Introduction Johor Bahru to cater for growing demands. (Power

Introduction

Power
Root Berhad was founded by Chee Yen Low, Say Swee How and Fuei Boon Wong in 23
July 1999 in Johor Bahru. The business address of Power Root Berhad is at No.1,
Jalan Sri Plentong, Taman Perindustrian Sri Plentong, 81750, Masai, Johor.  Power Root Berhad is a company listed on the
Main Market of Bursa Malaysia Securities Berhad. (Power Root) Furthermore,
Power Root Berhad is an investment holding company that distributes and
manufactures the beverage product, Fast-Moving Consumers Goods, property
development and construction business. (Bloomberg)

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The Company’s Instant products include, Tarik, Alitea,
Alicafe Premium Gold, Oligo and Per’l Cafe Premium Gold and tin range includes Extra
Power Root, Alicafe and 9Spot. (Reuters)The
Company’s subsidiaries include Power Root (M) Sdn. Bhd., Power Root
Manufacturing Sdn. Bhd., Power Root Marketing Sdn. Bhd., PT. Natbio Marketing
Indonesia, Power Root (Shanghai) Food Trading Co. Ltd. (Reuters), Synergy
Distribution FZC, Power Root ME FZCO (Reuters), Power Root Nnergy
Sdn. Bhd. (Reuters), Power Root Supports
Services Sdn. Bhd (Reuters). and Power Root
Distributor Sdn. Bhd. (Reuters)

Power Root Berhad exports its goods primarily to the Middle East. Power
Root Berhad also known as Natural Bio Resources Berhad. (Bloomberg) Power Root Berhad
started up a marketing branch in Kuala Lumpur to better coordinate its logistic
and effectively provide services to its customers since March 2001. (Power Root) In 2003, Power Root Berhad
established its own manufacturing plant in Johor Bahru to cater for growing
demands. (Power Root)
An 18-acre phase 1 manufacturing facility is expected to be completed early
2008, incorporating modern production technology advance to ingratiate for the
strong demand locally, business development opportunities abroad and new formulation
development. (Power Root)

The mission and vision of Power Root Berhad are
they believes in long-term development and operates with
the objective to surpass customers’ expectations by producing high quality
products that will improve the quality of its customers’ lifestyle and Power
Root Berhad plans to expand its product in the international markets
continuously and to make its all the brands under its company a household name
globally. (Power Root Official)

Common forms of business

Power
root is a corporation. A corporation is a legal
entity that is separate with the owners. Corporations have most of the rights
and responsibilities that an individual own, a corporation can sign contracts,
loan money, sue and be sued, hire employees, own assets and also pay the tax.
The most important point of a corporation is limited
liability. It
means that stockholders have right to
participate in profits, dividends and stock, but they
are not held personally liable for the company’s liabilities.

A corporation is formed when there is a group of stockholders
who are the ownership of the corporation, represented by their holding of stock to achieve the same goal or
objective. A corporation’s objectives it to earn profit. However, majority of
corporations are making sure that they can provide a return for its
shareholders. Shareholders, they own a percentage of the corporation, but they
are only responsible for the company’s treasury upon issuance payment.

Corporation
have limited liability and a big size of company with a perpetual life.
Moreover, the big amount of stockholder gets them the ability to raise more
money for investment. Corporation also has the ease of attracting talented
employees and ownership change. There are also disadvantages for corporation
which is the extensive paperwork, double taxation, two tax returns, difficulty
of termination and possible conflict with stockholders and board of directors.

Power root is a limited
liability company (LLC). It is a corporate structure whereby the people of the
corporation cannot be held personally liable for the company’s
liabilities. Limited
liability companies
are hybrid entities that combine a corporation and a partnership
or sole
proprietorship characteristics which owners are taxed as partners but enjoy
the benefits of limited liability. While the limited liability feature is
almost the same of a corporation, the availability of flow-through taxation to the members of an
LLC is a feature of partnerships. (investopedia,
2017)

 

Ethics
and Social Responsibility

To
set up a public listed company the company need to behave with a proper ethic
and social responsibilities. Therefore, the Power Root’s group had play the
role to providing a clear function and social responsibility, the clear
function and responsibility is a guided line to help the company move towards
its mission and this will lead the company to success. To set up a successful
company the position of manager and director need to play an importance role,
they practice the rules of ethical decision making and business ethic s.

