ACKNOWLEDGEMENT

Alhamdulillah, first of all we taking this opportunity to express our gratitude and regards
to our Maf640s lecturer, Puan Zaharah for her excellent supervision throughout the
course of this project.
We are also taking this opportunity to express our gratitude to Chemical Company
Malaysia (CCM) Berhad for support and the valuable information which helped our
group a lot to complete our piece of work through various.
We are indebted to the members of the company for the information provided by them
in their own fields.
Lastly, We thank God, our parents and group members for their constant
encouragement and cooperation without which we could not complete our group project
on how the organizations carry out their strategic management functions.









1. Overview of Business

i. Background of CCM Berhad.
Since 1966, Chemical Company of Malaysia Berhad (CCM) has had a significant corporate
presence in Malaysia and has since grown to a responsible and independent Malaysian
company to further enhancing quality of life for all.

Listed on the Main Board of Bursa Malaysia with good returns to shareholders' values, their
vision is to provide innovative science and technology based solutions to our consumers.
CCM Group offers a wide range of products and services to the chemicals, healthcare and
agricultural industries. Their integrated approach to business makes us a unique "one-stop"
agency.
Their core business activities include:
Chemical products and applications
Fertilizers and technical advisory services
Pharmaceuticals and healthcare products and services
ii. Mission & Vission


iii. Core Values


iv. CCM Berhads Group Structure





v. Board of Directors CCM Berhad












from right to left
Dato Sri Azalina binti Othman
Non-Executive Chairman
Dato Azmi bin Mohd. Ali
Non-Executive Director
Dato Seri Ir. Dr. Zaini bin Ujang
Non-Executive Director



from left to right
Amirul Feisal bin Wan Zahir
Group Managing Director
Datin Paduka Kartini binti Hj. Abdul Manaf
Non-Executive Director
Datuk Karownakaran @Karunakaran a/l
Ramasamy
Independent Non-Executive Director
Dr. Leong Chik Weng
Independent Non-Executive Director
Khalid bin Sufat
Senior Independent Non-Executive
Director



Senior Management












from left to right
Front row
Mohamed Nazmi bin Sallehhudin Director, Chemicals Division
Hafsah Ahmad Zainudin Senior Manager, Group Risk
Abd. Rahman bin Abdullah Thani Director, Corporate Office
Nik Fazila binti Nik Mohamed Shihabuddin Director, Finance
Ibrahim Hussin Salleh General Manager, Legal/ Company Secretary
Back row
Leonard Ariff bin Abdul Shatar Director, Pharmaceuticals Division
Noor azwah binti Samsudin Group Company Secretary

2. IDENTIFICATION

i. Business Activity
Since 1966, Chemical Company of Malaysia Berhad (CCM) has had a significant corporate
presence in Malaysia and has since grown to a responsible and independent Malaysian
company to further enhancing quality of life for all. Listed on the Main Board of Bursa
Malaysia with good returns to shareholders' values, their vision is to provide innovative
science and technology based solutions to their consumers. CCM Group offers a wide range
of products and services to the chemicals, healthcare and agricultural industries. Their
integrated approach to business makes them a unique one-stop agency.
Their core business activities include:
Chemical products and applications.
Fertilizers and technical advisory services.
Pharmaceuticals and healthcare products and services.
a) CCM CHEMICALS DIVISION
CCM Chemicals Division has been the leading industrial and specialty chemicals in
Malaysia for over 70 years. Following the strategic business acquisition and operational
expansion, they aim at becoming the principal in water treatment and polymers for rubber
glove, apart from manufacturing and trading of extensive range of general and specialty
chemicals. Their product range has applications in a wide spectrum of the manufacturing
industry across the region.
In providing innovative, environmental-friendly and cost effective solution and systems
for their business partners, CCM Chemicals is a recognized leader and steward in corporate
safety and environmental management. As a signatory of the Responsible Care Charter,
and with a host of Responsible Care awards under its wings, CCM Chemicals' reputation for
high standards for Safety, Health and Environment is further strengthened. Here we can see
there are three divisions in this part which are for CCM Chemical Sdn Bhd, CCM Usaha
Kimia (M) Sdn Bhd and CCM Innovative Solutions Sdn Bhd.


CCM Chemical Sdn Bhd (MANUFACTURING FACILITIES)

CCM Chemicals is the leading chlor-alkali producer in Malaysia, a position which CCM
Chemicals has made its priority to maintain. CCM Chemicals currently operates two MS
ISO 9001 (2000) accredited chlor-alkali plants in Pasir Gudang, Johor Darul Takzim.
Both these plants are designed and operated to international Safety, Health and
Environment (SHE) and quality standard.
Their plants have a combined capacity to produce approximately 200,000 MT of
chlor-alkali products per annum comprising of liquid chlorine, causitic soda, hydrochloric
acid, sodium hypochlorite, ferric chloride and polyaluminium chloride (PAC). These
products are marketed to major industrial sectors such as oleochemicals, soap and
detergent, metal, electronic, textile, petrochemicals and rubber products.
CCM Chemicals represents many world renowned principals in supplying a wide
range of INDUSTRIAL and PERFORMANCE chemical products to various industries
with regional offices in Malaysia, Singapore, Indonesia, Vietnam, Thailand and
Philippines. Among strategies identified for sustainable growth of CCM Chemicals
business is the expansion of its research and formulation activities. The R&D focus is
largely on water treatment coagulants. In collaboration with the principals, CCM
Chemicals now blends metal finishing products locally. Together with the knowledge and
experience of their customers, such activity can only encourage more formulations be
developed to produce better performance products that are value adding to their
customer. CCM Chemicals has also embarked on research and formulation of polymer

applications in the rubber gloves industry. Their formulated products have been widely
accepted by customers.
Chlor Akali Business
Calcium Chloride
Caustic Soda Flake
Caustic Soda Liquor
Caustic Soda
Micropearl
Hydrochloric Acid
Liquid Chlorine
Sodium Hypochlorite

