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BACHELOR OF BUSINESS ADMINISTRATION (HONS)

FINANCE

STRATEGIC MANAGEMENT

MGT657

INDIVIDUAL ASSIGNMENT

(MYDIN)

PREPARED FOR

SIR AZAHAR BT YUSOFF

PREPARED BY

SYAKIRAH BT YUSOF (2018401864)

BA2425B

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ACKNOWLEDGEMENT

Firstly, we would like to thank God for giving us health and capabilities to finish up
this assignment. There are a lot of people involved in the process for us to complete this
assignment and we are really thankful to those who help.

The accomplishment of this case study benefits of the help and direction from our
dear lecturer, Sir Azahar b. Yusoff. Sir Azahar b. Yusoff is always happy and willing to help
us solve the confusions and direct us approach to the final result of this assignment.

Furthermore, we would like to show our grateful feeling to fellow groupmates for
giving fullest commitment in finishing this assignment. Next, thank you to our classmates too
for assisting us and help us to understand better to ensure we finish this case study in time.
Thank you to our parents too for endless support given to us. Thank you very much,
everyone!

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INTRODUCTION

As we probably are aware, we have well-established and biggest Malaysian-claimed


organization that includes in the matter of retailing and wholesaling which is MYDIN
Mohamed Holding Berhad and known as MYDIN. MYDIN is a popular brand grocery store in
wholesale’s Malaysia. It was worked as a holding organization which is a chain of mini
markets, general store, hypermarket, franchise stores, emporium, bazaar and 24-hours
accommodation shops through all Malaysia.

There are more than 200 outlets operating currently and being the best homegrown
company in distributing the Halal goods and services. The organization was established in
1940 and it's situated in Subang Jaya, Malaysia. It has store areas in Terengganu, Perak,
Selangor, Kelantan, WP Putrajaya, WP Kuala Lumpur, Pahang, Melaka, Pulau Pinang,
Negeri Sembilan, Johor, and Kedah, Malaysia. In addition, it also offered households
products, soft-line products that comprise fabric and textile products, hardline products that
includes hardware, electrical, stationery, porcelain and toys, dairy products, and also drinks
and beverages.

MYDIN was starting the first operation in Kelantan, where the company known for the
competitive and affordable priced offers among budget-conscious consumers. MYDIN also
was considered as a supplier of goods to the middle and lower class customers. In MYDIN,
they are particularly fond of the “Win-Win” principle, and seek to create an environment in
which their worker can fully improve their skills and contributing to the company’s
performance actively. Besides that, the consumers will be able to feel the 1 Malaysia’s
atmosphere when they entered the MYDIN hypermarket. This is because of MYDIN was
attracting customers from the other ethnic groups as well.

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BACKGROUND COMPANY

MYDIN business activity is in retailing and wholesaling. The products range from
food line, household, soft-lines and hard-lines items. Hard-line products include hardware,
electrical, stationery, porcelain and toys. Whilst soft-line comprises of textiles and fabrics
products. Food line includes confectionery, drinks and beverages, delicatessen and dairy
products. In their early years of operations, MYDIN’s focus has always been in the non-food
sector until they bought over the first supermarket in Selayang in 1997.

Each of the branches has their own business category, based on the capacity of
goods traded. The category comprises hypermarket, supermarket, emporium, convenience
shop, franchise store, bazaar, premium store and premium restaurant. MYDIN operates 69
outlets nationwide including premium store named SAM’S Groceria.

This number of outlets encompasses, 26 hypermarkets where each is located in the


malls, 17 emporiums, 3 bazaars, 8 supermarkets, 9 convenience shops (MyMart), 4
franchise outlets (Mydin Mart) and 2 SAM’S Groceria supermarkets.

Above all, MYDIN operates its business based on ‘Halal’ concepts and stresses on
honesty, sincerity and good discipline in all aspects of its business.

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ISSUE IN COMPANY

The issue that faced by MYDIN is they got losses because of the weaker currency in
Malaysia. It also was supported by MYDIN Mohamed Holding Bhd, the main factor for their
losses is the weaker Ringgit against the US dollar not about the implementation of
government policies or the goods and services tax (GST). This is because the goods and
services tax (GST)had never been a reason for the MYDIN’s losses because this tax was
only replacing the previous sales and services tax. Besides that, most of MYDIN’s products
were imported and causing the MYDIN hypermarkets nationwide had suffered losses due to
the weakening Ringgit. This is because, MYDIN need to pay more for the products it orders
without increasing the price for the customers.

In addition, MYDIN is hard to increase the product price because they need to
through the junk process in the Anti-Profiteering Act, which is the MYDIN required to state
the detailed reasons with regard to why they had to increase the price for any product they
have sold. Thus, it was difficult to pass the costs to consumers because the weakening
Ringgit had already resulted in reduced the purchasing power in turn affecting the group’s
business.

• IT infrastructure DRC – They seems to have bottleneck of networking problem whenever


several outlets wanting to access the same database at a time.

• Customer Service – hurts MYDIN the most, and this may cause most customers to flee to
and look for other alternative shopping spot.

• Mart Layout & Spacious issue – Lots of customer means they need a bigger space
because the existing Mart (especially at Masjid India branch) seems are no longer can
occupy thousands of attendance especially during festive season. Customer no longer
enjoying their time shopping in MYDIN

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OLD

COMPANY VISION

MYDIN is the world's leading distributor of competitive "Halal" goods and services.

COMPANY MISSION

We aim to be the leading wholesale and retail company by providing the best value, wide
assortment of goods and continuous excellence based on our business formula.

NEW

COMPANY VISION

 To provide our customers daily fresh food and world class service in 5-star
environment with wholesale prices 24/7/365
 To be Asia’s Leading Department Store Group
 To be a leading and sustainable Malaysian business corporation with global
presence.

COMPANY MISSION

 Bringing Conveniences to Everyone


 To inspire our people
 To delight our customers
 To achieve responsible and sustainable commercial success by addressing the
interests of all our stakeholders, caring for the community and the environment, and
adopting best practices to be globally competitive.

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CONCLUSION

Mydin has implemented huge expansion and organic growth of its company. They try
to gain their market share by becoming more competitive toward its rival. In becoming so, a
transformation throughout the organization is done. Based on the marketing planning carried
out, Mydin is currently on the right direction towards its corporate objectives. We can notice
how Mydin develop strategic marketing mix to successfully market their product. However,
there is some areas that should be improved and focus on. In terms of product, Mydin can
try to attract non-Muslim customers by having a promotion or creating an image of Mydin as
a place for anyone.

Besides that, Mydin has wide channel of distribution. However, Mydin should also
consider dealing with diseconomies of scales. One of the choices is by introducing measures
to remove productive inefficiencies. Mydin might count the effectiveness of each of the
business format. The marketing strategies indicate that Mydin can gain higher market share
from its competitive advantage in promotion and price.

In positioning their product, Mydin had done it well through their USP, slogan and
CSR played. They manage to give clear perception of the business to public. Hence, they
can gain more customers in the future. In operation management and human resources,
Mydin try to centralize their management to hinder business runs at loss and to generate
efficiencies. Their decision to cooperate with Microsoft Corp. is a right choice to place Mydin
at top amongst other key players. Also, without neglecting its employees needs and
demands.

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REFERENCE

[ CITATION Myd \l 1033 ] https://www.mydin.com.my/

[ CITATION Fac \l 1033 ] https://www.facebook.com/MydinMalaysia/

[ CITATION Wik \l 1033 ] https://en.wikipedia.org/wiki/Mydin

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