IBM 530

Introduction to International Business

(company : yakult Malaysia snd bhd)

Prepared by:
Safwan Marwin Abdul Murad (2009548191)
Nur Sabrina Ali Sabri (2009773213)
Nur Fatin Dolah (2009545005)
Nurul Izati Selamat (2009380177)
Nurul Nadia Hassan (2009765651)
Introduction
 Nowadays, we can see that Multinational Company (MNC) is trying hard to

globalize their firm to other country. They have various reasons why do they globalize,

as for example to open up new business opportunity to their company and as the

liquidity of capital increases, developed countries can invest in developing ones. Same

situation here is happening to Yakult’s company that is based at Tokyo, Japan. This firm

now has firmly established since the year of 2005.

But the main reason why they globalize to Malaysia is because not everyone is

aware of healthy lifestyle, especially Malaysians. They tend to disregard problems like

constipation, diarrhea, bloating, indigestion, heartburn, excessive gas and gastric pains.

It is important to keep everyone’s digestive system to be healthy and functioning

effective.

In the following pages, we are going to further discuss about how is Yakult’s

international entry strategy, foreign direct investment and cultural environment. As we

know, Yakult is a Multinational Company and they have networks throughout the world

through a network of subsidiaries and affiliates located in many countries. Yakult’s

headquarters is in Japan, so they have to make sure that their product is suitable to

local environment, in Malaysia.

Yakult’s History

Yakult, a cultured milk drink is developed in the year 1930. Dr. Minoru Shirota is

the founder of Yakult and he has go through various of researches before succeed with

his findings on culturing a strain of lactic acid bacteria beneficial to human health. Dr.

Minoru Shirota believes that it is better to build a strong body that is capable of resisting

disease rather that curing the disease. The name of bacteria that contained in Yakult

drink is "Lactobacillus casei Shirota strain" which is named after Dr. Shirota. In 1935,

Dr. Minoru Shirota started distributing Yakult from his clinic. Finally, in the year of 1955,

Dr. Minoru Shirota founded his own company under the name of “Yakult Honsha Co.

Ltd”.

Yakult’s headquarter is stationed at Tokyo, Japan. Yakult has opened its 25th

factory in Malaysia and this factory is worth to 12 millions. Currently, Yakult is operating

in over 32 countries, across five continents and approximately, they now have over 28

million people who drink Yakult everyday in the world.

Yakult's greatest goal is to bring healthy smiles to faces everywhere. The global

corporate philosophy of the Yakult Group is : "To contribute to the health and happiness

of people around the world through the pursuit of excellence in life sciences in general

and our expertise in microbiological research in particular. "

Conclusion

Yakult has practices FDI, therefore it can consider as Multinational Company

(MNC). We can see that multinational firm being in more than one country. Yakult has

spread their wing to other 32 countries including Malaysia across 5 continents. This

criteria has been fully fulfilled by Yakult. Next, in term of culture, since we already know

that Japan(origin country of Yakult) and Malaysia have a very distinct culture. Thus

Japan have to adapt to local culture, and we can see that Yakult has successfully adapt

to our local culture, in term of products value adding and has manage to gives

awareness to Malaysians. It can be concluded that one of the successful Multinational

Company (MNC).
Statistic of Constipation in some of Asia country

Japan 2,059,798 127,333,0022

Laos 98,160 6,068,1172
Macau s.a.r. 7,203 445,2862
Malaysia 380,510 23,522,4822
Mongolia 44,506 2,751,3142
Philippines 1,395,086 86,241,6972
Papua New Guinea 87,680 5,420,2802

Statistic of Diarrhea in some of Asia country

Japan 46,345,469 127,333,0022

Laos 2,208,616 6,068,1172
Macau s.a.r. 162,071 445,2862
Malaysia 8,561,491 23,522,4822
Mongolia 1,001,397 2,751,3142
Philippines 31,389,442 86,241,6972
Papua New Guinea 1,972,822 5,420,2802

*Credit to CureResearch.com
REFERENCES
 www.yakult.com.my / http://www.yakult.com.my/html/yakult_my_factory.html

 www.cureresearch .com

 Education-based trip to Yakult