SUBJECT: Principles of Management

TOPIC: ADABI Sdn Bhd

GROUP MEMBERS: Ahmad Adil bin Adlan (62214222210)

Muhammad Afiq Kasim (62214222292)

Muhammad Imran Bin Abd Halim (62214222199)

Amirul Hakim Bin Nuhairi (62214222344)

GROUP: MR89A
INTRODUCTION

Adabi began its journey into Malaysian homes in 1984, with

the creation of various curry products in a small factory
located in Batu Caves Light Industrial Area. Two years later,
1986 saw the sudden rise in market growth which prompted
our transfer to a larger factory in Taman Kepong Light
Industrial Area. There, we expanded our business further. The
company then added two more plants at Taman Ehsan Light
Industrial Area in the year 1990 and 1992 respectively. Due
to increasing consumer demand, in 1996 Adabi made the
move to its current location in Rawang Integrated Industrial Park. Its four-acre land is home to
the company’s production sites, warehouses, corporate office as well as administrative facilities.

Adabi has become a household brand in every Malaysian home. Within three decades, the
company has successfully expanded its business by captivating the hearts (and taste buds) of
Malaysians with its beloved products. Despite being an established brand, Adabi is adamant in
securing further growth of its market share through latest technological advancements as well
research and development (R&D) in high-quality food products, for the sole benefit of its
consumers. Not content with the local market, we have also gained various recognition globally
as well. Most recently, in addition to food manufacturing,

Adabi has diversified its portfolio to include the snack brand Flamitoz as well as the pet food
brand Powercat.

COMPANY BACKGROUND

Adabi Consumer Industries Sdn. Bhd. is a Malaysian food manufacturing company. Established
in1984 by Dato’ Syed Manshor Syed Mahmood, the company specializing in manufacturing
food products including sauces and spices. Its headquarters is located at Rawang, Selangor,
Malaysia. Dato’ Syed Manshor Syed Mahmood is a Founder and owner of Adabi Consumer
Industries Sdn Bhd. Set up the company and managed it since its incorporation in March 1984.
Also, one of the pioneer founders of the Kumpulan Adabi - active during the '70s in Private
Education. Serves as Chairman of all the subsidiary companies in the Group. Oversees the
management of the company. The first batch of Adabi products was created in 1984 from a small
factory in Batu Caves Light Industrial Area in Kuala Lumpur. From the Batu Caves, Adabi
transferred to a bigger factory in Taman4

Kepong Light Industrial Area in 1986. This is due to the sudden rise in market growth, which
prompted Adabi to expand. The company had two more plants at Taman Ehsan Light Industrial
Area in the year1990 and 1992.Due to the sudden rise in consumer demand, Adabi move to its
current location in Rawang Integrated Industrial Park. Its 4-acre land is home to the company’s
production sites, warehouses, corporate office as well as administrative facilities. The company
have been managed and run smooth, professionally and at the same time fully product-driven,
plus ACISB’s giving equal emphasis to Research and Development as well as Sales
Marketing.Adabi had a very strong creative team of research personnel-creating new innovative
food products. In which it does help the market growth positively in which the rapid growth of
the company from RM2 millions an annual sale from the first batch increased to RM200 millions
and become one of the famous international products in Malaysia. Adabi has become a
household brand in every Malaysian home.

OPERATIONAL INFORMATION

In the organization, place or distribution refers to where and how customers get access to the
products they buy. The product must be made by the producers available to the consumers at a
place where they can conveniently make purchase and find the products. Producers must make
sure that they product are available at some location or place. Adabi products is one of product
that easy to find. Their product is available almost at all location. For example, consumers can
purchase or find Adabi product at shop near their house. Adabi provide their product to the shop
that near residential area. They want consumers easy to find their product. Adabi makes
household especially housewife not to worry to find ingredients for cooks. This is because the
housewife can easily get the ingredients to cooks near to their house. If the product can easily be
found or available, consumer will increase their demand because the products that they need
must always be available.
By using advertising, Adabi use verbal communication, Internet, direct mail, and radio for
promoting their product. For example, in internet, they use social media site and also use their
own website to promote their product. Besides that, Adabi also use sales promotion, public
relation, direct marketing, and sales force to promote their product. In public relation, Adabi had
made a several community program such as program for orphans so that they can make people
awareness with the existence of

Adabi’s product. Thus, Adabi will make sure that the promotion they use must meet the
requirement of the particular country regulation in other to express publicly in the televisions and
to be viewed for the public and regular customers.

