Introduction

In this assignment, the company we choose is Padini Holdings Berhad. It is a homegrown

investment holding company in Malaysia and headquartered in Shah Alam. This company
sells various types of clothes, accessories covering different age groups such as women, men
and children through several subsidiaries. These subsidiaries include Vincci, Miki, Seed and
Padini Authentic. We will talk about management levels and managerial roles, organisational
chart of Padini, total quality management and SWOT analysis.  

Management Levels

The Top-level manager is the Chia Swee Yuen, a Chairman while the position of the
Managing Director, who is held by Yong Pang Chuan. Both of them are the Group's de facto
CEO. Our Group has eight directors they are Andrew Yong Tze, How Benjamin, Yong Tze
Jet, Chong Chin Lin, Chew Voon Chyn, Foo Kee Fatt, Lee Peng Khoon, and Sung Fong Fui.
Lastly, the middle-level manager is Group Secretaries, the position is held by Ho Mun Yee
and Tam Fong Ying.

Managerial Roles

The Chairman of this company includes three manager roles. First is the figurehead. The
Chairman is responsible for ensuring that the Board is notified in advance of this year's Board
and Committee meetings, including the Annual Shareholders' General Meeting (AGM) and
the closed-end group quarterly results announcement for directory-based securities
transactions. Secondly, it is the leader. He must motivate subordinates and willing to achieve
the goal for the company. Also, to provide the necessary leadership for the orderly and
effective operation of the Board. Promote a proper balance between executive and non-
executive directors and ensure that board members participate fully in board activities.
Thirdly, it is the liaison. He has to play a role acting as a liaison between the management
and Board, and between the Managing Director and Board.[ CITATION Pad20 \l 1033 ]

Besides, the Group Secretary in this company has three manager roles. First is Monitor.
They have the responsibility to monitor the daily operation of the company. They also
responsible for managing the logistical work of all board meetings, board committees, and
group subsidiary meetings, and ensuring those meeting procedures and passed resolutions are
accurately and appropriately recorded and kept in the statutory records of the group's
registered office. Secondly, Disseminator. They participate in training to keep up with the
evolving market environment, regulatory changes, and updates on corporate governance best
practices, this can make sure the company is up to date. They also email all directors in
advance of the meeting to ensure they have participated. They will also provide clear
recommendations on the measures and requirements to be followed by the Group and
directors resulting from the new regulations issued by the regulatory body to comply with
related laws, regulations and governance best practices, and the effectiveness of the board
and Duties and responsibilities of Directors. Lastly, Spokesperson. The group secretary is
responsible for transmitting information to outsiders through the annual report. Investors and
consumers can find yearly reports through Bursa Malaysia to understand the developability,
profitability, and transparency of our group. These can increase investor confidence in us.

Company Established

Padini Holdings Berhad is a Malaysian-domiciled investment-holding company

headquartered in Hicom-Glenmarie Industrial Park, Shah Alam. They started as the
production and wholesale of women's clothing since 1971 and supply products to
departmental stores in Malaysia. For the future of the fashion industry, they decided to build
their brand. As a result, brand Padini was created and officially entered the retail industry.
[ CITATION Pad19 \l 1033 ]

Padini have growth and is now become one of the protruding fashion company in Malaysia.
They have two multi-brands labels with their brands- Padini Concept Store with nine brands
(Padini, Seed, PDI, P&Co, Vincci, Miki, Padini Authentics, Vincci Accessories, Vincci Mini)
and Brands Outlet. Each of these labels represents a unique fashion concept and covers a
wide range of products that fit our target consumer group.[ CITATION Pad192 \l 1033 ]

In total, they have over 140 stores in Malaysia. After that, they also have multiple markets
around the world such as Cambodia, Thailand, Singapore, United Arab Emirates, Vietnam,
Indonesia, Philippines, Brunei and more. The Padini brand is now also available online via
the e-commerce site, Padini.com.[ CITATION Pad193 \l 1033 ]
 Organizational Chart

CHIA SWEE YUEN

(Chairman)

YONG PANG CHAUN

(Managing Director)

