Heavy Industries Corporation of Malaysia Berhad (HICOM)
Eric G. Legaspi
Rommel A. Ambrocio
Krsna M. Torres
Leoniel M. Basa
Sarah Jane Gajunera
I. POINT OF VIEW
Tan Sri Jamil, as a president of the Heavy Industries Corp. is in charge of solving the problem the company is facing now together with the shrinking market for the company’s products coupled with the appreciation of yen.
II. STATEMENT OF THE PROBLEM
What should be HICOM do to its three (3) subsidiaries or associate companies to mend its adverse effects to the company and its continuous losses?
III. STATEMENT OF THE OBJECTIVE
Create effective measures for minimizing, if not totally avoiding HICOM’s losses and avoid its future debilitation.
IV. SWOT ANALYSIS
*HICOM owns 51% of interest in Perwaja Trengganu Sdn Bhd (PTSB) 70% of interest in Perusahaan Otomobil Nasioal Sedab Bhd(PROTON) aside from other subsidiary companies under metal based, engineering, realty development, trading and processing industries.
*Creation of new division called “Operation Division” of HICOM, responsible for monitoring and coordinating its operations which is envisioned that its assistance could be facilitated to the subsidiaries and associated companies as and when required.
*Perusan Otomobil Nasional Sedab Bhd(PROTON) holds 65% market share in Malaysia
*A combination of poor planning and inexperienced or inept management.
*Executives are mostly bureaucrats and lacking of leadership is danger to cope with the plant’s (PTSB) problem.
* The PROTON will negotiated to the Bricklin Industries for the importation of PROTON SAGA and will handle the distribution agreement with American entrepreneur Malcolm Bricklin and his associates as they introduced the Yugo GV to the United States.
*The closure of the direct reduction plant had resulted in the price of steel scrap to be cheaper than that...