Report Group 10 - Sample

COLLEGE OF BUSINESS
SCHOOL OF TECHNOLOGY MANAGEMENT AND LOGISTICS (STML)
BJMP 3073
PURCHASING MANAGEMENT AND SUPPLY CHAIN
SECOND SEMESTER SESSION 2018/2019
GROUP ASSIGNMENT 1: AEROSPACE COMPOSITE MALAYSIA
REPORT TOPIC:
CHAPTER 16: OTHERS SUPPLY RESPONSIBILITIES
CHAPTER 17: SUPPLY FUNCTION EVALUATION AND TREND
PREPARED FOR
DR. ADAM BIN MOHD SAIFUDIN
PREPARED BY GROUP 10
GROUP A & B
NO. NAME MATRIC NO

1. NURUL HAFIZAH BINTI AZMAN 251000
2. NUR ZUNNURAIN BINTI M MAZLAN 244593
3. MOHAMMAD FITRI BIN ABDUL RAHIM 244352
4. SITI NUR ZAFIRAH BINTI ABD RAZAK 244503
5. NOR NATASHA BINTI ABD. RASHID 244616
6. WONG GHI KANG 244489
7. AZIZAH BINTI ASRAF ALI 244277
8. AFIQAH BINTI BUGAL 244433
Submitted Date: 2 MAY 2019
BJMP3073 PURCHASING MANAGEMENT & SUPPLY CHAIN
Assignment Cover Sheet
Name: (Refer to group members’ profile)
Student ID Number: (Refer to group members’ profile) Group Name: Group 10
College: College of Business
E-mail Address: (Refer to group members’ profile)
Phone Number: (Refer to group members’ profile)
Assignment Name: Aerospace Composites Malaysia Sdn Bhd

Chapter 16: Other Supply Responsibilities
Chapter 17: Supply Function Evaluation and Trends
Subject Name: BJMP 3073 Purchasing Management and Supply Chain
Name of Lecturer: Dr. Adam Bin Mohd Saifudin
Due Date: 2 MAY 2019
Please tick the following and sign below:
 I certify that I have read and understood the plagiarism policy of the Faculty of Business
Management, UUM.
 I certify that this assignment is my own work; based on personal study and research, and that I have
acknowledged all material and sources in the preparation of this assignment.
 I certify that myself or another person has not previously submitted the assignment, for
assessment in any other unit or at any other time.
 I have not copied in part or whole or otherwise plagiarized the work of other students or persons.
Signed Date:
IMPORTANT: Please note that assignments will not be accepted without a completed cover sheet attached.
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PROFILE OF GROUP MEMBER
NAME : NURUL HAFIZAH BINTI AZMAN

MARTIC NO : 251000
BIRTH DATE : 9/8/1994
STATE : KUALA PERLIS, PERLIS
RELIGION : ISLAM
RACE : MALAY
COURSE : OPERATION
MANAGEMENT
EMAIL : fieyzahazman@gmail.com
PHONE NO : 017-4203325
SIGNATURE :
NAME : NUR ZUNNURAIN BINTI M MAZLAN

MARTIC NO : 244593
BIRTH DATE : 20/10/1996
STATE : BANDAR TENGGARA, JOHOR
RELIGION : ISLAM
RACE : MALAY
COURSE : OPERATION MANAGEMENT
EMAIL : ainmazlan25@gmail.com
PHONE NO : 011-14242535
SIGNATURE :
NAME : SITI NUR ZAFIRAH BINTI ABD RAZAK

MARTIC NO : 244503
STATE : KELANTAN
RELIGION : ISLAM
RACE : MALAY
COURSE : OPERATION MANAGEMENT
EMAIL : zafirahabdrazak90@gmail.com
PHONE NO : 01125687705
SIGNATURE :
i
NAME : MOHAMMAD FITRI BIN

ABDUL RAHIM
MARTIC NO : 244352
STATE : BATU PAHAT, JOHOR
RELIGION : ISLAM
RACE : MALAY
COURSE : OPERATION
MANAGEMNT
EMAIL : mohammadfitriabdrahim@gmail.com
PHONE NO : 013-7460778
SIGNATURE :
NAME : NOR NATASHA BINTI ABD

RASHID
MARTIC NO : 244616
BIRTH DATE : 15/11/1996
STATE : KUALA TERENGGANU,
TERENGGANU
RELIGION : ISLAM
RACE : MALAY
COURSE : AGRIBUSINESS
MANAGEMENT
EMAIL : rashnun96@gmail.com
PHONE NO : 017-9757064
SIGNATURE :
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NAME : WONG GHI KANG

MARTIC NO : 244489
STATE : KLUANG, JOHOR
RELIGION : BUDDHA
RACE : CHINESE
COURSE : AGRIBUSINESS
MANAGEMENT
EMAIL : ghikang1996@gmail.com
PHONE NO : 017-7094715
SIGNATURE :
NAME : AZIZAH BINTI ASRAF ALI

MARTIC NO : 244277
STATE : BATU CAVES, SELANGOR
RELIGION : ISLAM
RACE : MALAY
COURSE : AGRIBUSINESS MANAGEMENT
EMAIL : hazizarr2823@gmail.com
PHONE NO : 016-6161560
SIGNATURE :
NAME : AFIQAH BINTI BUGAL

MARTIC NO : 244433
STATE : MIRI, SARAWAK
RELIGION : ISLAM
RACE : KEDAYAN
COURSE : AGRIBUSINESS MANAGEMENT
EMAIL : afiqahbugal1996@gmail.com
PHONE NO : 011-31836496
SIGNATURE :
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ACKNOWLEDGEMENTS
We would like to express our deepest appreciation to all those who provided
us the possibility to complete this project.
Firstly, a special gratitude we give to our beloved and best lecturer, Dr.Adam
Bin Mohd Saifudin, whom contributes in stimulating suggestions and ideas in order for us
to come out with the quality report. He always helped us to coordinate our project especially
in writing this report and monitor our progress to make sure that they finished according to
the schedule given. We also would like to thanks him for his willingness to sacrifice his
time to give us valuable experience, enhance our thinking skills, and at the same time share
his great experience in order for us to be a better fresh graduate to the outside world. He
always encourages us to think out of the box and open our mind to think broadly. He teaches
us to be more independent in everything and polish our problem solving skills.
Furthermore, I also would like to acknowledge with much appreciation to the

Aerospace Composites Malaysia Sdn. Bhd. for the golden opportunities that allow us to
conduct a visit to their company. The managers and staff there are very warm welcoming
us to their company and they guide us very patiently throughout the visit. They explain in
very detail to us about their daily operation and elaborate to us the supply chain of the
company to ensure that we get as much information about their company. We are really
happy and thankful to them because that they manage to answer all the question given by
our group members in precise and in detail that help us a lot in completing this project’s
report.
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Moreover, we wish to acknowledge the cooperation and full commitment given

by our group members from Group A and Group B in completing our group project. We
are happy and grateful for the bonding that we create among our group members that make
us to work comfortable and help each other in sharing ideas and opinion.
Lastly, not to forget to our parents from both Group A and Group B for their
generosity in providing the sufficient financial and equipment along this project was carried
out which make our work progress went on smoothly and effectively.
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Group Member Photo
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EXECUTIVE SUMMARY
This report was written based on Aerospace Composites Malaysia Sdn. Bhd.
(ACM) after we had a site visit on 22nd of March 2019. The report was prepared based on
our chapter in the reference books of Purchasing Management and Supply Chain Chapter
16, Other Supply Responsibilities and Chapter 17, Supply Function Evaluation and trends.
In this report, we are able to identify and get a lot of information about ACM
we get to know how ACM was formed, when is ACM establish, ACM company
background, the products manufactured by ACM, how their operation runs in the company
and much more related information and is very useful and beneficial to us.
Porter’s five forces have also been used in this report which serves as a tool to
identify and analysing the competition of a business and in this case. Porter’s five forces
we were able to identify the competitors of ACM. The five forces included threats of new
entrants, threat of substitute products or services, bargaining power of customers,
bargaining power of suppliers, and also competitive rivalry. Through Porter’s five forces,
the company can assess industry attractiveness to understand whether new products or
services are potentially profitable and where should the company compete and position
itself to identify strengths, improve weaknesses and avoid mistakes. Besides, PESTEL
analysis has also been used to analyse the external factors that can bring impact to ACM.
PESTEL stands for political, economic, social, technology, environmental and legal.
Next, one of the most important parts of this report is the organization strategies
which consist of three parts, which are corporate strategies, business strategies and also
functional strategies. In the organization strategies part, we are able to identify the corporate
strategies, business strategies and also functional strategies of ACM. Besides that, this
report also consists of SWOT and TOWS of ACM which is related to our chapter which is
Other Supply Responsibility and; Supply Function Evaluation and Trends. SWOT stands
for strengths, weaknesses, opportunities and threats meanwhile TOWS is a tool for strategy
generation and selection.
As a conclusion, from this report, we had identified the background of ACM,
Porter’s five forces of ACM, the PESTEL, organization strategies as well as the SWOT and
TOWS.
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TABLE OF CONTENT
1.0 INTRODUCTION 1
2.0 COMPANY BACKGROUND 2-8
2.1 Company Overview 2
2.2 Logo of the Company 4
2.3 Vision 4
2.4 Objective 4
2.5 Core Value 5
2.6 Location 5
2.7 Management of the Company 6
2.8 Current Plan of Company 7
2.9 Product of the Company 7
2.10 Certificate of the Company 8
3.0 INDUSTRIAL PROFILE: PORTER’S FIVE FORCES 9-13
3.1 Bargaining Power of Suppliers 9
3.2 Bargaining Power of Customers 10
3.3 Competitive Rivalry 11
3.4 Threat of New Entrants 12
3.5 Threat of Substitutes 13
4.0 PESTEL ANALYSIS 14-19
4.1 Politics 14
4.2 Economics 15
4.3 Social 16
4.4 Technology 17
4.5 Environment 17
4.6 Legal 18
5.0 ORGANIZATION STRATEGIES 19
5.1 Corporate Strategy 20
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5.1.1 Performance Of Other Supply Responsibility In The Process

Of Company Main Financial Performance by Increasing
The Profit 21-22
5.1.2 Increase The Performance Of Supply Function Evaluation
And Trends In The Process Of Company Main
Financial Performance By Increasing The Profit 23
5.2 Business Strategy 24-28
5.2.1 Cost leadership 25
5.2.2 Differentiation Strategy 26
5.2.3 Focus 28
5.3 Functional Strategy 33-36
5.3.1 Department Human Resources 33
5.3.2 Department Finance 33
5.3.3 Department Engineering &Operation 33
5.3.4 Department Quality 34
5.3.5 Department Purchasing and Buying 35
5.3.6 Department Material Planning 35
5.3.7 Department Safety and Security 36
6.0 STRATEGIC ANALYSIS: SWOT AND TOWS 37-55
6.1 SWOT Analysis 37
S1A Only Company Produce This Product 38
S2A Long Term Production Planning 39
S3A Manage Well Disposal Product 39
S1B Fix Resource 41
S2B Good Relationship with Supplier 41
S3B Fix Customer 42
W1A Low Law Regulation 43
W2A Limitation To Manage The Material Disposal 43
W3A Lacking Of Knowledge And Resources 44
W1B Transportation Cost 45
W2B Lead Time 45
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W3B Different Time Zone 46