ANDREW BENJAMI CHEW

CHONG FOO KEE LEE PENG SUNG
YONG N YONG VOON
CHIN LIN FATT KHOON FONG FUI
TZE HOW TZE JET CHYN
(Director) (Director) (Director) (Director)
(Director) (Director) (Director)

HO MUN YEE TAM FONG YING

(Company (Company
Secretary) Secretary)

Scalar Chain

Henri Fayol defines the scalar chain as the line of authority from top management to the
lowest ranks. Every request, order, message, instruction or explanation must pass through the
scalar chain. [ CITATION PSand1 \l 1033 ]Here, takes the organization chart of Padini as an
example. When chairman Chia Swee Yuen communicates with secretary Ho Mun Yee, he
still needs to follow the scalar chain, where the information flow will take place from the
chairman, managing director, directors to the secretary. The process is not complicated, but it
does take time, as a three-step structure is required to get information to the secretary. It is
very important for the organization to have a chain of command. That can make employees
know who to approach when they encounter a problem. It also allows top management to
pass out their message to the entire organization and supervisors at each level become
responsible to implement that order.[ CITATION Thend \l 1033 ]

Total Quality Management

Total quality management focuses on a pervasive activity or programme in many
organizations[CITATION Peg94 \l 17417 ]. It is the continual process of detecting and
reducing or eliminating errors in manufacturing, streamlining supply chain management,
improving the customer experience, and ensuring that employees are up to speed with
training. [ CITATION Ada20 \l 1033 ]
The main product we focus on is women attire. There are different types of attire such as
jeans and denim, and t-shirts can be found in the Padini store. The current deficiencies in
Padini Holdings Berhad are about the choices of size. As we can see the choices of the size of
Padini only provide XS to XL (Figure 1.0). This brings inconvenience to those who need
larger sizes than XL, they should provide more choices on size like double extra-large or
triple extra-large. This will cause Padini to lose their business when the consumer is unable to
find a suitable size. Besides that, the season collection of Padini should make some changes
in their design. This is due to the reason that some clothes are only suitable to be worn at one
festival. For example, the design of the Chinese New Year collection is too specific such as
Chinese Zodiac characters (Figure 2.0) but it will be changed every year. So, this will reduce
the desire of customers and lead to the profit decrease.
Padini Holdings Berhad should manage the quality of its product in the future with the
methods of having good communication with manufacturers and make sure the quality of the
product is in good condition. When the company discovers the defective product, they should
immediately return it to the manufacturers to ensure all the product is under good quality
control. Besides, the company can also give opportunities to customers to provide their
valuable advice and suggestions. For instance, the company should give the feedback form to
every customer after purchase. Therefore, the company will more understand what the
customer wants and have the chance to make it in a good quality status in future.   

SWOT Analysis

SWOT stands for Strengths, Weaknesses, Opportunities and Threats, so SWOT

Analysis is a technique to evaluate these four aspects of the business. The formulating
strategy often begins with an audit of internal and external factors. External information is
about opportunities is obtained from customers, government reports, professional journals,
suppliers, banker, friend, and consultants. For the internal information is come from reports,
budgets, financial ratios, surveys of employee attitudes, and meetings. Strengths are the
positive internal characteristics organizations. It can exploit to achieve strategic performance
goals. Another internal characteristic is weaknesses. It may inhibit or restrict the
organization’s performance. Opportunities are characteristics from the external environment
that have the potential to help the organization achieve or exceed its strategic goals. The other
external environment is threats. It may prevent the organization from achieving its strategic
goals. Padini Holding Berhad also have their own SWOT analysis.

In SWOT for the S is stand for strength. The strengths of the Padini Holding are leading
brand in Malaysia, many retail outlet, market leadership, and product for all age. Leading
brand in Malaysia with providing wide range in style and low pricing of the brands that
PADINI carry. For examples, PADINI carries SEED, Vincci, Mikihouse and etc. The
products are not only stylish, but also neutral, suitable for all types of consumers. For many
retail outlets, Padini also has 83 foreign stores and 10 department store counters. Padini's
foreign stores operate using a franchise business model, which reduces the group's risk
because the cost of opening the store and operating expenses are borne by the franchisee.
Padini Holding Berhad has 330 retail stores in Malaysia and worldwide. Market leadership is
PADINI the well-known brand established since 1971 in Malaysia. It strategically located
factories and warehouses ensure wide market coverage in Malaysia.