Watercare Business

Alkalinity Booster
Aluminium Sulphate
Antifoam
Anti - Scaling and
Deposition
Biocides
Caustic Soda Liquor
Chlorine Scrubber
System
Corrosion Inhibitor
Diammonium Phosphate
Ferric Chloride
Ferric Sulphate
Ferrous Sulphate
Hydrochloric Acid
Liquid Alum
Liquid Chlorine
Oxygen Scavenger
Polyaluminium Chloride
Polymers
Sludge Dispersant
Sodium Hypochlorite
Sulphuric Acid
Tropical Chloride Of
Lime
Urea
Ultra Filtration
Reverse Osmosis







CCM Usaha Kimia (M) Sdn Bhd

Established in 1989, CCM Usaha Kimia Sdn Bhd (formerly known as Usaha Kimia (M)
Sdn Bhd) began its business as a trading house in the supply of water treatment
chemicals namely Liquid Chlorine, Polyaluminium Chloride and Ferric Chloride to the
public potable water works in Malaysia. Today, CCM Usaha Kimia is offering a wide
range of chemicals and engineering services to Government agencies and GLCs in
Malaysia involved in the following industries :-
Water Treatment (potable, process and waste water, sewage)
Power
Palm Oil
Rubber
The ranges of chemicals offered are:-

Water Treatment Chemicals

Liquid Chlorine, Sodium Hypochlorite
Coagulant (Polyaluminium Chloride, Ferric Chloride, Aluminium Sulfate)
pH adjuster (Hydrated lime, Caustic Soda, Soda Ash, Ammonia Solution, Sulphuric
Acid, Hydrochloric Acid)
Polymer (Cationic, Anionic and Non-ionic)
Fluoridification chemicals (Sodium Fluoride and Sodium Silico Fluoride)
Cooling tower and Chiller chemicals (Biocide, Corrosion & Scale inhibitor, Dispersant
and Defoamer)

General Chemicals

Ammonia Gas
Phosphoric Acid
Sulphuric Acid
Bleaching Earth
Sodium Methylate


Range of Engineering Services Offered

Cooling Tower and Boiler Services
Chlorine Safety Systems - Chlorguard and Scrubber
Bulk Storage Installation
Water and Waste Water Treatment Systems


CCM Innovative Solutions Sdn Bhd

CCM Innovative Solutions Sdn Bhd (formerly known as Usaha Pharma (M) Sdn Bhd)
acquired the Innovative Group of Companies in 2011 to restructure the Group's polymer
business. The polymer business involves the manufacturing and marketing of polymer
coating solutions to the rubber glove industry in the ASEAN region to produce powder-
free medical examination and surgical gloves.







b) CCM FERTILIZER DIVISON

CCM Fertilizers Division manufactures and trades a complete range of fertilizers for all crop
needs. As the only fertilizer manufacturer in the country to have been accredited with the
prestigious SIRIM MS49:1994 product certification and ISO9001:2008 process certification,
and with a large dealer network, their fertilizers are readily available to the customers and
agricultural community locally and neighboring countries. Cock's Head Brand, the registered
trademark since 16 April 1953 is synonymous with quality fertilizers, is of guaranteed
composition of compound fertilizer which promotes efficient nutrient uptake by the plant and
manufactured under stringent quality control and assurance standards. For this division it
has been divided into four parts which are CCM Fertilizers Sdn Bhd, CCM Agri-Max Sdn
Bhd, CCM Agriculture Sdn Bhd and CCM Agriculture (Sabah) Sdn Bhd.

CCM Fertilizers Sdn Bhd



CCM Fertilizers Sdn Bhd is a leading fertilizer manufacturer and trading company in
Malaysia. They have the distinction of being the pioneer in the manufacturing of unique
potassium nitrate complex compound fertilizer. In addition to the compound fertilizer which
promotes efficient nutrient uptake by the plant, the company trades in a wide range of other
straight fertilizers, mixture fertilizers and specialty products like organic and foliar fertilizers.
The company is well known for offering total solution for the benefit of their valued
customers. The company's achievement in winning numerous awards such as CHB 44
Anugerah Barangan Cemerlang from MITI in 1985, NAfMA "Best Practice Award 2005 and
Winner of Enterprise 50 Award 2006. CCM Fertilizers Sdn Bhd is the first and only
compound fertilizer manufacturer in the country to have been accredited with both SIRIM
MS49 product certification (since 1992) and MS ISO 9001 process certification (since
1994).





A compound fertilizer is a complex homogenous product containing two or more of
nutrients that has undergone chemical interaction during the manufacturing process. The
chemical compounding is followed by the process of granulation with the addition of anti
caking agents to form free-flowing compound granules. Here there are some examples of
fertilizer product produce by them.
CHB Compound No.44 (12 / 6 / 22 / 3)

CHB COMPOUND NO.44 (12/6/22/3) A high potassium compound designed for high K
demanding crops like oil palm, coconut, cocoa, banana, tapioca, and pineapple.
CHB NO.45 (12 / 12 / 17 / 2+TE)

A specially formulated compound containing one-third water soluble phosphate and essential
trace element.
Loong Choong Pau Red (13 / 13 / 20 / 2+TE)

A new generation compound fertilizer formulated with well balanced nutrients essential for high
yields and quality of fruit vegetables and fruit crops.




CCM Agri-Max Sdn Bhd


CCM Agri-Max Sdn Bhd is a leading trading company that mainly trades and distributes
straight, mixture and other compound fertilizers locally. It is also expanding its international
businesses to other countries in the region. Wide trading networks have given them an
exclusive edge over others. They have a professional team of experienced personnel in the
fertilizer trade and are actively exploring new markets. Their clients consist of plantation
companies and large estates. The quality of their supplied products from all over the world
is widely recognized by their loyal customers.

