ORGANIZATIONAL BEHAVIOR

THE DKSH COMPANY

Subject: Introduction Organizational Behavior

Lecture: Mr. HIM SOPHANY
Year II Semester I Bath 20
Group Assignment
Chinthouy Khannak Sang Tola
Kim Dina Mean Ko Sal
Chay Litavhour Deab Bora

Year Study: 2022- 2023

 Acknowledgement

This book is the research from of the DKSH company to grow thinking
struggle of their idea experiences and we want to shearing to some
knowledge that looking forward to helping generation or some people
are wanting to reading about DkSH. The DKSH aims to be or remain
among the best in the world in all dimensions of business excellence.
Year after year, we are awarded for our attractiveness as an employer
and for achievements in our areas of work. All of there we researched
from the DKSH Cambodia with another country’s has made DKSH
company.
Very special thinks to everyone who has to reading this book for the
development of the companies to practices more they could choose one
or two good thinks about the business how they started growing up step
by step and for the how active of the company DKSH, how to change,
communication, across culture, Self, team, diversity, marketing, swot,
for success of the company.
We hoped all of you have reading this book until the end will get more
knowledge, ideas, and experiences for growth up your own business.
These points would like to you readers pay attention really want to
ideas spend more time to find some of goal that we needed. I am
looking forward to receiving any constructive criticism and comments
from both lectures and students with great appreciation.
 Preface

DKSH, also known as DiethelmKellerSiberHegner, is a Swiss holding

company specialising in market expansion services, e.g. outsourcing. Although
its headquarters is in Zurich, DKSH is deeply rooted in communities all across
the Asia Pacific region.
The company offer Sany combination of sourcing marketing, sales,
distribution and after sales services into four Businesses Units: Consumer Goods
(including the businesses Segment Luxury & Lifestyle), Healthcare, Performance
Materials and Technology. Its core business is supporting other companies to
grow their business in new or existing markets.
With 850 business locations in 36 countries and 33,350 specialized staff, it is
one of the top 30 Swiss companies ranked by sales and employees. In 2019,
DKSH generated annual net sales of CHF 11.6 billion.
 Content

11. Background of the DKSH 1

Mission of DKSH 2

Vision of DKSH 3

Values of DKSH 3

2 Review one DKSH’s philosophy

2. 4

3.
3 Self of DKSH 5

4.
4 Ethics of DKSH 5

5.
5 Diversity of DKSH 7

6.
6 Team of DKSH 7

7.
7 Change Management in DKSH 8

8.
8 Communication Marketing of DKSH 9

9.9 Across culture of DKSH 11

10.
10 SWOT Analysis 11

11 Financial Of DKSH 15

12 Conclusion 18

13 Reference 19
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References

1. Background of the DKSH

The company has its origin in the activities of three Swiss entrepreneurs who
sailed east to Asia in the 1860s. Independently and within a few years of each
other, Hermann Siber set off for the Japanese port of Yokohama, Wilhelm
Heinrich Diethelm for Singapore and Eduard Anton Keller for the Philippines.
As the oldest of the original companies, 'Siber & Brennwald' was founded
in Yokohama in 1865.
'Siber & Brennwald' was one of the first European companies to be established
in Japan, just a few months after the establishment of the "Treaty of Amity and
Trade" between the two nations on February 6 of 1864.
In 1868, Eduard Anton Keller joined C. Lutz & Co., which was founded
in Manila in 1866, and renamed this existing enterprise Ed. A. Keller & Co. after
he acquired it a year later in 1887.
In a similar manner, in 1871 Wilhelm Heinrich Diethelm joined Hooglandt &
Co., established in 1860 in Singapore. Sixteen years later, in 1887, he acquired
this company and renamed it as Diethelm & Co. Ltd.
The three ancestral companies expanded their business primarily in Asia.
Although the European market played a subsidiary role, each headquarters was
situated in Switzerland, which illustrates the intensive contact to the home
country.
Established in 1906 on the banks of Chao Phraya River, today the company is
one of Thailand's leading business organizations, with annual sales of THB 123
billion in 2019. DKSH Thailand has close to 12,000 employees and a
comprehensive network of branches across Thailand. It generates more than a
third of overall revenues for DKSH.
In 1931 Diethelm & Co., Ltd. was granted permission by Royal Warrant to
display the royal Garuda emblem, the official seal of the Royal Household of
Thailand.
Even though the two families Diethelm and Keller always had a close-knit
business and private relationship, the two companies finally merged during the
2000 summer into Diethelm Keller Holding. Two years later, in 2002, Siber
Hegner joined as well and this resulted in establishing DKSH. DKSH went public
in March 2012 on the SIX Swiss Exchange.
In 2015, the company celebrated its 150th anniversary.In March 2017 Stefan
P. Butz became DKSH's new CEO, with former CEO, Dr. Joerg Wolle,
replacing Adrian T. Keller as Chairman of the Board of Directors.
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In October 2017, DKSH acquired 60 percent of shares in PT Wicaksana