O1A Blueprint 2030 46
O2A: Reduce Material Disposal 46
O3A: Training Workers 47
O1B Low Competitor 48
O2B Technology Of Producing Product 48
O3B Supported By Big Company 49
T1A Improve the Investment 49
T2A Legal from Outsider 50
T3A Total Quality Management Control 51
T1B Currency Exchange Rate 52
T2B Risk in Transportation 53
T3B Law and Regulation of Trade 53
6.1 TOWS Analysis 55
7.0 STRATEGIC COMMENTS AND RECOMMENDATION:
BASE ON TOWS 56-63
7.1 SO STRATEGY 56
7.1.1 Positive Comments 56
7.1.2 Negative Comments 57
7.1.3 Recommendation 57
7.2 WO Strategy 58
7.3 ST Strategy 60
7.4 WT Strategy 62
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8.0 CONCLUSION 64-65
9.0 REFERENCES
66-71
APPENDIX A
72-73
APPENDIX B
74-77
APPENDIX C
78
APPENDIX D
79-81
APPENDIX E
82
APPENDIX F
83-95
APPENDIX G
96-97
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List of Figures
Figure 1: Sky View of Aerospace Composites Malaysia Sdn, Bhd, (ACM)
Figure 2: Logo of Aerospace Composites Malaysia Sdn. Bhd.
Figure 3: Maps of Aerospace Composites Malaysia Sdn. Bhd.
Figure 4: Organizational Chart and Top Management of Aerospace Composites Malaysia
Sdn. Bhd.
Figure 5: Product of the Aerospace Composites Malaysia Sdn. Bhd.
Figure 6: Certificate of Aerospace Composites Malaysia Sdn. Bhd.
List of Diagrams
Diagram 1: Porter’s Five Forces of Competitive Position Analysis
Diagram 2: PESTEL Analysis of ACM
Diagram 3: Organizational strategy
Diagram 4: Operational Process Flow of the Aerospace Composite Malaysia Sdn. Bhd.
Diagram 5: Waste Management Process flow of the Aerospace Composite Malaysia Sdn.
Bhd.
List of Tables
Table 1: SWOT Analysis
Table 2: TOWS Analysis
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1.0 INTRODUCTION
The report has been prepared related to the Purchasing and supply management in
Aerospace Composites Malaysia Sdn. Bhd. (ACM) which is located at Bukit Kayu Hitam,
Kedah that manufactures flat and contoured primary and secondary structure composite
bond assemblies and sub-assemblies for aerospace industries. The company offers aileron
skins, spoilers and spars; and flat panels, leading edges, tailing edges and miscellaneous
components. This company operates as a joint venture between Boeing Worldwide
Operations Limited and Hexcel Corp. This report has been done by referring to our
reference book which is “Purchasing and Supply Management” by the authors P. Fraser
Johnson which provide the information on other supply responsibilities and; performance
evaluation and trends. We have related the content of our report with Chapter 16 which is
“Other Supply Responsibilities” and Chapter 17 which is “Supply Function Evaluation and
Trends” in the Purchasing and Supply Chain Management book. (Johnson, 2020).
Precious knowledge and input about the supply chain management by ACM have
been gained through a site visit which is conducted by the Material Planning Manager of
ACM on 22nd March 2019. Through this opportunity given by ACM we were able to get a
lot of the information on the whole process and operation of the supply chain of the
company in much detail. Even though our group did not get the opportunities to see directly
the production process, but we manage to see on our own eyes the product and component
produce by ACM, plus with the detail explanation during the interview sessions which is
enough to give us the clear picture on the production process. All the question regarding
the supply chain process had been answer clearly by the Material Planning Manager which
help us a lot to relate with our chapter regarding environment and; supply evaluation and
trend.
All the inputs and details we obtained during the site visit to ACM enable us to
learn a lot of things especially in terms of environmental, supply evaluation and trend.
Organization strategies of ACM are discussed and identified based on these acquired
information and our interview sessions. These important data had also helped us to carry
out SWOT and TOWS analysis of ACM which is the major analysis in our report.
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2.0 COMPANY BACKGROUND
2.1 Company Overview
Figure 1: Sky View of Aerospace Composites Malaysia Sdn, Bhd, (ACM)
Aerospace Composites Malaysia Sdn. Bhd., or had been known as ACM. The
company was founded in 1998 and it based in Bukit Kayu Hitam, Malaysia. ACM operates
as a joint venture between Boeing Worldwide Operations Limited and Hexcel Corp. In
September 2002, ACM get fund $32 million to ACM plant which is officially opened by
Tun Dr. Mahathir Mohamad (MAIA, n.d.).
In addition, ACM was formerly known as Asian Composites Manufacturing Sdn.

Bhd. and on November 2013 the name was changed to Aerospace Composites Malaysia
Sdn. Bhd. ACM was the company that base on manufactures flat and contoured primary
and secondary structure composite bond assemblies and sub-assemblies for aerospace
2
industries. It also offers aileron skins, spoilers, and spars; and flat panels, leading edges,
trailing edges, and miscellaneous components (MAIA, n.d.).
Furthermore, in 2005, ACM became the world’s sole producer of aileron

composites for the Next-Generation 737 commercial jetliner. Before producing ailerons,
ACM was the sole producer and distributor of the fixed trailing-edge composite and fixed
leading-edge composite for the Boeing 737, 747, 757, 767 and 777 commercial airplane
models (MAIA, n.d.).
In 2008, Boeing selected ACM to provide the elevator and rudder machined
honeycomb core for the 777. Next, on November 2013, ACM celebrated a 40 percent
expansion to support increased production by Boeing Commercial Airplanes. The $17
million investment allows ACM to continue expanding production of composite flight
surfaces for all Boeing airplane programs, including the 787 Dreamliner. Last but not least,
in 2017, ACM commenced with new 777X work, including composite fixed trailing edge
panels and empennage panels. In May of 2018, ACM was recognized as having an
outstanding safety culture, achieving 5 years and 10 million-man hours without a lost time
due to injuries (MAIA, n.d.).
Next, ACM get their major supplier from 5 countries which is USA, it has 16
vendors that supplying PrePreg, adhesives, core, paint, metallic part and fasteners. The next
country from Canada, have 1 vendor which supply aluminium mesh while from Europe
country it has 3 vendors that supply fabricated metal part and rubber seal. From Korea
(Hize Aero) it supply aluminium strips for 787 program and Singapore it has various
distributorship supplier. In Malaysia, they also get supplier from SMEA, Malaysia that
provide aluminium strip 747 VCK (Slide ACM, 2018).
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2.2 Logo of the Company
Figure 2: Logo of Aerospace Composites Malaysia Sdn. Bhd.
2.3 Vision
The vision that ACM implemented in their organization is “The Best

Aerospace Manufacturing Company in South East Asia” (Slide ACM, 2018).
2.4 Objective
The objectives of ACM are about safety, quality, delivery, value and lean.
For the safety, ACM will maintain a safe and healthy work environment to ensure
their workers, stakeholder, people and other feel safe when they are in their place.
For quality, ACM will provide quality products and services to our customers
which they will ensure their product that had been produce by them will have high
quality products. Meanwhile for delivery, ACM delight their customer by
exceeding their expectations and for value, ACM continuously enhance value to
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their stakeholder. Next for lean, ACM will constantly adapt lean practices and
innovation in all they do (Slide ACM, 2018).
2.5 Core Value
In whatever ACM do, 4 core values will be defining as ACM. Firstly, people
whom it means ACM, really make sure their relationship between the workers in
good relationship because they were a part of successful in ACM. Secondly, it is
an integrity which is about do the right thing and treats others with respect. Thirdly,
the stakeholder success which means ACM will ensure their customer feel them are
important in part of their organization and meanwhile for their customer they will
give their respect to ACM. Lastly, corporate citizenship which is ACM try to
contribute as much as they can to help the society (Slide ACM, 2018).
2.6 Location
Figure 3: Maps of Aerospace Composites Malaysia Sdn. Bhd.

Below show the address and contact number of Aerospace Composites Malaysia Sdn.
Bhd.: -
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Address: Lot 224, Kawasan Perindustrian Bukit Kayu Hitam, 06050 Bukit Kayu Hitam,
Kedah, Malaysia.
Contact number: +604-922-2777 or +604-921-7700
Email address: contactACM@acmsb.com.my
Social media: Facebook: ACM Bukit Kayu Hitam
2.7 Management of the company
Figure 4: Organizational Chart and Top Management of Aerospace Composites

Malaysia Sdn. Bhd.
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2.8 Current Plan of Company
One of the current plans of ACM is implementation new machine. It is one of the
important parts in this company. This is because ACM had a future plan or project that
requires them to install new machine to ensure them had capabilities to run their project
(Interview 1, 2019).
2.9 Product of the Company
Figure 5: Product of the Aerospace Composites Malaysia Sdn. Bhd.
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2.10 Certificate of the Company
Figure 6: Certificate of Aerospace Composites Malaysia Sdn. Bhd.
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3.0 INDUSTRIAL PROFILE: PORTER’S FIVE FORCES
Diagram 1: Porter’s Five Forces of Competitive Position Analysis
3.1 Bargaining Power of Suppliers
This style analyzes how much power a business provider has and how much control
it has on the potential to rise its price that can lower business profits. When the number of
suppliers are less, the more power they have. Businesses are in a better position when there
have a large number of suppliers (Martin, 2018). ACM has purchased various inputs of raw
materials from suppliers that contribute to different costs (Interview 1, 2019). Strong
suppliers can use their negotiating leverage to impose higher prices or demand better terms
from industry competitors that lower industry profits (Harvard Business School, 2008). If
there are only one or two suppliers in supplying an important input product, ACM will
incur losses on the product being produced. For example, ACM as a buyer has assumed
that the cost offered is very expensive or takes a long time to ship raw materials on time
and then the supplier company will be bargaining power of purchase order. There are some
suppliers in Malaysia who support all Boeing Commercial Airplanes (boeing, 2013). They
consist of composite panels, main structural assemblies, engine fans, precision machine
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parts, and landing gear and avionics systems (boeing, 2013). ACM also has indirect supply
chain and direct purchase (Interview 1, 2019). Direct purchase is the receipt of goods
directly from the supplier itself without charging the transportation. Direct purchase also
has certain items that can be delivered on their own. Purchase indirectly also purchases of
support items to manufacture products in operational use such as machines. ACM import
the materials from United States, Singapore, Korea, UK and China to get quality raw
material for company (Interview 1, 2019). The power of the supplier can help ACM to
practice planning, analyze how much they want to buy, satisfy the quality and order
purchase orders process.
3.2 Bargaining Power of Customers
Buying power is lower when costumers purchase products in small amounts and
the seller’s product is very different from any of competitor (Martin, 2018). Power for
buyers is fairly high in the aerospace manufacturing industry (Gregory, 2009). ACM takes
great care on the assessment of the delivery, service and quality of a product so customers
can receive satisfaction on the product it purchases. ACM also uses purchase orders to
order raw materials from suppliers (Interview 1, 2019). ACM is responsible for ensuring
the quality of raw materials received by suppliers to meet customers need. This force
examines the power of the consumer and their effect on pricing and quality of products
(Martin, 2018).
ACM Company often force aggressive to produce a quality material for aircraft
manufacturers. Airlines ordering a large number of planes like countries such as China,
who combines orders from state-run airlines, can press for astonishing discounts from the
prime contractors (Gregory, 2009). These orders are a relatively large percentage of the
aerospace prime contractors' total sales, so buyers are in a valuable position to demand
price reductions (Gregory, 2009). The switching costs for aircraft and engines are very low,
which increases the buyers' power. ACM has many regular and loyal customers with their
service such as HE BAA (Australia), CCAC (China), MHI (Avi Industry), Sprit Aero
system (Subang) and Nikesoo (Vietnam) (Interview 1, 2019). Customers are very satisfied
with the quality of products marketed by ACM.
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3.3 Competitive Rivalry
According to Porter, competitive rivalry related to the presence of several factors

including the number of competitors, rate of industry growth, product or service
characteristic, amount of fixed costs, capacity, and height of exit barriers and diversity of
rivals (Gregory, 2009). The rivalry competition is high when there are just a few businesses
selling a same product or service in this industry. In this cases, customers can be easily
switch their supplier to others competitors who is offering for little cost (Martin, 2018).
Competitor companies often offer better quality products and services than their own.
ACM decided to create a new product which competitors did not produce the same product
with it. This is the strongest strength of ACM to compete with the competition with
competitors (Interview 1, 2019). The main driver is the number and capability of
competitors in the market. Many competitors have offering the different products and
services and reduce market attractiveness (CGMA, 2013). Highly competitive industries
generally earn low returns because the cost of competition is high.
ACM must be wise in managing chemical waste when making the engine parts of
the airplane and not harming the people around. ACM also must keep the market so that
marketable products are always known throughout the country and can compete with
competitors and also can increase profit (Interview 1, 2019). This force examines how
intense the competition currently in the marketplace which is determined by the number of
existing competitors and what each can do (Martin, 2018).
ACM desperately seek to win large orders from airlines to try to recover their high
fixed costs and their large investments required to develop new aircraft’s components
(Gregory, 2009). Increasing use of ACM in the exterior and interior of commercial and
military aircraft is driving the growth of the aerospace composites market across the globe
(Research and Markets, 2017). However, high processing and manufacturing costs and also
lack of standardization in aerospace composites manufacturing technologies are the factors
expected to restrain the growth of the ACM market during the forecast (Research and
Markets, 2017).The industry’s prime contractors are equally balanced and have very little
differentiation in their product lines which increases even more the intensity of the
competition (Gregory, 2009).
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3.4 Threat of New Entrants
This force considers easy or difficult for competitors to join the marketplace in the
industry. The barriers to entry include absolute cost advantages, access to inputs,
economics of scale and well-recognized brands (Martin, 2018). When more companies
compete for the same market share, profits start to decrease. It is essential for existing
organizations to create high barriers to enter the new entrants (Jurevicius, 2013). ACM
always strives to create new products to ensure that the products are made to achieve the
goals set and meet the market requirements.
The government has targeted targets for 30 small-scale manufacturing industries to

