UNIVERSITI KUALA LUMPUR BUSINESS SCHOOL

BBA (Hons.) IN ISLAMIC FINANCE

GROUP ASSIGNMENT

PERODUA COMPANY

SUBJECT NAME : STRATEGIC MANAGEMENT

SUBJECT CODE : ECB30103

CLASS : M80

SEMESTER : JANUARY 2017

NAME: ID NUMBER
NUR SABRINA NAZIHAH BINTI SHAHRIL AFENDI 62211115344

NOOR HEDAYAH BINT MD NOR 62211115461

NURUL HUSNA BINTI MARZUKI 62211115424

MUHAMMAD IDZATUL AZFAR BIN MOHD ARSHAD 62214115693
MALISHA ANIS BINTI MOHAMMAD KHALIL 62214115554
MUQADDAS JAN 62200217019

LECTURER NAME : MADAM MARHAINI BINTI IBRAHIM

SUBMITION DATE : 17TH MAY 2017
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TABLE OF CONTENT

BIL CONTENT PAGE

1.0 Acknowledgement 1

2.0 Introduction 2

3.0 MAIN CONTENT

3.1 Analysis of Vision Statement 5

3.2 Analysis of Mission Statement 7

3.3 Analysis of Stakeholders 9

3.4 Industry Analysis using Porter’s 5 Forces Model 12

3.5 Competitive Advantage / Major Strengths of the Company 15

(SWOT)

3.6 Strategic Issues of the Company 18

4.0 Conclusion 24

5.0 Recommendation 25

6.0 Reference 26

7.0 Appendix 28

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1.0 ACKNOWLEDGEMENT

First of all we would like to thank Almighty Allah for giving us the knowledge and strength to

complete this project.

Secondly, we would like to express our gratitude to our lecturer, Ms Marhaini for giving us this

opportunity to do this wonderful project. We are also grateful to her for constantly providing us

with feedback to improve our report and eradicate our mistakes.

We have made this project not only for marks but also to increase our knowledge.

Sincerely,

All group members

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2.0 INTRODUCTION

Perodua is by far Malaysia’s second largest automobile manufacturing company. They started

their operations back in 1992 and since then they have managed to dominate the Malaysian

automobile market. Perodua has managed to enter the top 10 automobile manufacturing

companies of Asia. The slogan of Perodua since 2008 is BUILDING CARS, PEOPLE FIRST.

Perodua is a joint venture between Malaysian and Japanese partners. The major shareholders of

Perodua are UMW corporation Sdn Bhd (38%), Toyota (25%), MBM resources Bhd (20%),

PNB Equity Resources Corporation Sdn Bhd (10%) and Mitsui & co (7%).

Perodua has 520.7 acre site in sungai chow which includes their manufacturing pant and

headquarters. Their manufacturing plant has the capacity to produce 350000 vehicles each year.

Perodua has 182 sales branches and 202 service branches around the world.

Perodua launched their first car in 1994 and during their initial years they only manufactured

minicars and superminis. Even today the major products of Perodua are mini cars. From the very

beginning Perodua decided not to manufacture any of the main components of their automobiles.

All of the main components till date are bought from other companies. For example the engine of

Perodua cars in bought from Daihatsu and Toyota.

Till date the biggest competitor of Perodua is proton. A decade ago both Perodua and proton

targeted different segments of the market. But in recent years they have started producing similar

cars in an attempt to target same markets. The Perodua Myvi is competing with proton Iriz in the

super compact segment.

Being one of the largest organizations in Malaysia, Perodua employees more than 10000

workers. Due to their excellent work environment and learning opportunities, Perodua is

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considered one of the best places to work in Malaysia. They offer employment opportunities in

areas such as engineering, marketing, sales, information technology etc.

Perodua has sold over 3 million vehicles since 1994. Each year the sales of Perodua increase

with a large number. In fact many the sales of Perodua have beaten the sales of Proton,

Malaysia's largest automobile manufacturing company.

