Firstly, MFM may meet business risk as the Group is principally involved in activities within the food manufacturing and livestock industries. The business risk can be refers to the possibility that a company will face lower anticipated profit or experience losses rather than making profit. As Malayan Flour Mills Berhad has involved its business in two different industries, there must be a business risk that will face by the company in term of government policies, rules and regulations
Business risk will affect the company by several factors, such as competition within competitors, overall economic climate and also government regulations. As such, the Group of the MFM is susceptible to business risks in these industries which include but not …show more content…
Raw materials are materials or substances that used by the company in the primary production or goods manufacturing. In addition, raw materials can be refers as commodities to which are bought and sold on commodities exchanges around the market trading. The raw material that used by Malayan Flour Mills Berhad such as wheat, corn and soybean meal contribute to a significant proportion of the total output of the production. These materials are commodities to the Company and their availability is dependent on the market …show more content…
Besides, if the plantation of these raw materials has been affected by external factors such as climate condition and natural disaster, it may cause the food and beverage company need to change another raw material to replace it. In Malayan Flour Mills Berhad, any increase or decrease in the amount of raw material will inevitably affect the Group’s operations. Apart from that, if there is a shortage of these materials, the Company may face difficulty to obtain the amount of materials required at prices that are commercially acceptable. In order to reduce the risk, MFM has maintain business relationships with their long-term major suppliers and possible to source their suppliers from the variety of
Business risk will affect the company by several factors, such as competition within competitors, overall economic climate and also government regulations. As such, the Group of the MFM is susceptible to business risks in these industries which include but not …show more content…
Raw materials are materials or substances that used by the company in the primary production or goods manufacturing. In addition, raw materials can be refers as commodities to which are bought and sold on commodities exchanges around the market trading. The raw material that used by Malayan Flour Mills Berhad such as wheat, corn and soybean meal contribute to a significant proportion of the total output of the production. These materials are commodities to the Company and their availability is dependent on the market …show more content…
Besides, if the plantation of these raw materials has been affected by external factors such as climate condition and natural disaster, it may cause the food and beverage company need to change another raw material to replace it. In Malayan Flour Mills Berhad, any increase or decrease in the amount of raw material will inevitably affect the Group’s operations. Apart from that, if there is a shortage of these materials, the Company may face difficulty to obtain the amount of materials required at prices that are commercially acceptable. In order to reduce the risk, MFM has maintain business relationships with their long-term major suppliers and possible to source their suppliers from the variety of