Case Study: QL Resources Berhad

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QL Resources Berhad was one of the biggest company in the agriculture sector in Malaysia. QL has a strong management team, which lead the company to generate a higher sales and profit from year to year. The company was having a stable grow in sales and profit in this few years, this up trends for sales and profit lead the company has a positive view on their future growth. Besides, the consecutive growth of both sales and revenue is because of QL has a good diversify business which included integrated livestock farming, marine products manufacturing and palm oil activities. The diversify business help QL form a good business model and become the unique value of the company. The integrated livestock farming was the largest earnings contributor…show more content…
But among these companies, QL was the company who have the better performance. This is because in integrated livestock farming, QL egg production was has an approximately 12% of the market share in Peninsular Malaysia. QL also expanded their integrated livestock farming to overseas such as Vietnam, Indonesia and China. Furthermore, for the marine products manufacturing, QL marine products was has an approximately 25% of the market share in local marine product market. QL also exported their marine products to overseas countries such as Japan, Korea, China and Singapore. QL was the largest surimi producer in Asia and the largest fishmeal manufacturer in Malaysia. Moreover, for palm oil activities, QL has two independent CPO milling plants and one oil palm plantation in Sabah. QL also has one CPO milling plants in Indonesia. QL also the first company in the world who produce palm pellets. From the view of these point, we can know that QL was one of the major company in agriculture sector, and it also provided significant contribution to the Malaysia agriculture sector. If QL performance face any challenges, it will directly affect the performance of the Malaysia agriculture…show more content…
First, the labor shortage that face by Malaysia was one of the factor that could affect the performance of agriculture sector. Malaysia agriculture sector was dependent on foreign labor, the problem of labor shortage was result in the increase of idle agriculture land. Second was the increase in production costs. This is mainly cause by the high inflation rate. When the inflation rate was high, it will caused the increase in wages, capital costs, and expenses. Thus, this result the increase in production costs in agriculture sector. If they cannot overcome these problems that occur in agriculture sector, it will affect the performance and contribution of the agriculture

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