Part A
Question 1
Explain F&N strategies for its future plan.
The first strategies for F&N future plan is to development new manufacturing facility. Manufacturing facility is to increasing the number of producing F&N product and services at new geographic areas. F&N plan to open new development in Johor Bharu, Kajang and Selangor. It is the part of F&N strategy to explore value enhancing initiatives for its existing land assets that are primed for development. The current geographic of F&N are Petaling Jaya.
The second strategy for F&N future plan is developing other mixed-used developments. Currently in section 13, Petaling Jaya already has a mixed-used of development by F&N. the realization of value from its landbank could further enhanced the group’s prospects and boost its share value. For example, 61 acres in Mukin Hulu Semenyih, distric of Hulu Langat, has been earmarked for the development of residential properties.
The third strategy for F&N future plan is joint venture or horizontal strategy. Horizontal strategy will enhanced the transfer of resource. F&N and its property arm, Vacaron Co Sdn Bhd will team up with Singapore’s FCL centrepoint Pte Ltd to develop two parcels in Petaling Jaya. The joint venture would enable the group to maintain its focus on its core business of food and beverages without diverting a large amount of its resources into the redevelopment project.
The last strategy for F&N future plan is to do product development. Product development is a strategy that seeks increased sales by improving or modifying present product or services. Product development usually entails large research and development expenditures. F&N potentially is exploring other strategies to lift earnings, the research house adds. For example F&N is looking to launch its carbonated cola flavored drink in peninsular Malaysia.
Question 2
Describe the collaboration of F&N and its partner, and the potential benefits derived from such arrangement.
F&N