The main geographic market of Perodua is Malaysia and some parts of Asia. Their target market

is middle class and upper middle class. Apart from Malaysia, most of the Perodua cars are sold

in Indonesia, Singapore, Brunei, Fiji, Nepal, Mauritius, Qatar, Saudi Arabia, Lebanon, Cyprus

and Sri Lanka.

Perodua has produced the following cars till its startup:

 Perodua Kancil (1994–2009)

 Perodua Rusa (1996–2003)

 Perodua Kembara (1998–2008)

 Perodua Kenari (2000–2008

 Perodua Kelisa (2001–2007)

 Perodua Viva (2007–2014)

 Perodua Nautica (2008-2010)

Currently perodua manufactures the following cars:

 Perodua Myvi (2005–present)

Price from RM 45984.90

 Perodua Alza (2009–present)

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Price from RM 55332.00

 Perodua Axia (2014–present)

Price from RM 24900.00

 Perodua Bezza (2016–present)

Price from RM 37300.00

(Source: Perodua (2017), Perodua corporate. Retrieved from:http://www.perodua.com.my/)

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3.1 ANALYSIS OF VISION STATEMENT

The vision of PERODUA is to be the most preferred automotive brand renowned for product and

services of excellence quality which contributes to the development of the nation.

(Source: Ukessays (2015), History of Perodua Analysis. Retrieved from:

https://www.ukessays.com/essays/marketing/history-of-perodua-analysis-marketing-essay.php)

Characteristic vision Analysis

1. It should involve all member Not stated in the PERODUA vision.

of the organization and help

them feel they are a part of

the organization.

2. It should stretch It shows that the phrase “services of excellent quality

organization’s capabilities which contributes to development of the nation”

and images of itself. portray PERODUA vision will be able to stretch the

organization’s capabilities and image of itself.

3. It guides, shape, and give The purpose of PERODUA indirectly stated that they

direction and purpose of the want to be “the most preferred automotive brand

organization. renowned for product and services”.

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4. It serves as a powerful Have “product and services of excellent quality which

motivator. contributes to the development of the nation” is

directly show that the vision of PERODUA serves as

a powerful motivator.

5. It must be aligned with the PERODUA vision has been aligned with the core

core values of both the values which portray in the phrase of “product and

individual and be effectively services of excellent quality which contributes” it also

communicated to and had been accepted by everyone in the firm.

accepted by everyone

involved in the firm.

6. It needs to be specific with a Their aim to be “the most preferred automotive brand

clear and powerful agenda. renowned for product and services of excellent

quality” indirectly portrays the powerful agenda in the

PERODUA vision statement.

7. The statement has to be PERODUA vision statement is very simple yet

simple, understandable and understandable and they share by everyone in the

shared by everyone in the organization with phrase brand renowned for product

organization understands it. and services of excellent quality which contributes to

the development of the nation.

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3.2 ANALYSIS OF MISSION STATEMENT

PERODUA mission is Professionalism in all our operations, Efficiency in utilizing technologies

and available resources, Resilience in meeting our challenges, Optimizing benefits to customers

and stakeholders, Dedication towards social responsibility to community, the environment and

development of competent workforce, Uniqueness in our products, and Aspiration to glorify the

name of PERODUA.

(Source: Perodua (2017), Perodua corporate. Retrieved from:

http://www.perodua.com.my/corporate/company)

Components Analysis

1. Customers The sentences “optimizing benefit to customer and stakeholders”

indicate customer for PERODUA Company.

2. Product Services Product or services clearly stated in their mission which is

PERODUA is produce a car as their unique product and also they

provide the efficiency in utilizing technologies and available

resources in their services.

3. Market PERODUA has their own market in the industry and “Resilience

in meeting our challenges” in directly implied that PERODUA

faced a good challenges as one the top automobile company in

Malaysia.

