal with the
resilience of the challenge, optimize the interests of customers and
stakeholders, dedication
towards social responsibility to community, the environment and development of
competent workforce, unique products and aspiration to glorify the name of
Perodua.
The corporate mission of Perodua is to be a world
class automobile company renowned for excellent quality and reliability through
professionalism in all our operations, efficiency in utilising technologies and
available resources, resilience in meeting our challenges, optimising benefits
to customers and stakeholders, dedication towards social responsibility to
community, the environment and development of competent workforce, uniqueness
in our products, aspiration to glorify the name of PERODUA. The vision of
Perodua is to be the most preferred automotive brand renowned for products and
services of excellent quality which contributes to the development of the
nation. Perodua
Information Technology all employees were impressed with GE Fanuc’s proven
experience in achieve these types of solutions and felt confident that GE
Fanuc would be able to create an automatic data collection and product
tracking solution that would enable them to meet their productivity
goals. GE Fanuc teamed with local system integrator, Temigas Sdn Bhd
in Malaysia, to implement a phased approach solution, the first of which
is a Shop Floor Control System (SFCS) in Perodua’s body, paint, and
assembly shops. GE Fanuc did most of the system design and implementation
on-site with local systems integrators working approximatively with
Perodua to make sure that the system met their necessary conditions.

 

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