The company that we choose and analyze is the Sime Darby Berhad.
1.1 Company
Sime Darby Berhad is one of the Malaysia’s biggest multinational corporations (MNCs) that conduct the trade and service sector. Sime Darby was established in year 1910 by business partner named William Sime, a traveler and adventurer from Scotland and Henry Darby, an English banker. Sime Darby is one of the largest companies that listed on Bursa Malaysia and has a market capitalization of RM57.91 billion as at 20 June 2014. The beta of the Sime Darby is 1.14, which indicated the stock price will be more volatile than market. It will offer the possibility of a high rate of return, but at the same time also posing more risk. Moreover, the company has the workforce of over 100000 employees over 20 countries. Tan Sri Dato’ Mohd Bakke Salleh is CEO at Sime Darby Berhad since 27 November 2010.
1.2 Company Activities & Industry
Sime Darby Berhad was broadly diversified multinational engaged in a wide range of industries which included plantation, tire manufacturing, heavy equipment and motor vehicle distribution, property development, power generation and engineering services. Its plantation segment is initially engaged in production and marketing of rubber in Malacca and later diversified in crude palm oil, palm kernel, fresh fruit bunches and refining and marketing of palm oil related products. Its property segment develops and markets residential, commercial and industrial properties and development land and management and provision of golf and other recreational facilities and services. Industrial segment is engaged in sales, rental and servicing of heavy equipment. Its Energy & Utilities is conducted in engineering, power generation and supply of treated water and ownership management of port facilities.
Besides their core businesses, Sime Darby also engaged in other business which is joint venture with others. Tesco stores (Malaysia) Snd Bhd is a joint