BPIN 3053 Management Information System

2014








BPIN 3053
Group f
Group Assignment

NAME LECTURE
Dr. Nafisat Afolake Adedokun-Shittu



Group Members Details
1. [ 219530 ] Teo Siaw Chui
2. [ 219870 ] Tan Yun Xi
3. [ 219884 ] Leong Hui Shan
4. [ 219997 ] Tan Soon Chai
5. [ 220380 ] Gan See Ying
6. [ 221713 ] Qurratu Aini Abdullah
7. [ 222004 ] Balqis Mawazir
8. [ 228863 ] Teguh Hardi



BPIN 3053 Management Information System
2014


Table of Contents

1.0 Introduction ............................................................................................................................................ 3
1.1 the trend in Information Technology strategy adoption among firm ................................................ 3
1.2 the trend in Information system strategy adoption among firm........................................................ 4
2.0 Company Background ............................................................................................................................ 5
2.1 Perodua Company ............................................................................................................................... 5
2.2 Established of company ...................................................................................................................... 6
3.0 Discussion ............................................................................................................................................... 7
3.1 Low Cost Leadership .......................................................................................................................... 7
3.2 Product differentiation ........................................................................................................................ 9
3.3 Focus on Market Niche ..................................................................................................................... 10
3.4 Strengthening customer and supplier intimacy ................................................................................. 11
4.0 Recommendations ................................................................................................................................. 12
5.0 Conclusion ............................................................................................................................................. 14
6.0 bibliography .......................................................................................................................................... 16








BPIN 3053 Management Information System
2014

Discuss the trend in IS/ IT strategy adoption among firm
1.0 Introduction

Nowadays, technology change very fast and the information system normally used to
describe an organizational function that applies in industry, government agencies. Actually,
information systems are study of complementary networks of hardware and software that people
and organizations use to collect, filters, process, create and distribute data. However, the
Information management deals with the practical and theoretical problems of collecting and
analyzing information in a business function area including business productivity tools,
applications programming and implementation, electronic commerce, digital media production,
data mining, and decision support. So, with information system and the management,
organization can interact with the way technology work through and let them more easier to
analyzing information in a business function area.
1.1 the trend in Information Technology strategy adoption among firm

Besides, the information system are different with the information technology (IT).
Information technology has become a part of our everyday lives. That means the term "IT,"
already highly overused, is here to stay. IT is refers to anything related to computing technology,
such as networking, hardware, software, the Internet, or the people that work with these
technologies. This means that information system has an information technology component that
interacts with processes' components. Information system aims to support operations,
management and decision making. Information system also bridges business and computer
sciences in form of computer information system (CIS). CIS is a field study of computers and
their application, while information system is emphasizes functionality over design.
BPIN 3053 Management Information System
2014

1.2 the trend in Information system strategy adoption among firm

Information system also are the communication system and a semi-form language which
support human decision making and action, When IS using computer technology to carry out
some or all of its planned task, Computer-Based Information System occurred. There are few
basic components included in computer based information system. For example, the hardware,
software, database, networks. This type of component is known as information technology
platform. After that, information technology workers could then use that component to create
information system that watch over safety measures, management data and risk.
There are number of different areas of work that contain the Information System such as
IS strategy, IS management, IS development, IS iteration, IS organization. Company also looks
for those technologies to drive up their revenue. Information Technology is important to the
operation of the business. That is because, it offer many employment opportunities. One of the
larger organizations such as Perodua, the information technology department are strongly
influence the information technology development, use and application in the organizations.
Many developers used System Development Life Cycle (SDLC) as procedure of developing an
information system through stages, that occurring sequence. An information system can be
developed in house or outsourced.



