FACULTY OF INFORMATION TECHNOLOGY

Assignment 1
Bachelor of Information Technology (HONS)
Name & Student Tinish A/L V.P Pushppadharan
ID (201801040005)
Subject Knowledge Management
Subject Code BBCM4023
Lecturer Mdm. Godiswary Paramasivam

FOR OFFICE USE ONLY

RECEIVED BY :
DATE :
Introduction
Mondelēz International, Inc is an American multinational confectionary, food, holding
and beverage company based on Deerfield, Illinois which employs approximately
83,000 individuals around the world. It consists of the global snack and food brands
of Kraft Foods Inc. after the October 2012 spin-off of its North American grocery-food
products. The multinational company has its been operating in Malaysia under the
name Mondelēz Malaysia (formerly known as Kraft Foods Malaysia). The company
was formerly known as Kraft Food Malaysia after most of Kraft Food Malaysia’s
shares bought by Mondelēz International. Mondelēz Malaysia is the country’s
Favourite Snacking Company and home to iconic brands such as Oreo, Cadbury
Dairy Milk, Tiger Biskuat, Jacob’s, Chipsmore, Choclairs, Toblerone, Ritz, Clorets,
Halls, Dentyne, Cheezels, Chips Ahoy!, Philadelphia Cheese, BelVita and Twisties.
For generations, their brands have been trusted by Malaysians for their quality,
safety and taste. With over 1,600 employees and three manufacturing plants in Shah
Alam, Johor Bahru and Penang, they work together every day to Create Delicious
Moments of Joy by sharing the world’s most favourite brands of snack foods to the
consumers. Mondelēz Malaysia usually manufactures chocolates, cookies, biscuits,
cough drops, gums, confectionary and powdered beverges. Over the years they’ve
been known as Kraft Foods, one of the fastest growing food companies in the world.
As of 1 July 2013, we are known as Mondelēz International. Mondelēz Malaysia is a
part of the Mondelēz International group of companies.

Environmental Influences
Business environment is a sum or collection of all internal and external factors such
as employees, customers needs and expectations, supply and demand,
management, clients, suppliers, owners, activities by government, innovation in
technology, social trends, market trends, economic changes, etc. These factors
affect the function of the company and how a company works directly or indirectly.
Sum of these factors influences the companies or business organisations
environment and situation. Business environment helps in identifying business
opportunities, tapping useful resources, assists in planning, and improves the overall
performance, growth, and profitability of the business. The factors that influence a
decision-making are the business environment. Although the business environment
consists of external and internal environment, the internal environment is conquered
within the organization. External environment is generic in nature and it gives the
impact to the whole business environment. The external environment cannot control
the whole business environment. They must possess the knowledge of the factors in
order to influence the firm’s decision-making move. To do so, one must do the
environmental analysis. It is a strategic tool that processes and identifies all the
external and internal elements, which can affect the organisation’s performance. The
analysis entails assessing the level of threat and opportunity the factors might
present. These evaluations are later translated into the decision-making process.
The analysis helps align strategies with the firm’s environment.

Economic

Economic factors are all those that pertain to the economy of the country that
Mondelēz International, such as changes in the inflation rate, the foreign exchange
rate, the interest rate, the gross domestic product, and the current stage of the
economic cycle. These factors, and their resulting impact on aggregate demand,
aggregate investment and the business climate, in general, have the potential to
make a company highly profitable, or extremely likely to incur a loss. The economic
factors in the PESTEL analysis are macroeconomic. The economic factors that
Mondelēz International may be sensitive to, and in turn should consider before
investing may include the following:

 The economic system that is currently operational in the sector in question-

whether it is a monopoly, an oligopoly, or something similar to a perfect
competition economic system.
 The rate of GDP growth in the country will affect how fast Mondelēz
International is expected to grow in the near future.
 The interest rates in the country would affect how much individuals are willing
to borrow and invest. Higher rates would result in greater investments that
would mean more growth for Mondelēz International
  However efficiently the financial markets operate also impact how well
Mondelēz International can raise capital at a fair price, keeping in mind the
demand and supply.
 The exchange rate of the country Mondelēz International operates in would
impact the profitability of Mondelēz International, particularly if Mondelēz
International engages in international trade. The stability of the currency is
also important- an unstable currency discourages international investors.
 A high level of unemployment in the country would mean there is a greater
supply of jobs than demand, meaning people would be willing to work for a
lower wage, which would lower the costs of Mondelēz International