4. Technology The mission stated that PERODUA have “utilizing technologies

and available resources” shows that PERODUA want to use the

high end technology to ensure customers satisfaction and provide

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better product and facilities.

5. Concern for PERODUA “optimizing benefit to customer and stakeholders”

survival, growth and “Dedication towards social responsibility to community”.

and profitability PERODUA are concern for their survival, growth and

profitability as they are always try to improve customer

satisfaction.

6. Philosophy As PERODUA are “aspiration to glorify the name of

PERODUA”. It shows that the phrase in the mission of

PERODUA, they always want to provide their product and

services with more attractive and charming.

7. Self- concept PERODUA main ambition is to be professionalism in all their

operations, that’s why the phrase of “uniqueness in our products”

always innovate their technology and services and come out with

new product.

8. Concern for It shows that the phrase “Dedication towards social responsibility

public image to community, the environment and development of competent

workforce” in directly implied the concern for public image for

social and community.

9. Concern for Not stated in the PERODUA mission.

employees

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3.3 ANALYSIS OF STAKEHOLDERS

A stakeholder is a party that has an interest in a company, and can either affect or be affected by

the business. The primary stakeholders in a typical corporation are its investors, employees and

customers. However, the modern theory of the idea goes beyond this original notion to include

additional stakeholders such as a community, government or trade association.

3.3.1 Primary Stakeholders

Primary stakeholders are may include customers, employees, stockholders, creditors, suppliers,

or anyone else with a functional or financial interest in the product or situation. Also, called

market stakeholders.

The firm's marketing plan should aim to attract and retain customers through products that meets

their wants and needs and excellent customer service. Employing staff with relevant skills and

experience is essential. The micro environment consists of 6 factors in Perodua such as customer,

company, competitors, supplier, Marketing Intermediaries & public.

Stakeholders in Malaysia are UMW Corporation Sdn Bhd, Toyota, MBM Resources, PNB

Equity Resources Corporation Sdn Bhd, Daihatsu and Mitsui & Co. Ltd. These company are the

biggest shareholders in Malaysia that have the main spare parts to the Perodua company. The

main company will support Perodua to gain their business to the international market.

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3.3.2 Secondary Stakeholders

Secondary stakeholders are those who have an indirect interest. For instance, the employees and

investors who depend on a company’s financial well-being for their own are the primary

stakeholders. Moreover, secondary stakeholders also are important because they often can be

primary stakeholders too. Secondary stakeholders include communities, the media, business

support groups, the government and the public.

Furthermore, as a home-grown compact car maker in Malaysia, Perodua has integrated social

messages into its corporate advertisements since 1999, seeking to enlighten the local audience

about various social issues and values. Perodua use company advertising with a social dimension

(CASD) to portray its good corporate citizen image. Besides, in the technologies world, now all

customers can see the advertisement about Perodua through social media and in web. It makes

customers easy to know about the Perodua car before buy. Also, Perodua have the Facebook

page to their customers by give space to receive the feedback for their company.

Moreover, banner in front of the store also can attract customer to buy their products. Word of

mouth is the biggest power to customers believe about Perodua car. Perodua Company promotes

Perodua Myvi on television advertisements. The official advertisement is telecasted on

television. Besides, they also advertise the product on the World Wide Web. Most of the

customer would like to view on the Perodua Company. Besides, customer can deal with the EON

bank, RHB Bank, and Islam Bank act as a mediator in order to promote Perodua’s cars. They

also provide a loan system so that the customers could have a minimum payment monthly and

enjoy the same benefits of a comfortable car.