which provided the basis for DKSH’s market entry in Indonesia for Business
Units Consumer Goods and Healthcare. Media Release DKSH, October 30,
2017.
In October 2018, DKSH announced that in March 2019 Wolle would be resigning
his position as Chairman after just two years. Adrian T. Keller became Chairman
instead of Wolle.
In order to strengthen the Consumer Goods Business Unit, the
corresponding business of Auric Pacific in Malaysia and Singapore was acquired
for CHF 160 million on 1 April 2019. Revenue of the acquired business is approx.
CHF 185 million. This represents the most important acquisition by DKSH since
2002.
With several acquisitions in Australia and New Zealand between 2018 and 2020,
DKSH has strengthened both the services' portfolio and its geographical market
coverage in the Pacific region. Amongst others, DKSH acquired Davies
Foods, consumer goods distributor CTD, field marketing provider
Crossmark, and speciality chemicals distributor Axieo.
In May 2020, Marco Gadola has been elected as the new Chairman of the
DKSH Board of Directors, succeeding Adrian T. Keller.
DKSH Vietnam CoLtd.: No.23 Doc Lap Avenue, Vietnam-Singapore
Industrial Park, Binh Hoa Ward, Thuan A City, Binh Duong Province, Vietnam.
➢ Mission of DKSH

Outstanding organizations, offering power solutions to the countries in the

Greater Mekong Sub-region.
We look to continuously grow our markets by leveraging on our excellence in
sales, distribution and service of engines, power generators and aftermarket
products.

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Based on our strong beliefs in integrity, innovation and corporate

responsibility, we strive to be a great company by strategically investing in the
development of our people, our products and services, thereby achieving highest
levels of satisfaction for all our customers and stakeholders.

➢ Vision
Making people’s lives better by unleashing the power of Cummins DKSH.

Corporate Values

• Integrity & Commitment

• Entrepreneurial
• Deliver Superior Results
• Corporate Responsibility
• Diversity

Integrity & Commitment: Strive to do what is right and do what we say we

will do.
Entrepreneurial: Apply the entrepreneurial and creative ingenuity
necessary to make our customers better, faster, first.
Deliver Superior Results: Exceed expectations, consistently.
Corporate Responsibility: Serve and improve the communities in which
we live.
Diversity Embrace the global and diverse perspectives of all people and honor
both with dignity and respect.
➢ Values of DKSH
In a world where products, processes and technologies
become easier to duplicate, true competitive advantage stems not just
from organizational capabilities, but require a corporate culture that is
hard to imitate or reproduce. Despite the diversity of our people, the
geographies in which we are located and the various industries we
serve, a very unique corporate culture has emerged over the decades.
Five meaningful values reflect this unique culture and are reinforced in
all aspects of our business. DKSH’s reputation is based on our
authentic, pragmatic and entrepreneurial approach to finding tailor-
made solutions. Our commitment and passion drive the sustainable
business results we achieve for our business partners.
Trusted partner for consumer goods companies

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We provide established global brands as well as newcomers

with all the knowledge, advice, relationships and on-the-ground
logistics your company needs to grow in Asia. Our tailor-made
outsourcing solutions allow you to focus on your core strengths while
growing your business in the region with a reliable, trustworthy partner.
Based on our unparalleled capillary distribution network in the
region and our profound industry knowledge, we provide all the
essential services that help you grow your business in new or existing
markets. Our experts work out customized solutions with high-cost
efficiency, enabling you to make the right decisions and take the right
actions.
Our focus on direct delivery reduces the risk for our business
partners. Sales teams with deep category expertise and best-in-class
Field Marketing services help move your products from the shelf into
the consumer’s hands.
We currently support and represent more than 500 consumer goods
companies from all over the world, including Beiersdorf, Henkel, Kraft
Foods, Levi’s, Lindt, Mead Johnson and PepsiCo. On average, our
clients work with us for more than ten years and in at least three Asian
markets.