CCM Agriculture Sdn Bhd


CCM Agriculture Sdn Bhd is the latest addition to the ever evolving CCM Fertilizers Division.
The company will continue to maximize the Cock's Head Brand, whilst innovating ranges of
compound fertilizers to better suit the Borneo region. Its new plant, located in Bintulu, will
adopt and adhere to the stringent quality control and assurance standards.


CCM Agriculture (Sabah) Sdn Bhd



CCM Agriculture (Sabah) Sdn Bhd in POIC Lahad Datu, Sabah produces the Cock's Head
Brand compound fertilizers. The RM70 million manufacturing plant is designed to meet the
specific needs of consumers in terms of price, accessibility and crops nutritional
requirements with a capability of producing 130,000 metric ton annually. CCM's operations
in Sabah will significantly create opportunities for local employment and further develop the
growing need for quality fertilizers in the region.

c) CCM PHARMACEUTICALS DIVISION

CCM Pharmaceuticals Division comprises of CCM Duopharma Biotech Berhad, CCM
Pharmaceuticals Sdn Bhd and Innovax Sdn Bhd. It develops, manufactures and market
generic drugs and branded pharmaceuticals products for consumers. As a leading
pharmaceutical manufacturer with products including blockbuster medications such as
Omesec and Vascor besides its many established brands such as Champs, Proviton,
Flavettes, Donna and Diamelon, CCM Pharmaceuticals Division is committed to expanding
both its ethical and over-the-counter products to fulfill emerging customer needs and
strengthen the company presence amidst the existing export markets particularly in ASEAN.

CCM Duopharma Biotech Berhad

Established as a pharmaceutical trading company in 1979, Duopharma was involved with
the import and marketing of pharmaceutical products. It then started the manufacturing of
tablets capsules and other oral preparations in 1986. In 1995, Duopharma shifted to its
present premises - a 85,000 sq.ft factory situated on a 130,000 sq. ft. land and started its

production of heamodialysis liquid in January 1996 and a month later, the production of
small volume injectables including eye drops, antibiotic powder and dental cartridges. In July
that same year, it started volume infusion production.



CCM Pharmaceuticals Sdn Bhd

CCM Pharmaceuticals is principally engaged in the manufacturing, distributing, importing
and exporting of pharmaceutical products and medicines. It operates within three units as
follows:-
Manufacturing Unit
o Upha Pharmaceutical Manufacturing (M) Sdn Bhd
Sales and Marketing Unit
o CCM Pharmaceuticals Sdn Bhd
Cephalosporin manufacturing facility in Glenmarie
CCM Pharmaceuticals has more than 30 years of history and has been cited locally as a
Tier 1 manufacturer by Frank and Sullivan for its quality products and has garnered
numerous award and recognitions both locally and regionally. It is the largest local producer
of generic drugs with nearly 300 products across a wide therapeutic group which includes
analgesics, antibacterial, antihistamines and many others. Its medications for
gastrointestinal and cardiovascular conditions - Omesec and Vascor respectively are
blockbusters in both the local and export markets. Both these products had also undergone
Bioequivalent (BE) studies successfully which affirmed that they are of the same chemical
profile as the innovators. Omesec was awarded the MITI Industry Excellence Award
Innovative Product in 2004.


CCM Pharmaceuticals also produces over-the-counter (OTC) products with about 200
items under established brands such as Champs, Flavettes, Provition, Naturalle, Uphamol,
Eye Glo, Sloan's, O-Fresh and Alucid. Champs have been voted annually as the consumers'
choice for children's vitamins, not only by the Malaysian consumers but also Hong Kong's.
Proviton, the brand for one-a-day multivitamins with Panax Ginseng IDB extract, won the
MITI Industry Excellence Award - Pioneer in Research of Excellent Product Quality in 1999.
Apart from being a contract manufacturer for multinational pharmaceuticals companies,
CCM Pharmaceuticals also exports its own products throughout ASEAN, Asia Pacific and
other parts of the world.

Here are the some products produce by them:-



ACETAN HCT
Losartan potassium & Hydrochlorothiazide

Dosage: 50/12.5mg
Tablet
Ellipse, yellow film-coated tablet, marked "CCM" on
one side and "50" on the other side
Packing: 30's


ACETAN HCT
Losartan potassium & Hydrochlorothiazide

Dosage: 100/25mg
Tablet
Ellipse, light yellow film-coated tablet, marked
"CCM" on one side and scored on the other side
Packing: 30's



BEAFEMIC
Mefenamic Acid B.P.

Dosage: 250 mg
Capsule
Size 1 Blue / Ivory / UPHA BEAFEMIC 250**
Packing: 100 x 10s





BEAFEMIC
Mefenamic Acid B.P.

Dosage: 50 mg
Suspension
Yellow / Vanilla
Packing: 90 ml




UPHAMOL
Paracetamol B.P.

Dosage: 250 mg
Suspension
Orange / Orange
Packing: 100 ml / 60 ml




UPHAMOL
Paracetamol B.P.

Dosage: 250 mg
Suspension
Pink / Fruity
Packing: 100 ml / 60 ml




UPHAMOL
Paracetamol B.P.

Dosage: 500 mg
Tablet
12 mm White / R / F, UPHAMOL**
Packing: 100 x 10s





UPHAMOL PLUS CODEINE
Paracetamol 500 mg
Codeine Phosphate 8 mg

Tablet
12 mm, R / F / S / Yellow**
Packing: 50 x 10s


Innovax Sdn Bhd

Incorporated in December 2001, Innovax is a dedicated R&D centre wholly-owned by CCM
with core activities in carrying out research and development in pharmaceutical products. It
provides scientific and technical knowledge and skill in the development of high quality, safe
and efficacious pharmaceutical products in the pre and post-registration drug development
stage.

