UNIVERSITI TEKNOLOGI MARA CAWANGAN PERAK

KAMPUS TAPAH

FUNDAMENTALS OF MANAGEMENT

(MGT162)

TITLE:

PROTON HOLDINGS BERHAD

Prepared By : NURUL SYAZA AISYAH BINTI YOSRI

Student ID : 2020851836
Programme : AC110
Faculty : Faculty of Accountancy
Prepared for : Madam Hasnida Binti Abdullah
 ACKNOWLEDGEMENT
In preparation of my assignment, I had to take the guidance and help of person who
deserve my gratitude. I would like to express my special thanks to my lecturer, Madam Hasnida
Binti Abdullah who give me the golden opportunity to do this assignment. Thank you Madam
for giving me a good guidelines for assignment throughout your lecturing in class.

In addition, I am extremely grateful to my parents for their love, prayers and sacrifices
for educating and preparing me for my future. Thanks to my parents who helped me a lot in
gathering information despite of their busy schedules.

Besides my parents, I would like to thank my uncle, Shariffudin Bin Mustafa that works
as Vehicle Programme Executive in Proton at Kuala Lumpur branch for giving me some latest
information about Proton.

Then, grateful acknowledgement to all my friends who never give up in giving their
support to me in all aspects of life. Thank you very much my friends. I will never forget your
kindness.

Last but not least, thanks to Allah S.W.T. for his mercy and guidance in giving me full
strength to complete this assignment. At first, I feel like I want to give up but Allah S.W.T.
makes it easier for me. Alhamdulillah.
 TABLE OF CONTENTS

PAGE
Introduction 1
Chapter 2 : Planning 2

➢ Vision and mission

➢ Types of planning
➢ Types of operational plan

Chapter 4: Organizing 5

➢ The organizing process

➢ Organizational structure
Chapter 6 : Leading 7

➢ Power
Chapter 7 : Controlling 8

➢ The controlling process

➢ Types of control
References 10
INTRODUCTION
Proton Holdings Berhad is a Malaysian automotive company and automobile corporation
active in automobile design, manufacturing, distribution and sales. The company is
headquartered in Subang Jaya and Shah Alam, Selangor, Malaysia with a manufacturing plant
in Tanjung Malim, Perak. Proton function mainly to manufacture, assemble and sell motor
vehicles and related products, including accessories, spare parts and other components.

Proton was puclicly listed on the Kuala Lumpur Stock Exchange(KLSE) in 1992 and its
shareholders include Khazanah Nasional Berhad, Petroleum Nasional Berhad, Mitsubishi
Corporation, Mitsubishi Motors Corporation, Employee Provident Fund Board and other local
and foreign investors.

PROTON’s model products include WAJA, GTI, WIRA, ISWARA, ARENA,

PERDANA V6, JUARA, PERSONA and EXORA. The range of 1.3, 1.5, 1.6, 1.8 and 2.0 litre
engines satisfies a wide spectrum of customers both locally and abroad. PROTON cars are also
known internationally as competitive and innovative automobiles, Proton now is being
exported to 50 countries like United Kingdom and continental European markets, thereby
realizing its goal of being an internationally successful Malaysian automobile manufacturer.

PROTON’s exports are the most successful in the United Kingdom due to its competitive
pricing strategy and its buyback arrangement with car rental companies in the country.
PROTON also benefited from the Generalised Preferences Scheme that made it easy for them
to enter the United Kingdom market. PROTON has introduced a few upgraded models with
higher engine capacity and sparty design to establish its presence internationally.

PROTON is focusing to be more customer-oriented and by producing competitily priced

and innovative products. It is therefore contributing to the Malaysia’s attainment of vision
2020.

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Planning
➢ Planning is the process of outlining the activities that are necessary to achieve the goals
of organisation.

Vision

“ To become a successful Malaysian automotive manufacturer globally”

Mission

Our company’s history is one of the remarkable achievements that we are proud. Our pride is
in the vital force that drives us forward and force us to take on new challenges. As a national
project, the Protons’ are committed to lead the acquisition of intellectual ability in the design
and technology that will drive the nation to achieve the status of an industrialized country. With
people as our main focus, we are committed to build a friendly organization, sensitive to
customer needs with clear communication leads to understanding and care.

Objective

 To spearhead the automotive industrialisation process and manufacturing

industries.

 To acquire/upgrade technology and industrial skills within the automotive

manufacturing industry.