engage in aerospace in 2020 (The Star Online, 2018). ACM also provide intensive training,
skills in a field and provide a highly skilled trainer (Interview 1, 2019). More entry of
newcomers into the aerospace industry causes ACM's gain to decline. The growth of the
market can be attributed to the increasing demand for lightweight and more efficient
aircraft, increasing passenger transportation due to affordable carriers in emerging regions,
replacement of old aircraft and modernization of existing aircraft, and growth of the
aviation industry in developing economies. Lack of standardization in manufacturing
technologies and a limited range of material options are the key factors restricting the
growth of the market ( PR Newswire, 2019).
The threat for entry into the commercial aerospace industry the aircraft is very low.
New aircraft components require extremely high investments accompanied with great risk
and inability to get a positive return on that investment for many years (Gregory, 2009).
ACM has a long learning or experience due to its complex assembly and testing operations
and workers performing to do complicated tasks. ACM also required the training workers
to help the processes manufacture aircraft’s components and identify and separate scrap
materials (Interview 1, 2019). Aircraft industry can understand this learning curve after
many years of continuous investment in research and development. Now, the worldwide
aerospace industry has well-established firms with an abundance of resources to react
against any potential entrants (Gregory, 2009).
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3.5 Threat of Substitutes
This force is threatening when buyers can easily find substitute products with
attractive prices or better quality. There is when the buyers can switch from one product or
service to another to the lower cost (Jurevicius, 2013). When a new product cannot meet
the requirements that ACM wants to produce the product and will be reduce the profit.
ACM must always evaluate and focus on quality, price, delivery and service in marketing
a product to a higher market (Interview 1, 2019). Competitors make a lower prices and
quality compare to the ACM has being examined and how much of a profit that competitors
can earning to determine if they can lower their costs even more (Martin, 2018).
ACM Company has no substitute’s product. There is high possibility of risk if there
is other company produces the same product as ACM. To produce a specific component of
the airplane, it needs a high cost, skilled workers, advance technology and professional
suppliers. Since this is a monopoly production, there is a low possibility to have another
company to produce same product as ACM. This airplane product is not easily can be
access by other company and it is difficult to find a new supplier to support this kind of
product. The airplane is difficult to find opportunities and expand the business into the
diversification involving composites aircraft interiors, aircraft seats and transportations.
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4.0 PESTEL ANALYSIS
Politics
Legal Economics
ACM
Environment Sosial
Technology
Diagram 2: PESTEL Analysis of ACM
4.1 Politics
Politics factors are related to the pressure and opportunities that have actually
brought by the political institutions and also to what degree the government policies are
like to give the impact to the business of that company. Aerospace Composite Malaysia
Sdn. Bhd. (ACM) has many suppliers across the world. The major supplier that ACM
imported their raw material is from Canada, Korea, UK, Singapore, Austria and USA. All
of this country may have their own government policies that ACM may need to follow.
The political issue that might be facing by ACM is inter-country relationship,

bureaucracy, internal political issue and government term and change. This is because if
one of those political issue occurs it will also make an impact to the ACM. If anything
happened to one of their supplier in those countries especially their direct supplier that
involve with their finish product it will give an impact to their company for continues their
14
operation. However, this is the risk that will take places for the ACM that they need to take
precautions action if it occurs. Not all country has a good deplumation with Malaysia.
Moreover, ACM is the American company that operates by Malaysian. Here the
government policies issue will take place as them became a risk for the ACM to continue
their relationship with their supplier in others country that doesn’t have a deplumation
relationship with Malaysia or any issue regarding the political issues with Malaysia
On the other hand, the rule of regulation and law is also one of the political issue
that related with ACM. Most of ACM raw materials that they purchased from the other
countries are likely will be transported by sea transportation, therefore they will fall under
every rule and regulation and law of the country. Even though the freight transportation
will be covered by the supplier it is still will give an impact to the ACM as they will be
facing the risk of their raw material that they purchased form that supplier (Interview 1,
2019).
4.2 Economics
The economic recession and financial crisis have caused people to reduce their
spending especially on travel. This reduction in passenger demand has led to cancellation
of aircrafts orders. However in the fast growing economies countries like China and India,
there is an increase in spending on air travel, which caused the increase in demand for
aircrafts in those countries. As they have a news on sales cancellation on a global scale in
aircraft manufacturer of Boeing. According to Aerotime.aero portal, Boeing had a total of
5,011 737 Max 8 orders, including 4,661 of them as a backlog, as of January 31 this year
(Bahari, Boieng may face sales cancellation on global scale, 2019). ACM are the only
Boeing Company that produce fuel dock for Boeing in Malaysia aircraft this issue will
surely give impact for ACM to continue their operation, and will make ACM lost their
profit if the issue is keep rising. Besides that, there are other effects on economics, such as,
the fluctuation in the fuel prices, the congestion and other environmental restrictions, as
well as the prospect of higher security and insurance costs to reflect the risk of terrorism.
15
The global tourism industry trend also has the impact on the sales of the aircrafts.
In aircraft industry basically ACM does not have any competitors in Boeing sector the only
rival they have are from the CTRM Company in Melaka it is an Airbus company from
Europe it’s owned by the PRB HI-COM Company (Interview 1, 2019). ACM said that they
don’t want to make any competitors or a rival in aircraft industry as they were the only
company in Malaysia that manufactured part for Boeing and also CTRM for Airbus.
According to ACM, they actually wanted to build a good relationship with CTRM so they
can help each other and maintain the economic for both company in aircraft industry in
Malaysia (Interview 1, 2019).
4.3 Social
Social factor is more related to the culture aspects, the community of that company
has been involved for their business and social aspect. Besides that, the attitude and beliefs
also are the factor in social issues that will certainly affect the company business operates.
ACM also contributes to helping people who in needs. All the scarps and wasted from the
ACM which have a value that they can obtain by selling it, they will donor it for those who
in needs under the Cooperate Social Responsibilities (CSR) Program. ACM has been
actively involved in community engagement initiative through various welfare and
charitable activities. All the profit they got from selling those scraps or wasted totally will
goes to the CRS Program and charity event.
Moreover, in ACM they have their own team that need to cope with their working
time or office hour according to the foreign company which is their customers or their
supplier. For example, the working hour for 8:00am in USA is 11:00pm in Malaysia.
Therefore, the workers need to start working on that time, unlike the normal time zone in
Malaysia. This team consist 5 to 7 people. They are responsible with the foreign business
operation. ACM also have a training program for new workers, it takes 2 weeks training
before those workers can officially work for ACM (Interview 1, 2019).
16
4.4 Technology
The technological aspect that can be relates in technology are the innovation,
barriers and to what degree these can give impact to the business in Aircraft Industry. ACM
have introduced a few machine for their operation that relates to their product. The machine
is costly for more than a Millions. This machine will make their operation more efficient
and have more updated high technology that will keep their operation in track and can
produce more than they have now. Besides that, ACM also use a SyteLine System, which
is an ERP Manufacturing Software, is an extended manufacturing system that allows
manufacturer to compete successfully against time. This system can increase customer’s
satisfaction for ACM by delivers the orders on time and also minimize error-prone in
manual steps. This system can make sure ACM keep all the product in track for deliver
time to customers and make sure the lead time is accurately according to the customer’s
order.
4.5 Environment
Environmental factors relate to the ecological and environmental aspect that will
affect the productivity for ACM and how they operate. In ACM, beside focus on the core
business strategy of production and operation they also make sure to balance the ecosystem
in their workplaces. In Aircraft Industry, they are possibility they that will use the chemical
substances in their product. Therefore, they will make sure all the chemical or hazardous
material or wasted are careful handled by their company and respective company to dispose
the waste that involve with hazardous wasted (Interview 1, 2019).
This is to make sure that they maintain the ecological system of their company.
ACM also planted the biological plant in their work places. Besides that, the other issue
that relates with environmental factor is the risk that ACM need to take if there are nature
disaster happened when the supplier sent their material to the ACM through Sea
transportation. For example, in 2018 ACM supplier in China had transport their raw
material to ACM but due to the big storm in the sea, the shipping of that raw material is
stuck in Vietnam. This will affect the lead time for the ACM to continue their operation
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finish on time, because of that, ACM had to choose the Air freight transportation from
Vietnam to continue their shipping material to ACM in Bukit Kayu Hitam even though it
will highly cost towards their company (Interview 1, 2019).
4.6 Legal
Legal are likely relates and falls into laws, regulation and legislation. The entire
major supplier for ACM is from the various countries from across the world. Most of ACM
material from that international country needs to be declared by the Immigrations
Department of Malaysia before they arrive or came to Malaysia. To complete the
declaration process ACM need to fill in the K1 form. K1 form is the form for declaration
of good from abroad to enter to Malaysia. The purpose of this form is, it shows the payment
for the procurement of your imported goods, the information pointing to the tariff code,
import duty and tax of your goods (Interview 1, 2019).
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5.0 ORGANIZATION STRATEGIES
1. Increase the Performance of Other Supply

Responsibility in The Process of Company Main
Corporate Financial Performance by Increasing the Profit
Strategy 2. Increase The Performance of Supply Function
Evaluation and Trends in The Process of Company Main
Financial Performance by Increasing the Profit.
Business  Cost Leadership

Strategy  Differentiation
 Focus
 Operational Process Flow

 Waste Management Process
Flow Chart
Function  Department Human Resource
Strategy  Department Finance
 Department Engineer &
Operation
 Department Quality
 Department Purchasing &
Buying
 Department Material Planning
 Department Safety & Security
Diagram 3: Organizational strategy
An organizational strategy is the sum of the actions a company intends to take to

achieve long-term goals. Together, these actions make up a company’s strategic plan.
Strategic plans take at least a year to complete, requiring involvement from all company
levels. Top management creates the larger organizational strategy, while middle and lower
management adopt goals and plans to fulfil the overall strategy step by step (Johnson S. ,
2019).
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Strategy can be formulated at three levels, namely, the corporate level, the business
level, and the functional level. At the corporate level, strategy is formulated for your
company as a whole. Corporate strategy deals with decisions related to various business
areas in which the company operates and competes. At the business unit level, strategy is
formulated to convert the corporate vision into reality. At the functional level, strategy is
formulated to realize the business unit level goals and objectives using the strengths and
capabilities of your company. There is a clear hierarchy in levels of strategy, with corporate
level strategy at the top, business level strategy being derived from the corporate level, and
the functional level strategy being formulated out of the business level strategy (Amin,
2016).
5.1 Corporate Strategy
Corporate Strategy is concerned with how companies, like Disney, create value
across different businesses. It takes as given the RC lessons on competitive strategy, and
asks how the corporation can add value over and above that which a business unit creates
by itself. This requires the corporation to invest in a valuable set of resources, craft the
business portfolio, and design the organization structure, systems and corporate functions
to share activities or transfer skills across businesses (Sharer, 2016).
The corollary of effective corporate strategy is that there is a limit to the scope of
the company. This insight suggests that issues of corporate strategy apply to firms of every
size and in every sector. Should a start-up build its own sales force or rely on third party
distributors? Should an entrepreneur focus on a single niche or expand scope to serve many
verticals? Thus while the course naturally covers strategy in large diversified companies,
it also features smaller companies that appear to operate in a single business (Sharer, 2016).
20
5.1.1(A) Increase the Performance of Other Supply Responsibility in The Process of

Company Main Financial Performance by Increasing the Profit.
In the company it has their own scrap, surplus and excess materials but how they
want to handle it to ensure this thing can make a contribution to a company? In lecture
class, Dr Adam had been mentioned about this topic which no matter how well or big
company, the company could not run from waste, scrap, surplus and obsolete. The
existence of this class of material is the result of wide variety causes. There is a few of
factor causes that company or factory faced the material disposal and invest higher in
recovery (Lecture 1, 2019).
According to ACM representative, the company will make sure all the chemical or
hazardous waste are careful handled by their company and respective company appointed
by them to dispose the hazardous waste. The corporate level strategy will outline whether
the company should compete in or withdraw from each of these lines of businesses, and in
which business unit, investments should be increased, in line with the vision of ACM
Company (Interview 1, 2019).
That actions are to make sure the ecological system of their company keep
maintains. ACM also gain profit from scrap and waste of their production process by
selling them to the authorize company and all the fund from that sales revenue were
channelled to their company Corporate Social Responsibility (CSR) program that help the
society who in needs (Interview 1,2019).
The social responsibility of an organization should be understood as a multi

stakeholder approach, whose basic methodology may be described through a process of
identification of interested parties, recognition of 478 actual and anticipation of potential
problems which may arise from establishing relations with them and the creation of
adequate strategies, policies and processes for dealing with these issues. The use of the SR
(Social Responsibility) concept should expand the horizons of social accountability of an
organization, i.e. to elevate its level of awareness about financial, environmental and social
implications of its behaviour to the wider social community. Within this context, it is
necessary to overview in high detail the relations between such influences and various
stakeholders and interested parties of an organization (Djuric Mladen1, 2012).
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ACM is improving their CSR program along with the process of improving their
main financial performance which is they targeting to increase their company profit form
60 million to 65 million per year (Slide ACM, 2018). To get their target come true, they
are planning to purchase a new machine for their production line in order to increase their
production outcome and smoothest their production process. By increasing their
production outcome, the company are able to satisfy more of their customer requirement
in term of quantity and quality that they want. For example, when the customer requirement
had been satisfied the company will be able to go forward to approach a new market. This
will result to increase the demand of their product not only from the current market but
also from the new market.
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5.1.2(B) Increase the Performance of Supply Function Evaluation and Trends in

