United Motor Works Group is a Malaysian company started in 1917 by Chia Yee Soh
United Motor Works Group is a Malaysian company started in 1917 by Chia Yee Soh, a peasant man who decide to open an automobile repair called United Motor Works (CHANGER 2018). This small repair automobile repair shop has now grown into a public known company in Malaysia and listed among the core businesses to tap opportunity in international arena. The company now operating under the same name as 1917 but the word Group added to it, is a multi-million industrial conglomerate. UMW Groups also UMW Holdings, now operates across Malaysia and the Asia-Pacific Region (CHANGER 2018). The company has an estimate of RM10 billion and ranked among the top companies by the Bursa Malaysia; it has the capacity of accommodating 12, 000 employees worldwide serving through extensive business networks. UMW Holdings has a net worth asset exceeding RM5.1 billion.
The company has four major strategic businesses; automotive, equipment, manufacturing and oil and gas. The organization’s value are based on four pillars; Honor, Unshakable, Vibrant and Pioneer (CHANGER 2018). The company has been able to play a leading role in shaping the future of most industries through inspiration of vibrant ideas, pioneer partnership and delivering quality in everything done by the company. The stakeholders have been able to be around for the company because of the efforts the company puts into the investments given by the stakeholders.
Toyota is the largest market share in the Malaysia among the foreign cars and it is the third largest market share after two domestic car manufacturers, Proton and Perudia.
Toyota generally has a strong image both locally and internationally and this aids in branding the company (Yee ; Lee ; Ng ; Tan ; Tan 2017; CHAMGER 2018).
Toyota has the largest manufacturing capacity with Just-in Time delivery and a guarantee of Total Quality Management with a moving ahead R;D as a result of investing in technology as far as cars in concerned; this has yielded the hybrid cars being manufactured recently.
Despite Toyota being the best manufacturer in Malaysia, the manufacturing plants are located in Japan and United States as opposed to the domestic production plants which are available at a cheaper price. This results to high expenses during import of Toyota cars making them expensive than the locally manufactured cars (Yee ; Lee ; Ng ; Tan ; Tan 2017).
Currently Toyota is focusing on moving away from niche segments and manufacturing cars that target specific needs; this eliminated the competitive advantage of the company as now there are limited product differentiation.
The rising global fuel prices creates a need for the manufacturing of Toyota fuel efficient cars.
The environmental awareness group in Malaysia will advise and enforce laws on the need for hybrid cars such as Toyota’s Toyota Prius (Mei 2015).
The Malaysian economy’s growth rate predict more car purchases in near future.
The pricing of the local manufacturing companies favors the local cars as importation of Toyota cars will cost the buyer a bit more.
The Southeast Asia production line was damaged by natural calamities in Thailand and Japan which reduced the number of cars bought from Toyota.
The slow growth rate in population makes the car market to be saturated in Malaysia; also, other strong brands such as Honda, Ford, Volkswagen, and Hyundai among others brings stiff competition for the limited buyers (Mei 2015).
Malaysian importation laws impose heavy taxes on foreign cars making Toyota cars expensive in Malaysia that any other country around it.
The profit of the company is greatly affected by the Forex fluctuations in the stock market.
To be the leading car seller in Malaysia and Asia-Pacific Region
The goal of being the leader in car selling in Malaysia and Asia-Pacific region is specific as it is well defined in its statement (Mei 2015). The aim of UMW Holdings is to be the leader, especially in its own country Malaysia. This is the achievement that will justify the attainment of the set goal.
This goal is important to the company as it will be expanding its territory and that will mean an increment in profit accumulated, profile of the company, employment capcity increment and expansion to uncovered areas in the Asia-Pacific region (CHANGER 2018). This is the reason why all companies in the world are created; to keep growing and setting new records.
A goal must be achievable for it to be realized. United Motors Works Group has emanated from a simple and humble automobile repair shop to a multi-million company; if the same dedication is put in the company, new heights will be achieved and among them being the leader in the region including in at home (Gomez ; Padmanabhan ; Kamaruddin ; Bhalla ; Fisal 2018). This is an achievable goal to UMW Group.
A goal is realistic if it is relevant, the goal of expanding is a relevant goal for UMW Group as this is a growing company and needs to keep growing, it stared from a single employee, the founder, to a 12, 000 employee holding capacity. The leading motif is a realistic and relevant goal.
The goal to be the best in the Asia-Pacific region is timely as this comes after the company has been recognized by Bursa Malaysia as amongst the top companies in the country. More efforts has to be put in place and the company will be ranked the best in the country and the region (Yee ; Lee ; Ng ; Tan ; Tan 2017). In a period of five to seven years, United Motor Works Holdings will the leading company in the Asia-Pacific region because it has the capacity to do so.
As a way of strategically managing the responsibility that integrates finance, communication, securities and marketing to comply enabling a communication in the organization that is in a two-way traffic form. Investor are the most appropriate audience of these message together with the managers (CHANGER 2018). This is because with more investment and proper management of the funds, the more profit and expansion progress the company will make towards achieving its goal of being the leader in the region.
The message of United Motor Works Group is that it is aiming to be the leader in the Asia-Pacific region and most importantly to be the leader in Malaysia, its home country.
Strategy and Tactics
UMW Group mostly gets its revenue from the manufacturing and engineering sectors and also in addition, the company is reliant on sustained traction of the leasing business because it keeps boosting the industrial equipment segment; with more equipment, manufacturing will be doubled and project carried out within the country or region outlet and delivered in good time to the customers (Yee ; Lee ; Ng ; Tan ; Tan 2017). This will allow most lover of vehicles such as Toyota to access their cars of choice without much spending as before.