1.0 Introduction The Padini Holdings began operation as Hwayo Garments Manufacturers Company in the year 1971.

Officially, the name of Padini Holdings Berhad came into establishment as a listed public company at the year of 1992. Padini Holdings engaged its product mainly on fashion wear and accessories; ranging from garment to footwear. The company manufactures and distributes its products with different brands such as Padini, Pdi, Padini Aunthentics, P & Co, Miki, Vincci and Seed. Over 170 stores and channels for Padini Holdings market had been set-up all around the places which includes Singapore, Hong Kong, West Asia and other. 2.0 Chief Executive Offier Profile Yong Pang Chaun, whom is the Managing Director of Padini Holdings had been appointed as Director since 26 March 1992. Being an entrepreneur in the textiles and apparel industry for more than 26 years, his hand-on experience drive the primary achievements of the Padinis Group and the presence of the brands command in the domestic market today. His ability to analyse fashion trends, accompanied with quick reaction to take advantage of changes in the market conditions and consumers preferences has guided Padinis Group with tremendous opportunities for continual growth until today. 2.1 Leadership Style Director Yong is a transactional leader where he exercises significant control on the activities regarding the management of Padini. He has been in driving Padinis success since its inception and lead the group further enhance in Malaysia and increase customer awareness of its brands. Padinis is also one of few companies in Malaysia that have gone through two recessions and survived. Hence, it is not surprising to believe that he is a successful leader. 2.2 Managerial Roles The three key managerial group of interpersonal, informational and decisional are played by Director Yong. As a top level manager, being a firgurehead, he represents Padini legally and socially to those of external parties. For example, an interview had been conducted with him by the Malaysian Business with regard to the good sales rate. He performs the liaison and monitoring role where he interacts with peers and people outside Padini, and obtains favourable information from analyst respectively. Moreover, with his ability to analyse fashion trend and his entrepreneurial skills, he acts as an entrepreneur and lead changes with quickly. It is illustrated where he cut prices for local customers instantly to further improve Padinis sales. 2.3 Managing and Leading Activities As the man responsible for Padinis Group merchandising division, he and the merchandising team regularly attend trade exhibitions in fashion leading countries such as Hong Kong, Japan, Europe and the United States to learn the latest developments in the fashion world. It is from these visits that the group gets new ideas to innovate, develop into concepts, implement and design new product lines. Besides that, he sees strong potential within the Seed brand; hence, action is made to lift the brand image by market advertising and promotions expenditure.

3.0 Corporate Strategies Padinis vision is To Be The Best Fashion Company Ever, and mission which is To Exceed Customers Expectations And Our Brands Promise. Nevertheless, Padini also introduced the Caring from the heart as their core value. 3.1 Objectives 3.1.1 Financial Objectives Padini Holdings Berhad is principally involved in investment holding and provision of management consultancy services to its subsidiaries. The company has a concept where educated customers nowadays focus in seeking for value in the products; which reflect selfesteem, personalities and lifestyles. Hence, prices are set affordable for this segment of customers which will definitely attract their attentions. On top of that, Padini also export its products to Thailand, Brunei, India and other countries with their Made-in-Malaysia stamp. 3.1.2 Strategic Objective. Padini focused in providing the best products that caters to customer needs along with their guarantee on its products. It is done through a mix and match strategy where Padini continuously improve its management settings and product innovation to remain as the top fashion company, in consistent with its vision. The company continues to maintain high quality products along with high standard of designs by having employees motivated in their job through paying of lump-sum bonus if targeted sales were achieved. 4.0 Business Strategy 4.1 Marketing Strategy The targeted market segments are peoples of middle and upper middle income level who are chasing after fashion trend. Therefore, its price is of affordable and acceptable level. Padini combines various product lines within a concept store to widen customers product range variety. These concept stores mainly located in major giant shopping centres; whereas minor individual brand store on different selected sites. Padini constantly update its trendy products through advertising via billboards and newspapers, also fashion magazines. 4.2 Human Resource Strategy Padinis recruitment process focused on hiring highly qualified personnel with high commitment for work and if possible, multilingual personnel. Its employees are well-trained to greet and serve quality service. In return, they were paid bonus linked to sales. Besides, Padini required its employees to read of pledges of Padinis vision and mission every morning to remind them of the roles of serving with care. Padini also motivates its employees by giving them the discretion in decision making to solve problems out of its policies.

