2. A Report on MGV Industries Sdn. Bhd.
Content:
1.1 Executive Summary
1.2 Company background
1.3 Business environment
1.4 Identification of business issues
1.5 Current use of IT
1.6 Future use of IT
1.7 Recommendations
& Implementation plan
3. Information Technology(IT) Strategic planning involves setting up a strategy
that a business will follow over a defined time period.
It can be for a specific part of the business, like planning a marketing IT
strategy, accounts and financing IT strategies, human resource management IT
strategies, production IT strategies or whole parts of the business organization.
Different businesses use various time periods for their IT strategic planning so
it depends on the type of industry.
As our MGV Industries Sdn. Bhd. ( a reputed apparel manufacturer) growing
businesses very fast so we use one year time periods for their IT strategic planning
.
4. We know IT Strategy should look to growth while business planning should
look to beginnings. Without successful IT strategy, a business has no direction. In
this report IT Strategy will focus on our goals and objectives for future growth
for the company.
Our IT strategy includes action plan. Without a good IT strategy, we will be
moving blindly forward. Our chance of achieving our goals will be significantly
diminished.
5. These are the critical components we considered during making the IT strategic
planning.
1. Business purpose
2. Organizational goals
3. Strategies for reaching those goals
4. Action plans to implement the strategy
5. Monitoring plan implementation
6. The company, MGV Industries Sdn Bhd (formerly known as Madura Industries
Ltd) manufactures, sells and distributes bottled beverages.
Their products consist of soft drinks, isotonic energy drinks and clarified
sparkling fruit juices.
In collaboration with Marditech Corporation (a Malaysian government
agriculture research organization), factory uses the latest enzymatic treatment and
micro filtration technology in their production.
7. The new 32,000 square-feet-built-up factory located at Lot 5602, Jalan Industri
2, Gong Medang Industrial Area, Besut, Terengganu, is GMP-compliant and
equipped with latest manufacturing processing technology and machinery.
Presently, the production capacity is 3.0 million litres, packed in 3275 million
pieces of assorted bottle sizes which translated into a revenue of
$ 2.5 million per month or $ 30.0 million per year.
8. They distribute their products through various sales channels which include
major hypermarkets like Giant, Mydin, Tesco and Carrefour.
Their products are also available at all major fast moving convenient outlets like
Petronas Mesra Store, 7-Eleven, KK Mart and Felda D’Mart.
They are now gearing for growth in local and export market by focusing on
tropical sparkling fruit juices through registered “S-Sotic” brand as well as
customer’s brand through contract bottling (OEM).
In addition, they also export products to Singapore, Brunei, Indonesia,
Myanmar, Cambodia, Maldives, Dubai and China.
9. MGV Industries is proud to announce that have been honoured with the
following awards and recognitions:
Prime Minister Award for Agriculture & Agro-Based Industry Sector (2012)
Innovation Award for Agriculture & Agro-Based Industry Sector (2012)
One Industry-One District Award First Place in Beverage Category (2012)
Entrepreneur of The Year Award for The State of Terengganu (2009)
Sales Achievement Award” from Mydin Berhad Hypermarket (2008)
Tesco Value Award” from Tesco Malaysia Hypermarket (2007)
10. 1.3 Business Environment
Threat of New Entrants / Potential Competitors: Medium Pressure
① Entry barriers are relatively low for the beverage industry: there is no
consumer switching cost and zero capital requirement. There is an
increasing amount of new brands appearing in the market with similar
prices than soft drink products
Threat of Substitute Products: Medium to High pressure
① There are many kinds of energy drinks / soda / juice products in the
market.
② Health Problem
11. 1.3 Business Environment
The Bargaining Power of Buyers: High pressure
① The individual buyer little pressure on it.
② Large retailers, like Tesco and giant, have bargaining power because of
the large order quantity.
The Bargaining Power of Suppliers: Low pressure
① The main ingredients for soft drink include carbonated water, phosphoric acid,
sweetener, and caffeine. The suppliers are not concentrated or differentiated.
12. 1.3 Business Environment
Rivalry Among Existing Firms: High Pressure
① Currently, the main competitor is Pepsi and Coke-Cola which also has a wide
range of beverage products under its brand. Both Coca-Cola and Pepsi are the
predominant carbonated beverages and committed heavily to sponsoring
outdoor events and activities.
② There are other soda brands in the market that become popular, like Dr. Pepper,
because of their unique flavors.
14. 1.4 Identification of business issues
Lack of Funds
Lack of New Product Development
Lack Advanced Technique Applied
Lack of E commerce, proper CRM, ERP and data base management
Lack of Proper Marking Development
15. ERP
Enterprise resource planning is an integrated system that our companies using to
manage business functions such as finances, materials, and human resources. At
present our company is using an ERP packages developed by local software
developer.
Official website:
At present our official website provides information about our products and our
contact information’s.
1.5 Current use of IT
16. Printing and storage:
Printing via hardware sharing through our company web server. For storing
our official files we use manual file holders.
Tele Conferencing:
Tele conferencing exactly that by allowing our company to stay in touch with
our clients. While we also maintaining some of the personal face-to-face
meeting with our clients.
