OKB Essay

Learning Issues Chapter 1 (OKB) a) There was some mention about mailholders in the problems, who be the stakeholders and what their risk?1. Capital market stakeholders In this case, the capital market dispenseholder of a firm is bank and shareholder. In this case the shareholder who gives OKB financial resources for OKB duty. The stake of these shareholders is to ensure the OKB businesses continues their operation and can meet the expectation on the capital they had given.2. Akar Enterprise (supplier)Is a major supplier for OKB Bhd. They supply herbs and roots from the forest of Perak. Their stakes is whether they able to meet the demand of OKB to continue supply raw material.3. CustomerWe know that The Guardian approached OKB to supply its medicinal products to them. If that thing happen the sales would addition since consumer prefer engross OKB products4. EmployeeWe nonice that the OKBs production process is carried out manually by the kampung folks. If OKB accept the offer from The guardian, the process will win over to the machine since they will change it to mix of pills, capsules and liquid-compound forms. If this happen, they no longer can work for OKB in a manufacturing the products.5. GovernmentMinistry of health is a body who obtain and monitor the quality and the safety of products. It is already mention about the latest markey surveys conducted by them, OKB is still the first choice among consumers. It shown that the product is safe to be used.b) What do you think of the comment made by the management about OKBs Vision & OKBs achievements? I think the old vision may not be suitable anymore to face the changes of economy nowadays. This is because, OKB more relies in traditional approach and they should come out with a new vision that conjure abouts its products quality and attract customer. With a good vision, OKB can be more success and achieve their targets. They should change their vision not only based on customer need but also based o n environment changes and also satisfied their employees. OKB Bhd can be more competitive to the real orbit and they can easily adapting the changes that have taken place on the industry.Learning Issue Chapter 2 Explain to Datin Timah about the importance of getting to know the outside(a) environment. Discuss the possible impact of the DPEST & G factors and the Competitive Forces (The 5 Forces) on her business.The DPEST & G analysis membered the external environment into 6 segments which are demographic, semipolitical or legal, sociocultural, technological, global and environment segments. The first segment is political or legal segments. This segment focuses on organization to aware of any changes. Management moldiness aware of consumer tastes and procureing power. Any changes essential be consider in the managements strategies as changes on political or legal segments make believe direct or indirectly on the demands of the market. Sociocultural segment need to be considered by management.These refer to the consumers concerns regarding the market, as there were negative regards from the customer. Customer view the product should be revamping into modern pills and capsules rather than traditional furtherance. They should be innovative in market their products and use the resources for best effectiveness and efficiently strategies. OKB Bhd can use technological advance thus creating competitive advantages of organization in the market. Advance in technologies can increasing the efficiency of productions and increase the value of product. bordering is scotch segment.This refers to the nature and direction of the economy in which a firm competes. This can help the management to create decision what suitable time to production. stand segment is global segment. Datin should know the global environment where existing markets are changing and thus taking the opportunity to make OKB Bhd well known by expanding the business and making improvement and innova tive improvement on their products that are different from other competitors.The five forces of competition model are threat of new entrants, talk terms power of the supplier, bargaining power of the buyer, threat of the substitute products and intensity of rivalry among competitors. The threat of new entrants is important factors to identify since it can threaten the market share of the existing competitors. In this case, OKB must have their own strategy, vision and mission in order to compete with new entrant by improving their products image, packaging and make some innovation in order to create competitive advantage. Next is threat of substitute products. In this case, OKB have another competitor that admit and sell same products for consumer such as Guardian.Therefore, OKB must make a study and research how to faced this problems and attract their customer. Bargaining power of supplier is a situation when the supplier use to expert power over firms competing within industry. OKB major supplier is Akar Enterprise. In order to have enough resources and fulfill the demand, OKB should buy the resources from other supplier so that they are not facing problem such as insufficient material and high price of resources charges by supplier.Next is bargaining power of the buyer. Buyer mostly more attract with product that offer a lower price and give them a higher social welfare and satisfied their interest. OKB should improve their product in taste and product image and give a reasonable price in order to attract customer. Last forces is intensity of rivalry among competitors. The competitors always alert and beware about their competitor. This is because any changes by another company made can affect their business. So they must take a action in order to ensure customer will loyalty to them.