2. Reviews one DKSH’s philosophy

Contents 2 Our services Managing the entire value chain 4 Market
Expansion Services Enabling companies to grow 6 DKSH at a glance Our profile
10 What is important to us Our corporate values 11 DKSH strategy for growth
Our vision 12 Managing the flow of services and products Turning market insight
into strategic advice 14 The year 2009 reviewed To our shareholders and business
partners 22 Business Unit Consumer Goods Market insight combined with
customized solutions 34 Business Unit Healthcare Commitment to healthcare
excellence 44 Business Unit Performance Materials Unmatched global sourcing
network and industry application expertise 64 Business organization Our
structure 66 Our Board of Directors Guiding the overall strategy and direction of
DKSH 67 Our Executive Board Ensuring the implementation of our strategic
goals 68 Our corporate services Supporting the Business Units 70 Diversity is us
A long-standing tradition 72. In and for Asia Committed to local Communities
years of experience Our history 80 Symbolizing the business Our heritage 82

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Ready for the future Strong foundation for growth 84 DKSH worldwide Our
offices 54 Business Unit Technology Total technology solutions for expansion.

3. Self of DKSH
Supported by our expertise in innovation and formulation, supply
chain, sourcing, regulatory and sales & marketing excellence, we
distribute a wide range of innovative ingredients and specialty
chemicals for the specialty chemicals, food and beverage,
pharmaceutical and personal care industries.
DKSH Korea provides "One-Stop solution" services required to
market entry and expansion of not only domestic manufactured but also
overseas manufactured pharmaceuticals and medical devices.

In addition to the logistics and distribution services provided by

DKSH traditionally, we also provide below services that can add the
value to the product or that is essential to product launch.
• Registration Feasibility Assessment
• Registration (incl. license holding)
• Pricing & Reimbursement
• PMS (Post Marketing Surveillance)
• Patient Support Program (PSP)
• Pre-marketing
• Named Patient Program
• Pharmacovigilance
• Local Bridging study

4. Ethics of DKSH
❖ Supplier Business Conduct
At DKSH, we are committed to conducting our business responsibly – always
acting lawfully and with high ethical standards, respecting human rights, offering
decent and fair working conditions, and taking responsibility for our
environmental impacts, in line with our DKSH Code of Conduct and our
commitment to the Ten Principles of the United Nations Global Compact. DKSH
expects business partners in its supply chain (“Suppliers”) to commit to DKSH’s

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standards and reserves its rights to turn down business opportunities, or to

discontinue business relationships with Suppliers who do not meet DKSH’s
expected standards of doing business, as outlined herein below.

❖ Lawful and ethical business conduct DKSH believes in free markets,

fair competition, and responsible marketing practices. Suppliers shall always act
in a lawful and ethically sound manner, and shall not offer, provide, or accept any
undue favors to obtain or retain DKSH business. No intermediaries, such as
agents, consultants or any other business partner shall be used to commit corrupt
acts or bribery. Suppliers shall observe the following requirements:

• DKSH does not do business with Suppliers that do not respect the rule of law
and may negatively affect DKSH’s reputation. DKSH expects all its Suppliers to
follow all applicable laws and regulations, to apply high ethical standards, and to
always act with integrity in all their business dealings. If laws and regulations
require a higher standard than those set out herein, then the higher standard shall
apply. If the ethical standards as set out herein set a higher standard, they shall
supersede local laws and regulations, unless in conflict with such laws and
regulations.
.
• Suppliers shall observe the rules of fair competition and shall not adopt any
practices that may have an adverse effect on DKSH. All forms of bribery,
corruption, extortion, or embezzlement are strictly prohibited. Suppliers shall
never offer, pay, solicit, or accept any bribes or other forms of illegal or unethical
inducement in business relationships or especially when dealing with public
officials and/or healthcare professionals, and they shall never make use of third
parties to do such things on their behalf. − Gifts, Hospitality, and Entertainment:
Gifts and/or any form of hospitality or entertainment shall never be offered,
promised, or paid on behalf of DKSH or to DKSH employees or intermediaries
for obtaining or retaining business. Any gifts or entertainment shall be modest,
reasonable, and infrequent. − Facilitation payments: Facilitation payments
generally are low value favors (e.g cash, samples) offered to public officials to
accelerate or prevent a non-discretionary routine action. DKSH does not tolerate
facilitation payments and expects the same from its Suppliers.