Threats

There are other firms who have been exist for a longer time by its popularity like
Nestlé‎, where it is known for manufacturing famous foods and drinks. They are the
main threat for Mondelēz International. Some of the threats that is currently facing by
Mondelēz International are:
 Technological developments by competitors; New technological developments
by a few competitors within the industry pose a threat to Mondelēz
International as customer attracted to this new technology can be lost to
competitors, decreasing Mondelēz International’s overall market share.
 Suppliers: The bargaining power of suppliers has increased over the years
with the decrease in the number of suppliers. This means that the costs of
inputs could increase for Mondelēz International.
 New entrants: there have been numerous players that have entered the
market and are gaining market share by gaining existing companies’ market
share. This is a threat to Mondelēz International as it can lose its customers to
these new entrants.
 Consumer tastes are changing, and this puts pressure on companies to
constantly change their products to meet the needs of these customers.
 Regulations on international trade keep changing, and this requires
compliance by companies if they are to operate globally.
 Substitute products available are also increasing, which is threat collectively
for the whole industry as consumption of current products decrease.
  The rise in prices of fuel has increased in the input costs for Mondelēz
International. These costs have also increased as other industries that provide
inputs for this company also have suffered from increasing fuel prices, thereby
charging more.
 Increased promotions by competitors have been a threat for Mondelēz
International. On most media, there is more clutter than ever, and customers
are bombarded with multiple messages. This reduces the effectiveness of
promotional messages by Mondelēz International.
 Constant technological developments require the workforce to be trained
accordingly as the inability to keep up with these changes can lead to loss of
business for Mondelēz International.
 Increasing competition: there has been an increase in competition within the
industry putting downward pressure on prices. This could lead to reduced
revenue for Mondelēz International if it adjusts to the price changes, or loss of
market share if it doesn’t.
 Exchange Rate: the exchange rate keeps fluctuating and this affects a
company like Mondelēz International that has sales internationally, while its
suppliers are local.
 Political uncertainties in the country prove to be a barrier in business,
hindering performance at times and making the business incur unnecessary
costs.
 The fluctuating interest rates in the country do not provide a stable financial
and economic environment.
Social

The social factors that impact Mondelēz International are a direct reflection of the
society that Mondelēz International operates in, and encompasses culture, belief,
attitudes and values that the majority of the population may hold as a community.
The impact of social factors is not only important for the operational aspect of
Mondelēz International, but also on the marketing aspect of the organization. A
thorough understanding of the customers, their lifestyle, level of education and
beliefs in a society, or segment of society, would help design both the products and
marketing messages that would lead to a venture becoming a success. The social
factors that affect Mondelēz International and should be included in the social aspect
of the PESTEL analysis include the following:
 The demographics of the population, meaning their respective ages and
genders, vastly impact whether or not a certain product may be marketed to
them. Makeup is mostly catered to women, so targeting a majority male
population would be less population than targeting a population that is mostly
female.
 The class distribution among the population is of paramount importance:
Mondelēz International would be unable to promote a premium product to the
general public if the majority of the population was a lower class; rather, they
would have to rely on very niche marketing.
 To some extent, the differences in educational background between the
marketers and the target market may make it difficult to relate to and draw in
the target market effectively. Mondelēz International should be very careful not
to lose the connection to the target market's interests and priorities.
 Mondelēz International needs to be fully aware of what level of health
standards, reactions to harassment claims and importance of environmental
protection prevail in the industry as a whole, and thus are expected from any
company as they are seen as the norm.
Environmental

Different industries hold different standards of environmental protection in their head

as the norm. This norm then dictates what every company should aim for, in the
least, to prevent becoming the target of pressure groups and boycotts due to a lack
of environmental conscientiousness. A company in the textile industry, for example,
is not expected to incur the same level of pollution and environmental degradation as
an oil company. The new consumer, armed with the interest and the knowledge it
carries, prefers to give its business to companies it views as more ethical,
particularly about the environment in the wake of global warming. The environmental
factors that may significantly impact Mondelēz International include:
 The current weather conditions may significantly impact the ability of
Mondelēz International to manage the transportation of both the resources
and the finished product. This, in turn, would affect the delivery dates of the
final product in the case of, say, an unexpected monsoon.
  Climate change would also render some products useless. For example, in
the case of textiles, in countries where the winter has become very mild due
to Global Warming, warm winter clothes have much less of a market.
 Those companies that produce extremely large amounts of waste may be
required by law to manage their environmental habits. This may include
pollution fines and quotas, which may place a financial strain on Mondelēz
International
 If Mondelēz International should (knowingly or unknowingly) contribute to the
further endangerment of an already endangered species may face not only
the consequences from the law but also face a backlash from the general
public who may then boycott Mondelēz International in retaliation.
 While relying, in any percentage, on renewable energy may be expensive, it
often receives support not only from the government but also from its
customer base, who may be willing to pay a premium price for the products
that Mondelēz International may produce.

