Reference no: EM133271951

Assignment:

CASE STUDY.

Nebih Jaya Sdn.Bhd. is a company dealing with metal recycling in Malaysia. The owner and his wife started the operation four years ago buying and reselling scrap material. Nowadays, in a 300m2 fabric hall with 10 staffs is mainly crushing any metal waste material available from any supplier. A wide variety of metal is involved like car bumpers, old CD and TV players and spare parts from different sectors. However, increasing competition by huge local providers who see the future viability of this business has to be faced in the bumper recycling production. In addition, companies from China are increasingly purchasing used bulky material in Malaysia for their own market at high prices. They even procure their recycled material from European countries to satisfy their market.

In the long run, the owner and his wife want to turn their crushing facility into a locally renowned waste-disposal plant that has the competitive edge over its competitors. However, especially the foreign staffs are giving a lot of problems to the owners. Once he is not in, the staffs tend to come late, including the supervisors. The accommodation for foreign staff is an adherent room without furniture which is noisy due to the nagging sound of the crushing machines. The staffs tend to be unhappy with the payment which is standard in this business, though. The lorry driver was captured having sold crushed material to customers worth RM 25,000.

One new idea that was brought in recently by an Australian friend of the owner to recycle metal cans. This concept is worldwide brand-new. However, to materialise, would imply an investment of 8 million RM in 2006. It is said that metal cans could be sold to a prospective customer for RM50 of the virgin material. The target of this business idea is the "can-to-can"-principle, which will save about RM50 of the production costs.

Inside the plant, the metal scrap is piling up in one huge unsorted heap covering the whole place nearly up to the ceiling. Sometimes it is hard to find the way to the toilet at the interior of the plant. Some of the items like spare parts (SMI= slow moving items) have been lying there for months since the plant was incepted. Especially FMI (fast moving items) come and go often every week, like car parts and washing machines.

You are the external consultant in charge with the corporate planning for that locally operating metal recycling business and asked to come up with preliminary considerations about the manufacturing's strategy. Make sure the concept is logically related to each other, whenever possible.

(i) Explain the marketing strategy and select the best marketing strategy for Nebih Jaya Sdn Bhd.

(ii) State at least THREE (3) suitable mission and ONE (1) vision statements for Nebih Jaya Sdn Bhd.

(iii) Based on the cases, describe the element of corporate strategy for Nebih Jaya Sdn Bhd should be.

(iv) Conduct verbally without a table an analysis of strengths, weaknesses, opportunities and threats without rating. Hereby, come up with at least TWO (2) arguments for any of the four aspects involved.

(v) Conduct analysis of market attractiveness and the business strength for the Nebih Jaya company.