• Suppliers shall disclose any conflict-of-interest situation prior to entering a

relationship with DKSH, or as soon as such a situation arises during an ongoing
relationship. All business dealings between the Supplier and DKSH and its
employees shall always be open, fair, and transparent.

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• All workers should be encouraged to report concerns or illegal activities in the

workplace, without threat of reprisal, intimidation, or harassment. Suppliers shall
investigate and take corrective action if needed.

• Suppliers shall safeguard and make only proper use of confidential information
to ensure that company, worker and business partner privacy rights are protected
with applicable confidentiality and intellectual property laws and regulations.

5. Diversity of DKSH
Cummins DKSH employs some of the brightest, most talented people in the
industry. We are a diverse, community minded organization, and one of the key
values at the core of our business is embracing the broad perspectives of all of
our people because we realize that the success of our company lies in our people.
We are dedicated to the principles of equal employment, and fair hiring practices.
We cultivate diversity in our workforce. To us, diversity means more than
policies and practices. We believe that a diverse workplace promotes a culture of
innovation and collaboration, and is simply the responsible and right thing to do.
It is at the heart of who we are as a business, and it is essential to our long-term
sustainability. We strive to provide an atmosphere that engages our employees,
and builds an awareness of responsibility while drawing on their ingenuity and
empowering them to make a difference at work and at home.
Our executive sponsored Leadership Council was created to ensure we are
creating an inclusive environment that supports the Global Office of Diversity,
Equity and Inclusion’s strategy to engage, recruit, develop, retain and advance
diverse talent. The Global Women’s Leadership Council is a global council with
a laser-focus objective of accelerating the development of female talent into roles
of increasing responsibility and influence within the workforce.

6. Team of DKSH
With an organizational structure that cuts through the complexity of the
businesses we manager, we are optimally organized for both today and tomorrow
as we continue implementing our strategy for growth. Our structure seamlessly
leverages the vast resources of knowledge and market power within our
organization for the benefit of all stakeholders.

DKSH’s overall strategy and direction is guided by an international

Board of Directors. Executive management responsibility for the Group and the
implementation of our strategic goals across our markets and Business Units is
then ensured by the Executive Committee, led by the CEO.
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Our business activities are managed through four highly specialized Business
Units. Local market organizations implement Business Unit strategies and enable
region-wide coverage, while our Corporate Center provides cost-effective
services and a Group-wide infrastructure.
Executive Committee Stefan P. Butz Chief Executive Officer •
Investor & Media Relations • Marketing & Branding • Sustainability
Terry Seremetis Head Business Unit Consumer Goods Bijay Singh Head
Business Unit Healthcare Thomas Sul Co-Head Business Unit Performance
Materials Natale Capri Co-Head Business Unit Performance Materials Laurent
Sigismondi General Counsel • Legal • Governance, Risk, Compliance Antoine
Mangin Chief Human Resources Officer Hanno Elbraechter Head Business Unit
Technology Ido Wallach Chief Financial Officer • Supply Chain Management
Sam Oh Chief Information Officer Martin Frech Chief Strategy Officer and Head
of eCommerce Stephen Ferraby Head Corporate Affairs & Strategic Investments
• Mergers & Acquisitions • Fashion & Apparel
7. Change of DKSH
The case describes the history and transformation of DKSH, a privately-held
global trading company headquartered in Zurich, Switzerland, that has been
doing business in the Far East for some 150 years. The case focuses on the efforts
of CEO Joerg Wolle since 1999 to bring together several independent family-
owned Swiss-based trading houses under one corporate roof and to transform
successful but steady old-fashioned trading houses into a new type of company
specializing in "Market Expansion Services." This novel Market Expansion
Services company works with global "clients" (g. major pharmaceutical
companies) to help them get access to and accelerate growth in different Asian
markets and with "customers" (e.g., Asian distributors and retailers) to provide
them with access to the goods and services from the global clients. To effectively
achieve this corporate transformation, Wolle worked with several other senior
executives to create integrated IT, logistics, and market intelligence capabilities.
The case focuses on the growth strategy and associated challenges, mostly
people-and leadership related-to bring DKSH to the next level of profitable
growth.
According to authorlist Change management efforts are absolutely essential
for the surviving and thriving of the organization but they are also extremely
difficult to implement. Some of the biggest obstacles in implementing change
efforts.