Information System Strategy

Since Mondelēz International have been operating in Malaysia for more than 60
years under the name Kraft Food Malaysia, it is important that they have their own
information system strategy. One of the most common they have been used is their
customer service. They are ready to listen to their customers about their complaint or
feedback of their product. They can use their hotline for any enquiries about their
products which per call would cost RM0.20. Alternatively, they can email Mondelēz
International or filling up the ‘Contact Us’ form by visiting their website. With all of
this, they can document the enquiries, complaints and feedback so that they can
improve their products and services. Another strategy they have been using is the
priority given to the news media and journalists. They have made an exclusive
hotline just for journalists and news media to contact them regarding of any updates
by the company. This would make things easier for any journalist to make an
appointment to Mondelēz International by making a call that would cost only cents
and not Ringgits. Mondelēz International will only return the news media hotline call
is the number is verified as a news media telephone number for any official business
like interviews, launching of new products, etc. That is a cost-effective strategy for
every news media and shows the ease of reaching the company in the most
effective way. One of the most effective strategy they have been using and
implementing is the social service. Mondelēz International have came up with adopt-
a-school programme called Joy Schools. This programme empowers school children
to make positive changes towards improving their overall well-being. Joy Schools
addresses the lack of healthy eating habits through a collaborative community
partnership platform with the Ministry of Education, schools, parents and non-
governmental organisations across three core pillars:

 Access to Fresh Food – pioneering a Garden-to-Table initiative within the

school compounds for students to grow fresh produce comprising herbs,
vegetables, and fruits that are served as main ingredients in school canteen
dishes.
 Nutrition Education – creating nutrition awareness by instilling the importance
of healthy eating habits and making balanced food choices through fun-filled
discussions and hands-on experiences among students.
 Active Play – advocating active play by converting classrooms into vibrant and
interactive spaces, build upcycle playground, in order to promote physical
engagement and collaborative learning among students.

The Joy School program was established in 2015 on Malaysia. Since its inception,
Joy Schools has benefitted over 5000 students in Malaysia across 5 schools
nationwide.

Creation, distribution, and sharing of knowledge within the

organisation
The SECI model of knowledge dimensions is a model of knowledge creation that
explains how tacit and explicit knowledge are converted into organisational
knowledge. The SECI model distinguishes four knowledge dimensions which is
socialization, externalization, combination, and internalization; which together form
the acronym "SECI". The following shows the figure of SECI model:
Using SECI model, I am going to analyse how knowledge is created, distributed and
shared within Mondelēz International.
Socialization
Mondelēz International and its knowledge can be shared by having a “Daily
Management System”. In every country, they can implement this system between
employee and employer. For their lunch break, the employees can have social
conversations about the company and its growth while the employer is still around
there. If they got any ideas to improve the company, they can share it to the
employer without asking for any permission and it is not necessarily for any employer
to share their ideas on a board meeting or weekly meeting. Job rotation should be
given to employees based on their performance and experience in particular field.
Both employers and employees can work on vacation to improve their knowledge.
Externalization
To improve Mondelēz International, they should receive customers’ feedbacks and
reports. Documentation of these reports and feedbacks doesn’t include experience
of their products’ usage.
Combination
No updates will be given to the employees. Only updates database checked by high
board only.
Internalization
When new employees of Mondelēz International joined, they were given an
information book to apply. Employers do the schedule for employees training plan.
Conclusion
Mondelēz International is one of the multinational company that have been operating
successfully since 1959. Their brands have been recognized not only in Malaysia,
but across the world. Their iconic brands like Cadbury and Oreo have made a bigger
impact by making them their favourite confectionary items. Tiger Biskuat and Jacob’s
is another milestone for them to make our countries’ favourite biscuits for more than
50 years. These iconic brands that still exists makes them successful company that
have been operating till now. Now, they have come up with some innovative products
where Cadbury Dairy Milk with Oreo biscuit crumbles inside and Oreo biscuits
dipped with molten Cadbury Dairy Milk so that people across the world can have the
best of both worlds. This shows that they have been listening to their customers to
cater their taste buds.
References
Home | Malaysia | Mondelēz International, Inc. (online) Retrieved from
https://my.mondelezinternational.com/home
Mondelez International - Wikipedia (online) Retrieved from
https://en.wikipedia.org/wiki/Mondelez_International
Mondelez International SWOT & PESTLE Analysis | SWOT & PESTLE (online)
Retrieved from https://www.swotandpestle.com/mondelez-international/
SECI Model on Food & Beverage industry by Mahmoud Nashaat on Prezi
(online) Retrieved from https://prezi.com/o6kw6_4mjk_i/seci-model-on-food-amp-
beverage-industry/