BPIN 3053 Management Information System
2014

2.0 Company Background


2.1 Perodua Company

Perodua is known as Perusahaan Otomobil Kedua Sendirian Berhad. Perodua is a
automotive manufacturer limited company that established in 1992. Is Malaysia second largest
automobile manufacturer. This company is a joint venture company between Malaysian and
Japanese partners. The shareholder of Perodua are UMW Corporation Sdn. Bhd., 38%, MBM
Resources Berhad, 20%, Daihatsu Motor Co. Ltd., 20%, PNB Equity Resource Corporation Sdn.
Bhd., 10%, Daihatsu (Malaysia) Sdn. Bhd., 5%, Mitsui & Co. Ltd. 4.2% and Mitsui & Co, (Asia
Pacific) Pte. Ltd. 2.8%.







BPIN 3053 Management Information System
2014

2.2 Established of company

The company started operations in 1994 and the ever so popular Perodua Kancil was
introduced to the Malaysia market in August the same year. Perodua headquarters is located on
an 138-hectare site in Sungai Choh, Rawang, Selangor Darul Ehsan. It houses among other
Perodua corporate building, R&D testing laboratories and styling studio, vehicle test track,
manufacturing plant, engine plant, pre-delivery inspection area, vehicle distribution stockyard
and parts warehouse. Perodua mainly produces minicars and superminis. Perodua does not have
models in the same market segments as Proton. Perodua has sold over 189000 vehicles in 2012,
which is highest ever sales record. Its estimated market share in Malaysia of 30.2%. Perodua also
export their car to Brunei, Sri Lanka, Saudi Arabia, Republic of Ireland in the small number by
local dealers. The car design including Myvi, Viva, Alza.
Perodua consists few sub-companies, Perodua Auto Corporation Sdn Bhd, PCSB
(400745K) was established in the final quarter of 2001. Besides Perodua, the two other joint
venture partners of PCSB are Daihatsu Motor Co. Ltd. and Mitsui & Co. Ltd both of Japan. The
manufacturing operations of the Perodua Group are being managed by PCSB. Perodua Sales Sdn
Bhd, PSSB (066332U) is responsible for the sales, marketing, and distribution of all Perodua
vehicles as well as after sales service and spare parts operations. Perodua Manufacturing Sdn
Bhd, PMSB (095999T) is the company responsible for the manufacturing of Perodua vehicles.
Perodua Engine Manufacturing Sdn Bhd, PEMSB (400706M) undertakes the assembly of the
vehicle engines and also manufacturing of selected engine component parts


BPIN 3053 Management Information System
2014

3.0 Discussion

How Perodua using Information System to achieve competitive advantage in context of
competitive forces.
3.1 Low Cost Leadership
According to Management and Information system for the Information Age (Ninth
Edition) text book written by Haag and Cummings, Overall cost leadership is defined by Porter
as offering the same or better quality product or service at a price that is less than what any of the
competition is able to do. Examples of organizations focusing on low cost leadership are
numerous and change almost daily, with the most well-known automobile sector in Malaysia,
which is Perodua. Perodua seeking to become a cost leader, is attempting to gain a competitive
advantage by producing at the lowest cost. Perodua is formulating a strategy that attempt to cut
costs at every step of their value chain, whether it is using word of mouth over advertisements or
engaging in vertical integration strategies in an attempt to control costs. Perodua also improve
the efficiencies of their processes, they prepared to be highly leveraged and of course to maintain
its position because of its low cost nature.
Perodua is become a major part in automobile sector in Malaysia by producing their
vehicles in low cost but they have high quality and they have more customers compare from
other competitors. They able to get their raw material or other supply in low cost compare from
other competitor or they have major share in the product in that country so they become the cost
leader compares others.
Perodua is the second motor vehicle company that formed in Malaysia and they are
mainly producing smaller car. Perodua is producing their car engines with the help of Daihatsu
BPIN 3053 Management Information System
2014