Innovax occupies a 3-storey detached R&D building with 63,000 sq ft. The R&D office
(approx 15,000 sq ft) is located on the 3rd level while the 3 main laboratories are in the 2nd
level occupying 40,000 sq ft. It has a Formulation R&D Department that specializes in
developing pharmaceutical products which include nutraceutical, herbal and OTC. The
Analytical Department specializes in pharmaceutical chemistry analysis of raw materials and
finished products. Other departments include Regulatory Affairs, Quality Assurance and
Pipeline which are vital to the day-to-day R&D activities.

Technologies
Innovax has the special technology for all types of dosage forms with niche technologies in:-
Immediate Release technology
Slow-release and modified release technology
Palletisation technology




ii. Resources

A resource is a source or supply from which benefit is produced. Typically resources are
materials, services, staff, or other assets that are transformed to produce benefit and in the
process may be consumed or made unavailable. Benefits of resource utilization may include
increased wealth, meeting needs or wants, proper functioning of a system, or enhanced well
being.
Every business entity will have their own resources that different from other competitors.
Resources can be dividing into two categories which are tangible and intangible resources.
Tangible resources mean the asset that can be observed and quantified while intangible
resources is a asset that are rooted deeply in the firms history, accumulate over time and rare
relatively difficult for competitors to analyze and imitate.
Chemical Company of Malaysia Berhad (CCM) itself they have huge number of resources.
The tangible resources for CCM consist of financial resources, organizational resources,
physical resources and technological resources. The financial resource is the CCM ability to
generate funds through it internal operations. It also is the CCM capacity to borrow from the
institution. In addition, the organization resource of CCM is the formal reporting structure. Every
year they will prepare the report to be used in managing their business operation. In this report it
will provide them full information about the company operation through out the year.
Next are the physical resources which consist of the sophistication of a firms plant and
equipment, distribution facilities and product inventory. For product inventory, each division of
CCM has their own raw material and stock. As an example the raw material for CCM Chemical
Division is chlor-alkali that to produce soap and detergents. Moreover, every division of CCM
which are CCM Chemical, CCM Fertilizer and CCM Pharmaceuticals, they have their own plant
and machines to produce the product. For example CCM Fertilizers Sdn Bhd they used their
own machine in processing the raw material to make fertilizers which been named CHB NO.45.
CCM Agriculture (Sabah) Sdn Bhd is located at POIC Lahad Datu produces the Cock's
Head Brand compound fertilizers. In this division, they own the land which are valued of RM70
million. In this land they build the factory which is designed to meet the specific needs of
consumers in terms of price, accessibility and crops nutritional requirements with a capability of
producing 130,000 metric ton annually. CCM's operations in Sabah will significantly create
opportunities for local employment and further develop the growing need for quality fertilizers in

the region. Besides that, the technological resource of CCM is a pattern. In CCM
Pharmaceuticals Sdn Bhd they have their own pattern and brand in producing drugs and
branded pharmaceuticals products for consumers. The company also gains the HALAL
Certificates for each of the products.

The intangible resources of CCM can be divided into three which are human resources,
innovation resources and reputational resources. For human resources, this company had hired
knowledge, trust, skills employees for every department. This is because to make sure the
employees are competent to complete the job according to their expectation and target. Product
also can perform effective and efficiently based on the demand from the customers. Besides
that, the innovation resources are consisting of idea, scientific capabilities and capacity
innovate. They have large numbers of expertise for the Research and Development in every
division. For example, CCM Innovative Solutions Sdn Bhd acquired the Innovative Group of
Companies in 2011 to restructure the Group's polymer business. The polymer business involves
the manufacturing and marketing of polymer coating solutions to the rubber glove industry in the
ASEAN region to produce powder- free medical examination and surgical gloves.

Lastly is the reputational resource. The relations with the customers and shareholder itself
also can be said as intangible asset that CCM had. As we know, CCM had established since
1966 and been listed in Main Board of Bursa Malaysia. So this company had built a good
relationship with both of their shareholder and stakeholder. Every decision made by the
company also is for the purpose or interest of shareholders. CCM produce the product by
referring to the customers demand and satisfaction. Through this way they built the good
relationship with their customers.

In addition, the capacities, abilities and innovations of the employers are other intangible
resources that CCM had. It gives advantages to the company in producing the best and better
products compare to the competitors. By this way the products that have been produce are able
to compete with the competitors in the market. Besides that, their products also have their own
unique features which attract the customer and make them loyal to the company for a long term.





iii. Capabilities

The company combines individual tangible and intangible resources to create capabilities. In
turn, capabilities are used to complete the organizational task required to produce, distribute
and service goods that the CCM provides to customers for the purpose of creating value to
them. CCM had been produced customized product. The customized products can be
categories into CCM Chemical, CCM Fertilizer and CCM Pharmaceuticals as follows:-

CCM Chemical Division
CCM Chemical Sdn Bhd
Chlor Akali Business
Calcium Chloride
Caustic Soda Flake
Caustic Soda Liquor

Hydrochloric Acid
Liquid Chlorine
Sodium
Hypochlorite


Watercare Business

Alkalinity Booster
Aluminium Sulphate
Antifoam
Anti - Scaling and
Deposition
Biocides
Caustic Soda Liquor
Chlorine Scrubber
System
Ferric Chloride
Ferric Sulphate
Ferrous Sulphate
Hydrochloric Acid
Liquid Alum
Liquid Chlorine
Oxygen Scavenger
Polyaluminium Chloride
Polymers


CCM Usaha Kimia (M) Sdn Bhd
Water Treatment (potable, process and waste water, sewage)
Power
Palm Oil

Rubber
CCM Innovative Solutions Sdn Bhd.
Produce powder- free medical examination
Surgical gloves

CCM Fertilizer Division
CCM Fertilizers Sdn Bhd
CHB Compound No.44 (12 / 6 / 22 / 3)

CHB COMPOUND NO.44 (12/6/22/3) A high potassium compound designed for high K
demanding crops like oil palm, coconut, cocoa, banana, tapioca, and pineapple.
CHB NO.45 (12 / 12 / 17 / 2+TE)

A specially formulated compound containing one-third water soluble phosphate and
essential trace element.
Loong Choong Pau Red (13 / 13 / 20 / 2+TE)

A new generation compound fertilizer formulated with well balanced nutrients essential
for high yields and quality of fruit vegetables and fruit crops.