In SWOT for the W is stand for weakness. In Padini Holding (Padini) the weakness is
unstable profit, public perception and no online shopping. Unstable profit is in retailer
business, Padini profit is unstable. The consumers are depending on the season. Such as in
Malaysia, the profit will be at the highest peak when there is festive season. For example:
Chinese New Year a lot of family will go for buying new clothes for their children and
themselves. In the retail business, public perception of fabrics is of low quality. Where after
the season, the company will gain less profit, since the customer are no needed to purchase a
new shirt unless necessaries.

In SWOT for the O is stand for opportunities. In Padini Holding Bhd the opportunities are
expanding their business, prioritize local companies, open more branches and generate more
profit. Padini Holding Bhd expands their business all over Malaysia. Padini Holdings Bhd, a
well-known fashion clothing and footwear retailer, is optimistic about the company's
medium-term outlook. Which aims to capture added value rather than providing it to
middlemen such as suppliers and retailers. Other than that, since the increase of the online
store, Padini also owned their online store (Padini.com). Under the website, Padini provide
some of the clothing and apparel to be deliver to customer. According to the Nielsen (2018)
shows that generation Z are more likely to purchase fashion through online, where this show
that there is an opportunity for the company where Padini can provide more variety of
fashion through online store, since there is a demand for Generation Z. Padini also need to
provide more choices for generation Z(Figure 3.0).
At the end, in SWOT for the T is stand for threats. In Padini Holding the threats are new to
market, increase competition and no celebrity endorsement. These improvements will also
pose a threat to Padini Holding Berhad. This will increase competition as they open more
branches and expand their business. Competition also occurs where many other brands
operate in the same location as Padini. Other brands compete not only on market share and
footprint. Even Padini has no celebrity endorsements. Padini remains Malaysia's leading
brand. Therefore, this means that the Padini brand itself is powerful enough to cover various
treatments in the business. To increase brand awareness, Padini should consider providing
celebrity endorsements.

I think the company can gain more market share based on the results of SWOT analysis,
because Padini Holding (Padini) makes full use of their management such as management
and organization, marketing, human resources, finance, production, research and
development to run their company.

Conclusion

In conclusion, we learnt how Padini Holding Berhad using management level and managerial
roles, organisational chart, total quality management and SWOT analysis to operate a
company and be the market leader in the retail industry. Furthermore, the company learnt to
achieve his goal and expand its business on a regional basis through the above concept.
Moreover, we have learnt about teamwork through this assignment. We search the
information together and discuss when we have faced some problem.
References

Nielsen, 2018, ‘Most popular items purchase online by Generation Z (18 – 24 year olds) in
Malaysia as of 2018’, viewed on 29 March 2020, <
https://www.statista.com/statistics/1013974/gen-z-most-popular-items-purchased-online-
malaysia/>.

Padini, 2020, ‘Padini’, viewed on 29 March 2020, < https://www.padini.com/>.

Pegels, C.C., 1994. Total quality management defined in terms of reported

practice. International journal of quality & reliability management.
Adam Barone, 2020. What is Total Quality Management (TQM)? Investopedia.
Appendices
Figure 1.0 Size of jeans and denim

Figure 2.0 Chinese New Year Collection

Figure 3.0: Most popular items purchased online by Generation Z (18 to 24 years olds) in
Malaysia as of 2018.

Source: https://www.statista.com/statistics/1013974/gen-z-most-popular-items-purchased-
online-malaysia/

Figure 3.0: Most popular items purchased online by Generation Z (18 to 24 years olds) in
Malaysia as of 2018.

Source: https://www.statista.com/statistics/1013974/gen-z-most-popular-items-purchased-
online-malaysia/