The Process of Company Main Financial Performance by Increasing the
Profit.
Performance measurement according to Wong (2009) describes the feedback on
operations which are geared towards customer satisfaction and strategic decisions and
objectives. They further pointed out that performance measurement reflects the need for
improvement in operational areas which are found wanton in performance measures. The
performance measurement is the process of quantifying the efficiency and effectiveness of
actions. When you can measure something and express it in numbers, you have good
background knowledge about it; otherwise your knowledge about it is meagre and
unsatisfactory. The effective performance measurement is necessary in supply chain
management as a performance measurement as having the benefits of stabilizing the
process and identifying areas for further improvement within the system (Wong, 2009).
Measurement of performance will also reveal whether there is need for an

organization’s continuation in its current method (maintaining the status quo) or adopting
a re-engineering of its system to affect the areas which are found deficient. Lack of
adequate performance measurement has been identified as one of the major obstacles to
efficient supply chain management. It is an established fact that in order to improve supply
chain effectiveness and realize a smooth flow of resources within it, there is a need to
measure its performance (Wong, 2009).
The changing demands and increasing expectation of supply have led to a need for
supply managers with broader and deeper knowledge and skill sets. Metrics also need to
be established to capture results as they occur throughout the process (Lecture 2, 2019).
For example, ACM applying supplies management performance Metrics to their

suppliers. Traditionally, company have concentrated on analysing their own internal trends
by comparing their current supply performance with their own past performance to
determine improvement (Interview 1, 2019). By doing that, ACM can know whether they
supplier performance are good or not, so they can plan what action that they can take to
their supplier if their performance is giving negative effect towards the company
performance and image.
23
ACM’s top managers are plan to run this supply evaluation frequently and
periodically in order to be very sensitive towards any change in their supplier performance
to avoid any complication happened through their way of achieving their company future
target which is earning more profit in the process of company main financial performance
There are many benefit of a careful appraisal of supply performance such as it

focuses attention on the priority area, making it more likely that objectives will be realized,
it provides data for taking corrective action, if needed, to improve performance, it should
help to develop better internal relationship by isolating problem areas, it spotlights training
needs of personnel, it provides information to senior management about supply’s
contribution and those people performing at a better-than-normal level can be identified
and rewarded, which should improve motivation in the organization (Johnson P. F., 2020).
5.2 Business Strategy
Business level strategies are formulated for specific strategic business units and
relate to a distinct product-market area. It involves defining the competitive position of a
strategic business unit. The business level strategy formulation is based upon the generic
strategies of overall cost leadership, differentiation, and focus. For example, your firm may
choose overall cost leadership as a strategy to be pursued in its steel business,
differentiation in its tea business, and focus in its automobile business. The business level
strategies are decided upon by the heads of strategic business units and their teams in light
of the specific nature of the industry in which they operate (Hamel, 2016).
24
5.2.1 Cost Leadership
Cost leadership or had been known as low cost business strategy. The cost
leadership strategy is exactly that it involves being the leader in terms of cost in your
industry or market. The cost leadership strategy implies supplying products in a more cost
effective way than competitors do. It also simply being amongst the lowest-cost producers
is not good enough, as you leave yourself wide open to attack by other low-cost producers
who may undercut your prices and therefore block your attempts to increase market share.
Therefore, need to be confident that you can achieve and maintain the number one position
before choosing the cost leadership route (Zaware P. D., 2016).
5.2.1 (A) Increase the Performance of Other Supply Responsibility in The Process of
In this part ACM do is they are choosing to upgrade their machine to the higher
technology machine to substitute the obsolete machine. This is one of step, that ACM take
to cut cost of maintenance their old machine. Of course, purchasing a new high technology
machine is a bit costly but, it is necessary for ACM to invest in technology that can bring
down the costs such as labour, materials and etcetera (Interview 1, 2019). This is also a
way of sustainably cutting costs below those of other competitors besides keep improving
the quality of product produced. The greatest risk in pursuing a cost leadership strategy is
that these sources of cost reduction are not unique to you, and that other competitors copy
your cost reduction strategies.
In addition, to achieve the company objective which is to increase their profit, their
top management also targeting to increase the other supply responsibility of their company.
ACM’s top managers also plan to improving their Company Social Responsibility (CSR)
program by channelling the fund they got from selling their valuable waste and scrap to
this program instead of using it to cover the other expenses of their company or to cover
up the cost of buying a new machine or equipment (Interview 1,2019). These show, the top
managers of ACM are applying the cost leadership in their business strategy.
25
5.2.1 (B) Increase the Performance of Supply Function Evaluation and Trends in The
Process of Company Main Financial Performance by Increasing the Profit.
ACM also are targeting to increase their supply function evaluation and trends by
applying supplies management performance metrics to their suppliers. The major challenge
to improve supply performance metrics and evaluation methods and to get validation of
supply’s result is to receive recognition as a major contributor to organizational success
where supply’s contribution must be effectively captured and communicated. In this part,
ACM also will ensure their supplier will meet the entire requirement that company want.
In way, to prevent any negative issue occur and become more efficiency in their business
5.2.2 Differentiation Strategy
Differentiation involves making your products or services different from and more
attractive than those of your competitors. To implement this depends on the exact nature
of your industry and of the products and services themselves, but will typically involve
features, functionality, durability, support, and also brand image that your customers
value (BJ, 2019).
To successfully implement differentiation strategy, all a company need to do is a

careful analysis of customer’s requirements and preferences, to identify the feasibility of
integrating various differentiating features into a unique product that contains desired
attributes. On the successful implementation of the strategy, the company can price the
product higher than its competitors and receive customer loyalty, as the consumers may
be accustomed to the unique features. Differentiation features may include product
performance, ease of use, useful life, and superior service and so forth (BJ, 2019).
26
In addition, to make sure ACM will be different from other companies, they will
ensure the entire supplier will follow all the guideline that ACM give and at the same
time ACM also will always monitor the quality of product. ACM also make sure that all
their supplier is not involve with any misconduct that can be harmful or give negative
effect to the environment or personnel. They will never compromise with their
misconduct behaviour and not hesitate to abort them from being their supplier. ACM are
very strict to their supplier and never to take any risk which can affect the reputation of
their company (Interview 1, 2019). For example, ACM are very emphasizing how they
manage waste by strictly selecting a company to handle their waste to ensure they are not
subject to any offense in managing the waste. Because of their strictness on handling
waste, they got their certification by OHSAS 18001- 2007 Occupational Health Safety
Management Systems and ISO 14001- 2004 Environmental Management Systems. This
certification has spawned their company name and has been able to convince their
suppliers and customers to continue dealing with them (Interview 1, 2019).
In ACM, they prioritize the production of quality product to deliver to their

customers. They also will run several inspections on their product before it being shipped
to the customer to ensure their product quality. For sure, they once receive returned
product from their customers because some defect they overlooked, but this occurrence
rarely happened in ACM. If it’s happen, ACM will examine their production line to
identify the cause of the defect and if defect had been detecting it was from supplier,
ACM will start to run evaluation about their performance. At the same time, they will do
their best to fix it and keep implement the continuous improvement to make sure it will
not happen again in the future (Interview 1, 2019). Because of ACM’s frequent evaluation
on their supplier, they are able to maintain and improve their quality of product and the
most important part is that they are able to satisfy their customers with the services they
27
provide to them. This achievement can attract more customers to deal with them and
indirectly increase their sales revenue as well as meet their targets to increase their
company profits (Lecture 2, 2019).
5.2.3 Focus Strategy
Companies that use focus strategies concentrate on particular niche markets and,
by understanding the dynamics of that market and the unique needs of customers within
it, develop uniquely low-cost or well-specified products for the market. Because they
serve customers in their market uniquely well, they tend to build strong brand loyalty
amongst their customers. This makes their particular market segment less attractive to
competitors (Mind Tools Content Team, 2018).
ACM are owned by multi billions company and what ACM have is they are the
only company that produce the panel that fit the aero plane that other company did not
produce. For example, of the product is like the fuel door and 737 ailerons. In the world,
these two types of product only produce at ACM and cannot be found at another place.
ACM also did not have competition by producing this product and they have the power
to control the price (Interview 1, 2019). So, in this situation ACM get a good opportunity
either they want to increases the price or they can maintain the price. For the customer,
who need ACM service need to follow all the decision that had been made by ACM.
28
In a niche market, ACM is more concentrating on producing part to build a plane

which more specific on the wings part of the plane. To produce these parts, ACM need a
supplier to fulfil their expectation on the quality of the raw material to make sure the part
they produce are met the requirement from their customers to gain their trust and loyalty.
Apart of that, ACM are more seriously on selecting of the raw material from their suppliers.
They conduct periodic assessments of their suppliers to ensure that the raw materials they
supply are at a satisfactory level of quality and achieve the standards set by the company
(Interview 1, 2019). This affects mainly the quality of the products they produce and can
directly satisfy customer demand for their quality products. Once a company is known for
the quality of the products they produce, the company can take this opportunity to set prices
that are comparable to the quality of the products they produce. This situation in turn can
increase the company's profits.
29
Operational process flow
Supplier
Plan the
Negotiation quantity
Purchase
order
Diagram 4: Operational Process Flow of the Aerospace Composite Malaysia Sdn.

Bhd.
According to this process flow, first they will recognise who are their suppliers and
after that they will choice that supplier. The chosen supplier will be responsibility to
transport their good to ACM. They will ensure the safety of ACM product and deliver it
on time also arrive in the time given. They will arrange all the process and schedule to
move the good from the port to container and then it will transfer it to ACM warehouse.
Usually, all charge will go to transport company (Interview 1, 2019).
Next, after that they will start plan the quantity which is analysis when to order and
what to order with a few considerations. Start from that, ACM will start to estimate or plan
how much they want to order to ensure their operation can be continuing without any
problem. At the same time, they will ensure the safety stock can survive until the last day
of their production (Interview 1, 2019).
30
After that, the company will estimate the quantity of the product that they need to
purchase and the company will place the order. In this moment, they can pay first by cash
or progress cash also it can credit their payment which following the day payment term.
All of this will depends on their contract which is ACM and supplier or ACM and customer
about what kind of payment they need to pay (Interview 1, 2019).
Last is negotiation. In this process, they will discuss about quantity either their
supplier can make it or not. ACM also will discuss about price, freight origin fix, terms and
condition, cost of delivery and others thing. They will discuss about their contract until
they can achieve their agreement. In ACM, they also will open the tenders to see who are
most compatible. It also was one of their way to evaluate their supplier (Interview 1, 2019).
Waste Management Process Flow chart
Company
Corporate
Social Schedule
Responsib Waste
ility
Scrap
Value
Diagram 5: Waste Management Process flow of the Aerospace Composite Malaysia

Sdn. Bhd.
31
According to this process flow, first they will recognise who is their supplier and
after that they will choice correct company to handle waste. The chosen company will be
responsibility to transport ACM waste either chemical or scrap. The company also must
have license for disposal waste. They will organise all the waste and move it out from
ACM. They will arrange all the process and schedule to move the waste from the ACM to
save place and then it will do the separation of the waste at designated place (Interview 1,
2019).
Next, after that they will start plan to schedule to transfer the waste that had ACM
had. At this time, they must ensure during transfer the waste the safety of workers is
guaranteed and no accident might be happening at that moment. All the workers, that
involve in this activity must wear safety clothe and protection especially during remove
chemical waste. Company that assign by ACM must ensure that, all the waste had been
separates according their part and for the chemical, it need to disposal at waste area
After that for scrap value, ACM will sell all the scrap value to any organisation that
will accept that scrap. The money that ACM will get from selling scrap value will be
directly given to people who in need. They will not take this money (Interview 1, 2019).
Last is Corporate Social Responsibility (CSR). In this process, they will discuss
about the profit they get from selling scrap value. They will recognise or identify what they
want to do either give to orphanage house, help people in trouble or others. This is one of
contribution that ACM can give back to society. By doing this, they hope they can ease the
burden that had been face by the society (Interview 1, 2019).
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5.3 Functional Strategy
5.3.1 Department Human Resources
In this department, they will help company to managing employee relationship

between employee and employee also employee and organization. They also will try their
best to maintaining good work condition in ACM which is the department try to minimize
the number of accident in company during work time. They also will involve in part of
recruitment and selection of the worker. Next, they will ensure their worker get staffing,
compensation and benefits during them working with ACM. They also will give their
worker training in way to make their worker more competent in their field (Slide ACM,
2018).
5.3.2 Department Finance
Finance directors are members of a senior executive team with responsibility for
their company’s financial health. They combine operational and strategic roles, manage
accounting and financial control functions, and establish a financial strategy for the
profitable long-term growth of the business. To fulfil the role, they must have the versatility
and talent to meet a continually changing set of circumstances (Linton, 2019).
Furthermore, finance department will ensure their assets and liability in good
condition. They also will find any program that ACM can join to expand their business and
prepare the contract that ACM will sign with their supplier or project. They also will
involve in information technology for ACM. They will ensure ACM always get a latest
technology in their organization (Slide ACM, 2018).
5.3.3 Department Engineering & Operations
Engineering and operations management represents the most important level of

