1.

0 COMPANY OVERVIEW

Pacific Milk Industries (Malaya) Sdn Bhd was established on May 28, 1963, and was authorized
to create sweetened condensed milk inside its facilities in Petaling Jaya, marking FrieslandFoods' first
manufacturing site outside of the Netherlands. It was founded as a local joint-stock limited firm and
initially produced just condensed milk until growing into dairy goods. Prior to the growth, many of its
products were distributed to neighbouring Asian and Oceanian countries.

On September 24, 1968, the firm has become the first milk company to launch on the Kuala
Lumpur and Singapore Stock Markets, and by 1975, it had renamed to Dutch Baby Milk Industries
(Malaya) Berhad. Following the company's modernization, it later renamed to Dutch Lady Milk
Industries Berhad in 2000, and it has been producing milk in the nation utilising ultra-high-temperature
processing (UHT) and packaging technology since the 1970s.

The firm proceeded to develop and bring additional goods into the Malaysian market gradually -
sterilised milk was made locally and marketed in plastic water bottles in 1983, chilled dairy products were
created in 1986, and fruit yoghurt and childhood milk were put into the market in 1988. Dutch Lady
Malaysia was estimated to be the clear market leader in the ’s developmental milk category in 2011, with
the Dutch Lady brand accounting for 40% of the nationwide market dominance.

The Dutch Lady label offers a variety of dairy products ideal for both youth and adolescents, as well as
the entire family. For youngsters, there are several dairy product brands such as Dutch Lady 123, Dutch
Lady 456, Dutch Lady 6+, Dutch Lady ActivGold Step 3 & 4, and Friso Gold 3 & 4. Dutch Lady 123 and
456 are now fortified with 5 x DHA, which is shown to assist in developing brain, in addition to TT-Ratio
Advance, which aids in increasing children's attention span for a superior learning exercise. This variety,
like Dutch Lady 6+ Growing Up Milk, comes in the classic vanilla, honey, and chocolate tastes that kids
love. Meanwhile, Dutch Lady Milk Malaysia created a specific product within the wider family. DL
Chocolate Drink EzyMix, DL Yogurt, Dutch Lady Milk Powder, Dutch Lady UHT Milk, and Dutch Lady
Sterilised Milk are a few examples. The Dutch Lady's ongoing attempts to provide a wider range of
delightful dairy-based delicacies for the entire family.
2.0 DUTCH LADY SWOT

2.1 STRENGHT

Regardless of its branded product, Dutch Lady is recognised and acknowledged for satisfying
world - class standards through MS ISO/IEC accreditation. Moreover, Dutch Lady Milk's Quality Control
Laboratory (QC Lab) has been recognised by Skim Akreditasi Makmal Malaysia (SAMM) for achieving
the standards of managerial, technical, and operational conformity with International Quality
Management MS ISO 9001. This accreditation ensures that Dutch Lady's goods are safe and nutritious for
customers. Food safety is always a priority for this organisation, which is certified with the Hazard
Analysis Critical Control Point System (HACCP) and Halal Standards. Furthermore, Dutch Lady invested
RM 20 million in increasing food safety and capacity, among other things. These qualifications improve
customer trust in Dutch Lady by increasing consumer faith in their goods.

2.2 OPPORTUNITIES

Unlike Nestle, it appears that Dutch Lady has less domestic mainstays in Malaysia.
Diversification is viewed as a key component in boosting sales during the recent slump. Dutch Lady
goods are nearly entirely comprised of milk. Nestle's diverse product portfolio makes it a generally steady
consumer brand. Dutch Lady often plans product line growth in order to capture a share of the market or
equivalent. Diversification appears to be the essential phrase distinguishing Dutch Lady from Nestle,
which is constantly one step ahead. To be more particular and practical, Dutch Lady may begin with
milk-related items like chocolates, coffees, cheese, butter, and so on.

2.3 WEAKNESS

Annually, a relatively small number of awareness initiatives and initiatives are put out. F&N's sales
increase is greater than Dutch Lady's overall sales. To apply the same approach to F&N's sales growth as
it is to revenue and profit, the real sale increase of F&N in the dairy area is 2.11 percent, which is still
somewhat greater than Dutch Lady's sales growth. This means that F&N has significant demand for its
dairy products in the Malaysian market, which might effect Dutch Lady sales now and in the coming.
Another cause might be Dutch Lady's infrequent advertising actions in comparison to F&N's advertising
activity.

