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Alpha Mills Case

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Submitted By erdetloshi
Words 2951
Pages 12
1. The Decision:
Alpha Plantations Sdn. Bhd. is an oil palm plantation owned by a British multinational company and located in Malaysia. It served as a supplier of crude palm oil for its parent company detergent manufacturing business. Many of its employees were former British soldiers and ex- police officers. Captain Chubb managed the company until Mr. Davison ultimately replaced him. Below Mr. Chubb was Mr. Ang who began working in 1965 at the age of 15 and had moved up the ranks of the plantation.
The company began experiencing problems with their profits and was in need of new methods of operation to minimize the negative returns that have recently began to occur regularly. The decisions facing Mr. Davison were to remove the hurdles facing the company, which included insuring better commitment, morale and performance from his employees and company. The main decision he faced was how to achieve these goals after firing his most influential and dedicated employee Mr. Ang, since his departure only added to Alpha Mills problems.
2. Analyze.
Chapter 1:
A market economy is defined as market where supply and demand are variables that are controlled by price changes. Alpha Mills operates in what seems to be a market economy as they are in competition with other companies. This is a key factor in Alpha Mills poor returns because other companies were entering this economy and over supplying therefore demand and price decreased. Making this industry less profitable due to the marketplace in which they operated within.
Demand is the amount of a product that customers are willing to purchase at different prices
Supply is the amount of a product that producers are willing to produce at different prices
Alpha Mills was in an industry that was originally not overwhelmed with suppliers but was also in high demand. As time went on Alpha Mills succeeded due to high demand

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