management in an organization. Contemporary open market competitive environment
requires competitiveness and efficiency of business. Quality of products should also be
provided timely and with the lowest possible expense. This is exactly what engineering
33
management is, and that’s why it’s no wonder that engineering manager is one of the
highest-paying jobs in old market economies.
Every company has its own operational (business or production) function, because
every organization, whether it is profit or non-profit oriented, provides some kind of a
product or service. Operational function has a central place, i.e. it is of utmost importance
in organizations, because it provides production of goods and services, which is the reason
why such organizations exist. Operations management should be studied thoroughly
because it is responsible for satisfying customers’ requests by providing efficient and
effective delivery of goods or services. Engineering and operations management is a unique
field in private education which is nowadays extremely important in service and
manufacturing organizations, profit and non-profit sector, state and private companies,
financial institutions (Shaffer, 2018).
This department will do engineering job also design all the product of ACM. At the
same time, director will monitor activity supplier chain in way to make sure it can run
smoothly. Director also will be responsible in innovation and technology of the product.
He or she must ensure all the facilities like machine in ACM will be maintenance according
to schedule that already planning (Slide ACM, 2018).
5.3.4 Department Quality
The responsible for this department is to development, implementation, and strict

adherence to a quality program. Develops or reviews standards, policies, and procedures
for all functions and departments involved with or related to the production of all products.
The Director of Quality has the ultimate authority and decision over the shipment of any
product or products and accepts the responsibility for products being in compliance with
all regulatory and company standards (Slide ACM, 2018).
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5.3.5 Department Purchasing and Buying
Purchasing Department is a vertical focused on functional activity of buying raw

materials, goods and services. It includes supplier identification and selection from where
you will be buying the goods, negotiating and contracting, supply market research, supplier
measurement and improvement and purchasing system and development (Operations and
Supply Chain Terms, 2012).
This process is importance because it had been used to identify user requirements
and identify compatibility suppliers. ACM need to evaluate either their supplier can
contribute to the company or not. Through this process they can make shortlist which
potential supplier that can help them in future. After do shortlist, ACM need to review back
their potential supplier who will meet the requirements that ACM need. They also will
conduct a questioner and interview to see their answer and from this session ACM will
choice the good company to collaborate with them.
This department also will act as the primary contact with the supplier. They will be
directly contact with supplier, customer, organization and others (Shelly, 2018). All the
information, will through first this department because customer, supplier and firm will
contact them and inform them what they need. This department also need to build a good
relationship with people around them in way to make it more efficiency and effectiveness.
5.3.6 Department Material Planning
This department was a part of manufacturing team and ensure the flow of materials
was necessary for manufacturing process. They also need to conduct material requirements
planning (MPC) which it will be helpful to them to plan or monitor inventory balance. By
apply this system in firm; it might less the burden for Department Material Planning. It will
help to forecast for production and sales also you can see either have a problem during
operation process or supplier sent their good (Kalina, 2016).
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5.3.7 Department Safety and Security
This department was the important, which they need to ensure the safety of
employee in their workplace. They need to ensure all the workers follow the rule that
company had been mention before they enter the company. In ACM, they are really strict
and look forward as a serious matter about safety in workplace. Employee’s ACM cannot
use their phone during walking, if they need to use it they need to stop walking even before
they can enter the factory, they must ensure they use shoes, protect their eye and others.
This rule had been applying to employee and visitor in way to prevent accident had been
happening (Interview 1, 2019).
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6.0 STRATEGIC ANALYSIS: SWOT AND TOWS
6.1 SWOT Analysis
SWOT analysis is a strategic tool that can help companies analyse their situation
and conditions they are faced with, summarize for their past and make a developing
strategy and plan for future life and evaluate. “S” capital stands for strengths and “W”
stands for weaknesses, “O” stands for opportunities, “T” stands for threats. Strengths and
weaknesses belong to internal factors and opportunities and threats are external factors.
STRENGTHS WEAKNESSES
S1A: Only Company Produce This Product W1A:Low Law Regulation
S2A: Long Term Production Planning W2A: Limitation To Manage The Material
Disposal
S3A: Manage Well Disposal Product W3A: Lacking Of Knowledge And Resources
S1B: Fix Resource W1B: Transportation Cost

S2B: Good Relationship With Supplier W2B: Lead Time
S3B:Fix Customer W3B: Different Time Zone
OPPORTUNITIES THREATS
O1A: Blueprint 2030 T1A: Improve The Investment
O2A: Reduce Material Disposal T2A: Legal From Outsider
O3A: Training Workers T3A: Total Quality Management Control
O1B: Low Competitor T1B: Currency Exchange Rate
O2B: Technology Of Producing Product T2B: Risk In Transportation
O3B: Supported By Big Company T3B: Law And Regulation Of Trade
Table 1: SWOT Analysis
“A” and “B” stand for the chapter 16 “Other Supply Responsibilities” & chapter 17
“Supply Function Evaluation and Trends”
Example: S1A: Strength for chapter 16 Other Supply Responsibilities
37
W2B: Weakness for chapter 17 Supply Function Evaluation and Trends
S1A Only Company Produce This Product
According Mohd Noor 2019, there is no competitor in Malaysia. ACM is

the only one company who is managed this kind of product and services (Interview
1, 2019). ACM Company produces composite structure parts for all Boeing’s
commercial aircraft’s in Malaysia and overseas (Slide ACM, 2018). Aerospace was
incorporated in 1998 and commenced operation in 2001 (Interview 1, 2019).
ACM Company produces composite components structure part for all of

Boeings commercial aircraft. The ACM strategies are alliance between The Boeing
Company and Hexcel Corporation. The type of component that ACM produce is
core fabrication, CCA, Autoclave, NDI, Digital Inspection, Leak Test, laboratory
and painting, Software & capability and also storage (Slide ACM, 2018). ACM
member companies are united by a single goal to the world leader in providing
customers with aerospace components of unsurpassed quality, competitive prices
and on-time delivery (Interview 1, 2019). ACM member companies are united by
a single goal to be the world leader in providing customers with aerospace
components of unsurpassed quality, competitive prices and on-time delivery
(Tottenham Hotspur , 2014).
ACM is a non-profit regional network of independent Connecticut and

south-western Massachusetts based aerospace companies (Aerospace
Component manufature , 2016). Our mission is to attract the global aerospace
industry to this, where ACM member firms form a unique industrial
cooperative of long-established aerospace manufacturers, processors and
suppliers, offering a cost-effective supply chain that exceeds customer
expectations (Aerospace Component manufature , 2016). Working together as
a network, member companies collectively offer broader capabilities than they
could as individuals (Aerospace Component manufature , 2016).
38
S2A Long Term Production Planning
According to Mohd Noor in our interview the vision of this company, ACM
is the best aerospace manufacturing company in South East Asia (Interview 1,
2019). By this vision, this company comes out with a clear and strong objective
which is the company want to maintain a safe and healthy work environment.
Besides that, to provide the quality products and services to their customer by
delight their customer exceeding customer expectation. The next is the company
will continuously enhance values to their customer and constantly adapt lean
practices and innovation in all they do (Slide ACM, 2018).
On November 2018, a Memorandum of Cooperation (MoC) was signed

between Malaysia Aerospace Industry Association (MAIA) and Association of
Aerospace Industries Industry (Singapore) on the side-lines of MRO Asia Pacific
2018. The MoC was inked as an initiative to strengthen the aerospace capability
and stimulate industry development of both countries (MAIA, 2018). The
collaboration is focused on developing aerospace capabilities and fostering
business engagements between industry players. The MoU also explores the
development of human capital, research & technologies, and sharing of industrial
best practices (MAIA, 2018).
MAIA and AAIS also witnessed the signing of a Joint-Venture agreement

between Deviation Group and Transfingo Pte Ltd which will focus on training and
manpower supply and will serve as a testament that business cooperation between
Malaysia and Singapore aerospace companies is possible (MAIA, 2018).
S3A Manage Well Disposal Product
Environmental, ecological concerns in global competition attracted

researchers in variety of disciplines (Wan, Nizam & Baba, 2012). The public’s
environmental awareness has increased trough formal and informal environmental
education that the government or society provided. Nowadays, people more
acknowledge and educate about the importance to take care of the environment
39
impact of environmental issues, consumers will be asking the companies about how
green the manufacturing and supply chain of the products is. The companies have
the responsibility that given importance to making the products green along with
making it profitable. That was the true because today by education happened, that
consumers prefer environment-friendly products and this establishes a link between
environmental factors and profits.
ACM Company are not neglected to take care the environmental issues as
a one important things in their company. The approached Green Supply Chain
Management (GSCM) is increase accepted and practices by forward-thinking
organization. ACM Company used the GSCM concept in their company as one of
the effort in environmental. GSCM is the Green Supply Chain Management which
is integrates the supply chain management in order to reduce the environmental
impacts during the entire product life cycle by the harmony and the common action
of the partners in a supply chain (Wan Hasrulnizzam Wan, 2012). According to
Kenneth W. Reen Jr, GSCM practices by manufacturing organizations leads to
improved environmental performance and economic performance, which, in
turn, positively impact operational performance (Jr., 2012)
The basic reasoning of GSCM are resource saving, waste elimination and
productivity improvement. ACM company practices the GSCM by showing the
design consideration is highly important to green practices in ACM. As a strategic
partner of Boeing, ACM must have critical consideration into product. Besides that,
ACM choice of supplier by environmental criteria, environmental friendly raw
material and optimization of process to reduce the solid waste, water waste and
reduce air emission and noise.
40
S1B Fix Resource
Resource is a key part of any business or project, the business owners have
to identify all the resources needed to been use within a specific time frame.
Resource planning also very important to make sure all the production line is
moving smoothly. A resource plan features the amount of resource needed, when
the actual time the resource will deliver and been used to start the production line.
From the interview, we know that ACM have a fix resources supplier for their
company. The raw material of the composite part of the airplane are always supply
by the fix supplier that monopoly the market. Therefore, ACM been forced to buy
the raw material from the company that have the material. This will make the cost
of the raw material will be higher but the quality of the product will be always good
because there are the only companies that produce the raw material. So, when ACM
always buying the raw material and work together with those companies, this is to
make sure that no shortage will occur during the operation process and forcing the
production to stop (Interview 1, 2019).
S2B Good Relationship with Supplier
A good relationship with your suppliers is just as important. In fact, it is so

crucial not having one can make running your business similar to driving off road
in a family car. Supplier relationship management is one area all businesses need
to become good at because it can have significant effects. In fact, adapting a more
strategic approach with key suppliers can have immense long-term benefits for
companies. There are very few companies that are enhancing supplier relationships,
despite the fact it’s not easy to find reliable suppliers. As they play a major role in
your business, it’s crucial that you do everything you can to keep them on board
and happy. Look at them more than just someone who supplies goods and services.
They must be your allies because the kind of relationship you have with them can
influence your success (Greenlight Technology, 2017). From the interview, we
know that ACM have a good relationship with the supplier. They will always keep
41
contacting and communicating their suppliers regularly, and pay your suppliers'
accounts promptly. So this will be avoiding miss communication between the
company and their suppliers (Interview 1, 2019).
S3B Fix Customer

A customer is an individual or business that purchases another company's
goods or services. Most public-facing businesses compete with other companies to
attract customers, either by aggressively advertising their products or by lowering
prices, in an effort to expand their customer bases. Businesses always need to study
their customers' profiles for the purpose of adjust their product to suitable the
market for attract more customer to buy their product. Customers are often grouped
according to their demographics, such as age, race, gender, ethnicity, income level,
and geographic location, which all may help businesses can find out their ideal
customer (Andrew Bloomenthal, 2019). This information helps companies deepen
existing customer relationships and increasing the number of customer. From the
interview, we know that the customer of ACM is Boeing aircraft manufacturing
company. ACM only process the composite of the airplane for Boeing company,
such as they doing the fuel door, the wing and many more. So, Boeing Company is
the fix company that will buying the product from ACM because ACM specialized
for doing the airplane composite for them (Interview 1, 2019).
42
W1A Low Law Regulation
In addition, the development of the supply chain is needed as well to support

the aviation industry in Malaysia and Asia Pacific. With the increasing number of
local and foreign companies in Malaysia’s aerospace sector, there is a need for more
local law firms to provide legal services to these players.
According to Abdullah Chan & Co partner Datuk Muthanna Abdullah said

there were many international law firms that specialized in the aviation and
aerospace industry but the number was limited in Malaysia (Bahari, 2016). There
is an area of work for corporate law. Apart from that, all corporate law firms have
been involved in manufacturing contracts for aerospace companies. Some have
been involved in financing contracts with banks but it’s not their mainstay (Bahari,
2016).
W2A Limitation to Manage the Material Disposal
By focusing on the environmental issue, the company though that was the
problem because the more waste occurs the more cost or budget need to provide for
manage the waste. This is because in the managing the waste is not cheap but it
costly. There are several ways for the companies to cut the costs by reducing the
environmental impact of the products. A complete reevaluation is needed for the
supply chain process which includes purchasing planning and managing the
materials. The Supply Chain Executives also should be taught to make the process
of logistics go along with the green policies of the company. Lowering the cost for
waste disposals during the supply chain process it would be cuts the cost of the
process (Wan Hasrulnizzam Wan, 2012).
Besides that, optimization of process to reduce solid waste, water and else
are practice by ACM because the company are aware that is much more productive
to prevent. ACM Company used the Lean Manufacturing System (LMS) which is
to support the development of green supply chain practices (Wan Hasrulnizzam
Wan, 2012). ACM are encouraging the lean manufacturing implementation in any
43
continuous improvement activities with any green practices per requested by

