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Introduction
Incorporated in 1961 HQ - Jalan Kuchai Lama, Petaling, Kuala Lumpur Type of business - flavor enhancer, and seasoning manufacturer Type of products AJI-NO-MOTO, VONO, TUMIX, SERI-AJI and etc. Main competitors Maggi, VEDAN, and CAMPBELL
Low, as Ajinomoto itself owns plantation that can produce itself Low, as seasoning price are standardized Only few brands to choose on High, seasoning product are not necessary Can be replaced by salt or sugar
Average, as Ajinomoto already a market leader Well established brand and strong reputation
C. Internal Environment Analysis Resources Tangible resources Organizational and technological Intangible resources Human resources and Reputational resources
Technological
NECs FlexProcess is an ERP solution designed specifically for the process industries and helps to build an information system that streamlines business processes, reduce TCO (Total Cost of Ownership), and adapts to changing business environments.
Chairman, Independent Non-Executive Director General Tan Sri (Dr.) Dato Paduka Mohamed Hashim Bin Mohd. Ali (Rtd) 75 years of age - Malaysian
Chief Executive Officer, Managing Director Hiroshi Amano - 49 years of age - Japanese
Human Resources
ISO 14001 awareness briefing
Reputational Resources
"HALAL" Certification
VRIO Analysis
Is the resource or capability Valuable? Is the resource or capability Rare? Is the resource or capability costly to imitate? Yes Is the resource of capability Nonsubstitutable? Competitive Performance consequences implications
Yes
Yes
Yes/No
Aboveaverage return
Valuable - because Ajinomoto (M) ensure strict quality assurance from raw material procurement. - all products are qualified under Ajinomoto System of Quality Assurance (ASQUA) Rare - because It is the only company that provided seasoning products. - less rivalry business that can be competed in this industry Costly to imitate - has strong capabilities on its human resources and also research and development. - foster world-class human resources - high technologies skills and strong experiences (large capital enquire) Non substitutable - yes - because it is the only company that provide seasoning in Malaysia. - no - because people might look for natural species such as salt, sugar. - people might have a mind set that seasoning can cause unhealthy effect
- NEC s Flex Process as an ERP solution - Reduce total cost of ownership - Improve production planning and inventory management - Recruit qualified people - Provide intensive training program to employees - Trust on employee and a fair employment for all
Technology Development - Adopting Flex Process to strengthen production - More precise information pertaining to inventories - Improving nutrition by making food more delicious Procurement
Inbound logistics *Raw material from Cameron Highland and Indonesia *Secure a stable supply of highquality raw materials
- Procurement raw material from local and also foreign country - Take advantage of buying in advance and in bulk - Procures the equipment from domestic manufacturers
Operations *Process the raw material and packaging *Quality control * Uses flex process to control its inventory level of production Outbound Logistic *Distribute finished goods locally and also export *Endeavor to reduce environmental impacts during transportation Marketing and Sales *Deliver products in easy to understand packaging. *Advertising through television * invited celebrity chef conduct cooking demonstration After Sales Service *Customer helpline *Promptly reply to inquiries and feedback *Online cooking class with recipe
Market commonality MAGGI and VEDAN, Flavor enhancers market and seasoning market CAMPBELL
Resources similarity MAGGI strong parents company resources similarity such as technological knowledge, experience, and expertise
Likelihood of Attack
(i) Organizational Size Ajinomoto (M) Market position, capability, and volume of business to achieve economic of scale Offer attractive pricing to gain enhanced market shares Maintain profitability of the firm (ii) Quality Quality of product is of prime importance to the firm Quality audits ISO 9001: 2000 Hazard Analysis and Critical Control Point (HACCP)
Likelihood of Response
(i) Reputation
standard-cycle market
Intense competition Ajinomoto (M) has kept prices constant selling downsized packages Packages design and ease of availability are dimensions the competitive Innovation Had launched two new variants in their VONO instant soup line New Potato and Potato Mushroom variants
Moderate to high levels diversification retail and industry flavor enhancers and generates not more than 70% of its sales revenue
Related constrained diversification strategy Sharing primary activity or support activity in order to create value AJI-MIX and SERIAJI
SWOT
Competitive Strategy
Advertising r Adv rtisi are costly, while campaign are r l v tl stl , il i r relevantly cheaper. r. ample: blood donation, r l : l d recycle, free body check up l , r ody campaign campai n More campaign to be organi ed to create awareness campai n or ani and increase reputation of Ajinomoto(M) eputation are important as positive reputation resulted average return or otherwise This strategy may help Ajinomoto(M) to save more cost and generate profit.
Corporate Level
Current Concentrated resources in selected core market Deploying its technological strength to differentiate its well-known brand Promote products with emphasis on the Eat Well, Live Well concept Propose tilize existing plants and equipments with little hassle Develop new product line Expand its current product line
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