ANALYSIS

Target strategic market Adabi should consider into strategic position with the competitive
international brands such as Babas, Puteri, Nyonya, and others famous brands. Adabi should
identify the target audience for the global food production industry. Adabi need to has a strong
and creative pool of research personnel-creating new innovative food products.

Besides, Adabi can upgrade their website to advertise their products. It will be a good
communication tool that encourages the consumer to provide input, opinion and suggestions
about the products of the business. The most important key is the quality of the products. They
need to make sure all the products are in good quality to ensure the customers’ satisfaction.

As not all countries provide the same degree of access to raw materials and skilled labor in the
food industry, Adabi must consider the changes such as the product specifications, which are
focused on consumer preferences. Furthermore, Adabi needs to make sales and consumer
markets more conscious of these changes. This will help the organization handle its capital
without losing its key business strategies

STRENGTH WEAKNESS
  Adabi has an efficient management team  Rawr material unprotected
since the member of the team work  High competition
together  High employee turn over
 They are successful not because members  Challenge regarding taste and quality
of the team never disagree, but because
when they have a problem they find
solution toghether
 Adabi have strength of the product in the
terms of taste

COMPETITVE ADVANTAGE

PROMOTION STRATEGIES

Adabi strategies to inform, persuade, and remind its potential buyer is by using some of the
elements of promotion which is advertising, public relations and sales promotion.

1. Advertising

Adabi uses advertising as it can reach a large number of people to promote its product although
the total cost is high but this strategy is an effective way for Adabi to communicate its product
across the globe. Adabi advertise their product using both of the types in advertising media
which is the traditional advertising media and electronic advertising media.

● Traditional Advertising Media

In advertising their product under this type, Adabi is using the news, billboard, radio and
television. Adabi uses the media remarkably, especially the commercial video that was broadcast
on television channel TV3 and Prima channel, as Adabi advertised it using the addictive song
and strong visuals. It captures the heart of local people and if we watch it today it could bring
back good old memories or nostalgia. Undoubtedly, Adabi is well known for its Advertisement
on television. Besides, Adabi announced the newly launched product through news releases on
television and radio. For example, the newly launched korean sauce and oden paste. Apart from
that, Adabi will ensure that they advertise their product for each country using the languages
used by the country.

● Electronic Advertising Media

Under this type, Adabi has its own Facebook page, Youtube channel and Instagram account to
promote the product.

2. Public Relations

In order to succeed, Adabi must create and maintain a favourable public image. Where public
relations help a company to earn media exposure with lesser spending on money but bigger
impact. Also, public relations involve press releases, news or staging events which cost them
money. Thus, Adabi can also be seen frequently in using public relations. For example, when
Adabi sponsored halal food to Malaysian media outlets covering the SEA Games which were
held in Philippines and recently this 2021 Raya Aidilfitri where Adabi gives an apology
statement to the public due to “Ketupat Lembik” which went viral during Hari Raya. These two
examples could be seen in newspapers and other media platforms. The first example, we could
see that Adabi is grabbing the golden opportunities not only to sponsor but to tell the public
about the product where the SEA Games are watched by all around the world. The second
example is where Adabi is confronted with bad news, ensuring the public that they have taken
action to solve the problem and apologize to all their customers. Besides, Adabi announced the
new launched product.

3. Sales Promotion
Adabi also widely uses sales promotion to promote to end customers to purchase Adabi’s
products such as coupons, free samples, special offer, discount and contests. But Adabi mainly
uses contests such as cooking contests and luck draws contests. For Example, Stay At Home
Cooking Contest Covid-19 edition which was held on 29 Mac 2020 through the Adabi Facebook
page.

 How Adabi uses Youtube, Facebook and Instagram

Instagram and Facebook were used similarly by Adabi and more active particularly during the
pandemic, Adabi used it to upload the use of the product. For example, they show recipes that
can be cooked using the oyster sauce and many more. Also, some of the videos uploaded were
by the consumer itself where the consumer or the follower tags the Adabi official account.
Besides, Adabi also uses the platform to inform about the contests that were held that were only
available using Facebook and Instagram. Furthermore, Adabi uses Facebook and Instagram to
update the public that they are doing charity work. They will also provide information on the
creation of the Adabi product which is actually an eco-friendly product. Basically, they would
inform the goodness in the making of the product and the convenience using the product.

