Question Seven

QUESTION SEVEN

The importance of business restructuring and re-engineering is partially dismantling and reorganizing a company for the purpose of making it more efficient and therefore more profitable. United Motor Works or UMW Group has differing kind of business and global interest in the Automotive, Equipment, Manufacturing and Engineering, and Oil and Gas Sector. Currently, UMW Group is one the Malaysia’s foremost public-listed companies, while it is continuously building on the strengths of their core business to make a connection and opportunities in the international field area. The strategic alliances with leading global organisations have helped position the UMW Group as a leader in the core businesses and the Structured Business Unit of UMW as chart below.

Chart :

In this case, UMW Toyota Motor Sdn. Bhd has been chosen as the case study whereby UMW Toyota Shd. Bhd is the assembler, importer and distributor of Toyota and Lexus cars in Malaysia. It is a joint-venture company with 51% in hand while Toyota Motor Corporation (39%) and Toyota Tsusho Corporation (10%). It assembles engines and parts from Thailand and Japan together with the body in which is manufactured in Malaysia itself. This company is having four subsidiaries known as :

i. Assembly Services Shd. Bhd. (ASSB) - Local assembler/manufacturer of Toyota passenger and commercial vehicles

ii. Automotive Industries Shd. Bhd. (AISB) - Original equipment manufacturer of exhaust systems for national and non-national car companies.

iii. Toyota Boshoku UMW Sdn. Bhd. (TBU) - Manufacturing and assembling high quality and cost-effective and it is formerly known as Takanishi SIM Shd. Bhd. car seats, door trims and interior parts for all Toyota cars and Hino commercial vehicles assembled by ASSB using the JIT method.

iv. KAYABA (Malaysia) Shd. Bhd. (KYB-UMW) - Manufacturer of high quality shock absorbers and steering pumps. ASSB assembled a few Toyota models: Vios, Hilux, Innova,...