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Perodua Advertising

Facebook page Perodua Website

Perodua Television advertisement Perodua Banner

(Source: Perodua. (2014). Perodua Axia receives 20,000 booking. Retrieved from:

http://malaysiaperodua2.blogspot.my/)

(Source: MBM Resources Berhad. (2013). MBM Resources Berhad. Retrieved from:

http://www.mbmr.com.my/Automotive/Locations/Associates/Perodua/)

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3.4 INDUSTRY ANALYSIS USING PORTER’S 5 FORCE MODEL

3.4.1 Threat of New Entrants Porter’s Five Forces Model Analysis Threat of new entrants

(Weak)

To the Perodua and the automotive industry are Weak. It is almost impossible that a new

company would appear to be a new threat to Perodua and its target markets. Perodua has been

around and well established for many years, strengthen its reputation, experience and knowledge.

There are many barriers to enter in this industry as stated below : Large amount of capital

required High retaliation possible from existing companies, if new entrants would bring

innovative products and ideas to the industry Few legal barriers protect existing companies from

new entrants All automotive companies have established brand image and reputation Products

are mainly differentiated by design and engineering quality A firm has to produce at least 5

million (by some estimations) vehicles to be cost competitive, therefore it is very hard to achieve

economies of scale Governments often protect their home markets by introducing high import

taxes.

3.4.2 Bargaining Power of Suppliers Porter’s Five Forces Model Analysis The bargaining

power of suppliers (Weak)

Perodua has many suppliers in its automotive manufacturing sector. Resources like metal,

raw materials, leather, plastic; computers, cooling system, electrical system, braking system and

fuel supply system are all bought from hundreds of different suppliers and different bargaining

prices distributed across the globe. One of the competitive advantages of Perodua is its strong

relationship with the suppliers and its efficient manner of monitoring supply chain places low

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bargaining power on the suppliers. In addition, most vehicle manufactures own many

interchangeable suppliers, and also have the ability to produce the components by their own in

the short time. Thus, the suppliers do not own the power to change the price.

3.4.3 Bargaining Power of Buyers Porter’s Five Forces Model Analysis The bargaining

power of buyers (High)

Perodua has fierce competition because there are quite a few companies that have similar

cars that can target similar markets (Eg: Honda, Nissan, Ford, Volkswagen, etc.). There are many

buyers and most of the buyers are individuals that buy one car, but corporates or governments

usually buy large fleets and can bargain for lower prices. Since the choices in the car market are

abundant, it doesn’t cost much for buyers to switch to another brand of vehicle or to start using

other type of transportation. The recent trends indicate that the customers are prone to seek out

more fuel-efficient cars due to the rising oil prices. This also results in the increasing demand for

the hybrid cars that offer cheaper alternatives for operating the vehicle coupled with higher

expectations of product quality. However, the cost cutting practices implemented by Perodua in

its operations lowers the buyer power and puts its cars into a more advantages position compared

to its competitors.

3.4.4 Threat of Substitutes Porter’s Five Forces Model Analysis There is a threat from

substitutes (High)

Cars or automobiles are still the most convenient way of transport for the majority of the

market who lives in suburban areas. Numerous other forms of transportation are available, but

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none offer the utility, convenience, flexibility, independence, and value afforded by automobiles.

Although the public transport vehicles are possible substitute of automobiles like trains, taxi,

busses and airplanes, these substitutes have disadvantages as they mostly only practical in cities

and have fixed routes and timetables. The motorbikes and bicycles are also not relevant

substitutes as they do not assure the comfort of a car. The switching costs associated with using

different kinds of transportation may be high in terms of personal time and comfort. High fuel

cost may push more people to public transport but it will not create a real substitute for cars. To

solve this problem, Perodua always being innovative to produce fuel-efficient cars for their

customers. Perodua’s competitors are constantly developing themselves in terms technology,

design, supply and quality.

3.4.5 Rivalry Among Existing Competitors The rivalry among existing competitors (high)

There are several competitors of Perodua in the automotive industry like Honda, Suzuki,

Ford, Nissan, and Proton and so on. These major competitors are so closely balanced that it

increases the rivalry. The competition also exists between the governments because the

government will establish protection laws to protect the products of each own production.