 To strengthen the international competitiveness of Malaysia’s industrial

capability.

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Proton’s Strategies

Product and Service

 Customer orientation product and services.

 Developing new innovative product features.

Research and Development

 Conduct projects through collaboration with Malaysian and UK universities with some
funding provided by the Malaysian government.
 Development of new low cost flexible engine.
 Development on an aluminium-bodied vehicle and increased fuel efficiency.

Quality Management

 Adopt three-stage line inspection

i. Static evaluation on fitting and appearance exterior and interior cars
ii. Dynamic evaluation on function and drivability
iii. Final inspection before approved fit for delivery to customers
 Vendor quality addressed at source by using A Product Quality Planning (APQP)
teams.

Sales and Distributions

 Strengthening of domestic sales and service network to improve customer service and
maintain market share.
 Launched Customer Management Center known as ‘Proton I Care’ for customer to
contact with Proton Edar for product and service enquiry as well as 24 hours emergency
breakdown assist .
 International expansion plants and distributors to oversea countries such as Middle East
countries, Australia, United Kingdom, Indonesia and Singapore.

Human Resources

 Recruit, reward and retain the best employees.

 Internship program for graduate trainees’ implementation.
 Development communication of policies affecting employees.

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Operational Plan

➢ Operational plan outline the tactical activities that must occur to support the ongoing
operations of the organisations. Proton focuses on single-use plans.
1) Expenses Budget

This section looks into Proton’s expenses budget. The following assumptions are made
based on Proton’s Annual Report in previous years.
Assumptions:-
i. Research and Development is estimated at 5% from the Gross Profit
ii. Distribution costs is estimated at 15% from the Gross Profit
iii. Administrative expenses is 60% from the Gross Profit
iv. Other operating expenses is 5% from the Gross Profit’

The estimated expenses for Proton for the FY2018, FY2019 and FY2020 is as
follows.

Proton’s Estimated Expenditure (FY2018, FY2019 and FY2020)

2) Financial Projection
• Sales forecast
The sales forecast for the next three years from FY2018 to FY2020 is shown in
the table below. Proton targets to generate sales based on the number of car units
produced which are: 80,000 in 2018, 120,000 in 2019 and 200,000 in 202030
(Foon, W.F., 2018)

Proton’s Sales Volume (FY2018, FY2019 and FY2020

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Organizing
➢ Organizing is the process of determining the tasks to be done, who will do them and
how those tasks will be managed and coordinated.

Organizing process

Top-level manager

➢ Top-level manager also called senior management or executives. They set the
strategic goals of the organization and make decisions on how the overall
organization will operate. Senior managers are generally executive-level
professionals and provide direction to middle management, who directly or
indirectly report to them. In PROTON HOLDINGS BERHAD, Tan Sri Dato’ Sri
Haji Mohd Khamil Bin Jamil as Executive Chairman will pass down the strategies
developed by top to its middle-level manager.

Middle-level manager

➢ Middle-level manager include all levels of management between the first-line level
and the top level of the organization. The principal responsibilities of middle -level
managers are to direct activities which implement their organisation policies and
balance organisational demands on managers with the capacities of their employer.
Middle managers communicate the strategic goals of senior management to the
front-line managers. In PROTON HOLDINGS BERHAD, Pat Wahid as Group
Marketing will advertise the product through the media such as television,
billboard, commercial ad and others to acknowledge Malaysian about their new
product.

First-line manager

➢ First-line manager are the lowest level of management. They are responsible for
the daily management of line workers the employees who actually produce the
product or offer the service. In every work unit in the organization, there are first-
line managers. They have a very strong influence on the company although the fist-
line managers typically do not set goals for the organization.

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Organizational Structure

Assign responsibility for task accomplishment includes a performance to attain goals,

products, services, efficiency and effectiveness.

➢ In making structural decisions, managers have some common designs from which
to choice between two types that a traditional organizational designs and
contemporary organizational designs. Traditional organization designs include a
simple structure, functional structure and divisional structure. Another one,
contemporary organizational designs include team structure, matrix-project
structure and boundaryless structure.
➢ Proton’s organizational structure more to functional structure.

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Leading
➢ Leadership is a social influence process to influence people to achieve a common
goal. Leadership is the indirect ability to influence people by setting an inspiring
example that inspires people to pursue goals that benefit the organisation.

Power

▪ Expert Power
- In Proton Holdings Berhad, the employees may lack position power but they has
expert knowledge and competence that have a very strong influence in the company.