How Adabi uses Youtube is quite differ from Facebook and Instagram where they use the
platform to upload their commercial video that can be found on television too. In addition, they
will upload a commercial video for Hari Raya Aidilfitri and Raya Haji which people will expect
every year from Adabi as their quality of cinematic commercial video. The story from the
commercial video is relatable to the trend especially during this pandemic. Also, Adabi uses this
platform to share recipes but they will invite famous chefs, influencers, and artists to join in the
making of the video. For instance, Altimet was invited to share the recipe of making Kuew Teow
Kerang Adabi using the Adabi’s product. What's more, Adabi uses the platform to introduce new
products, sharing household tips such as tips on how to sharpen the knives, Adabi hacks. Lastly,
Adabi also has their own show on this platform called the Adabi Lovers.
4.Retailing

Types of stores

The major types of retail operations used for Adabi’s products are supermarkets. Supermarkets
are one of the main reasons that Adabi Consumer Industries Sdn. Bhd will be able to increase
their product line, because supermarkets are where consumers go to acquire their daily essentials.
Supermarkets are designed to serve customers' total needs for food, laundry, and housekeeping
products as well. There are many departments provided in supermarkets, such as healthy food
sections, baking sections, spice sections, and many more. As a side benefit, consumers will have
no trouble finding an Adabi product because each component has been divided into its own
category. In addition, supermarkets are huge stores and their operations are low-cost and low-
margin products for their consumers. Furthermore, supermarkets save labor expenses by using
the self-service system by providing greater convenience to their consumers. Tesco, Giant, Jaya
Grocer, and many more are examples of the famous supermarkets in Malaysia. When it comes to
purchasing the essentials of life, customers will purchase them at their nearest supermarkets. In
fact, supermarkets are one of the retail operations that can further expand Adabi’s products into
the market.

6.0 Ethics and Corparate Social Responsibility (CSR)

An ethical organization in its activities has the duty to respect stakeholders’ rights and to
create a better framework for the development of employees, managers, and owners, fostering
the customers’ and suppliers’ evolution strategies, offering new perspectives to local community,
and providing environmental protection. Ethical CSR is based on the strong relationship between
rights and ethical responsibilities in order to attain legitimacy.
 Generally, it's accepted that ethics is a broader concept than CSR. While business ethics
and corporate social responsibility are closely intertwined, CSR is focused more specifically on
an organization's obligations to society.

What Adabi Consumer Industries Sdn Bhd do for ethics? Adabi Consumer Industries Sdn
Bhd is committed to producing high-quality food products by prioritising food safety, thus
ensuring that they are suitable for consumption and are consistently delicious. We have received
ISO 9001:2015 from SIRIM Berhad that certifies Adabi’s Quality Management System. This
certification attests to the company’s commitment to producing high-grade and quality products.
This means that every step in the manufacture of Adabi’s product line complies with quality
standards. Our standard operating procedure will ensure that all staff members are aware of and
in compliance with the requirements in order to provide only the best quality products to our
consumers.

ISO auditors from SIRIM QAS will audit the company periodically. All necessary
documentation will be prepared and updated by Adabi, including revisiting the quality
management system and ensuring customer satisfaction through high-quality products at all
times. Process improvement is also issued from time to time, as customer satisfaction is of the
utmost importance to Adabi.

What does Adabi Consumer Industries Sdn Bhd do for Corporate Social Responsibility
(CSR)? For customers, Adabi Sdn Bhd was care or concern about the image of the business
organization. They are responsible for treating their customers fairly and honestly by giving
customers the services and goods. And to understand what the customer wants is a must as the
fact that the customer is a "king". The customer is always "right". By always being friendly,
gentle, and treating them kindly and sincerely, this would help the customers to stay and instead
entice other individuals to come and have the same experience they had.