Product differentiation constantly increasing competition is powered by the higher consumer

expectations and anticipation for the lower prices. Lack of differentiation opportunities also will

cause high rivalry and the companies will compare to each other constantly. However, Perodua

always try to differentiate their products and services to increase the customer’s awareness and

loyal to their brands.

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(Source: Azfar. (2017). Information of Perodua. Perodua. Retrieved from:

http://www.perodua.com.my/)

(Source: Azfar. (2017). Perodua Cars SWOT Analysis, USP & Competitors. MBA Skool.

Retrieved from : http://www.mbaskool.com/brandguide/automobiles/5486-perodua-cars.html)

(Source: Azfar. (2017). Porter’s Five Force. Mind Tools. Retrieved from:

https://www.mindtools.com/pages/article/newTMC_08.htm)

(Source: Syauqi Jamil, (2016). ‘It’s about time Proton and Perodua compete head on’. Journal

Of Berita Daily. Retrieved May 10, 2017, from http://www.beritadaily.com/its-about-time-

proton-and-perodua-compete-head-on/)

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3.5 SWOT ANALYSIS

Strengths Weaknesses

 More than 10000 employees  Low safety standards of cars

 One of the largest small car  Too much dependence on Toyota

manufacturers in Asia and Malaysia’s  Limited reach: only restricted to Asia

second largest automobile

manufacturer

 Indirectly linked with Toyota

Opportunities Threats

 Enter new geographic markets  Lower competitor prices

 Enter new market for small cars  Chinese/ Japanese manufacturers

 Increase in the demand for small cars entering market for small cars

 The overall demand for cars is reducing

3.5.1 STRENGTHS

Perodua has a workforce of more than 10000 workers which is one of the largest workforce for

any company in Malaysia. It is considered one of the most desirable places to work at in

Malaysia. This gives perodua the opportunity to choose the best for hiring amongst hundred

thousand of applications each time.

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Perodua is Malaysia’s second largest automobile manufacturer and its amongst Asia’s top ten

automobile manufacturers. It has managed to create a brand name for itself and gain customer

loyalty.

As Toyota owns 25% shares of perodua, customers often relate the two brands. This linkup is

beneficial for perodua as Toyota is the market leader in automobile industry. Customers perceive

that the quality of perodua would be similar to Toyota because of their association.

3.5.2 WEAKNESSES

Due to the design of perodua cars they are often considered low on safety standards. As perodua

manufactures mini and super mini cars the safety standards are often compromised because of

the design of their cars.

In order to get the major components of their car engines, perodua depends on Toyota and

daihatsu. This dependence is often costly to perodua as these companies can increase the prices

of the components leaving perodua in a dilemma: either switch to other suppliers or accept the

increased prices. Both situations are unfavorable for perodua.

Perodua is local Malaysian company. It's sales have only been restricted to Malaysia or some

parts of Asia. Due to this limited reach perodua can not maximize its profits by entering new

geographic markets.

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3.5.3 OPPORTUNITIES

Perodua sales are only restricted to Malaysia or some parts of Asia. They can enter new

geographic markets by launching their cars in other parts of the world like Europe or America as

the demand for small cars are increasing in these continents.

As the oil prices and traffic problems are increasing in the world, majority of the people are

switching towards small cars. This means there are very high chances that the sales of Perodua

might increase in the near future.

3.5.4 THREATS

The major competitor of Perodua is proton and their gross sales are more than Perodua. If proton

manages to invest in research and development and offers better quality products to its customers

than Perodua might lose sales.

As the demand for small cars is increasing many new competitors are trying to enter the market.

Among them are many Chinese and Japanese manufacturers who are famous for their good

quality. This might make the market conditions tough for Perodua.

The public transport methods are gaining much popularity these days due to their improved

quality, lower prices and fast service. Examples include trains and buses. This might cause the

demand for cars to reduce in the future.

(Source: BrandGuide. 2011. Perodua cars SWOT Analysis, USP and competitors. Automobiles.