▪ Legitimate Power
- In Proton Holdings Berhad, all the employees have the position holds within an
organisation and responsibilities associated with particular positions. For example,
executive chairman, chief executive officer, supervisor or security guards.

• Theory of Michigan Studies is chosen by Proton Holdings Berhad which is introduced

by Rensis Likert, a researcher at University of Michigan. He identified two basic forms of
leader behaviour. Proton Holdings Berhad focuses most on employee-centered leader since we
think that this type of behaviour tends to be more effective. This is because the welfare of the
employees is guaranteed by Proton Holdings Berhad. Form this action, Proton Holdings Berhad
tends to increase the production of the car produced.

• Employee-centered leader
-The managers are interested in developing a cohesive work group and ensuring that employees
are satisfied with their jobs. Their primary concern is the welfare of subordinates. The
executive and the top management are not corporative and not capable to help Proton survive
in this crucial industries.

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Controlling
➢ Controlling is a process of monitoring performance and taking action to ensure desired
result.

The controlling process

1) Establish standards

Proton has establish not very quality but good product in order to given lower price to
the product that they sold. They establish standards at average quality for all the
product that had been produce by them but past few years Proton had made changes
over their standards where they establish new standards with more quality and better
improvement.
On 1890, Proton has produce its first car Proton Saga which is in average quality
with more cheaper price to compare to imported cars. Since then Proton had producing
more cars model but still in average quality such as 1990, Proton Saga Iswara and
Proton Wira, on 2000, Proton Waja, Proton Gen-2, Proton Persona and so on 2010 with
Proton Exora and Proton Saga (second generation). In 2012, Proton has change their
standards quality with Proton Preve which are of good and and better quality along
with strategy change made by Tun Dr Mahathir for Proton to become a world standard
car manufacture an on 2013 they prove it by producing another good quality car, Proton
Suprima S.

2) Measuring Performance
Proton performance through the years is a little bit rough but with their experts, they
measuring every performance of the years and Proton manage to survive thanks to
measuring and making more strategies to boost their performance. Proton Saga
launched on 1985 it got positive response from the Malaysian but poor sales due to
Proton inability to meet the high demand. However on 2002, Proton manage to bounce
back and recorded its highest ever sales volume with Proton Wira After that Proton
sales gradually decreased in the following five years due to competitive offerings from
Perodua. Through the year 2008 and so on the sales for Proton product had recovered
slightly.

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 3) Compare performance against established standards

Proton good performance when producing their first product is because they had
established standards that could attract the local consumer. They cheaper price due to
the average quality standards manage to increase their sales. However when there is a
competitors establish the same standard its cause Proton sale to drop much that
expected. Then Proton change their standard on 2012 and it is manage to increase
Proton performance a little.

4) Determine need for corrective action.

Proton improving their product with new generation and more types to offer and more
types to offer and more better saloon car design with the same quality and price. It
manage to caught consumer and other media eyes with the design and with more
convenient and family friendly design Proton stepping further on 2012 when Tun Dr
Mahathir made change strategies to established more quality product to increase Proton
performance not dramatically but increasing bit by bit every years.

Types of control

 Pre-action Control

➢ Proton Holdings Berhad use pre-action control to make sure their car has quality
and always sold well. Proton always survey the type and model in high ranked
and as what buyer like it. For example, if the car engine have a bit fault in wire
ring and make the car broken, Proton would not accept the car to be in their
showroom because of them quality is important. It is because to make sure their
customer satisfied with their car.

 Post-action Control

➢ Proton Holdings Berhad use post-action control to focus on the outputs of their
company after the transformation process is complete. It is known as corrective
control. If there are problem corrective action is under taken and applied to
future activities. For example, Proton always surveys their buyer if they
satisfied with the car or not.
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REFERENCES

1) PROTON official homepage (www.proton.com)

2) https://www.slideshare.net/ismailnoordin/proton-holdings-berhad-
malaysia 23
3) https://www.slideshare.net/izhaniithnin/proton-holding-strategic-
marketingmanagement
4) https://www.academia.edu/37510708/STRATEGIC_BUSINESS_PL
AN_FOR_PROTON_HOLDINGS_BERHAD
5) https://www.scribd.com/document/253931659/Management-Proton
6) http://www.studymode.com/essays/Background-Of-Proton-
721448.html
7) www.management-issues.com/.../3/leading-management.asp

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