CCM Agriculture Sdn Bhd

Maximize the Cock's Head Brand, whilst innovating ranges of compound
fertilizers to better suit the Borneo region

CCM Pharmaceuticals Division

CCM Duopharma Biotech Berhad
Tablets capsules and other oral preparations.
Eye drops.
Antibiotic powder.
Dental cartridges.
CCM Pharmaceuticals Sdn Bhd

ACETAN HCT
Losartan potassium & Hydrochlorothiazide

Dosage: 50/12.5mg
Tablet
Ellipse, yellow film-coated tablet, marked
"CCM" on one side and "50" on the other
side
Packing: 30's


ACETAN HCT
Losartan potassium & Hydrochlorothiazide

Dosage: 100/25mg
Tablet
Ellipse, light yellow film-coated tablet,
marked "CCM" on one side and scored on
the other side
Packing: 30's




BEAFEMIC
Mefenamic Acid B.P.

Dosage: 250 mg
Capsule
Size 1 Blue / Ivory / UPHA BEAFEMIC
250**
Packing: 100 x 10s




BEAFEMIC
Mefenamic Acid B.P.

Dosage: 50 mg
Suspension
Yellow / Vanilla
Packing: 90 ml




UPHAMOL
Paracetamol B.P.

Dosage: 250 mg
Suspension
Orange / Orange
Packing: 100 ml / 60 ml




UPHAMOL
Paracetamol B.P.

Dosage: 250 mg
Suspension
Pink / Fruity
Packing: 100 ml / 60 ml





UPHAMOL
Paracetamol B.P.

Dosage: 500 mg
Tablet
12 mm White / R / F, UPHAMOL**
Packing: 100 x 10s




UPHAMOL PLUS CODEINE
Paracetamol 500 mg
Codeine Phosphate 8 mg

Tablet
12 mm, R / F / S / Yellow**
Packing: 50 x 10s



CCM Chemicals represents many world renowned principals in supplying a wide range of
INDUSTRIAL and PERFORMANCE chemical products to various industries with regional offices
in Malaysia, Singapore, Indonesia, Vietnam, Thailand and Philippines. Among strategies
identified for sustainable growth of CCM Chemicals business is the expansion of its research
and formulation activities. The R&D focus is largely on water treatment coagulants. In
collaboration with the principals, CCM Chemicals now blends metal finishing products locally.
Together with the knowledge and experience of their customers, such activity can only
encourage more formulations be developed to produce better performance products that are
value adding to their customer. CCM Chemicals has also embarked on research and
formulation of polymer applications in the rubber gloves industry. Their formulated products
have been widely accepted by customers.

Innovax Sdn Bhd occupies a 3-storey detached R&D building with 63,000 sq ft. The R&D
office (approx 15,000 sq ft) is located on the 3rd level while the 3 main laboratories are in the
2nd level occupying 40,000 sq ft. It has a Formulation R&D Department that specializes in
developing pharmaceutical products which include nutraceutical, herbal and OTC. The
Analytical Department specializes in pharmaceutical chemistry analysis of raw materials and
finished products. Other departments include Regulatory Affairs, Quality Assurance and
Pipeline which are vital to the day-to-day R&D activities. Innovax has the special technology for

all types of dosage forms with niche technologies in Immediate Release technology, Slow-
release and modified release technology and Palletisation technology. In conclusion, the
Chemical Division is focused on improving and expanding its portfolio with higher margin
products through innovation and collaboration. The Pharmaceuticals Division is laying the
foundations to become a regional champion by strengthening its product portfolio and
capitalizing on investments in niche therapeutic areas for ethical products. For its over-the-
counter products, the division is being more selective in reinvigorating their well known brands
to have a greater impact on the market. And finally, their Fertilizers Division is spending efforts
to increase the market share for their product by emphasizing on consistency in quality, OTIF,
competitive pricing and advisory services.























3. THE STRATEGIES AT THE CORPORATE LEVEL

Chemical Company of Malaysia Berhad (CCM) implemented moderate and high level of
diversification. The diversified company with a portfolio of business that have only a few
links between them is called a mixed related and unrelated firm and using the related
diversification company. CCM Bhd. uses this corporate-level diversification strategy. CCM
Bhd. have three diversification which are chemical, fertilizer and pharmaceutical division.
A company with related linked (mixed related and unrelated) generating less than 70%
of revenue from the dominant business, and all business share product, technological, and
distribution linkages. As company using each type of diversification strategy, companies
implementing the related linked strategy constantly adjust the mix in their portfolio of
businesses as well as make decisions about how to manage these businesses. Managing
CCM Bhd. which is diversified company is highly challenging, but CCM Bhd. appears to
have been well managed over the years given its success.
CCM Bhd. used a diversification strategy to increase the firms value by improving its
overall performance. CCM Bhd. used both operational and corporate relatedness in order to
build a competitive advantage by creating value for customers. CCM Bhd. wants to develop
and exploit economies of scope between its businesses. Operational relatedness means
firm sharing either primary activity or a support activity. CCM Bhd. used chemicals as their
primary input in all the three divisions which is fertilizer, pharmaceutical and the main
divisions itself which is chemical division. Although activity sharing across business is not
risk-free, research shows that it can create value. Gaining economies of scope by sharing
activities across a firms businesses may be important in reducing risk and in creating value.
Corporate-level core competencies are complex sets of resources and capabilities that
link different businesses, primarily though managerial and technological knowledge,
experience and expertise. This strategy help firms to create value because the expense of
developing a core competence has already been incurred in one of the firms businesses,
transferring this competence to a second business eliminates the need that business to
allocate resources to develop it. Same goes to CCM Bhd. which its transfers its chemical
core competence across fertilizer and pharmaceutical business. Besides, CCM Bhd. moving
its key people into a new management positions to make the company to become more
competencies.

