UMW Holdings: sustaining a centennial corporation
Abstract
Title
UMW Holdings: sustaining a centennial corporation.
Subject area
Strategic Management and Organization Theory and Design.
Study level/applicability
Advanced undergraduate and MBA students taking courses in Strategic Management and Organization Theory and Design.
Case overview
By the end of 2011, five years short of its centennial anniversary, UMW Holdings was one of the biggest corporations in Malaysia, registering revenues of RM13.5 billion (US$4.5 billion), and net profit after tax of RM1 billion (US$0.33 billion). By that time, it had 110 subsidiaries, operating in four core businesses of automotive assembly and distribution of Toyota lines of products, automotive components and lubricants original equipment manufacturing (OEM) and replacement equipment manufacturing (REM), heavy equipment, and oil and gas drilling service. In September 2011, the company had targeted its Toyota automotive business to contribute to 50 percent of its revenues, while the other 50 percent would come from its other three businesses, by the year 2015. However, as of the first quarter of 2012, Datuk Syed Hisham Syed Wazir, the Group CEO and his management team realized that, at 72 percent, the automotive business was still the main contributor to the Group ' s revenues. As the company ' s Toyota assembly operation was limited exclusively to the Malaysian market, plus in the face of greater competition within the automotive industries, the company needed to set strategies to achieve its 50:50 plan. The case stimulates discussion on strategy formulation of a mature corporation, involved in diversified business portfolio.
Expected learning outcomes
Understanding the process of industry analysis, as well as the formulation and implementation of business-level and corporate strategies, enables case analysts to extend the concepts to many business situations.
Supplementary materials
Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.
Keywords
Acknowledgements
The study was funded by a UKM university-industry research grant, code INDUSTRI-2013-042, titled “Business Sustainability and Strategies for Growth”. The authors wish to thank Mr Rohaizat Abd. Rahman of UMW Holdings for access to the company ' s information, and Siti Khadijah Mohd Ghanie, MBA candidate at UKM-GSB, for her research assistance. It is intended exclusively to facilitate the teaching and learning of Strategic Management and Organization Theory and Design and does not imply effective or ineffective managerial decisions.Disclaimer. This case is written solely for educational purposes and is not intended to represent successful or unsuccessful managerial decision making. The author/s may have disguised names; financial and other recognizable information to protect confidentiality.
Citation
Che Senik, Z., Masood, A., Adham, K.A., Halid, N., Mat Isa, R. and Khidil, N. (2013), "UMW Holdings: sustaining a centennial corporation", Emerald Emerging Markets Case Studies, Vol. 3 No. 4. https://doi.org/10.1108/EEMCS-07-2013-0161
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:Emerald Group Publishing Limited
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