The
Power Root group had make sure that the manager behaves ethically, as the
annual report 2017 mention that the all of the manager and director didn’t have
any family relationship with any director or major shareholder of the company
this will prevent any conflict of interest among the group. So as the evidence
given we can know that the company had society ethic which the member of
society should deal with one another in matters involving issues such as
fairness, justice, poverty, and the right of the individuals. Next, the company
director and manager didn’t have other directorship in public company and
listed issuers. This mean that the company has using organisation ethics to
guiding practices and beliefs which the company had play a serious role and
responsibility toward their stakeholder. 
Therefore, they had been convicted of any offences within the past 5
years other than traffic offences. Manager and the director have a strong
individual ethics this to ensure that they are responsible to other people or
groups, so they didn’t perform any illegal thing. Based on those evidences we
can know that the company have strict rules to make sure that the manager and
director behave ethically, and this will build trust and reputation toward the
public. In the year of 2017 the group had earn RM47, 417,213 therefore it can
said that the manager in the company had using the utilitarian rule to make
sure it produces the greatest good for the greatest number.

The
social responsibility of the company also plays an importance role because it
is a way for a company views its duty or obligation to make decision that
protect, enhance, and promote the welfare and well-being of stakeholders and
society as a whole. Throughout the years the company had use corporate social
responsibility(CSR) based on the company corporate philosophy .(Power Root
2017) They had continued with the partner SRJK Puay Chai 2 in their activities
for 9th years and monetary donate to support the school activity by
the year. Their company promoting the provision of “Ah Huat” virtues in the
spirit of promoting the eight virtues which included be polite, be righteous,
be truthful, be mindful, be filial, be caring, be loyal and be credible. (Power
Root 2017) so they had using the virtues program to donate and visiting some of
the old folks homes and children homes. The company also help the flood that
occurs at Kelantan on January 2017. They help those villagers that stay at
Rantau Panjang and Kuala Krai to clean up their home and provide some
refreshment in the form of energy drink for the victims and people that volunteer
to help them to clean up their accommodation. In additional they also make many
feeding programmes they had participate the Ramadhan on the month in July 2015
and the Deepavali festival on November 2015. They had visited Tanjung Malim,
Hulu Selangor and other places. .(Power Root 2016)

 

 

Managers
and managing

1. Branding

POWER ROOT has three main
coffee brands. Alicafe, Ah Huat, and Pearl. (annual report , 2016)

2. Downstream Marketing

POWER ROOT sources coffee
powder from Brazil and non-dairy creamer from Indonesia. (annual report
, 2016)

3. Malaysia Market

This company is the
number-two 3 in 1 instant coffee brand in Malaysia after Nescafe. Most popular
brand is Tongkat Ali (traditional herb that serves as an aphrodisiac). (annual report
, 2016)

4. Research &
Development

Setting up its own
R centre with the best facilities as well as training and sourcing of its
human resources. (annual report , 2016)

5. Management Concept

POWER ROOT BERHAD
(formerly known as Natural Bio Resources, Berhad), an Employee Share Option
Scheme was developed with the view of rewarding, motivation and incentivizing
its employees as well as allowing them participate in the quality of the
company. (annual report , 2016)

6. Marketing Network

On the export front,
POWER ROOT has tie-ups with foreign distributors in the countries where its
products are marketed. (annual report , 2016)

 

 

 

Implementation Control

1. Developing marketing
strategies and plan

2. Capturing marketing
insights

3. Connecting strong
brands

4. Building strong brands

5. Shaping the market
offerings

6. Delivering value

7. Communicating value

8. Creating successful
long-term growth

 

 

 

The
Manager as a planner and strategist

POWER ROOT’s SWOT
Analysis

1. Strength

– Professional persons
and represents a diverse background knowledge and experience

– Combination of skills
in employees

– Loyal customer base

– Strong financial
position and has nearly 25,000 employees

– High responsiveness to
customer

– Timely and quality
disclosure

– Comprehensive
production technology

2. Weakness

– Lack of Online Presence

– Rely heavily on
advertising

–  Focus is way too high in beverage business

3. Opportunities

– Internet technology

– Company policies and
procedures

– High demand for product
or similar merchandise

– Periodic and annual
budget

4. Threats

– Rising cost

– Risk management

– Competitor marketing

 

Improvement suggestions
for marketing strategy

1.  Product

·        
Power Sdn Bhd can improve
by using healthy fruits in their drinks.

–         
Berries

–         
Oranges

–         
Grapes

–         
Their drinks will be more
flavours and healthier.

·        
Create drinks for senior citizens
from herbs and healthier.

–         
make their bones more
strong

–         
avoid from diabetes, high
blood pressure and many more.

·        
Power Root can extend
their product from healthy drinks to dietary product from herbs. (annual report
, 2016)

–         
give energy to people and
to make people healthier inside and outside.

·        
Make new packaging for
“Tongkat Ali” and “Kacip Fatimah” to look fresh in the market. (annual report
, 2016)

 

2. Promotion

·        
Power Root should use the
new, fresh, and popular artist or celebrity for their product spokesman such as
Aaron Aziz, Zul Ariffin or Siti Nurhaliza. (annual report , 2016)

·        
Make their own website or
media social accounts such as Instagram and Facebook to promote their product. (annual report
, 2016)

·        
Create a card that can
gives customers point when they buy one of the Power Root product. (annual report
, 2016)

–         
can exchange to the prize
when they achieve the point required.

