Strategy Strategy ➤ All purse seine fishing vessels operational ➤ Enhance branding of MPM products ➤ Continue R&D by QL PCOE; optimise farming operations ➤ Restructure palm oil activities ➤ Negative impacts on the environment due to operations, especially our impact on climate change ➤ Scarcity of natural resources may impact our operations ➤ Utilise technology for efficient use of natural resources such as renewable energy and alternative water sources ➤ Clean energy business pillar with the competency to build & implement environmental solutions internally & externally ➤ Unable to build competitive advantage due to inefficiency and technology obsolescence ➤ Disease outbreak disrupting production output and quality ➤ Compromised cyber security leading to business disruptions & data breaches ➤ Higher input costs driven by inflation and uncertain economic environment ➤ R&D to enhance food safety, quality and nutrition ➤ Integrating digitalisation, automation & technology to optimise production and resource allocation efficiency ➤ Enhance data collection and insights for improved decision making ➤ Identify & tap new markets to capture growth opportunities ➤ Inferior products & safety issues that affect goodwill and brand reputation ➤ Loss of market share due to slow adaptation to market trends & disruptions ➤ Unable to establish product differentiation caused by increased competition ➤ Non-compliance with regulations impacting our license to operate ➤ Continuous innovation to deliver value to customers ➤ Meet the needs of consumers by offering enhanced customer experience, increased customer touchpoints & innovative products ➤ Strengthen marketing and branding to develop brand visibility & awareness ➤ Changes to labour law ➤ Lack of talent pool to support sustainable business growth ➤ Non-compliance to labour regulations requirements and human rights violations ➤ High turnover of employees ➤ Workplace accidents that could result in injuries or fatalities ➤ Preservation and enhancement of safety and health precautions to prevent occupational illnesses or injuries ➤ Attract, develop and retain talent via workplace policy and practice improvements ➤ A continuous pipeline of talents via strategic partnerships ➤ Reputational damage amongst the community ➤ Loss of goodwill arising from diminished trust in products and brand ➤ Negative consumer perception and impact of processed or unhealthy food ➤ Inability to supply food to support national food security ➤ Potential lawsuits and damages ➤ Contribute to the community through strategic and targeted initiatives ➤ Continuous engagement and communication with stakeholders ➤ Forex, interest rates and credit risks ➤ High financing cost arising from interest rate hikes ➤ Fiscal policies (tax, incentives, etc) ➤ Share price not reflective of the intrinsic value of the company ➤ Enhanced and more transparent external communications ➤ Effective financial management strategies to capitalise on growth opportunities ➤ Grow regional raw materials trading ➤ Refine aquaculture business model to improve performance for long term scalability ➤ Expand surimi-based products manufacturing in high potential markets ➤ Continue innovation and brand building exercise for food products ➤ Enlarge CVS’ reach to northern region and east coast of Peninsular Malaysia ➤ Extend Clean Energy offerings beyond solar, biomass and water treatment solutions RISKS OPPORTUNITIES QL’s strategy advances us towards our vision of being the preferred global agro-based enterprise. Our continuous focus on innovation is the foundation for the “purple ocean” strategy where we create value for stakeholders by introducing blue ocean products and solutions into the red ocean. To continue driving sustainable value creation, QL’s strategy utilises a multicapital management approach when managing the capital flows, exercising due care especially in regards to natural and manufactured capitals. Our goal is to provide nourishing food to consumers. The strategy is distilled into two components, Strategic Business Growth and Strengthening Core Competencies to broaden organisational growth and enhance operational efficiencies in consideration of risk and opportunities surrounding QL’s business. Progressing Strategic Thrusts to Drive Sustainable Shared Value Identify areas of growth opportunities across operating locations to replicate core activities and value chains. Strengthen and build competitive advantages via upward and downward integration. Increase sales channels by establishing QL as a consumer food company. Regional Replication Strengthening Value Chain Downstream Integration ➤ Data-driven decisionmaking in a timely manner ➤ Digitalised audit monitoring system at operating sites to assess and evaluate effectiveness of control measures & areas for improvement ➤ Utilise digital platforms to increase customer reach ➤ Knowledge transfer between business units to accelerate the improvement initiatives ➤ Foster professional and personal development through merit-based career progression and upskilling ➤ Succession planning with healthy talent pipeline for business continuity ➤ Continue human rights and forced labour awareness and compliance efforts to ensure a conducive work environment ➤ Purple ocean strategy through continuous innovation of products and services to meet customers’ needs and stay ahead of competition ➤ Strengthen sales and marketing efforts as well as widen customer network ➤ Crisis management plan in preparation to respond to situations ➤ Comply and maintain multiple food quality and safety standards Conserve Continue Core Focus Cultivate 4C APPROACH QL strives to create a positive impact on the economy, environment and society. Sustainably Enhancing Performance Adopt digitalisation, automation & information systems for enhanced efficiency. Integrating Technology Attract and retain talent through employee development & wellbeing initiatives. Empowering Talent Position QL as a trusted agrofood producer with certifications attesting to food quality & safety. Enhance Branding & Product Innovation Not one to rest on our laurels, QL strives to achieve continuous growth via regional replication, value chain strengthening and downstream integration. These growth drivers are implemented with the guidance of the Conserve, Continue, Core Focus and Cultivate. Coined as the 4C approach, the strategic tool determines how resources are allocated and invested to maximise business growth. Initiatives were carefully deliberated, cascaded, and project milestones put in place to ensure success. During the financial year, QL invested RM240.1 million or 3.9% of revenue into strategic business growth opportunities. STRATEGIC BUSINESS GROWTH STRENGTHENING CORE COMPETENCIES QL broadened the strategy enablers with the inclusion of Enhance Branding & Product Innovation into the existing Sustainably Enhancing Performance, Integrating Technology and Empowering Talents in this component. These four facilitate our business objectives. A detailed breakdown of our investment in these enablers can be read in the economic value generated and distributed table on page 45. Natural Capital Manufactured Capital Intellectual Capital Human Capital Social Capital Financial Capital NC HC MC IC SC FC ➤ Continuous biosecurity audits across all farms ➤ Focus on operational safety & health, with external audits and certifications ➤ Increase use of renewable energy, monitor water usage and alternative water sources at operating sites ➤ Explore and develop new retail related business through M&A ➤ Expand convenient RTE food, leveraging QL Kitchen’s capabilities and through M&A 015 014 QL RESOURCES BERHAD INTEGRATED ANNUAL REPORT 2023 SEC. PG. PG. MANAGEMENT DISCUSSION AND ANALYSIS 4
RkJQdWJsaXNoZXIy NTkwNzg=