4. STRATEGY IMPLEMENTATION

i. Customers relationship

In maintain the customer relationship in CCM; the company is using strategies of turning
customer interaction into profitable relationships. This strategy is known as reaping the
benefits of unified customer communication management. Effective customer
communication boosts customer loyalty, ensures brand and regulatory compliance, reduces
environmental impact and helps control a range of costs such as reductions in IT
maintenance, printing, call centre operations and postage. However, most organizations
take a fragmented approach to managing enterprise customer communications using
outdated technologies which are not consistent across the range of media channels that
people use today. Quocircas report examines how a CCM strategy can transform the
impact of customer communications at every customer touch point, controlling cost, driving
operational efficiencies and building customer loyalty.
The negative impact of irrelevant and unclear communications cannot be
underestimated. As customer interactions across media channels continue to grow, a
disjointed approach to communications will have profound consequences for any business
in the form of higher costs, customer loss and brand damage. Those businesses that stay
ahead of the competition will be those that develop a good CCM strategy that coordinates
multichannel communications, empowers business users and provides a rapid return on
investment. Businesses that do will reap the benefits of lower costs, improved efficiency and
greater customer loyalty.

ii. Product strategy implementation

Strategic measures undertaken include focus on improving and expanding its Chemicals
Divisions portfolio with higher margin products through innovation and
collaboration; fortifying its Pharmaceuticals Divisions product portfolio and capitalizing on
investments in niche therapeutic areas for ethical products; and driving consistency in
quality, On-Time In-Full (OTIF), competitive pricing and advisory services to enhance market
share for its Fertilizers Division.


The strategic initiatives needed to ensure continuous progress across all its businesses
while laying a strong foundation for future growth. This will make CCM focus on innovation
through research and development (R&D) to enhance product portfolio, improve operational
efficiency and seize growth opportunities in emerging markets. Innovation is key in meeting
the increasing demands and expectations of our customers, while staying competitive and
strengthening our position as a leading player in the core business.

The Chemicals Division continued to be the Groups top contributor despite lower prices
for its caustic soda and softening demand from the oleo chemical market in 2012 compared
to the previous year. The reduction in demand was compensated by sales of other Chlor-
Alkali and coagulant products which enabled the Division to maximize the utilization of its
plant while simultaneously embarking on various cost optimization programmers and
managing raw material costs.

The Chemicals Divisions trading operations was also streamlined, focusing on key
industry segments including health and hygiene, surface coatings, food and pharmaceutical,
polyurethane and the rubber chemical businesses. These efforts will equip the regional
offices to better capture the profitable growth potential of the industry segments that the
division is focusing on, in years to come.

Besides product innovation, the Division will add value to existing traded products
through the semi-manufacturing process. New products in 2012 included more advanced
features in its polymer coating system and introduction of effective cleaning agents used in
the production of powder-free gloves. CCMs Chemicals Division will also continue to invest
in human capital and laboratory facilities to accelerate the development of new products.

Meanwhile, CCMs Pharmaceuticals Division performed credibly during the period under
review, securing exclusive licensing and distribution rights from Biocon Ltd, India through its
wholly owned subsidiary, CCM Pharmaceuticals SdnBhd (CCMP) to market, sell and
distribute a range of insulin products in Malaysia and Brunei. This partnership between
CCMP and Biocon is expected to contribute positively to the Group in future.




The Pharmaceuticals Division also saw in early 2013 its three units CCM.
Pharmaceuticals Sdn. Bhd., Upha Pharmaceutical (M) Sdn. Bhd. and Duopharma (M) Sdn.
Bhd emerged as the pioneers in the industry to secure the worlds first Halal Pharmaceutical
Standard accreditation under the new standard MS2424:2012 Halal Pharmaceuticals
General Guidelines.

CCMs Pharmaceuticals Division was also adjudged the Pharmaceutical Company of the
Year - Generics Drug Category, in Frost & Sullivans 2013 Malaysia Excellence Awards for
exemplifying the Divisions commitment in offering innovative and high quality generic
pharmaceutical products to its customers. To drive regional expansion, the Division will
focus on the Philippines, Indonesia and Vietnam in line with the growth of the business and
on the back of additional registrations in the respective markets.

The Division will also target development of biosimilars, vaccines and oncology,
revitalize its over-the-counter (OTC) range, deepen and widen regional expansion and
reinforce leadership in the Halal pharmaceutical segment in 2013.

Meanwhile, the Fertilizers Division implemented various measures to improve its profit
margins in 2012. They include a review of the Divisions management line-up and
organizational structure, strengthening sales and business relationships, operational
improvements centered on OTIF deliveries, promoting consistent quality products,
developing cost efficiencies and executing better planning and supply chain management
processes.

A concerted drive to enhance branding and promote the Divisions products was also
implemented in 2012 focusing on direct marketing with end users, namely the farmers and
plantations through technical and training forums and road tours. In addition, Good
Agricultural Practices (GAP) training and agronomic services were Fertilizers Division to not
only position themselves as a fertilizers manufacturer but also as a solution provider to meet
the needs of its end users.