4.3 Corporate Social Responsibilty Padini nevertheless provides pre-job training for unemployed graduates to raise the economic level of the country, with the hope of building labour resources. Internship programme also made available with the objective to provide real working life experience prior to a students graduation. Customers were given a 14-days exchange policy for merchandise bought. Padini also performed charity offers by visiting and donating fund for orphanages, old folkss homes and held healthcare service for free. 5.0 Company overview Types of Analysis Earning before Interest and Tax(RM0 00) Earning per Share Formula 2005 2006 39347 2007 43668 2008 56890 2009 66085 Analysis Profit increased every subsequence years show that the business is expanding and growing The earning per share increases highly show the company is generating high profitability and raised the market share price. Shareholder will more satisfied Return on capital employed increased as it the company is using the asset efficiency to gain profit and has paid off. The ratio in 2006 is considered high degree of ratio this may due to the company is expanding the market to overseas and the risk is high. The company have the ability to meet it short term liquidity except 2008 may due slower spending because of petrol price hike. The company has a good ratio as it over 2 this show that the company got ability to turn it product into cash.

Profit 25263 before Tax - Interest Profit after 14.55 Tax/ No. of ordinary shares

22.02

24.24

31.71

37.64

Return on Profit 0.264 Capital before Tax/ Employed Total Assets Gearing Ratio NCL+ Preference Shares/ (Equity Shares+ Reserves) (CAInventory)/ CL CA/CL

0.252

0.225

0.218

0.310

0.010% 0.062 %

0.030% 0.018 %

0.016 %

Quick Ratio (times) Current Ratio (times)

1.90

2.08

1.60

0.805

1.41

3.35

3.68

2.91

2.07

2.51

Business model

2005 Revenue Cost Profit RM 243,263,000 130,003,000 18,079,000

2006 RM 286,107,000 152,250,000 27,740,000

2007 RM 316,866,000 163,719,000 31,442,000

2008 RM 383,306,000 192,353,000 41,750,000

2009 RM 475,477,000 241,958,000 49,533,000

6.0 Conclusion The vision of Padini used may be too vague as it confined itself with being the best fashion and it does not focus on other element such as being comfort. Meanwhile, its vision creates a clear and simple idea of understanding which could be communicated easily. It is also desirable as it success in striving a goal to be achieved by the company as a whole is identified. Padini are higly committed in providing customers with updated fashion wear which are coped with the ever-changing market trends. The strengths of Padini are that they are very aggressive in term of their advertising, and have promotional events for their members. Padini implemented the idea of one-stop-shopping by housing all their brands under one roof of the Padini Concept Store. Using this strategy, Padini could absorb more revenues by mean of cross-marketing where people will not only purchase any specific garments, accessories or footwear; instead people will buy one after another. Hence, boost their overall earning yield. Padini could utilise this strategy very well because of its few wholly-owned subsidiaries. However, Padini have weakness where it introduced too many product lines. Thus, they have lost focus in becoming a brand leader. The famous brand of Padini is Vincci and it is largely popular; where on the other hand, the other six brands are still in the hide out and not well exposed. Furthermore, their expansion to overseas garment market is relatively slow and thus, they faced a threat of losing these opportunities to competitors of the same industry. Having few subsidiaries, a minor weakness is where Padini do not have market for adolescent ranging from age 12 to 15. These adolescent starts growing and undergoing puberty, hence they tends to diverse themselves to fashion as they starts seeking for reputation-building at the age. Thus, Clotting matters a lot at the point of time. The strategy of being offensive to competitors can be seen where Padini collaborates with Parkson by forming a strategy alliance. Using this method, Padini is able to widen their reach to larger pool of customers. New brands and increased product diversity are key dimension policies. However, this collaboration might drive cannibalization of Padinis own sales if Parksons stores are located within the same area of operation; thus, giving customer an option to reside to Parkson instead of Padini which might reduce the purchasing capability of customers toward Padinis merchandises. All after the discussed issue, certain recommendation could be appropriate to be implemented by Padini. First of all, the key issue of security should be enhanced by setting a security bar code on every of its merchandises. Every year, there is a huge amount of loss of inventories for the Padini Concept Store which mainly due to thieve. Perhaps, Padini could also introduce sport wears to increase product variety as being it is also a part of fashion. Padini could also

launch online business via e-shop, extending the reach of its existing network to tap into potential business opportunities as online access is now expanding vigorously. In addition, Padini may try to increase the number of garments limited per room as most shoppers find it unusual to only bring a few pieces of clothes into the fitting room per time. In the nutshell, Padinis brand image is strongly backed up by real value of quality, functionality and price. Necessary improvement is still vital in order to remain competitive advantage over competitors although Padini had its own competitive edges through the introduction of the Padini Concept Store. Its weakness should be realised and opportunities to market should be fully utilise to ensure a furtherance of its future.