Dutch Lady Milk Industry

Nature of Business
History
1950-After World War II, sweetened condensed milk was
imported wholesale from its parent company in Holland via
local importers and wholesalers.
1954-A trading company Friesland (Malaya) Pte.Ltd, based
in Singapore, was imported from Holland in Malaya and
Singapore. Among several brands was a certain Dutch Baby
brand.
1963-Pacific Milk Industries (Malaya) Sdn.Bhd was
incorporated in Malaysia with commissioning of a
sweetened condensed milk factory in Petaling Jaya. The
present site is the first overseas production facility of the
parent company.
1965-The factory was operational and started to manufacture
sweetened condensed milk.
1968-Pacific Milk Industries (Malaya) was converted into a
public company and became the first milk company listed on the
Stock Exchange of Kuala Lumpur and Singapore.
1979-A fruit juice under the Joy brand name was introduced.
1983- Manufacture of Sterilised Milk in plastic bottles
commenced.
1984-The brand name was changed from Dutch Baby to Dutch
Lady for product positioning reasons.
1985-A three-storey building was built to house the Powder
Packing Plant, as business grew.
1987-The company underwent an equity restructuring exercise
to comply with the Governments New Economic Policy. The
share capital was enlarge to RM 16.0 million. Dutch Lady
Pasteurized Milk was launched.
1989-In compliance with the Governments national policy to
promote the Kuala Lumpur Stock Exchange, the Company
delisted its shares from the stock Exchange of Singapore.
1994-A new warehouse was built to accommodate the
companys growing business. Human capital started to expand
in line with organizational needs.
1995-The Company obtained certification under the ISO 9001
standards.
2000 to 2007-This company achieve a lot of award and success
in their business.
Board Of Directors
Chairman
Dato Zainal Abidin bin Putih (Independent Non-Executive
Director)

Directors
Sebastian G. van den Berg (Managing Director)
Dato Dr. Mohd. Nordin bin Mohd. Nor (Non-Independent Non-
Executive Director)
Johannes P.F. Laarakker (Non-Independent Non-Executive
Director)
Foo Swee Leng (Independent Non-Executive Director)
Huang Shi Chin (Executive Director)
Boey Tak Kong (Independent Non-Executive Director)
Products
Dutch Lady Milk Industry produces a lot of diary products
such as :
Infant Formula.
Growing-up Milk,
Powdered Milk
Condensed Milk
UHT (ultra high temperature) Milk
Sterilized Milk
Pasteurized Milk
Cultured Milk
Yoghurt
Fruit Juice Drinks
Their Shareholders
Frint Beheer IV BV
Amanah Raya Nominees (Tempatan) Sdn Bhd - Skim Amanah Saham
Bumiputera
Kumpulan Wang Persaraan (Diperbadankan)
Permodalan Nasional Berhad
Public Nominees (Tempatan) Sdn Bhd - Pledged Securities Account for
Aun Huat & Brothers Sdn Bhd (E-IMO/BCM)
Aun Huat & Brothers Sdn Bhd
Cartaban Nominees (Asing) Sdn Bhd- Exempt An For Bank
Sarasin-Rabo (Asia) Limited (AC Client Frgn)
Yong Siew Lee
Yeo Khee Bee
Quek Guat Kwee
External Business Environment
PEST Analysis
The PEST Analysis is a framework used to scan the external
macro-environment in which a firm operates.
PEST is an acronym for the following factors:
Political Factors
Economical factors
Social factors
Technological factors.

Political Factor
Dutch Lady Berhad it is a government planned company
where this company has to follow and abide by the rules
intervened by the government on the amount/quantity of
products produced. There is tax policy by the government on
this product to maintain political stability. Meanwhile, this
company is listed as public limited company in Bursa
Malaysia. Many vacancies are available at the Dutch Lady
company. Moreover, the political stability of the company are
strong.

Economical Factor
Dutch Lady Milk Industry affect the purchasing power of
potential customers and the firms cost of capital. If the country
is undergoing inflation the company has to produce more goods
depending on the demand of people. This company expects the
dairy market to show substantial growth this year although
challenges will remain, particularly in further increases in dairy
raw material prices. Meanwhile, the economic growth of the
company quite strong.

Social Factor
The demographic and cultural aspects of the external
macro-environment in Dutch Lady affects he customer needs
and the size of potential markets. Some social factors include
health consciousness, population growth rate, age distribution
career attitude, emphasis on safety, role of woman for e.g. :
Dutch Lady Milk Industries Sdn Bhd decreased the demand for
milk because more citizens are facing diabetes or concerned
about health, therefore the have to reduce the sugar level in the
products.
Technological Factor
Technological factors can lower barriers to entry, reduce
minimum efficient production levels and influence outsourcing
decisions. Some technological factors include automation,
technology incentives and rate of technology change. Dutch
Lady Sdn Bhd company is using high tech machines to produce
huge bulk of milk products. They have to sacrifice human
labour in order to save time and save cost. Eventhough, this
action causes unemployment and pollution case to rise up.
Conclusion
Overall, every business structures in this world has its own
advantages and disadvantages. Dutch Lady Company is the
most common form of legal organization for really large
business that they have access to every substantial fund for
expansion. Meanwhile, a good business sector has to be
concerned on the external factors that is uncontrollable but
they have to change and adapt to PEST. In order to make a
positive growth of business the PEST analysis method,
Dutch Lady Milk Industry have to be practiced and followed
accordingly to be a successful diary company.