COMMUNICATIONS

SIME DARBY: Communication and Actions

SIME DARBY: Communication and Actions

Introduction

There is perhaps no manufacturing industry that has undergone more revolutionary changes in the past thirty years than the rubber tire industry. In the 1960s, six U.S. producers controlled nearly 75 percent of the industry's output. By 1991, five of the six U.S. major producers no longer existed as independent entities. Foreign producers such as Dunlop, Michelin, Pirelli, Continental, Bridgestone, and Yokohama now own about 60 percent of U.S. production capacity, much of it acquired through merger. One of the reasons for the dramatic shift in ownership in the industry has been the change in tire technology In the 1950s and 1960s; the major U.S. companies produced mostly bias-ply tires. The foreign producers, such as Michelin and Pirelli, were among the leaders in radial-tire technology. As the U.S. market began to demand radial tires in the 1970s, principally because of their contribution to vehicle fuel efficiency, the U.S. producers found themselves at a competitive disadvantage. One company, Firestone, had a disastrous experience with its first radial passenger tire that nearly bankrupted the company. Less than 25 percent of the industry's output is represented by original-equipment shipments to vehicle assemblers; hence the industry is less dependent on the location of motor vehicle assembly plants than is the flat-rolled steel industry. As a result, one might expect regional input prices to be more important in tire plant location than in the steel industry. The tire industry has grown and reached various parts of the world. One company thriving and succeeding in the tire industry is Sime Darby of Malaysia. This paper wants to evaluate the value adding activities of the company Sime Darby. This paper wants to analyze how value adding activities can be considered as a good strategy.

Discussion

External environment

Sime Darby is deemed as Malaysia's leading multinational corporation that is involved in different sectors that include plantations, property, industrial, motors, energy and healthcare. The company helps in the growth and development of the country through additional income by taxes. The country on the other hand protects the company through laws and legislations. The plantation sector remains to be one of the most important sectors for the company. The plantation sector is considered to be the money making sector of the company. Dato' Mohd Bakke Saleh is the current President and Group Chief Executive. Colonialism figures prominently in accounts of both the making of Malaysia and its fragmentary characteristics. On the one hand, British colonialism brought a measure of economic and administrative unity to previously disparate and often disputatious territories, especially in the Peninsula. The critical re-workings of colonialism suggest important lessons for analyses of more recent socio-spatial transformation. In the first place the complex spatiality of transformative processes and agencies unsettles binary logics of internality and externality. Just as social transformation and commercial development in the Malay Peninsula pre-dated the arrival of a supposedly modern Europe, Malaysian national development has been characterized by, and remains, a mixed set of constitutive extra-local ...