Going forward, the Divisions turnaround initiatives will emphasize the strengthening of
its market position, tighten the management of its supply chain, implement the Lean Six

Sigma methodology to achieve production efficiencies and costs savings, and manage
commodity and foreign exchange risk.

Year 2011 proved to be a challenging year for Chemical Company of Malaysia Berhad
(CCMB). In light of the volatile and competitive business environment, the Group has also
been focusing its efforts towards implementing comprehensive strategic initiatives to
bring about improvements in performance and to ultimately enhance shareholders
value.

In pursuit of growth and sustainable profitability, the Group aims to take advantage of the
business growth opportunities in East Malaysia and South East Asia. The total production
capacity of Fertilizers Division is expected to receive a boost from its Lahad Datu Plant
coming on stream. Pharmaceuticals and Chemicals Divisions will continue to strive to
enhance product portfolios, market penetration and profitability via strategic collaborations
with major industry players and academia in the region. The Group will also emphasize on
improving production and business efficiencies across the board. This is to ensure that the
Groups current business operations and ventures continuously improve and provide a
strong foundation for future growth.

iii. Employees relationship

In CCM, the Board retains full and effective control of the Group. This includes
responsibilities for determining the Groups overall strategic directions as well as
development and control of the Group. Key matters, such as approval of annual and
quarterly results, acquisitions and disposals, as well as material agreements, major capital
expenditure, short term and long term plans and strategies and succession planning for top
management are reserved for the Board. The Board has also established the authority limits
for Management to manage the business of the Group.
The Directors are required to make declarations on any potential or actual conflict of
interest in any transaction. Where issues involve conflict of interest, the interested Directors
abstain from discussing or voting on the matter. The Directors, collectively, have a wide
range of relevant expertise and experience to enable them to discharge their responsibilities
effectively. The wide spectrum of skills and experiences has given them an edge and an

added strength in terms of leadership and management, thus ensuring that the Group is
steered and guided by an accountable and competent Board. The Board, together with the
Audit and Compliance Committee and Risk Management Committee, review the internal
control and risk management systems within the organization in ensuring the custody and
effective and efficient utilization of Group assets.
There is a division of responsibility between the Chairman and the Group Managing
Director to ensure a balance of power and authority. The roles of the Chairman and the
Group Managing Director are separated and clearly defined. As part of good corporate
governance, the Chairman is responsible for ensuring board effectiveness and conduct. He
ensures that all relevant issues and quality information to facilitate decision making and
effective running of the Groups business are included in the meeting agenda. In doing so,
the Chairman will liaise with the Group Managing Director and the Company Secretary on
the agenda for board meetings.
The Chairman encourages healthy debates on issues raised at meetings and gives
opportunity to directors who wish to speak on the motions, either for or against them. Every
Board resolution is then put to a vote which would reflect the collective decision of the Board
and not the views of an individual or an interested group. The Chairman also chairs the
meeting of shareholders of the Group. At the general meetings of the Group, the Chairman
will ensure that the shareholders are given the opportunity to enquire on the Companys
affairs.
The Group Managing Director is critical to the performance of the Group. The Group
Managing Director provides the leadership and strategic vision of the Group. He oversees
the day-to-day running of the business including organizational effectiveness,
implementation of Board policies and strategies and clarifies matters relating to the Groups
business to the Board. His in-depth and intimate knowledge of the Groups affairs
contributes significantly towards the direction of the Group to achieve its goals and
objectives.
The Company has in place a succession planning program which inter alia includes
appointing, training, fixing of compensation and replacing Directors and senior management
of the Group. The Board acknowledges the importance of continuous education and training
to enable effective discharge of its responsibility. All Board members have attended the

Mandatory Accreditation Program (MAP) as prescribed by Bursa Malaysia Listing
Requirements.
The Directors are regularly informed of industry-specific conventions to enable them to
understand the industries within which the Group operates. The Company has initiated its
own comprehensive and formal training program tailored to the needs of the Board of
Directors. During the year, the Company has organized a seminar on Competition Act and
What it Means to CCM for the Directors of the Group which was facilitated by industry
expert as part of the Continuing Education Program.
The Board maintains a close and transparent relationship with the Management. Many
of the responsibilities of the Board are delegated to the Management. There is an adequate
degree of independence and process in place to allow directors to meet and actively
exchange views with the Management.
The Board is furnished with information relating to the running of the Groups operations
through various financial and operational monthly and quarterly reports prepared by the
Management. This will allow them to understand the operations better and make decisions
in steering the Company towards a profitable business. Board papers are prepared for all
agenda items to ensure relevant information is provided to assist decision making. The
board papers are supplied in a timely fashion with information in a form and quality
appropriate to enable the Directors to discharge their duties effectively.
The Chairman is primarily responsible for ensuring that sufficient information is provided
to the Board members to assist them in their deliberation. He ensures that all relevant
issues and quality information to facilitate decision making and effective running of the
Groups business are included in the meeting agenda. In doing so, the Chairman will liaise
with the Group Managing Director and the Company Secretary on the agenda for board
meetings. In line with this, the Company has established a board paper rating process
whereby all board papers tabled at Board Meetings will be rated based on contents and
presentation to ensure sufficient information are provided to the Board members for them to
make an informed decision.