Motor Co., Ltd from Japan. The capacity of the engine is less because perodua cars are smaller
and they cant have high power for their engine it will be a problem for the productivity and also
in will cues problem for the user. Perodua is producing smaller cars because the cost of car is
lesser. Peroduas price is cheaper compare to others automobile vehicles because the capacity is
lower.
Based on the top 10 National vehicles that sold by the car companies in Malaysia,
Perodua Myvi is the fast sealing national car in Malaysia. Second place also is taken by another
Perodua product that is Perodua Viva. The 3rd and 4rt place is taken by Proton Saga and Proton
Persona from Proton Company. From this we can identify that Perodua is the cost leader for car
selling in Malaysia. The prices of the perodua cars are lesser compare to proton. People are
buying perodua cars because the price is cheaper, the maintainance charges are also cheaper. A
full tank of petrol for Perodua is cheaper than full tank for other cars. But the important thing
was the performance of Perodua cars can fulfills the customers. Another reason why perodua get
high market is because in this economical world, majority of people face financial problem in
fulfilling their needs. A car is a major part for a person or a family for their daily uses. Thus,
Perodua produce cars that are affordable by everyone in Malaysia. Also perodua give more than
one type of car at the same time and the price also not high. So people have more choices and the
price of the car cheaper and they are affordable to buy it. For proton, they produce a car with
high performance and also the price is higher, so not every people are affordable to buy the cars.
So they may compare both car company and they mostly prefer to the less cost cars that fulfill
their daily life routine. Although the price of the perodua car is cheaper but the performance of
the car is in good condition compare to other competitor. Thats why customers prefer to buy
perodua car. In addition, perodua have their outlet everywhere of Malaysia so that the peroduas
users are easy to service their cars in the service center.
BPIN 3053 Management Information System
2014

3.2 Product differentiation

Differentiation is defined by Porter as offering a product or service that is perceived as
being unique in the marketplace. Perodua is an excellent example. The product of the Perodua
Company is selling mini compact cars which are the specialty product. To date, the vehicles that
have rolled out of the Perodua plant are the Perodua Kancil, Perodua Kelisa, Perodua Myvi,
Perodua Kenari, Perodua Viva, Perodua Rusa and Perodua Kembara. The product objective of
the company is to provide a new generation mini compact car for convenience driving with
attractive and sporty design and features in a more affordable price and more fuel efficiency for
the people. The product line used by the company is the combination line stretching where the
company wants to achieve both the goals of the upward and downward stretching strategy. The
current product line strategies are now meeting the product objectives of the company. Apart
from the product, Perodua also provides service which is the car service. It has its own service
centers providing the service to the Perodua car owners. They can enjoy special privilege when
they send their cars to service at the Perodua service center. This is also part of the after sales
service provided to enhance the company's product. The core benefit of the product is to provide
the convenience for the consumers to travel. It is then added value through special features of
each car, design and the packaging of the car, the quality of the car manufactured and the brand
name, and this makes it the actual product. The delivery of the cars and the after sales service as
well as the warranty that the company provided had improved the product becomes augmented
product. The branding of the Perodua is currently very strong among the Malaysian consumers.
This is due to the perception and feelings of the consumers towards the company and the
confidence towards the products in terms its performance and the company's promise to deliver
BPIN 3053 Management Information System
2014

the specific sets of features, benefits and experience to the buyers. Hence the branding strategy
of the company is successful. Therefore, it has a strong position in the consumers' minds.
3.3 Focus on Market Niche

According to Management and Information system for the Information Age (Ninth
Edition) text book written by Haag and Cummings, Focus as a strategy is usually defined as
focusing on offering products and services to a particular market segment or buyer group, within
a segment of a product line, and to a specific geographic market. Focus is the opposite of
attempting to be all things to all people. Perodua's strategy all along has been to focus on
'niche' market, producing compact quality cars and to find ways to improve quality and reduce
production costs.
The person who buys the product for consumption is called the consumer market
(Pride.et.al, 2007). Perodua Company comes with varies vehicles that can attract buyers
especially these who want an affordable yet efficient vehicle. The company mostly targets on
individuals or families who want to buy quality car at a premium as Perodua Company sets up
the prices that are reasonable and affordable by most consumers. Perodua Myvi is product on
May 2005 by Perodua Company which is one of the examples for individual or family use.
The companies which buy goods and services are to be used in the production id other
goods (Pride.et.al, 2007). For instance, Perodua Company buys the parts from other countries but
the assembling is done in Malaysia.
The companies that purchases the goods or services and resell the product without
making any changes to it (Pride.et.al, 2007). For examples, Perodua dealers get the product from
the main company and finally distribute to them without making any changes of the cars.
BPIN 3053 Management Information System
2014