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• Change management is often a lengthy, time consuming, and resource

consuming process. Managements try to avoid them because they reflect
negatively on the short-term financial balance sheet of the organization.
• Change efforts are often made by new leaders because they are chosen by
board to do so. These leaders often have less trust among the workforce
compare to the people with whom they were already working with over the
years.
• Change efforts create an environment of uncertainty in the organization
that impacts not only the productivity in the organization but also the level
of trust in the organization.
• Change management efforts are made when the organization is in dire need
and have fewer resources. This creates silos protection mentality within the
organization.
• Change efforts are often targeted at making fundamental aspects in the
business – operations and culture. Change management disrupts are status
quo thus face opposition from both within and outside the organization.
• What many leaders and managers at the Dksh Wolle fails to recognize is
that – Change Management is a deliberate and detail Oriented process
rather than an event where the management declares that the changes it
needs to make in the organization to thrive. Change management not only
impact the operational processes of the organization but also the cultural
and integral values of the organization.
➢ Eight Steps of Kotter's Change Management Execution

• 1. Establish a Sense of Urgency

• 2. Form a Powerful Guiding Coalition
• 3. Create a Vision
• 4. Communicate the Vision
• 5. Empower Others to Act on the Vision
• 6. Plan for and Create Short Term Wins
• 7. Consolidate Improvements and Produce More Change
• 8. Institutionalize New Approaches.

8. Communication of DKSH
DKSH’s Business Units are supported by highly specialized teams from
centralized corporate functions. These functions provide common standards and
support the Business Units and countries to reduce their administrative workloads
so that they can concentrate on what they know best: running their business. The
corporate services teams support Business Units and country operations in many
important ways, ensuring that the company makes the best possible use of
synergies across the Group, shares best practices and works to the same high
standards in everything it does. In 2015, all functions collaborated contributed

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closely to help achieve further growth as market leader in the Market Expansion
Services industry.
This function is responsible for the areas of Human Resources, Corporate
Communications and Branding, Investor & Media Relations, Strategy, Internal
Consulting, Business Process Re-engineering and Center of Excellence for
Digital Business. Corporate Human Resources provides a comprehensive
strategic HR framework, focusing on new hires, talent and management
development, performance management and employer branding as well as
compensation and benefits. The function also provides strategic direction to the
local Human Resources teams, driving more corporate guidance and alignment
across the Group with the introduction of standardized HR core processes. In
2015, DKSH continued the rollout of the Fantree Academy designed to be the
corporate training and development center for DKSH. The Groupwide leadership
programs focus on developing core leadership capabilites, which are required at
the different levels of seniority, while the skills programs focus to further develop
specific competences relevant to certain functions or areas of development.
Corporate Communications and Branding is responsible for parts of external and
internal Group communications as well as for the DKSH branding project. The
function aims to make DKSH known as the No. 1 Market Expansion Services
Group with a focus on Asia and promotes this message throughout the world’s
business community.
The Investor & Media Relations function is our interface to analysts, investors
and the media – responsible for ensuring professional communication with the
capital market and other external stakeholders

➢ Challenge
Hiruscar was not capturing and converting brand interest and intent into sales
as they had no comprehensive performance marketing campaign linking together
above-the-line (ATL) brand-building with below-the-line sales activation.

The Hiruscar brand was very active in ATL awareness and engagement
campaigns in Thailand and with the invested effort, they wanted to close the sales
loop by converting sales leads into online customer.