2.4 THREATS

The government uses a trade policy in which it imports dairy goods with insufficient output, such as
milk, whey, milk fats, and cheese, from nations such as the United States, France, New Zealand, and
Australia. Such a trade strategy might jeopardise Dutch Lady's supply to the Malaysian dairy sector, as
importation from industrialized nations, as previously noted, could offer a variety of high-quality dairy
products at cheap rates in the Malaysian market. As a result, targeted clients of dairy firms such as Dutch
Lady are concentrated in cities, yet competition is fiercer in cities. Increased veganism will have a
detrimental impact on dairy product sales since vegans avoid "all animal foods, especially milk and eggs,
in their culture, especially their diet." Furthermore, as more people adopt a vegan diet, "sales of dairy
foods will fall, significantly harming the dairy business."
3.0 ORGANIZATIONAL BEHAVIOR ACTIVITIES IN DUTCH LADY

Organisational behaviour is an academic study of how people communicate inside groups. In order to
boost business efficiency, organisational behaviour principles are commonly applied. Organizational
behaviour study includes topics devoted to improving job performance, promoting job satisfaction,
stimulating innovation, and assisting leadership. Reorganizing groups, modifying remuneration plans, and
changing performance evaluation methods are among the proposals made by each.

3.1 GROUP AND TEAMS

A group is a collection of persons who synchronize their activities, but a team is a gathering of
persons who have the same aim. Understanding the differences between the two is critical for supporting
healthy working dynamics. The two are extremely different when it comes to teamwork and decision-
making.

Dutch Lady Milk Industries Berhad have teams in order to successfully operate the organization.
These are sales, finance, program, corporate affairs, human resource, marketing and customer supply
chain associate teams. Sales management helps the business success. A strong sales team begins with
hiring the right sales person. Sales director in Dutch Lady is Wilson Chua. A finance team helps owner to
manage the money in an organization. The director of finance team is Arent Naber. The program team
purpose is to carrying out the work detailed in the project or program plan. Program team lead by Sander
Janmaat. Corporate affairs is responsible for assisting in the management and handling of all aspects of
corporate affairs. Corporate affairs’ director in Dutch Lady is Muhammad Abdul Hadi Abdullah.

Human resources management is a strategic tactic to handling people in an organisation to

support the company gain a competitive benefit. The person who in charge in human resource
management is Anjali Menon. The marketing department plays a crucial role in promoting a company's
business and mission. It serves as the public face of the company, coordinating and producing all
marketing materials. For marketing department, the person in charge is Zatur Hassim. Supply chain
management is aided by a supply chain associate specialist. Tan Poh Lian is director of customer supply
chain associate.

When a company redesigns work around teams, it's inevitable that they'll run against folks. If the
company is serious about respecting its people, it will provide training and incentives to support the new
environment, and ultimately, it will work with employees. Many of the issues that affect groups can also
have an impact on a team's effectiveness. Issues like social loafing and groupthink can be avoided by
paying special attention to team member differences and providing clear definitions for responsibilities,
measurement, expectations, and rewards. Because many vocations have gotten so difficult in today's
world, groups and teams have become critical components of an organization's success. Effective member
management and ensuring that all areas of work are fair to all members are critical to the team's or
performance group's efficacy.

4.0 ORGANISATIONAL POLITIC, POWER AND CONFLICT

Political impacts on company are primarily rooted in the rules that regulate the industry. Learn
about these effects and how economic stability, taxation, and socialist systems impact them in this
summary. Power is a person's or group's ability to impact some other person or party. It is the capacity to
complete tasks in the manner desired. Power may be held by both overt and covert groups and people;
power does not require a formal stance or the endorsement of an institution. A conflict of interest occurs
in industry whenever a person prioritises personal advantage over obligations to their company or an
organisation in which they have a stake, or when they use their status for personal benefit in some way.
Conflicts of interest frequently have legal consequences.

Lady Berhad of the Netherlands It is a government-planned corporation, which means that the
organisation must follow and adhere by the government's laws regarding the amount and quantity of items
produced. The government has a tax policy on this goods in order to maintain political stability. In the
interim, this firm is listed on the Bursa Malaysia as a publicly listed company. The Dutch Lady firm has
several openings. Furthermore, the organization's political stability is stable.