customer. This is show that ACM are aware to educated people.
W3A Lacking of Knowledge and Resources
ACM has established partnerships with state agencies and makes the most
of state and federally funded programs geared toward continuously improving
productivity, competitiveness and workforce skills. Our efforts have the full
support of the State of Connecticut, which recognizes the unique advantages ACM
offers to aerospace companies worldwide (Interview 1, 2019).
ACM a world leader in supplying composite products and subassemblies to

the global aerospace industry, is a strategic alliance between U.S. joint venture
partners Hexcel and Boeing. Boeing has a 50 per cent stake in ACM. Established
in 1998, the joint venture is based in Bukit Kayu Hitam, Kedah, Malaysia. The $32
million ACM plant was officially opened by Tun Dr. Mahathir Mohamad in
September 2002 (Interview 1, 2019).
In 2005, ACM became the world’s sole producer of aileron composites for
the Next-Generation 737 commercial jetliner. Before producing ailerons, ACM was
the sole producer and distributor of the fixed trailing-edge composite and fixed
leading-edge composite for the Boeing 737, 747, 757, 767 and 777 commercial
airplane models. In 2008, Boeing selected ACM to provide the elevator and rudder
machined honeycomb core for the 777 (Interview 1, 2019).
In November 2013, ACM celebrated a 40 percent expansion to support

increased production by Boeing Commercial Airplanes. The $17 million
investment allows ACM to continue expanding production of composite flight
surfaces for all Boeing airplane programs, including the 787 Dreamliner. In 2017,
ACM commenced with new 777X work, including composite fixed trailing edge
panels and empennage panels. In May of 2017, ACM was recognized as having an
outstanding safety culture, achieving four years of no lost time due to injuries.
(Slide ACM, 2018).
44
W1B Transportation Cost
Cost refers to the cost of goods and freight refers to all other costs relating
to all the means of transportation of the goods. It means that the seller must pay the
costs and freight necessary to bring the goods to the destination and must also
procure marine insurance against the buyer's risk or loss to the goods during the
carriage. From the interview section, we know that ACM is a company that import
all the raw material from others country such as America, Korea, Japan, china and
Australia. Those suppliers deliver their good to ACM basically is use sea shipping
or air shipping, both of the logistics way have the higher cost rate compare to local
logistics. Therefore, the transportation cost of deliver the raw material to ACM is
relatively higher than purchase the raw material domestically. But, ACM have no
choice because of the raw material only can get from those countries (Interview 1,
2019).
W2B Lead Time
Lead time is a crucial part of managing a manufacturing business or any

business that involves waiting for supplies or products to arrive to your company
or any destination that been chooses. Generally, the lower the lead time, the more
flexible a company is and the faster it can respond to changes in trends. However,
shorter lead times can cost more money if the buyer has to pay for overtime, special
work, expedited shipping costs, or other rush charges. This in turn makes it difficult
to say whether shortening lead time will increase profits or not, but it
usually will increase customer satisfaction (Johnson, P. F. 2020). As we know, the
suppliers of ACM most of them are from other countries that need a long lead time
in transportation. For example, if ACM ask the suppliers from Japan to ship the raw
material to them, they need to wait at least 2 weeks’ time for the raw material to
arrive to the company production line (Interview 1, 2019).
45
W3B Different Time Zone
A time zone is one of the areas into which the world is divided where the
time is calculated as being a particular number of hours behind or ahead of GMT.
A region throughout which the same standard time is used which is there are 24
time zones in the world, demarcated approximately by meridiansat 15° intervals,
an hour apart (Colloins Dictionary). From the interview section, we know that
ACM is a company that under Boeing company. If have any problem happened
they need to report to the headquarters of the company and they need to wait until
tomorrow to receive the reply letter. This is because the time zone is difference.
This will make ACM cannot solve the problem or doing any decision immediately
O1A Blueprint 2030
The Malaysian Aerospace Industry Blueprint 2030 has set a vision for
Malaysia to be number one aerospace nation in South East Asia (SEA) and as an
integral part of the global market by the year 2030 with annual revenue of RM55.2
billion and create more than 32 000 high income jobs. According to Minister of
International Trade Datuk Darell Leiking, the government has identified the
aerospace sector as one of the new growth industries due to impressive evolution
and enormous future growth of the industry (Basyir, 2019)
This plan or strategic is to support the Malaysia Aerospace Industry through

this plan Blueprint 2030. The Malaysian Aerospace Industry Blueprint 2030 is an
initiative by the Malaysian Industry Government Group for High Technology
(MIGHT), an organization under the Prime Minister’s Department, as the
Secretariat of the Malaysian Aerospace Council (MAC), to the chart the long term
plan for the development of the aerospace industry until 2030 (Talib, 2015)
46
The Government has identified Malaysia’s aerospace industry as one of the

‘3+2’ strategic sectors with high growth potential (MIDA, 2019). On 2015, In
recognition of its importance, the Malaysian Aerospace Industry Blueprint 2030
was launched during Langkawi International Maritime & Aerospace Exhibition
(LIMA). This blueprint charts the long term plan for the development of the
aerospace industry in Malaysia until 2030.
The target is to make Malaysia the leading aerospace nation in South East
Asia and be an integral part of the global market by 2030. Malaysia is currently
home to more than 200 aerospace companies comprising both international and
local industry players. These include 66 companies involved in MRO activities, 33
companies in aero-manufacturing, 25 companies in education and training, and 11
companies in systems integration, as well as engineering and design. By 2030, this
project in aero-manufacturing will contribute revenue around RM21.2 billion
targeted to achieve (MIDA, 2019)
O2A Reduce Material Disposal
Industry has a responsibility to improve the green practices internally and

the customer nowadays have their right to buy the product from with company.
ACM Company use the Lean Manufacturing Practices (LMS), to reduce their
material disposal where at every part of supply chain play the role to reduce the
defect, scrap or waste. Lean Manufacturing practice is not only to eliminated waste
in every area of production but LMS is to utilize less human effort, less inventory,
less time, less time to produce the top product in the most efficient and economical
possible. The function of LMS is to identify the manufacturing strategy aimed at
achieving the shortest possible cycle time by eliminating waste at a comprehensive
term by referring the methodologies. This is to maximize the value and waste (Wan,
Nizam & Baba 2012).
47
O3A Training Workers
Education and training worker is the cross cutting that supports the entire
aerospace industry dealing with the talent development (Talib, 2015). Currently, in
South East Asia, Malaysia leads in the term of producing the number of skilled
worked force with competent expertise in different level of technical proficiency
for the aerospace industry. Based on the information, ACM used the GCSM and
LMS to dispose the waste material. The company needs more skill from the worker
to manage the product. By reducing the waste and increase the quality of product,
management should provide a quality and good training workers to workers.
O1B Low Competitor
Every business will have their own competitor in the market, some of the
competitor are producing same product in the market. But some of the competitor
are producing product that can be the perfect substitute product in the market. But
for ACM there are only one competitive company in Malaysia that producing
composite of airplane. Besides that, some of the part of the airplane only been
producing by ACM such as the fuel door of the airplane. So, this will make the
competitor in the market hard to snatching away the customer of ACM (Interview
1, 2019).
O2B Technology of Producing Product
Technology has important effects on business operations. No matter the size

of your enterprise, technology has both tangible and intangible benefits that will
help you make money and produce the results your customers demand.
Technological infrastructure affects the culture, efficiency and relationships of a
business. It also affects the security of confidential information and trade
advantages (SBDC Oklahoma). From the interview section, we get the information
that ACM are the companies that only have the technology to produce the fuel door
for Boeing airplane. This is a very big advantage for the company because they are
48
monopoly the market. So, if Boeing need to produce a new air plane they have to
purchase the fuel door from ACM (Interview 1, 2019).
O3B Supported by Big Company

When it comes to the pros and cons of big business, the question isn’t
whether it’s better for you to build a large-scale business or a smaller business, the
question is how to leverage the size of your company for maximum success. If you
own a smaller company, it’s useless to talk about the pros and cons of big business
without understanding that the factors, which make big businesses work or fail, are
the real lessons you must learn. The advantage that large firms have is that typically,
they are more established and have greater access to funding. They also enjoy more
repeat business, which generates higher sales and larger profits than smaller scale
companies. As the owner of a small business, studying the advantages of large firms
can help you determine the optimal size for your company (Sampson Quain, 2018).
From the interview section, we get the information about Boeing company is the
company that supported ACM. Boeing company have holding about 45% of share
of ACM. This factors can guarantee that ACM can have better development in this
sector (Interview 1, 2019).
T1A Improve the Investment

For Malaysia to increase the market capture, appropriate initiative has to
put in place especially to assist the small and medium enterprise to be AS9100 and
NADCAP certificated, hence enable to support those who are already in the global
supply chain such as like ACM Company (Talib, 2015).
There is well known the part and components manufacturing contracts are
mostly long term and involve high non-recurring cost. Apart from that, Malaysia
government should position itself very early in the supply chain by participating in
international aircraft development program or activities.
The next, Malaysia must continue to support SI activities to maintain

capability of its strategic asset, lower the cost of ownership and prolong the service
49
life of a rising number aging aircraft which required avionics upgrades, adaptations
of defence system in accordance with the country’s unique need some priorities as
well as to achieved the long term goal of becoming supplier of Advance System
(Rahim, 2015)
The companies are Aerospace Composites Malaysia Sdn Bhd, which will
invest in Kedah, BHIC Marine Technology Academy Sdn Bhd (Perak), Gading
Kencana Sdn Bhd (Perlis) and Qdos Holdings Berhad (Penang). Under the
agreement, the companies will set up new initiatives and facilities which will result
in a significant volume of spill over effects such as highly skilled and specialised
talent creation and development and logistics enhancement.
T2A Legal from Outsider
The development of the supply chain is needed as well to support the

aviation industry in Malaysia and Asia Pacific. By the increasing number of local
and foreign companies in Malaysia’s aerospace sector, there is a need for more local
law firms to provide legal services to these players.
According to Abdullah Chan & Co partner Datuk Muthanna Abdullah in

the article, said there were many international law firms that specialized in the
aviation and aerospace industry but the number was limited in Malaysia. There is
an area of work for corporate law. Apart from that, all corporate law firms have
been involved in manufacturing contracts for aerospace companies. Some have
been involved in financing contracts with banks but it’s not their mainstay (Bahari,
2016).
It has four aviation lawyers who provide legal advisory services for the
commercial and business aviation industry as well as companies involved in the
aerospace industry. Some of the advisory services pertain to financial assistance
from banks, insurance obligations and technical issues in contracts (Bahari, 2016).
Abdullah Chan & Co views that global aerospace companies which are keen
to invest in Malaysia need to understand business processes and laws in the country,
50
including incentives offered by the government under various investment initiatives

for the sector. The foreign company must be able to understand the system of law
Malaysia have in place. Besides that, need provided foreign company to know
whether there are incentives for investments and local equity requirements (Bahari,
2016). Aerospace or Aviation law relates to flight, air travel, and the legal and
business concerns of the aerospace industry. Aerospace overlaps in a number of
key ways with admiralty law, given their shared focus on activities that happen in
unclaimed territories like international air space, outer space, and extra-terrestrial
planets and objects (HG.org, 2019).
In the United States, the Federal Aviation Administration (FAA) is the

executive agency tasked with governing air travel. Internationally, the International
Civil Aviation Organization (ICAO), an agency of the United Nations, provides
rules for international air travel and mediates disputes between peoples, entities,
and governments. Some states and municipalities have their own regulations over
aviation (HG.org, 2019). For example, zoning laws can restrict the placement of
airports to keep them away from residential areas or to limit their hours of operation
to prevent interference with usual sleep hours and the quiet enjoyment of residents'
homes and property (Hg.org, 2019).
Space law, an offshoot of aviation or aerospace law relates to matters of law

in outer space (i.e., beyond the Earth's atmosphere). Naturally, this is a fairly new
area of law but one that already has grown its own body of legislation, treaties, and
legal precedents, as well as a strong and robust academic following (Interview 1,
2019).
T3A Total Quality Management Control
AS9100 is the Quality Management System Requirements for Aerospace

Manufacturers, but it also references several other standards that an organization
must understand and integrate into their QMS. In addition, you should be very
familiar with IAQG, OASIS, and the SCMH (StandardsStore, 2001).
51
The certification was the first to be awarded to an aerospace company in