Retrieved from: http://www.mbaskool.com/brandguide/automobiles/5486-perodua-cars.html)

(Source: Perodua. 2017. Perodua corporate. Retrieved from: http://www.perodua.com.my/)

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3.6 STRATEGIC ISSUES OF PERODUA COMPANY

Superiors in Perodua Company should have leadership and subordinates qualities in those

who held a position in the organization. The aim that if there is any problems that arise in

organizations, it can be solved easily and gently without great difficulty involving many parties.

Which is leadership qualities one should be used properly in order to make a company more

advanced nowadays and so on in the future. In the presence of an efficient leadership in control

of the organization it may also attract customers to always use the product or service of Perodua

Company continuously without any problems.

3.6.1 Sales of Perodua in the year 2014 declined.

Perodua Company has been a topic of public conversation about the problems faced especially in

terms of competitors. Perusahaan Otomobil Kedua Sdn. Bhd. (Perodua) expects its share of the

Total Industry Volume (TIV) for 2014 slightly shaken due to the current economic environment

and competition from various other vehicle brands.

And for the first time since 2006, Perodua market share for the year 2014 is expected to fall

below 30 percent. According to The Star Online (2015), Perodua President and Chief Executive

Officer Datuk Aminar Rashid Salleh said that “There will be a number of ‘key success factors’

that will determine the performance of the national car maker this year and one of the biggest

challenges for Perodua is that the customers don’t get their loans approved”. This issue had been

compounded by the Bank Negara responsible lending guideline, in which all the loan was

approved based on the customers net income compared with gross income. This had been given a

big impact towards the company Viva models, especially the entry level, where the rejection rate

is between 40% and 45%.

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In 2015, the Viva has been replaced by the Axia and many of axia buyers already have a primary

vehicle, and are buying it for their children or using it as a secondary car. According to The Star

Online (2015), “Response for the Axia has been overwhelming. Since its launch in August,

bookings have already surpassed 70,000 units, with 29,100 units delivered as at December and

the loan-rejection rate for the Axia was low because most of the purchasers are additional car

buyers, who don’t have no credit issues.”

This had been greatly affected for Perodua by which their sales slipped 0.3% to 195,600 units

from 196,100 units in 2013. Market share dropped 0.5% to 29.4% from 29.9% a year earlier.

Perodua expects that the sales for 2014 are 197,000 units with expected TIV 2014 amounted to

665,000 units and the rating puts them in control of TIV rate was 29.6% compared from 2006 to

2013 at a rate of 30% to 33%. Among other factors that cause in 2014 was a demanding year for

Perodua because of their new factory adjustment period that has affected Perodua’s production

slightly during the year and makes sales of their products fall. Additionally, ‘wait and see’

attitude of buyers and competition from various other brands due to the goods and services tax

(GST) was introduced on 1st April 2015, make Perodua company failed to achieve their target by

2014.

As a result in the year 2015, Perodua company was incurred capital expenditure of more than

RM1 billion, especially for use in Perodua new factory that has been in operation in the third

quarter of the year 2014 and they also has set a year-on-year sales target growth of 6% to

208,000 units for 2015, which was the highest ever even though in the year 2014 was a

“challenging year” for Perodua Company. “This 2015 estimated growth can be driven by

continued strong demand for the company’s Myvi and recently launched Axia model.” Said

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President and chief executive officer Datuk Aminar Rashid Salleh, (as cited in The Star Online,

2015).

(Source: Eugene Mahalingam (2015), Perodua braces for challenges. Retrieved from:

http://www.thestar.com.my/business/business-news/2015/01/19/perodua-braces-for-challenges/)

(Source: Eugene Mahalingam (2015), Perodua expects highest ever sales despite a challenging

year. Retrieved from: http://www.thestar.com.my/business/business-news/2015/01/16/perodua-

targets-6-sales-growth-it-expects-highest-ever-sales-despite-a-challenging-year/)

3.6.2 Perodua Myvi need to fix electronic power steering column.

Perodua is undertaking a preventive measure campaign to replace the electronic power steering

column (EPS) in 74,000 new Myvi variants produced between March 2011 and March 2012.