Hiruscar also wanted to expand its online business-to-consumer (B2C) business

and to gauge the effectiveness and benefits of using online platforms to promote
its products. The barrier to this was that the company had no experience and
capabilities with online sales optimization.

➢ Approach
We implemented a comprehensive performance marketing campaign that
seamlessly linked together demand generation and sales execution activities. The
project involved revamping the entire shopping experience by connecting the

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ATL campaign with traffic generation and conversion campaign, negotiating with
e-marketplaces for premium on-site visibility packages and using precise data-
driven targeting and retargeting to reach shoppers with the highest likelihood to
convert into buyers.

We ensured the right traffic generation strategy was in place together with the
right promotion mechanics and a compelling on-site user experience aimed to
drive sales conversion. We also took end-to-end ownership of both demand
generation and demand fulfillment activities.

➢ Result
In the three-week campaign, Hiruscar’s online B2C sales were double the
online sales from the previous year. The Hiruscar brand also grew its online share
of total DKSH Thailand sales by over 2,000 percent. We also helped Hiruscar
acquire over 97 percent new customers.

9. Across culture of DKSH

At DKSH, we enrich people’s lives by providing access to goods, services,
and insights. United by our vision to be the trusted partner, we help companies
grow in Asia and beyond across our Business Units Healthcare, Consumer Goods,
Performance Materials, and Technology. Delivering life-saving drugs to
hospitals, bringing high-quality products to remote villages, installing technology
that raises living standards and providing new formulations for healthcare
products that make life easier. These are just a few examples of how DKSH
touches people’s lives around the clock. We do this while helping our clients and
customers grow by providing services including sourcing, market insights,
marketing and sales, eCommerce, distribution, and logistics as well as after-sales
services. Publicly listed on the SIX Swiss Exchange, DKSH operates in 36
markets with 33,350 specialists, generating net sales of CHF 11.6 billion in 2019.
Founded by Swiss entrepreneurs in 1865, we have been deeply rooted in the Asia
Pacific for over 150 years. Delivering growth – in Asia and beyond.
We are self-driven and act with a pioneering spirit. As the founders of
DKSH, we share a pioneering spirit and are motivated to drive growth. We are
ambitious, open to change and we embrace progress. We are innovative and
creative problem solvers.

10. SWOT Analysis

DKSH Holding Ltd (DKSH) is a provider of market expansion services.
Improved business performance, focused R&D activities and geographic
presence in a wide territory is the company’s major strengths, even as decline in
working capital remains cause for concern. Growing healthcare and

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pharmaceuticals market, contracts and agreements, strategic acquisitions and

growth initiatives could provide ample growth opportunities to the company.
However, currency fluctuations, stringent regulations and rapidly changing
technology could affect the company’s performance.
Strengths - DKSH
Strengths are the Dksh Wolle capabilities and resources that it can leverage to
build a sustainable competitive advantage in the marketplace. Strengths come
from positive aspects of five key resources & capabilities - financial resources,
physical resources such as land, building, activities & processes, human
resources, and past experiences and successes.

- Strong Brand Equity and Brand Awareness – Dksh Wolle has some of the most
recognized brands in the domestic market it operates in. According to Robert A.
Burgelman, Martina Ludescher, brand recognition plays a significant role in
attracting new customers looking for solutions in Decision making, Growth
strategy, international business, Mergers & acquisitions adjacent industries.

- First Mover Advantage – Dksh Wolle has first mover advantage in number of
segments. It has experimented in various areas Decision making, Growth
strategy, international business, Mergers & acquisitions. The Leadership &
Managing People solutions & strategies has helped Dksh Wolle in coming up
with unique solution to tap the un-catered markets. Successful Go to Market
Track Record – Dksh Wolle has a highly successful track record of both
launching new products in the domestic market but also catering to the various
market based on the insights from local consumers. According to Robert A.
Burgelman, Martina Ludescher , Dksh Wolle has tested various concepts in
different markets and come up with successful Leadership & Managing People
solutions.

- Strong Balance Sheet and Financial Statement of Dksh Wolle can help it to
invest in new and diverse projects that can further diversify the revenue stream
and increase Return on Sales (RoS) & other metrics.

- High Margins – Dksh Wolle charges a premium compare to its competitors.