 

 

 

3. Place

·        
Expand their products to
develop country such as USA, Japan and China to make Power Root brand become
stronger. (annual report , 2016)

·        
Sell Power Root product
at small booth in big events such as Astro Gempak and many more. (annual report
, 2016)

·        
Add headquarter of Power
Root at east and north to make the company organization more efficient and
systematic. (annual report , 2016)

 

4. Price

·        
Power Root can lower the
price for “Oligo” since it is for children and students. (annual report
, 2016)

·        
Can give a sale discount
to the customer when it’s the end of the year and special celebrations such as
Father’s day and Mother’s day. (annual report , 2016)

 

 

Organisation
structure

Dato’ Afifuddin bin Abdul Kadir is
the Independent Non-Executive Chairman of Power Root Berhad. (Root, 2017)
He is likewise the individual from the Audit Committee and the Chairman of the
Nominating Committee and Remuneration Committee. (Root, 2017) He joined the
Malaysian Industrial Development Authority (MIDA) as a Technical Professional
Officer in the Industrial Studies Division. (Root, 2017) Dato’ Afifuddin
works freely from the organization, gets plans and proposals from the CEO,
through the corporate secretary and presents to the board for endorsement.

Dato’ Low Chee Yen was selected as
Managing Director of Power Root Berhad and he is also an individual from the
Remuneration Committee and the Chairman of the Option Committee. (Root, 2017) He is one of the
establishing individuals and has 17 years of involvement in the food and
beverage industry. He began his career in direct marketing before venturing
into his own business producing drink concentrates. (Root, 2017) With his vision and
conviction on the capability of functional instant drinks, he set up Power Root
(M) Sdn Bhd and Power Root Marketing Sdn Bhd, completely claimed  backups of Power Root Berhad with the other
establishing Directors. (Root, 2017)

Dato’ Wong Fuei Boon is the Executive
Director of Power Root Berhad. He is also one of the establishing individuals. (Root, 2017) He has 29 years of
working experience n the offers of buyer products, out of which 17 years were
in the beverage industry. (Root, 2017)
He has a specified decision-making role as director of promoting, operations,
finance etc.

Dato’ How Say Swee and Dato’ See
Thuan Po are the Executive Director and one of the establishing individuals. (Root, 2017) Dato’ How has been
involved in the beverages retailing business for 25 years and Dato’ See has 10
years of experience in the food and beverage industry. (Root, 2017)

Ong Kheng Swee and Azahar bin
Baharudin are the Independent Non-Executive Director. (Root, 2017)
Mr Ong is also the Chairman of the Audit Committee, member of the Nominating
Committee, Remuneration Committee and Option Committee. (Root, 2017)
While Azahar is also the member of the Audit Committee and Nominating
Committee. (Root, 2017)

Dato’ Tea Choo Keng is the Alternate
Director of Dato’ Afifuddin bin Abdul Kadir. Besides, Rokiah binti Abdul Latiff
and Noriah binti Md Yusof are the Company Secretaries. (Root, 2017)

Conclusion

 

This report introduced the Public Listed
Company, Power Root Berhad. We presented the information about the background
of Power Root Berhad, common form of business, ethics and social
responsibility, managers and managing, the Manager as a planner and strategist
and organisation structure.

Power Root Berhad is a corporation that legal
entity is separate with the owners and liability is limited. The stockholders have right to participate in
profits, dividends and stock, but they are not liable for the company’s
liabilities. Corporation have limited liability and a big size of company with
a perpetual life. Furthermore, corporation enable to attracts talented employees and ownership change
and able to raise more money for investment due to the huge number of
stockholders. However, a coin has two sides. The disadvantages for corporation
are extensive paperwork, double taxation, two tax returns, difficulty of
termination and possible conflict with stockholders and board of directors. Power
Root Berhad is a limited liability company (LLC)
and the people of the corporation cannot be held personally liable for the
company’s liabilities.

For the
ethics responsibility, the Power Root group had make sure that the employees
behave ethically. To prevent any conflict among the organisation, the
organisation ensures that all the manager and director didn’t have any family
relationship with any director or major shareholder of the company and the
company director and manager didn’t have other directorship in public company
and listed issuers. For the social responsibility, the organisation had done a
lot of charitable deed such as they had using the virtues program to donate and
visiting some of the old folk’s homes and children homes, helps victim in flood
that occurs in Kelantan and participated in feeding programmed at Ramadhan on
the month in July 2015 and the Deepavali festival on November 2015.