And for employees, businesses that are responsible in their dealings with employees by
indulging workers to be more productive, such as giving them a chance to share their ideas,
treating workers fairly, no favourite person must be advanced, and making the employees feel
welcome in the company by making them part of the team and respecting their dignity and
human needs. At the same time, this kind of attitude would attract more individuals to apply for
jobs and, at the same time, bring great publicity for the company.
7.0 Human Resource Management

Human resource management (HRM or HR) is the strategic approach to the effective

and efficient management of people in a company or organisation such that they help their
business gain a competitive advantage. It is designed to maximise employee performance in
service of an employer's strategic objectives. Human resource management is primarily
concerned with the management of people within organizations, focusing
on policies and systems. HR departments are responsible for overseeing employee-
benefits design, employee recruitment, training and development, performance appraisal,
and reward management, such as managing pay and employee-benefits systems. HR also
concerns itself with organizational change and industrial relations, or the balancing of
organizational practices with requirements arising from collective bargaining and
governmental laws.

The overall purpose of human resources (HR) is to ensure that the organisation is able to achieve
success through people. HR professionals manage the human capital of an organisation and focus
on implementing policies and processes. They can specialise in finding, recruiting, selecting,
training, and developing employees, as well as maintaining employee relations or benefits.
Training and development professionals ensure that employees are trained and have continuous
development. This is done through training programs, performance evaluations, and reward
programs. Employee relations deals with the concerns of employees when policies are broken,
such as in cases involving harassment or discrimination. Managing employee benefits includes
developing compensation structures, parental leave programs, discounts, and other benefits for
employees. On the other hand, the field is occupied by HR generalists or business partners.
These HR professionals could work in all areas or be labour relations representatives working
with unionised employees.

What Adabi Consumer Sdn Bhd human resource management do for company? Provide
leadership around employee engagement, coaching managers on people-related issues, aligning
HR process and provide HR provide solutions for all people related processes. Manage a wide
variety of human resources responsibilities, including employee relations, performance
management, organizational development and talent acquisition. Engaged closely with the
executive leadership team to establish and implement our comprehesive workforce strategy in
support of Adabi business objectives, spanning acroos workforce planning, organization
effectiveness, talent management, employee productivity and engagement.

INNOVATION

For adabi to for global, they need access its own external factors and competitive
environment in international market. Furthermore this will helpful to identify the key of
opportunities of advantages and the threat that they must deal with in order the become
competitive market. This one is a good way for adabi to generate strong growth to make
strong identity.

Adabi need to use their strength and weakness so they can responds more active to both

internal and external influences. Because of that, Adabi will find its international expansion

more vigorously, in which the company's growth is considerably higher with the name of

the brand. This can be done by making an aggressive promotional campaigns to enlarge

the branding and gain more new customers.

All of the Adabi's products are halal, and that is the main strength of Adabi. Furthermore,
from this strength, they can attract Muslim customers from worldwide. Besides, Adabi can

do some investment in their products that will attract customer who prefer convenience

food lifestyle. The good recommendation for Adabi is to capture international market is by

entering the market as premium segment. This provides a broader consumer base and

more retail sales and higher global business penetration and can be achieved through

aggressive promotional strategies and brand recognition campaign.

CONCLUSION

Brand of Adabi was founded by Light Industrial in Kuala Lumpur in 1984 in a small
manufacturing facility. Throughout the course of two decades, Malaysian customers were able to
fall in love with their products. Adabi still continue to thrive locally and internationally.

Adabi have varieties of products including curry, powder, sauce and others. They also have local
and international branches. By joining the international strategic partnerships in Indonesia, they
can increase their market share and strength. Their aim is to ensure they can create an alliance to
meet the two partners’ goals. One of the good strategies is start with the option that offers the
most flexibility and a move towards greater commitment in order to ensure its business is well
secured.

Adabi can widen their products internationally especially Indonesian. Before entering the
market, Adabi need to do some research before joining the international market. They need to
know their customers’ need. Besides, this is a gain for Adabi because Malaysians are also stay in
Indonesia because they are likely to be the first customer and distributed by word of mouth to
families, neighbours and others. Adabi is a well-known company in Malaysia, so they are able to
grow successfully in Indonesian market.

Reference:

https://www.adabi.com/about-us/

https://www.thebalancecareers.com/what-is-human-resource-management-1918143

https://www.diligent.com/insights/esg/business-ethics-and-corporate-social-responsibility/

https://link.springer.com/referenceworkentry/10.1007/978-3-642-28036-8_493