For government market they may purchase it to be used it in the production of goods and
services (Pride.et.al, 2007). For example, the model of Perodua Myvi, Perodua Kancil, Perodua
Viva are provided to the government for the use of National Parade Day.
The products used for the use of the government to carry on with the government duties
(Pride.et.al, 2007). For international market, Perodua Myvi purchases for the overseas market
such as United Kingdom, Singapore, Brunei, Fiji, Nepal and Sri Lanka.
3.4 Strengthening customer and supplier intimacy

Strengthening customer and supplier intimacy can be an extremely effective strategy in
itself. Through making transactions and conditions in general easier and more user friendly for
both customers and suppliers, the intimacy of the firm and customer/supplier will increase. This
offers great incentive for both customer and supplier to continue doing business with the firm.
Perodua is well known selling the economic cars for the public, meanings that it has the
lowest price compare to the others. For example, the company has made a promotion in year
2007 where giving the discount to all Perodua's vehicle up to RM7, 000. This encourage
consumer feel more willing to buy our products.
On the other hand, Perodua Company provide One-hour Super service. It is the guarantee
that consumer will get their car serviced in one hour or it is totally free. And the procedure to get
the service is very easy. And within seventy two hours customer will receive a follow-up call
from the service advisor to ensure they have the satisfaction gain from Perodua Company. As
part of the Perodua family, Perodua Service Centre mechanics are well trained and well equipped
with the very latest technology. When a consumer's bring his or her Perodua to the service centre
to be serviced, they will always get the top quality service and genuine parts that have passed
Perodua's stringent quality control test. And the genuine parts are all come with a warranty.
BPIN 3053 Management Information System
2014


Other than that, Perodua has launched new genuine oil formulated specifically for
Perodua cars, the latest top of the range semi-synthetic engine oil known as 5W-30 API SM.
Besides the services promotion, Perodua Company also provides other types of promotion
known as Extended Warranty Programme. It is an extension of the manufacturer warranty. It is
totally free for newly purchased vehicles. Not only have that, consumer can now accessed to the
e-shop for Perodua Company's product. And there is a rebate of RM300 if consumer books a
new Perodua online. Consumer can choose their favor of place and country to get their vehicle
after made the booking. If the consumer is a government staff, he or she can enjoy the Merdeka'
promotion made by the Perodua Company which the consumer can get 100% loan and zero
down payment. They can also benefit from the low interest rate and the free service up to one
year.
4.0 Recommendations

We would like to recommend the Perodua Company make their product differentiation
because the key of winning target customers and building profitable relationships with them is
try to differentiate the companys product compare to others competitors. Such products can be
differentiated on their features, performance, or style and design. For examples, company can
differentiate their products on attributes such as consistency, meaning how hard of the metal for
the vehicle can provide the safety. Durability, meaning how long is the period for the car to last
for.
Besides of the product differentiation, consumers may perceive a difference based on
company or brand image differentiation. Perodua Company can develop a strong and distinctive
BPIN 3053 Management Information System
2014

image calls for creativity. A company cannot develop a good image to the public's mind just
using few advertisements. The recommendation for Perodua Company is that they can put their
brand around a famous person such as a singer, an artist, celebrities or a well-known person.
Other than that, it is recommended for the Perodua Company to launch a different vehicle
with the engine between 1500cc to 2000cc. It is because it could widen the market opportunities.
Consumer will have more choices when they wanted to purchase a transport. Not only because of
that, if Perodua choose to accept the recommendation, there will be more different target
customer. For example, those who already retired would like to enjoy their life and own a more
elegance vehicle. While the upper class consumers will tend to purchase larger and more
comfortable vehicles than mini and compact cars.