The Dutch Lady demonstrates the government's solid support by allocating RM420 million to the
Education Ministry to strengthen the quality complementary meal plan for schoolchildren from poor
families, ensuring they have a better health and more nutritious diet, along with a supply of milk daily for
schoolkids, compared to only twice a week previous times. Furthermore, the Dutch woman was happy
that Kemas had funded RM170 million ringgit for early childhood education programmes, including
Supplementary Food Assistance for pre-school children. We are great proponents of the advantages of
milk for pre-school and schoolchildren in tackling stunting, obesity, and malnourishment, and we are
really glad that parts of their budget wish lists were listened by the government. According to the
National Health and Morbidity Survey, these are the two difficulties that Malaysian children are now
facing.

The company's concern or issue is the increase in the pricing of dairy raw materials. Dairy raw
material costs increased considerably in 2010, and product prices are anticipated to rise further. If the
price of Dutch Lady Milk continues to rise, consumers have the option of purchasing another brand of
dairy product with a similar or lower price than Dutch Lady Milk. A plethora of options for customers
will undoubtedly have an impact on the Dutch Lady market. It was a significant issue for the dairy sector.
A lot of adjustments have to be made in order to sustain dairy product sales as well as profit. Dutch Lady
Milk Industries Berhad was forced to raise its prices in order to compensate the greater production costs
compared to prior years. Meanwhile, Dutch Lady needed to conduct thorough research in order to boost
the cost in a proper and effective manner. It was a critical step in ensuring that Dutch Lady's products
could compete with those of other firms and became the consumers' first choice.

The first incident happened on February 13, 2018, when a client reported that her infant began
vomiting, turned unwell, and had diarrhoea and rashes upon consuming from a Dutch Lady Curious milk
powder for children aged one to two (900g) bag. Concerning the situation, Dutch Lady acted quickly,
obtaining a specific product from the client and sending it to their corporate lab and a recognised
independent laboratory for analysis. Not only that, but the Health Ministry is also interested in this case.
As a consequence, there are no quality discrepancies in the product, and the pasteurized milk was
declared safe for consumption. Further explanation was provided by General Secretary Dr.Noor Hisham
Abdullah, who stated that the ministry's checking at the processing facility via the Food Control Division
discovered it had a food safety certification scheme concentrating on preventing contamination and
reducing overall plate (bacteria) numbers in local milk.

5.0 ORGANISATIONAL STRUCTURE

Organizational culture is the standard of values, guidelines, norms, and practices that influence
and guide the actions of the organization as whole and individual employees. It is the collection of traits
that shape the culture of an organization. A great culture results in positive traits that create well
performance among employees, while a dysfunctional company culture brings out behaviours that
obstruct the organization.
Dutch Lady Milk Industries Berhad is guided to run their business in the ethical path and to be
responsible in every aspect of their commitments and operations. The cultures of Dutch Lady Milk
Industries Berhad are trust, respect and integrity. In addition, the most important is that they abide by the
terms and policies established to form the ethical business foundation of the organization. They are
guided by FrieslandCampina’s Compass at Dutch Lady Milk Industries Berhad. This compass focus on
three pillars, to provide better nutrition for the consumers, provide a well living for farmers, now and for
the future generations. The Compass of Dutch Lady and its respective policies deliver the basic ethical
principles that lead their organization and their employees in business activities. These also include the
stakeholders like investors, regulators, customers and suppliers. Employees are contractually bound to
follow the COMPASS code for ethical business operations to boost organizational performance.

Besides, by referring to Dutch Lady Milk Industries Berhad official website, one of their main cultures is
doing honest business. They matter “honest business” and do not tolerate any acts that go against their
policies. Any dishonesty in conduction business, including any form of corruption and bribery, are strictly
prohibited in order to boost the organizational performance.

Next, Dutch Lady also fostering a culture of speak up. They wanting to conduct business responsibly,
honestly and creating a safe environment for employees into report any unethical behaviours in the
company. Employees are encouraged to report any malpractices without fear or bias in the organization.
Their “Speak-Up Procedure” allow employees to report any concerns and issues regarding the non-
compliance with Compass.
REFERENCE

What Is Organizational Behavior (OB)? (2022). Investopedia.

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Asana. (2022). Asana. Asana. https://asana.com/resources/group-vs-team

Dutch Lady - Leading milk brand in Malaysia. (2021, November 16). Dutch Lady Malaysia.

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Management Team - Dutch Lady Milk Industries Berhad. (2022, May 9). Dutch Lady Malaysia.

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https://www.dutchlady.com.my/wp-content/uploads/2021/04/Annual-Report-2020.pdf

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Compass out code of conduct. Dutch Lady Milk Industries Berhad.

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