DRB HICOM COMPANY ANALYSIS

DRB HICOM COMPANY ANALYSIS. Digital rendering of a colored world map.

INTRODUCTION. DRB Hicom is a Malaysian company known as an infrastructure company involved in the manufacturing, assembly and automotive industries. DRB Hicom assembles vehicles for companies Honda, Isuzu, Mercedes Benz and Volkswagen DRB Hicom is also important in defense activities through DRB Hicom Defense Technologies Pte Ltd. DRB Hicom announced major changes to their real estate sector, with the sale of several plots of land and all of its hotel assets.

COMPANY BACKGROUND. The New Serendah Rubber Company Limited was formed on 11 March 1910 under The Companies Enactment 1897, On April 15, 1966, the company's name was changed to The New Serendah Rubber Company Berhad . Following a reorganisation effort, it changed its name to HICOM Holdings Berhad on December 16, 1993. The Heavy Industries Corporation of Malaysia Berhad was founded in 1980. Peerless Assets Sdn Bhd was formed as Diversified Resources Berhad in 1990. It was renamed DRB in September 1991 and listed on Malaysia's major stock exchange the following September DRB-HICOM debuted on the KLSE's Main Board on September 4, 1992, and changed its name to DRB-HICOM on May 11, 2000.

Main Products and Services Proton Modenas Pos Malaysia University of Automotive Malaysia DRB-HICOM Akademi Saga.

INTERNAL ANALYSIS. Vision – To be a leader in meeting the country's sustainable standards Mission - To make sure the business operations of their core sector meet the needs of stakeholders and increase the company's value through sustainable projects. Competitive Advantage - They offer a wide range of services, from specific systems like module assembly to the production of whole cars..

EXTERNAL ANALYSIS. 1.Political National Automotive Policy 2020 (NAP2020) = policy that guide the automotive industry in Malaysia including DRB-HICOM Occupational Safety and Health ACT (OSHA) = because it’s a must plus to ensure workers’ safety, DRB-HICOM has implemented OSHA into their work environment. 2.Economics Overall economy = forecasted to grow so DRB-HICOM needs to realize and take this opportunity Import and export = forecasted to be good and this is good for business, so they seem to be able to take action without worrying too much about having to use resources on a backup plan..

3.Social Customer's lifestyle = customer lifestyle has changed a lot these past few years and it dictates their choices, so DRB-HICOM need to pay attention to this stuff and adapt to it Demographics = demographic refers to what kind of customers DRB-HICOM should focus on, answer this question and this will help them grow their business. 4.technology Machine vision = the latest technology that helps with everyday inspection, this can improve efficiency Collaborative robots ( cobots ) = the latest technology that allows humans to work with robots & machines more safely, collaboration can also improve quality.

5. Competitor Well known automotive company Have many competitors to involve in contributing Malaysia’s economy Four companies that are considered as competitor to DRB HICOM ; UMW holdings BHD Sime Darby berhad.

Business Level Strategy. There are five component of Porter’s Generic Business Strategy Diagram which are ; -Business level strategy that DRB HICOM implement is cost leadership -When using cost ledership , this will force DRB to improve -Among the process improvements that can be done by DRB HICOM -DRB HICOM will indeed reduce its cost.

Conclusion. DRB-HICOM has already achieved their goal and target Operational DRB-HICOM's firms have long had a prominent presence in the automotive and services industries DRB-HICOM will become more successful and the number one company in Malaysia.

Recommendation. DRB-HICOM Berhad by conducting the automotive manufacturing, assembly, and distribution industry. Expand its business in strategic industrial areas. Confident that it will be able to expand this industry to a larger market..