SWOT Analysis Of DLMI

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Part II - Knowledge and an Overall Understanding of Dutch Lady Milk Industries Berhad (DLMI) (i) SWOT Analysis of DLMI Strength A well-structured and experienced Board of Directors and management team are one of the strengths of DLMI as the company grows continuously and expands time by time under the leadership. Experienced management team and Board of Directors team tends to be more knowledgeable and have a better and thorough understanding about the dairy industry, inherent risks associated with the industry can be identified more easily and precautionary actions can be taken as compared to their competitors. It contributes to the efficiency and effectiveness on the company’s operation (Kanishkawee, 2014). DLMI has been in the market for…show more content…
The financial summary of the most recent 5 years is shown in the Appendix (Refer to Appendix 5). As we notice in the graph, the revenue earned by DLMI in 2011 is about RM810.6 million and has increased RM191.1 million to reach one of the important milestones earning for the company, RM1, 001.7 million. The economic condition in Malaysia is challenging in 2015 as the Goods and Services Tax has been implemented in April, Ringgit depreciated and some political uncertainty condition, this had been weakening the purchasing power and the willingness of consumers to buy products. To cope with these economic challenges, DLMI as a leader and experienced dairy company in Malaysia had set few strategies. DLMI is continuously focused and maintaining on the stronghold as the No. 1 brand of dairy industry and strengthen its market leader position. With some investment in marketing and promotional activities carried out, the revenue of the company has successfully reached more than RM1 billion once again with a marginal sales growth of 0.1% of RM1, 001.7 million compared to revenue in year 2014, RM1, 000.2 million. A net profit amounted RM141 million was reported in the financial statement of DLMI in 2015. It is higher than the net profit of last year of RM109.8 million as there are reduction in the cost of sales of percentage of the company’s sales from 67.15% to 58%. Due to the higher the profit reported, the taxation charges of year 2015 also increased. The tax expense for the year 2014 is RM47.8 million which was higher than year 2014 of RM9.2 million. The tax rate for DLMI in the year 2015 was

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