1.5 Current use of IT
17. a. CRM:
Customer relationship management systems store customer information in a
centralised database. CRM systems can make sales teams more efficient by
speeding up leads and helping to retain customers by identifying spending habits
and opportunity for sell. We are proposing to use CRM software to increase our
customer services.
b. Cloud:
There aren't many business applications that can be run through the cloud these
days. An online study says that supplier has saved around 10,000USD a year by
moving its servers into Cloud Servers. So we are proposing to move our company
server into cloud server.
1.6 Future use of IT
18. c. ERP
Enterprise resource planning is an integrated system companies use to manage
business functions such as finances, materials, and human resources. Although it’s
traditionally been a tool for larger organisations, it is now becoming increasingly
popular in medium size companies. To grow our business more efficiently we
propose to upgrade our previous ERP software from any reputed ERP software
developer.
d. Business Intelligence
Business intelligence will enable our company to analyse data, such as sales
revenue and provides historical, current, and predictive views of business
operations.
1.6 Future use of IT
19. e. Video conferencing
Cutting down on travel costs and dead time out of the office can be particularly
useful if a company has clients spread across multiple locations. Video conferencing
does exactly that by allowing our company to stay in touch with our clients, while
maintaining some of the personal feel of face-to-face encounters.
f. Virtualisation
This technology will allow businesses to operate multiple servers from one piece of
hardware. Our company looking to reduce the running costs of their technology,
virtualisation could be the solution.
1.6 Future use of IT
20. g. Printing and storage
Electronic storage can result in substantial savings. We planned to buy a Kodak
scanner which allowed the company to manage documents through scanning and
storing in cloud.
h. Unified Communications
Unified communications will allow employees to send messages on one medium
and receive the same communication on another, providing businesses with the
flexibility to work remotely. It assigns a number to phone extension system.
1.6 Future use of IT
21. i. Open source software:
To analyse data for clients we will use open source platform software’s also. This
has saved the company time in having to develop a product from and the expense
of buying.
1.6 Future use of IT
22. Below are the IT strategies developed by us to help our business increase revenue
and growth through technology:
Plan once, plan again and repeat:. Plan a long-term strategy and develop a
yearly plan that aligns to our overarching goals.
Rise to the Cloud: Cloud technology provides cost savings, enhanced
productivity, and the ease of scaling our operations. Cloud-based services for tasks
like document storage, video conferencing, email and calendars are typically a
fraction of the cost of buying and maintaining servers and software.
1.7 Recommendation and implementation plan
23. Get mobile: Connectivity of our employees through mobile devices would be
benefited for employers and employees. Such as employers, reduced office
expenses, access to a larger talent pool and better business continuity are all big
advantages.
Invest in our online presence. An up-to-date, easy-to-navigate website is
crucial for our business. It is often a customer’s first impression of our business
and we want it to be a good one. Take the time to check out our competitors’
sites with our “consumer hat” on.
1.7 Recommendation and implementation plan
24. Social media : We should take advantage of the opportunity to grow with a
social presence; listen to what is being said about our brand online social media.
By sharing dynamic content, photos, videos and encourage others to do the
same.
Attract top talent: Play to our company’s strengths by implementing a flexible
work policy that will attract talent people to join our company. Advertise
openings on sites like LinkedIn and indeed, monster special attention to
comments from past employees on social media sites. By sharing our business
success stories on our website and social media as often as we can attract talent
who want to grow career with our business.
Don’t be afraid of CRM: Our study found that CRM was the most adopted, up
from 34 percent in 2010 to 65 percent in 2015. Our business should be ready for
better CRM as we have experienced bad situations previously.
1.7 Recommendation and implementation plan
25. Upgrade our hardware: Using outdated technology can not only cost us in
productivity, repeat customers and revenue, but it also can cause reputational
damage. Our study found more than 20% of consumers said they would
consider taking their business elsewhere rather than work with a company that
uses outdated technology. Upgrading to newer, more flexible technology such
as tablets or notebooks can enhance customer perception and experience.
Use “big data”: We have heard the buzz around “big data,” but for our
business, big data can be important. Leverage the opportunity to impart
personal touches; take the time to get to know our customers by engaging in
discussions during every visit. Keep a record of these interactions and set up
reminders in our CRM system for birthdays or anniversaries and provide
discounts in recognition of these special occasions.
1.7 Recommendation and implementation plan
26. Collaborate to win: Work closely with other businesses in our community to
plan sales, events and more. We can even collaborate to save money on things
we are ordering in bulk such as office supplies .
1.7 Recommendation and implementation plan
27. Conclusion
• At the end of our report we want to say that MGV industries are growing
medium size industries in Malaysia.
• If the industry can improve their IT strategy it will be very much benefited
for their company. We are now living in the era of technology. Everyone
likes to use laptops and smart phones. So if MGV industries focus on
Ecommerce and online brand promotion and marketing they can increase
their sales volume rapidly.
• At last we suggest MGV industry to take ideas and help from our study
report to develop their current IT strategy.