Malaysia (out of 70 such companies) and also in Southeast Asia (based on the
Online Aerospace Supplier Information System database). This is a testament to
the quality of work we do here. There are no shortcuts to quality and safety. It is
important that the Quality Management Systems (QMS) be followed precisely.
ACM manufacture composite structures for all Boeing commercial airplanes which
are being used by millions of people annually. Hundreds of parts are made daily
and there is no room for mistakes. Garza, who attributed ACM’s success to its 850
workforce, added that the company had a strong team that enforced the QMS
(quality management system) strictly at all times using the surveillance method
(Star Online, 2017).
According to Jose Garza in the New Strait time paper, ACM are also
looking at maintaining our company’s good safety record. ACM have not had any
untoward incidents or accidents over the past four years. In addition, the company
was proud to be delivering quality products, adding that thousands of parts were
delivered every year. It was also an achievement to deliver them on time (Star
Online, 2017).
T1B Currency Exchange Rate
Currency exchange rate is the rate at which one currency will be exchanged
for another. It is also regarded as the value of one country’s currency in relation to
another currency. In the retail currency exchange market, different buying and
selling rates will be quoted by money dealers. Most trades are to or from the local
currency. The buying rate is the rate at which money dealers will buy foreign
currency, and the selling rate is the rate at which they will sell that currency. Form
the interview section, we know that majority supplier of ACM is come from other
country such as America, Korea, Japan, Australia and China. Purchasing of raw
material from the other countries, we need to know the base of the current currency
from that country. In this economy crisis’s country, ACM need to pay for the higher
cost of purchasing the raw material because of the currency exchange rate. All the
material that purchase from other country are in different period of time which
52
mean that there is different currency exchange rate, so sometime this will make the
producing cost become higher than before (Interview 1, 2019).
T2B Risk in Transportation
Risks for spent fuel and high-level waste transportation arise from
conventional vehicular accidents and exposures to ionizing radiation under both
normal and accident conditions. Radiation risks are primarily a concern for people
who live near, or travel on, spent fuel shipment routes. Risk considers both the
likelihood of occurrence of a specific hazard and its consequences. Frequently, one
considers several scenarios that involve different kinds of hazards, each with a
different likelihood of occurrence and consequence. One way in which risk can be
expressed is in terms of a triplet (Kaplan and Garrick, 1981). From the interview
section, we get the information about there were some risk in transportation of
ACM. First is losing the raw material, when happening natural disasters, wars,
terrorism, and cargo theft will make the shipped item been stolen. Besides that,
happening accidents including shipwrecks, truck, plane, and train crashes also will
have damaged the raw material (Interview 1, 2019).
T3B Law and Regulation of Trade
Trade regulation laws are laws enacted by both federal and state
governments to promote unrestrained competition amongst businesses. Trade
regulations extend into many categories of law, such as anti-trust law, which
prohibits anti-competitive acts like price fixing, monopolistic conduct, and
deceptive practices. Consumer protection law, advertising law, trademark law, and
franchise law also fall under the umbrella of trade regulation. The Sherman Act,
passed in 1914, was the first major anti-trust law enacted by Congress. Congress
also passed another trade regulation, the Clayton Act, during the same year. The
Clayton Act prohibits price fixing and exclusive sales contracts between
competitors, otherwise known as covenants not to compete (Law advance
53
company, 1995). From the interview section, we know that some of the law and
regulation of trade make ACM hard to buying the raw material from those
countries, so they need to find another supplier to supply them the raw material
54
6.2 TOWS Analysis
TOWS analysis is a tool that used to think about the strategy of the whole
organization by analysing the external force (Threats & Opportunities), and internal force
(weaknesses & Strengths) which result from SWOT analysis. TOWS analysis is used to
think in detail about the strategies to be applied (Discussion 1,2019).
STRENGTH WEAKNESSES
S1A: Only Company Produce W1A:Low Law Regulation

Internal Force This Product W2A: Limitation To Manage
S2A: Long Term Production The Material Disposal
Planning W3A: Lacking Of
S3A: Manage Well Disposal Knowledge And Resources
Product W1B: Transportation Cost
External Force S1B: Fix Resource W2B: Lead Time
S2B: Good Relationship With W3B: Different Time Zone
Supplier
S3B:Fix Customer
OPPORTUNITIES SO Strategy WO Strategy
O1A: Blueprint 2030 1. Increasing production 1. Strategy that can support

O2A:Reduce Material Disposal (S2,O3,O5) (O1,W1)
O3A: Training Workers 2. Monopoly the market 2. Increasing the knowledge
O1B: Low Competitor (S1,O4) of worker (O3,W3)
O2B: Technology Of Producing 3. Less material disposal 3. Decrease the disposal
Product (S3,O2) product (O2,W2)
O3B: Supported By Big Company
THREATS ST Strategy WT Strategy
T1A Improve The Investment 1. Decreasing the 1. Investing in material

T2A:Legal From Outsider transportation cost (S5T4) disposal (T1W2)
T3A: 2. Loyal customer (S6S4T5) 2. Double cost in
T1B: Currency Exchange Rate 3. To make sure the transportation (T5W4)
T2B: Risk In Transportation sustainability of market 3. Increasing the normal lead
T3B:Law And Regulation Of (S2T6 ) time (T2W5)
Trade
Table 2: TOWS Analysis
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7.0 STRATEGIC COMMENTS AND RECOMMENDATIONS: BASED ON

TOWS
7.1 SO STRATEGY
a) S2, O3, O5: Increasing production
b) S1, O4: Monopoly the market
c) S3, O2: Less material disposal
7.1.1 Positive Comments
As we all mentioned, ACM has increases their production by upgrade their machine
to the new one with high technology machine. Through this, they can produce more
production of their product which can lead an increases to their income. Besides that, they
also can increase the welfare of shareholder.
ACM is the only company that produce the good and services in domestic. They
have no competition because the company is the sole seller of goods with no close
substitute (Interview 1, 2019). The good of being a monopoly market is there is no
competition and has power in setting the price of the goods and services.
Less material disposal is good for a company. It means that the company are well
managed their disposal material. This lead to environmental benefit to the company which
is reduce overall harm to the environment. Good environmental can enhance ACM chances
of winning contracts and improve customer loyalty by demonstrating your environmental
responsibility through recycling efforts.
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7.1.2 Negative Comments
In order to increase the production, a company have to face higher investment on

the equipment of new technology. As we all know, the cost of the technology is high
because the product that ACM produced is a high quality product and beside that the
equipment only can get from overseas. So, it would costly for the company to buy new
equipment.
Be a monopoly market also give a bad situation to ACM Company especially when
they need the supplier of raw material to produce goods and services. They have no choice
of buying the raw material although the price that set by the supplier is high. It is because
the supplier knows that ACM Company only can get the raw material from them.
7.1.3 Recommendation
ACM is the only one that produces the aileron composites. ACM should at least
develop some of their company strength to ensure their company’s performance is better
from time to time. Besides that, ACM should improve their advance system to develop
their business and also reduce their human error.
ACM should do research and development of their disposal material. It is because

the disposal material would create a lot of benefit specially to gain a profit from it. Not
only that but, well managed of disposal material would result a safe environmental to the
company.
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7.2 WO Strategy
a) O1, W1: Strategy that can support
b) O3, W3: Increasing the knowledge of worker
c) O2, W3: Decrease the disposal product
Knowledge workers are the most important and highest-paid employees in some
companies. A company usually increases their worker improvement by doing training
program. Normally, they play an important key role in sectors such as information
technology and telecommunications. Knowledge workers help companies improve
performance in disciplines such as marketing, finance, production management, product
development and strategic planning. This is the reason to boosting the productivity of
knowledge workers in an organization because it can help companies improve the return
on investment in research and development.
Disposal material can be reduced by remanufacture, repair and recycling. As we all

know, there are many type of disposal material which is excess material, obsolete material
or equipment, rejected end product, scrap material, waste and hazardous waste can be a
benefit for the company. From the interview session, he had informed that they are
handling their disposal material such as chemical disposal very well by license the disposal
area which is gazette by the government. Besides, they also have a schedule disposal which
is S110, S130 and S100 (Interview 1, 2019).
ACM need high cost to run their disposal material because the cost of ACM waste
and recycling equipment which is balers, compactors, roll packers and bin presses is high.
Ballers for example provide different size with different volume and quality. So, the higher
the cost, the better the quality and the more function the product.
By providing training program for each worker would require a higher cost to the
company because it would need additional cost such as travel expenses for employees,
58
catering, hotel accommodation, supplies and other training expenses. So, this could cost a
lot of money for the company.
ACM can improve their performance in an organization by improving their worker

skills and knowledge. In accomplish this, a company should assign the worker with the
right job according to their skills and knowledge. According to Human Resources
Intelligence Quotient, this would be one of the key drivers of productivity. Maintain up-to-
date profiles of the workers with a directory of available skills and record of their
performance on previous projects (Hearst Newspaper, LLC, 2019). With this company can
know the capabilities of their worker and know the best task should the worker take place.
In addition, a company should improve the facilities in order for collaboration.

"McKinsey Quarterly" stated that collaboration was critical to the effectiveness and
productivity of knowledge workers. A research paper for the European Commission
reported that knowledge workers spend almost 80 percent of their time interacting with
other people (Hearst Newspaper, LLC, 2019). As we know, ACM have collaboration with
other countries that needs the worker to speak English well and fluently. So, improve
facilities by video conferencing facilities would help worker to collaborate with colleagues
inside and outside the company.
59
7.3 ST Strategy
a) S5, T4: Decreasing the transportation cost
b) S6, S4, T5: Loyal customer
c) S2, T6: To make sure the sustainability of market
It is important to have a better planning on choosing the type of transportation used

on imported product to save cost. As we are mentioned during the interview session, there
are two type of freight used by ACM which is air and sea freight (Interview 1, 2019). They
are using air freight when they ordered a small thing or when they need the raw material in
a hurry. With air freight shipment, ACM can have a fast delivery because these shipping
options are coordinating time sensitive shipments to almost everywhere in the world.
Moreover, it also offers the advantage of a high level of security as airport controls over
cargo are tightly managed and also we can ensure that the good and services are in a good
condition.
ACM has a loyal customer. As we know, customer loyalty is positively related to

customer satisfaction as happy customers consistently favour the brands that meet their
needs. Loyal customer is purchasing the goods and services repeatedly over the same
company which it is the result of positive customer experience, customer satisfaction and
the value of the product and services the customer gets from the transaction.
In addition, we also know that ACM product is only purchased for a specific
customer only. This is because the product that produced by ACM is a high quality product
that only can be used by a specific customer.
Long term production planning is the best way to make sure the sustainability of
market for ACM Company. This is because long term production planning is focus on the
major decision that a company makes.
60
Usually a company will use air freight in order to get the raw material in a fast way.
So, as we all know, although it is a fast delivery but the air freight is very costly. Moreover,
the imported goods and services are coming from overseas. As we all know, the further the
distance between our country and the country that will import the raw material, the higher
the cost.
Being loyal customer to the supplier would give a bad situation to the company. It
is because the supplier would put a higher price of the raw material that we are needed
because they know that we only can get the raw material from them. So, we do not have
any choice which is to buy the material from them either it is expensive or cheap.
ACM should continue increases their service performance into high-speed internet
service because the high level of service performance is believed to be an effective way to
improve customer satisfaction and loyalty. By doing this, a company can have a better
communication between their customer and facilitate customers to find out more about the
details, progress or whatever information about the product.
In order to reduce cost, the transportation manager should consider the number of
transportation strategies that should be used. A transport manager should spend their time
to find the best carrier at the best price.
In order to achieve sustainability of market, ACM should ensure the availability

and human resource in the company. This availability will result to a better production
planning which is to ensure the company is well utilized, being careful and not to create
delay.
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7.4 WT Strategy
a) W2, T1: Investing in material disposal
b) W4, T5: Double cost in transportation
c) W5, T2: Increasing the normal lead time
ACM is also making an investment in well managed of their material disposal.