According to Robert A. Burgelman, Martina Ludescher of DKSH in 2011 case
study, this has provided Dksh Wolle resources to not only thwart competitive
pressures but also to invest into research and development.

- Diverse Product Portfolio of Dksh Wolle – The products and brand portfolio of
Dksh Wolle is enabling it to target various segments in the domestic market at
the same time. This has enabled Dksh Wolle to build diverse revenue source and
profit mix.

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- Intellectual Property Rights – Dksh Wolle has garnered a wide array of patents
and copyrights through innovation and buying those rights from the creators. This
can help Dksh Wolle in thwarting the challenges of competitors in various
industries Decision making, Growth strategy, international business, Mergers &
acquisitions.

Weakness- DKSH
Weaknesses are the areas, capabilities or skills in which Dksh Wolle lacks. It
limits the ability of the firm to build a sustainable competitive advantage.
Weaknesses come from lack or absence of five key resources & capabilities -
human resources, physical resources such as land, building, financial resources,
past experiences and successes, and activities & processes.

- Implementation of Technology in Processes – Even though Dksh Wolle has

integrated technology in the backend processes it has still not able to harness the
power of technology in the front-end processes.

- Track record on environment consideration is not very encouraging – Dksh

Wolle track record on environmental issues is not very encouraging. According
to Robert A. Burgelman, Martina Ludescher, this can lead to consumer backlash
as customers are now considering environmental protections as integral to part of
doing business.

- Project Management is too focused on internal delivery rather than considering

all the interests of external stakeholders. This approach can lead to poor public
relation and customer backlash.

- Dksh Wolle business model can be easily replicated even with the number of
patents and copyrights the company possess. The intellectual property rights are
very difficult to implement in the industry that Dksh Wolle operates in. According
to Robert A. Burgelman, Martina Ludescher , Intellectual Property Rights are
effective in thwarting same size competition but it is difficult to stop start-ups
disrupting markets at various other levels.

- Lack of critical talent – I believe that Dksh Wolle is suffering from lack of
critical talent especially in the field of technology & digital transformation. Dksh
Wolle is struggling to restructure processes in light of developments in the field
of Artificial Intelligence (AI) and machine learning.

- Lack of Work force diversity – I believe that Dksh Wolle is not diverse enough
given that most of its growth so far is in its domestic market. According to Robert
A. Burgelman, Martina Ludescher, this can reduce the potential of success of
Dksh Wolle in the international market.

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Opportunities- DKSH
Opportunities are macro environment factors and developments that Dksh Wolle
can leverage either to consolidate existing market position or use them for further
expansion. Opportunities can emerge from various factors such as - technological
innovations, changes in consumer preferences, political developments & policy
changes, increase in consumer disposable income, and economic growth.

- E-Commerce and social media Oriented Business Models – E-commerce

business model can help Dksh Wolle to tie up with local suppliers and logistics
provider in international market. Social media growth can help Dksh Wolle to
reduce the cost of entering new market and reaching to customers at a
significantly lower marketing budget. It can also lead to crowd sourcing various
services and consumer-oriented marketing based on the data and purchase
behavior.

- Growing Market Size and Evolving Preferences of Consumers – Over the last
decade and half the market size has grown at brisk pace. The influx of new
customers has also led to evolution of consumer preferences and tastes. This
presents Dksh Wolle two big challenges – how to maintain loyal customers and
how to cater to the new customers. Dksh Wolle has tried to diversify first using
different brands and then by adding various features based on customer
preferences.

- Developments in Artificial Intelligence – Dksh Wolle can use developments in

artificial intelligence to better predict consumer demand, cater to niche segments,
and make better recommendation engines.

- Increasing Standardization – Dksh Wolle can leverage this trend to reduce the
number of offerings in the market and focus the marketing efforts on only the
most successful products.

- Opportunities in Adjacent Markets – Dksh Wolle can explore adjacent industries

Decision making, Growth strategy, international business, Mergers &
acquisitions to further market growth especially by extending the features of
present products and services.

- Increase in Consumer Disposable Income – Dksh Wolle can use the increasing
disposable income to build a new business model where customers start paying
progressively for using its products. According to Robert A. Burgelman, Martina
Ludescher of DKSH case study, Dksh Wolle can use this trend to expand in
adjacent areas Decision making, Growth strategy, international business, Mergers
& acquisitions.