5. STRATEGIC LEADERSHIP AND STYLE

i. Strategic Leadership and Style

Strategic leadership is the ability to anticipate, envision, maintain flexibility, and empower
others to create strategic change as necessary. Multifunctional in nature, strategic
leadership involves managing through others, managing an entire enterprise rather than
functional subunit and coping with change that continues to increase in the global economy.
Because of the global economys complexity, strategic leaders must learn how to effectively
influence human behavior, often in uncertain environments. The effective and efficient
strategic leadership is shapes from the formation of vision and mission of the organization
and through that it will influence the successful strategic actions of the organizations top
management. In order to achieve its vision and mission, the Chemical Company of Malaysia
Berhad (CCM) builds its strong foundation of the Group and leverages the strength and
capabilities of its subsidiaries. Although, in the CCM has three different division but they are
unite through the six core values that have been implemented through them. This six core
values includes passion, respect, responsible, integrity, teamwork and excellent. By this six
core values, each division would be able to achieve the vision and mission of the
organization.
The primary responsibility for effective strategic leadership is rest on the shoulder of the
top management which is particularly on the shoulder of the CEO, Board of Directors, and
the top management team. Thus, in the CCM this responsible is on the shoulder of its CEO
which is Dato Sri Azalinabinti Othman and EncikAmirul Feisal bin Wan Zahir. Even though,
strategic leadership is a complex and critical but Dato Azalinabinti Othman and EncikAmirul
Feisal bin Wan Zahir manage and be able to develop the strategic leadership in the CCM
effectively. This can be seen through the performance of the company itself.

ii. Top Management Team

As we all know that top level managers play a critical role in the organization. Top level
managers have to be able to effectively formulate and implement the strategies in the
organization. The strategic decisions of the top level managers would influence how the firm
is designed and the action to be done to achieve the vision and mission of the organization.

The job of top level managers is not only focus on the profit maximization but they are
requires to have a broad knowledge including the firms operations as well as the external
environments elements which is the general, industry and environment of the organization.
The Chemical Company of Malaysia Berhad (CCM) therefore form it top management
team that consists of the people with knowledge and expertise in order to operate the
internal organization as well as people that also can deal with the CCMs stakeholders.
Through that from our research, we have found that CCMs has been adapting a
heterogeneous top management team which is composed of the individuals with different
functional backgrounds, experience and education. For example, the CEO itself Dato Sri
Azalina is graduated in Master of Laws while EncikAmirul Feisal has qualification in
Bachelor of Science Economics and the others managers also have different education
background and qualifications. Having a heterogeneous top management teams give the
positive impact to the CCM because each of the top management would have different
perspectives and which in turn leads to better strategic decisions and result in higher firm
performance.

iii. Key Strategic Leadership Action

The most effective strategic leaders create viable options in making decisions regarding each of
the key strategic leadership actions. This action will interact with each other to achieve the
organizations vision over time. The actions that the organizations could be done includes
developing human capital and contributes to establishing a strategic direction, fostering an
effective culture, exploiting core competencies, using effective organizational control systems
and establishing ethical practices. In order for CCM to manage its resources effectively, they
have adapted the leadership action by developing human capital and social capital.
Human capital refers to the knowledge and skills of an organizations entire workforce.
At CCM, they believe that the driving force behind our success is their employees. As such, they
strive to provide them with the tools they need to be successful in their careers and at the same
time, enjoy a work-life balance. Thus, to appreciate their employees, CCM has launched the My
Career Acceleration Program (MyCAP) for the Companys non-Executive employees to
strengthen their skills, competencies and capabilities. This program is an upward mobility

program developed by CCM and aligned with the PEMANDU Workforce Transformation
Roadmap to transform the Malaysian workforce.
Beside human capital, CCM also focused on developing social capital. This social capital
involves relationships inside and outside the organization that help the CCM accomplish it tasks
and create value for customers and shareholders. CCM has involve in the Corporate Social
Responsibility (CSR) as they work towards integrating its business values and operations to
exceeds the expectations of its shareholders. Therefore, CCM has launched some programs to
bring changes in the community that they operates in and to enhance their corporate values and
adopt ethical business practices to improve the quality of life for all.
In conjunction with CCM 50
th
anniversary in 2013, CCM heightened its involvement in
the community with CCM working with various members of the society to reach out to people
who are in needed. One of the example is CCM has been providing food supplies to Malaysian
security forces on duty at Felda Sahabat during the Lahad Datu crisis in March 2013. Besides
that, CCM staff from Lahad Datu and Bintulu contributed monetary aid to purchase food
supplies for our security for our security forces involved with the hope to alleviate their burden
during the trying times.
On the other hand, CCM also participated in the Malaysia International Halal Showcase
(MIHAS) which served as an ideal platform to showcase the Groups extensive range of Halal
pharmaceutical products. MIHAS also gave the community the opportunity to inform and
educate consumers on the availability of Halal pharmaceutical products as well as to raise
awareness on the benefits of consuming Halal certified health supplements.










6. RECOMMENDATION AND CONCLUSION
Since Chemical Company Malaysia Berhad was an established company in Malaysia, its
corporate strategy are efficient and effectively. It is proven that by having Subsidiaries
Company in oversea such as Singapore, Vietnam, Indonesia and Philippines.
We suggested that this company should maintain its sustainable strategy in order to
achieve competitive advantage and earn above average returns. The top level manager of
CCM play a critical role in that day are charged to make certain their firm is able to
effectively formulate and implement strategy. The CCM formed a top management with
knowledge and expertise needed to operate internal organizations. A member of a
heterogeneous top management team consists of diverse background of education and
experience that give benefit to the firm in making the best decision. Heterogeneity among
top management team members promote debate which often leads to better strategic
decision. In return, better strategic decisions produce higher firm performance.
Besides, CCM has ability to maintain a good relationship with their customer. As we can
see, CCM has been operated at Malaysian market for 48 years. So, they already exist loyal
customer in their business as well as increase in number of customer from day-to-day.
As a conclusion, CCM can be a good example to other company to develop business
operations. A new entrants company can follow their strategy in order to survive their
business for long term.










7. REFERENCES





1. Berhad, C. C. M (2013). ANNUL REPORT CCM BERHAD 2013.
2. Ireland, Hoskisson, Hitt. (2011). The Management of Strategy Concept.
SOUTH-WESTERN CENGAGE Learning.