ACM supplies a range of ancillary products and services to enhance the efficacy of their
waste disposal and waste management equipment, and to support their waste management
plan. Waste and recycling equipment had been done by ACM is provide balers,
compactors, roll packers, bin presses, consumables and hazardous waste. Each material
disposal will be throwing to the right place according to the type of the waste. Providing
this waste and recycling equipment can help the company improve their waste
management.
Choosing the best transportation for the shipment of the raw material would result
lower cost transportation for the company. From the interview session, we know that ACM
good at choosing which transportation that are used in order to have a lower cost of
transportation (Interview 1, 2019).
Increasing the normal lead time is needed in ACM because the supplier of their raw
material are mostly comes from other countries. So, with increasing the lead time, the
company can achieve cost reduction.
Increasing the normal lead time would cause the employees less efficient in doing
their work and also result a lazy worker because they are wasting their time in waiting the
product to deliver. The company also reduce their worker potential to be productive in
doing their task.
62
In order to choose the best transportation, a manager would need a long time for
searching. They have to look from all aspect to make sure the money that had been spend
on the transportation is not too high.
ACM should make a comprehensive maintenance plan for the waste or recycling
equipment. It includes the scheduled numbers of service visits per annum, delivered against
pre-defined service inspection tasks specific to the equipment type, its operational
environment and its designed application, as well as identifying, recording and take an
action to any repair work covered under the specific Comprehensive Maintenance
Agreement. From that, they can improve their company effectiveness in managing their
waste and also can make an investment from it.
In order to have an efficient worker, ACM have to give incentive to their employee.
It seem to be the best way to encourage employee to be more efficient because the
recognition of worker for a job well done will make them feel appreciated and encourage
them to continue increasing their productivity.
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8.0 CONCLUSION
ACM is a company that manufactures flat and contoured primary and

secondary structure composite bond assemblies and sub-assemblies for aerospace
industries. It offers aileron skins, spoilers, and spars; and flat panels, leading edges, trailing
edges, and miscellaneous components. ACM was formerly known as Asian Composites
Manufacturing Sdn. Bhd. and changed its name to ACM in November 2013. The company
was founded in 1998 and is based in Bukit Kayu Hitam, Malaysia. ACM operates as a joint
venture between Boeing Worldwide Operations Limited and Hexcel Corp.
ACM has strived for the excellent business performance and survival by
carrying out continuous improvement and development. The professionals have put a lot
of efforts to carry out the continuous researches for the successful development. They
should seek for the golden opportunities to have better and superior achievements in
developing new products with greater innovation in order to accomplish their new goals.
These will help ACM to strengthen the customer loyalty and reduce the risk of being
substituted by others.
Furthermore, ACM has gained the greatest strengths and benefits by having the
well-developed material and capacity planning with the strategic sourcing and pricing in
the purchasing and supply process. Insourcing has allowed them to handle the materials
safely and control the inventory at the desired level in their private warehouse that leads to
high productivity with reasonable and lower cost. The innovative products have been
produced, shipped, and delivered through the assistance of experienced human capitals,
sophisticated technologies, and logistics services with an effective supply chain
management. They may consider the implementation of next-generation production
methods with digitalization which is a new challenge for them.
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As a result, the roles of purchasing and supply activities are important for ACM
to notify the need for those production inputs and finished products for delivering to the
end customers. Effective purchasing and supply process enable ACM to gain more
competitive advantages and stronger market position in order to expand their long-term
global business with high-profit margin and reputation through the diverse teamwork,
partnerships, and effective organization strategies compared to the competitors in the same
industry.
65
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66
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organization in Chapter 16 “Others Supply Responsibilities”. Date: 15th April 2019.
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Slide 1
Slide ACM. (2018). ACM's Company Overview. Bukit Kayu Hitam: Aerospace
Composite Malaysia Sdn Bhd.
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APPENDIX A
SITE VISIT REPORT
Date : 22 March 2019
Time : 10:30am – 12:00pm
Venue : ACM Training Hall
Group Members: NURUL HAFIZAH BINTI AZMAN 251000
NUR ZUNNURAIN BINTI M MAZLAN 244593
MOHAMMAD FITRI BIN ABDUL RAHIM 244352
SITI NUR ZAFIRAH BINTI ABD RAZAK 244503
NOR NATASHA BINTI ABD RASHID 244616
WONG GHI KANG 244489
AZIZAH BINTI ASRAF ALI 244277
AFIQAH BINTI BUGAL 244433
On 22 March 2019 Friday, a total of 25 students of University Utara Malaysia

(UUM) of the School of Technology Management and Logistics wen to visit Aerospace
Composite Malaysia Sdn Bhd (ACM), which is located in Kawasan Perindustrian Bukit
Kayu Hitam, Kedah. This site visit included students from classes Dr Adam Bin Mohd
Saifudin from class A and B that consist of Group 2, Group 6 and our Group 10. This site
visit is to focuses on the study of Supply Chain Strategy from subject BJMP 3073,
Purchasing Management and Supply Chain that we are taking for these semesters.
All three group are gather in front of entrance gate at 10.00 am and fill in the
information needed from ACM. After that we’ve been escorted to the Training Hall in
ACM. The first session begins with the briefing from the managers of safety department
for the caution that we need to take if any emergency situation occurs in ACM.
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The second session begins with the briefing about the company background by En
Mohd Noor Material Planning Manager Department of ACM. After that En Mohd Noor
briefed the core purpose of this site visit which is the flows of supply chain in ACM and a
bit about hoe the Logistic flows occurs in ACM as well as the product they produce in
ACM.
The last session in question and answers session regarding our SWOT analysis
question that every group have been prepared. The entire swot question had been answer
fairly throughout the session. Finally, all the representative group leader from every group
present a little souvenir to En Mohd Noor as a reminder of a gratitude from UUM to ACM
for having us to conduct a site visit in ACM.
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APPENDIX B
SWOT ANALYSIS QUESTION FOR ACM
CHAPTER 16: OTHERS SUPPLY RESPONSIBILITIES
Strength
1. From which angle do you think your company better than competitor?
2. How do you ensure production plan sustain in long term?
3. How do your company maintain a better supply chain integration for happening lead
time?
4. How does the company manage the selection of disposal partner?
5. what the type of software system that be used with supplier and customer relationship
Weakness
1. There is the difficulty Boeing Company faced in transportation to send the product to
the customer outbound and inbound?
2. How the company save the inventory? To avoid the lack of inventory or delay
receiving inventory?
3. What the limitation that company faced to manage the material to disposal?
4. How do you manage the lacking of knowledge and resource of your company?
5. There is occur overdue in lead time of production and operation?
Opportunities
1. What kind of production planning in the future your company look forward?
2. How the company reduce cost from scrap and material losses?
3. How the company control the defect of the product and the quality of it?
4. What the kind of opportunities the company take to improve investment process?
5. How do you make improvement to your receiving process?
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6. What type of IT your company used? Are there effective to your operation
management?
Threat
1. As we acknowledge, nowadays all around the world concern about the cleanness and
"go green" environment already introduce. The company should aware about the
environment. what the initiative that the Boeing company do to take care of the world
for natural disaster for example pollution, hurricane and so on?
2. What the legal from inside and outside your company faced?
3. What threat that your company faced in account payable?
4. Do your company provide the training program to your worker? If no, how do you
manage the worker skill?
5. What is the process return to supplier for your company? Do you face a lack of
supplier?
CHAPTER 17: SUPPLY FUNCTION EVALUATION AND TRENDS
Strength
1. How the purchasing manager concentrating to achieve its objective?
2. How do you maintain/manage supplier relationship with your company?
3. What are the key procurement metrics that your company use?
4. What is the cost associated with global sourcing for your company?
5. How do you measure the relationship between customer satisfaction and total quality
management?
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Weakness
1. What challenges that your company face during maintain the operating budget?
2. What limitation that company face during to ensure their product is environmental
sustainability?
3. What is the problem related to supply chain risk management in your company?
4. What should you avoid when implementation innovations in your product?
5. If the department want to order equipment that’s beyond budget, what would you do?
6. Can you describe a time when the buyer was under performing, what did you do?
Opportunities
1. What kind of supplier or third party management software have your experiential work
with?
2. What is the opportunities customer that occurs in the market?
3. Can you take advantage of the local market?
4. When choosing supplier, what are the most crucial criteria to consider?
5. What are the current ongoing trends?
6. If your rival company falling to satisfy their customer based, can you steal their
customer?
Threats
1. What are the treats that face by your company?
2. What are the measuring systems that can be apply to overcome the treats in your
company?
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3. What are the supply management trends that can be used by your company to minimize
the treats?
4. What kind of competition you get from the external company?
5. How the supply budgets effect the performance of your company?
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APPENDIX C
Text Book
78
APPENDIX D
Introduction of ACM
79
80
81
APPENDIX E
LOG BOOK
Group Meeting Attendance with Dr. Adam

DATE ACTIVITY VENUE
9/4/2019 (Tuesday) Briefing on project report of Dr Adam’s room
3:30pm – 5:00pm Organization strategic, SWOT and (STML 3040)
TOWS.
18/4/2019 (Thursday) Progress checking DKG 6/11
11:30am – 1:00pm
22/4/2019 (Monday) Progress checking DKG 6/11
11:30am – 1:00pm
24/4/2019 (Wednesday) Progress checking on organization Dr Adam’s room
3:00pm – 4:00pm strategies (STML 3040)
25/04/2019 (Thursday) Progress checking on slide DKG 6/11
11:30am – 1:00pm
Date
Members 9/4 18/4 22/4 24/4 25/4
GROUP A
Nurul Hafizah Binti Azman √ √ √ √ √
251000
Nur Zunnurain Binti M Mazlan √ √ √ √ √
244593
Mohammad Fitri Bin Abdul - √ √ √ √
Rahim
244352
Siti Nur Zafirah Binti Abd Razak √ √ √ √ √
244503
GROUP B
Nor Natasha Binti Abd Rashid √ √ √ √ √
244616
Wong Ghi Kang √ √ √ √
244489
Azizah Binti Asraf Ali √ √ √ √ √
244277
Afiqah Binti Bugal √ √ √ √ √
244433
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Group Meeting Attendance with Group Members

DATE ACTIVITY VENUE
26/03/2019 (Tuesday) Discuss project company report Smart Reading Room
8:00pm – 11:00pm (Library Sultanah
Bahiyah)
17/4/2019(Wednesday) Progress checking Smart Reading Room
8:00pm – 12:00am (Library Sultanah
Bahiyah)
18/4/2019 (Thursday) Progress checking DKG 6/11
11:30am – 1:00pm
23/42019 (Tuesday) Progress checking Smart Reading Room
10:am-3:pm (Library Sultanah
Bahiyah)
28/4/2019 (Sunday) Prove reading Smart Reading Room
8:00pm-12:am (Library Sultanah
Bahiyah)
Date
Members 26/3 17/4 18/4 23/4 28/4
GROUP A
Nurul Hafizah Binti Azman √ √ √ √ √
251000
Nur Zunnurain Binti M Mazlan √ √ √ √ √
244593
Mohammad Fitri Bin Abdul - √ √ √ √
Rahim
244352
Siti Nur Zafirah Binti Abd √ √ √ √ √
Razak
244503
GROUP B
Nor Natasha Binti Abd Rashid √ √ √ √ √
244616
Wong Ghi Kang √ √ √ √ √
244489
Azizah Binti Asraf Ali √ √ √ √ √
244277
Afiqah Binti Bugal √ √ √ √ √
244433
83
APPENDIX F
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APPENDIX G
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Report Group 10 - Sample

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Report Group 10 - Sample

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COLLEGE OF BUSINESS

SCHOOL OF TECHNOLOGY MANAGEMENT AND LOGISTICS (STML)

GROUP ASSIGNMENT 1: AEROSPACE COMPOSITE MALAYSIA

NO. NAME MATRIC NO

Assignment Cover Sheet

Name: (Refer to group members’ profile)

Student ID Number: (Refer to group members’ profile) Group Name: Group 10

College: College of Business

E-mail Address: (Refer to group members’ profile)

Phone Number: (Refer to group members’ profile)

Assignment Name: Aerospace Composites Malaysia Sdn Bhd

Subject Name: BJMP 3073 Purchasing Management and Supply Chain

Name of Lecturer: Dr. Adam Bin Mohd Saifudin

Due Date: 2 MAY 2019

Please tick the following and sign below:

PROFILE OF GROUP MEMBER

NAME : NURUL HAFIZAH BINTI AZMAN

NAME : NUR ZUNNURAIN BINTI M MAZLAN

NAME : SITI NUR ZAFIRAH BINTI ABD RAZAK

NAME : MOHAMMAD FITRI BIN

NAME : NOR NATASHA BINTI ABD

NAME : WONG GHI KANG

NAME : AZIZAH BINTI ASRAF ALI

NAME : AFIQAH BINTI BUGAL

Furthermore, I also would like to acknowledge with much appreciation to the

Moreover, we wish to acknowledge the cooperation and full commitment given

Group Member Photo

5.1.1 Performance Of Other Supply Responsibility In The Process

W3B Different Time Zone 46

2.0 COMPANY BACKGROUND

2.1 Company Overview

Figure 1: Sky View of Aerospace Composites Malaysia Sdn, Bhd, (ACM)

In addition, ACM was formerly known as Asian Composites Manufacturing Sdn.

Furthermore, in 2005, ACM became the world’s sole producer of aileron

2.2 Logo of the Company

Figure 2: Logo of Aerospace Composites Malaysia Sdn. Bhd.

The vision that ACM implemented in their organization is “The Best

2.5 Core Value

Figure 3: Maps of Aerospace Composites Malaysia Sdn. Bhd.

2.7 Management of the company

Figure 4: Organizational Chart and Top Management of Aerospace Composites

2.8 Current Plan of Company

2.9 Product of the Company

Figure 5: Product of the Aerospace Composites Malaysia Sdn. Bhd.

2.10 Certificate of the Company

Figure 6: Certificate of Aerospace Composites Malaysia Sdn. Bhd.

3.0 INDUSTRIAL PROFILE: PORTER’S FIVE FORCES

Diagram 1: Porter’s Five Forces of Competitive Position Analysis

3.1 Bargaining Power of Suppliers

3.2 Bargaining Power of Customers

3.3 Competitive Rivalry

According to Porter, competitive rivalry related to the presence of several factors

3.4 Threat of New Entrants

The government has targeted targets for 30 small-scale manufacturing industries to

3.5 Threat of Substitutes

4.0 PESTEL ANALYSIS

Diagram 2: PESTEL Analysis of ACM

The political issue that might be facing by ACM is inter-country relationship,

5.0 ORGANIZATION STRATEGIES

1. Increase the Performance of Other Supply

Business  Cost Leadership

 Operational Process Flow

Diagram 3: Organizational strategy