Besides, the compact car maker said this was to ensure that owners of the New Myvi enjoy

optimum performance from their vehicle. According The Star Online, Bernama (2013), Datuk

Aminar Rashid Salleh as a managing director said that “The campaign was necessary as the car's

performance might not be at its best and could partially compromise the driver's response time at

low speeds”.

Apart from that, this issues based on studies conducted by Perodua, the problem could be

detected when the EPS indicator is alight, after which, the driver could feel a slight heaviness at

speeds of between 30 and 40 kilometres per hour.

This issues “can be temporarily fixed by switching off the engine and restarting the car but, for a

permanent fix and to eliminate any possibility of risk to our customers, we kindly request them

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to make an appointment at any of our 170 service centres, nationwide, for the replacement of the

EPS column”. And “the car of company had already issued notification letters to the affected

customers and Perodua would absorb all costs for the replacement of the EPS column”. This

statement that stated according by Datuk Aminar Rashid Salleh.

The car of Perodua Company had already issued notification letters to the affected customers and

Perodua would absorb all costs for the replacement of the EPS column. And for the campaign

time frame is open ended. However, customers are encouraged to make an appointment as soon

as it was convenient for them to ensure that the replacement can be done orderly and smoothly

(as cited in The Star Online, 2013).

(Source: Bernama (2013), Perodua recalling 74,000 new Myvi cars to replace power steering.

Retrieved from: http://www.thestar.com.my/news/nation/2013/01/16/perodua-recalling-74000-

new-myvi-cars-to-replace-power-steering/)

3.6.3 Perodua Axia streering lock

Perodua Axia E MT ‘steering lock’ acident which took place back in June in Penang, the

Malaysian automaker has now released a statement clarifying what took place. A full diagnostic

test conducted after the accident revealed that its steering, braking and airbag systems were all

properly functioning. The report has been submitted to the Axia’s driver by Perodua, while the

company is giving the Road Transport Department (JPJ) its full co-operation and has stated that

this is the first time such a case has taken place among the Axia cars sold from September 2014

to date which numbers over 200,000.

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Perodua’s MD Dr. Zahari Husin said that, “We wish to assure our customers that our vehicles

adhere to stringent safety standards set by the authorities with most even surpassing those

standards”. The Axia’s driver reported that his car’s steering ‘locked’ all of a sudden and could

not be turned, while driving on the Second Penang Bridge at a speed of 70-80 Km/h (44-50 Mph)

while it was raining. He also claimed its brakes were non-functional when he slammed on them,

and that the airbags failed to deploy upon impact with the road barrier.

Countering his claims, Perodua stated in its report that the car was being driven with all 4 of its

tyres in a bald state, with a tread depth of only 1 mm on three of them. In all likelihood, in this

case the airbags did not deploy because the car’s structure had safely absorbed the impact, or

because the impact force was not strong enough to trigger their deployment.

Engineering from Perodua Axia also coming with a statement that the car itself doesn’t have

anti-lock braking system(ABS) characteristics so when the car does not have ABS and suddenly

braking, automatically the front tire will be lock and causing the car to slide forward and steering

wheel can’t be controlled as if locked its front tire positions have been locked its movement.

(Source: Alextang (2016) Perodua Axia steering lock automatically. Retrieved from:

https://thecoverage.my/automotive/news/perodua-axia-steering-lock-accident-clarified/ )

(Source: Hussein Mat Omar, Mohd Shukri Ismail (2016) clarify the issued that had been faced

by Perodua Axia steering lock. Retrieved from: http://amazingnara.com/jurutera-perodua-ini-

jawab-dakwaan-viral-stereng-axia-terkunci-tiba-tiba-hingga-sebabkan-kemalangan/ )

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4.0 CONCLUSION

Our group are feeling very grateful because finally we was able to finish this task, although we

have a lot of difficulties and hectic schedule. Even though we do not get enough time to make it

perfect but finally we are able to finish it up.