Perodua Alza
Perodua Myvi
BPIN 3053 Management Information System
2014

5.0 Conclusion

Technology provides new markets and new opportunities for the Perodua Company. Politic
environment consists of law in government agencies and pressure groups that influences or limit
various organizations and individuals in a given society, such as government policies, quota and
tax. To be a world class automobile company, Perodua renowned for excellent quality and
reliability through some of the corporate mission. Perodua has 7 corporate missions and there
are:
professionalism in all their operations
efficiency in utilizing technologies and available resources
resilience in meeting their challenges
optimizing benefits to customers and stakeholders
dedication towards social responsibility to community
the environment and development of competent workforce
uniqueness in their products and aspiration to glorify the name of PERODUA.
Perodua divided their customer into five categories which are consumer market, business
market, reseller marker, government market and international market. Besides that, the target
market for Perodua Myvi is segmented by demographic consumer and Perodua has used few
target market strategy to promote Perodua Myvi. Firstly, Perodua used differentiated marketing
to attract different customers. Furthermore, Perodua also used concentrated marketing strategy to
attract a large portion of once section while controlling costs.
The system that Perodua company used are Vendor system, Perodua Online Management
System (POMS) and Material Requirements Planning (MRP) system. Perodua used all these
BPIN 3053 Management Information System
2014

three systems during their operations. While carrying out operations, Perodua also faced with
some problem and Perodua company used SWOT analysis to solve the problem. In addition,
Perodua company also used Porters Five Forces Model to solve the problem that faced by them.
On the other hand, Perodua company used Information System to achive competitive
advantages. Firstly, Perodua company uses overall cost leadership to enhance companys
competitive advantages. Perodua also uses product differentiation to improve their competitive
advantage by offering product or services that is being unique in the marketplace. Perodua
company also focuses on market niche. Perodua offers products and services to a particular
market segment or buyer group in order to improve the competitive advantages. Besides that,
Perodua company provide One-hour Super service for customers so that the company can
strengthen their relationship with customers and supplier. One-hour Super service is the
guarantee that customer will get their car serviced in one hour or it is totally free. This service
can enhance Perodua companys competitive advantage.
In order to increase Perodua companys sales, it is advice to make their product
differentiation as the key of winning target customers and building profitable relationships with
them is try to differentiated the companys product compare to others competitors. In addition, it
is recommended for the Perodua company to launch a different vehicle with engine between
1500cc to 2000cc as it could widen the market opportunities.
In conclusion, Perodua can carry out some promotion activities to increase companys sales.
The effectiveness of the promotion activities will determined the sales of the company and it will
attracted more consumers. Therefore, through all these efforts, the Perodua gain good positions
in the consumers mind.
BPIN 3053 Management Information System
2014

http://reversediaspora.graduan.com.my/Search/Employer/Details/83

Perusahaan Otomobil Kedua. (2014). Retriefed May 17, 2014, from
http://www.perodua.com.my/corporate/company

Cost Leaders For New Innovations Marketing Essay. (2014). Retriefed May 17, 2014, from
http://www.ukessays.com/essays/marketing/cost-leaders-for-new-innovations-marketing-
essay.php#ixzz2jZEdn2v9

Micro-environment. (n.d). Retriefed May 17, 2014, from
http://www.allfreepapers.com/print/Microenvironment/3099

History of perodua analysis. (2014). Retriefed May 17, 2014, from
http://www.ukessays.com/essays/marketing/history-of-perodua-analysis-marketing-
essay.php#ixzz2jZRaUrfc

Wikipedia: perodua. (2009). Retriefed May 17, 2014, from
http://en.wikipedia.org/wiki/Perodua



6.0 bibliography



Perodua Auto Corporation Sdn. Bhd. (2011). Retriefed May 17, 2014, from