MALAYA COMPANY

Background
Malaya Company is a domestic corporation engaged in manufacturing business,
both for domestic and export sales. For ten years since 2006, it maintained its head
office in Plaridel St., Cor. JL Jaena, Mabolo, Mandaue City, Cebu. Its primary products
are enumerated as follows:
1. Canned Tuna (Flakes in Oil, Chili Corned Tuna and some other Filipino
flavors such as Afritada and Bicol Express)
2. Canned Sardines (Spanish and Filipino Style)
3. Sardines Tetra Pack
Last 2015, it started to diversify its market into another business segment farming
and poultry business.
Malaya has a total outstanding voting stocks of P 3,900,000.00 as of the end of the
current fiscal year. It was formerly a family-owned corporation by the Malaya clan
with a shareholding of 85%. Just this April25, 2016, it initially listed its stocks in the
Philippine Local Stock Exchange and sold a huge amount of shares to public for
capitalization purposes

Vision
A five-star tuna and sardines manufacturing company in the whole ASEAN region
and a strong and sound company for our stakeholders.

Mission:

To be the leading tuna and sardines producer in the region for the next 10
years.
To survive the tough competition in the global tuna market through
excellence in cost efficiencies and compliance with international food
regulatory standards.
To maintain economic prosperity while pursuing sustainability in our
operation and strategic dealings.
Comply with global policies and guidelines.
Protect the ocean stocks for future generations.
Invest in strategic projects that will provide the infrastructure for future
growth and improved profitability.
Broaden target market
Regain more market share
Improve marketing programs

Earn profit

Goals and Objectives

Performance Goals
Achieve competitive advantage through producing a high-quality tuna
and sardines.
Have an efficient and effective production and storage processes.
Procurement Goals
Achieve logistics performance through maintaining an appropriate level
of safety stocks in the warehouse.
Control storage costs as well as inventory costs by maintaining low
inventory levels.
Production Goals
Tracking set-up time, set-up costs, and the length of the production
schedule and operating capacity.
Have cost control by maintaining low work-in-process levels.
Distribution Goals
Achieve vendor relationships and supply chain controls.
Deliver completed products on time and with a short delivery lead
time.

Values
Malaya Company will:

Act with honesty and integrity

Treat people with respect
Conduct all business lawfully
Accept individual and corporate responsibility
Strive for customer satisfaction
Improve and innovate continuously
Never be wasteful
Always work effectively and efficiently

PESTEL ANALYSIS

Political
Strict mining regulation which affects the production of tin cans
Contractualizationof factory workers
Economical
Strong export demand for products
o According to Tuna Canners Association of the Philippines (TCAP),
in the year 2014 the export value of tuna in US dollar was
257,696.20
High cost due to canning and packing
Inflation
Socio-cultural
For health conscious people because it produces omega-3 oils and all
those added health benefits
Affordable and accessible
Halal registered company
People nowadays want instant products due to busy schedules
Technological
Have their own fishing equipments
Have their own canning and packing facilities
Environmental
Waste disposal of canned and packed tuna and sardines
Abiding the fisheries management and policies of Department of
Environment and Natural Resources which is the protection of fish
habitat.
Legal Context
Lower Taxes
Corporate Social Responsibility

PORTERS FIVE FORCES MODEL

Power of buyers
Buyers pressure the company to reduce the price and improve the quality of the
products. The following are the external factors that contribute to the strong
bargaining power of buyers:

Low switching costs (strong force)

Large number of providers (strong force)
High availability of substitutes (strong force)

Customers can easily shift to other brands of sardines and tuna because it is
affordable to do so and the availability of other products is high. Due to market
saturation, customers can choose from many different companies who also offer the
same product. The number of substitutes of this product is also high making it easy
for the customers to choose the latter.
Power of Suppliers
Suppliers threaten companies with increasing prices for goods or services. This
force shows the impact of suppliers on firms. The weak bargaining power of
suppliers is based on the following external factors:
Large number of suppliers (weak force)
High overall supply (weak force)
Malaya Corporation can just find alternative suppliers if their supplier cannot
provide them and also if the suppliers will tend to make the price higher. Thus, this
analysis shows that supplier power is a minimal issue for the corporation.

Threats of New Entrants

The possibility that new firms may enter the industry also affects competition.
Wilkinson (2013) states that if it is easy for new entrants to enter the market if
entry barriers are low this acts a threat to the organizations already competing in
the market. The following external factors contribute to the force of the threat of
new entrants:

Cost of brand development (strong force)

High cost of doing business (strong force)

It is costly to develop a new entrants brand. The high cost of doing business
further limits new entrants ability to disrupt the industry environment.
Threats of Substitutes
Malaya experiences a strong force of the threat of substitutes. The availability
of a substitution threat affects the profitability of an enterprise because consumers
can choose to purchase the replacement instead of the industry's product (Hines,
2013 ). The following external factors contribute to the strong force of the threat to
substitutes:

Availability of substitutes (strong force)

Low switching costs (strong force)
Price of substitutes (weak force)

There are many substitutes to the products of Malaya Corporation. It could be

that customers could switch to fresh foods rather than canned products. It is very
easy for the customers to shift to substitutes in other brands such as the ones
offered by Mega Fishing Corporation and Century Canning Corporation, etc.
Competitive Rivalry
The depth of rivalry among competitors in a trade applies to the degree to
which firms within an industry put weight on one another and limit each other's
profit potential (Wilkinson, 2013). The following are factors that create a strong
force of rivalry against Malaya Corporation:

High number of competitors (strong force)

High aggressiveness of sardines and tuna companies (strong force)
Variety of firms (strong force)

Malaya Corporation has a lot of competitors specifically those already popular in

the market such as Mega Fishing Corporation and Century Canning Corp. The strong
force of competition is also due to the low switching cost, which means that it is
easy for customers to shift to other brands. The competition in this industry is high;
companies are very aggressive.