Chapter 1: Introduction
The company that we choose and analyze is the Sime Darby Berhad. 1.1 Company
Sime Darby Berhad is one of the Malaysia’s biggest multinational corporations (MNCs) that conduct the trade and service sector. Sime Darby was established in year 1910 by business partner named William Sime, a traveler and adventurer from Scotland and Henry Darby, an English banker. Sime Darby is one of the largest companies that listed on Bursa Malaysia and has a market capitalization of RM57.91 billion as at 20 June 2014. The beta of the Sime Darby is 1.14, which indicated the stock price will be more volatile than market. It will offer the possibility of a high rate of return, but at the same time also posing more risk. Moreover, the company has the workforce of over 100000 employees over 20 countries. Tan Sri Dato’ Mohd Bakke Salleh is CEO at Sime Darby Berhad since 27 November 2010. 1.2 Company Activities & Industry
Sime Darby Berhad was broadly diversified multinational engaged in a wide range of industries which included plantation, tire manufacturing, heavy equipment and motor vehicle distribution, property development, power generation and engineering services. Its plantation segment is initially engaged in production and marketing of rubber in Malacca and later diversified in crude palm oil, palm kernel, fresh fruit bunches and refining and marketing of palm oil related products. Its property segment develops and markets residential, commercial and industrial properties and development land and management and provision of golf and other recreational facilities and services. Industrial segment is engaged in sales, rental and servicing of heavy equipment. Its Energy & Utilities is conducted in engineering, power generation and supply of treated water and ownership management of port facilities. Besides their core businesses, Sime Darby also engaged in other business which is joint venture with others. Tesco stores (Malaysia) Snd Bhd is a joint venture between Sime Darby and Tesco to deal with the consumer products services. Its inception in 2011 and holding 30% stake in the joint venture. The Sime Darby also engaged in the healthcare business. The company is namely Ramsay Sime Darby Health Care, is collaboration of Sime Darby and Ramsay Health Care. The joint venture was announced on the 26 March 2013with the intention to expand the healthcare business in Southeast Asia. In addition, they also engaged in the insurance brokerage business. Sime Darby Lockton Insurance Brokers Snd Bhd is licensed and regulated by the Bank Negara Malaysia. It is a one of Malaysia’s leading professional risk services firms specializing in and delivering risk management, insurance and takaful solutions. The diversifications of their business have given them the ability to meet the dynamic business environment and to contribute to the creation of a sustainable future. 1.3 Board Structure
There are 12 Board of Directors within the Sime Darby which include Malaysian and British national. The Board of Sime Darby is also known as Main Board and has overall responsibility for the Group. The Main Board is supported by Flagship Subsidiary Boards (FSBs). The FSBs officially formed January 2011 and meets on a quarterly basis, prior to the main Board meeting. It was subject to the oversight and counsel of the Main Board. The matters reserved for the Main Board are include divisional strategy, plan and budget, acquisition and disposals and transactions exceeding the authority limits of FSBs, changes to senior Divisional management and changes to key policies, procedures and delegated authority limits of the Group. 1.4 Marketing
Sime Darby is among six leading Malaysian Companies with the best perception among the investors. Sime Darby also is the world's top oil palm planter and their property business is ranked No.1 in Malaysia’s Most Valuable Brands (MMVB) in Property & Infrastructure category. They increase in brand value with the...
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