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Threats- DKSH
Threats are macro environment factors and developments that can derail business
model of Dksh Wolle. Threats can emerge from various factors such as -
economic growth, increase in consumer disposable income, changes in consumer
preferences, technological innovations, and political developments & policy
changes.

- Threats of New Entrants because of Reducing Costs and Increasing Efficiencies

– As Dksh Wolle can leverage low cost of reaching customers using social media
and e-commerce, so can the competitors – both local and international
competitors.

- Increasing bargaining power of buyers – Over the years the bargaining power
of customers of Dksh Wolle has increased significantly that is putting downward
pressure on prices. The company can pursue horizontal integration to consolidate
and bring efficiencies but I believe it will be a short-term relief. According to
Robert A. Burgelman, Martina Ludescher, Dksh Wolle needs fundamental
changes to business model rather than cosmetic changes.

- Increasing costs component for working in developed market because of

environmental regulations – Dksh Wolle has to deal with these costs as
governments are trying to levy higher environmental taxes to promote cleaner
options. For Dksh Wolle it may result into higher logistics costs and higher
packaging costs.

- Squeezing Middle Class in Developed and Developing World – The growing

inequality is one of the biggest threats to not only globalization but also to
capitalism. Dksh Wolle first hand witnessed the impact of it where it has seen
lower demand of its products from middle class customers in US and EU market.

- Culture of sticky prices in the industry – Dksh Wolle operates in an industry

where there is a culture of sticky prices. According to Robert A. Burgelman,
Martina Ludescher of DKSH case study, this can lead to inability on part of the
organization to increase prices that its premium prices deserve.

- International Geo-Political Factors – Since the Trump election, geo-political

factors have taken a turn for growing protectionism. Developments such as
Brexit, Russian sanctions, foreign exchange crisis & inflation in Venezuela, lower
oil prices etc are impacting international business environment. Dksh Wolle
should closely focus on these events and make them integral to strategy making.

11. Financial Of DKSH

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DKSH Holding Ltd. follows a progressive ordinary dividend policy. Dividend

payments are executed in the year following the financial year, after approval at

the Annual General Meeting.

Dividend history

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12. Conclusion
• We provide reliable access to high-quality and responsible products and
services, creating sustainable value for our partners and contributing to
raising the quality of life in the communities we operate in by generating
jobs, perspectives, and opportunities for people's development and growth.

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Reference

Research from DKSH Company.

https://www.wsj.com/market-data/quotes/MY/XKLS/5908/financials/annual/income-statement
(https://www.google.com/url?sa=i&source=web&cd=&ved=0CAIQw7AJahcKEwjg2YaQ-
N3_AhUAAAAAHQAAAAAQBA&url=https%3A%2F%2Fwww.wsj.com%2Fmarket-
data%2Fquotes%2FMY%2FXKLS%2F5908%2Ffinancials%2Fannual%2Fincome-
statement&psig=AOvVaw0xmpSe01o-AeFRt2LAnMlQ&ust=1687765883383443&opi=89978449)
https://www.researchandmarkets.com/reports/3443340/dksh-holding-ltd-dksh-financial-and
(https://www.google.com/url?sa=i&source=web&cd=&ved=0CAIQw7AJahcKEwjI1PTO-
N3_AhUAAAAAHQAAAAAQAg&url=https%3A%2F%2Fwww.researchandmarkets.com%2Freports%2F3443340
%2Fdksh-holding-ltd-dksh-financial-and&psig=AOvVaw2Lf-
LYABD3noIc2bE6vFg5&ust=1687766040412409&opi=89978449)
https://www.case48.com/swot-case/9379-DKSH-in-2011
(https://www.google.com/url?sa=i&source=web&cd=&ved=0CAIQw7AJahcKEwjI1PTO-
N3_AhUAAAAAHQAAAAAQBA&url=https%3A%2F%2Fwww.case48.com%2Fswot-case%2F9379-DKSH-in-
2011&psig=AOvVaw2Lf-LYABD3noIc2bE6vFg5&ust=1687766040412409&opi=89978449)
https://www.dksh.com/hk-en/home/careers/our-people-stories/culture-cascade

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