We also would like to thank to our parents because with their support, we can finish it before the

date of the submission. They always encourage us to not easily give up on our assignment and

toward our study generally. It is honor to us to complete our and my parents dream to be

someone in the eyes of the world that success in life.

Thanks to my lecturer Madam Marhaini bt Ibrahim as well as for her support because without

her guide to our assignment, we cannot be done properly starting from cover page until

appendices. She guide our team how to do our assignment in propose on Perodua Company. We

got a big problem to find the issues of Perodua Company that is become our issues to finish this

assignment.We also want to congratulate to our self that we were able to finish this assignment

on time without delay and being capable to understand briefly about the Perodua Company.

Finally, big thank to our group members that always support and gives an ideas to finish the

assignment completely.

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5.0 RECOMMENDATION

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6.0 REFERENCE

Perodua (2017), Perodua corporate. Retrieved from:http://www.perodua.com.my/

https://www.ukessays.com/essays/marketing/history-of-perodua-analysis-marketing-essay.php

Perodua (2017), Perodua Corporate. Retrieved from:

http://www.perodua.com.my/corporate/company

Perodua. (2014). Perodua Axia receives 20,000 booking. Retrieved from:

http://malaysiaperodua2.blogspot.my/

MBM Resources Berhad. (2013). MBM Resources Berhad. Retrieved from:

http://www.mbmr.com.my/Automotive/Locations/Associates/Perodua/

Azfar. (2017). Information of Perodua. Perodua. Retrieved from: http://www.perodua.com.my/

Azfar. (2017). Perodua Cars SWOT Analysis, USP & Competitors. MBA Skool. Retrieved from :

http://www.mbaskool.com/brandguide/automobiles/5486-perodua-cars.html

Azfar. (2017). Porter’s Five Force. Mind Tools. Retrieved from:

https://www.mindtools.com/pages/article/newTMC_08.htm

Syauqi Jamil, (2016). ‘It’s about time Proton and Perodua compete head on’. Journal Of Berita

Daily. Retrieved May 10, 2017, from http://www.beritadaily.com/its-about-time-proton-

and-perodua-compete-head-on/

BrandGuide (2011), Perodua cars SWOT Analysis, USP and competitors. Automobiles.

Retrieved from: http://www.mbaskool.com/brandguide/automobiles/5486-perodua-cars.html

Eugene Mahalingam (2015), Perodua braces for challenges. Retrieved from:

http://www.thestar.com.my/business/business-news/2015/01/19/perodua-braces-for-challenges/

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Eugene Mahalingam (2015), Perodua expects highest ever sales despite a challenging year.

Retrieved from: http://www.thestar.com.my/business/business-news/2015/01/16/perodua-

targets-6-sales-growth-it-expects-highest-ever-sales-despite-a-challenging-year/

Bernama (2013), Perodua recalling 74,000 new Myvi cars to replace power steering. Retrieved

from: http://www.thestar.com.my/news/nation/2013/01/16/perodua-recalling-74000-new-myvi-

cars-to-replace-power-steering/

Alextang (2016) Perodua Axia steering lock automatically. Retrieved from:

https://thecoverage.my/automotive/news/perodua-axia-steering-lock-accident-clarified/

Hussein Mat Omar, Mohd Shukri Ismail (2016) clarify the issued that had been faced by Perodua

Axia steering lock. Retrieved from: http://amazingnara.com/jurutera-perodua-ini-jawab-

dakwaan-viral-stereng-axia-terkunci-tiba-tiba-hingga-sebabkan-kemalangan/

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7.0 APPENDIX

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